A PROJECT ON IMPACT OF ADVERTISING IN INTERNATIONAL MARKETING AT TRAVEL FOOD SERVICE SUBMITTED FOR THE PARTIAL FULFILLMENT OF MBA DEGREE

OF AMITY UNIVERSITY, UTTAR PRADESH IN THE FACULTY OF MANAGEMENT BY MOHAMMAD MAQSOOD 18080419233

UNDER THE SUPERVISION OF Mr. GAURAV DUBEY ASST. MANAGER SALES At premier shield pvt. Ltd

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CERTIFICATE
This is to certify that the project work entitled IMPACT OF ADVERTISING IN INTERNATIONAL MARKETING in Travel food services is a record of bonafide work carried out by Mr. MOHAMMAD MAQSOOD under my supervision towards partial fulfillment of the management programme course MBA 3yr (A Distance Learning programme) of the Amity University, Noida I wish him good luck and success in her future endeavors.

Place: I.G I. Airport New Delhi (Asst.Manager sales)

Mr. Gaurav Dubey

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CERTIFICATE
I MOHAMMAD MAQSOOD certify that the Project Report entitled IMPACT OF ADVERTISING IN INTERNATIONAL MARKETING in TRAVEL FOOD SERVICES is an original one and hasnt been submitted earlier either to Amity University Noida or to any other institution for fulfillment of the requirement of a course of management programme MBA.

Place: I.G.I Airport, New Delhi

MOHAMMAD MAQSOOD 18080419233

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ACKNOWLEDGEMENTS
In pursuing and completion of my MBA and other commitments, I undertook the task of completing my project on Impact of Advertising in International Marketing. To this and I would like to thank and convey my gratitude to the Top Management of Travel food services who allowed me to conduct my project and gave me their whole-hearted support. I also record my thanks to all the employees who helps me in my project without their cooperation my project wouldnt been successful. I would like to take this opportunity to express my heartfelt gratitude to respected Mr. Veer Bahadur The Operation Manager , for his round the clock enthusiastic support, noble guidance and encouragement, which made this project successful Finally, I also acknowledge with deep gratitude, the immense support I received from my family members who have always encouraged me and have been source of inspiration and help in continuing my effort. Last but not the least my special thanks go to all those who have given all the secretarial support despite all other commitments.

Mohammad Maqsood

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CONTENTS
Certificate Certificate Acknowledgement About The Project CHAPTER 1 1.1 Introduction
1.2 Types of Retail Outlets 1.3 How Does Retail Works

2 3 4 33 RETAIL 13 14 17 19 21 23 25

1.4 Retail Pricing

1.5 Role of Advertising in Retail 1.6 Store Design and Outlet 1.7 Retail Store Operations

CHAPTER 2 2.1 History

TRAVEL FOOD SERVICE: A COMPANY 28 28 29 29 29 29

2.1A. An Inspiring Vision 2.1B Culinary Artisans 2.1C We Believe 2.1D Our Mission 2.1EOur Vision

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2.2 Brands Partner Brands Proprietor Brands 2.3 Brands in Detail 2.4 Global Market Position CHAPTER 3 3.1 Introduction 3.2 International marketing: A global market place
Globalization of markets & competition Trade balances & Exchange Rates Measuring Country Wealth

30

31 33

INTERNATIONAL MARKETING 37 37 37 38 38 38 38

3.3 International product life cycle 3.4 Methods of Entry in Foreign Market CHAPTER 4 4.1 Introduction 4.1A. Niche segments 4.1B. Advertising Campaign 4.2Classification of Advertising Print Advertising Broadcast Advertising Outdoor Advertising Covert Advertising Public Service Advertising ADVERTISING

41 41 41 42 43 43 43 43 43

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4.3 Historical Milestones in Advertising 4.3A. Advertising Milestones Digital signage 4.3B. Advertising two Important virtues CHAPTER 5 ADVERTISING: IMPORTANCE AND ROLE

43 44 44

5.1 Importance of Advertising

1. Producers and traders

47 47 49 50 51 51 51 51 52

2. Customers
3. society

5.2 Role of Advertising Form of Communication Advertising agencies Media Advertising Agencies Team Format basis CHAPTER 6 INTERNATIONAL ADVERTISING CONCEPT

6.1 Need of advertising 6.2 International Advertising helps 6.3 International Advertising Concept 6.4 Ef fective ness of Advrtising in international Market 6.5 Standardization VS Localization 6.6 International Advertising as a Social Force 6.7 Conclusion

54 55 55 57 60 63 64

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CHAPTER 7

ADVERTISING PLANNING 68 69 70 70 71 72 73 75 77 79

7.1 Why you need a marketing plan first 7.2 Why you need and advertising plan 7.3 Create an effective advertising planning 7.4 Define your customers 7.5 Define what makes you unique 7.6 Set advertising goals and objectives 7.7 Set a sustainable budget for your advertising 7.8 Choose your media 7.9 Timing and scheduling 7.10 Dont reinvent the wheel CHAPTER- 8 8.1 Introduction 8.2 Objectives A. Customer Benefit B. Customer Profile C. Market Customer CONSUMER & MARKET ANALYSIS

83 83 84 87 89

CHAPTER 9 9.1 Introduction

MARKETING PLAN 93 93 94

9.2 Marketing Planning & Process 9.3 Planning & Objectives

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9.4 Detail of the Marketing Plan 9.5 Content of the Marketing Plan 9.6 Measurement of Progress 9.7 Performance Analysis 9.8 Budgets as Managerial Tools

97 98 99 99 101

CHAPTER 10 10.1 Introduction

ADVERTISING COMMUNICATION SYSTEM 103 103 103 105 107

10.2 Elements of Advertisement Communication System A. Marketing Communication System B. Customer Communication System 10.3 Factors Affecting Advertising Campaign

CHAPTER11 11.1Introduction

ADVERTISING: MESSAGES STRATEGY & TACTICS 111 111 111 112 113 113 116 117 119 123 126 128

11.2 Comparative Advertising 11.3 Effectiveness of Comparative Advertisement 11.4 Misidentification 11.5 Leaders Vs Followers 11.6 Effects on Persuasion 11.7 Refunctioning Adventism 11.8 Emotional Creative Approaches 11.9 Copywriting 11.10 Advertising on the Internet 11.11 Types of T.V. Channels 11.12 Creative Styles
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CHAPTER 12 12.1 Advertising Cost

