FMGC MARKET

1. EXECUTIVE SUMMARY
Advertising is a management function. While advertising is the event, advertising
management is the whole process – a function of marketing starting from market
research continuing through advertising leading to actual sales or achievement of
objective. But advertising management does not stop here. It goes further in
regard to evaluation of the whole cost benefits that were involved in the whole
exercise.
Today’s advertising plays an important role in marketing field. Without
advertisements it is difficult for any company to sale its products. “No business
can survive without advertising”. Advertisements are required in every sector. It
helps to increase the products demand and enhance company’s image in market.
Advertisement deals with many factors and sends the product information to
consumers through various medias. There are latest developments in advertising
medias. In today’s fast forward world they are playing a critical role in overall
advertising process. It mostly helps the customer to choose the specific product
in the market.
The project deals with the total advertisement information on Fast Moving
Consumer Goods (FMCG) such as buying motives of consumers, how
advertising helps to companies in promoting their products; different traditional as
well as latest media for advertising and their advantages and disadvantages; for
any advertisement to be successful the agency behind it has to be that efficient to
understand the consumers needs. Like how client choose specific agencies. How
agencies gain and lose their clients.
This project includes the example of SHRI MAHILA GRIHA UDYOG LIJJAT
PAPAD, in which way they go for advertising of their products.
INDEX
SR NO. PARTICULARS PAGE NO.
1 MEANING OF MARKET 1
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2. 2 MEANING OF MARKETING 1
3
KNOWLEDGE OF BUYING MOTIVES
3
4 FAST MOVING CONSUMER GOODS (FMCG) 7
5 INTRODUCTION OF ADVERTISING 7
6 MEDIA OF ADVERTISING 13
7 DISPLAY OF GOODS 31
8 BRAND MANAGEMENT SYSTEMS 40
9 ADVERTISING AGENCY 42
10 DEVELOPMENT OF CREATIVE STRATEGY 51
11 SOME RECENT TRENDS IN ADVERTISING 56
12 SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD 59
OBJECTIVE
 To understand the concept of advertising and how it is useful to consumer as well
as FMCG companies.
 To understand how the advertisement agency deals with media and their clients. It
all gives practical approach to know the advertising in detail.
 To have a glance how SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD
go for in-house advertising with cost effectiveness.
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3.  MEANING OF “MARKET”: -
The widened horizon of the market world over has given a different
dimension to the field of marketing. In view of the, revolution in the field of
transport and communication, international markets have come into existence
and marketing has become a highly specialized job. Before going into
technicalities of marketing, let us try to understand the concept of market. In an
ordinary sense, a market refers to a particular place where buyers and sellers
meet in order to conduct buying and selling activities. In this sense, market refers
to a particular place or locality where business transactions are conducted.
 MEANING OF MARKETING: -
Marketing has been defined by the “American Marketing Association” as,
“the performance of the business activities that direct the flow of goods and
services from producer to consumer or user.”
Philip Kotler defines marketing as, “a human activity directed at satisfying
needs and wants through exchange process.”
From the above definitions it is clear that marketing is not only concerned with
buying and selling but also with all other activities resulting into flow of goods and
services from the centres of production to centres of consumption. In marketing,
an attempt is also made to find out the potential outlet and buyers. It is an attempt
to create new demand for the goods. Thus the term marketing has wider scope.
Philip Kotler’s definition point out that marketing is a means for the
satisfaction of human wants. The purpose of marketing is to supply goods
according to the requirements of the consumers. Marketing aims at maximizing
profits to the sellers and maximizing satisfaction to the consumers.
The modern concept of marketing is quite different from the traditional one.
Traditionally, marketing consists of those activities, which were responsible for
the movement of goods form producer to consumers. The aim of marketing was
to create place, time and possession utilities to goods. The modern marketing
concept is not concerned with the physical process of distribution. In the modern
sense, marketing function is concerned with the creation of a consumer. Thus
marketing is the base of all business activities.
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4. Modern marketing is concerned with –
1) To identify the needs of consumers.
2) To organize the business in such a manner as to meet these needs
effectively with benefits of consumers and producers.
To conclude, modern marketing is essentially “consumer oriented” or
“service oriented” and not merely “profit oriented”.
 Features of marketing
1. Change in ownership and possession: Marketing includes all activities
concerned with affecting change in ownership and possession of goods and
services.
2. Creation of utilities: Marketing creates time, place and possession utilities.
3. Satisfaction of human wants: Marketing is a process through which
human wants are satisfied through the exchange of goods and services.
4. Connecting center of production and consumption: Marketing is the
sum total of activities that take place in getting goods and services into the
hands of ultimate consumer.
5. Consumer satisfaction: Satisfaction and welfare of consumer.
6. Profit orientation: Marketing should also give reasonable profit to the
seller. Marketing is not a social service but an economy activity for the
satisfaction to consumers and reasonable return to seller.
7. Sales promotion: Marketing aims at determining the needs of consumers.
It also includes the use of sales promotion measures in order to encourage
consumer to buy more. It is basically sales promotion tool in the armory of a
businessman.
8. Marketing mix: Marketing is the sum total of four P’s such as Product,
Price, Promotion, and Place. Thus, marketing involves producing the right
product changing the right price, placing the product in the right way,
targeting the right market place. Marketing is essentially consumer-oriented
in character. It is for promoting sales.
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5.  Importance of marketing:
1. Marketing helps in effecting supply at the right place and right time.
2. Marketing stabilizes the price.
3. It informs consumer about the arrival of new product and their uses.
4. It improves the standard of living of consumers.
5. Marketing establishes a channel of communication between producer and
consumer, thus speeds up the exchange of goods and services.
6. Marketing facilitates the free flow of goods and services and prevents
accumulation of unsold stock.
7. Marketing helps in increasing the volumes of production and hence the
manufacturers can enjoy the advantages of large-scale economics.
8. Marketing provides employment opportunities, thus enhances the general
welfare of the society.
9. Marketing enables the producers to concentrate on production of goods
leaving the distribution to the distributive class. Due to this sort of
specialization, producer can concentrate on production and also improve
the quality of production.
 Knowledge of Buying Motives: -
Increased turnover of the organization depends upon the successful handling
of customers. If the company wants to sell its product in the market it must know
why people buy different articles. All customers buy in order to satisfy their wants
and desires. However this desire is not exactly same with all customers. The
buying motives are emotional in the character. Buying motive is the base of the
buying behaviour of a customer. They include strong feeling, urge, desire, drive
or stimulus that makes a person to take the decision to buy. Buying motive
encourages the people to buy specific goods.
According to Prof. Duncan “buying motives are those influences or
considerations which provide the impulse to buy, induce action or determine
choice in the purpose of goods or services.”
In simple words, buying motives are the thoughts, emotions and instincts,
which arouse in the mind of the customer a desire to buy. Buying motives are the
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6. aims or objectives due to which a customer decides to buy a specific article or
product.
The following are some important buying motives: -
1. Fear: One of the important motives is fear. It may be fear of death, fear of
loss, fear of the future, fear of property etc. tactful sales talk bringing the
appropriate fear into prominence would motivate the prospect into
immediate action. This motive sells all types of insurance, vitamin pills,
burglar alarms, etc.
Relationship between fear levels and massage acceptance
Facilitating effects
Acceptance of message
Recommendation Level of fear High
Resultant
nonmonotonic
Inhabiting effects curve
Before deciding to use a fear appeal based massage strategy, the
advertiser should consider how fear operates, what level to use and how
different target audiences may respond. One theory suggests that the
relationship between the level of fear in the massage and acceptance of
persuasion is curvilinear, as shown in the diagram. This means that
massage acceptance increases as the amount of fear used rise – to a point.
Beyond that point acceptance decreases as the level of fear rises.
This relationship between fear and persuasion can be explained by the
fact that fears appeals have both facilitating and inhabiting effects. A low
level fear can have facilitating effects; it attracts attention and interests in the
massage and may motivate the receiver to act to resolve the threat. Thus
increasing a level of fear in a massage from low to moderate can result in
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7. increased persuasion. High levels of fear however, can produce inhabiting
effects; the receiver may economically block the massage by turning it out,
perceiving it selectively or denying its arguments outright. The above
diagram illustrates how these two countereffects operate to produce the
curvilinear relationship between fear and persuasion.
2. Profit/ gain: Every person purchases a product because he
gains out of it. He weighs the merit of the product against its price to
decide whether to buy it or not. If the advertiser has proper product
knowledge and knowledge of selling points he can easily prove to the
prospect that his product is more beneficial than the product of
competitors. Moreover by offering some discount and concessions or by
explaining about gift schemes he can easily induce the prospects to
purchase the product.
3. Vanity: It is excessive pride. People possessing this buying motive have a
superiority complex. Therefore through advertising companies can
increase their sales by explaining this motive properly e.g. a customer can
be easily persuaded to purchase a particular product by watching ads that
explains to him that he can improve his social status by purchasing such a
useful item. Then he may be convinced to purchase it even if he does not
really require it.
4. Fashion: Fashion is based on crowd psychology. Fashion can be
described as the desire to imitate what others are doing. It is closely linked
up with pride or desire for importance. A young man purchases the latest
style of sports clothes or the businessman installs a well-known cooling
system in his office, each one is motivated by the desire to show
superiority and be in fashion.
5. Sex or Romances: Sex is very important in case of sale of
articles such as fancy clothes, cosmetics, etc. This is mainly because of
attraction of opposite sex.
6. Love and Affection: This is an unselfish motive. Many men can be
motivated into immediate action by an appeal to their sense of duty or love
for their family or their desire to be of service to humanity, e.g. a father
purchases toys for his daughter of out love.
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8. 7. Physical Well-being or Health: Everyone likes to be fit and healthy.
Products like tonics, vitamin pills etc. can be sold by an advertisement by
exploiting this buying motive. The reason for success of health centers
today is due to possession of these buying motives among prospects.
8. Comfort and Convenience: Many products are purchased because
people want to feel comfortable. Therefore advertiser should properly
understand this motive and exploit it to increase sales e.g. he can easily
convince a working lady to purchase a refrigerator by explaining that she
can cook in the morning and store it in a fridge when she is away for work.
She can just warm up the food after she comes back from work. This will
make her job very easy. Consumer goods like Pillsbury Atta, Knor soups,
Maggy can be easily sold by exploiting this buying motive.
9. Curiosity: Psychologists describe ‘Curiosity’ as a desire for new
experience or to know the latest things in the market. Products like books,
papers, magazines are sold on a large scale due to this buying motive.
Moreover travel agencies make profits due to curiosity of people to know
about new places.
10. Habit: People buy certain products out of certain habits e.g. liquor,
cigarettes, etc. Habits can also be created by salesmanship and
advertising e.g. sales of pan masalas has increased due to heavy amounts
of advertising.
11. Jealousy: Jealousy is a desire to secure an edge over others. A person
may purchase a colour TV set just to show off to neighbors even if he does
not really need the product or a woman may purchase a diamond set so
that she can show off to her friends in parties even if she cannot afford to
purchase it.
12. Patronage: It can be brand loyalty. Many people have faith in certain
brands therefore they purchase the products of only that brand. Therefore
an advertiser should focus on to maintain brand loyalty.
13. Hobbies: People cultivate hobbies to spend their leisure time e.g.,
collection of coins, stamps, photography, playing games, etc. An
advertiser can increase his sales by understanding this buying motive of
his prospects.
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9. The study of buying motives is important and essential for every advertiser. It
gives the following advantages.
 An advertiser understands the mind of the customer clearly and precisely.
 An advertiser can focus only those features of a product that satisfy the
buying motives of the customer.
 An advertiser can anticipate the possible objections from the customers.
 An advertiser can give proper guidance to the customer in his shopping
activity.
 An advertiser can remove possible resistance of the buyer.
 An advertiser can increase the sale of goods.
 FAST MOVING CONSUMER GOODS (FMCG): -
According to, “Food Safety Promotion Brand” fast moving consumer
goods means, “This is usually an everyday low priced and low risk product that
requires very little thought when purchasing”.
Basically in our day-to-day life we need different types of products but FMCG
are those products, which we get at very lower price and which are changing
time-to-time. Rich as well as poor people consume FMCG. FMCG helps in
increasing our national income.
Fast Moving Consumer Goods includes variety of Toilet soaps, detergents,
toothpastes, washing products and much more.
 ADVERTISING:
Meaning of Advertising and Publicity:
The powerful weapon in the armoury of business community today is
advertising and publicity. It is a part and parcel of every business today and as no
business can survive and grow without advertising and publicity. As a matter of
fact today advertising and publicity is required in every walk of life. Salesmanship
alone will bring limited success in selling unless it is supported by advertising and
publicity. Both these activities are supplementary. “Advertising is impersonal
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10. salesmanship”. The approach of salesmanship is personal and direct. On the
contrary, the approach of advertising is indirect and it appeals to masses.
Advertising creates proper background for salesmanship. It brings customers to
shops by creating a desire to purchase. “Advertising is called as
salesmanship in print”.
In the modern marketing process there is a tendency to use both advertising
and publicity interchangeably. Both these terms are treated as terms with the
same meaning and one is used for another.
The American Marketing Association defines the term advertising as “any
paid form of non personal presentation and promotion of goods, services or ideas
by an identified sponsor.”
In simple words, publicity means spreading of information relating to a
particular article. The main object of publicity is to influence the public opinion or
to bring something to the notice of the public at large. The term “publicity” is wider
than the term “advertising”. Advertisement is regarded as a part of publicity. It is
also a means of information to the public and aims at publicizing the product.
However, it is presented in the form of a specific appeal and is usually presented
in an attractive and decorative fashion. It is not only a source of public information
but also a tool of sales promotion. Advertisement is a specialized technique of
popularizing the product or service. That is why it is described as salesmanship in
print or in writing. However, both salesmanship and publicity perform the same
function. They make non-personal presentation of goods and services. Thus, in
practice these words are often used as synonymous. It must, however be noted
that all advertising is publicity but all publicity is not advertising. Advertising is
useful for giving publicity to products, firms and manufacturers. Modern
advertising is based on human psychology.
Features of Advertising:
1) Process of communication: Advertising is a means of reaching to the
masses and such as it is a very powerful medium of mass communication.
Advertisement makes possible publicity on a bumper scale. It appeals to a
large number of people at one and the same time. It influences the choices
and buying decisions of the potential buyers at large. It makes a large number
of people curious about the advertised products at one and the same time. It
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11. is basically a non-personal communication as it is addressed to masses. It is
