Advertising: The Greatest Aid For

Trade
 

BY ARYAMAN MINOCHA AND NIHAL SINGH LUTHRA

 
 
 
 
 
 
 
 

 
 

TABLE OF CONTENTS 
 
1. Introduction to Advertising
2. History of Advertising
3. History of Advertisement in India
4. Advertising Agencies Association of India (AAAI)
5. Features of Advertising
6. Functions of Advertisements
7. Objectives and Importance of Advertising
8. Impact of Advertising
9. Mediums of Advertising
10. Types of Advertisements
11. The 5 M's of Advertising
12. Prominent Advertising Firms of India
13. Books and Movies based around Advertising
14. Citations
 

 
 
 
 
 
 
 

 
2 
 

1. Introduction to Advertising 
 
We see advertisements everywhere we go, no matter which corner of the world you are in you
are bound to see an advertisement, advertising is so well established now that is tends to get
overlooked; now what exactly is Advertising? Well, Advertising is a form of communication
used to promote ideas and influence consumers to purchase products or services. Now Usually,
the main objective of an advertisement is to convey a message to its audience, commonly known
as the consumer, this includes, the name of the product or service and a description about how it
would be of benefit to the consumer, with the objective to convince consumers to choose their
product over their competition. Advertisements are often directed towards a specific audience,
commonly known as their target audience who are most likely to purchase the goods or services
being advertised. Advertisers often seek to increase the sales of their products or services through
branding. Many a times you will see advertisements campaigns all around you, which involve the
repetition of an image, slogan or product/service name in an effort to associate qualities of the
brand with the what is being advertised in the minds of the consumers. Further, we explore more
about advertising and how it is the greatest ‘aid for trade’.
 
 
 

 
3 
 

 
2. History of Advertising 

Advertising has been around ever since the 15th century and it is forever evolving to the taste of
its consumers, the reason why advertising has such a rich history and quite possibly an even
richer future is because as long as their are products and consumers, their will be advertising.

1. 15th and 16th century: During the 15th and 16th century there was an influx of print
development, which practically advertising. The ability to print large amounts and that
too at a fast rate, gave business owners in the first opportunity to produce advertisements.
Allowed advertising expanded to include handbills.

2. 17th century: As the times changed so did methods of advertising. In order to stay
informed, the sale of newspapers began and newspapers spread like wildfire, advertisers
being the opportunists that they are, began advertising in weekly newspapers in England,
however the products being advertised were mainly books and medicines etc.

3. 19th century: As the economy began to expand at an alarming rate, advertising grew as
well. Businesses, whether big or small decided that they were better leaving there
advertising needs to ‘professionals’, which is when the development of advertising
agencies began.
a. In 1841, the world saw the first advertising agency which was established by a
gentleman named Volney Palmer in the city of Boston, Massachusetts.
b. After the grand success of Volney Palmer. America saw yet another advertising
agency in 1875. N. W. Ayer & Son was the first full-service agency the world had
ever seen, located in Philadelphia, USA.

 
4 
 

4. 21st century: Ever since the takeover of technology and smartphones, advertising made a
shift as well, the world of social media is covered with modern-day advertising. Anyone
with a big enough fan following can become an influencer for a brand.

 
5 
 

 
6 
 

3. History of Advertising in India: 

 
1. In 1931 we saw the rise of the National Advertising Service in Bombay, it was the first of
its kind and revolutionary for Indian advertising, it practically changed the way
advertising was done in India.

2. In 1936 the Indian Broadcasting Company became what is now known as the All India
Radio (AIR), this meant a wider array of listeners which also meant a new platform for
advertising.

3. For starters, television is not as popular as it is today. Not everyone had the privilege to
have a television set at there house, but as the popularity of television grew, the
advertising industry also started to advertise on television with the first television
commercial seen in 1978.

4. Alongside the hype of television, we saw the rise of computers and something known as
the internet, a global system which we all spend way too much time on, and in 1990 we
marked the beginning of the new medium of Internet advertising.

5. Although, the popularity of television was rising the scope for tv channels and
broadcasting was very limited, but in 1991 the first India-targeted satellite channel, which
we all know as Zee TV was introduced.

6. In 1993, the popularity of advertising as a profession grew to such an extent that an

Indian advertising school also known as MICA, Mudra Institute of Communications
Ahmedabad, was introduced.