ADVERTISING COSTS & EXPENDITURE 130 131 B.Magazine Advertising D.Online Advertising F. PPC Advertising H. Television Advertising J. Web Advertising L. Vehicle Advertising N. Electronic Advertising 146

12.2 Types of Advertising: Cost and Expenditure A. Internet advertising C. Newspaper Advertising E. Outdoor Advertising G. Radio Advertising I. T.V. Advertising K. Cinema Advertising M. Moblile Phone Advertising 12.3 Advertising Expenditure CHAPTER 13 ADVERTISING: COMPANIES & AGENCIES INDIA & WORLDWIDE 13.1 Top Advertising Companies of India 13.2 Advertising Agencies World Wide 13.3 Worldwide Revenue 13.4 Fact files CHAPTER 14 BRAND AMBASSADORS: EFFECT ON INTERNATIONAL MARKETING 14.1 Brand Ambassadors & Effect on International marketing A. Trade Show Model 156 B. Convention Model
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148 150 152 153

155

157

14.2 Indias Top Celebritys 14.3 Brand Ambassadors of Various Companies CHAPTER 15 15.1 Sale of Coke 15.2 Sale of Pepsi 15.3 Composition of Advertising on T.V. of Coke & Pepsi 15.4 Sale of Hero Honda 15.5 Hero Honda CHAPTER 16 ADVERTISING LEGENDS IMPACT OF ADVERTISING ON SALES

157 159

168 169 171 172 173

1. Mr. A.G. Krishnamurthy 2. Mr. Brendon Pereira 3. Mr. Elsie Nanji 4. Mr. Freddy Birdie 5. Mr. Gopi Kikde 6. Mr. Ivan Arthur 7. Mr. Naved Akhtar 8. MR. Panna Jain 9. Mr. Subrata Bhowmick 10. Mr. Prasoon Joshi 11. Mr. Alyque Padamsee

175 175 176 177 177 178 178 179 179 180 181

METHODOLOGY RECOMMENDATIONS CONCLUSIONS KEY LEARINING EXPERIENCES REFERENCES

182 184 185 186 187

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***************************************************************************** * ***************************************************************************** *

CHAPTER 1
*RETAIL*
1.8 Introduction 1.9 Types 1.10 1.11

13 14 17

of Retail Outlets

How Does Retail Works Retail Pricing 17

1.12 1.13 1.14

Role of Advertising in Retail Store Design and Outlet Retail Store Operations

21 23 25

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1.1 INTRODUCTION: About Retail

Retail involves the sale of goods from a single point (malls, markets, department stores etc) directly to the consumer in small quantities for his end use. In a laymans language, retailing is nothing but transaction of goods between the seller and the end user as a single unit (piece) or in small quantities to satisfy the needs of the individual and for his direct consumption. Let us understand the concept with the help of an example. Tim wanted to purchase a mobile handset. He went to the nearby store and purchased one for himself. In the above case, Tim is the buyer who went to a fixed location (in this case the nearby store).He purchased a mobile handset (Quantity - One) to be used by him. An example of retail. The store from where Tim purchased the handset must have shown him several options for him to select one according to his budget and need. From where do you think the store owner (also called the retailer) purchased all the handsets? Here the manufacturers and the wholesalers come into the picture. The retailers purchase goods in bulk quantities (huge numbers) to be sold to the end-users either directly from the manufacturers or through a wholesaler.

The Supply chain Manufacturers....................... Retailers............... End User . . (Consumer) Wholesalers

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Manufacturers - Manufacturers are the ones who are involved in production of goods with the help of machines, labour and raw materials. Wholesaler - The wholesaler is the one who purchases the goods from the manufacturers and sells to the retailers in large numbers but at a lower price. A wholesaler never sells goods directly to the end users. Retailer - A retailer comes at the end of the supply chain who sells the products in small quantities to the end users as per their requirement and need. The end user goes to the retailer to buy the goods (products) in small quantities to satisfy his needs and demands. The complete process is also called as Shopping.

Shopping - The process of purchasing products by the consumer is called as shopping. However there are certain cases where shopping does not always end in buying of products. Sometimes individuals do go for shopping but return home empty handed. Such a shopping is merely for fun and is called window shopping. In window shopping, individuals generally go to the market, check out various options and their prices but do not buy anything. This kind of shopping helps to break the monotony.

1.2 TYPES OF RETAIL OUTLETS:

Department Stores A department store is a set-up which offers wide range of products to the end-users under one roof. In a department store, the consumers can get almost all the products they aspire to shop at one place only. Department stores provide a wide range of options to the consumers and thus fulfill all their shopping needs. Merchandise: Electronic Appliances Apparels Jewellery Toiletries Cosmetics Footwear Sportswear Toys Books CDs, DVDs Examples Shoppers Stop, Pantaloon

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Discount Stores Discount stores also offer a huge range of products to the end-users but at a discounted rate. The discount stores generally offer a limited range and the quality in certain cases might be a little inferior as compared to the department stores. Wal-Mart currently operates more than 1300 discount stores in United States. In India Vishal Mega Mart comes under discount store. Merchandise: Almost same as department store but at a cheaper price.

Supermarket A retail store which generally sells food products and household items, properly placed and arranged in specific departments is called a supermarket. A supermarket is an advanced form of the small grocery stores and caters to the household needs of the consumer. The various food products (meat, vegetables, dairy products, juices etc) are all properly displayed at their respective departments to catch the attention of the customers and for them to pick any merchandise depending on their choice and need. Merchandise: Bakery products Cereals Meat Products, Fish products Breads Medicines Vegetables Fruits Soft drinks Frozen Food Canned Juices

Warehouse Stores A retail format which sells limited stock in bulk at a discounted rate is called as warehouse store. Warehouse stores do not bother much about the interiors of the store and the products are not properly displayed.

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Mom and Pop Store (also called Kirana Store in India) Mom and Pop stores are the small stores run by individuals in the nearby locality to cater to daily needs of the consumers staying in the vicinity. They offer selected items and are not at all organized. The size of the store would not be very big and depends on the land available to the owner. They wouldnt offer high-end products. Merchandise: Eggs Bread Stationery Toys Cigarettes Cereals Pulses Medicines

Speciality Stores As the name suggests, Speciality store would specialize in a particular product and would not sell anything else apart from the specific range.Speciality stores sell only selective items of one particular brand to the consumers and primarily focus on high customer satisfaction. Example You will find only Reebok merchandise at Reebok store and nothing else, thus making it a speciality store. You can never find Adidas shoes at a Reebok outlet.

