rajesh asm
TRANSCRIPT
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INDEXSR.NO. DESCRIPTION
1. PREFACE
2. ACKNOWLEDGEMENT
3. INFORMATION ABOUT EXECUTIVE & LISTS OF
CLIENTS
4. INFORMATION ABOUT OF NEWSPAPER
5. MECHANICAL DETAILS OF NEWSPAPER
6. HISTORY OF ADVERTISING IN INDIA
7. TYPES OF ADVETISING AGENCIES
8. ROLE OF ADERTISING IN MODER BUSINESS WORLD
9. FUNCTION OF ADVERTISING
10. STEPS INVOLVED IN ADVERTISING PLANNING
11. THE BENEFITS & HARMS OF ADVERTISING
12. SOCIAL CRITICISM OF ADVERTISING
13. OBJECTIVE OF ADVERTISING
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14. COMMUNICATION EFFECTS OF ADVERTISEMENTS
15. ADVERTISING STANDARDS COUNCIL OF INDIA (ASCI) CODE
16. SIGNIFICANCE OF ADVERTISING
17. THE COMPONETS OF AN ADVERTISEMENT
18. ADVERTISING COPY
19. MARKETING MIX
20. ABOUT OF THE COMPANY
21. HEAD OFFICE
22. CONCLUSION
23. CLOSIN
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Preface:
Bachalar of commerce is popular as the students
have a realized that has good chances to progress in
business word. It related awareness about the
industrial and economic environmental and business
practices by developing practical knowledge throat
study of management
In 1st year of B.com a student is supposed to
undergo practical training. Period for summer
internship program in 1 month and student has to
prepare a detailed report for the topic assigned
To aim in the field of elective subject of the
student. It tries to bridge the gap between
theoretical and practical studies of management. Thus
for formularize or understanding appropriate business
strategies, it is necessary to have a proper knowledge
of the corporate world.
The project helps the student to better
understand that no matter which industry; the low of
survival of the fittest applies in all walks of
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life. It helps to students of B.com to get a better
understanding of low the practical corporate world
function and thus helps them to become better & more
competitive in future.
Advertising is above all a drives product and
services towards the consumer advertising help to
drive the consumer towards product at the point of
sales. Unless this happens there can be no hope of
making a profit from the product or achieving success
for the business.
Advertising parts of the progress of
society. New product and techniques for reaching and
motivating consumers and constantly emerging and
developing.
This project report is based on advertisingsales, promotion and sales management as my newspaper
subject. Chandres advertising company had been
selected me for the purpose of summer training
program.
In Industrial training, I put my all work
with great sincerely as per requirement of the
subject. I take up the challenge with this field
has placed before me and hope sucked with
guidance and faculties.
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I heartily thank to Mr.satyentra vyas the executive
director of chandreshad advertising. who give me a
chance to complete my project work in time.
I am also thankful to Mr.Ramanbhai shah (chief
accountant) and also thankful to Mr.Yashwant talati
(media manager) who helped me to complete my project
report and I ma very much thankful to them as they have
give me full response and help.
I am a student of the B.J.V.M.commerce College
also thankful to our principal N.L.shanghvi. Who was
provided an opportunity to get a practical training.
Lastly, thankful to my prof. Miss.Bhumika madam
who have brought up to this stage and have given enough
knowledge to get practical training.
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The word advertising comes from the Latin word
advetere meaning to turn the mind to word the
word advertisement first appeared around 1665, A.D. it
used in the bible. To indicate notification or
warring. By 1660 it was used as a heading for
commercial information by store keepers
Advertising is a purchased publicity directed
according to a definite plan to secure, maintain and
increase the distribution and the consumption of the
production.
-P.WHITE
Advertising is a salesmanship in print.
- LASKER
The most community used and accepted definition of
the advertising is given by the mericon
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Marketing association it as defined as any paid
form of non-personal presentation and promotion of
ideas, goods or service by an identified sponsor.
Advertising is a form of message communication and
presentation. There are two types of selling oral selling
and printed selling oral salesmanship deals ordinarily with
one person at a time; printed salesmanship deals with many
people at one time.
The former is individual selling, while the
letter is mass selling, under salesmanship we have
dealt with personal selling and now shall turn our
attention to consider printed salesmanship which, in
other words, means advertising.
The word advertising is derived from let in word averter which
means to turn (the mind) to broadly Speaking, advertising does
turn the attention of the public to s commodity or service and in
the broad sense it might he said that anything that turns
attention to an article or anything that turns attention to an
article or service might be called advertising.
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Newspapers are considered to be the most authentic means of
communicating facts and vital information to a large number of
people. The newspapers in India since a long time have been
synonymous with the morning tea. In fact the beginning of the day
in India seems incomplete without a flip through the newspaper.
The first newspaper in India was published in 1605. Since then
there has been no looking back of the newspapers. Even in the time
of television, Internet, radio and mobile phones....newspapers
have not lost their significance and still remain the most sought
after means of communication for the masses. The newspapers
consist of current news related to political events, crime,
business, sports, entertainment, culture and opinions.
Newspapers
y Daily Newspapersy Weekly Newspapersy National Newspapersy International Newspapersy Local Newspapers
English Newspapers in India
y Hindustan Timesy The Times of Indiay The Asian Agey Deccan Chronicley Deccan Heraldy The Hinduy The Pioneery The Telegraph
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y The Indian Express
This is a list of the top 30 newspapers in India by daily circulation. These
figures are mainly compiled by the Audit Bureau of Circulations. Some
newspapers whose circulation figures are under dispute do not appear on this
list. Figures in Millions[2]
Sr. Newspaper Language City, State
Daily
Circulation
1The Times of
IndiaEnglish Various cities and states 3.146
2 Dainik Bhaskar Hindi Various cities and states 2.547
3 Dainik Jagran Hindi Various cities and states 2.168
4Malayala
ManoramaMalayalam
Various cities in Kerala
and a few other cities1.514
5 The Hindu English Various cities and states 1.360
6 Eenadu Telugu
Various cities in Andhra
Pradesh and few other
cities
1.350
7 Deccan Chronicle English Various cities and states 1.349
8Ananda Bazar
PatrikaBengali Kolkata, West Bengal 1.277
9 Amar Ujala Hindi Various cities and states 1.230
10 Hindustan Times English Various cities and states 1.143
11 Hindustan Hindi Various cities and states 1.142
12 Sakshi TeluguVarious cities in AndhraPradesh and major cities
in India
1.256
13 Mathrubhumi MalayalamVarious cities in Kerala
and a few other cities1.077
14 Gujarat Samachar Gujarati Ahmadabad, Gujarat 1.051
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15 Punjab Kesari Hindi States of Punjab, Haryana .902
16 Dinakaran Tamil
Various cities in Tamil
Nadu and a few other
cities
.901
17 Sakaal MarathiVarious cities in
Maharashtra.879
18 Dina Thanthi Tamil
Various cities in Tamil
Nadu and a few other
cities
.854
19 Divya Bhaskar Gujarati Ahmadabad, Gujarat .840
20 Aaj Hindi Varanasi, Uttar Pradesh .748
21 The EconomicTimes
English Various cities and states .651
22 The Telegraph English Various cities and states .465
23 DNA English Various cities and states .400
24 Prajavani Kannada Karnataka .364
25The New Indian
ExpressEnglish Various cities and states .309
26 Deccan Herald English Various cities and states .214
27 Udayavani Kannada Karnataka .185
28 The Statesman English Various cities and states .172
29The Hindu
Business LineEnglish Various cities and states .163
30Business
StandardEnglish Various cities and states .144
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After passing you examination, suppose you want to start a small
restaurant in your locality. You have sufficient space and
required funds and skill to run it. But, how will people come to
know about your restaurant? Unless people know about it who is
going to come to your restaurant?
