CONSUMER BEHAVIOUR & ADVERTISING MANAGEMENT

Unit-4

Advertising budget

An advertising budget is the planned amount of money that an organization

allocates to promote its products, services, or brand through various advertising
channels. It represents the financial investment required to reach the target
audience and achieve marketing objectives. The advertising budget covers
expenses related to media buying, creative development, production,
distribution, and campaign management.

• Budget allocation: The advertising budget outlines how much money will be
allocated to different advertising channels or mediums, such as print, radio,
television, digital, or social media.

• Timeframe: The advertising budget defines the duration of the advertising

campaign and how much money will be spent during that period.

• Objectives: The advertising budget is based on the company's marketing

objectives, which could be to increase brand awareness, generate leads, drive
sales, or achieve any other specific goal.

• Cost estimation: The advertising budget estimates the costs associated with
each advertising medium, including creative development, production, media
buying, and other related expenses.

• Return on Investment (ROI): The advertising budget considers the

expected ROI of the advertising campaign and how it will impact the company's
revenue and profitability.

• Flexibility: The advertising budget should be flexible enough to adapt to

changes in market conditions, consumer behavior, and emerging technologies.

•Tracking and evaluation: The advertising budget includes metrics to track

and evaluate the success of the advertising campaign, such as reach,
engagement, conversion rates, and sales.

Factors Influencing Advertising Budget Determination

Several factors influence the determination of an advertising budget. These
include:

● Business Goals: The advertising budget is aligned with the company’s

overall business goals and marketing objectives. The level of investment
in advertising depends on factors such as brand awareness, market share
growth, customer acquisition, or product launches.
● Market Analysis: A thorough analysis of the target market and industry
trends helps determine the level of competitiveness and the necessary
budget to effectively reach the target audience.
● Competitor Analysis: Evaluating competitors’ advertising strategies and
budgets provides insights into the level of investment required to
compete effectively in the market.
● Product Lifecycle: The stage of the product lifecycle influences the
advertising budget. For example, during the introduction or growth
phase, higher advertising expenditures may be required to create
awareness and stimulate demand.
● Media Selection: The choice of advertising channels and media affects
the budget. Different media platforms have varying costs, and a mix of
channels must be considered to maximize reach and effectiveness.

Objectives of Advertising Budget

The objectives of an advertising budget refer to the specific goals or outcomes

that a company aims to achieve through its allocation of funds towards
advertising activities. These objectives can vary depending on the overall
marketing strategy and the specific needs of the business. Here are some
common objectives of an advertising budget:

1. Maximizing ROI (Return on Investment): One of the primary

objectives is to achieve a positive return on the investment made in
advertising. This could involve increasing sales revenue, profitability, or
achieving a specific financial target.
2. Increasing Market Share: By investing in advertising, companies aim
to capture a larger portion of the market share, potentially at the expense
of competitors.
3. Building Brand Equity: Advertising helps in enhancing brand
perception, awareness, and loyalty among consumers, thereby increasing
the overall value of the brand in the marketplace.
4. Launching New Products or Services: Advertising budgets are often
allocated to successfully introduce new products or services to the
market, generating initial interest and sales.
5. Reinforcing Brand Positioning: Continuous advertising efforts can
help reinforce the brand's unique value proposition and maintain its
position in the minds of consumers.
6. Targeting Specific Audiences: Advertising budgets may be used to
reach and engage with specific target audiences more effectively, based
on demographic, psychographic, or behavioral segmentation.
 7. Creating Buzz and Excitement: Advertising can be used to generate
excitement and interest around a brand or product launch, event, or
promotion.
8. Educating Customers: Sometimes, the objective of the advertising
budget is to educate consumers about complex products or services, their
benefits, and usage.
9. Managing Reputation: Advertising can also play a role in managing and
enhancing the company's reputation, especially during times of crisis or
public scrutiny.
10.Supporting Sales Efforts: Advertising budgets are often aligned with
sales goals, aiming to support the sales team by generating leads,
inquiries, or foot traffic.

Advantages of Advertising Budget:

• Increased brand awareness: Advertising helps to increase brand awareness

by exposing potential customers to your brand, products or services. This
increased awareness can lead to increased sales and customer loyalty.

• Targeted marketing: Advertising allows businesses to target specific

demographics or groups of people with their messages. This targeted approach
can increase the effectiveness of the advertising campaign and lead to a higher
return on investment.

• Competitive edge: Advertising can give a business a competitive edge over

its competitors by making it more visible and recognizable to potential
customers.

• Positive perception: Well-crafted advertising can create a positive

perception of the brand in the minds of consumers, which can lead to increased
sales and customer loyalty.

• Measurable results: With the use of various tools, advertising campaigns

can be tracked and evaluated to determine their effectiveness.

Disadvantages of Advertising Budget:

• Cost: Advertising can be expensive, especially for small businesses with

limited budgets. Advertising costs may not produce immediate results and may
take time to yield a return on investment.

• Over saturation: Consumers are exposed to many advertising messages

every day, and there is a risk that advertising campaigns may get lost in the
noise and fail to make an impact.
• Ineffective messaging: Poorly crafted advertising messages can have the
opposite effect, damaging the brand's reputation and leading to decreased
sales.

• Ad fatigue: Consumers may become fatigued by seeing the same advertising

messages repeatedly, which can lead to a decrease in the effectiveness of the
advertising campaign over time.

• Ethical concerns: Advertising campaigns can sometimes cross ethical lines.

Process of preparing Advertising Budget

The process of preparing an advertising budget involves several steps, which

include:

• Setting Marketing Objectives: The first step in preparing an advertising

budget is to set the marketing objectives that the advertising campaign should
achieve. This includes determining the target audience, the message that needs
to be communicated, and the desired outcome of the advertising campaign.

• Conducting Market Research: The next step is to conduct market research

to gather information about the target audience, the competition, and the
industry trends. This helps to identify the most effective advertising channels,
the appropriate timing for the advertising campaign, and the budget required to
achieve the marketing objectives.

• Establishing the Advertising Mix: The advertising mix is the combination

of different advertising channels that will be used to reach the target audience.
The company should consider the cost, reach, and effectiveness of each
advertising channel and determine the appropriate mix.

• Setting the Advertising Budget: Based on the marketing objectives, market

research, and advertising mix, the company can determine the appropriate
budget for the advertising campaign. The budget should consider the costs
associated with creative development, media buying, production, and other
related expenses.

• Allocating the Budget: The next step is to allocate the budget across the
different advertising channels in the advertising mix. The company should
consider the cost, reach, and effectiveness of each channel and determine the
appropriate allocation.

• Monitoring and Adjusting the Budget: Once the advertising campaign is

launched, the company should monitor the effectiveness of each advertising
channel and adjust the budget as necessary. This helps to ensure that the
advertising campaign is achieving the marketing objectives and generating a
positive ROI.
Methods for Setting Advertising Budget (6 Methods)

Commonly practiced methods have been briefly discussed in this part:

1. Percentage of Sales Method:

It is a commonly used method to set advertising budget. In this method, the

amount for advertising is decided on the basis of sales. Advertising budget is
specific per cent of sales. The sales may be current, or anticipated. Sometimes,
the past sales are also used as the base for deciding on ad budget. For example,
the last year sales were Rs. 3 crore and the company spent Rs. 300000 for
advertising. It is clear that the company has spent 1% of sales in the last year.

Company has the tendency to maintain certain per cent (or percentage) of sales
as ad budget. Based upon the past, the current and the expected sales, amount
for advertising budget is determined. This method is based on the notion that
sales follow advertising efforts and expenditure. It is assumed that there is
positive correlation between sales and advertising expenditure. This is not the
scientific method to decide on advertising budget.

Merits:

The method offers following merits:

(a) It is based on sales volume. Therefore, cost of advertising can be offset

against profits earned from the sales. It satisfies financial management.
(b) This method encourages marketing manager to think in terms of
relationship between promotional costs, selling price, and profits per unit.

(c) It maintains competitive parity. All firms in the industry spend approximately
the same percentage of sales for advertising.

(d) It keeps the company in constant touch with the sales target to be achieved.

Demerits:

The method has been criticized on following grounds:

(a) In absence of specific guidelines, it is not possible to decide the appropriate

per cent of sales. It lacks a scientific base.

(b) Long-term planning is not possible because a long-term sales forecasting

seems difficult.

(c) It neglects other objectives of advertising. Only sales are given priority. It
doesn’t consider the need of advertising.

(d) Stage of product life cycle is not considered.

(e) It is, to some extent, inflexible.

(f) It is assumed that only advertising affect sales. It is erroneous.

2. Objectives and Task Method:

This is the most appropriate ad budget method for any company. It is a scientific
method to set advertising budget. The method considers company’s own
environment and requirement. Objectives and task method guides the manager
to develop his promotional budget by (1) defining specific objectives, (2)
determining the task that must be performed to achieve them, and (3)
estimating the costs of performing the task. The sum of these costs is the
proposed amount for advertising budget.

The method is based on the relationship between the objectives and the task to
achieve these objectives. The costs of various advertising activities to be
performed to achieve marketing objectives constitute advertising budget.

Under this method, following steps are to be followed to set advertising

budget:

1. Determine main objectives of marketing department.

2. Set advertising objectives in terms of sales, profits, brand loyalty, competitive

stability, etc.

3. Determine advertising task in terms of various advertising activities required

to be performed to achieve the advertising objectives.

4. Estimate cost of each advertising activity for the defined period.

5. Make sum of costs of all the activities. It is the estimated amount for
advertising.

Thus, advertising budget is set on the basis of the objectives a company wants
to achieve and in what way it wants the objectives to be achieved. This method
is logically consistent and practically applicable for all the companies. The
method emphasizes on actual needs of the company. It is considered as a
scientific method to set ad budget.

3. Competitive Parity Method:

Competition is one of the powerful factors affecting marketing performance.

This method considers the competitors’ advertising activities and costs for
setting advertising budget. The advertising budget is fixed on the basis of
advertising strategy adopted by the competitors.

Thus, competitive factor is given more importance in deciding advertising

budget. For example, if the close competitors spend 3% of net sales, the
company will spend, more or less, the same per cent for advertising. Here it is
assumed that “competitors or leaders are always right.” If not followed
carefully, this method may result into misleading.

It is obvious that a company differs significantly from the competitors in terms

of product characteristics, objectives, sales, financial conditions, management
philosophy, other promotional means and expenses, image and reputation,
price, etc.

Therefore, it is not advisable to follow the competitors blindly.

Marketing/advertising manager should take competitors’ advertising strategy as
the base, but should not follow as it is. The advertising budget must be adjusted
to the company’s internal and external situation.

Limitations:

Manager must be aware of following limitations of the competition

parity method:

(a) In case of a new product, the method fails to guide for deciding on
advertising budget.

(b) It is difficult to know in which stage of life cycle the product of close
competitor is passing through.

(c) Company differs in terms of sales, profits, challenges, financial conditions,

and so on. To follow competitors directly may be erroneous.

(d) Advertising is not the sole factors that affect the sales; interplay of many
factors determines sales.

(e) In case, when there are many competitors, it is difficult to decide as to whom
the company should follow.
(f) The method is followed only when there are dominant competitors. In
absence of competition, the method cannot be used.

(g) The method can make a sense only to followers and challengers. It is not
applicable to a market leader.

4. Affordable or Fund Available Method:

This is, in real sense, not a method to set advertising budget. The method is
based on the company’s capacity to spend. It is based on the notion that a
company should spend on advertising as per its capacity. Company with a sound
financial position spends more on advertising and vice versa.

Under this method, budgetary allocation is made only after meeting all the
expenses. Advertising budget is treated as the residual decision. If fund is
available, the company spends; otherwise the company has to manage without
advertising. Thus, a company’s capacity to afford is the main criterion.

Limitations:

Following are the limitations of the method:

(a) The method completely ignores the role or need of advertising in the
competitive market environment.

(b) In long run, it leads to uncertain planning as there is no guarantee that the
company will spend for advertising.
ADVERTISEMENTS:

(c) Except company financial position, other factors like company’s need for
advertising, consumer base, competition, and so forth are ignored.

(d) This method only guides that a company should not spend beyond its
capacity.

(e) This is not a method in real sense.

(f) There is possibility of bias in deciding advertising amount.

5. Expert Opinion Method:

Many marketing firms follow this method. Both internal and external experts
are asked to estimate the amount to be spent for advertisement for a given
period. Experts, on the basis of the rich experience on the area, can determine
objectively the amount for advertising. Experts supply their estimate
individually or jointly.

Along with the estimates, they also underline certain assumptions. Internal
experts involve company’s executives, such as general manager, marketing
manager, advertising manager, sales manager, distribution manager, etc.

ADVERTISEMENTS:
Whereas external experts involve marketing consultants, dealers, suppliers,
distributors, trade associations, advertising agencies, and other professionals
related to the field. Marketing consultants and advertising agencies provide
such services on professional basis.

