Professional Documents
Culture Documents
PROJECT REPORT
On
KURUKSHETRA UNIVERSITY
KURUKSHETRA
In the partial fulfillment of the Bachelor of degree of Commerce in
Advertising, Sales Promotion and Sales Management.
(Session 2010-2011)
Lecturer in Commerce
D.A.V College for Girls
The study has not been submitted to any other institution of University for the
award of any degree. If this statement is wrong I shall be personally liable the
consequences.
Hritika
B.COM IInd
ROLLNO. 20092026
ACKNOWLEDGEMENT
First and foremost I would like to convey my sincere thanks to all mighty God, and then
MISS SHIVANI PURI (lecturer in commerce) of D.A.V GIRLS COLLEGE
YAMUNANAGAR. She has been source of perpetual inspiration to me. She gently
guided and inspired me towards a bright career through my course. I was very fortunate
to have herself as my project guide. She is willing to give all kind of support and
encourage me with her valuable suggestions.
I also owe my special thanks to the Principal “MS. SUSHMA ARYA” for providing the
project title “ROLE OF ADVERTISEMENTS IN SMALL SCALE INDUSTRIES”.The
special course with the required equipment in our college. I am also thankful to MRS.
NISHI GROVER (lecturer in commerce) for helping in making this project report.
Hritika
B.COM IInd
PREFACE
The main objective of the project is familiarization with the necessary theoretical inputs
and to gain sufficient practical exposure to establish a distant linkage between the
conceptual knowledge acquired at the institute and practices those concepts.
Introduction
Introduction to Organization
Approach to study
Objective to study
Research Methodology
SWOT Analysis
Findings
Limitations
Suggestions
Conclusion
Bibliography
Questionnaire
INTRODUCTION
It has been wrongly assumed that the advertising function is of recent origin.
Evidences suggest that the Romans practiced advertising; but the earliest indication of
its use in this country dates back to the middle Ages, when the use of the surname
indicated a man’s occupation. The next stage in the evolution of advertising was the use
of signs as a visual expression of the tradesman’s function and a means of locating the
source of goods. This method is still in common use. The seller in primitive times relied
upon his loud voice to attract attention and inform consumers of the availability of his
services. If there were many competitors, he relied upon his own personal magnetism to
attract attention to his merchandise. Often it became necessary for him to resort to
persuasion to pinpoint the advantages of his products. Thus, the seller was doing the
complete promotion job himself.
Development of retail stores, made the traders to be more concerned about
attracting business. Informing customers of the availability of supplies was highly
important. Some types of outside promotion were necessary. Signs on stores and in
prominent places around the city and notices in printed matters were sometimes used.
When customers were finally attracted to the store and satisfied with the service
at least once, they were still subjected to competitive influences; therefore, the
merchant’s signs and advertisements reminded customers of the continuing availability
of his services. Sometimes traders would talk to present and former customers in the
streets, or join social organizations in order to have continuing contacts with present and
potential customers.
As the markets grew larger and the number of customers increased, the
importance of attracting them also grew. Increasing reliance was placed on advertising
methods of informing about the availability of the products. These advertising methods
were more economical in reaching large numbers of consumers. While these advertising
methods were useful for informing and reminding and reminding, they could not do the
whole promotional job. They were used only to reach each consumer personally. The
merchant still used personal persuasion once the customers were attracted to his store.
The invention of hand press increased the potentialities of advertising. By
Shakespeare’s times, posters had made their appearance, and assumed the function of
fostering demand for existing products. Another important event was the emergence of
the pamphlet as an advertising medium. The early examples of these pamphlets
disclose their sponsorship by companies want to generate goodwill for their activities.
The low cost of posters and handbills encouraged a number of publishers to experiment
with other methods.
DEFINITION OF ADVERTISING
The word advertising originates from a Latin word advertise, which means to turn
to. The dictionary meaning of the term is “to give public notice or to announce publicly”.
Advertising may be defined as the process of buying sponsor-identified media
space or time in order to promote a product or an idea.
The American Marketing Association, Chicago, has defined advertising as “any
form of non-personal presentation or promotion of ideas, goods or services, by an
identified sponsor.”
FEATURES OF ADVERTISING:
1. Advertising provides information:
The basic purpose of advertising is to provide information about products,
goods, services or ideas to perspective buyers. The details of products
such as features, uses, prices, benefits, other instructions to be followed
while using the product are given in the advertisements.
OBJECTIVES OF ADVERTISING
Each advertisement is a specific communication that must be effective, not just
for one customer, but for many target buyers. This means that specific objectives should
be set for each particular advertisement campaign. Advertising is a form of promotion
and like a promotion; the objectives of advertising should be specific. This requires that
the target consumers should be specifically identified and that the effect which
advertising is intended to have upon the consumer should be clearly indicated. The
objectives of advertising were traditionally stated in terms of direct sales. Now, it is to
view advertising as having communication objectives that seek to inform persuade and
remind potential customers of the worth of the product. Advertising seeks to condition
the consumer so that he/she may have a favourable reaction to the promotional
message. Advertising objectives serve as guidelines for the planning and
implementation of the entire advertising programme.