Malls Many retail stores operating at one place form a mall. A mall would consist of several retail outlets each selling their own merchandise but at a common platform.

E Tailers Now a days the customers have the option of shopping while sitting at their homes. They can place their order through internet, pay with the help of debit or credit cards and the products are delivered at their homes only. However, there are chances that the products ordered might not reach in the same condition as they were ordered. This kind of shopping is convenient for those who have a hectic schedule and are reluctant to go to retail outlets. In this kind of shopping; the transportation charges are borne by the consumer itself.

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Example EBAY, Rediff Shopping, Amazon

Dollar Stores Dollar stores offer selected products at extremely low rates but here the prices are fixed. Example 99 Store would offer all its merchandise at Rs 99 only. No further bargaining is entertained. However the quality of the product is always in doubt at the discount stores.

1.3 HOW DOES RETAIL WORKS?

Let us now understand the various ways a consumer can purchase goods from the retailer.

Counter service As the name suggests, counter service refers to the process of procuring the merchandise from the counter. The buyer does not have an easy access to the merchandise of the store and he cant pick up things on his own. In such a mechanism the buyer has to walk up to the counter and ask for his requirements. Example Jewellery Store Can you go to a jewellery store and pick up things on your own ? No You need to ask the sales person to show you the sample designs for you to finalize something as per your taste and pocket. Chemist Shop Chemist shop does not allow the buyers to simply walk into the store and pick up medicines. One needs to walk up to the counter, show his prescription from the doctor to get the medicines from the retailer.

Delivery Service The mechanism of shipping goods to the customers doorsteps is called as delivery service. The end-user does not have to walk up to the store to procure his merchandise; instead the goods are directly delivered to his house through various means of

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transportation. Delivery service is a boon for the individuals who have an extremely busy life style and do not have enough time to walk up to the store. Online Shopping Internet has helped end-users to shop from their homes only. Online shopping sites like Amazon, eBay etc provide a wide range of options to the consumers who can order the desired merchandise through internet. Once the payment is done through debit or credit cards, the goods are delivered at the address the customer requests for. The transportation charges however are borne by the consumer himself. Order through telephone Now a days several restaurants and eating joints provide an option of ordering food while sitting at home. The food outlets upload their complete menu in the website providing a wide range of options to the end-users. One can easily place his order over the phone and the food is delivered at his doorstep within no time. Pizza Hut, Dominos (Promise to deliver hot and crisp pizza within 30 minutes of placing the order)

Door To Door Sales: Door to door sales is a process where the sales person travels from one house to the other and prompts the customers to buy the product. He gives the demo of his product and strives hard to convince the individual to buy the merchandise. Examples Eureka Forbes operates on this mechanism where experienced sales professional visits the doorsteps of the potential customers, gives them presentations and influences them to purchase the product. Telephone companies also sometimes rely on this mechanism to sell their connections.

Self Service: In self service the individuals have the liberty to pick up merchandise on their own and help themselves. Second Hand Retail: In second hand retail shops the retailer sells second hand goods to the end-users. Such shops generally run for charity where people donate their used merchandise to be resold to the poor and needy free of cost.

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1.4 RETAIL PRICING

Cost Plus Pricing Mechanism

Every organization runs to earn profits and so is the retail industry. Cost plus pricing works on the following principle:

Cost Price of the product + Profit (Decided by the retailer) = Final price of the merchandise.

According to cost plus pricing strategy the retailer adds some extra amount to the actual cost price of the product to earn his share of profits. The final price of the merchandise includes the profit as decided by the retailer.
Cost Plus Pricing

Cost plus pricing strategy takes into account the profit of the retailer. Cost plus pricing is an easy way to calculate the price of the merchandise. The increase in the retailer price of the merchandise is directly proportional to the increase in the cost price. The customers however do not have a say in cost plus pricing.

Manufacturer Suggested Retail Price (Also called List Price or Recommended retail price) According to manufacturer suggested retail pricing strategy the retailer sets the final price of the merchandise as suggested by the manufacturer.

MSRP

The retailer sells his merchandise at a price suggested by the manufacturer.

Condition 1

The retailer sells the product at the same price as suggested by the manufacturer.

Condition 2

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The retailer sells the merchandise at a price less than what was suggested by the manufacturer Such a condition arises when the retailer offers Sale on his merchandise.

Condition 3

Retailers initially quote an unreasonably high price and then reduce the price on the customers request to make him realize that a favour has been done to him. A condition of Bargain - where the customer negotiates with the retailer to reduce the price of the merchandise.

Competitive Pricing

The cut throat competition in the current retail scenario has prompted the retailers to guarantee excellent customer service to the buyers for them to prefer them over their competitors.

The price of the merchandise is more or less similar to the competitors but the retailers add on certain attractive benefits for the customers. (Longer payment term, gifts etc.) The retailers ensure that the customers leave their store with a smile to have an edge over the competitors. He tries his level best to offer better services to the customers for a better business in future.

Pricing Below Competition

According to pricing below competition policy

The price of the merchandise is kept lesser than what is being offered by the competitors.

Prestige Pricing (Pricing above competition)

According to prestige pricing mechanism, the price of the merchandise is set slightly above the competitors. The retailer can charge higher price than the competitors only under the following circumstances: Exclusive Brands at the store. Brand image of the store Prime location of the retail store Excellent customer service Merchandise not available at any other store Latest Trends

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Psychological Pricing

Certain price of a product at which the consumer willingly purchases it is called psychological price. The consumer perceives such prices to be correct. A retailer sets a psychological price which he feels would meet the expectations of the buyers and they would easily buy the merchandise.

Multiple Pricing

According to multiple pricing, the retailer sells multiple products (more than one) for a single price. The retailers combine few products to be sold for a single fixed price. 3 Shirts for $100/- or 3 Perfumes for $20/- and so on.