Are you able to think what you should be doing to make people
aware that there is a restaurant?
Actually, if the quality of food and cleanliness of the restaurant
is good, it can attract some people. But you must also take some
measures on a continuous basis to make people aware about the
location of your restaurant, the quality and variety of food
available there, so that you can get customers regularly. In fact,
every businessman engages in this activity of making people
Aware about his products and services so as to increase his
sales. Let us learn more about this
Activity in this lesson.
ObjectivesAfter studying this lesson, you will be able to:
explain the meaning of advertising;
describe the objectives of advertising;
identify various media of advertising; and
suggest the suitability of each media of advertising.
Meaning of AdvertisingIn a newspaper you not only read news on current affairs, sports,
etc., but you also come across
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several information or message about some products or services
like air conditioners, cycles,
hair oils, transporters, builders, etc. You also come across such
information in journals, magazines,
roadside hoardings, radio, television, etc. These informationsmake you aware about the products
or services in terms of their availability, price and features.
So, whenever you feel a requirement
for such products or services you try to go to the place of their
availability, look at the quality and
features and buy them if they meet your requirement. For example,
while listening to radio you
come across a product called Bajaj Almond hair oil. Then while
going to buy a hair oil you ask
the shopkeeper to show you that product. You like the fragrance
and find the price reasonable
and purchase it for your use. There can be many such examples of
different nature, like a builder
selling flats on installment basis, a shopkeeper giving discounts,
a new product being launched by
a manufacturer, so on and so forth. It is obvious that the very
purpose of giving such informationis to make the customers aware about any product or service and
induce them to buy it. Therefore,
it is always the manufacturer, the trader or the service provider
who wants to give such information
to attract customers for promoting his sales. This entire
promotional activity is called advertising,
where the manufacturer or the trader or the service provider is
called a sponsor or advertiser; the
message or the information supplied is called advertisement and
the medium through which such
Information is supplied like journal; magazines, hoardings,
television etc. are called the media of
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Advertising.
Definition of Advertising
The American Marketing Association defines advertising as any
paid form of non-personal presentation and promotion of ideas,goods and services by an identified sponsor. Advertising
Is non-personal as it is not directed to any single individual.
Secondly, the sponsor i.e. the manufacturer or producer is
identified as his name and address is always contained in an
Advertisement and he also bears all the cost involved in the
process. Thirdly, the producer can also promote an idea regarding
quality, design, packing and pricing, etc. of any product or
service.
Thus, we can say, advertising consists of all activities involved
in presenting a sponsored message regarding a product, service or
an idea.
Features of Advertising
By looking into the meaning and definition of advertising we can
sum up the following features of Advertising.
(i) Non-personal presentation of message In advertising there isno face-to-face or direct
Contact with the customers. It is directed to the prospective
buyers in general.
(ii) Paid form of communication-In advertising the manufacturer
communicates with prospective
Customers through different media like, newspapers, hoardings,
magazines, radio, television,
etc. He has to pay certain amount for using some space or time inthose media.
(iii) Promotion of product, service or idea Advertisement
contains any message regarding
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any particular product, service or even an idea. It makes people
aware about the product
and induces them to buy it.
(iv) Sponsor is always identified The identity of the
manufacturer, the trader or the serviceprovider who issues advertisement is always disclosed.
(v) Communicated through some media- Advertisements are always
communicated through
use of certain media. It is not necessary that there will be just
one medium. All the media
may also be used.
Objectives of Advertising
You have learnt that the main purpose of advertising is to
communicate massage or information to
the customers. But while communicating such message or information
it also serves purposes
beneficial for the sponsor or advertiser. Let us look into the
various objectives of advertising.
i. To educate customers
Can you remember the advertisement of Dandi Namak on television?
In this advertisement
it is said that Dandi Namak is good for health as it containsIodine. This message educates
you that iodine is good for health and Dandi Namak contains
iodine.
ii. To create demand for new product
You read in newspaper that a new type of pen called Gel pen is
introduced in the market,
which is very economical and convenient in writing. This motivates
you to buy the said pen.Similarly, many students like you shall also buy gel pen after
coming to know about it through
advertisement. This will create a demand for the new product
launched in the market.
iii. To retain existing customers
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You might remember that Nirma washing powder was a very popular
detergent. But, after
Wheel powder came to the market the sale of Nirma suddenly
decreased. Then the
manufacturers of Nirma improved the product and advertised aboutthe same in different
media. After knowing this the persons who were earlier using Nirma
did not switch over to
Wheel and continued using Nirma. In this manner Nirma sustained
its existing demand. Thus,
advertising helps the manufacturers not only to create a demand
for a new product but also to
retain the existing customers.
iv. To increase sales
We have learnt that advertising creates demands for new products
and sustains the demand
of old one. Thus, with increase in demand, the sale of the product
also increases.
v. To assist salesman
In most advertisements the salient features of a product, its
qualities and its uses are expressed
in detail. This assists a salesman to sell the product quicklywithout spending time in explaining
and convining the customer.
Media of Advertising
So far, you have learnt that advertisements are communicated by
using some media like,
newspaper, journals, radio, television, etc. The following diagram
shows some commonly used
media of advertising :Print Media Electronic Media Other Media
1. Newspapers 1. Radio 1. Hoardings
2. Periodicals 2. Television 2. Posters
3. Internet 3. Vehicular Displays
Let us learn in details about these media.
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(A) Print Media
Print media is a very commonly used medium of advertising by
businessman. It includes advertising
through newspaper, magazines, journals, etc. and is also called
press advertising.1. Newspapers
You must have read Newspapers. In our country newspapers are
published in English, Hindi and
in other regional languages. These are the sources of news,
opinions and current events. In
addition, Newspapers are also a very common medium of advertising.
The advertiser communicates
his message through newspaper which reaches to crores of people.
Advantages
Media of Advertising
Advantages of Newspaper Advertising are as below:
i. Newspapers normally have wide circulation and a single
advertisement in the newspaper
can quickly reach to a large number of people.
ii. The cost of advertising is relatively low because of wide
publication.
iii. Generally newspapers are published daily. Thus, the sameadvertisement can be repeated
frequently and remind reader everyday.
iv. The matter of advertisement can be given to newspapers at a
very short notice. Even last
minute changes in the content is also possible. This makes
advertising quite flexible.
v. Newspapers are published from different regions and in
different languages. Hence, theyprovide greater choice to advertisers to approach the desired
market, region and readers
through local or regional language
Limitations
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Newspaper advertising also suffers from some limitations as
mentioned below:
i. Newspapers are read soon after they are received and then are
kept generally in some
corner of the houses. After 24 hours we get a fresh newspaper andthis makes the life of the
newspaper short.
ii. People read newspapers mainly for news and pay casual
attention to advertisement.
iii. Illiterate persons can not read and thus, newspapers
advertising does not benefit them.
2. Periodicals
Periodicals are publications which come out regularly but not on a
daily basis. These may be
published on a weekly, fortnightly, monthly, bimonthly, quarterly
or even yearly basis. For example
you must have come across magazines and journals like Onlooker,
India Today, Frontline, Yojana,
Swagat, Femina, etc. published regularly in English, Grihasobha,
Nandan and Champak in Hindi.
