Khwaja Moinuddin Chishti Language University, Lucknowuafulucknow.ac.in/wp-content/uploads/2020/03/M.A-JMC-II-Semeste… · Marketing promotions: Retailers' catalogues provided early

Khwaja Moinuddin Chishti Language University, Lucknow 2020

1 Dr. Tanu Dang, Assistant Professor, Dept. of Journalism and Mass Communication

MJM C 2.2 (CORE)

Advertising Principles & Practices

Advertising : Meaning andConcept

The American Marketing Association, Chicago, defines advertising as “any paid form of non

personal presentation of ideas, goods and services by an identified sponsor.” So a form could

be a presentation. It may be sign, a symbol, an illustration, an ad message in a magazine or

newspaper, a commercial on the radio or on television, a circular dispatched through the mail

or a pamphlet handed out at a street corner; a sketch or message on a billboard or a poster or a

banner on the Net. Non-personal would mean that it is not on a person-to-person basis.

Goods, Services, Ideas for action would mean making a consumer‟s work easy in knowing

about the product of the firm. It could be a television, or a banking service or filing your tax

returns, which the firm or the marketer wants the consumer to know about. An idea could

also be political parties letting the people know about their party and why they should vote

for their party. Adult education, beware of AIDS, donate your eyes are but a few examples of

ideas. Paid by an identified sponsor would imply that the sponsor has control over the form,

content and scheduling of the advertisements. The sponsor could be identified by the

company name or the brand of the particular product.

• “Salesmanship in print”

• “Advertising as a substitute for the human salesman”

• “Advertising is the business of creative thinking for commercial advantage”

The above are few definitions of what advertising is all about.

To Communicate, to Persuade, to Influence and to Lead to some action is what advertising is

all about. Human nature and advertising are closely related. A man who wears shirt-trouser

instead of dhoti is advertising that he is westernized; a woman who wears a lipstick wants to

advertise that she wants to look beautiful; a boy who rides a beautiful bike wants to advertise

that he wants to be noticed. So we see that people want to notice for anything that they do.

That is what advertising does. It pulls people towards the product like the flowers attracts the

bees towards it.

An Advertising Message should:

1. Gain attention of the receiver.

2. Be understood.

3. Be able to stimulate the receiver and suggest appropriate method to satisfy their needs.

HISTORY OF ADVERTISING IN INDIA

18TH

Century

Concrete advertising history begins with classified advertising

Ads appear for the first time in print in Hickey's Bengal Gazette. India's first newspaper

(weekly).

Studios mark the beginning of advertising created in India (as opposed to imported from

England) Studios set up for bold type, ornate fonts, more fancy, larger ads

Newspaper studios train the first generation of visualisers& illustrators



Major advertisers: Retailers like Spencer's, Army & Navy and Whiteaway& Laidlaw

Marketing promotions: Retailers' catalogues provided early example

Ads appear in newspapers in the form of lists of the latest merchandise from England

Patent medicines: The first brand as we know them today were a category of advertisers

Horlicks becomes the first 'malted milk' to be patented on 5th June 1883 (No. 278967).

The 1900s 1905- B Dattaram& Co claims to be the oldest existing Indian agency in

Girgaum in Bombay

1912- ITC (then Imperial Tobacco Co. Ltd.) launches Gold Flake

1920s- Enter the first foreign owned ad agencies

- Gujarat Advertising and Indian Advertising set up

- Expatriate agencies emerge: Alliance Advertising, Tata Publicity

- LA Stronach's merges into today's Norvicson Advertising

- D J Keymer gives rise to Ogilvy & Mather and Clarion

1925- LR Swami & Co, Madras

1926- LA Stronach& Co (India) Pr. Ltd, Bombay starts

- Agency called National set up for American rather than British

Advertisers

- American importers hire JaganNathJaini, then advertising manager

of Civil and Military Gazette, Lahore. National today is still run by

Jaini's family

- Beginning of multinational agencies

- J Walter Thompson (JWT) opened to service General Motors business

1928- BOMAS Ltd (Formerly DJ Keymer& Co Ltd) set up

1929- J Walter Thompson Co Pr. Ltd formed

Indian agencies, foreign advertising in the thirties

1931- National Advertising Service Pr. Ltd. Bombay set up

- Universal Publicity Co, Calcutta formed



1934- VenkatraoSista opens Sista Advertising and Publicity Services as first

full service Indian agency

1935- Indian Publicity Bureau Pr Ltd, Calcutta established

1936- Krishna Publicity Co Pr. Ltd, Kanpur begins operations

- Studio RatanBatra Pr. Ltd, Bombay established

- Indian Broadcasting Company becomes All India Radio (AIR)