mass oriented and mass based technique of approaching people.
2) Passing of information: Advertisement informs people about the availability
and benefits they would get if they purchase advertised products. The
information is given in a crystal clear manner to enable the buyer to obtain the
exact details of the product. The information given should be completed, clear
and thorough. The advertising massage should be conveyed clearly. It
enlightens buyer about the utility of the product and its uses. Thus advertising
passes on the correct information and educates consumers. It not only
removes doubts, false notions and prejudices but also facilitates better
selection on the part of consumers. People come to know new products, its
features, and multiple uses to which it can be put due to advertisement.
3) Changing attitude: Primarily advertising aims at changing or influencing
buying attitude of the people. It multiplies wants and opens up new avenues.
Due to constant advertisements buying behaviour of the consumers
undergoes a radical change. Instead of consumers buying A product they are
made to buy B product. Thus due to advertising and publicity attitude of the
people and their buying behaviour undergoes a change.
4) Result orientation: The main aim of the advertisement is not only to
communicate effectively and pass on information efficiently. It aims at
including action on the part of the people. It is a result-oriented tool in the
armoury of the businessman. It includes people to buy the goods whether
they want or not. It is so persuasive in nature that prospective consumer is
forced to take action in the form of placing of an order.
5) Performing economic function: The technique of advertisement and
publicity not only performs consumption and production function but also
economic one. Influencing production, distribution, employment, price,
demand and supply performs economic function.
Thus today advertisement become a pert and parcel of our life. With the
invention of satellite and television advertising we are getting information about
hundreds of new products and varieties in home only. Tele shopping and Asian
sky shopping not only advertises new products but also deliver them at
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12. doorsteps. Thus entire concept of advertising is now undergoing a radical
change.
 Importance of Advertising:
Advertising plays an important role in modern competitive consumer oriented
marketing. It is a must for facing market competition and for effective marketing of
goods. Advertising is rightly called grand panacea of modern age. It is the
backbone of modern business, which clusters around it. The following factors
suggest the importance of advertising.
1) It creates new market:
Advertising informs to the people about new goods or new models. It
educates people in the utility of the products. Whenever any new product is
found out, it is widely advertised pointing out the benefits and the utility of the
same. Naturally, people who are not aware of the product come to know
about it and start buying it. Thus advertising multiplies wants and opens up
new markets. Advertising actually creates demand for products much before
they are placed in the market. Modern advertising starts before bringing the
product in the market. This creates new demand and new markets for the
products.
2) It encourages production:
Advertising not only creates demand for the new products but also
creates constant demand for the product and maintains the market. Thus, the
market for the product is widened due to advertising and publicity. This
stimulated production and manufacturers are encouraged to improve the
quality of the products. Advertising enables the manufacturer to introduce new
products to the consumers. It encourages to consumers to purchase newly
manufactured products.
3) It reduces price of goods:
Advertising widens market for goods, which induce producers’, undertake
large-scale production. Large-scale production is always cheaper as the
producer enjoys economies of scale. Thus the cost of production per unit is
reduced which again leads to lowering of the prices of goods. Unfortunately
this benefit is generally not given to consumers. On the other hand, the
expenditure on the advertising is also collected from the consumers.
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13. 4) It reduces cost of distribution:
Advertising reduces the cost of distribution as it does away with the
services of a large number of salesmen employed for popularizing the
product. Advertising makes possible mass communication. This reduces the
need of maintaining large number of salesmen for sales promotion.
5) It facilitates better selection of articles:
Through advertisement, the consumer comes to know varieties in a
particular line and the specialities of each variety. It enlightens consumers
about the utility of the product and its uses. The consumer can compare the
utility of various articles. Thus advertising educates consumers and facilitates
better selection of articles. Advertising is useful for removing doubts, false
notions or impressions and prejudices of customers.
6) It provides employment to number of people:
Advertising agencies and publicity organizations provide employment to
number of people. Advertisement is a specialized job and requires services of
artists, painters, cameramen, designers, writers, pressman, commercial artists
and so on. The newspapers also count their living on the advertisements.
Thus directly or indirectly advertising provides employment to millions of
people.
7) It improves quality of products:
Advertisement places before producers’ facts about the availability of different
substitutes. This provides an opportunity to producers to compare the merits
and demerits of different substitutes. The manufacturers can buy better
substitutes and improve the quality of their products. Thus, advertising
contributes to improvement in the quality of product.
8) It promotes goodwill for the organization:
Advertisement helps the organization to build up goodwill for itself.
Advertisement not only speaks about the product but also about the company
i.e., it mentions that these goods are produced by such and such company.
Thus, advertisement crates customers and promotes goodwill for the
organization.
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14. 9) It brings success in competition:
Competition is one feature of present marketing system. The competition
is more intense in the field of marketing of consumer goods. However,
advertisement overcomes the present and potential competition by skillfully
underlining the comparative superiority of the article under consideration.
10) It is a medium of mass communication:
Advertising is regarded as a very powerful medium of mass
communication. Advertisement makes possible publicity on a wide font. For
example, an advertisement given in the “Times of India” appeals to lakhs of
readers. Thus, advertisements appeals to large number of people at one time
and makes them curious about the advertised products. Hence, it is rightly
regarded as a powerful means of mass communication.
11) It has an educative value:
An advertisement possesses educative value. It educates the public in
the correct use of the product they buy. The companies always advertise the
right method of using the product. We often come across advertisements
regarding the methods of using a medicine, the methods of preparing
delicious and tasty dishes and so on. The advertisement regarding blades
tells us that it should not be wiped out while the advertisement of protinex
informs us that it should not be added in the boiled milk. The pictures, figures,
tables, poems used in the advertisement also posses educative element and
provide information to the people.
12) It promotes standard of living:
Advertisement raises the standard of living. It brings to the notice of the
public new products and new models. If the information given in the
advertisement is correct, our wants are more effectively satisfied.
Advertisement informs about better methods of living and maximizes our
satisfaction by making us know a number of new products, which are being
placed in the market.
13) It performs economic functions:
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15. Advertising performs economic function as well. It influences production,
distribution, price, consumption and employment. Advertisement creates new
demand for products. The increased demand naturally results into increased
production of goods. It compels manufacturers to establish new plants and
introduce technological improvements. The advertisement also brings various
products to the notice of the middleman and other dealers, which accelerates
the process of distribution. Similarly by reducing prices and improving quality
of the product it facilitates increased consumption. Further, by maintaining
demand for the product, it brings price stability.
 MEDIA OF ADVERTISING:
We come across a number of ways and means of attracting public attention
to the product. The forms of attracting public attention to products are called
media of advertising. Media is nothing but the means employed in order to bring
advertisement to the public notice. It is the channel through which an advertising
message is conveyed to the people at large. There are different media for
advertising and any suitable media should be selected. The media to be selected
generally depends upon the type of product, the type of buyers to be approached,
cost of advertising, users of the products, selling policies of the organization and
sales territories.
The following are the important media of advertising: -
1. Press advertising
2. Outdoor advertising
3. Radio advertising
4. Television advertising
5. Film advertising
6. Direct mail advertising
7. Internet advertising
1. Press advertising:
Press advertising is the most popular medium of advertising in the
modern competitive marketing. Press advertising means publicity given
through newspapers, magazines, journals and other periodicals. It is no
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16. exaggeration to say that in the absence of press, the art of advertising would
not have acquired its present strength and dimensions. It has been estimated
that in India more than 5000 newspapers printed in all the major languages
spoken throughout the length and breadth of the country. There are national
newspapers, regional newspapers and local papers processing respective
value for various advertising appeals. Similarly we come across different
weeklies, bi-weeklies, monthlies, quarterlies and annuals. There is also a
great deal of specialization among various journals and weeklies e.g.,
technical journals, journals meant mainly for children and females. Wide
varieties of newspapers, journals, magazines are available for advertising and
the advertiser can select a suitable newspaper or journal to attract the
attention of the public.
In the newspapers advertisements of different sizes can be given.
Repetition of the same advertisement is also possible. Some newspapers also
publish colour advertisements. Pictures, slogans, charts, etc. can be added in
the newspaper advertising. Many newspapers bring out special multi-colored
supplements. Wide publicity can be given to the products through such
newspaper advertising. This media of advertising has some merits and
demerits. They are as stated below:
 Advantages / Merits of Press advertising:
I. It facilitates mass appeals. The number of people that can be appealed
through press advertising is very large. Large numbers of national and local
newspapers are regularly published in India. Naturally publicity in different
languages and in all parts of the country is possible through press advertising.
II. Since, its coverage can be estimated there is minimum of wastage.
III. It makes possible variety in advertising appeals as the space for advertising
can be adjusted as per the size of the advertisement.
IV. Its effectiveness can be quickly tested.
V. It has wide coverage. The newspapers and magazines are not only read by
purchasers but are passed on to others and thus, read by a large number of
people.
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17. VI. Advertisement in bold and beautiful type at a prominent place quickly draws
the attention and promotes sales. Colour advertisements in the newspapers
can be given. Such advertisements are very attractive and they attract the
attention of thousand of readers.
VII. It facilitates desired frequency in advertising. Advertisements in the
newspapers can be repeated as per the desire of the advertiser. This
technique of repetition of the same advertisements gives desired effects.
VIII. It makes possible artistic production of advertisement.
IX. An advertisement in a popular newspaper earns confidence of the readers
and this raises the market demand for products.
X. Newspaper advertising is convenient for all types of products and for all
categories of readers. Extensive advertising in possible due to wide coverage
in the circulation of newspapers.
 Disadvantages / Demerits of Press advertising:
I. Press advertising is short lived and is informal in appeal. Readers give limited
attention to press advertisements and even forget after reading the same due
to other activities.
II. It is beneficial only if the bulk of the people are literate and the product offered
for sale has a wide market.
III. It fails to attract the attention of busy and indifferent readers, as they do not
give much attention to the advertisements.
IV. Since, circulation or readership of newspapers cannot be exactly estimated it
leads to wastage in advertising.
V. Changes cannot be introduced quickly in the case of advertisements in
newspapers, monthlies and quarterlies. As a result of this the advertisement
becomes stale by the time it reaches readers.
VI. Newspapers advertisements are not very attractive as the paper used is
inferior in quality and most of the advertisements are in black and white. Thus
attractive and impressive advertising is not possible through press.
VII. Press advertising is expensive as the advertising charges are fast increasing.
Small manufacturers find it difficult to give large advertisements in leading
newspapers due to high advertising charges.
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18. VIII. Newspaper advertising all alone will not be effective. It needs to the supported
by TV or Radio advertising for desired effect.
IX. Press advertising is useful mainly for advertising consumer goods having a
wide market.
2. Outdoor advertising:
Press advertising (described above) is basically indoor advertising as
papers and magazines are generally read indoors. Outdoor advertising is
opposite of this advertising. Outdoor advertising means making advertising
outside i.e. on roads, garden, bridges, railway stations and so on. Outdoor
advertisements even are seen at street corners, railway stations, bus stands
or on moving vehicles. The media for outdoor advertising are posters, painted
displays, electric light signs, car cards, neon signs, bus cards, traveling
displays, sandwich board, sandwich men, advertising in the air, use of
balloons or kites and sky writing. The outdoor advertising is more effective
and occupies key position in the present distributive system. Here, the main
intention is to exhibit the poster etc. at street corners or in the business
locality to attract the attention of people on the road. On posters etc. a short
description of the product or the trademark is given. The posters are short but
the heading or slogan is forceful. People happen to see the advertisement
again and again wherein lies the success of the outdoor advertising.
Moreover, outdoor advertising constantly remains at the fixed place unless it
is removed, replaced or turn out. It appeals to masses and gives prompt
response leading to sales promotion. Outdoor advertising is also called as
“Mural Advertising.”
 Forms of outdoor advertising:
a) Posters:
Poster is one of the most popular forms of outdoor advertising. Poster is a
sheet of paper, cloth or cardboard containing the massage regarding the
product. Posters are normally exhibited on street corners, railway stations,
bus stops, tops of building, market places and other crowded points and
places. Posters make very effective and timely appeal to the viewers and
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19. onlookers. Walls, fences, chimneys, bridges and hills are also used for the
display of posters. The people when they are moving or when they are
passing the vehicles sees posters. Selection of proper site and attractive
colour combinations makes posters popular, impressive and effective. The
posters succeed in the sales promotion if its location is correct. Similarly
posters should be of a proper size. It should be neither too small nor too large.
Its slogan must be brief, attractive, eye catchy and should convey the
massage at a glance. If possible posters should mention important features of
the product along with the illustrations of the product. Proper colour
combination is also necessary for making the poster attractive.
b) Neon signs:
Neon sign is an electronic device used for advertising the product. Neon
signs are glass tubes or signs with electric tube made in the form of letters.
Such neon signs are fixed at crowded places or road junctions or at places
where people have to wait for one reason or the other. Such neon signs may
be either still or of flashing type. Illumination makes them more attractive and
agreeable to consumers. This media is used extensively in European
countries and Japan. Different colors are used in neon signs for attracting the
attention of people. This advertising is costly due to high rent of place used for
fixing the neon sign. Regular maintenance is also necessary. Neon signs are
lighted at night and late in the evening. In order to have eye catchy effect,
different colour combinations are used.
c) Car Cards and Traveling Displays:
Here, cars, buses, trains, delivery vans, etc. are used for the advertising
the products. Advertisements are written on the vehicles or small posters are
prepared on which advertising massage is written. Such posters are then
fixed inside the buses and trains or advertising massage is written on vehicle
itself. This type of advertising is very useful in metropolitan cities like Mumbai
where millions of people are moving from one place to another. When poster
is fixed inside the vehicle, it is called car card whereas when it is written on
the vehicle it is called traveling displays.
d) Sandwich Boards:
Sandwich board is another interesting form of outdoor advertising. In this
form, two advertising boards are joined at one end. It goes without saying that
19

