Advertising

Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

Advertising involves the process where in a massage is designed so as to promote a product, a thought, an idea or even a service. The concept of advertising has assumed a dynamic form with the use of the various mediums of communication. From the newspaper, magazines, posters, neon and fluorescent signboards, billboards to the commercial on TV, laser shows to inflated high-rise figures and objects, advertising has come a long way. The work is formidable as it spearheads a process intended to attract, modify, change and influences public opinion.

From the local business to multinational firm and all need to advertise. While politicians, social organizations, government special groups need to advertise their motto, national airlines, auto mobile manufactures, food and consumer goods manufacturers have to reach the consumer. Specialist products and services are often advertised through trade magazines and exhibitions. Lately mail-shots, handbill circulation, special offers have become very popular. There are still other ways of advertising. There are window displays, display on telephone directories, transit sign on buses, lamp posters, banners, etc. Advertising through the electronic media has been perhaps the most popular medium.

Advertising, as an effective medium, uses a variety of techniques to create effective advertisements. A basic appeal is at the heart of advertising. Slogans and product characters are created to catch the attention of the viewers. Most winning advertisements would encompass factual information with emotional appeal. The advertising industry has three major sectors.

• Business or organization which wishes to advertise, • Media which provides the medium for advertising and • Ad-agency which creates the ad to suit the need of the firm.

Ad agencies vary in the size and turnover. Nevertheless the process of creating an ad remains

the same. The annual expenditure on the advertising has been to the tune of Rs 8000 crores and the figure could be higher. USA has projected media spending on advertising on the net to approximately $7700 by the turn of the century. The scope for advertising professionals certainly shows an upward trend.

Work Environment

Ad agencies are based within office settings. Accounts Executives, Account Planers, Media Executives, Art Directors and Copywriters spend most of their working time in agency office. Account

Executives have to travel extensively, visiting clients and suppliers. While other staff, travel occasionally to attend meetings with clients, or visit locations during film production. Ad agencies are very busy places and often work is on till late hours. In 2004, workers in the industry averaged 33.8 hours per week, a little higher than the national average of 33.7.

Most employees in advertising and public relations services work in comfortable offices operating in a teamwork environment; however, long hours, including evenings and weekends, are common. There are fewer opportunities for part-time work than in many other industries; in 2004, 14 percent of advertising and public relations employees worked part time, compared with 16 percent of all workers.

Work in advertising and public relations is fast-paced and exciting, but it also can be stressful. Being creative on a tight schedule can be emotionally draining. Some workers, such as lobbyists, consultants, and public relations writers, frequently must meet deadlines and consequently may work long hours at times. Workers, whose services are billed hourly, such as advertising consultants and public relations specialists, are often under pressure to manage their time carefully. In addition, frequent meetings with clients and media representatives may involve substantial travel.

Most firms encourage employees to attend employer-paid time-management classes, which help reduce the stress sometimes associated with working under strict time constraints. Also, with today’s hectic lifestyle, many firms in this industry offer or provide health facilities or clubs to help employees maintain good health.

Personal characteristics

People in the accounts or client servicing i.e., the Account Executives, Director and planer need to be adept at negotiating. The ability to communicate easily is vital. They face the challenge of competing in the market with other agencies; hence need to have drive determination and tremendous physical and mental stamina. Sensitivity to consumer behavior, trends and human nature are important for success in advertising. They should be able to assimilate the client’s requirements and in a lucid style prepare briefs for other departments. The ability to get the work executed by all departments is specially required.

The creative people need a good visual ability, language\artistic skill. Copywriter requires literary ability but an interest in commercial success which comes from understanding what motives the target audience is important. Writers must be able to work, to a strict brief, within restricted space and in limited time. Advertising must follow legal requirements and rules hence considerable creative self-discipline is needed. A feeling for words, economy of style and imagination is needed.

The copywriter works with the art director, and the creative director. The work can be very frustrating particularly when an idea is rejected by the art director and amendments made by the creative director and the client. This can often restrict the imaginative capacity of the copywriter. The openness to stand criticism is absolutely essential.

Media Executives, Planners and Executive directors with others in an integrated team. They should be able to interplant a great deal of information. Media buyers spend most of their time negotiating over the telephone to buy space or time. Attention to detail is needed for keeping to the budget allocated.

Advertising Agency

Getting the best out of advertising is a highly skilled job. It requires the inputs of experts in many different fields like writers, artists, photographers, designers, television production crews and many others. Even the biggest advertisers cannot afford to employ all these experts. Almost all advertising is therefore arranged through an advertising agency which provides the necessary skill to turn the message into a memorable and effective advertisement. Advertising has not only come to reflect pop culture but has also become an important element of economic growth. Today, every person connected with the Indian economy or public should be fully aware what advertising really is and why effective advertising campaigns can be performed by full-service advertising agencies.

Advertising agency is one of the most important components of advertising industry. It has played a significant role in the development of modern advertising. The advertising agency has evolved to provide the specialized knowledge, skills and experience needed to produce effective advertising campaigns. It provides a quality range of service greater than any single advertiser could afford or would need to employ. An advertising agency is a firm that specializes in the creation, design and placement of advertisements, and in the planning and execution of promotional campaigns for products and services of their clients.

The Association of Advertising Agencies of America (AAAA) defines advertising agency as “An independent business organization composed of creative and business people who develop, prepare and place advertising media for sellers seeking to find customers for their goods and services.”

The glamour, the unlimited expense accounts, and the exhilarating lifestyle - all these popular portraits of life in the big-time advertising agency are misleading. Advertising is demanding, challenging, hard work. It is also interesting and fulfilling. Advertising requires a mix of personal abilities, considerable business skills, and an ability to work under pressure to meet deadlines. Compared to larger industries, there are never many entry-level positions open in advertising agencies (dozens rather than hundreds). And competition is stiff. The industry, however, is constantly on the look out for skilled, bright, articulate, creative and personable men and women with a well-rounded education and a good business sense.

An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for their 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. Typical ad agency clients include businesses and corporations, non-profit

organizations and government agencies. Agencies may be hired to produce single ads or, more commonly, ongoing series of related ads, called an advertising campaign.

History of ad agency

1. Period of early growth 1841 - 1865.

The first advertising agency on record in the US was Olney B. Palmer. In 1841, Palmer organized a newspaper advertising and subscription agency. By 1849 he had established offices in the cities of New York, Boston, Baltimore and Philadelphia.

At this early fate, there were no directions of newspapers and no published rates for space to be sold to advertisers. Palmer acted as an informatory agent in these matters to prospective advertisers. In essence, he served as a salesman of space for publishers and they in turn, gave him a commission of 25% of such sales. The publishers found these methods of selling more effective than trying to sell direct and advertisers, wishing to reach more than one territory found value in such service.

Completion increased, and the usual price cutting occurred. Success seemed to depend upon one’s ability to bargain with the publisher and advertiser. The natural result of this policy was a general reduction in profits to the agency; this led to a search for new competitive tools which would return a profit.

2. Wholesaling Period 1865 – 1880

George P. Rowell, who opened an agency in 1865, supplied the new competitive tool. Rowell contracted with 100 newspapers to sell him a column of space each week for a year. Throughout the wholesaling period, the agent continued as a seller of space for publishers.

This took on different forms, one of which was the exclusive right to sell space in certain publishers. Thus, one agency developed a controlled list of religious papers, another a “List of Thirsty” household magazines. Any advertiser wishing to buy space in the controlled publications was forced to buy through the exclusive wholesaler for that paper.

3. Semi Service Period 1880 – 1917

The wholesaling phase of agency work was checked when publishers began to establish their own sales departments for selling space. Some of these departments sold direct to the advertiser, others to the general advertising agency. Thus, the agency was forced to turn its attention somewhat

away from the particular function of selling space for publisher and toward the function of buying space for the advertiser.

Early in the semi service period agencies offered to write the copy for the advertiser, thus giving added weight to their claim of being servants of the advertiser. This concept of service was slow to develop; but in the early part of the 20th century, agencies began to emphasize strongly this “free” service. One agency in 1905 advertised that it paid $28,000 a year for a copywriter. These methods increased the agency business and forced most space sales to be made through them.

4. Service Period 1917 – Present

By 1917 the idea of service had grown until not only was copywriting done for the advertiser but many other things as well. During the service period, many agencies have grown to the position of advertising and marketing counselors for advertiser.

The service elements has modified the position of agencies to such a degree that radio and television, network and magazine publishers have come to depend upon them as the primary channel through which time and space are sold. Publishers claim to have had an important part in encouragements of agencies to provide extra service to the advertiser. By providing advertisers with the kind of assistance that will improve the effectiveness of advertising, more time and space naturally will be sold.

Advertising Process When preparing your search proposal, you should take into account that the “lead-in” time

needed to place an ad can vary anywhere from days to months depending on the publication. You should plan to have your ad approved and an estimate of the cost done at least one month prior to the date when you want the ad to be published. The advertising process for professional staff and faculty positions involves five basic steps:

1. Writing an Ad 2. Getting Approval for the Text of the Ad 3. Estimating the Cost of the Ad 4. Placing Ads & Posting Announcements 5. Paying for Ads

Typical work flow in agency STAGE WORK PERFORMED AT STAGE

Briefing Stage • Briefing from the client • Internal briefing to the creative and media • Any research briefing if required

Creation Stage • Ad campaign and media plan development • Internal review and finalization

• Presentation to client and approvals • Any pre-testing if required

Production Stage • Budget and estimate approvals • Production of film, press ads, collaterals • Media Scheduling and media booking • All release approvals for creative & media

Post Production Stage • Material dispatch to media • Media release monitoring • Any post-testing if required • Billing and collection

Types of advertising agencies

Ad agencies come in all sizes, from small one- or two-person shops to large multi-national, multi-agency conglomerates such as Omnicom Group, WPP Group, Interpublic Group of Companies and Havas.

Some agencies specialize in particular types of advertising, such as print ads or television commercials. Other agencies, especially larger ones, produce work for many types of media. Lately, Search Engine Marketing (SEM) and Search Engine Optimization (SEO) firms have been classified by some as 'agencies' due to the fact that they are creating media and implementing media purchases of text based (or image based in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term 'agency' however with the creation of ads (either text or image) and media purchases they do qualify technically as an 'advertising agency' as well as recent studies suggest that both SEO and SEM are set to outpace magazine spending in the next 3-5 years.

Not all advertising is created by agencies. Companies that create and plan their own advertising are said to do their work in house. Today selection of ad-agency is very difficult. The advertiser should make list of all possible agencies that can serve his purpose and the agency best qualified to provide required and effective services are selected. Some advertiser may select more than one advertising agency to handle effectively the various product lines.