1938- Jayendra Publicity, Kolhapur started

1939- Lever's advertising department launches Dalda - the first major

example of a brand and a marketing campaign specifically developed

for India

- The Press Syndicate Ltd, Bombay set up

Indianising advertisements in the forties

1940- Navanitlal& Co., Ahmedabad set up

1941- Lux signs LeelaChitnis as the first Indian film actress to endorse the

product

- Hindustan Thompson Associates (HTA), the current incarnation of

JWT, coins the Balanced Nourishment concept to make Horlicks

more relevant to India

- Green's Advertising Service Agents, Bombay formed

1943- Advertising & Sales Promotion Co (ASP), Calcutta established

1944- Dazzal, Bombay comes into existence

- Ranjit Sales & Publicity Pr. Ltd, Bombay started

1945- Efficient Publicities Pr. Ltd, Madras set up

- Tom & Bay (Advertising) Pr. Ltd., Poona begins operations in India

1946- Eastern Psychograph Pr. Ltd., Bombay set up

- Everest Advertising Pr. Ltd, Bombay established

1947- Grant Advertising Inc, Bombay formed



- Swami Advertising Bureau, Sholapur started

1948- RC Advertising Co, Bombay set up

- Phoenix Advertising Pr. Ltd, Calcutta formed

Corporate advertising in the fifties

1950s- Radio Ceylon and Radio Goa become the media option

1951- Vicks VapoRub: a rub for colds, causes ripples with its entry

in the balm market

1952- Shantilal G Shah & Co, Bombay

1954- Advertising Club, Mumbai set up

- Express Advertising Agency, Bombay

- India Publicity Co. Pr. Ltd., Calcutta

1956- Aiyars Advertising & Marketing, Bombay

- Clarion Advertising Services Pr. Ltd, Calcutta

1957- VividhBharati kicks off

1958- Shree Advertising Agency, Bombay

1959- Associated Publicity, Cuttack

Creative revolution in the sixties

1960- Advertising Accessories, Trichur started

- Marketing Advertising Associates, Bombay set up

1961- Industrial Advertising Agency, Bombay comes into existence

- BalMundkur quits BOMAS to set up Ulka the same year

1962- India's television's first soap opera - Teesra Rasta enthralls

viewers

1963- BOMAS changes names to SH Benson's

- Stronach's absorbed into Norvicson



- Lintas heading for uncertainty

- Levers toying with giving its brands to other agencies

- NargisWadia sets up Interpub

- Wills Filter Tipped cigarettes launched and positioned as made for

each other, filter and tobacco match

1965- Kersey Katrak sets up Mass Communication and Marketing (MCM)

1966- Government persuaded to open up the broadcast media

- AyazPeerbhoy sets up Marketing and Advertising Associates (MAA)

1967- First commercial appears on VividhBharati

1968- NariHira sets up Creative Unit

- India wins the bid for the Asian Advertising Congress

1969- Sylvester daCunha left Stronach's to run ASP; later sets up

daCunha Associates

1970- Frank Simoes sets up Frank Simoes Associates

The problematic seventies

1970-1978

- National Readership Studies provided relevant data on

consumers' reading habits

1970- Concept of commercial programming accepted by All India Radio

- HasanRezavi gives the very first spot on Radio Ceylon

197- Benson's undergo change in name to Ogilvy, Benson & Mather

1972- Western Outdoor Advertising Pvt Ltd (WOAPL) introduces first

closed circuit TV (CCT) in the country at the race course in

Mumbai

1973- RKSwamy/BBDO established

1974- MCM goes out of business

- Arun Nanda &AjitBalakrishnan set up Rediffusion

1975- Ravi Gupta sets up Trikaya Grey



1976- Commercial Television initiated

1978- First television commercial seen

1979- Ogilvy, Benson & Mather's name changes to Ogilvy & Mather

Glued to the television in the eighties

1980- Mudra Communications Ltd set up

- King-sized Virginia filter cigarette enters market with brand name

of 'Charms'

1981- Network, associate of UTV, pioneers cable television in India

1982- The biggest milestone in television was the Asiad '82 when

television turned to colour transmission

- Bombay Dyeing becomes the first colour TV ad

- 13th Asian Advertising Congress in New Delhi

- Media planning gets a boost

1983- Maggi Noodles launched to become an overnight success

- Canco Advertising Pvt. Ltd. founded

- ManoharShyam Joshi's Hum Log makes commercial television

come alive

- Mudra sponsors first commercial telecast of a major sporting event

with the India-West Indies series

1984- Hum Log, Doordarshan's first soap opera in the colour era is

born

- Viewers still remember the sponsor (Vicco) of Yeh Jo Hai

Zindagi!

1985- Mudra makes India's first telefilm, Janam

1985-86- 915 new brands of products and services appearing on the Indian

Market

1986- Sananda is born on July 31. The Bengali magazine stupefies India

by selling 75,000 copies within three hours of appearing on the



newsstands.

- Mudra Communications creates India's first folk-history TV

serial Buniyaad. Shown on DD, it becomes the first of the

mega soaps

- Price quality positioning of Nirma detergent cakes boost sales

1988- AAAI'sPremnarayan Award instituted

1989- Advertising Club Bombay begins a biennial seminar called

'Advertising that Works'

- Advertising & Marketing (A&M) magazine launched

Tech savvy in the nineties

1990- Marks the beginning of new medium Internet

- Agencies open new media shops; go virtual with websites and

Internet advertising

- Brand Equity (magazine) of The Economic Times is born

1991- First India-targetted satellite channel, Zee TV starts broadcast

- Close on the throes of the Gulf War enters STAR (Satellite

Transmission for Asia Region)

1992- Spectrum, publisher of A&M, constitutes its own award known as

'A&M Awards'

- Scribes and media planners credit The Bold And The Beautiful

serial on STAR Plus channel as a soap that started the cultural

invasion

1993- India's only advertising school, MICA (Mudra Institute of

Communications Ahmedabad), is born

- Tara on Zee TV becomes India's first female-centric soap

1995- Advertising Club of Bombay calls its awards as Abby

- Country's first brand consulting firm, SABRE (Strategic Advantage for

Brand Equity) begins operations

1996- The ad fraternity hits big time for the first time by bagging three

awards at the 43rd International Advertising Festival, Cannes



- Sun TV becomes the first regional TV channel to go live 24 hours

a day on all days of the week

1997- Media boom with the growth of cable and satellite; print medium

sees an increase in titles, especially in specialised areas

- Government turns towards professional advertising in the private

sector for its VDIS campaigns

- Army resorts to the services of private sector agencies

- Advertising on the Internet gains popularity

- Equitor Consulting becomes the only independent brand consultancy

company in the country

- Several exercises in changing corporate identity

- For the first time ever, Indians stand the chance of winning the $ 1-

million booty being offered by Gillette as part of its Football World

Cup promo 1998

- Events assume important role in marketing mix

- Rise of software TV producers banking on ad industry talent

- Reinventing of cinema -advertising through cinema begins

1998- Lintas becomes AmmiratiPuriLintas (APL)