20. advertising massage is written on both the boards. A man (sandwich man)
walks in between the two boards. Obviously people from both the sides of the
road come to know about the advertising massage. This sandwich man puts a
funny dress, walks between the two boards and reads the advertisement
slogan with amusement. He goes on repeating advertising massage again
and again to attract the attention of viewers and passers by. Some local
dealers and retailers make use of elephant or camel for carrying advertising
boards or sandwich boards. This is a cheap method of advertising. It is
popular in the rural and semi urban areas. The influence of such advertising
hardly lasts long.
e) Tall Man Advertising:
Tall man is another device is used for advertising and popularizing
product. Here a man is made to walk on stilts. Due to the use of stilts the
height of the man gets doubled. Such a tall man wears a funny dress and
reads the advertising slogan in an interesting manner. Many a times his dress
suggests the product which he is advertising. He attracts the attention of the
passers by due to abnormal tallness, interesting announcements, and funny
dress. Normally cigarettes manufacturing companies such as Cavanders
cigarettes, use this method for advertising their brands.
f) Umbrella advertising:
In the umbrella advertising, the slogan or the advertising massage is
written on a big umbrella. A person carries this umbrella from place to place.
Sometimes, he sits at a crowded place and goes on revolving the umbrella.
One, who carries the umbrella, puts on a funny dress and goes from street to
street. Such media was popular in the past. Now its use is restricted only to
the local market. Similarly, such advertising is of no use from the viewpoint of
literate people who cannot read the massage. Its effect is rather momentary.
g) Sky Writing or Balloon Advertising:
Skywriting or balloon writing is the latest and the advanced technique of
outdoor advertising and publicity. A balloon is a round shaped, airtight rubber
envelope inflated with a gas, which is lighter than the air. This balloon is then
floated in the air. The advertising massage is impressed on the envelope in
very bold and eye catchy letters. Attractive colour combinations are used to
write slogans on the balloon. In order to impress upon a large number of
20