Following are major types of advertising agencies that are currently serving the advertising industry.

Full Service Agencies A full service ad agency is one that provides a range of marketing services. A full services agency provides services that are directly related to advertising such as copywriting, artwork, production of ads, media planning etc. It also provides such services in respect of pricing, distribution, packaging, product design etc.

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

Those companies, which prefer to have closer control over advertising, have their own in-house agency. This type is owned completely by the advertiser. It performs almost all functions that an outside advertising agency would perform and that’s why some people refer to it as full-service advertising department of the advertiser. However, the difference between an in-house agency and an advertising department is that the in-house agency can undertake to serve several other clients, if the owner so desires, but an advertising department solely undertakes that work of its owner and not of outside clients. Secondly an advertising department may not be equipped the personnel and facilities, which an in-house agency would posses. In-house agency not only provides control over advertising schedule and costs, but also offers convenience for its owner, because it is just available in the same building as that of the head office of advertiser.

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 ads. Such an In-house agency is an administrative center (under the direction of an advertising director) that gathers and directs varying outside for its operation.

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. The Specialists Agency There are some agencies who undertake advertising work only in certain areas. there are agencies that specialize only in financial services or only in publicity or only in point-of-purchase

material etc. for instance Soubhagya advertising agency concentrate on specialized in financial advertising.

The functions of an advertising agency:

• To accelerate economic growth and create public awareness • To provide a total, professional, experienced service which is very personal in its nature • To take the advertiser's message and convert it into an effective and memorable

communication

The Benefits of Using an Advertising Agency

• Added Expertise • Media Knowledge and Unbiased Advice • Easier Administration • Media Buying • Quality Control • Information • Fending off the media • And when things go wrong • Cost Saving • Time Saving

Services offered by ad agency

Total Advertising Services Strategic planning, creative development and media services for advertising, particularly in

television, newspapers, magazines and radio; providing the best creative designed to capture the imagination of consumers Marketing Services

Provision of a number of advertising related services, including sales promotion, market research, PR and event marketing. e-Solution Services

e-solution services, including system integration services, e-business consulting and customer relationship management (CRM), Search Engine Marketing (SEM) and Search Engine Optimization (SEO) and e-promotions using the Internet and mobile. Content Business

Sales of sponsorship, broadcasting and other rights, and the production and marketing of such media / content as sporting events, films, TV programs, animated content, music and other forms of entertainment. Integrated Media Services

Bringing value to both clients and media-related companies by offering a wide range of media solution services Sales Promotion

Providing comprehensive sales promotion planning designed to complement mass media and other activities Event Marketing

Assisting clients by providing dynamic vehicles for their messages in the form of on-the-spot interactive communications Integrated Branding Services Assuring clients the highest quality of branding services for their communication needs Organization Structure

The activities within an advertising agency are typically divided into 4 broad groups: account management, the creative department, media buying, and research. These divisions are usually physically separated, although all four areas work closely together to produce an advertising campaign in its entirety.

Account managers usually have daily interaction with a counterpart at the client's office and coordinate the activities of the other departments according to the client's wishes. The creative department designs original themes or concepts for ads, while the media department places finished ads within the media in which they will receive the most exposure to a target audience. The research department provides data about consumers to help the agency and the client make informed advertising decisions.

Recently added to advertising agencies' roster of services are public relations, direct marketing, and promotional services. Other activities that used to be completed by outside vendors, such as photography and high-tech print work, have been brought in-house in many agencies.

ORGANIZATION CHART

Board of Directors

Managing Director

Client Services Director Creative Director

Servicing Group

Media

Research

Creative Groups

Audio Visual

Language

Studio

Production

Finance / Accounts

Branches

Secretarial / Legal Personnel

Type: 1

Type: 2

Departments & Personnel

Account Services / Account Management

The other major department in ad agencies is account services or account management. Account service employees work directly with clients and potential clients, soliciting business for the ad agency and determining what clients need and want the agency to do for them. They are also charged with understanding the client’s business situation and representing those needs within the agency, so that ads can be brought to bear on the correct problem.

Account planner / Director

The Account Planner is the main planning executive who works in partnership with the client on long-term account planning. He knows what is happening in the market place, the attitude of the consumer towards the client’s as well as the competitor’s brands.

Account Planner Deals with senior members of the client organization. He is responsible for agency performance as a whole with limited involvement in routine agency projects. The Account Director is responsible for forward, long-term planning, deployment of agency personnel and overall account profitability.

The account planner was originally employed to "represent the consumer" in the advertising i.e., find the best way to pitch the clients products to people by better understanding them, what they want and how to talk to them. Planning's role has expanded considerably since it was originally introduced. Planners are now also brand strategists and, to a certain extent, media strategists - using consumer insights to understand where and how people are most receptive to certain messages. In many agencies, there is a dedicated media department and there are also some large and small agencies that exclusively handle media strategy and media buying.

Account Supervisor A middle management position: he or she manages the account within a medium term perspective. This includes strategic planning, market analysis, competitive activity analysis, as well as recognizing and capitalizing on business building opportunities.

Account executives Account executives represent their ad agency to their clients. They understand sales and

advertising problems of the client and address the client’s need to the advertising approach. In advertising ‘The account’ is the client. The business of each client with the agency is referred to as an account. An ad agency handles assignments of a number of clients. A client’s business is assigned to a team of people from the ad agency with the Account Executive at the head of team. An account executive may be handling the business of number of non-competing clients at the same time. The Account Executive supervises his team of people drawn from all departments while planning, scheduling and executing the assignment.

Before a campaign is launched research on the client’s business methods, the product to be

advertised is made. With this background information there is a meeting of the creative media and marketing division along with members of the client’s team. The objective of this meeting is to define the nature and use of the product, and the target users as well as other competing brands. After all the information is assigned the agency team prepares a draft brief with recommendations. These are presented to the client by the Account Executive. The brief and budget are discussed and after finalization of work. The Account Executive motivates guides and coordinates the activities so that deadlines are met and the client’s expectations become a reality. He spends a lot of time keeping the client updated on the progress. The Agency’s Director too has to be kept informed. This is done directly in smaller firms but in larger firms there may be an Account Planner or Director. The chief

role of account executive is to extract the best possible work from the other departments of the agency. They are in daily touch with clients.

Creative department

The creative department is the people who create the actual ads - form the core of an advertising agency. Modern advertising agencies usually form their copywriters and art directors into creative teams. Creative teams may be permanent partnerships or formed on a project-by-project basis. The art director and copywriter report to a creative director, usually a creative employee with several years of experience. Although

copywriters have the word "write" in their job title, and art directors have the word "art", one does not necessarily write the words and the other draw the pictures;they both generate creative ideas to represent the proposition (the advertisement or campaign's key message). Creatives frequently work with outside design or production studios to develop and implement their ideas. Creative department consist of two key personnel i.e. art director and copywriters. These positions and ad agency is explained below.

Art Directors

Art Directors in Advertising aren't necessarily the head of an Art Department although the title may suggest it. They typically work in teams with a copywriter. look and Together the team works on a concept and design for commercials, print advertisements, and any other advertising medium. The art director is mostly responsible for the visual look and feel of the creative product as well as the concept. The Art Director ensures that the end product has the same feel as the original concept. The copywriter has ultimate responsibility for the product's verbal and textual content, and both are responsible for coming up with big, effective and persuasive ideas. Depending on the competencies of each, they may share tasks that are traditionally designated for one or the other, for instance, an art director may suggest certain wording and a copywriter may suggest a certain aesthetic for a project.

Art directors may also oversee a team of junior designers, image developers and production artists. In a smaller organization the art director may fill these roles as well. In a larger organization, art directors may oversee other art directors in a senior/junior art director relationship.

Copywriter

A copywriter is a person who writes text, or copy, for clients. Most copywriters work in advertising or marketing, producing copy that's intended to persuade a reader to buy a product or service or otherwise take action. Copywriting involves providing words, which are read or heard in advertisements. This may include slogans or jingles or detailed text for catalogues, brochures, leaflets and journals. Copywriting also takes the form of script for television and film commercial advertisement.

Copywriters can contribute words and ideas to print ads, catalogs, billboards, commercials, brochures, postcards, online sites, e-mail, letters and other advertising media. Ultimately, the kinds of ads and media a copywriter will work in depend on his or her own inclination and what clients ask for.

A copywriter often works as part of an advertising team. Agencies and advertising departments partner copywriters with art directors. The copywriter has ultimate responsibility for their ads verbal and textual content, the art director has ultimate responsibility for the visual look and appeal, and both are responsible for coming up with big, effective, persuasive ideas.

Copywriter and visual art work go hand in hand and this is the work which goes on in the agency’s creative department. Briefs from the Account Executive outlining the target group for the advertisement and information about the product, followed by discussions with the account planner, along with research material, and perhaps a meeting with client put the creative department to work.

The essential skill of the Copywriter lies in interpreting and understanding the mind and needs of the target audience and the characteristics of the product. They must identify what it is that would make people want or need the product being promoted. The Art Director and the Copywriter together then work on an idea that should catch the attention of the public and put the selling point of the product across; many ads are discarded, reincarnated and created. The final product is a team effort of the Copywriter and Art director with each other having suggested alterations to the other.

The more successful creations are then shown to the creative director who in turn may suggest further modifications. Final drawings are then produced and shown to the client. Once the client accepts the concept and layout is modified and the details filled in. The design and copy is sent to the production team for typesetting, photographs and drawings for printed advertisements or filming for television commercials.

Giants in the copywriting field include David Ogilvy, William Bernbach, Robert W. Bly and Leo Burnett. Many creative artists spent some of their career as copywriters before becoming

famous for other things, including Dorothy L. Sayers, Joseph Heller, Terry Gilliam, Salman Rushdie, and Don DeLillo.

Creative Department people need following attributes for this back-breaking job. • A good psychologist. • Willing and able to set high standards. • An efficient administrator & Research minded • Capable of strategic thinking – ‘positioning’ and all that. • Equally good at package goods and other kinds of accounts • Well versed in graphics and photography • A hard worker and fast • Slow to quarrel • Prepared to share credit for good work, and accept blame for bad work • A good presenter & good recruiter

Creative Process Policy

Client brief to Group Manager

Analysis & Evaluation of Brief

Research

Preliminary Strategy note More information required

Initial Strategy meeting

Revised Strategy note

Creative Brief

Discussion of initial Concepts with group manager

Presentation to Agency Plans Board

Finalization of concept

Group manager presents concepts to clients

Group manager presents concepts to clients

Finalization of execution

Revise

Discuss with client

Pre - Testing

Digital Studio Often called the DTP section, this set of people work on the final artworks that are sent to

the various publications for release.

