Advertising

Advertising, generally speaking, is the promotion of goods, services, companies and ideas,
usually performed by an identified sponsor. Marketers see advertising as part of an overall
promotional strategy. Other components of the promotional mix include publicity, public relations,
personal selling, and sales promotion.
Advertising involves the process where in a massage is designed so as to promote a product,
a thought, an idea or even a service. The concept of advertising has assumed a dynamic form with the
use of the various mediums of communication. From the newspaper, magazines, posters, neon and
fluorescent signboards, billboards to the commercial on TV, laser shows to inflated high-rise figures
and objects, advertising has come a long way. The work is formidable as it spearheads a process
intended to attract, modify, change and influences public opinion.
From the local business to multinational firm and all need to advertise. While politicians,
social organizations, government special groups need to advertise their motto, national airlines, auto
mobile manufactures, food and consumer goods manufacturers have to reach the consumer.
Specialist products and services are often advertised through trade magazines and exhibitions. Lately
mail-shots, handbill circulation, special offers have become very popular. There are still other ways
of advertising. There are window displays, display on telephone directories, transit sign on buses,
lamp posters, banners, etc. Advertising through the electronic media has been perhaps the most
popular medium.
Advertising, as an effective medium, uses a variety of techniques to create effective
advertisements. A basic appeal is at the heart of advertising. Slogans and product characters are
created to catch the attention of the viewers. Most winning advertisements would encompass factual
information with emotional appeal. The advertising industry has three major sectors.
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 remains
the same. The annual expenditure on the advertising has been to the tune of Rs 8000 crores and the
figure could be higher. USA has projected media spending on advertising on the net to approximately
$7700 by the turn of the century. The scope for advertising professionals certainly shows an upward
trend.

Work Environment
Ad agencies are based within office settings. Accounts Executives, Account Planers, Media
Executives, Art Directors and Copywriters spend most of their working time in agency office.
Account
Executives have to travel extensively, visiting clients and suppliers. While other staff, travel
occasionally to attend meetings with clients, or visit locations during film production. Ad agencies
are very busy places and often work is on till late hours. In 2004, workers in the industry averaged
33.8 hours per week, a little higher than the national average of 33.7.
Most employees in advertising and public relations services work in comfortable offices
operating in a teamwork environment; however, long hours, including evenings and weekends, are
common. There are fewer opportunities for part-time work than in many other industries; in 2004, 14
percent of advertising and public relations employees worked part time, compared with 16 percent of
all workers.
Work in advertising and public relations is fast-paced and exciting, but it also can be
stressful. Being creative on a tight schedule can be emotionally draining. Some workers, such as
lobbyists, consultants, and public relations writers, frequently must meet deadlines and consequently
may work long hours at times. Workers, whose services are billed hourly, such as advertising
consultants and public relations specialists, are often under pressure to manage their time carefully.
In addition, frequent meetings with clients and media representatives may involve substantial travel.
Most firms encourage employees to attend employer-paid time-management classes, which
help reduce the stress sometimes associated with working under strict time constraints. Also, with
todays hectic lifestyle, many firms in this industry offer or provide health facilities or clubs to help
employees maintain good health.
Personal characteristics
People in the accounts or client servicing i.e., the Account Executives, Director and
planer need to be adept at negotiating. The ability to communicate easily is vital. They face the
challenge of competing in the market with other agencies; hence need to have drive determination
and tremendous physical and mental stamina. Sensitivity to consumer behavior, trends and human
nature are important for success in advertising. They should be able to assimilate the clients
requirements and in a lucid style prepare briefs for other departments. The ability to get the work
executed by all departments is specially required.
The creative people need a good visual ability, language\artistic skill. Copywriter requires
literary ability but an interest in commercial success which comes from understanding what motives
the target audience is important. Writers must be able to work, to a strict brief, within restricted space
and in limited time. Advertising must follow legal requirements and rules hence considerable
creative self-discipline is needed. A feeling for words, economy of style and imagination is needed.
The copywriter works with the art director, and the creative director. The work can be very
frustrating particularly when an idea is rejected by the art director and amendments made by the
creative director and the client. This can often restrict the imaginative capacity of the copywriter. The
openness to stand criticism is absolutely essential.
Media Executives, Planners and Executive directors with others in an integrated team. They
should be able to interplant a great deal of information. Media buyers spend most of their time
negotiating over the telephone to buy space or time. Attention to detail is needed for keeping to the
budget allocated.

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

History of ad agency

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

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

3. Semi Service Period 1880 1917
The wholesaling phase of agency work was checked when publishers began to establish their
own sales departments for selling space. Some of these departments sold direct to the advertiser,
others to the general advertising agency. Thus, the agency was forced to turn its attention somewhat
away from the particular function of selling space for publisher and toward the function of buying
space for the advertiser.
Early in the semi service period agencies offered to write the copy for the advertiser, thus
giving added weight to their claim of being servants of the advertiser. This concept of service was
slow to develop; but in the early part of the 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. These
methods increased the agency business and forced most space sales to be made through them.


4. Service Period 1917 Present
By 1917 the idea of service had grown until not only was copywriting done for the advertiser
but many other things as well. During the service period, many agencies have grown to the position
of advertising and marketing counselors for advertiser.
The service elements has modified the position of agencies to such a degree that radio and
television, network and magazine publishers have come to depend upon them as the primary channel
through which time and space are sold. Publishers claim to have had an important part in
encouragements of agencies to provide extra service to the advertiser. By providing advertisers with
the kind of assistance that will improve the effectiveness of advertising, more time and space
naturally will be sold.
Advertising Process
When preparing your search proposal, you should take into account that the lead-in time
needed to place an ad can vary anywhere from days to months depending on the publication. You
should plan to have your ad approved and an estimate of the cost done at least one month prior to the
date when you want the ad to be published. The advertising process for professional staff and faculty
positions involves five basic steps:
1. Writing an Ad
2. Getting Approval for the Text of the Ad
3. Estimating the Cost of the Ad
4. Placing Ads & Posting Announcements
5. Paying for Ads
Typical work flow in agency
STAGE WORK PERFORMED AT STAGE
Briefing Stage
Briefing from the client
Internal briefing to the creative and media
Any research briefing if required
Creation Stage
Ad campaign and media plan development
Internal review and finalization
Presentation to client and approvals
Any pre-testing if required
Production Stage
Budget and estimate approvals
Production of film, press ads, collaterals
Media Scheduling and media booking
All release approvals for creative & media
Post Production Stage
Material dispatch to media
Media release monitoring
Any post-testing if required
Billing and collection

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

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

Modular agencies
A modular agency is a full service agency that sells its services on a piece meal basis. Thus
an advertiser may commission an agencys creative department to develop an ad campaign while
obtaining other agency services elsewhere. Or, an advertiser may hire an agencies media
department to plan and execute a program for advertising that another agency has developed. Fees
are charged for actual work undertaken.

In House agencies
Those companies, which prefer to have closer control over advertising, have their own in-
house agency. This type is owned completely by the advertiser. It performs almost all functions that
an outside advertising agency would perform and thats why some people refer to it as full-service
advertising department of the advertiser. However, the difference between an in-house agency and an
advertising department is that the in-house agency can undertake to serve several other clients, if the
owner so desires, but an advertising department solely undertakes that work of its owner and not of
outside clients. Secondly an advertising department may not be equipped the personnel and
facilities, which an in-house agency would posses. In-house agency not only provides control over
advertising schedule and costs, but also offers convenience for its owner, because it is just available
in the same building as that of the head office of advertiser.
Such in-house agency also benefits the owner as it can bring revenue through agency
commission that are offered by the media and by way of fees that are collected from outside parties
for undertaking their advertising work. Such revenue increases the funds and profits of the company.
There is another version of in-house agency whereby advertiser handles the total agency functions by
buying service unit to buy time, space and place the ads. Such an In-house agency is an
administrative center (under the direction of an advertising director) that gathers and directs varying
outside for its operation.

Creative Boutiques
These are shop agencies that provides only creative functions and not full-service. The
specialized creative functions include copy writing, artwork and production of ads, they charge a fee
or percentage of full service agencies, and as such most of them convert into a full service agency or
merge with other agencies to provide a wide range of services.

Mega agencies
A significant of 1980s is the development of mega agency. Agencies worldwide merge with
each other serve their clients in much better way. It was in 1986, Saachi & Saachi, a London based
agency who started the movement and at present it is the third largest agency network in the world.