Similarly there are also periodicals in Hindi and other regional
languages. All these periodicalshave a large number of readers and thus, advertisements published
in them reach a number of
people.
Advantages
i. Periodicals have a much longer life than newspapers. These are
preserved for a long period
to be referred in future or read at leisure or read again,
whenever required.ii. Periodicals have a selected readership and so advertisers can
know about their target
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customers and accordingly selective advertisements are given. For
example, in a periodical
like Femina, which is a magazine for women, advertisements related
to products to be used
only by males are rarely published. However, manufacturers ofproducts and services to be
used by females prefer to give advertisement in this magazine.
Limitations
i. Advertising in periodicals are costlier.
ii. The number of people to whom the advertisements reach are
small in comparison to
newspapers.
iii. The advertisement materials are given much in advance, hence
last minute change is not
possible. This reduces flexibility.
(B) Electronic Media
This is a very popular form of advertising in the modern day
marketing. This includes Radio,
Television and Internet. Let us look into detail about these.
1. Radio Advertising
All of us are aware about a radio and must have heard
advertisements for various products in it.In radio there are short breaks during transmission of any
programme which is filled by
advertisements of products and services. There are also popular
programmes sponsored by
advertisers. (One of the longest run programme in Radio was a
sponsored programme started as
Binaca Geetmala and later renamed as Cibaca Geetmala. It
was sponsored by HindustanCiba-Geigy Limited for its products like toothpastes, toothpowders
and tooth brushes and it
continued for a period of 30 years on a weekly basis).
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Advantages
(i) It is more effective as people hear it on a regular basis.
(ii) It is also useful to illiterates, who can not read and write.
(iii) There are places where newspapers reading may not possible,
but you can hear radio. Forexample, you can hear radio while traveling on road or working at
home; but you can not
read newspaper. Similarly, while driving you can hear a radio but
cannot read a newspaper.
Limitations
(i) A regular listener may remember what he has heard. But,
occasional listeners tend to forget
what they have heard in Radio.
(ii) The message that any advertisement wants to communicate may
not be proper as there is
no chance to hear it again immediately. There may be some other
disturbances that distort
communication.
(iii) In comparison to Television, Radio is less effective as it
lacks visual impact.
2. Television Advertising
With rapid growth of information technology and electronic media,television has topped the list
among the media of advertising. TV has the most effective impact
as it appeals to both eye and
the ear. Products can be shown, their uses can be demonstrated and
their utilities can be told
over television. Just like radio, advertisements are shown in TV
during short breaks and there are
also sponsored programmes by advertisers.
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Advantages
(i) It is most effective as it has an audio-visual impact.
(ii) With catchy slogans, song and dance sequences, famous
personalities exhibiting products,
TV advertising has a lasting impact. For example, who can forget
Aamir Khan saying
Thanda Matlab Cocacola or Sachin Tendulkar in Pepsi
advertisement.
(iii) With varieties of channels and programmes advertisers have a
lot of choice to select the
channel and time to advertise.
(iv) With regional channels coming up any person even illiterates
can watch the advertisements
and understood it by seeing and hearing.
Limitations
(i) TV advertisements are usually expensive to prepare as well as
to telecast.
(ii) With almost every manufacturer trying to communicate their
message through TV advertising
the impact among the viewers is also reducing. Now-a-days peopleare switching on channels
whenever there is a commercial break.
3. Internet
Are you aware about internet? Infact it is the latest method of
communication and gathering
information. If you have a computer and with an access to internet
you can have information fromall over the world within a fraction of second. Through internet
you can go to the website of any
manufacturer or service provider and gather information. Sometimes
when you do not have
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website addresses you take help of search engines or portals. In
almost all the search engines or
portals different manufactures or service providers advertise
their products.
Advantages
(i) Information from all over the world is made available at the
doorsteps.
(ii) User can see the advertisement at their own time and as per
their requirement.
Limitations
(i) It is not accessible without a computer.
(ii) It is not very suitable for general public.
(iii) It is not suitable for illeterate and those having no
knowledge about the operation of Internet.
(C) Other Media
All the media of advertising discussed above are mostly used by
consumers while they are at
home or inside any room, except radio and newspapers or magazines
to some extent. Moreoverin all these media, the consumer has also to spend some money to
access the advertisement.
However, there are other media available, where the consumer has
to spend nothing and he can
see such advertisements while moving outside. Some of such
advertising are hoardings, posters,
vehicular displays, gift items, etc.
1. Hoardings
While moving on roads you must have seen large hoardings placed
on iron frames or roof tops
or walls. These are normally boards on which advertisements are
painted or electronically designed
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so that they are visible during day or night. The advertisers have
to pay an amount to the owners
of the space, where the hoardings are placed.
2. Posters
Poster are printed and posted on walls, buildings, bridges etc to
attract the attention of customers.
Posters of films which are screened on cinema halls are a common
sight in our country.
3. Vehicular displays
You must have seen advertisements on the public transport like
buses, trains, etc. Unlike hoardings
these vehicles give mobility to advertisements and cover a large
number of people.
Advertising
4. Gift Items from manufacturers
When you buy a cycle, the shopkeeper sometimes gives you a key
ring to hold the cycle key.
Some jewelers give small purse or boxes when you buy a jewellery.Sometimes manufacturers
gives diaries, calenders, purse, etc. to buyers and prospective
customers. In all these items the
name, address and telephone number of the manufacturer, or trader
or service provider as well
as descriptions of the products in which they deal in are printed.
These items are normally items
of daily use given freely to the customers. While using, the userremembers the products as well
as the producer.
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Suitability of Media of Advertising
The advertisers must look into the suitability of each medium of
advertising in relation to their
product. For this purpose, they must look into the nature of theproduct or service to be advertised,
the target customers for such product, the amount of allocated
funds for such advertising and the
availability of space and time in each medium. However, in
general, the suitability of each medium
of advertising can be summarized as follows:
1. Newspapers
These are suitable for consumer goods designed for general public.
In case of new products to
be launched, newspaper advertising is very useful as the same
space can be occupied on a
regular basis. Newspapers are also suitable for advertisements
regarding clearance sale, exchange
offers, etc.
2. Periodicals
These are suitable for products required by the target customers
of the periodicals. For example,advertisement of any books can be given in journals like Readers
Digest as the target customers
of this periodical is assumed to be a reader, Similarly, interior
decorators, architects, builders can
advertise in magazines specifically containing items of design and
decoration. Consumer goods
products can be advertised in any periodical having wide
circulation.3. Radio
Radio is suitable for advertising different varieties of products.
However, the timing is important
for radio advertising. For example, after farmers come back from
field they normally listen to
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radio and during this time any firm producing agricultural
products can advertise or sponsor their
programmes.
4. Television
Choice of channels and programmes is important for the advertisersto advertise their product in
TV. For example, in Cartoon Network channel, products for use of
children can be advertised.
Similarly, during any serials or films, consumer goods required by
the family can be advertised.
This medium is also suitable for products those require live
demonstration while selling those to
the consumers.
What You Have Learnt
Advertising includes all the activities involved in presenting
any product or service or idea
by any producer, trader or service provider to prospective
customers.
Advertising incurs some cost and it is borne by the producer,
trader or service provider
known as sponsor or advertiser.
The inherent message about the product or service or idea iscalled the advertisement.
In every advertisement the identity of the sponsor is disclosed.
The basic purpose of advertising is to educate the customers
regarding the utility of the
product/service and thereby to induce them to buy it.
Advertisement also serves the purpose of creating a demand for
any new product as well
as maintaining and improving the existing demand for any product.Ultimately every
advertising helps in increasing sales.
