ADVERTISING AND PROMOTION MANAGEMENT

WEEK 1

Definition of Marketing

"The process of planning and executing the conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that satisfy individual and organizational
objectives."

American Marketing Association

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"Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs
of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines,
measures, and quantifies the size of the identified market and the profit potential."

Phillip Kotler
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"Marketing is the performance of business activities that direct the flow of goods and services
from producer to consumer or user."

Jerome McCarthy
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Core Marketing Concepts

1. Needs, Wants, and Demands

Basic human requirements include food, water, shelter, and safety, and marketing starts with
understanding these needs. Desires are shaped by culture and individual personality.

For example, while food is a need, wanting a pizza is specific to personal preference. Wants to
be backed by purchasing power. Consumers may wish for many things, but demands are those
they can afford and are willing to pay for.

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2. Value and Satisfaction

The perceived benefits a customer gets from a product relative to its cost. It balances what
customers give (money, time, effort) and what they get (quality, experience, satisfaction).

3. Exchange

The core idea in marketing is that both parties, customers and businesses, should benefit from the
exchange. Customers offer money (or other value) in exchange for goods or services.

The 4 Ps of Marketing

In the 1960s, McCarty introduced the concept of the marketing mix. Defined as:

"The set of marketing tools the firm uses to pursue its marketing objectives in the target market."

1. Product

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It means the products or services a company or an organization provides to customers. This
comprises the physical Product and the entire associated experience. It comprises of the
following:

a. Product Line

It means a company's product range, whether a single product or a broad range of

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products that target diverse customer segments.

For instance, Apple’s product line consists of iPhones, iPads, Mac Books, etc.

b. Quality:

This describes the quality or standard of the Product. Quality impacts the perception of the
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Product and its acceptability for the target market. The higher the quality, the higher customer
satisfaction.

c. Design

It encompasses the aesthetic and functional aspects of the Product, including how it looks and
performs. For instance, Tesla cars are famous for their sleek design and performance.

d. Features

Specific characteristics or functionalities that the product offers. Features differentiate one
Product from another.

e. Brand Name

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The product and its company's name or distinct identity is known as its brand name. A firm
brand name builds recognition, trust, and loyalty among customers. Example: Nike is a globally
recognized brand associated with athletic excellence

2. Price

Price refers to the amount a customer pays for the Product or service. Pricing strategies differ
with market conditions, competition, and the target audience. The Components are: -

a. List Price

This is the official price of the Product before any discounts or special deals. It is the base price
that companies set for the Product.

b. Discounts

Discounts are reductions in the list price to attract customers. Discounts can be seasonal,
promotional, or related to bulk buying.

Example: Holiday sales, clearance sales.

c. Allowances EL
Example: Used car dealerships allowing trade-in allowances for buying a used car.
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d. Payment Period

Customers can pay for the Product. Extended payment periods are always applied to make high-
price items more affordable. Example: Providing a 12-month installment plan for big-
ticket electronics.
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e. Credit Terms

They are the monetary terms for buying the Product. They encompass interest rates and payment
plans and apply primarily to high-value purchases. Example: Credit card firms offer 0% interest
in purchases for the first year.

3. Place

Place deals with the channels of distribution and how the Product gets to the customer. It
encompasses the whole process of making the Product accessible to the right target audience.
The elements are:

a. Channels

The channels are the pathways or outlets to sell the Product. These could be direct (company
website) or through intermediaries (wholesalers, retailers). Example: Coca-Cola uses both direct
vending machines and retail stores as channels.

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b. Locations

The physical or digital place where the Product can be sold or bought. For a retail brand, this
would be the number of stores; for online businesses, it refers to the availability on various
platforms.

c. Inventory

Maintain a good stock to cover the customer demand. Proper Inventory control ensures that there
is availability when needed without overstocking. For example, Walmart uses advanced
inventory systems to ensure product availability.

d. Transport

Transport refers to moving goods from production plants to distribution points and eventually to
the customer. It encompasses shipment methods and delivery periods. Example: Same day or
next day shipping available in some companies such as Amazon Prime

4. Promotion

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Promotion refers to everything a company does to inform customers about its Product and
convince them to buy it. It involves a range of channels and techniques.

a. Sales Promotion
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Short-term Incentives or Promotions scheme to motivate immediate purchasing or increased
sales. These may include coupons, contests, and buy-one-get-one-free offers.

b. Advertising

Paid product promotion by an identified sponsor through available media channels. Awareness
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and interest in products arise through advertising. Example: The global ad campaigns from Coca-
Cola.

c. Sales Force

The people engaged in selling the Product directly by contacting customers. Such interactions are
in person or via telephone or digital communication. Example: Pharmaceuticals rely on their
sales force to promote to doctors.

d. Public Relations

The objective of Public Relations is to create a good image to the company and its products in
the minds of stakeholders. These include press releases, sponsorships, community events,
and crisis handling. Example: Companies sponsoring charity events or participating in
environmental sustainability programs.

