Name
:- Upadhyay Devangana S.
Subject
:- Mass Communication and Media Studies
Topic
:- Advertising Industry
Paper
:- 15
Submitted
to :- Department of English,
MKB
University
Semester
:- 04
·
Introduction
The first advertising may have
been a sing painted on a well of a building. The early outdoor- advertising
competitors were town criers employed y merchants to praise their goods. It was
Gutenberg’s intention of the moveable-type printing press in1450 that resulted
in the mass production of posters and circulars. The first advertisement
printed in English was a handbill printed in 1472.
It was primarily an
announcement of a prayer book for sale. Two hundred years later, the first
newspaper ad appeared offering a reward for finding 12 stolen horses. By the 17th
century, classified ads were appearing frequently in England’s newsweeklies.
These ads featured simple description of products and their prices.
Illustrations and colour appeared in advertisements in the late 19th
century.
The first advertising
agency, which was set up by Volney Palmer in Boston in 1841, introduced system
to the business by offering a discount of 25% on ad space in newspapers. This
move marked the formal beginning of space selling. Initially, most ad agencies
were nothing more than brokers for ad space in newspapers. Advertisers created
their own ads. N.M. Ayer and Son became the first full-service agency in 1869.
One of the earliest highly successful advertising campaigns was launched by
Pears Soap. In late 19th century, Thomas Barratt, whom many consider
the father of modern advertising, launched a series of ads featuring children,
animals, flowers, and beautiful woman to promote the company’s products.
·
Propaganda and Mechanization
During World War 1,
advertising became a medium for propaganda. Governments used advertising to
persuade their citizens to join the military. This Period also saw increased mechanization
of the industry, making ads more costly.
·
The Emergence of New Mass Media
When new
mass media-radio and cinema-became commercially available in the first part of
the 20th century, the advertising industry quickly took advantage of
their reach, spread, and popularity. This period of prosperity came to an end
with the Wall Street crash of 1929, followed the Great Depression and World War
2.
Initially a single business would
sponsor a radio programme for a brief mention of its name. Later sponsorship
rights for a show were sold to multiple businesses, a practice that soon became
the norm.
·
Television
The market did not
embrace television initially because of the high cost of TV sets and the lack
of programming. However, as the American economy improved in the 1950s,
industry considered it the number-one medium for advertising. With the
establishment of the Du Mont Television Network, the modern trend of selling
advertising time to multiple sponsors became a permanent feature of the
commercial television industry in the U. S.
·
The Advertising Revolution
The industry became more
scientific in the 1960s. This period witnessed some of the most creative ads of
all time. Instead of focusing on the product, ads endeavored to strengthen the
brand and create an image for the company. Advertising also became subtler and
more intelligent, often adopting a conversational style.
Advertising also turned
into a major industry in the 20th century. The advertising of the
age cleverly used all media, outdoor newspapers, television, direct mail,
radio, magazines, outdoor signs, and of course the Internet.
·
Contemporary Advertising
Remote controls in the
hands of every spectator and access to hundreds of cable channels mean that
advertising must generate interest and entertain in order to survive. Along
with these challenges there are new frontiers such as Internet marketing.
Advertisers and agencies today see innovations like digital ads and interactive
advertising as challenges and opportunities rather obstacles.
·
Advertising Growth Takes A Break Amid Slowdown
Growth in ad slots on TV, radio
falls by half; print also feels the heat. Harsh Mariwala,chairman and managing
director of consumer products major Marico Industries, is keeping his
advertising budget on a tight leash.”Given the inflationary environment and
moderation in demand, there will be some cut in advertising spends, but it will
not be huge competitive intensity is high and to protect market share you have
to spend,” he says.
Pradeep Bakshi, chief
operating officer, unitary products business group, Voltas India, which makes
room air-conditioners and water coolers, says his company is scaling down its
advertising spend. “While as suggested be visible year.”
With demand for consumer and
fast moving consumer goods moderating there are clear signs that companies are
holding back spending. As a result, advertising revenues have grown at a much
slower pace in the first six months of this year compared to the previous year.