There are various medium of advertising like newspaper and
periodicals (print media);
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radio, television and internet (electronic media) and hoardings,
posters, vehicular displays
and gift items by manufacturer (other media). Each medium has its
own advantages and
disadvantages and suitability for specific products.
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Indian Advertising starts with the hawkers calling out their
wares right from the days when cities and markets first
began. Concrete advertising history begins with classified
advertising. Ads appear for the first time in print in
Hickeys Bengal Gazette, Indias first newspaper (weekly) .
To advertise meant merely to inform until the end of
the eighteenth century, and the early newspapers and
periodicals announced births, deaths, arrivals of ships from
England, sale of household furniture, etc. some journals like
the Bengal Journal (first published in 1785) even offered to
print government advertisements free.y The front page of most such journals carried only
advertisements. But before long persuasive copy began to
replace mere information. This is evident from the appearance
of punch lines such as superior to anything of the kind
hitherto imported and warranted to the first quality.
Discounts and special services also began to be offered by
the beginning of the nineteenth century. Later, new products
and services established themselves on the market through theadvertisement columns of the newspapers and periodicals. The
power of advertising increased rapidly with the growth in
trade and commerce.
y With the increasing impact of the industrial revolution onour country, the number of advertisements from British
business houses rose sharply. Agents flourished at the
time as space contractors, obtaining advertisements for
newspapers and periodicals on a commission basis. Leading
newspapers like The Statement and The Times of India,
which had their own advertising departments, offered their
own facilities to agents. This was of great advantage to
both the advertiser and the publisher, for the advertiser, it
saved the bother of preparing a suitable layout for the
advertisements, for the publisher, it assured a certain
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uniformity of standard in the advertisements appearing in its
column. This practice was responsible for turning advertising
into a distinct profession. These agents were forerunners
of the advertising agencies.
y Advertising in the early 20th centuryy Two main events responsible for growth of Indian advertising
agencies were: the Swadeshi Movement (1907-1911), which gave
rise to indigenous industries, and the second, was the
installation of first rotary linotype machine by the
Statesman of Calcutta in 1907.
y In few years, other papers too installed the new machine,which made it possible to produce a cheap newspaper with a
large national circulation. The first Indian Ad Agency, the
Indian Advertising Agency, was launched around this time, and
is still going strong. The main functions of these agencies
were to secure advertisements and to get them published in
the press. The major British agencies during this time were:
Alliance Advertising Associates, Publicity Society of India,
L.A. Stronach and Co, and others. They catered to the need of
the affluent British and Indian elites living in the
metropolitan cities. They rarely advertised Mass consumeritems like tea and cigarettes.
y During the war, press advertising was exploited to raisefunds for the war effort. Ad Agencies established
during this period-included Alliance Advertising
Association Ltd, at Bombay, started by the British India
Cooperation of Kanpur, to sell its manufactured goods. Mr.
L.A.Stronach, the manager of Alliance, bought up the Bombay
branch of the agency and started in 1922 his own agency, witha branch in London. It provided production and media services
to advertisers (unlike the space-selling agencies) and so
even manufacturers of competing products or brands had to use
these services.
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y The Inter-War Yearsy During the inter-war years a few Indian agencies too sprang
up, the most notable being the modern Publicity Co. inMadras, the Calcutta Publicity, and the Oriental Advertising
Agency in Tiruchirapalli. The Vasudevea Publicity Service was
started in Delhi to carry out outdoor publicity campaigns in
Uttar Pradesh, Punjab and Delhi. In 1931, the first full-
fledged Indian Ad Agency, the National Advertising Service,
was established. Among the other Indian Agencies to be
launched during this period were: New India Publicity Co.
1930, Paradise Advertising Agency of Calcutta (1928), the
Indian and Eastern Newspapers Society (IENS), and others. The
IENS was set up as a central organization of the newspaper
owners of India, Burma and Ceylon. The society looked after
the interests of newspaper publishing houses; an indirect
effect of the formation of the IENS was the standardization
of Ad agency practices. The IENS also sought to foster better
publisher agency relationship.
y The establishment of the Advertising Agencies Association ofIndia (AAAI) in 1945, and the Audit Bureau of Circulation(ABC) in 1948 helped to bring some order to the competitive
field. The AAAI came to be recognized as a representative
body of the profession, with the authority to represent its
interests and problems. The ABC gave some credibility to the
claims of newspapers regarding their circulation.
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y Post-Independence Advertisingy Following World War II and the Indian Independence, the
British-owned agencies were sold to Indian business. Severalagencies, however, retained an affiliate status with the
main branches of the agencies in London. They continue to
enjoy this status even today, though American multinational
agencies have replaced affiliation with British agencies.
y At independence the advertising business was well on its wayto growth and expansion. Partition did not touch the business
at all. The introduction of multi-color printing, improved
printing machines (like offset and web offset), and the
development of commercial art gave the Ad business a further
leap. Agencies began to offer, besides space selling, many
more services, such as artwork, organization of fairs and
exhibitions, market research, public relations consultancies.
y The phenomenal growth in the media, especially television andcable has given a boost to Indian advertising. Market
research and readership surveys have led to the further
professionalization of the business. Individual publishing
houses like The Hindu and The Times of India firstconducted readership surveys. Now, National Readership
Surveys (NRS) and Indian Readership Surveys (IRS) as well as
regular Television Rating Points (TRP) measurements provide
advertisers with statistical data on which to base their
media plans.
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Advertising Agencies can be classified by the range of servicesthat they offer. Also, advertising agencies range in size from one
man shows to large firms that employ thousands of people.
Accordingly, different types of advertising agencies are:
y Full service agenciesy Creative boutiquesy In-house agenciesy Specialized agenciesy Media buying services
Full-service agencies- as the name implies, a full service agency
is one that handles all phases of advertising process for its
clients: it plan, creates, produces and places advertisements for
its clients. In addition, it might provide other marketing
services such as sales promotion, trade shows, exhibits,
newsletters and annual reports. In short a full service agency
will provide four major functions:
1.account management,2.creative development and production,3.media planning and4.buying and research services.
One major point that differentiates a full service agency from
other is that the personal work full time and the services provide
are extensive. The services usually provided by a full serviceagency include collecting and analyzing market data, proposing
strategy, preparing and producing the ads, placing the ads in
approved media, verifying the advertisements appearance
(publication, broadcasting, etc), invoice the client, collect the
bills and pay the media and other suppliers.
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brand - an example is in the movie. Minority Report, where
Tom Cruise's character Tom Anderton owns a computer with The
Nokia logo clearly written in the top corner, or his watch
engraved with the Bulgarilogo.
The TV commercial is generally considered the most effective
mass-market advertising format and this is reflected by the
high prices TV networks charge for commercial airtime during
popular TV events.
Virtual advertisements may be inserted into regular
television programming through computer graphics.
It is typically inserted into otherwise blank backdrops or
used to replace local billboards that are not relevant to the
remote broadcast audience.
More controversially, virtual billboards may be inserted into
the background where none existing in real-life. Virtual
product placement is also possible. Increasingly, other
mediums such as those discussed below are overtaking
television due to a shift towards consumer's usage of theInternet.
Advertising on the World Wide Web is a recent phenomenon.
Prices of Web- based advertising space are dependent on the
"relevance" of the surrounding web content and the traffic
that the website receives. E-mail advertising is another
recent phenomenon. Unsolicited bulk E-mail advertising is
known as "spam". Newspaper
Flexibility; timeliness; good local market coverage; broad
acceptance; high believability. Short life; poor reproduction
quality; small pass along audience. Television Combines
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sight, sound and motion; appealing to the senses; high
attention; high reach.
