Advertising and Consumer Behaviour-1

NOTES BY- AMIT KUMAR AHIR
ADVERTISING AND CONSUMER BEHAVIOR
 Nature, Scope and Significance of Advertising, Legal, Ethical and Social Aspects of
Advertising. Models of Consumer Behavior.
 Advertising: Types of Media, Media Planning, Media Selection and Strategy. Creative
Advertising, Advertising Planning and Strategies.
 Introduction to Consumer Behavior, Consumer Buying Behavior, Consumer Behavior and
Marketing Strategy.
 Factors in the study of Consumer Behavior: Lifestyle, Motivation, Attitude, Learning,
Perception and Personality. Family, Groups, Social Class and Cultural Influence on
Consumer Behavior.
 Various Buying Behavior Models.
 Application of Consumer Behavior. Issues in Formulation of Different Marketing
Strategies.
1
UNIT-1
DEFINITION OF ADVERTISING
The word advertising comes from the Latin word "advertere” meaning to turn the minds of
towards".
The American Marketing Association defines advertising as “any paid form of non- personal
presentation and promotion of ideas, goods and services by an identified sponsor.”
Advertising is non-personal as it is not directed to any single individual. Secondly, the
sponsor i.e. the manufacturer or producer is identified as his name and address is always
contained in an advertisement and he also bears all the cost involved in the process. Thirdly,
the producer can also promote an idea regarding quality, design, packing and pricing, etc. of
any product or service. Thus, we can say, advertising consists of all activities involved in
presenting a sponsored message regarding a product, service or an idea.
Advertising is used for communicating business information to the present and prospective
customers. It usually provides information about the advertising firm, its product qualities,
place of availability of its products, etc. Advertisement is indispensable for both the sellers
and the buyers. However, it is more important for the sellers. In the modern age of large scale
production, producers cannot think of pushing sale of their products without advertising
them. Advertisement supplements personal selling to a great extent. Advertising has acquired
great importance in the modern world where tough competition in the market and fast
changes in technology, we find fashion and taste in the customers.
NATURE OF ADVERTISING
1. Non-personal presentation of message
In advertising there is no face-to-face or direct contact with the customers. It is directed to the
prospective buyers in general.
2. Paid form of communication

In advertising the manufacturer communicates with prospective customers through different
media like, newspapers, hoardings, magazines, radio, television etc. He has to pay certain
amount for using some space or time in those media.
3. Promotion of product, service or idea
Advertisement contains any message regarding any particular product, service or even an
idea. It makes people aware about the product and induces them to buy it.
4. Sponsor is always identified
2
The identity of the manufacturer, the trader or the service provider who issues advertisement
is always disclosed.
5. Communicated through some media
Advertisements are always communicated through use of certain media. It is not necessary
that there will be just one medium. All the media may also be used.
6. Profit Maximization
True advertising does not attempt at maximizing profits by increasing the cost but by
promoting the sales. This way It won’t lead to increase the price of the product. Thus, it has a
higher sales approach rather than the higher-cost approach.
7. Art, Science and Profession
Advertising is an art because it represents a field of creativity. Advertising is a science
because it has a body of organized knowledge. Advertising is profession is now treated as a
profession with its professional bodies and code of conduct for members.
8. Element of Creativity
A good advertising campaign involves lot of creativity and imagination. When the message
of the advertiser matches the expectations of consumers, such creativity makes way for
successful campaign.
SCOPE OF ADVERTISING
Advertising is often regarded as the most important means of marketing a company’s
services and tools. The scope of advertising is to communicate a message to current
customers or potentially target new customers. It helps a company get a message or a piece
of information across to their customer base regarding a new product or special deal.
 Scope of advertising by budget
There is always a budget allocated for advertising and promotion within the marketing
budget. The budget allocated should be in coordination with the type of advertisement the
organization wants. The resources and other requirements are to be kept in mind for the
budget allocation.
 Scope of advertising by deliverables
Once the budget is decided, the marketing plan can be projected further. A detailed scope of
work that deliverables require can be outlined. Agencies can now develop a proposed
resource plan.
3
 Scope of advertising by allocating deliverables

For creative work, allocating the type of deliverables (TV, online, mobile, press, magazine,
etc) based on the previous campaign requirements can be more insightful after the previous
plan.
 Scope of advertising by strategy
Once the deliverables are allocated, advertising agencies can define the strategic requirements
by brand or category and develop a scope of work based on past requirements and
remuneration for similar strategic deliverables
OBJECTIVES OF ADVERTISING
The fundamental purpose of advertising is to sell something – a product, a service or an idea.
In addition to this general objective, advertising is also used by the modern business
enterprises for certain specific objectives which are listed below:
1. To introduce a new product by creating interest for it among the prospective customers.
2. To support personal selling program. Advertising maybe used to open
customers' doors for salesman.
3. To reach people inaccessible to salesman.
4. To enter a new market or attract a new group of customers.
5. To light competition in the market and to increase the sales as seen in the fierce
competition between Coke and Pepsi.
6. To enhance the goodwill of the enterprise by promising better quality products and
services.
7. To improve dealer relations. Advertising supports the dealers in selling the
product. Dealers are attracted towards a product which is advertised effectively.
8. To warn the public against imitation of an enterprise's products.
SIGNIFICANCE OF ADVERTISING
1. To educate customers
Can you remember the advertisement of Tata Namak on television? In this
advertisement it is said that Tata Namak is good for health as it contains Iodine. This
message educates you that iodine is good for health and Tata Namak contains iodine.
Advertising educate the people about new products and their uses. Advertising message
about the utility of a product enables the people to widen their knowledge. It is advertising
4
which has helped people in adopting new ways of life and giving-up old habits. It has
contributed a lot towards the betterment of the standard of living of thesociety.
2. Introduction of New Product
It helps the introduction of new products in the market. A business enterprise can introduce
itself and its product to the public through advertising. A new enterprise can't make an
impact on the prospective customers without the help of advertising. Advertising enables
quick publicity in the market.
3. To create demand for new product
You read in newspaper that a new type of pen called ‘Gel pen’ is introduced in the market,
which is very economical and convenient in writing. This motivates you to buy the said pen.
Similarly, many students like you shall also buy gel pen after coming to know about it
through advertisement. This will create a demand for the new product launched in the
market.
4. To retain existing customers
You might remember that Nirma washing powder was a very popular detergent. But, after
Wheel powder came to the market the sale of Nirma suddenly decreased. Then the
manufacturers of Nirma improved the product and advertised about the same in different
media. After knowing this the persons who were earlier using Nirma did not switch over to
Wheel and continued using Nirma. In this manner Nirma sustained its existing demand.
Thus, advertising helps the manufacturers not only to create a demand for a new product but
also to retain the existing customers.
5. Creation of Good Public Image
It builds up the reputation of the advertiser. Advertising enables a business firm to
communicate its achievements in an effort to satisfy the customers' needs. This increases the
goodwill and reputation of the firm which is necessary to fight against competition in the
market.
6. Mass Production
Advertising facilitates large-scale production. Advertising encourages production of goods in
large-scale because the business firm knows that it will be able to sell on large-scale with the
help of advertising. Mass production reduces the cost of production per unit by the
economical use of various factors of production.
7. Research
Advertising stimulates research and development business activities. Advertising has become
a competitive marketing activity. Every firm tries to differentiate its product from the
substitutes available in the market through advertising. This compels every firm to do more
5
and more research to find new products and their new uses. If a firm does not engage in
research and development activities, it will be out of the market in the near future.
8. To increase sales
We have learnt that advertising creates demands for new products and sustains the demand of
old one. Thus, with increase in demand, the sale of the product also increases.
9. To assist salesman
In most of the advertisements the salient features of a product, its qualities and its uses are
expressed in detail. This assists a salesman to sell the product quickly without spending time
in explaining and convening the customer.
ADVANTAGES OF ADVERTISING FROM DIFFERENT VIEW

(i) From Viewpoint of Manufacturers:
A well-advertised product is easier to be sold by the salesman in the market. If a brand is popular
and well-known, people respond favourably to the salesman’s efforts. It provides a support to
salesmanship, as the audience understands the product and its uses more clearly through the
advertisement and the salesman’s effort is reduced to convince the buyers.
(a) Increase in Sales:

The main object of the manufacturer in advertising his products is to promote the sale of his
products. Goods produced on a mass scale are marketed by the method of mass persuasion
through advertising. Repetition of advertisements, the manufacturers are not only able to retain
existing markets but are also able to expand the markets both by attracting more people to their
products and also by suggesting new uses for them. Advertising is a helping hand to selling.
(b) Supplementing Salesmanship:

It creates a ground for the efforts of the salesmen. When a salesman meets its prospect, they have
just to canvass for a product with which the consumer may already have been familiarized,
through advertisements. Therefore, the salesman’s efforts are supplemented and his task is made
easier by advertising.
(c) Lower Costs:

Sales turnover and encourage mass production of goods are enhanced by advertising that results
in large scale production, average cost of production reduces and results in higher profits. At the
same time, when the cost of advertising and selling costs gets distributed over a larger volume of
sales, the average cost of selling also lowers down.
(d) Greater Dealer Interest:

Advertising creates demand by which every retailer gets an opportunity to share with others.
6
Hence, the retailers who deal in advertised goods are materially assisted by advertising in the
performance of their functions. The retailers have not to bother much about pushing-up the sale
of such products. Therefore, they evidence more interest in advertised products.
(e) Quick Turnover and Smaller Inventories:

A highly responsive market is created by well-organized advertisement campaign thereby
facilitating quick turnover of the goods. Resulting, in lower inventories in relation to sales and
being carried-on by the manufacturers.
(f) Steady Demand:

Seasonal fluctuations on demands for products are smoothened by advertising generally the
manufacturer tries to discover and advertise new possible uses of which a seasonal product
maybe put. The innovation of cold tea and cold coffee for the use during summer has helped in
increasing the demand for these beverages even in that season. The same maybe said for
refrigeration.
(ii) From Viewpoint of Consumers:
(a) Improvement in Quality:

Usually, goods are advertised under brand names. When a person is moved by the advertisement
to use the product, they proceeds on the hope that the contents of the particular brand will be
better than the other brands of the same goods. When his experience confirms his expectation, a
repeat order can be expected. Or else, the sales may rise very high once but may drop down very
low subsequently when the consumer’s confidence in the quality of the product fails.
(b) Facility of Purchasing:

Purchasing becomes easy for the consumers after advertising. Generally, the re-sale prices
(prices at which the goods are to be sold by the retailers) are fixed and advertised. Thus,
advertising offers a definite and positive assurance to the consumer that they will not be
overcharged for the advertised product. The consumer can make his purchases with utmost ease
and confidence.
(c) Consumer’s Surplus:

The utility of given commodities is increased by advertising for many people. It points-out and
pays even more for certain products which appear to have higher utility to them. If these
products are available at the original lower prices, there will naturally be a certain amount of
consumer’s surplus in terms of increased satisfaction or pleasure derived from these products.
(d) Education of Consumers:

Being an educational and dynamic principle, the prime objective of advertising is to inform and
educate the customers about new products, their features, prices and uses. It also convinces them
to adopt new ways of life, giving up their old habits and inertia and have a better standard of
living.
(iii) From the Viewpoint of Middleman:
7
(a) Retail Price Maintenance becomes Possible:

The consumers are quite keen on getting quality products at stable prices over a period of time.
Each consumer has his or her own family budget where he or she tries hard to match the
expenditure to the disposable income for a socially acceptable decent living. In case the prices go
on changing abruptly, these individual budgets are likely to be distorted to such an extent that the
consumers will have to think of substitutes for the products they are enjoying at present.
(b) Acts as a Salesman:

