Professional Documents
Culture Documents
INDEX
SR NO.
PARTICULARS
MEANING OF MARKET
PAGE NO.
MEANING OF MARKETING
1
3
INTRODUCTION OF ADVERTISING
MEDIA OF ADVERTISING
13
DISPLAY OF GOODS
31
40
ADVERTISING AGENCY
42
10
51
11
56
12
59
OBJECTIVE
To understand how the advertisement agency deals with media and their clients. It
all gives practical approach to know the advertising in detail.
MEANING OF MARKET: The widened horizon of the market world over has given a different
MEANING OF MARKETING: Marketing has been defined by the American Marketing Association as,
the performance of the business activities that direct the flow of goods and
services from producer to consumer or user.
Philip Kotler defines marketing as, a human activity directed at satisfying
needs and wants through exchange process.
From the above definitions it is clear that marketing is not only concerned with
buying and selling but also with all other activities resulting into flow of goods and
services from the centres of production to centres of consumption. In marketing,
an attempt is also made to find out the potential outlet and buyers. It is an attempt
to create new demand for the goods. Thus the term marketing has wider scope.
Philip Kotlers definition point out that marketing is a means for the
satisfaction of human wants. The purpose of marketing is to supply goods
according to the requirements of the consumers. Marketing aims at maximizing
profits to the sellers and maximizing satisfaction to the consumers.
The modern concept of marketing is quite different from the traditional one.
Traditionally, marketing consists of those activities, which were responsible for
the movement of goods form producer to consumers. The aim of marketing was
to create place, time and possession utilities to goods. The modern marketing
concept is not concerned with the physical process of distribution. In the modern
sense, marketing function is concerned with the creation of a consumer. Thus
marketing is the base of all business activities.
3
Features of marketing
1. Change in ownership and possession: Marketing includes all activities
concerned with affecting change in ownership and possession of goods and
services.
2. Creation of utilities: Marketing creates time, place and possession utilities.
3. Satisfaction of human wants: Marketing is a process through which
human wants are satisfied through the exchange of goods and services.
4. Connecting center of production and consumption: Marketing is the
sum total of activities that take place in getting goods and services into the
hands of ultimate consumer.
5. Consumer satisfaction: Satisfaction and welfare of consumer.
6. Profit orientation: Marketing should also give reasonable profit to the
seller. Marketing is not a social service but an economy activity for the
satisfaction to consumers and reasonable return to seller.
7. Sales promotion: Marketing aims at determining the needs of consumers.
It also includes the use of sales promotion measures in order to encourage
consumer to buy more. It is basically sales promotion tool in the armory of a
businessman.
8. Marketing mix: Marketing is the sum total of four Ps such as Product,
Price, Promotion, and Place. Thus, marketing involves producing the right
product changing the right price, placing the product in the right way,
targeting the right market place. Marketing is essentially consumer-oriented
in character. It is for promoting sales.
Importance of marketing:
1. Marketing helps in effecting supply at the right place and right time.
2. Marketing stabilizes the price.
3. It informs consumer about the arrival of new product and their uses.
4. It improves the standard of living of consumers.
5. Marketing establishes a channel of communication between producer and
consumer, thus speeds up the exchange of goods and services.
6. Marketing facilitates the free flow of goods and services and prevents
accumulation of unsold stock.
7. Marketing helps in increasing the volumes of production and hence the
manufacturers can enjoy the advantages of large-scale economics.
8. Marketing provides employment opportunities, thus enhances the general
welfare of the society.
9. Marketing enables the producers to concentrate on production of goods
leaving the distribution to the distributive class. Due to this sort of
specialization, producer can concentrate on production and also improve
the quality of production.
Acceptance of message
Recommendation
High
Level of fear
Resultant
nonmonotonic
Inhabiting effects
curve
Before deciding to use a fear appeal based massage strategy, the advertiser
should consider how fear operates, what level to use and how different
target audiences may respond. One theory suggests that the relationship
between the level of fear in the massage and acceptance of persuasion is
curvilinear, as shown in the diagram. This means that massage acceptance
increases as the amount of fear used rise to a point. Beyond that point
acceptance decreases as the level of fear rises.
This relationship between fear and persuasion can be explained by the
fact that fears appeals have both facilitating and inhabiting effects. A low
level fear can have facilitating effects; it attracts attention and interests in the
massage and may motivate the receiver to act to resolve the threat. Thus
increasing a level of fear in a massage from low to moderate can result in
6
5.
Habit: People buy certain products out of certain habits e.g. liquor,
cigarettes, etc. Habits can also be created by salesmanship and
advertising e.g. sales of pan masalas has increased due to heavy amounts
of advertising.
11.
12. Patronage: It can be brand loyalty. Many people have faith in certain
brands therefore they purchase the products of only that brand. Therefore
an advertiser should focus on to maintain brand loyalty.
13.
The study of buying motives is important and essential for every advertiser. It
gives the following advantages.
An advertiser can focus only those features of a product that satisfy the
buying motives of the customer.
FAST MOVING CONSUMER GOODS (FMCG): According to, Food Safety Promotion Brand fast moving consumer
goods means, This is usually an everyday low priced and low risk product that
requires very little thought when purchasing.
Basically in our day-to-day life we need different types of products but FMCG
are those products, which we get at very lower price and which are changing
time-to-time. Rich as well as poor people consume FMCG. FMCG helps in
increasing our national income.