IMPORTANCE OF ADVERTISING
Generally, advertising is a relatively low-cost method of conveying selling
messages to numerous prospective customers. It can secure leads for salesmen and
middlemen by convincing readers to request more information and by identifying outlets
handling the product. It can force middlemen to stock the product by building consumer
interest. It can help train dealers salesmen in product uses and applications. It can build
dealer and consumer confidence in the company and its products by building familiarity.
Advertising is to stimulate market demand. While sometimes advertising alone may
succeed in achieving buyer acceptance, preference, or even demand for the product, it
is seldom solely relied upon. Advertising is efficiently used with at least one other sales
method, such as personal selling or point-of-purchase display, to directly move
customers to buying action.
Advertising has become increasingly important to business enterprises –both
large and small. Outlay on advertising certainly is the voucher. Non-business enterprises
have also recognized the importance of advertising.. Advertising assumes real economic
importance too. Advertising strategies that increase the number of units sold stimulate
economies in the production process. The production cost per unit of output is lowered.
It in turn leads to lower prices. Lower consumer prices then allow these products to
become available to more people. Similarly, the price of newspapers, professional
sports, radio and TV programmes, and the like might be prohibitive without advertising.
In short, advertising pays for many of the enjoyable entertainment and educational
aspects of contemporary life. Advertising helps to increase mass marketing while
helping the consumer to choose from amongst the variety of products offered for his
selection. In India, advertising as a profession is in its infancy. Because of this fact, there
is a tremendous scope for development so that it may be productively used for the
benefit of producers, traders, consumers, and the country’s economy.
HISTORY OF ADVERTISEMENT
Archaeologists have found evidence of advertising dating back to the 3000s BC,
among the Babylonians. One of the first known methods of advertising was the outdoor
display, usually an eye-catching sign painted on the wall of a building. Archaeologists
have uncovered many such signs, notably in the ruins of ancient Rome and Pompeii. An
outdoor advertisement excavated in Rome offers property for rent, and one found
painted on a wall in Pompeii calls the attention of travelers to a tavern situated in
another town.
Television had been introduced in 1940, but because of the high cost of TV sets
and the lack of programming, it was not immediately embraced. As the American
economy soared in the 1950s, so did the sale of TV sets and the advertising that paid
for the popular new shows. Soon TV far surpassed radio as an advertising medium.
The tone of the advertising was also changing. No longer did advertising simply
present the product benefit. Instead it began to create a product image. Bill Bernbach,
founder of Doyle Dane Bernbach in New York City; Leo Burnett, founder of the Leo
Burnett agency in Chicago, Illinois; and David Ogilvy, founder of Ogilvy & Mather in New
York City, all came to prominence in the late 1950s and 1960s and led what has been
called the 'creative revolution.' Bernbach's agency captured the spirit of the new age.
Bernbach believed that advertising had to be creative and artistic or it would bore
people. He also believed that good advertising began with respect for the public's
intelligence. The ads his agency created were understated, sophisticated, and witty.
The creative foundation established by Bernbach and others has been critical to
the success of contemporary advertising. The introduction of the TV remote control and
access to hundreds of cable channels mean that today advertising must interest and
entertain consumers or else they will simply use the remote to change the channel. New
digital devices even threaten to make it possible to edit out commercials. The
development of interactive television, combining the functions of a computer with access
to high-speed transmission over cable lines or optical fibers, will likely enable consumers
to select from a vast video library. Consumers will be able to determine not only when
they watch something, but also, to a greater extent than ever before, what they will
watch. Some industry observers believe that as consumers gain greater control over
their viewing activities, they will find it easier to avoid advertising.
Advertising Effectiveness
The objectives of all business are to makes profits and a merchandising
concern can do that by increasing its sales at remunerative prices. This is
possible, if the product is widely polished to be audience the final consumers,
channel members and industrial users and through convincing arguments it is
persuaded to buy it. Publicity makes a thing or an idea known to people. It is a
general term indicating efforts at mass appeal. As personal stimulation of
demand for a product service or business unit by planting commercially
significant news about it in a published medium or obtaining favourable
presentation of it upon video television or stage that is not paid for by the
sponsor.
Importance of Advertising
Generally, advertising is a relatively low-cost method of conveying selling
messages to numerous prospective customers. It can secure leads for salesmen and
middlemen by convincing readers to request more information and by identifying outlets
handling the product. It can force middlemen to stock the product by building consumer
interest. It can help train dealers salesmen in product uses and applications. It can build
dealer and consumer confidence in the company and its products by building familiarity.
Advertising is to stimulate market demand. While sometimes advertising alone may
succeed in achieving buyer acceptance, preference, or even demand for the product, it
is seldom solely relied upon. Advertising is efficiently used with at least one other sales
method, such as personal selling or point-of-purchase display, to directly move
customers to buying action.
Advertising has become increasingly important to business enterprises –both
large and small. Outlay on advertising certainly is the voucher. Non-business enterprises
have also recognized the importance of advertising.
The production cost per unit of output is lowered. It in turn leads to lower prices.
Lower consumer prices then allow these products to become available to more people.