1999- B2B site agencyfaqs.com launched on September 28, 1999

- The Advertising Club Bombay announces the AdWorks Trophy

In the new millennium

2000- Mudra launches magindia.com - India's first advertising and marketing

Gallery

- Lintas merges with Lowe Group to become Lowe Lintas and Partners

(LLP)

- bigideasunlimited.com - a portal offering free and fee ideas for money

launched by AlyquePadamsee and Sam Mathews

- Game shows like KaunBanegaCrorepati become a rage; media buying

industry is bullish on KBC



- KyunkiSaasBhiKabhiBahuThi marks the return of family-

oriented soap on TV

- French advertising major Publicis acquires Maadhyam

2001- Trikaya Grey becomes Grey Worldwide

- Bharti'sRs 2.75-crore corporate TV commercial, where a baby

girl is born in a football stadium, becomes the most expensive

campaign of the year

2002- Lowe Lintas& Partners rechristened Lowe Worldwide

- For the first time in the history of HTA, a new post of president is

created. Kamal Oberoi is appointed as the first president of HTA

Source:

http://suryamcrpv.blogspot.com/

TYPES OF ADVERTISING :

1. Product Advertising

• Within the context of the 4 Ps of marketing we have the Product. Be it an FMCG

product or an industrial good, we need to understand that advertising plays an

important role in promoting the product. Be it at any stage of the product life cycle,

every product needs to be communicated for varied reasons to its target customer as to

why they ought to go for that product. A product has to be good and should give

satisfaction to the needs of the consumer only then will the advertising objective can

be a success. Even a bad product could be sustained in the market place with a good

advertising, but what matters in the long run is the ability of the product to seemingly

stand out in the minds of the consumers. If the consumer knows the brand and the

associated benefits attached with the product the advertising objective can easily be

achieved thereby bringing about an increase in the sales. Product or brand knowledge

coupled with a clear positioning, derived from a well thought out marketing strategy,

is essential to every successful advertising program. The other elements in good

product advertising are packaging, trademark, and such other physical and psychic

attributes of the product like taste, color, texture, aroma, style and design. The

saleabilty influence of these product attributes is to be analyzed before incorporating

them in the advertising messages delivered through various advertising media.

•

• Product Advertising is of 3 Types:

Pioneering or Informative Advertising Here an attempt is made to stimulate

the primary demand of the product category rather than a specific brand. For

example the advertisement Malaysia Tourism, with their picturous TV

commercial and the slogan „Malaysia - Truly Asia‟ made an indelible mark

where pioneering advertisement was concerned. Here the product category is

introduced first, educative in intent and it appeals to the consumer‟s rational as

well as to his emotional being. At the introductory stage of the PLC this type

of advertising is beneficial. Generating awareness is the main function of

advertising here.

http://suryamcrpv.blogspot.com/



Competitive or Persuasive Advertising Here selective demand of a specific

product brand is stimulated. By now the product is established in the market

and has reached the growth in the market and has reached the growth or

maturity stage of the PLC. Very competitive to market forces. Competitive

advertising is again of two types: • Direct type, where it seeks to stimulate

immediate buying action. • Indirect type, here the benefit of the product is

emphasized in the anticipation of the consumer‟s final action of buying.

Retentive or Reminder Oriented • The product is now having a firm footing in

the market place. Its sales may start to decline at a later point. The buyer must

be reminded about the product to sustain his loyalty. It is a soft sell approach

where the buyer is judged to continue the usage of the product. The essence

here is to keep the brand name in front of the eye of the viewer. Used at both

the maturity as well as the declining stage.

Now let us try to understand the types of products and thereby the advertising needs of them.

Products can be classified as under:

• • Industrial Products

• • Consumer Products for direct consumption.

• • Consumer durables

• • Consumer non durables

•

• In the case of consumer advertising the following points should be taken into

consideration:

• 1. Most of them are in competitive field and engaged in advertising.

• 2. Non-durables are frequently bought.

• 3. Non-durables are appliances, which serve for a long period of time.

• 4. Both rational as well as emotional appeals are used.

• 5. Use of celebrity endorsement is heavy.

• 6. Major chunk of advertising business.

•

• Service Advertising

• This implies the marketing of economic activities, which are offered by the business

to its customers for adequate consideration.

• • They are activities, benefits or satisfaction offered for sale

• • They are Intangible, Inseparable, Variable and Perishable in nature.



• • Require strict quality control, supplier credibility and adaptability. Specialized

services like consulting; being a doctor even an advertising agency is an example of

advertising. They may talk about congenial environment, quickness and promptness

of service, economy, exclusiveness, and status significance. Hotels and airlines, when

advertising their services, attach greater importance to service with a smile, courtesy,

thoughtfulness and claim that they offer a home away from home.

•

• Services like physical goods also use channels to make their output available and

accessible, e.g., location of particular hospital to cater to a particular catchment area.

Promotion of services also emphasizes the locational aspect. Retail services, which

are growing at a good rate use promotion as a major tool. In this respect I want you to

think of the advertisement of ICICI bank who have roped in Amitabh Bachan to be

their brand ambassador.

•

• Corporate/Institutional Advertising

• In this form of advertising an institution presents its own story to build up an image of

itself in the minds of the public. It is more like a public relations approach advertising.

It could talk about how it is associating with a cause, like the Star TV Network

putting the cause for girl child education in the forefront. It may emphasize on its

contribution to the society and it could also talk about the mission of the organization.

That way it could show all the products of the organization, like the Hero Honda‟s

“Desh Ki Dharkan”, where they show all the brands of the organization. Sahara by

saluting the Indian cricket captains is associating with cricket.

• The institutional advertisement is very subtle in nature and affects our basic attitudes.

It may build upon its history and may try to build awareness about itself. The ad copy

could be focused at the general public or may be directed towards specific group like

its shareholders. Take the example of the ad of Hindustan Petroleum here. Now the

advertisement talks about powering India since 25 years. Especially where

locomotives are concerned. Hence focusing on the fact that they power the Indian

Railways. So it is building a favorable image for itself in the minds of the public. It is

more of telling the public as to how socially responsible they are. So their overall

objectives are in tune with social issues. So the basis is to create goodwill in the

minds of its internal as well as external customers. So the objectives of this type of

advertising are:

• • To make the company known

• • To make its products / services known.