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e. Direct Marketing

Targeted marketing that goes directly to the consumer by email, catalogs, telephone calls, or
SMS. This is the marketing that takes a personalized approach to the customer. E-commerce
sends personalized product recommendations through email.

The 4Ps of Marketing Mix denotes the Seller’s Aspect. On Buyers Aspect, it deals with the
customer perspective.

Lauterborn, an advertising professor, introduced the 4Cs in a 1990 article in Advertising Age.
The 4Cs are designed to put more emphasis on customer needs and experience. Here's how the
4Cs correspond to the 4Ps:

Consumer wants and needs: Corresponds to product

Cost to satisfy: Corresponds to price

Convenience to buy: Corresponds to place

Communication: Corresponds to promotion

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Robert Lauterborn connected the 4Ps to the 4Cs of Marketing. These two models are connected
as they represent complementary ways of thinking about marketing strategy: the producer's and
consumer's perspectives.
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1. Product → Customer Needs and Wants

• 4Ps: The Product refers to the item or service a company offers to meet market demand.

• 4Cs: Customer Needs and Wants shift the focus from what a company produces to the
customer's needs or desires. It is about understanding the customer's pain points, preferences, and
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behaviors and designing solutions around them rather than simply creating products.

2. Price → Customer Cost

• 4Ps: Price is the amount a customer is expected to pay for a product or service.

• 4Cs: Customer Cost takes a broader view of what the "price" represents for the customer. This
includes the price tag and the perceived value, time, effort, and emotional cost of acquiring and
using the Product or service.

3. Place → Convenience

• 4Ps: Place refers to how and where the Product or services reach the consumer or customer.

• 4Cs: Convenience centers on how easy and accessible it is for customers to find and purchase
the Product.

4. Promotion → Communication

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• 4Ps: Promotion involves how a business informs and persuades customers about its products
(e.g., advertising, sales promotions, PR).

• 4Cs: Communication emphasizes a two-way dialogue between the company and its customers.
It is not just about broadcasting messages but engaging customers, listening to their feedback,
and building relationships through social media, customer service, and personalized experiences.

• Product (4P) ↔ Customer Solution (4C): Shift from what the company offers to what the
needs and wants.
• Price (4P) ↔ Customer Cost (4C): Move from setting a price to considering the total cost
(monetary and non-monetary) to the customer.
• Place (4P) ↔ Convenience (4C): This is a transition from the company's distribution
strategy to making the Product as convenient as possible for the customer.
• Promotion communication (4C): Evolve from pushing promotional messages to engaging
in a meaningful two-way conversation with the customer

ADVERTISING

Definition EL
The word advertising comes from the Latin "advertere," meaning 'to turn the mind towards.'

"Advertising is any paid form of non-personal presentation and promotion of ideas, goods, and
services by an identified sponsor."
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American Marketing Association

Advertisements have been defined differently by different persons. Some of the definitions given
by other authors are:
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"Advertising is any paid form of non-personal presentation and promotion of ideas, goods, and
services through mass media such as newspapers, magazines, television or radio by an identified
sponsor."

- (Philip Kotler)

"Advertising consists of all the activities involved in presenting to an audience a non-personal,

sponsor-identified, paid-for message about a product or organization."

- (Willaim J. Stanton, in the book Advertising Management & Sales Promotion

By Prof. George Ainslie)

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"The dissemination of information concerning an idea, service or product to compel action by
the advertiser's intent."

-(Mahendra Mohan, Advertising Management: Concepts and Cases, Tata McGraw-Hill, 1989).

"Advertising is the non-personal communication of marketing-related information to a target

audience, usually paid for by the advertiser, and delivered through mass media to reach the
specific objectives of the sponsor."

-(John J. Burnett, "Promotion Management”, Houghton Mifflin

Company, 1998).

"Advertising is a message paid for by an identified sponsor and delivered through mass

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communication. Advertising is persuasive communication. It is not neutral or unbiased; it says,
"I am going to sell you a product or an idea."

-(J. Thomas Russell, and W. Roland Lane, "Kleppner’s Advertising Procedure" Prentice-Hall,
13th ed. 1996).

"Advertising is a paid, mediated form of communication from an identifiable source, designed to

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persuade the receiver to take some action, now or in the future."

- (Jeff et al. Curran, "Oracles on "advertising": Searching for a Definition" Journal of

Advertising (Summer 2002))

"Advertising is controlled, identifiable information and persuasion using mass media."

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-(John S. Wright, Willis L. Winter and Sherilyn K. Zeigler, Advertising & Sales Promotion, 3rd
edition by S.H.H. Kazmi and Satish K Batra)

"Advertising is 'salesman in print."

-(John E. Kennedy, an oft-quoted definition coined in 1904, (Gunther))

"Advertising is selling in print".