Advertising budget recommended by external experts is more neutral (bias-free)

and, hence, is reliable. Experts considers overall situation and give their opinion
on how much a company should spend. Mostly, the experts consider all the
relevant factors related to advertising while deciding on advertising budget.

Merits:

Expert opinion method offers following merits:

(a) The estimates tend to be more balanced as various executives and experts
are involved.

(b) The budget is more accurate and realistic because the internal executives
are well aware of company’s strengths and weaknesses.

(c) It is the only option when a company is new, having no past experience.

(d) External experts tend to be more neutral as they are external to organisation

Demerits:
However, the user must be aware of following possible demerits:

(a) It is not a scientific method. Personal value, experience, and attitudes play
vital role.

(b) It is difficult to fix responsibility of the final estimates as many experts

contribute to budget estimates.

(c) External experts are not fully aware of the company’s marketing situations.

(d) When more internal experts are involved, it may deteriorate relation due to
possible conflicts or lack of consensus.

(e) Possibility of prejudice or bias cannot be ignored.

(f) All opinions, right or wrong, are given equal importance

6. Other Methods:

There are some other methods used for setting advertising budget.

They have been listed below:

i. Arbitrary Allocation Method

ii. Profit Maximization Approach

iii. Incremental Method

iv. Sales Force Opinion Method, etc.

Advertising agency

A firm engaged in providing services of advertisement for clients to create

awareness and market for them is known as advertising agency. These agencies
involve people with specialized skills and knowledge who are well versed in
marketing, advertising and consumer behavior. These experts combine their
talent to create advertisement for their clients. Therefore, an advertising
agency is a specialized organization helping its clients to adopt advertising for
marketing their goods and services in most effective manner.

According to American Association of Advertising Agency an advertising agency

is one –

ADVERTISEMENTS:

i. Which is an independent organization.

ii. Which is composed of creative and business people.

iii. Who develop, prepare and place advertisements in media.

iv. Which is for sellers seeking to find customers for their goods and services.
Philip Kotler opines that “Advertising agency is a marketing service firm that
assists its clients in planning, preparing, implementing and evaluating various
activities of advertising campaign.”

Another view expressed by Rozer and Borton is that “Advertising agency is a

group of persons who have a specialization in advertising. It includes ad
copywriters, ad designers, media selectors and advisors for various advertising
issues”.

From the above definitions, the common features can be identified as:

1. Advertising agency is an independent business organization.

2. Agency provides services to its clients who are searching customers for their
goods and services.

ADVERTISEMENTS:

3. Agency employs the experts, researchers etc.

4. Agency performs the functions like planning, implementation of campaign,

research, follow up advertisement, measuring effectiveness of various media for
its clients.

5. It charges fees, service charges and commission from its clients.

Advertising Agency – 9 Important Functions

(i) Selecting Prospects:

For every advertising agency, a well-structured approach to gaining new clients

is crucial. Agencies seek clients with strong management, efficient operations,
and products or services aligned with their values. Compatibility on policies
regarding standards, advertising, marketing, and agency-client relations is
essential.

Financial stability of potential clients is critical, influencing the agency's credit

relationship. Agencies prefer growth-oriented companies nearby. If an
advertiser's sales decline or advertising performance weakens, they may
consider switching agencies.

Agencies typically avoid pursuing prospects that compete directly with current
clients to maintain confidentiality and trust. Occasionally, agencies may drop
smaller accounts to focus on securing larger ones.

Methods to Secure New Clients:

1. Exploratory Screening: Advertisers may send questionnaires to

multiple agencies seeking suitable matches.
2. Referrals and Recommendations: Agencies may be recommended to
advertisers undergoing changes by other agencies unable to handle the
account.
3. Advertising and Promotion: Direct mail and trade publications are
effective for agencies to showcase their capabilities and attract new
clients. Some agencies prioritize client work over self-promotion,
believing professionalism speaks for itself.
4. Personal Contact and Solicitation: Direct engagement and networking
remain primary methods for agencies to acquire new business.

Speculative Presentations:

Agencies may offer speculative presentations to potential clients, providing free

concepts like copy, artwork, or market research findings. However, such
approaches have drawbacks:

● Lack of Information: Agencies may struggle to deliver effectively

without comprehensive understanding of the client's business and needs.
● Undervaluing Services: Providing free work undermines the agency's
value and expertise.
 ● Resource Allocation: Time and resources devoted to speculative work
could otherwise benefit existing clients.

(ii) The Account Executive:

Once a new client is onboarded, the responsibility for managing their account
falls to an individual known as the account executive, account representative, or
contact person.

Responsibilities:

● Understanding Client Needs: The account executive analyzes the

client's situation, discusses their challenges, and devises an advertising
program tailored to their needs.
● Client Relationship Management: Their primary duty is to ensure
client satisfaction and retention by planning effective advertising
strategies.
● Representation and Communication: They serve as the liaison
between the agency and the client, interpreting the agency's stance and
rationale. They assist the client's advertising manager and present
advertising proposals to senior management.
● Problem Solving: Proactively anticipating issues, the account executive
adjusts strategies to resolve difficulties and maintain smooth operations.
● Scope and Structure: In smaller agencies, the proprietor or partner
may act as the account executive, potentially handling copywriting. They
may manage multiple clients and occasionally seek new business
opportunities.

(iii) Basic Functions of an Advertising Agency:

These include copy, art, and media.

ADVERTISEMENTS:
(a) Copy:

Copy is the heart of all advertising. The copy activity in an agency is usually
headed by a copy director, preferably an art-minded individual because the copy
staff works more closely with the art staff than with any other group in the
agency. Copy staff also works closely with the account executive; and it may
make use of the research department’s copy research.

A copy writer may write copy for all media or specialize in one. He must be able
to think and write effectively. Writers need to be sales-minded; experience in
personal selling or in reporting is considered helpful by some. While they need
imagination and contribute some ideas, writers typically are more often known
for their skill with words than for their ideas.

(b) Art:

Art directors should be copy-minded for the same reason that the copy directors
should be art-minded- Copy and art make the advertisement; copy and art are
the advertisement. A feeling of equality, co-operation and understanding should
characterize the relationship between copy and art. The art staff mainly works
with space advertising.

It visualizes printed advertisements, prepares layouts, and does or buys the

finished art work or photograph) which illustrates the advertisements. Because
more art work is bought than done within the agency, the art director keeps
himself informed about the local artists and their talents.

ADVERTISEMENTS:

(c) Media:

The media man studies media, and collects and analyse media information.
Next, he selects the media to carry the advertising of each client and makes up
schedules of which advertisement is to appear where and on what date. Cost
estimates are arrived at for these schedules; and upon the client’s approval, the
media staff contracts to buy space for his advertising.

Broadcast time may be bought by the media department or by the TV and radio
department or departments. Sometimes, the media staff checks the actual
running of newspaper and magazine advertisements; sometimes the accounting
department does this checking.

The two prominent assignment given to media men involve evaluation and
selection. The media department also contributes to the over-all media strategy
for each client. It attempts to concentrate agency-media contacts in the media
department, hoping thereby to minimize the amount of time of the account
executives which may be taken up by media representatives and salesmen.

(iv) Research:

The research staff helps the agency to get, serve and hold clients. Research may
enable the new business-getters to make stronger presentations to more
desirable clients. It may help the creative personnel, particularly the copy and
art personnel, to build better advertising for clients. It may help the contact
man to convince his client that his last advertising programme was productive,
too.

(v) Mechanical Production:

This department is asked to transform copy, illustrations and layout into a

satisfactory printed advertisement. Obviously, this department works closely
with the copy and art directors. He uses various commercial firms to be sent to
publication commercial printers for printing.

(vi) Traffic:

In an advertising agency traffic is a matter of scheduling and control. This

department sets up a work schedule and a routing sequence for each
advertisement, and then supervises the advertisement’s movement through all
its stages and departments in the agency.
Once the advertisement has been prepared, it is forwarded in good time to the
media which will carry it. It is only when copy, illustration, mechanical
production and client approval are on schedule that this essential goal or target
date can be achieved.

If deadlines are to be made, if panics and work peaks are to be minimized, if the
work flow is to be relatively even rather than spasmodic, if co-operation and co-
ordination are to be assured, then there must be sound traffic supervision.
Where there is no separate traffic department, the duty is assigned to the
production manager or to the account executive.

(vii) Accounting:

The common assignments of the accounting department of an agency include to

check on the appearance of advertisements in media; to check media invoices
against orders; to pay media bills; to bill clients and collect from them; to look
after such matters as records, book-keeping, and office routines.

(viii) Public Relations:

The fundamental objective of this department of an ad agency is to build and

maintain goodwill with various sections of the public. The tools used in
communicating with these publics are institutional or corporate advertising and
publicity. The main job of this department is to build stronger relations between
clients and the various sections of the public customers, employees, middlemen,
shareholders.

A minor job is to do a public relations job for the agency itself with prospective,
and present clients.

(ix) Merchandising and Sales Promotion:

Emphasis on merchandising and sales promotion varies among advertising

agencies. Even the organization varies; there may or may not be a separate
department, the activities may be merged within the marketing department, a
merchandising department may be converted into a marketing department, or
merchandising and sales promotion may be housed in the research department.
Advertising Agency – 2 Major Types: Full Service Agencies and
Specialized Agencies
There are mainly two types of agencies based on the type of services offered by
them.

They are:

1. Full Service Agencies:

These are the medium or large sized agencies capable of conducting complete
advertising campaign. The main agency may be assisted by many subsidiaries
engaged in various other related activities like market research, sales
promotion, advertising, public relation, media buying, film production etc. Thus,
these agencies are capable of handling all the various related activities of
advertisement from beginning to end.

2. Specialized Agencies:

These are the agencies which provide only one or selected services out of the
entire range services. Those agencies do not have specialization in all services
or not supported by other specialized subsidiaries. The firms willing to get only
a part of whole range of services may go in for specialized agencies. For
instance, creative Boutiques and Media Buying Agencies.

These agencies get their charges in any form of – (i) Commission – A fixed rate
of commission (ii) Fees – In addition to commission, it may insist for payment of
fees, (iii) Percentage charges – agency charges some percentages of charges as
mark up when agency buys some services from outsiders, (iv) Incentives based
system – The fees here are based on how best the agency performs in achieving
the pre-determined goals.

Advertising Agency – Factors Affecting the Selection of Advertising

Agency: Agency Team, Range of Services Rendered, Research Activities,
Success Rate and a Few Others
The advertisers should consider the following factors while selecting an
advertising agency:

1. Agency Team – An agency has to possess management experts, market

researchers, production managers, art directors, copy writers, media experts
and others. The quality and expertise of these specialists team is considered
while finalising the agency.

2. Range of Services Rendered – An agency may be full services agency or

specialized agency. An advertiser should keep in mind the type of services
required to be hired.
3. Research Activities – Advertising agency should consider the type of
research activities conducted by companies. Because there are market research
companies or advertising research companies or both.

4. Success Rate – The advertisers may look at the various accounts already
handled by an agency and the success rate.

5. Need of Marketing Plans – It is necessary to see whether the assistance in

preparing the marketing plans can be provided by the agency. In case of clients
with new products, it is necessary to consider this factor.

6. Compatibility – It means the personal equation of the advertiser with the

client. There can be perfect harmony and cordial relation between client and
agency when there is compatibility.

7. Stability of Agency – The selection of agency depends upon the regular and
stable services provided in that line. Its commitment in fulfilling the accepted
tasks is noteworthy. The known agencies are preferred to the new ones.

8. Creativity – Advertising needs creativity. An agency having good team of

creative persons is selected. Because, it is main factor in making
advertisements different and attractive.

Advertising Agency – Basic Principles: Client-Agency and Agency-Media

Relationship

Basic Principles of Client-Agency Relationship (Car):

These principles are:

(i) The agency avoids advertising a close substitute competing product. The
client, too, avoids engaging the services of another competing agency.

(ii) The agency receives the green signal from the client for all the expenses
incurred on its advertising.

(iii) The agency keeps the media commission for itself and the client undertakes
to foot the bill promptly.

(iv) If the media grants any cash discount, it is passed on to the client.

(v) The agency is not taken to task for media lapses in terms of scheduling,
positioning, etc.

Basic Principles of Agency-Media Relationship:

These principles are:

(i) The agency alone is responsible for payment to the media.

(ii) The agency does not allow any cut from the commission received from the
media to go to the client.

(iii) The media do not discriminate amongst the agencies dealt with and follow a
uniform policy for all the agencies.

(iv) The media do not alter the advertising material without the prior consent of
the agency.

The average tenure for a client-agency relationship is 9-10 years in India and
about 5-7 years in the developed countries. The frequent client-agency breaks
now are attributed to more involvement of top management in ad decisions and
more changes in the top management itself. Global alignments also affect the
local accounts.

