Finale Project on Role of Advertising (1)

CHAPTER 1:- INTRODUCTION

Advertising, generally speaking, is the promotion of goods, services, companies and

ideas, usually performed by an identified sponsor. Marketers see advertising as part of an

overall promotional strategy. Other components of the promotional mix include publicity,

public relations, personal selling, and sales promotion.

Advertising involves the process where in a message is designed so as to promote a

product, a thought, an idea or even a service. The concept of advertising has assumed a

dynamic form with the use of the various mediums of communication. From the newspaper,

magazines, posters, neon and fluorescent signboards, billboards to the commercial on TV,

laser shows to inflated high-rise figures and objects, advertising has come a long way. The

work is formidable as it spearheads a process intended to attract, modify, change and

influences public opinion.

From the local business to multinational firm and all need to advertise. While

politicians, social organizations, government special groups need to advertise their motto,

national airlines, auto mobile manufactures, food and consumer goods manufacturers have to

reach the consumer.

Advertising is Communication

Advertising sends a message. The advertising campaign, regardless of its scope or size,

portrays the organization, products and services, and values. Each attribute is tested with each

new customer the companies acquire.

1

1.1 History of Advertising

15th and 16th century- printing developed- advertising expanded to include handbills.

17th century- advertisements in weekly newspapers in England- mainly books &

medicines.

19th century- economy expanded advertising grew.

1841- first advertising agency established by Volney Palmer in Boston, USA.

1875- N. W. Ayer & Son- the first full service agency in Philadelphia, USA.

1.2 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).

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

# 1936- Indian Broadcasting Company becomes All India Radio (AIR)

# 1978 -First television commercial seen

# 1990-Marks the beginning of new medium Internet  

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

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

2

  Communications Ahmedabad), is born

1.3 DEFINITION

Advertising:

Advertising is a form of communication used to promote products and services of a

company primarily to generate sales and secondary to create a brand identity, introduce new

products and services, communicating a change in the existing product line. It also helps in

communicating social messages to the masses.

According to the American Marketing Association advertising is defined as

“Any paid form of non –personal presentation and promotion of ideas, goods or services by an

identified sponsor”.

Latin Word:

“ADVERTERE” - Turning the valuable attention towards the product”.

“Any paid form of non personal communication of information about products or ideas by an

identified sponsor through the media in an effort to persuade or influence behavior of the

people in such a manner as to induce them to buy.”

What is advertising?

It is a message designed to promote a product service or an idea.

Its purpose is to persuade people to buy products or services

Businesses use advertising to gain new customers and increase sales.

Advertising helps shape tastes, habits, attitudes and culture of a country.

“Advertising can only create awareness & demand but CAN NOT sell a product on its own.”

3

1.4 FEATURES OF ADVERTISING

1.4.1 Advertising provides information:

The basic purpose of advertising is to provide information about products, goods,

services or ideas to perspective buyers. The details of products such as features, uses,

prices, benefits, other instructions to be followed while using the product are given in

the advertisements.

1.4.2 Advertising is a paid form of communication:

Advertising may be in any convenient form such as sign, symbol, slogan, Illustration

or message.

1.4.3 Advertising is a non-personal presentation:

Advertising is non-personal in character as against salesmanship which is personal

(face to face communication) in character. In Advertising, the message is given to all

and not to one specific individual. e.g. T.V., radio, etc.

1.4.4 Advertising is an art, science and profession:

It is an art as it needs creativity for raising its effectiveness. It is treated as science as

it has its principles, rules, etc. Advertising is now treated as profession with its

professional bodies and code of conduct for members.

4

1.4.5 Creativity-the essence of Advertising:

Advertising is a method of presenting a product in an artistic, attractive and agreeable

manner. This is possible through the element of creativity which is the essence of

Advertising of the present period.

1.4.6 Advertising is for persuasion:

Advertising is not only for giving information but also for appealing people to buy a

specific product. It aims at persuasion of potential customers.

1.4.7 Advertising is target oriented:

It is possible to make intensive Advertising by selecting a specific market or specific

segment of consumers for the purpose of Advertising. This selection of specific market

is called target market.

1.4.8 Advertising is an important element in marketing mix:

Advertising supports the sales promotion efforts of the manufacturer. It can make

positive contribution in sales promotion provided other elements in the marketing mix

are reasonably favorable.

Brand plays an important role in promoting the product or the company, let the advertisement

be the best if it won’t have a particular it won’t work out in the market.

5

1.5 FUNCTIONS OF ADVERTISING

Advertising has become an essential marketing activity in the modern era of large-scale

production and severe competition in the market. It performs the following functions:

1.5.1 Promotion of sales:

It promotes the sale of goods and services by informing people to buy them. A good

advertising campaign helps in winning customers and generating revenues.

1.5.2 Introduction of new products:

It helps in the introduction of new products in the market. A business enterprise can

introduce itself and its products to the public through advertising. Advertising enables

quick publicity in the market.

1.5.3 Support to production system:

Advertising facilitates large-scale production. The business firm knows that it will be

able to sell on a large scale with the help of advertising. Mass production will reduce the

cost of production per unit by making possible the economical use of various factors of

production.

6

1.5.4 Increasing standard of living:

Advertising educates the people about the products and their uses. It is advertising

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 society.

1.5.5 Public image:

It builds up the reputation of the advertiser. Advertising enables a business firm to

communicate its achievements and its efforts to satisfy the customers’ needs to the

public. This increases the goodwill and reputation of the firm.

1.5.6 Support to media:

It sustains press. Advertising provides an important source of revenue to the

publishers of newspapers and magazines and the producers of T.V. programmes.

7

1.6 OBJECTIVES & IMPORTANCE OF ADVERTISING

General Objectives …

Persuade :

Objective is to build demand for a particular “Brand” of product –

Toilet soaps, toothpastes, etc.