High absolute cost, high clutter, fleeting exposure, less
audience selectivity Direct mailAudience selectivity,flexibility, no ad competition within the same medium,
personalization. Relatively high cost, junk mail image.
RadioMass use, high geographical and demographic selectivity; low
cost. Audio presentation only; lower attention than
television; non standardized rate structure; fleeting
exposure.
Magazines high geographical and demographic selectivity;
credibility and prestige; high quality reproduction, long
life; good pass-along readership. Long ad purchase lead time;
some waste circulation; no guarantee of position.
Outdoor Flexibility; high repeat exposure; low cost; low competition. Limited audience selectivity; creative
limitation. Broachers Flexibility;
full control;can dramatize message. Overproduction could lead to run away
costs.
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The major role as advertising agency is to work alongside the
clients to develop and sustain the brands that they mutually
serve, through consumer understanding and insight and through
creative and media delivery skills to provide best advice and the
best execution thereof to those clients for the advertising ofthose brands.
Buildings age and become dilapidated. Machines wear out. People
die. But what live on are the brands.
Brands are much more than mere products and services. Brands, if
successful, are clearly differentiated entities with which
consumers can and do form a mutually beneficial relationship over
time, because of the values rational and emotional, physical and
aesthetic that consumers derive from them. The importance can be
summed up as follows:
A product is something that is made, in a factory: a brand is
something that is bought, by a customer. A competitor can copy a
product; a brand is unique. A product can be quickly out-dated; a
successful brand is timeless.
The role of advertising and the advertising agency is to help
effect this transformation from product or service to brand by
clearly positioning the offering to the consumer its role and
its benefits and by communicating the brands own personality.
In short its role is to provide meaningful differentiation via the
consumer connection.
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As one wise head in advertising once said, nothing kills a bad
product faster than good advertising. Typically advertising is
playing this role, along with other parts of what we call the
marketing mix, in highly competitive market places.
Most advertisers assign this job of informing the target audience
and creating images to advertising agencies. Thus, the advertising
agencies plan, prepare and place ads in the media. But even an
advertiser can do all these things. The management can do planning
of ad campaigns. For preparing ads, creative personal can be
hires. And the advertiser for placing the ads can buy media space
or time. So, why hire an advertising agency?
The reason can be enlisted as follows:
y Expertise and experience- An advertising agency bringstogether people with the required expertise and experience of
the various sub-disciplines of advertising. Thus, it has the
copywriters, visualizes, researchers, photographers,
directors, planners and people who get business and deal with
clients working in ad agencies. An agency moulds all these
people into a team and gives them a highly conducive work
atmosphere. The agency makes the best use of their talents
and experience to deliver rapidly, efficiently and in greater
depth than a company or organization could do on its own.
y Objectivity and professionalism- Advertising agencies arehighly professional. Objectivity is a major virtue of ad
agency. They operate in a strange way. While they take up
advertising for others, agencies hardly advertise themselves.
Ad agencies being outside intermediaries can be objective.
They thus will offer independent and detached viewpoints andsuggestions based on objective analysis.
y Cost effective- If an organization wants to hire people to doits advertising, it can not provide them work all through the
year. Also most experts in the fields of advertising like
directors, musicians, photographers, charge huge amounts and
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are often not affordable. Moreover, hiring, organizing and
managing all talents required to produce advertising
campaigns is not an easy thing. And the fact that 98% of
advertisers the worlds over hire as agencies is proof enough
about the cost effectiveness of the agencies. Also the kindof consistent, powerful and compelling advertising that can
be created by using the expertise, experience, objectivity
and professionalism of ad agencies cannot be measured
economically.
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Today advertising agencies are found in virtually every major city
on the world and their role in stimulating economic growth is
solidly established. To understand advertising, we need to examine
the functions of an Ad Agency. These are: -
y Talent & Creative productions: The basic function of an AdAgency is providing talent. The creative efforts of the art
director, the detailed analysis of the research director and
the political understanding of the campaign director, are
just a few examples of the many abilities of Ad Agency
personal have to offer. A business organization or person
will contract the services of an ad agency to help market a
product. This function involves processing the information
collected from the client and through research and designingcommunication material in the form of advertisements and
other publicity material. This also includes planning
creative strategies, copy or script writing, visualization,
designing, layout, shooting of films, editing, giving music,
etc.
y Research: The second function of an Ad agency is research. Inorder to distribute the message to the public successfully,
the agency must first know all that it can about the product.One of the first jobs is to research the product and the
company, one must learn, one possibly can about both. The
research must even take one close to the heart of the firms
inner operations. Ad agencies use research as a tool to test
consumer reactions to products and services.
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y Distribution & Media planning: The third important functionof an ad agency is distribution. Here you decide what type of
message you will create for the company and what media will
be most helpful in sending this message to the public. On the
basis of the media habits (access and exposure) of the targetaudience, agency people prepare a media plan. This plan
includes which media to be used, which part of the media to
be used, when to place the ads and for how long to place the
ads, etc. media planners keep track of the viewer ship,
listener ship and readership of all kinds of media.
y Monitoring Feedback: By monitoring consumer feedback, adecision on whether to revise the message, the medium, the
target audience or all of them can be made. Ad agencies are
developing to reach the target audience. As information is
the backbone of all advertising, to prepare ads, one requires
information about the product, its competitors, the market
situation and trends, information about the audiences (their
likes and dislikes and media habits) also need to be
collected. Some of the most effective advertising includes
advertisement written in their native language. All of these
specialized campaigns are creating new demands on agencies
and are requiring new talents for people who work inadvertising.
In addition, many agencies also offer a variety of allied
services. These include:
y Merchandisingy Public relationsy Organizing exhibitions and fairsy Preparing all kinds of publicity materialy Planning and organizing special events (event management)y Direct marketing
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Advertisers and advertising agencies believe that customers have
needs and desires, which can be fulfilled through the purchase and
use of products and services. Advertising works largely through
appeal of emotions of envy, fear, anxiety, about ones appearance
and lack of status. It is widely assumed that advertising works if
the AIDCA formulas are followed. The formula sums up the
principles of advertising. The name of the formula is derived from
the initial letters of the words: Attention, Interest, Desire,
Conviction and Action.
The formula suggests that the att3ention and interests of the
customers must be gained first before the process of stimulating
desire, imparting conviction and urging action in advertisements
can bring about a change in the buying behaviors.
Steps Involved in Advertisement Planning
The Attention part is the banner or headline that makes an
impressive benefit promise. Interest builds information in an
interesting way, usually meaning that this must relate closely to
the way that the reader thinks about the issues concerned. If you
seek a response you must move then to create Desire, which relates
benefits to the reader so that they will want them. Finally you
must prompt an Action, which may be to call a telephone number or
to complete and send of a reply coupon. Advertising that does notprompt action is a wasted opportunity.
Offer a single impressive benefit, quickly and simply
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Research proves that where responses are required, the best
adverts are those, which offer an impressive, relevant benefit to
the reader. This promise should ideally contain the business
brand name, take no longer to read than is normal for the media
and be clearly the most striking part of the advert. This pointcannot be stressed enough; you must keep it quick, simple and to
the point.
Younger generations are extremely visually literate. They have
been brought up on computer games, so they couldnt deal with a
lot of polished copy, even if they wanted to. Think about the
vocabulary and language you use; know your target audience: a
simple test is to avoid any words or grammar that would not be
found in the newspaper that the target group would read.