Some clients keep separate agencies for handling different categories

worldwide. A client may walkout whenever there is a brand or creative fatigue.
Creative agencies generally have shorter tenures, because they tend to continue
a particular creative even when the market situation changes.

When an agency is changed, generally a brand is repositioned, e.g., Thums Up

was a fun brand. Then it became a “taste the thunder brand”. Now it is ‘I want
my thunder’ brand. While such repositioning is done, the core values of the
brand are kept constant.

Do’s and Don’ts While Selecting an Agency:

Do’s:

i. Do look for a big idea or else your ad will be lost in a clutter.

ii. Do ensure that the ad is relevant to the product.

iii. Do hanker after the desired brand image.

iv. Do resist the temptation of creating an ad yourself.

Don’ts:

i. Don’t bargain hard on agency’s compensation.

ii. Don’t drop the agencies for the hack of it.

Advertising Agency – Selection of Advertising Agency

Once an advertiser decides to hire an outside agency for creating and placing
ads, the next crucial step is selecting the right agency. Although there is no
standardized procedure for this, several key criteria can guide the decision.
One important source of information is published data available through media
and industry circles. This data typically includes details about the agency's
name, location, proprietors, advertising turnover, investments, client list, and
any national or international affiliations. Such information helps in identifying
and shortlisting potential agencies.

Another significant factor is the advertising campaigns released by the

agencies, as these reflect their creative approach. Evaluating these campaigns
can provide insight into the agency's style and effectiveness. Additionally,
seeking opinions from other advertisers who have experience with these
agencies can offer valuable perspectives.

Furthermore, an agency’s involvement in social and civic work can be an

indicator of its values and community engagement, which might align with the
advertiser's own principles.

In summary, a combination of published data, creative output, peer opinions,

and social involvement can help an advertiser make an informed decision when
selecting an appropriate advertising agency.

Moreover, the agencies which are considered actively for selection

purposes are asked to furnish the detailed information regarding:

1. Its size and corporate structure.

2. Organizational set up and number of employees.

3. Profile of key personnel.

4. Services offered by an agency.

5. Terms of business.

6. Accounts held and periods for which they are held.

7. Growth of agency’s billings.

8. Case histories of some campaigns.

In a nutshell, agencies are identified and reached through:

i. Referrals where existing clients of agency refer other clients to the agency.

ii. Presentations where new agencies are invited to make a presentation of their
case.

iii. Image and reputation of the agency on the basis of advertising campaigns
released by the agency.

iv. The activities of public relation and publicity undertaken by the agency.
Finally, based on the information collected through various primary and
secondary sources, selection of any one of the agency involves an analysis of
information across various factors such as-

a. Growth of the agency in terms of its billing size and growth pattern.

b. Field of industry experience in terms of its versatility.

c. Account turnover in terms of average age of agency clients.

d. Manpower strength and depth of their experience.

e. Agency’s philosophy of operating business, whether rigid or progressive.

f. Agency’s ability to carry out campaign planning which involves analysis and
interpretation of all the facts and conditions affecting marketing problems and
their ability to develop advertising objectives and competitive strategy.

g. Agency’s creative ability to create good ideas.

h. Agency’s ability to do media research and other forms of research.

i. Agency’s ability to produce and supervise all kinds of advertising and

promotional material.

Although, the selection criteria are comprised of varied factors, but this is more
of a subjective nature as it requires one’s judgment to decide about their
appropriateness to select an agency.

The Organizational Structure of an Advertising Agency

The organizational structure of an advertising agency consists of the same basic

elements, regardless of the firm's size. An account services team manages client
relationships, the creative team develops the advertisements and media
specialists select the media outlets that will run the ads. A senior management
team takes responsibility for the agency's business and financial operations.

(i) Agency Management

The senior management team may consist of a chief executive and finance
director in a small agency. A larger agency may have a management team,
including a chief executive and finance director, together with directors
responsible for each of the firm's departments. If an agency belongs to a large
group of companies, a member of the management team takes responsibility for
relationships with the board of the holding company.
(ii) Account Services

The account services team deals with clients and coordinates the work of the
agency's creative and media teams. A large agency might have three levels of
account management: account director, account executive and assistant account
executive. Account directors, who report to the agency's management team,
supervise the work of account executives and take responsibility for a group of
accounts. They may also maintain a close relationship with the agency's most
important clients. Account executives and assistant account executives report to
account directors and manage the day-to-day operations on their accounts.

(iii) Account Planning

Account planners research the needs and preferences of the target market for a
product or service. They use their findings to develop an advertising strategy
and prepare a brief for the creative team that's working on an advertising
campaign. In smaller agencies, account planning may be part of the
responsibility of an account executive. Larger agencies may appoint a specialist
as a member of the account management team.

(iv) Media

The media department is responsible for planning where and when

advertisements will appear and buying space or time in newspapers, magazines,
radio, television, digital media and outdoor media, such as poster sites and
billboards. In small agencies, one person may combine the planning and buying
roles. Larger agencies have a media department headed by a media director
who supervises the work of a team of planners and buyers. The media team may
include specialists in print, broadcast or digital media.

(v) Creative Services

The creative services team consists of copywriters and designers, known as art
directors, who work together to develop concepts for advertisements. In larger
agencies, a creative director manages teams working on different accounts.
Smaller agencies may only appoint a creative director who works with freelance
writers.

(vi) Production

Larger agencies have a production department responsible for managing

advertising campaigns. They set schedules and manage campaign budgets,
coordinating the work of the creative and media departments. The production
team also interacts with external suppliers working on advertising campaigns,
such as printers, photographers and video production companies. In smaller
agencies, account executives or creative directors take responsibility for project
management.

ADVERTISING AGENCY COMPENSATION

An agency received a commission from the media for advertisement placed by

the agency. This commission cover the agency's copywriting and account
service charges among others. There are two basic forms of advertising agency
compensation:

1. Media Commission

2. Fee based compensation

1. Media Commissions

The traditional media commission system is fairly straightforward. The agency

buys time (in case of electronic media) and space (in case of print media) in the
media for the advertiser and charges the advertiser the full cost of that time or
space. This is known as the net cost. The agency then adds a commission of
15%. When the commission and net cost are added together, the sum is called
the gross cost.

The advantage for the advertiser is that it receives the media time or space at a
lower rate than if it dealt directly with the media.

However if the advertiser demands frequent changes in the advertising copy,

that involved increased production cost, then the agency may have to absorb
those costs and they do not make money in the process.

2. Fee based Compensation

In this system it is decided in advance that how much the agency will receive
for the year for working on a particular account. The fee is usually based on the
time involved in producing the advertising campaign. This system is considered
fairer to both side for two reasons:

• It does not reward agency for spending more money in the media.

• It doesn't let the advertiser make unjust production demands on the agency
without extra payment.

The main drawback is that the agency do not receive any more compensation if
the campaign is highly successful. It is also expensive for advertiser because of
long time involved.

CLIENT AGENCY RELATIONSHIP

Relationship management is one of the most important useful tip for any client-
agency relation. Agencies play a vital role for their clients to communicate with
their audience. Thus client-agency relationship must be strong. Agencies carry
forward the client's vision to their target audience. Sales and marketing
depends on the performance of agencies.

(i) Agency Share Your Goals

Hiring the right agency for your company is a far sighted decision. It benefits
you on a long run. After contract, agencies study your business. They build
strong understanding about your business its goal and target audience. After
going into the depth of your business they set their goals according to the need
of business. Being transparent to the client, agency go through all the W's of the
company i.e who they are? What they do? Why they do? How it will benefit the
customers? They retain your company and work hard to take your business on a
larger scale as in the end client's success will be agency's success.

(ii) Update Strategies According to the Trend

Agencies are more updated than the clients in terms of technology and
marketing trends. They know about SEO tools. Have knowledge about how to
capture large number of audience keeping trends in mind. Agency's first
priority is not to take their hands away from target audience. They discuss and
mold all the marketing plans according to the trends. Agencies put in efforts to
keep their clients updated. They explore and suggest the best that could suit the
client.

(iii) Team Work

Agency knows every bit of their clients and they honestly suggest what is best
for the client. They meet, discuss and plan all the strategies, keeping clients
goals in mind. When two of them i.e. Client and Agency discuss all the pros and
cons of every strategy it end up with multiple plans. If you want to work smart,
work as a team. Agencies work day and night with brand managers or
marketing managers of the company and come up with new result oriented
goals.

(iv) Transparency

If client-agency relation is strong. You can ask as much as you can from your
agency. Agencies freely discuss about the marketing plans. It creates a healthy
trust worthy work relation between the two. Keeping relationship outside the
work also helps in bringing more motivation towards work and agency becomes
as active as their client.

Relationship building takes time but it is essential for both agency and client.
Agencies highlight the problem of target audience and attract them by
providing solutions. They make different strategies to bring more and more
business. Strong relation between client and agency result in flourishing the
business on top. In the end what counts is how much you have spent on agency
and if they are doing justice with every penny you have spent.
 Advertising media

In advertising, media are the facilitating functions and constitute an industry.

Media are the carriers of message of an advertiser whose aim is to reach to the
public so that he and his product or service may come to the knowledge of the
public and in turn public may turn to him and his product or service.

Major Functions of Advertising Agency

1. Attracting clients

Advertising agency needs clients (advertisers). Without them, it cannot survive.

2. Account Management

Within an advertising agency the account manager or account executive is

tasked with handling all major decisions related to a specific client.

The account manager works closely with the client to develop an advertising
strategy.

3. Creative Team

The principle role of account managers is to manage the overall advertising

campaign for a client, which often includes delegating selective tasks to
specialists.

Advertising agency put the advertising-plan into action under its creative
function. Creation of ads is the most important function of an ad agency.

4. Researchers
Full-service advertising agencies employ market researchers who assess a
client's market situation, including understanding customers and competitors,
and also are used to test creative ideas. Advertising agency gathers information
related to the client's product. It collects following information about a product
under its research function: -
Features, quality, advantages and limitations of a product, Present and future
market possibilities, Competition in the market, Situation in the market,
Distribution methods, Buyers' preferences, so on
• Ad agency analyses (studies) all this collected information properly and draws
conclusions for its research. It helps in planning an advertising campaign,
selecting proper media and creation function.
5. Media Planners
Advertising agency helps an advertiser to select a proper media (ad platform) to
promote his advertisement effectively. Media selection is a highly specialized
function of an ad agency. It must select the most suitable media for its client's
ad. Advertising agency plans the entire ad campaign of its client. Advertising
planning is a primary function of an ad agency. It is done when its research
function is completed. That is, after analyzing the client's product, its
competitors, market conditions, etc. It is done by experts who use their
professional experience to make a result-oriented advertising-plan.
Once an advertisement is created, it must be placed through an appropriate
advertising media.
Each advertising media, of which there are thousands, has its own unique
methods for accepting advertisements, such as different advertising cost
structures (i.e., what it costs marketers to place an ad), different requirements
for accepting ad designs (e.g., size of ad), different ways placements can be
purchased (e.g., direct contact with media or through third- party seller), and
different time schedules (i.e., when ad will be run). Understanding the nuances
of different media is the role of a media planner, who looks for the best media
match for a client and also negotiates the best deals.
6. Advertising Budget
Advertising agency helps an advertiser to prepare his ad budget. It helps him to
use his budget economically and make the best use of it.
Without a proper advertising budget, there is a risk of client's funds getting
wasted or lost.
7. Coordination
Advertising agency brings a good coordination between the advertiser, itself,
media and distributors.

8. Sales Promotion
Advertising agency performs sales promotion. It helps an advertiser to
introduce sales promotion measures for the dealers and consumers. This helps
to increase the sales of the product.
9. Public Relations
Advertising agency does the public relations (PR) work for its clients. It
increases the goodwill between its clients and other parties like consumers,
employees, middlemen, shareholders, etc. It also maintains good relations
between the client and media owner.
10. Non-advertising functions
Advertising agency also performs many non-advertising functions:
It fixes the prices of the product, It determines the discounts, It designs the
product, It also designs its package, trademarks, labels, etc.

