ADVERTISING

MANAGEMENT

Session 1: Introduction
THE POWER OF ADVERTISING
Let’s start with
an advertisement

Respect your national anthem

GENERAL OUTLINE
 This course would provide a basic understanding of the
field of Advertising.
 Topics to be covered include: procedures and policies for
planning and preparation of advertising, selection of
media, coordination of advertising, sales promotion and
display.
NEED FOR THE COURSE
 Every marketing student should be exposed to
advertising, since it is a major part of the marketing mix
(price, product, price and promotion.) This course will
demonstrate the importance of advertising in the
promotion of a product, service, and/or idea.
 COURSE OUTLINE
 Role of advertising in society
 The Evolution of Advertising
 Advertising and Consumer Behavior
 Ethics and social responsibility
 Advertising and the marketing mix
 Planning and Strategy
 Advertising research
 Media strategy in print, broadcast, out-of-home, and interactive media
 Creative Strategy and the Creative Process
 Creative aspects of advertising in print, broadcast, out-of-home, and interactive
media
 Interactive, Direct Mail & Outdoor Media
 Promotions
 Public Relations
 Developing an integrated advertising campaign
GOALS
 Analyze advertising and marketing information
 Identify the interrelationships between various
disciplines with respect to advertising
 Apply informed judgments to ethical issues presented in
advertising situations.
LEARNING OUTCOMES
 Identify basic advertising terminology.
 Explain the application of advertising principles as
they relate to the marketing of goods and services for
profit and non-profit businesses.
 Produce a comprehensive advertising campaign.
 Assess the types of media, such as: print, broadcast,
interactive and outdoor media.
 Outline the relationship between ethics, social
responsibility and advertising.
PEDAGOGY
 Lecture/discussion
 Case Studies and Student presentations

 Small-group work – campaign development and media

planning
ASSESSMENT CRITERIA
 Written examinations
 Mid-Term: 20 marks
 End-Term: 40 marks

 Group Project
 Campaign Development: 20 marks
 Oral and Written presentations
 Case studies - 15
 Assignment(s) - 5
RECOMMENDED TEXTS
 Advertising and Promotion – Belch, Belch and Purani
(Tata McGraw-Hill)
 Advertising and Promotion – Shah and D’Souza (Tata
McGraw-Hill)
 Advertising Management – David Aaker (Prentice Hall)

 Advertising and Sales Promotion – Kazmi and Batra

(Excel Books)
ADVERTISING
 What?
 Why?

 When?

 How?

 Where?

 How often?
MARKETING MIX
 4 P’s
 Includes everything that the marketer uses to create a
blend that would influence the demand for its products
and services
 4 P’S
 Product: Anything that can be offered to a market for
attention, acquisition, use, or consumption that might
satisfy a want or need.
 Price: The sum that the customer pays in exchange for
the products or to get a service performed.
 Place: Marketing activities undertaken to make the
product or service available to consumer at convenient
locations where they are normally expected to shop for
such things.
 Promotion: Marketing activities used to inform,
persuade, and remind the target market of an
organization its products, services and other activities.
MARKETING MIX AND ADVERTISING

Marketing Mix

Product Price Promotion Place

Sales Personal Public Direct

Advertising
Promotion Selling Relations Marketing
ADVERTISING FUNCTIONS
Informing
Persuading
Reminding
Assisting other company efforts
ADVERTISEMENTS FOR SOME WELL-
KNOWN BRANDS…

Hutch to Vodafone
ADVERTISING…DEFINITIONS
 “Advertising is any paid form of non-personal
presentation and promotion of ideas, goods, and
services by an identified sponsor”
 American Marketing Association
 “Advertising is controlled, identifiable information and
persuasion by means of mass communications media”
 ‘AdvertisingManagement’ – John Wright; Willis Winter; and
Sherilyn Zeigler, Tata McGraw-Hill
REASONS FOR USE OF ADVERTISING
 Widely accepted promotional tool
 Cost effective in terms of reaching out to a large
audience
 Helps in creating images and build symbolic meanings
for a company or brand …Marlboro Man, Air India
Maharaja, Amul Girl, Hutch/Vodafone pug…
 KEY COMPONENTS OF ADVERTISING
Advertising
Strategy
Effective Advertising
Creative Idea

Execution

Media

Source: Advertising – Principles and Practice – Wells, Moriarty, Burnett (Prentice Hall), 2006 p.6
 ADVERTISING AND PRODUCT
LIFECYCLE STAGE
 Introductory stage: Furnish product knowledge, change existing
habits (Kellogg’s), develop new usage, cultivate new standards of
living, implant a new way of looking at existing approaches to
problem solutions.
 Competitive stage: create a clear and convincing differentiation
of the company’s brand and effectively communicate its position
 Reminder stage: remain in the minds of consumer, reminder ads
 Advertising cannot “sell” products which are not available at
convenient locations or highly priced.
KEY PLAYERS
 The Advertiser – the person or organization that uses
advertising to send out a message about its products
 The Advertising Agency – Organization of department which
creates the advertising
 The Media – channels of communication that carry a message
from the advertiser to the audience or vice versa.
 The Suppliers – group of service organizations that assist
advertisers, advertising agencies and the media in creating
and placing the ads (artists, writers, photographers, producers,
printers etc.
 The Target Audience – buyers vs. consumers (Kellogg’s)
SOME MAJOR MEDIA COMPANIES
Company Businesses
Time Warner America Online, HBO, Time Inc.,
Turner Broadcasting (CNN), Time
Warner Books, Warner Bros.
Entertainment, Warner Music