Your message must be quick and easy to absorb.
Use a clear layout, clear fonts and clear language. Do not
distract the reader from the text by overlaying images or using
fancy fonts. Use simple language, avoid complicated words, and
keep enough space around the text to attract attention to it. Use
simple traditional typestyles: serif fonts are quicker to read
than sans serif. Use ten, eleven or twelve point-size for the main
text; smaller or larger are actually more difficult to read and
therefore less likely to be read. Avoid cluttering the advert with
fancy images, colors and backgrounds. Make it easy to read.
For the same reason avoids italics, shadows, light colors reversed
out of dark, weird and wonderful colors. None of these improve
readability, they all reduce it. Use simple black (or dark
colored) text on a white (or light colored) background for maximumreadability.
Involve the reader in your writing style
Refer to the reader as you and use the second person (you,
your and yours etc) in the description of what your
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business does for the customer to get them visualizing their own
personal involvement. Describe the service as it affects them in a
way that they will easily relate to it.
Incorporate something new
People respond better and are more easily attracted initially to a
concept that is new or original. If theyve heard or seen it all
before it will be no surprise that they take no notice at all.
People must believe theres something in it for them right from
the start.
Develop a proposition that is special or unique
Why should people be interested if your proposition is no
different to your competition? You must try to emphasize what
makes your service special. Unless your code of practice prevents
you from claiming superiority over your competitors, you should
put as much emphasis as you can behind your USP (unique selling
point), and either imply or state directly that you are the only
company to offer these things.
Proposition or offer must be credible and believable
The Advertising Standards Authority or equivalent would prevent
you from making overly extravagant claims anyway, but you should
still attempt to make your offer seem perfectly credible. This is
usually best accomplished by explaining why and how you
are able to do the things you are offering, in support of your
claims; you can also increase credibility by showing references or
testimonial quotes from satisfied customers.
For example, if you claim particularly good customer service, this
can be reinforced with an outline of your policy on seeking
customer feedback and carrying out satisfaction surveys.
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Advertising is often referred to as a Black Art because it is
mysterious, and is rarely a precise science. Things sometimes
work, which you imagine, wouldnt, and plenty of things you think
should work, dont. An advertisement campaign determines what the
advertiser wants to say. It also determines how, when, where, andto whom the advertiser wants to say it.
The Planning process of Advertisements Campaigns include the
following activities:
1. Situation Appraisal- before planning any activity, one requires
relevant information regarding the situation. For planning an Ad
campaign, we require information about the target market or
consumer, the company or product and the competition. The threeimportant research areas are:
y Consumer research and market researchy Product and company researchy Competitive research
2. Situation Analysis- (analyzing strengths, weakness,
opportunities and threats) From all the information collected,
campaigns planners find out the strengths of the product. These
strengths could be in any area. The strength often leads to new
opportunities to be explored. Weaknesses make the product
vulnerable to threats from others.
3. Structural or Strategic Planning- Advertising is an art and a
science. While the art comes from writing, designing and producing
exciting advertisements, the science comes from scientific methods
of research and strategic planning. Strategic planning is theprocess of making intelligent decisions. It starts with finding
out what to do, deciding how to accomplish the objectives. It also
decides whom to address (the target audience), how to distinguish
the product, how much to spend (budgeting), and how long to run
the campaign.
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4. Creative Planning- it includes developing a theme, the creative
strategy and finally deciding the creative tactics. The theme
needs to be a strong concept to be able to hold all there
different and diverse ads together. A powerful theme brings about
synergy to the campaign. A theme must always relate to andreflect the campaign objectives. Another step of creative planning
is finding the creative strategy. The creative strategy outlines
the impressions the campaign wants to create. Some common creative
strategies are:
y Generic Strategy- this is used by market leaders who ignorethe presence of competitors
y Pre-emptive claim strategy- here the brand is the first topick up a particular feature. In the minds of the people, it
becomes associated with that brand.
y Unique selling proposition (USP) strategy- here the campaigntalks about some features, which is unique to that advertised
brand and is not available in others.
y Brand image strategy: when there are no strongdifferentiating features among the competitors, then branding
try and create images.
y Product Positioning- some times products or brands arepositioned different from competing brands.
5. Media Planning- the ultimate goal of advertising is to reach
the target audience with the advertising message. Thus, the major
decisions in media planning, which needs to be taken, are:
y Which media to be used?y Where to advertise (geographic region)?y When to advertise (timing and scheduling)?y How intense the exposure should be (frequency)?
Media planning is a behind the scene part of advertising. It
plays an integral role in merging the science of marketing with
the art of advertising. A media planner has to find out about the
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availability of various media, the media rates, their reaches and
also analyze their effectiveness.
The Benefits of Advertising
Enormous human and material resources are devoted to advertising.
Advertising is everywhere in todays world, so that, as Pope Paul
VI remarked, No one now can escape the influence of
advertising. Even people who are not themselves exposed to
particular forms of advertising confront a society, a culture
other people affected for good or ill by advertising messages
and techniques of every sort.
Some critics view this state of affairs in unrelieved negative
terms. They condemn advertising as a waste of time, talent andmoney an essentially parasitic activity. In this view, not only
does advertising have no value of its own, but also its influence
is entirely harmful and corrupting for individuals and society.
But advertising also has significant potential for good, and
sometimes it is realized. Here are some of the ways that happens.
a) Economic Benefits of Advertising
Advertising can play an important role in the process by which an
economic system guided by moral norms and responsive to the common
good contributes to human development. It is a necessary part of
the functioning of modern market economies, which today either
exist or are emerging in many parts of the world and which
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provided they conform to moral standards based upon integral human
development. In such a system, advertising can be a useful tool
for sustaining honest and ethically responsible competition that
contributes to economic growth in the service of authentic human
development.
Advertising does this, by informing people about the availability
of rationally desirable new products and services and improvements
in existing ones, helping them to make informed, prudent consumer
decisions, contributing to efficiency and the lowering of prices,
and stimulating economic progress through the expansion of
business and trade. All of these can contribute to the creation of
new jobs, higher incomes and a more decent and humane way of life
for all.
b) Benefits of Political Advertising
Political advertising can make a contribution to democracy, to its
contribution to economic well being in a market system guided by
moral norms. Political advertising can make its contribution by
informing people about the ideas and policy proposals of parties
and candidates, including new candidates not previously known to
the public.
c) Cultural Benefits of Advertising
Because of the impact advertising has on media that depend on it
for revenue, advertisers have an opportunity to exert a positive
influence on decisions about media content. This they do by
supporting material of excellent intellectual, aesthetic and moral
quality presented with the public interest in view, andparticularly by encouraging and making possible media
presentations which are oriented to minorities whose needs might
otherwise go unserved.
Moreover, advertising can itself contribute to the betterment of
society by uplifting and inspiring people and motivating them to
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act in ways that benefit themselves and others. Advertising can
brighten lives simply by being witty, tasteful and entertaining.
d) Moral and Religious Benefits of Advertising
In many cases, too, benevolent social institutions, including
those of a religious nature, use advertising to communicate their
messages messages of faith, of patriotism, of tolerance,
compassion and neighborly service, of charity toward the needy,
messages concerning health and education, constructive and helpful
messages that educate and motivate people in a variety of
beneficial ways.
