UNIT -1.

Advertising has various effects on individuals, businesses, and society as a whole. Here
are some of the most significant effects of advertising:

Positive Effects

1. Increased brand awareness: Advertising helps businesses create awareness about

their products or services, making it more likely for customers to choose them over
competitors.

2. Sales and revenue growth: Effective advertising can lead to increased sales and
revenue for businesses.

3. Job creation: The advertising industry provides employment opportunities for millions of
people worldwide.

4. Economic growth: Advertising contributes to economic growth by promoting consumer

spending and stimulating business activity.

5. Social benefits: Advertising can promote social causes, raise awareness about
important issues, and encourage positive behaviours.

Negative Effects

1. Manipulation and deception: Some advertisements may use manipulative or deceptive

tactics to influence consumer behavior.

2. Overconsumption: Advertising can encourage overconsumption and materialism,

contributing to environmental degradation and social problems.

3. Unrealistic expectations: Advertisements often create unrealistic expectations and

promote unattainable beauty standards, leading to negative body image and low self-
esteem.

4. Invasion of privacy: Online advertising can invade consumers' privacy by collecting and
using their personal data without consent.

5. Cultural homogenization: Advertising can contribute to cultural homogenization by

promoting Western values and lifestyles, potentially threatening local cultures and
traditions.
Psychological Effects

1. Subliminal messaging: Advertisements can use subliminal messaging to influence

consumer behavior without their conscious awareness.

2. Emotional manipulation: Advertisements often use emotional appeals to manipulate

consumers' feelings and decisions.

3. Brand loyalty: Advertising can create brand loyalty by associating products or services
with positive emotions and experiences.

4. Social influence: Advertisements can influence social norms and behaviors by

promoting certain lifestyles or attitudes.

Societal Effects

1. Consumerism: Advertising contributes to consumerism by promoting the idea that

happiness and fulfillment can be achieved through material possessions.

2. Waste and pollution: The production and distribution of advertising materials can
contribute to waste and pollution.

3. Cultural values: Advertising can shape cultural values and attitudes by promoting
certain lifestyles, behaviors, and values.

4. Democratization of information: Advertising can provide information and education to

consumers, promoting informed decision-making and democratic values.

Overall, the effects of advertising are complex and multifaceted. While advertising can
have positive effects on businesses and the economy, it also raises important concerns
about manipulation, overconsumption, and cultural homogenization.

………………………………………………………………….Let's break down the concepts of

advertising goals, advertising objectives, and the DAGMAR approach:

Advertising Goals

Advertising goals refer to the broad, overall purposes of an advertising campaign. These
goals are often vague and open-ended, providing a general direction for the campaign.
Examples of advertising goals include:
1. Increase brand awareness

2. Drive website traffic

3. Generate leads

4. Boost sales

5. Improve brand reputation

Advertising Objectives

Advertising objectives, on the other hand, are specific, measurable, achievable, relevant,
and time-bound (SMART) targets that an advertising campaign aims to accomplish.
Objectives are more concrete and actionable than goals. Examples of advertising
objectives include:

1. Increase website traffic by 20% within the next 6 months

2. Boost sales by 15% within the next quarter

3. Improve brand awareness among the target audience by 30% within the next year

DAGMAR Approach

The DAGMAR approach is a framework for setting advertising objectives. DAGMAR stands
for:

1. *D* - Define: Define the advertising goal or objective

2. *A* - Agree: Agree on the specific objective

3. *G* - Goal: Set a specific, measurable goal

4. *M* - Measure: Establish a way to measure progress

5. *A* - Achieve: Achieve the goal through effective advertising

6. *R* - Result: Evaluate the results and adjust the approach as needed
The DAGMAR approach helps advertisers create clear, actionable objectives that guide the
development of an effective advertising strategy.

Here's an example of how the DAGMAR approach can be applied:

- Define: Increase brand awareness among young adults

- Agree: Increase brand awareness among 18-24-year-olds

- Goal: Boost brand awareness by 25% within the next 12 months

- Measure: Track website traffic, social media engagement, and survey responses

- Achieve: Develop a targeted advertising campaign using social media, influencer

marketing, and sponsored content

- Result: Evaluate the campaign's effectiveness and adjust the approach as needed to
achieve the desired result.