21. people balloons are kept higher in the sky over the sea beaches or in busy
localities or in upon space frequently visited by people. Some companies
make use of helicopters for carrying banners of which advertising massage or
slogan is written. Smoke writing is another form of outdoor advertising, which
is adjunct to sky writing technique. Here, advertising massage or slogan is
conveyed to people by means of letters formed with the help of smoke. The
influence of this advertising does not last long because such advertisement
can be seen only momentarily. This is natural as smoked letter very soon drift
away as the wind blows.
h) Transit Advertising:
Another form of out-of-home advertising is transit advertising. While
similar to outdoor in the sense that it uses billboards and electronic
messages. Transit is targeted at the millions of people who are exposed to
commercial transportation facilities, including buses, taxis, commuter trains,
elevators, trolleys, airplanes and subways.
Transit advertising has been around for a long time, but recent years
have seen a renewed interest in this medium. Due in part of increased
number of women in the workforce (they can be reached on their way to work
more easily than at home), audience segmentation and the rising cost of TV
advertising, yearly transit ad spending increased from $43 million in 1972 to
over $900 million in 2001. Much of this spending has come from packaged
goods companies such as Colgate, Nestle, and Kraft - General foods that like
transit’s lower costs and improved frequency of exposures. Other retailers,
movie studios, and business-to-business companies have also increased
expenditures in this area.
o Advantages / Merits of Transit Advertising:
I. Exposure:
Long length of exposure to an ad is one major advantage of indoor forms.
The average ride on mass transit is 45 minutes, allowing for plenty of
exposure time. As with airline tickets the audience is essentially a captive one,
with nowhere else to go and nothing much to do. As a result riders are likely
to read the ads – more than once. A second form of exposure transit
21

22. advertising provides is the absolute number of people exposed. About 9
million people ride mass transit every week, and over 9.4 billion rides were
taken in 2001, providing a substantial number of potential viewers.
II. Frequency:
Because our daily routines are standard, those who ride buses, subways and
the like are exposed to the ads repeatedly. If you rode the same subway to
work and back every day in one month you would have the opportunity to see
the ad 20 to 40 times. The locations of stations and shelter signs also afford
high frequency of exposure.
III. Timeliness:
Many shoppers get to stores on mass transit. An ad promoting a product at a
particular shopping area could be very timely communication.
IV. Geographic selectivity:
For local advertisers in particular, transit advertising provides an opportunity
to reach a very select segment of the population. A purchase of a location in a
certain neighborhood will lead to exposure to people of specific ethic
backgrounds, demographic characteristics and so on.
V. Cost:
Transit advertising tends to be one of the least expensive media in terms of
both absolute and relative costs. An ad on the side of bus can be purchased
for a very reasonable cost.
o Limitations / Disadvantages of Transit Advertising:
I. Image factors:
To many advertisers transit advertising does not carry the image they would
like to represent their products. Some advertisers may think having their name
on the side of a bus or on the bus stop bench does not reflect well on the firm.
II. Reach:
While an advantage of transit advertising is the ability to provide exposure to a
large number of people, this audience may have certain lifestyles and/or
behavioural characteristics that are not true of the target market as a whole.
For example, in rural or suburban areas, mass transit is limited or nonexistent,
so the medium ids not very effective for reaching these people.
22

23. III. Waste coverage:
While geographic selectivity may be an advantage, not everyone who rides a
transportation vehicle or is exposed to transit advertising is a potential
customer. For products that do not have specific geographic segments, this
form of advertising incurs a good deal of waste coverage.
Another problem is that the same bus may not run the same route every
day. To save wear and tear on the vehicles some companies alternate city
routes (with much stop and go) with longer suburban routes. Thus, a bus may
go downtown one day and reach desired target group but spend the next day
in the suburbs where there may be little market potential.
IV. Copy and creative limitations:
It may be very difficult to place colorful, attractive ads on cards or benches.
And while much copy can be provided on inside cards, on the outside of
buses and taxis the message is fleeting and short copy points are necessary.
V. Mood of the audience:
Sitting or standing on a crowded subway may not be conductive to reading
advertising, let alone experiencing the mood the advertiser would like to
create. Controversial ad messages may contribute to this less than positive
feeling. Likewise hurrying through an Airport may create anxieties that limit
the effectiveness of the ads placed there.
In summary, an advantage for one product advertiser may be a
disadvantage for another. Transit advertising can be an effective medium but
one must understand its strengths and weaknesses to use it properly.
 Advantages / Merits of Outdoor Advertising:
I. Outdoor advertising appeals to all classes of people due to deep colors,
artistic work and dramatic appeal of a slogan.
II. Since, posters, car cards etc. are displayed for long time, it has got high
circulation value.
III. It facilitates intensive concentration in certain localities wherefrom the demand
for the product is likely to come up.
IV. Its effect is lasting as poster remains fixed at the same place for a
considerably long period and people happen to see it again and again.
23

24. Thus, it makes permanent impression on the public.
V. It forcefully supplements press advertising.
VI. It makes an appeal to all and provides ample scope for the development of
talents, skill and arts.
VII. It covers unpleasant spots and makes them look attractive.
 Limitations / Demerits of Outdoor Advertising:
I. The effect of outdoor advertising cannot be judged.
II. It has a nuisance value and adversely affects the decency of city life. Due to
sticking of posters, public sites and city walls look dirty.
III. The outdoor publicity by itself is not enough as its basic function is to remind
the people. Thus, it needs to be supplemented by other media of advertising
and publicity.
IV. It cannot convey lengthy sales appeal in respect of a product and therefore it
cannot take the place of other popular media of advertising such as press
advertising.
3. Radio Advertising:
In modern times, radio advertising is regarded as an important means of
advertising. Its utility as an advertising, media has been considerably
increased at present. That is why it is known as “commercial broadcasting”.
Today broadcasting stations in all countries of the world attach more
importance to the commercial advertisements. Radio advertising takes the
form of spot announcements or sponsored programs. Spot announcements
are made for a few seconds but they are made in an effective and impressive
tone. Here, the advertiser has to pay advertising charges on the basis of the
words announced or the time consumed. Spot announcements are replaced
two or more times within a day. Sponsored programs consumed more time
and make the programs interesting. Radio advertisements are usually
accompanied by light music or interesting talk. It is advertising by sound and
24

25. voice. A number of programs are broadcast on the radio which include
dialogues, interviews, stories, plays, songs, listeners request and so on. The
advertisements are cleverly inserted and regularly repeated in between the
programs, but they are so arranged that the listeners do not feel the repetition.
Commercial advertising started in India in November 1967 on the All India
Radio by starting “Vividh Bharti” services. Today almost all broadcasting
stations including Mumbai, Delhi, Calcutta, Madras, Pune, Nagpur, etc. have
taken up advertising announcements.
Nowadays people are not giving that much importance to radio as
compare to TV and Internet but because of development in technology they
are using mobile phones or cellular phones. Today there is FM facility in the
mobile phones. This FM is nothing but the most popular radio stations. And
through this FM facility still radio advertising is possible.
 Advantages / Merits of Radio Advertising:
I. Radio advertising makes an appeal to all those who listen to radio programs.
Thus, it reaches to a large number of people. It has wide coverage as
advertising massage goes to millions of people at one time.
II. It is more effective to combined advantage of sound and voice.
III. Due to tape recording facility the programs and announcements can be
repeated any number of times.
IV. It is more appealing as it is personal in approach. Naturally it creates positive
impact on the minds of listeners.
V. It can be intensively concentrated in certain localities by selecting the
convenient broadcasting stations.
VI. Radio advertising is audio and hence suitable foe all categories of listeners
literate and illiterate.
VII. It appeals to all sections of the society and listeners of all types can be
covered. Sponsored programs give the benefit of wide coverage.
VIII. Radio advertising can be made attractive and impressive with the use of
good music, songs, dialogues, interviews and so on.
25

