INDEX
ADVERTISING – AN OVERVIEW
WHAT IS ADVERTISING?
DEFINITION
ORIGIN AND GROWTH OF ADVERTISING
KINDS OF ADVERTISING
ACTIVE PARTICIPANTS IN ADVERTISING
ROLE OF ADVERSTISING
ADVERTISING PLANNING FRAME WORK
THE ADVERTISING FRAMEWORK
ROLE OF ADVERTISING IN MARKETING MIX
ETHICS IN ADVERTISING
ADVERTISING AGENCY
CONSIDERATIONS - CHOICE OF AN ADVERTISING
AGENCY
ADVERTISING AGENCY AND ITS WORKING
QUESTIONNAIRE
MUDRA – AN OVERVIEW
NETWORK EXPANSION
MMS BRANDS
CASE STUDY (MUDRA)
FINDINGS
CONCLUSION
BIBLIOGRAPHY
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ADVERTISING – AN OVERVIEW
A dvertising is one of the largest generators of revenue in the world economy. Yet
it remains enigmatic to a large section of people. It is akin to dream selling for
some. For others it is a sheer waste of money. Whatever the perception,
advertising in India as anywhere else continues to mesmerize millions of people,
cutting across age, gender and social and economic disparities.
Advertising is
Paid for
A way of promoting products, services or information
A form of communication (between manufacturer and
consumer)
A physical commodity
An integral part of pop culture
An important economic force
A part of our urban landscape
The analysis of advertising is an integral part of Media Studies. Advertising
manifests itself in all known media forms, and is constantly seeking new media,
new channels of communication. Through looking at advertising we can learn not
only how the most simple narratives are constructed (a print ad is simpler than a
magazine article, a TVC is simpler than a feature film, although they use the same
narrative techniques), but how ideas can be communicated at great speed, through
the use of single images and words.
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WHAT IS ADVERTISING?
The word advertising originates from Latin word advertise, which means to
turn to. The dictionary meaning of the term is “to give public notice or to give
publicity”. Advertising may be defined as the process of buying sponsor-identified
media space or time in order to promote a product or an idea. It is perhaps the most
visible of all the elements in the promotion mix and is therefore subject to much
criticism from consumer groups. It is also subjected to government regulation.
The American Marketing Association, Chicago, has defined advertising as
“any paid form of non-personal presentation or promotion of ideas, goods or services,
by an identified sponsor”.
Advertising is not just 30 seconds of entertainment during the Super Bowl or
the announcement of the new deals from the cheesy car dealer down the street.
Advertising is big business--an industry with extraordinary cultural and economic
impact. It has the power to create brand awareness and loyalty and to stimulate
demand. In its most profound form, it can turn mere products into meaningful brands
and important possessions and turn the most mundane object into a cultural icon.
Advertising can be offensive or memorable, the center of controversy or the topic of
conversation.
In its simplest form, advertising is a method of one-way communication between an
advertiser and the consumer. An advertisement is persuasive in nature and sends an
intended message through a designated medium (radio, television, the Internet).
However, in receiving a message, consumers do not always interpret the message as
the advertiser intended.
Successful advertising sales results in satisfied customers and revenue growth for the
company.
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Definition
i. Advertising is a paid form and hence is commercial in nature. Publicity
is not paid for by the sponsor. Advertising is a paid form of publicity.
Thus any sponsored communication designed to influence buyer
behavior is advertising.
ii. Advertising is non-personal. Whatever the form of advertisement
(visual, spoken or written), it is directed at a mass audience and not
directly at the individual as in personal selling.
iii. Advertisements are identified with their sponsoring authority, which is
not always the case with publicity.
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ORIGIN AND GROWTH OF ADVERTISING
The history of advertising dates back to the early days of human civilization. The
evolution or growth of advertising can be briefly stated as follows:
1. Early Forms of Advertising: Three forms of advertising existed during the
pre-printing period, i.e. before 15th century. The three forms are as follows:
a) Trade Marks: In olden days, artisans used to inscribe on their goods
such as pots, wooden tools, etc., certain marks such a stars, moon,
tiger, etc. Such marks came to be regarded as trade marks.
The trademark was treated as a form of advertising because the
reputation of a particular trademark spread by word of mouth. The
buyer used to look for such marks before buying the product or tools at
the village fairs or such other places.
b) Town Criers: Prior to 15th centaury, shopkeepers and other sellers
appointed town criers to popularize their stores and products. The town
crier wore clowny cloths and played a musical instrument such as
drum or a flute and attracted the attention of the people at the village
fairs, bazaars etc. the town crier used to offer samples and praise the
shop and the product soled by the shops.
Town crier were treated as a form of advertising as they attracted the
attention of t5he people and also induced or persuaded the people to
buy the products popularized by them.
c) Sign Boards: Signs or signboards have been in use for over 5000
years. In those days, sellers used to paint signs on the rocks or boards
about their goods. People were attracted by those signs and purchased
the product popularized by the signs or signboards. For e.g., a sign of
cow was used for dairy products, row of ham for butcher’s shop etc.
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2. Birth of Printing Press: In 1438, Johan Gutenberg invented the crude form of
printing press. This made possible the printed advertisements in the following
forms:
a) Hand Mills: In 1477, William Caxton from London brought out the
first ever-printed advertisement in the form of a hand mill. The
advertisement was for a religious book.
b) Newspaper Advertisement: The Gutenberg invention made possible
the printing of a newspaper. The first newspaper came into existence in
Germany around 1520, and the first newspaper ad was published in
about 1525 in Germany for a book.
The first printed English newspaper appeared in 1622 called “The
Weekly News of London”, and the first ad in an English newspaper
appeared in 1625 for a book.
c) Magazine Advertising: Magazines were first published in the early
1700s, how ever, advertising in magazines gain reorganization only
around 1870. In those days, most of the advertisements were in the
form of posters/ handbills and in newspapers.
3. Birth of Advertising Agency: In 1840 Volney Bpalmer started the first
advertising agency in America at Philadelphia. In those days, ad agencies used
to act as “salesmen of space”. They used to sell space in newspapers and
magazines on behalf of publishers to the advertisers. They used to get 25%
commission for such services. The real advertising work such as copywriting
art-work etc, by the ad agencies began in the early 20th centaury.
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4. Radio Advertising: Marconi invented the radio. The radio was introduced to
the public in the early 1920s.The first radio advertisement was aired in 1922
for “Eveready Batteries” in America.
Because of the invention of radio, it was made possible to advertise to the
illiterates. The music and sound effects of radio advertising gave a new
meaning to the field of advertising.
5. Television advertising: in 1930s John L. Baird invented the commercially
viable television. It was the most impressive medium of all times. The
television advertising combined the effect of voice and vision, music and
motion. The first commercial appeared in 1949 in USA. In India, the first TV
commercial appeared on Jan.1, 1976.
6. Other Forms: In this present century several other forms of advertising came
into existence. it includes neon-signs, video, sky writing, billboards, yellow
pages, direct mail, etc.
7. Growth of Advertising Organizations: Several advertising organizations came
into existence during the 20th century. These include Audit Bureau of
Circulation (ABC) in 1914 in America and later on in other countries
including India; Advertising Agencies Association of America (AAAA) in
1945.These organization gave an added impetus to the progress of advertising
throughout the world.
8. Internet: An interesting form of advertising in the late 1990s is the Internet.
Internet can be called as electronic yellow pages. Companies open a website
wherein they provide information about the company and the product.