• • To make its achievements known.

• • To make its values known.

• • To make socio-political / economic / moral statements.

• To give an identity to a faceless organization is what institutional advertising does.

When designing a corporate ad we must pay heed to the type of response we want. It

purely asks for an approval and not any action from the target audience.

•

Public Services Advertising “School Chalen Hum”, “Mille Sur MeraTumhara”, these advertisements have become very

popular and have seemed to touch the public. During the Kargil war there were a lot of

advertisements, which focused on the Indian soldiers fighting on the front. The advertisement

was for the Prime Minister‟s Fund for the Kargil war. The print advertisements had won a lot

of awards. Public service advertising is identified with national cause, even in the promotion

of soap or insurance there could be elements of public service. There should be a thorough



knowledge of the target market, especially if we are talking about adult education, AIDS,

national calamity relief fund, birth control, etc.

Financial Advertising It is an advertising activity which is undertaken by companies, firms, or organization

involved in financial markets, such as Unit Trusts, Assurance, Building Societies, or Banks.

The media used for financial advertising is normally the print. The visuals used are graphics

of turnover and financial data. Appropriate headlines should be framed in order to catch

attention. There are 2 types of advertisements in this context. One which focuses on the

bigger picture and the other on the nitty gritty of let‟s say an issue. Copy is purely on the

gains and financial aspects of the company.

Global Advertising

“The world is smaller than you think”, so goes the advertisement for the British Airways. We

are living in a global village and now we are not just catering to the local environment but to

a total global environment. “It is any paid form of non personal presentation and promotion

of Ideas, Goods or Services by an identified global sponsor of a product to a global

customer.” The objectives are as under:

• To keep the world wide corporate image

• To reduce production and creative costs

• To avoid message confusion in international areas of media overlap.

Normally we have 3 types of themes to be followed:

1. Universal campaigns if the target market is the same all over the world

2. I would call this „Glocal‟, wherein the foreign product is shown but in the local setting.

3. Thirdly, complete execution is locally adapted, “ThandaMatlab”….

Globalization of advertisement is to bring about economies of scale, global coverage and the

speed with which the companies want to influence the market.

AIDA Model

The design and development of advertising follows the AIDA formula. The effectiveness of

advertising depends upon to what extent the advertising message is received and accepted by

the target audience. Research has identified that an advertisement to be effective has to

i. Attract Attention

ii. Secure Interest

iii.Build Desire for the product and finally

iv. Obtain Action.

All advertisements obviously do not succeed on these counts. This is one solitary reason

behind the great divergence between the number of people exposed to the advertisement and

those who ultimately take the purchase decisions. At this stage, however, other elements of

the marketing mix, especially distribution become crucial. Advertisement communicates an

idea, a message or a belief. An advertisement would be effective only if the media audience

accepts that message and is motivated to take the required action.

DAGMAR Approach

Dagmar Approach is the task of measuring ad effectiveness will not be daunting if we clearly

spell out the advertising goals. Russel H. Colley (1961) pioneered an approach known by the

acronym DAGMAR – Defining Advertising Goals for Measured Advertising Results, where

to establish an explicit link between ad goals and ad results, Colley distinguished 52



advertising goals that might be used with respect to a single advertisement, a year‟s campaign

for a product or a company‟s entire advertising philosophy.

These goals may pertain to sales, image, attitude, and awareness. Some of the goals are:

• Persuade a prospect to visit a show room and ask for a demonstration.

• Build up the morale of the company‟s sales force.

• Facilitate sales by correcting false impression, misinformation and other obstacles.

• Announce a special reason for buying now‟s (price, discount, premium and so on).

• Make the brand identity known and easily recognizable.

• Provide information or implant attitude regarding benefits and superior features of brand.

According to DAGMAR approach, the communication task of the brand is to gain (a)

awareness, (b) comprehension, (c) Conviction, (d) image and (e) action.

ROLE OF ADVERTISING

Advertising is a business, an art, an institution, and a cultural phenomenon.Advertising helps

consumers see the possibilities and meanings in the things that they buy. Advertising also

liberates meanings that lie below the surface.Advertising is part of our every day culture as it

is omnipresent. On an average, we see close to 1,500 ads per day. Therefore their influence

on the cultural consciousness and behavior of the public can‟t be denied.In Indian scenario

advertising has a very large influence in the mass media market place as it pays most of the

bills and thus plays a major role in shaping the content and operation of the mass media in

India.Advertising also plays an important role in the popular Indian culture because it shapes

and reflects our life styles. It is usually the first to reflect social trends.

Economic Role of Advertising Advertising performs an economic function for an advertiser, affects economic decision of

the audience and is an integral part of the whole economic system.

Advertising stimulates demand, educates consumer about new product, policies, programmes

services and organizations, increases competition and improves standard of living by bringing

new product to the consumer.

Advertising boosts the economy by helping to introduce new products faster and more

effectively to consumer thereby supporting the economies of scale.

It helps to remove the monopoly of the product.

It promotes healthy competition.

Increases sales.

Social Role of Advertising Advertising reflects society and society reflects advertising. At social level advertising plays

upon, derives from and contributes to the social texture of a country.

Various social changes are brought about or helped by advertising. Adult education, family

planning and pulse polio campaign are the examples of few successful social advertising

campaigns.

It makes role models who can create societal change.

Ads are efficient source of information for product quality, new material or merchandise, new

technology and cost. ƒ



It reduces distribution costs, encourage competition and increases product quality through

brand identity. ƒ

It supports mass media to maintain independence from government, political parties and

other special interest groups.

Cultural Role of Advertising

Advertising has also been a longtime promoter of the arts. Corporate advertising has

given artists new means to fund their creative efforts. In addition, many artists and

writers have been able to support themselves by working for advertisers. Indeed, it is

hard to imagine the cultural landscape of India without advertising.

