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Advertising in Modern Marketing

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    ADVERTISING IN MODERN MARKETING

    TECNIA INSTITUTE OF ADVENCED STUDIES

    Submitted in partial fulfillment of the requirements

    For the award of the degree of

    Bachelor of Business Administration (BBA)

    To

    Guru Gobind Singh Indraprastha University, Delhi

    Guide: Submitted by:Dr. R.K. SHARMA HARSHITA ANAND

    00517001709

    Tecnia Institute of Advanced Studies, New Delhi

    New Delhi 110085Batch (2009-2012)

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    INTRODUCTION

    MEANING

    The word advertising has its origin from a Latin word advertise which means turns on.

    The dictionary meaning of the word is to announce publicity or to give public notice.

    In the early days of advertising, people used to advertise simply to announce the

    availability of goods and services. It was in 1904 that John E. kenned dramatically

    changed the description of advertising to salesmanship in print. For the first time it was

    clearly stated that the ultimate win of advertising is to sell. It is not good advertising

    unless it sells. It was emphasized that advertising did not just denote thinking up with

    pictures or writing clear slogans, nor was the purpose of advertising to entertain. It was

    considered to be a serious business tool with the purpose of assisting the sales of a

    product.

    Every advertiser pays the same tariff for a magazine or TV time. Yet a really good

    message can sell many times than poor one. As an advertising professional one is

    expected to produce high return on investment, readership, action and sales.

    According to John E. Kennedy:

    Advertising is simply a way of selling something in the most effective methods possible.

    Good advertising creates sales and not just attention.

    According to American Marketing Association:

    Advertising is any paid form of non personal presentation and promotion of ideas, goods

    or services by an identifiable sponsor.

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    HISTORY OF ADVERTISING

    Egyptians usedpapyrus to make sales messages and wall posters. Commercial messages

    and political campaign displays have been found in the ruins ofPompeii and ancient

    Arabia. Lost and found advertising on papyrus was common in Ancient Greece and

    Ancient Rome. Wall or rock painting for commercial advertising is another

    manifestation of an ancient advertising form, which is present to this day in many parts

    of Asia, Africa, and South America. The tradition of wall painting can be traced back to

    Indian rock art paintings that date back to 4000 BC. History tells us that Out-of-home

    Advertising and billboards are the oldest forms of advertising.

    As the towns and cities of the middle Ages began to grow, and the general populace was

    Unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use

    an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a

    horse shoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city

    square from the backs of carts and wagons and their proprietors used street callers (town

    criers) to announce their whereabouts for the convenience of the customers.

    As education became an apparent need and reading, as well as printing, developed

    advertising expanded to include handbills. In the 17th century advertisements started to

    appear in weekly newspapers in England. These early print advertisements were used

    mainly to promote books and newspapers, which became increasingly affordable with

    advances in the printing press; and medicines, which were increasingly sought after as

    disease ravaged Europe. However, false advertising and so-called "quack" advertisements

    became a problem, which ushered in the regulation of advertising content.

    As the economy expanded during the 19th century, advertising grew alongside. In the

    http://en.wikipedia.org/wiki/Papyrushttp://en.wikipedia.org/wiki/Advertising_campaignhttp://en.wikipedia.org/wiki/Pompeiihttp://en.wikipedia.org/wiki/Arabian_Peninsulahttp://en.wikipedia.org/wiki/Lost_and_foundhttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Papyrushttp://en.wikipedia.org/wiki/Advertising_campaignhttp://en.wikipedia.org/wiki/Pompeiihttp://en.wikipedia.org/wiki/Arabian_Peninsulahttp://en.wikipedia.org/wiki/Lost_and_foundhttp://en.wikipedia.org/wiki/Ancient_Greece
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    United States, the success of this advertising format eventually led to the growth of mail-

    order advertising.

    In June 1836, French newspaper La Presse was the first to include paid advertising in its

    pages, allowing it to lower its price, extend its readership and increase its profitability and

    the formula was soon copied by all titles. Around 1840, Volney Palmer established a

    predecessor to advertising agencies in Boston. Around the same time, in France,

    Charles-Louis Havas extended the services of his news agency, Havas to include

    advertisement brokerage, making it the first French group to organize. At first, agencies

    were brokers for advertisement space in newspapers. N. W. Ayer & Son was the first full-

    service agency to assume responsibility for advertising content. N.W. Ayer opened in

    1869, and was located in Philadelphia.

    OBJECTIVES AND SCOPE

    OBJECTIVES OF ADVERTISING

    1. Economic Objective

    The basic aim of all communication is to sell a product. The advertisement aims to

    accomplish this aim by communicating the right message to right audience, through

    the right medium, making use of right appeal at the right time. Advertisement makes

    use of the mass media to put across the companys message properly and effectively

    to a large number of audiences at a time. This helps in expanding the market for an

    idea, product or service necessitating mass production mass distribution.