Merits of Advertising Media

1. Introduces a New Product in the Market
Advertising plays significant role in the introduction of a new product in the
market. It stimulates the people to purchase the product.
2. Expansion of the Market
It enables the manufacturer to expand his market. It helps in exploring new
markets for the product and retaining the existing markets. It plays a sheet
anchor role in widening the marketing for the manufacturer's products even by
conveying the customers living at the far flung and remote areas.
3. Increased Sales
Advertisement facilitates mass production to goods and increases the volume of
sales. In other words, sales can be increased with additional expenditure on
advertising with every increase in sale, selling expenses will decrease.
4. Fights Competition
Advertising is greatly helpful in meeting the forces of competition prevalent in
the market. Continuous advertising is very essential in order to save the
product from the clutches of the competitors.
5. Enhances Good-Will
Advertising is instrumental in increasing goodwill of the concern. It introduces
the manufacturer and his product to the people. Repeated advertising and
better quality of products brings more reputation for the manufacturer and
enhances goodwill for the concern.
6. Educates the Consumers
Advertising is educational and dynamic in nature. It familiarizes the customers
with the new products and their diverse uses and also educates them about the
new uses of existing products.
7. Elimination of Middlemen
It aims at establishing a direct link between the manufacturer and the
consumer, thereby eliminating the marketing intermediaries. This increases the
profits of the manufacturer and the consumer gets the products at lower prices.
Different goods are advertised under different brand names. A branded product
assures a standard quality to the consumers. The manufacturer provides quality
goods to the consumers and tries to win their confidence in his product.
9. Supports the Salesmanship
Advertising greatly facilitates the work of a salesman. The customers are
already familiar with the product which the salesman sells. The selling efforts of
a salesman are greatly supplemented by advertising. It has been rightly pointed
out that "selling and advertising are cup and saucer, hook and eye, or key and
lock wards."
10. More Employment Opportunities
Advertising provides and creates more employment opportunities for many
talented people like painters, photographers, singers, cartoonists, musicians,
models and people working in different advertising agencies.
11. Reduction in the Prices of Newspapers and Magazines
Advertising is immensely helpful in reducing the cost of the newspapers and
magazines etc. The cost of bringing out a newspaper is largely met by the
advertisements published therein.
12. Higher Standard of Living
The experience of the advanced nations shows that advertising is greatly
responsible for raising the living standards of the people. In the words of
Winston Churchil "advertising nourishes the consuming power of men and
creates wants for better standard of living." By bringing to the knowledge of the
consumers different variety and better quality products, it has helped a lot in
increasing the standard of living in a developing economy like India.

Limitations of Advertising Media

The following are the main limitations of advertising
1. Less Forceful
Absence of personal touch makes advertising less forceful. Paying attention to
the message is not compulsory for the customers.
2. Lack of Feedback
It is very difficult to judge the effectiveness of an advertising message as there
is no accurate feedback regarding its impact.
3. Inflexibility
Advertising message is standardized and hence cannot be changed according to
the requirements of different customers.
4. Low Effectiveness
An increase in the volume of advertising has made it difficult to make any
advertising message in general to be received properly by the target customers.
Many messages don'ts really get even noticed, not to speak of being effective
etc.

Types of Advertising Media

Types of Advertising Media (With Advantages and Disadvantages) –

Press Advertising, Direct Mail, Outdoor Advertising, Publicity and
Specialty Advertising

This is the particular field where we have to decide about the methods of
advertising so that the cost of advertising may be reduced considerably.
Newspapers, magazines, radio, television, etc. are the means of advertising and
selection has to be done in this regard. The medium of advertising should be
such that can reach the maximum number of customers.

The selection of medium is an important decision in organizing advertising

movement. The medium of advertising means the method in which an advertiser
sends his sale message to customers. This is the medium through which
customers know about the advertising messages. Today there are many
methods and sources available for advertising.

It is necessary that out of these sources one or many methods should be

selected very carefully. While selecting the media care must be taken regarding
the nature of the commodity, nature and interest of customers, condition of the
market, and position of advertisement by the competition and budget available
for advertising.

Means or Media of Advertising:

1. Press Advertising

2. Direct Mail

3. Outdoor Advertising and Publicity

4. Entertainment Advertising

5. Promotional Advertising

6. Speciality Advertising

Type # 1. Press Advertising:

This is one of the impressive and popular media. Through this medium the
advertising of goods is done at less cost for a greater number of people. This
type of advertising is done with the view that people are educated and they are
interested in reading newspapers.

ADVERTISEMENTS:

In this civilized country, every educated person reads one or the other
newspaper. An appeal or a request can be made only through the well-written
language of a newspaper and not through any other medium.

Press advertising can be divided into two parts on the basis of reading
facility:

(I) Newspaper advertising

(II) Magazine advertising

ADVERTISEMENTS:

(I) Newspaper Advertising:

Newspaper advertising is the most popular medium of this modern age. This
advertising is printed in the published newspapers. If newspapers did not get
income from advertising then we could not get them at such low prices.
Newspapers are published daily, weekly and fortnightly.
Daily newspapers remain in much circulation and they are the best source of
advertisement because of the large number of readers. Therefore through the
medium of advertising, they are given the knowledge of goods at a very low
cost.

Newspaper advertising is classified as well as non-classified. A classified

advertisement is short because it gives in brief the name of a thing and its
description, place of availability and other particulars. It has lack of space. Such
types of advertisements do not attract customers.

ADVERTISEMENTS:

Those who want to get knowledge about goods should read such
advertisements. Therefore, the same type of space is fixed in newspapers.
Advertising regarding matrimonial service, auction etc. come in this category. A
non-classified advertisement gives full detail about goods, it covers a large
space.

Advantages of Newspaper Advertising:

The following are the advantages of newspaper advertising:

(i) Circulation:

ADVERTISEMENTS:

The biggest advantage of newspaper advertising is that numberless people get

the proper knowledge of a product because countless people read the
newspaper daily. In this way different kinds of things get wide publicity among
different types of people.

(ii) Economic:
This advertisement is also cheap. With a small amount a large number of
customers come into the contact of that advertisement. Moreover, the copies of
a newspaper are printed in a large number. Therefore, the cost per unit is less.

(iii) Frequency of Publication:

This type of advertisement appears frequently. Therefore, it is unique in making

the product or brand very popular. A marketer inserts the advertisement time
and again to remind customers and impels them to buy his product.

(iv) Wide Area:

ADVERTISEMENTS:

The area of newspaper advertising is widely spread. Through this medium, an

advertiser selects the popular newspaper of that area in which he wants to
increase his sales. The newspapers of regional languages increase the power of
local appeal.

(v) Picture Advertising:

In newspaper advertising it is easy to understand the message of the non-

classified advertisement. In the newspaper, the advertisement can be inserted
with a picture. Such visual advertisements have good impression on their
customers and they in turn try to purchase products.

(vi) Easy Change:

The advertisement inserted in the newspaper can be changed according to the

situation. It is also possible to change the advertisement daily. If we want to
change the size, that is also possible. The advertisement can be inserted
keeping the interests of customers.

(vii) Advertising Consultancy:

ADVERTISEMENTS:

The department of the advertising of the newspaper can give wise and practical
consultancy regarding the copy, size and time of advertisement.

(viii) Flexibility:

An advertisement can be made flexible. By bringing necessary changes in the

advertisement copy more and more people can be attracted and it leaves a good
impression on their minds.

(ix) Source of Newspaper’s Earning:

An advertisement is a big source of income for newspapers. If advertisements

are not inserted in newspapers, no newspaper can exist for a long time.

(x) Record:

ADVERTISEMENTS:

Readers can keep the cuttings of newspaper advertisements so that they may
write or know the proper place and address to get that product.

Limitations of Newspaper Advertising:

The following are the limitations of newspaper advertising:

(i) Short Life:

The life of a newspaper is short. After taking one reading the reader throws it
away. As a result if an advertisement fails to catch the eye of the reader, it
cannot attract his attention for the second time.

(ii) Poor Printing:

ADVERTISEMENTS:

News is often printed on cheap newsprint. The printing of newspapers is neither

attractive nor good. Moreover, the advertisement message is not published in
attractive printing.

(iii) Limited Circulation:

Newspapers have a limited area of circulation, i.e. up to district or state level.

Therefore, the advertisements printed in these papers remain limited to that
area. For instance, the newspapers printed in Madhya Pradesh are limited to
that state. They don’t go out of the state and have no importance for outsiders.

(iv) More Advertising Cost:

Advertisements are often repeated many times in newspapers. The rates of

esteemed newspapers are very high. Thus the advertisements become costly.
Moreover, a marketer has to correspond with the celebrated (popular)
newspapers for the space of advertisements and the desired space is often not
available. Moreover, customers give a cursory glance on such advertisements.

(v) Competition:

ADVERTISEMENTS:

Sometimes, a single newspaper carries different advertisements regarding the

same kind of things. This gives rise to the bad sense of competition among
advertisers. This is not good for manufacturers but can be positive for
customers.

(vi) Cursory Reading:

Daily newspapers are read hurriedly and in a cursory way. Unless the
advertisement is attractive, readers will not pay much attention to it.
(vii) Lack of Uniformity:

Newspaper advertisements lack uniformity. Advertisement, space, size and type

are not uniform. The reason is that newspapers do not have standard size. Some
are small and some are very large. By inserting an advertisement in such
newspapers the customer feels confused.

(viii) Miscellaneous:

The advertisement given in the newspaper is suitable only for daily use. These
advertisements reach the educated class only.

In India, a large population is not educated. Therefore, their use is also limited.

It is very important to select a newspaper for the advertisement because many

newspapers are published in this country. The following points should be
considered while making selection.

(а) Popularity and fame of the newspaper among people

(b) The number of copies published

(c) Kinds of advertisements printed and their numbers

(d) Kinds of people that read the paper

(e) Rates of advertisements and policy regarding advertisements

(f) Outlook of the newspaper, nature of advertising product and the budget
available for that

(II) Magazine Advertising:

Magazine advertising is also a part of press advertising. These magazines are

different from daily newspapers and they are published at regular intervals, i.e.
weekly, fortnightly, monthly, quarterly etc. and they can be put into two
categories— (a) General Magazines (b) Specialist Magazines. They are also
called periodicals.

Many types of magazines and journals are published and they have a wider area
and more influence than that of newspapers. Some popular magazines are
circulated all over the world and magazines like Reader’s Digest and Life are
popular throughout the world. An advertisement or appeal made through them
becomes effective and forceful because people read them in the moments of
rest and with a carefree mood.

Merits of Magazine Advertising:

The following are the merits of magazine advertising:

(i) Attraction:

The Magazines use good quality of paper. Therefore a coloured and charming
advertisement can be given in them. It fascinates readers in a powerful way.
These pictures have a magical effect and readers feel compelled to watch that
advertisement.

(ii) Long Life:

The life of a magazine is longer than that of a newspaper. Magazines are

published weekly, fortnightly, monthly, quarterly, half yearly, annually. Therefore
the advertisement inserted in the magazine has a long life. As long as the
magazine is with the customer, he often turns its pages and the advertisement
draws his attention time and again. As a result, it inspires him to buy that
commodity.

(iii) Easy Approach:

A reader generally reads the general magazine in his moments of rest and does
not feel uncomfortable in reading advertisements. People read magazines after
lunch or dinner or in a journey to pass their time. By doing so, the
advertisement catches their attention.

(iv) Approach to Particular Persons:

Different types of magazines are published keeping in view the interests of

particular persons. For example, the magazines for medical men, accountants,
scientists and businessmen are printed for this purpose. An advertisement can
be made effective by selecting a journal or magazine.

(v) Low Cost:

Although the cost of magazine advertising is high yet its circulation covers a
large area. The longer life of the magazine presents an advertisement for a long
time. Therefore, the cost of an advertisement becomes less.

(vi) Advantage of Goodwill:

Through magazine advertising advertisers get the benefit of the popularity of

that magazine. Magazines are printed time and again. By maintaining their high
standard they maintain their own popularity, so they do not accept any doubtful
advertisement. It means that the popularity of a magazine gives an indirect
advantage to the advertiser.

Demerits of Magazine Advertising:

The following are the demerits of magazine advertising:

(i) Costly:

The cost of magazine advertising is often more than expected. That is why
wealthy, affluent and prosperous concerns get their advantage.

(ii) Inelastic:
The circulation and publication of magazines is almost fixed in numbers.
Generally, there is no increase or decrease in their numbers. This means that
the number of readers is also limited.

(iii) Lack of Timely Approach:

This medium does not provide the quick and fast facility for an advertisement
because it is fortnightly or monthly. This gives rise to a possibility that the
advertisement may lose its importance due to late publication.

(iv) Advertising of Limited Goods:

Through this medium only selected goods are advertised. Particularly, the things
of luxury get preference in these advertisements.

Type # 2. Direct Mail:

Direct mail advertising means the form of advertising in which the advertiser
sends personal message in writing through post to some selected persons. As
this method approaches a person directly, it is also called ‘Direct Advertising’.
This is also called Advertising through Letter Box.’

The foremost job in such kind of advertising is the preparation of a mailing list.
Such a list should include only those who are able and likely to respond to the
advertisement. The list can be prepared from various sources such as the list of
present and past customers, list prepared by salesmen, list compiled from
directories such as telephone directory, voters’ list, etc.

Definitions:

According to Richard Messner, “Direct mail advertising is a vehicle for

transmitting a publicist’s message in permanent, written or processed form with
controlled distribution directly to selected individuals.”