Discount Pricing

According to discount pricing, the retailer sells his merchandise at a discounted price during off seasons or to clear out his stock

1.4 ROLE OF ADVERTISING IN RETAIL

Promoting a brand is more important than opening a store. It is essential to create brand awareness for the customers to know about the brands existence. The retailer must strive hard to communicate the USPs (Unique selling Proposition) of the brand to influence the buying behaviour of the customers. In simpler words, advertisements help the end-users to know to which brand a particular product belongs. Advertisements play a crucial role in promoting a brand and creating its awareness amongst the masses.They help in creating an image of a particular product or brand in the minds of the potential customers. Such a mechanism is also called Brand Positioning. What is Advertising ? Advertising is a medium through which an individual or organization highlights the USPs and benefits of a product or service to influence the buying behaviour of the individuals. It helps to create a positive image of a particular brand in the minds of the customers and prompts them to buy the same.

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Role of Advertising in Retail

The retailer through various ways of advertising strives hard to promote his brand amongst the masses for them to visit the store more often. Advertisements attract the customers into the store. They act as a catalyst in bringing the customers to the stores.

The advertisement must effectively communicate the right message and click on the customers. It should be a visual treat and appeal the end-users. Advertisements have taglines to create awareness of a product or service in the most effective way.

The tagline has to be crisp and impressive to create the desired impact. The tagline should not be lengthy else the effect gets nullified. It has to be catchy. It should be simple to memorize.

The moment an individual hears Just Do it, he knows he has to visit a Nike Store. Thats the importance of a tagline. Modes of Advertising :
1. Nothing works better than promoting a brand through signboards, billboards,

2.

3.

4. 5.

hoardings and banners intelligently placed at strategic locations like railway stations, crowded areas, heavy traffic crossings, bus stands, near cinema halls, residential areas and so on. Such advertising is also called as out of home advertising. Print media is also one of the most effective ways to promote a brand. Newspapers, magazines, catalogues, journals make the brand popular amongst the individuals. Retailers can buy a small space in any of the leading newspapers or magazines; give their ads for the individuals to read and get influenced. Television also helps the brand reach a wider audience. Now a days retailers also use celebrities to endorse their products for that extra zing. Celebrities are shown using the particular brand and thus making it a hit amongst the masses. Radio Advertisements also help in creating brand awareness. Social networking sites have also emerged as one of the easiest and economical ways to promote a product or brand.

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1.5 STORE DESIGN AND LAYOUT:

Opening a retail store is no joke and requires meticulous planning and detailed knowledge. Location Make sure your store is in a prime location and is easily accessible to the end-users. Do not open a store at a secluded place. Floor Plan The retailer must plan out each and everything well, the location of the shelves or racks to display the merchandise, the position of the mannequins or the cash counter and so on.
1. Straight Floor Plan

The straight floor plan makes optimum use of the walls, and utilizes the space in the most judicious manner. The straight floor plan creates spaces within the retail store for the customers to move and shop freely. It is one of the commonly implemented store designs.

2.

Diagonal Floor Plan

According to the diagonal floor plan, the shelves or racks are kept diagonal to each other for the owner or the store manager to have a watch on the customers. Diagonal floor plan works well in stores where customers have the liberty to walk in and pick up merchandise on their own.

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3.

Angular Floor Plan

The fixtures and walls are given a curved look to add to the style of the store. Angular floor plan gives a more sophisticated look to the store. Such layouts are often seen in high end stores.

4.

Geometric Floor Plan

The racks and fixtures are given a geometric shape in such a floor plan. The geometric floor plan gives a trendy and unique look to the store.

5.

Mixed Floor Plan

The mixed floor plan takes into consideration angular, diagonal and straight layout to give rise to the most functional store lay out.

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1.7 RETAIL STORE OPERATIONS:

Store Atmosphere

The store must offer a positive ambience to the customers for them to enjoy their shopping and leave with a smile.

The store should not give a cluttered look. The products should be properly arranged on the shelves according to their sizes and patterns. Make sure products do not fall off the shelves. There should be no foul smell in the store as it irritates the customers. The floor, ceiling, carpet, walls and even the mannequins should not have unwanted spots. Never dump unnecessary packing boxes, hangers or clothes in the dressing room. Keep it clean. Make sure the customers are well attended. Dont allow customers to carry eatables inside the store.

Cash Handling

One of the most important aspects of retailing is cash handling. It is essential for the retailer to track the daily cash flow to calculate the profit and loss of the store. Cash Registers, electronic cash management system or an elaborate computerized point of sale (POS) system help the retailer to manage the daily sales and the revenue generated.

Prevent Shoplifting/Safety and Security

The merchandise should not be displayed at the entry or exit of the store. Do not allow customers to carry more than three dresses at one time to the trial room. Install CCTVs and cameras to keep a close watch on the customers. Each and every merchandise should have a security tag. Ask the individuals to submit carry bags at the security. Make sure the sales representative handle the products carefully. Clothes should not have unwanted stains or dust marks as they lose appeal and fail to impress the customers. Install a generator for power backup and to avoid unnecessary black outs.

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Keep expensive products in closed cabinets. Instruct the children not to touch fragile products. The customers should feel safe inside the store.

Customer Service

Customers are assets of the retail business and the retailer cant afford to lose even a single customer. Greet customers with a smile. Assist them in their shopping. The sales representatives should help the individuals buy merchandise as per their need and pocket. The retailer must not oversell his products to the customers. Let them decide on their own. Give the individual an honest and correct feedback. If any particular outfit is not looking good on anyone, tell him the truth and suggest him some better options. Never compromise on quality of products. Remember one satisfied customer brings five more individuals to the store. Word of mouth plays an important role in Brand Promotion.

Visual Merchandising

The position of dummies should be changed frequently. There should be adequate light in the store. Change the burned out lights immediately. Dont stock unnecessary furniture at the store. Choose light and subtle colours for the walls to set the mood of the walk-ins. Make sure the signage displays all the necessary information about the store and is installed at the right place visible to all. The customers should be able to move and shop freely in the store. The retail store should be well ventilated.

Training Program

The store manager must conduct frequent training programs for the sales representatives, cashier and other team members to motivate them from time to time. It is the store managers responsibility to update his subordinates with the latest softwares in retail or any other developments in the industry. It is the store managers responsibility to collate necessary reports (sales as well as inventory) and send to the head office on a daily basis.

