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    Advertising notes Advertising notes Document Transcript

    • Advertising Advertising, generally speaking, is the promotion of goods, services, companies and ideas,usually performed by an identified sponsor. Marketers see advertising as part of an overallpromotional strategy. Other components of the promotional mix include publicity, public relations,personal selling, and sales promotion. Advertising involves the process where in a massage is designed so as to promote a product,a thought, an idea or even a service. The concept of advertising has assumed a dynamic form with theuse of the various mediums of communication. From the newspaper, magazines, posters, neon andfluorescent signboards, billboards to the commercial on TV, laser shows to inflated high-rise figuresand objects, advertising has come a long way. The work is formidable as it spearheads a processintended to attract, modify, change and influences public opinion. From the local business to multinational firm and all need to advertise. While politicians,social organizations, government special groups need to advertise their motto, national airlines, automobile manufactures, food and consumer goods manufacturers have to reach the consumer.Specialist products and services are often advertised through trade magazines and exhibitions. Latelymail-shots, handbill circulation, special offers have become very popular. There are still other waysof advertising. There are window displays, display on telephone directories, transit sign on buses,lamp posters, banners, etc. Advertising through the electronic media has been perhaps the mostpopular medium. Advertising, as an effective medium, uses a variety of techniques to create effectiveadvertisements. A basic appeal is at the heart of advertising. Slogans and product characters arecreated to catch the attention of the viewers. Most winning advertisements would encompass factualinformation with emotional appeal. The advertising industry has three major sectors. • Business or organization which wishes to advertise, • Media which provides the medium for advertising and • Ad-agency which creates the ad to suit the need of the firm. Ad agencies vary in the size and turnover. Nevertheless the process of creating an ad remainsthe same. The annual expenditure on the advertising has been to the tune of Rs 8000 crores and thefigure could be higher. USA has projected media spending on advertising on the net to approximately$7700 by the turn of the century. The scope for advertising professionals certainly shows an upwardtrend.Work Environment Ad agencies are based within office settings. Accounts Executives, Account Planers, MediaExecutives, Art Directors and Copywriters spend most of their working time in agency office.Account
    • Executives have to travel extensively, visiting clients and suppliers. While other staff, traveloccasionally to attend meetings with clients, or visit locations during film production. Ad agenciesare very busy places and often work is on till late hours. In 2004, workers in the industry averaged33.8 hours per week, a little higher than the national average of 33.7. Most employees in advertising and public relations services work in comfortable officesoperating in a teamwork environment; however, long hours, including evenings and weekends, arecommon. There are fewer opportunities for part-time work than in many other industries; in 2004, 14percent of advertising and public relations employees worked part time, compared with 16 percent ofall workers. Work in advertising and public relations is fast-paced and exciting, but it also can bestressful. Being creative on a tight schedule can be emotionally draining. Some workers, such aslobbyists, consultants, and public relations writers, frequently must meet deadlines and consequentlymay work long hours at times. Workers, whose services are billed hourly, such as advertisingconsultants and public relations specialists, are often under pressure to manage their time carefully.In addition, frequent meetings with clients and media representatives may involve substantial travel. Most firms encourage employees to attend employer-paid time-management classes, whichhelp reduce the stress sometimes associated with working under strict time constraints. Also, withtoday’s hectic lifestyle, many firms in this industry offer or provide health facilities or clubs to helpemployees maintain good health.Personal characteristics People in the accounts or client servicing i.e., the Account Executives, Director andplaner need to be adept at negotiating. The ability to communicate easily is vital. They face thechallenge of competing in the market with other agencies; hence need to have drive determinationand tremendous physical and mental stamina. Sensitivity to consumer behavior, trends and humannature are important for success in advertising. They should be able to assimilate the client’srequirements and in a lucid style prepare briefs for other departments. The ability to get the workexecuted by all departments is specially required. The creative people need a good visual ability, languageartistic skill. Copywriter requiresliterary ability but an interest in commercial success which comes from understanding what motivesthe target audience is important. Writers must be able to work, to a strict brief, within restricted spaceand in limited time. Advertising must follow legal requirements and rules hence considerablecreative self-discipline is needed. A feeling for words, economy of style and imagination is needed. The copywriter works with the art director, and the creative director. The work can be veryfrustrating particularly when an idea is rejected by the art director and amendments made by thecreative director and the client. This can often restrict the imaginative capacity of the copywriter. Theopenness to stand criticism is absolutely essential.
    • Media Executives, Planners and Executive directors with others in an integrated team. Theyshould be able to interplant a great deal of information. Media buyers spend most of their timenegotiating over the telephone to buy space or time. Attention to detail is needed for keeping to thebudget allocated.Advertising Agency Getting the best out of advertising is a highly skilled job. It requires the inputs of experts inmany different fields like writers, artists, photographers, designers, television production crews andmany others. Even the biggest advertisers cannot afford to employ all these experts. Almost alladvertising is therefore arranged through an advertising agency which provides the necessary skill toturn the message into a memorable and effective advertisement. Advertising has not only come toreflect pop culture but has also become an important element of economic growth. Today, everyperson connected with the Indian economy or public should be fully aware what advertising really isand why effective advertising campaigns can be performed by full-service advertising agencies. Advertising agency is one of the most important components of advertising industry. It hasplayed a significant role in the development of modern advertising. The advertising agency hasevolved to provide the specialized knowledge, skills and experience needed to produce effectiveadvertising campaigns. It provides a quality range of service greater than any single advertiser couldafford or would need to employ. An advertising agency is a firm that specializes in the creation,design and placement of advertisements, and in the planning and execution of promotionalcampaigns for products and services of their clients. The Association of Advertising Agencies of America (AAAA) defines advertising agency as“An independent business organization composed of creative and business people who develop,prepare and place advertising media for sellers seeking to find customers for their goods andservices.” The glamour, the unlimited expense accounts, and the exhilarating lifestyle - all these popularportraits of life in the big-time advertising agency are misleading. Advertising is demanding,challenging, hard work. It is also interesting and fulfilling. Advertising requires a mix of personalabilities, considerable business skills, and an ability to work under pressure to meet deadlines.Compared to larger industries, there are never many entry-level positions open in advertisingagencies (dozens rather than hundreds). And competition is stiff. The industry, however, is constantlyon the look out for skilled, bright, articulate, creative and personable men and women with a well-rounded education and a good business sense. An advertising agency or ad agency is a service business dedicated to creating, planningand handling advertising (and sometimes other forms of promotion) for their clients. An ad agency isindependent from the client and provides an outside point of view to the effort of selling the clientsproducts or services. An agency can also handle overall marketing and branding strategies and salespromotions for its clients. Typical ad agency clients include businesses and corporations, non-profit
    • organizations and government agencies. Agencies may be hired to produce single ads or, morecommonly, ongoing series of related ads, called an advertising campaign. History of ad agency1. Period of early growth 1841 - 1865. The first advertising agency on record in the US was Olney B. Palmer. In 1841, Palmerorganized a newspaper advertising and subscription agency. By 1849 he had established offices inthe cities of New York, Boston, Baltimore and Philadelphia. At this early fate, there were no directions of newspapers and no published rates for space to be sold to advertisers. Palmer acted as an informatory agent in these matters to prospective advertisers. In essence, he served as a salesman of space for publishers and they in turn, gave him a commission of 25% of such sales. The publishers found these methods of selling more effective than trying to sell direct and advertisers, wishing to reach more than one territory found value in such service. Completion increased, and the usual price cutting occurred. Success seemed to depend upon one’s ability to bargain with the publisher and advertiser. The natural result of this policy was a general reduction in profits to the agency; this led to a search for new competitive tools which would return a profit.2. Wholesaling Period 1865 – 1880 George P. Rowell, who opened an agency in 1865, supplied the new competitive tool. Rowellcontracted with 100 newspapers to sell him a column of space each week for a year. Throughout thewholesaling period, the agent continued as a seller of space for publishers. This took on different forms, one of which was the exclusive right to sell space in certainpublishers. Thus, one agency developed a controlled list of religious papers, another a “List ofThirsty” household magazines. Any advertiser wishing to buy space in the controlled publicationswas forced to buy through the exclusive wholesaler for that paper.3. Semi Service Period 1880 – 1917 The wholesaling phase of agency work was checked when publishers began to establish theirown sales departments for selling space. Some of these departments sold direct to the advertiser,others to the general advertising agency. Thus, the agency was forced to turn its attention somewhat
    • away from the particular function of selling space for publisher and toward the function of buyingspace for the advertiser. Early in the semi service period agencies offered to write the copy for the advertiser, thusgiving added weight to their claim of being servants of the advertiser. This concept of service wasslow to develop; but in the early part of the 20th century, agencies began to emphasize strongly this“free” service. One agency in 1905 advertised that it paid $28,000 a year for a copywriter. Thesemethods increased the agency business and forced most space sales to be made through them.4. Service Period 1917 – Present By 1917 the idea of service had grown until not only was copywriting done for the advertiserbut many other things as well. During the service period, many agencies have grown to the positionof advertising and marketing counselors for advertiser. The service elements has modified the position of agencies to such a degree that radio andtelevision, network and magazine publishers have come to depend upon them as the primary channelthrough which time and space are sold. Publishers claim to have had an important part inencouragements of agencies to provide extra service to the advertiser. By providing advertisers withthe kind of assistance that will improve the effectiveness of advertising, more time and spacenaturally will be sold.Advertising Process When preparing your search proposal, you should take into account that the “lead-in” timeneeded to place an ad can vary anywhere from days to months depending on the publication. Youshould plan to have your ad approved and an estimate of the cost done at least one month prior to thedate when you want the ad to be published. The advertising process for professional staff and facultypositions involves five basic steps: 1. Writing an Ad 2. Getting Approval for the Text of the Ad 3. Estimating the Cost of the Ad 4. Placing Ads & Posting Announcements 5. Paying for AdsTypical work flow in agency STAGE WORK PERFORMED AT STAGE • Briefing from the client Briefing Stage • Internal briefing to the creative and media • Any research briefing if required • Ad campaign and media plan development Creation Stage • Internal review and finalization
    • • Presentation to client and approvals • Any pre-testing if required • Budget and estimate approvals Production Stage • Production of film, press ads, collaterals • Media Scheduling and media booking • All release approvals for creative & media • Material dispatch to media Post Production Stage • Media release monitoring • Any post-testing if required • Billing and collectionTypes of advertising agencies Ad agencies come in all sizes, from small one- or two-person shops to large multi-national,multi-agency conglomerates such as Omnicom Group, WPP Group, Interpublic Group of Companiesand Havas. Some agencies specialize in particular types of advertising, such as print ads or televisioncommercials. Other agencies, especially larger ones, produce work for many types of media. Lately,Search Engine Marketing (SEM) and Search Engine Optimization (SEO) firms have been classifiedby some as agencies due to the fact that they are creating media and implementing media purchasesof text based (or image based in some instances of search marketing) ads. This relatively youngindustry has been slow to adopt the term agency however with the creation of ads (either text orimage) and media purchases they do qualify technically as an advertising agency as well as recentstudies suggest that both SEO and SEM are set to outpace magazine spending in the next 3-5 years. Not all advertising is created by agencies. Companies that create and plan their ownadvertising are said to do their work in house. Today selection of ad-agency is very difficult. Theadvertiser should make list of all possible agencies that can serve his purpose and the agency bestqualified to provide required and effective services are selected. Some advertiser may select morethan one advertising agency to handle effectively the various product lines. Following are major types of advertising agencies that are currently serving the advertisingindustry.Full Service Agencies A full service ad agency is one that provides a range of marketing services. A full servicesagency provides services that are directly related to advertising such as copywriting, artwork,production of ads, media planning etc. It also provides such services in respect of pricing,distribution, packaging, product design etc.