Remind :

After establishing the product – to remind the public about the product – Coca Cola,

Pepsi, Cadbury’s, etc.

Specific Objectives …

Induce Trial :

Induce the customer to try the product - Ariel, Vim, Surf, - any detergent

Intensify Usage :

Get another segment to try the product - Cadbury’s by older people

Sustain Preference :

Established Brands advertise to maintain ‘Market Share’ – Cadbury’s is generic to

chocolates

Confirm Image :

Of the Brand in the minds of the customer –Nescafe -

Change Habits :

Change the buying pattern – Dove soap, other cosmetics and beauty creams

8

Build Line of Acceptance :

Display the entire range of its products - Bata - formal shoes, sports, slippers, chappals,

gum boots, etc. In short anything in footwear

1.7 TYPES OF ADVERTISING

1.7.1 Classified Advertising

• Classified advertising provides information in a dry matter-of-fact manner. Useful

information about the employment market (situations vacant and situations wanted)

about births, deaths, engagements and marriages, about change of names, about

accommodation and housing (accommodation available and accommodation wanted),

about the availability of various services such as tuitions, and about various items on

sale.

• Matrimonial advertising are also a part of classifieds and are frequently casteist, racist

and sexist. Another type of classifieds is service advertising which focuses on services

such as professional training , coaching classes, consultancies, public speaking, hotel,

tourism and others.

• The approach here is usually more direct and information oriented. Very little

creativity is allowed and creativity is used for complimenting the important factual

information / data.

9

1.7.2 Consumer Advertising

• Consumer advertising is the type of advertising readers, listeners and viewers are

exposed to most of the times. It is the type that tends to promote attitude and lifestyles,

which praise acquisition and consumption at the expense of higher values.

• They play on emotions, change real human situations into stereotypes, exploit anxieties

and employ techniques of direct and indirect persuasion.

1.7.3 Retail Advertising

Advertising that conveys to the consumers messages about the retailer, its products,

its service and its goals.

The objective here is to inform reader listener or viewer about Retailer Offerings

Prices Services.

Retail ads primarily look at Stimulating trial, Increasing demand, improve availability

Includes : premiums, Frequent buyer programs, coupons

Long Term goals are to Create a positive store image, Store Positioning in

Marketplace, Public Service

Short Term focus is to Increase sales to current customers, Attract new customers

• The ad message is designed based on and inclusive of:

Age of Store

Store location

Types of Goods

Level of competition

Market Area Size

Supplier Support

10

1.7.4 Viral Marketing

• Viral marketing is a term used to describe the technique used to increase awareness of

a certain advertisement through self-replicating processes.

• The basic rule about viral marketing is that you only have to think of a way that your

advertisement would encourage people to pass it along. This is why this technique is

more often called “word-of-mouth marketing”. Where and what to use for the

advertisement is up to you.

• Using the internet as means of marketing is becoming a need nowadays if the goal is to

have a cheap advertisement and gain brand awareness in a fast and effective way.

• The goal of viral marketing is to make people promote your product in order to

increase brand awareness.

• If your target consumer is everybody this technique is used.

• People are the means and target of these advertisements.

11

1.7.5 Web Advertising

Web advertising is the action of promoting your website using online advertising tools,

techniques and methods proven to get the results you are looking for.

It is used simultaneously as online advertising.

Online advertising is basically the action of actively promoting your new business.

“The signposting should give a concise and accurate idea of what they can expect to find when

they get there with that precious click. What happens after that, is another matter. “

Types Of Web Advertising

• Banners

– (static, animated and interactive)

• Interstitial

– (poups and similar pages that interrupt the user)

• Rich Media

– (Advanced technology, incorporating video, audio, animation and photographs)

• Sponsorships, events and corporate sites

• Opt-ins

– (forms, newsletters push technologies)

• Viral marketing and email campaigns

• Spam, and cookies

12

1.8 THE ROLE OF ADVERTISING….

The role the Advertising plan can only be in the context of the Marketing Plan

– The Advertising Plan must support and synergise with:

• the elements of the Marketing Mix

• and other elements of the Communication Mix

Need to understand ‘How Advertising Works’ to appreciate the role it plays

STRATEGY PLANNI NG FOR STRATEGY PLANNI NG FOR ADVERTI SI NGADVERTI SI NG

Target market

ProductPromotion Price

Place

PersonalSelling

Mass Selling

SalesPromotion

Publicity

Advertising

Target audienceKind of

advertising Media types

Indoor

Outdoor

13

1.9 GROWTH OF ADVERTISING IN INDIA:

Advertising as we understand today has its origin in the early historical period. It has

made steady progress over centuries. Its need or importance is growing along with the growth

and expansion of business activities. Many significant changes have taken place during the

process of evolution of advertising. Like other countries, advertising has a long history in

India. However, advertising was officially recognized as a medium of mass communication

only in the 18th century.

The first newspaper “BENGAL GAZETTE” was published in India in 1780. By 1786,

there were four weekly newspapers and monthly magazines published in Calcutta.

Advertising on radio started in India in 1950’s. Advertising on radio proved to be a

powerful medium useful for creating new markets. Commercial Broadcasting has informed

and entertained people for more than 40 years. In 1928, two advertising agencies were started

in India.

The importance of advertising started increasing only after the Second World

War. The Association of Advertising Agencies of India (AAAI) was established in 1945.

The Audit Bureau of Circulation (ABC) was started in 1948. T.V. started in India in

September 1959.

In addition to DD Metro now we also many other channels on television like Zee

T.V., STAR PLUS, COLORS, ETC. cable T.V. and many more such channels for advertising

purpose. Introduction of satellite T.V. has made a revolution in the

advertising field in India. The progress of advertising in terms of quality, creativity and

coverage is extremely fasten India since 1950 due to the introduction of new advertising

media. Ample of scope is available for advertising due to industrial growth.