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Inventory and Stock Management

The retailer must ensure to manage inventory to avoid being out of stock. Every retail chain should have its own warehouse to stock the merchandise. Take adequate steps to prevent loss of inventory and stock.

CHAPTER 2
*TRAVEL FOOD SERVICE A COMPANY*
2.1 History 2.1A. An Inspiring Vision 2.1B Culinary Artisans 2.1C We Believe 2.1D Our Mission 2.1EOur Vision 2.2 Brands Partner Brands Proprietor Brands 28 28 29 29 29 29 30

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2.3 Brands in Detail 2.4 Global Market Position 2.1 HISTORY

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Travel Food Services (TFS) was started with one definite purpose, to transform travel by making it more comfortable and convenient for modern day travelers with regards to Food and Beverages. With the ease of contemporary travel making the world a smaller place, and with an increase in all forms of travel, we believe it is essential today to identify the needs of travellers and then create relevant and meaningful solutions for them. In this day and age, airports and other travel and transit venues are melting pots of diverse cultures and identities where people from varied walks of life congregate. For frequent travellers, these venues are often like a second home. At TFS we always endeavour to create solutions that provide travellers with greater choice, comfort and convenience. We are constantly working to dispel the notion that extra time at transit venues can be tedious and taxing and are actively changing the very way in which people perceive travel. Our varied outlay of cuisines is a testament to our efforts to always exceed expectations. We serve up cuisines from every nook and corner of the world, whether it is ethnic Indian fare, established international chains or novel concept restaurants. So whether one sits back and winds down at one of our lounge bars, chooses to have piping hot coffee on-the-go from our select choice of cafes or indulges in some chocolate excess, one will be always be treated to the finest quality and the best standards. Because at TFS, we are intent on transforming travel by making every experience truly enriching and memorable.

2.1A. AN INSPIRING VISIONARY Mr. Sunil Kapur is a visionary business leader responsible for infusing innovation into the food and beverage sector in India. Considered by many as the father of the modern food retail in the country, he has created iconic brands such as Copper Chimney and is the brains behind the establishment of The Blue Foods Corporation a conglomerate with over 200 food outlets across India. With a focus on providing world class food and beverage experiences for travellers and foodies alike, he leads the TFS charge to sustain and strengthen its position as the countrys leading food and beverage concessionaire at travel hubs. For his ongoing and exemplary efforts, Mr. Sunil Kapur was recently honored with the Most Outstanding Individual; Contribution to Airport Food & Beverage award at the Airport Food and Beverage Conference & Awards organized by The Moodie Report in Manchester for the year 2010-2011.
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2.1B. CULINARY ARTISANS We are constantly raising the bar in terms of service and delivery to provide a transformative experience for our customers and partners. We bring together international experience with a distinct Indian insight. Our team comprises of professionals who are experts in their respective fields. We create distinct and distinguished culinary offerings and serve them with innovation and flair. With an unparalleled expertise in food and beverage hospitality, TFS provides both variety and value to todays travellers. 2.1C. WE BELIEVE Creativity, Innovation, Teamwork, Integrity, Trust, Enjoyment and Success. Our values are the core of our organization. Guided by these values, our team has the ability to translate our passion into practice. This passion drives us to constantly innovate and find new ways to create value for our customers. Our continuous training and development programmes enable our employees to communicate our values in every interaction with our customers and stakeholders. 2.1D. MISSION Travel Food Services aims to reach more than 140 million passengers with its food and beverage offerings. TFS plans to expand overseas after firmly establishing a pan India presence and become the leading travel food and beverage company in the Asia Pacific region by 2014 2015." 2.1E. VISION Our vision is to provide transformative food and beverage experiences to passengers, an ideal working environment for our employees and become the preferred business partner for landlords and food and beverage brands for airports, major railway stations and transport hubs throughout the region.

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2.2 BRANDS
Travel Food Service has two Brands : Partner brands and Proprietary brands PARTNER BRANDS Smoke house bar caf KFC The coffee bean & tea leaf MOD- mad over doughnuts Nirulas ice cream Haagen-Dazs Caf-coffee day 4 fingers- crispy chicken Chokola Dominos pizza The square- CCD Ultra bar The signature bar Barista coffee- Lavazza BR- Baskin & Robbins PROPRIETERY BRANDS Cafccino Idli.com
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 Dilli Street -Food-Fresh-Fast Curry kitchen Noodle-Walk Swich- Sandwich juice Ember-Bar

2.3 BRANDS IN DETAIL

PARTNER BRANDS Smoke House- A smokehouse outlet is a building where meat or fish is cured with smoke. The finished product might be stored in the building, sometimes for a year or more. KFC- KFC is betterly known as Kentucky fried chicken. Its a leading fast food restaurants which offers various types of chicken dishes, fried, hot n grilled etc. The coffee bean and Tea leaf- Different types of Tea like Darjeeling, assam, nestley, tata, masala tea and chinease tea like green tea, jasmine, earl grey, chamomile etc and coffee from different region like lavazza, caf late, cape chino, espresso, macchiato, etc are served. MOD- mod signify mad over doughnuts, its served u different types of doughnuts like choco doughnuts, white choco doughnuts, puff doughnuts, cream doughnuts, fillet doughnuts, sugar doughnuts, veg. doughnuts, etc. Nirulas ice cream- It serves u different flavors of ice cream like chocolate, vanilla, butterscotch, blue-berry, manhatten mania, strawberry, delhi delight, tooti fruity etc Haagen-Dazs- U will get different world flavour ice creams and sorbet over here, with a pleasant ambience. Caf coffee day- caf coffee day serves u a pleasants of tea and coffee with some snacks like French fries, veg. cutlets, fish fingers, chicken fritters etc. 4 finger- crispy chicken- It serves u different crispy chicken snacks, grilled fried or batter fried chicken as per your choice. Chakola - Chakola is a perfect gateway of family, friends and groups, u will get good quality of snaks here.