While exact figures are hard to collate, one way to catch the trend is to see
the amount of time advertisers are booking on television or the space they are
buying in newspapers and magazines. Data compiled by media research agency TAM,
the rate of growth of advertising on television in terms of the number of hours
was half during the January-June period this year in comparison with the
corresponding period last year.
In 2010, the advertising hours
on TV had grown 36 per cent in comparison to terms of column centimeter was
down to about 16 per cent in the January-June period as compared to the same
period a year ago. In 2010, the growth was 28 per cent compared to the previous
year.
In radio, advertising spots
in terms of hours grew 1 per cent in the January-June period. Last year, the
rate of growth was 46 per cent. While TAM doesn’t track the outdoor medium,
industry sources say the slump there is to the tune of about 30 per cent. The
only exception was the digital medium, which grew 60-70 per cent double the
growth rate in the corresponding period last year, national director, digital,
Starcom Media Vest Group. The share of digital medium is just 3 per cent f the
total advertising pie of Rs. 26,0000 crore. Print and television dominate with
46 per cent and 42 per cent share, respectively. The share of outdoor is about
5 per cent, while radio’s is 4 per cent, say industry experts.
Most people in the advertising
industry are not sure how long the slowdown will last given that inflation
continues to be sticky and advertisers are wary of spending too much on
mainline media at a time consumer sentiment is weak and they have to manage
expenses prudently.
Advertising agencies admit
the revenue growth is slowing. Arvind Sharma, chairman, Leo Burnett India,
said,
“Client spends grew 20 per cent last
year. This year, we are expecting 14-15 per cent growth.”
Mahesh Chauhan, former group chief
executive officer, Rediffusion Y&R, who now has his own agency, Salt Brand
Solutions, says,
“There is tension in the air. No
denying that. Nobody knows long this will last.”
Industry sources, Hindustan Unilever,
the largest spender, has cut its advertising budget for the year by Rs. 200-300
crore. In the 2010=11 financial year, HUL’s advertising and sales budget was
Rs. 2,764 crore.
Of this, the advertising
budget alone was Rs. 2,200 crore, said industry sources. This meant the
scale-back for the current year was over 9 per cent, they said. A mail to HUL
elicited no response till time of going to press. Sources at Mindshare, which
manages the HUL account, said the company chose to give cricket a miss this
year to prune its advertising budget.
Amin Lakhani, principal
partner, Mindshare, while declining to confirm or deny this, indicated that
advertisers had been cautious over the few months.
“Commodity cost pressures have been
severe. Companies dependent on them have had to prune expenditure. This is
bound to result in a scale-back in advertising,” he said.
FMCG analysts, companies are likely
to report advertising spends as a percentage of net sales for the first quarter
of the financial year.
·
Definition of Advertising
a. The non-personal communication of
information usually paid for and usually persuasive in nature, about products
or identified sponsor through various media.
b. Any paid form of non-personal communication
about an organization, product, service, or idea from an identified sponsor.
c. Paid non-personal communication from
an identified sponsor using mass media to persuade influence an audience.
d. The element of the marketing
communication mix that is non- personal paid for an identified sponsor, and
disseminated through channels of mass communication to promote the adoption of
goods, services, person or ideas.
e. An informative or persuasive message
carried by a non-personal medium and paid for by an identified sponsor whose
organization or product is identified in some way.
f. Impersonal; one way communication
about a product or organization that is paid by a marketer.
·
Relevance of Advertising in a Marketing Mix
Marketing mix consist of
four important variables of marketing, i.e. 4ps-product, Price Promotion and
Place. Apart from the traditional 4ps, there are also other variables, i.e.
Packaging, Posting, and Pace. Advertising is an element promotion. However, it
not only assists in promoting the product, but also affects the other variables
of marketing mix.
This can be explained as follows:
a)
Advertising and Product: A product is normally a set of physical elements, such as
quality, shape, size, colour and other features. The product may be of very
high quality. At times, the product is so designed that it requires careful
handling and operations. Buyers must be informed and educated on the various
aspects of the product. This can be effectively done through advertising. Thus,
advertising plays the role of information and education.
b)
Advertising and Price: he price is the exchange value of the product. A marketer may
bring out a very high quality product with additional features as competitors.