DTP Artist

DTP Artist is Desk Top Publishing worker, a special name used in Advertising agencies, Publisher, Color separation, Printing and other related industries. A DTP Artist usually skilled in multiple computer design applications, such as QuarkXPress, Adobe Photoshop, Adobe Illustrator, CorelDraw, Adobe InDesign CS, and others. DTP Artist is formerly known as FA Artist (FA: Finishing Artwork), the name changed due to the digital revolution.

DTP Artist is a common name used in India, Malaysia, Singapore and other countries. In America, advertising DTP associate is the term frequently used to describe graphic artists working for in-house art departments. American advertising agencies separate the role of graphic artists between art directors and production artists.

Visualizer

Visualizer is a position designed by Advertising agencies to assist Art directors, in producing quick & good quality artworks, for presentation (to please the clients). The salary of a Visualizer is very low, usually an average salary of a Visualizer is less than half, or sometimes quarter, of the salary of an Art Director. Visualizer is a special name used in advertising agencies in non-native English speaking countries, Malaysia, Singapore and others.

Media Department Size and scale of the advertising is not important. What's in the mind is important. The big bucks are not being spent on production, they are being spent on broadcasting. The Media Department of an advertising agency is responsible for the planning and placement of advertising time and space. It is a function that in recent years has undergone considerable change. The proliferation of media forms and the escalating cost of media time have brought a new focus to the Agency Media Department.

Media Executives

The main task of the media executives is to place the advertisements where they will be seen by the right target audience keeping the budget in the mind. Hence this job requires planning, research and buying space in the press or time for commercial radio and television. In large agencies this task may be allocated to two or three different specialist. There may be a media planners and media buyers. In small agencies the task may be handled by the same person.

FUNCTIONS OF THE MEDIA DEPARTMENT

Media Planning The Media Department is responsible for the preparation and the actual presentation of

the media plan. This department recommends media and media vehicles that in the agency's opinion best fulfill the client's marketing and advertising objectives. The recommendations are based on a careful assessment of the client's strategic requirements and the subsequent matching against these of the various available media forms. In the process there is great reliance on research and the known strengths and weaknesses of various media. Computer analysis is frequently used to sift through and compare all the media audience data that is available. The final media plan will present a carefully thought out recommendation that delivers the right target group, at the right time, in the right place, with the right number of messages.

Media planners have access to up-to-date information about each advertising medium. This includes the relationship and circulation figures for news papers and magazines, viewing

figures for different times of the day, listening audience figure for commercial radio stations etc. They are also aware of the various locations for hoarding and billboards. They are a vast array of choice. There are thousands of brands to advertise the work is challenging. It is though the selection of the right media that a good media department can save large advertisers money as well as give credibility. Media Buying

Once a media plan has been approved by a client, it must then be purchased. The procedures for this vary according to the medium under consideration. In print media, for example, most purchases are made on the basis of rate cards issued by various newspapers or magazines. In broadcast, however, negotiation is involved. The objective of this negotiation is quite simple - to achieve maximum media efficiencies in obtaining the most for the least, or, in other words, the most audience for the least amount of money.

Media buyers buy advertising time/space for the agency’s client. The work closely with the media planer if the two functions are carried out separately. Television and newspaper advertising are expensive. The media buyer’s expertise is in the negotiating the best possible deal for the client. The commercial breaks with the most viewers are the most expensive and so also the newspapers and magazines with the

Media Estimating Every single purchase made by the Media Buyer must be recorded in advance of the

actual running of the advertisement. This is to enable the agency to bill the client for monies spent on their behalf and to check the invoices submitted by the media. This document is called an estimate.

Marketing Research Department Marketing research is three things:

1. The identification of information needs (i.e. defining the problem)

2. The systematic gathering, recording, analyzing and interpreting of data about problems relating to the marketing of goods and services (i.e. providing a solution to the problem)

3. The analysis and evaluation of action taken on the basis of information (i.e. monitoring and modifying the initial solution).

The single most important reason then for doing marketing research is to guide the

marketer in the analysis, planning, implementation and control of marketing and communications programs to satisfy both customer needs and organizational goals. It does this by providing decision-makers with information necessary to choose between alternative courses of action. While marketing research information can never eliminate all risk from decision making, good research can and should substantially reduce the odds of failure. In short, the essence of marketing research is "problem-solving".

Creative Services Department

The creative services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. For example, they will be able to advise upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the press), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can.

In small agencies, employees may do both creative and account service work. Larger agencies attract people who specialize in one or the other, and indeed include a number of people in specialized positions: production work, [Internet] advertising, or research, for example.

Event Management and Promotion department

These are marketing support services which coordinate with external suppliers and use internal resources to implement the client's plans. The work here is coordination, with specific responsibilities being more specialized. Event management, an industry that is just taking off in India, plans, organizes and executes live events, which could include a brand/product launch, an exhibition, a concert or even a conference.

Traffic Manager (system administrator)

An often forgotten, but still important, department within an advertising agency is traffic. Typically headed by a traffic manager, this department is responsible for a number of things. First and foremost is increasing agency efficiency and profitability through the reduction of false job starts, inappropriate job initiation, incomplete information sharing, over- and under-cost estimation, and the need for media extensions. In small agencies without a dedicated traffic manager, one employee may be responsible for managing workflow, gathering cost estimates

and answering the phone, for example. Large agencies may have a traffic department of ten or more employees.

Radio & TV Broadcast Production Department The Broadcast Production department is responsible for making television and radio

commercials to be aired across the country. Each project is different and the job demands both creative and administrative ability. The most successful people in Broadcast Production have strong aptitudes in both creative and administrative areas. This means that they should be active in creative spheres. They must also have a very high organizational ability as there are a myriad of details to attend to in any production. There are two basic classifications of jobs in Broadcast Production:

• Producer • Production Co-ordinator and/or Traffic Co-ordinator

The production team's main function is to purchase the services of the correct film or videotape Production Company and to administer and produce the TV commercial production on behalf of the advertising agency and the client. The Producer

The Producer is responsible for supervising all aspects of a TV commercial production, from the selection of the production company through budgeting, scheduling, casting, locations, sets, music creation, production meetings, filming, editing, sound mixing, to the final approval of the finished commercial. This means that the Producer must be completely familiar with all aspects of the film and videotape process, including animation, live action, and stop motion. Production Co-ordinator

The function of the Production Co-ordinator is to work with one or more Producers, providing administrative and creative support in such fields as budgeting, scheduling, producing production books, and auditioning talent. A Co-ordinator very often will handle revisions and adaptations of TV commercials with the production company. They may also have experience in Broadcast Traffic learning other rules on talent or how to "traffic" a complex television schedule.

Print Production Department

Print Production, more than any other agency department, relies on graphic art technology to help give birth to an ad. If there are to be no complications in the ad's delivery to the printed page, then strict technical rules must be followed. Of course, rules were made for valid reasons. An ad must obey that magazine's exact size and film requirements. To defy those specifications, even slightly, would make it incorrect and therefore not publishable.

What Print Production People Do? Print production people:

• Meet deadlines. Publications insist on strict deadlines and it's crucial that production pay strict heed to them.

• Use sophisticated technology. To ensure that those deadlines are met, the Production Manager must possess a solid working know- ledge of the latest graphic art technology. As technology changes it is now imperative to be computer literate and understand their function.

• Co-ordinate and manage. The Print Production department's job is to ensure that print advertising is reproduced correctly whether in colour or in black and white. This means exact attention to detail and it is up to the Production Manager to provide the specifications to suppliers.

• Skills and training. What are the skills necessary to make it in Production? Technical art expertise and a willingness to keep abreast of new developments; an aesthetic feeling for some of the craftsmanship involved in the graphic arts; accounting and math skills; and a sharp eye for detail. Computer literacy and an understanding of systems is another necessary skill. Production skills aren't something that can be bought, nor are they something that can be learned overnight. It takes a few hard years of training under the wing of an experienced Production Manager.

Agency Personnel

Production Team Ad agencies may have their production team which includes Photographers, Printers,

Typesetters, Television Producers, etc. but since the work is very diverse most ad agencies coordinate with freelancers or established production units for task to be completed. Production workers are concerned with all the technical process of turning the final copy and art work into a real ad for print, TV, radio.

Storyboard artist

Storyboard artist is a profession specialize in creating storyboards for advertising agencies and film productions. A storyboard artist is able to visualize any stories using quick sketches on paper at any moment. Quick pencil drawings and marker renderings are two most common traditional techniques, nowadays Flash, Photoshop and other storyboard applications are gradually taking over, digital camera is one of the latest techniques in creating storyboards.

Storyboard artist is also known as illustrator or visualizer, they are mostly freelance. Art directors or film directors are the most likely type of peoples that would contact storyboard artists and the deadline is always tight, overnight working is very common.

Most used storyboard applications are the Corel Painter and the Adobe Photoshop, some storyboard artists nowadays begin and finish their work on computers using drawing software and digital pencils like Wacom (Graphics tablet), in this way they save effort and most important time which always has the first periority for a storyboard.

Graphic designer

Graphic design is a form of visual communication using text and/or images to present information, or promote a message. The art of graphic design embraces a range of cognitive skills and crafts including typography, image development and page layout. Graphic design is applied in communication design and fine art. Like other forms of communication, graphic design often refers to both the process (designing) by which the communication is created, and the products (designs) such as creative solutions, imagery and multimedia compositions. Graphic design is traditionally applied to static media, such as books, magazines and brochures. Additionally, since the advent of computers, graphic design is utilized in electronic media - often referred to as interactive design, or multimedia design.

There are varying degrees of graphic design. Graphic designer involvement may range from verbally communicated ideas, to visual rough drafts, to final production. In commercial art, client edits, technical preparation and mass production are usually required, but usually not considered to be within the scope of graphic design unless the client is also a graphic designer.

Although the term 'graphic designer' was first coined in the 20th century, the story of graphic design spans the history of marks of humankind from the magic of the caves of Lascaux to the dazzling neons of Ginza. After all, they share the same elements, theories, principles, practices and languages, and sometimes the same benefactor or client. In advertising art the ultimate objective is the sale of goods and services. In graphic design, "the essence is to give order to information, form to ideas, expression and feeling to artifacts that document human experience. ”Fine art refers to arts that are 'concerned with beauty'..."

Advertising interns

Advertising interns are typically university juniors and seniors who are genuinely interested in and have an aptitude for advertising. Internships at advertising agencies most commonly fall into one of six areas of expertise: account services, creative, interactive, media, public relations and traffic.