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    2. Generates Employment

    Apart from furnishing the information to general public, advertising also generates

    employment. Advertising is a subject of study in management, public relations,

    journalism and mass communication etc. both creative and non creative people such

    as copywriters, art directors, account executives, media planners, commercial artists,

    studio people, radio and TV announcers, jingle singers, production people, etc. are

    employed in this profession.

    3. Facilitates process of exchange

    Advertising facilitates process of exchange of products by creating awareness of the

    products available that can satisfy a need of a customer. It helps in making known the

    product, its price, its availability, its functions and features to assist the economic

    process of exchange.

    4. Social objective

    Advertising acts as a mirror of the society. It reflects the cultural values of that

    society. For example, presence of elderly people in the advertisement or elderly

    people giving advice to the young generation gives a clear indication of the respect

    given to the elders in the society.

    5. Improves standard of living of people

    Advertising also helps in improving the standard of living of people. Today people

    have accepted certain new idea of using computers, ACs, VCDs, microwaves,

    electric shaving, vacuum cleaners, dish washers etc. They become aware of these

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    products through advertisement which makes them interested in a product category

    and ultimately they adopt it. The acceptance of these new products in their lives has

    contributed to the improvement of their standard of living.

    6. Spreads awareness

    Advertisements also spread awareness and responsibility among public e.g. Family

    planning, AIDS awareness, Polio eradication etc.

    7. Psychological objectives

    Advertising aims at achieving behavioral changes in the target segment in terms of

    the changes in the attitudes, beliefs and opinions and lifestyle etc. advertising aims to

    appeal to the potential customers psychological motives either rationally or

    emotionally. It is closely linked with awareness of brands to generate a particular

    behavioral response.

    Nature of advertising

    1. Advertising as an art

    Development of advertising idea is an art because it is the creativity of individuals,

    working in group which makes an advertisement noticeable and attractive. The

    creation of the copy including its message, theme and its layout is an art on which the

    success and failure of an advertisement campaign depend. Presenting an

    advertisement in an imaginative way, unique demonstration of product superiority or

    a memorable jingle is all about creativity which is an art.

    2. Advertisement as a science

    The other side of the coin projects advertisement as a science. Advertising

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    management has been developed as a discipline which is being taught to the students

    in various universities and institutions, at both under-graduate and post-graduate

    levels. Various principles, objectives, techniques and strategies of advertising has

    been developed to guide professionals develop a successful and effective advertising

    campaign.

    3. Advertising as a profession

    Advertising field offers numerous career opportunities. Advertising agencies have

    various departments such as client servicing, copy writing, media buyers, researchers,

    etc. where specialists are required to handle various positions. Advertisement itself

    has emerged as an important field of career opportunities.

    CHARACTERISTICS OF ADVERTISEMENT

    1. Paid Form

    Advertising is a tool of promotion which is paid for by the advertiser. There are

    standard tariff rates for the different types of media where the advertiser chooses to

    place an advertisement. Money is paid for second in radio and TV or per column

    centimeter (cc) in print media by the advertiser.

    2. Non-Personal Presentation

    Advertising is addressed to large audience. A salesman does face to face selling

    which is personal selling. On the other hand, advertising is not personal. It is neither

    delivered by any person nor is it addressed to any specific person. There is a

    facilitating agency i.e. media, which is used to carry the idea through various vehicles

    to the target audience, which are very large in number.

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    3. Promotion

    The aim of advertising is to persuade people to buy products and services or to accept

    ideas which are being advertised. The task of promoting these products and services

    is done through communicating to the target audience by using the right media

    vehicle.

    4. Identifiable sponsor

    The sponsor is the person or group which is paying for the advertisement. In case of

    advertisement, it can be easily identified as to what is the source of advertising

    message. Even if the advertisers name is not very clearly specified it is not difficult

    to identify the sponsor of that advertisement.

    5. Creative

    An advertisement should be creative. Without it, the reader or viewer may not notice

    the message. But creativity for its own sake is not sufficient. It should be used to

    present the ideas in an imaginative and dramatic way, showing how a product or

    service fulfills a consumers needs. The most creative advertisement is the one that

    ultimately proves itself in the market. Thus one of the most important features of

    advertising is creativity that sells.

    6. Investment

    Some people consider advertisement as a wasteful expenditure having short term

    effect. They believe that advertisement budgets are charged to the customers by

    raising the price. However, advertisement is an investment towards the building of

    goodwill and brand image in the market. It should be sustained over a period of time

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    or else its message will be forgotten.

    7. No direct relation-Advertisement budget and increase in sales

    One of the features of advertisement is that it stands alone for promotion. It does not

    guarantee increase in the sales. There exists no correlation between amount of money

    spent on advertisement and increase in the sales volume. There is no scale to measure

    the relationship between how much money to spend to increase some amount of sales.