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KINDS OF ADVERTISING
There are various kinds of advertising that are based on classification.
Advertising can be classified in many ways. Some of the ways in which it can
be classified is as follows:
CLASSIFICATION OF ADVERTISING
Area Audience Media Functions Ad. Stages
Coverage
Local Consumer Press Direct & Indirect Pioneering
Regional Industrial Broadcasting Action Competitor
National Trade Outdoor Primary & Retentive
selective
International Professional Others Product & PRA
A. On the Basis of Area:
I. CLASSIFICATION ON THE BASIS OF AREA COVERAGE
1. Local Advertising: This is also known as retail advertising. This is
undertaken mostly by retailers in a local area, which can be a village, a town
or a city, or even in a small locality. The response expected is "Buy at my
Store".
The media used is normally the newspapers, cable network, neon signs, posters,
billboards and even local cinema and local television networks. Local
advertising builds name and goodwill of the' store and bring in more sales
from the local buyers.
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2. Regional Advertising: This type of advertising is done in a particular region,
say western region, or southern region. There are marketers who concentrate
their marketing efforts in a particular region of a country and as such they will
concentrate their advertising effort in such regions. The media used are
regional television and radio networks, regional magazines, newspapers and
also outdoor media in a particular-region.
3. National Advertising: This type of advertising is undertaken by marketers
who sell their products throughout the nation. Examples include Colgate
Palmolive, Hindustan Lever, Godrej, BPL, Sony, etc. The response expected is
"Buy my brand". The advertisements are in respect of branded products. The
media used includes national network of television, and magazines. 'They also
use newspapers, radio, etc.
4. International Advertising: This is undertaken by MNCs and exporters who
sell in different countries. Examples include advertising by Coco Cola, Pepsi,
Philips, and others. ‘The international advertisers analyze the same advertising
campaign worldwide or they may modify their ad campaigns depending upon
the target audience in different countries.
II. CLASSIFICATION ON THE BASIS OF AUDIENCE
1. Consumer Advertising: This type of advertising is done to the consumers. Such
advertising is done to create awareness and to induce action on the part of consumers,
i.e., purchase of goods and services or some other action. The media use includes
television, radio, magazines, newspapers and others. Examples of such advertising
include Colgate tooth-paste, Thumps Up, Dove Soap, etc.
2. Industrial Advertising: This is undertaken by sellers of industrial goods. They
advertise to business people to purchase the products and services so that they can use
such items in their business activities. Examples of such advertising include Ernco
Transformers, Kirloskar Industrial Pumps, etc. The media used includes trade
journals, industrial magazines, and direct mail.
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3. Trade Advertising: It is undertaken by manufacturers of consumer goods as well
as industrial goods. It is undertaken to influence the dealers to stock and promote
the advertiser's goods: Through trade advertising, the advertiser expects the
response "Stock and promote the sale of my products. The media used includes
brochures, folders, trade magazines, and direct mail.
4. Professional Advertising: It is undertaken to influence the professionals such as
doctors, lawyers, architects, professors, etc. The media used can be direct mail.
Mostly, the professionals are approached personally by the seller. The response
expected from the professionals-is "Recommend or prescribe my brand." This type of
advertising is required for the promotion of college/university textbooks, medicines,
building materials, etc.
III. CLASSIFICATION ON THE BASIS OF MEDIA
1. Press Media: This includes the use of newspapers and magazines. In India, a
major share (about 52%) of total advertising goes to the press media. All advertisers
can afford to pay for press advertisements as compared to television advertising.
Press advertising can be used for future reference if so required. Again, detailed
information can be provided in the press advertisements, which may not be possible
in outdoor, television, and on radio.
2. Broadcasting Media: This includes advertising on radio and on television. In
India, television advertising is gaining importance and is ranked second in terms of
advertising expenditure after newspapers.
However, radio advertising is very insignificant in India. The share of advertising
expenditure on radio is less than 3%.
Television advertising with its voice, vision, music and motion effects can
create a good impact on the minds of the target audience. Radio advertising also can
create a good impact, especially, in the rural areas, where some of the people may not
afford to buy the television sets.
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3. Outdoor Media: This includes posters, neon signs, transit, point of purchase
(POP), etc. Outdoor advertising can be a good supporting media to other forms of
advertising. It is a good form of reminder advertising, especially, the POP advertising.
4. Other Media: This includes direct mail, handbills, calendars, diaries, cinema
advertising, Internet and so on. These miscellaneous media can play an important
supporting role .to the major media such as television, and newspapers.
IV. CLASSIFICATION ON THE BASIS OF FUNCTIONS
1. Direct Action and Indirect Action Advertising: Direct action advertising is
undertaken to obtain immediate response or action on the part of target audience.
Examples include discount sales advertising, sale along with free gift offers, and
mail-order coupon sales, etc. The media used is mostly newspapers, and television.
2. Indirect action advertising is undertaken to influence the audience in respect of
advertiser's brand. The advertiser expects the target audience to prefer his brand as
compared to competitors whenever a buying decision arises in future.
3. Primary and Selective Advertising: Primary advertising is undertaken by trade
association or by cooperative groups. It is undertaken to create generic demand for
products and services. For example, the Coffee Board may advertise to consume more
coffee.
4. Selective Advertising is undertaken by marketers of branded products. The
advertiser intends to create selective demand for his brand. Examples include Pepsi
Cola, Coco Cola.
5. Product and Institutional Advertising: Product or Service advertising is
undertaken to promote the sale of products and services - branded or unbranded.
Institutional advertising is undertaken to build name and goodwill of the organisation.
It is also known as corporate advertising or image advertising. It is mostly undertaken
by large firms.
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V. CLASSIFICATION ON THE BASIS OF ADVERTISING STAGES
1. Pioneering Stage: Advertising done during the introductory stage to make the
audience aware of the new brand is called pioneering type. However, in real
sense pioneering advertising refers to advertising of a newly launched
innovative product. Examples: ads of liquid detergents, electric razors, electric
toothbrushes, bike with a roof etc.
2. Competitive Stage: Once the product survives the introductory stage, soon it has
to face a number of competitors. Advertising undertaken to face competition is
called competitive advertising. Most of today's advertising is competitive in
nature.
3. Retentive Stage: It is also known as reminder advertising. When a brand is used
by a large share of the market, the advertising is so designed as to maintain
brand loyalty. It is undertaken to remind the buyers to repeat the purchases of
the advertised brand.
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ACTIVE PARTICIPANTS IN ADVERTISING
Active participants are those individuals or organizations, which are actively
associated in the field of advertising. Generally, the list of active participants include:
1. Advertisers: The advertiser include sellers of product and services, trade
intermediaries such as retailers, and social organizations. It is the advertiser who
makes the final decision in respect of the target audience, the media of
advertising, the period of ad campaign, and the size of the ad budget.
There are advertisers who run a couple of ads in a year, and there are others who
may run thousands of advertising messages, in a year.
There are advertisers who undertake only product advertising, and there are
others who undertake corporate advertising as well.
The advertisers may advertise throughout the country or they may advertise in a
particular region or local area.
Some advertisers may make use of a number of media, whereas, others may use
only the local media such as newspapers, outdoor advertising.
2. Adverting Agencies: The advertising agency is an independent business
organization, composed of creative people who plan, prepare and place advertising
media for sellers seeking to find customers for their goods and services. The
advertising agencies earn a commission of 15 percent of the media bill. They charge
out-of-pocket expenses to their clients, i.e., the advertisers.