What a travelling salesman does for this organization is done by the advertising at least cost.
This is the reason that most of the retail organizations do not employ large army of travelling
salesman, rather they are willing to spend on advertising which attracts consumers to the sores
where the counter salesmen cater to their needs.
(c) Ensures Quick Sales:

Every retailer having the stock of different producers needs a quick turnover. By bringing the
wide range of these products to the notice of the consumers, advertising boosts up of sales.
Faster sales imply the specific advantages such as reduced capital look-up, reduction in losses of
holding stock over longer period, increased profits even by reducing the profit margin per unit.
Further, advertising gives much leeway and freedom to better serve the needs of the consumers.
(iv) From the Viewpoint of Society:
(a) Change in Motivation:

Radically advertising has changed the basis of human motivation. While people of earlier
generations lived and worked mainly for bare necessities of life, the modern generation works
harder to supply itself with the luxuries and semi-luxuries of life.
(b) Sustaining the Press:

For support and sustenance the newspapers, periodicals, journals, looks for advertisers, press,
look to advertisements. In the absence of income from advertising, the newspapers have to be
produced at a higher cost and may not be able to keep themselves free from its competitors.
(c) Encouragement to Artists:

Designing artists, writers to do creative work. They earn their living from preparing
advertisements.
(d) Encouragement to Research:

When manufacturers are assured of sufficient profits, they undertake research and discover new
products or new uses for existing products. Advertising puts forward this assurance and thereby
encouraging industrial research with all its advantages.
(e) Glimpse of National Life:

A glimpse of national life is provided by national life.
8
ROLE OF ADVERTISING IN SOCIETY
Advertising is the integral part of every day's life. It is a pervasive method of marketing in
society. Though the methods by which marketers advertise have changed over the decades,
the role and purpose of advertising has changed over the period of time. Without advertising
modern society cannot survive. Advertising is useful to society in following ways.
 Encourage Purchasing
Encouraging people to purchase goods and services is the main role of advertising. Some
industries rely on advertising more than others: A cereal company, for instance, must
advertise more aggressively, due to the wide arrange of competing products, than a power
company that faces little to no competition. Advertisers often influence members of society
to purchase products based on instilling a feeling of scarcity or lack.
 Reflect cultural trends
Advertising bridges the gap among people by communicating varied culture through
advertising message. It brings variation in the social life.
 Promotes Economic growth
Advertising contributes to bring about all round development of the economy by increasing
demand and by encouraging economic activities it fuels the desire to shop and, in turn,
shopping stimulates the economy.
 Improves standard of living
Advertising is an economic activity. It provides opportunities to people to improve their
income. It motivates people to consume more material and thereby improves their standard
of living.
 Provides employment
Effective advertising generates demand for goods and services. high demand calls for more
production which requires more of physical and human resources thus creating employment
opportunities.
LEGAL ASPECTS OF ADVERTISING

The government in each country has to make sure that advertisements appearing do not flaunt
of their rules & regulations. The ads released should not:-
 Show anti-national feelings (Or Communal feelings in case of India).
 Contains misleading information about the product.
9
 Violate government rules.

Some examples of the Advertisements with legal aspects:-
 Get your car checked for pollution.
 Drinks & driving do not mix.
 Weight, Price, Manufacturing date, Date of expiry should be mentioned on the
packing case.
Legal Advertising Strategies

As more law firms have adopted new advertising strategies, generating increased competition
to attract prospective clients, the need for a comprehensive legal marketing strategy has grown.
This involves both offline and online marketing activities that tailor the marketing approach to
clients.
Many law firms with several different practice areas need to target different buyer persons.
Modern digital marketing methods available today can personalize marketing campaigns
towards these different personas rather than advertising to a broader audience. This is a key
reason why digital marketing has gained popularity over traditional marketing approaches for
law firms.
The most popular legal marketing strategies include:
 Search engine optimization (SEO): SEO techniques are used to improve the visibility of
websites on Google's search engine results pages, building brand recognition and increasing
website traffic and attracting prospective clients.
 Social media marketing: Social media platforms help build brand awareness and while there
are restrictions on the use of social media for lawyers, many firms can benefit from
promoting themselves on platforms like Facebook and LinkedIn.
 Email marketing: Automated email campaigns can be used by law firms to connect with
leads as well as current clients. By regularly passing on legal news, tips and advice to a
database of potential clients, law firms demonstrate authority and stay top of mind.
 Pay-per-click advertising (PPC): Paid search marketing can generate leads more immediately
than SEO. With Google Ads, advertisements appear at the top of its search engine results
pages.
 Content marketing: Creating original content like eBooks, blog posts, articles and
whitepapers that provide information of value to the target audience helps law firms increase
visibility in Google searches, establish authority, and grow traffic and marketing leads. [67]
10
ETHICAL ASPECTS OF ADVERTISING

Ethics are the moral standards against which behavior is judged. The key areas of debate
regarding ethics and advertising are:-
a. Truth in advertising
 Deception is making false or misleading statements.
 Puffery (commercial exaggeration) is legal.
 Cannot legislate against emotional appeals.
b. Advertising to Children-Issues
 Advertising promotes superficiality and materialism in children.
 Children are inexperienced and easy prey.
 Persuasion to children creates child-parent conflicts.
 What does the literature say about kid's abilities to process persuasive information?
c. Advertising Controversial Products
 Advertising of Tobacco, Alcohol, Gambling and Lotteries are of greatest concern.
 How does the concept of "primary demand" provide insights here?
 What does the literature say about advertising's impact on these product categories?
SOCIAL ASPECTS OF ADVERTISING
Adverting as a part of firm’s marketing effort operates in the society. It has to follow the
social norms. Key areas of debate regarding society and advertising are:- Deception,
Manipulation & Taste.
a. Deception
It refers not only to the information content in advertising but may also arise from
misplace emphasis in presentations.
According to federal trade commission of the USA- “Advertising as a whole must not create
a misleading impression although every statement, separately considered may be literally
truthful"
11
b. Manipulation
The freedom of choice of consumers is restricted by the power of advertising since it can
manipulate buyers into making a decision against their will or interest. Manipulation is done
through emotional appeals. These companies can utilize advanced and very scientific
advertising techniques and thus make an impression on consumers.
c. Taste
Sometimes ads are offensive, tasteless, irritating, boring and so on.
 Sources of distaste
 Sexual Appeals
 Shock advertising
Some examples of the Advertisements with social aspects
 Drink milk
 Eat healthy food, eat eggs
 Mother's milk is best for the baby
 Say no to drugs every time
 Get your child vaccinated on time
Advertisement represents social life as it updates us daily. It is a part of our life
because we breath advertisements like air. It sends the latest information about new products.
Advertising is blamed for manipulating customers to buy things which they do notrequire.
So there are some positive social effects & negative social effects of advertising:
Positive Social effects of Advertisements

The following are some of the positive Social effects of Advertisements
1. Informed Society
Through advertisements, the society is informed of various products, their uses, best
bargains, safe handling of dangerous goods, effective use of scarce resources like petroleum
and electricity, technological advances, etc.
2. Health and Hygiene Awareness
The advertisements on health drinks, toiletry products, sanitary ware and their installation,
etc., make the people become aware of health and hygiene. Also advertisements on
protected drinking water, effluent treatment, etc., help people live better.
12
3. Rights of Consumers
The rights of consumers are made aware through advertisements only. The spread of
consumerism and awareness of consumer rights are also due to advertisements.
4. Preventive course for dreaded diseases
Dreaded diseases like AIDS, COVID, etc are informed to the people as to their cause, spread
and preventive measures against them.
5. New ideas
Generally, people are traditional. They should be informed of the development of latest
technology. Creative advertisements render an effective service here.
6. Advertisements contribute to creativity of people
Look at certain advertisements. Your bathroom can be a glamour-room is presented by the
Parry’s sanitary ware. Perhaps, next to nature, the art of advertising is more creative is
anybody’s knowledge.
7. Environmental protection
Environmental protection is the need of the hour. The brutal onslaught on nature by
indiscriminate felling of trees, letting off untreated industrial effluents into the open, growing
urbanization and consequent burgeoning urban slums, etc., are brought to the knowledge of
people and awareness is created against environmental degradation.
For example, the Tamilnadu Pollution Control Board has launched an effective campaign
highlighting against the indiscriminate use and burning of plastics. Such messages are
brought to the notice of people through advertising.
8. Social changes
Social changes like accepting women as equals, empowerment of women, concern for the
girl child and curbs on female infanticide, developing public opinion against child labor,
etc., are created through advertisements only.
9. Quality consciousness
Concern for quality of a product, process, or even life, work, education and, investment etc.,
is promoted through advertisements.
10. Promotion of national interest
National interest is promoted through advertisements as well. Complying with tax laws,
complimenting export achievement, promotion of tourism, protection of monuments,
creating political awareness of citizens, etc., are pursued through advertisements.
13
Negative Social effects of Advertisements

The following are some of the negative Social effects of Advertisements
1. Promotes consumerism
We are always told to buy new clothes that girls need to wear makeup if they want to be
pretty and that you can’t be ‘cool’ without having the latest iPhone. Adverts have taught us
these habits and many more because it keeps us buying more and keeps companies rich. The
majority of advertisements promote the fact that buying more stuff will make you happier.
But this consumerist lifestyle is what is actually ruining your life.
2. Encourages you to spend money for no reason
Many companies convince you to think that you need their useless product even though the
reality is, it wouldn’t make any significant difference in your life. Think about it this way.
For so many years you were able to live without their product. So why waste your money,
which you worked hard to earn, on something that you could live without. It might make
your life a tiny bit easier, but is it really worth it?
3. Buying more stuff is bad for the planet
Consumerism is also causing massive environmental destruction. To make all this stuff (that
people do not even need), trees need to be cut down and metals need to be mined. Not only
do these deplete our natural resources but these processes release greenhouse gases into the
atmosphere and ecosystems get destroyed. Now that’s a pretty big price for the earth to pay
for something that will not make us any happier.
4. Promotes harmful substances
The promotion of alcohol and smoking is making more people addicted to them. They are
extremely bad for our health, yet they make them seem amazing. Teenagers, for instance,
think that drinking and smoking will get them more friends and make them more popular.
That’s what society is telling them and after so many years, they believe that too.
5. Clutters our minds
This is not one of the obvious effects of advertising but it’s certainly an important one.
Everywhere we look we hear or see adverts. This is constant unnecessary information that
our brains must process. Individuals are trying to simplify their lives in this hectic modern
world, but adverts are making it 100 times harder for them to declutter their lives.
6. Misleading
More often than not, companies make products look amazing in advertisements but do not
perform nearly as well in real life. This is done to benefit the company since more people
will buy their products. The only thing concerning them is increasing their sales. They
couldn’t care less about the fact that they are robbing you of your money.
14
DIFFERENT TYPES OF CONSUMER BEHAVIOR MODELS