    Money must be spent effectively, whatever be the budget. If spent well, even a small

    advertising expenditure can have a lot of impact.

    SCOPE OF ADVERTISING

    1. Development of creative idea

    Advertising involves development of a creative idea or a theme for promoting ideas,

    goods or services amongst the actual or potential buyers. The idea should be unique

    and catchy to get noticed by the target audience. Creative but appealing ideas are the

    ones that get noticed and aim to persuade the target audience.

    2. Client service

    One of the activities included in the process of advertisement is maintaining a direct

    and constant touch of the agency with the client about the expectations from the

    advertisement and its progress. Whatever that advertising agency attempts to do at

    every step, the approval of the client is required. One also has to follow whether the

    outcome of the campaign is as per the expectations of the client or not.

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    3. Media selection

    Choosing among the various media types available for carrying a message from the

    advertiser to the target audience in the most cost effective manner is yet another

    activity in advertising. So many media options are available with the advertiser to get

    the message across the target segment. Choosing the best available media within the

    limited resources is an important activity of advertising management.

    IMPORTANCE OF ADVERTISING

    The advertising is very important and vital part of a successful business. Advertising can

    be of any kind, some of the popular forms of advertising are:

    1) Print Media Advertising: This is the advertising in which we promote the business

    through Newspapers, Magazines, Journals and books. This advertising covers all of

    people who are related directly or indirectly with above said media. This is very popular

    form of advertising as print media is very important. We can further categorize the print

    media (newspapers) into Entertainment, Careers, Classifieds, technology (Computers,

    Electronics, defense), Real Estate, Lifestyles, Comics and much more. It also includes

    hoardings and banners.

    2) Television: TV is a very popular platform for advertising. It covers nearly all kind of

    audience and of all genders.

    3) Internet: The newest and increasingly getting popular form of media is internet. As it

    is the widest platform for the advertisers. It covers everything from a needle to a ship.

    These days more and more companies are focusing on advertising through internet.

    Internet advertising comprises of websites, portals, gadgets, feeds and search engines.

    With help of advertising the business firms publicize their businesses to make it more

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    popular and to create brand awareness. Advertising help them in increasing revenues

    which directly increases the profit of the companies. Many companies are having

    separate departments for advertising. The function of these departments is to make plan

    and make budgets for advertising. Advertising helps in forecasting sales of a company. If

    the company spends more on advertising then definitely the people will be more aware

    about the brands of the company.

    1. Advertising helps to keep the consumers informed about whatever new products or

    services are available in the market at their disposal. It helps to spread awareness

    about products or services that are of some use to consumer and potential buyers.

    2. The main aim of advertising, many believe is to sell. These are the kind of people

    who strongly oppose anything that make advertising seem unethical. Advertising

    on the whole helps business as well as the economy to prosper and makes the

    consumer aware of the various choices that are available to him.

    TYPES AND UTILITY OF ADVERTISING

    TYPES OF ADVERTISING MEDIA

    1. Television

    TV reaches every demographic category and achieves a creative impact with the use of

    color, audio and motion. Since its invention, television has been primary source of the

    advertising. It is its uniqueness and the reach which makes TV the most preferred type of

    media.

    The advertising bookings on the TV have to be done well in advance. It is normally done

    for each quarter rather than the whole year. The advertising rates of various segments are

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    hiked from time to time depending upon the success of programmes being aired during

    that slot.

    For example, the advertising rates for Star Plus prime time went upto Rs. one lakh per

    Second during the initial grand success of Kaun Banega Carorpati (KBC) a game show

    hosted by Amitabh Bachchan.

    ADVANTAGES OF ADVERTISEMENT IN TELEVISION

    TV is an extremely creative and flexible medium. Virtually any product or service

    message can be communicated to the audience through this media.

    The reach and exposure of television is country wide.

    Despite the higher cost of advertising on the television, it will remain extremely

    cost efficient for large advertisers who want to reach a mass audience.

    The audio visual impact of television commercial is said to higher as compared to

    another type of media.

    Television offers prestige to advertisers and gives the brand advertised a national

    image.

    DISADVANTAGES OF ADVERTISING IN TELEVISION

    Perishable- The message advertised on television is perishable and easily

    forgotten, if the repetitions are not there, which is often very expensive.

    Cluster- Most advertisements are shown in a cluster usually prior to, during

    breaks or at the end of the programme. The risk is that with so many

    advertisements, shown one after the other, the commercial may not be able to start

    out or get noticed or may be confused with some other commercial..

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    Zapping- With the number of television channels available to the target audience,

    the choice of watching programme has increased. At the time of commercials

    being aired on a particular channel, audience might switch on to some other

    channel with the help of a remote control. This acts as a waste of money on that

    group of audience.

    Attention- Many a time, not much attention may be given to the commercial

    because the viewer have the television on but may not be actually watching it.