14

1.10 5 Ms OF ADVERTISING

15

Money

Factors to consider:Stage in PLCMarket share and consumer baseCompetition and clutterAdvertising frequencyProduct substitutability

Message

Message generationMessage evaluation & selectionMessage executionSocial responsibility review

Media

Reach, frequency, impactMajor media typesSpecific media vehiclesMedia timingGeographical media allocation

Measurement

Communication impactSales impact

Mission

Sales goalsAdvertising objectives

5 Ms OF ADVERTISING

5 Ms OF ADVERTISING

While making an Advertising program five Ms should be taken into consideration,

they are:

MISSION: What are the Advertising objectives?

MONEY: How much can be spent? (Advertising budget)

MESSAGE: What message should be sent?

MEDIA: What media should be used?

MEASUREMENT: How should the results is evaluated?

1.11 MEDIA OF ADVERTISING

There are various types of advertising which are mentioned below

· Print Advertising: Newspapers, Magazines, Brochures, Fliers

· Broadcast advertising: Television, Radio and the Internet

· Outdoor Advertising: Billboards, Kiosks, Tradeshows and Events

· Covert Advertising: Advertising in Movies

· Public Service Advertising: Advertising for Social Cause

· Celebrity Advertising

16

CHAPTER 2:- ADVERISING PROCESS

When preparing your search proposal, you should take into account that the “lead-in”

time needed to place an ad can vary anywhere from days to months depending on the

publication. You should plan to have your ad approved and an estimate of the cost done at

least one month prior to the date when you want the ad to be published. The advertising

process for professional staff and faculty positions involves five basic steps:

1. Writing an Ad

2. Getting Approval for the Text of the Ad

3. Estimating the Cost of the Ad

4. Placing Ads & Posting Announcements

5. Paying for Ads

STAGE WORK PERFORMED AT STAGE

Briefing Stage Briefing from the client Internal briefing to the creative and media Any research briefing if required

Creation Stage Ad campaign and media plan development Internal review and finalization Presentation to client and approvals Any pre-testing if required

Production Stage Budget and estimate approvals Production of film, press ads, collaterals Media Scheduling and media booking All release approvals for creative & media

Post Production Stage Material dispatch to media Media release monitoring Any post-testing if required Billing and collection

PROCESS OF ADVERTISING

17

2.1 MARKETING AND PROMOTION PROCESS MODEL

18

Marketing and Promotions Process Model

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Market segmentation

Selectinga target market

Positioningthrough

marketingstrategies

Productdecisions

Pricingdecisions

Channel ofdistributiondecisions

Promotionaldecisions•advertising•directmarketing•internet/interactivemarketing•salespromotion•publicityand publicrelations•personalselling

Resellers

Ultimatecustomer•Consumers•Businesses

Marketing Strategy and Analysis

Target Marketing Process

Marketing Planning Program Development

Promotion to final buyer

Target Market

Purchase

Promotion to trade

19

2.2 ACTIVE PARTICIPANTS IN ADVERTISING

Advertising is a type of collective activity which needs the support and participation of

certain individuals or organizations. They are called active participants in advertising. Such

participants are called:

1) Advertisers

2) Advertising agency

3) Audience

4) Advertising media and finally

5) The government authorities

20

2.2.1 Advertisers:

Advertisers are the individuals/firms/organizations which desire to advertise their

products or services. They support the whole advertising process as they provide finance

by paying the advertising charges. They initiate entire advertising process. It is the

advertiser who takes broad decisions about advertising. He decides the advertising

budget, select the audience, media and agency for the purpose of advertising. He is the

key participant in the entire advertising activity.

2.2.2 Advertising agencies:

An advertiser can implement his advertising plan directly through his own sales or

advertising department or may transfer the entire responsibility of advertising to a

specialized professional agency called advertising agency. These agencies provide

expert services to their clients that is advertisers. They prepare advertising plan and

execute them the same on behalf of their client. An advertiser can transfer his

botheration about advertising to such advertising agency. Such agencies charge

commission of 15% from media owners on the media bills. Such agencies offer benefit

of their skills and experience to their clients. HTA, Lintas mudra, Everest, O and M are

some leading advertising agencies operating in India.

21

2.2.3 Audience:

Advertising is for giving message about goods or services to readers, viewers or

listeners. They constitute the audience. It is for their information and guidance that

advertisements are given. An advertiser desires to cover his target audience/market for

promoting sales. Efforts are also made to make advertisements attractive and agreeable

to the audience. Moreover, waste in advertising is possible when the advertising

message is not received or accepted by audience.

2.2.4 Advertising Media :

Advertising media act as a connecting link between the advertiser and the audience.

The media act as a channel of communication for giving message to two or more media

for advertising purpose. Newspaper, magazine, radio and T.V. are some popular

advertising media and are used extensively by advertisers. In India T.V. advertising is

popular but is

equally costly. The advertising agency guides their clients in the selection of convenient

advertising media that is media planning.

2.2.5 Government Authorities:

Government authorities act as a one important participant in the advertising field.

Government acts as a supervisory authority in the field of advertising. It makes rules and

regulations as regards that use of media for advertising purpose. Some advertising media

such as radio and T.V. operate directly under the control of central government.

22

2.3 IMPACT OF ADVERTISING

Advertising plays an important role in today’s competitive business world. It provides

benefits to Manufacturers, Retailers, Customers, Salesman and Society as well.

2.3.1 Introduces a New Product:

Advertising is used to introduce a new product in the market. It helps to compete with

establish brands and, thereby, ensures the survival and success of new product.

2.3.2 Creates Demand for Product:

Advertising creates demand for the product. Advertising spread information about the

product or services and makes consumers aware about it through various mass media which

makes positive effect on the mind of the people and create demand for the product.