    • Modular agencies A modular agency is a full service agency that sells its services on a piece meal basis. Thusan advertiser may commission an agency’s creative department to develop an ad campaign whileobtaining other agency services elsewhere. Or, an advertiser may hire an agencies mediadepartment to plan and execute a program for advertising that another agency has developed. Feesare charged for actual work undertaken.In House agencies Those companies, which prefer to have closer control over advertising, have their own in-house agency. This type is owned completely by the advertiser. It performs almost all functions thatan outside advertising agency would perform and that’s why some people refer to it as full-serviceadvertising department of the advertiser. However, the difference between an in-house agency and anadvertising department is that the in-house agency can undertake to serve several other clients, if theowner so desires, but an advertising department solely undertakes that work of its owner and not ofoutside clients. Secondly an advertising department may not be equipped the personnel andfacilities, which an in-house agency would posses. In-house agency not only provides control overadvertising schedule and costs, but also offers convenience for its owner, because it is just availablein the same building as that of the head office of advertiser. Such in-house agency also benefits the owner as it can bring revenue through agencycommission that are offered by the media and by way of fees that are collected from outside partiesfor undertaking their advertising work. Such revenue increases the funds and profits of the company.There is another version of in-house agency whereby advertiser handles the total agency functions bybuying service unit to buy time, space and place the ads. Such an In-house agency is anadministrative center (under the direction of an advertising director) that gathers and directs varyingoutside for its operation.Creative Boutiques These are shop agencies that provides only creative functions and not full-service. Thespecialized creative functions include copy writing, artwork and production of ads, they charge a feeor percentage of full service agencies, and as such most of them convert into a full service agency ormerge with other agencies to provide a wide range of services.Mega agencies A significant of 1980’s is the development of mega agency. Agencies worldwide merge witheach other serve their clients in much better way. It was in 1986, Saachi & Saachi, a London basedagency who started the movement and at present it is the third largest agency network in the world.The Specialists Agency There are some agencies who undertake advertising work only in certain areas. there areagencies that specialize only in financial services or only in publicity or only in point-of-purchase
    • material etc. for instance Soubhagya advertising agency concentrate on specialized in financialadvertising.The functions of an advertising agency: • To accelerate economic growth and create public awareness • To provide a total, professional, experienced service which is very personal in its nature • To take the advertisers message and convert it into an effective and memorable communicationThe Benefits of Using an Advertising Agency • Added Expertise • Media Knowledge and Unbiased Advice • Easier Administration • Media Buying • Quality Control • Information • Fending off the media • And when things go wrong • Cost Saving • Time SavingServices offered by ad agencyTotal Advertising Services Strategic planning, creative development and media services for advertising, particularly intelevision, newspapers, magazines and radio; providing the best creative designed to capture theimagination of consumersMarketing Services Provision of a number of advertising related services, including sales promotion, marketresearch, PR and event marketing.e-Solution Services e-solution services, including system integration services, e-business consulting and customerrelationship management (CRM), Search Engine Marketing (SEM) and Search Engine Optimization(SEO) and e-promotions using the Internet and mobile.Content Business
    • Sales of sponsorship, broadcasting and other rights, and the production and marketing of suchmedia / content as sporting events, films, TV programs, animated content, music and other forms ofentertainment.Integrated Media Services Bringing value to both clients and media-related companies by offering a wide range ofmedia solution servicesSales Promotion Providing comprehensive sales promotion planning designed to complement mass media andother activitiesEvent Marketing Assisting clients by providing dynamic vehicles for their messages in the form of on-the-spotinteractive communicationsIntegrated Branding ServicesAssuring clients the highest quality of branding services for their communication needsOrganization Structure The activities within an advertising agency are typically divided into 4 broad groups: accountmanagement, the creative department, media buying, and research. These divisions are usuallyphysically separated, although all four areas work closely together to produce an advertisingcampaign in its entirety. Account managers usually have daily interaction with a counterpart at the clients office andcoordinate the activities of the other departments according to the clients wishes. The creativedepartment designs original themes or concepts for ads, while the media department places finishedads within the media in which they will receive the most exposure to a target audience. The researchdepartment provides data about consumers to help the agency and the client make informedadvertising decisions. Recently added to advertising agencies roster of services are public relations, directmarketing, and promotional services. Other activities that used to be completed by outside vendors,such as photography and high-tech print work, have been brought in-house in many agencies.
    • ORGANIZATION CHARTType: 1 Board of Directors Managing Director Client Services Director Creative Director Servicing Group Creative Groups Audio Visual Media Language Research Studio Production Finance / Secretarial / Legal Accounts Personnel Branches
    • Type: 2Departments & PersonnelAccount Services / Account Management The other major department in ad agencies isaccount services or account management. Accountservice employees work directly with clients andpotential clients, soliciting business for the ad agencyand determining what clients need and want theagency to do for them. They are also charged withunderstanding the client’s business situation andrepresenting those needs within the agency, so that adscan be brought to bear on the correct problem.
    • Account planner / Director The Account Planner is the main planning executive who works in partnership with the clienton long-term account planning. He knows what is happening in the market place, the attitude of theconsumer towards the client’s as well as the competitor’s brands. Account Planner Deals with senior members of the client organization. He is responsible foragency performance as a whole with limited involvement in routine agency projects. The AccountDirector is responsible for forward, long-term planning, deployment of agency personnel and overallaccount profitability. The account planner was originally employed to "represent the consumer" in the advertisingi.e., find the best way to pitch the clients products to people by better understanding them, what theywant and how to talk to them. Plannings role has expanded considerably since it was originallyintroduced. Planners are now also brand strategists and, to a certain extent, media strategists - usingconsumer insights to understand where and how people are most receptive to certain messages. Inmany agencies, there is a dedicated media department and there are also some large and smallagencies that exclusively handle media strategy and media buying.Account Supervisor A middle management position: he or she manages the account within a medium termperspective. This includes strategic planning, market analysis, competitive activity analysis, as wellas recognizing and capitalizing on business building opportunities.Account executives Account executives represent their ad agency to their clients. They understand sales andadvertising problems of the client and address the client’s need to the advertising approach. Inadvertising ‘The account’ is the client. The business of each client with the agency is referred to asan account. An ad agency handles assignments of a number of clients. A client’s business is assignedto a team of people from the ad agency with the Account Executive at the head of team. An accountexecutive may be handling the business of number of non-competing clients at the same time. TheAccount Executive supervises his team of people drawn from all departments while planning,scheduling and executing the assignment. Before a campaign is launched research on the client’s business methods, the product to beadvertised is made. With this background information there is a meeting of the creative media andmarketing division along with members of the client’s team. The objective of this meeting is todefine the nature and use of the product, and the target users as well as other competing brands. Afterall the information is assigned the agency team prepares a draft brief with recommendations. Theseare presented to the client by the Account Executive. The brief and budget are discussed and afterfinalization of work. The Account Executive motivates guides and coordinates the activities so thatdeadlines are met and the client’s expectations become a reality. He spends a lot of time keeping theclient updated on the progress. The Agency’s Director too has to be kept informed. This is donedirectly in smaller firms but in larger firms there may be an Account Planner or Director. The chief
    • role of account executive is to extract the best possible work from the other departments of theagency. They are in daily touch with clients.Creative department The creative department is the people whocreate the actual ads - form the core of an advertisingagency. Modern advertising agencies usually form theircopywriters and art directors into creative teams.Creative teams may be permanent partnershipsor formed on a project-by-project basis. The art directorand copywriter report to a creative director, usually acreative employee with several years of experience.Although copywriters have the word "write" in their jobtitle, and art directors have the word "art", one does notnecessarily write the words and the other draw thepictures;they both generate creative ideas to representthe proposition (the advertisement or campaigns keymessage). Creatives frequently work with outsidedesign or production studios to develop and implementtheir ideas. Creative department consist of two keypersonnel i.e. art director and copywriters. Thesepositions and ad agency is explained below.Art Directors Art Directors in Advertising arent necessarilythe head of an Art Department although the title maysuggest it. They typically work in teams with acopywriter. look and Together the team works on a concept and design for commercials, printadvertisements, and any other advertising medium. The art director is mostly responsible for thevisual look and feel of the creative product as well as the concept. The Art Director ensures that theend product has the same feel as the original concept. The copywriter has ultimate responsibility forthe products verbal and textual content, and both are responsible for coming up with big, effectiveand persuasive ideas. Depending on the competencies of each, they may share tasks that aretraditionally designated for one or the other, for instance, an art director may suggest certain wordingand a copywriter may suggest a certain aesthetic for a project.