Messrs. Bettman and Jones have classified consumer behavior models into four basic types.
They are:
(a) Stochastic or probability models.
(b) Linear experimental models.
(c) Information processing models.
(d) Large systems models.
In the following few paragraphs you will be given a brief idea on each of these four types of
consumer behavior models:
(a) Stochastic or Probability Models:
Models in this category are basically based on the learning theories. According to the
learning assumption, buying behavior of an individual is dependent on his past, particularly
the immediate past purchase behavior and the consequent experience. This type of models is
based on two components. One component describes different aspects of behavior by
developing small independent models on each aspect. The second component combines each
of these individual models into one large model to explain the behavior as a whole. While
combining the independent models into one unified model, the model developers assume that
the entire group of people will behave in the same fashion as the individual does.
(b) Linear Experimental Models
The stochastic or probability models describe individual consumer behavior. On the other
hand, the linear experimental models give us idea on the behavior of market in general. These
are the mathematical models and are difficult to understand by those having no mathematical
background.
(c) Information Processing Models
These models are based on the cognitive orientation of different psychological aspects such
as learning, perception etc. According to cognitive orientation, individuals constantly receive
information from the environment and process and evaluate those, using their cognitive
structures to arrive at decisions. Therefore, models in this category describe consumer
behavior in terms of information gathering, processing, evaluating and deciding based on the
evaluation. Models in this category highlight on the behavior of individual, not the group
behavior. Models are developed here by studying the buying process of consumers either
formally, or informally. The findings of such studies are used as the foundation of model
construction.
(d) Large Systems Models
15
These are the models mostly used by the consumer behavior researchers as well as marketers
in predicting consumer behavior. They describe behavior in terms of variables and their
relationships. Different variables influencing consumer decision are organized
diagrammatically in these models in a logical way showing their relationships and
interactions. Therefore, these models are broad but comprehensive, in the sense that they
describe behavior in logical and understandable ways. The understanding of behavior is made
possible in these models by the use of flow charts. The flow diagram identifies relationships,
interaction, and interdependencies among variables or factors determining consumer
behavior.
16
UNIT-2
CLASSIFICATION OF ADVERTISING
Management scientists have classified advertising on different such criteria as follows:
I) Classification on The Basis of Area Coverage
On this basis of area coverage, advertising may be classified into the following four
categories:
(1) Local Advertising.
(2) Regional Advertising.
(3) National Advertising.
(4) International advertising.
1. Local Advertising
It is also known as “retail advertising‟. It is undertaken by local retail stores, departmental
stores, co-operative stores, selling cloth, saris and other consumer goods and consumer
durables. It is directed at local customers. Media, used for local advertising, are shop
decorations, local newspapers, magazines, posters, pamphlets, hoarding, new signs, local
cinema houses, etc.
2. Regional Advertising
It has wider coverage, as compared to local advertising. It covers a particular region, which
may be one state, or, more than one state, the people of which may be having a common
tongue, or, using one common product. It is undertaken by manufacturer or regional
distributor of a product. Media, used for regional advertising, include regional newspapers,
magazines, radio, regional T.V., outdoor media, etc. It is considered to be an ideal form of
advertising for launching and marketing a new product in a specific region.
3. National Advertising
It is generally undertaken by manufactures of branded goods, for which, advertising messages
is communicated to consumers all over the country. Almost all possible mass media, including
national newspapers, radio and television network, are employed for national advertising.
Product services, and ideas, which have demand all over the country, are suitable for national
advertising. In India, Indian Airline Hindustan Lever Ltd., Vicco, Godrej, Bajaj, are a few
leading advertisers at national level. Likewise, detergents, soaps, toothpastes, cosmetics,
scooters, cars, and bicycles, are some of the products, which are advertised all overthe country.
17
4. International Advertising
This type of advertising is undertaken by those companies, which operate in more than one
country, known as „multi-national‟ companies. Exporters, generally advertise their products
and services in foreign countries, where ready markets are available. Air India and other
airlines, and multinational companies advertise their products and services all over the world.
Coca-Cola and Pepsi are advertised globally, as the sales are almost all over the world.
International advertising is extremely expensive, involving the services of professional
advertising agencies in different countries.
II. Classification on The Basis of Audience

On this basis of audience, advertising may be classified into the following four categories:
(1) Consumer Advertising.
(2) Industrial Advertising.
(3) Trade Advertising.
(4) Professional Advertising.
1. Consumer Advertising
This type of advertising is directed to the ultimate consumers of the consumer products, i.e.,
the individuals, who buy, or, use the consumer products, or services, say, for example, toilet
soap, toothpaste, toothbrush, tea, textiles, etc., for themselves and for their families. All types
of consumer products need continuous and extensive advertising on T.V., Radio and Press.
2. Industrial Advertising
This type of advertising is used by manufacturers and distributors of industrial goods. Such
as, machinery, plants, equipments, spare parts and components, and are directed at industrial
users or customers. Such advertisements usually appear in trade journals, trade dictionaries,
and business magazines and so on. The appeal made is tactual and rational.
3. Trade Advertising
This kind of advertising is employed by manufactures and/or distributors to influence and
persuade wholesalers and dealers (retailers) to stock and sell the goods of the advertiser by
offering incentive schemes to them, or, by inviting dealership for their particular products.
4. Professional Advertising
It is directed at professional like doctors, professors, engineers and others, who are expected
to recommend, prescribe, or, specify the advertised products to ultimate consumers. This is
done through professional journals and representative of the advertisers.
18
III. Classification on The Basis of Media

On the basis of media, advertising may be-classified into the following four categories:
(1) Print Media Advertising.
(2) Electronic or Broadcast Media Advertising.
(3) Outdoor Media Advertising.
(4) Other Media.
1. Print Media Advertising

The print media consists of newspapers, magazines, journals, handbills, etc. No newspaper
or, journal, today, can survive without advertising revenue. Print media advertising, even
today, is the most popular form; and revenue derived by mass media from advertising has,
therefore, been progressively increasing year after year. Print media appeals only to the sense
of sight, i.e. eyes.
2. Electronic or Broadcast Media Advertising
Electronic or, broadcast media consists of
(i) Radio.
(ii) Television.
(iii) Motion pictures.
(iv) Video.
(v) Internet.
The radio is audio in nature, appealing only to the sense of sound (ears). Radio advertising is
more effective in rural areas, as compared to urban regions.
Television, as an advertising medium, is more attractive and effective because it is an audio-
visual medium appealing to both the senses of sight sound (eyes and ears).
Different methods, such as, spot announcements, sponsored programmes, etc., are used for
broadcasting advertising messages. However, broadcasting media are very expensive form of
advertising. Advertising is also undertaken through movies, video, and the internet.
3) Outdoor Media Advertising
This includes posters, neon signs, transit, point of purchase (POP), etc. Outdoor advertising
can be a good supporting media to other forms of advertising. It is a good form of reminder
advertising, especially, the POP advertising.
19
4) Other Media
This includes direct mail, handbills, calendars, diaries, cinema advertising, and internet and
so on. These miscellaneous media can play an important supporting role to the major media
such as television, and newspapers.
IV. Classification on The Basis of Function

On the basis of function, advertising may be-classified into the following three categories:
1. Direct Action and Indirect Action Advertising.
2. Primary and Selective Advertising.
3. Product and Institutional Advertising.
1. Direct Action and Indirect Action Advertising
Direct action advertising is undertaken to obtain immediate response or action on the part of
target audience. Examples include discount sales advertising, sale along with free gift offers,
and mail-order coupon sales, etc. The media used is mostly newspapers, and television.
Indirect action advertising is undertaken to influence the audience in respect of advertiser’s
brand. The advertiser expects the target audience to prefer his brand as compared to
competitors whenever a buying decision arises in future.
2. Primary and Selective Advertising
Primary Advertising is undertaken by trade association or by cooperative groups. It is
undertaken to create generic den1 and for products and services. For example, the Coffee
Board may advertise to consume more coffee. Selective Advertising is undertaken by
marketers of branded products. The advertiser intends to create selective demand for his
brand. Examples include Pepsi Cola, Coca Cola.
3. Product and Institutional Advertising
Product or Service advertising is undertaken to promote the sale of products and services-
branded or unbranded. Institutional advertising is undertaken to build name and goodwill of
the organization. It is also known as corporate advertising or image advertising. It is mostly
undertaken by large firms.
V. Classification on The Basis of Advertising Stage
On this basis of advertising stage, advertising may be classified into the following three
different categories
(1) Advertising at Pioneering stage.
(2) Advertising at Competitive stage.
20
(3) Advertising at Retentive stage.
1. Advertising at Pioneering Stage

Advertising at “pioneering stage” is undertaken to make the audience fully aware of the new
brand of product and to inform, influence, and persuade them to buy, or, use it by highlighting
its unique features.
2. Advertising at Competitive Stages
Once the brand survives the introductory stage, it has, soon to face a stiff competition with
other well established brands in the market. At this stage, competitive advertising is
undertaken to promote sales effectively.
3. Advertising at Retentive Stage or Reminder Advertising

When the product has captured a large share of the market, “retentive advertising‟ is
undertaken to maintain, or retain the stable position in the market as long as possible.
Moreover, if the same product is passing through the declining stage in the market, this
type of advertising is used to remind the buyers about the product hence, it is also known as
“reminder advertising”.
TYPES OF MEDIA
An advertising media is a means or vehicle of delivering a definite message. It is a means

through which an advertising message or information is passed on to the prospective
customers, readers, viewers, listeners. For instance, a producer seeks through advertisement
media to keep in touch with old customers as well as to attract new customers. Medias are
subject to intensive buying and selling activity. Examples of media are newspapers,
magazines, radio, television, direct mail, posters, catalogues etc. The most brilliant and
original advertising ideas will be wasted if they are not presented through the right media in
the right place at the right time to the right people. Hence the selection of right media is an
important for achieving the objectives of advertising.
The different types of media are:-
(A) Print Media
Print media is a very commonly used medium of advertising by businessman. It includes
advertising through newspaper, magazines, journals, etc. and is also called press advertising.
21
1. Newspapers
You must have read Newspapers. In our country newspapers are published in English, Hindi
and in other regional languages. These are the sources of news, opinions and current events.
In addition, Newspapers are also a very common English, Hindi and in other regional
languages. These are the sources of news, opinions and current events. In addition,
Newspapers are also a very common medium of advertising. The advertiser communicates
his message through newspaper which reaches to crores of people.
Advantages
Advantages of Newspaper Advertising are as below:
i. Newspapers normally have wide circulation and a single advertisement in the newspaper
can quickly reach to a large number of people.
ii. The cost of advertising is relatively low because of wide publication.
iii. Generally newspapers are published daily. Thus, the same advertisement can be repeated
frequently and remind readers every day.
iv. The matter of advertisement can be given to newspapers at a very short notice. Even last
minute changes in the content are also possible. This makes advertising quite flexible.
v. Newspapers are published from different regions and in different languages. Hence, they
provide greater choice to advertisers to approach the desired market, region and readers
through local or regional language.
Limitations
Newspaper advertising suffers from some limitations as mentioned below:
i. Newspapers are read soon after they are received and then are kept generally in some
corner of the houses. After 24 hours we get a fresh newspaper and this makes the life of
the newspaper short.
ii. People read newspapers mainly for news and pay casual attention to advertisement.
iii. Illiterate persons cannot read and thus, newspaper advertising does not benefit them.
2. Periodicals
Periodicals are publications which come out regularly but not on a daily basis. These may be
published on a weekly, fortnightly, monthly, bimonthly, quarterly or even yearly basis. For
example you must have come across magazines and journals like Outlook, India Today,
Frontline, Yojana, Femina, etc. published regularly in English, Grah Shobha, Nandan and
22
Champak in Hindi. Similarly there are also periodicals in Hindi and other regional languages.
All these periodicals have a large number of readers and thus, advertisements published in
them reach a number of people.
Advantages
i. Periodicals have a much longer life than newspapers. These are preserved for a long period
of time to be referred in future or read at leisure or read again, whenever required.
ii. Periodicals have a selected readership and so advertisers can know about their target
customers and accordingly selective advertisements are given. For example, in a periodical
like Femina, which is a magazine for women, advertisements related to products to be used
only by males are rarely published. However, manufacturers of products and services to be
used by females prefer to give advertisement in this magazine.
Limitations
i. Advertising in periodicals is costlier.
ii. The number of people to whom the advertisements reach through periodicals is small
in comparison to newspapers.
iii. The advertisement materials are given much in advance; hence last minute change is
not possible. This reduces flexibility.
(B) Electronic Media