According to J.W.W. Cassels, “Direct mail advertising is using the letter box to
tell the right people about the right goods at the right time in the right way.”
According to Nystrom, “Direct mail advertising means dispatching
advertisement materials to potential customers by post.”

According to Mason and Rath, “Every type of mail which is being sent to by an
advertiser to potential customers is known as direct mail.”

Advantages of Direct Mail Advertising:

(i) Press advertising is meant for large masses whereas direct mail is intended
for the addressee only. In fact, this is the only method of advertising which
establishes direct relations.

(ii) The advertisement could reach any part of the country.

(iii) The messages that cannot be given through advertisements could be

managed by direct mail.

(iv) Direct mail advertisements save the time and energy of both the advertiser
and customers.

(v) Direct mail advertising helps make customers permanent because the
correspondence between the advertiser and customers goes on continuously.

(vi) It provides very wide scope for advertisement. The fact is that it has the
widest scope because the letter box may communicate the message of the
advertiser at all the places throughout the world.

(vii) The advertiser may maintain secrecy also in direct mail advertising.’

(viii) Direct mail advertising provides the opportunity to the advertiser in as

much detail as he wants.

Limitations of Direct Mail Advertising:

(i) It is not cheap as postal charges are high. Practically, it is the costliest
method of advertising.

(ii) The preparation of a proper mailing list is not an easy job.

(iii) Even the list prepared with utmost care would become obsolete in a short
time.

(iv) It has not proved its supremacy in all fields.

(v) It has proved to be ineffective in case of products which need personal

examination.

(vi) This form of advertisement cannot be adopted when the consumers are
illiterate.

(vii) This form of advertisement gives rise to fraudulent practices.

Type # 3. Outdoor Advertising and Publicity:

It is the oldest form of advertising and remains the most common medium even
today. Outdoor advertising comprises the advertisements which attract
customers when they are out of their homes. These advertisements are
displayed on roads or in public areas.

This is used very widely and very often. Actually, this form of advertising is
complementary to press advertising. It is adopted with the object to remind
consumers of the product time and again and at all times and places. This
method is very useful for the products which need a wide appeal.

Merits of Outdoor Advertising:

i. Outdoor advertising is highly flexible and is a low-cost medium.

ii. Outdoor advertising attracts the quick attention of people and requires very
less time and effort on the part of readers.
iii. A complete picture of the product can be shown through outdoor advertising.

iv. Outdoor advertisements are very convenient because almost all the products,
especially consumer products, can be easily and effectively advertised through
these media.

v. These advertisements attract the attention of all the persons, educated as

well as uneducated.

vi. These advertisements have a very long life.

vii. These advertisements are quite successful in drawing the attention of the
maximum number of persons.

viii. Attractive colours, designs and pictures can be used in these

advertisements.

ix. These advertisements offer a high degree of elasticity because the number of
posters, boards etc., may be selected according to the needs and requirements
of the advertiser.

x. These advertisements can suit the advertising budget of every businessman.

xi. These advertisements can easily and effectively meet the local advertising
requirements of a product.

Demerits of Outdoor Advertising:

i. Outdoor advertising has limited scope, so advertisements are displayed at a

particular place.

ii. In outdoor advertising, posters and wall paintings damage the beauty of a
city.

iii. Outdoor advertising is very expensive due to its limited scope.

iv. Outdoor advertising serves with other advertisements like press
advertisement.

v. Due to public advertisement, there is a lack of personal touch with customers.

vi. Outdoor advertisement cannot carry long messages as posters, hoardings,

etc. are read by people at a glance.

vii. Outdoor advertisements sometimes cause accidents on busy roads.

Forms of Outdoor Advertising:

i. Posters:

Posters mean the papers or cardboards which are pasted on the walls of
buildings, bridges and other public places. These posters are prepared in a very
attractive manner and are pasted on the walls of common places. It is also very
common to write slogans and other messages about the products in bold letters
on the walls to attract the people even from long distances.

Film exhibitors use this medium for advertising and the posters are pasted in
such a manner that they are projected to the people at public places. The cost is
less and it is flexible. It has a short life, because in cities, posters pasted in the
morning may disappear in the evening with the pasting of new posters on them.

ii. Hoardings:

Advertising hoardings or boards are the boards, generally made of tin, of big
sizes, painted in beautiful colours and pictures carrying the advertising
message in brief. Generally, hoardings appear more attractive than posters.
These boards are placed on main crossings, bus stands, railway stations, cinema
halls, educational institutions etc. Hoardings are also erected on the top of
bridges and important buildings. These boards attract the attention of maximum
number of persons passing by those places.
iii. Electric Display:

This is the latest and most attractive form of outdoor advertising. Under this
form, the name, design, etc. of the product are written in electronic lights or
neon tubes. Electrical displays are fixed at heavy traffic consumer centres.
These displays attract the attention of persons, particularly in the night. The
beauty and attractiveness of electric display depend upon the skill of electrical
engineers.

iv. Bus, Tram and Train Advertising:

These are the posters, small in size, written beautifully and placed inside trains,
buses, tram cars, vans, etc. The people travelling in these vehicles repeatedly
notice them and keep them in their memory. Under this method, advertising
may be on back side or the sides of buses, trucks, etc., by painting or fixing
boards. Vehicles give mobility to the message.

v. Sandwich Board Advertising:

Under this method of advertising, some persons are hired. These persons are
decorated in the manner that they may advertise for the product wherever they
go. Then these persons move from one place to another in procession.

They play musical instruments also and attract the attention of the public. This
sort of advertising has a short life, but is effective. Cinema, theatres, circus
usually adopt this method of advertising. Nowadays road show is also organised
by Two-Wheeler companies.

vi. Counter and Window Display:

This is a very common form of outdoor advertising. Under this form, counters
and windows are decorated in the manner that the attention of general public
may be drawn. These counters and windows are fixed at some important places
also, such as— cinema hall, bus stand, railway station, etc. A good arranged
system of window display naturally increases sales. It gives a memorizing
attitude to the public, even if one is not entering the shop at the sight of the
display.

Type # 4. Entertainment Advertising:

Some producers resort to entertainment advertising as a medium for

advertising their products. This medium not only advertises products, but also
entertains consumers too. This advertisement is also effective as it attracts
buyers and stimulates them to buy products.

Types of Entertainment Advertising:

i. Radio:

Radio is the quickest medium of advertising when compared to newspapers or

magazines. Sound moves faster than any other media. It is a popular medium of
advertising for a commercial firm. Radio makes its appeal to the ear.
Commercial radio broadcasting has become popular and is widely used in all
countries.

In India up to 1967, there was no commercial advertisement by All India Radio.

Radio Ceylon was popular for advertising. But since 1967, All India Radio has
been broadcasting advertisements. Now, radio advertisements are gaining
greater popularity these days.

Advertisements are broadcast from the transmitting stations of the commercial

service of All India Radio and private FM Radio broadcasters and picked up by
the receiving sets owned by the public. Radio and advertisements are normally
broadcast along with the popular programmes of music. Even the sponsored
programmes of music, interviews and plays can be broadcast over the radio.

Radio advertising has the following merits:

a. Its coverage and appeal are wide. Radio advertising covers numerous
listeners of different tastes with an effective appeal.
b. It is the best means for illiterate people who cannot read newspapers and
magazines.

c. Spoken words are more effective than written words.

d. The repetition of a message is quite common.

e. Radio advertising is flexible and timely.

f. Radio provides selectivity to some extent because advertisements can be

included in different programmes meant for different types of people.

g. Radio advertisements are very much suitable for the promotion of mass-scale
consumer goods.

The demerits of radio advertising are as under:

a. A detailed message cannot be announced over the radio. People may not
remember the message.

b. It is non-visual. Thus, the visual impact of illustrating the product is not

possible.

c. It is quite costly.

d. Sometimes, the message is not understood properly by listeners.

e. In many cases, listeners may get irritated with commercial advertising and
switch off their radio-sets.

f. The effectiveness of advertising cannot be measured.

ii. Television:

Television uses both video and audio signals. Thus it makes appeal through both
the eyes and the ears.
Television is the fastest growing medium of advertising because of the huge
expansion of electronic media and cable network. Products can be
demonstrated as well as explained as in film advertisements. Advertising may
take the form of short commercial and sponsored programmes.

Advantages:

Television has all the advantages of radio as well as film, namely sound plus the
additional advantage of sight. It can appeal through ear as well as eye. A
product can be demonstrated with explanation. Television reaches the audience
almost like personal face-to-face contact. To that extent, it is just like personal
salesmanship.

Full opportunity exists for product demonstration and the amplification of

selling points with audio presentation. It is really a wonderful means of mass
communication for creating market. Television combines all of the elements of
communication. For example illustration, music, spoken words and written
words. It represents a typical combination of salesmanship and advertising.

Disadvantages:

Like advantages, TV has all the disadvantages of radio and film. For example,
TV is an expensive medium. It lacks permanence. The message flashed across
TV screen must be seen and understood immediately. Hence TV does not allow
complicated messages. The remote control device which enables us to change
channels in order to skip over commercials reduces the number of audience.

iii. Cinema and Cinema Slide:

The cinema is a powerful medium of advertising. Slides are prepared and the
advertisement is written with different colours and given to the cinema owner.
He shows that advertisement before the start of the film or during the interval.
This is shown through the projector and it looks like an advertisement-board.
The advertiser makes his own film and exhibits in cinema houses.
Merits:

This kind of old advertisement leaves a permanent effect on listeners. The sale
of goods automatically goes up. Besides, the publicity of goods becomes
effective and easy since a large number of people meet and listen at one place.
This serves as an alternative medium for advertising in newspapers and
magazines.

Demerits:

Cinema advertising has its own defects. It has its reach to the local customers.
The high cost of animated films, recycling of monotonous advertisements fades
the excitement of customers. At the time of an advertisement, the hustle and
bustle of cine-goers is also disturbing. Therefore, such films should be produced
very carefully. Such films should be produced in such an attractive and
interesting way that they are educational as well as entertaining. Moreover,
they should be appealing to audiences.

iv. Fashion Show:

Fashion show is another medium of advertising. This method is more popular in

cities. The manufacturers of readymade garments and the producers of luxury
goods and cosmetic products organize various types of fashion shows to
increase the sale of their products.

Type # 5. Promotional Advertising:

It is also a very important form of advertising. It is designed for more and more
sale. The objective of this advertising is to contact the consumer at every
purchase point.

Types of Promotional Advertising:

(i) Window Display:

In this method, products are decorated in the window or showcase in such a
way that customers can see them easily. Its main aim is to attract consumers.
This arouses their curiosity to look at the displayed goods. In modern times this
is a popular medium of advertising and is used by all businessmen.

For the success of this advertising medium, it is necessary that the showcase is
placed at the right place. The goods kept in it should be changed from time to
time. Moreover, there should be proper arrangement of light. Goods should
carry price tags.

(ii) Counter Display:

To increase the sale of goods counter decoration is also essential. Counters are
kept in and out of the shop. Their purpose is to inform and attract customers.

(iii) Interior Display:

Interior display is arranged inside the showroom. That is why it is called interior
display. It is just the opposite of window display. It is usually made in the sales
hall of the showroom. The examples of interior displays in big showrooms are
glass cupboard, sunglass showcases, open shelves, open-space stairways. etc.

However, in case of small shops, interior displays are usually on or near the
counter. In case of interior displays some points must be kept in mind by the
marketer such as the principles of cleanliness, orderliness and systematic
arrangement of goods.

(iv) Drama and Music Programme:

In the rural areas, advertising can be done effectively through drama and music
programme. Commercial companies make their programmes and visit villages
and entertain villagers. In the beginning, at the interval and at the end of these
programmes information about the product is repeated.

(v) Loudspeaker:
A loudspeaker is also a medium of advertising goods and services. Many traders
wander from place to place after fixing loudspeakers on their cycles, tongas,
rickshaws or motor cars. First of all, the songs of films are played to attract the
attention of people. The persons concerned advertise their goods.

(vi) Fairs and Exhibitions:

India is a country in which various fairs and exhibitions are organized in

different times. These fairs and exhibitions are organised on local, regional,
state, national or even at international levels. For example, International Trade
Fair, New Delhi. Businessmen and manufacturers take part in these fairs and
exhibitions and display their goods. Since these fairs and exhibitions are visited
by a large number of persons, businessmen and manufacturers get a good
opportunity for advertising their goods.

In other words, exhibition is a congregation of the showrooms of different

manufacturers under one roof. Exhibition is a huge gathering of businessmen
and manufacturers from different parts for the purpose of display,
demonstration and booking orders. Trade fair is also a huge fair where displays
and demonstrations are combined with entertainment.

Merits:

i. Big or small manufacturers can exhibit their products.

ii. A variety of products displayed can be witnessed.

iii. It is a readymade market.

iv. It is always interesting to the public.

v. It is a place for display and demonstration.

vi. It creates a deeper impact.

