EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY
The major roles of any company whether in a domestic market or international
market the role of a marketer is to create an awareness of the product among the
general public and attract general customers. However good the product is,
without knowledge of the product and desires for the customer on the product it
is impossible to create a brand or a successful product image. And the best thing
that a company can do this is by launching an effective advertising campaign
that kindles the emotions of customers in all positive sense.

Advertising is the simplest way of informing or drawing attention or telling a

group of potential audience regarding the product or company. Advertising can
take several forms and it’s the duty of the advertising department of that
particular company to conduct the market research and decide what are the most
important things that have to be concentrated while launching an advertising
campaign.

The report has analysed the market on the basis of segments, covering
television, print, radio, internet/online, mobile and outdoor. Among these, print
advertising currently accounts for the largest market share, representing the
most popular segment. The report also provides an analysis of the competitive
landscape along with the profiles of the key players operating in the market.
Some of the major players covered in the report include JWT India, Ogilvy &
Mather India, DDB Mudra Group, FCB-Ulka Advertising Ltd., Rediffusion -
DY&R, and McCann Erickson India.

As marketers how can we integrate various communication methods in order to

produce an effective advertising campaign resulting in producing a successful
product? The main purpose of this chapter is to give some details in research
background. This chapter will also give information on research aim and
objectives. And the main part of the research is how advertising strategies vary
while entering India. In order to understand the environment of India a detail
study was conducted and I have drawn the conclusion.

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INTRODUCTION

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INTRODUCTION
The history of advertising can be traced to ancient civilizations. It became a
major force in capitalist economies in the mid-19th century, based primarily on
newspapers and magazines. In the 20th century, advertising grew rapidly with
new technologies such as direct mail, radio, television, the internet and mobile
devices.
The growth of the advertising industry is highly dependent on the penetration of
various media platforms. India, with its developing economy, provides
numerous opportunities to advertisers to promote their products and services
through the expanding media channels in the region. The economic growth has
also led to an increase in the spending power of a significant portion of the
population, creating an affluent brand conscious consumer-base. As a result, the
companies are focusing on creating a strong brand-image for themselves by
advertising extensively. The market reached a value of more than INR
573.5 Billion in 2017, growing at a CAGR of 11% during 2011-2017.

Advertising effectiveness can be defined as the extent to which advertising

generates a certain desired effect. Measuring the effects of advertising is very
important, given the amount of investments needed for advertising. While it is
not possible to obtain a global measure of the advertising effectiveness, we
should seek to develop and apply methods and measures for a partial
verification of results. Regarding the difficulty of measuring the overall
effectiveness, we believe that it is due essentially to the following
considerations:

• advertising interacts with other business variables (behavior, marketing

policies, financial decisions etc.) And environmental variables (competition,
economic conjuncture etc.), hardly isolable;

• The effects of advertising are varied and not always translatable into
quantitative terms;

• Advertising causes long-term effects, not always, therefore, the results occur
in the same period in which are the costs.

Over the next few years, the Indian advertising market is projected to be the
fastest-growing advertising market in Asia, after China. This growth can be
attributed to a number of favourable factors. One of the primary factors is the
rapid penetration of smartphones and internet in the country which facilitates

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the use of digital advertising. Increasing population and favourable government
regulations are some of the other growth driving factors. According to the
report, the market is further expected to reach a value of INR 1102 Billion by
2023.

LITERATURE REVIEW

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LITERATURE REVIEW
Hirschman and Craig (1997) in their study on the media proposed that
consumer’s relationships to non-advertising forms of mass media are an
essential aspect of the perceived meanings they derive from advertisements and
on the basis of similar studies they state that consumers often process
advertisements for meaning rather than information and that advertisements can
be experienced as aesthetic events just like other media products. They also
observe that media and advertising have a symbiotic relation in which media
enhance the effectiveness of some advertising by portraying certain
product/brand assortments as more desirable than others. Their main
observation is that by “ singing in harmony with the prevailing chorus of mass
media texts, advertising may become more potent as a conveyor of consumption
preferences”.

To be effective Advertising, should persuade the audience to interpret the

advertising message in the manner intended by the sponsor (Ramaswamy,
2002). Such interpretation depends upon the knowledge resources of the viewer
(Bulmer and Oliver, 2004a). Their study pertains to visually complex
advertising and the variations in consumer interpretations due to cultural
factors. According to them, “ the multiple bodies of knowledge that viewers
draw on to interpret visuals in advertising are the grounded language, literature
and cultural traditions including tacit knowledge, myths, narrative structure,
consumption practices and advertising genres as well as an understanding of
cultural texts, products and brands”. Their research findings concluded that
viewers interpret visuals in advertising based on resources that are “linked to
literary and cultural traditions that are significantly different for different
cultural groups”.

Mc Quarrie and Mick, (1999) on the basis of their empirical research in the light
of rhetorical theory and cultural competency theory by using text
interpretations, experiments and readerresponse interviews examined the impact
of visual rhetorical figures in advertising. They found that rhyme, antitheses,
metaphor and pun lead to a more favourable attitude towards the
advertisements. The effects were less for visual tropes (metaphor and pun) and
in case of individuals with les s cultural competency.