The Specialists Agency
There are some agencies who undertake advertising work only in certain areas. there are
agencies that specialize only in financial services or only in publicity or only in point-of-purchase
material etc. for instance Soubhagya advertising agency concentrate on specialized in financial
advertising.
The functions of an advertising agency:
To accelerate economic growth and create public awareness
To provide a total, professional, experienced service which is very personal in its nature
To take the advertiser's message and convert it into an effective and memorable
communication


The Benefits of Using an Advertising Agency
Added Expertise
Media Knowledge and Unbiased Advice
Easier Administration
Media Buying
Quality Control
Information
Fending off the media
And when things go wrong
Cost Saving
Time Saving

Services offered by ad agency
Total Advertising Services
Strategic planning, creative development and media services for advertising, particularly in
television, newspapers, magazines and radio; providing the best creative designed to capture the
imagination of consumers

Marketing Services
Provision of a number of advertising related services, including sales promotion, market
research, PR and event marketing.

e-Solution Services
e-solution services, including system integration services, e-business consulting and customer
relationship management (CRM), Search Engine Marketing (SEM) and Search Engine Optimization
(SEO) and e-promotions using the Internet and mobile.

Content Business
Sales of sponsorship, broadcasting and other rights, and the production and marketing of such
media / content as sporting events, films, TV programs, animated content, music and other forms of
entertainment.

Integrated Media Services
Bringing value to both clients and media-related companies by offering a wide range of
media solution services

Sales Promotion
Providing comprehensive sales promotion planning designed to complement mass media and
other activities

Event Marketing
Assisting clients by providing dynamic vehicles for their messages in the form of on-the-spot
interactive communications

Integrated Branding Services
Assuring clients the highest quality of branding services for their communication needs

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




ORGANIZATION CHART
















Board of Directors
Managing Director
Client Services Director Creati ve Director
Servicing Group
Media
Research
Creative Groups
Audio Visual
Language
Studio
Production
Finance /
Accounts
Branches
Secretarial / Legal
Personnel
Type: 1



Type: 2


Departments & Personnel
Account Services / Account Management
The other major department in ad agencies is
account services or account management. Account
service employees work directly with clients and
potential clients, soliciting business for the ad agency
and determining what clients need and want the
agency to do for them. They are also charged with
understanding the clients business situation and
representing those needs within the agency, so that ads
can be brought to bear on the correct problem.
Account planner / Director
The Account Planner is the main planning executive who works in partnership with the client
on long-term account planning. He knows what is happening in the market place, the attitude of the
consumer towards the clients as well as the competitors brands.
Account Planner Deals with senior members of the client organization. He is responsible for
agency performance as a whole with limited involvement in routine agency projects. The Account
Director is responsible for forward, long-term planning, deployment of agency personnel and overall
account profitability.
The account planner was originally employed to "represent the consumer" in the advertising
i.e., find the best way to pitch the clients products to people by better understanding them, what they
want and how to talk to them. Planning's role has expanded considerably since it was originally
introduced. Planners are now also brand strategists and, to a certain extent, media strategists - using
consumer insights to understand where and how people are most receptive to certain messages. In
many agencies, there is a dedicated media department and there are also some large and small
agencies that exclusively handle media strategy and media buying.
Account Supervisor
A middle management position: he or she manages the account within a medium term
perspective. This includes strategic planning, market analysis, competitive activity analysis, as well
as recognizing and capitalizing on business building opportunities.
Account executives
Account executives represent their ad agency to their clients. They understand sales and
advertising problems of the client and address the clients need to the advertising approach. In
advertising The account is the client. The business of each client with the agency is referred to as
an account. An ad agency handles assignments of a number of clients. A clients business is assigned
to a team of people from the ad agency with the Account Executive at the head of team. An account
executive may be handling the business of number of non-competing clients at the same time. The
Account Executive supervises his team of people drawn from all departments while planning,
scheduling and executing the assignment.

Before a campaign is launched research on the clients business methods, the product to be
advertised is made. With this background information there is a meeting of the creative media and
marketing division along with members of the clients team. The objective of this meeting is to
define the nature and use of the product, and the target users as well as other competing brands. After
all the information is assigned the agency team prepares a draft brief with recommendations. These
are presented to the client by the Account Executive. The brief and budget are discussed and after
finalization of work. The Account Executive motivates guides and coordinates the activities so that
deadlines are met and the clients expectations become a reality. He spends a lot of time keeping the
client updated on the progress. The Agencys Director too has to be kept informed. This is done
directly in smaller firms but in larger firms there may be an Account Planner or Director. The chief
role of account executive is to extract the best possible work from the other departments of the
agency. They are in daily touch with clients.

Creative department
The creative department is the people who
create the actual ads - form the core of an advertising
agency. Modern advertising agencies usually form their
copywriters and art directors into creative teams.
Creative teams may be permanent partnerships
or formed on a project-by-project basis. The art director
and copywriter report to a creative director, usually a
creative employee with several years of experience.
Although
copywriters have the word "write" in their job
title, and art directors have the word "art", one does not
necessarily write the words and the other draw the
pictures;they both generate creative ideas to represent
the proposition (the advertisement or campaign's key
message). Creatives frequently work with outside
design or production studios to develop and implement
their ideas. Creative department consist of two key
personnel i.e. art director and copywriters. These
positions and ad agency is explained below.
Art Directors
Art Directors in Advertising aren't necessarily
the head of an Art Department although the title may
suggest it. They typically work in teams with a
copywriter. look and Together the team works on a concept and design for commercials, print
advertisements, and any other advertising medium. The art director is mostly responsible for the
visual look and feel of the creative product as well as the concept. The Art Director ensures that the
end product has the same feel as the original concept. The copywriter has ultimate responsibility for
the product's verbal and textual content, and both are responsible for coming up with big, effective
and persuasive ideas. Depending on the competencies of each, they may share tasks that are
traditionally designated for one or the other, for instance, an art director may suggest certain wording
and a copywriter may suggest a certain aesthetic for a project.
Art directors may also oversee a team of junior designers, image developers and production
artists. In a smaller organization the art director may fill these roles as well. In a larger organization,
art directors may oversee other art directors in a senior/junior art director relationship.
Copywriter
A copywriter is a person who writes text, or copy, for clients. Most copywriters work in
advertising or marketing, producing copy that's intended to persuade a reader to buy a product or
service or otherwise take action. Copywriting involves providing words, which are read or heard in
advertisements. This may include slogans or jingles or detailed text for catalogues, brochures,
leaflets and journals. Copywriting also takes the form of script for television and film commercial
advertisement.
Copywriters can contribute words and ideas to print ads, catalogs, billboards, commercials,
brochures, postcards, online sites, e-mail, letters and other advertising media. Ultimately, the kinds of
ads and media a copywriter will work in depend on his or her own inclination and what clients ask
for.
A copywriter often works as part of an advertising team. Agencies and advertising
departments partner copywriters with art directors. The copywriter has ultimate responsibility for
their ads verbal and textual content, the art director has ultimate responsibility for the visual look and
appeal, and both are responsible for coming up with big, effective, persuasive ideas.
Copywriter and visual art work go hand in hand and this is the work which goes on in the
agencys creative department. Briefs from the Account Executive outlining the target group for the
advertisement and information about the product, followed by discussions with the account planner,
along with research material, and perhaps a meeting with client put the creative department to work.
The essential skill of the Copywriter lies in interpreting and understanding the mind and
needs of the target audience and the characteristics of the product. They must identify what it is that
would make people want or need the product being promoted. The Art Director and the Copywriter
together then work on an idea that should catch the attention of the public and put the selling point of
the product across; many ads are discarded, reincarnated and created. The final product is a team
effort of the Copywriter and Art director with each other having suggested alterations to the other.
The more successful creations are then shown to the creative director who in turn may
suggest further modifications. Final drawings are then produced and shown to the client. Once the
client accepts the concept and layout is modified and the details filled in. The design and copy is sent
to the production team for typesetting, photographs and drawings for printed advertisements or
filming for television commercials.
Giants in the copywriting field include David Ogilvy, William Bernbach, Robert W. Bly
and Leo Burnett. Many creative artists spent some of their career as copywriters before becoming
famous for other things, including Dorothy L. Sayers, J oseph 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
Analysis & Evaluation of Brief
Research
Preliminary Strategy note More information
required
Initial Strategy meeting
Revised Strategy note
Creative Brief
Discussion of initial Concepts
with group manager
Presentation to
Agency Plans Board
Finalization of concept
Group manager presents
concepts to clients
Group manager presents
concepts to clients
Finalization of execution
Revise
Discuss with client
Pre - Testing
Digital Studio

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

Visualizer
Visualizer is a position designed by Advertising agencies to assist Art directors, in
producing quick & good quality artworks, for presentation (to please the clients). The salary of a
Visualizer is very low, usually an average salary of a Visualizer is less than half, or sometimes
quarter, of the salary of an Art Director. Visualizer is a special name used in advertising agencies
in non-native English speaking countries, Malaysia, Singapore and others.
Media Department
Size and scale of the advertising is not important.
What's in the mind is important. The big bucks are
not being spent on production, they are being
spent on broadcasting. The Media Department of an
advertising agency is responsible for the planning and
placement of advertising time and space. It is a
function that in recent years has undergone
considerable change. The proliferation of media
forms and the escalating cost of media time have
brought a new focus to the Agency Media
Department.