This is a very popular form of advertising in the modern day marketing. This includes
Radio, Television and Internet. Let us look into detail about these.
1. Radio Advertising
All of us are aware about a radio and must have heard advertisements for various products in
it. In radio there are short breaks during transmission of any programme which is filled by
advertisements of products and services. There are member of popular programmes
sponsored by advertisers, on radio in which advertisements are given at regular intervals.
Advantages
(i) It is more effective as people hear it on a regular basis.
(ii) It is also useful to illiterates, who cannot read and write.
23
(iii) There are places where newspapers reading may not be possible, but you can hear radio.
For example, you can hear radio while travelling on road or working at home; but you cannot
read newspaper. Similarly, while driving you can hear a radio but cannot read a newspaper.
Limitations
(i) A regular listener may remember what he has heard. But, occasional listeners tend to
forget what they have heard in Radio.
(ii) The message that any advertisement wants to communicate may not be proper as there is
no chance to hear it again immediately. There may be some other disturbances that distort
communication.
(iii) In comparison to Television, Radio is less effective as it lacks visual impact.
2. Television Advertising
With rapid growth of information technology and electronic media, television has topped the
list among the media of advertising. TV has the most effective impact as it appeals to both
eye and the ear. Products can be shown, their uses can be demonstrated and their utilities can
be told over television. Just like radio, advertisements are shown in TV during short breaks
and there are also sponsored programmes by advertisers.
Advantages
(i) It is most effective as it has an audio-visual impact.
(ii) With catchy slogans, song and dance sequences, famous personalities exhibiting
products, TV advertising has a lasting impact. For example, who can forget Aamir Khan
saying “Thanda Matlab Cocacola” or Sachin Tendulkar in Pepsi advertisement?
(iii) With varieties of channels and programmes advertisers have a lot of choice to select the
channel and time to advertise.
(iv) With regional channels coming up any person even illiterates can watch the
advertisements and understood it by seeing and hearing.
Limitations
(i) TV advertisements are usually expensive to prepare as well as to telecast.
(ii) With almost every manufacturer trying to communicate their message through TV
advertising the impact among the viewers is also reducing. Now-a-days people are switching
on channels whenever there is a commercial break.
24
3. Internet Advertising
Are you aware about internet? Infect it is the latest method of communication and gathering
information. If you have a computer with an access to internet you can have information
from all over the world within a fraction of second. Through internet you can go to the
website of any manufacturer or service provider and gather information. Sometimes when
you do not have website addresses you take help of search engines or portals. In almost all
the search engines or portals different manufactures or service providers advertise their
products.
Advantages
(i) Information from all over the world is made available at the doorsteps.
(ii) User can see the advertisement at any time and as per their requirement.
Limitations
(i) It is not accessible without a computer.
(iii) It is not suitable for illiterate and those having no knowledge about the operation of
Internet.
(C) Outdoor Advertising Media
1. Posters
This is the most common and popular form of outdoor advertising. These are exhibited on a
hoarding or on walls, roofs, fences, chimneys etc. A really commanding effect can be
produced by posters which cost less than any other advertising media. Design is the basis of
all poster- advertising. These mostly contain pictures. Advertising for a movie is done in this
way. Even where no pictures are used, the proper arrangement of lettering is important. The
posters should be simple, attractive and capable of telling its story at a glance. Posters also
give considerable scope for the use of suitable and attractive colours. Humour can also be
used with advantage in poster-advertising.
2. Advertising Board
These are also posters which are kept at certain fixed places especially at points where people
frequently assemble, such as bus stops, railways, crossings etc. Generally these advertising
25
boards are made of metallic sheet enclosed in a wooden frame and fixed with a panel having
specified height at main junctions. These are fixed and well set with flood-lights.
3. Vehicle Advertising
It refers to moving advertisement. It consists of placing posters or playcards inside or outside
vehicles such as trams, buses, taxies, delivery-vans, railway carriages etc. The main
advantage of this system is the small space available for such posters. These posters are fairly
sighted by the eyes and can be easily read. This method is a very common media and is
considered to be very effective.
4. Electric Displays and Signs

Signs illuminated by electricity are today to be seen in large number in cities. This is the
most modern and the most attractive form of outdoor display. It may consist of wooden
letters studded with bulbs. Sometimes with a view to attract the attention, coloured bulbs are
used and the colours are changed at short intervals. Another device used to attract attention is
to turn on the light on each letter at a time to give the impression of the sign being written by
an invisible hand.
5. Sky Advertising (Sky Writing)

Sky advertising is another modern form of outdoor advertising. In this form of advertising
media an aeroplane writes the name of the product or the producer in the sky. It is also
known as “smoke writing‟ because the message is written in the sky by means of smoke.
Large sized printed balloons are also dropped from the aeroplane in the sky. Usually, near the
circus-tents, a large sized balloon is floated on which the name of the circus is written.
6. Sandwitchman
They are hired persons and properly dressed who walk in the streets in a procession with
boards, posters and notices placed about them. The idea is to attract the attention of the
public. The cinema-theatres usually arrange this kind of advertising media when a new
picture is released.
7. Stickers
It is also an important form of outdoor advertising. In this case, the advertiser enters in a
contract with the popular players that whatever they will wear or use during the match will
bear the sticker of the advertiser.
26
Advantages
1. It has a wide coverage.
2. It is capable of gaining more attention of the public.
3. Outdoor advertising is more useful for local dealers. Its results can be more readily
secured by using this form of advertising.
4. In big cities and high traffic areas, outdoor advertising is the most effective form of
advertising.
5. Outdoor advertising is more flexible.
6. It is a very good media to stress brand names and package identity.
Limitations
The outdoor advertising media possess the following disadvantages, demerits or limitations
and thus are subject to criticism:
1. It is subject to adverse reaction of the public on the ground that the walls of the houses are
used for writing outdoor advertisement even without the permission of the owner of the
house.
2. The message written under this type of advertising is too brief.
3. The exact effect created on prospects is difficult to measure.
MEDIA PLANNING
Media planning is the process by which marketers determine how, when, and where an
audience is given a selected advertising message. Media planners analyze the audiences,
channels, and advertisements to determine the most efficient way to communicate a message
to the intended audience.
Media planning is most often done by media planners at advertising agencies. Media
planners must work with media buyers and the client organization to develop a strategy to
maximize ROI (Rate Of Investment) on media spend. Media planners are required to have a
firm understanding of the organization’s brand and target audience, various media platforms
and developing media trends. Media planning consists of formulating a strategy, evaluating
its effectiveness, and adjusting, while buying is the execution of the strategy.
27
Types of Media Planning

To create an effective media strategy for your brand, you must decide what types of media
(traditional or digital) will be cost-effective and bring in sales.
There are three main types of media that are considered when building a media plan:
1. Paid Media
Paid media refers to advertising that is the result of paid placement from the brand. This
includes pay-per-click advertising, display ads, and branded content. This is the most
common way for brands to get exposure and boost sales.
2. Owned Media
Owned media is content that is owned by your brand, i.e. blog posts and social media
accounts. By increasing the use of the company’s owned media, you can increase your
customer reach and increase brand awareness.
3. Earned Media
Earned media refers to the publicity the brand gets from outlets other than their own
company. For example, customer reviews, media coverage, and word-of-mouth are all forms
of earned media. This form of media is valuable because it often comes directly from
consumers. This feedback can also help improve the quality of the product or service you are
offering. By weighing the cost and benefits of each platform, your company can decide what
resources and forms of media will fit best into your media plan.
Benefits of Media Planning

Today’s modern marketing often requires marketers to leverage multiple forms of media, and
a data-driven media plan provides marketers with centralized information across all
platforms. This helps to optimize campaigns and messaging, as well as streamline the
campaign review process.
Key benefits of media planning include:
 Establish Processes
28
Media buying can be a complicated and time-consuming process. By getting your plansand
processes in place, you can improve efficiency and save resources across the board.
 Budget Tracking
Marketers have to know their budgets and a good media plan accounts for all costs and
estimated ROI.
 Audience Segmentation & Analysis

So much of media planning understands your audience and what message will resonate
with them.
5 elements of the most effective segments should be
1. Measurable – based on size, purchasing power, and segment profile

2. Substantial – of a critical mass that is profitable
3. Accessible – one that can easily be reached
4. Differential – is distinctive from others
5. Actionable – that enables effective programs/campaigns to be developed
 Optimization & Testing

A good media plan uses the data at hand to determine what has worked, what isn’t working,
and what might work based on existing data.
 Improved ROI
It’s called a plan for a reason. Media planning allows you to create an optimized campaign
that delivers ROI.
MEDIA SELECTION AND STRATEGY
The selection of a media is very important. It will influence the impact and cost of
advertising. The target audience should also be identified. An advertising campaign cannot
contribute to success unless the target audience is exposed to it. The purpose of media
selection is to transmit the message of advertising to the target audience effectively and
29
economically. The selection of media involves the selection of a particular source or vehicle
of advertisement and its utilization over a period of time. Medium or media selection is a
unique decision to be made by the advertiser. There is no one medium that is best for all
business units and what is best depends on the unique individual situation of the business
unit.
Factors Influencing Media Selection

In making media selection, we have to consider the following factors:
(i) The financial allocation for advertising.

(ii) The nature of the product and the demand for it.
(iii) The type of prospects, their location and other characteristics,
(iv) The nature of competition and the extent of coverage required,
(v) Cost of media, co-operation and promotional aids offered by media, media circulation.
Right media of advertising will enable the advertiser to deliver the message effectively to the
intended markets or prospects. Media choice is determined by a number of factors such as-
Number of viewers, readers, and listeners, characteristics of audience- education, sex,
income, family size, and relative cost of various media. Media selection helps the advertiser
to find out which type of media to be used.
Media of Advertising:
(i) Print Media – Newspapers, Magazines and Periodicals.
(ii) Broadcast Media – Radio, T.V., Film, Screen Slides, and Internet.
(iii) Out-Door or Mural – Posters, Advertising Boards, Vehicle advertising, Electric
Displays &Signs, Sky advertising, Sandwitchman and Stickers.
Which particular media should be selected will depend upon the following factors:
(i) Coverage
What is the coverage of the media? To how many people it reaches? If the target audience is
clear then the media covering will be easily selected.
(ii) Flexibility
30
The flexibility in a media will allow the advertiser a freedom to adjust as per his
requirements. The coverage may gradually be increased on the response of the audience.
(iii) Frequency
The media should allow the adjustment of frequency of advertisement. If there is a good
response from the audience then the frequency may be increased. If the media does not
provide any readjustment in frequency, then it may pose some problems later.
(iv) Selectivity
The media may be tilted towards a particular segment of audience. Some magazines may be
more preferred by women readers while some others may be liked more by professionals. The
type of audience or viewership of the media should be considered before taking a decision.
(v) Creative Scope

