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ADVERTISIN G

By ITM XMBA 10 (Adarsh, Parag, Arvind, Asmita, Hemraj, Vijay)

Introduction to advertising
Advertising is a collection of activities by which

visual and oral messages are used to pass a message to a particular target group in order to inform and influence them to buy the product. Advertising always aims at profit and awareness.

Anything that calls attention to a product or service Examples: - TV commercial - Newspaper/magazine ad - Poster - Clothing - Cigarette lighter, .

Vijay

Role of advertising
Facilitates communication and persuasion Importance of being universally recognized Creates employment Raises standard of living Provides Mutual benefit

Marketing Communication Economic Societal

The process a

business uses to satisfy consumer needs by providing goods and services


Product category Target market Marketing mix Brand

Role of advertising
Marketing Communication Economic Societal

Can reach a mass

audience Introduces products Explains important changes Reminds and reinforces Persuades

Vijay

Role of advertising
Marketing Communication Economic Societal
Moves from being

informational to creating demand Advertising is an objective means for providing pricevalue information, thereby creating a more rational economy

Role of advertising
Marketing Communication Economic Societal
Informs consumers

about innovations and issues Mirrors fashion and design trends Teaches consumers about new products Helps shape consumer selfimage Perpetuates selfexpression

Types of advertising
Product advertisingTries to sell a

specific product to final consumer or channel members


Pioneering advertising builds primary

demand Competitive advertising builds selective demand

Corporate/institutional advertisingTries

to promote an organization's image, reputation or ideasrather than a specific product

Types of Advertising

Brand advertising Retail or Local advertising Direct-Response advertising Business-to-Business advertising Institutional advertising Nonprofit advertising Public Service advertising hemraj

Major advertising media


Magazine Television Newspaper Yellow Pages Radio Outdoors Cinema Internet Parag

The Functions of Advertising


Builds awareness of products and

brands Creates a brand image Provides product and brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases and brand experiences

Advertising and Promotion: T Viewpoints wo


Proponents Argue That Proponents Argue That Advertising and Promotion :: Advertising and Promotion Pro vide s d Pro vi e s Info rm a tion n o I fo rm a ti n E n co u ra g e s E n co u ra g e s A H igh e r S ta n d a rd g A H i h e r S ta n d a rd O f Livi g vin O f Li n g Pro m o te s Pro m o te s C o m p e titi n in tio n C o m p e ti o n i T h e M a rke tp lace a T h e M a rke tp l ce Critics Argue That Advertising and Critics Argue That Advertising and Promotion Promotion C re a te s N e e d s a n d C re a te s N e e d s a n d W a n ts A m o n g W a n ts A m o n g C o n su m e rs C o n su m e rs
2003 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinH

C re a te s Job s a n d o C re a te s J b s a n d H e lps N e w Firm s p rm H e l s N e w Fi s E n te r a M a rke t E n te r a M a rke t


Arvind

Is M o re Pro p a g a n d a s I M o re Pro p a g a n d a T h a n Info rm a tion n o T h a n I fo rm a ti n

Pro m o te s Pro m o te s M a te riali ,, a ism M a te ri lsm Inse cu rity a n d n ty I se cu ri a n d G re e d G re e d

Economic Impact of Advertising


E ffe cts oon CConsumerer C h o ice Effects on Co n su m e Choicece E ffe cts on Consumer r C h o i Effects n o n su m Choice D iffere n tiation ffe a o Differentiation Differentiation D i re n ti ti n B ra n d Loyalty Brand Lo ya l ty Brandd Loyalty B ra n Lo ya lty E ffe cts oon CCompetition tio Effects on Co m p e titi n E ffe cts on Competitionn Effects n o m p e ti o B a rriers to eentry e Barriers to n try Barriers to en try B a rri rs to entry E co n o m iesof fscalee Economies e Economies ofo scalel E co n o m i s o fsca l sca e E ffe cts o n p ro d u ct co sts a n d p rices ce E ffe cts o n p ro d u ct co sts a n d p ri s A d ve rtisi g a s a n exp e n se th a t sin A d ve rti n g a s a n exp e n se th a t incre a se s th e co st o f p ro d u cts n i cre a se s th e co st o f p ro d u cts Incre a se d d iffere n tiation n ffe a o I cre a se d d i re n ti ti n
Arvind
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CONSUMERS