There are agencies that provide a complete package of services advertising and
other marketing services and there are others who provide only specialized
advertising services.
There are agencies who earn a couple of lakhs of rupees, and there are others like
O& M, J. Walter Thompson (HTA), Lowe (formerly Lintas), McCann-Erickson
(India’s top 4 agencies) and others whose annual billings run in crore of rupees.
There are agencies that employ a few employees and yet others employ hundreds of
people in their offices.
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3. Audience: It refers to the recipients of advertising messages, i.e., readers, listeners,
or viewers. Every advertising message is directed to either mass audience or to
selected class of audience. Every advertiser intends to convert audience into
prospects, prospects into buyers.
The ad messages are directed to users of the advertised brand so that they go for
repeat purchases and also recommended to their friends, neighbors and others.
The messages are directed to non-users who may purchase the product in future.
The messages are also directed to the users of competitor’s products, so that they
switch over to the advertiser’s product.
4. Advertising Media: The media are the channels of communicate through which ad
messages are transmitted or communicated to the target audience. There are several
media of advertising. Each media has its own merits and limitations.
The most frequently used media are newspapers, magazines, television, radio,
posters, billboards and neon signs.
Each media has media vehicles. For instance, in magazines, there are business
magazines. In business magazines, the media vehicles are Business Today, Business
World, etc.
In India, newspapers account for a major share of advertising revenue, followed
by television and magazines
5. Advertising Production Firms: These include copywriters, artists,
photographers, typographers, layout designers, producers, editors, and others.
They may be the personnel from the ad agencies or they may be hired from
outside by the agencies on job basis. These are the people who transform the idea
of an ad into a finished form the success or failure of an ad largely depends on
these people.
6. Government Authorities: The government authorities control the functioning of
the entire advertising industry. The government adopts laws and regulations which
have a direct or indirect bearing on advertising. For instance, ads of liquor and
tobacco products are not allowed on television, and radio.
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ROLE OF ADVERSTISING
Positioning
Marketing Advertising
Brand
Deliver Promise
Consumer
Good, effective advertising is almost a necessary condition for any marketing
effort to succeed in today’s competitive world and that is what makes advertising a
double-edged sword. If used properly, it ahs a capability to cut the competition to
pieces. If not it can bleed the company badly, even to death. After all a double edge
sword needs careful handling. A lack of clarity in which direction it needs to be
wielded can lead to self inflicted cuts and wounds.
The same is true with advertising. A good understanding of the marketing and
branding principle is a must. What role advertising is supposed to play in the
marketing game plan should be clearly defined. Clarity in knowing what advertising
is supposed to achieve, and within what marketing and brand parameters, will give a
proper direction to the entire advertising planning and development process.
ADVERTISING PLANNING FRAME WORK
Marketing Plan
Marketing Objective,
Strategy and Mix.
Role of Advertising
Advertising Plan Objectives, Targeting,
Key Message, Creative
and Media Strategy.
It would be worthwhile here to remember that advertising is always part and parcel of
a solution to a marketing problem. It is only the means to resolve the marketing
problem and not an end in itself, and definitely no panacea. Therefore, any outline
Advertising Objective should be in line with the marketing objective and strategy.
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THE ADVERTISING FRAMEWORK
Media
Strategy
Marketing
Objective
Media
mix
Marketing Advertising
Role of
Strategy objectives
Advert-
ising
Creative
Strategy
Advertising
Strategy
creative
mix
Segmentation
Target Group Audience Style/
Design/
Tone
Positioning Key Message, Idea
Proposition Concept/
campaign
The Advertising Strategy essentially flows out of the marketing strategy. A
clear definition of the “core” target segments in the marketing strategy will
automatically translate into a well-defined target audience for advertising. Similarly
the positioning stance in the marketing strategy will translate into the key message or
proposition that the advertising needs to focus on.
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Only when it is clearly known who you are talking to and in what context can
u develop a meaningful advertising strategy of what u you are going to say and how.
Thereafter the creative and media aspects of the advertising are worked out.
The focus of the Creative Strategy is to come up with an advertising “idea” and
campaign that can inspire and motivate the consumers to identify with and own the
brand.
The focus of the Media Strategy is to ensure that the advertising is taken to
people’s home and lives in the most visible and effective way possible. It also needs
to ensure that in doing so the advertising monies are used as efficiently as possible.
In totality, if there is no doubt in fact that advertising is probably the most
lethal weapon a, marketer possesses – the terminator X – it is equally true that it will
take all the understanding and wisdom of a professional marketing approach to
control and direct its trigger.
If there is no clarity on the purpose to shoot, or no marked target, or no
precision in aiming, or no synchronization in when to pull the trigger, the bullets will
fly all over the place resulting in a lot of unintended, innocent, and at times self
casualties.
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ROLE OF ADVERTISING IN MARKETING MIX
Marketing mix consist of four important variables of marketing, i.e. 4Ps-Product,
Price, Promotion and Place. Apart from the traditional 4Ps, there are also other
variables, i.e. Packaging, Posting, and Pace.
Advertising is an element of promotion. However, it not only assists in promoting the
product, but also affects the other variables of marketing mix. This can be explained
as follows:
1. Advertising and Product: A product is normally a set of physical elements, such
as quality, shape, size, colour and other features. The product may be of very
high quality .At times, the product is so designed that it requires careful
handling and operations. Buyers must be informed and educated on the
various aspects of the product. This can be effectively done through
advertising. Thus, advertising plays the role of information and education.
2. Advertising and Price: The price is the exchange value of the product. A
marketer may bring out a very high quality product with additional features as
compared to competitors. In such a case, price would be definitely high. But
buyers may not be willing to pay a high price would be definitely high. But
buyers may not be willing to pay a high price. Here comes advertising.
Advertising can convince buyers regarding the superiority of the brand and
thus its value for money. This can be done by associating the product with
prestigious people, situations, or events. Alternatively when a firm offers a
low price products the job of advertising needs to stress the price advantage by
using hard hitting copy. It is not just enough to convince, but it is desirable to
persuade the buyer. Thus adsvertising plays the role of conviction and
persuasion.
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3. Advertising and Place: Place refers to physical distribution and the stores where
the goods are available Marketer should see to it that the goods are available at
the convenient place and that too at the right time when the buyers need it. To
facilitate effective distribution and expansion of market, advertising is of great
significance. Thus advertising do help in effective distribution and market
expansion.
4. Advertising and Promotion: Promotion consists of advertising, publicity,
personal selling and sales promotion technique. Businessmen today have to
face a lot of competition. Every seller needs effective promotion to survive
and succeed in this competitive business world. Advertising can play a
significant role to put forward the claim of seller, and to counter the claims of
competitor. Through effective advertising, sellers can face competition and
also help to develop brand image and brand loyalty.
5. Advertising and Pace: Pace refers to the speed in marketing decisions and
actions. It involves among other things the launch of new products or brand
variations at greater speed than before. As and when new brands are launched,
advertising plays an important role of informing, educating and persuading
the customers to buy the product.
6. Advertising and Packaging: The main purpose of packaging is protection of the
product during transit, and preservation of quality and quantity. Now a –days,
marketers take lot of efforts to develop and design attractive packages as they
carry advertising value. A creatively design package attract the attention of the
customers. It also carries an assurance of quality and creates confidence in
the minds of customers to buy the product.