    • Art directors may also oversee a team of junior designers, image developers and productionartists. In a smaller organization the art director may fill these roles as well. In a larger organization,art directors may oversee other art directors in a senior/junior art director relationship.Copywriter A copywriter is a person who writes text, or copy, for clients. Most copywriters work inadvertising or marketing, producing copy thats intended to persuade a reader to buy a product orservice or otherwise take action. Copywriting involves providing words, which are read or heard inadvertisements. This may include slogans or jingles or detailed text for catalogues, brochures,leaflets and journals. Copywriting also takes the form of script for television and film commercialadvertisement. Copywriters can contribute words and ideas to print ads, catalogs, billboards, commercials,brochures, postcards, online sites, e-mail, letters and other advertising media. Ultimately, the kinds ofads and media a copywriter will work in depend on his or her own inclination and what clients askfor. A copywriter often works as part of an advertising team. Agencies and advertisingdepartments partner copywriters with art directors. The copywriter has ultimate responsibility fortheir ads verbal and textual content, the art director has ultimate responsibility for the visual look andappeal, and both are responsible for coming up with big, effective, persuasive ideas. Copywriter and visual art work go hand in hand and this is the work which goes on in theagency’s creative department. Briefs from the Account Executive outlining the target group for theadvertisement and information about the product, followed by discussions with the account planner,along with research material, and perhaps a meeting with client put the creative department to work. The essential skill of the Copywriter lies in interpreting and understanding the mind andneeds of the target audience and the characteristics of the product. They must identify what it is thatwould make people want or need the product being promoted. The Art Director and the Copywritertogether then work on an idea that should catch the attention of the public and put the selling point ofthe product across; many ads are discarded, reincarnated and created. The final product is a teameffort of the Copywriter and Art director with each other having suggested alterations to the other. The more successful creations are then shown to the creative director who in turn maysuggest further modifications. Final drawings are then produced and shown to the client. Once theclient accepts the concept and layout is modified and the details filled in. The design and copy is sentto the production team for typesetting, photographs and drawings for printed advertisements orfilming for television commercials. Giants in the copywriting field include David Ogilvy, William Bernbach, Robert W. Blyand Leo Burnett. Many creative artists spent some of their career as copywriters before becoming
    • famous for other things, including Dorothy L. Sayers, Joseph Heller, Terry Gilliam, Salman Rushdie,and Don DeLillo.Creative Department people need following attributes for this back-breaking job. • A good psychologist. • Willing and able to set high standards. • An efficient administrator & Research minded • Capable of strategic thinking – ‘positioning’ and all that. • Equally good at package goods and other kinds of accounts • Well versed in graphics and photography • A hard worker and fast • Slow to quarrel • Prepared to share credit for good work, and accept blame for bad work • A good presenter & good recruiter
    • Creative Process Policy Client brief to Group Manager Research Analysis & Evaluation of Brief Preliminary Strategy note More information required Initial Strategy meeting Revised Strategy note Discuss with client Creative Brief Discussion of initial Concepts with group manager Revise Presentation to Agency Plans Board Finalization of concept Group manager presents concepts to clients Group manager presents concepts to clients Finalization of execution Pre - Testing
    • Digital Studio Often called the DTP section, this set of people work on the final artworks that are sent tothe various publications for release.DTP Artist DTP Artist is Desk Top Publishing worker, a special name used in Advertising agencies,Publisher, Color separation, Printing and other related industries. A DTP Artist usually skilled inmultiple computer design applications, such as QuarkXPress, Adobe Photoshop, AdobeIllustrator, CorelDraw, Adobe InDesign CS, and others. DTP Artist is formerly known as FAArtist (FA: Finishing Artwork), the name changed due to the digital revolution. DTP Artist is a common name used in India, Malaysia, Singapore and other countries. InAmerica, advertising DTP associate is the term frequently used to describe graphic artistsworking for in-house art departments. American advertising agencies separate the role of graphicartists between art directors and production artists.Visualizer Visualizer is a position designed by Advertising agencies to assist Art directors, inproducing quick & good quality artworks, for presentation (to please the clients). The salary of aVisualizer is very low, usually an average salary of a Visualizer is less than half, or sometimesquarter, of the salary of an Art Director. Visualizer is a special name used in advertising agenciesin non-native English speaking countries, Malaysia, Singapore and others.
    • Media Department Size and scale of the advertising is not important. Whats in the mind is important. The big bucks are not being spent on production, they are being spent on broadcasting. The Media Department of an advertising agency is responsible for the planning and placement of advertising time and space. It is a function that in recent years has undergone considerable change. The proliferation of media forms and the escalating cost of media time have brought a new focus to the Agency Media Department.Media Executives The main task of the media executives is to place the advertisements where they will be seen by the right target audience keeping the budget in the mind. Hence this job requires planning, research and buying space in the press or time for commercial radio and television. In large agencies this task may be allocated to two or three different specialist. There may be a media planners and media buyers. In small agencies the task may be handled by the same person.FUNCTIONS OF THE MEDIA DEPARTMENTMedia Planning The Media Department is responsible for the preparation and the actual presentation ofthe media plan. This department recommends media and media vehicles that in the agencysopinion best fulfill the clients marketing and advertising objectives. The recommendations arebased on a careful assessment of the clients strategic requirements and the subsequent matchingagainst these of the various available media forms. In the process there is great reliance onresearch and the known strengths and weaknesses of various media. Computer analysis isfrequently used to sift through and compare all the media audience data that is available. Thefinal media plan will present a carefully thought out recommendation that delivers the righttarget group, at the right time, in the right place, with the right number of messages. Media planners have access to up-to-date information about each advertising medium.This includes the relationship and circulation figures for news papers and magazines, viewing
    • figures for different times of the day, listening audience figure for commercial radio stations etc.They are also aware of the various locations for hoarding and billboards. They are a vast array ofchoice. There are thousands of brands to advertise the work is challenging. It is though theselection of the right media that a good media department can save large advertisers money aswell as give credibility.Media Buying Once a media plan has been approved by a client, it must then be purchased. Theprocedures for this vary according to the medium under consideration. In print media, forexample, most purchases are made on the basis of rate cards issued by various newspapers ormagazines. In broadcast, however, negotiation is involved. The objective of this negotiation isquite simple - to achieve maximum media efficiencies in obtaining the most for the least, or, inother words, the most audience for the least amount of money. Media buyers buy advertising time/space for the agency’s client. The work closely withthe media planer if the two functions are carried out separately. Television and newspaperadvertising are expensive. The media buyer’s expertise is in the negotiating the best possible dealfor the client. The commercial breaks with the most viewers are the most expensive and so alsothe newspapers and magazines with theMedia Estimating Every single purchase made by the Media Buyer must be recorded in advance of theactual running of the advertisement. This is to enable the agency to bill the client for moniesspent on their behalf and to check the invoices submitted by the media. This document is calledan estimate.Marketing Research DepartmentMarketing research is three things: 1. The identification of information needs (i.e. defining the problem) 2. The systematic gathering, recording, analyzing and interpreting of data about problems relating to the marketing of goods and services (i.e. providing a solution to the problem)
    • 3. The analysis and evaluation of action taken on the basis of information (i.e. monitoring and modifying the initial solution). The single most important reason then for doing marketing research is to guide themarketer in the analysis, planning, implementation and control of marketing andcommunications programs to satisfy both customer needs and organizational goals. It does thisby providing decision-makers with information necessary to choose between alternative coursesof action. While marketing research information can never eliminate all risk from decisionmaking, good research can and should substantially reduce the odds of failure. In short, theessence of marketing research is "problem-solving".Creative Services Department The creative services department may not be so well known, but its employees are thepeople who have contacts with the suppliers of various creative media. For example, theywill be able to advise upon and negotiate with printers if an agency is producing flyers for aclient. However, when dealing with the major media (broadcast media, outdoor, and the press),this work is usually outsourced to a media agency which can advise on media planning and isnormally large enough to negotiate prices down further than a single agency or client can. In small agencies, employees may do both creative and account service work. Largeragencies attract people who specialize in one or the other, and indeed include a number of peoplein specialized positions: production work, [Internet] advertising, or research, for example.Event Management and Promotion department These are marketing support services which coordinate with external suppliers and useinternal resources to implement the clients plans. The work here is coordination, with specificresponsibilities being more specialized. Event management, an industry that is just taking off inIndia, plans, organizes and executes live events, which could include a brand/product launch, anexhibition, a concert or even a conference.Traffic Manager (system administrator) An often forgotten, but still important, department within an advertising agency is traffic.Typically headed by a traffic manager, this department is responsible for a number of things.First and foremost is increasing agency efficiency and profitability through the reduction of falsejob starts, inappropriate job initiation, incomplete information sharing, over- and under-costestimation, and the need for media extensions. In small agencies without a dedicated trafficmanager, one employee may be responsible for managing workflow, gathering cost estimates
    • and answering the phone, for example. Large agencies may have a traffic department of ten ormore employees.Radio & TV Broadcast Production Department The Broadcast Production department is responsible for making television and radiocommercials to be aired across the country. Each project is different and the job demands bothcreative and administrative ability. The most successful people in Broadcast Production havestrong aptitudes in both creative and administrative areas. This means that they should be activein creative spheres. They must also have a very high organizational ability as there are a myriadof details to attend to in any production.There are two basic classifications of jobs in Broadcast Production: • Producer • Production Co-ordinator and/or Traffic Co-ordinatorThe production teams main function is to purchase the services of the correct film or videotapeProduction Company and to administer and produce the TV commercial production on behalf ofthe advertising agency and the client.The Producer The Producer is responsible for supervising all aspects of a TV commercial production,from the selection of the production company through budgeting, scheduling, casting, locations,sets, music creation, production meetings, filming, editing, sound mixing, to the final approval ofthe finished commercial. This means that the Producer must be completely familiar with allaspects of the film and videotape process, including animation, live action, and stop motion.Production Co-ordinator The function of the Production Co-ordinator is to work with one or more Producers,providing administrative and creative support in such fields as budgeting, scheduling, producingproduction books, and auditioning talent. A Co-ordinator very often will handle revisions andadaptations of TV commercials with the production company. They may also have experience inBroadcast Traffic learning other rules on talent or how to "traffic" a complex television schedule.Print Production Department Print Production, more than any other agency department, relies on graphic arttechnology to help give birth to an ad. If there are to be no complications in the ads delivery tothe printed page, then strict technical rules must be followed. Of course, rules were made forvalid reasons. An ad must obey that magazines exact size and film requirements. To defy thosespecifications, even slightly, would make it incorrect and therefore not publishable.
    • What Print Production People Do?Print production people: • Meet deadlines. Publications insist on strict deadlines and its crucial that production pay strict heed to them. • Use sophisticated technology. To ensure that those deadlines are met, the Production Manager must possess a solid working know- ledge of the latest graphic art technology. As technology changes it is now imperative to be computer literate and understand their function. • Co-ordinate and manage. The Print Production departments job is to ensure that print advertising is reproduced correctly whether in colour or in black and white. This means exact attention to detail and it is up to the Production Manager to provide the specifications to suppliers. • Skills and training. What are the skills necessary to make it in Production? Technical art expertise and a willingness to keep abreast of new developments; an aesthetic feeling for some of the craftsmanship involved in the graphic arts; accounting and math skills; and a sharp eye for detail. Computer literacy and an understanding of systems is another necessary skill. Production skills arent something that can be bought, nor are they something that can be learned overnight. It takes a few hard years of training under the wing of an experienced Production Manager.Agency PersonnelProduction Team Ad agencies may have their production team which includes Photographers, Printers,Typesetters, Television Producers, etc. but since the work is very diverse most ad agenciescoordinate with freelancers or established production units for task to be completed. Productionworkers are concerned with all the technical process of turning the final copy and art work into areal ad for print, TV, radio.Storyboard artist Storyboard artist is a profession specialize in creating storyboards for advertisingagencies and film productions. A storyboard artist is able to visualize any stories using quicksketches on paper at any moment. Quick pencil drawings and marker renderings are two mostcommon traditional techniques, nowadays Flash, Photoshop and other storyboard applicationsare gradually taking over, digital camera is one of the latest techniques in creating storyboards. Storyboard artist is also known as illustrator or visualizer, they are mostly freelance. Artdirectors or film directors are the most likely type of peoples that would contact storyboardartists and the deadline is always tight, overnight working is very common.