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Dominos pizzaa- its an pizza hut where u will get different types of pizza like pizza Margarita, pizza quatra stagnio, garden fresh, pizza catiliana, naan pizza, capsicum, cheese pizza, choice pizza etc The square CCD- this too offers u a pleasants of snackes and also u can sit and do yr projects here and order something. Ultra Bar- Ultra bar is larger multi-level nightclub appealing largely to the 18-30 crowds. Its laid out to maximize dance floor space for those who really like to dance and party, and it definitely gets wild. Boasting 6 bars, 4 dance floors, 2 mezzanines, and 30+ VIP tables, Ultra bar really sets the standard for Nightclubs in DC. The signature Bar- Offers graphical signature and user bar storage. Visitors can request signatures and user bars or upload their own Barista coffee It serves u different types of coffee from lavazza beans which is top famous names in terms of coffee making. Baskin N Robbins - baskin n robbins is a place where people get their selected I/C. it serves a numerous flavours and all the ice creams are vegetarian. PROPRIETERY BRANDS: Cafeccino Cafeccino offers a friendly and relaxed environment to sip coffee and enjoy a vast array of delicious quick bites such as American bistro fare, sandwiches, desi vadas, samosa, pav bhaji and desserts prepared by its own in-house bakery. Idli.com- idli.com is an experience full of delicious delicacies from southern India. Our chefs churn out varieties of idlis, dosas and uttapams along with flavourful accompaniments such as sambar, chutney and podi, all served hot and fresh. An indulging menu, instant service and tasty fare served in simple ethnic style guarantees a soul-stirring experience. Dilli Street- dilli street is an important and most business scale outlet of TFS at delhi airport. They follow a grab n go system here. It has different section like south Indian, north Indian, they also have medicinal store here, and general store. Curry kitchen- Curry kitchen offers you a wide variety of dishes from classic Indian snacks, kabbas, tikkas, tandoori to wholesome meals, executive lunches and dinners. Noodle walk- Noodle Walk is a food series exploring the noodle and its incarnations across provinces, countries and regions. It will serve up numerous noodles from across Asia, anything from Filipino pancit to Thai padthai to hakka chow mein.

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Swich Sandwich juice- it serves different fresh juices like apple, mango, pommegernite, sugarcane, etc along with nice exotic sandwich across the world like focacia, Club s/w etc. Embar Bar- The Ember Bar is a stunning sky bar that exudes a sense of opulence and serves perfectly prepared drinks. Serving the best of wines, spirits, champagnes and caviar, along with designer entrees, this is a place for those who enjoy the finer side of life.

2.4 GLOBAL MARKET POSTION:

The global market position of TFS is very strong. The company emerges as the biggest competitor in the international market at retail sector. The global phenenmeonon is becoz of their company promotion and other activities. Travel Food Services Chairman Sunil Kapur The Moodie Report that the company plans to open 60,000sq ft of F&B space across Indian travel in the next two years. These will include railway stations and second-tier airports. The company has also tied up a deal with Emirates Flight Catering that plans to develop inflight catering out of Mumbai and also started as an global phenonmenon outside in the middle east like Kuwait, Qatar, Saudi Arabia, Iran, Iraq and other parts in middle east.

2.4A. TFS launches Indias first airport catering services:

1. Travel Food Services (TFS), a company formed by Sunil Kapur, Managing Director, Blue Foods and Amit Thacker from the Thacker Group, has initiated operations as Indias first company to provide airport catering services. 2. Presently, the company is in negotiations with airport developers across the country. It aims to establish its presence at airports in Hyderabad, Mumbai, Delhi, Bangalore,Kolkata, Chennai, Ahmedabad, Goa, Chandigarh and Pune. Other airports will be considered depending upon the number of flights operating from them. 3. Speaking exclusively with Hospitality Biz about the same, Kapur states, This was a previously untapped segment in India and the potential for organized players is tremendous here. Besides, airport catering is quite different from food court catering and requires positioning at the right location, with the right brands. 4. According to Kapur, business turnover at the airport is high with the grab and go. Model operating predominantly. Thus, the company will consider the development of quick service restaurants rather than casual and fine dine concepts.

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5. It has created new brands for operation, like Stravagante, a high end restaurant and bar concept; Spice Bazaar, an Indian fusion cuisine outlet; Noodle Wok, an Oriental cuisine outlet. 6. All the stores will be owned by the company. TFS has earmarked an investment of Rs 120 Crore for its first two years of operations. It will obtain the finance through internal accruals. It aims to operate about 5000 sq m of space within the same period. TFS has targeted a turnover of Rs100 crore by 2010-11. 7. The company has also partnered with brands, like Caf Coffee Day, Dominos Pizza, McDonalds and Baskin Robbins. Blue Foods owns the franchise for US-based coffee shop brand, The Coffee Bean and Tea Leaf; it plans to expand this brand at airports, as well. The airport is an excellent location to ensure visibility to a large consumer base. Thus, most F&B brands want to be associated with us, states Kapur. 8. The company aims to set up operations in both, the arrival and departure segments at the domestic and international terminals. Kapur informs that consumption is usually higher amongst departure passengers. 9. Presently, a major player in this segment is US-based company HMS Host, which operates at the Hyderabad, Bengaluru and Mumbai

2.4B AWARDS AND EXCELLENCE:

Sunil Kapur, Chairman, Travel Food Services (TFS) was awarded the Best Outstanding Individual Contribution to Airport F&B for his company Travel Food Services. He was presented the award at the first Airport Food & Beverage (FAB) Conference, organized by The Moodie Report in Manchester, UK. Within a year of TFS inception, the firm came to be the master concessionaire at Mumbais domestic terminal and also at Delhis newly integrated Terminal 3 touching over 50 million customers every year. Currently, Kapurs team have set up over ten in-house and more than ten partner brand concepts in Mumbai and Delhi. His focus now is to drive and manage the growth and expansion of TFS across global markets and multiply its F&B operations across tier II and III cities in India.

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ABOUT THE PROJECT

My project aims is to stress the importance of advertising in international business, especially for those who neglect the importance of advertising in todays scenario. And secure the business of the cost and expenditure that incurred in making the advertising. The major goal of any company is to earn profits although the overall goal is the holistic development. The concept of Advertising has been adopted by all the companies since it is an advanced technique that facilitates the company for the overall development in their profit making. It also helps in helps in further decision making. The retail wherein production is an extensive process concentrates more on adopting such techniques as advertising. Advertising is simply put the selling and selling the product. Advertising is a favorable representation of product to make consumer, customers and general public aware of product. It let the potential buyers, general public and end users to be aware and familiar with the brands and their goods and services. My project Impact of advertising in International marketing highlights the key factor of International advertising concept.
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CHAPTER 3 *INTERNATIONAL MARKETING*

3.1 Introduction 3.2 International marketing: A global market place

37 37 37 38 38 38 38

Globalization of markets & competition Trade balances & Exchange Rates

Measuring Country Wealth 3.3 International product life cycle 3.4 Methods of Entry in Foreign Market

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3.1 AN INTRODUCTION WHAT IS INTERNATIONAL MARKETING?

