Study on the Effect of Advertisement on Consumers 123 by Sanjay Gupta

Study on the Effect of Advertisement on Consumers

Table of Content ADVERTISING.......................................................................................................................................3 INDUSTRY SNAPSHOT............................................................................................................................4 NATURE OF THE INDUSTRY...................................................................................................................5 MEDIA....................................................................................................................................................7 IN-FILM ADVERTISING............................................................................................................................9 WORK ENVIRONMENT ........................................................................................................................10 PERSONAL CHARACTERISTICS..............................................................................................................11 EMPLOYMENT AVENUES......................................................................................................................12 PUBLIC SERVICE ADVERTISING............................................................................................................12 REGULATION........................................................................................................................................13 Copyright.......................................................................................................................................14 ADVERTISING AGENCY...................................................................................................................15 HISTORY OF AD AGENCY.....................................................................................................................17 ADVERTISING PROCESS.......................................................................................................................19 TYPICAL WORK FLOW IN AGENCY.......................................................................................................19 TYPES OF ADVERTISING AGENCIES......................................................................................................20 THE FUNCTIONS OF AN ADVERTISING AGENCY:...................................................................................23 THE BENEFITS OF USING AN ADVERTISING AGENCY..........................................................................23 ADVERTISING AGENCY'S ROLE...........................................................................................................24 SERVICES OFFERED BY AD AGENCY..........................................................................................25 DEPARTMENTS & PERSONNEL.....................................................................................................28 ACCOUNT SERVICES / ACCOUNT MANAGEMENT ...............................................................................28 Account planner / Director............................................................................................................28 Account Supervisor........................................................................................................................29 Account executives ........................................................................................................................29 CREATIVE DEPARTMENT......................................................................................................................30 Art Directors..................................................................................................................................30 Copywriter.....................................................................................................................................31 DIGITAL STUDIO .................................................................................................................................36 DTP Artist......................................................................................................................................36 Visualizer.......................................................................................................................................36 MEDIA DEPARTMENT...........................................................................................................................37 FUNCTIONS OF THE MEDIA DEPARTMENT...........................................................................37 MARKETING RESEARCH DEPARTMENT................................................................................................39 CREATIVE SERVICES DEPARTMENT.....................................................................................................40 EVENT MANAGEMENT AND PROMOTION DEPARTMENT......................................................................40 TRAFFIC MANAGER (SYSTEM ADMINISTRATOR)..................................................................................40 RADIO & TV BROADCAST PRODUCTION DEPARTMENT .....................................................................41 PRINT PRODUCTION DEPARTMENT......................................................................................................42 AGENCY PERSONNEL.......................................................................................................................43 PRODUCTION TEAM.............................................................................................................................43 STORYBOARD ARTIST...........................................................................................................................43 GRAPHIC DESIGNER.............................................................................................................................44 ADVERTISING INTERNS........................................................................................................................45 JOB POSITIONS AND EARNINGS...................................................................................................46 AGENCY COMPENSATION..............................................................................................................47 IMPACT OF TECHNOLOGY ON ADVERTISING ........................................................................48 COMMON SOFTWARE USED BY AD AGENCY.........................................................................................49 ADOBE PHOTOSHOP.............................................................................................................................50 QUARKXPRESS....................................................................................................................................50

Study on the Effect of Advertisement on Consumers AUTODESK MAYA...............................................................................................................................51 ADOBE FLASH......................................................................................................................................52 CORELDRAW......................................................................................................................................53 COMPUTER-AIDED DESIGN (CAD).......................................................................................................54 FAMOUS ADVERTISING AGENCIES IN WORLD.......................................................................55 OGILVY & MATHER INDIA ............................................................................................................56 OVERVIEW ..........................................................................................................................................56 NETWORK............................................................................................................................................57 KEY PEOPLE.........................................................................................................................................58 SERVICES OFFERED..............................................................................................................................58 MAJOR CLIENTS...................................................................................................................................59 INDIAN AD LEGENDS........................................................................................................................60 LARGE VS. SMALL AGENCIES.......................................................................................................64 WORKFORCE FOR AD AGENCY....................................................................................................65 STUDY / TRAINING & ADVANCEMENT.......................................................................................66 COURSES / INSTITUTIONS.....................................................................................................................68 FUTURE................................................................................................................................................70 OUTLOOK.............................................................................................................................................71 MYTH: ...................................................................................................................................................72 AN AGENCY ALWAYS HELPS TO SELL A PRODUCT..............................................................72 CASE STUDY1......................................................................................................................................73 ADVERTISING CREATIVE ..............................................................................................................77 EFFECT OF ADVERTISEMENT ON CONSUMERS.............................................................78 ...............................................................................................................................................................126

Study on the Effect of Advertisement on Consumers

Advertising Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion. Advertising involves the process where in a massage is designed so as to promote a product, a thought, an idea or even a service. The concept of advertising has assumed a dynamic form with the use of the various mediums of communication. From the newspaper, magazines, posters, neon and fluorescent signboards, billboards to the commercial on TV, laser shows to inflated high-rise figures and objects, advertising has come a long way. The work is formidable as it spearheads a process intended to attract, modify, change and influences public opinion. From the local business to multinational firm and all need to advertise. While politicians, social organizations, government special groups need to advertise their motto, national airlines, auto mobile manufactures, food and consumer goods manufacturers have to reach the consumer. Specialist products and services are often advertised through trade magazines and exhibitions. Lately mail-shots, handbill circulation, special offers have become very popular. There are still other ways of advertising. There are window displays, display on telephone directories, transit sign on buses, lamp posters, banners, etc. Advertising through the electronic media has been perhaps the most popular medium. Advertising, as an effective medium, uses a variety of techniques to create effective advertisements. A basic appeal is at the heart of advertising. Slogans and product characters are created to catch the attention of the viewers. Most winning advertisements would encompass factual information with emotional appeal. The advertising industry has three major sectors. â&#x20AC;˘

Business or organization which wishes to advertise,

â&#x20AC;˘

Media which provides the medium for advertising and

â&#x20AC;˘

Ad-agency which creates the ad to suit the need of the firm.

Study on the Effect of Advertisement on Consumers Ad agencies vary in the size and turnover. Nevertheless the process of creating an ad remains the same. The annual expenditure on the advertising has been to the tune of Rs 8000 crores and the figure could be higher. USA has projected media spending on advertising on the net to approximately $7700 by the turn of the century. The scope for advertising professionals certainly shows an upward trend.

Industry Snapshot According the Advertising Age's 2002 Agency Report, the world's six largest advertising agencies accounted for over 65 percent of $39.28 billion spent on advertising worldwide in 2001. But the advertising industry has suffered during the first years of the 2000s. The economy decline prior to and exacerbated by the terrorist attacks of September 11, 2001 has been sustained by the ongoing conflict with Iraq. As an indicator of the softened demand for advertising services, advertising agency employment fell to just over 180,000 in December 2002, down from an average employment of 194,400 in 2001 and 182,400 in 2002, representing the largest decline since 1991. Advertising agencies are primarily responsible for two functions. The first is the production of advertising materials in the form of written copy, art, graphics, audio, and video. The second is the strategic placement of the finished creative product in various media outlets, such as periodicals, newspapers, radio, and television. Advertising agencies can be found throughout the United States, with the greatest percentage located in large cities. Many have headquarters in New York and field offices in Chicago, Los Angeles, San Francisco, Atlanta, Detroit, and other major areas of commerce in order to be close to clients. Although the larger agencies are more frequently mentioned in the media and in trade publications, the industry is actually predominately comprised of smaller agencies, many with only one or two principals. Industry observers credit lower overhead, diversified services, willingness to accommodate change, and an entrepreneurial attitude for the success of smaller, boutique agencies. As many clients have begun to focus on a variety of forms of marketing communications, advertising agencies have had to look beyond conventional media4

Study on the Effect of Advertisement on Consumers based advertising. Advertising budgets reflect this shift, with additional dollars being earmarked for point-of-sale promotions, public relations, and a major entry into the media mix—the Internet. Changing demographics and a savvy American consumer were the driving forces behind these alternative forms of marketing communications. Some industry leaders have projected that advertising agencies will need to augment their primary line of work and change their longstanding compensation system based on commissions. Realizing the need for "integrated marketing services," many agencies have responded by offering public relations, direct mail, promotional, and Internet services.

Nature of the Industry Firms in the advertising and public relations services industry prepare advertisements for other companies and organizations and design campaigns to promote the interests and image of their clients. This industry also includes media representatives—firms that sell advertising space for publications, radio, television, and the Internet; display advertisers—businesses engaged in creating and designing public display ads for use in shopping malls, on billboards, or in similar media; and direct mail advertisers. A firm that purchases advertising time (or space) from media outlets, thereafter reselling it to advertising agencies or individual companies directly, is considered a media buying agency. Divisions of companies that produce and place their own advertising are not considered part of this industry. Most advertising firms specialize in a particular market niche. Some companies produce and solicit outdoor advertising, such as billboards and electric displays. Others place ads in buses, subways, taxis, airports, and bus terminals. A small number of firms produce aerial advertising, while others distribute circulars, handbills, and free samples. Groups within agencies have been created to serve their clients’ electronic advertising needs on the Internet. Online advertisements link users to a company’s or product’s Web site, where information such as new product announcements, contests, and product catalogs appears, and from which purchases may be made.

Study on the Effect of Advertisement on Consumers Some firms are not involved in the creation of ads at all; instead, they sell advertising time or space on radio and television stations or in publications. Because these firms do not produce advertising, their staffs are mostly sales workers. Companies often look to advertising as a way of boosting sales by increasing the public’s exposure to a product or service. Most companies do not have the staff with the necessary skills or experience to create effective advertisements; furthermore, many advertising campaigns are temporary, so employers would have difficulty maintaining their own advertising staff. Instead, companies commonly solicit bids from ad agencies to develop advertising for them. Next, ad agencies offering their services to the company often make presentations. After winning an account, various departments within an agency—such as creative, production, media, and research—work together to meet the client’s goal of increasing sales. Widespread public relations services firms can influence how businesses, governments, and institutions make decisions. Often working behind the scenes, these firms have a variety of functions. In general, firms in public relations services advise and implement public exposure strategies. Firms in public relations services offer one or more resources that clients cannot provide themselves. Usually this resource is expertise in the form of knowledge, experience, special skills, or creativity; but sometimes the resource is time or personnel that the client cannot spare. Clients of public relations firms include all types of businesses, institutions, trades, and public interest groups, and even high-profile individuals. Clients are large and small forprofit firms in the private sector; State, local, or Federal Governments; hospitals, universities, unions, and trade groups; and foreign governments or businesses. In an effort to attract and maintain clients, advertising and public relations services agencies are diversifying their services, offering advertising as well as public relations, sales, marketing, and interactive media services. Advertising and public relations service firms have found that highly creative work is particularly suitable for their services, resulting in a better product and increasing their clients' profitability.

Study on the Effect of Advertisement on Consumers

Media Commercial advertising media can include wall paintings, billboards , street furniture components, printed flyers, radio, cinema and television ads, web banners, web popups, skywriting, bus stop benches, magazines, newspapers, town criers, sides of buses, taxicab doors and roof mounts, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, stickers on apples in supermarkets, the opening section of streaming audio and video, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising. Covert advertising embedded in other entertainment media is known as product placement. A more recent version of this is advertising in film, by having a main character use an item or other of a definite brand - an example is in the movie Minority Report, where Tom Cruise's character Tom Anderton owns a computer with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. The TV commercial is generally considered the most effective mass-market advertising format and this is reflected by the high prices TV networks charge for commercial airtime during popular TV events. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none existing in real-life. Virtual product placement is also possible. Increasingly, other mediums such as those discussed below are overtaking television due to a shift towards consumer's usage of the Internet. Advertising on the World Wide Web is a recent phenomenon. Prices of Webbased advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives. E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "spam".

Study on the Effect of Advertisement on Consumers

Profile of major advertising mediums MEDIUM

ADVANTAGES

LIMITATIONS

Newspaper

Flexibility; timeliness; good local

Short life; poor reproduction

market coverage; broad acceptance;

quality; small pass along

high believability.

audience.

Combines sight, sound and motion;

High absolute cost, high clutter,

appealing to the senses; high

fleeting exposure, less audience

attention; high reach.

selectivity

Audience selectivity, flexibility, no

Relatively high cost, junk mail

ad competition within the same

image.

Television

Direct mail

medium, personalization. Radio

Mass use, high geographical and

Audio presentation only; lower

demographic selectivity; low cost.

attention than television; non standardized rate structure; fleeting exposure.

Magazines

High geographical and demographic

Long ad purchase lead time;

selectivity; credibility and prestige;

some waste circulation; no

high quality reproduction, long life;

guarantee of position.

good pass-along readership. Outdoor

Brouchers

Flexibility; high repeat exposure;

Limited audience selectivity;

low cost; low competition.

creative limitation.

Flexibility; full control; can

Overproduction could lead to

dramatize message.

run away costs.

Study on the Effect of Advertisement on Consumers

In-film advertising In-film advertising used to mean a couple of product billboards placed behind the hero's car, Till Taal came along. That's the film that put Coke — and product placements — firmly in the plot. In-film advertising has only gathered more fans since. It's not just the colas, brands like Hero Honda, Bru, and Fair & Lovely have got into the act. It has become a well-thought out and legitimate part of a brand's marketing plan, and as the film industry gets more corporatised, it's likely to get more popular. This season's got a blockbuster hitting the screen, with all the attendant song, dance and scandal. Kaante stars Amitabh Bachchan, Sanjay Dutt, Sunil Shetty, Kumar Gaurav, Lucky Ali and Mahesh Manjrekar — and Thums Up. Coke's paid Sanjay Gupta, the film's producer, to feature the cola in some scenes — rumours put the figure at Rs 4 crore, but Coca-Cola, as well as the producer, say it isn't so — and it's also airing promos for the film that incorporate the Thums Up brand. Leo Entertainment, the film marketing division of Leo Burnett, is working with White Feather Productions in their marketing efforts.

Study on the Effect of Advertisement on Consumers

Work Environment Ad agencies are based within office settings. Accounts Executives, Account Planers, Media Executives, Art Directors and Copywriters spend most of their working time in agency office. Account Executives have to travel extensively, visiting clients and suppliers. While other staff, travel occasionally to attend meetings with clients, or visit locations during film production. Ad agencies are very busy places and often work is on till late hours. In 2004, workers in the industry averaged 33.8 hours per week, a little higher than the national average of 33.7. Most employees in advertising and public relations services work in comfortable offices operating in a teamwork environment; however, long hours, including evenings and weekends, are common. There are fewer opportunities for part-time work than in many other industries; in 2004, 14 percent of advertising and public relations employees worked part time, compared with 16 percent of all workers. Work in advertising and public relations is fast-paced and exciting, but it also can be stressful. Being creative on a tight schedule can be emotionally draining. Some workers, such as lobbyists, consultants, and public relations writers, frequently must meet deadlines and consequently may work long hours at times. Workers, whose services are billed hourly, such as advertising consultants and public relations specialists, are often under pressure to manage their time carefully. In addition, frequent meetings with clients and media representatives may involve substantial travel. Most firms encourage employees to attend employer-paid time-management classes, which help reduce the stress sometimes associated with working under strict time constraints. Also, with todayâ&#x20AC;&#x2122;s hectic lifestyle, many firms in this industry offer or provide health facilities or clubs to help employees maintain good health.

Study on the Effect of Advertisement on Consumers

Personal characteristics People in the accounts or client servicing i.e., the Account Executives, Director and planer need to be adept at negotiating. The ability to communicate easily is vital. They face the challenge of competing in the market with other agencies; hence need to have drive determination and tremendous physical and mental stamina. Sensitivity to consumer behavior, trends and human nature are important for success in advertising. They should be able to assimilate the clientâ&#x20AC;&#x2122;s requirements and in a lucid style prepare briefs for other departments. The ability to get the work executed by all departments is specially required. The creative people need a good visual ability, language\artistic skill. Copywriter requires literary ability but an interest in commercial success which comes from understanding what motives the target audience is important. Writers must be able to work, to a strict brief, within restricted space and in limited time. Advertising must follow legal requirements and rules hence considerable creative self-discipline is needed. A feeling for words, economy of style and imagination is needed. The copywriter works with the art director, and the creative director. The work can be very frustrating particularly when an idea is rejected by the art director and amendments made by the creative director and the client. This can often restrict the imaginative capacity of the copywriter. The openness to stand criticism is absolutely essential. Media Executives, Planners and Executive directors with others in an integrated team. They should be able to interplant a great deal of information. Media buyers spend most of their time negotiating over the telephone to buy space or time. Attention to detail is needed for keeping to the budget allocated.