The harm done by Advertising
There is nothing intrinsically good or intrinsically evil about
advertising. It is a tool, an instrument: it can be used well, and
it can be used badly. If it can have, and sometimes does have,
beneficial results such as those just described, it also can, and
often does, have a negative, harmful impact on individuals and
society.
a) Economic Harms of Advertising
Advertising can betray its role as a source of information by
misrepresentation and by withholding relevant facts. Sometimes,
too, the information function of media can be subverted by
advertisers pressure upon publications or programs not to treat
of questions that might prove embarrassing or inconvenient.
More often, though, advertising is used not simply to inform but
to persuade and motivate to convince people to act in certainways: buy certain products or services, patronize certain
institutions, and the like. This is where particular abuses can
occur.
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The practice of brand-related advertising can raise serious
problems. Often there are only negligible differences among
similar products of different brands, and advertising may attempt
to move people to act on the basis of irrational motives (brand
loyalty, status, fashion, sex appeal, etc.) instead ofpresenting differences in product quality and price as bases for
rational choice.
b) Harms of Political Advertising
Political advertising can support and assist the working of the
democratic process, but it also can obstruct it. This happens
when, for example, the costs of advertising limit political
competition to wealthy candidates or groups, or require thatoffice-seekers compromise their integrity and independence by
over-dependence on special interests for funds.
Such obstruction of the democratic process also happens when,
instead of being a vehicle for honest expositions of candidates
views and records, political advertising seeks to distort the
views and records of opponents and unjustly attacks their
reputations. It happens when advertising appeals more to peoples
emotions and base instincts to selfishness, bias and hostility
toward others, to racial and ethnic prejudice and the like
rather than to a reasoned sense of justice and the good of all.
c) Cultural Harms of Advertising
Advertising also can have a corrupting influence upon culture and
cultural values. We have spoken of the economic harm that can be
done to developing nations by advertising that fosters consumerismand destructive patterns of consumption.
The indirect but powerful influence exerted by advertising upon
the media of social communications that depend on revenues from
this source points to another sort of cultural concern. In the
competition to attract ever-larger audiences and deliver them to
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advertisers, communicators can find themselves tempted in fact
pressured, subtly or not so subtly to set aside high artistic
and moral standards and lapse into superficiality.
All too often, advertising contributes to the invidiousstereotyping of particular groups that places them at a
disadvantage in relation to others. This often is true of the way
advertising treats women; and the exploitation of women, both in
and by advertising, is a frequent, deplorable abuse.
d) Moral and Religious Harms of Advertising
Advertising can be tasteful and in conformity with high moral
standards, and occasionally even morally uplifting, but it alsocan be vulgar and morally degrading. Frequently it deliberately
appeals to such motives as envy, status seeking and lust. Today,
too, some advertisers consciously seek to shock and titillate by
exploiting content of a morbid, perverse, pornographic nature.
We note, too, certain special problems relating to advertising
that treats of religion or pertains to specific issues with a
moral dimension.
In cases of the first sort, commercial advertisers sometimes
include religious themes or use religious images or personages to
sell products. It is possible to do this in tasteful, acceptable
ways, but the practice is obnoxious and offensive when it involves
exploiting religion or treating it flippantly. In cases of the
second sort, advertising sometimes is used to promote products and
inculcate attitudes and forms of behavior contrary to moral norms.
Within this very general framework, we can identify several moral
principles that are particularly relevant to advertising. We shall
speak briefly of three: truthfulness, the dignity of the human
person, and social responsibility.
1. Truthfulness in Advertising
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Even today, some advertising is simply and deliberately untrue.
Generally speaking, though, the problem of truth in advertising is
somewhat more subtle: it is not that advertising says what is
overtly false, but that it can distort the truth by implying
things that are not so or withholding relevant facts.
To be sure, advertising, like other forms of expression, has its
own conventions and forms of stylization, and these must be taken
into account when discussing truthfulness. People take for granted
some rhetorical and symbolic exaggeration in advertising; within
the limits of recognized and accepted practice, this can be
allowable.
2. The Dignity of the Human Person
There is an imperative requirement that advertising respect
the human person, his right duty to make a responsible choice, his
interior freedom; all these goods would be violated if mans
lower inclinations were to be exploited, or his capacity to
reflect and decide compromised.
Advertising can violate the dignity of the human person both
through its content what is advertised, the manner in which it
is advertised and through the impact it seeks to make upon its
audience. This problem is especially acute where particularly
vulnerable groups or classes of persons are concerned: children
and young people, the elderly, the poor, and the culturally
disadvantaged.
Much advertising directed at children apparently tries to exploit
their credulity and suggestibility, in the hope that they will putpressure on their parents to buy products of no real benefit to
them. Advertising like this offends against the dignity and rights
of both children and parents; it intrudes upon the parent-child
relationship and seeks to manipulate it to its own base ends.
Also, some of the comparatively little advertising directed
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specifically to the elderly or culturally disadvantaged seems
designed to play upon their fears so as to persuade them to
allocate some of their limited resources to goods or services of
dubious value.
3. Advertising and Social Responsibility
Advertising that fosters a lavish life style which wastes
resources and despoils the environment offends against important
ecological concerns. In his desire to have and to enjoy rather
than to be and grow, man consumes the resources of the earth and
his own life in an excessive and disordered way. Man thinks
that he can make arbitrary use of the earth
Advertising that reduces human progress to acquiring material
goods and cultivating a lavish life style expresses a false,
destructive vision of the human person harmful to individuals and
society alike.
When people fail to practice a rigorous respect for the moral,
cultural and spiritual requirements, based on the dignity of the
person and on the proper identity of each community, beginning
with the family and religious societies, then even material
abundance and the conveniences that technology makes available
will prove unsatisfying and in the end contemptible.
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Advertising is often criticized as a wasteful activity and an
unnecessary evil. Its critics offer the following arguments to
prove their contention.
y Multiplies the needs. Advertising multiplies the needs of thepeople by inducing them to buy even those things which are
not required by them. Since an advertisement is continuously
repeated, it creates a desire in the mind of the public tobuy the advertised product.
y Makes the product more costly. The amount of money spent byan advertiser on his products advertisement is added to the
distribution cost of the product. Thus, the customers have to
pay more for the product advertised.
y Increase in demand at the cost of another manufacturer.Advertising does not always increase the demand of the
product. When the demand is inelastic, advertising shifts
demand from one producer to another. That means a large
amount of money spent on advertising by the manufacturers
goes waste.
y Creates brand monopoly. Advertising may lead to monopoly of abrand. It is argued that big manufacturers who can afford
large amount of money on advertising can create brand
monopoly and eliminate the small producers.
y Every advertisement is not creative A large number ofadvertisements either escape the attention of the people orare ignored by them. This leads to waste of money spent on
advertisement.
y Undermines moral values. Sometimes, advertising underminesethical and aesthetic values. It may make the people start
bothering for appearance and design of the product rather
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than the physical utility. Some advertisers also use indecent
language and photographs to advertise their products which is
highly objectionable from the societys point of view.
y Corrupt the minds of youngsters. It is felt thatadvertisement can corrupt the minds of youngsters. Youngminds run the risk of being carried away by the
advertisements promoting smoking, wine, etc. In some cases,
advertisements have promoted the youths to commit crimes and
undertake ventures at the risk of their lives
Despite its drawbacks, advertising is a necessary marketing
activity in the present business environment. It is not a social
waste. It enables a manufacturer to introduce his products in the
market and sell them. Advertising helps in educating the people
regarding new uses of various products. It also strengthens the
freedom of choice of the people. It sustains the press and gives
employment to people. Advertising increases the standard of living
of the people by informing them about the availabiiity of new
products. Thus, we can say that advertising is a useful marketing
activity. Its drawback: could be removed if the people and the
Government keep a, watch on the advertisers. People should satisfy
themselves about the claims made by a producer before theypurchase his products. The manufacturers or the advertisers should
also avoid wasteful advertising and keep advertising expenditure
within limits. They should also follow the ethical standards while
advertising their products.