 
7 
 

 
8   
 

4. Advertising Agencies Association of India  

Advertising Agencies Association of India (AAAI) was

formed in 1945, it is the official, national organisation of
advertising agencies. The Association was founded with
the interest upholding healthy business relationships
between advertisers and advertising agencies and the
media as well. AAAI today represents numerous agencies
of all sizes, be it a small agency doing classified
advertising for a tution service or a huge group doing
large scale consumer advertisements for Pepsi Co. Its
members account for almost 80% of the advertising
business placed in the country. Hence it is recognised as
the spokesperson for the Advertising industry, for all parties concerned such as advertisers and
media owners and their associations and the Indian Government.

 
9 
 

5. Features of Advertising: 
1. Advertising provides customers information:​ Probably one of the only basic purposes of
advertising is to provide customers with information about the product so they know what
they are buying. This includes information like the quality, price, features etc, which a
consumer would like to know before making a purchase.

2. Advertising is a paid form of communication:​ The reason why advertising is so lucrative

is because it is a paid form of communication, which means that the company selling a
product or service gets the word out its product or service and what it has to offer, but for
a price.

3. Advertising is a non-personal presentation:​ What this means is advertising does not

require a face-to-face interaction or any personalization. Advertising is normally targeted
to large numbers instead of one individual.

4. Advertising is an art, science and profession:​ There are many reasons for it to be
classified into the following fields, for example advertising can be classified as an art
because of its need for creativity, a science because of its principles, rules, etc. As of
today, advertising is seen as a profession along with its professional bodies and code of
conduct.

5. Creativity-the essence of Advertising:​ Advertising requires a lot of creativity, without

unique ideas and originality advertisements would not appeal to an audience with is why
creativity is essential for advertising.

6. Advertising is for persuasion:​ The whole objective of advertising is to sell, without being
able to convince consumers to buy a product advertising will work; which is why
persuasion is essential for advertising.

 
10 
 

7. Advertising is target oriented:​ Think of this way in order to be a good advertiser or create
good advertisements, you have to be target oriented, which means knowing who you have
to advertise to also known as the target audience or prioritising what one has to do.

8. Advertising is an important element in the marketing mix:​ Advertising supports the sale
of products, without advertising a product a customer probably won't buy it, which is why
advertising is an important element in the marketing mix.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
11 
 

6. Functions of Advertising: 
1. Promotion of sales:​ The first, and probably most important function of advertising is to
promote the sale of a product being advertised, which means trying to sell more than what
is already being sold.

2. Introduction of new products:​ Advertising also plays a big part in the introduction of a
new product, a successful advertising campaign can do marvels for a new product.

3. Support to production system:​ Advertising also assists large-scale production. Businesses

knows that it will be able to sell a large scale with the help of advertising, and the reason
why businesses choose to produce on a larger scale is because it saves them money in the
long run.

4. Increasing standard of living:​ Advertising shows people the better life, it shows them new
products or even products that can make their lives easier. It can also advertise services
that can increase the standard of living.

5. Public image:​ Advertisements control what imagine the is associated with what is being
advertised, even politicians higher people from advertising agencies to
maintain/change/better there public image.

6. Support to media:​ No matter what media, be it newspapers, television or even the internet
advertisements are a prime source of review to media, so much so that some people even
make a living off of selling advertisement space or monetizing YouTube videos posted by
them online.

 
 
 

 
12 
 

7. Objectives and Importance of Advertising: 

Let us start by seeing what the General Objectives are of advertising:

1. Persuade:​ Persuasion plays a big part in advertising it what builds demand for a product
or the brand. For example, television advertisements for Toilet soaps, toothpastes feature
a large amount of persuasion.
2. Remind:​ Once a company has established a products image etc it reminds the consumers
After establishing the product, think of brands that come to your mind when you think of
the word ‘iconic’ like Coca Cola or even Parle-G etc.

Apart from having general objectives advertisements may also have what is known as Specific
Objectives:

1. Induce Trial:​ Induce trial appeals to the fact that it doesn't hurt to try the product, this is a
very popular strategy used by detergent companies, for example, Ariel, Surf, Ghari and
the iconic motto “Pehle Istemal Kare Phir Vishwas Kare”.