International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm. It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets. According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives." In simple words international marketing is the application of marketing principles to across national boundaries. The intersection is the result of the process of internationalization. Many American and European authors see international marketing as a simple extension of exporting, whereby the marketing mix 4P's is simply adapted in some way to take into account differences in consumers and segments. It then follows that global marketing takes a more standardized approach to world markets and focuses upon sameness, in other words the similarities in consumers and segments.

3.2 INTERNATIONAL MARKETING: A GLOBAL MARKET PLACE

Globalization of Markets and Competition: Trade is increasingly global in scope today. There are several reasons for this. One significant reason is technological because of improved transportation and communication opportunities today, trade is now more practical. Thus, consumers and businesses now have access to the very best products from many different countries. Increasingly rapid technology lifecycles also increases the competition among countries as to who can produce the newest in technology. In part to accommodate these realities, countries in the last several decades have taken increasing steps to promote global trade through agreements such as the
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General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU).

Trade balances and exchange rates. When exchange rates are allowed to fluctuate, the currency of a country that tends to run a trade deficit will tend to decline over time, since there will be less demand for that currency. This reduced exchange rate will then tend to make exports more attractive in other countries, and imports less attractive at home. Measuring country wealth. There are two ways to measure the wealth of a country. The nominal per capita gross domestic product (GDP) refers to the value of goods and services produced per person in a country if this value in local currency were to be exchanged into dollars.

3.3 INTERNATIONAL PRODUCT LIFE CYCLE (PLC):

Consumers in different countries differ in the speed with which they adopt new products, in part for economic reasons (fewer Malaysian than American consumers can afford to buy VCRs) and in part because of attitudes toward new products (pharmaceuticals upset the power afforded to traditional faith healers, for example). Thus, it may be possible, when one market has been saturated, to continue growth in another markete.g., while somewhere between one third and one half of American homes now contain a computer, the corresponding figures for even Europe and Japan are much lower and thus, many computer manufacturers see greater growth potential there. Note that expensive capital equipment may also cycle between countriese.g., airlines in economically developed countries will often buy the newest and most desired aircraft and sell off older ones to their counterparts in developing countries. While in developed countries, three part canning machines that solder on the bottom with lead are unacceptable for health reasons, they have found a market in developing countries.

3.4 METHODS OF ENTRY IN FOREIGN MARKETS:

The various ways to enter into the foreign market are: Joint Venture : One of the most popular modes of entry is the establishment of a joint venture, in which two businesses combine resources to sell products or services. Many countries with tightly controlled economies, such as China, often require foreign companies to partner with a local company if they wish to sell products to their residents. Although joint ventures provide foreign companies with a partner experienced in the foreign market, these partnerships can be difficult to manage and require a splitting of profits.
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 Licensing In the licensing mode of entry, companies sign contracts with foreign businesses, called "licenses," that allow the foreign companies to legally manufacture and sell the company's products. The foreign companies will either purchase the license outright, pay a regular licensing fee or pay a percentage of their revenue over time in the form of royalties. Often used by manufacturing firms, licensing allows a company to enter a market quickly and inexpensively, but gives them little control over the products' foreign marketing and sales.

Exporting Rather than attempt to partner with or provide a license to foreign companies, some companies will simply sell their products to distributors overseas, who will sell the products to consumers. This exporting prevents the company from having to invest the money in developing manufacturing facilities in the foreign market, but transportation costs and restrictive tariffs may make this mode uneconomical for certain products. Internet Many companies will attempt to enter foreign markets indirectly, by targeting foreign consumers on the Internet. Similar to exporting, companies retain their physical operations in their native countries, but ship products overseas. However, whereas in exporting, companies contract with local businesses, with the Internet they take orders directly from consumers. The advantages to this mode are that it is relatively cheap, entailing only the cost of a website and marketing. The downside is that it is often less effective than establishing a physical presence in the foreign market. Purchasing Foreign Assets Many companies, rather than launching an entirely new venture in a foreign market, will simply purchase or invest in a foreign company. While often more expensive, direct investment provides allows the investing company to reap the profits of a business that is already well integrated into the local market.

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CHAPTER 4 *ADVERTISING*
4.1 Introduction 4.1A. Niche segments 4.1B. Advertising Campaign 4.2Classification of Advertising
Print Advertising Broadcast Advertising Outdoor Advertising Covert Advertising Public Service Advertising
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41 41 41 42 43 43 43 43 43

4.3 Historical Milestones in Advertising 4.3A. Advertising Milestones Digital signage 4.3B. Advertising two Important virtues 4.1AN INTRODUCTION

43 44 44

Advertising simply put is telling and selling the product. Advertising Management though is a complex process of employing various media to sell a product or service. This process begins quite early from the marketing research and encompasses the media campaigns that help sell the product. Without an effective advertising management process in place, the media campaigns are not that fruitful and the whole marketing process goes for a toss. Hence, companies that believe in an effective advertising management process are always a step ahead in terms of selling their goods and services. As mentioned above, advertising management begins from the market research phase. At this point, the data produced by marketing research is used to identify what types of advertising would be adequate for the specific product. Gone are the days when there was only print and television advertising was available to the manufacturers. These days apart from print and television, radio, mobile, and Internet are also available as advertising media. Advertising management process in fact helps in defining the outline of the media campaign and in deciding which type of advertising would be used before the launch of the product. 4.1A NICHE SEGMENTS Once the niche segments are identified and the determination of what types of advertising will be used is done, then the advertising management focuses on creating the specifics for the overall advertising campaign. If it is a radio campaign, which type of ads would be used, if it is a print campaign, what write ups and ads will be used, and if it is a television campaign, what type of commercials will be used. There might also be a mix and match advertising in which radio might supplement television advertising and so on. It is important that through advertising management the image is conveyed that all the strategies complement each other. It should not look to public that the radio advertising is focusing on something else while television on something else. The whole process in the end should benefit the product or service. 4.1B ADVERTISING COMPAIGN The role of people designing the advertising campaign is crucial to its success. They have been trained by seasoned professionals who provide the training in the specific field.
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Designing an advertising campaign is no small a task and to understand the consumer behavior from the data collected from market research is a very important aspect of the campaign. A whole lot of creativity and inspiration is required to launch an adequate advertising campaign. In addition, the management skills come into play when the work has to be done keeping the big picture in mind. It would be fruitful for the company if the advertising campaign lasts well over the lifetime of a product or service, reach the right customers, and generate the desired revenue.