7. Advertising and Positioning: Product positioning aims at creating and
maintaining a distinct image of the brands in the minds of the customers.
Through advertising the marketer can convey the positioning of the brand and
accordingly can influence the buying decision of the target audience.
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GENERAL ROLES OF ADVERTISING
The roles of advertising are many. It is designed to inform and induce people to act
upon the advertising message. It can be used to support a cause, or to elect a
candidate or raise funds for some charitable or social organization. Most advertising
however, is for the marketing of goods and services. The role of advertising can be
explained as follows:
1. Communication: There is always a need to inform the consumers about the
availability of a new and better goods and services. It is very difficult to
personally approach the prospects throughout the market area and bring their
notice the reliability of goods and services. Advertising solves this problem
through mass communication in news papers, magazines, radio, TV, etc.
advertising creates awareness of goods and services in the market.
2. Persuasion: Today’s customer needs not only information about the new
goods and services, but he needs to persuaded to buy the advertiser’s product
because he is confronted to so many competitive massages of competing
brand. Therefore, the role of advertising is not only to communicate but also to
persuade the prospects to buy goods and services.
3. Education: advertising brings the knowledge of the audience about the
various features of the products such as quality, uses, advantages, price, and
such other aspects. This helps the prospect to make a proper choice of brand
before he decides to purchase. Also the audience are made aware of social
problem that are forced by the society such a s child marriages, dowry evils,
smoking effects, noise pollution, etc.through public service advertisements.
4. Expansion of Market: effective advertising helps to stimulate more and
more demand from the audience or prospects this helps to boost up large scale
production and marketing. The manufacturer / seller can expand his market
from local level to regional level to national level and even to international
level
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THE ROLE OF ADVERTISING ON THE INTERNET
Do consumers recognize that advertising support media?
Internet as well as other media, we can enjoy almost all web sites free of charge
thanks to advertising on it. But users sometimes search information conatively using
internet, advertisements which occupy some part of the page and try to catch their
eyes look burdensome and disturbing their works. It may be worse than any other
media.
How can we persuade Internet user of the merit of advertising?
The more users think Internet advertising burdensome and avoid to see it, the less the
value of the advertising will be. If many advertisers stop using internet advertising,
free sites will be no more. User will be requested to pay some charge to use their
favorite web sites in the future. To persuade them that advertising is inevitable to use
web sites free of charge, it must be not bad to some sites declare to start subscription.
Users who hate subscription will understand the role of advertising on the internet.
Internet advertising is only the gate.
Almost all banner advertising and e-mail advertising are gadgets to make users to
jump to main web site. For the time being, internet advertising by itself will never
fulfill the transaction. It makes users to proceed to the next step such as getting more
information, asking some questions and making order and so on.
Targeting is the key.
Appropriate targeting is the key to success in the internet advertising. Internet, more
precisely, particular web sites are kinds of media to appeal to specific target not to
mass audience. There will be complete different way from traditional mass media.
Will it be a new communication tool for the young generation?
Young generations are very familiar with computer from their childhood. For them,
internet is necessity for their life. In the 1950s and 60s, teenagers or younger children
who grew up with television shared common interests and communication concerning
television. It is hardly believable that older generation communicates each other using
internet within a few years but young generation can easily do so.
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WASTE IN ADVERTISING
Waste in advertising refers to the failure of the advertisement or campaign to achieve
its desired objectives. The main objective of every ad is to attract the attention of the
audience and then to induce them to act upon the advertiser's message. If the ad fails
to attract the attention and induce the audience, then one can say that there is waste in
advertising. Some people talk of waste in advertising when they feel that more money
is spent on advertising than what is actually needed.
Causes of Waste in Advertising:
The waste in advertising may be due to any or many of the following causes:-
1. Poor Planning: The advertiser may not obtain proper response from the audience,
if he plans his advertising in a poor way. For instance, the frequency of ads may
be inadequate to bring about a desired response from the audience, or the funds
allotted to a particular media may not be sufficient. At times, an advertiser may
advertise more in one place and neglect the other market area where advertising
is in fact required. Such poor decisions on the part of the advertiser will result,
in waste in advertising.
2. Wrong Targeting: The advertiser may direct the product to the wrong target
audience. The marketer or advertiser may not be able to locate properly the
markets for his product. For example, the advertiser of a soft drink may target
older generation in India. Such targeting may not work well in a country like
India where older generation are wise enough not to get influenced by soft drink
ads.
3. Wrong Selection of Media: The advertiser may make a wrong selection of the
media. This is possible when the marketer does not take the assistance of
professional ad agency to select the right media. The ad will be directed to the
wrong target audience, and as such it will result in a waste of money and efforts.
For example, a publisher of college or university text books may advertise in
newspapers or on television rather than asking the professors to recommend.
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4. 7Wrong Sponsoring of Programmes: The advertiser may sponsor wrong
programmes. Normally, the image of the programme or serial must fit or match
with the image of the advertised brand. For example, the advertiser of a luxury
car may sponsor a cheap comedy serial on television which is viewed by
masses, especially, belonging to lower income groups and even middle income
groups.
5. Excessive Repetition: Now-a-days, advertisers go for excessive repetition in order
to obtain a larger share of voice on the television and radio. In fact, viewers or
listeners are so fed up with the repetitive ads, and they often switch over to other
channels during the ads. Some audience even gets irritated and they stop
viewing a programme, which is frequently interrupted by ads. There are cases
where buyers stopped buying a particular brand due to the irritation generated
by repetitive advertising and poor quality of advertising of that brand.
6. Wrong Placement of Ads: There are cases of wrong placement of ads. This
especially happens in the case of billboards and even posters. Again, there are
cases of wrong placement of the ads in the newspaper. This is because a good
number of readers do not read the entire newspaper, and if the ad is inserted in
such a place where the editorial is hardly of interest to the target audience.
7. Poor Quality of Ads: The ads may be poorly drafted. The model or the
personality selected may have nothing with the brand, or the character of the
personality may not match with the character of the brand. For example, if a
marketer of luxury car selects a popular Hindi film personality, then it will lead
to waste as the prospective buyers of luxury car may not influenced by a Hindi
film personality. Again, the choice of words used in the advertisement may not
be proper, and the audience may get irritated or insulted by such ads. Therefore,
the advertiser should be selective in using the right words, and selecting the
right models or personalities to endorse the brand.
8. Wrong Selection of Ad Agency: The advertiser may make a wrong decision in
the selection of the ad agency. The agency may not understand properly the
requirements of the advertiser, the nature of the product, the nature of target
audience, etc.
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9. Wrong Time: The advertiser may select wrong time to advertise the brand. For
example, one cannot advertise for products liked by children at late hours in the
night. Again, if the product is of seasonal nature such as umbrellas, then the
advertising must be undertaken at the onset of such season.
10. Lack of Coordination: There may be a lack of coordination among various
sections of the marketing department and other departments in the organisation.
Even if the advertising is effective and generates good demand for the product,
the production department may not be able to increase the pace of production, or
the marketing department may not be able to distribute and provide after-sale-
service effectively. This will definitely result in waste of effective advertising.
11. Untruthful Advertising: At times, the advertiser may provide false information
in the ads. The advertiser may not be able to fool the audience with such type of
wrong information, and therefore, the money spent on such advertising is waste.