Demerits:

i. Very high cost.

ii. No guarantee for success, as it depends on site, design of exhibition spot, etc.

Type # 6. Specialty Advertising:

Producers adopt special methods to advertise their products. For example

distributing free samples, coupons, demonstration and special prizes etc. In this
way, they lure consumers to buy their products. These advertisements remind
them of their products.

They are as under:

(i) Distribution of Free Samples:

Under this method the producer distributes free samples of the product to the
consumer. They are also given to introduce a new product and expand the
market. It increases the volume of sales when the product is new to customers.
It is an effective device when products like soaps, detergents, tea, coffee, etc.,
are purchased.

It is a method of demand creation. Sampling gives a chance to consumers to

compare the products with other substitutes. The samples are given to doctors
by medical representatives. Specimen copies of books are given to teachers.
The idea behind this is that they recommend their products for use to patients
or students.

(ii) Demonstration:

It is the instruction to educate consumers in the manner of using the product. It

is a promotional tool to attract the attention of consumers. When products are
complex and of a technical nature, demonstration is necessary, e.g., computers,
field machinery, electrical pumping set, etc. Demonstration is done in front of
consumers for mixer (mixie), grinder in retail shops, etc.
(iii) Special Prizes:

Under this method, every purchaser of the product is given a prize coupon
during a certain period. All the coupons distributed during this period are put
into a box and a lottery is drawn therefrom. The winners are given some
attractive prizes. Thus, this scheme also compels the consumers to purchase
and use the product.

(iv) Coupons:

Coupons are supplied along with products. A coupon is a certificate that

reduces the price. When a buyer gives a coupon to the dealer, he gets the
product at a lower price (e.g., regular price is Rs. 100; with a coupon it may be
Rs. 80). Coupons (same as money) are accepted as cash by retailers. Coupons
normally perform two specific functions for the manufacturer.

Firstly, they enthuse the consumers to exploit the bargain. Secondly, they serve
as an inducement to the channel for stocking the items. The manufacturer thus
succeeds in attracting consumers as well as in prompting the channel to stock
the merchandise by introducing coupons. They are useful for introducing a new
product as well as for strengthening the sale of an existing product.

According to John F. Luck and Zieglar, “A coupon is a certificate that when

presented for redemption at a retail store, entitles the bearer to a stated saving
on the purchase of a specific product.”

Types of Advertising Media (With Advantages and Disadvantages) –

Newspaper, Television, Direct Mail, Radio, Magazines, Yellow Pages and
Newsletters

1. Newspapers:

Advantages – Flexibility; timeliness; good local market coverage; broad

acceptance; high believability
Disadvantages – Short life; poor reproduction quality; small “pass-along”
audience

2. Television:

Advantages – Combines sight, sound, and motion; appealing to the senses; high
attention; high reach

Disadvantages – High absolute cost; high clutter; fleeting exposure; less

audience selectivity

3. Direct Mail:

Advantages – Audience selectivity; flexibility; no ad competition within the same

medium; personalization

Disadvantages – Relatively high cost; “junk mail” image

4. Radio:

Advantages – Mass use; high geographic and demographic selectivity; low cost

Disadvantages – Audio presentation only; lower attention than television;

nonstandard zed rate structures; fleeting exposure

5. Magazines:

Advantages – High geographic and demographic selectivity; credibility and

prestige; high-quality reproduction; long life; good pass-along readership

Disadvantages – Long ad purchases lead time; some waste circulation; no

guarantee of position

6. Outdoor:

Advantages – Flexibility; high repeat exposure; low cost; low competition

Disadvantages – Limited audience selectivity; creative limitations

7. Yellow Pages:

Advantages – Excellent local coverage; high believability; wide reach; low cost

Disadvantages – High competition; long ad purchases lead time; creative

limitations

8. Newsletters:

Advantages – Very high selectivity; full control; interactive opportunities;

relative low costs

Disadvantages – Costs could run away

9. Brochures:

Advantages – Flexibility; full control; can dramatize messages

Disadvantages – Overproduction could lead to runaway costs

10. Telephone:

Advantages – Many users; opportunity to give a personal touch

Disadvantages – Relative high cost unless volunteers are used

11. Internet:

Advantages – High selectivity; interactive possibilities; relatively low cost

Disadvantages – Relatively new media with a low number of users in some

countries.

12. Events:
Advantages – Onetime cost; highly interactive; effective if the event is a big hit.

Disadvantages – It may dilute the image of the organization if the event is flop
show.

Conclusion:

Advertisement is one of the most popular tools of the promotional mix due to its
credibility and wide coverage, which makes it an effective tool for marketing
communication.

Types of Advertising Media – 12 Types: Billboard, Mobile Billboard,

Advertising Campaign, Driven Media, Digital Signage, Flyer and
Crowdsourcing

Type # 1. Billboard:

A billboard (sometimes also called a hoarding in the UK and many other parts of
the world) is a large outdoor advertising structure (a billing board), typically
found in high traffic areas such as alongside busy roads. Billboards present
large advertisements to passing pedestrians and drivers.

Typically showing large, ostensibly witty slogans, and distinctive visuals,

billboards are highly visible in the top designated market areas. Bulletins are
the largest, most impactful standard-size billboards. Located primarily on major
highways, expressways or principal arterials, they command high-density
consumer exposure (mostly to vehicular traffic).

Bulletins afford greatest visibility due not only to their size, but because they
allow creative “customizing” through extensions and embellishments. Posters
are the other common form of billboard advertising, located chiefly in
commercial and industrial areas on primary and secondary arterial roads.
Posters are a smaller format than bulletins and are viewed principally by
residents and commuter traffic, with some pedestrian exposure.
Type # 2. Mobile Billboard:

A mobile billboard is a device within the marketing practice of advertising on

the side of a truck or trailer that is typically mobile. Mobile billboards are a
form of Out-Of-Home (OOH) Advertising. Radio, static billboards, and mall/-
airport advertising fall into the same category. Using a mobile billboard for
advertising is an advertising niche called mobile outdoor advertising.

Most mobile billboards are dedicated, customized trucks with large, but narrow,
bodies for posting the advertisements. Some of these dedicated units offer
features such as external sound systems, illumination, and hot/cold boxes for
product sampling. This type of mobile billboard is the most popular among
vendors, and the most capable in terms of gaining exposure and quick
deployment. An innovative development of mobile billboards are dynamic
advertising trailers called SkyBoard to hoist large format vinyl banners up to
4000 sq.ft.

Another trend is to use smaller but more distinctive looking mini mobile
billboards often based on the Daihatsu Midget from Japan as it is a very rare
and unusual looking vehicle in Europe and the USA, these one-seater vehicles
have a very short wheelbase so they can be parked side on so the large
advertising panels on the side are facing the traffic flow, this and the fact that
they are such unusual looking vehicles makes them very effective advertising
tools.

Some mobile billboards are installed on trucks and trailers that are in service
delivering goods. This form of mobile billboards can be less expensive than
dedicated trucks, but may also have less impressions because the trucks spend
more time at docks loading and unloading their goods.

Box-type trucks with glass panels enclosing the cargo space can be turned into
a 3-D display. Many companies use these trucks for parades, product launches,
furniture displays, and general rapid awareness creation. Anything can be
placed inside of the boxes. More recently, for micromarketing campaigns, small
engine scooters have come into play. The small scooter is used to pull a tall and
narrow signage. This form has become a very effective intercity advertising
method for Atlanta, Georgia.

Type # 3. Advertising Campaign:

An advertising campaign is a series of advertisement messages that share a

single idea and theme which make up an integrated marketing communication
(IMC). Advertising campaigns appear in different media across a specific time
frame. The critical part of making an advertising campaign is determining a
campaign theme as it sets the tone for the individual advertisements and other
forms of marketing communications that will be used. The campaign theme is
the central message that will be communicated in the promotional activities.
The campaign themes are usually developed with the intention of being used for
a substantial period but many of them are short lived due to factors such as
being ineffective or market conditions and/or competition in the marketplace
and marketing mix.

Type # 4. Driven Media:

Driven media (or a Branded vehicle) is the practice of covering or wrapping any
vehicle in vibrant, custom-designed vinyl sheets, turning a vehicle into a mobile
billboard. The purpose of this is to provide advertising impressions. Popular
vehicle choices are the Mini Cooper, Smart ForTwo, Nissan S-Cargo, and Myers
Motors NmG.

Effectiveness:

Outdoor Advertising Magazine stated that wrapped vehicles have a 97% recall
rate and 96% of survey respondents thought mobile advertising was more
effective than traditional outdoor advertising. 3M has noted that 91% of the
target noticed the text and graphics on these wrapped vehicles with 80%
recalling the specific advertisement.

The vehicle driver becomes a representative of the brand, spreading the word
to the people he comes in contact with through his daily travels, as well as
handing out informational packets, brochures, and coupons to spur interest with
traceable results.

Type # 5. Digital Signage:

Digital signage is a form of electronic display that shows television

programming, menus, information, advertising and other messages. Digital
signs (frequently utilizing technologies such as LCD, LED, plasma displays, or
projected images to display content) can be found in both public and private
environments, including retail stores, hotels, restaurants, and corporate
buildings, amongst other locations.

Advertising using digital signage is a form of out-of-home advertising in which

video content, advertisements, and/ or messages may be displayed on digital
signs with a common goal of delivering targeted messages, to specific locations
and/or consumers, at specific times. This is often called “digital out of home” or
abbreviated as DOOH.

Since digital signage content may be both frequently and easily updated, saving
the printing and/or construction costs associated with static signage, and also
because of the interactive abilities available through the accompanying
employment of such real-world interfaces as embedded touch screens,
movement detection and image capture devices, it has won wide acceptance in
the marketplace.

Type # 6. Flyer:

A flyer or flier, also called a circular, handbill or leaflet, is a form of paper

advertisement intended for wide distribution and typically posted or distributed
in a public place or through the mail.

Flyers may be used by individuals, businesses, or organizations to:

i. Promote a good or service, such as a restaurant or nightclub.

ii. Persuade or send a social, religious, or political message, as in evangelism or
political campaign activities on behalf of a political party or candidate. Flyers
have been used in armed conflict- for example, airborne leaflet propaganda has
been a tactic of psychological warfare.

iii. Recruit members

iv. Advertise an event such as a music concert, nightclub appearance, festival,

or political rally

Like postcards, pamphlets and small posters, flyers are a low-cost form of mass
marketing or communication. There are many different flyer formats.

Some examples are:

i. A4 (roughly letterhead size)

ii. A5 (roughly half letterhead size)

iii. DL (compliments slip size)

iv. A6 (postcard size)

Flyers are inexpensive to produce. Their widespread use intensified with the
spread of desktop publishing systems. In recent years, the production of flyers
through traditional printing services has been supplanted by Internet services;
customers may send designs and receive final products by mail. But flyers are
not a new medium: prior to the War of American Independence some colonists
were outraged with the Stamp Act and gathered together in anti-stamp act
congresses.

In these congresses they had to win support, and issued handbills and leaflets,
pamphlets, along with other paraphernalia, to do so. Today, some jurisdictions
have laws or ordinances banning or restricting leafleting or flyering, and
owners of private property may put up signs saying “Post No Bills”; this occurs
particularly on wooden fences surrounding building sites or vacant lots.

Type # 7. Public Service Announcement:

There are many different definitions for a public service announcement (PSA) or
public service ad, but the simplified version of PSAs are messages in the public
interest disseminated by the media without charge, with the objective of raising
awareness, changing public attitudes and behaviour towards a social issue.

Type # 8. Crowdsourcing:

Crowdsourcing is the practice of obtaining needed services, ideas, or content by

soliciting contributions from a large group of people, and especially from an
online community, rather than from traditional employees or suppliers. Often
used to subdivide tedious work or to fund-raise startup companies and charities,
this process can occur both online and offline.

The general concept is to combine the efforts of crowds of volunteers or part-

time workers, where each one could contribute a small portion, which adds into
a relatively large or significant result.

Crowdsourcing is different from an ordinary outsourcing since it is a task or

problem that is outsourced to an undefined public rather than to a specific,
named group. Although the word “crowdsourcing” was coined in 2006, it can
apply to a wide range of older activities.

Crowdsourcing can involve division of labor for tedious tasks split to use crowd-
based outsourcing, but it can also apply to specific requests, such as crowd
voting, crowd funding, a broad-based competition, and a general search for
answers, solutions, or a missing person.

Type # 9. Multimedia Messaging Service:

Multimedia Messaging Service (MMS) is a standard way to send messages that

include multimedia content to and from mobile phones. It extends the core SMS
(Short Message Service) capability that allowed exchange of text messages only
up to 160 characters in length.