    • Most used storyboard applications are the Corel Painter and the Adobe Photoshop, somestoryboard artists nowadays begin and finish their work on computers using drawing softwareand digital pencils like Wacom (Graphics tablet), in this way they save effort and most importanttime which always has the first periority for a storyboard.Graphic designer Graphic design is a form of visual communication using text and/or images to presentinformation, or promote a message. The art of graphic design embraces a range of cognitiveskills and crafts including typography, image development and page layout. Graphic design isapplied in communication design and fine art. Like other forms of communication, graphicdesign often refers to both the process (designing) by which the communication is created, andthe products (designs) such as creative solutions, imagery and multimedia compositions. Graphicdesign is traditionally applied to static media, such as books, magazines and brochures.Additionally, since the advent of computers, graphic design is utilized in electronic media - oftenreferred to as interactive design, or multimedia design. There are varying degrees of graphic design. Graphic designer involvement may rangefrom verbally communicated ideas, to visual rough drafts, to final production. In commercial art,client edits, technical preparation and mass production are usually required, but usually notconsidered to be within the scope of graphic design unless the client is also a graphic designer. Although the term graphic designer was first coined in the 20th century, the story ofgraphic design spans the history of marks of humankind from the magic of the caves of Lascauxto the dazzling neons of Ginza. After all, they share the same elements, theories, principles,practices and languages, and sometimes the same benefactor or client. In advertising art theultimate objective is the sale of goods and services. In graphic design, "the essence is to giveorder to information, form to ideas, expression and feeling to artifacts that document humanexperience. ”Fine art refers to arts that are concerned with beauty..."Advertising interns Advertising interns are typically university juniors and seniors who are genuinelyinterested in and have an aptitude for advertising. Internships at advertising agencies mostcommonly fall into one of six areas of expertise: account services, creative, interactive, media,public relations and traffic. An internship program in account services usually involves fundamental work withinaccount management as well as offering exposure to other facets of the agency. The primaryresponsibility of this position is to assist account managers. Functions of the accountmanagement intern may include:
    • • Research and analysis: Gathering information regarding industry, competition, customer product or service; as well as presenting findings in verbal/written form with recommendations • Involvement in internal meetings and, when appropriate, client meetings • Assisting account services in the management of creative projects Interns often take part in the internal creative process, as is illustrated in this agencyintern website, where these interns were charged with creating and managing a website as well asdeveloping an advertising campaign. Hands on projects such as this one help interns learn howstrategy and well-developed marketing is essential to a sound advertising and communicationsplan. During their internship, the intern will experience the development of an ad, brochure andbroadcast or communications project from beginning to end. During the internship, the internshould be exposed to as much as possible within the agency and advertising process.Famous advertising agencies in world • BBH (Bartle, Bogle & Hegarty) -- famous for Audi, Levis, Johnnie Walker, British Airways. • Crispin Porter + Bogusky --famous for Subservient Chicken, works with Burger King, Virgin Atlantic Airways, Volkswagen • Wieden + Kennedy -- famous for remaining an independent agency; as well as Nike "Just Do It", ESPN "This Is Sports center", Coke, EA, Starbucks, ESPN, Honda UK. • JWT (formerly J. Walter. Thompson) -- works with Kelloggs, Unilever, Diageo. • Leo Burnett -- works with Procter & Gamble, Kelloggs, McDonalds, Marlboro, Hallmark, Heinz. Famous for creating characters such as Tony the Tiger, Snap Crackle & Pop, the Jolly Green Giant, the Marlboro Man, and Charlie the Tuna. • The Martin Agency -- UPS, GEICO, NASCAR, Miller (Lite, MGD), Hanes, and others
    • • N.W. Ayer & Son -- the first ad agency in the United States, coined "When it rains it pours" (Morton Salt), "A diamond is forever" (De Beers), "Reach out and touch someone" (AT&T), "Be all you can be" (United States Army), and others • Ogilvy & Mather -- famous for the Rolls-Royce print ad with the headline "At 60 miles an hour the loudest noise in this new Rolls-Royce comes from the electric clock", among other ads • Saatchi and Saatchi -- most famous for working with the Conservative Party especially during the 1979 general election (Maurice and Charles Saatchi later left and set-up M&C Saatchi) • TBWAChiatDay -- works with Apple Computer (including the "Think Different" campaign), adidas, and Sony Playstation. Responsible for creating the fcuk brand and (in the UK) Wonderbra advertising.Future Advertising is a growing industry that offers great scope for creative people. Each yearnew markets open up and communication channels become more sophisticated, reaching out tomany more people, through different media. As more and more multinationals are coming toIndia to capture the unexplored huge consumer market, the demand for advertising professionalsis bound to increase. According to an estimate, the Indian advertising agency will need over6000 trained professionals every year. With the countrys vast rural market also becoming thefocus of advertising, the industrys turnover is bound to multiply thereby creating a huge demandfor ad professionals. With the dawn of the Internet have come many new advertising opportunities. Popup,Flash banner, advergaming, and email advertisements (the last often being a form of spam)abound. Each year, greater sums are paid to obtain a commercial spot during the Super Bowl.Companies attempt to make these commercials sufficiently entertaining that members of thepublic will actually want to watch them. Particularly since the rise of "entertaining" advertising, some people may like an advertenough that they wish to watch it later or show a friend. In general, the advertising communityhas not yet made this easy, although some have used the Internet to widely distribute theiradverts to anyone wishing to see or hear them. Another significant trend to note for the future of advertising is the growing importanceof niche or targeted ads. Also brought about by the Internet and the theory of The Long Tail,
    • advertisers will have an increasing ability to reach narrow audiences. In the past, the mostefficient way to deliver a message was to blanket the largest mass market audience possible.However, usage tracking, customer profiles and the growing popularity of niche content broughtabout by everything from blogs to social networking sites, provides advertisers with audiencesthat are smaller but much better defined, leading to ads that are more relevant to viewers andmore effective for companies marketing products.Conclusion In today’s world which is fast moving & dynamic, people’s wants, need and desires arechanging; it’s very important to know them and give them what they want. This is the mainobjective of advertising where ad agency plays major role in market research, making ofcreative, launching it in the market, taking the feedback of consumer and making any productfamous and acceptable among consumers. Ad agencies are playing an important role in shapingpresent and future of not just selected brand but of entire company. There is no one -- sure-fire -- best way to advertise your product or service. It isimportant to explore the various advertising media and select those which will most effectivelyconvey your message to your customers in a cost-efficient manner. Always remember,advertising is an investment in the future of your business. Political AdvertisingPolitical advertising involves the use of advertising by politicians to bring their messages to themasses. These usually warn voters that the gates of Hell will open and demons will eat skin offtheir still-living victims if voters approve a bond issue for school playgrounds. In theory,political advertising could explain policy, inform citizens and connect people to their leaders.Commercial advertising has always been a central feature of American culture. As encounteredin the mass media, it is pervasive and inescapable. Most Americans take for granted the "rules"of commercial advertising, even though they may not be aware that any formal guidelines existand may have little or no idea what the legal effect of such guidelines might be. Commercialadvertisements are widely accepted as fair and legitimate marketing.Contrast the world of political advertising. In recent years, political advertising has becomeessential to campaign strategy (at least in major campaigns), and many regard it as far moreintrusive than routine commercial advertising. But the world of political advertising is verydifferent from the world of commercial advertising. There really are no "rules" when it comes tothe content and form of political advertising. Political advertisers are not accountable to anyregulatory body, voluntary or otherwise, for the accuracy of their claims. They readily engage inso-called "comparative" advertising. They blatantly criticize their competitors. They complainincessantly about the fairness of the comments made about them, while their opponents are doing
    • the same. There is no acknowledged forum for the review of these claims and counter-claims.The press attempts to provide some sporadic checks on political advertisers by running "ad-watch" reports, but these reports by their very nature tend to fuel public cynicism. Considerableevidence suggests that the negativity associated with contemporary political campaigns hascreated an "avoidance" mentality which is serving to shrink the electorate and the level ofpolitical participation generally (see Ansolabehere and Iyengar, 1995).The current state of political advertising has aroused considerable concern within the world ofcommercial advertising. Major advertising firms and professional associations have widelydeplored the lack of accountability of political advertisers and their unwillingness to adhere to acode of ethics (see Advertising Age, April 29, 1996; New York Times, April 29, 1996;Washington Post, July 30, 1996). What exactly is Madison Avenue concerned about? Perhapscommercial advertisers fear that the apathy -- and all too frequently, aversion -- induced bypolitical advertising campaigns may damage the credibility, and ultimately the persuasiveness, ofmore traditional forms of advertising. As Alex Kroll, former chairman of the AmericanAssociation of Advertising Agencies, put it: "We must stop politicians from ruining ourreputation." (Advertising Age, April 29, 1991) Kroll’s was not a solitary voice. In 1984, thenAAAA chair John O’Toole claimed that political ads were "giving advertising a bad name."(Advertising Age, June 24, 1996) and in 1996, Burt Manning went so far as to assert that the"smear and scare" tactics of political advertisers meant that "today, the issue is survival of brandadvertising" (Advertising Age, June 24, 1996). Our goal in this paper is to provide some evidenceon the issue of whether political advertising, does, in fact, "contaminate" commercial advertising.We set out to consider two rival possibilities, both of which rest on the assumption thatcommercial advertising is evaluated more favorably than political advertising. The assimilationhypothesis, derived from social judgment theory, suggests that exposure to political advertisingcampaigns encourages people to "assimilate" or equate their feelings about related attitudetargets (for a discussion of social judgment and other theories of attitude change, see Petty andCacioppo, 1986). The essence of this concept is that negative reactions to political advertisingwill color attitudes toward other forms of advertising. The competing possibility, which we havetermed the "contrast" hypothesis, suggests that the negative response to political campaignsactually makes commercial advertising appear more appealing than it would have been in theabsence of political advertising. By accentuating the negative attributes of politicaladvertisements, political campaigns strengthen the standing of commercial advertisers.In the sections that follow, we will first provide some background on the scope and extent ofcommercial and political advertising and the regulatory environment in which advertisersoperate. Next, we describe recent scholarly research into the content and effects of politicaladvertising. We then describe our experimental methodology for assessing the impact of politicaladvertising on receptiveness to commercial advertising and summarize the findings. Finally, weconsider the implications of our evidence for the current debate.Comparing Commercial and Political AdvertisingEven though the use of political advertising has spread exponentially, both in terms of the sheerfrequency of exposure and the increased length of political campaigns, political advertising is
    • still miniscule compared with commercial advertising. The total cost of the 1996 election (allraces combined) amounted to approximately $2.5 billion (Center for Responsive Politics, 1999).This figure is less than the annual advertising budget for major U.S. corporations. During theheight of the 1996 campaign, the research firm CMR found that fewer than one percent of alltelevised advertisements (750,000 out of 93,000,000) in the top 75 media markets weresponsored by political candidates or organizations (Goldstein, 1998). Clearly, the public’sdistaste for these advertisements is based on factors other than sheer frequency.The most distinctive feature of contemporary political campaign advertisements is the negativityof their content and tone. Political advertisers frequently engage in so-called "comparative"advertising in which the opposing candidate’s program and performance are criticized and evenridiculed. Highlighting the opponent’s liabilities and weaknesses usually takes precedence overidentifying the sponsor’s program and strengths. In the most comprehensive tracking ofcampaign advertising to date, scholars at the Annenberg School of Communication have foundthat such "negative" advertising makes up approximately one-third of all campaign ads used inpresidential campaigns (Jamieson et al., 1998). The level of negativity is actually significantlygreater when one considers frequency-weighted indicators of content (Prior, 1999). In 1996, forinstance, while fewer than one-half of the ads produced by the major candidates featurednegative appeals, these appeals accounted for some seventy percent of the candidates’ ad buys(Goldstein, 1998). While we do not have comparable data for any commercial advertisingcampaign, the "comparative" element is unlikely to be so prominent; when compared withcommercial ads, political ads are much more negative in content.Unlike commercial advertisers, political advertises do not adhere to any codes or proceduresintended to protect the public from inaccurate and unsubstantiated claims. All commercialadvertisers voluntarily subscribe to a "code of advertising ethics" administered by theAdvertising Division of the Better Business Bureau. This code includes provisions for dealingwith complaints of false or misleading claims. Complaints directed at specific ads are reviewedand arbitrated by a panel appointed by the National Advertising Review Board. After reviewingthe evidence from both sides, the panel may find the complaint to be valid and require that the adin question be modified or discontinued. The panel may also refer the complaint to theappropriate governmental agency. If the advertiser fails to comply with a request formodification or termination, the panel may issue a "notice of noncompliance" identifying theadvertiser.Political advertisers are not subject to comparable voluntary guidelines. First Amendmentprotections make it virtually impossible to impose involuntary restraints on the content ofpolitical advertising. The American Association of Political Consultants has shown noinclination to encourage any form of self-restraint. The result is a free-for-all environment inwhich candidates repeatedly attack and counter-attack the claims of their competitors. The onlyaccountability is provided by the press, in the form of sporadic "ad-watch" news reports thatscrutinize specific ads for their accuracy (for a review of research into the effects of thesereports, see Pew Commission, 1998). The very nature of ad-watch journalism, however, is boundto exacerbate public cynicism over the fairness and credibility of political advertising.
