Professional Documents
Culture Documents
ADVERTISING – AN OVERVIEW
Advertising is
• Paid for
• A way of promoting products, services or
information
• A form of communication (between manufacturer
and consumer)
• A physical commodity
• An integral part of pop culture
• An important economic force
• A part of our urban landscape
WHAT IS ADVERTISING?
Definition
The history of advertising dates back to the early days of human civilization.
The evolution or growth of advertising can be briefly stated as follows:
KINDS OF ADVERTISING
CLASSIFICATION OF ADVERTISING
such regions. The media used are regional television and radio
networks, regional magazines, newspapers and also outdoor media in
a particular-region.
Television advertising with its voice, vision, music and motion effects
can create a good impact on the minds of the target audience. Radio
advertising also can create a good impact, especially, in the rural areas,
where some of the people may not afford to buy the television sets.
• There are advertisers who run a couple of ads in a year, and there
are others who may run thousands of advertising messages, in a year.
• There are advertisers who undertake only product advertising,
and there are others who undertake corporate advertising as well.
• The advertisers may advertise throughout the country or they may
advertise in a particular region or local area.
• Some advertisers may make use of a number of media, whereas,
others may use only the local media such as newspapers, outdoor
advertising.
Among all the marketing mix elements, advertising is probably the most
critical link between the marketer and the consumer in today’s world. Often
it is through advertising that the marketer communicates to, and reaches the
consumer even before the consumer has set sight on a product in the
market. Its ability to transform products into brands in consumer’s minds is
vital for creating and sustaining a relationship between them
ROLE OF ADVERSTISING
Positioning
Marketing Advertising
Brand
Deliver Promise
Consumer
Good, effective advertising is almost a necessary condition for any
marketing effort to succeed in today’s competitive world and that is what
makes advertising a double-edged sword. If used properly, it ahs a capability
to cut the competition to pieces. If not it can bleed the company badly, even to
death. After all a double edge sword needs careful handling. A lack of clarity
in which direction it needs to be wielded can lead to self inflicted cuts and
wounds.
The same is true with advertising. A good understanding of the
marketing and branding principle is a must. What role advertising is supposed
to play in the marketing game plan should be clearly defined. Clarity in
knowing what advertising is supposed to achieve, and within what marketing
and brand parameters, will give a proper direction to the entire advertising
planning and development process.
ADVERTISING PLANNING FRAME WORK
Marketing Objective,
Marketing Plan
Strategy and Mix.
Role of Advertising
Media
Strategy
Marketing
Objective Media
mix
Advertising
Marketing Role of
objectives
Strategy Advert-
ising Creative
Strategy
Advertising
Strategy
Creative
mix
Segmentation
Only when it is clearly known who you are talking to and in what
context can u develop a meaningful advertising strategy of what u you are
going to say and how.
2. Advertising and Price: The price is the exchange value of the product.
A marketer may bring out a very high quality product with additional
features as compared to competitors. In such a case, price would be
definitely high. But buyers may not be willing to pay a high price would
be definitely high. But buyers may not be willing to pay a high price.
Here comes advertising. Advertising can convince buyers regarding the
superiority of the brand and thus its value for money. This can be done
by associating the product with prestigious people, situations, or
events. Alternatively when a firm offers a low price products the job of
advertising needs to stress the price advantage by using hard hitting
copy. It is not just enough to convince, but it is desirable to persuade
the buyer. Thus advertising plays the role of conviction and
persuasion.
Thus, marketer can inform, educate and persuade the present and
potential prospects to use the product so advertised by him. Creative
ads can effectively mould customer behaviour towards the buying of a
particular brand. Effective advertising can generate repeat orders from
the existing buyer, and new orders from non-users and users of
competing brands.
audience are made aware of social problem that are forced by the
society such a s child marriages, dowry evils, smoking effects, noise
pollution, etc.through public service advertisements.
WASTE IN ADVERTISING
advertising when they feel that more money is spent on advertising than what
is actually needed.
The waste in advertising may be due to any or many of the following causes:-
1. Poor Planning: The advertiser may not obtain proper response from the
audience, if he plans his advertising in a poor way. For instance, the
frequency of ads may be inadequate to bring about a desired response
from the audience, or the funds allotted to a particular media may not be
sufficient. At times, an advertiser may advertise more in one place and
neglect the other market area where advertising is in fact required. Such
poor decisions on the part of the advertiser will result, in waste in
advertising.
2. Wrong Targeting: The advertiser may direct the product to the wrong
target audience. The marketer or advertiser may not be able to locate
properly the markets for his product. For example, the advertiser of a soft
drink may target older generation in India. Such targeting may not work
well in a country like India where older generation are wise enough not to
get influenced by soft drink ads.
7. Poor Quality of Ads: The ads may be poorly drafted. The model or the
personality selected may have nothing with the brand, or the character of
the personality may not match with the character of the brand. For
example, if a marketer of luxury car selects a popular Hindi film
personality, then it will lead to waste as the prospective buyers of luxury
car may not influenced by a Hindi film personality. Again, the choice of
words used in the advertisement may not be proper, and the audience
may get irritated or insulted by such ads. Therefore, the advertiser
should be selective in using the right words, and selecting the right
models or personalities to endorse the brand.