In such a case, price would be definitely high. But buyers may not be willing
to pay a high price would be definitely high. But buyers may not be willing to
pay a high price. Here comes advertising. Advertising can convince buyers
regarding the superiority of the brand and thus its vales its value for money.
This can be done by associating the product with prestigious people, situation,
or events. Alternatively when a firm offers a low price products the job of
advertising needs to stress the price advantage by using hard hitting copy. It
is not just enough to convince, nut it is desirable to persuade the buyer. Thus
advertising plays the role of conviction and persuasion.
c)
Advertising and Place: Place refers to physical distribution and the stores where
the goods are available. Marketer should see to it that too at the right time
when the buyers need it. To facilitate effective distribution and expansion of
market, advertising is of great significance. Thus advertising do help in effective
distribution and market expansion.
d)
Advertising and Promotion: Promotion consists of advertising publicity, personal selling
and sales promotion technique. Businessmen today have to face a lot of
competition. Every seller effective promotion to survive and succeed in this
competitive business world. Advertising can play a significant role to put
forward the claim of seller, and to counter the claims of competition and also
help to develop brand image and brand loyalty.
e)
Advertising and Pace: Pace refers to the speed in marketing decisions and
actions. It involves among other things the launch of new products or brand
variations at greater speed than before. As and when new brands are launched,
advertising plays an important role of informing educating and persuading
the customers to buy the product.
f)
Advertising and Packaging: The main purpose of packing is protection of the product
during transit, and preservation of quality and quantity. Nowadays, marketers
take lot of efforts to develop and design attractive as they carry advertising
value. A creatively design package attract the attention of the customers. It
also carries an assurance of quality and creates confidence in the minds of
customers to buy the product.
g)
Advertising and Positioning: product positioning aims at creating and maintaining a
distinct image of the brands in the minds of the customers. Though advertising
the marketer can convey the positioning of the brand and accordingly can
influence the buying decision of the target audience.
·
Classification of Advertising
Advertising is the promotion of a
company’s products and services though different mediums to increase the sales
of the product and services. It works by making the customer aware of the
product and by focusing on customer’s need to buy the product. Globally
advertising has becomes an essential part of the corporate world. Therefore,
companies allot a huge part of their revenues to the advertising budget.
Advertising also server to build a brand of the product which goes a long way
to make effective sales. There are several branches or types of advertising
which can be used by the companies.
Print Advertising: The print media has been used for advertising since
long. The newspapers and magazines are quits popular modes of advertising for
different companies all over the world. Using the print media, the companies
can also promote their products through brochures and fliers. The newspaper and
magazines sell the advertising space and the cost depends on several factors.
The quantity of space, the page of the publication, and the type of paper
decide the cost of the advertisement. So an ad on the front page would be
costlier than on inside pages. Similarly an ad in the glossy supplement of the
paper would be more expensive than in a mediocre quality paper.
Broadcast Advertising: This type of advertising is very popular all around
the world. It consists of television, radio, or Internet advertising. The ads
on the television have a large audience and are very popular. The cost of the
advertisement depends on the length of the ad and the time at which the ad
would be appearing. For example, the prime time ads would be more costly than
the regular ones. Radio advertising is not what it used to be after the advent
of television and Internet, but still there is specific audience for the radio
ads too. The radio jingles are quite popular in sections of society and help to
sell the products.
Outdoor Advertising: Outdoor advertising makes use of different tools to
gain customer’s attention. The billboards, kiosks, and events and tradeshows
are an effective way to convey the message of the company. The billboards are
present all around the city but the content should be such that it attracts the
attention of the customer. The kiosks are an easy outlet of the products and
serve as information outlets for the people too. Organizing events such as
trade fairs and exhibitions for promotion of the product or service also in a
way advertises the product. Therefore, outdoor advertising is an effective
advertising tool.
Covert Advertising: This is a unique way of advertising in which the
product or the message is subtly included in a movie or TV serial. There is no
actual ad, just the mention of the product in the movie. For example, Tom
Cruise used the Nokia phone in the movie Minority Report.
Public Service Advertising: As evident from the title itself,
such advertising is for the public causes. There are a host of important
matters such as AIDS, political integrity, energy conservation, illiteracy,
poverty and so on all of which need more awareness as far as general public is
concerned. This type of advertising has gained much importance in recent times
and is an effective tool to convey the message.