    • The Effects of Political AdvertisingThe harsh tone of political advertising, the often controversial techniques employed by politicaladvertisers, and the fact that the competing claims made in campaign ads are beyond review,have raised questions about the goals of political advertisers. Many critics have suggested thatpolitical advertisers seek votes at any cost, even including a degraded sense of public regard forthe candidates and the electoral process. Perhaps the amount of negativity featured in politicalcampaigns is designed to shrink the "market" rather than increase the sponsor’s relative share.Discouraging people from voting is much more feasible than persuading supporters of onecandidate to vote for the opponent. It is well known that most Americans hold fast to theirpartisan attachments and that the act of voting generally serves expressive (as opposed toinstrumental) needs (for a review of research on political participation, see Rosenstone andHansen, 1992). Since people acquire their affiliation with the Democratic or Republican partiesearly in life, the probability that they will cross party lines in response to an advertisingcampaign is slight. And since the motivation to vote is typically symbolic or psychological (inthe sense that one’s vote is unlikely to be pivotal in determining the outcome of the election),increasing the level of controversy and conflict in ad campaigns is bound to discourage votersfrom making a choice and casting a vote. In effect, negative campaigns create an "avoidance" setwithin the electorate (see Houston et al., 1998, 1999).Although the scholarly evidence is mixed, experimental studies substantiate these claims.Carefully controlled manipulations of advertising tone demonstrate that exposure to negative(rather than positive) campaign advertising heightens political cynicism and diminishes voterturnout (see Ansolabehere and Iyengar, 1995; Houston et al., 1998, 1999; Ansolabehere et al.,1999). It is hardly coincidental that the public’s views of elections and the importance of votinghave soured as political advertising campaigns have become increasingly reliant on negativeappeals. In 1960, for example, only one in four Americans endorsed the statement that "publicofficials don’t care much about what people like me think." By 1990, the cynical response wasgiven by six of ten Americans (see Rosenstone and Hansen, 1992).Exposure to political campaigns has extracted a similar toll on the public’s views of politicaladvertising. There is ample survey data showing that the public dislikes media-based politicalcampaigns. According to the most recent surveys by the Pew Center, a majority of the electorate(some 60 percent) felt that campaign commercials were not useful in helping them choose acandidate during the 1998 elections and more than two-thirds (68%) judged the campaign as"nasty" (Pew Center, 1998). And in a recent survey of voters in Virginia, some three-fourths ofthe sample indicated that negative campaigns were likely to discourage people from voting(Freedman, 1999).Does the fallout from exposure to political advertising spread to commercial advertising ingeneral? We attempt to answer this question experimentally, by manipulating exposure topolitical advertising and then measuring participants’ attitudes towards political and commercialad campaigns. We also manipulate the tone of political advertising in order to assess the impactof negative political campaigns on the audience’s confidence in political and product advertisers.Our results indicate that exposure to political advertising in general -- and negative politicaladvertising in particular -- strengthens viewers’ relative confidence in commercial advertising.
    • People do not assimilate their generally unfavorable ratings of political ads to the commercialadvertising arena. Nor do they express more favorable attitudes toward commercial advertisingin the aftermath of exposure to political advertising. However, because campaigns heightendistaste for political advertising, the net effect is to boost the relative appeal of commercialadvertising. Thus, exposure to political campaigns enlarges the contrast between commercial andpolitical advertising.Political Advertising - The India Shining CampaignAbstract:The case describes the India Shining campaign that marked the beginning of a new age ofpolitical advertising in India. It discusses in depth the political advertising strategy of theerstwhile NDA government and examines how the campaign was aimed as a tool to win votes.The case also discusses the political advertising campaign of the present ruling party - Congressthat mainly targeted the masses. The case ends with a debate on the efficacy of politicaladvertising campaign in general, and explores reasons why the India Shining campaign wasunsuccessful.Political CampaignA political campaign is an organized effort to influence the decision making process within agroup. In democracies, political campaigns often refer to electoral campaigns, whereinrepresentatives are chosen or referenda are decided. Political campaigns also include organizedefforts to alter policy within any institution. Politics is as old as humankind and is not limited todemocratic or governmental institutions. Some examples of political campaigns are: the effort toexecute or banish Socrates Athens in the 5th century BC, the uprising of petty nobility againstJohn of England in the 13th century, or the 2005 push to remove Michael Eisner from the helmof The Walt Disney Company.The Cost of Campaign AdvertisingPolitical campaigns have become heavily reliant on broadcast media and direct mail advertising(typically designed and purchased through specialized consultants). Though, virtually allcampaign media are sometimes used at all levels (even candidates for local office have beenknown to purchase cable TV ads), smaller, lower-budget campaigns are typically more focusedon direct mail, low cost advertising (such as lawn signs), and direct voter contact. This relianceon expensive advertising is a leading factor behind the rise in the cost of running for office. Thisrising cost is considered by some to discourage those without well-monied connections, ormoney themselves, from running for office.Television advertising is the primary way that modern political campaigns communicate withpotential voters. In a typical presidential, congressional or gubernatorial election, spending ontelevision advertising comprises the greatest proportion of a campaign’s budget. To date, the lack
    • of comprehensive data on the content, timing, volume and targeting of political advertising has limited what policy makers, journalists and scholars can report about the strategies employed by campaigns and the balance of advertising in particular contests. Furthermore, the lack of comprehensive data on advertising activity by parties and interest groups, increasingly active players in advertising campaigns, not only has limited what could be said about the activities of these crucial players but also has made it difficult for a complete picture of advertising activity to be drawn. Finally, the lack of comprehensive data on political advertising has made it difficult for scholars to study the effect and effectiveness of these communications. Put simply, without comprehensive data on the targeting, volume and content of advertising by all the players involved, it has been difficult to study the effect of the main persuasive tool utilized by modern electoral campaigns. Code of Ethics for Advertising1. False or Misleading Statements o According to the Standards of Practice set forth by the AAAA, advertisements must not contain any type of claim that is false or misleading to audiences. This includes lies, partial truths, purposefully withholding information and exaggerations. It is important to note that false and misleading content is not limited to the verbal and written claims made in the ad. It also applies to images and demonstrations, as they should not misrepresent the capabilities and characteristics of a product. Inaccurate Testimonials o Testimonials are when a person gives their opinion or talks about their experience about a product or service. The AAAA discourages the use of inaccurate testimonials. Testimonials can be considered inaccurate for multiple reasons. First of all, a testimonial is inaccurate if the person who is giving the testimonial is not portraying themselves, and instead is portraying a fictional person. Also, a testimonial is inaccurate if it does not reflect the true opinion of the person giving the testimonial. Misleading Price Claims o The Standards of Practice states that all price claims relating to the product or service must be completely accurate. No product can misrepresent their prices in order to make the price appear more desirable. In order to make sure that price claims are always accurate, advertisements must specifically state if there are any constituencies in order to buy a product for a certain price. For example, if a price is listed as a lower price due to a rebate, than the ad must state that the low price is obtained through a rebate. Insufficient Claims o Similar to exaggerations, the Standards of Practice forbids the use of insufficient claims while referring to the capabilities of a product or service. If there is not sufficient scientific or professional evidence to support a claim made by a product, then it cannot be used in the advertising. Even if the product is capable of
    • performing a certain task, if it does not have the evidence to support a claim, then the advertisement cannot use that claim within the ad.Offensive Material o All material including verbal and textual communication, audio, video and images must be considered decent for the general public. Any material in an advertisement that is considered offensive, indecent or obscene to the general public is forbidden according to the Standards of Practice. Also, advertisements may not be offensive towards any minority population including racial and ethnic groups, religious groups, age groups and the disabled population.ASCI CodesTHE CODE FOR SELF-REGULATION IN ADVERTISING PERTINENT EXTRACTSAdopted by THE ADVERTISING STANDARDS COUNCIL OF INDIA under Article 2(ii)f ofits Articles of Association at the first meeting of the Board of Governors held on November 20,1985 and amended in February 1995 and in June 1999.Declaration of Fundamental PrinciplesThis Code for Self-Regulation has been drawn up by people in professions and industries in orconnected with advertising, in consultation with representatives of people affected by advertisingand has been accepted by individuals, corporate bodies and associations engaged in or otherwiseconcerned with the practice of advertising with the following as basic guidelines with a view toachieve the acceptance of fair advertising practices in the best interests of the ultimate consumer: • To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertisements. • To ensure that advertisements are not offensive to generally accepted standards of public decency. Advertisements should contain nothing indecent, vulgar or repulsive which is likely, in the light of generally prevailing standards of decency and propriety, to cause grave or widespread offence • To safeguard against the indiscriminate use of Advertising in situations or of the promotion of products which are regarded as hazardous or harmful to society or to individuals, particularly minors, to a degree or of a type which is unacceptable to society at large. • To ensure that advertisements observe fairness in competition so that the consumer’s need to be informed on choices in the market-place and the canons of generally accepted competitive behaviour in business are both served. Both the general public and an advertiser’s competitors have an equal right to expect the content of advertisements to be presented fairly, intelligibly and responsibly. The Code applies to advertisers, advertising agencies and media.Responsibility for the Observance of this CodeThe responsibility for the observance of this Code for Self-Regulation in Advertising lies with allwho commission, create, place or publish any advertisement or assist in the creation orpublishing of any advertisement. All advertisers, advertising agencies and media are expected
    • not to commission, create, place or publish any advertisement which is in contravention of thisCode. This is a self-imposed discipline required under this Code for Self-Regulation inAdvertising from all involved in the commissioning, creation, placement or publishing ofadvertisements. This Code applies to advertisements read, heard or viewed in India even if theyoriginate or are published abroad so long as they are directed to consumers in India or areexposed to significant number of consumers in India.DefinitionsAn advertisement is defined as a paid-for communication, addressed to the public or a section ofit, the purpose of which is to influence the opinions or behaviour of those to whom it isaddressed. Any written or graphic matter on packaging, or contained in it, is subject to this Code.Standards Of ConductAdvertising is an important and legitimate means for the seller to awaken interest in his products.The success of advertising depends on public confidence. Hence no practice should be permittedwhich tends to impair this confidence. Legal Issues in Advertising The Federal Trade Commission regulates all forms of advertising in the United States.They publish rules on mail order, the Internet, telephone sales, 900 numbers, gaming,deception in advertising, product labeling, consumer credit, and much more. This page offers a brief overview of some of the advertising laws regulating your printadvertising. Please note that Professional Advertising is not offering legal advice. For detailed information about advertising law, please contact the Federal TradeCommission directly, or check with your states Attorney General’s Office aboutconsumer protection advertising laws. Also note that state and local laws can be stricterthan federal laws, so double check.If you have questions or doubts about any of your advertising, check with a lawyer. AtProfessional Advertising, we like to take the conservative approach on these matters. Protecting your organization from outside threats is critical to your bottom line. Knowinghow to protect your company while increasing the effectiveness of your advertising iswhat Professional Advertising is all about.Truth in Advertising
    • According to the Federal Trade Commission (FTC), “advertising must be truthful andnon-deceptive… advertisers must have evidence to back up their claims… andadvertisements cannot be unfair.”Deceptive Advertising According to advertising law, an advertisement is considered deceptive if it contains astatement or omits information that “is likely to mislead consumers acting reasonablyunder the circumstances; and is, ‘material’ - that is, important to a consumers decisionto buy or use the product.“ Essentially, the law states that your advertising cannot be misleading. You have to tellthe truth, or clearly label your ads so that no reasonable person could mistake yourintent. Advertisers [and their advertising agencies] need to have a reasonable basis foradvertising claims before they are published.Unfair Advertising and Business Practices According to the FTC, an advertisement is unfair if “it causes or is likely to causesubstantial consumer injury which a consumer could not reasonably avoid; and it is notoutweighed by the benefit to consumers.” In advertising law, “substantial consumer injury” and “material” are related things. Inpart, advertising law protects consumers from financial loss due to deceptive practices. The law does make an exception when consumer benefits outweigh consumer injury,but you probably don’t want to pay the expenses of explaining that in court.Bait and Switch Tactics It’s illegal to advertise a product when you have no intention of selling that product atthe advertised price. Bait and switch tactics are illegal, period. If you advertise aproduct, the law says that you have to intend to sell it as advertised.Advertising Law: Catalog Sales As a catalog retailer, you are not obligated to substantiate the claims made by suppliersabout their products. However, caution and common sense should dictate your ad copy.