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

FUNCTIONS OF THE MEDIA DEPARTMENT
Media Planning
The Media Department is responsible for the preparation and the actual presentation of
the media plan. This department recommends media and media vehicles that in the agency's
opinion best fulfill the client's marketing and advertising objectives. The recommendations are
based on a careful assessment of the client's strategic requirements and the subsequent matching
against these of the various available media forms. In the process there is great reliance on
research and the known strengths and weaknesses of various media. Computer analysis is
frequently used to sift through and compare all the media audience data that is available. The
final media plan will present a carefully thought out recommendation that delivers the right
target group, at the right time, in the right place, with the right number of messages.
Media planners have access to up-to-date information about each advertising medium.
This includes the relationship and circulation figures for news papers and magazines, viewing
figures for different times of the day, listening audience figure for commercial radio stations etc.
They are also aware of the various locations for hoarding and billboards. They are a vast array of
choice. There are thousands of brands to advertise the work is challenging. It is though the
selection of the right media that a good media department can save large advertisers money as
well as give credibility.

Media Buying
Once a media plan has been approved by a client, it must then be purchased. The
procedures for this vary according to the medium under consideration. In print media, for
example, most purchases are made on the basis of rate cards issued by various newspapers or
magazines. In broadcast, however, negotiation is involved. The objective of this negotiation is
quite simple - to achieve maximum media efficiencies in obtaining the most for the least, or, in
other words, the most audience for the least amount of money.
Media buyers buy advertising time/space for the agencys client. The work closely with
the media planer if the two functions are carried out separately. Television and newspaper
advertising are expensive. The media buyers expertise is in the negotiating the best possible deal
for the client. The commercial breaks with the most viewers are the most expensive and so also
the newspapers and magazines with the
Media Estimating
Every single purchase made by the Media Buyer must be recorded in advance of the
actual running of the advertisement. This is to enable the agency to bill the client for monies
spent on their behalf and to check the invoices submitted by the media. This document is called
an estimate.

Marketing Research Department

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

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

Creative Services Department
The creative services department may not be so well known, but its employees are the
people who have contacts with the suppliers of various creative media. For example, they
will be able to advise upon and negotiate with printers if an agency is producing flyers for a
client. However, when dealing with the major media (broadcast media, outdoor, and the press),
this work is usually outsourced to a media agency which can advise on media planning and is
normally large enough to negotiate prices down further than a single agency or client can.
In small agencies, employees may do both creative and account service work. Larger
agencies attract people who specialize in one or the other, and indeed include a number of people
in specialized positions: production work, [Internet] advertising, or research, for example.
Event Management and Promotion department
These are marketing support services which coordinate with external suppliers and use
internal resources to implement the client's plans. The work here is coordination, with specific
responsibilities being more specialized. Event management, an industry that is just taking off in
India, plans, organizes and executes live events, which could include a brand/product launch, an
exhibition, a concert or even a conference.

Traffic Manager (system administrator)
An often forgotten, but still important, department within an advertising agency is traffic.
Typically headed by a traffic manager, this department is responsible for a number of things.
First and foremost is increasing agency efficiency and profitability through the reduction of false
job starts, inappropriate job initiation, incomplete information sharing, over- and under-cost
estimation, and the need for media extensions. In small agencies without a dedicated traffic
manager, one employee may be responsible for managing workflow, gathering cost estimates
and answering the phone, for example. Large agencies may have a traffic department of ten or
more employees.
Radio & TV Broadcast Production Department
The Broadcast Production department is responsible for making television and radio
commercials to be aired across the country. Each project is different and the job demands both
creative and administrative ability. The most successful people in Broadcast Production have
strong aptitudes in both creative and administrative areas. This means that they should be active
in creative spheres. They must also have a very high organizational ability as there are a myriad
of details to attend to in any production.
There are two basic classifications of jobs in Broadcast Production:
Producer
Production Co-ordinator and/or Traffic Co-ordinator

The production team's main function is to purchase the services of the correct film or videotape
Production Company and to administer and produce the TV commercial production on behalf of
the advertising agency and the client.

The Producer
The Producer is responsible for supervising all aspects of a TV commercial production,
from the selection of the production company through budgeting, scheduling, casting, locations,
sets, music creation, production meetings, filming, editing, sound mixing, to the final approval of
the finished commercial. This means that the Producer must be completely familiar with all
aspects of the film and videotape process, including animation, live action, and stop motion.

Production Co-ordinator
The function of the Production Co-ordinator is to work with one or more Producers,
providing administrative and creative support in such fields as budgeting, scheduling, producing
production books, and auditioning talent. A Co-ordinator very often will handle revisions and
adaptations of TV commercials with the production company. They may also have experience in
Broadcast Traffic learning other rules on talent or how to "traffic" a complex television schedule.
Print Production Department

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

What Print Production People Do?
Print production people:
Meet deadlines. Publications insist on strict deadlines and it's crucial that production pay
strict heed to them.
Use sophisticated technology. To ensure that those deadlines are met, the Production
Manager must possess a solid working 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 department's job is to ensure that print
advertising is reproduced correctly whether in colour or in black and white. This means
exact attention to detail and it is up to the Production Manager to provide the
specifications to suppliers.
Skills and training. What are the skills necessary to make it in Production? Technical art
expertise and a willingness to keep abreast of new developments; an aesthetic feeling for
some of the craftsmanship involved in the graphic arts; accounting and math skills; and a
sharp eye for detail. Computer literacy and an understanding of systems is another
necessary skill. Production skills aren't something that can be bought, nor are they
something that can be learned overnight. It takes a few hard years of training under the
wing of an experienced Production Manager.

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

Storyboard artist
Storyboard artist is a profession specialize in creating storyboards for advertising
agencies and film productions. A storyboard artist is able to visualize any stories using quick
sketches on paper at any moment. Quick pencil drawings and marker renderings are two most
common traditional techniques, nowadays Flash, Photoshop and other storyboard applications
are gradually taking over, digital camera is one of the latest techniques in creating storyboards.
Storyboard artist is also known as illustrator or visualizer, they are mostly freelance. Art
directors or film directors are the most likely type of peoples that would contact storyboard
artists and the deadline is always tight, overnight working is very common.
Most used storyboard applications are the Corel Painter and the Adobe Photoshop, some
storyboard artists nowadays begin and finish their work on computers using drawing software
and digital pencils like Wacom (Graphics tablet), in this way they save effort and most important
time which always has the first periority for a storyboard.
Graphic designer
Graphic design is a form of visual communication using text and/or images to present
information, or promote a message. The art of graphic design embraces a range of cognitive
skills and crafts including typography, image development and page layout. Graphic design is
applied in communication design and fine art. Like other forms of communication, graphic
design often refers to both the process (designing) by which the communication is created, and
the products (designs) such as creative solutions, imagery and multimedia compositions. Graphic
design is traditionally applied to static media, such as books, magazines and brochures.
Additionally, since the advent of computers, graphic design is utilized in electronic media - often
referred to as interactive design, or multimedia design.
There are varying degrees of graphic design. Graphic designer involvement may range
from verbally communicated ideas, to visual rough drafts, to final production. In commercial art,
client edits, technical preparation and mass production are usually required, but usually not
considered to be within the scope of graphic design unless the client is also a graphic designer.
Although the term 'graphic designer' was first coined in the 20th century, the story of
graphic design spans the history of marks of humankind from the magic of the caves of Lascaux
to the dazzling neons of Ginza. After all, they share the same elements, theories, principles,
practices and languages, and sometimes the same benefactor or client. In advertising art the
ultimate objective is the sale of goods and services. In graphic design, "the essence is to give
order to information, form to ideas, expression and feeling to artifacts that document human
experience. Fine art refers to arts that are 'concerned with beauty'..."