-(Daniel Starch in an early advertising textbook)

"Advertising is a business activity, employing creative techniques to design persuasive

communication in mass media that promote ideas, goods, and services in a manner consistent
with the achievement of the advertiser's objectives, the delivery of satisfaction, and the
development of social and economic welfare."

-(Dorothy Cohen, 1988)

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"Advertising is the discovery and communication of a persuasive difference for a brand to the
target prospect."

-(Subroto Sengupta (1990), in his book "Brand Positioning: Strategies for Competitive
Advantage)

"Advertising consists of those activities by which visual or oral messages are addressed to
selected publics for the purpose of informing and influencing them to buy products or services,
or to act or to be inclined favorably towards ideas, persons, trademarks, or institutions
featured."

-(Borden and Marshall, 1971)

Therefore, looking at these definitions, we can state that Advertising is pivotal role in shaping
our decisions, motivating us for purchase and modeling behaviors. Advertising has become an
essential aspect of our life.

Why Study of Advertising?

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Advertising is an indispensable part of marketing and also our lives. We are exposed to
advertising always and hence it is imperative for us that we as consumers should be aware of the
marketing tactics employed by marketers who unknowingly persuade us to buying this we need
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and many a times things we do not need at all. The various reasons for study of advertising as a
subject is enumerated below:

• Advertisements are capable enough to influence the decision-making power of the

consumer.
• Advertisement mainly reflects or changes cultures' trends, values, and ideals. It
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can create norms, define beauty standards, or set goals for social status.
• Good advertisements evoke emotions in the subconscious
mind, which makes associations between brands and experiences memorable in the long
term.
• Advertising motivates or discourages behaviors, from healthy habits to
environmental issues.
• Advertising helps in Building Brand Identity and Loyalty
• Advertising techniques will enable consumers to distinguish between actual claims and
exaggerated promises.
• Advertisers many a times manipulate consumers, knowledge of advertising helps in
understanding marketing gimmicks and Avoiding Manipulation
• Advertisements employ fear, envy, or societal pressure. Being alert to these
tactics enables the consumer to make rational choices.

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 • Informed consumers align their purchases with ethical and sustainable practices
highlighted in advertisements. In many ways, advertising reflects society's values or
challenges its norms, influencing how people perceive themselves.
• Advertising helps consumers assess the value propositions of products or services and
make an informed choice.
• Advertisements often use emotional appeals, social pressures, or stereotypes to influence
consumer behavior. Studying advertising helps individuals recognize unethical tactics
and avoid being unduly swayed.
• With increased consumer awareness, such stereotypes were unacceptable, and consumers
voiced dissent. As a result, the brand had to rebrand and start advertising for "glow"
rather than fairness. A conscious consumer who is aware of the impact of advertising can
overcome stereotypes.
• Analyzing advertisements pushes people to harmonize their consumption with ethical
and environmental consciousness.
• Advertising can question conventional behavior or stereotypes by breaking barriers and

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challenging social norms.

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Advertising helps in fostering customer engagement. It involves building strong, ongoing
relationships through meaningful interactions, personalized communication, and creating
value—strategies like social media engagement, loyalty programs, and encouraging
feedback to strengthen brand loyalty.
Advertising involves expanding reach through targeted marketing, promotions, or
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referrals, like Ola's app-based rides.
• Advertising helps in Changing consumer attitudes by defining how consumers perceive a
brand.

There are three primary goals of advertising:

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1. To Inform
The objective of advertising is to build brand awareness among the target market. The
first step toward achieving business goals is to inform potential customers about the
brand, products, and services. It builds awareness and provides necessary information to
help consumers make proper decisions.

2. To Persuade

Another essential objective of advertising is to persuade consumers to perform actions.

These include buying or trying the Product, creating a positive perception of the brand, or
developing a positive attitude toward the brand.

3. To Reinforce

The third advertising objective is to remind potential customers and brands of what it
stands for and offers.

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Nature of Advertising

Advertising is an essential part of contemporary business and consumerism, and several key
characteristics can help in understanding its nature:

1. Paid Form of Communication

Advertising is a paid form of communication; advertisers spend money to produce and

disseminate messages intended to influence the target audience. It is different from free
promotional methods such as publicity or word-of-mouth marketing.

Amul's billboards, television commercials, and print

ads are all examples of paid communication whereby the brand buys media space to
communicate a specific message.

2. Non-Personal Communication

Non-personal communication differs from direct communication,

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which requires personal contact and interaction with the customer. In advertising, messages
are transmitted through mass media channels such as Television, radio, print, and digital
platforms, targeting a broad audience simultaneously.

3. Tools for Promotion

Advertising is a significant constituent of the promotion mix; it encompasses various tools and
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tactics to promote a product or service. The promotion mix includes advertising, personal selling,
public relations, sales promotion, and direct marketing. Advertising is a powerful tool in this mix
as it lets brands reach a vast market and communicate their messages appropriately.