An internship program in account services usually involves fundamental work within account management as well as offering exposure to other facets of the agency. The primary responsibility of this position is to assist account managers. Functions of the account management intern may include:

• Research and analysis: Gathering information regarding industry, competition, customer product or service; as well as presenting findings in verbal/written form with recommendations

• Involvement in internal meetings and, when appropriate, client meetings

• Assisting account services in the management of creative projects

Interns often take part in the internal creative process, as is illustrated in this agency intern website, where these interns were charged with creating and managing a website as well as developing an advertising campaign. Hands on projects such as this one help interns learn how strategy and well-developed marketing is essential to a sound advertising and communications plan.

During their internship, the intern will experience the development of an ad, brochure and broadcast or communications project from beginning to end. During the internship, the intern should be exposed to as much as possible within the agency and advertising process.

Famous advertising agencies in world

• BBH (Bartle, Bogle & Hegarty) -- famous for Audi, Levi's, Johnnie Walker, British Airways.

• Crispin Porter + Bogusky --famous for Subservient Chicken, works with Burger King, Virgin Atlantic Airways, Volkswagen

• Wieden + Kennedy -- famous for remaining an independent agency; as well as Nike "Just Do It", ESPN "This Is Sports center", Coke, EA, Starbucks, ESPN, Honda UK.

• JWT (formerly J. Walter. Thompson) -- works with Kelloggs, Unilever, Diageo.

• Leo Burnett -- works with Procter & Gamble, Kelloggs, McDonald's, Marlboro, Hallmark, Heinz. Famous for creating characters such as Tony the Tiger, Snap Crackle & Pop, the Jolly Green Giant, the Marlboro Man, and Charlie the Tuna.

• The Martin Agency -- UPS, GEICO, NASCAR, Miller (Lite, MGD), Hanes, and others

• N.W. Ayer & Son -- the first ad agency in the United States, coined "When it rains it pours" (Morton Salt), "A diamond is forever" (De Beers), "Reach out and touch someone" (AT&T), "Be all you can be" (United States Army), and others

• Ogilvy & Mather -- famous for the Rolls-Royce print ad with the headline "At 60 miles an hour the loudest noise in this new Rolls-Royce comes from the electric clock", among other ads

• Saatchi and Saatchi -- most famous for working with the Conservative Party especially during the 1979 general election (Maurice and Charles Saatchi later left and set-up M&C Saatchi)

• TBWA\Chiat\Day -- works with Apple Computer (including the "Think Different" campaign), adidas, and Sony Playstation. Responsible for creating the fcuk brand and (in the UK) Wonderbra advertising.

Future

Advertising is a growing industry that offers great scope for creative people. Each year new markets open up and communication channels become more sophisticated, reaching out to many more people, through different media. As more and more multinationals are coming to India to capture the unexplored huge consumer market, the demand for advertising professionals is bound to increase. According to an estimate, the Indian advertising agency will need over 6000 trained professionals every year. With the country's vast rural market also becoming the focus of advertising, the industry's turnover is bound to multiply thereby creating a huge demand for 'ad' professionals.

With the dawn of the Internet have come many new advertising opportunities. Popup, Flash banner, advergaming, and email advertisements (the last often being a form of spam) abound. Each year, greater sums are paid to obtain a commercial spot during the Super Bowl. Companies attempt to make these commercials sufficiently entertaining that members of the public will actually want to watch them.

Particularly since the rise of "entertaining" advertising, some people may like an advert enough that they wish to watch it later or show a friend. In general, the advertising community has not yet made this easy, although some have used the Internet to widely distribute their adverts to anyone wishing to see or hear them.

Another significant trend to note for the future of advertising is the growing importance of niche or targeted ads. Also brought about by the Internet and the theory of The Long Tail,

advertisers will have an increasing ability to reach narrow audiences. In the past, the most efficient way to deliver a message was to blanket the largest mass market audience possible. However, usage tracking, customer profiles and the growing popularity of niche content brought about by everything from blogs to social networking sites, provides advertisers with audiences that are smaller but much better defined, leading to ads that are more relevant to viewers and more effective for companies marketing products.

Conclusion

In today’s world which is fast moving & dynamic, people’s wants, need and desires are changing; it’s very important to know them and give them what they want. This is the main objective of advertising where ad agency plays major role in market research, making of creative, launching it in the market, taking the feedback of consumer and making any product famous and acceptable among consumers. Ad agencies are playing an important role in shaping present and future of not just selected brand but of entire company.

There is no one -- sure-fire -- best way to advertise your product or service. It is important to explore the various advertising media and select those which will most effectively convey your message to your customers in a cost-efficient manner. Always remember, advertising is an investment in the future of your business.

Political Advertising Political advertising involves the use of advertising by politicians to bring their messages to the masses. These usually warn voters that the gates of Hell will open and demons will eat skin off their still-living victims if voters approve a bond issue for school playgrounds. In theory, political advertising could explain policy, inform citizens and connect people to their leaders.

Commercial advertising has always been a central feature of American culture. As encountered in the mass media, it is pervasive and inescapable. Most Americans take for granted the "rules" of commercial advertising, even though they may not be aware that any formal guidelines exist and may have little or no idea what the legal effect of such guidelines might be. Commercial advertisements are widely accepted as fair and legitimate marketing.

Contrast the world of political advertising. In recent years, political advertising has become essential to campaign strategy (at least in major campaigns), and many regard it as far more intrusive than routine commercial advertising. But the world of political advertising is very different from the world of commercial advertising. There really are no "rules" when it comes to the content and form of political advertising. Political advertisers are not accountable to any regulatory body, voluntary or otherwise, for the accuracy of their claims. They readily engage in so-called "comparative" advertising. They blatantly criticize their competitors. They complain incessantly about the fairness of the comments made about them, while their opponents are doing

the same. There is no acknowledged forum for the review of these claims and counter-claims. The press attempts to provide some sporadic checks on political advertisers by running "ad-watch" reports, but these reports by their very nature tend to fuel public cynicism. Considerable evidence suggests that the negativity associated with contemporary political campaigns has created an "avoidance" mentality which is serving to shrink the electorate and the level of political participation generally (see Ansolabehere and Iyengar, 1995).

The current state of political advertising has aroused considerable concern within the world of commercial advertising. Major advertising firms and professional associations have widely deplored the lack of accountability of political advertisers and their unwillingness to adhere to a code of ethics (see Advertising Age, April 29, 1996; New York Times, April 29, 1996; Washington Post, July 30, 1996). What exactly is Madison Avenue concerned about? Perhaps commercial advertisers fear that the apathy -- and all too frequently, aversion -- induced by political advertising campaigns may damage the credibility, and ultimately the persuasiveness, of more traditional forms of advertising. As Alex Kroll, former chairman of the American Association of Advertising Agencies, put it: "We must stop politicians from ruining our reputation." (Advertising Age, April 29, 1991) Kroll’s was not a solitary voice. In 1984, then AAAA chair John O’Toole claimed that political ads were "giving advertising a bad name." (Advertising Age, June 24, 1996) and in 1996, Burt Manning went so far as to assert that the "smear and scare" tactics of political advertisers meant that "today, the issue is survival of brand advertising" (Advertising Age, June 24, 1996). Our goal in this paper is to provide some evidence on the issue of whether political advertising, does, in fact, "contaminate" commercial advertising.

We set out to consider two rival possibilities, both of which rest on the assumption that commercial advertising is evaluated more favorably than political advertising. The assimilation hypothesis, derived from social judgment theory, suggests that exposure to political advertising campaigns encourages people to "assimilate" or equate their feelings about related attitude targets (for a discussion of social judgment and other theories of attitude change, see Petty and Cacioppo, 1986). The essence of this concept is that negative reactions to political advertising will color attitudes toward other forms of advertising. The competing possibility, which we have termed the "contrast" hypothesis, suggests that the negative response to political campaigns actually makes commercial advertising appear more appealing than it would have been in the absence of political advertising. By accentuating the negative attributes of political advertisements, political campaigns strengthen the standing of commercial advertisers.

In the sections that follow, we will first provide some background on the scope and extent of commercial and political advertising and the regulatory environment in which advertisers operate. Next, we describe recent scholarly research into the content and effects of political advertising. We then describe our experimental methodology for assessing the impact of political advertising on receptiveness to commercial advertising and summarize the findings. Finally, we consider the implications of our evidence for the current debate.

Comparing Commercial and Political Advertising

Even though the use of political advertising has spread exponentially, both in terms of the sheer frequency of exposure and the increased length of political campaigns, political advertising is

still miniscule compared with commercial advertising. The total cost of the 1996 election (all races combined) amounted to approximately $2.5 billion (Center for Responsive Politics, 1999). This figure is less than the annual advertising budget for major U.S. corporations. During the height of the 1996 campaign, the research firm CMR found that fewer than one percent of all televised advertisements (750,000 out of 93,000,000) in the top 75 media markets were sponsored by political candidates or organizations (Goldstein, 1998). Clearly, the public’s distaste for these advertisements is based on factors other than sheer frequency.

The most distinctive feature of contemporary political campaign advertisements is the negativity of their content and tone. Political advertisers frequently engage in so-called "comparative" advertising in which the opposing candidate’s program and performance are criticized and even ridiculed. Highlighting the opponent’s liabilities and weaknesses usually takes precedence over identifying the sponsor’s program and strengths. In the most comprehensive tracking of campaign advertising to date, scholars at the Annenberg School of Communication have found that such "negative" advertising makes up approximately one-third of all campaign ads used in presidential campaigns (Jamieson et al., 1998). The level of negativity is actually significantly greater when one considers frequency-weighted indicators of content (Prior, 1999). In 1996, for instance, while fewer than one-half of the ads produced by the major candidates featured negative appeals, these appeals accounted for some seventy percent of the candidates’ ad buys (Goldstein, 1998). While we do not have comparable data for any commercial advertising campaign, the "comparative" element is unlikely to be so prominent; when compared with commercial ads, political ads are much more negative in content.

Unlike commercial advertisers, political advertises do not adhere to any codes or procedures intended to protect the public from inaccurate and unsubstantiated claims. All commercial advertisers voluntarily subscribe to a "code of advertising ethics" administered by the Advertising Division of the Better Business Bureau. This code includes provisions for dealing with complaints of false or misleading claims. Complaints directed at specific ads are reviewed and arbitrated by a panel appointed by the National Advertising Review Board. After reviewing the evidence from both sides, the panel may find the complaint to be valid and require that the ad in question be modified or discontinued. The panel may also refer the complaint to the appropriate governmental agency. If the advertiser fails to comply with a request for modification or termination, the panel may issue a "notice of noncompliance" identifying the advertiser.