2. Intensify Usage:​ This means appealing to a customer base that an established brand does
not already have, for example Cadbury and its advertisement campaign to appeal to all
age groups, especially older people.

3. Sustain Preference:​ In simple terms this would mean proving a product is superior than
any of its counterparts in order to always be the first choice or the preference like with
Coca-Cola and Pepsi.

4. Confirm Image:​ Having a clear image of what the company image is essential, Coca-Cola
is yet another prime example of this strategy, you know exactly what Coca-Cola is
because it has a confirmed image in the heads of consumers.

 
13 
 

5. Change Habits:​ Changing ones habits could differ from product to product but what this
does is encourages you to change, change your buying pattern this technique is mainly
implemented by cosmetic brands for example lush or dove soap or even beauty creams.

6. Build Line of Acceptance:​ Build Line of acceptance essentially means displaying the
entire range of its products that one is selling, this allows a customer to find exactly what
they need for example, Bata, one knows what products it holds like formal shoes, sports,
slippers, chappals, gum boots, etc, in other words, footwear. Even Ikea has catalogues for
this very purpose.
 
 
 
 
 
 
 
   

 
14 
 

8. Impact of Advertising: 
1. Introduces a New Product:​ Advertising has the ability to introduce products into the
market and give it a place and a brand of its own, something completely unique which
hasn't done before.

2. Creates Demand for Product:​ Have you ever purchased something without even having
the need for it and then later regret purchasing it, well Advertising has the ability to make
you want to buy a product even if you don't want to, it can create demand.

3. Expand Market:​ Advertising can create hype, and make a mere local brand into a
multi-million dollar company within the blink of an eye, this is very common in the
fashion industry. Take the street fashion brand ‘Supreme’ from example, it went from a
small brand to being at the top of the fashion game within a matter of months.

4. Assists Personal Selling:​ An advertisement has more reach than any salesman ever could,
which means it can also make a salesman's job much easier, convincing a person into
buying a product without even having to meet them in person.

5. Building Brand Image:​ Advertising has the impact to make or break a brand it can take
the cheapest of things and make it look like luxurious items, take shoes by Adidas for
example, they are all made from the same material but with things like celebrity
endorsements and partnerships it can multiply the value of any shoe.

6. Reduces the cost of goods:​ Advertising can convince more people to buy a product it
allows a company to reinvest in their product and reduce the cost of the good, so in the
end the consumer reaps the benefits of a product.

7. Persuades prospects:​ Advertising convinces a prospective buyer to purchase a product by

appealing to what their interests wants etc, for example sometimes I find myself making a

 
15 
 

purchase for something I don't even want but because I was told to buy it by an
advertisement.

8. Employment:​ Advertising is creating a variety of jobs in its field, in everything from

coming up with an idea to execution requires manpower jobs like copywriters, models,
etc are always being needed in advertising, It provides indirect employment due to its
large scale and constant need.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
16 
 

9. Mediums of Advertisements: 
1. Newspapers:​ One of the oldest medium of advertising, Newspapers are traditional
mediums used by businesses, irrespective of how big or small a business is, the
newspaper offers different sections of newspapers to place ads for different prices so it is
affordable for everyone. Newspapers are also very popular, almost every household is
subscribed to a newspaper which means ones advertisement can reach a wide audience.

2. Magazines:​ Magazines are a more pricey and luxurious alternative to newspaper

advertising. This medium allows you to reach a slightly more limited yet exclusive
audience. A person subscribes to a magazine directed to their interests, Magazines have a
relationship with its readers which is different compared to a newspaper. Which is more
generic and for everyone. The advertisements in magazines work its way into a part of the
magazine instead of how advertisements are in newspapers.

3. Direct Mail:​ Direct mail is no longer a very popular form of advertising but was very
prominent during a period of time. This marketing technique is predominantly used by
businesses in close proximity to its consumers, in this market technique a business sends
messages directly to the buyer. Direct mail advertising may include a variety of different
things, perhaps the menu of a neighbouring restaurant or catalogs, brochures etc.

4. Television:​ Television advertising has always been strong because of televisions

addictive nature, having the ability to hold a viewer's attention is perfect for advertisers,
and a video format is much easier to digest as compared to reading an advertisement in a
newspaper, there are also lots of channels to advertise in, the only downside being a drop
in the use of television users.