2.3.3 Expand Market:

It helps in expanding local markets, to national level and even to international level.

Trading at national and international level is impossible without advertising

2.3.4 Assists Personal Selling:

Advertising reaches a prospect before a salesman could. The prospect is well informed

through advertising. Makes the salesman’s job easier.

23

2.3.5 Building Brand Image:

The purpose of repeat advertisings is to make people more brands conscious. Once

good brand image is developed, buyers generally become brand loyal. Money spent on

advertising is a long term investment to build brand and company image.

2.3.6 Reduces the cost of goods:

Advertising generates more demand, which leads to large scale production and

distribution. This results in economies in large scale which in turn reduces cost of goods.

2.3.7 Persuades prospects:

Every competitor makes superior claims of his product. Therefore, a prospect needs

to persuade to buy products. So, the role of Advertising is not only to inform but also to

persuade.

2.3.8 Employment:

Advertising provides employment in the field of advertising to copywriters, models, etc. It

provides indirect employment in society due to large scale production and distribution.

24

CHAPTER 3:- ROLE OF ADVERTISING IN MARKETINGMIX.

Marketing mix refers to advertising combination of four elements of marketing useful

for large-scale marketing. Such elements are: Production, Price, Place, and Promotion (4 Ps).

According to W.J. Stanton “Marketing mix is the term used to describe the

combination of the four inputs which constitute the core of advertising company’s marketing

system: the product, the price structure, the promotional activities and the distribution system”

3.1Advertising and elements of marketing mix:

3.1.1 Advertising and product:

Product is the core element in the marketing mix. The market demand finally depends

on the popularity and utility of the product. Popularity again depends on the Quality,

benefits and uses of the product. It is necessary to give publicity to physical and other

features of the product. Such information needs to be communicated to the prospects

through advertising.

3.1.2 Advertising and price:

Buyers are always sensitive about the market price. They shift from one product to

the other due to quality or price. Price charged should be reasonable. This is necessary

for the support and co-operation of consumers.

25

3.1.3 Advertising and Place:

Place relates to physical distribution which is possible through various channels of

distribution. Advertiser has to decide whether to adopt direct or indirect channels of also

useful for large-scale distribution. Advertising plays a crucial role to ensure smooth

distribution of goods and keep the consumers well-informed.

3.1.4 Advertising and Promotion:

Promotion is perhaps the most important element in the marketing mix. Companies

introduce sales promotion campaigns for capturing market. Price discounts and schemes

like buy one, get one free are also offered as sales promotion. Various sales promotion

techniques are introduced at the consumer and dealer levels. Window display, provision

of after sales services and coordinal public relations also facilitate sales promotion.

Massive advertising is useful to support the sales promotion campaigns.

26

CHAPTER 4:- MEDIAS/MEDIUM OF ADVERTISING

4.1 Newspapers:

Newspapers are one of the traditional mediums used by businesses, both big and

small alike, to advertise their businesses.

Newspaper brings 'immediacy' to a communication. Newspapers also have the

authority of the written word, and are good at presenting detail. As a print medium, the

national press suffers from clutter and from the fact that the reader can and does edit

ruthlessly to avoid advertising.

Advantages

Allows you to reach a huge number of people in a given geographic area

You have the flexibility in deciding the ad size and placement within the newspaper

Your ad can be as large as necessary to communicate as much of a story as you care to

tell

Exposure to your ad is not limited; readers can go back to your message again and

again if so desired.

Free help in creating and producing ad copy is usually available

Quick turn-around helps your ad reflect the changing market conditions. The ad you

decide to run today can be in your customers' hands in one to two days.

27

Disadvantages

Ad space can be expensive

Your ad has to compete against the clutter of other advertisers, including the giants ads

run by supermarkets and department stores as well as the ads of your competitors

Poor photo reproduction limits creativity

Newspapers are a price-oriented medium; most ads are for sales

Expect your ad to have a short shelf life, as newspapers are usually read once and then

discarded.

You may be paying to send your message to a lot of people who will probably never be

in the market to buy from you.

Newspapers are a highly visible medium, so your competitors can quickly react to your

prices

With the increasing popularity of the Internet, newspapers face declining readership

and market penetration. A growing number of readers now skip the print version of the

newspaper (and hence the print ads) and instead read the online version of the

publication.

28

4.2 Television:

TV has traditionally been the most powerful and popular advertising

medium for people in the media business. This is mainly because it does most things

well - coverage, frequency, image, persuasion, demonstration, impact etc. Traditionally

a high-cost medium, the downside with TV is that the audience is now fragmented

across many different channels, production costs are extremely high and viewers are

increasingly avoiding ad breaks.

Advantages

Television permits you to reach large numbers of people on a national or regional level

in a short period of time

Independent stations and cable offer new opportunities to pinpoint local audiences

Television being an image-building and visual medium, it offers the ability to convey

your message with sight, sound and motion

Disadvantages

Message is temporary, and may require multiple exposure for the ad to rise above the

clutter

Ads on network affiliates are concentrated in local news broadcasts and station breaks

Preferred ad times are often sold out far in advance

29

Limited length of exposure, as most ads are only thirty seconds long or less, which

limits the amount of information you can communicate

Relatively expensive in terms of creative, production and airtime costs

4.3 Direct Mail:

Direct mail, often called direct marketing or direct response marketing, is a marketing

technique in which the seller sends marketing messages directly to the buyer. Direct

mail includes catalogs or other product literature with ordering opportunities; sales

letters; and sales letters with brochures.

Advantages

Your advertising message is targeted to those most likely to buy your product or

service.

Marketing message can be personalized, thus helping increase positive response.

Your message can be as long as is necessary to fully tell your story.

Effectiveness of response to the campaign can be easily measured.