    The potential audience may be busy in some other work.

    2. Radio

    Radio is a personal medium which has lost some of its importance after commercial

    advertisement were allowed on television. The listeners of the radio news and

    programmes had came down drastically as more and more audience switched on the

    television for news and other entertainment programmes. However radio regained its

    lost luster with FM band gaining much popularity. This helped the advertising budget

    to be directed towards radio. The listnership figure kept going up and the programme

    on the FM kept gaining popularity. The cost of advertisement on the radio is still low

    as compared to that of other broadcast media. However, the present situation is that

    bulk of advertisement is still done on television as it has an extensive reach as

    compared to that of the most popular stations of radio.

    ADVANTAGES OF ADVERTISEMENT ON RADIO

    As compared to other medium radio is cheaper media and has a distinct

    appeal. This gives scope to the advertiser for continuous advertisement on

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    radio.

    Radio offers local coverage on its medium wave channels. This facilitates

    the advertisers to reach the local markets with local products and local

    retail stores.

    For example, in Delhi on the FM band, advertisement for fast food chains

    of Dominos, McDonalds, etc. is done continuously.

    Radio can target its narrow listeners segment more selectively than

    television. For example, teenagers are often the heavy listeners of

    radio, especially in hostels and guest houses where it is not affordable

    to keep a television.

    Due to its relatively low cost of production and immediacy, radio can

    react quickly to the changing environment. Unlike television where the

    advertisement is scheduled for a quarter, advertisement on the radio

    can be place within a weeks time also. This is one of the reason

    advertisement for local sale of a product and inauguration of a

    showroom, are often aired on the radio.

    Radio is a mobile means of communication. Radio in the cars and

    other private and commercial vehicles give proximity to the

    advertisers for sale even when the listener is on the move.

    DISADVANTAGES OF ADVERTISEMENT ON RADIO

    Radio is only an audio medium and lacks the visual impact. Products that require

    demonstration washing machine or a virtual presentation like fabrics and ready

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    to wear garments cannot be advertised effectively on the radio. For a number of

    products visual impact is very important in taking the potential customer to the stage

    of desire to own the product, which is one of the limitations of radio.

    Often the listeners play radio only as background and rarely pay full attention to

    the advertisement being aired.

    Most of the radio stations register low average listeners. For an advertiser to

    achieve the acceptable reach and frequency, high repetition of advertisement is

    required, thereby pushing the costs up.

    Not sufficient listener research is available for important listener categories. For

    example, the drive time and ad-of-home categories of listeners. This acts as one of

    the limitations of the actual reach figures of radio.

    3. NEWSPAPERS

    Newspapers have become the breakfast table partner in most of the literate households.

    For the majority of the educated population, the day starts with the newspapers. This is

    one of the reasons that the advertisers see it as one of the most important media reaching

    in the hands of certain sections of society. Though most of the advertisements placed in

    the newspapers are primarily for local products or services, less than 15% of revenues

    come from national advertisers. Newspapers have an edge over most of the other media

    because certain detailed information regarding the product or service being advertised

    could be easily made available to the reader. Though newspaper is a very influential

    weapon in the hands of the advertiser, but the overall advertisement revenue for the

    newspapers is coming down year after year.

    ADVANTAGES OF ADVERTISEMENT IN NEWSPAPERS

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    The circulation and readership data about the newspapers are easily available

    from the Audit Bureau of Circulation (ABC). Independent research agencies also

    conduct periodical readership surveys and make the findings available to the

    advertisers. With the help of this information advertisers can easily and

    scientifically plan their advertising schedules.

    The production and media cost of newspapers advertisement are much lower than

    the advertisement placed in TV and radio. Thus, well placed and well timed

    advertisement in newspaper can prove to be more cost effective in reaching the

    target readers.

    Advertising in the newspapers is extremely flexible. The creative group has the

    opportunity for using different colours, fonts, designs, etc. Various coupons,

    sample sachets etc. can also be placed in the newspapers giving it a leverage over

    other media.

    The newspaper advertisement can be probed in for more detail by the reader. Due

    to its relatively cheaper rates, the advertisement space can be used for giving

    sufficient information about the components or ingredients of the product.

    The advertisement placed in newspapers can be read by the reader as per own

    convenience. The reader can revert any advertisement at his own choice or might

    look through it if he doesnt feel interested in it.

    DISADVANTAGES OF ADVERTISEMENT IN NEWSPAPERS

    Most of the leading newspapers have 60 percent advertising content. According to

    the research studies the average reading time is of less than 30 minutes per

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    newspaper. This means that very few advertisements are read by an average reader.

    Newspapers have a short life. Generally an advertisement missed on a day cannot

    be noticed again without a repetition.

    Clutter is yet another problem of advertisement. The reader zips through the pages

    and looks only for relevant news. As there are so many advertisements being

    placed in a newspaper for it would become difficult for the advertiser to get

    proper attraction for his product from the reader.