The most popular use is to send photographs from camera-equipped handsets,

although it is also popular as a method of delivering news and entertainment
content including videos, pictures, text pages and ringtones. The standard is
developed by the Open Mobile Alliance (OMA), although during development it
was part of the 3GPP and WAP groups.

Multimedia messaging services were first developed as a captive technology

that would enable service providers to “collect a fee every time anyone snaps a
photo.” Early MMS deployments were plagued by technical issues and frequent
consumer disappointments, such as having sent an MMS message, receiving a
confirmation it had been sent, being billed for the MMS message, to find that it
had not been delivered to the intended recipient. Pictures would often arrive in
the wrong formats, and other media elements might be removed such as a video
clip arriving without its sound. At the MMS World

Congress in 2004 in Vienna, all European mobile operator representatives who

had launched MMS, admitted their MMS services were not making money for
their networks. Also on all networks at the time, the most common uses were
various adult oriented services that had been deployed using MMS.

China was one of the early markets to make MMS a major commercial success
partly as the penetration rate of personal computers was modest but MMS-
capable camera phones spread rapidly. The chairman and CEO of China Mobile
said at the GSM Association Mobile Asia Congress in 2009 that MMS in China is
now a mature service on par with SMS text messaging.

Europe’s most advanced MMS market has been Norway and in 2008 the
Norwegian MMS usage level had passed 84% of all mobile phone subscribers.
Norwegian mobile subscribers average one MMS sent per week. By 2008
worldwide MMS usage level had passed 1.3 billion active users who generated
50 billion MMS messages and produced annual revenues of 26 billion dollars.
Type # 10. Technology and Marketing:

“Market pull” and “technology push” are not mutually exclusive paths to
corporate innovation. Understanding the technology-marketing interface and
integrating it with corporate strategy and organizational design is the way to
maintain a productive balance between the two. The argument is simple.

Market development and technological innovation must have a symbiotic

relationship for any business unit to achieve long-term success. Technological
innovation without market application results in a barren squandering of
resources.

Yet, long-term marketing success cannot be achieved without technological

innovation. Such a simple observation should be self-evident, but it requires
restating, given the current debate as to whether marketing, and in particular
the marketing concept, has substantially contributed to current American
economic problems.

This debate has developed due to the lack of understanding of the

complementary roles played by technological development and marketing in
successful business strategy. There is an immense literature concerning all
aspects of technology including the innovative process, technological transfer,
managing research and development, technological substitution, and
technological assessment.

There is an equally immense literature about marketing, with detailed

discussion of topics such as market segmentation, marketing research,
assessing market potential, and strategic marketing management. However, for
the most part, each literature has assumed away the other.

Writers in technology have stated that a market, and presumably an appropriate

marketing strategy, are essential for the commercial viability of a new
technology. Marketing writers have paid lip service to technology as the source
of new and improved goods and services but have failed to ask how
technological strategy and marketing strategy are interrelated.
The failure to understand the technology-marketing interface has led to charges
that market-pull processes of technological innovation are inferior to technology
or science push process. Furthermore it has been argued that this movement to
“market pull” is a recent phenomenon brought about by the acceptance of the
marketing concept as the dominant managerial philosophy by many American
corporations.

Type # 11. Marketing in the Information Age:

Successful marketing frequently depends on skillful management of

information. Here are some recent innovations in communication technology
that will have a profound impact on marketers. “A few years ago we did not
even know where the data processing department was located,” admitted the
marketing vice president of a large Chicago distributor. “Now I believe we are
the single largest user of systems, particularly communications.”

Marketing is one of the business functions most dramatically affected by

emerging information technologies. Because marketing is so inherently
communications- intensive, networking technologies are particularly useful.
This article illustrates major opportunities to exploit communications systems to
support the marketing functions.

Type # 12. Group Formation:

Every social planner agrees that the only way to reach the majority of the
illiterate population with development information in a country as large as India
in a quick and efficient way is via the mass media. Television, with its images,
bring scenes right amongst the viewers but it is still very expensive to the
average Indian even as it is gaining ground in popularity among the urban
population in the country.

However, in remote rural areas, especially among the economically poor

population, radio is still the cheapest means to reach the masses. India is a
nation steeped in traditional culture and customs which are often governed by
religious and superstitious beliefs. Despite the availability of modern curative
and preventive medical technologies, rural folks still rely heavily on traditional
practices related to the care of pregnant women and new born infants.

Unless there is a substantial gain in knowledge of the scientific aspect of

mother and child care among rural women, their attitudes and practices
regarding this important factor of life affecting infant mortality rate (IMR) as
well as maternal mortality rate (MMR) will not be reduced easily in the country.
Albeit, the IMR and MMR may be reduced due to improvement in the
infrastructure of the health services delivery mechanisms in the country but the
use of these facilities will depend on the women themselves.

In this respect, media has an important role to play in creating awareness about
the need and availability of these services. It becomes in instrument of social
behaviour change. With the above in mind, All India Radio with active and
financial support from UNICEF, organized a series of media orientation
programmes (MOP) culminating in the formation of rural women radio forums
with the specific purpose of educating them on mother and child care. These
MOPs took place from 1983 to 1990.

Selection of Media and its Vehicles

1. Objectives of Firm

Company's general and advertising objectives are the prime considerations in

media selection. Those media capable to meet company's expectations are likely
to be selected. Advertising objectives may be to inform, remind, convince,
create prestige, or to increase sales and profits. Different media have varying
capacity to meet these objectives.

2. Costs Media and Company's Financial Position

Media selection decision is highly influenced by media costs and firm's ability to
pay. Company has to pay for buying space or time and preparing advertising
copy fit for the media to be selected. TV, radio, films are costly in terms of
buying time and preparing advertising copy. Print media are relatively cheaper
in both space and preparation of advertising message. Some outdoor media are
quite low in cost. As per media costs and company's financial capacity, the
appropriate media should be selected.
3. Reach or Number of People Exposed to the Message

It is an important criterion to choose among ad media. Reach means the

number of different people exposed to a particular medium at least once during
a specified time period. Mass media are capable to reach millions of people by
just one exposure. Television has more exposure capacity compared to outdoor
media in a particular time.

Local media can expose the message to limited persons. In the same way,
frequency (the number of times within a specified time period the average
person exposed to the message), and impact (the impact created on audience by
an exposure through given medium) are also key criteria to choose among
advertising media. Reach, frequency, and impact are important variables that
determine cost- effectiveness of various media.

4. Company's Advertising Policy and Approach

Company's advertising policy and approach determine which of the media

should be selected. For example, if company's policy is not to spend more
money for advertisement and to offer the product at a low price, it may go for
cheaper media.

5. Type of Buyers

People to be influenced should be taken into account while selecting the media.
Buyers can be classified into various classes as discussed in market
segmentation. Each medium has its special viewers, readers, or audience. For
the firm, it is important to know whether the target groups can be exposed by
the particular medium.

Television is the most common medium, but can be made more particular by
selecting the special programme. Magazines are capable to appeal particular
sex, age groups, or professionals. Daily newspapers are again very general in
nature.

Readers'/viewers' mood and interest determine receptivity of message.

Television is the best-fit medium to associate advertising message when people
are watching or enjoying related programmes. For example, advertising TVS
Victor motorbike on television during the live telecast of the TVS Cup One-day
Series.

However, it is difficult to determine mood or interest of readers for daily

newspapers. It is relatively easy to determine mood of people during a specific
programme in radio or television. In case of outdoors media, the place is very
important to judge mood of people. For example, hoardings, posters, or banner
near gardens or picnic places are more likely to be attracted.

7. Circulation/Coverage

The area covered by (or number of people exposed to) the medium is an
important criterion. Some media are capable to cover the globe while some can
cover only the limited locality. For example, the local newspapers cover limited
areas, the national newspapers like The Time of India and The Economic Times
cover the whole nation.

Similarly, certain magazines have national and international circulation. And,

the same is true with audio- visual and outdoor media. As per geographical
concentration of customers, the suitable media should be selected.

8. Repetition or Frequency

Repetition or frequency implies the number of times within specific time period
an average person is exposed to the message by specific medium. Most of the
outdoor media hold the message for relatively long time. Magazines or
periodicals publish monthly or quarterly; mostly they publish advertisements
only in a particular edition.

The more is the repetition of advertising message, the more is the effect of the
medium on people. Naturally, advertisement appears frequently is more likely to
read or attend than if it appears only once. However, repetition in case of
newspapers, TV, radio, etc., depends on company's ability to pay.

9. Credibility and Image of Media

In case of newspapers and magazines, the factor is critical. Naturally,

advertising message appears in the reputed newspapers or magazines carry
heavy impression and effect than substandard media. People don't trust the
appeal published in the lower standard media. Prestige of media becomes the
prestige of advertiser. Firms opt for credible or prestigious media to carry the
advertising message.

Company's own past experience may be instrumental to decide on advertising

media. For example, if company has satisfactory experience of using a
particular medium, there are more chances to use the same medium and vice
versa.

11. Experience of other Companies

Experience of other companies is one of the important considerations in media

selection. Company may try to know what other companies say about
applicability and usefulness of various media. Views of other companies must be
followed with care and caution.

12. Expert Opinion

Marketing experts or consultants who work on professional basis can be

consulted to suggest an appropriate medium to carry the message. These
experts, on the basis of analysis of market situations in relation to products to
be advertised, can recommend the suitable media. Since they have experience
and expertise in the field, they are in better position to judge the suitability of
each of the media in relation to product and company's financial position. They
charge fees for their consultancy services.
13. Type of Advertising Message

Each advertising message needs specific advertising vehicle. If a message is

simple, print media are sufficient. If a message is complicated, and the company
wants to demonstrate and explain, audiovisual media suit the needs.

14. Others

Apart from above mentioned factors, there are certain factors that affect media
selection decision.

They are listed as under:

• Effectiveness of Media

• Availability of Media

•Government Rules and Regulations

•Time and Place

Media Vehicle

A media vehicle refers to a specific method (like digital, radio, newspaper etc)
of media used by a business to deliver advertising messages to its target
audience. The first step is to pick a suitable media class, that is, a general
category of media, like radio, television, the Internet, newspapers or magazines.
This is followed by selection of the right media vehicle, such as a specific radio
station, television channel, online website or print publication. The aim is to
reach the target consumer group and receive a good response to the advertising
messages from the group.

Following is the brief description of each media and media vehicles:

A. Indoor advertising media:

Indoor advertising media represents the use of those vehicles by the advertisers
that carry the message right into the houses or indoors of the audiences.

These vehicles are:

ADVERTISEMENTS:
(1) Newspapers

(2) Magazines

(3) Radio

(4) Television and Film.

ADVERTISEMENTS:

Here, the message reaches the audience indoors when it is cozy and in
receptive mood because, house is the resting place for the inmates to
relax.

1. Newspapers:

Life without newspapers is like life without a cup of tea or coffee. Newspaper is
one that gives news, views, interpretations, opinions, comments and explanation
regarding social, economic, political, cultural, moral, ecological, meteorological
and wide variety of walks of fast changing life. In India, there are 21 major
languages, published in 91 languages, India has 20,000 newspapers. For every
40 literate persons there is one paper.

The merits of news-paper as a medium of advertising are:

1. Wide coverage.

ADVERTISEMENTS:

2. Quick response.

3. Regularity and frequency.

4. Flexibility and speed.

5. Economical.

ADVERTISEMENTS:

The relative demerits are:

1. Shortest life.

2. Lack of quality reproduction.

3. Waste in circulation.

ADVERTISEMENTS:

4. Possibility of duplication.

2. Magazines:

Magazines are the periodicals published weekly, fortnightly, monthly, quarterly

and annually. They cover a wide variety of topics providing light leisure reading
in easy chairs. Well known, though provoking and authentic articles from almost
all branches of human knowledge are given along with entertaining items like
puzzles, cartoons, comics and the like.

Indian magazine-world supplies at present 4,200 weeklies, 2,000 fortnightlies,

7,800 monthlies, 400 quarterlies and 10,000 annual numbers totaling 22,600.
For every 35 literate persons, there is one such magazine.

The relative merits, are:

ADVERTISEMENTS:

1. Longer life.
2. Visual display.

3. Selectivity.

4. Loyalty and prestige.

5. Geographic flexibility.

The relative demerits are:

ADVERTISEMENTS:

1. Inflexibility.

2. Waste in circulation.

3. Costlier.

4. Restricted frequency.

3. Radio:

Radio advertising can be aptly called as ‘word of mouth’ advertising on a

wholesale scale which was accepted in 1920. It has a history of 71 years to-date.
India, as a late beginner, started commercial broadcasting only in 1967 by now
radio has covered 100 per cent of population. At present, there are 175 medium
wave transmissions, 60 short wave transmitters and 110 F.M. transmitters.

At present, there are 60 million sets which work out a set for every two people.
The advertisements may be straight commercials dialogue, commercials
dramatised , commercials integrated commercials and musical commercials.