Study on the Effect of Advertisement on Consumers

Employment avenues The business of advertising has been growing in proportion to the national economy. Greater competition between domestic and multinational firms has spurred marketing and advertising efforts. Competition for these jobs is growing. Creative college graduates with communication skills will get the best jobs. Job opportunities are in advertising agencies, commercial radio and public, Multinational firms, advertising/PR department of organisations/business/government. Advertising agencies have the highest profile in a much larger advertising industry, composed of various media, advertisers, printers, photographers, typesetters, and others that act as suppliers to the industry. Accordingly, agencies attract most of the people who want to get into advertising. Generally speaking, an agency is not the place to start an advertising career until the candidate has acquired two sorts of knowledge not available in most academic institutions. First, an extremely good working knowledge of how a wide variety of businesses work is necessary, for agencies serve so many kinds of clients. Second, one must develop good interpersonal business skills to be successful in the agency industry, and these skills are usually developed only in on-the-job experiences.

Public service advertising The same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about noncommercial issues, such as AIDS, political ideology, energy conservation, religious recruitment, and deforestation. The Government of India has for a long time relied considerably on the talents of the Advertising Agency and the Advertising Agencies Association of India for social causes.

Family Planning is the most successful

campaign for a social cause by any advertising agency. Advertising, in its noncommercial guise, is a powerful educational tool capable of reaching and motivating large audiences.

Study on the Effect of Advertisement on Consumers

Regulation There have been increasing efforts to protect the public interest by regulating the content and the reach of advertising. Some examples are the ban on television tobacco advertising imposed in many countries. The general aim of such codes is to ensure that any advertising is legal, decent, honest and truthful. Some self-regulatory organizations are funded by the industry, but remain independent, with the intent of upholding the standards or codes. In India there is Advertising Agency’s Association of India (AAAI) that supervises the affairs of the industry. There is a body called Advertising Standards Council of India (ASCI), which looks at issues pertaining to regulation of advertising.The advertising of controversial products such as cigarettes and condoms is subject to government regulation in many countries. For instance, the tobacco industry is required by law in India and Pakistan to display statutory warnings cautioning consumers about the health hazards of their products. Some potential ETHICAL ISSUES often come under scrutiny form moral or ethical perspective and border on being regulated are mentioned here. The idea is to be more aware and sensitive to them looking at advertising. •

Untruthful and misleading claims made in the ads.

•

Misrepresentation of facts or situations in the name of creative license.

•

Obscenity and misuse of sex advertising.

•

Advertising inducing children

•

Advertising of products that are commonly assumed to have harmful effects like alcohol, cigarette, drugs, weapons, etc.

•

Surrogate advertising with hinted or hidden message.

•

Media issues like use of billboards and other outdoor advertising (for traffic & safety reasons)

•

Civil rights or rights of privacy or citizens

Study on the Effect of Advertisement on Consumers

Copyright Copyright is a set of exclusive rights regulating the use of a particular expression of an idea or information. At its most general, it is literally "the right to copy" an original creation. In most cases, these rights are of limited duration. Copyright may subsist in a wide range of creative, intellectual, or artistic forms or "works". These include poems, plays, and other literary works, movies, choreographic works, musical compositions, audio recordings, paintings, drawings, sculptures, photographs, software, radio and television broadcasts of live and other performances, and, in some jurisdictions, industrial designs. Copyright law covers only the particular form or manner in which ideas or information have been manifested, the "form of material expression". It is not designed or intended to cover the actual idea, concepts, facts, styles, or techniques which may be embodied in or represented by the copyright work. Several exclusive rights typically attach to the holder of a copyright: •

to produce copies or reproductions of the work and to sell those copies (including, typically, electronic copies)

•

to import or export the work

•

to create derivative works (works that adapt the original work)

•

to perform or display the work publicly

•

to sell or assign these rights to others Ad agency is supposed to follow the rules and regulations of copyright laws

while creative ads for any product they must see that the concepts are not fully copied from somewhere else.

Study on the Effect of Advertisement on Consumers

Advertising Agency Getting the best out of advertising is a highly skilled job. It requires the inputs of experts in many different fields like writers, artists, photographers, designers, television production crews and many others. Even the biggest advertisers cannot afford to employ all these experts. Almost all advertising is therefore arranged through an advertising agency which provides the necessary skill to turn the message into a memorable and effective advertisement. Advertising has not only come to reflect pop culture but has also become an important element of economic growth. Today, every person connected with the Indian economy or public should be fully aware what advertising really is and why effective advertising campaigns can be performed by full-service advertising agencies. Advertising agency is one of the most important components of advertising industry. It has played a significant role in the development of modern advertising. The advertising agency has evolved to provide the specialized knowledge, skills and experience needed to produce effective advertising campaigns. It provides a quality range of service greater than any single advertiser could afford or would need to employ. An advertising agency is a firm that specializes in the creation, design and placement of advertisements, and in the planning and execution of promotional campaigns for products and services of their clients. The Association of Advertising Agencies of America (AAAA) defines advertising agency as â&#x20AC;&#x153;An independent business organization composed of creative and business people who develop, prepare and place advertising media for sellers seeking to find customers for their goods and services.â&#x20AC;? The glamour, the unlimited expense accounts, and the exhilarating lifestyle all these popular portraits of life in the big-time advertising agency are misleading. Advertising is demanding, challenging, hard work. It is also interesting and fulfilling. Advertising requires a mix of personal abilities, considerable business skills, and an ability to work under pressure to meet deadlines. Compared to larger industries, there are never many entry-level positions open in advertising agencies (dozens rather than hundreds). And competition is stiff. The industry, however, is constantly on the look

Study on the Effect of Advertisement on Consumers out for skilled, bright, articulate, creative and personable men and women with a wellrounded education and a good business sense. An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for their clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce single ads or, more commonly, ongoing series of related ads, called an advertising campaign.

Study on the Effect of Advertisement on Consumers

History of ad agency 1. Period of early growth 1841 - 1865. The first advertising agency on record in the US was Olney B. Palmer. In 1841, Palmer organized a newspaper advertising and subscription agency. By 1849 he had established offices in the cities of New York, Boston, Baltimore and Philadelphia. At this early fate, there were no directions of newspapers and no published rates for space to be sold to advertisers. Palmer acted as an informatory agent in these matters to prospective advertisers. In essence, he served as a salesman of space for publishers and they in turn, gave him a commission of 25% of such sales. The publishers found these methods of selling more effective than trying to sell direct and advertisers, wishing to reach more than one territory found value in such service. Completion increased, and the usual price cutting occurred. Success seemed to depend upon one’s ability to bargain with the publisher and advertiser. The natural result of this policy was a general reduction in profits to the agency; this led to a search for new competitive tools which would return a profit.

2. Wholesaling Period 1865 – 1880 George P. Rowell, who opened an agency in 1865, supplied the new competitive tool. Rowell contracted with 100 newspapers to sell him a column of space each week for a year. Throughout the wholesaling period, the agent continued as a seller of space for publishers. This took on different forms, one of which was the exclusive right to sell space in certain publishers. Thus, one agency developed a controlled list of religious papers, another a “List of Thirsty” household magazines. Any advertiser wishing to buy space in the controlled publications was forced to buy through the exclusive wholesaler for that paper.

Study on the Effect of Advertisement on Consumers 3. Semi Service Period 1880 – 1917 The wholesaling phase of agency work was checked when publishers began to establish their own sales departments for selling space. Some of these departments sold direct to the advertiser, others to the general advertising agency. Thus, the agency was forced to turn its attention somewhat away from the particular function of selling space for publisher and toward the function of buying space for the advertiser. Early in the semi service period agencies offered to write the copy for the advertiser, thus giving added weight to their claim of being servants of the advertiser. This concept of service was slow to develop; but in the early part of the 20 th century, agencies began to emphasize strongly this “free” service. One agency in 1905 advertised that it paid $28,000 a year for a copywriter. These methods increased the agency business and forced most space sales to be made through them.

4. Service Period 1917 – Present By 1917 the idea of service had grown until not only was copywriting done for the advertiser but many other things as well. During the service period, many agencies have grown to the position of advertising and marketing counselors for advertiser. The service elements has modified the position of agencies to such a degree that radio and television, network and magazine publishers have come to depend upon them as the primary channel through which time and space are sold. Publishers claim to have had an important part in encouragements of agencies to provide extra service to the advertiser. By providing advertisers with the kind of assistance that will improve the effectiveness of advertising, more time and space naturally will be sold.

Study on the Effect of Advertisement on Consumers

Advertising Process When preparing your search proposal, you should take into account that the “lead-in” time needed to place an ad can vary anywhere from days to months depending on the publication. You should plan to have your ad approved and an estimate of the cost done at least one month prior to the date when you want the ad to be published. The advertising process for professional staff and faculty positions involves five basic steps: 1. Writing an Ad 2. Getting Approval for the Text of the Ad 3. Estimating the Cost of the Ad 4. Placing Ads & Posting Announcements 5. Paying for Ads

Typical work flow in agency STAGE Briefing Stage

Creation Stage

Production Stage

Post Production Stage

WORK PERFORMED AT STAGE •

Briefing from the client

•

Internal briefing to the creative and media

• •

Any research briefing if required Ad campaign and media plan development

•

Internal review and finalization

•

Presentation to client and approvals

• •

Any pre-testing if required Budget and estimate approvals

•

Production of film, press ads, collaterals

•

Media Scheduling and media booking

• •

All release approvals for creative & media Material dispatch to media

•

Media release monitoring

•

Any post-testing if required

•

Billing and collection

Study on the Effect of Advertisement on Consumers

Types of advertising agencies Ad agencies come in all sizes, from small one- or two-person shops to large multi-national, multi-agency conglomerates such as Omnicom Group, WPP Group, Interpublic Group of Companies and Havas. Some agencies specialize in particular types of advertising, such as print ads or television commercials. Other agencies, especially larger ones, produce work for many types of media. Lately, Search Engine Marketing (SEM) and Search Engine Optimization (SEO) firms have been classified by some as 'agencies' due to the fact that they are creating media and implementing media purchases of text based (or image based in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term 'agency' however with the creation of ads (either text or image) and media purchases they do qualify technically as an 'advertising agency' as well as recent studies suggest that both SEO and SEM are set to outpace magazine spending in the next 3-5 years. Not all advertising is created by agencies. Companies that create and plan their own advertising are said to do their work in house. Today selection of ad-agency is very difficult. The advertiser should make list of all possible agencies that can serve his purpose and the agency best qualified to provide required and effective services are selected. Some advertiser may select more than one advertising agency to handle effectively the various product lines. Following are major types of advertising agencies that are currently serving the advertising industry.

Full Service Agencies A full service ad agency is one that provides a range of marketing services. A full services agency provides services that are directly related to advertising such as copywriting, artwork, production of ads, media planning etc. It also provides such services in respect of pricing, distribution, packaging, product design etc.

Study on the Effect of Advertisement on Consumers Modular agencies A modular agency is a full service agency that sells its services on a piece meal basis. Thus an advertiser may commission an agencyâ&#x20AC;&#x2122;s creative department to develop an ad campaign while obtaining other agency services elsewhere. Or, an advertiser may hire an agencies media department to plan and execute a program for advertising that another agency has developed. Fees are charged for actual work undertaken. In House agencies Those companies, which prefer to have closer control over advertising, have their own in-house agency. This type is owned completely by the advertiser. It performs almost all functions that an outside advertising agency would perform and thatâ&#x20AC;&#x2122;s why some people refer to it as full-service advertising department of the advertiser. However, the difference between an in-house agency and an advertising department is that the in-house agency can undertake to serve several other clients, if the owner so desires, but an advertising department solely undertakes that work of its owner and not of outside clients. Secondly an advertising department may not be equipped the personnel and facilities, which an in-house agency would posses. Inhouse agency not only provides control over advertising schedule and costs, but also offers convenience for its owner, because it is just available in the same building as that of the head office of advertiser. Such in-house agency also benefits the owner as it can bring revenue through agency commission that are offered by the media and by way of fees that are collected from outside parties for undertaking their advertising work. Such revenue increases the funds and profits of the company. There is another version of in-house agency whereby advertiser handles the total agency functions by buying service unit to buy time, space and place the ads. Such an In-house agency is an administrative center (under the direction of an advertising director) that gathers and directs varying outside for its operation.

Study on the Effect of Advertisement on Consumers Creative Boutiques These are shop agencies that provides only creative functions and not fullservice. The specialized creative functions include copy writing, artwork and production of ads, they charge a fee or percentage of full service agencies, and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services. Mega agencies A significant of 1980â&#x20AC;&#x2122;s is the development of mega agency. Agencies worldwide merge with each other serve their clients in much better way. It was in 1986, Saachi & Saachi, a London based agency who started the movement and at present it is the third largest agency network in the world. The Specialists Agency There are some agencies who undertake advertising work only in certain areas. there are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc. for instance Soubhagya advertising agency concentrate on specialized in financial advertising.

Study on the Effect of Advertisement on Consumers

The functions of an advertising agency: • To accelerate economic growth and create public awareness • To provide a total, professional, experienced service which is very personal in its nature • To take the advertiser's message and convert it into an effective and memorable communication

The Benefits of Using an Advertising Agency •

Added Expertise

•

Media Knowledge and Unbiased Advice

•

Easier Administration

•

Media Buying

•

Quality Control

•

Information

•

Fending off the media

•

And when things go wrong

•

Cost Saving

•

Time Saving

Study on the Effect of Advertisement on Consumers

Advertising Agency's Role Suppose you are a company with a product. It may be a totally new product. As a company with a product or service to sell, designing and making that item is only part of the battle. People are not going to beat a path to your door. You have to seek a channel of communication. Ad agency need to consider, for example: •

For whom is the product or service designed?

•

Who would use it?

•

Who is the "target group"?

•

What's special about the product? In what way is it distinct? Unique? Different?

•

What's its "position" in relation to other similar products?

•

What do you want to convey to the public about your product?

•

How should your company contact the public?

•

What medium should it use? Radio? TV? Newspapers? Magazines? Billboards? Bus/subway ads? Direct mail? etc.

•

How extensive a region should your company try to cover?

•

How often?

Communication and marketing decisions involve specialized expertise. Many companies that design and produce products or offer services lack these specific capabilities. This is where advertising agencies fit in. Advertising agencies exist to help companies to communicate with the public, Market the company's product. Company with a product or service

Ad Agency

Media

Public

The process of advertising involves considerable specialized knowledge and expertise •

about people - their interests, preferences, needs, wants, lifestyles, expectations

•

about media - their reach, their effectiveness, their specific appeal

•

about the company and its product – and about competing companies and their products

Study on the Effect of Advertisement on Consumers

Services offered by ad agency Total Advertising Services Strategic planning, creative development and media services for advertising, particularly in television, newspapers, magazines and radio; providing the best creative designed to capture the imagination of consumers Marketing Services Provision of a number of advertising related services, including sales promotion, market research, PR and event marketing. e-Solution Services e-solution services, including system integration services, e-business consulting and customer relationship management (CRM), Search Engine Marketing (SEM) and Search Engine Optimization (SEO) and e-promotions using the Internet and mobile. Content Business Sales of sponsorship, broadcasting and other rights, and the production and marketing of such media / content as sporting events, films, TV programs, animated content, music and other forms of entertainment. Integrated Media Services Bringing value to both clients and media-related companies by offering a wide range of media solution services Sales Promotion Providing comprehensive sales promotion planning designed to complement mass media and other activities Event Marketing Assisting clients by providing dynamic vehicles for their messages in the form of on-the-spot interactive communications Integrated Branding Services Assuring clients the highest quality of branding services for their communication needs

Study on the Effect of Advertisement on Consumers

Organization Structure The activities within an advertising agency are typically divided into 4 broad groups: account management, the creative department, media buying, and research. These divisions are usually physically separated, although all four areas work closely together to produce an advertising campaign in its entirety. Account managers usually have daily interaction with a counterpart at the client's office and coordinate the activities of the other departments according to the client's wishes. The creative department designs original themes or concepts for ads, while the media department places finished ads within the media in which they will receive the most exposure to a target audience. The research department provides data about consumers to help the agency and the client make informed advertising decisions. Recently added to advertising agencies' roster of services are public relations, direct marketing, and promotional services. Other activities that used to be completed by outside vendors, such as photography and high-tech print work, have been brought in-house in many agencies.

Study on the Effect of Advertisement on Consumers

ORGANIZATION CHART Board of Directors

Type: 1

Managing Director

Client Services Director

Creative Director

Servicing Group

Creative Groups Audio Visual

Media

Language

Research

Studio Production

Finance / Accounts

Secretarial / Legal Personnel Branches

Type: 2

Study on the Effect of Advertisement on Consumers

Departments & Personnel Account Services / Account Management The other major department in ad agencies is account services or account management. Account service employees work directly with clients and potential clients, soliciting business for the ad agency and determining what clients need and want the agency to do for them. They are also charged with understanding the clientâ&#x20AC;&#x2122;s business situation and representing those needs within the agency, so that ads can be brought to bear on the correct problem.