Advertising reinforces cultural norms. “Daag Ache Hain”

Advertising has created a global culture thereby promoting tolerance and acceptance.

Advertising has promoted and supportedcultural transitions in the society.

• Negative Effects of Advertising

The relationship of advertising to materialism – Advertising creates or fosters materialism.

Materialism is defined as the tendency to give undue importance to material interests. People

buy high-end luxury products for social status. It reflects changing values and attitudes that

are created by more significant sociological forces.

Advertising plays a major role in creating harmful stereotypes of women and ethnic

minorities.

Contribution of advertising in promoting harmful products – Harmful products like

tobacco, alcohol are promoted through Surrogate advertising.

LEGAL AND MORAL ASPECTS OF ADVERTISING

Advertising has ethical value. The mixing of Art and facts in advertising communication are

subservient to ethical principles. In today‟s competitive and buyer‟s market, advertisements

have to be truthful and ethical. If an advertisement is misleading, the credibility of the

organization is lost. To view the truth in advertisement, it has to be seen from to consumer‟s

point of view rather than from legal point. The advertising industry has been frequently

criticized for putting out misleading or exaggerated claims in respect of product, goods and

services advertised.

The Advertising Standards Council of India

The Advertising Standards Council of India (ASCI), established in 1985, is committed to the

cause of SelfRegulation in Advertising, ensuring the protection of the interests of consumers.

ASCI was formed with the support of all four sectors connected with Advertising, viz.

Advertisers, Advertising Agencies, Media (including Broadcasters and the Press) and others

like PR Agencies, Market Research Companies etc. The Consumer Complaints Council is

ASCI‟s heart and soul. The Advertising Standards Council of India (ASCI) (1985) has

adopted a Code for Self-Regulation in Advertising. It is a commitment to honest Advertising

and to fair competition in the market-place. It stands for the protection of the legitimate

interests of consumers and all concerned with Advertising - Advertisers, Media, Advertising

Agencies and others who help in the creation or placement of advertisements.

To maintain and enhance the public‟s confidence in advertising.ASCI seeks to ensure that

advertisements conform to its Code for Self-Regulation which requires advertisements to be:

Honest Representations - Truthful and Honest to consumers and competitors.

Public Good Taste - Within the bounds of generally accepted standards of public

decency and propriety. - Not used indiscriminately for the promotion of products,



hazardous or harmful to society or to individuals particularly minors, to a degree

unacceptable to society at large.

Fair in Competition - Not derogatory to competition. No plagiarism.

Automotives& Safety - Advertisers are encouraged to depict advertisements, in a

manner which promotes safe practices, eg. Wearing of helmets and fastening of

seatbelts, not using mobiles/cell phones when driving, etc.

Educational Institutions - Parents are known to make great personal sacrifices to

enable their children to get the right education. A significant amount of advertising

activity that is currently happening reflecting the vast variety of educational programs

which are being offered. It is important fot the advertisers to ensure that the ads do not

mislead customers.

Foods & Beverages - Advertising can have a positive influence by encouraging a

healthy, well balanced diet, sound eating habits and appropriate physical activity.

Caution and care therefore should be observed in advertising of Foods & Beverages

especially ones containing relatively high Fat, Sugar and Salt.

Disclaimers in an Advertisement - “Supers” should be clearly legible and on TV

advertisements should be held long enough for the full message to be read by an

average viewer on a standard domestic TV set. Therefore following minimum size of

lettering of “Supers” and its holding time on screen for TV advertisements is required.

ETHICAL ISSUES IN ADVERTISING

Advertising is a highly visible business activity and any lapse in ethical standards can often

be risky for the company. Some of the common examples of ethical issues in advertising are

given below:

Vulgarity / Obscenity used to gain consumers‟ attention

Misleading information and deception

Puffery

Stereotypes

Racial issues

Controversial products (e.g. alcohol, gambling, tobacco etc)

•

LAWS THAT AFFECT ADVERTISING IN INDIA

Cable Television Network Act

Drugs and Cosmetics Act

Drugs Price Control Act 

Drugs and Magic Remedies (Objectionable Advertisements) Act

Emblems and Names (Prevention of Improper Use) Act

Copyright Act

Trademarks Act 

Patents Act – Introduction to Intellectual Property Right 

Indecent Representation of Women (Prohibition) Act

•

ADVERTISING AND FREEDOM OF SPEECH

Article 19(1)(a) guarantees to all citizens the freedom of speech and expression. The freedom

of speech and expression means the freedom to convey effectively one‟s thoughts and



feelings.The freedom of speech and expression is a fundamental freedom, one without which

a liberal society cannot exist. Under the freedom of speech and expression, the freedom of

media is also implied. Any expression of ideas, values, opinions communicated to the the

public at large through the various media inter alia- press, films, radio, television and all other

forms of mass communication come under what the Apex Court interprets as 'commercial

speech' or 'commercial expression' under the Freedom of speech and expression.

• The essence of free speech is the ability to think and speak freely and to obtain

information from others through publications and public discourse without fear of

retribution, restriction, or repression by the government. Advertising is a form of

communication for marketing and used to encourage orpersuade an audience

(viewers, readers or listeners; sometimes a specific group) to continue or take some

new action. Most commonly, the desired result is to drive consumer behaviour with

respect to a commercial offering, although political and ideological advertising is also

common.

In John W. Rast v. Van Deman& Lewis Company, Mr. Justice Mckenna, dealing with

advertisements said:-

"Advertising is merely identification and description, apprising of quality and place. It

has no other object than to draw attention to the article to be sold and the acquisition

of the article to be sold constitutes the only inducement to its purchase." above

advertisement takes the same attributes as the object it seeks to promote or bring to

the notice of the public to be used by it. Examples can be multiplied which would

show that advertisement dealing with trade and business has relation with the item

"business or trade" and not with "freedom of speech".