Advertising interns
Advertising interns are typically university juniors and seniors who are genuinely
interested in and have an aptitude for advertising. Internships at advertising agencies most
commonly fall into one of six areas of expertise: account services, creative, interactive, media,
public relations and traffic.
An internship program in account services usually involves fundamental work within
account management as well as offering exposure to other facets of the agency. The primary
responsibility of this position is to assist account managers. Functions of the account
management intern may include:
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 agency
intern website, where these interns were charged with creating and managing a website as well as
developing an advertising campaign. Hands on projects such as this one help interns learn how
strategy and well-developed marketing is essential to a sound advertising and communications
plan.
During their internship, the intern will experience the development of an ad, brochure and
broadcast or communications project from beginning to end. During the internship, the intern
should be exposed to as much as possible within the agency and advertising process.

Famous advertising agencies in world
BBH (Bartle, Bogle & Hegarty) -- famous for Audi, Levi's, J ohnnie
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 "J ust Do It", ESPN "This Is Sports center", Coke, EA, Starbucks,
ESPN, Honda UK.
JWT (formerly J . Walter. Thompson) -- works with Kelloggs, Unilever,
Diageo.
Leo Burnett -- works with Procter & Gamble, Kelloggs, McDonald's,
Marlboro, Hallmark, Heinz. Famous for creating characters such as Tony the
Tiger, Snap Crackle & Pop, the J olly Green Giant, the Marlboro Man, and
Charlie the Tuna.
The Martin Agency -- UPS, GEICO, NASCAR, Miller (Lite, MGD),
Hanes, and others
N.W. Ayer & Son -- the first ad agency in the United States, coined "When
it rains it pours" (Morton Salt), "A diamond is forever" (De Beers), "Reach
out and touch someone" (AT&T), "Be all you can be" (United States Army),
and others
Ogilvy & Mather -- famous for the Rolls-Royce print ad with the headline
"At 60 miles an hour the loudest noise in this new Rolls-Royce comes from
the electric clock", among other ads
Saatchi and Saatchi -- most famous for working with the Conservative
Party especially during the 1979 general election (Maurice and Charles
Saatchi later left and set-up M&C Saatchi)
TBWA\Chiat\Day -- works with Apple Computer (including the "Think
Different" campaign), adidas, and Sony Playstation. Responsible for creating
the fcuk brand and (in the UK) Wonderbra advertising.

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

There is no one -- sure-fire -- best way to advertise your product or service. It is
important to explore the various advertising media and select those which will most effectively
convey your message to your customers in a cost-efficient manner. Always remember,
advertising is an investment in the future of your business.

Political Advertising
Political advertising involves the use of advertising by politicians to bring their messages to the
masses. These usually warn voters that the gates of Hell will open and demons will eat skin off
their 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 encountered
in 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 exist
and may have little or no idea what the legal effect of such guidelines might be. Commercial
advertisements are widely accepted as fair and legitimate marketing.
Contrast the world of political advertising. In recent years, political advertising has become
essential to campaign strategy (at least in major campaigns), and many regard it as far more
intrusive than routine commercial advertising. But the world of political advertising is very
different from the world of commercial advertising. There really are no "rules" when it comes to
the content and form of political advertising. Political advertisers are not accountable to any
regulatory body, voluntary or otherwise, for the accuracy of their claims. They readily engage in
so-called "comparative" advertising. They blatantly criticize their competitors. They complain
incessantly 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. Considerable
evidence suggests that the negativity associated with contemporary political campaigns has
created an "avoidance" mentality which is serving to shrink the electorate and the level of
political participation generally (see Ansolabehere and Iyengar, 1995).
The current state of political advertising has aroused considerable concern within the world of
commercial advertising. Major advertising firms and professional associations have widely
deplored the lack of accountability of political advertisers and their unwillingness to adhere to a
code of ethics (see Advertising Age, April 29, 1996; New York Times, April 29, 1996;
Washington Post, J uly 30, 1996). What exactly is Madison Avenue concerned about? Perhaps
commercial advertisers fear that the apathy -- and all too frequently, aversion -- induced by
political advertising campaigns may damage the credibility, and ultimately the persuasiveness, of
more traditional forms of advertising. As Alex Kroll, former chairman of the American
Association of Advertising Agencies, put it: "We must stop politicians from ruining our
reputation." (Advertising Age, April 29, 1991) Krolls was not a solitary voice. In 1984, then
AAAA chair J ohn OToole claimed that political ads were "giving advertising a bad name."
(Advertising Age, J une 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 brand
advertising" (Advertising Age, J une 24, 1996). Our goal in this paper is to provide some evidence
on 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 that
commercial advertising is evaluated more favorably than political advertising. The assimilation
hypothesis, derived from social judgment theory, suggests that exposure to political advertising
campaigns encourages people to "assimilate" or equate their feelings about related attitude
targets (for a discussion of social judgment and other theories of attitude change, see Petty and
Cacioppo, 1986). The essence of this concept is that negative reactions to political advertising
will color attitudes toward other forms of advertising. The competing possibility, which we have
termed the "contrast" hypothesis, suggests that the negative response to political campaigns
actually makes commercial advertising appear more appealing than it would have been in the
absence of political advertising. By accentuating the negative attributes of political
advertisements, political campaigns strengthen the standing of commercial advertisers.
In the sections that follow, we will first provide some background on the scope and extent of
commercial and political advertising and the regulatory environment in which advertisers
operate. Next, we describe recent scholarly research into the content and effects of political
advertising. We then describe our experimental methodology for assessing the impact of political
advertising on receptiveness to commercial advertising and summarize the findings. Finally, we
consider the implications of our evidence for the current debate.
Comparing Commercial and Political Advertising
Even though the use of political advertising has spread exponentially, both in terms of the sheer
frequency 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 (all
races 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 the
height of the 1996 campaign, the research firm CMR found that fewer than one percent of all
televised advertisements (750,000 out of 93,000,000) in the top 75 media markets were
sponsored by political candidates or organizations (Goldstein, 1998). Clearly, the publics
distaste for these advertisements is based on factors other than sheer frequency.
The most distinctive feature of contemporary political campaign advertisements is the negativity
of their content and tone. Political advertisers frequently engage in so-called "comparative"
advertising in which the opposing candidates program and performance are criticized and even
ridiculed. Highlighting the opponents liabilities and weaknesses usually takes precedence over
identifying the sponsors program and strengths. In the most comprehensive tracking of
campaign advertising to date, scholars at the Annenberg School of Communication have found
that such "negative" advertising makes up approximately one-third of all campaign ads used in
presidential campaigns (J amieson et al., 1998). The level of negativity is actually significantly
greater when one considers frequency-weighted indicators of content (Prior, 1999). In 1996, for
instance, while fewer than one-half of the ads produced by the major candidates featured
negative 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 advertising
campaign, the "comparative" element is unlikely to be so prominent; when compared with
commercial ads, political ads are much more negative in content.
Unlike commercial advertisers, political advertises do not adhere to any codes or procedures
intended to protect the public from inaccurate and unsubstantiated claims. All commercial
advertisers voluntarily subscribe to a "code of advertising ethics" administered by the
Advertising Division of the Better Business Bureau. This code includes provisions for dealing
with complaints of false or misleading claims. Complaints directed at specific ads are reviewed
and arbitrated by a panel appointed by the National Advertising Review Board. After reviewing
the evidence from both sides, the panel may find the complaint to be valid and require that the ad
in question be modified or discontinued. The panel may also refer the complaint to the
appropriate governmental agency. If the advertiser fails to comply with a request for
modification or termination, the panel may issue a "notice of noncompliance" identifying the
advertiser.
Political advertisers are not subject to comparable voluntary guidelines. First Amendment
protections make it virtually impossible to impose involuntary restraints on the content of
political advertising. The American Association of Political Consultants has shown no
inclination to encourage any form of self-restraint. The result is a free-for-all environment in
which candidates repeatedly attack and counter-attack the claims of their competitors. The only
accountability is provided by the press, in the form of sporadic "ad-watch" news reports that
scrutinize specific ads for their accuracy (for a review of research into the effects of these
reports, see Pew Commission, 1998). The very nature of ad-watch journalism, however, is bound
to exacerbate public cynicism over the fairness and credibility of political advertising.