…… … … … … … … … .. … … … … … … … … … … …

The Hierarchy of Effects model is a framework used to understand the process by which
advertising influences consumer behavior. The model proposes that advertising effects
occur in a hierarchical manner, with cognitive effects preceding affective effects, which in
turn precede behavioral effects.

The Six Stages of the Hierarchy of Effects Model

1. *Awareness*: The consumer becomes aware of the product or service.

2. *Knowledge*: The consumer gains knowledge about the product or service.

3. *Liking*: The consumer develops a positive attitude towards the product or service.

4. *Preference*: The consumer prefers the product or service over others.

5. *Conviction*: The consumer becomes convinced that the product or service is the best
choice.

6. *Purchase*: The consumer makes a purchase.

Strengths of the Hierarchy of Effects Model

1. *Simple and easy to understand*: The model is straightforward and easy to

comprehend.

2. *Helps advertisers set goals*: The model provides a framework for advertisers to set
specific goals for their advertising campaigns.

3. *Emphasizes the importance of awareness*: The model highlights the importance of

creating awareness as the first step in the advertising process.

Weaknesses of the Hierarchy of Effects Model

1. *Oversimplifies the advertising process*: The model assumes that consumers progress
through the stages in a linear and predictable manner, which is not always the case.

2. *Does not account for individual differences*: The model does not take into account
individual differences in consumer behavior and decision-making.

3. *Does not consider the role of emotions*: The model focuses primarily on cognitive
effects, neglecting the important role of emotions in consumer decision-making.

……………………………………………………

Determination of Target Audience

1. *Demographics*: Age, sex, income, education, occupation, etc.

2. *Psychographics*: Lifestyle, values, attitudes, interests, personality, etc.

3. *Behavioral characteristics*: Purchasing habits, usage rates, loyalty, etc.

4. *Target audience segmentation*: Divide the audience into distinct groups based on their
characteristics.

Message Decisions

1. *Message strategy*: Define the overall message and tone.

2. *Message content*: Determine the key points to communicate.

3. *Message structure*: Organize the message in a logical and persuasive manner.

4. *Message source*: Decide who will deliver the message (e.g., celebrity endorser,
company spokesperson).

5. *Message format*: Choose the format for the message (e.g., visual, verbal,
combination).

Appeals in Advertising

1. *Rational appeal*: Emphasize the product's features, benefits, and value.

2. *Emotional appeal*: Appeal to the audience's emotions, such as happiness, fear, or

nostalgia.

3. *Moral appeal*: Emphasize the product's social responsibility or ethical benefits.

Message Tactics: Copywriting

1. *Headlines*: Craft attention-grabbing headlines that communicate the key benefit.

2. *Subheadlines*: Provide additional information and support the headline.

3. *Body copy*: Write clear, concise, and persuasive copy that communicates the
message.

4. *Call-to-action*: Encourage the audience to take a specific action (e.g., visit a website,
make a purchase).

5. *Tone and style*: Use a tone and style that resonates with the target audience and aligns
with the brand's personality.

Additional Considerations

1. *Visual elements*: Use images, graphics, and other visual elements to support the
message and capture attention.

2. *Storytelling*: Use narrative techniques to make the message more engaging and
memorable.

3. *Social proof*: Use customer testimonials, reviews, and ratings to build credibility and
trust.
4. *Scarcity and urgency*: Create a sense of scarcity or urgency to encourage the audience
to take action.

……………………………………………………

UNIT -2.
Here’s a comprehensive overview of the methods of setting advertising budgets, evaluating
advertising effectiveness, and the legal, ethical, and social aspects of advertising in India:

Methods of Setting Advertising Budget

1. *Affordable Method*: Allocate a percentage of sales or profits to advertising.

2. *Percentage of Sales Method*: Allocate a percentage of sales to advertising.