ADVERTISEMENTS:

The relative merits of radio advertising are:

1. Human touch.

2. Flexibility and timing.

3. Mass coverage.

4. Economy and

5. Selectivity.

ADVERTISEMENTS:

The demerits are:

1. Message perishability.

2. Lack of illustration.

3. Limited time.

4. Wastage.

4. Television:

Radio ruled the scene between 1920 and 1970. Its greatest and latest rival has
been television that smashed its supremacy from 1950s.

ADVERTISEMENTS:

In India, it was commissioned for the first time in 1959 and went commercial in
1976 and transformed into colour in 1982. By now, 90 per cent of the population
is covered by the way of television.

We have 10 million sets working in India giving a figure of one set for every 100
people. Television advertisements are called as television commercials lasting
for 10, 15, 20 and 30 seconds. These may be ‘stop motion’, ‘puppets’, ‘cartoons’
or ‘line-action type’.

The relative merits are:

1. Deep impact.

2. Selectivity and flexibility.

3. Mass communication media.

ADVERTISEMENTS:

4. Upper hand in distribution and

5. Life like presentation.

The demerits are:

1. Shortest life.

2. Costlier.

3. The clutter problem.

4. Time taxing.

5. Film advertising:

Film advertising is yet another medium of publicity characterized by sound,

motion, colour, vision and timeliness. This audio-visual medium has a wide
range of exhibits starting from an ordinary slide presentation to the ad films
screening.

Slide is the protected glass piece covering ad message. The films shot and
screened are ‘filmlets’, ‘solus’ and ‘magazine’ type. They are in the time range
of 15 second to 300 seconds. In India, Blaze Advertising Agency takes film
production and distribution.

The exhibition is done by theatre owners. There are 6,000 cinema towns with
15,000 permanent cinema houses with an average capacity of 1,000 seats.
There are 3,000 touring theatres with the average capacity of 450 seats.

Of late, the importance of cinema has been reduced as India has more than 3
million sets of VCRs and VCPs. and 1 lakh video parlours.

The relative merits are:

1. Dramatic impact.

2. Selectivity and flexibility.

3. Mass publicity 4. Least waste and

5. Supplementary, the demerits are:

The demerits are:

1. Costlier.

2. Interjection.

3. Limited coverage.

4. Clutter problem.

B. Outdoor advertising media:

Outdoor advertising is the only one of its kind that has been carried for ages.
This Is the media to reach the people when they are out of doors. The ad
message is delivered to the audience like print and broadcast media; rather the
message is placed in strategic places exposed to moving audience.
Its strength is tremendous because, 97 per cent of the total adult population
moves out of doors every week. Its vehicles are: posters, printed displays,
electric signs, travelling displays, sky writing, sandwich men and the like.

A ‘poster’ is a sheet of paper pasted on a wooden or a card or metal board

depicting the ad massage. It can be standardized or non-standardised as to size
and colours.

The success of poster rests on poster designing and the site of pasting. A
‘printed display’ is the painted bulletin and the wall painting. It is standardised
metal sheet of rectangular shape hung on hoarding stands at strategic places.

An ‘electrical sign’ is a spectacular sign giving light effects, creating charming

and enchanting scene in the dark. A ‘travelling display’ is an advertising sign
seen in and outside travelling vehicles like train, buses, car, taxis, trams, autos
and the like.

A ‘sky writing’ is a kind of publicity where message is spread in the sky in the
form of a smoke or fire-workers nor the lights. A ‘sandwich-men’ advertising is
the team of tall and dwarf men singing and spending the ad message and is the
oldest and the simplest of all vehicles of outdoor advertising.

The relative merits are:

1. Wider and deeper appeal.

2. Greater flexibility.

3. Economy.

4. Easy accommodation and

5. Beautification.

The demerits are:

1. A reminder publicity.

2. Uglification.

3. Heavy investments.

4. Immeasurability.

C. Direct advertising media:

Direct advertising is one of the oldest methods of reaching the consumers.

Direct advertising covers all forms of printed advertising delivered directly to
the prospective customers instead of indirect distribution like news-papers and
magazines.

This printed matter is distributed house to house by personal delivery, handed

to persons on the sidewalks, placed in the automobiles, stuck under the wind-
screen of an automobile, handed over at the retail outlets or sent through post.

It takes different forms to deliver the sales message to the prospects through
the medium of mail or person. These are post cards envelope enclosures, broad-
sides, booklets, catalogues, sales letters, gifts novelties, stores publications,
package inserts and free samples.

The merits are:

1. Highly selective.

2. Flexibility.

3. Personal touch.

4. Deeper impact and

5. Results measurability.
The demerits are:

1. High cost.

2. Low reader interest

3. Warrants special skill.

4. Limited span.

D. Display advertising media:

Display advertising or promotional advertising is hinged on the concept of

display. Display is the systematic arrangement of samples of saleable products
to catch the imagination and the notice of the people.

Display demonstrates directly about the product or products by presenting

them than by telling and selling the points indirectly. It is also called as P.O.A. or
point of advertising.

The significance of display advertising lies in four points:

1. It allows the prospects to experience the product before buying,

2. It is an effective dealer aid,

3. It attracts the consumers to the shop, and

4. It makes possible impulse buying.

Promotional advertising has three vehicles namely, displays, showrooms and

show- cases and exhibitions and fairs.

‘Displays are basically of two types namely, ‘window’ and ‘counter’. ‘Window’
display implies showing of goods in the front window of the shop. It is window
showmanship.
The merits are:

1. Point of purchase impact.

2. Colourful life-size presentation.

3. Acts as a beauty mask. ‘Counter’ display or ‘interior’ display stands for all
arrangement that is made in the sales hall of the shop. It is internal
showmanship in the garb of storage.

The merits are:

1. Easy location of products.

2. Impulse buying.

3. Consumer loyalty.

However, there are some specific problems which are to be tackled for
better results. These are:

1. Creativity.

2. Placement.

3. Wastage.

The success of display advertising depends on the perfect understanding

of:

1. The shopping habits of consumers.

2. The needs of the store manager.

3. Forms of display.
4. The display idea and

5. Getting the displays used.

Coming to ‘showrooms’ and ‘show cases’, ‘showroom’ is a specially designed

room or a room-cum-office, rented or owned, located in the prominent place of
the sales territory used mainly for display, demonstration and after sale
services.

On the other hand, ‘show case’ is a glass-box, a glazed case, a cabinet with
glass-doors or glass-panes or a glass cupboard designed to display the products
in an artistic way.

These are placed in the conspicuous places like railway stations, airports, bus
terminals, cinema houses, or specially rented buildings, city squares, parks,
post offices and other market places.

The merits of showrooms and show cases are:

1. The place to get orders.

2. The training ground.

3. The centre for after-sales services.

Coming to ‘exhibitions and fairs’, ‘exhibition’ is a congregation of showrooms of

different manufacturers under as single roof. It is a huge gathering of
manufacturers for the purposes of display, demonstration and booking orders.

On the other hand, ‘trade-fairs’ is a huge fair where the display and
demonstrations are combined with entertainment. Trade fair is more than an
exhibition.

The merits of exhibition and trade fair are:

1. The place for display and demonstration.

2. Deeper impact.

3. Market development.

However, the basic problems involved in success of these exhibitions and

trade fairs are:

1. High cost and

2. Management, the success depends on sound planning as to size, site, design

of exhibition spot, technical and sales staff and display and demonstration
tactics and styles.

Developing a Media Mix:

The market diversities in terms of consumer preferences, competitive

pressures, availability of media and the like necessitate the designing of a
media-mix so as to meet the requirements of these diversities with view to
maximize the message impact. That is, there is hardly any company that is
happy with only one medium or media vehicle. This media mixing is also called
as ‘multimedia strategy’.

Basically, development of a media-mix is a problem of determining the optimum

allocation of firm’s advertising funds. The funds earmarked are to be so
distributed over different media and media vehicles that the marginal returns
from each component are equal.

In other words, the last rupee spent on any component should produce the same
rupee return as the last rupee spent on other components.

This marginal or equimarginal concept of media-mix development

therefore, is a matter of three broad steps namely:

1. Media-wise collection of data of past expenditure.

2. Analysis of data so as to get reasonably accurate representations of the net
returns curves for each medium, together with sales results.

3. Subsequent adjustment of budget allocation to different media so that the

slopes of the several net returns curves tend to equalize. This last step is trial
and error approach in which one starts with a given feasible allocation, lest it
locates profitable changes and brings changes leading to a raise in the net
returns.

At a point when there are no further chances of rising net returns, one arrives
at the optimum allocation of funds representing the optimum media mix. This
trial and error method is like the linear programming model of media-mix which
has been developed to help the advertising executives in making media-mix
choices. The best examples of this kind are:

High Assay Model,

Simulation Model and

Mediac Model.

Media Scheduling:

Media scheduling is the very next managerial task, once the media-mix is
developed. A media schedule is a time-bound detail of advertisements with
reference to the media selected.

Media schedule portrays the total audience coverage, the message frequency
and the continuity of the message. As noted earlier, coverage, reach, frequency
and continuity are interrelated concepts and are to be carefully considered and
weighed while developing media schedule.

Media scheduling decisions are extremely important for two reasons

namely:
1. Purchases of radio and television time and news-paper and magazine space
represent the largest elements of the cost in the advertising budget.

2. The success of an advertisement in achieving advertising objectives largely

depends on how each show or magazine reaches the consumers in the target
market segment.

Following are some of the media scheduling theories that assist the advertising
executives in media schedule development. Though these provide quantitative
tools of media scheduling, an advertising manager is expected to employ his
judgment because, he has failed to measure accurately all the attributes of all
the media open to him. Here, a mention is made of three theories of scheduling.

The first one is the Wave Theory, according to which the advertiser purchases
time and space in different media for a relative short time and moves out of
these media in ‘waves’ in the hope that the impact of his advertising will carry
over from the periods of heavy concentration to those of no advertising. In
essence, this theory sacrifices continuity and builds-up coverage and frequency.

The second one is Media Dominance Theory according to which an advertiser

buys unusually large amounts of space in one medium; after building up
coverage and frequency in that medium, he shifts another medium for a short
period. Thus, it speaks of saturating one medium at a time before touching
another.

The third one is Media Concentration Theory which states that the advertiser
concentrates fully on only one medium than spending on different media for a
short period. This theory values continuity for longer periods. The actual
applicability of these theories depends on their relative merit in a given
marketing situation.

The Advertising Message:

Formulation of advertising message is an integral part of media planning and

selection.
The phrase ‘advertising message’ includes two basic elements namely:

1. The appeals (copy claims) that represent the central idea of the message.

2. The method of presentation (the style of execution) that is used to present the
copy claims. Message formulation involves designing of the advertising copy
and structuring the advertising layout so that the company’s claims (USPs) can
be presented effectively before the audience for appropriate product-
positioning. Let us know in brief these concepts namely, product positioning,
unique selling proposition, copy and layout.

Product Positioning:

The phrase ‘product-positioning’ signifies an effort to find a new segment of the

market, a unique niche not tightly controlled by a competitor. Thus, it refers to
the placement of company product or products in the minds of target
consumers relative to the competitive products, as having certain distinctive
benefits and want-satisfying potential.

In other words, it is an attempt to capitalize on distinctive appeal not exploited

by the competitor. Positioning represents more a state of mind or image than
different ingredients or attributes; such a state of mind is derived from
advertising, more than from product-planning and design.

Advertising is an instrument of positioning or repositioning a product or

products of the company in the minds of the consumers by focusing their
attention on ‘claims’ or ‘unique selling proposition’ or the ‘theme’ being
conveyed through the message.

The Unique Selling Proposition (USP) (Theme):

Advertising theme or campaign theme is the appeal or the substance of a given

advertisement message. It is the key-note concept that gets the message in a
challenging manner across the prospects.
It is that central idea around which the campaign is built. It is the ‘big selling
idea’ known as unique selling proposition or the USP. The USP is the heart of
advertising campaign.

It is an offer that an advertiser makes to his consumers which is unique in

relation to the competing offer or offers and promises to deliver a certain
distinctive benefit or benefits or a package of satisfaction.

It is conveyed through the copy or the artwork or both. The underlying idea
behind the USP is that it differentiates qualities of a product or a service. It
means that each campaign should promise the prospect a specific benefit based
on the USP and particularly one that is not offered by the competitors. The
selling proposition or the appeal or the claim must entice the prospects to gain
new customers for the product or the service.

A good campaign theme is one that aims at any basic buying motive, attracts
the right group of prospects, ties in logically with the product and its qualities
and is capable of being used in multiple media.

Thus, MRF Company says about its tyres as ‘the tyre with muscles’, CEAT
Company says of its tyre as ‘born tough’ Food Specialties India says about
noodles ‘two minutes’. Thus, the theme is prime ad message.