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This Module explains Advertisement Definition, Concept, Features, Objective of Advertising, Purpose, Importance, Characteristics, Advertising Functions, Advertising and Marketing Management, Classification of Advertisement, Creation of Ads and Advertisement Industry in India.

1. Advertisement Prepared By Jitendra Patel Assistant Professor Prestige Institute of Management and Research, Indore

2. Content Advertisement Definition Advertisement Concept Features of Advertisement Objective of Advertising Purpose of Advertising Importance of Advertising Characteristics of Advertising Advertising Functions Advertising and Marketing Management Classification of Advertisement Creation of Ads 11.1 Wrong Ads 12. Advertisement Industry in India.

3. Can you imagine world without advertisement? If advertisement not exits then what happened with people? How can people get information about such products? How can traders’ sales their products? How can we expand ratio of market? How can we know about such delicious foods? If advertisement not ….??????

4. “Advertising consists of all activities involved in presenting to a group of non-personal, oral or visual, openly sponsored identified message regarding a product, service, or idea. The message, called an advertisement, is disseminated through one or more media and is paid for by the identified sponsor.” - William Stanton

5. Advertisement includes so many things…. Education, Awareness about health, Science & Technology, Vehicles, Jewelers, Social Awareness, Politics, Economics, Job and so on… So many things included in it. If we pick up any of the field advertisement also plays a vital role. Sometimes it is invisible because we can’t know that this thing also included in advertisement. But to small thing to large thing advertisement becomes important.

6. Advertisement as a whole….

7. Advertisement The world has become a global market Modern market Dynamic, Competitive, Consumer-oriented Marketing Process Consumers Competitors Advertisement Inform Attract Convince the valued Customers Advertisement Special message Sent by the specific person For specific group of people(listeners, readers &viewers) For the specific period of time Specific manner To achieve the specific goals

8. The word advertisement came from Latin word “ad vertere” it means “to turn toward” Advertisement means oral, written, audio-visual message addressed to the people for the purpose of informing them to buy the products or to act favorably toward idea or institution.

9. Features of Advertisement

10. Non-personal Advertisement is a type of non-personal or mass communication with the target audience, large number of people are addressed at time. It is called as non-personal salesmanship. Paid Form It is not free of cost. Advertiser (sponsor) spend money for preparing message, buying media, and monitoring advertising efforts. Company has to prepare its advertisement budget to appropriate advertising costs.

11. Wide Applicability Advertising is a popular and widely used means for communicating with the target market. It is not used only for business and profession, but is widely used by museums, charitable trusts, government agencies, educational institutions, and others to inform and attract various target publics.

12. Objective of Advertising Preparing Ground for New Product Creation of Demand Facing the Competition Creating or Enhancing Goodwill Informing the Changes to the Customers Neutralizing Competitor's Advertising Barring New Entrants

13. Purpose of Advertisement Communicates information Creates ground for personal selling Educates people Creates and extends demand Creates image for the product or service Builds goodwill Obtain dealer support Counters competition

14. Importance of Advertising Product Launch  – The foremost aim of advertising is promotion. Hence, advertising is essential, especially for a new product that has to be launched in the market. Advertising helps convey the information regarding launch of the new product. Retain the existing customers  – It is essential that customers keep following, buying and using your brand. And this is where advertising helps companies again! It keeps on reminding the customers about the brand and so, helps in retaining the customers and increasing the sales.

15. Brand Promotion –  Promotion is quintessential if any brand wants to stay in the market. This goal is achieved with the help of advertising which promotes a product, company or service. When a brand gets established with the help of advertising, it becomes a promise of quality and the customers start expecting from a brand. Thereafter, the stage arises where advertising starts acting as a reminder. It reminds and convinces customers that their chosen brand is still there. Educates people  – Advertising is not only about promotion! It also educates people and makes the society aware about various issues. Many social issues like female foeticide , child labor, child abuse, etc., are also raised thorough sensible advertisements. Thus, advertising also helps in educating people and spreading awareness. Importance of Advertising

16. Importance of Advertising Comparison  – Advertising also provides the opportunity of comparing various products to the customers. Based on features, qualities or specifications described through advertising, customers can take their pick on the available products.