You have total control over the presentation of your advertising message.

Your ad campaign is hidden from your competitors until it's too late for them to react

Active involvement - the act of opening the mail and reading it -- can be elicited from

the target market.

Disadvantages

Some people do not like receiving offers in their mail, and throw them immediately

without even opening the mail.

Resources need to be allocated in the maintenance of lists, as the success of this kind

of promotional campaign depends on the quality of your mailing list.

Long lead times are required for creative printing and mailing

30

Producing direct mail materials entail the expense of using various professionals -

copywriter, artists, photographers, printers, etc.

Can be expensive, depending on your target market, quality of your list and size of the

campaign.

4.4 Radio:

Advantages

Radio is a universal medium enjoyed by people at one time or another during the day,

at home, at work, and even in the car.

The vast array of radio program formats offers to efficiently target your advertising

dollars to narrowly defined segments of consumers most likely to respond to your

offer.

Gives your business personality through the creation of campaigns using sounds and

voices

Free creative help is often available

Rates can generally be negotiated

During the past ten years, radio rates have seen less inflation than those for other media

Disadvantages

Because radio listeners are spread over many stations, you may have to advertise

simultaneously on several stations to reach your target audience

Listeners cannot go back to your ads to go over important points

31

Ads are an interruption in the entertainment. Because of this, a radio ad may require

multiple exposure to break through the listener's "tune-out" factor and ensure message

retention

Radio is a background medium. Most listeners are doing something else while

listening, which means that your ad has to work hard to get their attention

4.5 Magazines:

Magazines are a more focused, albeit more expensive, alternative to newspaper

advertising. This medium allows you to reach highly targeted audiences. Magazines are

useful to advertisers because of the relationship they have with the readers, who

consume them in a personal way. They allow targeting by lifestyle and interest group. In

many magazines the ads are seen as part of the magazine experience.

Weaknesses of magazines include the fact that lead times can be very long depending

on the title's frequency of publication, the high levels of clutter, and the reader's

inclination to simply turn the page.

Advantages

Allows for better targeting of audience, as you can choose magazine publications that

cater to your specific audience or whose editorial content specializes in topics of

interest to your audience.

High reader involvement means that more attention will be paid to your advertisement

Better quality paper permits better color reproduction and full-color ads

The smaller page (generally 8 ½ by 11 inches) permits even small ads to stand out

32

Disadvantages

Long lead times mean that you have to make plans weeks or months in advance

The slower lead time heightens the risk of your ad getting overtaken by events

There is limited flexibility in terms of ad placement and format.

Space and ad layout costs are higher

4.6 Outdoor:

The strength of outdoor advertising lies in its ability to suddenly confront the consumer

with an idea or a challenge, in a very public way. Like radio, posters also operate

within time which people think of as free - typically travelling time.

The weaknesses of outdoor advertising mainly stem from three issues: it has no

editorial context, it uses extremely simple, striking ideas to be effective, and it suffers

from relatively expensive production.

As the name sounds, it is the advertising in open-air. In the past, much of the outdoor

advertising consisted of hoardings, posters, billboards and signboards. Now there are

innovations taking place every month. Today we have a range of media available e.g.

transit advertising, mobile bill boards, traffic signals, bus stops, railway stations,

airport, subways, phone boxes, coffee tables, traffic barriers, blimp and inflatable,

packaging materials, cups, corporate stationary, etc.

There are a number of outdoor advertising choices available. Eateries and hotels

commonly make use of highway billboards to steer customers in for a rest or a bite.

The automobile and tourism industries account for a very large percentage of billboard

33

revenue. Bus benches often feature outdoor advertising for local businesses, while bus

shelters might display a major movie promotion. Beverage companies commonly make

use of sporting events and arenas, among other venues, while taxicabs, buses, railways,

subways and wall murals offer other forms of outdoor advertising.

4.7Yellow Page:

There are several forms of Yellow Pages that you can use to promote and advertise

your business. Aside from the traditional Yellow Pages supplied by phone companies,

you can also check out specialized directories targeted to specific markets (e.g. Hispanic

Yellow Pages, Blacks, etc.); interactive or consumer search databases; Audiotex or

talking yellow pages; Internet directories containing national, local and regional listings;

and other services classified as Yellow Pages.

Advantages

Wide availability, as mostly everyone uses the Yellow Pages

Non-intrusive

Action-oriented, as the audience is actually looking for the ads

Ads are reasonably inexpensive

Responses are easily tracked and measured

Frequency

Disadvantages

34

Pages can look cluttered, and your ad can easily get lost in the clutter

Your ad is placed together with all your competitors

Limited creativity in the ads, given the need to follow a pre-determined format

Ads slow to reflect market

4.8 Telemarketing:

Telephone sales, or telemarketing, are an effective system for introducing a company

to a prospect and setting up appointments.

Advantages

It's easy to prospect and find the right person to talk to.

It's cost-effective compared to direct sales.

Results are highly measurable.

You can get a lot of information across if your script is properly structured.

If outsourcing, set-up cost is minimal

Increased efficiency since you can reach many more prospects by phone than you can

with in-person sales calls.

Great tool to improve relationship and maintain contact with existing customers, as

well as to introduce new products to them

Makes it easy to expand sales territory as the phone allows you to call local, national

and even global prospects.

Disadvantages

An increasing number of people have become averse to telemarketing.

35

More people are using technology to screen out unwanted callers, particularly

telemarketers

Government is implementing tougher measures to curb unscrupulous telemarketers

Lots of businesses use telemarketing.

If hiring an outside firm to do telemarketing, there is lesser control in the process given

that the people doing the calls are not your employees

It can be extremely expensive, particularly if the telemarketing is outsourced to an

outside firm

It is most appropriate for high-ticket retail items or professional services.

