Chapter 1
ADVERTISING AGENCY OF INDIA
ADVERTISING
INTRODUCTION
Advertisements can also be seen on the seats of grocery carts, on the walls
of an airport walkway, on the sides of buses, heard in telephone hold
messages and in-store public address systems. Advertisements are usually
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Thus, several reasons for advertising and similarly there exist various media
which can be effectively used for advertising. Based on these criteria there
can be several branches of advertising
Types of advertising
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Celebrity Advertising
Although the audience is getting smarter and smarter and the modern day
consumer getting immune to the exaggerated claims made in a majority of
advertisements, there exist a section of advertisers that still bank upon
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Significance of advertising:
1) Benefits to Manufacturers:
2) Benefits to Middlemen:
3) Benefits to Consumers:
4) Benefits to Salesmen:
5) Benefits to Community:
· Educative
Functions of advertising
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There are four additional ways to differentiate your offering from the
competition and increase your differentiation:
Example:
Ponds age miracle, in that ad the celebrity HADIQA KAYANI is informing the
consumers about the benefits of it. That how the old women can look
younger by using it continuously. It will make you fair cream plus it reduces
freckles plus it can be used as a sun block as well it will make you look
young.
When the consumer comes to know about the particular product from the
advertisement he/she wants to try that new product. They go to shops to buy
the product; if the new product is not available in a shop then the
shopkeeper consults the distributor to make that product available in his
shop. It is basically to provide the product all over market. It is necessary to
make sure that product should be accessible to everyone. Availability of
product effect the distribution. . Accessibility is major factor for successful
product
Example: 99% girls who are not married will not look at the ad of pampers
or any milk powder for children but when they will get married their interest
will automatically move towards such ad'
6. Brand loyalty
People often make purchasing decisions based on how a brand makes them
feel emotionally rather than based on quality or other objective evaluations.
If "Just Do it" strikes a chord with an athlete, he'll buy Nike; the decision
may have little to do with quality.
Example: For instance, when one buys a tube of Colgate toothpaste and
finds it ok, one will not have to spend any valuable time on looking for other
toothpaste brands.
When a product is selling you have to teach the people about the product.
Example: Coke targets their consumers on a very large scale through mass
media whereas make cola advertise on smaller scale or go door to door to
advertise their product.
Advertising have to create new demands they should educate the people
about more and more new things coming up in the market. Each year new
products, including line extensions and new brands are introduced into
groceries and drugstores.
Chapter 2
ADVERTISING AGENCY OF INDIA
Advertising agency
There are several associations that advertising agencies may belong to, such
as the Ad Council, the American Advertising Federation, the International
Association of Business Communicators, and the American Association of
Advertising Agencies, or AAAA. When deciding between advertising agencies,
it is a good idea to see if they are members of any associations and to check
them out with the Better Business Bureau. Also helpful is asking an ad
agency for examples of their work. You may find that they are responsible for
well-recognized ad campaigns that have helped establish other companies.
Such agencies may be expensive and you may have to wait some time to
join their list of clients, but an agency that can make your product or service
a household name is worth the wait and the cost.
MEANING;
An advertising agency or ad agency is a service business dedicated to
creating, planning and handling advertising (and sometimes other forms of
promotion) for its 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.
HISTORY;
Volney B. Palmer opened the first American advertising agency, in
Philadelphia in 1850. This agency placed ads produced by its clients in
various newspapers
The First World War created conditions for the growth of some of the Indian
consumer industries. After the war, new British investment followed. The
need arose for specialized advertising services. The British India Corporation,
a British firm in Kanpur, with a relatively wide range of consumer goods, set
up Alliance Advertising Associates Limited. This was probably the first
advertising agency in India to provide a wide variety of services. In 1922, Mr.
L.A. Stronach, a senior artist of Alliance Advertising, left to start his own
agency in Bombay. Thus was born a new type of business enterprise in the
service sector in India.
The Indian advertising industry had a slow start and got its first boost during
the Second World War. With the British personnel having to join the armed
forces, opportunities opened up for Indians in this new talent-intensive
business. Then followed a brief interlude of uncertainty in the years
immediately following Independence. The launching of the First Five-Year
Plan and more so the Second Five Year Plan, with the accent on rapid
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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 agency’s creative
department to develop an ad campaign while obtaining other agency
services elsewhere. Or, an advertiser may hire an agencies media
department to plan and execute a program for advertising that another
agency has developed. Fees are charged for actual work undertaken.