Fast Moving Consumer Goods includes variety of Toilet soaps, detergents,
toothpastes, washing products and much more.
ADVERTISING:
Meaning of Advertising and Publicity:
The powerful weapon in the armoury of business community today is
advertising and publicity. It is a part and parcel of every business today and as no
business can survive and grow without advertising and publicity. As a matter of
fact today advertising and publicity is required in every walk of life. Salesmanship
alone will bring limited success in selling unless it is supported by advertising and
publicity. Both these activities are supplementary. Advertising is impersonal
9
11
Importance of Advertising:
Advertising plays an important role in modern competitive consumer oriented
marketing. It is a must for facing market competition and for effective marketing of
goods. Advertising is rightly called grand panacea of modern age. It is the
backbone of modern business, which clusters around it. The following factors
suggest the importance of advertising.
1) It creates new market:
Advertising informs to the people about new goods or new models. It
educates people in the utility of the products. Whenever any new product is
found out, it is widely advertised pointing out the benefits and the utility of the
same. Naturally, people who are not aware of the product come to know about
it and start buying it. Thus advertising multiplies wants and opens up new
markets. Advertising actually creates demand for products much before they
are placed in the market. Modern advertising starts before bringing the
product in the market. This creates new demand and new markets for the
products.
2) It encourages production:
Advertising not only creates demand for the new products but also
creates constant demand for the product and maintains the market. Thus, the
market for the product is widened due to advertising and publicity. This
stimulated production and manufacturers are encouraged to improve the
quality of the products. Advertising enables the manufacturer to introduce new
products to the consumers. It encourages to consumers to purchase newly
manufactured products.
3) It reduces price of goods:
Advertising widens market for goods, which induce producers, undertake
large-scale production. Large-scale production is always cheaper as the
producer enjoys economies of scale. Thus the cost of production per unit is
reduced which again leads to lowering of the prices of goods. Unfortunately
this benefit is generally not given to consumers. On the other hand, the
expenditure on the advertising is also collected from the consumers.
12
is
correct,
our
wants
are
more
effectively
satisfied.
14
MEDIA OF ADVERTISING:
We come across a number of ways and means of attracting public attention
to the product. The forms of attracting public attention to products are called
media of advertising. Media is nothing but the means employed in order to bring
advertisement to the public notice. It is the channel through which an advertising
message is conveyed to the people at large. There are different media for
advertising and any suitable media should be selected. The media to be selected
generally depends upon the type of product, the type of buyers to be approached,
cost of advertising, users of the products, selling policies of the organization and
sales territories.
The following are the important media of advertising: 1. Press advertising
2. Outdoor advertising
3. Radio advertising
4. Television advertising
5. Film advertising
6. Direct mail advertising
7. Internet advertising
1. Press advertising:
Press advertising is the most popular medium of advertising in the
modern competitive marketing. Press advertising means publicity given
through newspapers, magazines, journals and other periodicals. It is no
15
exaggeration to say that in the absence of press, the art of advertising would
not have acquired its present strength and dimensions. It has been estimated
that in India more than 5000 newspapers printed in all the major languages
spoken throughout the length and breadth of the country. There are national
newspapers, regional newspapers and local papers processing respective
value for various advertising appeals. Similarly we come across different
weeklies, bi-weeklies, monthlies, quarterlies and annuals. There is also a
great deal of specialization among various journals and weeklies e.g.,
technical journals, journals meant mainly for children and females. Wide
varieties of newspapers, journals, magazines are available for advertising and
the advertiser can select a suitable newspaper or journal to attract the
attention of the public.
In the newspapers advertisements of different sizes can be given.
Repetition of the same advertisement is also possible. Some newspapers also
publish colour advertisements. Pictures, slogans, charts, etc. can be added in
the newspaper advertising. Many newspapers bring out special multi-colored
supplements. Wide publicity can be given to the products through such
newspaper advertising. This media of advertising has some merits and
demerits. They are as stated below:
Advantages / Merits of Press advertising:
I. It facilitates mass appeals. The number of people that can be appealed
through press advertising is very large. Large numbers of national and local
newspapers are regularly published in India. Naturally publicity in different
languages and in all parts of the country is possible through press advertising.
II. Since, its coverage can be estimated there is minimum of wastage.
III. It makes possible variety in advertising appeals as the space for advertising
can be adjusted as per the size of the advertisement.
IV. Its effectiveness can be quickly tested.
V. It has wide coverage. The newspapers and magazines are not only read by
purchasers but are passed on to others and thus, read by a large number of
people.
16
VI. Advertisement in bold and beautiful type at a prominent place quickly draws
the attention and promotes sales. Colour advertisements in the newspapers
can be given. Such advertisements are very attractive and they attract the
attention of thousand of readers.
VII. It facilitates desired frequency in advertising. Advertisements in the
newspapers can be repeated as per the desire of the advertiser. This
technique of repetition of the same advertisements gives desired effects.
VIII. It makes possible artistic production of advertisement.
IX. An advertisement in a popular newspaper earns confidence of the readers
and this raises the market demand for products.
X. Newspaper advertising is convenient for all types of products and for all
categories of readers. Extensive advertising in possible due to wide coverage
in the circulation of newspapers.
Disadvantages / Demerits of Press advertising:
I. Press advertising is short lived and is informal in appeal. Readers give limited
attention to press advertisements and even forget after reading the same due
to other activities.