Account planner / Director The Account Planner is the main planning executive who works in partnership with the client on long-term account planning. He knows what is happening in the market place, the attitude of the consumer towards the clientâ&#x20AC;&#x2122;s as well as the competitorâ&#x20AC;&#x2122;s brands. Account Planner Deals with senior members of the client organization. He is responsible for agency performance as a whole with limited involvement in routine agency projects. The Account Director is responsible for forward, long-term planning, deployment of agency personnel and overall account profitability. The account planner was originally employed to "represent the consumer" in the advertising i.e., find the best way to pitch the clients products to people by better understanding them, what they want and how to talk to them. Planning's role has expanded considerably since it was originally introduced. Planners are now also brand strategists and, to a certain extent, media strategists - using consumer insights to understand where and how people are most receptive to certain messages. In many agencies, there is a dedicated media department and there are also some large and small agencies that exclusively handle media strategy and media buying.

Study on the Effect of Advertisement on Consumers

Account Supervisor A middle management position: he or she manages the account within a medium term perspective. This includes strategic planning, market analysis, competitive activity analysis, as well as recognizing and capitalizing on business building opportunities.

Account executives Account executives represent their ad agency to their clients. They understand sales and advertising problems of the client and address the client’s need to the advertising approach. In advertising ‘The account’ is the client. The business of each client with the agency is referred to as an account. An ad agency handles assignments of a number of clients. A client’s business is assigned to a team of people from the ad agency with the Account Executive at the head of team. An account executive may be handling the business of number of non-competing clients at the same time. The Account Executive supervises his team of people drawn from all departments while planning, scheduling and executing the assignment. Before a campaign is launched research on the client’s business methods, the product to be advertised is made. With this background information there is a meeting of the creative media and marketing division along with members of the client’s team. The objective of this meeting is to define the nature and use of the product, and the target users as well as other competing brands. After all the information is assigned the agency team prepares a draft brief with recommendations. These are presented to the client by the Account Executive. The brief and budget are discussed and after finalization of work. The Account Executive motivates guides and coordinates the activities so that deadlines are met and the client’s expectations become a reality. He spends a lot of time keeping the client updated on the progress. The Agency’s Director too has to be kept informed. This is done directly in smaller firms but in larger firms there may be an Account Planner or Director. The chief role of account executive is to extract the best possible work from the other departments of the agency. They are in daily touch with clients.

Study on the Effect of Advertisement on Consumers

Creative department The creative department is the people who create the actual ads - form the core of an advertising agency. Modern advertising agencies usually form their copywriters and art directors into creative teams. Creative teams may be permanent partnerships or formed on a project-by-project basis. The art director and copywriter report to a creative director, usually a creative employee with several

years

experience.

Although

copywriters have the word "write" in their job title, and art directors have the word "art", one does not necessarily write the words and the other draw the pictures; they both generate creative ideas to represent the proposition (the advertisement or campaign's key message). Creatives frequently work with outside design or production studios to develop and implement their ideas. Creative department consist of two key personnel i.e. art director and copywriters. These positions and ad agency is explained below.

Art Directors Art Directors in Advertising aren't necessarily the head of an Art Department although the title may suggest it. They typically work in teams with a copywriter. Together the team works on a concept and design for commercials, print advertisements, and any other advertising medium. The art director is mostly responsible for the visual look and feel of the creative product as well as the concept. The Art Director ensures that the end product has the same look and feel as the original concept. The copywriter has ultimate responsibility for the product's verbal and textual content, and both are responsible for coming up with big, effective

Study on the Effect of Advertisement on Consumers and persuasive ideas. Depending on the competencies of each, they may share tasks that are traditionally designated for one or the other, for instance, an art director may suggest certain wording and a copywriter may suggest a certain aesthetic for a project. Art directors may also oversee a team of junior designers, image developers and production artists. In a smaller organization the art director may fill these roles as well. In a larger organization, art directors may oversee other art directors in a senior/junior art director relationship.

Copywriter A copywriter is a person who writes text, or copy, for clients. Most copywriters work in advertising or marketing, producing copy that's intended to persuade a reader to buy a product or service or otherwise take action. Copywriting involves providing words, which are read or heard in advertisements. This may include slogans or jingles or detailed text for catalogues, brochures, leaflets and journals. Copywriting also takes the form of script for television and film commercial advertisement. Copywriters can contribute words and ideas to print ads, catalogs, billboards, commercials, brochures, postcards, online sites, e-mail, letters and other advertising media. Ultimately, the kinds of ads and media a copywriter will work in depend on his or her own inclination and what clients ask for. A copywriter often works as part of an advertising team. Agencies and advertising departments partner copywriters with art directors. The copywriter has ultimate responsibility for their ads verbal and textual content, the art director has ultimate responsibility for the visual look and appeal, and both are responsible for coming up with big, effective, persuasive ideas. Copywriter and visual art work go hand in hand and this is the work which goes on in the agencyâ&#x20AC;&#x2122;s creative department. Briefs from the Account Executive outlining the target group for the advertisement and information about the product, followed by discussions with the account planner, along with research material, and perhaps a meeting with client put the creative department to work.

Study on the Effect of Advertisement on Consumers The essential skill of the Copywriter lies in interpreting and understanding the mind and needs of the target audience and the characteristics of the product. They must identify what it is that would make people want or need the product being promoted. The Art Director and the Copywriter together then work on an idea that should catch the attention of the public and put the selling point of the product across; many ads are discarded, reincarnated and created. The final product is a team effort of the Copywriter and Art director with each other having suggested alterations to the other. The more successful creations are then shown to the creative director who in turn may suggest further modifications. Final drawings are then produced and shown to the client. Once the client accepts the concept and layout is modified and the details filled in. The design and copy is sent to the production team for typesetting, photographs and drawings for printed advertisements or filming for television commercials. Giants in the copywriting field include David Ogilvy, William Bernbach, Robert W. Bly and Leo Burnett. Many creative artists spent some of their career as copywriters before becoming famous for other things, including Dorothy L. Sayers, Joseph Heller, Terry Gilliam, Salman Rushdie, and Don DeLillo. Creative Department people need following attributes for this back-breaking job. •

A good psychologist.

•

Willing and able to set high standards.

•

An efficient administrator & Research minded

•

Capable of strategic thinking – ‘positioning’ and all that.

•

Equally good at package goods and other kinds of accounts

•

Well versed in graphics and photography

•

A hard worker and fast

•

Slow to quarrel

•

Prepared to share credit for good work, and accept blame for bad work

•

A good presenter & good recruiter

Study on the Effect of Advertisement on Consumers

Creative Process Policy

Study on the Effect of Advertisement on Consumers

Client brief to Group Manager Research Analysis & Evaluation of Brief

Preliminary Strategy note

More information required

Initial Strategy meeting

Revised Strategy note

Creative Brief

Discuss with client

Discussion of initial Concepts with group manager Presentation to Agency Plans Board

Revise

Finalization of concept

Group manager presents concepts to clients

Study on the Effect of Advertisement on Consumers

Finalization of execution

Pre - Testing Digital Studio

Often called the DTP section, this set of people work on the final artworks that are sent to the various publications for release.

DTP Artist DTP Artist is Desk Top Publishing worker, a special name used in Advertising agencies, Publisher, Color separation, Printing and other related industries. A DTP Artist usually skilled in multiple computer design applications, such as QuarkXPress, Adobe Photoshop, Adobe Illustrator, CorelDraw, Adobe InDesign CS, and others. DTP Artist is formerly known as FA Artist (FA: Finishing Artwork), the name changed due to the digital revolution. DTP Artist is a common name used in India, Malaysia, Singapore and other countries. In America, advertising DTP associate is the term frequently used to describe graphic artists working for in-house art departments. American advertising agencies separate the role of graphic artists between art directors and production artists.

Visualizer Visualizer is a position designed by Advertising agencies to assist Art directors, in producing quick & good quality artworks, for presentation (to please the clients). The salary of a Visualizer is very low, usually an average salary of a Visualizer is less than half, or sometimes quarter, of the salary of an Art Director. Visualizer is a special name used in advertising agencies in non-native English speaking countries, Malaysia, Singapore and others.

Study on the Effect of Advertisement on Consumers

Media Department Size and scale of the advertising is not important. What's in the mind is important. The big bucks are not being spent on production, they are being spent on broadcasting. The Media Department of an advertising agency is responsible for the planning and placement of advertising time and space. It is a function that in recent years

has

undergone

considerable

change.

The

proliferation of media forms and the escalating cost of media time have brought a new focus to the Agency Media Department. Media Executives The main task of the media executives is to place the advertisements where they will be seen by the right target audience keeping the budget in the mind. Hence this job requires planning, research and buying space in the press or time for commercial radio and television. In large agencies this task may be allocated to two or three different specialist. There may be a media planners and media buyers. In small agencies the task may be handled by the same person.

FUNCTIONS OF THE MEDIA DEPARTMENT Media Planning The Media Department is responsible for the preparation and the actual presentation of the media plan. This department recommends media and media vehicles that in the agency's opinion best fulfill the client's marketing and advertising objectives. The recommendations are based on a careful assessment of the client's strategic requirements and the subsequent matching against these of the various available media forms. In the process there is great reliance on research and the known strengths and weaknesses of various media. Computer analysis is frequently used to sift through and compare all the media audience data that is available. The final media plan will present a carefully thought out recommendation that delivers the 36

Study on the Effect of Advertisement on Consumers right target group, at the right time, in the right place, with the right number of messages. Media planners have access to up-to-date information about each advertising medium. This includes the relationship and circulation figures for news papers and magazines, viewing figures for different times of the day, listening audience figure for commercial radio stations etc. They are also aware of the various locations for hoarding and billboards. They are a vast array of choice. There are thousands of brands to advertise the work is challenging. It is though the selection of the right media that a good media department can save large advertisers money as well as give credibility. Media Buying Once a media plan has been approved by a client, it must then be purchased. The procedures for this vary according to the medium under consideration. In print media, for example, most purchases are made on the basis of rate cards issued by various newspapers or magazines. In broadcast, however, negotiation is involved. The objective of this negotiation is quite simple - to achieve maximum media efficiencies in obtaining the most for the least, or, in other words, the most audience for the least amount of money. Media buyers buy advertising time/space for the agencyâ&#x20AC;&#x2122;s client. The work closely with the media planer if the two functions are carried out separately. Television and newspaper advertising are expensive. The media buyerâ&#x20AC;&#x2122;s expertise is in the negotiating the best possible deal for the client. The commercial breaks with the most viewers are the most expensive and so also the newspapers and magazines with the Media Estimating Every single purchase made by the Media Buyer must be recorded in advance of the actual running of the advertisement. This is to enable the agency to bill the client for monies spent on their behalf and to check the invoices submitted by the media. This document is called an estimate.

Study on the Effect of Advertisement on Consumers

Marketing Research Department Marketing research is three things: 1. The identification of information needs (i.e. defining the problem) 2. The systematic gathering, recording, analyzing and interpreting of data about problems relating to the marketing of goods and services (i.e. providing a solution to the problem) 3. The analysis and evaluation of action taken on the basis of information (i.e. monitoring and modifying the initial solution).

The single most important reason then for doing marketing research is to guide the marketer in the analysis, planning, implementation and control of marketing and communications programs to satisfy both customer needs and organizational goals. It does this by providing decision-makers with information necessary to choose between alternative courses of action. While marketing research information can never eliminate all risk from decision making, good research can and should substantially reduce the odds of failure. In short, the essence of marketing research is "problem-solving".

Study on the Effect of Advertisement on Consumers

Creative Services Department The creative services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. For example, they will be able to advise upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the press), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can. In small agencies, employees may do both creative and account service work. Larger agencies attract people who specialize in one or the other, and indeed include a number of people in specialized positions: production work, [Internet] advertising, or research, for example.

Event Management and Promotion department These are marketing support services which coordinate with external suppliers and use internal resources to implement the client's plans. The work here is coordination,

with

specific

responsibilities

being

specialized.

Event

management, an industry that is just taking off in India, plans, organizes and executes live events, which could include a brand/product launch, an exhibition, a concert or even a conference.

Traffic Manager (system administrator) An often forgotten, but still important, department within an advertising agency is traffic. Typically headed by a traffic manager, this department is responsible for a number of things. First and foremost is increasing agency efficiency and profitability through the reduction of false job starts, inappropriate job initiation, incomplete information sharing, over- and under-cost estimation, and the need for media extensions.

In small agencies without a dedicated traffic manager, one

employee may be responsible for managing workflow, gathering cost estimates and answering the phone, for example. Large agencies may have a traffic department of ten or more employees.

Study on the Effect of Advertisement on Consumers

Radio & TV Broadcast Production Department The Broadcast Production department is responsible for making television and radio commercials to be aired across the country. Each project is different and the job demands both creative and administrative ability. The most successful people in Broadcast Production have strong aptitudes in both creative and administrative areas. This means that they should be active in creative spheres. They must also have a very high organizational ability as there are a myriad of details to attend to in any production. There are two basic classifications of jobs in Broadcast Production: â&#x20AC;˘

Producer

â&#x20AC;˘

Production Co-ordinator and/or Traffic Co-ordinator

The production team's main function is to purchase the services of the correct film or videotape Production Company and to administer and produce the TV commercial production on behalf of the advertising agency and the client. The Producer The Producer is responsible for supervising all aspects of a TV commercial production, from the selection of the production company through budgeting, scheduling, casting, locations, sets, music creation, production meetings, filming, editing, sound mixing, to the final approval of the finished commercial. This means that the Producer must be completely familiar with all aspects of the film and videotape process, including animation, live action, and stop motion. Production Co-ordinator The function of the Production Co-ordinator is to work with one or more Producers, providing administrative and creative support in such fields as budgeting, scheduling, producing production books, and auditioning talent. A Co-ordinator very often will handle revisions and adaptations of TV commercials with the production company. They may also have experience in Broadcast Traffic learning other rules on talent or how to "traffic" a complex television schedule.

Study on the Effect of Advertisement on Consumers

Print Production Department Print Production, more than any other agency department, relies on graphic art technology to help give birth to an ad. If there are to be no complications in the ad's delivery to the printed page, then strict technical rules must be followed. Of course, rules were made for valid reasons. An ad must obey that magazine's exact size and film requirements. To defy those specifications, even slightly, would make it incorrect and therefore not publishable. What Print Production People Do? Print production people: •

Meet deadlines. Publications insist on strict deadlines and it's crucial that production pay strict heed to them.

•

Use sophisticated technology. To ensure that those deadlines are met, the Production Manager must possess a solid working knowledge of the latest graphic art technology. As technology changes it is now imperative to be computer literate and understand their function.

•

Co-ordinate and manage. The Print Production department's job is to ensure that print advertising is reproduced correctly whether in colour or in black and white. This means exact attention to detail and it is up to the Production Manager to provide the specifications to suppliers.

•

Skills and training. What are the skills necessary to make it in Production? Technical art expertise and a willingness to keep abreast of new developments; an aesthetic feeling for some of the craftsmanship involved in the graphic arts; accounting and math skills; and a sharp eye for detail. Computer literacy and an understanding of systems is another necessary skill. Production skills aren't something that can be bought, nor are they something that can be learned overnight. It takes a few hard years of training under the wing of an experienced Production Manager.

Study on the Effect of Advertisement on Consumers

Agency Personnel Production Team Ad agencies may have their production team which includes Photographers, Printers, Typesetters, Television Producers, etc. but since the work is very diverse most ad agencies coordinate with freelancers or established production units for task to be completed. Production workers are concerned with all the technical process of turning the final copy and art work into a real ad for print, TV, radio.

Storyboard artist Storyboard artist is a profession specialize in creating storyboards for advertising agencies and film productions. A storyboard artist is able to visualize any stories using quick sketches on paper at any moment. Quick pencil drawings and marker renderings are two most common traditional techniques, nowadays Flash, Photoshop and other storyboard applications are gradually taking over, digital camera is one of the latest techniques in creating storyboards. Storyboard artist is also known as illustrator or visualizer, they are mostly freelance. Art directors or film directors are the most likely type of peoples that would contact storyboard artists and the deadline is always tight, overnight working is very common. Most used storyboard applications are the Corel Painter and the Adobe Photoshop, some storyboard artists nowadays begin and finish their work on computers using drawing software and digital pencils like Wacom (Graphics tablet), in this way they save effort and most important time which always has the first periority for a storyboard.

Study on the Effect of Advertisement on Consumers

Graphic designer Graphic

design

form

visual

communication using text and/or images to present information, or promote a message. The art of graphic design embraces a range of cognitive skills and crafts including typography, image development and page layout. Graphic design is applied in communication design and fine art. Like other forms of communication, graphic design often refers to both the process (designing) by which the communication is created, and the products (designs) such as creative solutions, imagery and multimedia compositions. Graphic design is traditionally applied to static media, such as books, magazines and brochures. Additionally, since the advent of computers, graphic design is utilized in electronic media - often referred to as interactive design, or multimedia design. There are varying degrees of graphic design. Graphic designer involvement may range from verbally communicated ideas, to visual rough drafts, to final production. In commercial art, client edits, technical preparation and mass production are usually required, but usually not considered to be within the scope of graphic design unless the client is also a graphic designer. Although the term 'graphic designer' was first coined in the 20th century, the story of graphic design spans the history of marks of humankind from the magic of the caves of Lascaux to the dazzling neons of Ginza. After all, they share the same elements, theories, principles, practices and languages, and sometimes the same benefactor or client. In advertising art the ultimate objective is the sale of goods and services. In graphic design, "the essence is to give order to information, form to ideas, expression and feeling to artifacts that document human experience. â&#x20AC;?Fine art refers to arts that are 'concerned with beauty'..."