In House agencies
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
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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 1980’s is the development of mega agency. Agencies
worldwide merge with each other serve their clients in much better way. It
was in 1986, Saachi & Saachi, a London based agency who started the
movement and at present it is the third largest agency network in the world.
• Quality Control
• Information
• Fending off the media
• And when things go wrong
• Cost Saving
• Time Saving
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Another disadvantage would be the media buying discounts you may not be
able to take full advantage of due to commission barriers within an agency,
however an agency may have better negotiating powers than your company
and save you more money in the long run anyways. There are far more
advantages to having the right advertising agency than not.
To begin with, the agencies started as one-man agents who booked space in
the
Media. Even today, in our country, there are so many one-man agents who
book space in the media. Soon the space booking was handed over to the
contact-man, and creative wordsmiths adept at sloganising undertook the
actual construction of the ad. In the course of years, the ad agency became
service-oriented, and was able to offer every possible service including
marketing, market research (MR), and public relations (PR).
Ad agencies have evolved over a period of time. These days we have mostly
studio-based agencies, some industrial and specialized agencies, and hot-
shops who only plan creative campaign by engaging the services of
freelancers.
At Madison Avenue, most of these large agencies of the world fiercely
compete for new accounts, resulting in a shift of millions of dollars of billing
from one agency to another. Advertising Age is an official publication of the
American Association of Advertising Agencies (AAAA).
In India, advertising business is worth Rs. 8,000 corers. There were only 62
advertising agencies in 1958, which increased to 168 in 1978, more than 2.5
times the numbers in 1958. There are more than 500 ad agencies today. The
oldest and largest advertisement agency in India is Hindustan Thompson
Associates Ltd. The second largest advertisement agency is Lintas.
The advertising agencies are shifting from the creative mode to the
marketing mode. Today the onus is on the agency to supply the client with
data on his industry; the days of the clients briefing the industry are almost
over. The agencies are expected to maintain database. There is a leaning
towards software for optimizing media usage, and computerization of studio
functions.
Many agencies die a premature death. Most people do not appreciate that an
agency –like any other business - must be properly managed. It is simply not
enough just to have great idea. In recent years, there has been a healthy
trend towards sound management practices, especially financial planning
and control.
accounts 'of entertaining clients. They got their elitist brand due to this
reason. But high salaries and freedom are necessary to attract talents.
He reaches out to different clients for seeking new business. Even clients
who want an agency' to work for them contact the accounts executive. This
business development work makes it virtually a marketing manager of the
agency.
The faculties of logic and reason are supposed to reside in the left-brained
people. While intuition and creativity are believed to be in the right. So far,
accounts director was considered suitable if logical and systematic, i.e., left-
brained. But if he has to motivate a team, he should be inspiring and
creative too, i.e., right-brained.
Visualisers: These are artists who put on paper what has been thought out
by the copywriter. They in fact design the ad.
The Media : Most of the media today sustain on advertising revenue. They
sell space or time. While selling space or time, they have to convince the
client about the reach of their media vehicle, the composition break-up of
their readers and the pricing of their space/time selling. They monitor the
market, survey their readers, and highlight their readers' demographic and
geographic characteristics. They also maintain relationship with the media
department of advertising agencies who buy space/time on behalf of clients.
Advertising Manager
(b) By Media
Advertising Manager
© By Product
Advertising Manager
(d) By Geography
Advertising Manager
Reporting Structure:
Centralization or Decentralization
In practice, however, it has been found that most companies follow the
centralized pattern of advertising organization. There are at least two
important reasons for it.
1. It is difficult to transfer the tasks of preparation and execution of
creative advertising from to the many without loss of efficiency to a
great extent.
2. Most companies entrust their advertising work to outside agencies
and it is more convenient with them in a centralized way.
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12. Prepare instruction manuals for those who will sell and use the
product; all in all, do everything possible to make the most effective
use of the advertising investment.
13. See that all mail enquiries are answered with mailings as required.
14. See that all bills are properly checked; keep an account of funds
and prepare proper reports for management.