17. 17 Characteristics of Advertising Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Advertising Indirect and non-personal Low Little Delayed One-way Yes Yes Fast Same message to all audiences

18. 5 M’s of advertising:

19. 19 Advertising Functions Informing Persuading Reminding Adding Value Assisting Other Company Efforts

20. Advertising and Marketing Management 1. Advertising and Product : A product is normally a set of physical elements, such as quality, shape, size, colour and other features. The product may be of very high quality .At times, the product is so designed that it requires careful handling and operations. Buyers must be informed and educated on the various aspects of the product. This can be effectively done through advertising. Thus, advertising plays the role of information and education. 2. Advertising and Price : The price is the exchange value of the product. A marketer may bring out a very high quality product with additional features as compared to competitors. In such a case, price would be definitely high. But buyers may not be willing to pay a high price would be definitely high. Here comes advertising. Advertising can convince buyers regarding the superiority of the brand and thus its value for money. This can be done by associating the product with prestigious people, situations, or events. Alternatively when a firm offers a low price products the job of advertising needs to stress the price advantage by using hard hitting copy. It is not just enough to convince, but it is desirable to persuade the buyer. Thus advertising plays the role of conviction and persuasion.

21. 3. Advertising and Place : Place refers to physical distribution and the stores where the goods are available Marketer should see to it that the goods are available at the convenient place and that too at the right time when the buyers need it. To facilitate effective distribution and expansion of market, advertising is of great significance. Thus advertising do help in effective distribution and market expansion. 4. Advertising and Promotion : Promotion consists of advertising, publicity, personal selling and sales promotion technique. Businessmen today have to face a lot of competition. Every seller needs effective promotion to survive and succeed in this competitive business world. Advertising can play a significant role to put forward the claim of seller, and to counter the claims of competitor. Through effective advertising, sellers can face competition and also help to develop brand image and brand loyalty.

22. 5. Advertising and Pace : Pace refers to the speed in marketing decisions and actions. It involves among other things the launch of new products or brand variations at greater speed than before. As and when new brands are launched, advertising plays an important role of informing, educating and persuading the customers to buy the product. 6. Advertising and Packaging : The main purpose of packaging is protection of the product during transit, and preservation of quality and quantity. Nowadays, marketers take lot of efforts to develop and design attractive packages as they carry advertising value. A creatively design package attract the attention of the customers. It also carries an assurance of quality and creates confidence in the minds of customers to buy the product. 7. Advertising and Positioning : Product positioning aims at creating and maintaining a distinct image of the brands in the minds of the customers. Through advertising the marketer can convey the positioning of the brand and accordingly can influence the buying decision of the target audience.

23. Local/Regional One good example of this is the Nirma Washing Powder. It started selling in Gujarat in the initial days. Later on if spread to all parts of India. So the company’s advertising, which was confined to Gujarat in the beginning, later spread to all over the country.

24. National advertising is undertaken by organizations doing business all over a country. When the target audience is spread all over the country, the advertising uses national media. In India, national advertising uses both Hindi and English languages. They use Doordarshan and other TV channels, all the major Hindi and English newspapers and magazines. Business houses like Hindustan Lever, Godrej, Escorts, Tata, etc. spend crores of rupees every year on national advertising. Companies doing national advertising also do regional advertising to strengthen their position in specific regions.

25. International Ads With the lifting of trade barriers and the opening of previously closed markets, MNCs now are spreading their businesses to many countries. Cola giants Coke and Pepsi, fast-food giants like McDonald's, KFC and Pizza Hut, companies like UniLever , IBM, Sony etc., have got strong presence in hundreds of countries. These companies use international media like the Time or Newsweek magazines,Readers Digest and the entire major international. TV channels like CNN, Star etc.