Do the media allow a creative scope for the message or visual? It may allow the
depiction of various colours in an advertisement. It should be the message which be
developed as fully as possible.
(vi) Cost
The cost of undertaking various forms of advertising should be assessed properly. The cost
cannot be ascertained by calculating the amount spent upon it but by the response it has
received. If a TV advertisement is telecasted at such a time that it goes unnoticed by many
people then the cost will be high even though the money spent is less.
Media Strategy
Media strategy is the usage of the appropriate media mix in order to achieve desired and
optimum outcomes from the advertising campaign. It plays a key role in advertising
campaigns. Media Strategy is not just about informing customers about products or services
but also placing right message towards the right people at the right time. Media strategy is
very important when it comes to branding and sending a message to the target group.
Without a correct media strategy, the message would not reach to right people at the right
time and a company will end up spending a lot of money as well. A right media strategy has
the right mix of all the factors which are essential in reaching out to the customer.
31
Factors in deciding Media Strategy

Following are the factors in devising media strategy for a company:
1. Location
Location is all about where to launch and run the campaign. Location should be the one
which gives maximum ROI. In current scenarios, online and offline locations are both
considered while deciding a media strategy.
Apart from conventional channels, even social media for relevant locations is used.
2. Budget
For deciding the media strategy, budget is very important. Every brand wants to reach
maximum target audience using all possible channels but that is not possible as everything
costs money and we need to optimize costs and hence the budget impacts the media strategy.
3. Timing
Timing is an important aspect of media strategy. When to show the messaging to the
customers can make all the difference.
Toothbrush or toothpaste ads may be more effective during morning or late evening as
target group might actually be about to interact with a toothpaste/brush.
4. Channel
Channels and locations are quite similar in current context where online media is very
relevant but for conventional advertising and messaging, a lot of channels like
1. TV
2. Print
32
3. Radio
are still very relevant and used extensively in the media strategy.
The timing of advertisement is very critical especially with respect to the seasonal products.
There is no point in airing advertisement for room heaters in summer season. It should be
aired right at the end of monsoon and beginning of winter season.
CREATIVE ADVERTISING
Definition
Creative advertising is defined as a strategy to effectively and creatively advertise a brand or

product in a way that people remember them. It moves the customers and forms/changes their
perceptions by connecting with them. A clever advertisement doesn’t feel like an
advertisement. It imprints itself on the customer’s heart and mind instead. Creative
Advertising is more than necessary in a world where people hardly remember an
advertisement even after watching it several times during the day. There is comparatively
more emphasis on quantity nowadays than quality, leading to a decrease in creative and
effective advertisements. A brand or a product needs to be remembered by the public. If the
customers can recall a brand or product and its advertisement, it is likely to prosper in the
long run.
The need for creative advertisement is to effectively and creatively impact customers’ psyche
for better branding and marketing of a company and its goods and services. It becomes more
critical because people don’t have much time to repeatedly go through boring and
conventional advertisements.
It is way too easy for them to skip the ad and move on with their shows and videos. It is
where Creative Advertising comes to play. Advertisements with unconventional and relatable
content would lead a brand to reach millions. People through Creative Advertising would
remember both the advertise and the brand.
Features of Creative Advertising – What do Creative Ads include?
1. The originality of the content

Originality is a crucial factor in creativity. Your creativity comes from within you and not
from someone else. Hence, anything that is original and which belongs to you denotes your
creative perspective. In advertisements as well, originality and uniqueness have their voices.
33
The ideas incorporated in the ads need to be unique and not repetitive. There can be newer
visual details or original captions and taglines that would attract the viewers. In the case of
video ads, there can be new stories, new faces, and new scenes of stories, which will add a
hint of creativity.
2. Elaboration of the concept

Once the basic idea of the ad is finalized, illustration is the next important step.
Elaboration can be of two types; it can either add an unexpected twist to the story or elevate
it to an altogether new level. The elaboration details awaken the interest of the viewers and
make them invest in the company’s product. However, one should take care that the details
are not dull or bulky.
There should be crispiness and freshness in these details. Elaboration done without a just
cause and track can be mundane and will rather ruin the advertisement than bettering it in any
way. It’s a crucial point.
3. The flexibility of ideas

Flexibility means the virtue by which one thing can easily mould itself into several different
forms. We live in a hugely diverse world. There are people of different mindsets, ideologies,
and thinking patterns. If you want to launch and sustain your product or service in the global
markets, you need to cater to every brain and thinking.
It can be done if you impart flexibility to your ads. The stories of the advertisements should
be drafted in a way that appeals to most of the people watching it. It stands as the fact that no
idea can appeal to every single being in the world. But, you can decide your target audience
and work on meeting their expectations. You can put your creativity to test in such cases.
4. Synthesis of the advertisement

The synthesis of a story is its development and the relationships between various characters
and objects in the story. In every ad, there is an adequately spun story that speaks about the
product or the service it is offering. The characters in the story should be relatable. The
incidents should be believable and not seem out of the world.
The words spoken by the characters or the message delivered by the ad should not be out of
place. All of these factors should be in synchronization with each other. Only then, the ad, as
a whole, will appeal to the viewers.
34
5. Artistic value
The appearance of the advertisement plays a crucial role in its success. In this, there are three
main aspects, namely visual, verbal, and music. The visual appeal is very vital. The colours
used in the ad, the type of palette of shades and undertones, the clothes worn by the
characters forms the visual appeal. The music and the songs of the advertisements are also
essential.
These tunes stay with the audience forever. People go on humming these tunes and enjoy
them to the fullest. Next and the most crucial point is the verbal aspect of an advertisement.
The dialogues are spoken by the characters and the way they are expressed to the
advertisement’s conviction. Also, here comes the most exciting part of an ad which is the
tagline.
A tagline is a group of words that represent the product in its entirety. It can speak about the
values and uses of the product. There are examples of times when these taglines have broken
records of popularity and contributed in a humongous way to the product’s success. Hence,
artistic values are also crucial in maintaining the creativity of an advertisement.
ADVERTISING PLANNING AND STRATEGIES
Advertising Planning
The advertising management is mainly concerned with advertising planning and

decision-making. The advertising manager will be involved in the development,
implementation, and overall management of an advertising plan. The development of an
advertising plan essentially requires the generation and specification of alternatives. Decision
making involves choosing from among the alternatives. The alternatives can be various levels
of expenditure, different kinds of objectives or strategy possibilities, and kinds of options
with copy creation and media choices. Thus, the essence of advertising planning is to find out
the feasible alternatives and reduce them to decisions. An advertising plan reflects the
planning and decision-making process and the decisions that have been arrived at in a
particular product and market situation.
Advertising Planning Framework

Advertising planning and decision making depends on internal and external factors. Internal
factors are situation analysis, the marketing program, and the advertising plan. The three
legs of advertising planning concern are the
35
1. Objective setting and target market identification,

2. Message strategy and tactics, and
3. Media strategy and tactics.
The advertising plan should be developed in response to a situation analysis, based on

research. Once developed, the advertising plan has to be implemented as an advertising
campaign, in the context of social and legal constraints and with the involvement of various
facilitating agencies.
Advertising Strategy
An advertising strategy is a plan to reach and persuade a customer to buy a product or a
service. The basic elements of the plan are
1) The product itself and its advantages.
2) The customer and his or her characteristics.
3) The relative advantages of alternative routes whereby the customer can be informed of
the product.
4) The optimization of resulting choices given budgetary constraints. In effect this means
that aims must be clear, the environment must be understood, the means must be ranked, and
choices must be made based on available resources. Effective product assessment, market
definition, media analysis, and budgetary choices result in an optimum plan—never the
perfect plan because resources are always limited.
36
UNIT-3
INTRODUCTION TO CONSUMER BEHAVIOR
Consumer behavior is the study of how individual customers, groups or organizations select,
buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to
the actions of the consumers in the marketplace and the underlying motives for those actions.
The study of consumer behavior assumes that the consumers are actors in the marketplace.
The perspective of role theory assumes that consumers play various roles in the marketplace.
Starting from the information provider, from the user to the payer and to the disposer,
consumers play these roles in the decision process.
Some selected definitions of consumer behavior are as follows:

1. According to Engel, Blackwell, and Mansard, ‘consumer behavior is the actions and
decision processes of people who purchase goods and services for personal consumption’.
2. According to Louden and Bitta, ‘consumer behavior is the decision process and physical
activity, which individuals engage in when evaluating, acquiring, using or disposing of goods
and services’.
Nature of Consumer Behavior
1. Influenced by various factors

a. Marketing factors such as product design, price, promotion, packaging,
positioning and distribution.
b. Personal factors such as age, gender, education and income level.
c. Psychological factors such as buying motives, perception of the product and attitudes
towards the product.
d. Situational factors such as physical surroundings at the time of purchase, social
surroundings and time factor.
e. Social factors such as social status, reference groups and family.
f. Cultural factors, such as religion, social class—caste and sub-castes.
2. Undergoes a constant change
37
Consumer behavior is not static. It undergoes a change over a period of time depending on
the nature of products. For example, kids prefer colourful and fancy footwear, but as they
grow up as teenagers and young adults, they prefer trendy footwear, and as middle-aged and
senior citizens they prefer more sober footwear. The change in buying behavior may take
place due to several other factors such as increase in income level, education level and
marketing factors.
3. Varies from consumer to consumer

All consumers do not behave in the same manner. Different consumers behave differently.
The differences in consumer behavior are due to individual factors such as the nature of the
consumers, lifestyle and culture. For example, some consumers are technoholics. They go on
a shopping and spend beyond their means.
They borrow money from friends, relatives, banks, and at times even adopt unethical means
to spend on shopping of advance technologies. But there are other consumers who, despite
having surplus money, do not go even for the regular purchases and avoid use and
purchase of advance technologies.
4. Varies from region to region and country to county

The consumer behavior varies across states, regions and countries. For example, the behavior
of the urban consumers is different from that of the rural consumers. A good number of rural
consumers are conservative in their buying behaviors.
The rich rural consumers may think twice to spend on luxuries despite having sufficient
funds, whereas the urban consumers may even take bank loans to buy luxury items such as
cars and household appliances. The consumer behavior may also vary across the states,
regions and countries. It may differ depending on the upbringing, lifestyles and level of
development.
5. Information on consumer behavior is important to the marketers

Marketers need to have a good knowledge of the consumer behavior. They need to study the
various factors that influence the consumer behavior of their target customers. The
knowledge of consumer behavior enables them to take appropriate marketing decisions in
respect of the following factors:
a. Product design/model
b. Pricing of the product
c. Promotion of the product
38
d. Packaging
e. Positioning
f. Place of distribution
6. Leads to purchase decision

A positive consumer behavior leads to a purchase decision. A consumer may take the
decision of buying a product on the basis of different buying motives. The purchase decision
leads to higher demand, and the sales of the marketers increase. Therefore, marketers need to
influence consumer behavior to increase their purchases.
7. Varies from product to product

Consumer behavior is different for different products. There are some consumers who may
buy more quantity of certain items and very low or no quantity of other items. For example,
teenagers may spend heavily on products such as cell phones and branded wears for snob
appeal, but may not spend on general and academic reading. A middle- aged person may
spend less on clothing, but may invest money in savings, insurance schemes, pension
schemes, and so on.
8. Improves standard of living

The buying behavior of the consumers may lead to higher standard of living. Themore a
person buys the goods and services, the higher is the standard of living. But if a person
spends less on goods and services, despite having a good income, they deprive themselves of
higher standard of living.
9. Reflects status
The consumer behavior is not only influenced by the status of a consumer, but it also reflects
it. The consumers who own luxury cars, watches and other items are considered belonging to
a higher status. The luxury items also give a sense of pride to the owners.
Importance of Studying Consumer Behavior
1. Modern Philosophy
39
It concerns with modern marketing philosophy – identify consumers’ needs and satisfy them
more effectively than competitors. It makes marketing consumer- oriented. It is the key to
succeed.
2. Achievement of Goals
The key to a company’s survival, profitability, and growth in a highly competitive
marketing environment is its ability to identify and satisfy unfulfilled consumer needs better
and sooner than the competitors. Thus, consumer behavior helps in achieving marketing
goals.
3. Useful for Dealers and Salesmen