Similarly, the price of newspapers, professional sports, radio and TV programmes, and
the like might be prohibitive without advertising. In short, advertising pays for many of
the enjoyable entertainment and educational aspects of contemporary life. Advertising
has become an important factor in the campaigns to achieve such societal-oriented
objectives such as the discontinuance of smoking, family planning, physical fitness, and
the elimination of drug abuse. Though in India, advertising was accepted as a potent
and recognized means of promotion only 25 years ago, its growing productive capacity
and output necessitates the finding of consumers and advertising plays an important
role in this process. Advertising helps to increase mass marketing while helping the
consumer to choose from amongst the variety of products offered for his selection. In
India, advertising as a profession is in its infancy. Because of this fact, there is a
tremendous scope for development so that it may be productively used for the benefit of
producers, traders, consumers, and the country’s economy.
CLASSIFICATION AND TYPES OF ADVERTISING
A. Pioneering Advertising:
This type of advertising is used in the introductory stages in the life cycle of a
product. It is concerned with developing a “primary” demand. It conveys information
about, and selling a product category rather than a specific brand. For example, the
initial advertisement for black – and – white television and color television. Such
advertisements appeal to the consumer’s emotions and rational motives.
B. Competitive Advertising:
It is useful when the product has reached the market-growth and especially the
market-maturity stage. It stimulates “selective” demand. It seeks to sell a specific brand
rather than a general product category. It is of two types:
A. Direct Type: It seeks to stimulate immediate buying action.
B. Indirect Type: It attempts to pinpoint the virtues of the product in the expectation that
the consumer’s action will be affected by it when he is ready to buy.
Example: Airline advertising.
Air India attempts to bid for the consumer’s patronage either immediately - direct
action-in which case, it provides prices, time tables and phone numbers on which the
customer may call for reservations; or eventually – indirect action – when it suggests
that you mention Air India’s name when talking to your travel agent.
C. Retentive Advertising:
This may be useful when the product has achieved a favourable status in the
market – that is, maturity or declining stage. Generally in such times, the advertiser
wants to keep his product’s name before the public. A much softer selling approach is
used, or only the name may be mentioned in “reminder” type advertising.
3. Functional Classification
Advertising may be classified according to the functions which it is intended to
fulfil.
(i) Advertising may be used to stimulate either the primary demand or the selective
demand.
(ii) It may promote either the brand or the firm selling that brand.
(iii) It may try to cause indirect action or direct action.
The final external factor in the planning framework concerns environmental factor
social, legal, and global. Law forbids deceptive advertising. One solution is to create
brand advertising that is vague and contains little specific information. However, such an
approach can result not only in ineffective advertising; by it can lessen the social value
of advertising by reducing the amount for useful information that it provides to society.
Thus, and advertiser who attempts to provide specific, relevant information must be well
aware of advertising regulation.
Even more difficult consideration for people involved in the advertising effort is
broad social and economic issues. Another concern is that advertising, especially when
it is more irritating than entertaining, is an intrusion into an already excessively polluted
environment. A whole set of rules is emerging to cover advertising directed at children,
and advertising for products such as alcohol and cigarettes, and the use of
environmental and health claims in advertising.
Thus advertising has a tremendous impact on international marketing and the two
concepts therefore go hand in hand and are dependent on each other.
The definition for small-scale industrial undertakings has changed over time.
Initially they were classified into two categories- those using power with less than 50
employees and those not using power with the employee strength being more than 50
but less than 100. However the capital resources invested on plant and machinery
buildings have been the primary criteria to differentiate the small-scale industries from
the large and medium scale industries. An industrial unit can be categorized as a small-
scale unit if it fulfils the capital investment limit fixed by the Government of India for the
small-scale sector.
As per the latest definition which is effective since December 21, 1999, for any
industrial unit to be regarded as Small Scale Industrial unit the following condition is to
be satisfied: -
Investment in fixed assets like plants and equipments either held on ownership
terms on lease or on hire purchase should not be more than Rs 10 million.
However the unit in no way can be owned or controlled or ancillary of any other
industrial unit.
The traditional small-scale industries clearly differ from their modern counterparts
in many respects. The traditional units are highly labor consuming with their age-old
machineries and conventional techniques of production resulting in poor productivity rate
whereas the modern small-scale units are much more productive with less manpower
and more sophisticated equipments.
Khadi and handloom, sericulture, handicrafts, village industries, coir, Bell metal
are some of the traditional small-scale industries in India. The modern small industries
offer a wide range of products starting from simple items like hosiery products,
garments, leather products, fishing hook etc to more sophisticated items like television
sets, electronics control system, various engineering products especially as ancillaries to
large industrial undertakings.
Ministry of Agro and Land Rural Industries and Ministry of SSI have been merged into a
single namely, Ministry of Micro Small & Medium Enterprises.
The President under Notification 9th May 2007 has amended the Government of India
(Allocation of business) Rules 1961, Pursuant to this amended Ministry of Agro and rural
Industries ( Krishi Evam Gramin Udyog Mantralay) and ministry of SSI (Laghu Udoyag
Mantralay) have been merged into a single Ministry, namely, Ministry of Micro Small &
Medium Enterprises ( Suksham Laghu Aur Medium Udyam Mantralay )
CONCEPT & DEFINATION OF SSI
In most parts of the world the nomenclature used is small and Medium Enterprises
(Small Scale Industries) and the citeria for defininig include the number of employees
and /or the turnover. In India the Small Scale Industry eoveks different meanings for
different agencies and the financial institution. For example for the purpose of excise
and sales Tax Exemption, the turnover alone is the determinig criterion. However in
broder terms, currently, an SSI is defined in terms of investment ceiling on the original
value of instlled plant and machinery.