26. - Print Advertising (Using Newspapers and Magazines) - Broadcast Advertising (Using Radio & Television) - Video Advertising - Cinema Advertising - Outdoor Advertising (Posters, Wall writing, Hoardings, Boards, Various types of signboards, Banners, Balloons, Sky writing etc. - Transit Advertising (Using a variety of vehicles) - Postal Advertising (Direct Mail Advertising - used by Readers Digest and many direct selling companies) - Point of Purchase (POP) Advertising : Usually printed publicity material like leaflets, brochures, danglers, pamphlets, posters or other special displays distributed or displayed at the places where products are sold. - Internet Advertising - Special Media Advertising : Advertisers sometimes use the backside of matchboxes, the postal and other official stationary to give brief messages. These advertising messages are mostly social . Classification of Advertising: On the basis of Media

27. Consumer product advertising  This is done to impress the ultimate consumer. An ultimate consumer is a person who buys the product or service for his personal use. This type of advertising is done by the manufacturer or dealer of the product or service. Examples: Advertisements of Intel, Kouttons (shirt), Lakme (cosmetics) etc.  Industrial product advertising : This is also called Business-to-Business Advertising. This is done by the industrial manufacturer or his distributor and is so designed that it increases the demand of industrial product or services manufactured by the manufacturer. It is directed towards the industrial customer. The marketer chooses only trade-specific magazines or journals that the targeted customers are likely to read. Examples: Assam Oil, servo, Oil and Natural Gas Corporation, Oil India etc.

28. Tradeadvertising   This is done by the manufacturer to persuade wholesalers and retailers to sell his goods. This is executed by manufacturers and distributors to influence the professionals of a particular trade or business stream. The doctor is convinced by medical representatives of pharmaceutical firms like Cipla , Tata Steel, Ambuja Cement etc.  Professional advertising   This is executed by manufacturers and distributors to influence the professionals of a particular trade or business stream. These professionals recommend or prescribe the products of these manufacturers to the ultimate buyer

29. Direct action advertising   This is done to get immediate responses from customers. Examples: Season’s sale, purchase coupons in a magazine. Indirect action advertising  This type of advertising exercise is carried out to make a positive effect on the mind of the reader or viewer. After getting the advertisement he does not rush to buy the product but he develops a favourable image of the brand in his mind. He would buy only that product or service whose image is positive in his mind. Examples: The ad of Indica V2 (More car per car), Amul (the taste of India ).

30. Primary demand advertising It is also called Generic Advertising. This category of advertising is designed to increase the primary demand. The name of the firm is advertised, but the objective of the exercise is to increase the demand of products of a particular class and not the demand of the products of that company.  Selective demand advertising  This is done by a company or dealer to increase the company demand. The company would advertise its own brand only. The retailer can also advertise a particular brand. Examples: Titan wrist watch , Hero and Honda bike , Sony television etc.

31. Step 1 - Briefing:  the advertiser needs to brief about the product or the service which has to be advertised and doing the SWOT analysis of the company and the product. Step 2 - Knowing the Objective:  one should first know the objective or the purpose of advertising. i.e. what message is to be delivered to the audience? Step 3 - Research:  this step involves finding out the market behavior, knowing the competitors, what type of advertising they are using, what is the response of the consumers, availability of the resources needed in the process, etc. Step 4 - Target Audience:  the next step is to identify the target consumers most likely to buy the product. Creation of Advertising

32. Step 5 - Media Selection:  now that the target audience is identified, one should select an appropriate media for advertising so that the customers who are to be informed about the product and are willing to buy are successfully reached. Step 6 - Setting the Budget:  then the advertising budget has to be planned so that there is no short of funds or excess of funds during the process of advertising and also there are no losses to the company. Step 7 - Designing and Creating the Ad:  first the design that is the outline of ad on papers is made by the copywriters of the agency, then the actual creation of ad is done with help of the art directors and the creative personnel of the agency. Creation of Advertising