26.  Limitations / Demerits of Radio Advertising:
I. In radio advertising the advertising massage goes only to those who possess
a radio set. It is a costly medium of advertising due to high rates of
advertising.
II. It is not suitable to all types of products.
III. Listeners hardly pay attention to the commercial advertisements unless they
are very effective. It is a common experience that listeners switch off the
radios when the same massage is repeated.
IV. It is difficult to assess the result of radio advertising.
V. It can be heard but cannot be seen. It has audio effect but video effect is not
possible.
VI. Its importance is fast reducing due to the popularity and extensive use of TV
and Internet advertising.
VII. The government and naturally, the advertiser have to follow the rules and
regulations of the government while using this medium of advertising control
radio advertising.
VIII. It may not succeed unless other media of advertising supports it.
4. Television Advertising:
Television advertising is the latest addition to the existing media of
advertising. This is a very sophisticated media of advertising, which is the gift
of science and technology. This media has become very popular in the recent
times due to its greatest attention value at least from the viewpoint of urban
population. The advertisement through TV is very effective as well as
impressive. Its effect is lasting because it is a combination of sight, sound and
motion. TV advertising is very effective because it simultaneously appeals to
the eyes and ears. It facilitates demonstration as well as explanation of the
product. Due to this media, it is possible for the manufacturers to give the
demonstration of his product on the TV set. TV advertising gives the benefit of
salesmanship and publicity. In advanced countries like America, England, and
Japan TV advertising is very popular and common. In India also in becoming
very increasingly popular. TV advertising may be in the form of spot
26

27. announcements or short films shown between TV programs and sponsored
programs. TV advertising is an impressive and effective medium because it
makes positive impact on the viewers. TV advertising is superior to Radio
advertising and film advertising, as it is an audio and visual in the character.
Naturally it gives the benefits of advertising and salesmanship. It has a strong
appeal especially for the younger generation. The introduction of colour
television network and satellite channels has given new dimension to TV
advertising.
 Advantages /Merits of Television Advertising:
I. TV advertising enjoys the benefit of salesmanship and publicity. It facilitates
the explanation of the product along with its demonstration. TV advertising is
extremely impressive due to the audio-visual benefits.
II. It gives personal touch in advertising and the massage goes directly to every
person looking at TV.
III. It possesses greatest attention value.
IV. Due to recording facility, spot announcement and sponsored programs can
be repeated any number of times.
V. TV advertising can be heard without any exertion. A person can enjoy
television programs while doing his work.
VI. It is flexible in the sense that advertisement can be intensively done only is
certain locality by selecting suitable transmission center.
VII. It raises the status of product selected for advertisement.
VIII. It gives quick benefit to the advertiser in the form of new customers and
more sales.
 Limitations / Demerits:
I. TV advertising is the costliest media and therefore it is beyond the reach of
small manufacturers or advertisers.
II. Due to limited range of telecasting it does not succeeding in approaching all
prospects. Thus it makes an appeal to a limited number of people.
27

28. III. It interferes with the entertainment of the listeners and possesses nuisance
value. Listeners get bored and irritated on account of repetitions of spot
announcements. Listeners even start programs only when the advertisements
of the sponsorer are over.
IV. TV advertising is extremely costly. Big companies which can spent lakhs of
rupees on advertising can use it. Services of experts are also necessary for
TV advertising.
V. There is heavy rush on TV advertising and booking of specific time for
advertising is rather difficult. Advertising at a wrong time may not be effective.
VI. TV advertising covers small area. It makes appeal to a limited number of
prospects. There is lot of wastage when advertisement is given at a wrong
time.
VII. Selection of program that will appeal to all categories of people and also of all
age groups is rather difficult. This restricts the coverage of the prospects.
VIII. Fast advertising of many products within a short period affects the advertisers,
as they do not get the desired effect. Viewers simply forget all advertisements
given quickly one after the other.
5. Film Advertising:
Film advertising is completely new medium of advertising. Here, the
advertising films are specially prepared for advertising the product. Such
slides and propaganda films are shown on the screen in theaters and at other
entertainment places including railway stations, parks, etc. big concerns
advertise through slides. The advantage of advertisements made in theaters
is that there is no necessity of searching an audience. The films are also
exhibited at places like hotels, gardens, railway stations, clubs, fairs and
exhibitions. Film advertising is appeals to the eyes and ears both and
produces expected impact on the minds of the audience. It possesses
greatest attention value and carries the sales massage to big audience.
Advertising films are of different types, which include technical films,
educational films, institutional films and narrative films. Film advertising caters
to the requirements of all and usually produces desirable results.
28

29.  Advantages / Merits of Film Advertising:
I. Film advertising possesses the greatest attention value and appeals to a
large number of prospects simultaneously. Thousands of people go to see
movies everyday and advertising massage reaches to all these people vary
effectively.
II. It is more impressive as it simultaneously appeals to eyes and ears both.
III. It inspires confidence of dealers by clearly explaining the technique of
production.
IV. It is convenient to bring to the notice of the public the manufacturer and
distributors who own and manage the business.
V. It is more elastic. Advertising films can be shown in all parts of the country or
in few cities depending upon the distribution of prospects.
VI. It removes language barriers and appeals to all, whether educated or
uneducated, male or female, young or old.
VII. It is suitable for advertising consumer goods of daily use including soap,
washing powder, toothbrush, cosmetics and so on.
VIII. The advertiser can make an appeal directly to the prospects. He can bring
personal touch in his advertisement.
IX. Film advertising has educative value. It can give information and knowledge
to viewers along with advertising massage.
 Limitations / Demerits of Film Advertising:
I. Film advertising is a costly media of advertising. The production of films is
very expensive and only rich concerns can afford it.
II. It interferes with the entertainment of the people and possesses nuisance
value.
III. It usually appeals to limited number of people staying in urban areas and does
not reach to rural population.
IV. The available experience shows that people hardly take any interest in looking
at films prepared for advertising. Usually people go out of the theaters at the
time when advertisements are shown and return for the main show.
6. Direct Mail Advertising:
29

30. In direct mail advertising the advertising massage is sent to the prospects
directly through post. The services of post offices are utilized for distributing
advertising material among prospects. Since it dispatches advertising material
through post, it is called “direct mail advertising”. It directly appeals to the
persons for whom it is meant and facilities personal touch. It is an effective
medium if it is properly planned and executed. Direct mail advertising is
possible through the following media. –
a) Letters and circulars
b) Leaflets and folders
c) Catalogues and booklets
d) House organs and bulletins
e) Samples, calendars and novelties
f) Dealer aids.
 Advantages / Merits of
Direct Mail Advertising:
I. Direct mail advertising facilitates personal touch and satisfies the individual
ego of the prospective buyer.
II. It is more effective as the advertising massage directly goes to the person for
whom it is meant. Moreover the massage reaches the prospects at the
convenient time.
III. It facilitates elaborate explanations and presentations of statistical information.
It clearly explains advertising massage, its utility and its superiority over other
products.
IV. It is possible to judge its impact on prospects.
V. It establishes permanent relations with the customers.
 Limitations / Demerits of Direct Mail Advertising:
I. Preparation of reliable mailing list is cumbersome and difficult.
II. If the mailing list is not up – to – date, there is considerable wastage in
advertising efforts and sales may not be promoted.
III. It is costlier media of advertising and reaches to a comparatively smaller
number of persons.
IV. Advanced printing of sales literature makes it stale and even out of order.
30

31. 7. Internet Advertising:
Anyone who has followed the Internet industry over the last decade has seen
an amazing series of events. Moving from a medium with almost no presence in
the marketing environment to one that was the center of attention, the Internet
experienced a boom that unfortunately became a bust. What some marketers
thought would be the “be all and end all” of communications has now become a
puzzle waiting to be solved, as many marketers have yet to discover what role
the Internet will assume in their communications program.
Some companies have apparently solved the puzzle and have effectively
integrated the Internet into their marketing communications programs. Others
have been successful as well, particularly when they view the internet as a
component of the integrated marketing communications program and not as the
only tool required for success.
 Defining the Internet:
The Internet is a worldwide means of exchanging information and
communicating through a series of interconnected computers. It was started as a
U.S. Defense Department Project, but it is now accessible to anyone with a
computer and a modem. While the most popular component of the Internet is the
World Wide Web (www). There are many features of web. For marketers, a
number of these features offer potential, but it is the Web that has developed as
the commercial component.
In today’s Internet world, a company can immediately pull up the product and
service offerings of a provider, without having to make a phone call or wait for a
salesperson to visit. In turn, the same company can reach thousands of potential
customers that it would not have been possible to reach without a website – at a
significantly reduced cost.
 Web Objectives:
When major corporations first began to conduct business on the Internet,
they put up websites primarily for information purposes. Companies like Pepsi
and Coca Cola had sites that were really not much more than online catalogues
designed for information purposes only. The role of websites quickly changed,
31