7.65 The small scale sector has played a very important role in the socio-
economic development of the country during the past 50 years. It has significantly
contributed to the overall growth in terms of the Gross Domestic Product (GDP),
employment generation and exports. The performance of the small scale sector,
therefore, has a direct impact on the growth of the overall economy. The performance of
the small scale sector in terms of parameters like number of units (both registered and
unregistered), production, employment and exports is given in Table 7.15. 7.66 During
the one year period i.e., 2000-01
The definition for small-scale industrial undertakings has changed over time.Initially they
were classified into two categories- those using power with less than 50 employees and
those not using power with the employee strength being more than 50 but less than 100.
However the capital resources invested on plant and machinery buildings have been the
primary criteria to differentiate the small-scale industries from the large and medium scale
industries. An industrial unit can be categorized as a small- scale unit if it fulfils the capital
investment limit fixed by the Government of India for the small-scale sector.
According to 2001 census, Small scale industrial units are those engaged in the
manufacture, processing or preservation of goods and whose investment in plant and
machinery (original cost) does not exceed Rs.1 crore. These would, inter alia, include
units engaged in mining or quarrying, servicing and repairing of machinery
Small Scale Industries are located throughout the country, though predominantly in the
rural areas. The small scale industries in the rural areas are skill based, wherein the skill
for manufacturing is passed on from one generation to another. Some of the goods
manufactured in these units are textile handicrafts, woodcarving, stone carving, metal
ware etc. Small scale industrial factories are also present in urban areas and usually
they account for the maximum volume of production for that particular good.
For e.g. Ludhiana in the state of Punjab is the main center in the country for producing
woolen hosiery, sewing machine parts, bicycles and its parts, similarly Tiruppur in Tamil
Nadu accounts for small scale firms that are involved in spinning, weaving and dying of
cotton garments.
The importance of cottage industries in the Indian economy was first understood by our
first prime minister Jawaharlal Nehru. The development of such small scale industries
infused much needed production efficiency into the rural Indian economy. The Cottage
Industries also helped the agricultural workers to have a better quality of life. This is due
to the additional profits generated by the farming community.
Khadi and handloom, sericulture, handicrafts, village industries, coir, Bell metal
are some of the traditional small-scale industries in India. The modern small industries
offer a wide range of products starting from simple items like hosiery products,
garments,leather products, fishing hook etc to more sophisticated items like television
sets,electronics control system, various engineering products especially as ancillaries to
large industrial undertakings.
IntroduCTION
Steel measuring tapes are used for measuring length or distances. There are
number of measuring devices available for different purposes for instance steel
measuring tape, tailors measuring tape, measuring scale wooden and steel rulers and
soon steel measuring tapes are used for measuring length or distances. These are hand
items being encased in rolled form. As this is a small compact item, it can be easily
carried from place to place in a pocket or small bags. For sturdiness and easy handling
in outdoor activities such as on construction sites or sports fields or factories executives
prefer to have this item in their pockets. These measuring tapes are available in various
lengths from 1 metre to 30 meters.
Since the dawn of civilization, metals and materials have played a keyrole in the
life of man without effective utilisation of metals and materials the spectacular
engineering achievements of the present age would not have been possible.
Tremendous developments have of late, taken place in the production of ferrous and
non ferrous metals and their innumerable alloys and this ‘materials explosion has now
reached astonishing levels compared with the 19th century, when only 20 odd materials
were in industrial use and many which were unheard of or were mere scientific
curiosities then, have now made important contributions to the advancement of
technology.
Measuring tapes are frequently used in land measurement, wall and floor
measurements. In construction of buildings, it has its unique importance keeping in point
of view as easy handling due to it is in form of rolls compacted in a circular case. It also
has wide scope in engineering applications.
Carbon Potentiometers
Introduction
Auto Pistons
Introduction
Gravity casting in Aluminium alloy is popularly used for casting of Piston. These
engineering piston are used in automobile industries. The technique has advantages
when a component is required in large quantities. However in automotive applications,
properties and durability are of primary importance. Therefore, it is essential that the
best design should be used and optimum casting techniques with minimum cost should
be adopted. Gravity Die Casting products are used in domestic as well as international
automobile industries.
Piston is a solid or hollow disc like plunger fitting closely in a bore of a cylinder
into which it reciprocates from Top Dead Centre (TDC) to Bottom Dead Centre (BDC)
and in the process imparts motion to the vehicle.
Piston ring is a metallic ring of C.I., wrought iron, steel or gun metal etc. Cast iron
piston rings are preferred for IC engines. Piston rings are used as the peripheral part of
the piston. Rings offer a steam-tight or gas-tight joint between cylinder wall and piston.
This arrangement saves leakage of burnt/half burnt fuel mixture and increases
piston’s efficiency to impart motion.
Depending on piston size, engine capacity etc, the size of piston rings use in
automobile engines is wide and varied. Every auto-engine uses these essentially in
varying numbers and as compression ring, oil-control ring or spare ring.
The use of piston rings reduces the piston weight, improves engine performance,
restricts road-pollution and saves the other parts of the engine from damaging.