·
Various Media for Advertising
Based on an excellent small
business reference book “How to Start and Operate a Successful Small
Business: Winning the Entrepreneurial Game” by David E. Rye, as well as
contributions from our staffers, are the relative advertising and disadvantages
of the advertising media most frequently used by small businesses:
Newspapers:
Newspapers are one of the traditional
mediums used by businesses, both big and small alike, to advertise their
businesses.
Advantages:
·
Allows
you to reach a huge number of people in a give geographic area
·
You
have the flexibility in deciding the ad size and placement within the newspaper
·
Your
ad can be as large as necessary to communicate as much of a story as you care
to tell
·
Exposure
to your ad is not limited; readers can go back to your message again and again
if so desired.
·
Free
help in creating and producing ad copy is usually available
·
Quick
turn-around helps your ad reflect the changing Market conditions. The ad you
decide to run today can be in your customers’ hands in one to two days.
Disadvantages:
·
Ad
space can be expensive
·
Your
ad has to compete against the clutter of other advertisers, including the
giants ads run by supermarkets and department stores as well as the ads of your
competitors
·
Poor
photo reproduction limits creativity
·
Newspapers
are a price-oriented medium; most ads are for sales
·
Expect
your ad to have a short shelf life, as newspapers are usually read once and
then discarded.
·
You
may be paying to send your message to a lot of people who will probably never
be in the market to buy from you.
·
Newspapers
are a highly visible medium, so your competitors can quickly react to your
prices
·
With
the increasing popularity of the Internet, newspapers face declining readership
and market penetration. A growing number of readers now skip the print version
of the newspaper and instead read the online version of the publication.
Magazines
Magazines are a more focused,
albeit more expensive alternative to newspaper advertising. This medium allows
you to reach highly targeted audiences.
Advantages:
· Allows for better targeting of
audience, as you can choose magazine publications that cater to your specific
audience or whose editorial content specializes in topics of interest to your
audience.
· High reader involvement means that
more attention will be paid to your advertisement
· Better quality paper permits better
colour reproduction and full-colour ads
· The smaller page permits even small
ads to stand out
Disadvantages:
· Long lead times mean that you have to
make plans weeks or months in advance
· The slower lead time heightens the
risk of your ad getting overtaken by events
· There is limited flexibility in terms
of ad placement and format
·
Space
and ad layout costs are higher
Yellow Pages:
There are several forms of
Yellow Pages that you can use to promote and advertise your business. Aside
from the traditional Yellow Pages supplied by phone companies, you can also
check out specialized directories targeted to specific markets; interactive or
consumer search databases; Audiotex or talking yellow pages; Internet
directories containing national, local and regional listings; and other
services classified as Yellow Pages.
Advantages:
·
Wide
availability, as mostly everyone uses the Yellow Pages
·
Non-intrusive
·
Action-oriented,
as the audience is actually looking for the ads
·
Ads
are reasonably inexpensive
·
Responses
are easily tracked and measured
·
Frequency
Disadvantages:
· Pages can look cluttered, and your ad
can easily get lost in the clutter
· Your ad is placed together with your
competitors
· Limited creativity in the ads, give
the need to follow a pre-determined format
· Ads slow to reflect market changes
Radio:
Advantages:
· Radio is a universal medium enjoyed
by people at one time or another during the day, at home, at work, and even in
the car.
· The vast array of radio programme
formats offers to efficiently target your advertising dollars to narrowly
defined segments of consumers most likely to respond to you offer.