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All advertising efforts are directed mainly towards the
achievement of business, marketing and advertising
objectives i.e., to increase the sales turnover and thus to market
the maximum profit. The advertiser spends lakhs of rupees in to
this advertising activity. In the background of all these efforts,
is an attempt to attract the customer towards the product through
advertising. As soon as the advertising campaign is over, a need
is generally arisen to measure the effectiveness of the campaign.
Whether, it has achieved the desired results i.e. desired sales
profitability or results in terms the change in customer
behaviour in favour of the companys product which will
naturally, affect the future sale of the product.
In order to measure the effectiveness of advertising copy, twotypes of tests pre tests and post tests- can be undertaken. Pre
tests are generally conducted in the beginning of the creation
process or at the end of creation process or production stage.
There are several pre and post tests techniques to measure the
effectiveness of the advertising copy.
The effectiveness of advertising in a particular media may also be
measured in any of the following ways;
y By giving different addresses to different media,y Different newspapers may be selected for advertisements of
different departments,
y Coupon blank etc. May be provided with the advertisement or
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y Enquiry from consumers should mention the name of the sourceof information.
The technique is known as keying the advertising. Thus in
measuring the effectiveness of advertising we include measuring ofthe effectiveness of advertising campaign, advertising copy and
the effectiveness of individual media. This chapter deals these
three problems.
Importance of the Effectiveness of Advertising
y It acts as a Safety measure: Testing effectiveness ofadvertising helps in finding out ineffective advertisement
and advertising campaigns. It facilitates timely adjustmentsin advertising to make advertising consumer oriented and
result oriented. Thus waste of money in faulty advertising
can be avoided.
y Provides feedback for remedial measures: Testingeffectiveness of advertising provides useful information to
the advertisers to take remedial steps against ineffective
advertisements.
y Avoids possible failure: Advertisers are not sure of resultsof advertising from a particular advertising campaign.
Evaluating advertising effectives helps in estimating the
results in order to avoid complete loss.
y To justify the Investment in Advertising: The expenditure onadvertisement is considered to be an investment. The
investment in advertising is a marketing investment and its
objectives should be spelt out clearly indicating the results
expected from the campaign. The rate and size of return
should be determined in advance. If the expected rate of
return is achieved in terms of additional profits, the
advertisement can be considered as effective one.
y To know the communication Effect: The effectiveness of theadvertisement can be measured in terms of their communication
effects on the target consumers or audience. The main purpose
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of advertising is communicated the general public, and
existing and prospective consumers, various information about
the product and the company. It is therefore desirable to
seek post measurements of advertising in order to determine
whether advertisement have been seen or heard or in otherwords whether they have communicated the theme, message or
appeal of the advertising.
y Compare two markets: Under this procedure, advertising ispublished in test markets and results are contrasted with
other. Markets so called control markets which have had
the regular advertising program. The measurements made to
determine results may be measurements of change in sales,
change in consumer attitudes, changes in dealer display and
so on depending upon the objectives sought by the advertiser.
Importance of Advertising
Advertisement is a mass communicating of information intended to
persuade buyers to by products with a view to maximizing a
companys profits.
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 buildingfamiliarity. 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
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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 certainlyis the voucher. Non-business enterprises have also recognized the
importance of advertising. The attempt by army recruitment is
bases on a substantial advertising campaign, stressing the
advantages of a military career. The health department popularizes
family planning through advertising Labour organizations have also
used advertising to make their viewpoints known to the public at
large. 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 has become an important factor in
the campaigns to achieve such societal-oriented objectives such asthe 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
countrys economy.
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The management should attempt to evaluate the effectiveness of the
advertising campaign if the firms advertising goals are to be
achieved and the ad effectiveness is to be increased. By regularevaluation of the effectiveness, the short comings and the plus
points would be revealed and the management would be able to
improve the campaign by negating the shortcomings and retaining
the favorable point. For this purpose, it is very necessary to
know how advertising affects the buyers behaviors. But this is
very difficult task because measurements are imperfect and
imprecise.
The effectiveness of advertising can be measured by the extent, it
to which it achieves the objectives set for it. If it succeeds in
attaining the objectives. Advertising can be said to be effective
otherwise it will be a waste of money and time. In this sense,
advertising can be recognized as a business activity like other
activities.
In a very real sense the integrity of promotional activities rests
on how well those activities work. An advertising budget that is
spent on some poorly defined task or on undefined tasks may be
regarded as an economic waste as compared to that spent to achieve
the well defined objectives for which the results can be measured.
Any social institution upon which a significant portion of our
total productive efforts is expanded should be able to point to
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its specific accomplishment. Indeed, it is a source of discomfort
that specific results of advertising activities have not always
been subject to precise measurement. Both practitioners and
critics feel that promotional activities should only be accepted
as socio economic institution with full right and privilegeswhen the means
exist to prove that advertising super are productive rupees It
is undoubtedly a source of embarrassment that we cannot exactly
measure the effectiveness of advertising in definitive terms.
The exact result of advertisement expenditure is very difficult to
predict because;
y The reaction of consumer; buyers to the advertising effortscannot be known in advance.
y The reaction of competitors in the field cannot be guessed inanticipation and
y The unexpected events (such as change in social and economicenvironment and the government policies etc.) cannot be
accurately anticipated. Such events may influence the results
of the advertising efforts. If we take a hypothetical case of
a retailer who contract to spent Rs.5000 on advertisement
with a local newspaper for a special sales even. The
advertisement is seen and the response is much greater than
it is anticipated. What caused the success of sale? They
message theme colors etc., of the advertisement or the low
prices quoted during the sale of the superior quality of the
product or absence of competition in the market on the day or
the favorable. Weather conditions or the goodwill of the firm
etc. The overwhelming success of the sale is the joint resultof all the above variables and it is quite impossible to
isolate the role of any one variable. It is so because the
cause and effect relationship cannot be established in
advance when a multitude of variable impinge upon a
particular event. It is entirely possible that a poor
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advertising support may push up the sale because everything
else falls into its proper place or the reverse may be
possible. But it does not mean that that we cannot measure
the effects of particulars advertising effort. The
advertising executives are much concerned about theassessment of the effectiveness of the advertising efforts.
For this purpose, the management needs answers to such
questions as: was the advertising campaign really successful
in attaining the advertising goals? Were our T.V. commercials
as good as those of our competitors? Will the print
advertisement, which we have designed, make consumers aware
of our new product? To get answers of these questions,
various tests of effectiveness (Pre- tests and post tests )
are deeded to determine whether proposed advertisement should
be used, and if they are not satisfactory how they might be
improved, and whether on going campaign should be stopped
continued or changed. Pre- tests are conducted before
exposing target consumers to the advertisements and post
tests after consumers have been exposed to them.
As indicated earlier, the advertisers are interested in knowing
what they are getting for their advertising rupees, So they testthe proposed advertisement with pre test and measure the actual
results with a post test. In the past, protesting was done by the
advertising agencies but now the advertisers have been taking an
increasingly active role in protesting process. Pre test may be
done either before an advertisement has been designed or executed
after it is ready for public distribution or at both points.
During protesting there is often research on three vital
questions;
1.Do consumers feel that the advertisement communicatessomething desirable about the product?