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Barbara (1997) conducted a qualitative study of ads containing figures of
rhetoric on how consumer infers advertising messages. Six ads containing
pictorial metaphors were administered to the participants. This study shows that
consumer interpretation match the intentions of the ad producers. Responses
from participants suggested that consumers use cultural, product and advertising
knowledge to infer meaning from advertising images.

Hayakawa, (1974) has made a comparison between poetry and Ad texts.

According to him both make use of rhyme, rhythm and words with connotative
value; both seek overtones of meaning that haunts our mind and other
similarities are the use of Ambiguity, Imagination and Role – Playing and that
he feels that life is an imitation of Art and that advertising is a creative art.

Delgadillo and Escalas (2004) have explored ‘word-of-mouth’ (WOM) from the
perspective of a narrative or story. Their study provided empirical evidence that
consumer WOM communications are often structured as a narrative.
There are several challenge that advertising face today but according to a study
by Kroeber-Riel (1990, cited in Appelbaum and Halliburton 1993) in Germany,
as much as 90 per cent of the information provided to consumer is ignored.
They argue that advertising will need to capture the consumer’s attention and
deliver the message in an original way that will enable the consumer to
remember and identify with both message and the brand.
According to Bullimore (1995) ‘without advertising, we would not have brands
or innovation, consumer choice, value for money or our diverse media’. In order
to understand the role of advertising we have classify advertising on for types,
they involve in identifying our target audience for example when chocolate
companies such as Kit Kat are advertising they must target mainly kids the next
one is what is the purpose and next one is the media used whether it is television
or radio or newspapers or magazines or cinema or any combination of them.
And the last classification is based on the geographic area that it needs to
address.

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OBJECTIVES

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OBJECTIVES

 To study advertisement sector in India

 Factors affecting the advertisement to influence the customers towards

the product

 Trends in Advertisement sector in India

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 RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY
This study aims to find the most effective and suitable advertising strategies for
foreign firms when entering Indian market, and thus, consumer behaviour and
consumer needs must be understood before doing do. To gain such information,
several steps have to be carried out. Therefore the main purpose of this chapter
is to provide information on research methods used.

Research Design

This research consists of Exploratory Research and Descriptive Research. The

details on each process are provided as below.

Exploratory Research

This is the first step to gain an understanding on the implication of advertising

on consumer behaviour. As previously explained in Literature Review,
advertising can influence consumers in different ways. To accomplish this
process effectively, primary research is conducted in this stage. Focus group
interview is used during this stage to gain primary data.

Descriptive Research

Descriptive research is a process after the focus group interview. And the main
aim of descriptive research is to analyse the primary data. Primary data in this
research are represented in descriptive fashion, based on supported theories
from different sources, such journal articles, books, internet and newspapers.

Collection of Data

Secondary Data:

Secondary data is information refer to information gathered by others rather

than researcher. And in most cases, they are collected for some other purposes.
Secondary data can be obtained from various sources. In this study, secondary
data are collected from internet, journal articles, website and newspapers.

The secondary data was referred for the preparation of the report.