The principles, as stated in the case of Reckitt & Coleman of India Ltd v Kiwi

TTKLtd (63 (1996) DLT 29), are as follows:

a) An advertisement can declare that the advertised goods are the best in the world,

even though this declaration is untrue;

b) An advertisement can state that the advertised goods are better than those of

competitors, even if this statement is untrue;

c) An advertisement can compare the advertised goods with those of competitors;

d) An advertisement cannot, while stating that the advertised goods are better than

those of a competitor, state that the competitor‟s products are bad, as this would be

defamation;

e) In a case of defamation, damages can be claimed. The court can also grant

aninjunction against repetition of the defamatory action.

Today, new era of advertising has evolved, which is both cost-effective as well as

efficient at global level. Online advertising is the fastest growing medium of

advertising that has proven its effectiveness and stability in the advertising world.In a

developing economy like India, advertising has a profound impact on how people

understand life, the world and themselves, especially with regard to their values,



choices and behaviour. Advertising is considered to be the cornerstone of our socio-

economic system and may be viewed as the lifeline of free media, paying costs and

making media widely accessible. Advertising agencies perform deep research before

they create and feature the advertisement for the targeted audience. Few platforms

dominated the advertising market and offered an opportunity for the advertisers to

pass on the message to people, and market their products.

Freedom to speak freely, without limitation or regulation is termed as the Freedom of

Speech. Freedom of Expression implies not only the freedom to speak but also to

distribute and access of the information through various media modes. In the

advertising and media industry, a self-regulatory guideline of code and conduct is a

self-imposed discipline, whose primary objective is to monitor and prescribe the

advertising standards for public interest. This system complements government

legislation and regulations as well. As the categories of sensitive advertisers are

constantly increasing; consumer groups, governments and regulators became more

cautious to take lively interest. Monitoring and voluntary self-regulations in

advertising, allow reasonable freedom of speech and expression. The members of

Communication Council should be aware about the importance of self-regulation.

In many countries, the government controls media so that nobody can publish or

broadcast anything that the government considers harmful, immoral or threatening for

the stability of the country. Censorship is regulated by a particular body or the

government that retains the power base, on the media content.

Right To Advertisement As A Part Of Freedom Of Speech And Expression

Advertising which is no more than a commercial transaction, is nonetheless

dissemination of information regarding the product advertised. Public at large is

benefitted by the information made available through the advertisement. In a

democratic economy free flow ofcommercial information is indispensable. There

cannot be honest and economical marketing by the public at large without being

educated by the information disseminated through advertisements. The economic

system in a democracy would be handicapped without there being freedom of

"commercial speech" and when examined from another angle, the public at large has a

right to receive the "Commercial speech". Article (19) (1) (a) not only guarantees

freedom of speech and expression, it also protects the rights of an individual to listen,

read and receive the said speech. So far as the economic needs of a citizen are

concerned, their fulfilment has to be guided by the information disseminated through

the advertisements. An advertisement giving information regarding a life saving drug

may be of much more importance to general public than to the advertiser who may be

having purely a trade consideration.

An advertisement is no doubt a form of speech but its true character is reflected by the

object for the promotion of which it is employed. It assumes the attributes and

elements of the activity under Article 19(1) which it seeks to aid by bringing it to the

notice of the public. When it takes the form of a commercial advertisement which has

an element of trade or commerce it no longer falls within the concept of freedom of

speech for the object is not propagation of ideas ' social, political or economic or

furtherance of literature or human thought; but as in the present case the

commendation of the efficacy, value and importance in treatment of particular

diseases by certain drugs and medicines. In such a case, advertisement is a part of



business.

It allows us to freely express our ideas and thoughts through any medium such as

print, visual, and voice. One can use any communication medium of visual

representation such as signs, pictures, or movies. Freedom of speech would amount to

nothing if it were not possible to propagate the ideas. Thus, the freedom of publication

is also covered under freedom of speech. Freedom of speech serves 4 purposes:

a) Allows an individual to attain self fulfillment.

b) Assists in the discovery of truth.

c) It strengthens the capacity of a person to make decisions.

d) It facilitates a balance between stability and social change.

This right is not only about communicating your ideas to others but also about being

able to publish and propagate other people's views as well. Thus, freedom of speech

and expression is linked to the people's right to know. Freedom of speech and

expression is a broad term and encompasses several things Freedom of speech is

guaranteed not only by the constitution or statutes of various states but also by various

international conventions like Universal Declaration of Human Rights, European

convention on Human Rights and fundamental freedoms, International Covenant on

Civil and Political Rights etc. These declarations expressly talk about protection of

freedom of speech and expression.

Right to know, to information is other facet of freedom of speech. The right to know,

to receive and to impart information has been recognized within the right to freedom

of speech and expression. A citizen has a fundamental right to use the best means of

imparting and receiving information and as such to have an access to telecasting for

the purpose. In State of Uttar Pradesh v. Raj Narain it was observed that, “The people

of this country have a right to know every public act by their public functionaries. The

right to know is derived from the concept of freedom of speech.” Through

advertisements, not only is the right to know is assured but it is directly proportional

to the advertisers freedom of speech and expression. Advertisements maintain

competition in the market and help in educating the public.

In Reliance Petrochemicals Ltd v. Indian Express it has been observed by the bench

deciding the case that “We must remember that people at large have a right to know in

order to be able to take part in a participatory development in the industrial life and

democracy. Right to know is a basic right which citizens of a free country aspire in

the broader horizon of the right to live n this age on our land under Art. 21 of the

Constitution.”

Since, advertising is a form of communication for marketing and is used to encourage

or persuade audience. It is nonetheless dissemination of information regarding the

product advertised and the public at large is benefitted by the information made

available through the advertisement. In a democratic economy free flow of

commercial information is indispensable. There cannot be honest and economical

marketing by the public at large without being educated by the information

disseminated through advertisements.