4. Persuasive in Nature
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Advertising seeks to make people act, whether buying, visiting a website, or even changing an
opinion. It involves creative and strategic communication in attitude and behavior change.

5. One-Way Communication

It is one-way communication, disseminated through mass media channels like Television, radio,
print, digital platforms, and outdoor advertising.

Scope of Advertising

1. Informing and Educating Consumers

Advertising lets the public know about the products and services, their features, and more. The
public learns about new brand innovations, product availability, and special offers.

2. Building Demand and Enhancing Consumption

Advertising helps create demand for new products and increase existing product consumption.

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3. Brand Awareness and Brand Equity

The central role of advertising is to create brand recognition and develop brand loyalty. Through
advertising, brands can build identity and brand equity over time, creating a favorable image that
consumers can recall and trust.

4. Consumer Behavior Influence

Advertising not only informs but also changes or reinforces consumer behavior.

5. Public Service and Social Advertising

Governments and nonprofit organizations utilize advertisements to raise social causes, make
people aware of public issues, and instill valuable behavior for society (e.g., health awareness
campaigns, environmental conservation, road safety). Such an area of advertising makes way for
improvement in society.

6. Engaging consumers through Digital Advertising

(SEM), social media EL

The rise of social media and the Internet has further increased the scope of
advertising, with digital formats added to the mix. Online advertising, search engine marketing
advertising,
have all transformed how brands engage with consumers.

7. Integrated Marketing Communication (IMC)

and influencer marketing
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Advertising is a part of an overarching Integrated Marketing Communication (IMC)
strategy that utilizes several promotional tools, including public relations, direct marketing, and
sales promotions.

Evolution of advertising
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The evolution of advertising spans centuries and reflects changes in technology, society, and
consumer behavior. Over the years, advertising has experienced significant milestones as it
constantly adapts and changes to suit new mediums and audiences. Most significantly, it has
become much more personalized throughout history. The one medium that has had the most
significant impact on the history of advertising and advertising personalization is the Internet,
which can collect billions of user data points.

Advertising in the Pre-Printing Era

The pre-printing era is the time before the printing press; it was in the 15th Century.
Advertisements at this time relied on oral tradition, symbols, and merely written methods to
promote one's goods, services, or events.

The Early advertising practices were:

• Oral announcements in marketplaces

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 • Visual symbols like carvings and signs
• Pictorial representations for goods and services
• Merchants used simple, localized methods to communicate offerings.

The Birth of Print Advertising

Print advertising evolved with the invention of the printing press. However, the prominent figure
in this change was Johannes Gutenberg, whose mid-15th-century movable-type printing press
revolutionized how books, pamphlets, and other printed materials were printed quickly and in
huge numbers.

Johannes Gutenberg (c. 1440): Invented the movable-type printing press in Mainz, Germany.
This invention produced printed materials much faster and in larger quantities than manual hand
copying. Gutenberg’s invention of the printing press laid the foundation for the mass production
of printed materials, including advertisements. Technology-enabled businesses to print flyers,
posters, and newspaper advertisements to reach most audiences.

The First Print Advertisement

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• The first known print advertisement appeared in England in 1477. It was a handbill
promoting a book by William Caxton, the first printer in England. This is one of the
earliest examples of print advertising.
• In 1704, the first newspaper advertisement in the U.S. was published in 'The Boston
Newsletter,' marking the official beginning of modern print advertising in America.
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• Thus, while Johannes Gutenberg's invention of the printing press was the catalyst, the
first actual print advertisements came about in the late 15th and early 18th centuries as
businesses began to understand the power of printed media for marketing.
• The invention of the printing press increased the production of printed materials.
• The first newspaper advertisement appeared in the U.S. in 1704. Print advertising became
popular in newspapers and pamphlets to reach wider audiences.
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• The First visible signs came through Poster. Today, we call it leaflets or hand-carrying
information widely distributed on the streets.

Advertising During the Industrial Revolution

• The introduction of machinery allowed for the mass production of goods, leading to
lower production costs and increased product availability. Cohen (1998) argues that the
Invention of the Bicycle led to competitive advertising.
• During the Industrial Revolution, advertising dramatically increased in the US after the
1870s with the expansion of manufactured product supply to the larger market. The
invention of mass marketing helped influence the behaviour of the population on a larger
scale.
• Similarly, Dr. Drake and Lydia Pinkham introduced advertising to Pharma on a Mass
scale.
• Adolphus Green forwarded the emergence of Branding and the brand concept in the
1890s.

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 • Albert Lasker revolutionized advertising agencies in the 20th Century.