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DATA ANALYSIS AND
RESULTS

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DATA ANALYSIS AND RESULTS
About 200 years ago, in ancient Greece and Rome the advertising was used for
the transmission of information. During middle ages, advertising signs
(consisted of illustrations of symbols of products) were very extensively used.
The upsurge in advertising comes after the development of printing. Then the
signs were replaced by written words or messages.
During the 17th century, newspaper advertising began to develop. Earlier ads
were for books, marriage offers, new beverages and ads for travel. Around
1840, in USA, space selling in newspaper started.
Development of Modern Advertising
Although American are the forerunners of the modern advertising, it had its root
ion England. The industrial revolution led to the expansion of mass
manufactured goods in Europe and America. It changes the market trend.
Localized markets were replaced by extended domestic national markets and
international markets. This development created a need for advertising.
By the end of 1920s, advertising had grown into a major industry in the USA.
Agencies started hiring skilled people and after a range of services to the
advertisers.
Evolution of Indian Advertising
The foundations of professional advertising business in India was led by two
English companies J. Walter Thompson and D. J. Keymer’s Lintas India came
on the scene in 1939. However O & M was set up in 1926.
In pre-independence India only press independence was there. In 1930 with the
development of radio it emerges as media for advertisement. In 1950s cinema
advertisement began. In 1960s professionalization within the ad agencies
started. 1970s was the era of media boom. In 1967 radio services were
commercialized. It was in the 60s and early 70s that the concept of brand
building appeared on the scene. In 1977, DD became commercial and this
brought about the qualitative change in Indian advertising. This was also the
time for expansion and diversification of agencies. Within its changing color,
starting from august 15, 1982 TV emerged as the most powerful medium. In 90s
emphases was given on direct marketing. During the time, satellite TV emerges.
The major development was the introduction of 24hr movie channels and pay
channels. FM radio also comes into picture. Gradually the main era of concern
was given to brand equity. This was also the time of internationalization of
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advertising. In India, the last decade of 20th century has witnessed a phenomenal
growth in ad business. In 1990-91 the overall growth in business was recorded
to 17.1% and till 1994-95 it improved up to 49.5%
This was due to the first major economy boom in the country. Since then the
growth rate has been slowing down and has settled at almost 18% in 1998-99.
According to analyst 49.5% growth was an outcome of an irrational response to
economic liberalization and the media inflation of 1990s.
As economic policy changes, introduced in 1990s, have opened the door for
global competition a new economic era has begun. Aggressive marketing efforts
by domestic and foreign business houses are increasing. The emergence of
growth of new technologies, availabilities of new media and media vehicles and
an increase in middle class income and aspirations have contributed to the
phenomenal increase in the level of advertising and other form of promotion.
The future of Indian advertising is bright, provided that those in the profession
acknowledge the social responsibility of advertising and conduct themselves in
such a way as to be seen as an important part of the economic development
effort of the country.
Definition of Advertising
According to Phillip Kotler (2003), advertising is the most popular marketing
communication tools because it is widely used in all business sectors. Terry
Flew (2002), defined advertising as:
“The way in which the mass media in all of their forms affect the way the
audiences act and behave in their daily lives. The forms of media include
television, films, songs and other similar forms.”
(Flew 2002, p. 12)
Under the concept developed by Kotler, key advertising instruments consists of
both print and media adverts, such as print and broadcast adverts, audiovisual
material, package-outer, brochures and booklets, billboards, display signs,
symbols and logos, motion pictures, posters and leaflets, videotapes and reprint
of adverts. However, in the recent years, a rapid development of technology has
implications on the growth of media and advertising (Grips, 2002).
A research showed that new forms of media, such as DVD and the internet
changes the way people consume media or advertised products and services.
The fast development of media has raised a question on the issues of media
influence affect on attitude and belief of customers. Inoculation model is one of

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the popular passive audience theories, explaining that upon being exposed to
advertising’s messages, viewers become instantaneously immune to them.
The concept of inoculation model was used to examine the effect of advertising
message on consumer behaviour by many researchers. One of the interesting
studies was carried out by Karen Hartman (2000) who presented a snapshot of
researched published between 1990 and 1999 and studied negative political
advertising, mainly in the US. Hartman used showing themes, such as
typologies, effects of negative advertisements, media coverage of political
campaigns and the actual candidate behaviour, to categorise the literatures.
Research finding indicated that a long term exposure to negative message can
effect the perception and attitude of the viewers towards politicians and political
parties.
Consumer’s attitudes towards advertisement
In my research I understand that consumers are more favourable than
unfavourable towards advertising. They not only recognise the negative effects
but also the positive economic impact f advertising industry. Advertising is a
method in which companies can motivate a consumer in making a decision.
Because the advertising if effective can create a connection and help the
consumer to take a decision quickly and easily. According to Abernethy and
Franke (1996) argue that the evidence on consumer attitudes toward advertising
shows that consumer prefer advertising that helps indecision making.
Providing information that differentiates a brand from its competitors tends to
increase commercial recall, comprehension and persuasion. They cite a 1995
study by Ducoffe that found information in advertising to be the single factor
most strongly correlated with overall advertising value. Their review of
audience perceptions of commercials revealed the informative/effective factor
to be the best predictor of ad likeability and brand attitudes. Their summary is
that advertising information is an important influence on consumer’s responses
to both the ad and the brand.
The Advertising Standards Authority Report (Ford-Hutchinson and Roth well
2002) similarly identified a series of consumer attitudes towards advertising and
confirmed many of the previous studies:
 Advertising is everything with a name on it. As noted earlier, from the
consumer perspective, the term ’advertising’ encompasses every piece of
brand, product or service communication. It obviously includes the key
media of advertising but also other aspects of ‘selling’ such as direct mail,

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 door drops, the internet branded clothing, sponsorship, branded text
messages and even telephone sales.
 Life without advertising would be dull. Advertising is part of the
environment. For some mainly older respondents, there is perhaps, too
much advertising, but the majority embrace it as part of life. They
indicate that without it there would be less information, entertainment and
street colour, and less to talk about.
 Advertising is an indicator of business health
 Advertising has got better. It is felt to be cleverer, more reflective of real
life, more entertaining and more tuned to different targets.
 Consumers are concerned about ‘untruthful truthful advertising’,
advertising that dose not lie, but is economical with the truth. It mainly
concerns the advertising of financial products that highlights substantial
benefits but is vague about risk or downsides. It is epitomised by
advertising for accident claims companies consolidation of debts and loan
offers.
 Overall the regulatory bodies were felt by the public ‘to be doing good
job’. However, in the area of untruthful, truthful advertising’ it was felt
that ‘they’ should be more active, invasive and controlling in order to
protect consumers.
Ethics of Advertising
In 1972 William Franken (cited Zinkhan 1994) defined ethics as a set of moral
principles directed at enhancing societal well-being. He sub divided this into
moral principles: beneficence-which concerns doing good; and justice-which is
the practice of being fair.
Bush and Bush (1994) defined ethics as ‘just or right standards of behaviour
between parties in a situation, based on individual moral philosophies’
Another major problem in advertising is to understand the ethics any thing that
is said to be right or wrong must be accepted only if they are justified. Zinkhan
(1994) acknowledges that when making these difficult moral choices there are
many places to turn for guidance including personal conscience, company
policy, industry standards, governmental law or regulation, and organised
religion. Any advertising that is said to be not following the ethics are those that
have significant harmful effects for section of people.