It is necessary to maintain and preserve freedom of speech and expression in a



democracy, so also it is necessary to place some restrictions on this freedom for the

maintenance of social order, because no freedom can be absolute or completely

unrestricted. Accordingly, under Article 19(2) of the Constitution of India, the State

may make a law imposing “reasonable restrictions” on the exercise of the right to

freedom of speech and expression “in the interest of” the public on the following

grounds:

a) Security of State

b) Friendly relations with foreign states

c) Public Order

d) Decency or morality

e) Contempt of Court

f) Defamation

g) Incitement to an offence Sovereignty and integrity of India.

However, advertisers often view these rules and regulations as violating their right to

freedom of speech. Some ads, in particular, were considered derogatory and banned

by the government, such as:

· A deodorant advertisement that showed a man accompanied by scantily clad women

was banned by the government after several complaints were received from viewers

about the advertisement being offensive to family viewers.

· A soft drink advertisement that showed a child bringing the drink for the Indian

cricket players was banned after complaints from child labor activists.

· Advertisements of two underwear ads were banned due to vulgarity and indecency.

Objectionable content in ad is usually a reason for taking it off channels.

RESTRICTIONS:

As stated previously, no right can be absolute and without restrictions or else they

might not act in the best interest of the public. Advertisement has been considered as

an act of communication or expressing one‟s views but the said right may be

exploited by the advertisers if not guarded. Restrictions on advertisements might be

imposed when the advertiser indulges in the following acts, for it is necessary for the

government/the appropriate authorities to intervene if such advertisements are

detrimental to the interests of the public at large:

1. Deception- exists when an advertisement is introduced into the perceptual process

of the audience in such a way that the output of that perceptual process differs from

the reality of the situation. It includes a misrepresentation, omission or a practice that

is likely to mislead. These may include the following:

• Violates Consumers' Right to Information: Use of untrue paid testimonials to

convince buyers, quoting misleading prices, disparaging a rival product in a

misleading manner are some examples of deception. Advertisers of anti- aging

creams, complexion improving creams, weight loss programs, anti-dandruff

shampoos, and manufacturers of vitamins or dietary supplements are usually guilty of

making exaggerated product claims. Some of the examples of advertisements in this

category are:



“A fairness cream is advertised with the claim that its user will get a fair complexion

within a month” is deceptive in nature as it deceives/misleads the public into

believing such facts which might not take place.

• Violates Consumers' Right to Safety - When an advertisement for cooking oil says

that using the said oil frees the user from heart problems, and then such an

advertisement is misrepresenting the facts. Companies advertise products highlighting

health cures and drugs of questionable efficacy and health gadgets of unknown

values.

• Violates Consumers' Right to Choice - When material facts which are likely to

influence buying decisions are not disclosed the advertisement becomes deceptive. In

several advertisements it is stated that 'conditions apply' but these conditions are not

stated. Not disclosing material facts amounts to deception. For example, the recent

print ad for Videocon mentions a 1-ton split-AC available for Rs. 15,990/, a very

attractive offer. But there is a small asterisk which mentions three things in small font,

such as “Conditions apply”, “Prices valid in Delhi and NCR under exchange only”.

2. Bait advertising :It means taking advantage of consumer psychology and depriving

consumers of a choice. For example, a consumer is lured into a retail outlet by an

advertisement for a low cost item and then is sold a higher priced version or to be

defective. Once the consumer enters the store, he or she is pressured to purchase

another more expensive item. On visiting such stores, one finds a handful of outdated

products on the discount announced and other better products as 'fresh stock'.

3. Advertising of harmful products: Advertising is not restricted to products that are

good for people. According to law in India advertisements for cigarettes, liquor, paan

masala, products that are harmful to the public continue to find a place despite the ban

imposed by the government in private channels, cable, and through the use of

surrogates.

4. Puffery/Fraudulation: Very often we hear that advertisement exaggerates about the

product qualities. Now a days „puffery‟ i.e. “metaphor of idea” forms to be main

element in advertising. On the one hand critics accuse it, while on the other defenders

i.e. advertisers and advertising professionals opined it as a helping agent to

differentiate their brands from the competitors. Puffery is considered to be an

„opinion‟ and not a „factual information‟. Advertisers claim that the consumers are

intelligent enough to distinguish between truth and exaggeration. Moreover they are

not blindly going to believe everything as such presented in an advertisement.

5. For a better understanding of the above and relationship between commercial

advertisement and freedom of speech and expression, the remarks made by the

Hon‟ble judge in Colgate Palmolive (India) Limited v Anchor Health & Beauty Care

Private Limited (Case (2008) 7 MLJ 1119) might be of utmost relevance: it was held

that false claims by traders about the superiority of their products, either directly or by

comparing them against the products of their rivals, were not permissible.

Recognizing the right of producers to puff their own products even with untrue

claims, but without denigrating or slandering each other‟s products, would be to „de-

recognize‟ the rights of the consumers guaranteed under the Consumer Protection Act

1986.”

To permit two rival traders to indulge in puffery, without denigrating each other‟s



products, would benefit both of them, but would leave the consumer helpless. If on

the other hand, the falsity of the claim of a trader about the quality and utility value of

his product is exposed by his rival, the consumer stands to benefit by the knowledge

derived out of such exposure. After all, in a free market economy, the products will

find their place, as water would find its level, provided the consumers are well

informed. Consumer education, in a country with limited resources and a low literacy

level, is possible only by allowing a free play for the trade rivals in the advertising

arena, so that each exposes the other and the consumer thereby derives a fringe

benefit.

Notably, the court found to be permissible advertisements which “tend to enlighten

the consumer, either by exposing the falsity or misleading nature of the claim made

by the trade rival or by presenting a comparison of the merits (or demerits) of their

respective products”. Interpreting such advertisements to be in the „public good‟, the

court cited two instances as an exception to this – namely, if an advertisement is

motivated by malice, and if it is false. The court held that this sort of advertising

would benefit society because competitors are naturally better equipped to expose a

rival‟s untrue claims.