The Effects of Political Advertising
The harsh tone of political advertising, the often controversial techniques employed by political
advertisers, 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 that
political advertisers seek votes at any cost, even including a degraded sense of public regard for
the candidates and the electoral process. Perhaps the amount of negativity featured in political
campaigns is designed to shrink the "market" rather than increase the sponsors relative share.
Discouraging people from voting is much more feasible than persuading supporters of one
candidate to vote for the opponent. It is well known that most Americans hold fast to their
partisan attachments and that the act of voting generally serves expressive (as opposed to
instrumental) needs (for a review of research on political participation, see Rosenstone and
Hansen, 1992). Since people acquire their affiliation with the Democratic or Republican parties
early in life, the probability that they will cross party lines in response to an advertising
campaign is slight. And since the motivation to vote is typically symbolic or psychological (in
the sense that ones 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 voters
from making a choice and casting a vote. In effect, negative campaigns create an "avoidance" set
within 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 voter
turnout (see Ansolabehere and Iyengar, 1995; Houston et al., 1998, 1999; Ansolabehere et al.,
1999). It is hardly coincidental that the publics views of elections and the importance of voting
have soured as political advertising campaigns have become increasingly reliant on negative
appeals. In 1960, for example, only one in four Americans endorsed the statement that "public
officials dont care much about what people like me think." By 1990, the cynical response was
given by six of ten Americans (see Rosenstone and Hansen, 1992).
Exposure to political campaigns has extracted a similar toll on the publics views of political
advertising. There is ample survey data showing that the public dislikes media-based political
campaigns. 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 a
candidate 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 of
the 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 in
general? We attempt to answer this question experimentally, by manipulating exposure to
political advertising and then measuring participants attitudes towards political and commercial
ad campaigns. We also manipulate the tone of political advertising in order to assess the impact
of negative political campaigns on the audiences confidence in political and product advertisers.
Our results indicate that exposure to political advertising in general -- and negative political
advertising in particular -- strengthens viewers relative confidence in commercial advertising.
People do not assimilate their generally unfavorable ratings of political ads to the commercial
advertising arena. Nor do they express more favorable attitudes toward commercial advertising
in the aftermath of exposure to political advertising. However, because campaigns heighten
distaste for political advertising, the net effect is to boost the relative appeal of commercial
advertising. Thus, exposure to political campaigns enlarges the contrast between commercial and
political advertising.

Political Advertising - The 'India Shining' Campaign
Abstract:
The case describes the 'India Shining' campaign that marked the beginning of a new age of
political advertising in India. It discusses in depth the political advertising strategy of the
erstwhile 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 - Congress
that mainly targeted the masses. The case ends with a debate on the efficacy of political
advertising campaign in general, and explores reasons why the 'India Shining' campaign was
unsuccessful.

Political Campaign
A political campaign is an organized effort to influence the decision making process within a
group. In democracies, political campaigns often refer to electoral campaigns, wherein
representatives are chosen or referenda are decided. Political campaigns also include organized
efforts to alter policy within any institution. Politics is as old as humankind and is not limited to
democratic or governmental institutions. Some examples of political campaigns are: the effort to
execute or banish Socrates Athens in the 5th century BC, the uprising of petty nobility against
J ohn of England in the 13th century, or the 2005 push to remove Michael Eisner from the helm
of The Walt Disney Company.

The Cost of Campaign Advertising
Political campaigns have become heavily reliant on broadcast media and direct mail advertising
(typically designed and purchased through specialized consultants). Though, virtually all
campaign media are sometimes used at all levels (even candidates for local office have been
known to purchase cable TV ads), smaller, lower-budget campaigns are typically more focused
on direct mail, low cost advertising (such as lawn signs), and direct voter contact. This reliance
on expensive advertising is a leading factor behind the rise in the cost of running for office. This
rising cost is considered by some to discourage those without well-monied connections, or
money themselves, from running for office.

Television advertising is the primary way that modern political campaigns communicate with
potential voters. In a typical presidential, congressional or gubernatorial election, spending on
television advertising comprises the greatest proportion of a campaigns 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 Advertising
1. 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 Codes
THE CODE FOR SELF-REGULATION IN ADVERTISING PERTINENT EXTRACTS
Adopted by THE ADVERTISING STANDARDS COUNCIL OF INDIA under Article 2(ii)f of
its Articles of Association at the first meeting of the Board of Governors held on November 20,
1985 and amended in February 1995 and in J une 1999.
Declaration of Fundamental Principles
This Code for Self-Regulation has been drawn up by people in professions and industries in or
connected with advertising, in consultation with representatives of people affected by advertising
and has been accepted by individuals, corporate bodies and associations engaged in or otherwise
concerned with the practice of advertising with the following as basic guidelines with a view to
achieve 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 consumers
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 advertisers 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 Code
The responsibility for the observance of this Code for Self-Regulation in Advertising lies with all
who commission, create, place or publish any advertisement or assist in the creation or
publishing 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 this
Code. This is a self-imposed discipline required under this Code for Self-Regulation in
Advertising from all involved in the commissioning, creation, placement or publishing of
advertisements. This Code applies to advertisements read, heard or viewed in India even if they
originate or are published abroad so long as they are directed to consumers in India or are
exposed to significant number of consumers in India.
Definitions
An advertisement is defined as a paid-for communication, addressed to the public or a section of
it, the purpose of which is to influence the opinions or behaviour of those to whom it is
addressed. Any written or graphic matter on packaging, or contained in it, is subject to this Code.
Standards Of Conduct
Advertising 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 permitted
which 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 print
advertising. Please note that Professional Advertising is not offering legal advice.
For detailed information about advertising law, please contact the Federal Trade
Commission directly, or check with your state's Attorney Generals Office about
consumer protection advertising laws. Also note that state and local laws can be stricter
than federal laws, so double check.
If you have questions or doubts about any of your advertising, check with a lawyer. At
Professional Advertising, we like to take the conservative approach on these matters.
Protecting your organization from outside threats is critical to your bottom line. Knowing
how to protect your company while increasing the effectiveness of your advertising is
what Professional Advertising is all about.

Truth in Advertising
According to the Federal Trade Commission (FTC), advertising must be truthful and
non-deceptive advertisers must have evidence to back up their claims and
advertisements cannot be unfair.

Deceptive Advertising
According to advertising law, an advertisement is considered deceptive if it contains a
statement or omits information that is likely to mislead consumers acting reasonably
under the circumstances; and is, material - that is, important to a consumer's decision
to buy or use the product.
Essentially, the law states that your advertising cannot be misleading. You have to tell
the truth, or clearly label your ads so that no reasonable person could mistake your
intent. Advertisers [and their advertising agencies] need to have a reasonable basis for
advertising 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 cause
substantial consumer injury which a consumer could not reasonably avoid; and it is not
outweighed by the benefit to consumers.
In advertising law, substantial consumer injury and material are related things. In
part, 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 dont want to pay the expenses of explaining that in court.

Bait and Switch Tactics
Its illegal to advertise a product when you have no intention of selling that product at
the advertised price. Bait and switch tactics are illegal, period. If you advertise a
product, 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 suppliers
about 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 not
print anything that is not reasonable.
Advertising to Children
The FTC pays particular attention to advertisements aimed at children. These ads are evaluated
from a childs point of view, not an adults. If you advertise to children, be very careful about
following all of the guidelines. No company wants the publicity that comes from accusations
about possibly misleading children.

Comparative Advertising
If the comparison you make is true, then it is legal to print it. If you are better than your
competitors, 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 your
state's Attorney Generals Office and with the FTC. And you might want to check with your
lawyer.
Consumer Credit
All ads offering consumer credit must include clear and conspicuous disclosure terms and
conditions of receiving the credit. Check with your advertising agency, your lawyer, or the FTC
if 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 sore
throats. The claim must be true and substantiated.
Implied Claims
An implied claim is an indirect claim made in an advertisement. For example, our product kills
germs that cause sore throats is an implied claim. The implication is that the product prevents
sore throats.
The FTC judges claims on what a reasonable consumer would assume given the entirety of the
advertisement and all of the claims made. Advertising law says that the implied claim must be
true and substantiated.