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Robin and Reidenback (1998) take a much broader view of ethics in marketing
communications and point out the degree to which the basic functions are seen
to be ethical or unethical they suggest that advertising, in particular, must be
measured within an understanding of our history the time in which they are
applied their context, the expectations of society the requirements of capitalism
and our best understanding of human behaviour
Advertising & Culture
Culture is the main factor influencing consumers to develop perception toward
brands and products (Maxwell, 2001). A study investigated homogeneity versus
heterogeneity of global consumption, emphasising on culture price/brand effect
model of middle class consumers in the US and India. The main purpose of the
study is to compare the consumers of developing countries to those in industrial
nations as well as comparing culture differences of the two nations and see
whether it affect the way customers perceive. Research finding indicated that
consumers in India have a lower perception toward brand than that of
consumers in the US.
It showed that Indian consumers need to be convinced of standardised quality.
And the differences between Americans and Indians influence how price and
brand affect their buying decision making. Indians appeared to be tougher
consumers to whom to sell as compared to American buyers. This research
finding signifies that cultural differences influence the way people think,
implement and interpret. Thus, it can be assumed that marketers must take
cultural factor seriously when entering Indian market because consumers in
India need to be convinced of standardised quality.
In addition, when companies go across border, adaptation should be considered.
Marketers can use the same strategies from home when they entering foreign
markets, but this tactic may business goal Discussed in an article, focusing on
positioning of products in foreign markets; it claimed that it is logical that
consumers would react differently to different categories of product. Marketers
must understand consumers’ perceptions of international, national and private
brands because it enable them to know consumer needs and to position products
better against the background ofdifferences in product quality, price, prestige,
and the like. Therefore, to positioning the products and service in overseas
market effectively, firms must understand different demands of consumers in
different countries (Ghose & Lowengart, 2001).
Advertising Objectives

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Advertising objectives are to be decided at the beginning of any advertising
campaign. Objectives are measurable and defined clearly. The advertising must
be designed in way that it can achieve its goal. For example it can developed in
order to bring a product awarness,product launch,brand choice,image change or
some other aspect of advertising communication.Objectives should be always
precise and narrow and they must be developed in a limited set of targets.
Creating wide objectives to be attained within a short span of time and limited
but will make the advertising campaign loose its effectiveness.
According to Murphy and Cunningham 1993 ‘Advertiisng objectivees are
simply statements describing what is to be accomplished by advertising to
capitalise on opportunities and/or overcome problems facing the adveriser
during the planning period’
Many investors think the amount spent on advertising would directly produce
the sales which according to the research is not true. Because sales
achievements are not only related to advertising because lack of performance in
some other areas will also result in the goals not being achieved. But inorder to
achieve the sales target advertising plays a important role but the argument is
advertising alone cannot achieve sales targets.
According to Pincott 2001 there are many statements of advertising objective
and,whilst the following list is not exhaustive ,it indicates the type of objectives
that might be set for an advertising campaign.
Awareness and saliency:
Raise the profile of the brand by x per cent;
Build awarness of brand by x per cent;
Make consumers aware of brand’s promotion;
Drive saliency;
Raise awarness of the brand at launch;
Educate the consumer of the benefits of the brand;
Reinforce perceptions;
To maintain the brand positioning
Revive brand relevance and appeal;
Reflect the size and status of the brand;
Remind current and lapsed users that the brand;

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Build on past brand strenghts and remedy perceptual weakness;
Enchance the special regard with which the brand is held;
Change perceptions;
Reposition the brand;
Encourage reassessment of the brand
To express the brand values in contemporary manner:
Change the basis of consumer evaluations of the product category;
Change behavior;
Encourage increased use of the product;
Gain trial;
Get kids to ask Mum for the brand;
Increase penetration of the brand amongst (a defined target group).
As mentioned above there can be various objectives but it is most appropriate
for the company and the marketers to decide what they want achieve and within
what time. For example a company launching a business mobile can clearly
decide that its target audience are business people and decide their goals. The
more appropriate the
Use of Market Research in India
Rit Cifton (1997) has defined international advertising as an approach ‘seeking
a common perspective across markets….but not in as ambitious a way as global
advertising which seeks to standardize as much as possible’. Without market
research it is impossible to forecast the future. The various reasons for market
research is to determine the availability and relevance of media channels in
India. What are the most effective influence of media in consumers mind?
What is the fastest way of reaching the consumers and what is the most
effective. Marieke de Mooij (1991) argues that: ‘Advertising to be effective,
must derive from and be part of a culture sharing the language and values of the
target audiences. ’It is possible to stand out this by developing global themes.
Advertisers have a main question of whether standardizing or adapting their
strategy and when they have answer this they have to analyses their product and
determine how it can relate to their target audience. In India the advertising
proposition must be targeted with a multi-lingual perspective from the outset.
Good advertising avoids subtitles .Different regions require different costume
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for example an ad featuring in north India requires a number different features
than that require in India for example it portrays a family in North India it has
shown different in style of wardrobe, house and how they talk to audiences
down south.
When an advertisement has to be translated from one language to a mother it
can be done quite easily and it requires a lot of space. The cuisine differs from
region to region and state to state in India can vary. Advertising literacy is very
important.
Mary Goodyear (1996) differentiates the components of advertising literacy in the following table:

THE COMPONENTS OF ADVERTISING LITERACY

LOW CONSUMERISATION HIGH CONSUMERISATION

Product attributes Product Benefits

Focus on products Focus on usage

Rational Emotional

Realistic Symbolic

Fact Metaphor

Maker’s language Brand language

Salesperson Consumer

Packshot Consumption

Left brain Right brain

Selling buying

Source: Goodyear 1996

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Statements used in one country as humorous can be very critzing in another
country. India Therefore proper analysis of culture ,languages and colours are
very important. For example several colours have different meaning in India.
The value of research in the international context as said by Bannister et al.1997

The value of research in the international context

Source: Bannister et al.1997

Research
↓
Position→Emotional or informative
↓
Appeal→Romance,sex,social reward,etc
↓
Tone →Humour,soft sell,narrative,etc
↓
Advertsing concept→ Format→ cartoon,slice of life,music
↓
Media

Role of colors in India

India a land colors different colors mean different meanings through out the
country. In peoples mind colors are associated with festivals, occasions,
religions, happiness, lifestyles and beliefs. Being a vast country the same color
can be associated with different meanings in different part of the same nation.
What I have tried is to consolidate and come to general view of colors and how
their associated with the mind of the people. In order to anlayse this certain
color are accepted as total different meanings in different cultures.
When we consider the color red it indicates power, happiness and fearless. In
most wedding the red is used for decoration because it indicates happiness and
prosperity whereas the same color red in southern part of India is accepted as a
violent and very dangerous. In India once a girl gets married she is suppose to

21
keep a red powder on her forehead indicating that she is married. The colour
black is usually a color which the product could better stay away from because
in India
Black is regarded as evil color. It represents negativity and darkness. Yellow is a
color which is usually associated with herbs , yellow which is associated with
turmeric which is used for ladies and kids which they apply on their faces to
give them a brighter appearance and take all the dirt away it indicates cleaniness
,purity and sancity.Every religion as a color associated with them for Hindus the
color that reperesents gods are usually red and blue. Because blue is represent
by Lord Krishna and red is the symbol of Goddess Durga. Where as the
majority of the people following Islam their sacred color is green.
White is a color in most part of the nation which indicates loss of happiness. It
is usually allowed to wear in funerals. A widow wears a white dress to indicate
that she has lost her loved one and she will stay from the happiness and joy here
after.But some people also regard white as divine and purity.Contrary to the
West where heritage and richness is showed by purple in India pink potrays
royality.
Being such a large country a color need not have the same meaning in every
part of the nation but the role of the company is to analyse the consumers mind
set and how they relate to colors and decide which color would best suit to
depict their product.
Role of language in Indian Advertising
India has 18 national languages and around 250 spoken languages so when a
company is entering it cannot be happy to provide subtitles on every language.
But according to my research what I understood was the total nation can be
categorised into 4 to 5 important languages advertisers should concentrate on.
In northern part of India the most frequently spoken language is Hindi and it can
be used to cover majority of the consumers.The problem comes when it as to
address the consumers down south where there are four regional languages and
each one is different from the other.The four languages are tamil,telugu,kanada
and malayalam.So if company has to advertise in the southern part of India it is
necessary for it advertise in all four languages.
The best solution is to standardise the language. English is spoken through out
the country and English can be a good medium to communicate through out the
country.The main drawback is if the product is global and universal it will not
face any problems but if the product targets a specific target region or
consumers of specific culture they have to adapt accordingly.