4.9 Specialty Advertising:

This kind of advertising entails the use of imprinted, useful, or decorative products

called advertising specialties, such as key chains, computer mouse, mugs, etc. These

articles are distributed for free; recipients need not purchase or make a contribution to

receive these items.

Advantages

Flexibility of use

High selectivity factor as these items can be distributed only to the target market.

If done well, target audience may decide to keep the items, hence promoting long

retention and constant exposure

Availability of wide range of inexpensive items that can be purchased at a low price.

They can create instant awareness.

They can generate goodwill in receiver

36

The items can be used to supplement other promotional efforts and media (e.g.

distributed during trade shows).

Disadvantages

Targeting your market is difficult.

This can be an inappropriate medium for some businesses.

It is difficult to find items that are appropriate for certain businesses

Longer lead time in developing the message and promotional product

4.10 Profile Of Major Advertising Mediums

MEDIUM ADVANTAGES LIMITATIONS

Newspapers Flexibility; timeliness; good local market

coverage; broad acceptance; high

believability.

Short life; poor reproduction

quality; small pass along audience.

Television Combines sight, sound and motion;

appealing to the senses; high attention;

high reach.

High absolute cost, high clutter,

fleeting exposure, less audience

selectivity

Direct mail Audience selectivity, flexibility, no ad

competition within the same medium,

personalization.

Relatively high cost, junk mail

image.

Radio Mass use, high geographical and

demographic selectivity; low cost.

Audio presentation only; lower

attention than television; non

standardized rate structure; fleeting

37

exposure.

Magazines High geographical and demographic

selectivity; credibility and prestige; high

quality reproduction, long life; good pass-

along readership.

Long ad purchase lead time; some

waste circulation; no guarantee of

position.

Outdoor Flexibility; high repeat exposure; low

cost; low competition.

Limited audience selectivity;

creative limitation.

Brouchers Flexibility; full control; can dramatize

message.

Overproduction could lead to run

away costs.

38

4.11 Where does advertising objectives fall in the marketing plan

39

Advertising in the Marketing Plan: The Company’s overall marketing plan determines promotional objectives and from these objectives, advertising objectives are derived. Promotion objectives specify what is to be accomplished and where advertising fits in. The next step is to set specific ad objectives and goals.

Advertising in the Marketing Plan: The Company’s overall marketing plan determines promotional objectives and from these objectives, advertising objectives are derived. Promotion objectives specify what is to be accomplished and where advertising fits in. The next step is to set specific ad objectives and goals.

Market AnalysisMarket Analysis Consumer AnalysisConsumer Analysis Competitive AnalysisCompetitive Analysis BrandBrand Organizational RealitiesOrganizational Realities

Marketing Plan

Marketing ObjectivesSales Objectives

Marketing Plan

Marketing ObjectivesSales Objectives

Advertising ObjectivesAdvertising Objectives

Advertising StrategyAdvertising Strategy

Advertising TacticsPromotions

Advertising TacticsPromotions

Media StrategyMedia StrategyCreative StrategyCreative Strategy

CHAPTER 5:- ADVERTISING AGENCY

5.1 Organization Structure

The activities within an advertising agency are typically divided into 4 broad groups:

account management, the creative department, media buying, and research. These

divisions are usually physically separated, although all four areas work closely together to

produce an advertising campaign in its entirety.

Account managers usually have daily interaction with a counterpart at the client's

office and coordinate the activities of the other departments according to the client's wishes.

The creative department designs original themes or concepts for ads, while the media

department places finished ads within the media in which they will receive the most exposure

to a target audience. The research department provides data about consumers to help the

agency and the client make informed advertising decisions.

Recently added to advertising agencies' roster of services are public relations, direct

marketing, and promotional services. Other activities that used to be completed by outside

vendors, such as photography and high-tech print work, have been brought in-house in many

agencies.

40

5.2 ORGANIZATION CHART

Board of Directors

Managing Director

Client Services Director Creative Director

Servicing Group

Media

Research

Creative Groups

Audio Visual

Language

Studio

Production

Finance / Accounts

Branches

Secretarial / Legal Personnel

41

CHAPTER 6:-CASE STUDY

6.1 CASE STUDY OF 2 PRODUCT GROUPS

6.1.1 ADVERTISING BY CADBURY AND AIRTEL:

As we all know CADBURY and AIRTEL are two different companies for two

entirely different product groups, in the market. Cadbury is the FMCG Company whereas

Airtel is a leading company in the field of telecommunication. Both these companies are

different from each other, as both are from entirely different background and manufacture,

distribute and sell entirely different products from each other, the purpose behind selecting

both these companies in the project of advertising is that both are leading brands, their

products are sell all around the world, successful products, and a goodwill, these all reasons

are equally important for success of both these companies, and all this is only possible as both

these companies are best in marketing their products in proper and a different manner through

advertising. Advertising is one of the essential tool of these companies to set a place for their

products in the minds of all the people.

42

6.1.2 LOGOS OF CADBURY AND AIRTEL

CADBURY AND AIRTEL ARE THE TWO COMPANIES WHICH

STOOD IN TOP 5 RANKING OF THE BEST ADVERTISEMENTS TELECASTED

ON TELEVISION

The consumers are quite impressed by both these companies, because of their different way of

marketing and advertising. Social advertising, besides FMCG and telecom companies, beat the

slowdown blues to emerge as the country’s top television advertising categories in the first

two months of 2009, as per data collated by media tracking firm TAM AdEx. Among

individual firms, Hindustan Unilever, Reckitt Benckiser, GlaxoSmithKline, Bharti Airtel and

Cadbury were the top five advertisers by volumes (seconds spent advertising) on TV.

