Advertising Management An Introduction

Dr. Tejinderpal SinghAssistant Professor

University Business SchoolPanjab University Chandigarh

tejinderubs@gmail.com

Objectives of Today’s Lecture • Recapturing the meaning of ‘Marketing’• Recapturing the meaning of ‘ Marketing Mix’• Understanding the Meaning and importance

of Advertising• Brief look at History of Adverting in India• Understanding the Domain of Integrated

Marketing Communication • Overview of Advertising industry in India• Latest Trends in Advertising

Definition of Marketing (AMA)

• Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers1935

• Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives1985

• Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

2004• Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large2007

Marketing Mix

4Ps +3PsProduct

Price

Place

Promotion

People

Procedure

Physical Evidence

Promotion

Refers to all activities concerned with informing target consumers about an organsaton’s offering, persuading them to buy it and reminding them about it from time to time.

‘Marketing Communication’

Why Marketing Communication ?

Objectives

Persuasive

Reminder

?

Informative

Tools of Marketing Communication

Kevin Lane Keller-2001

Cinema advertising: Rising from the ashes• Over the past three years, ad revenues

have doubled for almost every major theatre chain in India, hitting a total of roughly Rs 250 crore in 2010-11.

• This is over a fifth of what advertisers spent on radio and a third of their online ad spends in the same period.

• At a 35-40 per cent rise year-on-year, cinema advertising is growing faster than online, radio or overall advertising growth, where the annual growth is about 11 per cent.

• National brands are now spending up to one per cent of their advertising budgets on multiplexes and single-screen digital theatres

http://www.business-standard.com/india/news/cinema-advertising-rising-fromashes/463300/

Types

TTL

Below the Line

Economic Times June27,2012

http://articles.economictimes.indiatimes.com/2012-06-27/news/32441480_1_btl-advertising-media

“60% of the company's marketing budget is going towards BTL activities, against 35-40% three years ago. With increasing choices, the consumer has become more discerning,"

LK Gupta, vice president-marketing LG.‘Today, consumers have started saying, 'show me something real’

Homi Battiwalla, category director, PepsiCo India“in the next five years, the split between BTL and ATL (above-the-line, or advertising) spends will be equal’

Atul S Nath,Managing director, Candid Marketing"The customer comes armed with his own research. So, conversion with demo and explanation has become an area of great focus."

LK Gupta, vice president-marketing LG)"With rural consumers increasingly moving towards branded products, just leveraging mainstream media is not enough to connect with them,"

George Angelo, Executive director-sales, Dabur.

WILL COME BACK TO

INTEGRATED MARKETING COMMUNICATION

History of Advertising in India18th centaury classified advertisng 1780 ‘Bengal Gazette’ first timeList of medicine imported1905 B.Dattaram &co1900’s Saw setting of agencies but nor full fledge ad agencies1934 Sista Advertising and Publicity services 1940 Lux and Horlicks was Indianised 1954 Advertising club Mumbai1963- ITC ‘ Made for each other’1964 Lifebuoy : Tandurusti ki raksha1967 Amul hoarding campaign

1967- Amul

Polka-dot skirted moppet-1967

Guinness Book of World Records longest running outdoor campaign

More about moppet at http://toi.amul.com/story.html

1967

First commercial Appeared on Vividh Bharti

1970s

Media boom National Readership

Studies provided relevant data on consumers' reading habits

Special magazines 2nd Asian Advertising

Congress at New Delhi Lifestyle studies,

Positioning Rural marketing

First TVC in 1978

1980s

• Asian Games 1982• Doordarsan - Color

transmission• First colour

advertisement was form Bombay Dyeing

• 1983 celebrity endorsement –Kapil Dev

‘Palmolve the jawab Nahin’

Let us look at few old TV commercials

Few more nostalgic ads• Surf• Lifebuoy• Pan Parag• Action

1990’s• Media Explosion: Cable Tv, • Financial sector reforms• MNCs• Internet

2000 onwards • Internet explosion• Mobile Phones • DTH -2004• IPTV• Social Networking Sties

The number of TV homes in India grew from 120 million in 2007 to 148 million in 2011. Cable reaches 94 million homes with 88 million analog connections and 6 million digital ones, while DTH has commanded 41 million subscribers.[3]

Top Ad Agencies in IndiaOgilvy & Mather J Walter Thompson (JWT)Mudra CommunicationFCB Ulka Advertising LtdRediffusion DY & RRK Swamy BBDO Advertising LtdGrey Worldwide (I) Pvt. LtdLeo Burnett India Pvt. LtdContract Advertising India Ltd

Integrated Marketing Communication • IMC is a communication process that entails the planning,

creation, integration and implementation of diverse form of marcom (Advertising, sales promotion, publicity releases, events etc.) that are delivered over time to a brand’s targeted customers and prospects. The goal of IMC is ultimately to influence or directly affect the behaviour of the target audience. IMC consider all touch points or sources of contact, that a customer/prospect has with the brand as potential delivery channels for messages and make use of all communications methods that are relevant to customers /prospects. IMC requires that all of brands communication media deliver a consistent message. The IMC process further necessitates that the customer is the starting point for determining the types of messages and media that will serve best to inform, persuade and induce action.