    One of the most obvious limitations of placing the advertisements in the

    newspapers is that it doesnt reach the illiterate or non reading sections.

    Usually one newspaper is read by all the members of the family. This means the

    advertisement is faced with the readers of different age groups, gender, life-style,

    etc. Targeting becomes difficult thus causing a lot of the waste in advertising.

    The quality of the paper used in most of the newspapers is not very high. This

    hinders the high quality display advertising in colour.

    4. MAGAZINES

    Magazines can be grouped as weekly, monthly, bi-monthly, etc. For example, Business

    World and India Today are weekly magazines, advertising and Marketing is a bi-monthly

    magazine and The Economist is a monthly magazine. The magazines can be further

    classified as general- interest magazines like India Today and Sarita or special interest

    magazines like film magazines- Star Dust, womens magazines like Femina; Students

    magazines Competition Success Review, sports magazines, business magazines,

    investment magazines, general knowledge refreshers, fashion magazines etc. Such a

    narrow classification of the magazines helps the advertisers to target a particular segment

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    of customers.

    ADVANTAGES OF ADVERTISEMENT IN MAGAZINES

    Magazines are easily available, in a number of general and specialized titles with

    both geographic and demographic editions. This provides an opportunity to the

    advertisers to reach the narrowly defined readers segments.

    Advertisements placed in the magazines have a long life and is often passed along

    to several readers. Business publications are especially useful as reference tools

    and are routinely passed along and kept for a long period of time.

    Advertisement for products or services positioned on lifestyle variable can be

    placed well in the magazines as compared to newspapers.

    Magazine advertising lends prestige to the product, especially when the magazine

    has high creditability and visibility.

    DISADVANTAGES OF ADVERTISEMENT IN MAGAZINES

    Most magazines have relatively long advertising deadlines, reducing the

    flexibility and the ability of advertisers to react to fast changing market

    conditions. Often new products cannot be brought to the notice of dealers and

    consumers within a very short time.

    Repetitive advertisement in the magazines do not have the same impact as that in

    the newspapers

    Despite the obvious advantages of magazines specialization, it rarely reaches the

    majority of a market segment. Therefore, for an effective exposure, either several

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    magazines must be used or some alternative media must supplement the magazine

    schedule.

    5. DIRECT RESPONSE

    Direct response means where in individual potential consumer of any demographic

    background, product-user or even- lifestyle segment could be reached with extreme

    accuracy. It is a medium particularly attuned to the target marketing philosophy of the

    1990s and has shown significant growth in the past decade. Direct mailers and

    telemarketing are the two forms where an individual inquiry is handled and is informed

    about the product or service. Direct mailers are more of an advertisement in print form,

    where a letter or a pamphlet describing the relevant details of the product is mailed to

    potential customers. The purpose of such mailers is either to generate curiosity, offer a

    discount or a special scheme and of course to end up getting a sale. On the other hand,

    telemarketing is an interactive process whereby the potential customer is detailed about

    the product or service by the companys executive on phone. Any queries can be sought

    on the phone there and then.

    ADVANTAGES OF ADVERTISEMENT THROUGH DIRECT

    RESPONSE

    Direct response has the ability to target even the most narrowly defined audience.

    Instant feedback and reaction to a particular advertising message can be taken

    through the mediums like telemarketing, coupons, etc.

    Advertising effectiveness becomes easier to be evaluated in direct response

    advertising by establishing a direct proportion between the amount spent on

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    advertising and the number of inquiries generated or the sales figure

    .

    The potential customer can be convinced for a sale more effectively and

    personally in case of telemarketing.

    DISADVANTAGES OF ADVERTISING THROUGH DIRECT

    RESPONSE

    High cost per inquiry may become a major problem with some forms of direct

    response advertising.

    Direct response type expenses on

    - Direct mailers printing

    Dispatching

    Personnel

    - Out- bond telemarketing telephone calls

    Personnel

    The cost of printing, production and personnel had all increased significantly in

    recent years.

    Many times, the list of the prospect may not be updated. The cost of trying to

    reach this group with changed address or changed phone numbers may pinch the

    total budget. Further, the cot of updating the list may also be considerably high.

    Some prospects do not respond well to the calls of the telemarketing executives.

    They feel it as a waste of time and even get rid, at times. Similarly information

    which is unsought, and reaches a prospect may not receive the required attention,

    causing a waste of effort and money.

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    Direct mails and telemarketing also has an image problem among many consumer

    groups and lacks the creditability that is enjoyed by some of other mediums.

    6. NON BROADCAST MEDIA

    Non broadcast media include:

    The slides displayed in the cinema halls during breaks or intervals. This also

    includes the advertisements displayed before the movie begins.

    Video cassettes also carry slides of different products or services which constitute

    a part of the non-broadcast media. Many a times, a running slide at the bottom or

    at top-end corners of the screen may also be displayed.