Political advertisers are not subject to comparable voluntary guidelines. First Amendment protections make it virtually impossible to impose involuntary restraints on the content of political advertising. The American Association of Political Consultants has shown no inclination to encourage any form of self-restraint. The result is a free-for-all environment in which candidates repeatedly attack and counter-attack the claims of their competitors. The only accountability is provided by the press, in the form of sporadic "ad-watch" news reports that scrutinize specific ads for their accuracy (for a review of research into the effects of these reports, see Pew Commission, 1998). The very nature of ad-watch journalism, however, is bound to exacerbate public cynicism over the fairness and credibility of political advertising.

The Effects of Political Advertising

The harsh tone of political advertising, the often controversial techniques employed by political advertisers, and the fact that the competing claims made in campaign ads are beyond review, have raised questions about the goals of political advertisers. Many critics have suggested that political advertisers seek votes at any cost, even including a degraded sense of public regard for the candidates and the electoral process. Perhaps the amount of negativity featured in political campaigns is designed to shrink the "market" rather than increase the sponsor’s relative share. Discouraging people from voting is much more feasible than persuading supporters of one candidate to vote for the opponent. It is well known that most Americans hold fast to their partisan attachments and that the act of voting generally serves expressive (as opposed to instrumental) needs (for a review of research on political participation, see Rosenstone and Hansen, 1992). Since people acquire their affiliation with the Democratic or Republican parties early in life, the probability that they will cross party lines in response to an advertising campaign is slight. And since the motivation to vote is typically symbolic or psychological (in the sense that one’s vote is unlikely to be pivotal in determining the outcome of the election), increasing the level of controversy and conflict in ad campaigns is bound to discourage voters from making a choice and casting a vote. In effect, negative campaigns create an "avoidance" set within the electorate (see Houston et al., 1998, 1999).

Although the scholarly evidence is mixed, experimental studies substantiate these claims. Carefully controlled manipulations of advertising tone demonstrate that exposure to negative (rather than positive) campaign advertising heightens political cynicism and diminishes voter turnout (see Ansolabehere and Iyengar, 1995; Houston et al., 1998, 1999; Ansolabehere et al., 1999). It is hardly coincidental that the public’s views of elections and the importance of voting have soured as political advertising campaigns have become increasingly reliant on negative appeals. In 1960, for example, only one in four Americans endorsed the statement that "public officials don’t care much about what people like me think." By 1990, the cynical response was given by six of ten Americans (see Rosenstone and Hansen, 1992).

Exposure to political campaigns has extracted a similar toll on the public’s views of political advertising. There is ample survey data showing that the public dislikes media-based political campaigns. According to the most recent surveys by the Pew Center, a majority of the electorate (some 60 percent) felt that campaign commercials were not useful in helping them choose a candidate during the 1998 elections and more than two-thirds (68%) judged the campaign as "nasty" (Pew Center, 1998). And in a recent survey of voters in Virginia, some three-fourths of the sample indicated that negative campaigns were likely to discourage people from voting (Freedman, 1999).

Does the fallout from exposure to political advertising spread to commercial advertising in general? We attempt to answer this question experimentally, by manipulating exposure to political advertising and then measuring participants’ attitudes towards political and commercial ad campaigns. We also manipulate the tone of political advertising in order to assess the impact of negative political campaigns on the audience’s confidence in political and product advertisers. Our results indicate that exposure to political advertising in general -- and negative political advertising in particular -- strengthens viewers’ relative confidence in commercial advertising.

People do not assimilate their generally unfavorable ratings of political ads to the commercial advertising arena. Nor do they express more favorable attitudes toward commercial advertising in the aftermath of exposure to political advertising. However, because campaigns heighten distaste for political advertising, the net effect is to boost the relative appeal of commercial advertising. Thus, exposure to political campaigns enlarges the contrast between commercial and political advertising.

Political Advertising - The 'India Shining' Campaign

Abstract: The case describes the 'India Shining' campaign that marked the beginning of a new age of political advertising in India. It discusses in depth the political advertising strategy of theerstwhile NDA government and examines how the campaign was aimed as a tool to win votes. The case also discusses the political advertising campaign of the present ruling party - Congress that mainly targeted the masses. The case ends with a debate on the efficacy of politicaladvertising campaign in general, and explores reasons why the 'India Shining' campaign wasunsuccessful.

Political Campaign A political campaign is an organized effort to influence the decision making process within a group. In democracies, political campaigns often refer to electoral campaigns, wherein representatives are chosen or referenda are decided. Political campaigns also include organized efforts to alter policy within any institution. Politics is as old as humankind and is not limited to democratic or governmental institutions. Some examples of political campaigns are: the effort to execute or banish Socrates Athens in the 5th century BC, the uprising of petty nobility against John of England in the 13th century, or the 2005 push to remove Michael Eisner from the helm of The Walt Disney Company. The Cost of Campaign Advertising Political campaigns have become heavily reliant on broadcast media and direct mail advertising (typically designed and purchased through specialized consultants). Though, virtually all campaign media are sometimes used at all levels (even candidates for local office have been known to purchase cable TV ads), smaller, lower-budget campaigns are typically more focused on direct mail, low cost advertising (such as lawn signs), and direct voter contact. This reliance on expensive advertising is a leading factor behind the rise in the cost of running for office. This rising cost is considered by some to discourage those without well-monied connections, or money themselves, from running for office. Television advertising is the primary way that modern political campaigns communicate with potential voters. In a typical presidential, congressional or gubernatorial election, spending on television advertising comprises the greatest proportion of a campaign’s budget. To date, the lack

of comprehensive data on the content, timing, volume and targeting of political advertising has limited what policy makers, journalists and scholars can report about the strategies employed by campaigns and the balance of advertising in particular contests. Furthermore, the lack of comprehensive data on advertising activity by parties and interest groups, increasingly active players in advertising campaigns, not only has limited what could be said about the activities of these crucial players but also has made it difficult for a complete picture of advertising activity to be drawn. Finally, the lack of comprehensive data on political advertising has made it difficult for scholars to study the effect and effectiveness of these communications. Put simply, without comprehensive data on the targeting, volume and content of advertising by all the players involved, it has been difficult to study the effect of the main persuasive tool utilized by modern electoral campaigns.

Code of Ethics for Advertising

1. False or Misleading Statements

o According to the Standards of Practice set forth by the AAAA, advertisements must not contain any type of claim that is false or misleading to audiences. This includes lies, partial truths, purposefully withholding information and exaggerations. It is important to note that false and misleading content is not limited to the verbal and written claims made in the ad. It also applies to images and demonstrations, as they should not misrepresent the capabilities and characteristics of a product.

Inaccurate Testimonials

o Testimonials are when a person gives their opinion or talks about their experience about a product or service. The AAAA discourages the use of inaccurate testimonials. Testimonials can be considered inaccurate for multiple reasons. First of all, a testimonial is inaccurate if the person who is giving the testimonial is not portraying themselves, and instead is portraying a fictional person. Also, a testimonial is inaccurate if it does not reflect the true opinion of the person giving the testimonial.

Misleading Price Claims

o The Standards of Practice states that all price claims relating to the product or service must be completely accurate. No product can misrepresent their prices in order to make the price appear more desirable. In order to make sure that price claims are always accurate, advertisements must specifically state if there are any constituencies in order to buy a product for a certain price. For example, if a price is listed as a lower price due to a rebate, than the ad must state that the low price is obtained through a rebate.

Insufficient Claims

o Similar to exaggerations, the Standards of Practice forbids the use of insufficient claims while referring to the capabilities of a product or service. If there is not sufficient scientific or professional evidence to support a claim made by a product, then it cannot be used in the advertising. Even if the product is capable of

performing a certain task, if it does not have the evidence to support a claim, then the advertisement cannot use that claim within the ad.

Offensive Material

o All material including verbal and textual communication, audio, video and images must be considered decent for the general public. Any material in an advertisement that is considered offensive, indecent or obscene to the general public is forbidden according to the Standards of Practice. Also, advertisements may not be offensive towards any minority population including racial and ethnic groups, religious groups, age groups and the disabled population.

ASCI Codes

THE CODE FOR SELF-REGULATION IN ADVERTISING PERTINENT EXTRACTS Adopted by THE ADVERTISING STANDARDS COUNCIL OF INDIA under Article 2(ii)f of its Articles of Association at the first meeting of the Board of Governors held on November 20, 1985 and amended in February 1995 and in June 1999.

Declaration of Fundamental Principles This Code for Self-Regulation has been drawn up by people in professions and industries in or connected with advertising, in consultation with representatives of people affected by advertising and has been accepted by individuals, corporate bodies and associations engaged in or otherwise concerned with the practice of advertising with the following as basic guidelines with a view to achieve the acceptance of fair advertising practices in the best interests of the ultimate consumer:

• To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertisements.

• To ensure that advertisements are not offensive to generally accepted standards of public decency. Advertisements should contain nothing indecent, vulgar or repulsive which is likely, in the light of generally prevailing standards of decency and propriety, to cause grave or widespread offence

• To safeguard against the indiscriminate use of Advertising in situations or of the promotion of products which are regarded as hazardous or harmful to society or to individuals, particularly minors, to a degree or of a type which is unacceptable to society at large.

• To ensure that advertisements observe fairness in competition so that the consumer’s need to be informed on choices in the market-place and the canons of generally accepted competitive behaviour in business are both served. Both the general public and an advertiser’s competitors have an equal right to expect the content of advertisements to be presented fairly, intelligibly and responsibly. The Code applies to advertisers, advertising agencies and media.

Responsibility for the Observance of this Code The responsibility for the observance of this Code for Self-Regulation in Advertising lies with all who commission, create, place or publish any advertisement or assist in the creation or publishing of any advertisement. All advertisers, advertising agencies and media are expected

not to commission, create, place or publish any advertisement which is in contravention of this Code. This is a self-imposed discipline required under this Code for Self-Regulation in Advertising from all involved in the commissioning, creation, placement or publishing of advertisements. This Code applies to advertisements read, heard or viewed in India even if they originate or are published abroad so long as they are directed to consumers in India or are exposed to significant number of consumers in India.

Definitions An advertisement is defined as a paid-for communication, addressed to the public or a section of it, the purpose of which is to influence the opinions or behaviour of those to whom it is addressed. Any written or graphic matter on packaging, or contained in it, is subject to this Code.

Standards Of Conduct Advertising is an important and legitimate means for the seller to awaken interest in his products. The success of advertising depends on public confidence. Hence no practice should be permitted which tends to impair this confidence.

Legal Issues in Advertising

The Federal Trade Commission regulates all forms of advertising in the United States. They publish rules on mail order, the Internet, telephone sales, 900 numbers, gaming, deception in advertising, product labeling, consumer credit, and much more.