II. It is beneficial only if the bulk of the people are literate and the product offered
for sale has a wide market.
III. It fails to attract the attention of busy and indifferent readers, as they do not
give much attention to the advertisements.
IV. Since, circulation or readership of newspapers cannot be exactly estimated it
leads to wastage in advertising.
V. Changes cannot be introduced quickly in the case of advertisements in
newspapers, monthlies and quarterlies. As a result of this the advertisement
becomes stale by the time it reaches readers.
VI. Newspapers advertisements are not very attractive as the paper used is
inferior in quality and most of the advertisements are in black and white. Thus
attractive and impressive advertising is not possible through press.
VII. Press advertising is expensive as the advertising charges are fast increasing.
Small manufacturers find it difficult to give large advertisements in leading
newspapers due to high advertising charges.
17
VIII. Newspaper advertising all alone will not be effective. It needs to the supported
by TV or Radio advertising for desired effect.
IX. Press advertising is useful mainly for advertising consumer goods having a
wide market.
2. Outdoor advertising:
Press advertising (described above) is basically indoor advertising as
papers and magazines are generally read indoors. Outdoor advertising is
opposite of this advertising. Outdoor advertising means making advertising
outside i.e. on roads, garden, bridges, railway stations and so on. Outdoor
advertisements even are seen at street corners, railway stations, bus stands
or on moving vehicles. The media for outdoor advertising are posters, painted
displays, electric light signs, car cards, neon signs, bus cards, traveling
displays, sandwich board, sandwich men, advertising in the air, use of
balloons or kites and sky writing. The outdoor advertising is more effective
and occupies key position in the present distributive system. Here, the main
intention is to exhibit the poster etc. at street corners or in the business
locality to attract the attention of people on the road. On posters etc. a short
description of the product or the trademark is given. The posters are short but
the heading or slogan is forceful. People happen to see the advertisement
again and again wherein lies the success of the outdoor advertising.
Moreover, outdoor advertising constantly remains at the fixed place unless it
is removed, replaced or turn out. It appeals to masses and gives prompt
response leading to sales promotion. Outdoor advertising is also called as
Mural Advertising.
Forms of outdoor advertising:
a) Posters:
Poster is one of the most popular forms of outdoor advertising. Poster is a
sheet of paper, cloth or cardboard containing the massage regarding the
product. Posters are normally exhibited on street corners, railway stations,
bus stops, tops of building, market places and other crowded points and
places. Posters make very effective and timely appeal to the viewers and
18
onlookers. Walls, fences, chimneys, bridges and hills are also used for the
display of posters. The people when they are moving or when they are
passing the vehicles sees posters. Selection of proper site and attractive
colour combinations makes posters popular, impressive and effective. The
posters succeed in the sales promotion if its location is correct. Similarly
posters should be of a proper size. It should be neither too small nor too large.
Its slogan must be brief, attractive, eye catchy and should convey the
massage at a glance. If possible posters should mention important features of
the product along with the illustrations of the product. Proper colour
combination is also necessary for making the poster attractive.
b) Neon signs:
Neon sign is an electronic device used for advertising the product. Neon
signs are glass tubes or signs with electric tube made in the form of letters.
Such neon signs are fixed at crowded places or road junctions or at places
where people have to wait for one reason or the other. Such neon signs may
be either still or of flashing type. Illumination makes them more attractive and
agreeable to consumers. This media is used extensively in European
countries and Japan. Different colors are used in neon signs for attracting the
attention of people. This advertising is costly due to high rent of place used for
fixing the neon sign. Regular maintenance is also necessary. Neon signs are
lighted at night and late in the evening. In order to have eye catchy effect,
different colour combinations are used.
c)
d) Sandwich Boards:
Sandwich board is another interesting form of outdoor advertising. In this
form, two advertising boards are joined at one end. It goes without saying that
19
people balloons are kept higher in the sky over the sea beaches or in busy
localities or in upon space frequently visited by people. Some companies
make use of helicopters for carrying banners of which advertising massage or
slogan is written. Smoke writing is another form of outdoor advertising, which
is adjunct to sky writing technique. Here, advertising massage or slogan is
conveyed to people by means of letters formed with the help of smoke. The
influence of this advertising does not last long because such advertisement
can be seen only momentarily. This is natural as smoked letter very soon drift
away as the wind blows.
h) Transit Advertising:
Another form of out-of-home advertising is transit advertising. While
similar to outdoor in the sense that it uses billboards and electronic
messages. Transit is targeted at the millions of people who are exposed to
commercial transportation facilities, including buses, taxis, commuter trains,
elevators, trolleys, airplanes and subways.
Transit advertising has been around for a long time, but recent years
have seen a renewed interest in this medium. Due in part of increased
number of women in the workforce (they can be reached on their way to work
more easily than at home), audience segmentation and the rising cost of TV
advertising, yearly transit ad spending increased from $43 million in 1972 to
over $900 million in 2001. Much of this spending has come from packaged
goods companies such as Colgate, Nestle, and Kraft - General foods that like
transits lower costs and improved frequency of exposures. Other retailers,
movie studios, and business-to-business companies have also increased
expenditures in this area.
o Advantages / Merits of Transit Advertising:
I. Exposure:
Long length of exposure to an ad is one major advantage of indoor forms.