Study on the Effect of Advertisement on Consumers

Advertising interns Advertising interns are typically university juniors and seniors who are genuinely interested in and have an aptitude for advertising. Internships at advertising agencies most commonly fall into one of six areas of expertise: account services, creative, interactive, media, public relations and traffic. An internship program in account services usually involves fundamental work within account management as well as offering exposure to other facets of the agency. The primary responsibility of this position is to assist account managers. Functions of the account management intern may include: â&#x20AC;˘

Research and analysis: Gathering information regarding industry, competition, customer product or service; as well as presenting findings in verbal/written form with recommendations

â&#x20AC;˘

Involvement in internal meetings and, when appropriate, client meetings

â&#x20AC;˘

Assisting account services in the management of creative projects Interns often take part in the internal creative process, as is illustrated in this

agency intern website, where these interns were charged with creating and managing a website as well as developing an advertising campaign. Hands on projects such as this one help interns learn how strategy and well-developed marketing is essential to a sound advertising and communications plan. During their internship, the intern will experience the development of an ad, brochure and broadcast or communications project from beginning to end. During the internship, the intern should be exposed to as much as possible within the agency and advertising process.

Study on the Effect of Advertisement on Consumers

Job Positions and Earnings Job positions and earning in an agency vary with its size and turnover. Accredited agencies have a large set up while small agencies may have just a few workers. Job positions and earnings given here may be considered as of a fairly good agency.

General Manager

Rs. 30000-35000 plus house, car, incentives

Creative Director

Rs. 25000-30000 plus house, car

Associate Creative Director

Rs. 10000-15000 plus house, car

Copy Chief

Rs. 10000-15000 plus house and perks

Copywriter

Rs. 8000-10000 plus perks

Junior Copywriter

Rs. 2500-5000 plus perks

Copy training

Rs. 1500-2500

Art Director

Rs. 10000-15000 plus house, perks

Junior Visualizes

Rs. 4000-8000

Finishing artist

Rs. 3000-4000

Account Director

Rs. 20000 plus house, perks car

Account Supervisor

Rs. 8000-12000 plus car

Account executives

Rs. 5000-8000

Account Executives Trainee

Rs. 2000-2500

Media Manager

Rs. 8000-10000

Traffic Manager

Rs. 5000-8000

Print Production Manager

Rs. 7000-12000

Study on the Effect of Advertisement on Consumers

Agency Compensation Commission and fees methods The revenue of advertising agency is derived from commission and fees. It has been customary for full service agencies to charge a commission of 15% on total billings for their services, plus reimbursement for advertising production costs. The 15% commission comes form the media in which a client firmâ&#x20AC;&#x2122;s advertising is placed rather then from the firm. An advertiser is billed by its agency for the full cost of advertising space used in the media. Then, the media bill the agency for the full cost of space less a commission of 15% (any early payment discount is passed back to the client). The agencyâ&#x20AC;&#x2122;s revenue then is primarily the difference between what it bills clients and what it pays to media. In fact the media are paying the agency a 15% commission through a reduction in its billing to the agency. Moreover, this 15% commission must cover most expenses of operating the agency, so that a client is actually paying for the full service offering. Creative Boutiques on the other hand, charge a fee, rather than a commission, for services rendered. The movement toward a fee system will change the agencyclient relationship to the advantage of the client; for advertisers will be better able to buy only those services that they need from agencies. For many years, there has been considerable dissatisfaction with the straight commission system. The profits of the agencies declined because they were forced by competition to perform more and more services without additional compensation. Large advertisers, who bought much media time and space, felt that they were paying too much. The agencies received the same compensation, whether they placed extra expenses of creating ten different magazines or had the extra expense of creating ten ads. Today, there is a definite trend toward the use of the fee method, or a combination of the commission and fee methods, although the straight commission method is still probably the most widely used.

Study on the Effect of Advertisement on Consumers

Impact of technology on advertising In the mid 1980s, the arrival of desktop publishing and the introduction of software applications introduced a generation of designers to computer image manipulation and 3D image creation that had previously been unachievable. Computer graphic design enabled designers to instantly see the effects of layout or typography changes without using any ink in the process. Computers are now considered to be an indispensable tool used in the advertising and graphic design industry. Computers and software applications are generally seen, by creative professionals, as more effective production tools than the traditional methods. Computers may or may not enhance the creative process of graphic design, depending on which process best stimulates the creativity of the designer. Rapid production from the computer allows many designers to explore multiple ideas quickly with more detail than what could be achieved by traditional hand-rendering or paste-up on paper, moving the designer through the creative process more quickly. New ideas may come in the form of exploring software features that would not have been considered without the software. However, some professional designers may explore ideas on paper to avoid creating within the limits of the computer configuration, enabling them to think outside the box; the box being the computer. Some creative graphic design ideas are initiated and developed to near completion in the mind, before either traditional methods or the computer is used. A graphic designer may also use sketches to explore multiple or complex ideas quickly without the potential distractions of technical difficulties from software malfunctions or software learning. Hand rendered comps may be used to get approval of a graphic design idea before investing what would be too much time to produce on a computer if rejected. Thumbnail sketches or rough drafts on paper may then be used to rapidly refine and produce the idea on the computer in a hybrid process. The traditional-design/computer-production hybrid process may be used for freeing ones creativity in page layout or image development as well. Traditional graphic designers may employ computer-savvy production artists to produce their ideas from sketches, without needing to learn the computer skills themselves.

Study on the Effect of Advertisement on Consumers The use of computers in design is sometimes referred to as CAD (computer aided design), the same abbreviation of computer aided drafting and a homophone of the acronym Computer Aided Design & Drafting (CADD) which is the use of computers in engineering designs for mechanical products and associated with computer aided production of these products known as CAM (Computer Aided Manufacturing). This makes no distinction between graphic design and technical drawing. Due to this common misunderstanding, CAD is rarely used to describe computer use in graphic design. The more common term used to describe computer use in graphic design is DTP (desktop publishing). However, DTP is often oversimplified to the narrower scope of graphic design known as page layout and publishing technology.

Common software used by ad agency Most common SOFTWARES used by advertising agency are listed below. •

Adobe Photoshop

•

QuarkXPress

•

Autodesk Maya

•

Abode Flash

•

Corel DRAW

•

Computer-aided design (CAD)

•

Adobe Premiere

•

Adobe Illustrator

•

Adobe After Effects

Study on the Effect of Advertisement on Consumers

Adobe Photoshop Adobe Photoshop, or simply Photoshop, is a graphics editor developed and published by Adobe Systems. It is the current market leader for commercial bitmap and image manipulation, and, in addition to Adobe Acrobat, is one of the best-known pieces of software produced by Adobe Systems. It is considered the industry standard in most jobs related to the use of visual elements. Photoshop is available for Microsoft Windows, Mac OS X, and Mac OS; versions up to Photoshop 9.0 can also be used with other operating systems such as Linux using software such as CrossOver Office. Photoshop also has strong ties with other Adobe software for media editing, animation and authoring. Files in Photoshop's native format, .PSD, can be exported to and from Adobe ImageReady, Adobe Illustrator, Adobe Premiere, After Effects and Adobe Encore DVD to make professional standard DVDs, provide non-linear editing and special effects services such as backgrounds, textures and so on for television, film and the Web.

QuarkXPress QuarkXPress is a page layout application for Mac OS X and Windows, produced by Quark, Inc..Quark can be seen as one of the founders of Desktop Publishing (beside Adobe Systems and Apple Computer). The first version of QuarkXPress was released in 1987. QuarkXPress early on incorporated an innovative application programming interface called XTensions which allows third-party developers to create custom addon features to the desktop application. Introduced in 1989, Xtensions, along with Apple Computer's Hypercard, were the first examples of a developer allowing others to create software add-ons for their application. Beside QuarkXPress, Quark Inc.'s other notable product is "QuarkXPress Passport", which is QuarkXPress with the added ability to use multiple language UI, hyphenation and spell-checking. Although similar to desktop publishing applications for the home and small office market such as Adobe PageMaker, Microsoft Publisher, 49

Study on the Effect of Advertisement on Consumers QuarkXPress is seen as one of only two page layout applications for the professional market, the other being Adobe InDesign.

Autodesk Maya Maya, used in many films today, is named for the Sanskrit word meaning illusion and is a popular, proprietary integrated 3D software suite, evolved from Alias PowerAnimator. Maya was developed by Alias. Autodesk acquired Alias in October 2005. It is often used in the film and TV industry, as well as for computer and video games. Maya is a high-end 3D computer graphics and 3D modelling software package, originally by Alias Systems Corporation but now owned by Autodesk under its Media and Entertainment division. Autodesk acquired the software in October 2005 upon purchasing Alias. It is often used in the advertising, film and TV industry, as well as for computer and video games. This was used for numerous films, such as Jurassic Park, The Abyss and Terminator 2: Judgment Day. Maya has also been used to animate popular shows. Maya is used for

modeling the

chracter or any product, animation, rendering and

Object made in Maya

scripting.The latest version of Maya, version 8.0, was released in August 2006.

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Adobe Flash Adobe Flash (formerly Macromedia Flash and before that FutureSplash Animator), or simply Flash, refers to both the Adobe Flash Player and to a multimedia authoring program used to create content for the Adobe Engagement Platform (such as web applications, games and movies). The Flash Player, developed and distributed by Adobe Systems (which bought Macromedia in 2005), is a client application available in most dominant web browsers. It features support for vector and raster graphics, a scripting language called ActionScript and bi-directional streaming of audio and video. Strictly speaking, Adobe Flash is an integrated development environment (IDE) while Flash Player is a virtual machine used to run, or parse, the Flash files, but in contemporary colloquial terms "Flash" can refer to the authoring environment, the player or the application files. Since its introduction in 1996, Flash technology has become a popular method for adding animation and interactivity to web pages; several software products, systems, and devices are able to create or display Flash. Flash is commonly used to create animation, advertisements, various web-page components, to integrate video into web pages, and more recently, to develop rich Internet applications. The Flash files, traditionally called "Flash movies", have a .swf file extension and may be an object of a web page, strictly "played" in a standalone Flash Player, or incorporated into a Projector, a self-executing Flash movie. The creative shown above is the flash animated ad of CITYBANK put on across various websites like google, yahoo, msn, rediff etc.

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CorelDRAW CorelDRAW is a vector graphics editor developed and marketed by Corel Corporation of Ottawa, Canada. It is also the name of Corel's Graphics Suite. Its latest version, named X3 (actually version 13), was released in January 2006. The current version is X3 (actually version 13), released in January 2006. Its new features include -- Double click Crop tool (the first one able to crop groups of vectors and bitmap images), Smart fill tool, Chamfer/Fillet/Scallop/Emboss tool, Image Adjustment Lab. Trace became integrated inside Draw under the name PowerTRACE. CorelDRAW differentiates itself from its competitors in a number of ways. The first is its positioning as a graphics suite, rather than just a vector graphics program. Second, the package consistently includes a large collection of fonts and clip art. The biggest improvement with CorelDRAW over other graphic software programs is its ability to edit bitmaps. A full range of editing tools allow the user to adjust contrast, color balance, change the format from RGB to CMYK, add special effects such as Vignettes and special borders to bitmaps. Bitmaps can also be edited more extensively using Corel PhotoPaint, opening the bitmap directly from CorelDRAW and returning to the program after saving. CorelDRAW's chief competitor is Adobe Illustrator.

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Computer-aided design (CAD) CAD is used to design, develop and optimize products, which can be goods used by end consumers or intermediate goods used in other products. CAD is also extensively used in the design of tools and machinery used in the manufacture of components. CAD is also used in the drafting and design of all types of buildings, from small residential types (houses) to the largest commercial and industrial structures (hospitals and factories). CAD is mainly used for detailed engineering of 3D models and/or 2D drawings of physical components, but it is also used throughout the engineering process from conceptual design and layout of products, through strength and dynamic analysis of assemblies to definition of manufacturing methods of components. CAD has become an especially important technology with benefits, such as lower product development costs and a greatly shortened design cycle, because CAD enables designers to layout and develop their work on screen, print it out and save it for future editing, saving a lot of time on their drawings.

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Famous advertising agencies in world •

BBH (Bartle, Bogle & Hegarty) -- famous for Audi, Levi's, Johnnie Walker, British Airways.

•

Crispin Porter + Bogusky --famous for Subservient Chicken, works with Burger King, Virgin Atlantic Airways, Volkswagen

•

Wieden + Kennedy -- famous for remaining an independent agency; as well as Nike "Just Do It", ESPN "This Is Sports center", Coke, EA, Starbucks, ESPN, Honda UK.

•

JWT (formerly J. Walter. Thompson) -- works with Kelloggs, Unilever, Diageo.

•

Leo Burnett -- works with Procter & Gamble, Kelloggs, McDonald's, Marlboro, Hallmark, Heinz. Famous for creating characters such as Tony the Tiger, Snap Crackle & Pop, the Jolly Green Giant, the Marlboro Man, and Charlie the Tuna.

•

The Martin Agency -- UPS, GEICO, NASCAR, Miller (Lite, MGD), Hanes, and others

•

N.W. Ayer & Son -- the first ad agency in the United States, coined "When it rains it pours" (Morton Salt), "A diamond is forever" (De Beers), "Reach out and touch someone" (AT&T), "Be all you can be" (United States Army), and others

•

Ogilvy & Mather -- famous for the Rolls-Royce print ad with the headline "At 60 miles an hour the loudest noise in this new Rolls-Royce comes from the electric clock", among other ads

•

Saatchi and Saatchi -- most famous for working with the Conservative Party especially during the 1979 general election (Maurice and Charles Saatchi later left and set-up M&C Saatchi)

•

TBWA\Chiat\Day -- works with Apple Computer (including the "Think Different" campaign), adidas, and Sony Playstation. Responsible for creating the fcuk brand and (in the UK) Wonderbra advertising.

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Ogilvy & Mather India Address Trade Centre, Third Floor, Senapati Bapat Marg, Lower Parel, Mumbai 400 013 Tel: (0091 22) 491 3877, 44360360 Fax: (0091 22) 491 3838,, 44344370 Capitalised billings

: Rs 7425.78 million

Television billings

: 1852.73 million

Overview Founded in 1928, we were the first advertising agency in India. 76 years hence, we continue to relentlessly pursue our passion for building and nurturing, enduring brands. Over the years we have helped create some of India's most successful brands like Asian Paints, Cadbury, Fevicol among them, and in recent times- Perfetti, Hutch, Close Up and many more. A power brand in itself, Ogilvy & Mather is acknowledged as the leading communications agency in the country today. Our defining quality is our firm belief in the value of brands and the important role they play in consumers' lives. The business of building brands is conducted through a proprietary way of thinking and working; what we call 360 Degree Brand Stewardship. As pioneers of integrated communication initiatives in the country, we consistently deliver on our overall promise of 360 Degree Stewardship through our business units that encompass Ogilvy & Mather Advertising, OgilvyOne, Ogilvy Activation and Ogilvy Public Relations. One hallmark of Ogilvy's brand-building capability is the balance of global and local brands. Our local clients keep us in tune with local market nuances, which is integral to the success of our multinational accounts.

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Network We are part of Ogilvy & Mather Worldwide, one of the largest marketing communication networks in the world. The network services more Fortune Global 500 companies in five or more countries than any other agency. As Brand Stewards, we combine local know-how with a worldwide network, to leverage the brands of our multinational clients. We create powerful campaigns that address local market needs while reinforcing the same universal brand identity. The hallmark of our brand-building capabilities is our balance of global and local brands. Our local clients keep us in tune with local market nuances, which is critical for the success of our multinational accounts. Ogilvy is a part of the WPP group, one of the world's leading communications services groups. Major brands include J. Walter Thompson, Ogilvy & Mather, Young & Rubicam, MindShare, Mediaedge:cia, Millward Brown, OgilvyOne, Wunderman, Hill & Knowlton, Ogilvy Public Relations, BursonMarsteller, Grey Global Group, Cohn & Wolfe, CommonHealth, Enterprise IG and Landor, among others. Their specialist skills include advertising, media investment management, information, insight & consultancy, public relations & public affairs, branding & identity, healthcare, communications, direct, promotion & relationship marketing and specialist communications.