Wafer Biscuits
Introduction
The Indian bakery industry is dominated by the small scale sector with an
estimated 50,000 small and medium-size producers, besides the 15 units in the
organised sector. Apart from the nature of the industry which gravitates to the markets
and caters to the local tastes, the industry is widely dispersed also due to the
reservation policies of the government.
The two major bakery products, biscuits and bread, account for 82% of all bakery
production. The unorganised sector accounts for about two-thirds of the total biscuit
production estimated at 1.3 mn tonnes. It also accounts for 80% of the total bread
production, which is estimated at 1.5 mn tonnes and around 90% of the other bakery
products estimated at 0.6 mn tonnes. The last includes pasteries, cakes, buns, rusks
and others.
Biscuit is estimated to enjoy around 37% share by volume and 75% by value of
the bakery industry. The organised sector caters to the medium and premium segments,
which are relatively less price-sensitive. The organised sector is unable to compete at
the lower price range due to the excise advantage enjoyed by the informal sector.
The organised segment in biscuits has witnessed a steady growth of about 6%,
conforming broadly to the growth rate of GDP. The production crossed the one-million
tonne mark in 1995-96 which has now grown by estimated 30%.
Bakery industry in India is the largest of the food industries with an annual
turnover of about Rs. 3200 crores. India is the second largest producer of biscuits after
USA.
The quantities of bread and biscuits produced are more or less the same.
However, value of biscuits is more than bread. The industry largely continues to be in
the unorganized sector contributing over 70% of the total production. Bakery products
earlier considered as sick man’s diet, have now become an essential food items of
the vast majority of population. Though bakery industry in India has been in existence
since long, real fillip came only in the later part of 20th century. The contributing factors
were urbanization, resulting in increased demand for ready to eat products at
reasonable costs.
Introduction
Cement Concrete tiles are products made out of Cement Concrete. These are
available in many designs, colours and surface effects and their usage has also
increased tremendously.
Cement concrete tiles and paving blocks are precast solid products made out of
cement concrete. The product is made in various sizes and shapes viz. rectangular,
square and round blocks of different dimensions with designs for interlocking of adjacent
tiles blocks. The raw materials required for manufacture of the product are portland
cement and aggregates such as sand & stones ships which are available in local
market.
Market Potential
In India, Europe & China, the per capita consumption of ceramic tiles in India is 1.01
sqm.p.a. and that that of China is 1.22 sq.m. p.a., other European Countries are 5-6
sq.m. per person p.a.
Tomato Products
Introduction
Introduction
As the name implies, these power transmission belts have the V-belt cross
section. They have various advantages over flat belts e.g. compactners, quite operation,
non slipping grip between belts and sleeve, absorption of shocks grip between belts and
sleeve, absorption of shocks, smooth starting cleanliness, long service life, low cost and
light bearing loads. The internal structure of standard V-belts varies. Cords are the
“back bone†of V-belts. They are located in the upper wide portion. These cords
in the best belts are impregnated and embedded in a rubber compound which reduces
friction between individual strands or fibres and retards heat build up. This is known as
cushion rubber. This is embedded in a mass of solid rubber; it is known as core. Core is
the belt that improves flexibility and increase shock absorption.
V-belts are specially useful for silent drive between short centre distances and
are used for fractional horsepower drives for domestic appliances and for automatic fan
belts. They come in five standard sizes A, B, C, D, E. The top width of A is 12.7 mm (1/2
in) and that of E is mm (1) and the thickness varies between the different sizes. When
power transmitted is heavy multiple belts are used in pullies having a number of grooves
as required. More recently, premium industrial belts known as 3V, 5V and 8V belts or
wedge type belts have been introduced. In these the ratio of depth to the top width is
greater than in the standard sections, giving a more compact drive. These constructions
are made possible by the use of high tenacity materials such as polyester cord.
The role of Advertising in Small Scale Industry
The role of advertising can be studied by referring to its advantages in different areas.
For e.g., advertising acts as a medium of communication with the consumers. It
educates guides and persuades them in the right direction. It is also important to note
that advertising widens market and facilitates large scale production of goods and
services. In addition, advertising creates employment opportunities in the field of
advertising and in other fields also (production, distribution of goods and services). It
facilitates the process of economic growth and globalization of business. Finally,
advertising raises the standard of living of people. It encourages market competition
which again leads to product innovation, improvement in the quality and more benefits
and satisfaction to consumers. All such benefits indicate the importance and the positive
role of advertising. Advertising offers advantages or special benefits to different social
groups such as consumers, traders, producer, retailers and advertising media. Such
benefits also suggest the importance and constructive role of advertising in modern
business. All these things proves the importance and a great need of advertising in
globalised market.
Indian advertising industry has been growing at an unprecedented speed, and
thankfully big fishes of the Indian Industry like Unilever, Proctor and Gamble, Cadbury,
Vodafone, Nokia and Asian Paints to name a few are making most of it. On the other
hand, though Indian Small Scale Industries comprise a large part of the Indian business
environment they are pretty wary when it comes to investing in advertising. Indian Small
Scale Industries, more often the not, resort to small-tactical efforts and focus on brand
building at the micro level.