    Advertising messages usually at the end or between of a slide of the audio

    cassettes may also be used by the advertiser as a means to convey the message to

    the prospective buyers.

    Today cable TV network has enveloped most of the cities and towns. Local

    advertisements can be displayed as a full-fledged audio-visual advertisement

    during various breaks, or as graphic full-screen slides or a running slide at the

    bottom of the screen.

    All the above mediums together constitute the non-broadcast media and is very

    frequently being used by the advertisers.

    ADVANTAGES OF ADVERTISEMENT ON NON-BROADCAST

    MEDIA

    The non-broadcast media is a very cost-effective media. It reaches the target

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    audience at a cost which is affordable and avoids any kind of wastage, for

    example the advertisement of a newly released audio-cassette may be placed at the

    end of the audio cassette. Music lovers might get interested in buying the advertised

    cassette.

    The repetition of the message also is cost effective and might act as a

    reinforcement to get interested in buying a product. Whenever the audio or video

    cassette is played, the advertised message is displayed.

    Cinema ensures a captive audience as people come to the hall to watch a movie

    of their choice. This choice ensures a higher degree of concentration as compared

    to TV viewing.

    DISADVANTAGES OF ADVERTISEMENT ON NON-BROADCAST

    MEDIA

    Zipping is one of the most common problems faced by the audio or video cassette

    advertising. This means that the audience may fast-forward the track whenever

    advertised message plays on the cassette.

    Constantly running slide on the cables or the videocassette may irritate the

    viewers. Instead of generating a positive attitude towards the advertised product,

    the audience may get hostile. This is especially true when the running slide

    causes any sort of disturbance in viewing the main programme or any disturbance

    in the audio performance is caused.

    7. OUTDOOR MEDIA

    Outdoor advertising in India is mainly used by the marketers of consumer goods,

    government agencies, social and charitable organizations, hospitals, commercial houses,

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    newspapers etc. for commercial purposes and the municipal authorities for civic

    purposes. Outdoor media includes:

    -Posters

    -Banners

    -Wall paintings

    -Hoardings

    -Neon signs and displays

    -Sky advertising

    Banners, hoardings and displays can be put up on the road sides, on the road-dividers, bus

    stands, railway stations and highways. One of the most important sites in the outdoor

    media is the playground where matches like cricket, football, tennis, etc are to be played.

    Here the viewership is both direct and indirect, as the audience is present in the ground,

    as well as watching the match on there television sets. Outdoor media is a visual medium

    intended for the brand name reinforcement. It can also be effective in introducing new

    products. Since the hoarding is designed in an attractive manner it is difficult to ignore.

    ADVANTAGES OF ADVERTISEMENT ON OUTDOOR MEDIA

    Outdoor media with the messages put at the right places, can reach most of the

    production in a market with high frequency at very low cost per exposure.

    It is one of the best mediums to be used for the announcements or the introduction

    of new products and the brand name reinforcement.

    Medium like neon signs and sky advertising and make use of attractive colours

    and lights. These are highly visible and instantly catch attention.

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    Teaser campaigns can be effective in the outdoor media, for example, the

    commercial launch of the Rediff, Alto, Aquafina, etc. were very effectively

    placed in the outdoor media as teaser campaigns.

    DISADVANTAGES OF ADVERTISEMENTS ON OUTDOOR MEDIA

    Outdoor media can carry very brief message of the advertiser. The copy usually is

    limited to 7-10 words. A detailed sales message cannot be read by a passer by and

    hence is ineffective.

    Outdoor media has been attacked constantly as a visual pollutant which distracts

    the driver. This has made it the topic of some controversy and legal restrictions.

    Some states and local legislation bans the medium partially and some ban it

    altogether. This negative image may discourage some advertisers from using the

    medium.

    The effectiveness of outdoor media is extremely difficult to evaluate. For

    example, to evaluate the hoarding sites, criteria such as visibility, height and

    illuminations angle, competition, deflection and obstruction as well as the number

    of pedestrians and the vehicles passing by is used. But the optimum level of each

    of the criteria is a difficult thing to assess.

    8. VEHICULAR MEDIA

    Advertisers leave no opportunity untapped to deliver the desired message to the

    prospective customers. One of the most mobile mean of communication to the target

    audience by advertisers is the vehicular or the transit media. This refers to the paintings

    or stickers pasted on the vehicles which keep moving in the city or in an area of appeal of

    the advertised product.

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    Buses, taxis, auto rickshaws carry the advertised message at a very nominal price. These

    vehicles move in the whole town or city and make the advertised message available to a

    wide range of audience. The advertised message may be put outside or inside the vehicle.

    Private vehicles like scooters, etc. carry the advertised message on the step-in-wheels

    covers. Stickers are pasted on the back window of cars and other four wheels private

    vehicles. Products like soft-drinks, along with social awareness messages like AIDS,

    Cancer, education to the girl child, etc. may be advertised through this media.