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Key people Piyush Pandey Executive Chairman & National Creative Director India & South Asia S. N. Rane Co-executive Chariman & COO India & South Asia Pratap Bose CEO Ogilvy & Mather, India Managing Director South Asia, Kinetic President – Ogilvy Activation

Services offered •

Television promotion

•

Print ad

•

Websites & Web banners

•

Email marketing

•

Public relation

•

Radio

•

Direct marketing

•

Promotion

•

Telemarketing

•

Outdoor

•

Packaging

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Major Clients •

IDBI Mutual Fund (Mutual fund);

•

SBI Mutual Fund(Mutual Fund);

•

TTK Textiles (Tantex/Textile);

•

J K Tyres (Tyres);

•

Pantaloon Fashion India Ltd. (Garments);

•

Levers,

•

Asian Paints,

•

Cadbury,

•

Pidilite Industries Ltd. (Fevicol)

•

Louis Philippe (corporate);

•

UTI (MIP'97/Financial);

•

TVS Suzuki (corporate):

•

Tata Telservices (corporate),

•

Tata Communications Ltd (corporate);

•

Hindustan Lever Ltd (Brooke Bond, Lipton - tea and health);

•

Discovery Channel Inc (Discovery Channel - television channel);

•

ITC Ltd (corporate);

•

MIRC Electronics Ltd (Onida - television);

•

The Chase Manhattan Bank (corporate);

•

Birla 3M Ltd (Scotch Brite - cleaning aid);

•

J M Morgan Stanley (J M Morgan Stanley - investment bank);

•

Hero Honda Motors Ltd (bikes);

•

United Television (television media);

•

Castrol India Ltd (Castrol - lubricants);

•

Hutchison Max Telecom Ltd (Max Touch - cellular operator);

•

TELCO (Tata Safari, Sierra, Sumo - sports utility vehicle)

Study on the Effect of Advertisement on Consumers

Indian ad legends Every country has its own legends in a given field. The Indian advertising industry has many all times greats who have contributed in various capacities to develop world-class creatives. This section in magindia.com is exclusively dedicated to those people who have made Indian brands popular not just in India but beyond, through their creative genius. Run through the entries (arranged alphabetically) in this section to view and admire their work, and definitely everyone in the advertising industry will have something to learn from these Ad Legends. Everybody knows A G Krishnamurthy as the Captain who steered his agency from a Rs. 35 lakh company to a Rs. 7 billion corporation in a remarkably short 23 years. But little is known of his considerable contribution in the agency’s creative reputation - doubling up as copywriter/art director and quite often even as creative A G Krishnamurthy Ex Chairman & Managing Director Mudra Communications

director. Here is a sampling of AG Krishnamurthy’s own award-winning (The President of India’s 14 awards included!) ‘Portfolio’. From his palette of skills, Brendan Pereira has been imparting knowledge to a wide audience over his 40 years in the business of art, advertising design and communications.

Brendan Pereira Chairman & Creative Director Nova Advt. Palace Pvt. Ltd. 207 B- Neelam Centre S K Ahire Marg, Mumbai 25 Ph. 91-22-4953405

His work with agencies in London and a stint as Brand Manager at Beecham's International, London, for a range of consumer products, created a firm base for the task of leading Aiyars Advertising in Bombay as Creative Director, and one of the first in the industry to be elected to the Board in that capacity. As Deputy Managing and Creative Director, he was one of the major shareholders who founded Chaitra Advertising, and led it on to produce some of the outstanding work of that era. He published his first book "Changing Faces" in 1999.

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Elsie Nanji began her career in advertising 20 years ago. Since then she has been with O&M, Lintas, Enterprise and Ambience. Over the years, Elsie has amassed many awards, Elsie Nanji Executive Creative Director Ambience D'Arcy Advertising 401-E,Neelam Centre, 'A' Wing, S.K. Ahire Marg, Worli, Mumbai-400025. Ph. 91-22-4962898

including an international award at the London International award and the art director of the year award in India for three consecutive years. She was selected as the first jury member at the Asia Pacific Adfest in Chiangmai, Thailand in 1997. Freddy Birdy began his career around ten years ago at Enterprise. Has since worked in Rediffusion, Trikaya and Mudra. He is the only Indian Copywriter to win the coveted Copywriter of the Year award a record ten times.

Freddy Birdy Creative Consultant

Has worked on campaigns for Thums Up, Vimal, Rasna, Lakme, Polo, Bata, Samsung, Yves St. Laurent, Mitsubishi Lancer and Sil jams. Loves travelling and good food, as is evident from his ample waistline. Gopi Kukde obtained his Commercial Art Diploma in I Class from J.J. Institute and the Gold medal for his campaign for the film Meera, by Gulzar. After working for a decade with leading ad agencies like Chaitra, Clarion and Everest, he with two others founded Advertising Avenues in 1982.

Gopi Kukde

His creative brilliance is on show in the campaigns of

26B, Tapovan Green Street

Asian Paints, Glaxo, Stanrose Fabrics, Centaur Hotel,

Santacruz (W), Mumbai - 400 054 Ph. (O) 266 0190 (R) 649 4376

Hawkins pressure cooker to name just a few. At Avenues, he got to work on UFO Jeans, Skypak Couriers, Paan Pasand and Onida. Gopi has won several CAG & Ad Club awards in appreciation of his creative talent.

With more than 36 years in advertising and with most of

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his time at Hindustan Thompson, Ivan Arthur has been the brain behind many award-winning advertisements. Be it for Air India, Sunsilk, Clinic, Hamdard, Bombay Dyeing, Handyplast, Readers Digest, and Haryana Breweries, Philips or others. Ivan Arthur

Deservedly inducted into CAG Hall of Fame, Ivan

Executive Vice-President &

Arthur has been part of a 10-member international task

National Creative Director,

force that designed and launched JWT's Total Branding

Hindustan Thompson Associates Lakshmi Building, Sir P M Raod Mumbai 400 001 Ph. 91-79-2660190 Extn. 328 Fax: 266 0 186 E-mail: ivan.arthur@jwt.com

Protocol that is now being used internationally. A faculty member of a number of JWT international training programmes, Ivan has also addressed a number of national and international advertising groups including the Philippine Advertising Congress held in Subic Bay, Cairo and all the Advertising Clubs in India. He has also written a few books including a book on Bombay, a biography of Goa's industrialist - Mr PJ Menezes -entitled Once More Upon a Time and the Official Souvenir of Pope John Paul II's visit to India. Naved Akhtar began his career around twelve years ago. Has since worked in Clarion, McCann, Trikaya and Mudra. Has won the Art Director of the Year Award three times. Has worked on campaigns for Nescafe, Milkmaid, DCM

Naved Akhtar Creative Consultant

Toyta, Gillete, Dunlop, Vimal, Rasna, Polo, Bata, Samsung, Yves St. Laurent, Mitsubishi Lancer and Otis. Is reputedly the coolest natured person in Indian Advertising Panna Jain's impressive itinerary includes working with Ogilvy & Mather in London, with Everest Advertising as an Art Director and with MCM as creative Director. Then followed a phase of Creative Consulting with some of India's leading advertising agencies, including Contract, Enterprise, Trikaya, Lintas and FCB-Ulka.

Panna Jain

Recipient of the Harold Nelson Prize by the London

Creative Consultant

Study on the Effect of Advertisement on Consumers 122-A Jolly Marker Apts No.1 Cuffe Parade,Mumbai 05 Ph. 91-22-2181059

Country Council, the Air India Trophy and Campaign of the year Award jointly given by the Ad Club, CAG and RAPA among several others, Panna has one of his photographs included in the permanent collection of the Museum of Modern Art, New York, to his credit. At present, he is working on the final draft of a book on advertising creativity. With 20 years of experience, Dheer, the doyen of corporate design (identity programmes, communication projects, literature, packaging and Signage Systems), established Graphic Communication Concepts, his own design workshop, in 1974.

Sudarshan Dheer Graphic Designer 10,Sind Chambers, S. Bhagatsingh Road, Colaba,Mumbai-400 005 Ph. 91-22-2840206

Winner of several awards, his work has been exhibited and published at various International forums. With impressive Indian and international client list, Dheer is also an excellent orator participating in various seminars in India & abroad.

Most Recent facts & figures about ad agency Source: The Economic Time, Brand Equity, December 27, 2006

Top 10 Ad agencies in India Rank 1 2 3 4 5 6 7 8 9 10

Name of agency O&M McCann-Erickson Lowe Lintas JWT Leo Burnett Mudra Grey Worldwide FCB Ulka Contract Advertising Rediffusion DYR

10 most influential people in advertising No. Name 1 Piyush Pandey 2 Prasoon Joshi 3 Prahlad Kakar 4 R Balakrishnan 5 Madhukar Kamath 6 Sam Balsara 7 John Goodman 8 Prasoon Pandey 9 Arvind Sharma 10 Arun Nanda

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Large vs. Small Agencies A distinction may some times be drawn between ‘large’ and ‘small’ agencies. Jefkins has enumerated possible advantages and disadvantages of large and small agencies. While there can be no sharp dividing line between them, the point made by him may serve as useful guidelines.

Advantages Large Ad Agencies 1. Better professional facilities generally 2. Better studio facilities 3. Market research and media buying facilities 4. Wider contacts and international links 5. Attraction of best brains

Small Ad Agencies 1. Personal touch 2. Speech of production 3. Close-knit team giving individual attention 4. Flexibility 5. Awareness of client’s problems 6. Enthusiasm 7. Greater accessibility because of shorter chain of command

Disadvantages Large Ad Agencies 1. Move impersonal 2. Certain lack of individual attention 3. Failure to appreciate client’s problems sympathetically 4. Risk of client being ‘lost’ in large agency 5. High costs

Small Ad Agencies 1. Lack of the latest and best technical facilities 2. Certain lack of experience in more sophisticated advertising 3. A small agency might tend to be dominated by a large account 4. Fever staff might result in fever ideas

6. Lack of coordination between departments.

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Workforce for ad agency According to the U.S. Department of Labor, Bureau of Labor Statistics, 279,370 people held jobs related to advertising in 2001. Of that number, management occupations totaled nearly 15 percent. Chief executives had a mean annual salary $121,220; general and operations managers, $100,940; market managers, $81,980; sales managers, $92,960; and advertising and promotion managers, $77,960. Art, design, and media-related occupations accounted for 20 percent of all jobs in the industry. Mean annual salary for graphic designers was $45,340; multi-media artists and animators, $47,120; writers, $56,360; public relations specialists, $47,430; and art directors, $70,720. Advertising sales-related jobs totaled 23 percent of the industry's workforce. The mean annual salary of an advertising sales agent was $49,130. Administrative and office support occupations totaled nearly 25 percent, with a mean annual salary of $29,910. Similar to other industries, the field of advertising was traditionally dominated by large, public corporations, many a collection of independent agencies. However, most professionals who worked in the industry were employed at small agencies. In fact, the average firm had only 11 employees, and nearly four out of every five agencies employed fewer than 10 people. Advertising agencies varied greatly in size and scope of activities. Workers in smaller agencies might be responsible for a variety of tasks, while those in larger agencies would find their job duties to be more narrowly defined. The advertising industry was highly competitive in terms of entry. Most entrylevel applicants had earned at least a bachelor's degree, and many had participated in internships or gained some kind of previous advertising work experience. Managers, executives, sales people, and administrative support workers accounted for 9 out of every 10 jobs in the industry.

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Study / Training & Advancement Most entry-level professional and managerial positions in advertising and public relations services require a bachelor’s degree, preferably with broad liberal arts exposure. Once you have been successful in landing a job with an agency, you can expect further extensive and demanding training. Many agencies operate in-house training programs designed to make you a self sufficient, productive, skilled person in that area of the agency's business. Beginners in advertising usually enter the industry in the account management or media department. Occasionally, entry-level positions are available in the market research or creative departments of an agency, but these positions usually require some experience. Completing an advertising-related internship while in school provides an advantage when applying for an entry-level position; in fact, internships are becoming a necessary step to obtaining permanent employment. In addition to an internship, courses in marketing, psychology, accounting, statistics, and creative design can help prepare potential entrants for careers in this field. Assistant account executive positions the entry-level account management occupation in most firms—require a bachelor’s degree in marketing or advertising, although some firms require a master’s degree in business administration. Bachelor’s degrees are not required for entry-level positions in the creative department. Assistant art directors usually need at least a 2-year degree from an art or design school. Although assistant copywriters do not need a degree, obtaining one helps to develop the superior communication skills and abilities required for this job. Assistant media planner or assistant media buyer also are good entry-level positions, but almost always require a bachelor’s degree, preferably with a major in marketing or advertising. Experienced applicants who possess at least a master’s degree usually fill research positions. Often, they have a background in marketing or statistics and years of experience. Requirements for support services and administrative positions depend on the job and vary from firm to firm. Employees in advertising and public relations services should have good people skills, common sense, creativity, communication skills, and problem-solving ability. Foreign language skills have always been important for those wanting to work 65

Study on the Effect of Advertisement on Consumers abroad for domestic firms or to represent foreign firms domestically. New media, such as the Internet, are creating opportunities to market products, but also are increasing the need for additional training for those already employed. Keeping pace with technology is fundamental to success in the industry. In addition, advertisers must keep in tune with the changing values, cultures, and fashions of the Nation. Success in increasingly responsible staff assignments usually leads to advancement to supervisory positions. As workers climb the organizational ladder, broad vision and planning skills become extremely important. Another way to get to the top in this industry is to open oneâ&#x20AC;&#x2122;s own firm. In spite of the difficulty and high failure rate, many find starting their own business to be personally and financially rewarding. Client servicing requires understanding of the marketing strategy. Understanding of human nature and a creative outlook are required. Client servicing is generally handled by post graduates in business managements. The job needs business skills hence graduate from any stream with some training in business administration are generally preferred. Marketing diploma holders work in client servicing. An advertising qualification too is useful. Copywriters and Art Directors give verbal and visual shape to the basic advertising ideas. At entry level a candidates has to give a copy test. Besides evaluating the command over written English, the test is designed to judge the thinking ability of a person. With the rapid use of electronic media, the work of copywriters and visualisers is overlapping. A good copywriter must know more than one language. Hindi copywriting is gaining popularity. Copywriters are people who are selected more for their talent than qualification. The creative people, particularly the visualisers, i.e. Art Director and his team are selected from the Art School or Design Institute. Bachelors of Applied Art course teach the prospective creative artist the use of medium like photography, graphics, and visual communication. Courses in Multimedia and mass communication are also useful.

Media Planners and buyers have to be acquainted with the various mediums, price, etc. Courses in management, advertising, marketing, public relations are useful for this department.

Study on the Effect of Advertisement on Consumers The production people come from Art schools and film and TV training institutions. The field of advertising is open to students who have passed from Art Schools, Management Schools, Design School, and graduates from reputed institutes with a rich co-curricular record and those from advertising courses or mass communication courses. The following section gives courses in advertising. Readers can refers to the relevant courses in the areas mentioned in Chapters on applied Arts, Broadcasting, communications and Photography in this Book.

Courses / Institutions Institution

Courses

Eligibility &selection

Indian Institute of Mass communication JNU Campus, New Delhi 110067

Diploma in Advertising

Graduation written test and interview

Rajendra Prasad Institute of Communication and Management Kulpati K.M. munshi Marg, Mumbai 400007

Diploma in Advertising

Graduation

Bhavans college of communication and management, Mumbai 400007

Diploma in advertising, photography

Graduation

Bharatiya Vidya Bhavan, Mehta sadan, Kasturba Gandhi Marg, New Delhi 110001

Diploma in advertising, photography

Graduation

Vidya Gauri, Neelkanth Marg, Khanpur Ahmedabad

Diploma in marketing, journalism, business

Graduation

School of communication and Management studies, Thevar House, Cochin 682133

Diploma in advertising

Graduation

Sophia BKS Polytechnic Pedder Road, Mumbai 400 026

Diploma in advertising

Graduation

Narsee Monjee Institute of Management studies, VL Mehta Road, Ville Parle, Mumbai

PG Diploma in Advertising and communication

Graduation with 50%

Xavierâ&#x20AC;&#x2122;s Institute of Communication, Mumbai

Diploma in advertising

10+2

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with 60% Wigan & Leigh College, 401-402 Skipper Corner, 88 Nehru Place, New Delhi & Mumbai

Postgraduate Diploma in Advertising and marketing Communication

Graduation

National Institute of Advertising Society for Education And Development of Advertising & Communication (SEDAC) Mohammadpur, New Delhi

2 years PG Diploma in Marketing Communication Management

Graduate in Advertising Test in March

Delhi School of Communication, Vasant Kunj, New Delhi

2 year PG Diploma in advertising

GMAT, or MAT scores

Jamia Millia Is lamia, Jamia Nagar,

1 year PG Diploma in Advertising & Photography

Graduation

1 yr PG Diploma in Advertising & Public Relation

Graduation

2 yr Diploma in Marketing Communications Management

Graduation

New Delhi Guru Jambeswer University, Hissar, Haryana 125001 National Instt. of Advertising, 1 Deen Dayal Upadhayay Marg, New Delhi 110002

Note: • Bhartiya Vidya Bhavan has branches in many towns in the country. They offer a diploma course in advertising and photography for graduates. The institutes are called Bhavan’s College of communication and Management. These are Chandigarh, Cochin, Calcutta, Delhi, Mumbai, Guntur, Hyderabad, Jaipur, Kakinada, Nagpur, and Visakhapattanam. • Professional in service training is imported by Advertising Agencies Association of India (AAAI), Maker Towers, Cuffe Parade, and Mumbai.