    • Stick to the claims made by the supplier, and do not expand or improve on them. Do notprint anything that is not reasonable.Advertising to Children The FTC pays particular attention to advertisements aimed at children. These ads are evaluatedfrom a child’s point of view, not an adult’s. If you advertise to children, be very careful aboutfollowing all of the guidelines. No company wants the publicity that comes from accusationsabout possibly misleading children.Comparative Advertising If the comparison you make is true, then it is legal to print it. If you are better than yourcompetitors, the law says that you can tell the whole world about it.Contests and Sweepstakes There are many different advertising laws governing contests and sweepstakes. Check with yourstates Attorney General’s Office and with the FTC. And you might want to check with yourlawyer.Consumer Credit All ads offering consumer credit must include “clear and conspicuous” disclosure terms andconditions of receiving the credit. Check with your advertising agency, your lawyer, or the FTCif you are planning on offering credit in your ads.Express Claims An express claim is a direct claim made in an advertisement like “our product prevents sorethroats.” The claim must be true and substantiated.Implied Claims An implied claim is an indirect claim made in an advertisement. For example, “our product killsgerms that cause sore throats” is an implied claim. The implication is that the product preventssore throats. The FTC judges claims on what a reasonable consumer would assume given the entirety of theadvertisement and all of the claims made. Advertising law says that the implied claim must betrue and substantiated.
    • Disclosure and Disclaimer StatementsThese statements are required if an advertisements express or implied claims could bemisleading.A disclosure statement gives qualifying information so that a claim is not misunderstood. Thedisclaimer must be “clear and conspicuous” so that consumers can notice and understand it.The disclaimer needs proximity and prominence in relationship to the claim, with little otherdistraction. And the disclaimer cannot correct a false claim – that would be deceptiveadvertising.Endorsements and TestimonialsAdvertising law says that endorsements and testimonials must show the honest opinion orexperience of the endorser. Claims must be truthful and substantiated.If a celebrity claims to use a product, that claim must be true. Consumer endorsements mustreflect the typical consumers experience with the product. Stating, “your results may vary”doesn’t help if the typical consumer cannot expect similar results.Expert endorsements must be supportable by scientific methods, not by the opinion of oneexpert. And if there is a ”material” or financial connection between your company and theendorser, advertising law says that you need to disclose it.Free ProductsYou can give away anything you want, unless there is a catch. If your “free” item is tied to asecond purchase, then the second item’s price has to be the regular price. If there are anyconditions on the “free” item, advertising law says you must disclose all of the information in a“clear and conspicuous” manner.RebatesAdvertising law says you must prominently feature the before-rebate price in your ad, and theamount of the rebate. Any additional terms of purchase must be disclosed, and you need toindicate how long it takes to receive the rebate.Guarantees and WarranteesIf you want to mention your guarantee in your ad, you must tell consumers how to get all of thedetails on that guarantee. Any conditions or limits must also be disclosed in the ad. A completecopy of the guarantee must be made available to consumers before any sale. This also coversphone, catalog, mail, and online sales transactions.Advertising on the Internet
    • All of the other truth in advertising laws apply to the Internet. The FTC is particularly concernedwith disclosure statements and false advertising claims. All ads must be truthful andsubstantiated. Contact the FTC for more information.Advertising Law: Mail Order Advertising All of the other truth in advertising laws also apply to mail order advertising. Any ordersreceived by phone, fax, online, or by mail should ship within 30 days, or within the timeframestated in the ad.Telemarketing All claims must be true and substantiated, and all of other advertising laws apply. Additionalrestrictions apply to certain categories of services, including legal services. Check with yourstates Attorney Generals office.Advertising Law: New Products As long as it really is new, you are probably okay for six months. Check with the FTC forspecific claims about new products by product category. There are limits on what you can referto as new.Advertising Law: PriceAll of the truth in advertising laws apply to advertising price. If you are making a comparison, itneeds to be truthful. If you say that the product is being sold for "$xx" elsewhere, then in fact,other representative retailers must be selling at that price.A few small retailers selling at the higher price elsewhere are not representative of the market.Media publishers may require you to substantiate your claims before they will print your ad.Contact the FTC for more.Advertising Law: SaleYour sale price must be a reduction from the actual, bona fide former asking price that wasoffered on a regular basis to the public for a reasonably substantial time period. If you didn’t sell a substantial amount of product at the higher price, you can’t say “formerlysold at "$xx", because it is not really true. Inflating a price only to reduce it to its regular sellingprice and claim that it is on sale is not legal.Advertising Law: Mis-marked Price If a product is marked or advertised at a certain price, your state laws may require you to sell itat that price. Check with your states Attorney General’s Office.
    • Advertising Law: Rain checksOnly food retailers must offer rain checks or comparable substitute products. However, it isgood business practice for all retailers to offer rain checks, because the public expects it. Protectyourself by stating, “quantities are limited,” or “not available in all stores.”Going Out of Business Sale You can make this claim only if it is true. The FTC watches for perpetual going out of businesssales.Standards for Proving Claims If you make a claim about your product or service, the FTC expects that you can substantiatethat claim, and that you have the ability to fulfill your promises. The law states thatsubstantiation must be based on fact and objective evaluation, not opinion.DeceptionDeception comes from a representation, practice, or omission that may mislead the public. Theclaim can be written or oral. And the entire sales transaction is considered – not just a singlestatement.Whether the representation, practice, or omission is deceptive is based on what a reasonableconsumer would infer from the information. And the deceptive practice must have a negativematerial or financial cost to the consumer.Copyright in AdvertisingThe creation of art [advertisements, illustrations, photos, logos, etc.] carries with it automaticcopyright protection. The creator of the art owns it, until 50 years after death, unless specificcontractual terms transfer that ownership.In addition, each artist has copyright protection for his or her component of a given piece ofwork – the photographer, the illustrator, the graphic designer, etc. Each artist must sign a release.With artwork, it is important to understand the terms.Warranty of Originality - a statement from the artist that all of the work is original or is beingused with permission for the intended purpose.Usage Rights - describe how, when, where, and how long artwork will be used.Client Responsibilities - Normally the client is responsible for copywriting and proofreading.All original artwork, digital media, files, and mechanicals are the property of the artist.
    • Ask For HelpAs always, Professional Advertising is here to help you. We strongly recommend that you runyour work past a marketing professional for assistance or a second opinion. And our professionaladvertising design services are also available to help you succeed. Remember, you are responsible for the content of all of your published materials. If you haveany doubt about what to print, ask your lawyer, and check with the FTC and your statesAttorney General’s Office. If you have legal questions, please contact an attorney. It’s a cheap investment for somethingthat is as important as your entire advertising program. Integrated marketing communicationsIntegrated Marketing Communications is the coordination and intergration of all marketingcommunication tools, avenues, functions and sources within a company into a seamless programthat maximizes the impact on consumers and other end users at a minimal cost. It aims to ensureconsistency of message and the complementary use of media. The concept includes online andoffline marketing channels. Online marketing channels include any e-marketing campaigns orprograms, from search engine optimization (SEO), pay-per-click, affiliate, email, banner to latestweb related channels for webinar, blog, micro-blogging, RSS, podcast, Internet Radio andInternet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order,public relations, industry relations, billboard, radio, and television. A company develops itsintegrated marketing communication programme using all the elements of the marketing mix(product, price, place, promotion and public relations).Integrated marketing communication is integration of all marketing tools,like kids approaches,and resources within a company which maximizes impact on consumer mind and which resultsinto maximum profit at minimum cost. Generally marketing starts from "Marketing Mix".Promotion is one element of Marketing Mix. Promotional activities include Advertising (byusing different media), sales promotion (sales and trades promotion), and personal sellingactivities. It also includes internet marketing, sponsorship marketing, direct marketing, databasemarketing and public relations. And integration of all these promotional tools along with othercomponents of marketing mix to gain edge over competitor is called Integrated MarketingCommunication.Using outside-in thinking, Integrated Marketing Communications is a data-driven approach thatfocuses on identifying consumer insights and developing a strategy with the right (online andoffline combination) channels to forge a stronger brand-consumer relationship. This involvesknowing the right touch points to use to reach consumers and understanding how and where theyconsume different types of media. Regression analysis and customer lifetime value are key dataelements in this approach.