Advertising Between the Wars and Great Depression

• Many countries, particularly the United States, experienced economic growth and
industrial expansion following World War I. The war stimulated production and led to
increased consumer spending.
• The Association of National Advertisers was founded in 1910
• The American Association of Advertising Agencies was developed in 1917 for
improvisation in the effectiveness of advertising and advertising operations.
• 1930 witnessed a stock crash that changed their production strategy to consumers' needs.
• In 1932, John Caples, Vice president of Batten, developed a theory of pulling power. He
changed the ad style from long to short words.
• In 1926, radio was commercialized, followed by Television in 1947.
• (Kleppner et al. 1983) said that extraordinary demands of radio were a mystery in the
USA

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The Creative era of Advertising was in the 1960s and 1970s.

•Leo Burnett, David Ogilvy, and William Bernback were some of the most important creators of
the early 1970s. They are known to have been acting as per Human Psychology.

•The period of Accountability was from the 1970s to 1990s. Hard-sell Advertising was afraid of
the Vietnam War and the economic downturn.
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The years that elapsed between the end of World War I and the Great Depression were changing
periods in advertising with these economic booms and crises.

It became the modern marketing approach, more focused on appeals to emotions, Branding, and
lifestyle. Companies, therefore, sought to change their strategy through adaptation to meet the
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ever-growing needs of consumers in a depressed economic system. This era laid the foundation
for many advertising practices that continue to be relevant today.

Evolution of Indian Advertising

•In the immediate aftermath of World War II and Indian Independence, several British-owned
advertising agencies were sold to Indian companies. Many agencies retained their 'affiliate' status
with their head offices in London, an affiliation that many continue to this day. Over time, the
British connections were replaced mainly by American multinational agencies.

•The advertising industry grew and expanded rapidly at the time of independence. The Partition
did not affect the industry much. The introduction of multicolor printing, better printing
technologies like offset and web offset, and the rise of commercial art gave the advertising sector
a significant boost. Agencies expanded their services, offering space for advertisements and
creative artwork, organizing events like fairs and exhibitions, conducting market research, and
providing public relations consulting.

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•The socioeconomic characteristics of the society influenced the 1970s. Advertising portrayed
Hippe culture and flower children.

•The 1980s saw path-breaking campaigns. It was an era of Materialistic advertising, but at the
same time, well-researched, structured, and slick campaigns. This year also witnessed financial
advertising.

•The introspective era began in the 1990s. Advertising has become more realistic and sober due
to rising consumer awareness about consumer rights and a consumer forum.

• This surge of technology helps people realize how many brands there are and why there are
differences in their brand choices.

As said by author Wells, 3 trends have changed advertising. These three are called Adaptive
Marketing. According to Wells, the three major trends significantly impacting advertising are
media and technology multiplication, relationship marketing, and mass customization. These are
collectively known as adaptive marketing, in which advertising changes with consumers,
technology, and changing market conditions. Here's a more detailed explanation of each trend.

1. Media and Technology Multiplication

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As media channels and technology steeped dramatically, how a brand communicated with its
public changed dramatically.
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a. Emergence of the Media

Of course, new times brought along with them newspapers, radio, and Television as the principal
advertising weapons. The digital world that has surfaced today brings before our doorstep all
kinds of new avenues—social media, search engines, websites, mobile applications, and so on—
to reach the target audience more precisely through many interfaces.
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b. Technological Innovations

Modern technology has made advertising a data-driven function. Tools like AI, ML, and
programmatic advertising help analyze consumer behavior and create personalized campaigns.
Interactive technologies like AR and VR have provided rich experiences in new ways.

c. Global Connectivity

The Internet has opened the borders of brands to global audiences. Mobile technology makes ads
available and accessible at any time. The diffusion of media and technology has made access to
advertising easier, more fluid, and more focused on target audiences. It allows brands to form
relevant messages to targeted groups while using real-time feedback for optimization. It permits
brands to build meaningful communications to targeted audiences while continually seeking live
feedback to adjust them.

2. Relationship Marketing

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Relationship marketing is all about the long-term relationship with the consumers and not
making short-term sales. It emphasizes loyalty and interaction rather than each transaction being
a one-time event.

It is all about knowing the consumer. Relationship marketing deals with getting to know the
consumer on a deeper level. It involves understanding what they want, their preferences,
interests, and behavior, and giving them products or services they will value.

Unlike traditional advertising, which is mainly carried out in one-way communications,

relationship marketing uses services like social media and emailing. Direct contact via these
channels establishes a relationship where a brand can instantly get a consumer reply. Relevant
feedback enables a brand to build on its relations and connect with customers emotionally. When
the consumer's emotions resonate with the campaigns, such relationships usually result in
loyalty. This explains that relationship marketing brings a loyal customer who would effortlessly
endorse the brand and is likely to stay relevant in the presence of increased competition.

3. Mass Customization

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Mass customization is now making advertisements suited to individual consumer preferences
and tastes. This enables content to be more relevant through such kinds of advertising. For
example, websites like Facebook and Google use the best available algorithms.

