ADVERTISING IN CONTEMPORARY SOCIETY

5 M’S OF ADVERTISEMENT

ADVERTISEMENT – MISSION - MESSAGE- MEDIA- MONEY- MEASURE

ADVERTISMENT IN INDIAN ECONOMYAdvertisement in general is referred to as any paid nonpersonal presentation of a product or a service by an identifiable sponsor all advertisement campaigns are influenced by five major elements. These are popularly referred to as the 5 m’s of advertising.

1. Mission – The term mission refers to long term goal of any institution such a goal will provide the basic direction for the campaign.

2. Message – Every advertisement makes an attempt to convey specific information to the public. Such a message is conveyed through a visual content of an advertisement. All such messages effect the mission statement of the unit.

3. Media – Media is the common vehicle employed by the marketers to convey the message. A specific media or combination of the media can be chosen to ensure effective communication.

4. Money – Every unit has a marketing budget, which has a sub-budget in the form of advertising budget. Each campaign takes into account the provision made under the advertising budget.

5. Measure – This refers to the mechanism available for measuring the reach. An effectiveness of specific campaign. At present these are measured through special institutions and rating system adopted by the various media. The volume of sales is also one of the

indicates which can be used to measure the impact of advertising.

TYPES OF ADVERTISINGOn the basis of content – Advertisements in general can be classified under various categories as stated below:

1. Consumer advertising2. Business to business advertising3. Trade advertising4. Retail advertising5. Financial advertising (banks)6. Direct response advertising7. Recruitment advertising

On the basis of content – the term content refers to the main message that is conveyed through the advertisement.

1. Consumer advertising – If the message is directly aimed at influencing the behavior of end users of the product or service then it is called consumer advertisement – e.g. beverages, food items, consumer durables.

2. Business to business advertising – Such advertising is aimed at announcing the availability of product or a service for a variety of industrial and business activities.

3. Trade advertising – These have a narrow scope. They restrict their message to the members of the channel of distribution of a single trading activity – e.g. wholesaler, retailer, manufacturers.

4. Retailer advertising – These are specific messages by local shop owners to the people residing in certain locality. At present big retail unit like shopping malls do undertake a lot of retail advertising.

5. Financial advertising – As a result of privatization of financial sector such advertisement have become highly essential for the survival of the banking and insurance unit.

6. Direct response advertising – Such advertising aims at creating an immediate response on a part of target group. They announce

discount prices, reduction, premium offers.

7. Recruitment advertising – This refers to certain employment oriented advertisements which are aimed at recruiting the best talent available in the market. These are designed in a challenging manner in order to attract the best of talent.

THEORIES OF ADVERTISING

- Value addition theory by Martin Meyer

- Emotional theory by Plutchik

- Advertising effect theory

- Mimesis theory by Ginard

VALUE ADDTIONa. Productory Service – Any features

not physically inherent ( include by psychology they can create impact)

b. Adding value not inherent in the product Liril Soap – Freshness Kurlon Mattress – Sound sleep

c. Creation of additional value to the product – Kelloggs Corn Flakes – Intelligence, Parle biscuits – Cleverness

EMOTIONAL THEORYa. Anticipation – Axe Deob. Acceptance – Fair and Lovelyc. Surprise – Santrod. Joy – Cokee. Fear – Saffola Life Insurancef. Anger – Morteing. Sadness – Life Insuranceh. Disgust – Harpic, Itchguard,

Ringguard

ADVERTISIGN EFFECT THEORYBehavior of person environment

MIMESIS THEORYAGENT-MODEL – OBJECT-AGENTE.G nano cars

BASIS OF REACH

1. Local2. Regional3. National 4. Global

An advertisement can be classified on the basis of reach has local regional national and global.

LOCAL – Advertisements are essentially retail advertisements to promote the sale of goods and services within a specific localitye.g. malls, shoppers stop

REGIONAL – Advertising may promote a product or a service within the state or a region.e.g. state transport, chate classes

NATIONAL – Advertising promotes a brand within the country

GLOBAL – Advertising adopts a multi country approach and they advertise at the global level

BASIS ON IMPACT 1. Primary advt2. Selective advt3. Direct action advt4. Delayed response advtg5. Institutional advt

1. Such advertisements are associated with the introduction of a new product or a service they essentially educate the public

2. These are targeted towards a specific selection of the population such as children, women, senior citizens etc

3. These are aimed at achieving an immediate response from the audience such as response is obtained through discount offers,

price reduction, premier offer and gifts, contests etc

4. For durable consumer goods involving huge investments an advertisement cannot create an immediate response but when people decide to buy such items the exposure would influence them.