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Even the languages used in different regions might be the same but advertisers
must even concentrate on how the words are pronounced because in southern
part of India the same language ‘Tamil’ has a number of different slangs which
differentiates the person speaking from different part of the region.
For example in Tamil Nadu southern part of India the way tamil spoken by a
person from Chennai will varie from Tamil spoken by a person from
Coimbatore.Both Coimbatore and Chennai are big cities and have good
population when the company is targetting the consumers in chennai it is most
appropriate the advertisements on television to have the language spoken in
their own home town style which will create a likeness towards the product.
Language plays a major role when we are adapting in India but it is important to
understand how complex role it is to adapt to some many different languages.
The main duty of the advertisers to identify what are the most important
languages they have to adapt.
Mass media in India
Home of 1.14 billion people when it comes to mass media communication India
is far developed in Printed as well as electronic. India is one of the largest
newspaper markets after china with around 78.7 million copies sold every day.
The country has a growing middle class consumers and booming economy
which has resulted in enormous consumer spending and advertising. The main
reason is people still trust and respect newspapers and believe the information
on it to be true. It has more than 20000 journals printed in English and most of
them translated into their regional languages. Some of the most read English
newspapers are ‘The Hindu’ and Express network papers.
Most of the newspapers are translated into regional languages but however
English newspapers are more read and widely distributed through out the
country. Though there are several other languages Britain’s English is accepted
through out country from the old to the young. The magazines are very large
sector and have a huge potential of reaching large consumers when it is national
level they can be categorised as general magazines, sports, kids, womens and
cinema magazines. Most of the magazines are also covered in their regional
languages. So based on the product and target audience the corresponding
magazine can be chosen.
The television network in India is fast growing and the national channels which
are free to watch are available through out the region and can even reach rural
areas. According to Arthur Andersen television reaches around 78.9 % of the
urban population and around 39.8 % of the rural population. And there are

23
around 80 million households in India who have access to television. But with
the rapid growth of satellite channels there is wide possibility for advertisers to
use their advertisement on the channels more affectively for their sole purposes.
For example cricket is watch through out the country and during a match the
company can advertise on a channel telecasting the match. However the cost
would be must higher than any general telecast but the total reach would be so
large and it would not be restricted by languages or culture. When launching a
kid’s product kids channel is the best because the two major kid’s channels are
cartoon network and pogo which are English channels and the advertisements
need not be regional.
When a product is given to a customer it has to be local as possible they should
be able to differentiate themselves from being a local rather than an alien. And
the best way to show it is by proper advertising. When it comes to using the
postal network that is for direct marketing it is a potential country. Because it
has a well developed postal network and people do not shift their houses quite
often. In most region of India they still practice joint family system in which 2
to 3 generations live together and do not split up. As a result of this it is a cheap
means of communication. The target group is more and contact ratio will be
must more.
According to CIA India has around 49.75 million (2005) telephones main line in
use and 233.62 million mobile connections in use. Telemarketing has not been
much developed in India where people trust in viewing their products and
feeling them even before they make a purchase. So trying to advertise or sell a
product over the phone is not quite appropriate. And most of the communication
needs to be in local language because there will be some one at the home who
dose not knows English and they would find it very hard to respond. There are
different times in which consumers would not be happy to listen and respond for
example they would not like to talk early in the mornings and after 6 in the
night.
They would not be associated with conversation that would disclose their
personal details. It is also not possible to obtain their direct debit or bank details
over the phone because in India they would not make the purchase until they
have build a trust. And also expect after sale services. it can work out well in
cities but in under developed areas it cannot be much effective. With the growth
of mobile industry it is possible to have more contact ratio than before but it
cannot be assured how effective the message would reach the consumer.

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With a variety of options it is clear mass media communication for India is wide
and very efficient but it is up to the advertiser to understand which media will
be most appropriate.
Localization
For a multinational to enter India it must adapt itself so that it can portray as a
local than a foreigner. Several multinational have bent them so effectively that
they have showed themselves as local and attracted consumers.
Brands that are global once they enter India they show them how well they have
tailored themselves to match the Indian market. One important example is
McDonalds a fast food restaurant outlet through out the world when it enter
India it changed itself completely to show it has local. Beef burgers sold in Mc
Donald’s where replaced by vegetable burger because in India beef was not
consumed by majority of the population because cow was regarded as a sacred
animal. So Mc Donald’s not only changed their products by adding Mc Aloo
Tikki burger a local potato burger they also used look alike of Indian film stars.
The message it expressed was the prices are low like old good times. This was
so local and created an quick connection to every average Indian.
For a multinational the target is India’s growing middle class of an estimated
200-350 million their strategy was very effective. The McDonald’s
advertisement is a classic example of ‘go global act local’
A mixture of globalization and localization is the best strategy any multinational
can opt to reach every Indian. For example Coke a multinational drink company
which is known for its brand need not necessarily adapt itself to India but it
plays a smart role on advertising in India. Coke ads are completely local in each
region of the country the use of the celebrities for the promotion can be best
understood while analyzing how coke ads are given to consumers. Coke ads
have film stars and they vary so much from the part of the country they are
telecasted.
Coke ads in North India usually have celebrities like Aamir Khan, Hrithik
Roshan and Aishwarya Rai where as ads in down south have their local film
stars like Vikram and Vijay. All these stars have a great market potential and
these ads create a great impact on the consumers and make them feel the
product is completely local and it is for them. Glocalization, explained Zubin
Driver, network creative director of the television channel CNBC’s TV18, is a
product of globalization and the local reaction to it. 2.6 Advertising Appeals
Advertising formats can be of several varieties they can apple rational or
emotional or both. Advertising appeal refers to the basis or approach used in the