    • The starting point of the IMC is the marketing mix (Product,Price,Promotion,Place) whichinvolves different types of marketing, advertising and sales. Without a complete IMC plan thereis no integration or harmony among client and customers. The goal of an organization is to createand maintain communication throughout its own employees and throughout its customers. Inorder to achieve such goal a marketing plan is created which consists on the following steps:1.Situation Analysis 2.Marketing Objectives 3.Marketing Budget 4.Marketing Strategies5.Marketing Tactics 6.Evaluation of performance.Reasons for the Growing Importance of IMCSeveral shifts in the advertising and media industry have caused IMC to develop into a primarystrategy for marketers: 1. From media advertising to multiple forms of communication. 2. From mass media to more specialized (niche) media, which are centered around specific target audiences. 3. From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market. 4. From general-focus advertising and marketing to data-based marketing. 5. From low agency accountability to greater agency accountability, particularly in advertising. 6. From traditional compensation to performance-based compensation (increased sales or benefits to the company). 7. From limited Internet access to 24/7 Internet availability and access to goods and services.Selecting the Most Effective Communications ElementsThe goal of selecting the elements of proposed integrated marketing communications is to createa campaign that is effective and consistent across media platforms. Some marketers may wantonly ads with greatest breadth of appeal: the executions that, when combined, provide thegreatest number of attention-getting, branded, and motivational moments. Others may only wantads with the greatest depth of appeal: the ads with the greatest number of attention-getting,branded, and motivational points within each.Although integrated marketing communications is more than just an advertising campaign, thebulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, thebulk of the research budget is also spent on these elements of the campaign. Once the keymarketing pieces have been tested, the researched elements can then be applied to other contactpoints: letterhead, packaging, logistics, customer service training, and more, to complete theIMC cycle.
    • MARKETING COMMUNICATIONAs the term suggests, marketing communication functions within a marketing framework.Traditionally known as the promotional element of the four Ps of marketing (product, place,price, and promotion), the primary goal of marketing communication is to reach a definedaudience to affect its behavior by informing, persuading, and reminding. Marketingcommunication acquires new customers for brands by building awareness and encouraging trial.Marketing communication also maintains a brands current customer base by reinforcing theirpurchase behavior by providing additional information about the brands benefits. A secondarygoal of marketing communication is building and reinforcing relationships with customers,prospects, retailers, and other important stakeholders.Successful marketing communication relies on a combination of options called the promotionalmix. These options include advertising, sales promotion, public relations, direct marketing, andpersonal selling. The Internet has also become a powerful tool for reaching certain importantaudiences. The role each element takes in a marketing communication program relies in part onwhether a company employs a push strategy or a pull strategy. A pull strategy relies more onconsumer demand than personal selling for the product to travel from the manufacturer to theend user. The demand generated by advertising, public relations, and sales promotion "pulls" thegood or service through the channels of distribution. A push strategy, on the other hand,emphasizes personal selling to push the product through these channels.
    • Figure 1Elements of Marketing CommunicationFor marketing communication to be successful, however, sound management decisionsmust be made in the other three areas of the marketing mix: the product, service or ideaitself; the price at which the brand will be offered; and the places at or through whichcustomers may purchase the brand. The best promotion cannot overcome poor productquality, inordinately high prices, or insufficient retail distribution.Likewise, successful marketing communication relies on sound management decisionsregarding the coordination of the various elements of the promotional mix. To this end,a new way of viewing marketing communication emerged in the 1990s. Calledintegrated marketing communication, this perspective seeks to orchestrate the use of allforms of the promotional mix to reach customers at different levels in new and betterways.INTEGRATED MARKETING COMMUNICATIONThe evolution of this new perspective has two origins. Marketers began to realize thatadvertising, public relations, and sales were often at odds regarding responsibilities,budgets, management input and myriad other decisions affecting the successfulmarketing of a brand. Executives in each area competed with the others for resourcesand a voice in decision making. The outcome was inconsistent promotional efforts,
    • wasted money, counterproductive management decisions, and, perhaps worst of all,confusion among consumers.Secondly, the marketing perspective itself began to shift from being market oriented tomarket driven. Marketing communication was traditionally viewed as an inside-out wayof presenting the companys messages. Advertising was the dominant element in thepromotional mix because the mass media could effectively deliver a sales message to amass audience. But then the mass market began to fragment. Consumers became bettereducated and more skeptical about advertising. A variety of sources, both controlled bythe marketer and uncontrolled, became important to consumers. News reports, word-of-mouth, experts opinions, and financial reports were just some of the "brandcontacts" consumers began to use to learn about and form attitudes and opinions abouta brand or company, or make purchase decisions. Advertising began to lose some of itsluster in terms of its ability to deliver huge homogeneous audiences. Companies beganto seek new ways to coordinate the multiplicity of product and company messages beingissued and used by consumers and others.Thus, two ideas permeate integrated marketing communication: relationship buildingand synergy. Rather than the traditional inside-out view, IMC is seen as an outside-inperspective. Customers are viewed not as targets but as partners in an ongoingrelationship. Customers, prospects, and others encounter the brand and companythrough a host of sources and create from these various contacts ideas about the brandand company. By knowing the media habits and lifestyles of important consumersegments, marketers can tailor messages through media that are most likely to reachthese segments at times when these segments are most likely to be receptive to thesemessages, thus optimizing the marketing communication effort.Ideally, IMC is implemented by developing comprehensive databases on customers andprospects, segmenting these current and potential customers into groups with certaincommon awareness levels, predispositions, and behaviors, and developing messages andmedia strategies that guide the communication tactics to meet marketing objectives. Indoing this, IMC builds and reinforces mutually profitable relationships with customersand other important stakeholders and generates synergy by coordinating all elements in
    • the promotional mix into a program that possesses clarity, consistency, and maximumimpact.Practitioners and academics alike, however, have noted the difficulty of effectivelyimplementing IMC. Defining exactly what IMC is has been difficult. For example,merely coordinating messages so that speaking "with one clear voice" in all promotionalefforts does not fully capture the meaning of IMC. Also, changing the organization toaccommodate the integrated approach has challenged the command and controlstructure of many organizations. However, studies suggest that IMC is viewed by a vastmajority of marketing executives as having the greatest potential impact on theircompanys marketing strategies, more so than the economy, pricing, and globalization.ADVERTISINGAdvertising has four characteristics: it is persuasive in nature; it is non-personal; it ispaid for by an identified sponsor; and it is disseminated through mass channels ofcommunication. Advertising messages may promote the adoption of goods, services,persons, or ideas. Because the sales message is disseminated through the mass media—as opposed to personal selling—it is viewed as a much cheaper way of reachingconsumers. However, its non-personal nature means it lacks the ability to tailor thesales message to the message recipient and, more importantly, actually get the sale.Therefore, advertising effects are best measured in terms of increasing awareness andchanging attitudes and opinions, not creating sales. Advertisings contribution to sales isdifficult to isolate because many factors influence sales. The contribution advertisingmakes to sales are best viewed over the long run. The exception to this thinking is withinthe internet arena. While banner ads, pop-ups and interstitials should still be viewed asbrand promoting and not necessarily sales drivers, technology provides the ability totrack how many of a websites visitors click the banner, investigate a product, requestmore information, and ultimately make a purchase.Through the use of symbols and images advertising can help differentiate products andservices that are otherwise similar. Advertising also helps create and maintain brandequity. Brand equity is an intangible asset that results from a favorable image,
    • impressions of differentiation, or consumer attachment to the company, brand, ortrademark. This equity translates into greater sales volume, and/or higher margins, thusgreater competitive advantage. Brand equity is established and maintained throughadvertising that focuses on image, product attributes, service, or other features of thecompany and its products or services.Cost is the greatest disadvantage of advertising. The average cost for a 30-second spoton network television increased fivefold between 1980 and 2005. Plus, the average costof producing a 30-second ad for network television is quite expensive. It is notuncommon for a national advertiser to spend in the millions of dollars for one 30-second commercial to be produced. Add more millions on top of that if celebrity talent isutilized.Credibility and clutter are other disadvantages. Consumers have become increasinglyskeptical about advertising messages and tend to resent advertisers attempt topersuade. Advertising is everywhere, from network television, to daily newspapers, toroadside billboards, to golf course signs, to stickers on fruit in grocery stores. Clutterencourages consumers to ignore many advertising messages. New media are emerging,such as DVRs (digital video recorders) which allow consumers to record programs andthen skip commercials, and satellite radio which provides a majority of its channelsadvertising free.PUBLIC RELATIONSPublic relations is defined as a management function which identifies, establishes, andmaintains mutually beneficial relationships between an organization and the publicsupon which its success or failure depends. Whereas advertising is a one-waycommunication from sender (the marketer) to the receiver (the consumer or the retailtrade), public relations considers multiple audiences (consumers, employees, suppliers,vendors, etc.) and uses two-way communication to monitor feedback and adjust both itsmessage and the organizations actions for maximum benefit. A primary tool used bypublic relations practitioners is publicity. Publicity capitalizes on the news value of aproduct, service, idea, person or event so that the information can be disseminated
    • through the news media. This third party "endorsement" by the news media provides avital boost to the marketing communication message: credibility. Articles in the mediaare perceived as being more objective than advertisements, and their messages are morelikely to be absorbed and believed. For example, after the CBS newsmagazine 60Minutes reported in the early 1990s that drinking moderate amounts of red wine couldprevent heart attacks by lowering cholesterol, red wine sales in the United Statesincreased 50 percent. Another benefit publicity offers is that it is free, not consideringthe great amount of effort it can require to get out-bound publicity noticed and pickedup by media sources.Public relations role in the promotional mix is becoming more important because ofwhat Philip Kotler describes as an "over communicated society." Consumers develop"communication-avoidance routines" where they are likely to tune out commercialmessages. As advertising loses some of its cost-effectiveness, marketers are turning tonews coverage, events, and community programs to help disseminate their product andcompany messages. Some consumers may also base their purchase decisions on theimage of the company, for example, how environmentally responsible the company is.In this regard, public relations plays an important role in presenting, through newsreports, sponsorships, "advertorials" (a form of advertising that instead of selling aproduct or service promotes the companys views regarding current issues), and otherforms of communication, what the company stands for.DIRECT MARKETING AND DATABASE MARKETINGDIRECT MARKETING.Direct marketing, the oldest form of marketing, is the process of communicating directlywith target customers to encourage response by telephone, mail, electronic means, orpersonal visit. Users of direct marketing include retailers, wholesalers, manufacturers,and service providers, and they use a variety of methods including direct mail,telemarketing, direct-response advertising, online computer shopping services, cableshopping networks, and infomercials. Traditionally not viewed as an element in thepromotional mix, direct marketing represents one of the most profound changes inmarketing and promotion in the last 25 years. Aspects of direct marketing, which