Not with standing the mindset of Indian Small Scale Industries, it is imperative to
highlight the fact that every big fish today was a small fish not so long go. For the
starters, the first registered brand was ‘Sunlight’ by William Hasketh Lever in 1880s. The
man with a vision introduced branded soap when homemade products were used both
for washing themselves and the laundry. He initially created a silent commercial for the
brand in 1907 then went on to launch a series of advertisements to create demand for
his product. The small fish of the yore has morphed into a blue whale called ‘Unilever’ –
a renowned brand with massive advertising spends.
Closer home, we have we have few examples like Zodiac. In 1961, Zodiac try to build a
premium brand of ties via advertising and today the company has ventured into ready-
wear and has made its existence felt in highly competitive and crowded Indian market
place. As aforementioned Indian brands like Nirma, Moov, Fevicol have put faith in
advertising and reaped in huge benefits, while few others have managed to keep the
competition at bay. However, such cases can be counted on the finger tips. On a
broader level, Indian Small Scale Industries avoid spending big time on advertising.
Probably the fault lies with both the companies and the advertising industry per se.
The Indian entrepreneur is very different from his western counterpart. Indian
entrepreneur is happy focusing on the local markets and don’t believe in building a
national brand. They don’t dream big and lay cocooned in their own safe little world.
The orthodox mindset prevents them from aiming high and consequently they look upon
advertising as an expense rather than income. When the dreams are small, the question
of advertising big time never arises. Moreover, Indian businessmen believe more in
relationship-building and pushing the product into the market rather than dealing directly
with the consumers and drive sales. Further, the Small Scale Industries don’t believe
much in the power of branding. And if at all, they get involved, they don’t have a long
term picture in mind rather opt for short term advertisements.
In more than one ways, one can simply pass the buck on the advertising industry for the
sorry state of affairs of the Small Scale Industries. The industry never ever took pains to
make the Small Scale Industries understand the value of advertising. Perhaps the boom
in the last two decades, which aided easy flow of money from big companies to the ad
industry made the industry pretty indifferent to the needs of Small Scale Industries. And
to rub salt on the wounds, the big agency models never suited the needs of the Small
Scale Industries as the commission and the retainer fee compensation models are
petrifying. Consequently, Small Scale Industries end up doing local advertisements with
the involvement of local players and so there is no conscious brand-building exercise
involved.
Moving forward, one cannot deny the fact that Small Scale Industries are the next big
thing. The evolution of the Internet medium may turn out to be the light at the end of the
tunnel for the SME industry. Branding and advertising on the internet can be done at
viable rates and that too at the targeted audience. Nonetheless, for this to happen the
Small Scale Industries have to expand their vision and have the will to invest
In 1989, a small time glue manufacturer thought of advertising his product on television,
though its use was only in smaller proportions. Today the brand has created a niche for
itself and it’s well-known by the name of ‘Fevicol’.
Word of mouth is excellent small business advertising – but it’s slow, and may be
practically non-existent for new businesses. If you want to grow your customer base
more quickly, you have to advertise.
This collection of small business advertising ideas presents both the tried and true and
advertising ideas you may not have tried yet – advertising ideas for your small business
to effectively reach your target market and attract new customers.
2. Newspaper advertising.
Besides box ads and advertising inserts, local newspapers also often offer special
advertising features showcasing particular businesses – all powerful small business
advertising opportunities. Don’t overlook special interest newspapers as an advertising
idea if they exist in your area. They may be delivered to exactly the audience you want
to reach.
3. Direct mail.
Direct mail can be very effective small business advertising – and is much more
favorably received than other direct marketing media, such as email or telemarketing.
And even if you don’t have a mailing list, you can still geographically target your mail.
4. Magazine advertising.
This advertising idea can be a very effective way of reaching a target market. The trick is
to choose the magazines or e-zines that best match the market you’re targeting.
5. Business cards.
Business cards are a valuable promotion tool. No business person could live without the
convenience of having a business card to hand to prospective clients or customers.
Handing out a business card is so much easier than writing out all your contact
information for a person you've just met.
But most business cards only do half the marketing job. Think about what you do with
the business cards people give you. If you're like me, they go into a pile in a drawer. If
you're more organized, maybe they go into a card file. In either case, the business cards
just sit there, out of view, and probably out of mind. What a waste!
Why not turn your business card into a marketing vehicle by making your business card
visible? Instead of the traditional business card, get your contact information printed on
something that people might leave in plain sight; something that will remind them of you
and your services or products whenever they look at it.
You can get information printed on just about anything now. What about using
something like fridge magnets instead of the standard business card? What do people
do with fridge magnets? Put them on their refrigerator in their kitchen - a place the family
frequents, where they'll see your contact information (and marketing message)
countless times a day!
Message pads, coasters, mouse pads - your choice of business card marketing vehicle
is limited only by your imagination. My cat's veterinarian hands out palm-sized calendars
with magnetic backing as business cards, something that most people are guaranteed to
hang up in plain view.
Remember, most business cards just sit in a drawer, doing nothing until or unless
someone bothers to dig them out. And if there's nothing to remind them of you, why
would they bother to dig out your business card? Making it easy for people to remember
(and call) you by using a more unique 'handout' item as a business card is a smart
investment.