5. Radio:​ A radio is in everyones car, and even in a few peoples houses. Often in long car
rides you find yourself bored and turn the radio and listen to music on the station and if a

 
17 
 

station is not playing music it is playing advertisements. Radio advertisements are an easy
way to reach an audience easily and efficiently.

6. Telemarketing:​ It may not seem like it but there is quite an audience for it, shows like
naaptol sell products through the television by being able to call in and make purchases.
This is an efficient way as it allows one to explain a product in detail without actually
doing so in person.

7. Outdoor:​ Outdoor advertising comes with a large array of perks. Outdoor advertising is
everywhere weather people like it or not. Examples of outdoor examples include
Billboards you see on buildings, advertisements on bus etc.
 
 

 
 
 
 
 
 
 
 
 
 
 
 

 
18 
 

10. Types of Advertisements: 

 
1. Classified Advertising:​ Classified advertising is the type of advertising which provides
the consumer with straight facts and information, expressed in a very dry manner. The
approach here is usually more direct and information oriented. The goal is to just convey
the fact that this product or service is available to the consumer. Usually there is very
minimal creativity present in these types of advertisements.

2. Consumer Advertising: ​Consumer advertising is the type of advertising that is commonly

seen by readers, listeners and viewers most of the time. This type tends to promote
attitudes and lifestyles which show the benefit of using or consuming a certain product or
service.They use real human situations while playing with emotions and stereotypes.
Their goal is to persuade the consumer either directly or indirectly. These advertisements
usually cost more money to carry out as compared to classified advertising.

3. Retail Advertising:​ Retail advertising refers to selling of a product directly to the

customer, this method allows personalised service to the customer, retail advertising
accounts for half of the money spent on advertising because is direct to the customer.
Many aspects come into play with retail advertising such as the age of Store, store
location, the types of goods being sold, the level of competition, market area size ,
supplier support etc.

4. Viral Marketing:​ Viral marketing has gained popularity rapidly, ironically that's exactly
what viral marketing is. Making something go viral. This technique is also known as
“word-of-mouth marketing”. It is a technique used to create hype, although this technique
is hard to pull off, but if it is pulled correctly it can do marvels for the product, and it is
far simpler thanks to the help of technology. Viral advertising is also cheap and
affordable.

 
19 
 

5. Web Advertising​: Web advertising is when a business promotes their website, or a

specific page on their website using online advertising tools, methods and techniques that
usually get the amount of views needed by the business. The advertisement should give a
concise and accurate idea of what the audience can expect to find once they click it.

 
20 
 

11. The 5 M's of Advertising: 

While making an Advertising program these five Ms should be taken into consideration:
M​ISSION:​ What are the advertising objectives?
M​ONEY:​ What is the budget allotted for this advertisement?
M​ESSAGE:​ What message should be sent?
M​EDIA:​ What mediums of media should be used?
M​EASUREMENT:​ How should the results be evaluated?
 
 
 

 
 

 
21 
 

12. Prominent Advertisement Companies of India: 

DDB Mudra Communications: 

It is one of India’s largest and
most well known marketing
and communications services
establishments. It’s expertise
lies in Media, Outdoor
Advertising, Experiential and Retail Advertising. It has won a Silver award in the category of
'Young Green Art Director of the Year' at the Olive Crown Awards. It was founded by A. G.
Krishnamurthi on 25 March 1980. Its headquarters are located in Mumbai. They celebrate Mudra
day in all of their offices on 25 march itself. In 1990, Mudra group collaborated with DDB
Needham Worldwide. Mudra group was recently acquired by Omnicom Group and it was
renamed as DDB Mudra group after being merged with DDB worldwide in 2011. The current
chief creative officer and chairman of DDB Mudra Group is Sonal Dabral. Some prominent
clients include, Colgate, USHA, McDonalds, Reebok, Linen Club, Aditya Birla Group, Bharat
Petroleum, Henkel, ACC Limited, Pepsi, Puma, Peter England, among many others.