12. Clutter of Ads: The advertisement may be inserted in a newspaper, which is
cluttered with several ads'. Again,-there may be cluttered of ads, especially, at
the time of popular serial or programme. Some of the ads may not noticed by the
audience. Again, the clutter of ads, especially, on television irritates the
audience.
13. Conditions not Conducive: At times, conditions conducive to the use of
advertising may not be present, but still the advertiser advertises the product and
as such loses a good amount of money on ads.
The above mentioned causes are some of the reasons as to why there is waste in
advertising. This can be avoided provided there is a systematic planning of
advertising and the conditions must be conducive to the use of advertising.
Again there should be proper pre-testing of ads before they are run over a large
market area. The advertiser may also go for post-testing of ad campaign to
correct mistakes, if any. Finally, there should be proper control over the
advertising budget.
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ETHICS IN ADVERTISING
Ethics is a branch of social science that deals with moral principles and values.
It differentiates what is good and what is bad. What is good should be followed and
what is bad should be discarded or avoided.
As far as advertising is concerned the advertisers should do only good
advertising. Good advertising refers to honest advertising. Only true fact; about the
product should be stated - no exaggeration - no Ties. Again, only good products
should be advertised and that too to the right audience.
There are various ethical issues in advertising ranging from the question of
validity of claims made in the ads to the matter and manner of presentation Often vital
issues are raised such as:
• Advertising of harmful products.
• Advertising to children,
• Ads in poor taste,
• False claims made in the ads,
• Excessive use of exaggeration,
• Unhealthy brand comparisons,
• Use of Testimonials, etc.
Although advertisers face ethical regulations, every issue is not covered by a
clear written rule. Many advertising issues, such as brand comparisons, use of
personalities, statistical claims, degree of exaggeration, etc, are left to the discretion of
the advertiser.
Critics feel that advertising should be objective and informative, whereas,
those who defend advertising say that ultimately the consumer makes the Final
decision. If advertising for a product is perceived as violating ethical standards,
consumers can exert pressure by refusing to buy the product. They can also complain
to the company and to the regulatory bodies.
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Sometimes when advertising decisions are not governed by any regulation, it is the
advertiser who should make an ethical decision. The advertiser must weigh the pros
and cons, the good and the bad, the healthy and harmful effects and make a value
judgment about an unfamiliar situation. Even though some ads might increase sales,
an ethical advertiser should avoid the use of offensive, double meaning tone of the ads
and also the truth should not be stretched too far. When making a claim about the
product one should not malign competitors' product, when your product is basically
the same as that of the competitors.
Advertisers must address themselves the following few questions:
Who should and should not be advertised to?
What should and should not be advertised?
What should and should not be the content and tone of the advertising
message?
Where should and should not be advertised?
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ADVERTISING AGENCY
Advertising agency is one of the important components of the advertising industry. It
has played a significant role in the development of modern advertising
Ad Agency can be defined as “an independent business organization composed of
creative and business people, who develop, prepare and place advertising in
advertising media for sellers seeking to find customers for their goods and
services.”
Evolution Of Advertising Agency
The origin and growth of advertising can be defined into five stages:
1. Period of space agents,
2. Period of space wholesalers,
3. Period of creative services,
4. Period of complete package of services,
5. Period of mega agencies
Period of space agents:
The history of American advertising records Volney B. Palmer as the first person
to have worked as a space salesman. He sets up his agency office in Philadelphia
in 1840. He solicited advertising business for the newspaper publisher for a
commission. Others followed Palmer and soon there was competition in selling
space to the prospective advertisers.
Period of wholesaling:
In about 1865 George P.Rowell started a different system of selling space. He
contracted with 100 newspapers to buy one column of space a month. He
purchased space, in lots at inside rates and sold it at higher rates in small units to
individual advertisers. He not only received his normal commission but also made
good money due to discounts on wholesaling rates offered to him by the
publishers.
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Period of creative Services:
In the last decade of 19th centaury there was so much competition among the
various advertising agencies to sell space, which resulted in cutting of rates by the
various agencies. At the same time some of the publishers started their own sales
departments to sell space directly to the advertisers. This resulted in loss to the
agencies and some of the agencies had to close down their offices. Others in order
to face difficult times, hired copywriters and artists to handle the art work and
copy for the clients and since the advertisers were offered free creative services
they once again relied on the advertising agencies. N.W.Ayer was the first person
to offer such services.
Period of complete package of services:
After World War I, a lot changed in the functioning of advertising agencies. In
1917, the AAAA was born. This organisation worked for the improvement in
advertising standards and advertising practices. Soon the advertising agencies
started to provide full service to their clients which included apart from writing
copy and art work, planning for the client's advertising, recommending changes in
product pricing, product distribution, conducting market research and so on. Now-
a- days, the agencies assist their clients in total marketing programme, the agency
may also work on projects, not directly related to advertising, such as public
relations, package design, sales literature and so on.
Period of Mega Agency:
A significant development of the 1980's is the development of mega agency.
Agencies world wide merge with each other to serve their clients in a much better
way. It was in 1986, Saatchi & Saatchi, a small London based agency who started
the movement and at present it is the third largest agency network in the world
(Saatchi & Saatchi enjoyed No. I position in 1990).
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CONSIDERATIONS IN THE CHOICE OF AN ADVERTISING AGENCY
Selecting the right type of advertising agency is a very difficult choice The
advertiser should make a list of all possible agencies that can serve his purpose
and the agency best qualified to provide the required and effective services is
selected. Some advertisers may select more than one agency to handle separately
its various product lines. Following are the factors that should be considered while
selecting an advertising agency:
1. Services Offered: The very important consideration in the choice of the
advertising agency is the requirements of the advertiser as to the services in
respect of advertising and non-advertising. If the agency is well equipped to
meet the requirements of the advertiser, then sue agency can be selected. Some
agencies may provide only a few services, others package of services.
2. Location: The location of the advertising agency is of prime importance;
preferably the office of the agency should be located within the same city
where the head office of the client is located. Quite often the client has to
consult and communicate on various advertising problems and this can be
done quickly and economically, if the office of the agency is within easy reach
of the advertiser.
3. Compensation: Now-a-days agencies charge for entire services. There is
hardly anything free. The advertiser has to pay for the copy writing, art work
and other services. The rates of various agencies are not standard and they
differ from agency to agency. The advertiser must check on the rates before
finalizing the choice of the agency. However, it does not mean that the
advertiser will select an agency whose charges are less, other factors often
come into picture such as experience and quality of services offered.
4. Personnel: The creative personnel of the agency such as the copy writers, art
directors and others must be looked into before contracting the agency. The
success of the advertiser's campaign largely depends on the services of the
creative department.
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5. Size of the Agency: The size of the advertising agency must be considered. The
larger the size, the more it is preferred, however, at times, small is beautiful
because a small-agency may give more attention to its client's work, in such
cases; the small agency can be considered.
6. Records and Reputation: The past record and reputation of the advertising
agency in the field of advertising must be studied. The agency-client
relationship, the client turnover, the success of other clients' campaigns, the
implementation of the schedule, the follow up and such other factors must be
looked into.
7. Other Accounts: The advertiser should also find out the other accounts that are
handled by the agency. In no case, the advertiser must select that agency
which handles competitor's advertising, because there will always be suspicion
of getting poor facilities and second hand treatment and it will be wise to
discard the choice of such agency.