The average ride on mass transit is 45 minutes, allowing for plenty of
exposure time. As with airline tickets the audience is essentially a captive one,
with nowhere else to go and nothing much to do. As a result riders are likely to
read the ads more than once. A second form of exposure transit advertising
21
Cost:
Transit advertising tends to be one of the least expensive media in terms of
both absolute and relative costs. An ad on the side of bus can be purchased
for a very reasonable cost.
22
23
24
Radio advertising can be made attractive and impressive with the use of
good music, songs, dialogues, interviews and so on.
25
26
27
III. It interferes with the entertainment of the listeners and possesses nuisance
value. Listeners get bored and irritated on account of repetitions of spot
announcements. Listeners even start programs only when the advertisements
of the sponsorer are over.
IV. TV advertising is extremely costly. Big companies which can spent lakhs of
rupees on advertising can use it. Services of experts are also necessary for
TV advertising.
V. There is heavy rush on TV advertising and booking of specific time for
advertising is rather difficult. Advertising at a wrong time may not be effective.
VI. TV advertising covers small area. It makes appeal to a limited number of
prospects. There is lot of wastage when advertisement is given at a wrong
time.
VII. Selection of program that will appeal to all categories of people and also of all
age groups is rather difficult. This restricts the coverage of the prospects.
VIII. Fast advertising of many products within a short period affects the advertisers,
as they do not get the desired effect. Viewers simply forget all advertisements
given quickly one after the other.
5. Film Advertising:
Film advertising is completely new medium of advertising. Here, the
advertising films are specially prepared for advertising the product. Such
slides and propaganda films are shown on the screen in theaters and at other
entertainment places including railway stations, parks, etc. big concerns
advertise through slides. The advantage of advertisements made in theaters
is that there is no necessity of searching an audience. The films are also
exhibited at places like hotels, gardens, railway stations, clubs, fairs and
exhibitions. Film advertising is appeals to the eyes and ears both and
produces expected impact on the minds of the audience. It possesses
greatest attention value and carries the sales massage to big audience.
Advertising films are of different types, which include technical films,
educational films, institutional films and narrative films. Film advertising caters
to the requirements of all and usually produces desirable results.
28
29
Merits
of
30
7. Internet Advertising:
Anyone who has followed the Internet industry over the last decade has seen
an amazing series of events. Moving from a medium with almost no presence in
the marketing environment to one that was the center of attention, the Internet
experienced a boom that unfortunately became a bust. What some marketers
thought would be the be all and end all of communications has now become a
puzzle waiting to be solved, as many marketers have yet to discover what role
the Internet will assume in their communications program.
Some companies have apparently solved the puzzle and have effectively
integrated the Internet into their marketing communications programs. Others
have been successful as well, particularly when they view the internet as a
component of the integrated marketing communications program and not as the
only tool required for success.
Web Objectives:
When major corporations first began to conduct business on the Internet,
they put up websites primarily for information purposes. Companies like Pepsi
and Coca Cola had sites that were really not much more than online catalogues
designed for information purposes only. The role of websites quickly changed,
31
however; sites have become much more creative, promoting brand images,
positioning and offering promotions, product information and even products for
sale. With the introduction of Java in 1995, it became possible to create fancier
graphics, audio and animation online. This resulted in marketers utilizing the
Internet in an entirely new way, moving beyond the purely informational role. The
objectives
of
disseminating
information
still
remains
but
additional
1) Banners:
The most common form of advertising on the Web is banner ads. Banner
ads may be used for creating awareness or recognition or for direct marketing
objectives. Banner ads may take on a variety of forms as well as a number of
names such as side panels, skyscrapers or verticals. Initially banner ads
constituted the vast majority of advertising on the Net, but studies indicating their
questionable effectiveness have led to a decline in usage. Reports on click
through rates vary, but most studies indicate a less than 1% response rate. A few
studies have shown an increase in response rates in recent years. These findings
may lead to increased use of this method of advertising in the future.
2) Sponsorships:
Another common form of advertising is sponsorships. There are two types
of sponsorships. Regular sponsorships occur when a company pays to sponsor
a section of a site. A more involved agreement is the content sponsorship; in
which not only provides dollars in return for name association but participates in
providing the content itself. In some cases, the site is responsible for providing
content and having it approved by the sponsor; in other instances, the sponsor
may contribute all or part of the content. Due in parts to the lack of effectiveness
of banner ads, sponsorships have been increasing in popularity.
32
Meaning of display:
33
35
V.
VI.
VII.
Sales promotion:
Display of goods is an important dealer aid as dealers are convinced
about the advantages of stocking goods of specific wholesalers and
manufacturers.
Forms of display:
Display of goods is possible in different ways. Forms of display means the
methods and techniques used for the display of goods. These forms or methods
of display are as follows:
FORMS OF DISPLAY
(1)
(2)
(3)
(4)
(5)
Window
Sign Boards
Interior
Display
on shop front
Display
Show Rooms
Solus
Related
Display
Display
36
Fairs
(6)
Exhibitions
1) Window Display:
Window display is a modern technique of advertising and publicity. Window
means the front position of the shop. Window display means keeping samples of
new arrivals attractively in the front portion of the shop. Through such window
display, goods are brought to the notice of perspective buyers. The attention of
people moving on the road is diverted towards the shop due to window display. It
is an attractive exhibition of goods in the front side of shop. Such display gives
maximum view of the goods to the outsiders for the roadside. This creates
attraction in the minds of prospects and they are encouraged to enter the shop.