Disclosure and Disclaimer Statements
These statements are required if an advertisement's express or implied claims could be
misleading.
A disclosure statement gives qualifying information so that a claim is not misunderstood. The
disclaimer 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 other
distraction. And the disclaimer cannot correct a false claim that would be deceptive
advertising.
Endorsements and Testimonials
Advertising law says that endorsements and testimonials must show the honest opinion or
experience of the endorser. Claims must be truthful and substantiated.
If a celebrity claims to use a product, that claim must be true. Consumer endorsements must
reflect the typical consumers experience with the product. Stating, your results may vary
doesnt help if the typical consumer cannot expect similar results.
Expert endorsements must be supportable by scientific methods, not by the opinion of one
expert. And if there is a material or financial connection between your company and the
endorser, advertising law says that you need to disclose it.
Free Products
You can give away anything you want, unless there is a catch. If your free item is tied to a
second purchase, then the second items price has to be the regular price. If there are any
conditions on the free item, advertising law says you must disclose all of the information in a
clear and conspicuous manner.
Rebates
Advertising law says you must prominently feature the before-rebate price in your ad, and the
amount of the rebate. Any additional terms of purchase must be disclosed, and you need to
indicate how long it takes to receive the rebate.
Guarantees and Warrantees
If you want to mention your guarantee in your ad, you must tell consumers how to get all of the
details on that guarantee. Any conditions or limits must also be disclosed in the ad. A complete
copy of the guarantee must be made available to consumers before any sale. This also covers
phone, 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 concerned
with disclosure statements and false advertising claims. All ads must be truthful and
substantiated. 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 orders
received by phone, fax, online, or by mail should ship within 30 days, or within the timeframe
stated in the ad.
Telemarketing
All claims must be true and substantiated, and all of other advertising laws apply. Additional
restrictions apply to certain categories of services, including legal services. Check with your
state's Attorney General's office.
Advertising Law: New Products
As long as it really is new, you are probably okay for six months. Check with the FTC for
specific claims about new products by product category. There are limits on what you can refer
to as new.
Advertising Law: Price
All of the truth in advertising laws apply to advertising price. If you are making a comparison, it
needs to be truthful. If you say that the product is being sold for "$xx" elsewhere, then in fact,
other representative retailers must be selling at that price.
A few small retailers selling at the higher price elsewhere are not representative of the market.
Media publishers may require you to substantiate your claims before they will print your ad.
Contact the FTC for more.
Advertising Law: Sale
Your sale price must be a reduction from the actual, bona fide former asking price that was
offered on a regular basis to the public for a reasonably substantial time period.
If you didnt sell a substantial amount of product at the higher price, you cant say formerly
sold at "$xx", because it is not really true. Inflating a price only to reduce it to its regular selling
price 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 it
at that price. Check with your state's Attorney Generals Office.
Advertising Law: Rain checks
Only food retailers must offer rain checks or comparable substitute products. However, it is
good business practice for all retailers to offer rain checks, because the public expects it. Protect
yourself 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 business
sales.
Standards for Proving Claims
If you make a claim about your product or service, the FTC expects that you can substantiate
that claim, and that you have the ability to fulfill your promises. The law states that
substantiation must be based on fact and objective evaluation, not opinion.
Deception
Deception comes from a representation, practice, or omission that may mislead the public. The
claim can be written or oral. And the entire sales transaction is considered not just a single
statement.
Whether the representation, practice, or omission is deceptive is based on what a reasonable
consumer would infer from the information. And the deceptive practice must have a negative
material or financial cost to the consumer.
Copyright in Advertising
The creation of art [advertisements, illustrations, photos, logos, etc.] carries with it automatic
copyright protection. The creator of the art owns it, until 50 years after death, unless specific
contractual terms transfer that ownership.
In addition, each artist has copyright protection for his or her component of a given piece of
work 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 being
used 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 Help
As always, Professional Advertising is here to help you. We strongly recommend that you run
your work past a marketing professional for assistance or a second opinion. And our professional
advertising design services are also available to help you succeed.
Remember, you are responsible for the content of all of your published materials. If you have
any doubt about what to print, ask your lawyer, and check with the FTC and your state's
Attorney Generals Office.
If you have legal questions, please contact an attorney. Its a cheap investment for something
that is as important as your entire advertising program.

Integrated marketing communications
Integrated Marketing Communications is the coordination and intergration of all marketing
communication tools, avenues, functions and sources within a company into a seamless program
that maximizes the impact on consumers and other end users at a minimal cost. It aims to ensure
consistency of message and the complementary use of media. The concept includes online and
offline marketing channels. Online marketing channels include any e-marketing campaigns or
programs, from search engine optimization (SEO), pay-per-click, affiliate, email, banner to latest
web related channels for webinar, blog, micro-blogging, RSS, podcast, Internet Radio and
Internet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order,
public relations, industry relations, billboard, radio, and television. A company develops its
integrated 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 results
into maximum profit at minimum cost. Generally marketing starts from "Marketing Mix".
Promotion is one element of Marketing Mix. Promotional activities include Advertising (by
using different media), sales promotion (sales and trades promotion), and personal selling
activities. It also includes internet marketing, sponsorship marketing, direct marketing, database
marketing and public relations. And integration of all these promotional tools along with other
components of marketing mix to gain edge over competitor is called Integrated Marketing
Communication.
Using outside-in thinking, Integrated Marketing Communications is a data-driven approach that
focuses on identifying consumer insights and developing a strategy with the right (online and
offline combination) channels to forge a stronger brand-consumer relationship. This involves
knowing the right touch points to use to reach consumers and understanding how and where they
consume different types of media. Regression analysis and customer lifetime value are key data
elements in this approach.

The starting point of the IMC is the marketing mix (Product,Price,Promotion,Place) which
involves different types of marketing, advertising and sales. Without a complete IMC plan there
is no integration or harmony among client and customers. The goal of an organization is to create
and maintain communication throughout it's own employees and throughout it's customers. In
order 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 Strategies
5.Marketing Tactics 6.Evaluation of performance.
Reasons for the Growing Importance of IMC
Several shifts in the advertising and media industry have caused IMC to develop into a primary
strategy 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 Elements
The goal of selecting the elements of proposed integrated marketing communications is to create
a campaign that is effective and consistent across media platforms. Some marketers may want
only ads with greatest breadth of appeal: the executions that, when combined, provide the
greatest number of attention-getting, branded, and motivational moments. Others may only want
ads 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, the
bulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, the
bulk of the research budget is also spent on these elements of the campaign. Once the key
marketing pieces have been tested, the researched elements can then be applied to other contact
points: letterhead, packaging, logistics, customer service training, and more, to complete the
IMC cycle.