The study of consumer behavior is not useful for the company alone. Knowledge of
consumer behavior is equally useful for middlemen and salesmen to perform their tasks
effectively in meeting consumers needs and wants successfully. Consumer behavior, thus,
improves performance of the entire distribution system.
4. More Relevant Marketing Programme

Marketing programme, consisting of product, price, promotion, and distribution decisions, can
be prepared more objectively. The programme can be more relevant if it is based on the study
of consumer behavior. Meaningful marketing programme is instrumental in realizing
marketing goals.
5. Adjusting Marketing Programme over Time

Consumer behavior studies the consumer response pattern on a continuous basis. So, a
marketer can easily come to know the changes taking place in the market. Based on the
current market trend, the marketer can make necessary changes in marketing programme to
adjust with the market.
6. Predicting Market Trend

Consumer behavior can also aid in projecting the future market trends. Marketer finds
enough time to prepare for exploiting the emerging opportunities, and/or facing challenges
and threats.
7. Consumer Differentiation
40
Market exhibits considerable differentiations. Each segment needs and wants different
products. For every segment, a separate marketing programme is needed. Knowledge of
consumer differentiation is a key to fit marking offers with different groups of buyers.
Consumer behavior study supplies the details about consumer differentiations.
8. Creation and Retention of Consumers

Marketers who base their offerings on recognition of consumer needs find a ready market for
their products. Company finds it easy to sell its products. In the same way, the company, due
to continuous study of consumer behavior and attempts to meet changing expectations of the
buyers, can retain its consumers for a long period.
9. Competition
Consumer behavior study assists in facing competition, too. Based on consumers’
expectations, more competitive advantages can be offered. It is useful in improving
competitive strengths of the company.
10. Developing New Products

New product is developed in respect of needs and wants of the target market. In order to
develop the best-fit product, a marketer must know adequately about the market. Thus, the
study of consumer behavior is the base for developing a new product successfully.
It is to be mentioned that the study of consumer behavior is not only important for the current
sales, but also helps in capturing the future market. Consumer behavior assumes: Take care
of consumer needs, the consumers, in return, will take care of your needs. Most of problems
can be reasonably solved by the study of consumer behavior. Modern marketing practice is
almost impossible without the study of consumer behavior.
CONSUMER BEHAVIOR AND MARKETING STRATEGY
Consumer behavior is dynamic in nature. Thoughts, feelings and actions of an individual

consumer, targeted consumer groups and the society at large constantly change. This hereby
makes the making of any marketing strategy much more difficult yet exciting. Consumer
behavior involves a lot of interaction, let it be interactions among people's thinking, feelings,
actions or interactions with the environment. Here, the marketers need to understand three
simple yet complicated things:
1. What products and brands mean to the consumers?

2. What consumers must do to purchase and use them?
41
3. What influences shopping, purchase and consumption?
More on this, consumer behavior involves exchanges; exchanges between people giving up of
something of value and receiving something in return; something like consideration. Here, the
role of marketer is to create exchanges by formulating and implementing multiple marketing
strategies.
Marketing strategy can be proffered to as the designing, implementing and controlling a plan that
influences exchanges to achieve organizational goals. In the consumer market, marketing
strategy is designed to:
1. Increase chances of favourable thoughts and feelings of particular products, services and
brands among consumers.
2. Increase chances of trail and purchase.
Marketing strategies are developed by manufacturers, retail stores, catalog retailers, e-retailers
and other direct marketers to:
1. Increase chances of favourable thoughts and feelings among consumers about purchasing
on them.
2. Increase the chances of actual purchase.
Marketing strategies are again developed by companies that make funds available for purchase to
increase the chances of usage of services offered by consumers.
Marketing strategies involve developing and presenting marketing stimuli directed at selected
markets to influence:
1. What consumers think?

2. How consumers feel?
3. What consumers do?
The very essence of any marketing strategy understands the markets, develop and implement
superior strategies to attract and hold them profitably.
The power of marketing and the ability of consumer research and analysis is to yield insight into
consumer behavior should not be discontinued or misused.
Marketing strategies queries Consumer Behavior can answer
1. Which consumers are likely to buy this product and our brand, what are they like, how
are they different from consumers who don't buy, and how do we reach them?
2. What criteria are consumers likely to use to decide which products and brands to
purchase? What will be the consumer decision entail, and what will influence it?
3. Is brand image, convenience, price, particular product attributes, or other criteria most
important to consumers of this product?
42
4. What strategies should be used to encourage consumers to purchase our brand and not
purchase those of competitors?
5. How do consumes process information about products and how can this process be
influenced to increase the chances that consumers will have favourable impression offer
brand?
6. What do consumers think and feel about our brand versus competitive brands? What can
be done to improve their opinion of our brand?
7. How can we increase the chances that consumers will process information about our
brand and come up with a favourable impression?
8. What behaviors do consumers have to perform to purchase and use this product and our
brand? How can we increase the frequency with which consumers purchase and use this
product that could give us a competitive advantage?
9. In what situations are consumers likely to purchase and use this product and our brand?
How can the number of these situations be increased? What environmental factors
influence purchase and use?
10. What price are consumers willing to pay for our product and still believe they are getting
good value? Should sales promotion be used and, if so, which ones and how should they
be timed?
11. What can we do to satisfy and even delight consumers with our brand so that they
become loyal customers?
12. How can we delight consumers of our brand and also meet the needs of owners,
employees, suppliers, channel members, society and other stakeholders?
To conclude consumer behavior has direct implications on the classical product mix-the 4Ps.
Consumer Behavior helps in marketing of various goods which are in scarcity.
43
UNIT-4
FACTORS IN THE STUDY OF CONSUMERBEHAVIOR
A large number of factors influence the consumer behavior. Kotler and Armstrong (2008)
classify these as:
1. Psychological - (Motivation, Perception, Learning, Beliefs and Attitudes)
2. Personal - (Age, Income, Occupation, Lifestyle)
3. Social - (Family, Reference groups, Roles and Status)
4. Cultural - (Culture, Subculture, Social class system).
Psychological Factors
The Psychological Factors are the factors that talk about the psychology of an individual
that drive his actions to seek satisfaction.
Some of the important Psychological Factors are:
 Motivation
The level of motivation influences the buying behavior of the consumers. It is very well
explained by Maslow through his need hierarchy theory comprising of basic needs, security
needs, social needs, esteem needs and self-actualization needs. Usually, the basic needs and
44
the security needs are more pressing needs than the other and hence, these needs become a
motive that directs the consumer behavior to seek satisfaction.
Maslow’s Need Hierarchy Theory
 Physiological Needs
Food, clothing, air, and shelter are the first level needs. They are known as the basic
necessities or primary needs.
 Safety or Security Needs

Once the first level needs are satisfied, consumers move to the next level. Physical safety,
security, stability and protection are the security needs.
 Social Needs
After the safety needs are satisfied, consumers expect friendship, belonging, attachment.
They need to maintain themselves in a society and try to be accepted.
 Esteem Needs
Then comes esteem needs such as self-esteem, status, prestige. Individuals here in this stage
want to rise above the general level as compared to others to achieve mental satisfaction.
 Self-Actualization
This is the highest stage of the hierarchy. People here, try to excel in their field and improve
their level of achievement. They are known as self-actualizers.
 Perception
45
The consumer perception towards a particular product and the brand also influences his
buying decision. The perception is the process through which the individualselects, organize
and interpret the information to draw a meaningful conclusion. Such as, Apple iPhone is
perceived as a premium brand and consumers are motivated to buy it to get associated with
the elite class of the society.
The marketers lay emphasis on managing the perceptual processes, Viz. Selective Attention,
Selective Distortion, and Selective Retention. In selective attention, the marketer tries to gain
the attention of the customer towards his offerings. Different people have different
perceptions about the same product depending on their individual beliefs and attitudes which
give rise to selective distortion. Thus, the marketer should try to understand the attitudes and
beliefs of individuals and design the marketing campaigns to retain the consumers.
 Learning
The individual’s learning depends on the skills, knowledge and intention. The skills are
developed through practice while the knowledge and intention are acquired with the
experience. There could be a conditional learning or a cognitive learning.
In the conditional learning, the consumer derives learning from being conditioned to
particular stimuli, i.e. when he is exposed to the similar situation, again and again, he
develops a particular response towards it. While in the cognitive learning the individual
applies all his knowledge, skill, attitudes, values and beliefs to find the solution of a problem
and derive satisfaction out of it.
 Attitudes and Beliefs
The individuals have certain beliefs and attitudes towards products on which their
purchase decisions rests. These attitudes and beliefs are the tendency to respond to a given
product in a particular way, and these make up the brand image that influences the
consumer buying behavior. Thus, the marketers try to understand the attitudes and beliefs
of the individuals and modify these through several marketing campaigns. Thus, these are
some of the psychological factors that the marketer must take into the consideration before
undertaking the strategic marketing decision.
2. Personal Factors
The Personal Factors are the individual factors to the consumers that strongly influences
their buying behaviors. These factors vary from person to person that results in a different set
of perceptions, attitudes and behavior towards certain goods and services.
Some of the important personal factors are:
46
 Age
The consumer buying behavior is greatly influenced by his age, i.e. the life cycle stagein
which he falls. The people buy different products in different stages of the life cycle. Such as
the purchase of confectionaries, a chocolate is more when an individual is a childand as he
grows his preferences for the products also changes.
 Income
The income of the person influences his buying patterns. The income decides the purchasing
power of an individual and thus, the more the personal income, the more will be the
expenditure on other items and vice-versa.
 Occupation
The occupation of the individual also influences his buying behavior. The people tend tobuy
those products and services that advocate their profession and role in the society. For
example, the buying patterns of the lawyer will be different from the other groups of people
such as doctor, teacher, businessman, etc.
 Lifestyle
The consumer buying behavior is influenced by his lifestyle. The lifestyle means individual’s
interest, values, opinions and activities that reflect the manner in which he lives in the society.
Such as, if the person has a healthy lifestyle then he will avoid the junk food and consume
more of organic products.
Characteristics of lifestyle
1. It is a group phenomenon i.e. It influences others in a social group.
2. It influences all areas of one’s activities and determines the buying behavior of aperson.
3. It implies a central life interest – A person`s main interest or profession is influenced by
his core interests e.g. Food, Fashion, Music, etc.
47
4. It is affected by the social changes in the society – A person`s standard of living and
quality of lifestyle increases with the increase in the standards and quality of the society
he/she lives in. Lifestyle of a consumer depends upon various factors and any change in one
of these factors leads to a change in the behavior of the consumer.
These factors are as follows:-