The selection of proper side for window display is very important. The display
also needs periodically changes. The use of attractive lighting, decorative
material, rotating stands etc. makes window display more attractive. It is vital
factor affecting sales. Window display is economical and useful form of
advertising especially in retail trading. Window displays sell more than what they
cost. In window display consumers are not only shown goods bit are made
familiar with them. Window display technique is used effectively in big cities like
Mumbai and Delhi. This kind of silent salesmanship can be made more effective
trough the use of new technique including the use of electronic devices. The
responsibility of window display should be given to one who knows the art of
salesmanship.
Followings are the essentials of an effective window displays:
a) A window should be rectangular. This means it should have more width and
less height. This enables passers by to see the sample at a glance.
b) The frame of the window should not be very eye catchy. It should focus
more attention on the product than on frame of the window.
c) The glass of window should be thick as well as transparent. This will enable
the visitor to have proper look at the product and also keep the product safe.
d) There should be proper lighting arrangements. Proper colour combinations
should be used to make it impressive and appealing. Colors should not be
very goody and glaringly bright. They should be soft and compatible with
one another making pleasant appeal on visitors.
e) The window glass must be daily cleaned so as to display of product should
be changed periodically.
37
f) There should not be over crowding of product in the window. Only a few
novelties and new arrivals should be displayed at the window to attempt the
passer by.
g) Price tags should be attached to the product. Price tags should be avoided
in case of very costly products.
Window displays are of two types:
i. Solus display
ii. Related display
i. Solus display:
In the case of solus display, only one article is displayed in an attractive
manner. Here, prominence is given to the display of single article. The article
displayed in ultra modern and has some outstanding merits and features.
Normally in the jewellery shop we find solus display of a diamond ring or diamond
necklace. Nowadays-even dealers dealing in watches also display new watches
and bracelets in their window in a very eye catchy manner. At present Titan and
Fast track people are using this technique on massive scale.
The board on the shop front should be unique and it should be capable of
distinguishing shop from that of competitors in the vicinity. It has immediate
impact on the customers and shop also gets the identification. Therefore because
of advertising particular shops indirectly products can be advertised. For example
if a girl always goes to a particular cosmetics shop because of its popularity then
automatically she always try to purchase cosmetics from that shop only. Indirectly
it is profitable to those brands companies because they can indirectly advertise
their products in that shop.
3) Interior display:
Interior display is one of the techniques of internal advertising and publicity.
Interior display is an attempt to arrange article in an artistic and attractive manner
within the shop premises. New arrivals, posters, boards, etc. are arranged at
convenient place to attract the attention of customers. Goods are also kept in an
attractive manner in showcases and stands. The purpose of interior display is to
attract the attention of customers to various articles available in the shop. Interior
display is not useful to attracting the attention of outsiders. It is a supplement to
window display and creates a pleasing impression on the customers. It creates
an impression of orderliness, neatness and efficiency. Special attention is given
to interior display in big retail shops like departmental stores. Frequent changes
are made in the interior display for attracting the attention of customers. Interior
display should systematic and decent. It should be decorative as well as
functional but should not disturb the free movement of salesmen and customers.
It should facilitate easy picking and should be free from dust and dirt. Many
manufacturers supply display material to small retailers for publicity purpose. For
interior showcases, counters, lighting arrangements, posters, etc. are useful.
Interior display is a type of interior decoration. It creates pleasing atmosphere in
the shop. Modern interior display is attractive, space saving and convenient to
salesman and customers.
4) Showcases and Showrooms:
Showcases are nothing but cases made up of glass doors. They are used for
the display of goods within the shop. Customers can easily see articles kept in
showcases. Such cases are used for interior decoration and display of goods.
39
40
6) Exhibitions:
In order to display latest innovations exhibitions are now quite common in the
field of business and industry. Trade associations and chambers of commerce
generally organize trade exhibitions. This also be sponsored jointly by two or
more industrial and commercial enterprises. The object of a trade exhibition is to
display latest innovations and demonstrate their merits. The exhibitions provide
first hand information about the product displayed. They are useful in introducing
new products and in educating people about the new uses of the product. Sales
literature is supplied to visitors and an arrangement is made of demonstrations. It
helps in popularizing the product to a great extent. Hence, leading industrialists,
businessmen and manufacturers actively participate in the exhibition. It also
facilitates image building and provides an opportunity to study competitors
products, its technical specialties, sales techniques etc.
Thus, healthy
turnover and profit for the organization. Hence, the business enterprises should
take into account gain in the long run and actively participate in the exhibition. It
not only assists in advertising but also facilitates study of innovations, latest
developments, competitors products, its superiority and the sales techniques
adopted by the rivals.
Indian government is also encouraging various exporters to participate in
exhibitions in order to promote Indias exports. Various facilities and concessions
are given to the exporters for participating in the exhibitions. Participation of
exporters in fairs gives wide publicity to Indian goods abroad and effective
demand is created. The government of India have created a separate directorate
named Directorate of exhibitions to deal with matters related to participation in
exhibition. The directorate encourages Indian manufacturers to participate in
international exhibitions, arranged exhibitions of Indian goods abroad and opens
showrooms at leading industrial and commercial centers. Participation in
international fairs and exhibitions is arranged through ministry of Foreign Trade
and the Indian Council and Commodity Board also origins or participate in
specialized fairs or exhibitions abroad.