This page offers a brief overview of some of the advertising laws regulating your print advertising. Please note that Professional Advertising is not offering legal advice.

For detailed information about advertising law, please contact the Federal Trade Commission directly, or check with your state's Attorney General’s Office about consumer protection advertising laws. Also note that state and local laws can be stricter than federal laws, so double check.

If you have questions or doubts about any of your advertising, check with a lawyer. At Professional Advertising, we like to take the conservative approach on these matters.

Protecting your organization from outside threats is critical to your bottom line. Knowing how to protect your company while increasing the effectiveness of your advertising is what Professional Advertising is all about.

Truth in Advertising

According to the Federal Trade Commission (FTC), “advertising must be truthful and non-deceptive… advertisers must have evidence to back up their claims… and advertisements cannot be unfair.”

Deceptive Advertising

According to advertising law, an advertisement is considered deceptive if it contains a statement or omits information that “is likely to mislead consumers acting reasonably under the circumstances; and is, ‘material’ - that is, important to a consumer's decision to buy or use the product.“

Essentially, the law states that your advertising cannot be misleading. You have to tell the truth, or clearly label your ads so that no reasonable person could mistake your intent. Advertisers [and their advertising agencies] need to have a reasonable basis for advertising claims before they are published.

Unfair Advertising and Business Practices

According to the FTC, an advertisement is unfair if “it causes or is likely to cause substantial consumer injury which a consumer could not reasonably avoid; and it is not outweighed by the benefit to consumers.”

In advertising law, “substantial consumer injury” and “material” are related things. In part, advertising law protects consumers from financial loss due to deceptive practices.

The law does make an exception when consumer benefits outweigh consumer injury, but you probably don’t want to pay the expenses of explaining that in court.

Bait and Switch Tactics

It’s illegal to advertise a product when you have no intention of selling that product at the advertised price. Bait and switch tactics are illegal, period. If you advertise a product, the law says that you have to intend to sell it as advertised.

Advertising Law: Catalog Sales

As a catalog retailer, you are not obligated to substantiate the claims made by suppliers about their products. However, caution and common sense should dictate your ad copy.

Stick to the claims made by the supplier, and do not expand or improve on them. Do not print anything that is not reasonable.

Advertising to Children

The FTC pays particular attention to advertisements aimed at children. These ads are evaluated from a child’s point of view, not an adult’s. If you advertise to children, be very careful about following all of the guidelines. No company wants the publicity that comes from accusations about possibly misleading children.

Comparative Advertising

If the comparison you make is true, then it is legal to print it. If you are better than your competitors, the law says that you can tell the whole world about it.

Contests and Sweepstakes

There are many different advertising laws governing contests and sweepstakes. Check with your state's Attorney General’s Office and with the FTC. And you might want to check with your lawyer.

Consumer Credit

All ads offering consumer credit must include “clear and conspicuous” disclosure terms and conditions of receiving the credit. Check with your advertising agency, your lawyer, or the FTC if you are planning on offering credit in your ads.

Express Claims

An express claim is a direct claim made in an advertisement like “our product prevents sore throats.” The claim must be true and substantiated.

Implied Claims

An implied claim is an indirect claim made in an advertisement. For example, “our product kills germs that cause sore throats” is an implied claim. The implication is that the product prevents sore throats.

The FTC judges claims on what a reasonable consumer would assume given the entirety of the advertisement and all of the claims made. Advertising law says that the implied claim must be true and substantiated.

Disclosure and Disclaimer Statements

These statements are required if an advertisement's express or implied claims could be misleading.

A disclosure statement gives qualifying information so that a claim is not misunderstood. The disclaimer must be “clear and conspicuous” so that consumers can notice and understand it.

The disclaimer needs proximity and prominence in relationship to the claim, with little other distraction. And the disclaimer cannot correct a false claim – that would be deceptive advertising.

Endorsements and Testimonials

Advertising law says that endorsements and testimonials must show the honest opinion or experience of the endorser. Claims must be truthful and substantiated.

If a celebrity claims to use a product, that claim must be true. Consumer endorsements must reflect the typical consumers experience with the product. Stating, “your results may vary” doesn’t help if the typical consumer cannot expect similar results.

Expert endorsements must be supportable by scientific methods, not by the opinion of one expert. And if there is a ”material” or financial connection between your company and the endorser, advertising law says that you need to disclose it.

Free Products

You can give away anything you want, unless there is a catch. If your “free” item is tied to a second purchase, then the second item’s price has to be the regular price. If there are any conditions on the “free” item, advertising law says you must disclose all of the information in a “clear and conspicuous” manner.

Rebates

Advertising law says you must prominently feature the before-rebate price in your ad, and the amount of the rebate. Any additional terms of purchase must be disclosed, and you need to indicate how long it takes to receive the rebate.

Guarantees and Warrantees

If you want to mention your guarantee in your ad, you must tell consumers how to get all of the details on that guarantee. Any conditions or limits must also be disclosed in the ad. A complete copy of the guarantee must be made available to consumers before any sale. This also covers phone, catalog, mail, and online sales transactions.

Advertising on the Internet

All of the other truth in advertising laws apply to the Internet. The FTC is particularly concerned with disclosure statements and false advertising claims. All ads must be truthful and substantiated. Contact the FTC for more information.

Advertising Law: Mail Order Advertising

All of the other truth in advertising laws also apply to mail order advertising. Any orders received by phone, fax, online, or by mail should ship within 30 days, or within the timeframe stated in the ad.

Telemarketing

All claims must be true and substantiated, and all of other advertising laws apply. Additional restrictions apply to certain categories of services, including legal services. Check with your state's Attorney General's office.

Advertising Law: New Products

As long as it really is new, you are probably okay for six months. Check with the FTC for specific claims about new products by product category. There are limits on what you can refer to as new.

Advertising Law: Price

All of the truth in advertising laws apply to advertising price. If you are making a comparison, it needs to be truthful. If you say that the product is being sold for "$xx" elsewhere, then in fact, other representative retailers must be selling at that price.

A few small retailers selling at the higher price elsewhere are not representative of the market. Media publishers may require you to substantiate your claims before they will print your ad. Contact the FTC for more.

Advertising Law: Sale

Your sale price must be a reduction from the actual, bona fide former asking price that was offered on a regular basis to the public for a reasonably substantial time period.

If you didn’t sell a substantial amount of product at the higher price, you can’t say “formerly sold at "$xx", because it is not really true. Inflating a price only to reduce it to its regular selling price and claim that it is on sale is not legal.

Advertising Law: Mis-marked Price

If a product is marked or advertised at a certain price, your state laws may require you to sell it at that price. Check with your state's Attorney General’s Office.

Advertising Law: Rain checks

Only food retailers must offer rain checks or comparable substitute products. However, it is good business practice for all retailers to offer rain checks, because the public expects it. Protect yourself by stating, “quantities are limited,” or “not available in all stores.”

Going Out of Business Sale

You can make this claim only if it is true. The FTC watches for perpetual going out of business sales.

Standards for Proving Claims

If you make a claim about your product or service, the FTC expects that you can substantiate that claim, and that you have the ability to fulfill your promises. The law states that substantiation must be based on fact and objective evaluation, not opinion.

Deception

Deception comes from a representation, practice, or omission that may mislead the public. The claim can be written or oral. And the entire sales transaction is considered – not just a single statement.

Whether the representation, practice, or omission is deceptive is based on what a reasonable consumer would infer from the information. And the deceptive practice must have a negative material or financial cost to the consumer.

Copyright in Advertising

The creation of art [advertisements, illustrations, photos, logos, etc.] carries with it automatic copyright protection. The creator of the art owns it, until 50 years after death, unless specific contractual terms transfer that ownership.

In addition, each artist has copyright protection for his or her component of a given piece of work – the photographer, the illustrator, the graphic designer, etc. Each artist must sign a release. With artwork, it is important to understand the terms.

Warranty of Originality - a statement from the artist that all of the work is original or is being used with permission for the intended purpose.

Usage Rights - describe how, when, where, and how long artwork will be used.

Client Responsibilities - Normally the client is responsible for copywriting and proofreading. All original artwork, digital media, files, and mechanicals are the property of the artist.

Ask For Help

As always, Professional Advertising is here to help you. We strongly recommend that you run your work past a marketing professional for assistance or a second opinion. And our professional advertising design services are also available to help you succeed.

Remember, you are responsible for the content of all of your published materials. If you have any doubt about what to print, ask your lawyer, and check with the FTC and your state's Attorney General’s Office.

If you have legal questions, please contact an attorney. It’s a cheap investment for something that is as important as your entire advertising program.

Integrated marketing communications

Integrated Marketing Communications is the coordination and intergration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. It aims to ensure consistency of message and the complementary use of media. The concept includes online and offline marketing channels. Online marketing channels include any e-marketing campaigns or programs, from search engine optimization (SEO), pay-per-click, affiliate, email, banner to latest web related channels for webinar, blog, micro-blogging, RSS, podcast, Internet Radio and Internet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry relations, billboard, radio, and television. A company develops its integrated marketing communication programme using all the elements of the marketing mix (product, price, place, promotion and public relations).

Integrated marketing communication is integration of all marketing tools,like kids approaches, and resources within a company which maximizes impact on consumer mind and which results into maximum profit at minimum cost. Generally marketing starts from "Marketing Mix". Promotion is one element of Marketing Mix. Promotional activities include Advertising (by using different media), sales promotion (sales and trades promotion), and personal selling activities. It also includes internet marketing, sponsorship marketing, direct marketing, database marketing and public relations. And integration of all these promotional tools along with other components of marketing mix to gain edge over competitor is called Integrated Marketing Communication.

Using outside-in thinking, Integrated Marketing Communications is a data-driven approach that focuses on identifying consumer insights and developing a strategy with the right (online and offline combination) channels to forge a stronger brand-consumer relationship. This involves knowing the right touch points to use to reach consumers and understanding how and where they consume different types of media. Regression analysis and customer lifetime value are key data elements in this approach.

The starting point of the IMC is the marketing mix (Product,Price,Promotion,Place) which involves different types of marketing, advertising and sales. Without a complete IMC plan there is no integration or harmony among client and customers. The goal of an organization is to create and maintain communication throughout it's own employees and throughout it's customers. In order to achieve such goal a marketing plan is created which consists on the following steps: 1.Situation Analysis 2.Marketing Objectives 3.Marketing Budget 4.Marketing Strategies 5.Marketing Tactics 6.Evaluation of performance.