    • includes direct response advertising and direct mail advertising as well as the variousresearch and support activities necessary for their implementation, have been adoptedby virtually all companies engaged in marketing products, services, ideas, or persons.Direct marketing has become an important part of many marketing communicationprograms for three reasons. First, the number of two-income households has increaseddramatically. About six in every ten women in the United States work outside the home.This has reduced the amount of time families have for shopping trips. Secondly, moreshoppers than ever before rely on credit cards for payment of goods and services. Thesecashless transactions make products easier and faster to purchase. Finally, technologicaladvances in telecommunications and computers allow consumers to make purchasesfrom their homes via telephone, television, or computer with ease and safety. Thesethree factors have dramatically altered the purchasing habits of American consumersand made direct marketing a growing field worldwide.Direct marketing allows a company to target more precisely a segment of customers andprospects with a sales message tailored to their specific needs and characteristics.Unlike advertising and public relations, whose connections to actual sales are tenuous ornebulous at best, direct marketing offers accountability by providing tangible results.The economics of direct marketing have also improved over the years as moreinformation is gathered about customers and prospects. By identifying those consumersthey can serve more effectively and profitably, companies may be more efficient in theirmarketing efforts. Whereas network television in the past offered opportunities to reachhuge groups of consumers at a low cost per thousand, direct marketing can reachindividual consumers and develop a relationship with each of them.Research indicates that brands with strong brand equity are more successful in directmarketing efforts than little-known brands. Direct marketing, then, works best whenother marketing communication such as traditional media advertising supports thedirect marketing effort.Direct marketing has its drawbacks also. Just as consumers built resistance to thepersuasive nature of advertising, so have they with direct marketing efforts. Direct
    • marketers have responded by being less sales oriented and more relationship oriented.Also, just as consumers grew weary of advertising clutter, so have they with the directmarketing efforts. Consumers are bombarded with mail, infomercials, andtelemarketing pitches daily. Some direct marketers have responded by regarding privacyas a customer service benefit. Direct marketers must also overcome consumer mistrustof direct marketing efforts due to incidents of illegal behavior by companies andindividuals using direct marketing. The U.S. Postal Service, the Federal TradeCommission, and other federal and state agencies may prosecute criminal acts. Theindustry then risks legislation regulating the behavior of direct marketers if it is notsuccessful in self-regulation. The Direct Marketing Association, the leading tradeorganization for direct marketing, works with companies and government agencies toinitiate self-regulation. In March of 2003 the National Do Not Call Registry went intoaffect whereby consumers added their names to a list that telemarketers had toeliminate from their out-bound call database.DATABASE MARKETING.Database marketing is a form of direct marketing that attempts to gain and reinforcesales transactions while at the same time being customer driven. Successful databasemarketing continually updates lists of prospects and customers by identifying who theyare, what they are like, and what they are purchasing now or may be purchasing in thefuture. By using database marketing, marketers can develop products and/or productpackages to meet their customers needs or develop creative and media strategies thatmatch their tastes, values, and lifestyles. Like IMC, database marketing is viewed bymany marketers as supplanting traditional marketing strategies and is a majorcomponent of most IMC programs.At the core of database marketing is the idea that market segments are constantlyshifting and changing. People who may be considered current customers, potentialcustomers, and former customers and people who are likely never to be customers areconstantly changing. By identifying these various segments and developing a workingknowledge of their wants, needs, and characteristics, marketers can reduce the cost ofreaching non-prospects and build customer loyalty. Perhaps the most important role of
    • database marketing is its ability to retain customers. The cumulative profit for a five-year loyal customer is between seven and eight times the first-year profit.Since database marketing is expensive to develop and complex to implement effectively,companies considering database marketing should consider three important questions.First, do relatively frequent purchasers or high dollar volume purchasers for the brandexist? Secondly, is the market diverse enough so that segmenting into subgroups wouldbe beneficial? Finally, are there customers that represent opportunities for highervolume purchases?SALES PROMOTION/SPONSORSHIPS/ EXHIBITIONSSALES PROMOTION.Sales promotions are direct inducements that offer extra incentives to enhance oraccelerate the products movement from producer to consumer. Sales promotions maybe directed at the consumer or the trade. Consumer promotions such as coupons,sampling, premiums, sweepstakes, price packs (packs that offer greater quantity orlower cost than normal), low-cost financing deals, and rebates are purchase incentivesin that they induce product trial and encourage repurchase. Consumer promotions mayalso include incentives to visit a retail establishment or request additional information.Trade promotions include slotting allowances ("buying" shelf space in retail stores),allowances for featuring the brand in retail advertising, display and merchandisingallowances, buying allowances (volume discounts and other volume-orientedincentives), bill back allowances (pay-for-performance incentives), incentives tosalespeople, and other tactics to encourage retailers to carry the item and to push thebrand.Two perspectives may be found among marketers regarding sales promotion. First, salespromotion is supplemental to advertising in that it binds the role of advertising withpersonal selling. This view regards sales promotion as a minor player in the marketingcommunication program. A second view regards sales promotion and advertising asdistinct functions with objectives and strategies very different from each other. Salespromotion in this sense is equal to or even more important than advertising. Some
    • companies allocate as much as 75 percent of their advertising/promotion dollars to salespromotion and just 25 percent to advertising. Finding the right balance is often adifficult task. The main purpose of sales promotion is to spur action. Advertising sets upthe deal by developing a brand reputation and building market value. Sales promotionhelps close the deal by providing incentives that build market volume.Sales promotions can motivate customers to select a particular brand, especially whenbrands appear to be equal, and they can produce more immediate and measurableresults than advertising. However, too heavy a reliance on sales promotions results in"deal-prone" consumers with little brand loyalty and too much price sensitivity. Salespromotions can also force competitors to offer similar inducements, with sales andprofits suffering for everyone.SPONSORSHIPS.Sponsorships, or event marketing, combine advertising and sales promotions withpublic relations. Sponsorships increase awareness of a company or product, buildloyalty with a specific target audience, help differentiate a product from its competitors,provide merchandising opportunities, demonstrate commitment to a community orethnic group, or impact the bottom line. Like advertising, sponsorships are initiated tobuild long-term associations. Organizations sometimes compare sponsorships withadvertising by using gross impressions or cost-per-thousand measurements. However,the value of sponsorships can be very difficult to measure. Companies consideringsponsorships should consider the short-term public relations value of sponsorships andthe long-term goals of the organization. Sports sponsorships make up about two-thirdsof all sponsorships.EXHIBITS.Exhibits, or trade shows, are hybrid forms of promotion between business-to-businessadvertising and personal selling. Trade shows provide opportunities for face-to-facecontact with prospects, enable new companies to create a viable customer base in ashort period of time, and allow small and midsize companies that may not be visited ona regular basis by salespeople to become familiar with suppliers and vendors. Because
    • many trade shows generate media attention, they have also become popular venues forintroducing new products and providing a stage for executives to gain visibility.PERSONAL SELLINGPersonal selling includes all person-to-person contact with customers with the purposeof introducing the product to the customer, convincing him or her of the products value,and closing the sale. The role of personal selling varies from organization toorganization, depending on the nature and size of the company, the industry, and theproducts or services it is marketing. Many marketing executives realize that both salesand non-sales employees act as salespeople for their organization in one way or another.One study that perhaps supports this contention found that marketing executivespredicted greater emphasis being placed on sales management and personal selling intheir organization than on any other promotional mix element. These organizationshave launched training sessions that show employees how they act as salespeople for theorganization and how they can improve their interpersonal skills with clients,customers, and prospects. Employee reward programs now reward employees for theirefforts in this regard.Personal selling is the most effective way to make a sale because of the interpersonalcommunication between the salesperson and the prospect. Messages can be tailored toparticular situations, immediate feedback can be processed, and message strategies canbe changed to accommodate the feedback. However, personal selling is the mostexpensive way to make a sale, with the average cost per sales call ranging from $235 to$332 and the average number of sales calls needed to close a deal being between threeand six personal calls.Sales and marketing management classifies salespersons into one of three groups:creative selling, order taking, and missionary sales reps. Creative selling jobs require themost skills and preparation. They are the "point person" for the sales function. Theyprospect for customers, analyze situations, determine how their company can satisfywants and needs of prospects, and, most importantly, get an order. Order takers takeover after the initial order is received. They handle repeat purchases (straight rebuys)
    • and modified rebuys. Missionary sales reps service accounts by introducing newproducts, promotions, and other programs. Orders are taken by order takers or bydistributors.INTERNET MARKETINGJust as direct marketing has become a prominent player in the promotional mix, so toohas the Internet. Virtually unheard of in the 1980s, the 1990s saw this new mediumexplode onto the scene, being adopted by families, businesses and other organizationsmore quickly than any other medium in history. Web sites provide a new way oftransmitting information, entertainment, and advertising, and have generated a newdimension in marketing: electronic commerce. E-commerce is the term used to describethe act of selling goods and services over the Internet. In other words, the Internet hasbecome more that a communication channel; it is a marketing channel itself withcompanies such as Amazon.com, CDNow, eBay, and others selling goods via theInternet to individuals around the globe. In less than 10 years advertising expenditureson the Internet will rival those for radio and outdoor. Public relations practitionersrealize the value that web sites offer in establishing and maintaining relationships withimportant publics. For example, company and product information can be posted on thecompanys site for news reporters researching stories and for current and potentialcustomers seeking information. Political candidates have web sites that provideinformation about their background and their political experience.The interactivity of the Internet is perhaps its greatest asset. By communicating withcustomers, prospects, and others one-on-one, firms can build databases that help themmeet specific needs of individuals, thus building a loyal customer base. Because the costof entry is negligible, the Internet is cluttered with web sites. However, this clutter doesnot present the same kind of problem that advertising clutter does. Advertising andmost other forms of promotion assume a passive audience that will be exposed tomarketing communication messages via the mass media or mail regardless of theirreceptivity. Web sites require audiences who are active in the information-seekingprocess to purposely visit the site. Therefore, the quality and freshness of content is vitalfor the success of the web site.
    • THE FUTURE OF MARKETING COMMUNICATIONMarketing communication has become an integral part of the social and economicsystem in the United States. Consumers rely on the information from marketingcommunication to make wise purchase decisions. Businesses, ranging frommultinational corporations to small retailers, depend on marketing communication tosell their goods and services. Marketing communication has also become an importantplayer in the life of a business. Marketing communication helps move products, services,and ideas from manufacturers to end users and builds and maintains relationships withcustomers, prospects, and other important stakeholders in the company. Advertisingand sales promotion will continue to play important roles in marketing communicationmix. However, marketing strategies that stress relationship building in addition toproducing sales will force marketers to consider all the elements in the marketingcommunication mix. In the future new information gathering techniques will helpmarketers target more precisely customers and prospects using direct marketingstrategies. New media technologies will provide businesses and consumers new ways toestablish and reinforce relationships that are important for the success of the firm andimportant for consumers as they make purchase decisions. The Internet will become amajor force in how organizations communicate with a variety of constituents,customers, clients, and other interested parties. Collected by K. Siva Theja Ncv 04