42
systems,
with
separate
manufacturing,
research
and
Production
Sales
Finance
Marketing
Product
management
R&D
Human
Resources
Marketing
services
Brand Manager
Advertising
--------- department
Ad agency
Marketing
research
Sales promotion
Package design
Brand Manager
43
Merchandising
Ad agency
Brand Manager
Ad agency
Dishwashing
products category
general manager
Laundry products
category general
manager
Specialty products
category general
manager
Advertising managers
(Each category manager will have one or more advertising
managers reporting to him or her for each specific brand,
e. g., Tide advertising manager, Cheer advertising manager.)
44
Brand managers
ADVERTISING AGENCY:
45
Marketing services:
Over the past two decades, use of marketing services has increased
dramatically. One service gaining increased attention in research, as agencies
realize that to communicate effectively with there client customer, they must have
good understanding of the target audience.
Most full service agencies maintain research department whose functions is
to gather, analyze, and interpret information that will be useful in developing
advertising for their clients. This can be done through primary research _ where a
study is designed, executed, and interpreted by the research department _ or
through the use of secondary sources of information. Sometime the research
department acquires studies conducted by independent syndicated research
firms or consultants. The research staff then interprets this report and passes on
the information to other agency personal working on that account.
The research department may also design and conduct research to pretest
the effectiveness of advertising the agency is considering. For example, copy
testing is often conducted to determine how messages developed by the creative
specialists are likely to be interpreted by the receiving audience.
46
Members of the creative department work together to develops ads that will
communicate the key points determined to be the basis of the creative strategy
for the clients product. Writers and artists generally work under the direction of
the agencys creative director, who overseas all the advertising produced by the
organization. The director sets the creative philosophy of the department and
may even become directly involved in the creating ads for the agencys largest
clients.
Once the copy, layout, illustrations, and mechanical specifications have been
completed and approved, the ad is turned over to the production department.
Most agencies do not produce actually finished ads; they hire printers, engravers,
photographers, typographers and other suppliers to complete the finished
product. For broadcast production the approved storyboard must be turned into
the finished commercial. The production department may supervise the casting of
people to appear in the ad and the setting for the scenes as well as choose an
independent production studio. The department may hire an outside director to
turn creative concept into a commercial. For example, several companies like
Nike and Kmart, have used film director Spike Lee to direct their commercials;
Airwalk shoos has used John Glen, who directed many of the James Bond films,
for its TV sports. Copywriters, art directors, account managers, people from
research and planning and representatives from the clients side may all
participate in production decisions, particularly when large sums of money are
involved.
Creating an advertisement often involves many people and takes several
months. In large agencies with many clients, coordinating the creative and
production processes can be major problem. A traffic department coordinates all
phases of production to see that the ads are completed on time and that all
deadlines for submitting the ads to the media are met. The traffic department may
be located in the creative services area of the agency, or be part of media or
account management or be separate.
Management and Finance:
Like any other business an advertising agency must be managed and
perform basic operating and administrative functions such as accounting , finance
and human resources. It must also attempt to generate new business. Large
48
49
73%
Market share
29
Profit
25
Brand / ad awareness
50
Brand perceptions
23
25
Performance reviews
58
Other criteria
11
14%
Company performance
17
50
69
13%
10
33
44
Source:
Association of National Advertisers: Trend in Compensation Survey: 2000
Evaluating Agencies:
Given the substantial amounts of money being spent on advertising and
promotion, demand for accountability of the expenditures has increased. Regular
reviews of the agencys performance are necessary. The agency evaluation
process usually involves two types of assessments, one financial and operational
and the other more qualitative. The financial audit focuses on how the agency
conducts its business. It is designed to verify costs and expenses, the number of
personnel hour charged to an account and payments to media and outside
suppliers. The qualitative audit focuses on the agencys efforts in planning,
developing and implementing the clients advertising programs and considers the
results achieved.
There are a number of reasons clients switch agencies. Understanding these
potential problems can help the agency avoid them. In addition, it is important to
understand the process agencies go through in trying to win new clients.
Why agencies lose clients?
Some common reasons agencies lose clients are as follows:
I. Poor performance or service:
The client becomes dissatisfied with the quality of the advertising and / or the
service provided by the agency.
II. Poor communication:
51
The client and agency personnel fail to develop or maintain the level of
communication necessary to sustain a favorable working relationship.
III. Unrealistic demands by the clients:
The client places demands on the agency that exceed the amount of
compensation received and reduce the accounts profitability.
IV. Personality conflicts:
People working on the account on the client and agency sides do not have
enough report to work well together.
V. Personnel changes:
A change in personnel at either the agency or the advertiser can create
problems. New managers may wish to use an agency with which they have
established ties. Agency personnel often take accounts with them when they
switch agencies or start their own.
VI. Changes in the size of the client or agency:
The client may outgrow the agency or decide its needs a larger agency to
handle its business. If the agency gets too large, the client may represent too
small a percentage of its business to command attention.
VII. Conflicts of interests:
A conflict may develop when an agency merges with another agency or
when a client is part of an acquisition or merger. In U.S., an agency cannot
handle two accounts that are in direct competition with each other. In some
cases, even indirect competition will not be tolerated.