43

6.1.3 CADBURY INDIA:

Cadbury is an FMCG Company that is the fast moving consumable goods company, it

gives strong competition to all the companies which sell eatable items and mostly chocolates

and one among those competitors is Nestle and Amul which also sells chocolates and some

other eatable items. Cadbury is ahead from both these companies when advertising is

considered, because of which most of its products are a hit in the market among the

consumers, but the consumers delight is the Dairy Milk chocolate.

Dairy Milk chocolate is the favourite of the consumers among all the other chocolates

available in the market. Other than this some more products of Cadbury are Perk, 5 Star,

Bournvita, Fruit and Nut, Celebrations.

Cadbury is one company which sells its products and promotes and advertise them as

per the demand and liking of the product in the minds of the people and in the market. It

considers all the situations, seasons, likings, behavior of the people to advertise its products.

The most important thing which we see in the ads of Cadbury is the theme and the emotion. In

the advertisement of Cadbury dairy milk the theme is to have something sweet whenever it is

the time of happiness of celebration, so to have dairy milk to celebrate it, may be when India

wins a cricket match or when anybody passes in exam in this the tagline was “pappu pass ho

gaya”, or when it is the day of salary.

Currently the tagline is “kuchh meetha ho jaye”

44

Whenever we see an ad commercial of Cadbury on television we feel like having a

Cadbury dairy milk chocolate at that time, this is the impact of the advertisements of Cadbury.

These ads are totally different from other chocolate companies ads and always have a logic or

theme behind it for having something sweet which attracts the customers a lot.

6.1.4 AIRTEL:

AIRTEL as we all know is a well known and a well established company in the field of

telecommunication. It sells sim cards in the market and give tough competition in the market

to companies such as BSNL, VODAFONE, RELIANCE, etc. Airtel is having a stable and

good place in the market, it is all because of its marketing strategies and different way of

promoting its product. The advertisements of Airtel are very well planned and are different as

compare to the advertisements of other companies sim cards. People are able to relate with

these advertisements, mostly having R.Madhavan and Vidya Balan in them, people loved the

ads of airtel in which both these stars acted as they really share a superb chemistry in these

advertisements which appealed and impacted a lot on the consumers and it created a strong

and a positive impact in the minds of the consumers.

45

6.2 VODAFONE

The advertisement should be attractive enough and should leave a positive and a

good impact in minds of the people. One of the examples of such advertisement is of

VODAFONE which really advertise its brand in a different manner which appeals the overall

society and which also impacts a lot on all the people.

46

6.2.1 ADVERTISEMENT OF VODAFONE

This advertisement of Vodafone was specially created only for telecasting during the

IPL season and for the T20 world cup, these types of 36 advertisements were created and

people loved these advertisements a lot, this ad really created a lot of positive impact in minds

of all group of consumers, today also people like recalling these advertisements as it was a

piece of creativity and something different in the world of advertisements seen till today by all

the consumers.

47

CHAPTER 7:- OVERALL IMPACT OF ADVERTISING:

The advertising is one thing which impacts all, the society on a whole, and the society

includes all children, youngsters, adults and even old aged people. The overall impact of

advertising can be positive for some people and some consider only the negative aspect of the

advertisement, it depends from person to person, every person thinks differently for every

other advertisement some ads may appeal to some people and some may not appeal to those

people, it depends on their perception and thinking about a particular product.

The advertisement of a product should be such which appeals all from child to a adult

including the youngsters, may be the target audience be different for different products but no

one should feel inferior after seeing the advertisement or it should not highlight the negative

aspect of any group of persons, this also plays important role in brand building of a particular

product, success of the product and the image of the company.

48

CHAPTER 8:- FINDING AND SOLUTION

8.1 FINDING:

8.1.1 Costly Functions:

The strong objection and arguments against the advertising is that it is a costly

function. It is generally criticized that the cost of advertising to too high and that such high

cost is covered by the selling price of the advertising goods. Advertisement is considered as an

indirect cost which is added in the distribution expenses. When expenses are to be increased,

the selling price of the products will also be enhanced. It is true factor because large

advertisers spend thousand of Rupees for advertising in a week. In one study it is found that

advertising cost exceeded 6% of sales. It means that consumers will have to pay higher prices

of the advertised products. But if the goods were not advertised the cost of advertisement

cannot become burden on the consumer. Thus the unbalanced advertising may cause certain

goods to cost the consumers more than they should. So it is regarded as an economic waste.

8.1.2 Encourage monopoly

Advertisement restricts the competition among the products. Big industrialists and

manufacturers may exercise their monopolistic control over the market with the help of

advertisement technique which is always against the public interest.

49

8.1.3 High prices

It is undoubtedly true that effective advertising increase the sales volume. This

increased sale will require more products. Thus the large scale production brings down the

cost of goods per unit due to economies in various sectors which reduces the consumes selling

prices. But the producers do not lower the prices and the burden of advertising remains on the

shoulders of consumers.

8.1.4 Disconnection of business

Small firms cannot properly advertise their products due to limited resources. But on

the other side entire market is controlled over by great advertisers. It becomes impossible for

small firms to continue their business in the business field so small firms disappear form the

market.

8.1.5 Influences purchasing power

Advertising goods are generally available in the market at high prices which influence

the purchasing power of the consumers. So some people use foul means to increase their

income for the purpose of meeting their necessities of life. Thus unnecessary advertising

creates the corruption in the society.

50

8.1.6 Buying problems

There are numerous similar types of products which are advertised in the market. But

producers lay great emphasis on minor differences in the formula or technique of advertised

goods. For example there are many brands of advertised Shaving Creams which perform the

same function. But is has become impossible for the average buyer to judge with any certainly

the quality of the hundreds of articles he buys.

8.1.7 Miscellaneous objection

o Inferior quality of goods are introduced in the market to deceive the consumers.

o The new firm having limited resources cannot compete with a already established

big firms, with the help of advertising.

o A large firm can divert demand from one product to another with the help of

advertisement.

o Consumer’s choice is greatly injured by the advertisement.

o As advertising is a comparatively new art so certain media of advertisement is

ineffective and inefficient than it could be.