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advertising to attract the intrest amd attention of consumers and influence their
feelings towards the product.As Ogilvy and Raphaelson(1982) state:Few
purchases of any kind are made for entirely rational reasons. Even a purely
functional product such as a laundry detergent may offer what is now called an
emotional benefit-say the satisfaction of seeing one;s children in bright clean
clothes.
Appelbaum and Halliburton(1993) provide a table illustrating the various
formats used within advertising:
 Slice of life
 Story around the product
 Testimonials (by experts)
 Testimonials (by celebrities)
 Tesitimonials(by ordinary people)
 Talking heads
 Characters associated with the products
 Demonstrations
 People in action
 Cartoon
 International versus national

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 TRENDS IN ADVERTISMENT SECTOR IN INDIA
The Indian advertising industry has advanced from being a small-scale business
to a full-fledged industry. The advertising industry is expected to be the second
fastest growing advertising market in Asia after China. It is assessed that by
2018, the share of ad spend in India’s Gross Domestic Product (GDP) will be
around 0.45 percent.

The Indian government has given enormous support to the advertising and
marketing industry. Advertising expenditure is probably to increase in the
financial sector, driven by Reserve Bank of India (RBI) policies which could
bring about a more favourable business environment. Likewise, proposed
licenses for new banks and better market sentiments render the advertising and
marketing industry in India a rich space.

As per eMarketer, Digital advertising will stay in a period of rapid growth,

growing another 18% worldwide on top of 20% this year. However, that growth
will not be evenly distributed. Rather, Facebook and Google will keep on
consuming increasingly of the advertising industry, while digital advertising
goes mobile-first.
While talking about market size, Print contributes a significant portion to the
total advertising revenue, accounting for almost 41.2 percent, though TV
contributes 38.2 percent, and digital contributes 11 percent of the total revenue.
Radio, Outdoor and Cinema make up the balance 10 per cent. India’s digital
advertising market is expected to grow up to the compound annual growth rate
(CAGR) of 33.5 per cent to cross the Rs 25,500 crore (US$ 3.8 billion) by 2020.

The Internet's share of total advertising revenue is foreseen to grow twofold

from eight percent in 2013 to 16 percent in 2018. Online advertising, which was
estimated at Rs 2,900 crore (US$ 435 million) in 2013, could jump threefold to
Rs 10,000 crore (US$ 1.5 billion) in five years, increasing at a compound
annual rate of 28 percent.

Here are a few highlights to get you started:

Industry to Increase its use of Digital Marketing and Advertising Tools to

Streamline Marketing Workflow

As brands and ad agencies continue to keep on leveraging various channels to

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capture new audiences, eliminating repetitive administrative tasks is high on the
agenda. Marketers and creatives are overseeing approval workflow and
resources with greater ease and transparency enabling them to stay on top of
heavy workloads and multiple projects in digital tools. Some of the advanced
digital tools that the industry is moving towards are: marketing approval
workflow software, project management software, agency approval workflow
software, online proofing tools and resource management software. Not
exclusively do these instruments cut out tedious organization, they offer more
noteworthy control and perceivability over overseeing inventive undertakings
and also streamline showcasing work process. Not only do these tools cut out
tedious administration, they offer greater control and visibility over overseeing
creative projects and also streamline marketing workflow.

Mobile-Friendly Creative

Penetration of smartphones, Jio coming vigorously and data plans crashing to

rock bottom. Both smartphones and internet will become far more affordable
and creativity will be focussed on creating campaigns and solutions for brands
that amalgamate well with the mobile medium.

More Brands and Ad Agencies will go Deft to Empower More Flexibility

More businesses are moving towards a deft agile to empower them to be more
flexible in responding to a quickly evolving marketplace. Agile project
management was developed as another option to the hierarchical project
management model, which favours processes and documentation, and longer-
term development projection. Deft methodologies, then again, uses a self-sorted
out team model with more prominent flexibility in scope, face-to-face
collaboration and incremental planning to deliver projects on time and on
spending plan. In 2017, experts are hoping to see more marketers and creatives
go agile to stay competitive.

Demonetisation Wrecked Creative Decisions

Advertising depends a great deal on market sentiments. Ups and downs of the
demonetisation exercise will influence basix leadership, regardless of whether it
is advertising, branding or marketing. One can expect slight delay towards
taking riskier routes in communication. People will fall back on more attempted
and tested routes as brands won’t be willing to take riskier decisions in terms of
accepting creative ideas with ease. The first half of 2017 was more influenced

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while the second half turn to be a bit smooth.

Content Marketing Trends sees a Shift to Native Advertising, Video and

Mobile

Experts says that native advertising has gathered huge demand in 2017. With ad
blocking on the ascent, brands need to remain visible in a way that doesn’t
interrupt the online user experience. Native advertising is a paid advertising
placement that is blended seamlessly into a platform’s content so that it doesn’t
intrude the readers flow.