VIII. Changes in the clients corporate and / or marketing strategy:
A client may change its marketing strategy and decide that a new agency is
needed to carry out the new program. As more companies adapt an integrated
marketing communications approach, they are looking for agencies that have
integrated capabilities and can handle more than just their media advertising.
IX. Declining sales:
When sales of the clients product or service are stagnant or declining,
advertising may be seen as contributing to the problem. A new agency may be
sought for a new creative approach.
X. Conflict in compensation policies:
52
53
1) Wills Filter
The Made for each other advertising campaign for Wills Filter cigarettes is
considered a classical campaign in cigarette advertising in India, as well as in
Indian advertising history. Wills Filter was one of the first Indian filter cigarette in
the market, and its success over the years is partly due to its effective advertising
strategy. ITC had succeeded in matching tobacco with the filter so that the latter
did not compromise on the taste of the cigarette. The company sought to
communicate this products development to the masses and launched the
advertising campaign for Wills Filter cigarettes, which emphasized that the
tobacco and the filter were made for each other. Over the years this advertising
campaign continued virtually unchanged and is still going strong today, after it
was first used to convey the sales message for Wills cigarettes. The use of
emotion in these advertisements, and their appeal to the filter cigarette smoking
public, have stood the taste of time in a way very few advertisement campaign (if
any) have managed.
Today, Wills is one of the largest selling filter cigarettes in India, inspite of
having increased its selling price innumerable times over the years. It has
managed to carve out an impressive niche in the Indian cigarette market and has
a plethora of brand loyal consumers. The made for each other campaign that
set the filter trend in the Indian cigarettes has already become legendary.
2) Nirma
54
One of the successful new launches of the eighties is that of Nirma detergent
powder. It took on the then market leader, Surf (manufactured by Hindustan
Lever), and gradually became the top selling detergent. Nirmas success is
derived from the products positioning through creative advertising. In a market
flooded mostly with expensive detergent powders, by and large aimed at the
upper-income group, Nirma was the first detergent powder to project economy
and minimum quality, appealing to the middle and lower middle class people. Due
to this advantage, Nirma succeeded in considerably enlarging the market for
detergents and wrested the initiative from Surf, the erstwhile market leader. The
advertising campaign for Nirma played a key role in its success. Using primarily
the fast growing television medium, the advertising campaign gave the low price
product an up market image. Characterized by seek advertising appeal and a
memorable jingle that echoed in many consumers minds, these advertisements
made Nirma a household name in almost no time. Sales went up and thus, the
combination of low price and aggressive advertising helped Nirma in capturing a
large share of the Indian detergent market.
This advertising campaign was indeed a good piece of creative work in
Indian advertising. It demonstrated the efficiency of sleek packaging and a
memorable jingle. Today a host of me too detergents, which Nirmas success has
spawned, use remarkably similar advertising campaigns. However, none of these
brands could achieve the kind of success that Nirma has had in this market. The
advertising campaign for Nirma, on the other hand, has remained virtually
unchanged over the years and the jingle is still the same (with minor
modifications), proof of its continued appeal and selling power.
3) Liril
55
4) Rasna
56
5) Amul
57
For many years, Amul butter has been running a unique form of advertising
campaign through hoardings in major cities in the country. These hoardings focus
on current events, incorporating a catchy slogan through the clever use of words,
including either Amul, Butter or both, often using the Amul cartoon characters.
Incorporating the sales message into the news that the hoardings broadcast is
something that is very difficult to accomplish over such an extended period of
time. Wit and charm has made this campaign a landmark in creativity. The
advertisements, while on the one hand highlighting some recent news events,
also pitch in the reserved and subtle sales message for Amul butter. The
hoardings are changed quite frequently, as and when some newsworthy event
takes place. The news utilized by the hoardings keeps abreast of events.
This campaign is landmark in Indian advertising because of the way it has
utilized this particular media (i.e. outdoor hoarding). No other advertising
campaign using hoardings has come even close to the creativity, wit and charm
of this delightful campaign.
6) Lux
58
Lux is a very popular brand from its launch. It is very famous beauty soap
among its consumers. Because of its advertising day by day its sale is
increasing. For the promotion of Lux the advertisers are changing their
innovative ideas of advertising. Lux always tries to take current popular female
actresses for its advertising. For example before few years ago they have taken
Aishwarya Rai as a brand ambassador for Lux but nowadays they have taken
Kareena Kapoor as a brand ambassador for its new launches. They have
introduced another trend in their advertising that is previously they always take
female as a brand ambassador for Lux soaps but before few months ago they
have created new trend in their advertising that is they have taken four female
actresses right from old actresses like Hema Malini, Shridevi, and new actresses
like Kareena Kapoor and Juhi Chawla with well known male actor i.e. Shah Rukh
Khan. Through this advertising they got great success for their brand.
59
For advertising their products they take the help of packaging the product that
means packaging play an important role in advertising. In the products
wrappers they give the information about which extracts they have used for
that product in a picture form. For example in the Doy Care Alow Vera soaps
wrapper they have given Alow Veras picture through which they can convince
their consumers.
They give some offers on their advertisements. For example, in Rins ad they
have given one offer for children i.e. Rin Advanced (star ki khoj). In this offer
they give assurance of Rs. 5 lacks scholarship for winner.
Like the product in advertising it is also main aspect that who is going to
demonstrate the products features. Hence, brand ambassadors, newcomers
60
With product they are giving some gift articles and they are showing them in
the advertisement. For example, in the Bornvitas ad they show that with the
bornvita customers can get mug or in the Rin Supremes ad they shoe that
Rin Supreme soap with dry net cover.