8. Media Connections: Some agencies do have better contacts with various
media 'owners, such as the newspaper and magazine publishers, Doordarshan,
Radio, etc. For instance, in a MARG survey many firms perceive that Mudra
has better connections with Doordarshan than other agencies. Such agencies
may be able to influence upon the media owners and can book prime time and
space for their clients. Other agencies may lack far behind in such
connections. Therefore, the agency with better media connection be selected.
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Advertising Agency and its working
Advertising agency have become important and yet, back-ground
partners of firms. As there are several different types of advertises there are different
types of advertising agencies to cater to their demand. With specialized products
groups coming in the market, like computers and peripherals, video products, telecom
products, the need of specialized agency has been felt as never before. Sure enough
such agencies are evolving or existing agencies, hiring persons who are technically
qualified to understand the new business.
Let us see a typical organization chart of a full function Advertising Agency
Chief Executive Officer
Client Group 1 Client Client Client
Group 2 Group 3 Group 4
Account Creative Media Research
Management Services Services services
Account Art Press In House
Manager/Executive Director, Research
Copy
writer,
Account Planner Visualizer Electronic Outside
Media Research
Agency
A functional head that has the experience and skills is positioned in
each of the areas, like Account Management, Creative, Media and Research. In some
agencies they do not have a Research Department and they hire the services of outside
research organizations like ORG Marg in India.
Full services Agencies are capable of providing entire range of
advertising services to their clients. Advertising agency work starts with a brief form
the client to their Account Executive. The brief constitutes of the following points:
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Details of clients activities.
Clients market share, brands and their equity
Competitive brands and their value
Marketing objectives
Advertising objectives
An idea of budget meant for advertising
The role of Advertising Agency in marketing efforts of a firm can be compared to that
of a doctor who treats a patient and must be told everything necessary for his
treatment and cure and same type of confidentiality is expected from the agency.
The Account Executive (AE), works as a close link between the agency and its client.
He represents the client at the agency and ensures that the agency works within the
framework of clients brief and in the allotted time. The word DEADLINE is perhaps
the most used word in any agency – as it has to meet the target date of releasing the ad
campaign to the media after its acceptance by the client. The AR arranges the agency
resources, creative, media budgetary to get the best campaign for the client. AE puts
across agency’s plans and the campaign to the client to get their approval. It is more
of a sandwich kind of a role, yet it is very satisfying once the campaigns planned are
executed and bring desired results.
The Creative Department is equally important in an Advertising Agency which is a s
follows:-
Creative Director
COPY WRITER ART DIRECTOR VISUALIZER
Creative Director is responsible for the entire creative work of agency, including,
copy writing, art designing work and planning sketches for TV Commercials. The
Visualiser’s job is to ensure that copy and art is placed at the right places and the total
effect of advertisement is eye catching. Copywriter writes the Copy, the written word
in any advertisement.
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The Art Director creates the visuals, the drawings, photos and
sketches in the advertising campaign. Art Director also works as the Visualizer in
most Advertising Agencies.
They focus on the suitability of the chosen market segment/s. For this
purpose either they have a research unit of their own or they hire outside agency for
gathering information. Some agencies have Research Directors to head the
department.
In certain agencies the trend is to have Account Planning Department
which arranges for the Customer’s view point, gathered from market research to
interact with creative and media for best results.
Media Department is headed by the Media Director where the media
research is conducted to find which would be the right media for the campaign. They
plan the media, frequency for advertising, it’s cost and coverage. They are
responsible for purchasing media space for print media and time.
Production Department does the Print and Broadcast, Telecast
production work, including hiring freelance TV Commercial makers.
Traffic Controller Department coordinates the work of different
departments in the agency and ensures that no client work is side tracked or delayed.
Marketing Department of the agency arranges information on the
market segment, that excites the customers, and selects the electronic media, like
Radio and TV.
AGENCY management is conducted on day to day basis, which
among other activities involve, money and men management.
Agency organization chart is given below:-
CEO
Account Account Creative Traffic Media Research
Executive Planning Department Controller Planner Department
Most of the full service agencies have similar structure; the designations may differ
from agency to agency.
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TYPES OF ADVERTISING AGENCIES
1. Full Service Agency is geared to provide complete ranges of services to its clients,
to plan create and implement the advertising as per client’s needs. India, HTA,
CLARION, LINTAS are some of the full services agencies. The agency proposes
complete communication solutions to its client, the creative, the budget and the
media.
2. Limited service Agency-usually these agencies do not provide full service. They
concentrate on creative aspects of advertising. They are well appreciated and used by
clients looking for high quality creative work while depending on other sources for
media planning and execution of the campaign. They are also known as creative
boutiques or hot shops. Because of their lean organization they can be quite
competitive.
3. Agency of Records is the large agency with financial muscle as they buy media in
bulk and sell the space not needed by them at a profit of 2% to those agencies who are
looking for media space at the peak season.
4. Specialized agencies operate to serve niche market like financial advertising,
resorted to before a firm plans to have a public issue of its shares. In India, Clea and
Sobhagya are two such agencies.
Agency profits and payments come from commissions they get from the media for
selling space to their clients. The rate of commission has been 15%. Besides,
agencies also get from their clients direct fees, markups and incentive based
commissions.
For the media like outdoor, special boards and directories, the agency puts a mark up
on the price given by the media and gets paid for its efforts. In the case of incentive
base, the client pays the agency on the basis of the result obtained by the advertising
campaign.
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Visit to MUDRA ad agency
AN AGENCY VISIT
Agency : Mudra Ad Agency
Place : Lower Parel (Mumbai)
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QUESTIONNAIRE
Brief introduction about the ad agency?
How is an ad campaign prepared?
How is media planning done?
Recent ads made by MUDRA?
Any competitors?
How is the agent- client relationship supposed to be in an ad agency?
Any client turnover in MUDRA?
After ad making are there any responsibilities ad agency?
Awards won by MUDRA?
Presented in the next page are the answers to the questionnaire given by the agency
personnel to broaden our knowledge about the MUDRA ad agency
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MUDRA – An Overview
Mudra Ad Agency, one of the leading ad agencies in India. It was really exciting to
visit ad agency office and meet their personnel’s. An agency is dream creator for the
people by preparing creative and persuasive advertisings.
“Advertising is marketing a product. And advertisement itself is a product for
marketing manager.”
In 1980, Mudra started with a modest turnover of Rs.30 lakh in the first year of
operation. The first few years indicated a placid growth rate of 25%. From 1985
onwards, turnover accelerated at a furious pace. This led to Mudra becoming the
third largest agency in the country in a short span of 9 years. Currently Mudra's
turnover is in excess of Rs. 7 billion and the company continues to maintain a healthy
growth rate.
In MUDRA before making ad campaign, detail study of market research is
necessary.
First step is to find out target audience.
Second, plan of action. It includes, segmentation, targeting right consumers,
dividing, positioning-identify competitor
Third, to start with actual ad campaign. It’s a team-based activity. We start with
the objective. For e.g. Reliance 501 Hungama. Hungama was the objective of the
ad.
After campaign objective next activity is---
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Media plan
Story board
Client presentation - T.V., radio, media.
Shooting
Competitors of the “Mudra”
Agencies like- O & M, Lintas, JWT, Contract, FCB-Ulka, Grey, Everest,
Saatchi & Saatchi etc.
There are many clients of MUDRA such as Reliance infocom, Rasna, Vimal, Mc
Donald’s, LIC, Godrej, Samsung, Dabur, Orient Fans, Nestle India Ltd, Voltas
Ltd, and Symphony Ltd etc.