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Future Advertising is a growing industry that offers great scope for creative people. Each year new markets open up and communication channels become more sophisticated, reaching out to many more people, through different media. As more and more multinationals are coming to India to capture the unexplored huge consumer market, the demand for advertising professionals is bound to increase. According to an estimate, the Indian advertising agency will need over 6000 trained professionals every year. With the country's vast rural market also becoming the focus of advertising, the industry's turnover is bound to multiply thereby creating a huge demand for 'ad' professionals. With the dawn of the Internet have come many new advertising opportunities. Popup, Flash banner, advergaming, and email advertisements (the last often being a form of spam) abound. Each year, greater sums are paid to obtain a commercial spot during the Super Bowl. Companies attempt to make these commercials sufficiently entertaining that members of the public will actually want to watch them. Particularly since the rise of "entertaining" advertising, some people may like an advert enough that they wish to watch it later or show a friend. In general, the advertising community has not yet made this easy, although some have used the Internet to widely distribute their adverts to anyone wishing to see or hear them. Another significant trend to note for the future of advertising is the growing importance of niche or targeted ads. Also brought about by the Internet and the theory of The Long Tail, advertisers will have an increasing ability to reach narrow audiences. In the past, the most efficient way to deliver a message was to blanket the largest mass market audience possible. However, usage tracking, customer profiles and the growing popularity of niche content brought about by everything from blogs to social networking sites, provides advertisers with audiences that are smaller but much better defined, leading to ads that are more relevant to viewers and more effective for companies marketing products.

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Outlook Competition for many jobs will be keen because the glamour of the advertising and public relations services industry traditionally attracts many more jobseekers than there are job openings. Employment in the industry is projected to grow 22 percent over the 2004â&#x20AC;&#x201C;14 period, compared with 14 percent for all industries combined. New jobs will be created as the economy expands and generates more products and services to advertise. Increased demand for advertising and public relations services also will stem from growth in the number and types of media outlets used to reach consumers, creating opportunities for people skilled in preparing material for presentation on the Internet. On the other hand, employment growth may be tempered by the increased use of more efficient non-print media advertising, such as Internet or radio, which could replace some workers. Employment also may be adversely affected if legislation, aimed at protecting public health and safety, further restricts advertising for specific products such as alcoholic beverages and tobacco. In addition to new jobs created over the 2004-14 period, job openings also will arise as workers transfer to other industries or leave the workforce.

Study on the Effect of Advertisement on Consumers

Myth: An agency always helps to sell a product What does a professional advertising agency have that is unique? With professional talent and loads of communications’ experience under their belts, agencies are perfectly suited to take over their clients’ marketing communications problems and help them with specialized services. But like everything it too has its limitations. Effective advertising can contribute immensely to the success of a product. Similarly, if the product is bad or something that the people cannot accept, then no amount of advertising can save it. Advertising can never succeed in selling something which the public will not accept. If the advertising needs to be successful, the product needs to: •

Solve a purpose

•

Fulfill a need

•

Be satisfactory

•

Have a credible proposition

Study on the Effect of Advertisement on Consumers

Case study1 Client

: Reliance Textile Industries Ltd. (Vimal Suitings)

Ad Agency

: Mudra Communication Pvt. Ltd., Ahmedabad

Marketing Objective The Research and Development department of Reliance Textile innovated a suiting, using imported yarns, which imparted exclusive properties to the fabric – maximum porosity per square centimeter and excellent crease recovery to free the fabric from unwanted wrinkles. The range of colours of pastel shades was subdued and classy. Considering the final product and pricing, it was decided to beam the marketing of the product at the uppermost segments of society, such as directors, chairmen, industrialists, businessmen, in short gentlemen of some standing in society. A prime requirement, however, was that the strategy should not offend other prospective consumers by excluding them completely. Rather, this suiting had to be promoted as a very sophisticated, exclusive suiting.

Creative strategy To reach the primary target audience the personnel selected to be featured in the advertising campaign were four gentlemen who were well known by the position they held in prestigious or organizations by virtue of their business interests. Since the brand name, Herr Mode, was adapted from the German and stood for “fashion for the gentlemen”, this was used as the copy platform and read as follows: Herr Mode: In German it stands for fashion for the gentleman. In India it stands for the finest suiting for gentleman. To include other consumers as well, the same theme “finest suiting for gentleman” was retained.

Study on the Effect of Advertisement on Consumers

Media Strategy Colour advertisements were scheduled in selected prestigious general interest magazines all over the country. To achieve the specific marketing objective of reaching the primary target audience, a few business journals, and journals read by top level personnel, were also used as a primary medium. To cover other â&#x20AC;&#x2DC;aspiringâ&#x20AC;&#x2122; consumers, the colour advertisements were adapted to black and white formats and scheduled in all major newspapers of the country. Posters and other point of sale material were distributed to retailers stocking Herr Mode suiting all over the country.

Study on the Effect of Advertisement on Consumers

Case study 2 Agency: Ogilvy & Mather Client: Asian Paints

O&M building brands of Asian Paints Albert Einstein said “Everything should be made as simple as possible, but not simpler.” And so it is with brands! As many of them try to make things simpler, they only end up complicating the core message. Some, however, continue talking to their consumers in the same language for decades on end, and with great aplomb. For well over six decades, images of Gattu (the Asian Paints mascot developed by R.K. Laxman) remains imprinted in the psyche of Indian consumers. But when gattu gave his place to Sunil Babu in 2002, Asian Paints arguably unleashed a whole new exciting industry in the country, converting it into a more thrilling propostion. The year 2006 saw Asian paints came out with its ‘Chhote Nawab’ campaign, which once again created magic with brand’s patrons and explored virtually every territory, from sublet absurdity to fond emotions. Abhijit Avasthi, Group Creative Director, Ogilvy & Mather has been working on Asian Paints brand proposition for a long time and asserts his familiarity with the tone and manners of their communications. ‘while the corporate communication (har ghar kch kehta hai) of Asian Paints is emotional in its appeal, the work on Apex Exterior has always been product-centric and humorous in the manner of ‘Wah Sunil Babu, Badhiya hai’ and the ‘Chhote Nawab’ Campaign.” Chhote Nawab followed the phenomenal successs of the Sunil babu campaign and the quirky element in the commercial did woneders, both for the product and the message. The emphasis was on array of eye-catching colours and it even packed enough punch to attract the youth. In the later half of the year, this paint brand came up with yet another characteristics commercial, which told the story of how two kids cajole their grandmother to buy chocolates by linking it to their favourite wall colour. Someone once said ‘angels can fly because they take themselves lightly; devils fall because of their gravity’, and this 64 year old paint veteran certainly seems to have understood this light & racy path to success! “Badhiya Hai”!

Study on the Effect of Advertisement on Consumers

Some of the most famous Ads made by Ogilvy & Mather for Asian Paints

Asian Paints mascot Gattu

Wah Sunil Babu, Badhiya hai’

Dil se sune toh har rang kuch kehta hai

"Chhodiye yeh ajeeb bahaane aur Asian Paints se bahari deewaron ko sajaaiye. Bas ek baar aur saalon ki chhuti”

"Somethings in life need a Royale Wall."

"Tractor Emulsion, yeh bas dikta mehenga hai. Aam distemper se daid guna zyada phele, de kam dam mein plastic paint ki shaan."

"Royale. Luxury Emulsions”

Study on the Effect of Advertisement on Consumers

Advertising Creative Some of the most successful advertisement creative produced by various ad agencies in India are shown below.

Study on the Effect of Advertisement on Consumers

Effect of Advertisement on Consumers INTRODUCTION It has been wrongly assumed that the advertising function is of recent origin. Evidences suggest that the Romans practiced advertising; but the earliest indication of its use in this country dates back to the middle Ages, when the use of the surname indicated a manâ&#x20AC;&#x2122;s occupation. The next stage in the evolution of advertising was the use of signs as a visual expression of the tradesmanâ&#x20AC;&#x2122;s function and a means of locating the source of goods. This method is still in common use. The seller in primitive times relied upon his loud voice to attract attention and inform consumers of the availability of his services. If there were many competitors, he relied upon his own personal magnetism to attract attention to his merchandise. Often it became necessary for him to resort to persuasion to pinpoint the advantages of his products. Thus, the seller was doing the complete promotion job himself. Development of retail stores, made the traders to be more concerned about attracting business. Informing customers of the availability of supplies was highly important. Some types of outside promotion were necessary. Signs on stores and in prominent places around the city and notices in printed matters were sometimes used. When customers were finally attracted to the store and satisfied with the service at least once, they were still subjected to competitive influences; therefore, the merchantâ&#x20AC;&#x2122;s signs and advertisements reminded customers of the continuing availability of his services. Sometimes traders would talk to present and former customers in the streets, or join social organizations in order to have continuing contacts with present and potential customers. As the markets grew larger and the number of customers increased, the importance of attracting them also grew. Increasing reliance was placed on advertising methods of informing about the availability of the products. These advertising methods were more economical in reaching large numbers of consumers. While these advertising methods were useful for informing and reminding and reminding, they could not do the whole promotional job. They were used only to

Study on the Effect of Advertisement on Consumers reach each consumer personally. The merchant still used personal persuasion once the customers were attracted to his store. The invention of hand press increased the potentialities of advertising. By Shakespeare’s times, posters had made their appearance, and assumed the function of fostering demand for existing products. Another important event was the emergence of the pamphlet as an advertising medium. The early examples of these pamphlets disclose their sponsorship by companies want to generate goodwill for their activities. The low cost of posters and handbills encouraged a number of publishers to experiment with other methods.

RESEARCH OBECTIVES



To study types of advertisements.



To study effectiveness of advertisements i.e. on sales, profitability.



To study the perception of consumers towards the product due to advertisement.



To find the ways to make it more effective.

Study on the Effect of Advertisement on Consumers

CLASSIFICATION AND TYPES OF ADVERTISING 1. Product â&#x20AC;&#x201C; Related Advertising A. Pioneering Advertising B. Competitive Advertising C. Retentive Advertising 2. Public Service Advertising 3. Functional Classification A. Advertising Based on Demand Influence Level. (i). Primary Demand (Stimulation) (ii). Selective Demand (Stimulation) B. Institutional Advertising C. Product Advertising (i). Informative Product Advertising (ii). Persuasive Product Advertising (iii). Reminder-Oriented Product Advertising 4. Advertising based on Product Life Cycle A. Consumer Advertising B. Industrial Advertising 5. Trade Advertising A. Retail Advertising B. Wholesale Advertising 6. Advertising Based on Area of operation A. National advertising B. Local advertising C. Regional advertising

Study on the Effect of Advertisement on Consumers 7. Advertising According to Medium Utilized

1. Product – Related Advertising It is concerned with conveying information about and selling a product or service. Product advertising is of three types, viz., A. Pioneering Advertising B. Competitive Advertising C. Retentive Advertising

A. Pioneering Advertising: This type of advertising is used in the introductory stages in the life cycle of a product. It is concerned with developing a “primary” demand. It conveys information about, and selling a product category rather than a specific brand. For example, the initial advertisement for black – and – white television and color television. Such advertisements appeal to the consumer’s emotions and rational motives. B. Competitive Advertising: It is useful when the product has reached the market-growth and especially the market-maturity stage. It stimulates “selective” demand. It seeks to sell a specific brand rather than a general product category. It is of two types: A. Direct Type: It seeks to stimulate immediate buying action. B. Indirect Type: It attempts to pinpoint the virtues of the product in the expectation that the consumer’s action will be affected by it when he is ready to buy. Example: Airline advertising. Air India attempts to bid for the consumer’s patronage either immediately direct action-in which case, it provides prices, time tables and phone numbers on which the customer may call for reservations; or eventually – indirect action – when it suggests that you mention Air India’s name when talking to your travel agent. C. Retentive Advertising: This may be useful when the product has achieved a favourable status in the market – that is, maturity or declining stage. Generally in such times, the advertiser wants to keep his product’s name before the public. A much softer selling approach is used, or only the name may be mentioned in “reminder” type advertising.

2. Public Service Advertising 80

Study on the Effect of Advertisement on Consumers This is directed at the social welfare of a community or a nation. The effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of the sponsoring organization. Advertisements on not mixing drinking and driving are a good example of public service advertising. In this type of advertising, the objective is to put across a message intended to change attitudes or behaviour and benefit the public at large.

3. Functional Classification Advertising may be classified according to the functions which it is intended to fulfil. (i) Advertising may be used to stimulate either the primary demand or the selective demand. (ii) It may promote either the brand or the firm selling that brand. (iii) It may try to cause indirect action or direct action. A. Advertising Based on Demand Influence Level. (i). Primary Demand Stimulation Primary demand is demand for the product or service rather than for a particular brand. It is intended to affect the demand for a type of product, and not the brand of that product. Some advertise to stimulate primary demand. When a product is new, primary demand stimulation is appropriate. At this time, the marketer must inform consumers of the existence of the new item and convince them of the benefits flowing from its use. When primary demand has been stimulated and competitors have entered the market, the advertising strategy may be to stimulate the selective demand. (ii). Selective Demand Stimulation This demand is for a particular brand such as Charminar cigarettes, Surf detergent powder, or Vimal fabrics. To establish a differential advantage and to acquire an acceptable sort of market, selective demand advertising is attempted. It is not to stimulate the demand for the product or service. The advertiser attempts to differentiate his brand and to increase the total amount of consumption of that product. Competitive advertising stimulates selective demand. It may be of either the direct or the indirect type.

Study on the Effect of Advertisement on Consumers

B. Institutional Advertising Institutional Advertising may be formative, persuasive or reminder oriented in character. Institutional advertising is used extensively during periods of product shortages in order to keep the name of the company before the public. It aims at building for a firm a Positive public image in the eyes of shareholders, employees, suppliers, legislators, or the general public. This sells only the name and prestige of the company. This type of advertising is used frequently by large companies whose products are well known. HMT or DCM, for example, does considerable institutional advertising of its name, emphasizing the quality and research behind its products. Institutional advertisements are at consumers or focus them upon other groups, such as voters, government officials, suppliers, financial institutions, etc. If it is effective, the target groups will respond with goodwill towards, and confidence in the sponsor. It is also a useful method or introducing sales persons and new product to consumers. It does not attempt to sell a particular product; it benefits the organization as a whole. It notifies the consumers that the company is a responsible business entity and is patriotic; that its management takes ecologically responsible action, is an affairmotive action employer, supports the socialistic pattern of society or provides employment opportunities in the community. When Indian Oil advertisements describe the companyâ&#x20AC;&#x2122;s general activities, such as public service work, this may be referred to as institutional advertising because it is intended to build an overall favorable attitude towards the company and its family of products. HMT once told the story of the small-scale industries supplying it with component parts, thus indicating how it aided the development of ancillary industries. C. Product Advertising Most advertising is product advertising, designed to promote the sale or reputation of a particular product or service that the organization sells. Indaneâ&#x20AC;&#x2122;s Cooking Gas is a case in point. The marketer may use such promotion to generate exposure attention, comprehension, attitude change or action for an offering. It deals with the non-personal selling of a particular good or service. It is of three types as follows:-

Study on the Effect of Advertisement on Consumers

(i). Informative Product Advertising: This form of advertising tends to characterize the promotion of any new type of product to develop an initial demand. It is usually done in the introductory stages of the product life cycle. It was the original approach to advertising. (ii). Persuasive Product Advertising: Persuasive product advertising is to develop demand for a particular product or brand. It is a type of promotion used in the growth period and, to some extent, in the maturity period of the product life cycle. (iii). Reminder-Oriented Product Advertising: The goal of this type of advertising is to reinforce previous promotional activity by keeping the brand name in front of the public. It is used in the maturity period as well as throughout the declining phase of the product life cycle.

4. Advertising based on Product Life Cycle A. Consumer Advertising Most of the consumer goods producers engage in consumer product advertising. Marketers of pharmaceuticals, cosmetics, scooters, detergents and soaps, cigarettes and alcoholic beverages are examples. Baring a few, all these products are all package goods that the consumer will often buy during the year. There is a heavy competition among the advertisers to establish an advantage for their particular brand. B. Industrial Advertising Industrial executives have little confidence in advertising. They rely on this form of promotion merely out of fear that their competitors may benefit if they stop their advertising efforts. The task of the industrial advertiser is complicated by the multiple buying influence characteristics like, the derived demand, etc. The objectives vary according to the firm and the situation. They are: To inform, To bring in orders,

Study on the Effect of Advertisement on Consumers To induce inquiries, To get the advertiser’s name on the buyer’s list of sources, To provide support for the salesman, To reduce selling costs, To help get items in the news column of a publication, To establish recognition for the firm or its product, To motivate distributors, To recognition for the firm or its products, To motivate distributors, to create or change a company’s image, To create or change a buyer’s attitude, and The basic appeals tend to increase the rupee profits of the buyer or help in achieving his non-monetary objectives. Trade journals are the media most generally used followed by catalogues, direct mail communication, exhibits, and general management publications. Advertising agencies are much less useful in industrial advertising.