9. Wrong Time: The advertiser may select wrong time to advertise the
brand. For example, one cannot advertise for products liked by children
at late hours in the night. Again, if the product is of seasonal nature such
as umbrellas, then the advertising must be undertaken at the onset of
such season.
The above mentioned causes are some of the reasons as to why there is
waste in advertising. This can be avoided provided there is a systematic
planning of advertising and the conditions must be conducive to the use
of advertising. Again there should be proper pre-testing of ads before
they are run over a large market area. The advertiser may also go for
post-testing of ad campaign to correct mistakes, if any. Finally, there
should be proper control over the advertising budget.
ETHICS IN ADVERTISING
Ethics is a branch of social science that deals with moral principles and
values. It differentiates what is good and what is bad. What is good should be
followed and what is bad should be discarded or avoided.
• Advertising to children,
offensive, double meaning tone of the ads and also the truth should not be
stretched too far. When making a claim about the product one should not
malign competitors' product, when your product is basically the same as that
of the competitors.
ADVERTISING AGENCY
Period of wholesaling:
In about 1865 George P.Rowell started a different system of selling space.
He contracted with 100 newspapers to buy one column of space a month.
He purchased space, in lots at inside rates and sold it at higher rates in
small units to individual advertisers. He not only received his normal
commission but also made good money due to discounts on wholesaling
rates offered to him by the publishers.
Period of creative Services:
In the last decade of 19th centaury there was so much competition among
the various advertising agencies to sell space, which resulted in cutting of
T.Y.BMS NAGINDAS KHANDWALA
COLLEGE
ADVERTISING 30
rates by the various agencies. At the same time some of the publishers
started their own sales departments to sell space directly to the
advertisers. This resulted in loss to the agencies and some of the agencies
had to close down their offices. Others in order to face difficult times, hired
copywriters and artists to handle the art work and copy for the clients and
since the advertisers were offered free creative services they once again
relied on the advertising agencies. N.W.Ayer was the first person to offer
such services.
Selecting the right type of advertising agency is a very difficult choice the
advertiser should make a list of all possible agencies that can serve his
purpose and the agency best qualified to provide the required and
effective services is selected. Some advertisers may select more than one
agency to handle separately its various product lines. Following are the
factors that should be considered while selecting an advertising agency:
7. Other Accounts: The advertiser should also find out the other
accounts that are handled by the agency. In no case, the advertiser
must select that agency which handles competitor's advertising,
because there will always be suspicion of getting poor facilities and
second hand treatment and it will be wise to discard the choice of such
agency.
A functional head that has the experience and skills is positioned in each of
the areas, like Account Management, Creative, Media and Research. In
some agencies they do not have a Research Department and they hire the
services of outside research organizations like ORG MARG in India.
Advertising agency work starts with a brief form the client to their Account
Executive. The brief constitutes of the following points:
The Account Executive (AE), works as a close link between the agency and
its client. He represents the client at the agency and ensures that the agency
works within the framework of clients brief and in the allotted time. The word
DEADLINE is perhaps the most used word in any agency – as it has to meet
the target date of releasing the ad campaign to the media after its acceptance
by the client. The AR arranges the agency resources, creative, media
budgetary to get the best campaign for the client. AE puts across agency’s
plans and the campaign to the client to get their approval. It is more of a
sandwich kind of a role, yet it is very satisfying once the campaigns planned
are executed and bring desired results.
Creative Director
They focus on the suitability of the chosen market segment/s. For this
purpose either they have a research unit of their own or they hire outside
agency for gathering information. Some agencies have Research Directors to
head the department.
Media Department is headed by the Media Director where the media research
is conducted to find which would be the right media for the campaign. They
plan the media, frequency for advertising, its cost and coverage. They are
responsible for purchasing media space for print media and time.
CEO
Most of the full service agencies have similar structure; the designations may
differ from agency to agency.
3. Agency of Records is the large agency with financial muscle as they buy
media in bulk and sell the space not needed by them at a profit of 2% to those
agencies who are looking for media space at the peak season.
Agency profits and payments come from commissions they get from the
media for selling space to their clients. The rate of commission has been
15%. Besides, agencies also get from their clients direct fees, markups and
incentive based commissions.
For the media like outdoor, special boards and directories, the agency puts a
mark up on the price given by the media and gets paid for its efforts. In the
case of incentive base, the client pays the agency on the basis of the result
obtained by the advertising campaign.
AN AGENCY VISIT
QUESTIONNAIRE
Any competitors?
Presented in the next page are the answers to the questionnaire given by the
MUDRA – An Overview
advertisings.