These allow related ads to be matched better through user-specific interest behaviors. Hence, this
level of personalization assures that advertisements people experience come closer to what
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they want and need, thus turning this experience more engaging and interactive. Ultimately,
it leaves behind the consumer with a feeling of having more control of the content,
which makes ads feel more personal as well as relevant.

In today's market, consumers want control over their purchase decisions. Mass customization
lends itself to that by offering them variations of the Product tailored precisely to their individual
needs. For instance, Nike's "Nike By You" initiative allows customers to design shoes, which
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creates a feeling of individualism and possession.

Customization caters to customization tastes, but the challenge lies in doing so on a large scale.
Advanced manufacturing processes, combined with AI and automation, enable brands to
maintain efficiency while offering personalization.

Personalization is substantial customization between brands and consumers by offering unique

experiences. It enhances customer satisfaction and drives loyalty, as consumers feel valued when
prioritizing.

Adaptive Marketing: Combining the Three Trends

• Media and Technology Proliferation, Relationship Marketing, and Mass Customization form
the basis for this new adaptive or dynamic marketing.

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•A brand needs to be flexible and responsive. Amid increasing competition, an adaptive
marketing strategy is vital in staying ahead. Companies can use technology, relationship
marketing, and mass customization to deliver personalized services to today's consumers.

These three trends represent a transition far from traditional, one-size-fits-all advertising and
more toward an interactive, personal, and personalized approach. They also emphasize
understanding consumer needs, utilizing technology, and creating long-term loyalty in a fast-
paced, highly competitive market. The only way to remain in line with the times and keep
meaningful relationships with their target audience is by using adaptive marketing.

Issues That Have Influenced Indian Advertising

1. The Advertising Standards Council of India is the body that determines the standards and
regulates the contents of advertisements in India. Still, regulating advertising in a country as vast
as India can be complicated. India has cultural, linguistic, and regional diversity that can pose
problems for advertisers who must ensure their messages comply with ASCI guidelines while
still being sensitive to local customs and values.

2. Restrictions and Bans

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The restrictions are severe for liquor, tobacco, and pharmaceutical products. Therefore, in such
industries, creative ability is chained with content barriers, and the time frame and the
communication space can even restrict the medium and area of reach to the advertiser.
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3. Copyright Infringement

There is always a pending threat of creative content infringement. Conflicts with copyright issues
bring court cases against advertising agencies, again impairing the credibility and steadiness.

4. Culture Differences
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India has several languages need advertising with the right messages that may be acceptable
across multiple linguistic and cultural boundaries. One challenge is to be culturally sensitive yet
deliver a localized message with an internationally consistent brand image.

5. Economic Instability

This economic instability phase, globally through the financial crisis or nationally due to an
economic slowdown, triggers cutbacks in advertising budgets. Such an action consequently
forces companies to trim down their marketing expenditures. Thus, the revenue and growth of
these advertising agencies need to be improved.

6. Competition and Pricing Pressures

There is intense competition among the agencies due to the advertising agencies. The
competition is very high, hence the low-profit margins from price wars. Small and medium-sized
agencies compete against large multinationals, which offer services at a low price.

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7. Digital Divide

Although digital technologies are fast spreading across urban India, the scenario is different in
rural regions as the penetration of internet connectivity and digital literacy is less. This disparity
should be considered in developing a successful digital advertising campaign because the
marketer has to determine ways of successfully accessing and engaging the city's consumers and
the hinterland.

8. Advertisements Fraud and Privacy Issues

It includes the fraud problem of clicks and impressions in advertising. The dependence on data
that will be used to target an advertisement raises privacy and data protection issues. Data
management practice has to grow while it faces problems to address issues and ensure that the
whole campaign is transparent enough to attain trust.

9. International Competition:

Indian advertising houses compete with multinational companies with better technologies,

strategic alliances to be beaten.

Functions Of Advertising

1. Consumer Education
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experience in other countries, and more money. All this requires innovation, differentiation, and
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Advertising helps people learn about the features, benefits, and prices of products or services to
make smarter buying decisions.

2. Influencing Decisions

Advertising affects what people buy by showing how a product or service stands out, solves a
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problem, or even makes them feel like they need it. Ads can shape our desires through catchy
messages and visuals and guide our choices.

3. Top-of-mind Brand Recall

Advertising keeps a product or service at the top of a customer's mind by helping them identify
the brand and capture mind share. Continuous exposure reminds customers of the Product,
strengthens brand recognition, and encourages repeat purchases.

4. Brand Identity Creation and Development

Advertising helps the brand by giving it specific values, qualities, or benefits. By creating a
different brand image, advertising promotes a business with more clients; otherwise, it builds
customer loyalty.

5. Demand Generation

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Advertising can create or develop wants and needs, building demand for something by
somebody, thereby ensuring increased sales volume and overall business development. For
instance, samples of advertisements for the "Great Indian Festival" offered by Amazon are
fantastic for knowing how coupons, discounts, and offers enhance sales volume.