33. Step 8 - Perfection:  then the created ad is re-examined and the ad is redefined to make it perfect to enter the market. Step 9 - Place and Time of Ad:  the next step is to decide where and when the ad will be shown. Step 10 - Execution:  finally the advertise is released with perfect creation, perfect placement and perfect timing in the market. Creation of Advertising

34. Step 11 - Performance:  the last step is to judge the performance of the ad in terms of the response from the customers, whether they are satisfied with the ad and the product, did the ad reached all the targeted people, was the advertise capable enough to compete with the other players, etc. Every point is studied properly and changes are made, if any. Creation of Advertising

35. Wrong Advertisement

36. Wrong Advertisement

37. Wrong Advertisement

38. Wrong Advertisement

39. Advertising in India The Indian advertising industry has evolved from being a small-scaled business to a full-fledged industry. The advertising industry is projected to be the second fastest growing advertising market in Asia after China. It is estimated that by 2025, the share of ad spend in India’s will be around 26.30% 54.39 Billion US Dollar.

40. The Indian government has given tremendous support to the advertising and marketing industry. Advertising expenditure is likely to increase in the financial sector, driven by Reserve Bank of India (RBI) policies which could result in a more favourable business environment. Also, proposed licences for new banks and better market sentiments render the advertising and marketing industry in India a fertile space.

41. Market Share

42. Market Size Print contributes a significant portion to the total advertising revenue, accounting for almost 41.2 per cent, whereas TV contributes 38.2 per cent, and digital contributes 11 per cent of the total revenue. Outdoor, Radio and Cinema make up the balance 10 per cent. India’s digital advertisement market is expected to grow at a compound annual growth rate (CAGR) of 33.5 per cent to cross the Rs 25,500 crore (US$ 3.8 billion) mark by 2020.* The Internet's share in total advertising revenue is anticipated to grow twofold from eight per cent in 2013 to 16 per cent in 2018. Online advertising, which was estimated at Rs 2,900 crore (US$ 435 million) in 2013, could jump threefold to Rs 10,000 crore (US$ 1.5 billion) in five years, increasing at a compound annual rate of 28 per cent.

43. New Initiative The Indian Railways is working on a new advertising policy aimed at installing 100,000 big digital screens at 2,175 railway stations across the country, which is expected generate Rs 11,770 crore (US$ 1.76 billion) revenue annually. Times Internet Limited plans to invest US$ 100 million in development of smart marketing technology platform Colombia, which will serve its marketers to engage with around 200 million digital users per month. Zarget , a Software-as-a-Service ( SaaS ) based conversion rate optimisation start-up, has raised US$ 1.5 million in seed funding from Accel Partners, Matrix Partners and Freshdesk Inc's founder Mr Girish Mathrubootham , which will be used to build more marketing related tools. Snapdeal.com, one of India’s largest and fast growing e-commerce companies, has acquired TargetingMantra (Insightful Pvt. Ltd), which is a Gurugram -based marketing and personalisation services company, as part of its plan to enhance the experience for its customers. Indian Railways has appointed Ernst & Young (EY) as a consultant to discover its advertising potential, which is in line with the Railway Budget proposal of increasing non-fare earnings to over Rs 5,000 crore (US$ 750 million) in five years.