In 1980, Mudra started with a modest turnover of Rs.30 lakh in the first year of
operation. The first few years indicated a placid growth rate of 25%. From
becoming the third largest agency in the country in a short span of 9 years.
necessary.
with the objective. For e.g. Reliance 501 Hungama. Hungama was the
Media plan
i) story board
iii) Shooting
Agency-Client Relationship
like husband-wife relationship of trust and belief. Till there is a mutual faith,
Client turnover happens because of various reasons and many agencies face
etc.
Mudra is also not exception to this. They lost Hutch and Kinetic.
making they check the feedback. It’s necessary to check whether the ad is
feedback they take necessary action on it i.e. they change for better
advertising.
For e.g. Reliance ad with Cricketer Virendra Sehwag was the worst ad they
made. Though it is very famous and has reached to the people but not the
way they wanted to. So they have identified the criticism of the ad and now
Mudra is maintaining its rank and has won several awards. Namely, -----------
Mudra has collected many accolades over the years including the "Agency of
the Year" award for 6 years besides the induction of Shri A.G.Krishnamurthy
(Ex CMD) into the Calcutta Ad Club Hall of Fame; his being chosen as the Ad
Person of the Year by A&M; his nomination as "one of the 25 key figures of
the international Ad Industry" in 1998 by British Magazine - Media
International; and the AAAI-Premnarayen Award in recognition of his
pioneering spirit and entrepreneurial vision.
1993|Total awards 55
Agency of the Year - A&M
Creative Awards
884 awards till date
What the brand want to convey to its target audience of SEC A and B
homemakers between 25-45 years of age is that ‘what is clean inside is clean
outside’ and only Henko powerpearls can go deep down into the fibres to
clean them thoroughly. Therefore, the communication is based on the idea ‘
truth is inside’, using the tagline, ‘Ultimate cleanliness Inside and Out’. The
desire is to be seen as a ‘modern’, technologically superior’, ‘premium’
product that is ‘trusted, unsurpassed and unbeatable on stain-removal
efficiency’. About Rs 10 crores is being invested in promoting the brand in the
launch phase. To generate rapid awareness and trial for the brand, there’s a
mix of above- the-line activities. While TV is the lead medium, there are road
shows and interactive programmes to take the product closer to the
consumer. Henko Powerpearls has a 45 second commercial created by
Mudra. The brand ambassador is Aman Varma, the good Samaritan in star
plus’ blockbusters soap ‘kyunki saas bhi kabhi bahu thi’ who got piped at the
post by Tulsi’s husband back from the dead, and is currently controlling the
cave doors on the game show ‘khulja sim sim’.
The compact segment is the Indian market for fabric wash products is
estimated to be around Rs 400 crores, in value, and 26,000 metric tones, in
volume. Henkel SPIC says the segment is growing at around 5 per cent in
value terms and 2 per cent in volume terms. Trends indicate that compacts
are the segment of the future, in terms of value contribution to the overall
detergent market. Other top-end innovations such as gels, tablets and so on,
which are big segments in more evolved markets, would also be natural
extensions of the compact segment. The company sees its main challenge in
communicating its claimed superiority over the available solutions, and
changing the target consumer’s perceptions to generate trial and user-ship.
Questionnaire
FINDINGS
The awareness of the advertising agency is very less about 67 people don’t
know about any advertising agency and only 10 people know about MUDRA as
an advertising agency.
Ads No. of
responden
ts
Virendra Sehwag (Reliance India Mobile) 5
McDonalds (What is your bahana?) 40
Karishma Kapoor (Rasna) 25
Amitabh Bachhan (Dabur) 30
About 40 people have liked the Ad of Dabur & McDonalds whereas 25 people
liked Rasna Ad & only 5 people liked the Ad of Reliance Ad of Viendra Sehwag.
There is a majority of 70 people which supports the view that celebrities should
be involved in an Ad because it makes the Ad more watch able and brings
more weightage to the product gives their image value to the product and about
30 respondents suggest that it makes no difference no them if celebrities in an
Ad.
63 people out of 100 has a view as sex appeal should not be used in making
an Ad whereas 37 people has a view that it should be used for making an Ad
as it gives more viewership to the Ad.
A majority of people, 80 out of 100 has a view that advertising increases the
price of the product as the advertising cost is recovered by increasing the price
of product whereas 20 people suggest that it does not increases the price of
the product.
No. of respondents
Yes 95
No 5
There is large portion of respondents who suggest that there should be ethics
in advertising i.e. 95 people and only 5 people think that ethics are not
important to them.
CONCLUSION
But still a number of difficulties have been faced. Practical measures to bring
about a congenial atmosphere have to be implied. It is further followed by a
discussion on whether advertising can be regarded in India. There is a definite
trend in that direction and professionalisation of advertising seems to be
inevitable. With growing professionalisation, we can look forward to a glorious
future. The future of advertising in India is very bright since India is one of the
fastest growing markets in the world due to the size of its population and its
increasing prosperity.
Bibliography
BOOKS
o Advertising
--- Michael Vaz
o Advertising management
--- G S Rathod
MAGAZINES
o A&M
WEB SITES
o www.mudra .com
o www.aandm.com
NEWS PAPER
o Economic times