ADVERTISING IN INDIAN MARKET

INDEX

INTRODUCTION

HISTORY OF ADVERTISING

TYPES OF ADVERTISING

FUNCTIONS OF ADVERTISING

ADVANTAGE AND DISADVANTAGES OF

ADVERTISING

CONCLUTION
MEANING

Advertising can play an important role in the process by which an

economic system guided by moral norms and responsive to the
common good contributes to human development.

DEFINATION

If the word ‘advertisement’ is section 65(2) of the finance act, 1994,

and includes any notice, circular, label, document, hording or any
other audio or visual representation made by means of light.

1) The activity of attracting public attention to a product or

business, as by paid announcement in the print, broad cast,
are electronic media.
2) The business of designing and writing advertisements.

Advertising history

Advertising - in general, any openly sponsored offering of goods,

services, or ideas through any medium of public communication. At
its inception advertising was merely an announcement; for example,
entrepreneurs in ancient Egypt used criers to announce ship and
cargo arrivals. The invention of printing, however, may be said to
have ushered in modern advertising. After the influence of
salesmanship began to insert itself into public notice in the 18th
cent., the present elaborate form of advertising began to evolve. The
advertising agency, working on a commission basis, has been
chiefly responsible for this evolution. The largest groups of
advertisers are the food marketers, followed by marketers of drugs
and cosmetics, soaps, automobiles, tobacco, appliances, and oil
products. The major U.S. advertising media are newspapers,
magazines, television and radio, business publications, billboards,
and circulars sent through the mail. With the advent of the wide
availability of electronic mail and access to the World Wide Web in
the 1990s, the Internet has also become an important advertising
venue. Since many large advertising agencies were once located on
Madison Avenue in New York City, the term "Madison Avenue" is
frequently used to symbolize the advertising business.

TYPES OF ADVERTISEMENT

Types of advertisement focus on:

 Target group
 Types of impact required
 Geographical area

TARGET GROUP
The following are the types of advertising:

Consumer advertising
Most of the consumer products company encourages product
advertising. Marketers of cosmetics, detergents, soaps are included
here. Sponsors in this area compete with one another to establish an
advantage for their particular brand. Eg-“Lux cake seduction
“consumer product ad for toilet soap by HUL.

Service advertising:
Service sector encompass such services as medical services,
financial services, education services etc.
In service advertising, the service provider to sells is expertise. It is
very difficult because (the services are intangible, there is no
transfer of owner ship, difficult to differentiate,
production/consumption are inseparable. Eg- service ad by
‘incredible India’

Industrial advertising:

The number of industrial advertising as percentage of sales is much

less compared to customer product advertising. However, the
industrial advertising helps to motivate distributors to build
company’s image.

Trade advertising

It consists of two parts. They are

 Retail advertising
 Wholesale advertising

Retail advertising:
This covers those items sold directly to the customer by retail shop.

Wholesale advertising:
This advertising unfortunately is not well organized at home. This
advertising themselves or for their dealers
Non-profit advertising

Hear idea selling is done instead of product or service. This is

generally aimed at fund rising (send us a cheque for prime
minister’s flood relief fund) Anti-smoke ad by non-profit
organization etc.

TYPES OF IMPACT REQUIRED BY AD

Promotional demand ad

It is the demand for a product or service in question. The

advertising, which focuses on the promotional, represents a form of
inter-industry competition Eg- liquor manufacturer attempt increase
the overall demand for beer with advertising campaign showing the
“chota bottle, but kick total”.

Institutional ad

It aims at building a positive public image in the eyes’ of

shareholders, employees, suppliers and the general public. BPCL,
IOCL for opening of outlets etc. Eg- Q & Q stations

GEOGRAPHICAL AREA

Local advertising

Retailer’s ad generally provides specific information for the

customer. One of the Eg- this ad is released by local dailies for Bajaj
or Hero Honda two-wheelers.
National advertising

There are companies who advertise across the regions of the

country. It encourages the customer to buy their products wherever
they are sold. Most national advertisements concentrate on the
overall image. The famous national advertisers are HUL,
BRITANNIA.

Global advertising

This type of advertising is resorting to by companies, which are

global presence, such as IBM, INTEL and COMPAQ,
MICROSOFT etc.

FUNCTIONS OF ADVERTISING

There are three functions of advertising:

  Social function.
 Psychological function.
 Economic function.

SOCIAL FUNCTION

Consumer protection is achieved by educating through

advertisement. It helps to solve causes, such as fighting chronic
disease like cancer; endemics take malaria or helping the needy etc.

PSYCHOLOGICAL FUNCTION

Advertisement appeals to psychological motives of human beings

such as “soft drinks company advertising to meet the psychological
need of the consumer namely “thirst” Eg- Thanda matlab coca
cola”.

ECONOMIC FUNCTION

(Value / price equation conveyed to consumer):

• Brings attitudinal change in the customer to make him buy
products offered by manufacturer.
• It helps the sales in an indirect manner.
It establishes a rapport with the customer.

ADVANTAGES OF ADVERTISING

 A beneficial factor is combination of factors.

 Benefit or profit; gain: it is to your advantage to invest wisely.
 A relatively favorable position; superiority of means: A better
education gave us the advantage.
 Sports.
a) The first point scored tennis after deuce.
b) The resulting score.
  Economic advertising.
It can play an important role in the process by which an
economic system guided by moral norms and responsive to the
common good contributes to human development.
 Cultural advertising.
This they do by supporting material of excellent
intellectual, aesthetic and moral quality presented with the
public interest in view, and particularly by encouraging and
making possible media presentation which are oriented to
minorities whose needs might otherwise go unserved.
 Moral and religious advertising.
In many cases two benevolent social institutions, including
those of a religious nature, use advertising to communicate
their messages – massages of faith, of patriotism, of tolerance,
compassion and neighbor service of charity toward the needy,
massages concerning health and education, constructive and
helpful to people.

Disadvantages of Advertising

Be really any disadvantages of advertising? Maybe yes, if used in a

negative manner. After all, advertising is all about influencing
people and can have a mighty sway over them. Companies and
businesses understand this ability to influence public opinion and
values through advertising and media. Being focused on maximizing
sales and earnings, companies view citizens primarily as consumers
of goods and services. Advertising is used to create a perceived need
and prompt a purchase. This is frequently done by taking advantage
of human needs for self esteem, love and connection to others.
Advertisements often use strong emotional appeals to imply
purchasing a product will meet these non-material needs.
Another possible disadvantage to the mind of a consumer is the
conflicting messages he receives from competitive brands as they
vie to occupy and own his mind space. It can sort of reduce clarity
of thought, and create confusion.
There is a limit to which the human mind can process information;
beyond it, the mind starts ignoring stimuli. That limit is easy
reached when the
Competition for consumer eyes and ears is strong.

CONCLUSION

Advertising play major role in Indian market and also Indian

economy In India the people understanding about the products
quality and quantity, through advertisement. The advertisement uses
for selling products in market. And also it uses for organization and
human development.
 BIBLOGRAPHIC

Authors name: S N MURTHY.

U BHOJANNA
Book name: ADVERTISING AN IMC
PERSPECTIVE
Published by: ANURAG JAIN FOR EXCEL
BOOKS
NEW DELHI.
&
INTERNET