5. Trade Advertising A. Retail Advertising This may be defined as “covering all advertising by the stores that sell goods directly to the consuming public. It includes, also advertising by establishments that sell services to the public, such as beauty shops, petrol pumps and banks.” Advertising agencies are rarely used. The store personnel are usually given this responsibility as an added task to be performed, together with their normal functions. The result is that advertising is often relegated to a secondary position in a retail store. One aspect of retail advertising is co-operative advertising. It refers to advertising costs between retailers and manufacturers. From the retailer’s point of view, cooperative advertising permits a store to secure additional advertising that would not otherwise have been available. B. Wholesale Advertising Wholesalers are, generally, not advertising minded, either for themselves or for their suppliers. They would benefit from adopting some of the image-making techniques used by retailers – the need for developing an overall promotional strategy.

Study on the Effect of Advertisement on Consumers They also need to make a greater use of supplier promotion materials and programs in a way advantageous to them.

6. Advertising based on Area of Operation It is classified as follow: A. National advertising It is practiced by many firms in our country. It encourages the consumer to buy their product wherever they are sold. Most national advertisements concentrate on the overall image and desirability of the product. The famous national advertisers are: Hindustan Levers DCM ITC Jay Engineering TISCO B. Regional advertising It is geographical alternative for organizations. For example, Amrit Vanaspati based in Rajpura claims to be the leading hydrogenated oil producer in the Punjab. But, until recently, it mainly confined itself to one of the vegetable oil brands distribution to Malihabad district (in U.P. near Lucknow). C. Local advertising It is generally done by retailers rather than manufacturers. These advertisements save the customer time and money by passing along specific information about products, prices, location, and so on. Retailer advertisements usually provide specific goods sales during weekends in various sectors.

7. Advertising According to Medium The most common classification of advertising is by the medium used. For example: TV, radio, magazine, outdoor, business periodical, newspaper and direct mail advertising. This classification is so common in use that it is mentioned here only for the sake of completeness.

Study on the Effect of Advertisement on Consumers

Measuring Advertising Effectiveness All advertising efforts are directed mainly towards the achievement of business, marketing and advertising objectives i.e., to increase the sales turnover and thus to market the maximum profit. The advertiser spends lakhs of rupees in to this advertising activity. In the background of all these efforts, is an attempt to attract the customer towards the product through advertising. As soon as the advertising campaign is over, a need is generally arisen to measure the effectiveness of the campaign. Whether, it has achieved the desired results i.e. desired sales profitability or results in terms the change in customerâ&#x20AC;&#x2122; behaviour in favour of the companyâ&#x20AC;&#x2122;s product which will naturally, affect the future sale of the product. In order to measure the effectiveness of advertising copy, two types of tests pre tests and post tests- can be undertaken. Pre tests are generally conducted in the beginning of the creation process or at the end of creation process or production stage. There are several pre and post tests techniques to measure the effectiveness of the advertising copy. The effectiveness of advertising in a particular media may also be measured in any of the following ways â&#x20AC;&#x201C; (a) By giving different addresses to different media, (b) Different newspapers may be selected for advertisements of different departments, (c) Coupon blank etc. May be provided with the advertisement or (d) Enquiry from consumers should mention the name of the source of information. The technique is known as keying the advertising. Thus in measuring the effectiveness of advertising we include measuring of the effectiveness of advertising campaign, advertising copy and the effectiveness of individual media. This chapter deals these three problems.

Study on the Effect of Advertisement on Consumers

Importance of measuring the Effectiveness of Advertising (1) It acts as a Safety measure Testing effectiveness of advertising helps in finding out ineffective advertisement and advertising campaigns. It facilitates timely adjustments in advertising to make advertising consumer oriented and result oriented. Thus waste of money in faulty advertising can be avoided. (2) Provides feedback for remedial measures Testing effectiveness of advertising provides useful information to the advertisers to take remedial steps against ineffective advertisements. (3) Avoids possible failure Advertisers are not sure of results of advertising from a particular advertising campaign. Evaluating advertising effectives helps in estimating the results in order to avoid complete loss. (4) To justify the Investment in Advertising The expenditure on advertisement is considered to be an investment. The investment in advertising is a marketing investment and its objectives should be spelt out clearly indicating the results expected from the campaign. The rate and size of return should be determined in advance. If the expected rate of return is achieved in terms of additional profits, the advertisement can be considered as effective one. (5) To know the communication Effect The effectiveness of the advertisement can be measured in terms of their communication effects on the target consumers or audience. The main purpose of advertising is communicated the general public, and existing and prospective consumers, various information about the product and the company. It is therefore desirable to seek post measurements of advertising in order to determine whether advertisement have been seen or heard or in other words whether they have communicated the theme, message or appeal of the advertising. (6) Compare two markets Under this procedure, advertising is published in test markets and results are contrasted with other. Markets â&#x20AC;&#x201C; so called control markets â&#x20AC;&#x201C; which have had the regular advertising program. The measurements made to determine results may be

Study on the Effect of Advertisement on Consumers measurements of change in sales, change in consumer attitudes, changes in dealer display and so on depending upon the objectives sought by the advertiser.

METHODS OF MEASURING ADVERTISING EFFECTIVENESS Advertising is aimed at improving the sales volume of a concern so its effectiveness can be evaluated by its impact on sales. Most of the managers believe that the advertisement directly affects the sales volume and hence they evaluate the effectiveness of the advertising campaign by the increase in the sales volume. There may be two types measures (i)

Direct measures: and

(ii)

Indirect measures:-

(1) Direct Measures of Advertising Effectiveness Under direct measures, a relationship between advertising and sales is established. A comparison of sales of two periods or two periods or two markets may be done and the corresponding changes may be noted. The following are some of the methods that are generally used in measuring that advertising effects. (a) Historical Sales Method Some insights into the effectiveness of past advertising may be obtained by measuring the relationship between the advertising expenditure and the total sales of the product. A multiple regression analysis of advertising expenditure and sales over several time periods may be calculated. It would show how the changes in advertising expenditure have corresponding changes in sales volume. This technique estimates the contribution that advertising has made to explaining in a co relational manner rather than a casual sales, the variation in sales over the time periods covered in the study (b) Experimental Control The other measure of advertising effectiveness is the method of experimental control where a casual relationship between advertising and sales is established. This method is quite expensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs. Media schedules expenditure levels or some combination of these advertising decision

Study on the Effect of Advertisement on Consumers areas. One experimental approach to measuring the sales effectiveness of advertising is test marketing.

(i) Before-after with Control Group Design This classic design uses several test and control cities in this design two types of cities are selected. Cities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities. First of all, the normal sales level is calculated for both type of cities prior to advertising campaign, and then the advertising campaign is presented to the test cities and not the central cities. The effect of advertising campaign, can then, be measured by subtracting the amount of post campaign figure of sale from the pre campaign sale figures in test cities (ii) Multivariable Experimental Designs While the experimental design discussed above yields a reasonably accurate estimate of the effects of the advertising on sales, it is not successful in explaining the success or failure of the campaign itself. Multivariable designs Produce these explanations and are, therefore used by some very large firm because of their diagnostic value.The power of this multivariable factorial design is explained by G.H.Brown, former Fords Director of Marketing Research. For any single medium, eight possible geographic areas have been exposed and eight have not been exposed. Thus, in this experimental model it is possible to evaluate how each individual medium behaves alone and in all possible to evaluate how each individual medium behaves alone and in all possible combinations with other media. (2) Indirect Measures As it is very difficult to measure the direct effect of advertising on companyâ&#x20AC;&#x2122;s profits or sales, most firms rely heavily on indirect measures. These measures do not evaluate the effects of advertisements directing on sales or profits but all other factors such as customer awareness or attitude or customer recall of advertising message affect the sales or profits or goals of the business indirectly. Despite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results, there is no other alternative but to use indirect measures. The most commonly used measures are â&#x20AC;&#x201C;

Study on the Effect of Advertisement on Consumers (a) Exposure to Advertisement In order to be effective, the advertisement must gain exposure. The management is concerned about the number of target audiences who see or hear the organization message set in the advertisement. Without exposure, advertisement is bound to failure. Marketers or advertisers may obtain an idea of exposure generated by the medium by examining its circulation or audience data which reveal the number of copies of the magazine, newspaper or journal sold the number of persons passing the billboards or riding in transit facilities, or the number of persons living in the televiewing or radio listening area, and the number of persons switching on their T.V. and radio sets at various points of time. This number can be estimated by interviewing the numbers of the audience for different media. (b) Attention or Recall of Advertising Message Content This is one of the widely used measures of advertising results. Under this measure, a recall of the message content among a specified group or groups or prospective customers is measured within 24 hours of the exposure of the advertisement. Attention value is the chief quality of the advertising copy the advertisements cannot be said to be effective unless they attract the attention of the target consumers. There are two methods for evaluating the attention getting value of the advertisements. One is pre-test and the other is post-test. In a pre-test evaluation, the consumers are asked to indicate the extent to which they recognise or recall the advertisement, they have already seen. This test is conducted in the laboratory setting. Here consumers read, hear or listen to the advertisement and then researchers ask question regarding the advertisement just to test the recall and then evaluate it. In post-test method, the consumers are asked questions about the indication of recognition or recall after the advertisement has been run. These measures assume that customers can recall or recognize what they have viewed or listened to. Various mechanical devices are being used in the western countries which provide indices of attention such as eye-camera etc. (iii) Brand Awareness The marketers who rely heavily on advertising often appraise its effectiveness by measuring the customerâ&#x20AC;&#x2122;s awareness about the particular product or brand. The assumption of this type of measure is that there is a direct relationship between the

Study on the Effect of Advertisement on Consumers advertisements and the awareness. This type of measure is also subject to the same criticisms as is applicable to direct measures of effectiveness (sales measures because awareness is also not the direct result of the advertisements. It is also affected by many other factors. But, for new products, changes in awareness can often be attributed to the influence of advertising.

(iv) Comprehension Consumers generally use advertisements as a means of obtaining information about the product, brand or the manufacturer. They cannot be informed unless they comprehend the message (grasp the message mentally and understand it fully). Various tests for valuating comprehension are available – One is recall tests – an indicator of comprehension because it is evident that consumers recall what they comprehend. Another measure of the variable is to ask questions about subjects how much they have comprehended a message they have recently heard or seen. One may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. One may ask typical target consumers from time to time such questions like ‘what did you think of our new commercial?’ and ‘Did it get the message across’? The answers of these questions will provide sufficient insight into advertising decision making. (v) Attitude Change Since advertising is considered to be one way of influencing the state of the mind of the audience towards a product, service or organisation, the results are very often measured in terms of attitudes among groups exposed to advertising communication. Several measures are used ranging from asking the questions about willingness to buy the likelihood of buying to the measurement of the extent to which specific attributes (such as modern or new) are associated with a product. (vi) Action One objective of advertisement may be assumed to be to stimulate action or behavior. The action or intention to take an action may be measured on the intention to buy measuring instrument. Under this type of measure, consumers are asked to respond why they are interested in purchasing the product or brand. One type of

Study on the Effect of Advertisement on Consumers action that advertisers attempt to induce is buying behavior. The assumption is that if an increase in sales follows a decrease in advertising expenditure, the change in sales levels are good indicators of the effectiveness of advertising. Logic suggests that measurement of sales is preferable to other measurements. Thus, these above measures (direct or indirect) are used to evaluate the effectiveness of advertisements. It seems from the analysis of the above methods of measuring effectiveness that directly or indirectly changes in sales or profits are taken as the measuring rod of the effectiveness of the advertising.

COMMUNICATION EFFECTS OF ADVERTISEMENT The management should attempt to evaluate the effectiveness of the advertising campaign if the firm’s advertising goals are to be achieved and the ad effectiveness is to be increased. By regular evaluation of the effectiveness, the short comings and the plus points would be revealed and the management would be able to improve the campaign by negating the shortcomings and retaining the favorable point. For this purpose, it is very necessary to know how advertising affects the buyer’s behaviors. But this is very difficult task because measurements are imperfect and imprecise. The effectiveness of advertising can be measured by the extent, it to which it achieves the objectives set for it. If it succeeds in attaining the objectives. Advertising can be said to be effective otherwise it will be a waste of money and time. In this sense, advertising can be recognized as a business activity like other activities. In a very real sense the integrity of promotional activities rests on how well those activities work. An advertising budget that is spent on some poorly defined task or on undefined tasks may be regarded as an economic waste as compared to that spent to achieve the well defined objectives for which the results can be measured. Any social institution upon which a significant portion of our total productive efforts is expanded should be able to point to its specific accomplishment. Indeed, it is a source of discomfort that specific results of advertising activities have not always been subject to precise measurement. Both practitioners and critics feel that promotional activities should only be accepted as socio – economic – institution with full right and privileges “when the means

Study on the Effect of Advertisement on Consumers exist to prove that advertising super are productive rupees’ It is undoubtedly a source of embarrassment that we cannot exactly measure the effectiveness of advertising in definitive terms. The exact result of advertisement expenditure is very difficult to predict because.(a) The reaction of consumer – buyers to the advertising efforts cannot be known in advance. (b) The reaction of competitors in the field cannot be guessed in anticipation and (c) The unexpected events (such as change in social and economic environment and the government policies etc.) cannot be accurately anticipated. Such events may influence the results of the advertising efforts. If we take a hypothetical case of a retailer who contract to spent Rs.5000 on advertisement with a local newspaper for a special sales even. The advertisement is seen and the response is much greater than it is anticipated. What caused the success of sale? They message theme colors etc., of the advertisement or the low prices quoted during the sale of the superior quality of the product or absence of competition in the market on the day or the favorable. Weather conditions or the goodwill of the firm etc. The overwhelming success of the sale is the joint result of all the above variables and it is quite impossible to isolate the role of any one variable. It is so because the cause and effect – relationship cannot be established in advance when a multitude of variable impinge upon a particular event. It is entirely possible that a poor advertising support may push up the sale because everything else falls into its proper place or the reverse may be possible. But it does not mean that that we cannot measure the effects of particulars advertising effort. The advertising executives are much concerned about the assessment of the effectiveness of the advertising efforts. For this purpose, the management needs answers to such questions as: was the advertising campaign really successful in attaining the advertising goals? Were our T.V. commercials as good as those of our competitors? Will the print advertisement, which we have designed, make consumers aware of our new product? To get answers of these questions, various tests of effectiveness (Pretests and post – tests ) are deeded to determine whether proposed advertisement should be used, and if they are not satisfactory how they might be improved, and whether on going campaign should be stopped continued or changed. Pre- tests are

Study on the Effect of Advertisement on Consumers conducted before exposing target consumers to the advertisements and post tests after consumers have been exposed to them. As indicated earlier, the advertisers are interested in knowing what they are getting for their advertising rupees, So they test the proposed advertisement with pre test and measure the actual results with a post test. In the past, protesting was done by the advertising agencies but now the advertisers have been taking an increasingly active role in protesting process. Pre test may be done either before an advertisement has been designed or executed after it is ready for public distribution or at both points. During protesting there is often research on three vital questions:(i) Do consumers feel that the advertisement communicates something desirable about the product? (ii) Does the message have an exclusive appeal that differentiates the product from that of the competitors? (iii) Is the advertisement believable? Although a lot of money is spent on protesting yet the advertisers like to confirm the results by post testing of their promotional campaigns due to the following reasons:(i) There is a need produce more effective advertising by retaining the good and removing the bad. (ii) The advertising executives can prove to the satisfaction of the management that a higher advertising budget will benefit the firm. (iii) There is a need for measuring the results to determine the level of expenditure that is most promising. Most research focuses on the communication effect rather than sales effect because it is a long run process. In the short run, however sales may be slight and important but in the long run its effects ob brands and companies may be of great importance. Indirectly it will affect the sales in the long run, by changing the consumer awareness and attitude. The advertisers are therefore, concerned with their impact on consumer awareness and attitude. The communication effect on sales may be presented in the following figure:Communication Effect on Sales Awareness â&#x2020;&#x201C;

Study on the Effect of Advertisement on Consumers Attitude ↓ Trial ↓ Satisfaction ↓ Purchases or repurchase Awareness builds a favorable or at least a curious attitude towards the product which leads to experimentation. If consumer is satisfied with the trial he may decide to purchase the product. There are many critical and unresolved issues in determining how to test the communication effects of advertising. Among these are:(1) Exposure Conditions – Should advertising be tested under realistic conditions or under more controlled laboratory conditions? (2) Execution – Protesting a finished advertisement as an expensive and time consuming. Does protesting a preliminary execution produce accurate and useful data? (3) Quality Vs. Quantity Data- Quantitative data are the easiest and the almost precise measurement. But qualitative data collected through interviews may provide information that short answer questions never can. Many types of advertising tests are conducted (different methods of pre tests and post – test are given in question number) In T.V. commercials are tested by inviting a group of people to the studio to view a program. The audience is then surveyed about the commercials. Print advertisements are tested through dummy magazine portfolio tests.