The court also held that the benefit to society from such an exposure would “outweigh

the loss of business for the person affected”. This observation was based on the

court‟s assumption that comparative advertising, even if it did not amount to a

disparagement of other goods, could result in consumers being misled.

Laws Imposing Restrictions On Advertising:

1. Consumer Protection Act- This statute provides for the establishment of a Central

Consumer Protection Council with the object of promotion and protection of the rights of

the consumer, including protection against unfair trade practices. The Act also empowers

the District Forum to take measures to discontinue the unfair trade practices. The Forum

also has the power to issue corrective advertisements to neutralize the effect of a

misleading advertisement. India does have other legislations that regulate unfair trade

practices, in addition to the Consumer Protection Act.

2. The Monopolies and Restrictive Trade Practice act, 1969: It had been the most

effective Act in the eighties and nineties to regulate undesirable advertising. In the year

1984, the government brought, through an amendment, "unfair trade practices" under the

purview of the MRTP Commission and the Office of the Director General (Investigation

and Registration). However, this Act is being replaced by the Competition Act, 2002 but

the cases pending under the MRTP Commission are still being heard. Moreover, a

Competition Commission has been set up under the Competition Act to deal with

monopolies and restrictive trade practices. The complaints pertaining to unfair trade

practices are still being handled by the MRTP Commission or the consumer courts. The

MRTP Act has been very effective in hauling a number of advertisers to stop

advertisements which are prejudicial to consumer interest through its 'cease and desist

orders'.

3. Information Technology Act, 2000 (IT Act) -The IT Act makes the publication and

transmission in electronic form of material which is lascivious or appeals to the prurient

interest or it its effect is such as to tend to deprave and corrupt persons who arelikely,



having regard to all relevant circumstances, to read, see or hear the matter contained or

embodied in it, punishable with imprisonment and fine. The IT Act applies to any offence

committed by any person outside India, if it involves a computer, computer system or

computer network located in India. The offences under the IT Act are punishable with

imprisonment and/or fine.

4. Indian Penal Code, 1860 (IPC) -The IPC makes it a punishable offence to advertise any

obscene publication or its distribution, sale, hire or circulation. It is also an offence under

IPC to publish advertisements relating to any lottery which is not a state lottery or which

is not authorized by the State Government. The IPC prohibits the sale, distribution, public

exhibition or circulation of any obscene book, pamphlet, paper, drawing, painting,

representation, figure or any other obscene object.

5. The Cigarettes and other Tobacco Products (Prohibition of Advertisement and

Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003

(CTPA) - The CTPA prohibits advertisement of cigarettes and other tobacco products

which, directly or indirectly, suggest or promote the use or consumption of cigarettes or

any other tobacco products, by any person who is either engaged in the production,

supply or distribution of such products or by a person having control over a medium who

causes such advertisements to be advertised through that medium or by a person who

takes part in such advertisement.

6. The Drugs and Magic Remedies (Objectionable Advertisements) Act - This statute

prohibits advertisements of drugs for certain purposes and of treatment of certain diseases

and disorders. It also prohibits misleading advertisements relating to drugs and

advertisements of magical remedies for the treatment of certain diseases and disorders.

Under this Act, “advertisement” includes any notice, circular, label, wrapper or other

document and any announcement made orally or by means of producing or transmitting

light, sound or smoke.

7. The Emblems and Names (Prevention of Improper Use) Act, 1950- This statute

prohibits the use, for professional or commercial purposes, of select emblems and names

of national or international significance. An advertiser who makes commercial use of

such emblems and names would be liable under this statute

8. SEBI (Mutual Funds Regulation), 1996: SEBI Guidelines for Advertisements by

Mutual Funds - the Guidelines list out detailed requirements for advertisements by

Mutual Funds. The guidelines apply to all forms of advertisements, communications,

released in any form and through any media including websites. It defines an

“advertisement” as any material published or designed to be published on which a mutual

fund has no control over the audience and which is broadly distributed.

9. The Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse) Act,

1994:This statute prohibits advertisements relating to predetermination of sex.

10.The Transplantation of Human Organs Act, 1994:This statute makes it a punishable

offence to issue advertisements inviting persons to supply, for payment a human organ.



Benchmark case - HAMDARD DAWAKHANA v.UNION OF INDIA (Constitutional

Bench)

Brief Facts- Parliament of India enacted a statute that was aimed at controlling

advertisements

of drugs in some specified cases [Drugs and Magic Remedies (ObjectionableAdvertisements)

Act (1954)].

Issue- The constitutionality of this Act was challenged by the plaintiff on the grounds that it

restricted his right to freedom of speech and expression unfairly, in contravention of

Arts19(1)(a) and Art 19(2) and also that it violated his rights to carry on business because the

restrictions were allegedly in contravention of Art 19(1)(g).

Judgment-

The content and intent of the advertisement are extremely important when deciding whether

it deserves protection under Arts 19(1)(a) and 19(2). “When it (advertisement)takes the form

of a commercial advertisement which has an element of trade and commerce, it no longer

falls within the concept of freedom of speech, for the object is not propagation of ideas, social

political or economic, or furtherance of literature or human thought, but the commendation of

the efficacy , value and importance of certain goods.”

The Court concedes that an advertisement is a “form of speech”, but goes on to hold –

nonetheless – that the advertisements in question are not protected by the Freedom of Speech

guaranteed under Article 19(1)(a) because they have “no relationship with the essential

concept of the freedom of speech.”

References:

http://suryamcrpv.blogspot.com/2011/09/history-of-advertising-in-india.html. (n.d.).

http://www.legalservicesindia.com/article/1317/Advertisement-and-Freedom-of-Speech-and-

Expression.html. (n.d.).

https://iarjset.com/upload/2015/may-15/IARJSET%2024.pdf. (n.d.).

https://www.indianmediastudies.com/role-of-advertising-in-economic-and-social-development. (n.d.).

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