6. Advertisements in Sales Operations

Advertisements help salespeople build an image of the products or services in the consumer's
mind. Once it creates interest or gives information, advertising helps convert through closing
sales and increasing the sales revenue.

Advantages of Advertising

•Economic Advantages of Advertising

Advertising is a tool for sustaining an ethical-based economy, an economic development system

focusing on the common good and human development. It is part of the functioning of modern
market economies that exist or are coming into being in many parts of the world. Harmonizing

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with moral principles emphasizing balanced human development, advertising will effectively
promote promotion and ethical competition for economic growth.

• Cultural Benefits of Advertising

The impact of advertising over media sources that depend on advertising revenues for funding
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their programming. Such influence enables advertisers to dictate media programming in a
manner that inspires intellect, aesthetically stimulates, and does not contradict ethics. Such
content support through financing helps satisfy public interest by developing media programs for
minorities whose needs could easily be overlooked.

• Social and Moral benefits of advertising

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It enables charitable and social organizations, such as religious communities, to provide vital
messages of trust, love, homeland, protest, help, and charity. These commercials advertise
health, education, and other matters that contribute to improving the lifestyle of people and
society. They also deal with ethics and moral behaviour.

Elements of advertising

• The elements specify the attributes, sociocultural, and behavioral of the people. Aims to
penetrate. This includes age, sex, geographical region, hobbies, and buying habits.
• Value Proposition: Communicating what the Product or service offers differently is a
value proposition. This core message is why customers should choose your brand over
others.
• Advertising Objectives: Setting well-defined and measurable objectives that the
campaign needs to meet. Examples include:
• Brand Awareness: Increasing brand awareness among the customers in the market.
• Customer Retention: Loyalty enhancement, repeat purchases

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 • Message and Creative Content: Brand messaging is the essence of marketing, which
focuses on clearly communicating the brand's voice, core values, and appeal. A brand
also determines what tone should be used, for example, informative, entertaining,
persuasive, emotional, etc., and what visual and verbal messages should target the
customers.
• Media: The selection of the proper communication channels to reach the targeted
customers also includes traditional media, such as Television, radio, newspapers, and
billboards. Digital Media: Facebook, Twitter, blogs, email, and apps.
• Budgeting: This encompasses determining how much to spend
on the different components of a campaign, including media, creative work,
and targeting.
• Timing and Scheduling: When to start the campaign and how long it will run.
It considers seasonal factors, product releases, and consumer behavior.
• Measurement and Evaluation Metrics are used to assess the ad campaign's success. Key
Performance Indicators (KPIs) like reach, engagement, conversion rate, ROI, and brand
awareness are used to evaluate performance.
• Budget Distribution: This helps determine how to distribute resources for the campaign,

•
audience.
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for instance, whether to purchase advertisements, create content, or reach the targeted

Scheduling and Organizing: An analyses and identification of the best time to commence
the campaign and how long it will last is essential . It factors seasonal trends, the time the
Product is being launched, and consumer buying patterns into its decision.
Measurement and Evaluation: Using metrics to evaluate the effectiveness of the
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advertising campaign. Key performance indicators (KPIs) such as reach. The key metrics
to measure the impact of the strategy are conversion rate, return on investment (ROI), and
brand lift.

Promotion Mix

Promotions involve the promotion mix, one of the critical components in marketing strategy, and
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comprise tools and techniques to reach and appeal to targeted customers. Four major promotional
elements are advertising, personal selling, sales promotion, and publicity.

Components of Promotion Mix

1. Advertising

Advertising is any paid form of non-personal communication through mass media about a
product, a service, or an idea by an identified sponsor.

2. Personal selling

Personal selling involves convincing a buyer to receive a unique opinion or performance. More
clearly, it is a transactional interaction in which the seller wishes to know a particular possible
buyer and comply with them by selling. Among the most common objectives of personal selling
is to sell, which involves getting the customer's attention through individualized
communications, creating relations, and answering their needs or wishes.

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 3. Publicity

Publicity is the non-personal creation of interest or demand for a product, service, or business
by developing newsworthy information in media outlets or obtaining favorable coverage on
platforms like radio, Television, or public events. Unlike advertising, the sponsor does not pay
for publicity; hence, it is an economical form of promotion. Promotion publicity is either positive
or negative since the content is in the hands of the media and not the organization itself.
Therefore, there is also a risk of unfavorable coverage that could influence the brand's reputation.

4. Sales Promotion

Sales promotion is a method of communicating with the target audience in a way that cannot be
achieved through other elements of the promotion mix. It can be described as "promotional
activities other than personal selling, advertising, and publicity that aim to encourage customer
purchases or enhance dealer performance within a specific timeframe." Sales promotions include
special offers, gift promotions, coupon discounts, demonstrations, trade fairs, and contests.