    ADVANTAGES OF ADVERTISEMENT ON THE VEHICULAR MEDIA

    The vehicular media is comparatively cheap and records for higher exposure.

    It works as a strong reinforcement of the brand name. it is therefore very effective

    for reminder advertisements.

    Bright colours and creativity can catch the attention of the passers in a powerful

    way putting the message to an advantage.

    The commuters inside the bus and trains have enough time to gaze through the

    advertised message. Similarly the passengers waiting at the bus stop and railway

    station get time to read the advertised message on the buses and trains.

    Since the vehicles are moving, more number of exposures can be generated.

    DISADVANTAGES OF ADVERTISEMENT ON THE VEHICULAR

    MEDIA

    People have raised objection against the vehicular advertisement as it distract the

    attention of people driving on the road. Further concern has been raised by groups

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    about its appearance on the public transport vehicles.

    Since the vehicles move at a speed. The advertised message may not be read by

    the people. On the other hand, those who are commuting may not have so much

    of time to read the message.

    This media does not focus on a particular audience group. The message travels

    wherever the vehicle moves. Diverse group of people might gaze at it. Therefore

    selectivity of the audience is missing.

    9. INTERNET

    It is very commonly said that the new era is the internet era. Everywhere, everyone seems

    to be availing of the facilities on-line i.e. internet. Whether one owns the PC or not, cyber

    cafs have made it possible for the interested people to surf the net. According to the

    recent survey conducted by NASSCOM, majority of the net users access the net for the

    purpose of e-mail (electronic mail) and chatting. Only a small proportion of the users do

    electronic shopping i.e. buying and selling on the internet. The websites on the net also

    provides a wide range of information on almost every aspect of a variety of fields like

    geography, science, general information, etc. Thus, such sites called the search engines

    are also frequently accessed for the purpose of collecting information. During the time

    when a person is connected to the net, his concentration is on the screen. Advertisers

    make the best use of this concentration and make their message available on this screen

    in different forms to catch the attention of the net surfers:

    Most common advertisements over the net are the Banner-advertisement. These

    are the advertisement of different sizes and are usually placed on the top of the

    screen in such a way that the surfer might doubtfully understand it as the part of

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    whole screen.

    The second forms of the advertisements are the button advertisements are the

    button advertisement. These are small buttons which, when clicked on get a

    connection to the website of the advertised message. These buttons are usually of 3

    X 3 cms in dimension and are placed on the top corners of the web page.

    More and more of the animation and inactive advertisement are coming to the

    fore with more and more subscribers getting connected on-line. Detailed

    information can be made available to the surfer on the click of his mouse. This

    facilitates the surfer to get into the detail of a particular message only if he is

    interested in proving for more. But generally these messages are so designed that

    surfer gets attracted to click the message.

    ADVANTAGES OF ADVERTSEMENT ON THE INTERNET

    Advertisements placed on the internet are targeted to the particular audience type.

    For example advertisement of baby products can be placed on the baby center

    site. Demating and other finance relating advertisements can be placed on the

    financial advertisements, gift items advertisements can be placed on the sites

    relating to e-greetings, etc.

    The internet advertisement is more interactive than any other form of

    advertisement. Here the viewer can probe in for more details on the parameters of

    his choice.

    Internet advertisement provides the net surfer with the virtual experience of not

    only watching the audio and listening to the visual effects but also to feel and

    experience the product. For example, driving a car, etc.

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    Internet is one media which has an exposure across the national boundaries.

    Portals like Yahoo, Alta vista have the viewership across different countries.

    Thus advertisers on the internet have an opportunity to spread awareness about

    their product at the global level.

    The behavior of the internet users while watching the advertisement can be

    measured, the number of click through, page hits and movement of the eyeballs,

    etc. give an idea to the advertiser about the interest of the viewer on the net. This

    helps in designing attractive advertisement messages.

    DISADVANTAGES OF ADVERTISEMENT ON THE INTERNET

    Presently, bandwidth is a major problem in India. As a medium it is not quick

    enough. To be connected on-line is a task that checks the patience of the person.

    The user has the freedom to choose from thousands of websites. It is quite

    difficult to motivate him to visit a particular site.

    The frequent net-users get used to viewing the web page. Their eyes become

    accustomed to ignoring the advertisement and they work very smartly only to

    watch the information of their use. This accounts as wastage on the part of the

    advertisers.

    The click-through advertisement do not account for the actual page views. Many a

    times the surfer might click through an advertised message but may not actually

    view it and come to the main site.

    Presently internet advertising is being used only as a supplementary media.

    Internet advertising as a full fledged media has not developed till today. It

    accounts for a nominal part of the total advertising budget.

