1    

Services marketing

Assignment # 1

Industry Analysis

Advertising Industry

Submitted by:-

Group Number 3

Kirti Rai Chanchal(14PGP084)

Swarit Yadav(14PGP051)

Swati Khobragade(14PGP023)

Arghya Das(14PGP005)

2    

Trends in Advertising Industry

1. Growth in New Media

The quick increment in Mobile and wireless connections has impelled the web penetration in India. Indeed, individuals now need more information. India has seen fabulous advance in online classifieds and gaming. It is important the way that one needs to ascribe this accomplishment to 3G upset. With the approach of 4G, things are just going to improve. Indeed in India print advertising records for 46% share in Advertising industry.

2. Job of ad agencies shifted from creating acts not ads

Advertisements no longer merely serve the purpose of selling products, but now sells Utilities & Features. An advertisement is no longer meant to merely provide information. Advertisement's job has shifted to generating interest amongst customers and with social media & creative advertising campaigns coming into picture, one cannot use the conventional advertising methods.

In today's integrated world, messages delivered through advertisements have become more visceral & participatory.

3. Content Marketing

Content marketing incorporates advertorials (daily paper or magazine articles that are composed editorially to promote your offering), blogs or whatever other sort of substance that is distributed on the web for special purposes. As a type of advertising, content marketing is compelling at creating awareness regarding the matter of brand promotions. Since the ascent of social networking, content marketing has fortified connection between customers and brands.

4. Online Advertising

Advertisers are using tools such as Google Ad Words to create online advertising campaigns. Other trends in online advertising include marketing efforts such as search engine optimization, it is the process of using keywords to get a website to rank higher in results as opposed to using Ad Words.

5. Other latest trends in Advertising field

• New advertisers are making efforts to reach their focused target groups in their own style. • Improvement in the infrastructure like bus shelter, LED billboards is driving the growth. • Digital advertising has raised the creative bar for a agencies. Recent example being the British

Airways ad. • Smartphone, tablets shall help OOH gain transaction. Any good creative OOH shall get

noticed and people will tweet about it. Thus, helping gain transaction and visibility. • Integration of different media is inevitable to drive the growth.

Role of Technology in Advertising Industry

Advances in technology have allowed for more innovative approaches to out-of-home advertising,

with location technology used to offer more immersive, interactive experiences for consumers.

3    

Companies are customizing their ads toward specific audiences, and even zapping ads to cell phones

and Palm pilots. Web surfers can interact with ads in greater depth, and they can benefit directly from

an ad’s personalized message.

Research Tools Modern technology greatly enhances advertisers ability to perform market research and testing when developing ads. Extensive collections of consumer data can be obtained online, and the results of feedback and opinions can be analyzed instantly with computers. Virtual focus groups can bring together people on opposite sides of the world to view and provide feedback on advertisements, and opinion leaders can be engaged via online surveys that expose the viewer to a proposed ad while soliciting feedback.

Development Tools

Modern video editing equipment can be used to create ads with awow factor--something that catches viewers; attention and keeps them glued to the screen. Enhancements in computer animation allow advertisers to create lifelike settings, characters and action that could never be achieved only 40 years ago. Special effects also allows ads to fully leverage the marketing appeal of popular movies and television shows, making the obvious product appeal the only thing that differentiates the ad from the movie or show.

Major Competitors of Advertising Industry

1. In-house social media team or In house promotional team:-

A recent example was splendor classic pro advertisement which was created by an in house team of HERO and no advertising agency was hired for it. So sometimes it happens that the parent company itself make a inhouse team to create content.

Today companies are moving from monologue to dialogue and are focused towards the engagement of consumers towards the brands. The engagement can be increased with the help of social media marketing where the company addreses the issues faced by the consumers and reply as in a personality of the brand.

2. Customer relationship management:-

We can take the example of Haldiram which has taken the route of franchise and also standardizing the process of service delivery. Haldiram maintains a good relationship with its franchisee customers to deliver the same exact standard products in service. Haldiram is not using the advertising route to reach the mass media instead maintaining the good relationships with the customers.

3. word of mouth publicity:-

We can take the example of hotels which do not advertise in television or anywhere but has somevery high standards in service, that pass on through word of mouth to us. Few examples are taj hotels, radison blue.

4. Event management companies:-

4    

Companies are now interacting with consumers by associating themselves with some live events. Here event management companies replaces the advertising companies. Wizcraft company organizes new product launch parties.

5. Expo and trade fares:

Many companies do lunch their product in the expo and trade fairs which serves as a substitute of advertising agency.

Aquila motorcycles launch their product in trade fares and auto expo in india.

Advertising Industry on Tangibility Spectrum

 

 

Tangibility  Spectrum  

 

 

 

 

 

 

Tangibility  spectrum  includes  dividing  goods  and  services  industries  are  offering  on  a  horizontal  line  from  pure  tangible  goods  and  pure  intangible  services.    advertising  agencies  are  placed  just  beside  the  vertical  line  partitioning  tangible  dominant  and  intangible  dominant  in  two  halves.  

 It  is  mainly  because  along  with  the  intangible  services  that  are  main  offerings  of  the  advertising  agencies  like  promotions,  audience  engagement  ,  branding  and  positioning  it  also  includes  certain  tangible  form  of  offerings  like  banners  and  print  ads  etc.  

Product/Services  Mix  (offerings)  Ogilvy  and  Mather:  

It  takes  a  holistic  approach  to  the  development  and  production  of  brand-­‐funded  content  and  original  entertainment.  With  a  diverse  team  of  marketers  and  entertainment  executives,  it  weaves  a  brand’s  DNA  into  engaging  content  and  activates  a  360-­‐degree  marketing  program,  effectively  communicating  with  consumers  through  a  variety  of  media  platforms.  

Ogilvy  focuses  on  advertising,  marketing,  public  relations;branding  and  identity;  shopper  and  retail  marketing;  healthcare  communications;  direct,  digital,  promotion  and  relationship  marketing.  

• Advertising  • Brand  Identity  

Intangible  Dominant  

Advertising  Agency  

Tangible  Dominant  

5    

• Creative  Design  • Customer  Analytics  • Crisis  and  Issues  Management  • Direct  Marketing  • Digital  Production    • Digital  Media  &  Search  Marketing  • Digital  Marketing  • Experiential  Marketing  • Media  Relations  • Promotional  Marketing  • Public  Relations  • Public  Affairs  • Retail  Design  • Strategic  Planning  • Sustainability  • Sales  Acceleration  • Trade  Marketing  • Viral  Marketing  • Loyalty  Marketing  

SWOT  Analysis  

STRENGTHS                                                

• Experience                                                                                                    • Global  Presence  In  Markets  • Brand  Equity  • Manpower                                                                                                              • Rural  Marketing  • Creativity  

WEAKNESS  

• Pricing  Strategy  • Old  School  Concept  OfAdvertising  

OPPORTUNITIES                                                    

• Using  old  clients                                                      • Brand  Image                                                                  • Untapped  areas  like  web  marketing  

THREATS  

• Economic  crisis  

6    

• Tough  competition  • Changes  in  the  taste  &  preferences  of  clients