3. *Objective and Task Method*: Determine specific advertising objectives and allocate
budget accordingly.

4. *Competitive Parity Method*: Match competitors’ advertising expenditures.

5. *Return on Investment (ROI) Method*: Allocate budget based on expected returns on

investment.

Evaluating Advertising Effectiveness

1. *Need and Importance*: Measuring advertising effectiveness helps evaluate campaign

success, optimize budget allocation, and improve future campaigns.

2. *Methods of Evaluation*: Sales response analysis, surveys, focus groups, experiments,

and online metrics (e.g., clicks, conversions).

3. *Metrics for Evaluation*: Reach, frequency, impressions, click-through rates, conversion

rates, return on investment (ROI), and return on ad spend (ROAS).

Legal Aspects of Advertising in India

1. *Consumer Protection Act, 1986*: Protects consumers from unfair trade practices,
including false or misleading advertising.
2. *Advertising Standards Council of India (ASCI)*: Self-regulatory body that promotes
responsible advertising practices.

3. *Cable Television Networks (Regulation) Act, 1995*: Regulates advertising content on

cable television networks.

Ethical Aspects of Advertising in India

1. *Truthfulness*: Advertisements should be truthful and not misleading.

2. *Transparency*: Advertisers should clearly disclose product information and terms.

3. *Respect for Consumers*: Advertisers should respect consumers’ rights and dignity.

4. *Social Responsibility*: Advertisers should promote socially responsible behavior.

Social Aspects of Advertising in India

1. *Cultural Sensitivity*: Advertisements should be sensitive to Indian culture and values.

2. *Social Impact*: Advertisements should promote positive social values and behaviors.

3. *Environmental Responsibility*: Advertisers should promote environmentally

responsible practices.

4. *Accessibility*: Advertisements should be accessible to all, including people with

disabilities.

…………………………………………………….

Here’s a comprehensive overview of reach, frequency, and impact, as well as factors

influencing the choice of media:

Reach, Frequency, and Impact

*Reach*

1. _Definition_: The number of people exposed to an advertisement or media vehicle.

2. _Types of reach_: Gross reach, net reach, and cumulative reach.

3. _Importance_: Reach helps advertisers understand the potential audience for their
message.
*Frequency*

1. _Definition_: The number of times an individual is exposed to an advertisement or media

vehicle.

2. _Types of frequency_: Frequency distribution, average frequency, and effective

frequency.

3. _Importance_: Frequency helps advertisers understand the potential impact of their

message.

*Impact*

1. _Definition_: The effect or influence of an advertisement or media vehicle on the target

audience.

2. _Types of impact_: Cognitive impact, affective impact, and behavioral impact.

3. _Importance_: Impact helps advertisers understand the effectiveness of their message.

Factors Influencing the Choice of Media

*Target Audience Factors*

1. _Demographics_: Age, sex, income, education, occupation, etc.

2. _Psychographics_: Lifestyle, values, attitudes, interests, personality, etc.

3. _Behavioral characteristics_: Purchasing habits, usage rates, loyalty, etc.

*Media Vehicle Factors*

1. _Reach and frequency_: The ability of a media vehicle to deliver the desired audience.

2. _Cost_: The cost of advertising in a particular media vehicle.

3. _Impact_: The potential effect of a media vehicle on the target audience.

*Message Factors*
1. _Message complexity_: The complexity of the message and the need for demonstration
or explanation.

2. _Message tone_: The tone of the message and the need for humor, seriousness, or
emotion.

3. _Message format_: The format of the message and the need for visual, auditory, or
textual elements.

*Budget Factors*

1. _Budget size_: The overall budget for the advertising campaign.

2. _Budget allocation_: The allocation of the budget to different media vehicles and
advertising tactics.

*Environmental Factors*

1. _Market trends_: Current market trends and the need to adapt to changing consumer
behavior.

2. _Competitor activity_: The activity of competitors and the need to differentiate or

respond.

3. _Regulatory environment_: The regulatory environment and the need to comply with laws
and regulations.