Agency-Client Relationship
According to MUDRA personnel’s the agent client relationship should be like
husband-wife relationship of trust and belief. Till there is a mutual faith, relationship
last long, Otherwise client turnover occurs.
Client turnover in Mudra
Client turnover happens because of various reasons and many agencies face this.
Technology, better services, relationship, policies, creativeness, prices etc. Mudra is
also not exception to this. They lost Hutch and Kinetic.
There are many responsibilities ad agency after making ad. After ad making they
check the feedback. It’s necessary to check whether the ad is reaching towards
focusing group to get in-depth prospective.
For e.g. Reliance ad with Cricketer Virendra Sehwag was the worst ad they made.
Though it is very famous and has reached to the people but not the way they wanted
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to. So they have identified the criticism of the ad and now they are planning to come
up with a new ad.
Awards won by Mudra
Mudra is maintaining its rank and has won several awards. Namely, -----------
Mudra has collected many accolades over the years including the "Agency of the
Year" award for 6 years besides the induction of Shri A.G.Krishnamurthy (Ex CMD)
into the Calcutta Ad Club Hall of Fame; his being chosen as the Ad Person of the
Year by A&M; his nomination as "one of the 25 key figures of the international Ad
Industry" in 1998 by British Magazine - Media International; and the AAAI-
Premnarayen Award in recognition of his pioneering spirit and entrepreneurial vision.
1993|Total awards 55
Agency of the Year - A&M
1994 | Total awards 52
Agency of the Year
Bangalore Ad Club
1995 | Total awards 84
Agency of the Year - A&M
Advertising Person of the Year
(A.G.Krishnamurthy) - A&M
1996 | Total awards 90
Agency of the Year
Calcutta Ad Club
1997 | Total awards 67
Agency of the Year - The Pioneer
Hall of Fame (A.G.Krishnamurthy)
Calcutta Ad Club
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1998 | Total awards 87
The British magazine "Media International" nominated A.G.Krishnamurthy
One of the 25 key figures of the international advertising industry
1999 | Total awards 60
Agency of the Year
Delhi Ad Club
AAAI - Premnarayen Award
(A.G. Krishnamurthy)
in recognition of his pioneering spirit and entrepreneurial vision
2000 | Total awards 72 (36 Awards of MAG)
2001 | Total awards 50 (16 Awards of MAG)
Creativity 31, USA (7 Gold Awards)
2002 | Total awards 27 (2 Awards of MAG)
2003 | Total awards 41 (1 Award of MAG)
New York Films (1)
ABBY Awards (2)
AAAI (5)
Chennai Ad Club (4)
Cochin Ad Club (7)
A Brief Summary of Awards Till Date:
INTERNATIONAL AWARDS:
Number of Awards: 136, (Cannes, D&AD, Clio, One Show, AdFest,
Communications Art, New York Festival & Others.
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NATIONAL AWARDS
Number of Awards: 730, ( Abby, CAG, Ad Clubs, AAAI, Showcase of
Indian Advertising & Others)
AGENCY OF THE YEAR SIX TIMES
MUDRA’s founder AG Krishnamurthy has been honoured at multiple industry
for a including:
Calcutta Ad Club Hall Of Fame.
A & M Ad Person of the Year.
Media Internationals One of the 25 Key figures of the International Ad
Industry 1998.
AAAI- Premnarayen Award in recognition of pioneering spirit and
entrepreneurial vision.
41
THIS IS AN ARTICLE ON MUDRA WHICH WAS PRESENTED IN
ECONOMICS TIMES OF BANGLORE ON 24 TH OCTOBER 2002.
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Mudra plans trade marketing foray
Working on several potential `growth engines'
Mr Madhukar Kamath, Managing Director & CEO, Mudra Communications.
Chennai April 9 2007 Mudra Communications, the largest Indian-owned and
managed ad agency and part of the Anil Dhirubhai Ambani Group, plans to expand
the services it offers. While it is working on several potential "growth engines", Mr
Madhukar Kamath, MD & CEO, Mudra, confirms that the agency is on the verge of
launching a division for trade marketing.
Mr Kamath told Business Line that Mudra is working on many fronts in areas such as
design, public affairs, rural consulting and retail.
"Three other ventures are in various stages of completion," he said, adding that one of
these could follow in the footsteps of trade marketing.
While Mudra wound down the public relations outfit it had earlier, Mr Kamath said
that the agency could either look to acquire one or enter into a strategic tie-up to take
this planned venture forward. For rural, the agency is looking at a consulting and
activation unit and in design, its focus will be on identity and packaging.
As Mr Kamath points out, the agency will do its homework and due diligence on each
potential growth engine and grow it to fruition before launch. However, it will
benchmark it against two criteria - if it is not scaleable or not best in class, it will not
take it forward.
Network expansion
Asked whether Mudra had any plans to expand its agency network through
acquisitions, Mr Kamath said that it had two other agencies in its network through
Interact Vision and Canvas and three brands were enough for the moment. "We will
use these brands to grow businesses. The second agency has to have a distinctive
offering and for me the second agency is Mudra Marketing Services (MMS)," he said,
referring to the Mudra group's portfolio of specialised communication services such
as out-of-home, interactive, promotions marketing, direct and healthcare.
Given that globally below-the-line investments account for over 50 per cent of
marketing budgets, Mr Kamath said that the target for MMS is for it to contribute 40
per cent to revenues and 50 per cent of the bottomline.
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MMS brands
Mudra, with a capitalized billing of Rs 1,000 crore, has several brands under the
MMS umbrella such as Tribal DDB, an interactive agency dealing with new media,
PrimeSite for outdoors, Brand Therapist for healthcare communications, Rapp Collins
for direct response and Kidstuff promos for promotional marketing.
Commenting on the appointment of Mr Bobby Pawar as Mudra's National Creative
Director, who took charge of that position recently, Mr Kamath said that was an
unfulfilled task. While the agency, he said, did good work, the objective was to be in
the top three for creative work. Now, he said the agency had an NCD who brought
international experience blended with homegrown expertise. Mr Pawar returned to
India after a stint with BBDO in the US.
Mudra bags MMTC's creative, media account
Chennai , Jan. 5, 2004
MUDRA has won the creative and media duties for MTC. The account is pegged at
Rs 5 crore and will be handled by Mudra Delhi, says a press release. The brief given
to the agency was to create a fresh, vibrant and a new identity for MMTC.
The other agencies that entered the final round of the pitch included Relioquick and
Grey. Madhukar Kamath, Managing Director & CEO, Mudra, is quoted in the press
release as saying the win is "another strike for our integrated approach to brand
communications."
Mr Sandeep Vij, President, Mudra North & East, said, "Our strategic Total Branding
Solution's approach and a faithful creative rendition of the strategy helped us in
demonstrating to the client our approach to brand building."
MMTC is the largest supplier of iron ore, handling more than one-fourth of India's
total exports. It is the country's single largest trader of metals, handling about 75,000
tones of non-ferrous metals/concentrates per year.
It also handles textiles, mulberry raw silk, building materials, marine products,
chemicals, drugs and pharmaceuticals, processed foods, hydrocarbons and coal. It is
also one of the world's largest institutional buyers of fertilizer, importing in bulk and
effecting high seas sale for fertilizer majors.
Established in 1963, MMTC is one of the two highest foreign exchange earners for
India and is counted among the leading international trading companies. It has a
turnover of over $3 billion, says a press release from the agency.