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    10. MISCELLANEOUS MEDIA

    Apart from above mentioned media, advertisers today have found numerous other

    mediums to make their presence felt by the target audience. The aim is to catch the

    attention of the prospects by any means. Any place or item, wherever a number of people

    put their eyes on, is being tapped by the advertisers to convey their message.

    POINT OF PURCHASE ADVERTISEMENT

    Marketers put attractively designed messages in innovative ways at the point where

    the purchase is to be made. Departmental store, super stores, chemist shops and other

    shops and stores catering to the consumer segments provide ample opportunity to the

    marketers for providing an information to the last stage of decision making to the

    customer just before he buys any brand.

    The most common ways the advertisers tap at the point-of-purchase are:

    -Putting banners

    -Hangings

    -Baskets

    -Stickers

    -posters

    One of the most impressive ways at the point-of-purchase is window advertising.

    Here the marketer buys a shelf or two by giving some sort of incentive to the

    shopkeeper is required to reserve the space for the brands of marketer. The space

    carries the brand posters in the background and very loosely kept samples of brand.

    This gives an attractive look away from the cluster of hundreds of other competitive

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    and non-competitive brands. This method is very commonly used by Hindustan lever

    ltd. (HLL) for the promotion of its various brands like, Fair and Lovely, and Pears

    naturals.

    The point-of-purchase advertisement is considered to be highly effective as a

    reminder advertisement just before the customer is about to take the decision.

    The point-of-purchase advertisement is aimed at hitting just before the action stage in

    the consumer decision making process. Therefore, it has its own importance in

    reminding of a brand name to a customer just before he is ready to buy a product.

    This reminder may work in the advantage of the marketer, when the customer might

    buy a brand on impulse or the one which is more visible.

    SPECIALITY MEDIA

    Media a times, for the sake of more visibility, marketer attempts to use things like:

    - T-shirts

    - Caps

    - Bands

    - Buttons

    - Bags

    - Stickers

    to put their message on and distribute it among the general group of people. For example,

    Maggie noodles was advertised by Nestle India on T-shirts, bags, caps, etc. and

    distributed

    to the school students.

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    Specialty media may also, at times take the form of sales promotion. When T-shirts, bags,

    etc. are given on the purchase of a specific quantity of the brand. The aim of specialty

    media is the reinforcement of a brand name with more of its visibility.

    METHODS OF ADVERTISING BUDGETING

    Definition: Money set aside by the advertiser to pay for advertising. There are varieties

    of methods for determining the most desirable size of an advertising budget.

    Here are some of the methods companies use to set their advertising campaign budgets.

    1. The Percent of Sales Method: The advertising campaign budget is a constant

    percentage of desired sales. A car manufacturer may spend less than 1% of sales, while a

    small retailer may budget 3 -7% of sales. A jewelry store may budget 8 -12% of sales and

    other companies may budget 20% or more.

    This method works as long as the advertising campaign budget is set as a percentage of

    desired sales. If the budget is set to actual sales, and sales drop, you do not want to cut

    your advertising campaign budget, or you will get caught in a downward spiral.

    2. The Task Objective Method: How much money do you need to spend to reach the

    specific goals you have outlined for the advertising campaign? This is especially effective

    when you are starting out, or if you are trying to grow rapidly. Some advertising

    campaign strategies call for heavy spending upfront in order to win long-term customers.

    3. The Historical Method: How much did you spend to reach your sales goals in

    previous years or periods? You will find that by tracking your ads, you will know in

    advance what you need to do to accomplish your goals.

    4.Share of Market - Share of Voice: This method links market share to advertising

    expenditure. A company with a 20% market share would spend slightly more than 20%

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    of the total advertising dollars spent in the market for that product or service. For new

    companies, expenditures would be 1.5 times the desired market share until that position is

    attained. [So if you want 20% market share, you spend 30% of total advertising dollars in

    that market until you get it].

    5.Competitive Parity: With competitive parity you spend in equal amounts to your

    competitors as a percentage of market shares. This is a self-defense method of budgeting

    marketing and advertising expenditures.

    6. The Combination Method: The best advertising campaign budget you can set will

    be based on some combination of all of the previous models. You want to maintain a

    minimum level of advertising, fulfill specific goals, maintain your market share, keep up

    with your competitors, and compare everything to last year.

    SURROGATE ADVERTISING

    Surrogate advertising is when an advertisement has the logo or brand of another company

    advertised within it. An example would be a product that shows in the commercial

    retailer outlets that offer their product in stores.

    Surrogate advertising is advertising which embeds a brand or product message inside an

    advertisement which is ostensibly for another brand or product. For example, a cigarette

    company might issue public service announcements relating to a topic such as lung

    cancer, using the company's logo or distinctive brand colors in the ads so that people are

    exposed to the company's branding without seeing an explicit ad for the company's

    product. The company would justify the advertisement by claiming that it's an example of

    social responsibility.

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