32. however; sites have become much more creative, promoting brand images,
positioning and offering promotions, product information and even products for
sale. With the introduction of Java in 1995, it became possible to create fancier
graphics, audio and animation online. This resulted in marketers utilizing the
Internet in an entirely new way, moving beyond the purely informational role. The
objectives of disseminating information still remains but additional
communications and sales objectives are now being pursued.
 Advertising on the Internet:
Like broadcast or print the Internet is an advertising medium. Companies and
organizations working to promote their products must consider this medium as
they would television, magazines, outdoor and so on. Advertising of Internet
employs a variety of forms.
1) Banners:
The most common form of advertising on the Web is banner ads. Banner
ads may be used for creating awareness or recognition or for direct marketing
objectives. Banner ads may take on a variety of forms as well as a number of
names such as side panels, skyscrapers or verticals. Initially banner ads
constituted the vast majority of advertising on the Net, but studies indicating their
questionable effectiveness have led to a decline in usage. Reports on click
through rates vary, but most studies indicate a less than 1% response rate. A few
studies have shown an increase in response rates in recent years. These findings
may lead to increased use of this method of advertising in the future.
2) Sponsorships:
Another common form of advertising is sponsorships. There are two types
of sponsorships. “Regular sponsorships” occur when a company pays to sponsor
a section of a site. A more involved agreement is the content sponsorship; in
which not only provides dollars in return for name association but participates in
providing the content itself. In some cases, the site is responsible for providing
content and having it approved by the sponsor; in other instances, the sponsor
may contribute all or part of the content. Due in parts to the lack of effectiveness
of banner ads, sponsorships have been increasing in popularity.
32

33. 3) Pop -ups / Pop -Unders:
When you access the Internet, have you ever seen a small window appear
on Netscape advertising AOL’s “Instant Messenger”? Such windows are known
as pop- ups, and they often appear when you access a certain site. Pop-ups are
usually larger than a banner ad but smaller than a full screen.
Pop-unders are ads that appear underneath the Web page and become
visible only when the user levels the site. Go to Los Angels Times Website and
when you leave you will almost certainly see an example of this form of
advertising.
4) Interstitials:
Interstitials are ads that appear on your screen while you are waiting for a
site’s content to download. Although some advertisers believe that interstitials are
irritating and more of a nuisance than a benefit, a study conducted by Gray
Advertising found that only 15% of those surveyed felt that the ads were irritating
(verses 9% for banner ads) and that 47% liked the ads (verses 38% for banners).
Perhaps more importantly, while ad recall of banner ads was approximately 51%,
recall of interstitials was much higher, at 76%. Recently Acura introduced its
Integra Type R model using an interstitial. Coca Cola commonly employ this ad
form.
5) Push Technologies:
“Push technologies or web casting technologies” allow companies to “push “
a massage to consumers rather than waiting for them to find it. Push
technologies dispatch web pages and news updates and may have sound and
video geared to specific audiences and even individuals. For example, a
manager whose job responsibilities involve corporate finance might log on to his
or her computer and find new stories are automatically there on the economy,
stock updates or a summary of speech by Alan Greenspan. Advertisers who flash
their messages on the screen pay for the service.
 Display of goods:
 Meaning of display:
33

34. As a supplement to advertising goods are displayed in the showcases in
crucial areas or in the shop itself. The purpose is to attract the attention to the
articles available in the shop. Display means the act of putting something on
view. In the business world, display means arranging samples of products and
new arrivals in an attractive and eye catchy manner. It is an art of skillfully
arranging products so that passers by cannot resist the temptation of visiting the
shop. Proper display of goods appeals to buying motives of people and induces
them to visit the shop and to buy the goods. Display of goods means arranging
selected goods in an attractive manner just on the front side of the shop and also
inside the shop at convenient places. It is a supplement to the advertising and
acts as a sales promotion technique. Display of goods can be made attractive,
impressive and eye catchy with the help of neon signs, rotating stands and other
decorative material. Display includes attractive window display, interior
decoration, arrangement of goods in showcases and near the counters. Display
is an invitation to people to visit the shop. “New arrivals” are shown to people
through displays. Display of goods is now, treated as a part and parcel of
publicity campaign of manufacturers and retailers. Window display is a quite
common in the case of all retail shops. Thus, display is nothing but arranging
samples of products in an attractive manner with the object of bringing it to the
notice of the people at once. It is a selling technique of arranging the goods in
eye catching and attractive manner so as induce people to buy goods. Display
may be made in the windows of the shop or at the railway station or bus stations
where large number of people are coming and going. The main object of display
is to attract the attention of passers by.
Manufacturers undertake display of their goods or products at their own
premises or at their sales offices. Sometimes, big manufacturers and retailers do
displays through showcases or boxes at the railway stations, bus stations and at
other busy and crowded places. Display gives an idea about the goods available
in the shop. It is realistic in nature and hence more effective. Display of goods is
an expensive activity but is essential in the present competitive marketing.
Expenditure on the display of goods is a profitable investment for more
customers and more sales.
 Importance of Display of Goods:
34

35. Display of a goods is important in modern consumer – oriented marketing. It
is an essential supplement of salesmanship as it prepares proper background for
salesmanship. The fact that each and every shop – keeper uses this technique
indicates its importance in sales promotion. Display is rightly treated as near
direct salesmanship. In big self-service shops it does the work of salesmanship.
Sometimes, manufacturers provide display material to retailers for publicity
purpose. The psychology of consumers is also favorable to display of goods.
Many customers enter in the shops and ask for articles as per the samples
displayed. Thus, attractive display fetches more of the would be customers and
promotes sales. It makes an instant appeal to the eyes of “would be” customers.
In brief, display of goods is a publicity and sales promotion technique. It is a
specialized job. Attractive display needs artistic mind, imagination and knowledge
of human psychology.
 Advantages of Display of Goods:
I. Attracting attention:
Display of goods attracts the attention of the passers by. Naturally it has
greatest attention value. It induces outsiders to visit the shop. It appeals to the
eyes of passers by and induces them to step into the showroom.
II. Reminding the exact needs:
It reminds customers of their needs and requirements. This encourages
them to purchase goods. It serves as the reminder to the customer of their
exact needs.
III. Helping advertisement and salesmanship:
It has got maximum attention and advertising value. It serves like silent
salesman. It acts as an aid to advertising and salesmanship.
IV. Helping the buyers:
Display of goods enables the customers to see for him features, colour,
size, shape etc. of the product before buying decision is taken. It enables the
buyers to take rational decisions about the purchasing.
35

36. V. Helping the sellers:
It supplements of manufacturers, salesman and increases confidence of
dealers and distributors of the product. It not only increases turnover but also
the dealer’s confidence in the sale ability of the product.
VI. Individuality to the product:
It not only gives distinct identity to retail store but assure the producer that
due publicity of his product is being done for better sales performance. Thus
display gives distinct identity to the product and the manufacturer.
VII. Sales promotion:
Display of goods is an important dealer aid as dealers are convinced
about the advantages of stocking goods of specific wholesalers and
manufacturers.
 Forms of display:
Display of goods is possible in different ways. Forms of display means the
methods and techniques used for the display of goods. These forms or methods
of display are as follows:
FORMS OF DISPLAY
(1) (2) (3) (4) (5) (6)
Window Sign Boards Interior Showcases & Trade Exhibitions
Display on shop front Display Show Rooms Fairs
Solus Related
Display Display
36