IMPACT ON

Today, advertising is a multi-billion industry, employing hundreds of thousands of people and affecting billions of peoples lives worldwide. Yet, seeing as advertising clutter has increased tremendously and is more intense than ever, it is vital that companies differentiate themselves from competitors by creating even more powerful, entertaining and innovative advertisement messages, as well as sponsoring different events. Examples of such companies that spend billion of dollars on marketing strategies in order to stay key players in their industry are The Coca-Cola Company and PepsiCo. Impact on consumers 1.Right to choose It gives the right to choose among the various products available in the market 2.Product Awareness - Consumer information, product quality, and seller reputation 3.Creates competition Its creates competition in the market which encourages the brand players to deliver quality goods at lower price 4.Right to bargain Its gives the consumer right to bargain 5.Brand Loyalty-In differentiated product markets where consumer preferences are characterized by brand loyalty, an important role for advertising may be to overcome brand loyalty by encouraging consumers to switch to less familiar brands. Arvind

Influencing demand
Advertising
Assessing the effects of advertising benefits of advertising
to firms to consumers

costs of advertising

to firms to consumers and society generally Asmita

Advertising Life Cycle


Asmita

Influencing demand
Advertising
Aims of advertising shifting the demand curve to the right making demand less price elastic
creating greater brand loyalty

Effects of advertising advertising and the long run

Adarsh

Advertising and the long run

s2

Habit sales Direct effect on sales

Sales (weekly)

s3

Sales

s1

Sales

Long-term effect

Advertising campaign
t1 t2 t3 t4 Adarsh t5 Time

Influencing demand
Advertising
Aims of advertising shifting the demand curve to the right making demand less price elastic
creating greater brand loyalty

Effects of advertising advertising and the long run advertising and company growth Adarsh

Advertising, profit margins and company growth


Advertising expenditure relative to competitors

Product image and company reputation

Relative quality of offering

Relative price

(Relative) customer value Real market growth

Market share

Growth Adarsh

Profit margins

Piyush Pandey , Executive Chairman & National Creative Director , O & M

Indian advertising is comparable to advertising anywhere in the world. Some of the best creative talent resides here and we are just beginning to recognize our potential. This field is wonderful for those who have a healthy balance of creativity, passion and ambition. Advertising may not be your perfect well paying ninetofive job, but is ideal for someone who isnt afraid to face challenges to the mind and heart. To be successful in this field one needs to be able to explore and appreciate culture and be a sponge by nature, absorbing all that happens around them. A good sense of humor and the ability to take punches also come in handy. Alyque Padamsee, Ad veteran and Chairman London School of Speech and Personality Id like to compare advertising to car racing. It is full of thrill and exhilaration, but it comes with its own dangers. There is a risk of burnout because you are working 24 hours a day, 7 days a week, 52 weeks a year. Clients are the biggest stressors. They believe that because they are hiring you, they deserve to be served the idea tomorrow. Thats why we say, If you like bags under your eyes, join advertising. My advice to the young recruits is to have a passionate hobby that helps you switch off from workbe it cricket, photography, theatre or even running after girls.

Prasoon Joshi , Executive Chairman , McCann Ericson India

What makes advertising special is the freshness of new challenges everyday, the advantage of working with a diverse but very interesting bunch of people and the work environment which is pulsating with excitement and chilled out at the same time. Very few industries today are untouched by the accelerated pace of work and the stress that comes with it, and advertising is no exception. You need to deliver constantly and your mind is ticking 24x7 over the right idea.

Adobe Acrobat Prahlad Kakkar , Director , Genesis ent Docum Films

Advertising in India has undergone a world of change in the last 20 years and has finally become truly international. Previously the industry was controlled by the great white gods, the expats, who didnt understand India and its nuances and everything vernacular was looked down upon. Now is a different generation of people who are as comfortable watching Bollywood as they are watching Hollywood and who are proud of their Indianiat. They are represented by a class of admen like Piyush Pandey and Prasoon Joshi, the sons of the soil, who cater to an India that dreams in two languages, English and the vernacular. To become successful in advertising you need to be irreverent and antiestablishment, in addition to being

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