51

8.2 SOLUTION

8.2.1 WHAT IS THE PERFECT ADVERTISING NEEDED?

After doing the study on advertising, I think that the perfect advertising is the

advertising which should atleast contains the following things after planning and doing

research on the customer preference:-

8.2.1.1 Jingle and signature tune: -

Jingles are like a song therefore it is more likeable by Indians. It is easy to remember

the product which has jingle in its advertising and it sounds nice. Most of advertisings that

have signature tunes are successful in the market so it is useful. And also signature tunes are

now used as a ring tones which makes other people also aware about the product. (Jingle-

Cadbury and signature tune-Airtel)

8.2.1.2 Use different modes of advertising: -

Using different modes of advertising makes chances of aware of products in a large

scale. Modes like online, TV serials and show, billboards, standard newspaper, magazines,

word of mouth, etc give a desired publicity to a product. More use of modes may increase

initial cost but it gives good return to new product.

8.2.1.3 Location:-

If advertising has to be made within the home than its condition should well enough

because its reflect the company image. Its environment should look comfortable. If the

advertising has to shoots at outdoor then city or foreign frames is a good option because it

gives advertising a rich business culture and in many country it is cheap to do advertising

because of tax break (Bangkok, Prague, Dubai, etc).

52

8.2.1.4 Advertising in sports:-

The FIFA and the Cricket are the medium through which the millions of people are

connected to the advertising. The advertising shown at the time of India and Australia match

has a same effect as the advertising shown during FIFA. In India cricket is much liked as

compared to other sports so it is to be used for promotion. (Ford fiesta-MOM, Nike, etc.)

8.2.1.5 Brand ambassador:-

Shahrukh, Amitabh, Aishwarya, Aamir, Sachin, Dravid, Sania, Dhoni and John are the

brand ambassadors who are popular and make the product sale through their advertising. The

personality other than this had not make good effect on their own. The survey by TAM Media

says that this above mentioned personality has a good effect not only on men but also on

women and kids. In the Promo Survey 2006, which analysed buying behaviour, said 52% of

respondents or consumers think that celebrities make brands popular. 40% changed their

buying behaviour based on the celebrity endorsement. 52% customers believe that a brand

should always have a brand ambassador.

8.2.1.6 Innovation in advertising:-

Advertising should also be published through innovative media like outdoor campaign,

advertisings in the serials and show (Kit Kat), use of that product in a movie (Virudh-Calcium

Sandoz, Bournvita-Koi mil gaya, Motorola-Don, etc), streets play (Airtel), give advertising on

the another product (‘rang de basanti’ printed on the coke bottles), advertise through SMS or

Free Promos, neon, etc because it attract the target people at cheaper cost.

53

8.2.1.7 Different advertising for rural areas:-

Rural people are more attentive towards the advertisings which are non-traditional. The

word of mouth particularly by the main person in that particular area is one of the best

methods in rural areas. Many company had use different strategies for expanding their market

in rural (Mortein, Asian paints, Fevicol, Cadbury, etc)

8.2.1.8 Animation or icon:-

Animation in advertisings has given a positive response to an advertising industry.

Many advertising with an animation character or icon are known on the basis of animation

character or icon (Eveready- ‘billi chaap’, Energizer-‘bunny’, Scrat in Horlicks etc.)

8.2.1.9 Colour theme:-

A particular colour should be used as a theme for the product so that whenever a

person see that colour he get a click in his mind about the product feature (scooty - pink, bike-

black fear, etc.).

8.2.1.10 Different advertisings for different regions:-

The advertising shown in south and west should be with their culture and with rocking

sound, whereas the advertising in north and east should be of soft theme. In south their local

hero should be used and in north and west bollywood star should be used and in east

tellywood star should be taken.

54

CHAPTER 8:- CONCLUSION

In todays competitive and a globalised economy the need and importance of

advertising is increasing day by day, as the development in all fields is taking place rapidly.

Advertising is really a very interesting and a very important topic related to marketing as

marketing depends a lot on advertising. Advertising helps the advertiser to communicate the

message to the consumer in a proper manner. Everyone needs advertising for promoting its

products or services in this competitive market. Advertising acts a tool for the companies to

inform the consumers about the latest product in the market and also to give reminder to the

consumers for already existing products in the market. Advertising is useful for both the

advertiser and the consumer, as the companies boost their sales through it and consumer get

the knowledge of the product or service in the market. Advertising has really changed from

past to present, today advertising is done in a totally different and in an extra ordinary manner

from the previous years, its appeal and impact is more as compare to past, this is because of

globalization and development and in future we may see more different type of advertising as

compare to today’s advertising.

55

In todays India which is fast moving & dynamic, people’s wants, need and desires are

changing; it’s very important to know them and give them what they want. This is the main

objective of advertising where ad agency plays major role in market research, making of

creative, launching it in the market, taking the feedback of consumer and making any product

famous and acceptable among consumers. Ad agencies are playing an important role in

shaping present and future of not just selected brand but of entire company.

There is no one -- sure-fire -- best way to advertise your product or service. It is

important to explore the various advertising media and select those which will most

effectively convey your message to your customers in a cost-efficient manner. Always

remember, advertising is an investment in the future of your business.

56

Bibliography & Webliograpy

Books

ADVERTISING MANAGEMENT Concepts and Cases

by Manendra Mohan

Advertising Management

by B. S. Rathor

OGILVY ON ADVERTISING

by David Ogilvy

4 Ps Business & Marketing

Economic Times

Websites

www.magindia.com

www.google.com

www.agencyfaqs.com

www.adage.com

http://en.wikipedia.org/wiki

www.aaaindia.org

57