5. Public Relations:

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The objective of Public Relations is to create a good image to the company and its products in
the minds of stakeholders. These include press releases, sponsorships, community events, and
crisis handling.

Push Strategy vs. Pull Strategy

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Push Strategy

In a push strategy, the primary focus is pushing the product through the distribution channels
from the producer to the intermediaries (wholesalers, retailers) and the final consumer. The goal
is to persuade these intermediaries to stock and sell the Product to consumers.
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Features of Push Strategy

• Promotion to Intermediaries

The producer promotes the Product to wholesalers, distributors, and retailers.

• Sales Promotions

The emphasis is on personal selling, trade promotions (like discounts or bonuses), and offering
incentives to channel members to stock the Product.

• Personal Selling

Personal selling at the producer's level significantly convinces intermediaries to carry and
promote the Product.

Pull strategy

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In the pull strategy, the focus is on creating demand at the consumer level so that consumers
actively seek out the Product. The idea is to "pull" the Product through the distribution channels
by creating a strong demand among final consumers, who will then request the Product from
retailers.

Features of Pull Strategy

• Promotion to Consumers

The company uses mass media advertising and brand-building activities to create consumer
demand. Once consumers start demanding the Product, retailers, and distributors must stock the
Product to meet the demand. Heavy investment is often made in advertising and promotional
campaigns to create strong brand awareness and demand.

Life Cycle of Product

1. Product Development

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Product development involves a series of stages to bring an idea from concept to

market. This can be accomplished through proper market research, emerging trends, concept
testing, and product testing for durability and performance.

2. Introduction Stage
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This is the launching and introduction stage of the brand into the marketplace. In this stage, the
emphasis is on visibility and developing the target market's perceptions. Early marketing
activities aim to create the brand's uniqueness so that it is easily remembered among competitors.
At this stage, brand equity begins because some consumers will start using the brand.

3. Growth Stage
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In this stage, the brand is becoming more well-known and accepted. Increased sales, market
share, and consumer loyalty characterize this stage. This growth is attributed to effective
Branding, product quality, and good marketing. The brand slowly begins to stand for specific
values and or experiences, which adds to the equity of the brand as well as the power of the
brand.

4. Maturity Stage

In the maturity stage, the brand is established in the market. It has the loyalty and recognition of
customers. However, the growth rate declines when the brand achieves maximum market
coverage. At this point, there is some ability to sustain relevance through innovation, marketing,
potential brand extension, or even diversification into other markets. The challenge here is to
remain relevant while growing the business and maintaining the rudimentary fundamentals that
made it successful in the first place.

5. Decline Stage:

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At this level, a brand may encounter stagnation, decreased revenue, declining importance in the
market due to saturation, significantly altered consumer behavior patterns, or ruthless
competition.

Brands may lose their distinctiveness or fall out of touch with their audience. To combat the
decline, companies may rejuvenate or reposition the brand, introducing updates or changes to
regain relevance (e.g., rebranding or targeting new customer segments). If unsuccessful, the
brand may fade or be discontinued.

The PLC concept can also be applied to styles, fashions, and fads.

Style: A style is an essential and distinctive mode of expression.

Fashion: Fashion is a currently accepted or popular style in a given field.

Fads: Fads are temporary periods of unusually high sales driven by consumer enthusiasm and
immediate Product or brand popularity. A fad may be part of an otherwise normal life cycle, as
in the case of recent surges in the sales of poker chips and accessories. Alternatively, the fad may

Definitions Of Brands
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comprise a brand or product's life cycle.

"A particular sort or class of goods, as indicated by their trademarks."

Oxford English Dictionary definition

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"A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods
or services of one seller or group of sellers and to differentiate them from those of competitors."

American Management Association

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"A brand name is significant for functional products which operate in such market sectors as
household goods, stationery where rival brands all perform the same practical purpose, and
there is little, other than the name to distinguish between them."

Anthony Tennant

Brands focus on the following.

• They serve as a focus for consumer loyalties and can develop into assets that generate
easy and steady cash flows.

• Brands serve to capture the promotional investment put into it.

• Brands are strategic links between the manufacturer and consumer, regardless of
intermediaries.

• Better exposure leads to the increasing sophistication of consumer preferences for higher-
quality goods at lower costs and for better options.

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 • In competitive market boundaries, with global players offering products at nearly similar
prices, better guarantees and an aura around such products are essential.

• The availability of finance for everything has facilitated changing lifestyles, causing
people to aspire to things and buy them.

REFERENCES

Kotler, P. (2009). Marketing management. Pearson Education India

Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson
Australia.

Belch, G. E., & Belch, M. A. (2018). Advertising and promotion: Promotionrated marketing
communications perspective. Mcgraw-hill.

Shah, K. (2014). Advertising and integrated marketing communications. Tata McGraw-Hill

Education.

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