Video went from strength to strength in 2016 and 2017 is being proclaimed as
the year of the video. With reports demonstrating video accomplishes a
customer conversion rate of up to 60%. Customers can’t get enough of this
medium because it’s fun, simple to access and little effort is required to draw in
it. Live streaming is likewise goals giving customers a real time brand
experience and empowering brands to capitalise on a new revenue stream.

Disregard being “mobile friendly”, you’re either in or you’re out. In 2017,

smartphone use accomplished about 89% penetration. The trend for 2017 is that
brands wedge themselves firmly in the mobile space to remain relevant.

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DATA INTERPRETATION

30
DATA INTERPRETATION

(Fig 1: Growth of Advertisement sector in last 10 Years)

Data Interpretation:
The Advertisement sector had taken tremendous growth since last few years the
in the year 2005 was 15,636cr while it kept on growing and it is estimated that
the revenue generated in 2017 is approx. 61,204cr.

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 (Fig 2: Digital Advertising in India)
Data interpretation:
The digital advertising in India is ever increasing, statistics says that in 2005 the
digital advertisement sector had spends over186cr and by 2015 increased
4950cr and by 2017 increase 9490cr.

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 (Fig 3: Digital Advertising in India compared to Non Digital)

Data interpretation:
The digital advertising in India is ever increasing, statistics says that in 2005 in
1.5% and non-digital is 98.8% then 2014 in digital 7.8% and non-digital is
93.2% then 2017 in digital 15.5% and non-digital is 84.5%.

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 (Fig 4: contribution of Advertising in India in 2017)

Data interpretation:
The digital advertising in India 2017 digital 9490cr and out of home 2942cr and
cinema 672cr and print 18258cr and radio 2464cr and TV 27378cr

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 (Fig 5: Sector wise contribution of advertisement in India)

Data interpretation:
The advertising in India sector wise contribution auto sector 9%, ecommerce
sector 8%, retail sector 7%, telecom 6%, BFSI sector 5%, education sector 5%,
and others sector 23% and FMCG sector 27%

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 (Fig 6: Year wise growth of advertising in India)

Data Interpretation:
The growth of advertisement sector reached to the peak in 2010 i.e. 22.5% then
in slowed down in the following years but since 2013 it increased its pace till
the year 2015 i.e. 14.4% and slowly started to decline in the year.

36
FINDINGS

37
FINDINGS

 Riding on growing demand for smartphones and falling data prices,

digital advertising spend in the country is likely to rise to Rs 13,000 crore
($2 billion) by December 2018 at annual growth rate of 35 per cent.

 The digital ad spending is expected to witness an exponential increase

from the current level of Rs 9,800 crore due to widespread availability of
3G/4G services and the on-going surge in internet penetration in the
country. Around 50 per cent of their overall advertising spend was on
digital followed by e-commerce, telecom, technology, banking and
financial services and insurance companies.

 Advertisement plays a greater role in influencing the purchasing

decisions made by consumers. They are even known to bring about a
great shift in market shares of competitive industries by influencing the
purchasing decisions of consumers. Though advertisement can help in
influencing these factors to some extent, the personal consumer likes and
dislikes exert greater influence on the end purchase made by a consumer.

 21st century India has witnessed a gigantic customer revolution. The

economy has scaled up to a staggering $2 trillion from a mere $422
billion back in 2001. Per capita incomes are on the rise along with
the Gross Domestic Product or GDP. Some consumption segments have
managed to hold on to their high billing including mobile phones,
subscriptions and also cars. Indian advertising has naturally transformed
itself to match the changing needs and demands of the newly
emancipated population. This has impacted advertising immensely.
Services now dominate both the print and television
advertising categories and this is one of the biggest trends in the sector in
recent times. Television has heralded its dominance over all other media
platforms when it comes to advertising.

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CONCLUSION

39
CONCLUSION
 Advertising expenditure (adex) in India is likely to increase by about 12%
this year to touch Rs 61,100 crore, with television retaining its leadership
status in an industry that closely tracks overall economic expansion and
consumer expenditure in a specific geography. Advertising revenue,
which accounts for 0.38% of India’s gross domestic product (GDP), is
likely to increase at a compounded annual growth rate of 12.6% to touch
Rs 99,200 crore by 2021, according to IPG Mediabrands India.

 India’s advertising spend-to-GDP ratio trails those in the developed

economies, where domestic consumption has roughly a similar share in
total economic output as it does in the South Asian nation. In the US, for
example, long-term advertising spend has remained largely within a
narrow band — between 1% and 2% of the GDP.

 Besides traditional advertisers such as the FMCG and automobile

industries, ecommerce, payment banks, telecom services, financial
technology, content distribution platforms, and the social sector will help
drive growth.

 The goods and services tax (GST), effective July 2017, may disrupt the
adex in the short term, with the industry aligning its operations to the new
tax structure. Advertising spends on television continues to dominate the
industry, with a market share of 41%, and it will increase by 10.3%:
Advertising over the print medium is expected to grow by 5.7%.

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BIBLOGRAPHY

41
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