♦ Age
♦ Income
♦ Occupation
♦ Culture
♦ Education
♦ Social Group
The products we consume are a part of our lifestyle. Therefore, our lifestyle can be
determined on the basis of our consumption pattern.
These are some of the personal factors that influence the individual’s buying behavior, and
the marketer is required to study all these carefully before designing the marketing
campaign.
3. Social Factors
The Social Factors are the factors that are prevalent in the society where a
consumer lives in. The society is composed of several individuals that have different
preferences and behaviors. These varied behaviors influence the personal preferences of the
other set of individuals as they tend to perform those activities which are acceptable to the
society.
The following are the important social factors that influence the behavior of an individual in
one or the other way:
48
 Family
The family members play a crucial role in designing one’s preferences and behavior. It offers
an environment where in the individual evolves, develop personality and acquire values. A
child develops his buying behavior and preferences by watching his parents and tends to
buy the same products or services even when he grows old. The family can influence the
buying behavior of an individual in either of the two ways:
 Influences the personality, attitude, beliefs, and characteristics of the individual.
 Influences the decision making of an individual with respect to the purchase of certain
goods and services.
It is believed that an individual passes through two families- Family of Orientation and
Family of Procreation. In the former type, it is the family wherein an individual has takenthe
birth, and the parents have a strong influence on his behavior. While in the family of
procreation, it is the family created by an individual with his spouse and children and as such
the preferences tend to change with the influence of the spouse.
 Reference Group
A reference group is a group with which an individual likes to get associated, i.e. want to be
called as a member of that group. It is observed, that all the members of the reference group
share common buying behavior and have a strong influence over each other.
The marketers should try to identify the roles within the reference group that influences
the behavior of others. Such as Initiator (who initiates the buying decision), Influencer (whose
opinion influences the buying decision), Decision- Maker (who has the authority to take the
purchase decision) and Buyer (who ultimately buys the product).
 Roles and Status
An individual’s position and role in the society also influences his buying behavior. Such as,
a person holding a supreme position in the organization is expected to purchase those items
that advocate his status. The marketers should try to understand the individual’s position and
the role very much before the endorsement of the products.
Thus, the social factors play a crucial role in building the behavior of an individual, and the
marketers should understand it properly before designing their marketing campaigns
4. Cultural Factors
The Cultural Factors are the factors that an individual learns at a very early stage of life due
to socialization within the family and other key institutions, such as the set of values,
preferences, behavior patterns, and perceptions are learned as the individual grows.
49
Some of the important cultural factors are:
 Culture
The culture refers to the beliefs, customs, rituals and practice that a particular group of people
follows. As a child grows, he inculcates the buying and decision-making patterns through his
family and the key institutions. The culture varies from region to region and even from
country to country. Such as the sale of “sarees” and “Lungis” is more in South than the North
India. Therefore, the marketer should carefully study all the different cultures and frame the
marketing strategies accordingly.
 Subculture
The culture can be further divided into subculture wherein the people are classified more
specifically on the basis of their shared customs and beliefs, including religions, geographic
regions, nationalities, etc. The different sub-cultures forms several market segments whose
needs can be carefully studied by the marketer and the strategic marketing decisions can be
taken accordingly. Such as the needs of the people living in metro cities and the ones living
in B-grade cities must be identified before the launch of the marketing campaign.
 Social Class
The social class to which an individual belongs influences the buying decision. Generally, the
people belonging to the same class are said to be sharing the similar interest, value and the
behavior. Our society is classified into three social classes- upper class, middle class, and the
lower class. The consumers belonging to these classes possess different buying behaviors.
Such as an individual belonging to the upper class buy thoseproducts or services that
advocate his status while the lower class people buy those products which satisfy their basic
needs.
These are some of the cultural factors that influence the individual buying behavior due to his
membership in the group where different customs, practices, beliefs, and rituals are followed.
50
UNIT-5
VARIOUS BUYING BEHAVIOR MODELS
Consumer buying behavior models are theories that identify consumers' buying behavior
patterns and explain why or how they make purchasing decisions. Buyer behavior includes
factors such as their personal beliefs, interests, education, background and goals.
These models typically include mathematical constructs that describe common behaviors
between groups of consumers and predict how similar consumers may behave. Many
companies create these predictions by gathering data on their own consumers.
Companies often use these models to determine how consumers in a certain market may react
to certain products, pricing and product features, advertisements and competitors. This often
assists them in making certain marketing or business development decisions. Using
consumer buying behavior models may also help businesses retain and satisfy customers.
Economists developed traditional consumer behavior models to determine how consumers'
wants and needs determine their buying behavior. Here's a list of the four traditional models:
1. Psychological or learning model
The psychological model, also called the learning model, bases its theory on psychologist.
Abraham Maslow's hierarchy of needs, which is a psychological philosophy that explains
the physiological, psychological and self-fulfillment needs of every person. This consumer
model explains that buyer behavior corresponds with a person's desire to fill these needs and
their emotional requirements.
Most people address their basic needs first, then psychological and self-fulfillment needs. For
example, a hungry person may buy food first before they buy a new hat.
The learning model typically applies to marketing and business development professionals
who work for organizations that sell a wide variety of goods, such as grocery or department
stores. These businesses may benefit from focusing on consumer experiences by organizing
stores in relation to each level of the hierarchy. This may help consumers address their
primary needs first before visiting other sections of the store.
2. Sociological model
51
The sociological model states that a person's social standing or interest group influences
their purchasing habits. This could include a person's position in society or their
involvement in friend, family, work and hobby groups. This also means that a person
typically buys items that align with a group's values or expectations. For example, a member
of a community hiking group may make purchases on active wear and healthy snacks, while a
business executive may make professional attire and office supply purchases.
Most businesses typically benefit from this consumer model because they can create
consumer experiences based on the group of people who typically purchase the business'
products. They may use this by appealing to the common beliefs or actions of these groups.
For example, an instrument store may sell electric tuners that help musicians tune their
instruments faster than traditional tools. This could show consumers in this group that the
business sells tools that help them perform more efficiently within their groups.
3. Psychoanalytical model
This model also uses a psychologist's theories to appeal to a consumer's unconscious desires.
The psychoanalytical model bases its theory on Sigmund Freud's thesis which explains that
every person possesses conscious and unconscious motives that drive their behavior, and in
this situation, their purchases. This model explains that a business' appearance and marketing
may appeal to a consumer's conscious and unconscious motives, such as their social values or
personal opinions about their appearance.
Marketing and business development professionals who work with companies that emphasize
their brand or image may benefit from using this behavior model. Consider using this model
in advertisements or in-store marketing campaigns.
For example, a luxury clothing brand may publish ad campaigns that show attractive people
wearing their clothing. A consumer may have a desire to feel attractive, so viewing this
advertisement could appeal to those desires and influence them to visit the company's store.
4. Economic model
The economic model explains that consumers typically evaluate the value of an item
compared to its price, and then spend as little resources as they can to buy the most value-
efficient item. This model uses three key concepts to make predictions: price effect,
substitution effect and income effect. The price determines the number of items a consumer
52
buys, and the price of a substitute item affects the quantity of the original item the consumer
buys. Income affects the quantity of both items.
This means businesses may analyze their potential sales by learning about their target
consumers' spending habits and comparing them to the products' prices. A business that sets
consistently low prices may receive a set amount of consumer traffic and profits. Marketing
and business development professionals in most industries may use this consumer model to
evaluate their own prices and competitors' prices on similar items.
APPLICATIONS OF CONSUMER BEHAVIOR

Consumer behavior has a number of applications in the area of marketing as described in the
following paragraphs.
1. Analyzing Market Opportunity
Study of consumer behavior helps in identifying needs and wants which are unfulfilled. This
is done by examining trends in income, consumer’s lifestyles and emerging influences. The
trend towards increasing number of working wives and greater emphasis on leisure and
convenience have signaled the emerging needs for household gadgets such as vacuum
cleaner, washing machine and mixer grinder. Tortoise Mosquito repellant coils and Good
Knight electrical repellants were marketed in response to a genuinely felt need of the people.
Its rapidly rising sales graph is an indication of how well the product has satisfied the
consumer's need.
2. Selecting the Target Market
The study of the consumer trends would reveal distinct groups of consumers with very
distinct needs and wants. Knowing who these groups are, how they behave, how they decide
to buy enables the marketer to market products/services especially suited to their needs. All
this is made possible only by studying in depth the consumer and his purchase behavior.
A study of potential consumers for shampoo revealed that there was a class of consumers
who would like to use shampoo only on special occasions and who otherwise use soap to
wash their hair. Further, this consumer class would not afford to spend more than three or
four rupees on shampoo. Having identified this target market, companies with leading brands
launched their shampoos in small sachets containing enough quantity for one wash and priced
just at two or three rupees.
53
3. Determining the Product Mix
Having identified the unfulfilled need slot and having modified the product to suit differing
consumer tastes, the marketer now has to get down to the brass tacks of marketing. He has to
determine the right mix of product, price promotion and advertising. Again consumer
behavior is extremely useful as it helps find answers to many perplexing questions.
Product
The marketer has the product that will satisfy hitherto unfulfilled consumer need, but he must
decide the size, shape and attributes of the product. He must figure out whether it is better to
have one single product or a number of models to choose from. Does the product require any
special kind of packaging? Does it need any guarantee or after sales service? What associated
products and services can be offered alongside?
Maggi Noodles were first launched in the most common flavours such as masala and
capsicum. Having succeeded with these, other flavours such as garlic and sambhar were
launched with the objective of appealing to specific regional tastes. However, these flavours
did not succeed. Recently, exotic flavour such as prawns has been launched. All these are
attempts to modify the product by adding special features, attributes which might enhance
the product appeal to the consumers.
The study of consumer behavior also guides the marketer in making decisions regarding
packaging. Pan Parag was first introduced in tins. But study of consumer behavior revealed
that people wanted smaller packing which they could conveniently carry on their person and
in response to this the individual pouches were introduced. Further study of consumers
revealed a problem with, these pouches. Once opened and kept in the purse or pocket, the
pan masala would spill out of the pouch into the purse or pocket. To overcome this problem,
Pan Parag has now launched a pouch with a zip. You eat as much as you want, zip up the
packet and put it in your pocket without fear of spillage and wastage.
The study of consumer needs revealed the need for a water storage facility in the kitchen and
bathroom but which didn't occupy floor space. In response to this need, Sintex added the
overhead indoor loft tank to their existing range of outdoor roof top water storage tanks.
Price
What price should the marketer Charge for the product? Should it be the same as that of the
54
competing product or lower or higher? Should the price be marked on the product or left to
the discretion of the retailer to charge what he can from the customer? Should any price
discounts be offered? What is the customer perception of a lower or higher price? Would a
lower price stimulate sales? Or is a lower price associated with poor quality?
These are the kinds of questions facing a marketer when taking a decision regarding pricing.
The marketer has to determine the price level which makes the image of the product and
which also maximizes the sales revenue. For doing so he must understand the way his product
is perceived by consumers, the criticality of the price as a purchase decision variable and
how an increase or decrease in price would affect the sales. It is only through continuous
study of consumer behavior in actual buying situations that the marketer can hope to find
answers to these issues.
Place
Having determined the product size, shape, packaging and price, the next decision the
marketer has to make is regarding the distribution channel. What . type of retail outlets should
sell the products? Should it be sold through all the retail outlets or only through a selected
few? Should it be sold through existing outlets which also sell competing brands or should
new outlets selling exclusively your brand of product be created? How critical is the location
of the retail outlets from the consumers' viewpoint? Does the consumer look for the nearest
convenient location or is he willing to travel some distance for buying the product?
The answers to all these questions can only be found when the marketer has a good
understanding of the consumers' needs which are being fulfilled by his product and the
manner in which consumers arrive at the decision to buy. A few years ago, Eureka Forbes
introduced a vacuum cleaner in the Indian market. It was not only launch of a new brand, but
rather a launch of a new product concept. No retail outlets were selling vacuum cleaners
very few consumers knew much about the product and fewer still were willing to buy it.
Under these circumstances, the company decided to sell the product only through personal
selling with the salesman calling on the consumer at his home. Here the salesman had
enough time to explain, demonstrate and convince the prospective customer about the utility
of the vacuum cleaner. In a retail outlet situation, all this would just not have been possible.
The retailer has neither the time nor the detailed knowledge required to sell such a new
product concept. This distribution strategy of Eureka Forbes, based on a very fine
understanding of the consumer behavior, has yielded good sales results. The product concept
is well accepted in the urban markets and today the vacuum cleaner, in addition to personal
selling is also sold through some selected retail outlets.
55
Promotion
The marketer here is concerned with finding the most effective methods of promotion which
will make the product stand out amongst the clutter of so many other brands: and products,
which will help increase the sales objective and yet be within the budget. This is possible
only when the marketer knows who his target consumers are, where are they located, what
media do they have access to, what is their preferred media and what role does advertising
play in influencing the purchase decision?
Today, TV is the most powerful advertising medium in the country. And many brands spend
the greater part of their promotion and advertising budget on TV. Brands regularly advertised
on TV soon become well recognized names. But as a marketer you have to question the
suitability of any specific medium in case of your specific product and budget. Suppose your
product is sold in only a few geographical markets you may decide to avoid TV altogether
and concentrate on point of purchase promotion and local advertising through local
newspaper, hoardings and wall paintings.
In so many cases of industrial product media advertising is very negligible, instead,
brochures or leaflets containing detailed product specification and information are directly
mailed to the actual consumer, and sometimes followed up by a salesman making a call to
clinch the deal. This is primarily because buyer behavior and informational needs of
industrial buyers are very different from that of consumer buying.
4. Use in Non-profit and Social Marketing