Grey India:
A part of Grey global group, Grey
India is one of the world’s leading
advertising and marketing agencies.
They have worked on projects with
some of India’s most prestigious clients. It was founded by Lawrence Valenstein in 1917 and has
its headquarters in the U.S. Its Indian office is currently in Mumbai which handles projects in
visual design, retailing and fixture design. Significant clients include Cadbury Silk, Sensodyne,
Tic-Tac, Ferrero, Fortis Healthcare, Gillette, Dell, Crocin, BNatural, Indian Air Force, Pantene,
Kinder Joy and many more.

 
22 
 

13. Books and Movies based around Advertisement: 

1. Ogilvy On Advertising 
David Ogilvy (1911–1999) was a business executive who
founded the advertising, marketing, and PR agency Ogilvy
& Mather in 1948. Told with brutal honesty and excessive
generosity, David Ogilvy reveals several aspects on what
advertising entails, such as how to get a job in advertising,
how to choose an agency for your product, the secrets
behind advertising that works​, h​ ow to write successful
advertisement and get people to read it, eighteen miracles of
research, what advertising can do for charities and much
more. I would highly recommend reading if interested in
advertising, 
 
2. Art & Copy 
Art & Copy is a powerful documentary directed by
Doug Pray in 2009, about the advertising industry and
the ups and downs faced by pioneers of the industry
in the US. The film looks upon the careers of some
very influential advertisers who either were involved
in starting their advertising companies or growing
them to great heights , including Hal Riney, George
Lois, Mary Wells Lawrence, Dan Wieden, and Lee
Clow.
 

 
23 
 

Works Cited

“Report-on-Advertising.pdf.” ​Scribd,​ Scribd,

www.scribd.com/document/426399897/25086873-Project-Report-on-Advertising-pdf.

“Advertising Definition - What Is Advertising.” ​Shopify​,

www.shopify.in/encyclopedia/advertising.

“Art & Copy.” ​IMDb​, IMDb.com, 21 Aug. 2009, www.imdb.com/title/tt1333631/.

Bruell, Alexandra. “Targeted TV Advertising Is Taking Off.” ​The Wall Street Journal,​ Dow

Jones & Company, 16 June 2019,

www.wsj.com/articles/targeted-tv-advertising-is-taking-off-11560707549.

“Different Types of Advertising.” ​Scribd​, Scribd,

www.scribd.com/doc/22601183/Different-Types-of-Advertising.

Employment, Small Business and Training. “Types of Advertising.” ​Business Queensland,​

CorporateName=The State of Queensland; 2 Jan. 2019,

www.business.qld.gov.au/running-business/marketing-sales/marketing-promotion/advertisi

ng/types.

“The Role of Advertising (1).” ​Scribd​, Scribd,

www.scribd.com/doc/78992778/Finale-Project-on-Role-of-Advertising-1.

Kosenkova, Lineisy, et al. “The History and Evolution of Advertising.” ​TINT Blog,​ 5 Oct. 2018,

www.tintup.com/blog/history-evolution-advertising-marketing/.

LaMarco, Nicky. “10 Kinds of Advertising.” ​Bizfluent,​ 11 Feb. 2019,

bizfluent.com/info-7736409-10-kinds-advertising.html.

“Make Free Infographics, Reports & Charts Online.” ​Visme,​

 
24 
 

www.visme.co/make-infographics/.

Ogilvy, David. “Ogilvy on Advertising by David Ogilvy: 9780394729039:

PenguinRandomHouse.com: Books.” ​PenguinRandomhouse.com,​ Knopf,

www.penguinrandomhouse.com/books/124131/ogilvy-on-advertising-by-david-ogilvy/.

Suggett, Paul. “8 Major Media Tactics Used In Modern Advertising.” ​The Balance Small

Business,​ The Balance Small Business, 20 Jan. 2019,

www.thebalancesmb.com/different-types-of-advertising-methods-38548.

“Trends in Advertising Research: A Look at the Content of Marketing-Oriented Journals from

1976 to 1985.” ​Taylor & Francis,​

www.tandfonline.com/doi/abs/10.1080/00913367.1988.10673099.

“What Is Advertising? Definition of Advertising, Advertising Meaning.” ​The Economic Times,​

economictimes.indiatimes.com/definition/advertising.

Zinkhan, George M. “From the Editor: Creativity in Advertising.” ​Journal of Advertising,​ 1 June

1993, www.jstor.org/stable/4188874?seq=1.

 
25