Like jingle playback singers are also important. Because of their beautiful
voice people get attracted to ads. For example, in the Amul milk ad Kunal
Ganjawala had sung the jingle and because that popular jingle that ad
became successful and they had made a great profits.
About
Beginning
In
1959,
Girgaum,
Mumbai
witnessed
seven
ladies of the residential tenements of Lohana Nivas gathering on the terrace of
62
the building for a function followed by rolling 4 packets of papads and the
decision to make papads, everyday.
Thus, Shri Mahila Griha Udyog Lijjat Papad made a beginning under the
Blessings of Shri Chhaganlal Karamshi Parekh popularly known as Pujya
Chhaganbapa who was a member of the servants of India Society and a highly
successful social worker. He was a noble man gifted with down to earth ideas.
With the passage of time more ladies joined the institution. Initially the business
was carried out on an informal basis without formal registration. As scales
increased, the institution faced obvious sales tax and other problems.
What really helped the institution was excellent quality of papads, which has
remained uniform from the very first day of its production. At no time the
members have allowed it to deteriorate. The principles, upon which the institution
is based, have made Lijjat Papad a successful organization.
Rapid Progress
Shri Mahila Griha Udyog Lijjat Papad has made exemplary progress in the
last 45 years of its existence. The sales, which have amounted to only Rs.
6,196/- in the first year. I.e. 1959 have already touched the level of Rs. 300
crores. The membership which was just 7 in the beginning is around 40,000.
The institution has started to extend its activities from 1968. At present, it
has 63 branches and 40 divisions spread in different states of India. There are 16
branches in the city of Mumbai and its suburbs. 11 are in the remaining parts of
Maharashtra, namely Pune, Amravati, Warnanagar (near Kolhapur), Islampur,
Latur, Nagpur, Ratnagiri, Panvel, Deori, Dhayri (Pune) and Rahuri.
The institution has by now grown into a vast and prestigious organization. It
has got its own fleet of transport vehicles to help the smooth movement of the
goods to the selling points and passenger vehicles for convenience of its
members. Many branches and centers have their own premises too. All of them
are well equipped with various facilities to carry out their day-to-day work.
Industries commission during the same year and that was the great boost the
institution had ever received.
Institutional Set Up
There is a managing committee of 21 members to manage the affaires of the
whole institution. There are also Sanchalika (one or more) for each centre to look
after all the daily affaires of the concerned centre. But the work of institution is
that each and every member can take any initiative or any decision.
Another important fact about the institution is that a male person cannot
become its member and any male employee whether working honorary or on
salary basis has no right whatsoever over the institution.
Lijjat equally popular Abroad
Lijjat Papad has earned reputation not only in India but also in every nook
and corner of the world. The world wide demand for crisp ad alluring Lijjat
Papads always keeps growing. At present about 30 to 35 % production of Lijjat
Papad is being exported. The main consumer countries include U.K., U.S.A.
Middle East and also Singapore, Hong Kong, Europe and Japan.
Diversification
Lijjat has now diversified its activities. It has a Flour division at Vashi (Navi
Mumbai) and at Nasik where flour is milled from Udad Dal and Moong Dal. There
is Masala Division at Cottongreen where different kinds of spice powders like
Turmeric, Chilies, Coriander and ready Mix- Masala like Garam Masala, Tea
Masala etc. are prepared and packed in consumer packs.
The institution is having Khakhra Division at Buhari (Dist- Surat). The other
divisions are
Export at Wadala
Vadi at Valod
Lijjat has also now entered into the field of manufacturing Detergent Powder
and Cackes, to start with at Dahiser and office at Borivali in mumbai. Later
extended to Sanaswadi (Pune), Haripar Pal (Rajkot), Hyderabad (Andhra
Pradesh).
About advertising (How Lijjat advertise their products?)
Advertising is must for the survival of any business. Lijjat have chosen TV
advertising and print advertising for advertising their products. For survival and
growth of the business Lijjat require advertising and publicity. Today, for Lijjat
there is no need of excess advertising because now it is a well-known brand. But
at initial level they have chosen TV advertising for advertise their products. To
survive in the market or in the competition with the other FMCG companies Lijjat
needs advertising and still its a better option for it.
Lijjat go through In House Advertising. That means they not give their
advertising contract to any other ad agency. In order to reduce costs and
maintain greater control over agency activities Lijjat has set up their own ad
agency internally. This ad agency they themselves operate. Lijjat take all the
decisions and implement them in a right manner. Because of In-House ad agency
Lijjat gets different benefits they are as follows:
There is no need to give media commission to anybody because its their own
ad agency.
65
Through it they get related work such as sales presentations and sales force
material, package design and public relations at a lower cost than an outside
ad agency.
In House ad agency helps them in not only saving their money but also time.
They get increased knowledge and understanding of the market, which come
from working on advertising and promotion for the product day by day.
Lijjat also maintain a higher control over the process and more easily
coordinate promotions with the firms overall marketing programmes.
66
puppets shows. In the ad of Lijjat Papad they have shown 3 puppet rabbits who
are eating Lijjat papads. It was a very different and interesting ad in those days.
People enjoyed that ad. It was a favorite ad of children.
Conclusion
67
68
69