The knowledge of consumer behavior is also useful in the marketing of non-profit or social
or governmental services of institution such as hospitals, voluntary agencies, law
enforcement and tax collection agencies.
The income tax authorities have always been perceived in negative manner by the common
man who fears them and views them in a suspicious light. To overcome this poor image,
advertisements on TV and in newspapers and magazines are regularly released, wherein a
friendly, helpful image is sought to be projected. Moreover, there is greater dissemination of
information regarding the rights and responsibilities of the taxpayer. Similarly, Delhi Police
is trying to overcome the problem of poor image by projecting itself as always alert and
available for help through regular newspaper advertisements.
Marketing Strategy Formulation?
To run a successful business, you must effectively get the word out about your products and
services. Successful marketing requires a winning strategy. Understanding marketing
56
strategy formulation lets you properly evaluate your organization's marketing needs. You
can then gear your marketing strategies to achieve maximum effectiveness. Reviewing some
key elements of marketing strategy formulation will help you choose the best methods for
your small business.
Marketing Strategy Definition

Marketing strategy formulation is the process of defining an organization's marketing
goals and objectives, explains “Management study guide”. This allows formulators to create
a guide and then develop tactics to achieve the strategies. Marketing strategy frameworks
examine the market and in doing so, use that information to determine what marketing
approaches will be best at reaching clients and enticing customers to seek out the business'
services.
Online Marketing Strategies

There are dozens of digital marketing strategies to choose from. Common methods include
placing banners and links on specific websites. You might choose to place video or text
advertisements online. Another common online marketing strategy is social media
marketing, which uses tools like Facebook, Twitter, Instagram and YouTube to gain
exposure. Another example of online marketing is through the use of mobile devices,
specifically smartphones.
Search Engine Optimization strategies help your content place higher in search engine
results. Programmatic advertising places ads on web pages based on who is visiting the
page. Influencer marketing uses popular online personalities to recommend your product or
service.
Offline Marketing Strategies

Offline marketing, involves any marketing that does not take place on the internet. There are
many options in this area. Traditional advertising includes buying ad space in newspapers or
magazines on television and radio stations, or on billboards or transit vehicles.
Another common one is setting up booths at trade shows. Word of mouth, or "referral
marketing," is also effective, although you have less control over it. With referral marketing,
companies rely on good services and products to motivate customers to recommend your
business to their friends, family members and colleagues.
In some cases, businesses use telemarketing to spread the word. In telemarketing, salespeople
place calls to either random or targeted numbers, informing recipients of deals or services.
57
Key elements of a successful marketing strategy

There are several elements to consider when you are developing your marketing strategy.
 Segmentation
Your existing and potential customers fall into particular groups or segments, characterized by
their 'needs'. Identifying these groups and their needs through market research and market
reports, and then addressing those needs more successfully than your competitors, should be
one of the key elements of your marketing strategy.
 Targeting and positioning
You should aim to sell to the market segments that will be most profitable for your business. It
is important that your product offering meets the needs of your chosen target
market. See target your most profitable customers and define your target market.
You should create a marketing strategy that makes the most of your strengths and matches
them to the needs of the customers you want to target. For example, if a particular group of
customers is looking for quality first and foremost, then any marketing activity aimed at them
should draw attention to the high quality of your products or service.
 Promotional tactics
Once you have created your marketing strategy, you must then decide which marketing activity
or activities will ensure your target market know about the products or services you offer, and
why they meet their needs.
There are many ways to achieve this - such as various forms of advertising, exhibitions, public
relations, digital marketing and an effective 'point of sale' strategy. Try to limit your activities
to those methods you think will work best with your target market, to avoid spreading your
budget too thinly.
 Monitoring and evaluation
Monitoring and evaluating how effective your strategy has been is a key element, yet often
overlooked. This control element not only helps you see how your strategy is performing in
practice, it can also help inform your future marketing strategy.
58
A simple approach is to ask each new customer how they heard about your business. Deeper
analysis can come from questionnaires, focus groups and examining customers' online
behavior.
 Marketing plan
Once you have decided on your marketing strategy, draw up a marketing plan that sets out how
you intend to execute that strategy and evaluate its success. The plan should be constantly
reviewed and, if necessary, updated so you can respond quickly to changes in customer needs
and attitudes in your industry and in the broader economic climate.
Factors that can affect your marketing strategy
Your marketing strategy is potentially the most essential factor in growing your business. It
can help you create products and services that connect to your target market and maintain
customer loyalty. So, without one, you may struggle to expand or fail for good.
But having a strategy doesn't always lead to a 100% success. This is because internal and
external forces can influence the marketing environment. If you want to beat those odds, you
have to know what those forces are.
Here, we highlight the six factors that can affect your marketing strategy.
1. Social factors
Your marketing strategy should be prepared for potential changes in the structure and attitudes
of society. Social media is one of the best ways to understand and meet the needs and
preferences of customers. No matter how good your product and service are, people are
unlikely to buy a product or service if they don't resonate with your target market.
Note that people usually follow certain values and norms when making purchasing decisions.
The rise in social media usage has affected how people buy things. Bearing this in mind can
allow you to make better use of social media when marketing your products and services.
2. Competition factors
Competition is inevitable in every market sector. If you want to create a winning marketing
strategy and stay one step ahead, you need to understand how your competitors are reacting to
customer needs and changes in the industry.
59
Remember that you're selling similar products and services to your competitors. It's always
important to adjust your marketing plan to gain a competitive advantage over them. You can
introduce new functions and features to your products or use pricing. But whatever you do,
make sure that you don't lose sight of your marketing objectives.
Bigger competitors are likely to spend much more marketing their products or services. So be
careful when planning your strategy and make sure you don't overstretch your budget. At the
end of the day, your customers should still be the main focus of every marketing strategy and
your business in general.
3. Economic factors
Recession (and factors like the ongoing pandemic) can affect your marketing strategy. In that
scenario, it's likely you will have a smaller budget and fewer resources. It's also worth noting
that consumers are less likely to make purchases if they don't feel confident in the economy or
their financial situation.
During an economic downturn, unemployment rates may rise, and consumers may not have a
stable income. That could mean their purchasing power is reduced. With less disposable
income, consumers tend to reduce expenditure and prioritize their outgoings.
Therefore, it's crucial you consider your target customers' finances in your strategy. Consider
marketing your product or service as essential to a consumer's lifestyle and show them how
making a purchase will benefit them.
4. Regulatory factors
Laws and regulations can influence your marketing strategy at the national or local level. Rules
connected to health and safety, product labeling, and consumer rights can all impact your
ability to market and sell your goods. Regulatory factors can differ by region, but they're all
designed to protect consumers and businesses.
It's extremely important to ensure that your marketing activities don't breach any of them. You
need to know what is and isn't legal if you are to market your product or service successfully.
5. Technological factors
The technological landscape is constantly changing, and it can affect your marketing in many
different ways. There are always new ways to produce, distribute, and market your products
and services.
60
Keeping an eye on these trends will give you the opportunities to better communicate with
your target market and deliver products that will match their lifestyle and preferences.
Remember, people always consider convenience in addition to price.
6. Internal factors
The internal factors are the only aspects of marketing that you can control. Much of your
marketing endeavours will stem from there. So, failure to understand how internal factors can
influence your efforts to reach out to your potential and existing customers will hurt your
business.
There are many internal influences, but one is your business' financial position. Your
profitability, cash flow, and liquidity can all directly affect the scope and scale of your
marketing activities.
Other internal factors you need to consider include the following:

 Corporate objectives
 Human resources
 Communication tactics
 Operational issues
 Business culture
61

Advertising and Consumer Behaviour-1

Uploaded by

Copyright:

Available Formats

Advertising and Consumer Behaviour-1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Advertising and Consumer Behaviour-1

Uploaded by

Copyright:

Available Formats

NOTES BY- AMIT KUMAR AHIR

ADVERTISING AND CONSUMER BEHAVIOR

2. Paid form of communication

 Scope of advertising by allocating deliverables

ADVANTAGES OF ADVERTISING FROM DIFFERENT VIEW

(a) Increase in Sales:

(b) Supplementing Salesmanship:

(c) Lower Costs:

(d) Greater Dealer Interest:

(e) Quick Turnover and Smaller Inventories:

(f) Steady Demand:

(ii) From Viewpoint of Consumers:

(a) Improvement in Quality:

(b) Facility of Purchasing:

(c) Consumer’s Surplus:

(d) Education of Consumers:

(iii) From the Viewpoint of Middleman:

(a) Retail Price Maintenance becomes Possible:

(b) Acts as a Salesman:

(c) Ensures Quick Sales:

(iv) From the Viewpoint of Society:

(a) Change in Motivation:

(b) Sustaining the Press:

(c) Encouragement to Artists:

(d) Encouragement to Research:

(e) Glimpse of National Life:

ROLE OF ADVERTISING IN SOCIETY

LEGAL ASPECTS OF ADVERTISING

 Violate government rules.

Legal Advertising Strategies

ETHICAL ASPECTS OF ADVERTISING

SOCIAL ASPECTS OF ADVERTISING

Positive Social effects of Advertisements

Negative Social effects of Advertisements

DIFFERENT TYPES OF CONSUMER BEHAVIOR MODELS

II. Classification on The Basis of Audience

III. Classification on The Basis of Media

1. Print Media Advertising

IV. Classification on The Basis of Function

(3) Advertising at Retentive stage.

1. Advertising at Pioneering Stage

3. Advertising at Retentive Stage or Reminder Advertising

An advertising media is a means or vehicle of delivering a definite message. It is a means

(B) Electronic Media

(C) Outdoor Advertising Media

4. Electric Displays and Signs

5. Sky Advertising (Sky Writing)

Types of Media Planning

Benefits of Media Planning

Key benefits of media planning include:

 Audience Segmentation & Analysis

1. Measurable – based on size, purchasing power, and segment profile

 Optimization & Testing

MEDIA SELECTION AND STRATEGY

Factors Influencing Media Selection

(i) The financial allocation for advertising.

(v) Creative Scope

Factors in deciding Media Strategy

Creative advertising is defined as a strategy to effectively and creatively advertise a brand or

Features of Creative Advertising – What do Creative Ads include?