Disney ABC, ESPN, Disney Channel,

Theme Parks, Walt Disney Studios
including Touchstone Pictures,
Buena Vista
Viacom MTV, Paramount Pictures, Simon
& Schuster, Nickelodeon
News Corp DirectTV, 20th Century Fox,
HarperCollins, Fox News, The
New York Post, Times
Source: Advertising – Principles and Practice – Wells, Moriarty, Burnett (Prentice Hall), 2006 p.15
TYPES OF ADVERTISING
 Brand – to create long term brand image
 Retail or local advertising

 Direct Response Advertising (Tele shopping

network etc.)
 Business to Business Advertising

 Institutional Advertising – Corporate branding

 Non-profit advertising (CRY)

 Public Service Advertising – Lead India, Indian

Cancer Association, AIDS awareness etc.
EVOLUTION OF ADVERTISING
 Age of Print
 Industrial Revolution and Emergence of Consumer
Society
 Modern Advertising Era

 Age of Agencies

 Creative Era

 Accountability Era
EVOLUTION OF ADVERTISING
 Age of Print
 1441 – Johannes Guttenberg creates movable type
 Mid-1440s – Printed handbills
 1472 – First ad in English “Pyes of Salisbury” (a handbill of rules for the
guidance of clergy at Easter, put on Church doors)
 First ad to be printed in a circulated sheet was in Germany in 1525
 1600s – Newspapers emerge
 1622 – First ad in London’s Weekly Relations News
 1655 – First use of the term “Advertising”
 1704 – First US newspaper to carry ads (Boston Newsletter)
 1841 – Volney Palmer becomes the first ad sales agent (Boston)
 1850 – George P. Rowell becomes first ad space wholesaler (Boston)
EVOLUTION OF ADVERTISING
 Industrial Revolution and Emergence of Consumer
Society
 1850s – First branded items such as Baker’s Chocolate appear in
stores
 1864 – J. Walter Thompson forms JWT agency, first account
executive
 1872 – First Ward’s Illustrated mail order catalog
 1879 – Proctor and Gamble introduces Ivory soap
 1880’s – John Powers pioneers copywriting, focuses on news
 1888 – George Eastman creates first Kodak camera
 1890’s – Earnest Elmo Calkins and Ralph Holder develop image
copy
 1890’s – Lord & Thomas agency forms
EVOLUTION OF ADVERTISING
 Modern Advertising Era
 1904-1940’s – Albert Lasker pioneers “reason why” copy
 1905 – John E. Kennedy describes advertising as
“Salesmanship in print”
 1905 – Claude Hopkins develops scientific mail order copy
testing
 1908 – Beginning of celebrity endorsements – Pepsi uses
racecar driver Barney Oldfield
EVOLUTION OF ADVERTISING
 Age of Agencies
 1917 – American Association of Advertising Agencies formed
 1918 – Stanley and Helen Resor develop account services, brand
names, and status appeals
 1920’s – Radio emerged as an important medium for advertising
 1923 – Young & Rubicam agency formed
 1930’s – Radio advertising surpasses magazines as leading
advertising medium
 1950’s – TV becomes an important advertising medium
 1950’s – Rosser Reeves (Bates) develops “Unique Selling
Proposition”
EVOLUTION OF ADVERTISING
 Creative Era
 1950’s – Leo Burnett creates brand icons and “inherent
drama”
 1950’s – David Ogilvy develops research based image
advertising and storytelling
 1960’s – Bill Bernback focuses on the art of persuation
EVOLUTION OF ADVERTISING
 Accountability Era
 1980’s-1990’s – Mergers, globalization
 1990’s-2000’s – IMC, niche marketing, growth of interactive
technology, relationship marketing, mass customization
 2001 – Advertising takes on new responsibilities
EVOLUTION OF ADVERTISING
 Key creative contributors – David Ogilvy (Hathway
Shirt); Leo Burnett (Marlboro) and William Bernbach
(Avis).
 Earliest International Agencies – J. Walter Thomson
(JWT) and D.J. Khymer (O&M).
 Earliest Indian agencies – Dattaram, Sista’s, National
SOME VINTAGE ADS

Coca Cola
Over the Years
SOME CONTEMPORARY INDIAN ADS…

Happy Dent

M-Seal
Mentos