advertising in modern marketing
TRANSCRIPT
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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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