Company with a
Ad Agency Media Public
product or service
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Questions like these are good questions, but the answer to them is
often not as clear or simple as it seems. In order to answer them,
attention must be focused not on the total costs of advertising agency
service but on the additional costs, if any which the use of an
advertising agency will involve as against the expenditure of the same
number of advertising dollars on a direct basis without agency
participation in the expenditure. The difference is a vital one, because
of the nature of historically established advertising agency
compensation methods.
purchased.
You may well ask: Why should advertising media pay my advertising
agency for services performed by the agency for me, the advertiser?
The answer is buried in the historical development of the advertising
agency, and would require more space here than its relevance to the
subject of this report warrants. What you should remember is that,
illogical or not, that is the basis of most advertising agency
compensation generally.
likely to consist of two items, each identified. The first is the base cost
which represent the sum, which the agency paid out of its corporate
pocket to the media. The second is an additional figure, representing
agency commission. In that way the agency receives the same relative
gross income from the advertising it places, as it would have received
if the media granted commissions to agencies. It is customary also to
add agency commission to various other non-commissionable
expenditures made by the agency for its advertiser-client, such as the
cost of the engravings used in advertisements (purchased by the
agency from a photo-engraving house), and the cost of the finished
artwork from which those engravings were made.
You are entitled to know just how much in the way of what kind of
service you will receive for that $11,000. the agency will (or should)
tell you. You should be on guard against being “over sold” – against
being promised $20,000 or $30,000 in service. You know from the
above figures that the only way an agency can deliver that much
service on an account your size, is for the agency to lose a substantial
sum of money in serving you.
Chapter-3
ADVERTISING AGENCY OF INDIA
Company profile
Introduction;
One client vimal and a 500 sq ft office that was Mudra in the year 1980
They were a small agency tucked away in Ahmedabad with one clearly
Articulated goal to be a top 5 agency .there ambition with an almost
manic obsession by creating the best contemporary advertising that
had our client and other people taking notice
As a young agency operating out of Ahmedabad our growth was driven
helping small business with big ambition explode their brands to the
country at large
HISTORY POINTS :-
ADVERTISING AGENCY OF INDIA
Head Mumbai
quarter
Industry Marketing and
advertising
Type Privately held
Status Operating
founded 1980
Sanjay New
Sharma president(North&East
0
Company 501-1000 employees
size
Web site www.mudra.com
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Name Designation
Sebastian Joseph Executive,vicepresident,and head
technology
Mohit Country head,mudra sport
Bhagchandani
Joy deep Vice president and national
dasgupta strategic, planning head
Sonal Jheej Account planner
*It was a mudra that first gave India double spread colors ads
*it was mudra that first sponsored commercial telecast of a major
sporting event with the India and west Indies series of 1983
*it was mudra that first branded a public issue reliance khazana
*it was mudra that made India s first teleflim Janam
*it was mudra that gave Doordarshan Rajani .The serial that heralded
a new consumer awareness in India
*it was mudra that gave India s it s first academy for advertising .
THE Mudra Institute Of Communication(MICA)
*it is a mudra that gave India s advertising community its first
advertising archives marketing and Advertising Gallery(MAG)
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MEMORABLE ADVERTISING
3 my daddy strongest
7 Team Samsung
Mudra is also one of the few agency networks in the country that offers
a comprehensive suit of marketing services under one umbrella .these
are supported by the largest national network among all agency.
CLIENTS
1. Paros pharmaceuticals
2. Reliance communication
3. Union bank of India
4. Life Insurance Cooperation of India
5. Godrej
6. The Philips
7. Hindustan unilever ltd.
8. Pepsi
9. Jet air ways
10. Reliance ADAG
11.Spice telecom
12.ICI points
13.Union bank of India
14.Amrutanjan
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AWARDS
Strength
- Quality in advertisement
Weakness
- Pricing strategy
Opportunities
Threats
AGENCY PLACE
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Conclusion:
Bibliography-
www.google.com
www.india advertising agency.com
www.yahoo.com
www.msn.com
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ANNEXURE
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ADVERTISING AGENCY OF INDIA
ADVERTISING AGENCY OF INDIA