MARKETING COMMUNICATION
As 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 defined
audience to affect its behavior by informing, persuading, and reminding. Marketing
communication acquires new customers for brands by building awareness and encouraging trial.
Marketing communication also maintains a brand's current customer base by reinforcing their
purchase behavior by providing additional information about the brand's benefits. A secondary
goal 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 promotional
mix. These options include advertising, sales promotion, public relations, direct marketing, and
personal selling. The Internet has also become a powerful tool for reaching certain important
audiences. The role each element takes in a marketing communication program relies in part on
whether a company employs a push strategy or a pull strategy. A pull strategy relies more on
consumer demand than personal selling for the product to travel from the manufacturer to the
end user. The demand generated by advertising, public relations, and sales promotion "pulls" the
good 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 1
Elements of Marketing Communication
For marketing communication to be successful, however, sound management decisions
must be made in the other three areas of the marketing mix: the product, service or idea
itself; the price at which the brand will be offered; and the places at or through which
customers may purchase the brand. The best promotion cannot overcome poor product
quality, inordinately high prices, or insufficient retail distribution.
Likewise, successful marketing communication relies on sound management decisions
regarding the coordination of the various elements of the promotional mix. To this end,
a new way of viewing marketing communication emerged in the 1990s. Called
integrated marketing communication, this perspective seeks to orchestrate the use of all
forms of the promotional mix to reach customers at different levels in new and better
ways.
I NTEGRATED MARKETI NG COMMUNI CATI ON
The evolution of this new perspective has two origins. Marketers began to realize that
advertising, public relations, and sales were often at odds regarding responsibilities,
budgets, management input and myriad other decisions affecting the successful
marketing of a brand. Executives in each area competed with the others for resources
and 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 to
market driven. Marketing communication was traditionally viewed as an inside-out way
of presenting the company's messages. Advertising was the dominant element in the
promotional mix because the mass media could effectively deliver a sales message to a
mass audience. But then the mass market began to fragment. Consumers became better
educated and more skeptical about advertising. A variety of sources, both controlled by
the marketer and uncontrolled, became important to consumers. News reports, word-
of-mouth, experts' opinions, and financial reports were just some of the "brand
contacts" consumers began to use to learn about and form attitudes and opinions about
a brand or company, or make purchase decisions. Advertising began to lose some of its
luster in terms of its ability to deliver huge homogeneous audiences. Companies began
to seek new ways to coordinate the multiplicity of product and company messages being
issued and used by consumers and others.
Thus, two ideas permeate integrated marketing communication: relationship building
and synergy. Rather than the traditional inside-out view, IMC is seen as an outside-in
perspective. Customers are viewed not as targets but as partners in an ongoing
relationship. Customers, prospects, and others encounter the brand and company
through a host of sources and create from these various contacts ideas about the brand
and company. By knowing the media habits and lifestyles of important consumer
segments, marketers can tailor messages through media that are most likely to reach
these segments at times when these segments are most likely to be receptive to these
messages, thus optimizing the marketing communication effort.
Ideally, IMC is implemented by developing comprehensive databases on customers and
prospects, segmenting these current and potential customers into groups with certain
common awareness levels, predispositions, and behaviors, and developing messages and
media strategies that guide the communication tactics to meet marketing objectives. In
doing this, IMC builds and reinforces mutually profitable relationships with customers
and other important stakeholders and generates synergy by coordinating all elements in
the promotional mix into a program that possesses clarity, consistency, and maximum
impact.
Practitioners and academics alike, however, have noted the difficulty of effectively
implementing IMC. Defining exactly what IMC is has been difficult. For example,
merely coordinating messages so that speaking "with one clear voice" in all promotional
efforts does not fully capture the meaning of IMC. Also, changing the organization to
accommodate the integrated approach has challenged the command and control
structure of many organizations. However, studies suggest that IMC is viewed by a vast
majority of marketing executives as having the greatest potential impact on their
company's marketing strategies, more so than the economy, pricing, and globalization.
ADVERTI SI NG
Advertising has four characteristics: it is persuasive in nature; it is non-personal; it is
paid for by an identified sponsor; and it is disseminated through mass channels of
communication. 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 sellingit is viewed as a much cheaper way of reaching
consumers. However, its non-personal nature means it lacks the ability to tailor the
sales message to the message recipient and, more importantly, actually get the sale.
Therefore, advertising effects are best measured in terms of increasing awareness and
changing attitudes and opinions, not creating sales. Advertising's contribution to sales is
difficult to isolate because many factors influence sales. The contribution advertising
makes to sales are best viewed over the long run. The exception to this thinking is within
the internet arena. While banner ads, pop-ups and interstitials should still be viewed as
brand promoting and not necessarily sales drivers, technology provides the ability to
track how many of a website's visitors click the banner, investigate a product, request
more information, and ultimately make a purchase.
Through the use of symbols and images advertising can help differentiate products and
services that are otherwise similar. Advertising also helps create and maintain brand
equity. Brand equity is an intangible asset that results from a favorable image,
impressions of differentiation, or consumer attachment to the company, brand, or
trademark. This equity translates into greater sales volume, and/or higher margins, thus
greater competitive advantage. Brand equity is established and maintained through
advertising that focuses on image, product attributes, service, or other features of the
company and its products or services.
Cost is the greatest disadvantage of advertising. The average cost for a 30-second spot
on network television increased fivefold between 1980 and 2005. Plus, the average cost
of producing a 30-second ad for network television is quite expensive. It is not
uncommon 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 is
utilized.
Credibility and clutter are other disadvantages. Consumers have become increasingly
skeptical about advertising messages and tend to resent advertisers' attempt to
persuade. Advertising is everywhere, from network television, to daily newspapers, to
roadside billboards, to golf course signs, to stickers on fruit in grocery stores. Clutter
encourages consumers to ignore many advertising messages. New media are emerging,
such as DVRs (digital video recorders) which allow consumers to record programs and
then skip commercials, and satellite radio which provides a majority of its channels
advertising free.
PUBLI C RELATI ONS
Public relations is defined as a management function which identifies, establishes, and
maintains mutually beneficial relationships between an organization and the publics
upon which its success or failure depends. Whereas advertising is a one-way
communication from sender (the marketer) to the receiver (the consumer or the retail
trade), public relations considers multiple audiences (consumers, employees, suppliers,
vendors, etc.) and uses two-way communication to monitor feedback and adjust both its
message and the organization's actions for maximum benefit. A primary tool used by
public relations practitioners is publicity. Publicity capitalizes on the news value of a
product, 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 a
vital boost to the marketing communication message: credibility. Articles in the media
are perceived as being more objective than advertisements, and their messages are more
likely to be absorbed and believed. For example, after the CBS newsmagazine 60
Minutes reported in the early 1990s that drinking moderate amounts of red wine could
prevent heart attacks by lowering cholesterol, red wine sales in the United States
increased 50 percent. Another benefit publicity offers is that it is free, not considering
the great amount of effort it can require to get out-bound publicity noticed and picked
up by media sources.
Public relations' role in the promotional mix is becoming more important because of
what Philip Kotler describes as an "over communicated society." Consumers develop
"communication-avoidance routines" where they are likely to tune out commercial
messages. As advertising loses some of its cost-effectiveness, marketers are turning to
news coverage, events, and community programs to help disseminate their product and
company messages. Some consumers may also base their purchase decisions on the
image of the company, for example, how environmentally responsible the company is.
In this regard, public relations plays an important role in presenting, through news
reports, sponsorships, "advertorials" (a form of advertising that instead of selling a
product or service promotes the company's views regarding current issues), and other
forms of communication, what the company stands for.
DI RECT MARKETI NG AND DATABASE MARKETI NG
DIRECT MARKETING.
Direct marketing, the oldest form of marketing, is the process of communicating directly
with target customers to encourage response by telephone, mail, electronic means, or
personal 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, cable
shopping networks, and infomercials. Traditionally not viewed as an element in the
promotional mix, direct marketing represents one of the most profound changes in
marketing and promotion in the last 25 years. Aspects of direct marketing, which
includes direct response advertising and direct mail advertising as well as the various
research and support activities necessary for their implementation, have been adopted
by virtually all companies engaged in marketing products, services, ideas, or persons.
Direct marketing has become an important part of many marketing communication
programs for three reasons. First, the number of two-income households has increased
dramatically. 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, more
shoppers than ever before rely on credit cards for payment of goods and services. These
cashless transactions make products easier and faster to purchase. Finally, technological
advances in telecommunications and computers allow consumers to make purchases
from their homes via telephone, television, or computer with ease and safety. These
three factors have dramatically altered the purchasing habits of American consumers
and made direct marketing a growing field worldwide.
Direct marketing allows a company to target more precisely a segment of customers and
prospects with a sales message tailored to their specific needs and characteristics.
Unlike advertising and public relations, whose connections to actual sales are tenuous or
nebulous at best, direct marketing offers accountability by providing tangible results.
The economics of direct marketing have also improved over the years as more
information is gathered about customers and prospects. By identifying those consumers