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MORE ON MUDRA
Case Study (MUDRA)
Henko – Insider Fighting
HENKEL SPICE INDIA LTD (a joint venture between majority shareholder Henkel
of Germany and SPIC of India, with a projected turnover of 350 crore in 2001) has
launched Henko Power pearls. A compact detergent pitched against Surf Excel and
Ariel compact. The price: Rs 155 for a 1-kg pack, Rs 85 for a 500 gm pack and Rs 4
for a 22 gm sachet. By end-December, product spread in all half-million-plus
population towns of India, through distribution network which claims to include over
45
3,000 distributors and over 3,000 distributors and over 3,20,000 dealers. The
concentration will be on all million plus towns, with a skew towards the metros.
Henkel SPIC’s Problem finding and Evaluation study (PRO-FES) had indicated that
stain removal was at the top of the need hierarchy for detergent users. This was over
and above other needs such as colour protection, fabric care and so on. Henko
Powerpearls claims to have ‘stain-removing pearls which go deep down into the fibres
and remove even the toughest of stains’. Power-pearls is a Henkel proprietary
technology and these blue pearls are manufactured at a plant in Belgium and imported
to India. The product also claims to have an enzyme cocktail’ that promises to deliver
excellent results on though stains. The fragrance, another key evaluation parameter, is
also supposed to have been imported from Germany.
What the brand want to convey to its target audience of SEC A and B homemakers
between 25-45 years of age is that ‘ what is clean inside is clean outside’ and only
Henko powerpearls can go deep down into the fibres to clean them thoroughly.
Therefore, the communication is based on the idea ‘ truth is inside’, using the tagline,
‘Ultimate cleanliness Inside and Out’. The desire is to be seen as a ‘modern’,
technologically superior’, ‘premium’ product that is ‘trusted, unsurpassed and
unbeatable on stain-removal efficiency’. About Rs 10 crores is being invested in
promoting the brand in the launch phase. To generate rapid awareness and trial for the
brand, there’s a mix of above- the-line activities. While TV is the lead medium,
there’s road shows and interactive programmes to take the product closer to the
consumer. Henko Powerpearls has a 45 second commercial created by Mudra. The
brand ambassador is Aman Varma, the good Samaritan in star plus’ blockbusters soap
‘kyunki saas bhi kabhi bahu thi’ who got piped at the post by Tulsi’s husband back
from the dead, and is currently controlling the cave doors on the game show ‘khulja
sim sim’.
The compact segment is the Indian market for fabric wash products is estimated to be
around Rs 400 crores, in value, and 26,000 metric tones, in volume. Henkel SPIC says
the segment is growing at around 5 per cent in value terms and 2 per cent in volume
terms. Trends indicate that compacts are the segment of the future, in terms of value
contribution to the overall detergent market. Other top-end innovations such as gels,
46
tablets and so on, which are big segments in more evolved markets, would also be
natural extensions of the compact segment. The company sees its main challenge in
communicating its claimed superiority over the available solutions, and changing the
target consumer’s perceptions to generate trial and user-ship.
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Questionnaire
Q .1 what do you think about Advertisement?
a) Something that you like to see.
b) Something which helps to sell the product.
c) Something which is enjoyable.
d) Something which gives information about the product.
Q .2 Have you heard of any advertising agency?
a) Mudra
b) O & M
c) Saatchi & Saatchi
d) Others
e) No
Q .3 Do you like any of Ads of Mudra?
a) Virendra Sehwag (Reliance India Mobile)
b) McDonalds (What is your bahana?)
c) Karishma Kapoor (Rasna)
d) Amitabh Bachhan (Dabur)
Q .4 Are celebrities required in the Ads?
a) Yes
b) No
Q .5 Should sex appeal be used for making an AD?
a) Yes
b) No
Q .6 Should advertising be done repeatedly?
a) Yes
b) No
Q .7 Does advertising adds to the price as final produce?
a) Yes
b) No
Q .8 Is their need of ethics in advertising?
a) Yes
b) No
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FINDINGS
Q.1 what do you think about Advertisement?
Views of people No. of respondents
Like to see 40
Helps to sell the product 15
Something enjoyable 10
Delivering information 35
After looking at responses about 40 people think that Advertising is something which
they like to see. About 15 people feel that it helps to sell the product whereas 10
people think it is something which gives them enjoyment and 35 respondents feels it
provides information to them about the product.
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Q.2 Have you heard of any advertising agency?
Advertising Agency No. of respondents
Mudra 10
O&M 5
Saatchi & Saatchi 3
Others 15
No 67
The awareness of the advertising agency is very less about 67 people don’t know about
any advertising agency and only 10 people know about MUDRA as an advertising
agency.
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Q.3 Do you like any of Ads of Mudra Advertising agency?
Ads No. of respondents
Virendra Sehwag (Reliance India 5
Mobile)
McDonalds (What is your 40
bahana?)
Karishma Kapoor (Rasna) 25
Amitabh Bachhan (Dabur) 30
About 40 people have liked the Ad of Dabur & McDonalds whereas 25 people liked
Rasna Ad & only 5 people liked the Ad of Reliance Ad of Viendra Sehwag.
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Q. 4 Are Celebrities required in the Ads?
Need of celebrities in Ads No. of respondents
Yes 70
No 30
There is a majority of 70 people which supports the view that celebrities should be
involved in an Ad because it makes the Ad more watch able and brings more weightage
to the product gives their image value to the product and about 30 respondents suggest
that it makes no difference no them if celebrities in an Ad.
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Q. 5 Should Sex appeal be used for making an Ad?
Views of people No. of respondents
Yes 37
No 63
63 people out of 100 has a view as sex appeal should not be used in making an Ad
whereas 37 people has a view that it should be used for making an Ad as it gives more
viewership to the Ad.
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Q.6 Should Advertising be done repeatedly?
Views of people No. of respondents
Yes 70
No 30
Only 30 people thinks that advertising should not be done repeatedly whereas 70
people thinks it should be done repeatedly so that people can remember it.
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Q. 7 Does advertising adds to the price of final produce?
Views of people No. of respondents
Yes 80
No 20
A majority of people, 80 out of 100 has a view that advertising increases the price of
the product as the advertising cost is recovered by increasing the price of product
whereas 20 people suggest that it does not increases the price of the product.
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Q. 8 Is there need of Ethics in advertising?
No. of respondents
Yes 95
No 5
There is large portion of respondents who suggest that there should be ethics in
advertising i.e. 95 people and only 5 people think that ethics are not important to them.
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CONCLUSION
Finally, to conclude on my project, I would like to focus on the future of advertising
in India. There have been several events, changes developments that have occurred in
India over the last 25 years or so. These have indicated that there are bright prospects
for advertising in India.
But still a number of difficulties have been faced. Practical measures to bring about a
congenial atmosphere have to be implied. It is further followed by a discussion on
whether advertising can be regarded in India. There is a definite trend in that direction
and professionalisation of advertising seems to be inevitable. With growing
professionalisation, we can look forward to a glorious future. The future of
advertising in India is very bright since India is one of the fastest growing markets in
the world due to the size of its population and its increasing prosperity.
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Bibliography
BOOKS
o The (un)common sense of advertising
--- MR. Tiwari
o Advertising
--- Michael Vaz
o Advertising management
--- G S Rathod
MAGAZINES
o A&M
WEB SITES
o www.mudra .com
o www.aandm.com
NEWS PAPER
o Economic times
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