7. Vehicle advertising.
The reason you see so many vehicles emblazoned with advertising is that it works;
vehicle advertising is very visible small business advertising. If you’re not ready for
custom graphics or a magnet quad sign that sit atop your vehicle, go for a magnetic sign
that you can take off when you want.
Advertising Ideas You May Not Have Tried Yet
9. Cable TV advertising.
So you can’t afford to advertise your business during the Super Bowl. That doesn’t
mean you have to miss out on the household reach of TV. Cable TV companies offer
advertising ideas within the budget of small businesses, from advertising on the TV
Guide Listings or Real Estate channels through running infomercials.
Positive Effects
1) Advertising helps in increasing sales by informing more and more people about
Negative Effects
1. Hidden Costs
You should know that advertising costs lots of money and that money comes from you -
the consumer. When you buy a product, you pay for the product itself, which means its
packaging, costs of the development, the machinery, the facility where the product has
But what you probably don’t know is that by buying some product, you also pay for that
its advertising as well. While it’s logical to pay objective costs, such as package or
production, it’s not understandable why pay company to tell us about the product we
already bought.
2. Lying to Customers
Advertisers know that they cannot outright make false claims, because any claim they
make must be supported by some kind of statistic, according to the law. However,
Advertisers can and often do bend and curve the truth for their own benefit and in order
Company can exaggerate certain features of their products or they can make vague and
ambiguous claims that sound good. Of course any negative features of the product
who spends days in front of TV screen and watch aggressive and false advertising in
But, in order to hypnotize mass population, companies need to create trends that
customers will follow. This is the true purpose of advertising today. Advertisers have
found out that if they make a product, and make customers believe that their product will
make them happy, sales will skyrocket. To fulfill that, advertisers must bombard
customers with images and false claims for hours every day patiently, until people start
4. Censorship
Advertisers want their ads shown on certain stations or websites that have certain
content, because they want to attract a certain audience. Most mass media mediums
have become nothing more than vessels for advertising, which means that advertising
and companies that use it have become a powerful force as far as censorship. But, how
can advertising censor a television network’s programming? If you have a popular prime
time show that’s a bit ‘sketchy’ toward certain things or views, that can be an obstacle or
popular brand product that want prime time advertising in that show. Producers will ever
say: “Heck with the commercial!” Instead they will ask show writers to rewrite sketchy
That basically means that our precious moments of fun or enlightenment are often
replaced with long and boring commercial blocks, which basically means subtle
censorship.
5. Degradation of Art
The last negative effect of advertising presented in this article I want to discuss is the
complete degradation of some forms of art. No more creativity on TV. Everything you
Actors present you new products you should by. Models look more beautiful and
younger with new makeup that you should - guess what – buy. You watch 90 minutes
movie, but it’s extended to two hours because of commercials. Football game is 30
Another problem are totally unimaginative commercials, made for zombies. They’re
mostly not funny, not creative and they lack even smallest trace of art.
With so much money in their pockets, great corporations make fools of themselves
But they still occupy our precious time for fun and enlightenment.
2. Small scale industries can be characterized with the special feature of adopting the
labor intensive approach for commodity production. As these industries lack capital, so
they utilize the labor power for the production of goods. The main advantage of such a
process lies in the absorption of the surplus amount of labor in the economy that was not
being absorbed by the large and capital intensive industries. This, in turn, helps the
3. It has been empirically proved all over the world that Small Scale Industries are
adept in distributing national income in more efficient and equitable manner among the
various participants in the process of good production than their medium or larger
counterparts.
5. This industry helps the various sections of the society to hone their skills required for
entrepreneurship.
6. Small Scale Industries act as an essential medium for the efficient utilization of the
Besides, small-scale producers lack good quality control in their operations. In this
respect, they rely mainly on replacing faulty products instead of developing good quality
control system (Onwuchuruba 2001)
Only very few Indian small manufacturers are aware of the nature of competition facing
them. They estimate their success only through sales revenue without considering also
their market share. Even, some do not know their market segments on which to focus
their operations.
Piercy (182) has emphasized the importance of good stockholding, transport, and
distribution for enhancing commercial success. Many of our small manufacturers do not
have properly defined criteria for appointing their product distributors. They rely mainly
on trust created through relationships between the owners of the companies and the
distributors. These relationships are in form of fathers and mothers, brother and sisters,
friends and in-laws etc. This relationship often ends up in running the business down.
High costs of vehicles and poor roads are also affecting the operations of small
manufacturers in their efforts to move finished products down to consumers in both rural
and urban areas. They have a complex channel of distribution with many layers which
go to push the prices of their products higher. Besides, small manufacturers pay little
attention to the promotion of their products. Advertising and other methods of promotion
are not adequately used. There is no other way of creating awareness of their
innovations and stimulating consumers to action than promotion. Even, many of them do
not participate in trade fairs and exhibitions. This also inhibits their growth and ability to
compete with larger companies.
In a developing country like ours with low income and high level of poverty, a company
that wants to succeed should offer its product at the price the consumers can bear. But
often, small manufacturers set prices of their products arbitrarily without regard to this
peculiar consumer characteristic in our environment. Since they do not have clearly
defined criteria upon which to base their prices, they always seek to maximize profits at
short runs without having a long-term view of their businesses. Farah (1980) cautions
the United States car firms on setting high prices if they wish to succeed in markets
around less developed countries due to low income and high level of poverty in the
areas.