Reasons for the Growing Importance of IMC

Several shifts in the advertising and media industry have caused IMC to develop into a primary strategy for marketers:

1. From media advertising to multiple forms of communication. 2. From mass media to more specialized (niche) media, which are centered around specific

target audiences. 3. From a manufacturer-dominated market to a retailer-dominated, consumer-controlled

market. 4. From general-focus advertising and marketing to data-based marketing. 5. From low agency accountability to greater agency accountability, particularly in

advertising. 6. From traditional compensation to performance-based compensation (increased sales or

benefits to the company). 7. From limited Internet access to 24/7 Internet availability and access to goods and

services.

Selecting the Most Effective Communications Elements

The goal of selecting the elements of proposed integrated marketing communications is to create a campaign that is effective and consistent across media platforms. Some marketers may want only ads with greatest breadth of appeal: the executions that, when combined, provide the greatest number of attention-getting, branded, and motivational moments. Others may only want ads with the greatest depth of appeal: the ads with the greatest number of attention-getting, branded, and motivational points within each.

Although integrated marketing communications is more than just an advertising campaign, the bulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, the bulk of the research budget is also spent on these elements of the campaign. Once the key marketing pieces have been tested, the researched elements can then be applied to other contact points: letterhead, packaging, logistics, customer service training, and more, to complete the IMC cycle.

MARKETING COMMUNICATION

As the term suggests, marketing communication functions within a marketing framework.

Traditionally known as the promotional element of the four Ps of marketing (product, place,

price, and promotion), the primary goal of marketing communication is to reach a defined

audience to affect its behavior by informing, persuading, and reminding. Marketing

communication acquires new customers for brands by building awareness and encouraging trial.

Marketing communication also maintains a brand's current customer base by reinforcing their

purchase behavior by providing additional information about the brand's benefits. A secondary

goal of marketing communication is building and reinforcing relationships with customers,

prospects, retailers, and other important stakeholders.

Successful marketing communication relies on a combination of options called the promotional

mix. These options include advertising, sales promotion, public relations, direct marketing, and

personal selling. The Internet has also become a powerful tool for reaching certain important

audiences. The role each element takes in a marketing communication program relies in part on

whether a company employs a push strategy or a pull strategy. A pull strategy relies more on

consumer demand than personal selling for the product to travel from the manufacturer to the

end user. The demand generated by advertising, public relations, and sales promotion "pulls" the

good or service through the channels of distribution. A push strategy, on the other hand,

emphasizes personal selling to push the product through these channels.

Figure 1

Elements of Marketing Communication

For marketing communication to be successful, however, sound management decisions

must be made in the other three areas of the marketing mix: the product, service or idea

itself; the price at which the brand will be offered; and the places at or through which

customers may purchase the brand. The best promotion cannot overcome poor product

quality, inordinately high prices, or insufficient retail distribution.

Likewise, successful marketing communication relies on sound management decisions

regarding the coordination of the various elements of the promotional mix. To this end,

a new way of viewing marketing communication emerged in the 1990s. Called

integrated marketing communication, this perspective seeks to orchestrate the use of all

forms of the promotional mix to reach customers at different levels in new and better

ways.

INTEGRATED MARKETING COMMUNICATION

The evolution of this new perspective has two origins. Marketers began to realize that

advertising, public relations, and sales were often at odds regarding responsibilities,

budgets, management input and myriad other decisions affecting the successful

marketing of a brand. Executives in each area competed with the others for resources

and a voice in decision making. The outcome was inconsistent promotional efforts,

wasted money, counterproductive management decisions, and, perhaps worst of all,

confusion among consumers.

Secondly, the marketing perspective itself began to shift from being market oriented to

market driven. Marketing communication was traditionally viewed as an inside-out way

of presenting the company's messages. Advertising was the dominant element in the

promotional mix because the mass media could effectively deliver a sales message to a

mass audience. But then the mass market began to fragment. Consumers became better

educated and more skeptical about advertising. A variety of sources, both controlled by

the marketer and uncontrolled, became important to consumers. News reports, word-

of-mouth, experts' opinions, and financial reports were just some of the "brand

contacts" consumers began to use to learn about and form attitudes and opinions about

a brand or company, or make purchase decisions. Advertising began to lose some of its

luster in terms of its ability to deliver huge homogeneous audiences. Companies began

to seek new ways to coordinate the multiplicity of product and company messages being

issued and used by consumers and others.

Thus, two ideas permeate integrated marketing communication: relationship building

and synergy. Rather than the traditional inside-out view, IMC is seen as an outside-in

perspective. Customers are viewed not as targets but as partners in an ongoing

relationship. Customers, prospects, and others encounter the brand and company

through a host of sources and create from these various contacts ideas about the brand

and company. By knowing the media habits and lifestyles of important consumer

segments, marketers can tailor messages through media that are most likely to reach

these segments at times when these segments are most likely to be receptive to these

messages, thus optimizing the marketing communication effort.

Ideally, IMC is implemented by developing comprehensive databases on customers and

prospects, segmenting these current and potential customers into groups with certain

common awareness levels, predispositions, and behaviors, and developing messages and

media strategies that guide the communication tactics to meet marketing objectives. In

doing this, IMC builds and reinforces mutually profitable relationships with customers

and other important stakeholders and generates synergy by coordinating all elements in

the promotional mix into a program that possesses clarity, consistency, and maximum

impact.

Practitioners and academics alike, however, have noted the difficulty of effectively

implementing IMC. Defining exactly what IMC is has been difficult. For example,

merely coordinating messages so that speaking "with one clear voice" in all promotional

efforts does not fully capture the meaning of IMC. Also, changing the organization to

accommodate the integrated approach has challenged the command and control

structure of many organizations. However, studies suggest that IMC is viewed by a vast

majority of marketing executives as having the greatest potential impact on their

company's marketing strategies, more so than the economy, pricing, and globalization.

ADVERTISING

Advertising has four characteristics: it is persuasive in nature; it is non-personal; it is

paid for by an identified sponsor; and it is disseminated through mass channels of

communication. Advertising messages may promote the adoption of goods, services,

persons, or ideas. Because the sales message is disseminated through the mass media—

as opposed to personal selling—it is viewed as a much cheaper way of reaching

consumers. However, its non-personal nature means it lacks the ability to tailor the

sales message to the message recipient and, more importantly, actually get the sale.

Therefore, advertising effects are best measured in terms of increasing awareness and

changing attitudes and opinions, not creating sales. Advertising's contribution to sales is

difficult to isolate because many factors influence sales. The contribution advertising

makes to sales are best viewed over the long run. The exception to this thinking is within

the internet arena. While banner ads, pop-ups and interstitials should still be viewed as

brand promoting and not necessarily sales drivers, technology provides the ability to

track how many of a website's visitors click the banner, investigate a product, request

more information, and ultimately make a purchase.

Through the use of symbols and images advertising can help differentiate products and

services that are otherwise similar. Advertising also helps create and maintain brand

equity. Brand equity is an intangible asset that results from a favorable image,

impressions of differentiation, or consumer attachment to the company, brand, or

trademark. This equity translates into greater sales volume, and/or higher margins, thus

greater competitive advantage. Brand equity is established and maintained through

advertising that focuses on image, product attributes, service, or other features of the

company and its products or services.

Cost is the greatest disadvantage of advertising. The average cost for a 30-second spot

on network television increased fivefold between 1980 and 2005. Plus, the average cost

of producing a 30-second ad for network television is quite expensive. It is not

uncommon for a national advertiser to spend in the millions of dollars for one 30-

second commercial to be produced. Add more millions on top of that if celebrity talent is

utilized.

Credibility and clutter are other disadvantages. Consumers have become increasingly

skeptical about advertising messages and tend to resent advertisers' attempt to

persuade. Advertising is everywhere, from network television, to daily newspapers, to

roadside billboards, to golf course signs, to stickers on fruit in grocery stores. Clutter

encourages consumers to ignore many advertising messages. New media are emerging,

such as DVRs (digital video recorders) which allow consumers to record programs and

then skip commercials, and satellite radio which provides a majority of its channels

advertising free.

PUBLIC RELATIONS

Public relations is defined as a management function which identifies, establishes, and

maintains mutually beneficial relationships between an organization and the publics

upon which its success or failure depends. Whereas advertising is a one-way

communication from sender (the marketer) to the receiver (the consumer or the retail

trade), public relations considers multiple audiences (consumers, employees, suppliers,

vendors, etc.) and uses two-way communication to monitor feedback and adjust both its

message and the organization's actions for maximum benefit. A primary tool used by

public relations practitioners is publicity. Publicity capitalizes on the news value of a

product, service, idea, person or event so that the information can be disseminated

through the news media. This third party "endorsement" by the news media provides a

vital boost to the marketing communication message: credibility. Articles in the media

are perceived as being more objective than advertisements, and their messages are more

likely to be absorbed and believed. For example, after the CBS newsmagazine 60

Minutes reported in the early 1990s that drinking moderate amounts of red wine could

prevent heart attacks by lowering cholesterol, red wine sales in the United States

increased 50 percent. Another benefit publicity offers is that it is free, not considering

the great amount of effort it can require to get out-bound publicity noticed and picked

up by media sources.

Public relations' role in the promotional mix is becoming more important because of

what Philip Kotler describes as an "over communicated society." Consumers develop

"communication-avoidance routines" where they are likely to tune out commercial

messages. As advertising loses some of its cost-effectiveness, marketers are turning to

news coverage, events, and community programs to help disseminate their product and

company messages. Some consumers may also base their purchase decisions on the

image of the company, for example, how environmentally responsible the company is.

In this regard, public relations plays an important role in presenting, through news

reports, sponsorships, "advertorials" (a form of advertising that instead of selling a

product or service promotes the company's views regarding current issues), and other

forms of communication, what the company stands for.

DIRECT MARKETING AND DATABASE MARKETING

DIRECT MARKETING.

Direct marketing, the oldest form of marketing, is the process of communicating directly

with target customers to encourage response by telephone, mail, electronic means, or

personal visit. Users of direct marketing include retailers, wholesalers, manufacturers,

and service providers, and they use a variety of methods including direct mail,

telemarketing, direct-response advertising, online computer shopping services, cable

shopping networks, and infomercials. Traditionally not viewed as an element in the

promotional mix, direct marketing represents one of the most profound changes in

marketing and promotion in the last 25 years. Aspects of direct marketing, which

includes direct response advertising and direct mail advertising as well as the various

research and support activities necessary for their implementation, have been adopted

by virtually all companies engaged in marketing products, services, ideas, or persons.

Direct marketing has become an important part of many marketing communication

programs for three reasons. First, the number of two-income households has increased

dramatically. About six in every ten women in the United States work outside the home.