they can serve more effectively and profitably, companies may be more efficient in their
marketing efforts. Whereas network television in the past offered opportunities to reach
huge groups of consumers at a low cost per thousand, direct marketing can reach
individual consumers and develop a relationship with each of them.
Research indicates that brands with strong brand equity are more successful in direct
marketing efforts than little-known brands. Direct marketing, then, works best when
other marketing communication such as traditional media advertising supports the
direct marketing effort.
Direct marketing has its drawbacks also. Just as consumers built resistance to the
persuasive 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 direct
marketing efforts. Consumers are bombarded with mail, infomercials, and
telemarketing pitches daily. Some direct marketers have responded by regarding privacy
as a customer service benefit. Direct marketers must also overcome consumer mistrust
of direct marketing efforts due to incidents of illegal behavior by companies and
individuals using direct marketing. The U.S. Postal Service, the Federal Trade
Commission, and other federal and state agencies may prosecute criminal acts. The
industry then risks legislation regulating the behavior of direct marketers if it is not
successful in self-regulation. The Direct Marketing Association, the leading trade
organization for direct marketing, works with companies and government agencies to
initiate self-regulation. In March of 2003 the National Do Not Call Registry went into
affect whereby consumers added their names to a list that telemarketers had to
eliminate from their out-bound call database.
DATABASE MARKETING.
Database marketing is a form of direct marketing that attempts to gain and reinforce
sales transactions while at the same time being customer driven. Successful database
marketing continually updates lists of prospects and customers by identifying who they
are, what they are like, and what they are purchasing now or may be purchasing in the
future. By using database marketing, marketers can develop products and/or product
packages to meet their customers' needs or develop creative and media strategies that
match their tastes, values, and lifestyles. Like IMC, database marketing is viewed by
many marketers as supplanting traditional marketing strategies and is a major
component of most IMC programs.
At the core of database marketing is the idea that market segments are constantly
shifting and changing. People who may be considered current customers, potential
customers, and former customers and people who are likely never to be customers are
constantly changing. By identifying these various segments and developing a working
knowledge of their wants, needs, and characteristics, marketers can reduce the cost of
reaching 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 brand
exist? Secondly, is the market diverse enough so that segmenting into subgroups would
be beneficial? Finally, are there customers that represent opportunities for higher
volume purchases?
SALES PROMOTI ON/ SPONSORSHI PS/ EXHI BI TI ONS
SALES PROMOTION.
Sales promotions are direct inducements that offer extra incentives to enhance or
accelerate the product's movement from producer to consumer. Sales promotions may
be directed at the consumer or the trade. Consumer promotions such as coupons,
sampling, premiums, sweepstakes, price packs (packs that offer greater quantity or
lower cost than normal), low-cost financing deals, and rebates are purchase incentives
in that they induce product trial and encourage repurchase. Consumer promotions may
also 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 merchandising
allowances, buying allowances (volume discounts and other volume-oriented
incentives), bill back allowances (pay-for-performance incentives), incentives to
salespeople, and other tactics to encourage retailers to carry the item and to push the
brand.
Two perspectives may be found among marketers regarding sales promotion. First, sales
promotion is supplemental to advertising in that it binds the role of advertising with
personal selling. This view regards sales promotion as a minor player in the marketing
communication program. A second view regards sales promotion and advertising as
distinct functions with objectives and strategies very different from each other. Sales
promotion 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 sales
promotion and just 25 percent to advertising. Finding the right balance is often a
difficult task. The main purpose of sales promotion is to spur action. Advertising sets up
the deal by developing a brand reputation and building market value. Sales promotion
helps close the deal by providing incentives that build market volume.
Sales promotions can motivate customers to select a particular brand, especially when
brands appear to be equal, and they can produce more immediate and measurable
results than advertising. However, too heavy a reliance on sales promotions results in
"deal-prone" consumers with little brand loyalty and too much price sensitivity. Sales
promotions can also force competitors to offer similar inducements, with sales and
profits suffering for everyone.
SPONSORSHIPS.
Sponsorships, or event marketing, combine advertising and sales promotions with
public relations. Sponsorships increase awareness of a company or product, build
loyalty with a specific target audience, help differentiate a product from its competitors,
provide merchandising opportunities, demonstrate commitment to a community or
ethnic group, or impact the bottom line. Like advertising, sponsorships are initiated to
build long-term associations. Organizations sometimes compare sponsorships with
advertising by using gross impressions or cost-per-thousand measurements. However,
the value of sponsorships can be very difficult to measure. Companies considering
sponsorships should consider the short-term public relations value of sponsorships and
the long-term goals of the organization. Sports sponsorships make up about two-thirds
of all sponsorships.
EXHIBITS.
Exhibits, or trade shows, are hybrid forms of promotion between business-to-business
advertising and personal selling. Trade shows provide opportunities for face-to-face
contact with prospects, enable new companies to create a viable customer base in a
short period of time, and allow small and midsize companies that may not be visited on
a regular basis by salespeople to become familiar with suppliers and vendors. Because
many trade shows generate media attention, they have also become popular venues for
introducing new products and providing a stage for executives to gain visibility.
PERSONAL SELLI NG
Personal selling includes all person-to-person contact with customers with the purpose
of introducing the product to the customer, convincing him or her of the product's value,
and closing the sale. The role of personal selling varies from organization to
organization, depending on the nature and size of the company, the industry, and the
products or services it is marketing. Many marketing executives realize that both sales
and non-sales employees act as salespeople for their organization in one way or another.
One study that perhaps supports this contention found that marketing executives
predicted greater emphasis being placed on sales management and personal selling in
their organization than on any other promotional mix element. These organizations
have launched training sessions that show employees how they act as salespeople for the
organization and how they can improve their interpersonal skills with clients,
customers, and prospects. Employee reward programs now reward employees for their
efforts in this regard.
Personal selling is the most effective way to make a sale because of the interpersonal
communication between the salesperson and the prospect. Messages can be tailored to
particular situations, immediate feedback can be processed, and message strategies can
be changed to accommodate the feedback. However, personal selling is the most
expensive 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 three
and 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 the
most skills and preparation. They are the "point person" for the sales function. They
prospect for customers, analyze situations, determine how their company can satisfy
wants and needs of prospects, and, most importantly, get an order. Order takers take
over after the initial order is received. They handle repeat purchases (straight rebuys)
and modified rebuys. Missionary sales reps service accounts by introducing new
products, promotions, and other programs. Orders are taken by order takers or by
distributors.
I NTERNET MARKETI NG
Just as direct marketing has become a prominent player in the promotional mix, so too
has the Internet. Virtually unheard of in the 1980s, the 1990s saw this new medium
explode onto the scene, being adopted by families, businesses and other organizations
more quickly than any other medium in history. Web sites provide a new way of
transmitting information, entertainment, and advertising, and have generated a new
dimension in marketing: electronic commerce. E-commerce is the term used to describe
the act of selling goods and services over the Internet. In other words, the Internet has
become more that a communication channel; it is a marketing channel itself with
companies such as Amazon.com, CDNow, eBay, and others selling goods via the
Internet to individuals around the globe. In less than 10 years advertising expenditures
on the Internet will rival those for radio and outdoor. Public relations practitioners
realize the value that web sites offer in establishing and maintaining relationships with
important publics. For example, company and product information can be posted on the
company's site for news reporters researching stories and for current and potential
customers seeking information. Political candidates have web sites that provide
information about their background and their political experience.
The interactivity of the Internet is perhaps its greatest asset. By communicating with
customers, prospects, and others one-on-one, firms can build databases that help them
meet specific needs of individuals, thus building a loyal customer base. Because the cost
of entry is negligible, the Internet is cluttered with web sites. However, this clutter does
not present the same kind of problem that advertising clutter does. Advertising and
most other forms of promotion assume a passive audience that will be exposed to
marketing communication messages via the mass media or mail regardless of their
receptivity. Web sites require audiences who are active in the information-seeking
process to purposely visit the site. Therefore, the quality and freshness of content is vital
for the success of the web site.
THE FUTURE OF MARKETI NG COMMUNI CATI ON
Marketing communication has become an integral part of the social and economic
system in the United States. Consumers rely on the information from marketing
communication to make wise purchase decisions. Businesses, ranging from
multinational corporations to small retailers, depend on marketing communication to
sell their goods and services. Marketing communication has also become an important
player in the life of a business. Marketing communication helps move products, services,
and ideas from manufacturers to end users and builds and maintains relationships with
customers, prospects, and other important stakeholders in the company. Advertising
and sales promotion will continue to play important roles in marketing communication
mix. However, marketing strategies that stress relationship building in addition to
producing sales will force marketers to consider all the elements in the marketing
communication mix. In the future new information gathering techniques will help
marketers target more precisely customers and prospects using direct marketing
strategies. New media technologies will provide businesses and consumers new ways to
establish and reinforce relationships that are important for the success of the firm and
important for consumers as they make purchase decisions. The Internet will become a
major force in how organizations communicate with a variety of constituents,
customers, clients, and other interested parties.





Collected by
K. Siva Theja
Ncv 04