APPROACH TO STUDY
OBJECTIVES
1. To study the Role of Advertisement in Small Scale Industries.
2. To know about the various types of advertising.
3. To study the various types of Small Scale Industries.
RESEARCH METHODOLOGY
Research methodology has many dimension, it includes not only the research method
but also consists the logic behind the methods used in the contxt of the study and
explains why only a particular method of technique had been used so that search lend
themselves to proper evaluation. At the outset may be noted that there are several ways
of studying and tacking a problem. The formidable problem that follows the task of
defining the research problem is the preparation of the design of research project
popularly known as research design.
More explicitly the designing decision happened to be in respect of following:
• What is study about?
• Why is study being made?
• Where will the study be carried out?
• What type of data is required?
• What will be the sample design?
• What period of time will the study include?
• How will the data be analyzed?
• In what style will the report will prepared?
The purpose of this section is to describe the research procedure. This gives the
researcher sufficient support to give his argument for opting certain alternatives and to
justify his position. Research methodology is a way to systematically solve the research
problem. It include all those steps that are generally adopted to solve the research
problem.
IT GENERALLY INVOLVES
DATA COLLECTION:
The task of data collection is being after a research problem has been defined and
research designed/plan chalked out. Data collection is to gather the data from the
population. The data can be collected of two types:
• Primary Data
• Secondary data
PRIMARY DATA are those which are collected afresh and for the first time, and thus
happened to be original in character. Methods of primary collection are as follows:
Questionnaire
SECONDARY DATA is being search sites like magazines, newspapers, journals,
websites and the data has been collected through other approaches.
: Haryana
SAMPLING UNIT
Data have been collected through the survey method while surveys have been
conducted in one city:
1. Yamuna nagar
2. Haryana
The data collected was both from the primary and secondary source. The primary data
was collected through questionnaires and was collected personally.
The secondary data was collected through books, magazines, company website and
other websites. All the area had segmented according the population of this area. I have
considered 100 as sample size.
Yes 50%
No 50%
Yes
No
50% 50%
Interpretation: 50% respondents said that the SSI use to advertise and 50%
respondents said that their SSI does not advertise.
Satisfied 70%
Not Satisfied 30%
30%
Satisfied
Not Satisfied
70%
70% respondents are satisfied with the advertisement of the product, whereas 30% are
not satisfied.
60%
50%
50%
40%
30%
30%
20%
20%
10%
0%
Electronic Media Print Media Both
30% respondents suggest for electronic media, 20% suggest print media and 50%
suggest both media for advertisement to reach the maximum crowd.
Good 70%
Average 30%
Poor 0%
80%
70%
70%
60%
50%
40%
30%
30%
20%
10%
0%
0%
Good Average Poor
70% respondents rated the quality of their product as good, 30% rated as average and
no respondents said against the product they are selling.
0%-5% 20%
5%-10% 50%
10%-20% 20%
More than 20% 10%
60%
50%
50%
40%
30%
20% 20%
20%
10%
10%
0%
0%-5% 5%-10% 10%-20% More than 20%
The majority of respondents i.e. 50% said that 5-10% of net profits should be utilised
towards advertisement, 20% said 0-5%, 20% said 10-20% and only 10% said more than
20%.
Q.6: Do you agree that sponsoring an event or program is more effective than regular
advertisement?
40% respondents strongly agree that sponnsering an event or program is more effective
than regular advertisement, 10% agree 20% disagree and 30% strongly disagree.
SWOT ANALYSIS
Strengths
The strengths component of the analysis should identify the advertising industry’s
internal strengths, such as where the industry excels compared to other industries, and
how it is maximizing its physical resources and personnel. For example, this section
may list low staff turnover, high staff morale, low overhead, high profit margins, multiple
revenue streams, product and service diversification and a sustainable business model.
Weaknesses
weaknesses, such as where improvements need to be made and where physical and
human resources are not being maximized. For example, this section may list low client
aging employee base. These examples may not apply to all advertising agencies, but for
industry.
Opportunities
The opportunities component should list how the industry could grow or expand. The
items listed in this section tend to be environmental factors that can be leveraged by the
previously listed strengths. For example, opportunities may include rising marketing
budgets, large client bases, a growing economy, a larger number of media outlets, lower
advertising rates or new advertising mediums. It’s important to note that these examples
are listed as opportunities, but some could also be listed as threats, depending on the
Threats
The threats listed on a SWOT analysis should list the external elements of the
advertising industry where the industry could potentially be harmed. The features listed
here should be areas of the industry where outside forces could possibly harm current
growth or even harm the status quo. For example, threats listed could include a
shrinking economy, less demand for marketing services, higher health care costs or a
Sample size restricted to 100 only which was very less according total
population.
Survey is a time consuming process but the time to collect the data for
research was very less.
Sometimes the respondents are not willing to fill the questionnaire and
hence the resultant may not be correct.
Advertisement should be according to the product and its suitability with different
age groups.
Conclusion
www.google.com
www.mbaguys.com
www.wikipedia.com
Questionnaire
Yes No
Yes No
Good Average
Poor
0%-5% 5%-10%
10%-20% More than 20%
Q.8: Do you agree that sponsoring an event or program is more effective than regular
advertisement?