37. 1) Window Display:
Window display is a modern technique of advertising and publicity. Window
means the front position of the shop. Window display means keeping samples of
new arrivals attractively in the front portion of the shop. Through such window
display, goods are brought to the notice of perspective buyers. The attention of
people moving on the road is diverted towards the shop due to window display. It
is an attractive exhibition of goods in the front side of shop. Such display gives
maximum view of the goods to the outsiders for the roadside. This creates
attraction in the minds of prospects and they are encouraged to enter the shop.
The selection of proper side for window display is very important. The display
also needs periodically changes. The use of attractive lighting, decorative
material, rotating stands etc. makes window display more attractive. It is vital
factor affecting sales. Window display is economical and useful form of
advertising especially in retail trading. Window displays sell more than what they
cost. In window display consumers are not only shown goods bit are made
familiar with them. Window display technique is used effectively in big cities like
Mumbai and Delhi. This kind of silent salesmanship can be made more effective
trough the use of new technique including the use of electronic devices. The
responsibility of window display should be given to one who knows the art of
salesmanship.
Followings are the essentials of an effective window displays:
a) A window should be rectangular. This means it should have more width and
less height. This enables passers by to see the sample at a glance.
b) The frame of the window should not be very eye catchy. It should focus
more attention on the product than on frame of the window.
c) The glass of window should be thick as well as transparent. This will enable
the visitor to have proper look at the product and also keep the product safe.
d) There should be proper lighting arrangements. Proper colour combinations
should be used to make it impressive and appealing. Colors should not be
very goody and glaringly bright. They should be soft and compatible with
one another making pleasant appeal on visitors.
e) The window glass must be daily cleaned so as to display of product should
be changed periodically.
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38. f) There should not be over crowding of product in the window. Only a few
novelties and new arrivals should be displayed at the window to attempt the
passer by.
g) Price tags should be attached to the product. Price tags should be avoided
in case of very costly products.
Window displays are of two types:
i. Solus display
ii. Related display
i. Solus display:
In the case of solus display, only one article is displayed in an attractive
manner. Here, prominence is given to the display of single article. The article
displayed in ultra modern and has some outstanding merits and features.
Normally in the jewellery shop we find solus display of a diamond ring or diamond
necklace. Nowadays-even dealers dealing in watches also display new watches
and bracelets in their window in a very eye catchy manner. At present Titan and
Fast track people are using this technique on massive scale.
ii. Related display:
In related display the prominency is given to the display of a few related products
for example, during rainy season umbrellas, raincoats, gum- boots etc. are
displayed side by side to attract the attention of passers by. Similarly a shop
dealing in products exclusively used by ladies display in a window so that each
product advertisers the other and also facilitates the convenience of consumers.
We often come across window display of a lady wearing beautiful saree,
jewellery, and also with sophisticated cosmetics around.
2) Sign Board an shop front:
Signboard on shop front is another important form of display for sales
promotion. Proper signboard gives identity to the dealer and the shop. The size,
design, lettering of the signboard should be carefully designed. It depends upon
the number of factor like the size of the shop, the locality in which shop is located
and the signboards prepared by the competitor in the vicinity.
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39. The board on the shop front should be unique and it should be capable of
distinguishing shop from that of competitors in the vicinity. It has immediate
impact on the customers and shop also gets the identification. Therefore because
of advertising particular shops indirectly products can be advertised. For example
if a girl always goes to a particular cosmetics shop because of its popularity then
automatically she always try to purchase cosmetics from that shop only. Indirectly
it is profitable to those brands companies because they can indirectly advertise
their products in that shop.
3) Interior display:
Interior display is one of the techniques of internal advertising and publicity.
Interior display is an attempt to arrange article in an artistic and attractive manner
within the shop premises. New arrivals, posters, boards, etc. are arranged at
convenient place to attract the attention of customers. Goods are also kept in an
attractive manner in showcases and stands. The purpose of interior display is to
attract the attention of customers to various articles available in the shop. Interior
display is not useful to attracting the attention of outsiders. It is a supplement to
window display and creates a pleasing impression on the customers. It creates
an impression of orderliness, neatness and efficiency. Special attention is given
to interior display in big retail shops like departmental stores. Frequent changes
are made in the interior display for attracting the attention of customers. Interior
display should systematic and decent. It should be decorative as well as
functional but should not disturb the free movement of salesmen and customers.
It should facilitate easy picking and should be free from dust and dirt. Many
manufacturers supply display material to small retailers for publicity purpose. For
interior showcases, counters, lighting arrangements, posters, etc. are useful.
Interior display is a type of interior decoration. It creates pleasing atmosphere in
the shop. Modern interior display is attractive, space saving and convenient to
salesman and customers.
4) Showcases and Showrooms:
Showcases are nothing but cases made up of glass doors. They are used for
the display of goods within the shop. Customers can easily see articles kept in
showcases. Such cases are used for interior decoration and display of goods.
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40. Nowadays we observes such showcases at railway platforms and bus stations
where ready made garments, footwear, etc. are displayed. The showcases are
usually of attractive designs and are well protected by glass covers. The
showcases act as silent salesman. They are similar to window display but are
kept inside the shop. They are convenient for the display of small household
goods.
Showrooms are used not only to display goods but also to demonstrate the
uses of an article. They provide an opportunity to the buyers to examine the
goods closely. Such demonstration is necessary in the case of costly goods and
machines. For FMCG these showrooms are not that much beneficial as compare
to shops. They are useful for industrial goods like bikes, TV, refrigerators.
5) Trade Fairs:
In the olden days regular markets had not come into existence. In the
absence of regular markets, consumers were finding it very difficult to buy
essential commodities. Hence to offer them convenience of buying, fairs were
periodically held at certain places. At such fairs a large number of people used to
come together which provided an opportunity to traders to sell their goods. In
order to attract a number of people business used to organize fun fair activities
and stage dramas and other entertainment items. Thus, in the olden days trade
fairs were organized to provide marketing facilities to people. Even today such
fairs are very common in backward states of India where regular markets do not
exist for consumer and industrial goods. It provides an opportunity to people to
buy novelties not available in the local markets.
In market times such ancient fairs have been replaced by commercial and
industrial fairs, which are organized elaborately. Like ancient fairs here also we
find fun n fair and entertainment activities. However, they are business oriented
and considerable business activities are conducted at such fairs. Trade fairs can
be regarded as a powerful sales promotion tool. At such industrial, commercial
and agricultural fairs different stalls are constructed and given to leading
enterprises for displaying their goods. Even government organizations participate
in trade fairs for displaying the products of state enterprises. Today, fairs are
being organized at national or even at international level.
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41. 6) Exhibitions:
In order to display latest innovations exhibitions are now quite common in the
field of business and industry. Trade associations and chambers of commerce
generally organize trade exhibitions. This also be sponsored jointly by two or
more industrial and commercial enterprises. The object of a trade exhibition is to
display latest innovations and demonstrate their merits. The exhibitions provide
first hand information about the product displayed. They are useful in introducing
new products and in educating people about the new uses of the product. Sales
literature is supplied to visitors and an arrangement is made of demonstrations. It
helps in popularizing the product to a great extent. Hence, leading industrialists,
businessmen and manufacturers actively participate in the exhibition. It also
facilitates image building and provides an opportunity to study competitor’s
products, its technical specialties, sales techniques etc. Thus, healthy
competition is promoted through industrial exhibitions. The customers are also
enabled to compare goods of different manufacturers, which results into wise
selection of the product. Thus, exhibition widens market for goods and help in the
sales promotion.
In order to organize exhibitions, the sponsors hire a large vacant plot and the
required space is rented out to the interested parties for displaying their products.
In advanced countries sponsors of the exhibitions provide complete data
regarding visitors who generally visit the exhibitions. On the basis of this
information the firm can take decisions regarding participation and display
strategy. The work of designing the exhibits is generally entrusted to experts in
the line. In order to be effective, the exhibits selected by the firm should be
attractive and should arouse the interest and satisfy the curiosity of the visitors.
The articles are arranged artistically and with imagination so as to impress upon
the minds of the visitors. Suitable lighting arrangement is made to make the
product look attractive. The artists make optimum use of electronic devices and
dramatic appeal. To clear the doubts and explain the features and utility of the
product salesmen are appointed by the staff holders. The salesmen selected are
competent courteous and have complete information of the product and its
specialties. It must be pointed out here that the participation in the exhibition is a
costly affair. Stalls are rented out fabulous rent and organizing expenses are also
high. But such expenses are more than compensated in the long run by high
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42. turnover and profit for the organization. Hence, the business enterprises should
take into account gain in the long run and actively participate in the exhibition. It
not only assists in advertising but also facilitates study of innovations, latest
developments, competitor’s products, its superiority and the sales techniques
adopted by the rivals.
Indian government is also encouraging various exporters to participate in
exhibitions in order to promote India’s exports. Various facilities and concessions
are given to the exporters for participating in the exhibitions. Participation of
exporters in fairs gives wide publicity to Indian goods abroad and effective
demand is created. The government of India have created a separate directorate
named ‘Directorate of exhibitions’ to deal with matters related to participation in
exhibition. The directorate encourages Indian manufacturers to participate in
international exhibitions, arranged exhibitions of Indian goods abroad and opens
showrooms at leading industrial and commercial centers. Participation in
international fairs and exhibitions is arranged through ministry of Foreign Trade
and the Indian Council and Commodity Board also origins or participate in
specialized fairs or exhibitions abroad.
 Brand Management Systems:
Brand management systems are divided into two parts.
♫♫ Centralized system
♫♫ Decentralized system
♫♫ Centralized System:
A centralized organizational system is often used when companies do not
have many different divisions, product or service lines or brands to advertise.
Many companies prefer a centralized advertising department because developing
and coordinating advertising programs from one central location facilitates
communication regarding the promotions program, making it easier for top
management to participate in decision-making. A centralized system may also
result in a more efficient operation because, fewer people are involved in the
program decisions and as their experience in making such decisions increases,
and the process becomes easier.
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43. At the same time, problems are inherent in a centralized option. First it is
difficult for the advertising department to understand the overall marketing
strategy for the brand. The department may also be slow in responding the
specific needs and problems of a product or brand. As companies become larger
and develop or acquire new products, brands or even divisions, the centralized
system may become impractical.
♫♫ Decentralized System:
In large corporations with multiple divisions and many different products, it is
very difficult to manage all the advertising, promotional, and other functions
through a centralized department. These types of companies generally have a
“decentralized systems”, with separate manufacturing, research and
development, sales and marketing departments for various divisions, product
lines or businesses. Many companies that use a decentralized system, such as
Procter & Gamble, Gillette Co. and Nestle, assign each product or brand to a
brand manager who is responsible for the total management of the brand,
including planning, budgeting, sales and profit performance.
Decentralized brand management system
---------
Ad agency
Sales promotion
Package design
Merchandising
43
Corporate
Finance
Brand Manager
Sales Product
management
Advertising
department
Brand Manager
Marketing
services
Production Marketing R & D Human
Resources
Marketing
research

44. Ad agency
Ad agency
A Procter & Gamble division using the category management
system
44
Vice president - Packaged soap
and detergent division
Brand Manager
Dishwashing
products category
general manager
Advertising managers
(Each category manager will have one or more advertising
managers reporting to him or her for each specific brand,
e. g., Tide advertising manager, Cheer advertising manager.)
Specialty products
category general
manager
Laundry products
category general
manager
Associate advertising managers