5. These are mainly prepared in order to build up corporate goodwill and market reputation such ads do not have an immediate commercial gain but they enjoy a long term market gain.

ROLE OF ADVERTISEMENT

1. Consumer Perspective – a. Communication role – All advertisements aimed at communication the product and services to the consumer through verbal visual managerb. Guidance role – Many advertisements contain a

demonstration which acts as a practical guide to use the product or servicec. persuasion role – ads aimed at removing the reluctance of the public by persuading them from various angles.d. motivational role – by announcing various special advantages and incentives advertisement influence the customerse. welfare role – all products and services contribute towards human welfare such a welfare role is a part and parcel of the product.

2. Marketing perspective

a. Commercial Role – all ads aimed at promoting the sale of goods and services in order to provide a commercial gain.

b. Competing role – A marketer uses the ads to win over competition and to strengthen his own marketing base

c. Brand building role – the task of brand build involves the creation of a mental image in the minds of the consumers. Ads play a key role in brand building.

d. Institutional bldg role – the corporate image has to be consciously built over a number of years. Such image building activity would become crucial in the event of any rises. Ads help the company to overcome such critical situations.

e. Social responsibility role – corporate social responsibility has become highly popular concept at present publishing welfare messages and popularity welfare themes and undertaken by corporates e.g. AIDs control, child labor.

3. MEDIA PERSPECTIVE

a. Sustenance Role – All media sources sustain themselves only with the help of ad support and

sponsorship initially by the company.

b. Revenue role – media earns its revenue through several types of news and non news features. Features printed or broadcasted over a period of time such revenue are mainly earned with the help of the space and time booked by the various advertisers.

c. Creative role – Advertisement campaigns bring out the creative talents of a variety of individuals such as copy writers commercial artists and other technical personnel

d. Growth role – a media unit can expand his operations only with the help of advertising support thus ad support the media and is responsible for its success and growth.

4. SOCIAL PERSPECTIVE

a. Distribution role – Ads bridge the gap between demand and supply and enable the public to buy and enjoy a variety of goods and services

b. Employer role – the media industries as well as other related industry provide employment opportunity to the masses

c. Lifestyle elevator role – ads make the public aware of the variety of goods and services which elevates the life style.

d. Consumer choice provider role – ads inform the public of the availability of multiple brands. This would influence consumer choice. In the short run but over a period of time big multinationals may adopt aggressive ad campaigns & attempt monopoly status. This would reduce consumer choice in the long run.

e. Consumer welfare role – consumer welfare refers to a

positive state of mind on the part of the public ads affect a major section of the population in the negative manner by making them feel discontented and unhappy this affects consumer welfare

f. Price reducer role – ads can bring about large scale economies and this in turn can bring about reduction in prices but many manufacturers do not pass on the benefits to the consumers and this affects price reduction. Thus ads have a variety of roles to play in the economy.

WHAT IS LIBERALISATION AND ITS IMPACT ON ADVERTISING

LIBERALISATION- Industrial policy- Indstrial liscencing

policy- MRTP – monopol

detective trade professed act

During 1991 the Govt of India announced the policy of liberalisatio of the Indian economy. Till then India was a closed protected economy ful of internal controls. Such controls regulated the growth and functioning of the India industries. Liberalization relaxes thse rigid policies thus certain existing poilices were amended and few others were newly introduced.

POLICY MEASURING CHART- LISCENSING

POLICY

- FEMA ACT- MRTP ACT

1. The new industrial policy allowed the private sector to participate in new areas fo industrial activities. These increase the scope for advertising.

2. Liscencing policty of 1951 was amended and the govt relaxed the lisecning requirement for industirnal units. Thus greater participation of the private sector increased the socpe for advtg.

3. Foreigh exchange magnt act – during 1973 the govt had enacted FERA (Foreign Exchange Reguation Act) which restricted the inflow and outflow of foreign exchange in the country. The FEMA of 2003 relaxed the provision related to the movement of foreigh exchange. This resulted in greater opportunities for FDI and FII (Foreign Driect Investment and Foreign Institutional Investment) to invest in India these in turn increased the potential for advertising.

4. MRTP act – this act was originally passed in 1973 to prevent the formation of business monopoly and to redracted the zamindari system. After liberation this act was amended to enabl the expansion of business units and to facilitate the growth of trade and advtg. The amendment relation to restrictive practices felicitated the growth of industrie and advtg

GLOBALISATIONThis refers to the practice of opening up the Indian economy for foreign goods and services and allowing theindian goods and services to be explored in interntational markets. This was brought about through introduction of a new EXIM policy (export import policy)

PRIVATISAIONThis was the consepquenc of gloobalisation and liberalization. It enallbed private individuals to undertake the ownership ventures even in areas like banking and insurance