· Give your business personality
through the creation of campaigns using sound and voices
· Free creative help is often available
· Rates can generally be negotiated
· During the past ten years, radio
rated have seen less inflation than those for other media
Disadvantages:
§ Because radio listeners are spread
are over many stations, you may have to advertise simultaneously on several stations
to reach your target audience
§ Listeners’ cannot go back to your ads
to go over important points
§ Ads are an interruption in the
entertainment. Because of this, a radio ad may require multiple exposures to
break through the listener’s “tune-out” factor and ensure message retention
§ Radio is a background medium. Most
listeners are doing something else while listening, which means that your ad
has to work hard to get their attention
TV:
Advantages:
·
Television
permits you reach large numbers of people on a national or regional level in a
short period of time
·
Independent
stations and cable offer new opportunities to pinpoint local audiences
·
Television
being an image-building and visual medium, it offers the ability to convey your
message with sight, sound and motion
Disadvantages:
·
Message
is temporary, and may require multiple exposure for the ad to rise above the
clutter
·
Ads
on network affiliates are concentrated in local news broadcasts and station
breaks
·
Preferred
ad times are often sold out far in advance
·
Limited
length of exposure, as most ads are only thirty second long or less, which
limits the amount of information you can communicate
Direct Mail:
Direct
mail, often called direct marketing or direct response marketing, is a
marketing technique in which the seller sends marketing message directly to the
buyer. Direct mail includes catalogs or other product literature with ordering
opportunities; sales letters; and sales letters and with brochures.
Advantages:
·
Your
advertising message is targeted to those most likely to buy your product or
service.
·
Marketing
message can be personalized, thus helping increase positive response.
·
Your
message can be as long as is necessary to fully tell your story.
·
Effectiveness
of response to the campaign can be easily measured.
·
You
have total over the presentation of your advertising message.
·
Your
ad campaign is hidden from your competitors until it’s late for them to react.
·
Active
involvement- the cat of opening the mail and reading it-can be elicited from
the target market.
Disadvantages:
·
Some
people do not like receiving offers in their mail, and throw them immediately
without even opening the mail.
·
Resources
need to be allocated in the maintenance of lists, as the success of this kind
of promotional campaign depends on the quality of your mailing list.
·
Long
lead times are required for creative printing and mailing.
·
Producing
direct mail materials entail the expense of using various
professionals-copywriters, artists, photographers, printers, etc.
·
Can
be expensive, depending on your target market, quality of your list and size of
the campaign.
Telemarketing:
Telephone sales, or telemarketing, is an effective system for
introducing a company to a prospect and setting up appointments.
Advantages:
·
Provides
a venue where you can easily interact with the prospect, answering any
questions or concerns they may have about your product or service.
·
It’s
easy to prospect and find the right person to talk to.
·
It’s
cost-effective compared to direct sales.
·
Results
are highly measurable.
·
You
can get a lot of information across if your script is properly structured.
·
It
outsourcing, set-up cost is minimal
·
Increased
efficiency since you can reach many more prospects by phone than you can with
in-person sales calls.
·
Great
tool to improve relationship and maintain contact with existing customers, as
well as to introduce new products to them
·
Makes
it easy to expand sales territory as the phone allows you to call local,
national and even global prospects.
Disadvantages:
·
As
increasing number of people have become averse to telemarketing.
·
More
people are using technology to screen out unwanted callers, particularly
telemarketers
·
Government
is implementing tougher measures to curb unscrupulous telemarketers
·
Lots
of businesses use telemarketing.
·
If
hiring an outside firm to do telemarketing, there is lesser control in the
process given that the people doing the calls are not your employees
·
May
need to hire a professional to prepare a well crafted and effective script
·
It
can be extremely expensive, particularly if the telemarketing is outsourced to
an outside firm
·
It
is most appropriate for high-ticket retail items or professional services.
Specialty Advertising:
This kind of advertising
entails the use of imprinted, useful, or decorative products called advertising
specialties, such as key chains, computer mouse, mugs, etc. These objects are
distributed for free; recipients need not purchase or make a contribution to
receive these items.
Advantages:
·
Flexibility
of use
·
High
selectivity factor as these items can be distributed only to the target market.
·
It
done well, target audience may decide to keep the items, hence promoting long
retention and constant exposure.
·
Availability
of wide range of inexpensive items that can be purchased at a low price.
·
They
can create instant awareness.
·
They
can generate goodwill in receiver
·
The
items can be used to supplement other promotional efforts and media.
Disadvantages:
·
Targeting
your market is difficult.
·
This
can be an inappropriate medium for some businesses.
·
Longer
lead time in developing the message and promotional product
·
Possibility
of saturation in some items and audiences
·
Wrong
choice of product or poor creative may cheapen the image of advertiser.