Compunction Effectiveness Vs Sales Effectiveness It is easier to assess the communication effect of advertising than the sales effect. Many firms try to measure the effectiveness of advertising in terms of sales results but this practice is always misleading. Since, the effect is the result of so many variables, a distinct effect of advertising on sales cannot be correctly measured,

Study on the Effect of Advertisement on Consumers Although there may be some exceptions. For example direct mail advertising can effectively be measured by the inquiries received. But in many situations the exact relationship between advertising activity and sales cannot be established satisfactorily. We can correctly assume that some sales will occur even though there is no advertising or little advertising or conversely there will be no increase in sales after the point of saturation is reached or it may be that sales will show a decreasing trend at this point in spite of large amount of expenditure on advertising is done. It is so because advertising is no the only variable that effect the sales. Thus, we may conduct that sales effect of advertising is difficult to measure because a number of variables affect the quantum of tales and the contribution of advertisement cannot be measured separately unless all other variables are presumed to be constant. This situation is quite hypothetical and almost nonexistent. Added to this is the fact that advertisement itself is made of a variety of variables such as media, messages, colours, page or time of the day, locations, the size of the headline and the appeals used. Thus even if the advertising variable is separated this would still not answer the question about the effectiveness of the individual components of the advertising campaign. So advertisers try to measure the communication effect of the advertising. Suitability In small business firms where the marketing research resources are limited advertising managers may decide on less expensive and less relevant measures. The big business house, which has more access to research, may decide on the more relevant and expensive measures. Factors Affecting Advertising The final external factor in the planning framework concerns environmental factor social, legal, and global. Law forbids deceptive advertising. One solution is to create brand advertising that is vague and contains little specific information. However, such an approach can result not only in ineffective advertising; by it can lessen the social value of advertising by reducing the amount for useful information

Study on the Effect of Advertisement on Consumers that it provides to society. Thus, and advertiser who attempts to provide specific, relevant information must be well aware of advertising regulation. Even more difficult consideration for people involved in the advertising effort is broad social and economic issues. Another concern is that advertising, especially when it is more irritating than entertaining, is an intrusion into an already excessively polluted environment. A whole set of rules is emerging to cover advertising directed at children, and advertising for products such as alcohol and cigarettes, and the use of environmental and health claims in advertising. Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other.

IMPACT OF ADVERTISEMENT Advertising has an important effect on a countryâ&#x20AC;&#x2122;s economy, society, culture, and political system. This is especially true in the United States where the advertising industry plays such a prominent role. 1. Economic Impact Most economists believe that advertising has a positive impact on the economy because it stimulates demand for products and services, strengthening the economy by promoting the sale of goods and services. Manufacturers know that advertising can help sell a new product quickly, enabling them to recoup the costs of developing new products. By stimulating the development of new products, advertising helps increase competition. Many economists believe that increased competition leads to lower prices, thereby benefiting consumers and the economy as a whole. These economists also argue that by interesting consumers in purchasing goods, advertising enables manufacturers and others to sell their products in larger quantities. The

Study on the Effect of Advertisement on Consumers increased volume of sales enables companies to produce individual units at lower costs and therefore, sell them at a lower price. Advertising thus benefits consumers by helping lower prices. Other economists, however, believe that advertising is wasteful. They argue that the cost of advertising adds to the cost of goods and that most advertising simply encourages consumers to buy one brand rather than another. According to this view, advertising simply moves sales from one company to another, rather than increasing sales overall and thereby benefiting the economy as a whole.

2. Social Impact Advertising can have wide-ranging repercussions on a society. Some critics suggest that advertising promotes a materialistic way of life by leading people to believe that happiness is achieved by purchasing products. They argue that advertising creates a consumer culture in which buying exciting new products becomes the foundation of the society's values, pleasures, and goals. Other critics express concern over the way advertising has affected women and racial minority groups. Ads in the 1950s depicted women primarily as decoration or sex objects. Although millions of women worked outside the home in the 1960s, ads continued to focus on their role as homemakers. Whether owing to the feminist movement or to women's increasing economic power, after the 1960s it became more common to see women depicted in professional roles. However, many ads today still emphasize a womanâ&#x20AC;&#x2122;s sexuality.

Study on the Effect of Advertisement on Consumers The way advertising has depicted racial minorities has also been harmful. Prior to 1960, African Americans were usually shown in a subordinate position. Due to the influence of the civil rights movement, however, advertisers by the 1980s had begun to depict African Americans as students, professionals, or business people. However, many African American organizations and community activists continue to object to the way that alcohol and tobacco companies have seemingly targeted low-income minority communities with a heavy preponderance of outdoor advertising for their products. As ads have begun to more fully reflect the lives of women and African Americans in the United States, increasing attention has been paid to the way in which advertising shows other ethnic groups, including Hispanics, Asians, Native Americans, and Eastern Europeans. There is still considerable debate over how advertising influences public perception of gender and of particular ethnic groups. Advertising has a major social impact by helping sustain mass communications media and making them relatively inexpensive, if not free, to the public. Newspapers, magazines, radio, and broadcast television all receive their primary income from advertising. Without advertising, many of these forms of mass communication might not exist to the extent that they do today, or they might be considerably more expensive, offer less variety, or even be subject to government control through subsidies. In-depth news programs, a diversity of magazines, and free entertainment might no longer be widely available. At the same time, however, some critics warn that because advertising plays such a major economic role, it may exercise undue influence on the news media and thereby curtail the free flow of information in a free society. Reporters and editors, for example, may be hesitant to develop a news story that criticizes a major advertiser. As a result, society might not be alerted to harmful or potentially harmful conduct by the advertiser. Most members of the news media deny that pressure from an advertiser prevents them from

Study on the Effect of Advertisement on Consumers pursuing news stories involving that advertiser, but some members of the media acknowledge that they might not be inclined to investigate an issue aggressively if it threatened to offend a major advertiser. Advertisers may affect media programming in other ways, too, critics charge. For example, companies that sponsor TV programs prefer relatively wholesome, noncontroversial programming to avoid offending a mass audience. This preference causes TV networks to emphasize this type of programming. The result is that society may be denied the benefits of being able to view challenging or highly original entertainment programs or news programs on controversial issues. Because advertisers are especially interested in attracting the 18 to 34 year olds who account for most consumer spending, television shows are often developed with this audience in mind. If the ratings show that a program is not attracting large audiences, particularly among 18 to 34 year olds, advertisers often withdraw support, which causes a program to be canceled. As a result, shows that are more likely to interest and to be of value to older audiences are not produced. The impact of television on young children has received much attention. Research suggests that children see television advertising as just another form of programming and react uncritically to its messages, which makes them especially vulnerable to advertising. There is also concern about the way in which adolescent girls respond to advertising that features beautiful, thin models. Research indicates that many adolescent girls are unduly influenced by this standard of beauty, become dissatisfied with their own bodies, and may develop eating disorders in pursuit of a thin figure. New research suggests that adolescent boys are also being influenced by advertising images of bulked-up, buffed bodies. As a result, many become dissatisfied with their own body image, devote large amounts of time to weightlifting, and may even take drugs that have harmful side effects in order to develop more muscle. Those over the age of 60 are thought to be less influenced by advertising, but some elderly people no longer process messages as easily as younger people, making them more susceptible to questionable advertising claims.

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3. Political Impact Advertising is now a major component of political campaigns and therefore has a big influence on the democratic process itself. In 1998 more than $467 million was spent on election campaigns in the United States. That amount of spending placed political advertising in the ranks of the countryâ&#x20AC;&#x2122;s 30 leading advertisers that year. Political advertising is a relatively new development in U.S. history. Advertising professionals did not become involved in electoral campaigns until the 1950s. But since then, political advertising has grown in sophistication and complexity. Political advertising enables candidates to convey their positions on important issues and to acquaint voters with their accomplishments and personalities. Television advertising is especially effective for candidates running for national or statewide office because it can reach so many people at once. Candidates can also use advertising to respond effectively to the charges of their opponents. Various campaign finance reform proposals, however, have tried to address the impact of television advertising on political campaigning. Because of the high cost of television ads, the costs of political campaigns have skyrocketed, making it necessary for candidates to raise money continually, even after they have been elected to office. Critics say this factor jeopardizes the democratic process by making elected officials beholden to wealthy contributors and by making it more likely that only the wealthy will run for office. Some reform proposals have called for free airtime, but television and radio networks have resisted this idea. Critics of political advertising also charge that the 30-second television spot has become more important to a political campaign than a thorough discussion of the issues. As a result, voters are bombarded with image advertising rather than being acquainted with the candidateâ&#x20AC;&#x2122;s positions. They contend that this practice is harmful to good government. Issues are

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Study on the Effect of Advertisement on Consumers simplified, and candidates are “packaged and sold” much like a consumer product, thereby distorting the political process. 4. Cultural Impact Advertising can affect cultural values. Some advertising messages, for example, encourage aggressive individualism, which may clash with the traditional cultural values of a country where the collective or group is emphasized over the individual or humility or modesty is preferred to aggressiveness. With the globalization of the world economy, multinational corporations often use the same advertising to sell to consumers around the world. Some critics argue that advertising messages are thus helping to break down distinct cultural differences and traditional values, causing the world to become increasingly homogeneous. Many advertising campaigns, however, have universal appeal, overriding cultural differences, or they contribute to culture in a positive way. Humor in advertising has made many ad campaigns widely popular, in some cases achieving the status of folklore or taking on new life in another arena. For example, a popular ad campaign for a fast-food chain with the slogan “Where’s the beef?” became part of the 1980 Democratic presidential primary campaign between Gary Hart and Walter Mondale. The ad ridiculed a competitor by depicting a small hamburger patty dwarfed by a huge bun. During a primary debate one of the candidates used the ad slogan to suggest that his opponent’s campaign lacked substance.

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RESEARCH METHODOLOGY

Research Design

: Descriptive

Data Source

: Primary data : Secondary data

Research Instrument

: Questionnaire

Sample design

: Simple random design

Sample size

: 100 : New Delhi

Sample location : Bihar

Sample element

: Students : Business class : House hold : Service class

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QUESTIONNAIRE I am Shobhit Verma pursuing II Semester of Master of Business Administration from NSB School of Business (New Delhi). I am doing my research report on “ A Study on Effect of Advertisement on Consumers” as a part of my course curriculum. For this I require you to please fill this questionnaire.

Name: ………………………………................................. Sex:

a. Male

[ ]

b. Female

[

]

Age: a. Below 20

[

]

b. 20 to 30

[

]

c. 30 to 40

[

]

d. Above 40

[

]

[

]

b. Business class [

]

c. House hold

[

]

d. Service class [

]

Occupation: a. Student

1. From where do you get information about the new product? a. Television

[

]

b. Newspapers

[

]

c. Magazines

[

]

d. Internet

[

]

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Study on the Effect of Advertisement on Consumers e. Peers (friends/family) [

]

2. Which form of advertisement do you like more? a. Still image (Magazines / Newspapers)

[

]

b. Moving image (Television / Internet)

[

]

3. For you advertisement is a source of a. Information

[

]

b. Entertainment

[

]

4. Does an entertaining advertisement influences your opinion about the product? a. Yes

[

]

b. No

[

]

5. Does information provided in advertisement affects your opinion about the product? a. Yes

[

]

b. No

[

]

6. Does language used in advertisement affects your opinion about the product? a. Yes

[

]

b. No

[

]

7. Does presence of any celebrity in the advertisement affects your opinion about the product? a. Yes

[

]

b. No

[

]

8. Does intensity of the advertisement affects your opinion about the product?

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Study on the Effect of Advertisement on Consumers a. Yes

[

]

b. No

[

]

9. Does presence of social issues in the advertisement affects your opinion about the product? a. Yes

[

]

b. No

[

]

10. Do you think advertisement helps in increasing sales of any product? a. Yes

[

]

b. No

[

]

11. Which type of advertisement influences you more? a. National advertisement

[

]

b. Local advertisement

[

]

SAMPLING UNIT Sampling Unit is the total number of samples differed in different locality.

Sl. No.

Classes

No. of Classes

Students

Business class

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Study on the Effect of Advertisement on Consumers

Household

Service class

Total

100

Data have been collected through the survey method while surveys have been conducted in : i)

New Delhi.

ii)

Bihar.

The data collected was both from the primary and secondary source. The primary data was collected through questionnaires and was collected personally. The secondary data was collected through books, magazines, company website and other websites. All the area had segmented according the population of this area. I have considered 100 as sample size.

PIE CHART REPRESENTATION

1. From where do you get information about the new product? Answers

No. of respondents

107

Study on the Effect of Advertisement on Consumers Television Newspapers Magazines Internet Peers (Family / Friends)

42 26 11 6 15

Interpretation: A large size of population is influenced by Television and Newspapers.

2. Which form of advertisement do you like more?

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Study on the Effect of Advertisement on Consumers Answers Still image Moving image

No. of respondents 28 72

Interpretation: People are more affected by advertisement with moving image.

3. For you advertisement is a source of :

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Study on the Effect of Advertisement on Consumers

Answers Information Entertainment

No. of respondents 62 38

Interpretation: More number of people consider advertisement as a source of information rather than a source of entertainment.

4. Does entertaining advertisement affect your opinion about the product?

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Study on the Effect of Advertisement on Consumers Answers Yes No

No. of respondents

26 74

Interpretation: Entertaining advertisement does not affect the opinion of customer about the product

5. Does information provided in advertisement affects your opinion about the product?

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Study on the Effect of Advertisement on Consumers

Answers Yes No

No. of respondents 87 13

Interpretation: Information provided in the advertisement affect very much on the opinion of consumers about the product.

6. Does language used in advertisement affects your opinion about the product?

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Answers Yes No

No. of respondents 63 37

Interpretation: Language used in the advertisement affects a lot on the opinion of consumers about the product.

7. Does presence of any celebrity in the advertisement affects your opinion about the product?

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Study on the Effect of Advertisement on Consumers

Answers Yes No

No. of respondents 69 31

Interpretation: Presence of any celebrity affects on the opinion of consumers about the product.

8. Does intensity of the advertisement affects your opinion about the product?

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Study on the Effect of Advertisement on Consumers

Answers Yes No

No. of respondents 52 48

Interpretation: The effect of intensity is very powerful on the opinion of consumers about the product.

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Study on the Effect of Advertisement on Consumers

9. Does presence of social issues in the advertisement affects your opinion about the product?

Answers Yes No

No. of respondents 59 41

Interpretation: Presence of social issues in advertisements affects very much on the opinion of consumers about the product.

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Study on the Effect of Advertisement on Consumers

10.Do you think advertisement helps in increasing sales of any product?

Answers Yes No

No. of respondents 87 13

Interpretation: 117

Study on the Effect of Advertisement on Consumers

Advertisement helps very much in increasing the sales of any product.

11.Which type of advertisement influences you more?

Answers National advertisement Local advertisement

No. of respondents 76 24

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Interpretation: National advertisements affect people’s opinion more than the local advertisements.

FINDINGS  Advertisements with moving image are more effective than advertisement with still image.  Information provided in the advertisement has more influence on consumer’s perception about the product.

 Language used in the advertisement also plays important role in increasing effectiveness of an advertisement.  Intensity of advertisement affects the perception of consumers towards the product and leads them for its purchase.

 Social issues included in advertisement affects the perception of high age group people.  National advertisement has more influence on consumer’s perception about the product instead of local advertisement.  Advertisement increases the sales of any product.

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LIMITATIONS The marketing researcher has to face certain difficulties while he carries out the research work. He knows the limitation beforehand, uncontrollable and others are controllable. Some important limitations, which are faced by researchers as follows: -



Sample size restricted to 100 only which was very less according total population.



The responses given by respondents were not always accurate because the respondents gave the response according to their understanding.



Survey is a time consuming process but the time to collect the data for research was very less.



Sometimes the respondents are not willing to fill the

questionnaire

and hence the resultant may not be correct.



Marketing researchers studies the behavior that is rational. Very often, they do not express their feeling correctly what they think. In such cases their habitual, practice, preferences cannot be assessed correctly.

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CONCLUSION In todayâ&#x20AC;&#x2122;s world which is fast moving & dynamic, peopleâ&#x20AC;&#x2122;s wants, need and desires are changing; itâ&#x20AC;&#x2122;s very important to know them and give them what they want. This is the main objective of advertising where ad agency plays major role in market research, making of creative, launching it in the market, taking the feedback of consumer and making any product famous and acceptable among consumers. Ad agencies are playing an important role in shaping present and future of not just selected brand but of entire company. There is no one -- sure-fire -- best way to advertise your product or service. It is important to explore the various advertising media and select those which will most effectively convey your message to your customers in a cost-efficient manner. Always remember, advertising is an investment in the future of your business.

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SUGGESTIONS  Advertisement should be made with keeping the determinants of effectiveness in mind.  Advertisement should be according to the product and its suitability with different age groups.  To make advertisement more effective all the determinants of effectiveness should be taken care of.

 Investment in advertisement should be made with great care of media of advertisement and type of advertisement.  Advertisers should develop new and more effective ways of advertisement.

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REFERENCE

Books 1. Advertising Management – concepts and cases Mahendra Mohan. 2. Marketing Management – Philip Kotler 3. Branding – Geoffrey Randoll 4. Strategic Brand Management – Kapferer 5. Advertising and Sales Promotion Management – S.L.Gupta, V.V.Ratra 6. Advertising and Salesmanship – P.Saravanavel.

Internet 1. www.books.google.com 2. www.adage.com 3. www.paulbeelen.com 4.

www.decisionanalyst.com

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