44. MoMark Services, a mobile based customer engagement platform for small and medium businesses, has raised US$ 600,000 from YourNest Angel Fund and LNB Group, to scale up its product offerings and talent acquisition. Tata Motors has appointed renowned football player Lionel Messi as the global brand ambassador for Tata cars and utility vehicles globally, with an aim to tap the youth market and expand visibility and presence of Tata Motors in newer markets. Advertising agency J Walter Thompson has launched its global digital agency network ' Mirum ' in India which will provide services such as strategy and consulting services, campaigns and content, experience and platforms, analytics and innovation and product development, with the target to increase non-traditional media revenues to 40-45 per cent from 35 per cent currently. DDB Mudra Group has planned to launch ‘Track DDB’, a brand that addresses the data-led world of marketing communications, which will provide services like creative, data and digital analytics, database marketing, CRM, digital and mobile marketing in India. All India Radio (AIR) has appointed ‘ releaseMyAd ’ as a virtual agency to let advertisers book ads for all of AIR’s station online. 

45. Google is all set to help India implement Prime Minister Mr Narendra Modi's "Digital India" initiative, and the government has a well laid out plan to realise it, said Google's Chief Internet Evangelist Mr Vinton G. Cerf. Digital India is Rs 1.13 trillion (US$ 16.95 billion) government initiative that seeks to transform the country into a connected economy, attract investment in electronics manufacturing, and create millions of jobs and support trade. As companies look for better productivity and increasing efficiencies in a tough market environment, market research firm Nielsen has launched its first consumer neuroscience lab in India at its Mumbai headquarters. The neuroscience lab will augment the company's research capabilities in packaging and research, improving their effectiveness. MPS North America LLC, the US subsidiary of Bengaluru -based publishing solutions provider MPS Ltd, has acquired Electronic Publishing Services Inc. (EPS), a New York-based firm with interests in content creation, art rendering, design and production. The deal will allow MPS to strengthen its foothold in North America.

46. Jaipur -based Girnar Software Private Limited, which owns and operates the website CarDekho.com, announced that it has raised US$ 50 million in its second round of funding. The funding was led by Hillhouse Capital with participation from Tybourne Capital and Sequoia Capital. ZipDial has become the first Indian technology product startup to be bought by Twitter in what is the third such deal led by a global corporation following the acquisitions by Facebook and Yahoo. The ZipDial deal is expected to cost Twitter US$ 34-35 million. This feature is expected to help Twitter reach people who will come online for the first time in countries such as Brazil, India and Indonesia, mostly using a mobile device. Telecom major Axiata's subsidiary, Axiata Digital Advertising (ADA) has formed a joint venture with US-based advertising tech firm Adknowledge to get into the US$ 47 billion digital ad market in the Asia Pacific region and has identified India as a 'key' market.

47. The advertising and marketing sector in India is expected to enjoy a good run. Growth is expected in retail advertisement, on the back of factors such as several players entering the food and beverages segment, e-commerce gaining more popularity in the country, and domestic companies testing out the waters. The rural region is a potentially profitable target. For instance, in the automobiles sector, the focus of two-wheelers on rural areas could mean more launches and more advertising spends. The telecom sector could see growth as well, driven by better smart phone penetration and service providers cutting down on prices.

48. References Philip Kotler , Kelvin Lane, Keller, Abraham Koshi , Mitihlesh Jha , Principles of Marketing Management, South Asian Perspective, Pearson Education, 14th Edition 2011.   Philip Kotler n and    Gary Armstrong  “Principles of Marketing”,   New Delhi, Prentice Hall of India, 15th Edition, 2013. Belch: Advertising and Promotion: An Integrated Marketing Communications Perspective .8th Edition, The McGraw−Hill Companies, 2011 Thomas O'Guinn  ,  Chris Allen  ,  Richard J. Semenik  and   Angeline Close Scheinbaum  Advertising and Integrated Brand Promotion (with CourseMate with Ad Age Printed Access Card) 7th Edition,Cengage learning, Stanford USA , 2014.   O’Guinn,Allen,Semenik,4E,Advertising & Integrated Brand Promotion, Thomson, India Edition, New Delhi,2007. Media Reports, Press Releases, McKinsey Report Note : #- Pitch Madison Advertising Report 2016, ## - According to a report by Morgan Stanley, * - as per a report by Confederation of Indian Industry (CII) and KPMG

49. Thanks