This has reduced the amount of time families have for shopping trips. Secondly, more

shoppers than ever before rely on credit cards for payment of goods and services. These

cashless transactions make products easier and faster to purchase. Finally, technological

advances in telecommunications and computers allow consumers to make purchases

from their homes via telephone, television, or computer with ease and safety. These

three factors have dramatically altered the purchasing habits of American consumers

and made direct marketing a growing field worldwide.

Direct marketing allows a company to target more precisely a segment of customers and

prospects with a sales message tailored to their specific needs and characteristics.

Unlike advertising and public relations, whose connections to actual sales are tenuous or

nebulous at best, direct marketing offers accountability by providing tangible results.

The economics of direct marketing have also improved over the years as more

information is gathered about customers and prospects. By identifying those consumers

they can serve more effectively and profitably, companies may be more efficient in their

marketing efforts. Whereas network television in the past offered opportunities to reach

huge groups of consumers at a low cost per thousand, direct marketing can reach

individual consumers and develop a relationship with each of them.

Research indicates that brands with strong brand equity are more successful in direct

marketing efforts than little-known brands. Direct marketing, then, works best when

other marketing communication such as traditional media advertising supports the

direct marketing effort.

Direct marketing has its drawbacks also. Just as consumers built resistance to the

persuasive nature of advertising, so have they with direct marketing efforts. Direct

marketers have responded by being less sales oriented and more relationship oriented.

Also, just as consumers grew weary of advertising clutter, so have they with the direct

marketing efforts. Consumers are bombarded with mail, infomercials, and

telemarketing pitches daily. Some direct marketers have responded by regarding privacy

as a customer service benefit. Direct marketers must also overcome consumer mistrust

of direct marketing efforts due to incidents of illegal behavior by companies and

individuals using direct marketing. The U.S. Postal Service, the Federal Trade

Commission, and other federal and state agencies may prosecute criminal acts. The

industry then risks legislation regulating the behavior of direct marketers if it is not

successful in self-regulation. The Direct Marketing Association, the leading trade

organization for direct marketing, works with companies and government agencies to

initiate self-regulation. In March of 2003 the National Do Not Call Registry went into

affect whereby consumers added their names to a list that telemarketers had to

eliminate from their out-bound call database.

DATABASE MARKETING.

Database marketing is a form of direct marketing that attempts to gain and reinforce

sales transactions while at the same time being customer driven. Successful database

marketing continually updates lists of prospects and customers by identifying who they

are, what they are like, and what they are purchasing now or may be purchasing in the

future. By using database marketing, marketers can develop products and/or product

packages to meet their customers' needs or develop creative and media strategies that

match their tastes, values, and lifestyles. Like IMC, database marketing is viewed by

many marketers as supplanting traditional marketing strategies and is a major

component of most IMC programs.

At the core of database marketing is the idea that market segments are constantly

shifting and changing. People who may be considered current customers, potential

customers, and former customers and people who are likely never to be customers are

constantly changing. By identifying these various segments and developing a working

knowledge of their wants, needs, and characteristics, marketers can reduce the cost of

reaching non-prospects and build customer loyalty. Perhaps the most important role of

database marketing is its ability to retain customers. The cumulative profit for a five-

year loyal customer is between seven and eight times the first-year profit.

Since database marketing is expensive to develop and complex to implement effectively,

companies considering database marketing should consider three important questions.

First, do relatively frequent purchasers or high dollar volume purchasers for the brand

exist? Secondly, is the market diverse enough so that segmenting into subgroups would

be beneficial? Finally, are there customers that represent opportunities for higher

volume purchases?

SALES PROMOTION/SPONSORSHIPS/ EXHIBITIONS

SALES PROMOTION.

Sales promotions are direct inducements that offer extra incentives to enhance or

accelerate the product's movement from producer to consumer. Sales promotions may

be directed at the consumer or the trade. Consumer promotions such as coupons,

sampling, premiums, sweepstakes, price packs (packs that offer greater quantity or

lower cost than normal), low-cost financing deals, and rebates are purchase incentives

in that they induce product trial and encourage repurchase. Consumer promotions may

also include incentives to visit a retail establishment or request additional information.

Trade promotions include slotting allowances ("buying" shelf space in retail stores),

allowances for featuring the brand in retail advertising, display and merchandising

allowances, buying allowances (volume discounts and other volume-oriented

incentives), bill back allowances (pay-for-performance incentives), incentives to

salespeople, and other tactics to encourage retailers to carry the item and to push the

brand.

Two perspectives may be found among marketers regarding sales promotion. First, sales

promotion is supplemental to advertising in that it binds the role of advertising with

personal selling. This view regards sales promotion as a minor player in the marketing

communication program. A second view regards sales promotion and advertising as

distinct functions with objectives and strategies very different from each other. Sales

promotion in this sense is equal to or even more important than advertising. Some

companies allocate as much as 75 percent of their advertising/promotion dollars to sales

promotion and just 25 percent to advertising. Finding the right balance is often a

difficult task. The main purpose of sales promotion is to spur action. Advertising sets up

the deal by developing a brand reputation and building market value. Sales promotion

helps close the deal by providing incentives that build market volume.

Sales promotions can motivate customers to select a particular brand, especially when

brands appear to be equal, and they can produce more immediate and measurable

results than advertising. However, too heavy a reliance on sales promotions results in

"deal-prone" consumers with little brand loyalty and too much price sensitivity. Sales

promotions can also force competitors to offer similar inducements, with sales and

profits suffering for everyone.

SPONSORSHIPS.

Sponsorships, or event marketing, combine advertising and sales promotions with

public relations. Sponsorships increase awareness of a company or product, build

loyalty with a specific target audience, help differentiate a product from its competitors,

provide merchandising opportunities, demonstrate commitment to a community or

ethnic group, or impact the bottom line. Like advertising, sponsorships are initiated to

build long-term associations. Organizations sometimes compare sponsorships with

advertising by using gross impressions or cost-per-thousand measurements. However,

the value of sponsorships can be very difficult to measure. Companies considering

sponsorships should consider the short-term public relations value of sponsorships and

the long-term goals of the organization. Sports sponsorships make up about two-thirds

of all sponsorships.

EXHIBITS.

Exhibits, or trade shows, are hybrid forms of promotion between business-to-business

advertising and personal selling. Trade shows provide opportunities for face-to-face

contact with prospects, enable new companies to create a viable customer base in a

short period of time, and allow small and midsize companies that may not be visited on

a regular basis by salespeople to become familiar with suppliers and vendors. Because

many trade shows generate media attention, they have also become popular venues for

introducing new products and providing a stage for executives to gain visibility.

PERSONAL SELLING

Personal selling includes all person-to-person contact with customers with the purpose

of introducing the product to the customer, convincing him or her of the product's value,

and closing the sale. The role of personal selling varies from organization to

organization, depending on the nature and size of the company, the industry, and the

products or services it is marketing. Many marketing executives realize that both sales

and non-sales employees act as salespeople for their organization in one way or another.

One study that perhaps supports this contention found that marketing executives

predicted greater emphasis being placed on sales management and personal selling in

their organization than on any other promotional mix element. These organizations

have launched training sessions that show employees how they act as salespeople for the

organization and how they can improve their interpersonal skills with clients,

customers, and prospects. Employee reward programs now reward employees for their

efforts in this regard.

Personal selling is the most effective way to make a sale because of the interpersonal

communication between the salesperson and the prospect. Messages can be tailored to

particular situations, immediate feedback can be processed, and message strategies can

be changed to accommodate the feedback. However, personal selling is the most

expensive way to make a sale, with the average cost per sales call ranging from $235 to

$332 and the average number of sales calls needed to close a deal being between three

and six personal calls.

Sales and marketing management classifies salespersons into one of three groups:

creative selling, order taking, and missionary sales reps. Creative selling jobs require the

most skills and preparation. They are the "point person" for the sales function. They

prospect for customers, analyze situations, determine how their company can satisfy

wants and needs of prospects, and, most importantly, get an order. Order takers take

over after the initial order is received. They handle repeat purchases (straight rebuys)

and modified rebuys. Missionary sales reps service accounts by introducing new

products, promotions, and other programs. Orders are taken by order takers or by

distributors.

INTERNET MARKETING

Just as direct marketing has become a prominent player in the promotional mix, so too

has the Internet. Virtually unheard of in the 1980s, the 1990s saw this new medium

explode onto the scene, being adopted by families, businesses and other organizations

more quickly than any other medium in history. Web sites provide a new way of

transmitting information, entertainment, and advertising, and have generated a new

dimension in marketing: electronic commerce. E-commerce is the term used to describe

the act of selling goods and services over the Internet. In other words, the Internet has

become more that a communication channel; it is a marketing channel itself with

companies such as Amazon.com, CDNow, eBay, and others selling goods via the

Internet to individuals around the globe. In less than 10 years advertising expenditures

on the Internet will rival those for radio and outdoor. Public relations practitioners

realize the value that web sites offer in establishing and maintaining relationships with

important publics. For example, company and product information can be posted on the

company's site for news reporters researching stories and for current and potential

customers seeking information. Political candidates have web sites that provide

information about their background and their political experience.

The interactivity of the Internet is perhaps its greatest asset. By communicating with

customers, prospects, and others one-on-one, firms can build databases that help them

meet specific needs of individuals, thus building a loyal customer base. Because the cost

of entry is negligible, the Internet is cluttered with web sites. However, this clutter does

not present the same kind of problem that advertising clutter does. Advertising and

most other forms of promotion assume a passive audience that will be exposed to

marketing communication messages via the mass media or mail regardless of their

receptivity. Web sites require audiences who are active in the information-seeking

process to purposely visit the site. Therefore, the quality and freshness of content is vital

for the success of the web site.

THE FUTURE OF MARKETING COMMUNICATION

Marketing communication has become an integral part of the social and economic

system in the United States. Consumers rely on the information from marketing

communication to make wise purchase decisions. Businesses, ranging from

multinational corporations to small retailers, depend on marketing communication to

sell their goods and services. Marketing communication has also become an important

player in the life of a business. Marketing communication helps move products, services,

and ideas from manufacturers to end users and builds and maintains relationships with

customers, prospects, and other important stakeholders in the company. Advertising

and sales promotion will continue to play important roles in marketing communication

mix. However, marketing strategies that stress relationship building in addition to

producing sales will force marketers to consider all the elements in the marketing

communication mix. In the future new information gathering techniques will help

marketers target more precisely customers and prospects using direct marketing

strategies. New media technologies will provide businesses and consumers new ways to

establish and reinforce relationships that are important for the success of the firm and

important for consumers as they make purchase decisions. The Internet will become a

major force in how organizations communicate with a variety of constituents,

customers, clients, and other interested parties.

Collected by K. Siva Theja

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