45.  ADVERTISING AGENCY:
 Meaning of an Advertising Agency:
Advertising agency is nothing but an organization specially created for
rendering service in advertising. It is ‘an organization where business consists in
the acquisition as a principal of the right to use space or time in advertising media
and the administration on behalf of the advertisers of advertising appropriations
made by them’. It is independent firm set up to render specialized services about
marketing in general and advertising in particular.
It is primarily organized to render advice and creative services for its clients.
It sells creative talents and sees to it that advertising message goes to masses in
an effective manner. It has writers, media-experts researchers; television
producer’s etc. whose main work is to plan suitable advertising strategy for their
clients. A modern advertisement, which we see and hear in the regional and
national media. An advertising agency represents the care of the advertising
profession.
The American Association of Advertising Agencies (AAAA) define
Advertising Agency as ‘an independent business organization, composed of
creative and business people, who develop’ prepare and place advertising media
for seller for their goods and services.
 Role of Advertising Agency:
In modern times advertising agency broadly performs the function of
marketing and advertising. The function performed by advertising agencies might
be conducted by the clients themselves through one of the designs but most
large companies use outside firms.
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Brand managers
Assistant brand managers

46. ☻ Reasons for using an agency:
Probably the main reason outside agencies are used is that they provide
the client with the services of highly skilled individuals who are specialist in
their chosen fields. An advertising agency staff may include artists, writers,
media analysts, researchers and others with specific skills, knowledge and
experience who can help market the client’s products. Many agencies
specialize in a particular type of business and use their knowledge of the
industry to assist their clients.
An outside agency can also provide an objective viewpoint of the market
and its business that is not subject to internal company policies, biases or
other limitations. The agency can draw on the broad range of experience it
has gained while working on a diverse set of marketing problems for various
clients.
☻ Marketing services:
Over the past two decades, use of marketing services has increased
dramatically. One service gaining increased attention in research, as agencies
realize that to communicate effectively with there client’ customer, they must
have good understanding of the target audience.
Most full service agencies maintain research department whose functions is
to gather, analyze, and interpret information that will be useful in developing
advertising for their clients. This can be done through primary research _ where a
study is designed, executed, and interpreted by the research department _ or
through the use of secondary sources of information. Sometime the research
department acquires studies conducted by independent syndicated research
firms or consultants. The research staff then interprets this report and passes on
the information to other agency personal working on that account.
The research department may also design and conduct research to pretest
the effectiveness of advertising the agency is considering. For example, copy
testing is often conducted to determine how messages developed by the creative
specialists are likely to be interpreted by the receiving audience.
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47. The media department of an agency analyzes, selects, and contract for
space or time in the media that will be used to deliver the client advertising
message. The media department is expected to develop a media plan that will
reach the target market and effectively communicate the message. Since most of
the client ad budget is spend on media time and / or space, this department must
developed a plan that both communicates with the right audience and is cost –
effective.
The research and media department perform most of the function that full-
service agencies need to plan and execute their client advertising programs.
Some agencies offer additional marketing services to their client assist in other
promotional areas. An agency may have a sales promotion department, or
merchandising department, that specializes in developing contests, premiums,
promotion, point of sale materials, and other sale materials. It may have direct
marketing specialist and package designers, as well as a PR/ publicity
department. Many agencies have developed interactive media department to
create websites for their client. The growing popularity of integrated marketing
communication has prompted many full- function agencies to develop capabilities
and offer services in these other promotional areas. IMC Perspective 3-1
discusses how traditional advertising agencies are developing integrated
marketing capabilities that extend beyond media advertising.
☻ Creative Services:
The creative services department is responsible for the creation and
execution of advertisements. The individuals who concave the ideas for the ads
and write the headlines, subheads, and body copy are known as copywriters.
They may also be involved in determining the basic appeal or theme of the ad
companies and often prepare a rough initial visual layout of the print ad or
television commercial’s.
While copywriters are responsible for what the message says, the art
department is responsible for how the ad looks. For print ads, the art directors
and graphic designers prepare layouts, which are drawings, that shoe what the
ad will look like and from which the final artwork will be produced. For TV
commercials, the layout is known as a storyboard, a sequence of frames or
panels that deceits the commercial in still form.
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48. Members of the creative department work together to develops ads that will
communicate the key points determined to be the basis of the creative strategy
for the client’s product. Writers and artists generally work under the direction of
the agency’s creative director, who overseas all the advertising produced by the
organization. The director sets the creative philosophy of the department and
may even become directly involved in the creating ads for the agency’s largest
clients.
Once the copy, layout, illustrations, and mechanical specifications have been
completed and approved, the ad is turned over to the production department.
Most agencies do not produce actually finished ads; they hire printers, engravers,
photographers, typographers and other suppliers to complete the finished
product. For broadcast production the approved storyboard must be turned into
the finished commercial. The production department may supervise the casting of
people to appear in the ad and the setting for the scenes as well as choose an
independent production studio. The department may hire an outside director to
turn creative concept into a commercial. For example, several companies like
Nike and Kmart, have used film director Spike Lee to direct their commercials;
Airwalk shoos has used John Glen, who directed many of the James Bond films,
for its TV sports. Copywriters, art directors, account managers, people from
research and planning and representatives from the clients side may all
participate in production decisions, particularly when large sums of money are
involved.
Creating an advertisement often involves many people and takes several
months. In large agencies with many clients, coordinating the creative and
production processes can be major problem. A traffic department coordinates all
phases of production to see that the ads are completed on time and that all
deadlines for submitting the ads to the media are met. The traffic department may
be located in the creative services area of the agency, or be part of media or
account management or be separate.
☻ Management and Finance:
Like any other business an advertising agency must be managed and
perform basic operating and administrative functions such as accounting , finance
and human resources. It must also attempt to generate new business. Large
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49. agencies employ administrative, managerial, and clerical people to perform these
functions. The bulk of an agency’s income (approximately 64%) goes to salary
and benefits for its employees. Thus, an agency must manage its personnel
carefully and get maximum productivity from them.
☻ Agency Organization and Structure:
Full function advertising agencies must develop an organizational structure that
will meet their clients’ needs and serve their own internal requirements. Most
medium size and large agencies are structured under either a departmental or a
group system. Under the departmental system, each of the agency functions is
set up as a separate department and is called on as needed to perform its
specialty and service all the agencies clients. Ad layout, writing and production
are done by creative department, marketing services is responsible for any
research or media selection and purchases and the account services department
handles client contacts. Some agencies prefer the departmental system because
it gives employees the opportunity to develop expertise in servicing a variety of
accounts.
 The Future of Agency Compensation:
There is no one method of agency compensation to which every one
subscribes. The recent ANA (Association of National Advertisers) survey
found that nearly half of advertiser made significant changes in their
compensation plans in the past 3 years, while 21% plan more changes soon.
One of the most significant findings from the recent ANA survey is the rapid rise
in incentive based compensation agreement, as 35% of advertisers are using
some type of performance based system versus only 13% 10 years ago.
As more companies adopt IMC approaches, they are reducing their reliance
on traditional media advertising and this is leading to changes in the way they
compensate their agencies. For example, Procter & Gamble, which has
traditionally been a heavy user of television advertising, was one of the largest
major advertisers to move away from the standard 15% commission system. In
2000 P&G implemented a major change in its compensation structure from one
based entirely on media commissions to one based entirely on sales based
incentives. One of the reasons for the change in P&G’s compensation system is
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50. to encourage agencies to focus less on expensive commissionable media such
as television and magazines and make use of other IMC tools such as direct
mail, event marketing, public relations and the Internet. P&G joins a list of other
major consumer products advertisers such as Colgate- Palmolive, Unilever and
Campbell soup that have changed their systems to more closely link agency
compensation to a product’s performance in the market.
Many companies are changing their compensation systems as they move
away from traditional mass media and turn to a wider array of marketing
communication tools. They are also trying to make their agencies more
accountable and reduce agency compensation costs. However advertisers must
recognize that their compensation policies should provide agencies with a
responsible profit if they want quality work and the best results from their
agencies.
Use of Performance Incentives by Advertisers
Performance Criteria Used for Incentive Systems
Sales goals 73%
Market share 29
Profit 25
Brand / ad awareness 50
Brand perceptions 23
Copy test results 25
Performance reviews 58
Other criteria 11
Basis for Incentive
Agency performance 14%
Company performance 17
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51. Both agency & company performance 69
Performance Incentive use by size of advertiser
Under $4 million 13%
$4 million - $20 million 10
$20 million - $100 million 33
More than $100 million 44
Source:
Association of National Advertisers: Trend in Compensation Survey: 2000
 Evaluating Agencies:
Given the substantial amounts of money being spent on advertising and
promotion, demand for accountability of the expenditures has increased. Regular
reviews of the agency’s performance are necessary. The agency evaluation
process usually involves two types of assessments, one financial and operational
and the other more qualitative. The financial audit focuses on how the agency
conducts its business. It is designed to verify costs and expenses, the number of
personnel hour charged to an account and payments to media and outside
suppliers. The qualitative audit focuses on the agency’s efforts in planning,
developing and implementing the clients advertising programs and considers the
results achieved.
There are a number of reasons clients switch agencies. Understanding these
potential problems can help the agency avoid them. In addition, it is important to
understand the process agencies go through in trying to win new clients.
 Why agencies lose clients?
Some common reasons agencies lose clients are as follows:
I. Poor performance or service:
The client becomes dissatisfied with the quality of the advertising and / or the
service provided by the agency.
II. Poor communication:
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