4.2 CLASSIFICATION OF ADVERTISING:

Advertising is the promotion of a companys products and services though different mediums to increase the sales of the product and services. It works by making the customer aware of the product and by focusing on customers need to buy the product. Globally, advertising has become an essential part of the corporate world. Therefore, companies allot a huge part of their revenues to the advertising budget. Advertising also serves to build a brand of the product which goes a long way to make effective sales. There are several branches or types of advertising which can be used by the companies. Let us discuss them in detail.

Classification of Advertising

Print Advertising - The print media has been used for advertising since long. The newspapers and magazines are quite popular modes of advertising for different companies all over the world. Using the print media, the companies can also promote their products through brochures and fliers. The newspaper and magazines sell the advertising space and the cost depends on several factors. The quantity of space, the page of the publication, and the type of paper decide the cost of the advertisement. So an ad on the front page would be costlier than on inside pages. Similarly an ad in the

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glossy supplement of the paper would be more expensive than in a mediocre quality paper. Broadcast Advertising - This type of advertising is very popular all around the world. It consists of television, radio, or Internet advertising. The ads on the television have a large audience and are very popular. The cost of the advertisement depends on the length of the ad and the time at which the ad would be appearing. For example, the prime time ads would be more costly than the regular ones. Radio advertising is not what it used to be after the advent of television and Internet, but still there is specific audience for the radio ads too. The radio jingles are quite popular in sections of society and help to sell the products. Outdoor Advertising - Outdoor advertising makes use of different tools to gain customers attention. The billboards, kiosks, and events and tradeshows are an effective way to convey the message of the company. The billboards are present all around the city but the content should be such that it attracts the attention of the customer. The kiosks are an easy outlet of the products and serve as information outlets for the people too. Organizing events such as trade fairs and exhibitions for promotion of the product or service also in a way advertises the product. Therefore, outdoor advertising is an effective advertising tool. Covert Advertising - This is a unique way of advertising in which the product or the message is subtly included in a movie or TV serial. There is no actual ad, just the mention of the product in the movie. For example, Tom Cruise used the Nokia phone in the movie Minority Report. Public Service Advertising - As evident from the title itself, such advertising is for the public causes. There are a host of important matters such as AIDS, political integrity, energy conservation, illiteracy, poverty and so on all of which need more awareness as far as general public is concerned. This type of advertising has gained much importance in recent times and is an effective tool to convey the message.

4.3 HISTORICAL MILESTONES IN ADVERTISING

Advertising goes back to the very beginnings of recorded history. Archaeologists working in the countries around the Mediterranean sea have dug up signs announcing various events and offers. An early form of advertising was the town crier. Another early advertising form was the mark that trades people placed on their goods, such as pottery. As the persons reputation spread by word of mouth, buyers began to look for his special mark, just as trademarks and brand names are used today. As production became more centralized and markets became more distant, the mark became more important. The turning point in the history of advertising came in he year

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1450 when Johann Gutenberg invented the printing press. Advertising no longer had to produce extra copies of a sign by hand. The first printed advertisement in the English language appeared in 1478. In 1622, advertising got a big boost with the launching of the first English newspaper, The Weekly News. Advertising had its greatest growth in the United States. Ben Franklin has been called the father of American advertising because his Gazette, first published in 1729,had the largest circulation and advertising volume of any paper in colonial America. The invention of radio and, later, television created two more amazing media for the spread of advertising.

4.3A Advertising milestones digital signage:

There have been many huge steps in advertising over its history. From the first print advertisement following the invention of the Gutenberg press, to the first radio adverts broadcast at the beginning of the twentieth century, these milestones have changed the face of advertising for good. And advertisers know just how important new innovations in their field is; new advertising methods become successful very quickly because their newness means the advertising content stands out from the crowd but very quickly new forms of advertising media become saturated making it more difficult for advertisers to get their message across. The latest in a long line of advertising milestones is digital signage which is the use of LCD and other flatscreen TVs for advertising and information purposes. It is fast becoming a major mass media advertising tool because of its ability to reach large audiences with comparatively low costs (compared to other forms of advertisements). Advantages: Digital signage is unique in that the target audience can not only be seen consuming the advertising message but the advertisements can be altered to make them more relevant to the target audience. Digital signage campaigns can be done in-house with simple PC equipment and software without the need to hire advertising agencies. The modernity of digital advertising means it stands out more; is more noticeable and attractive to an audience and it can also raise a companys profile.

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Digital signage has been employed in retail, business and the service sector and it continuing to expand all the time. Outdoor digital signage is the latest form of digital advertising which is becoming more and more popular because of the larger audiences outdoor screens can reach compared with indoor systems.

4.3B Advertising's Two Important Virtues:

You have complete control. Unlike public relations efforts, you determine exactly where, when and how often your message will appear, how it will look, and what it will say. You can target your audience more readily and aim at very specific geographic areas. You can be consistent, presenting your company's image and sales message repeatedly to build awareness and trust. A distinctive identity will eventually become clearly associated with your company, like McDonald's golden arches. Customers will recognize you quickly and easily - in ads, mailers, packaging or signs - if you present yourself consistently.

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CHAPTER 5
*ADVERTISING: IMPORTANCE AND ROLE*
5.1 Importance of Advertising
4. 5. 6.

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Producers and traders Customers society Form of Communication Advertising agencies Media Advertising Agencies

5.2 Role of Advertising

1. 2. 3.

4. Team Format basis

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5.1 IMPORTANCE OF ADVERTISING

Advertising has become an indispensable function in modern business due to cut-throat competition and mass production. It pervades our economic and social life. It helps to disseminate information which is useful to businessmen, consumers and the society in general. Through it one can create an indirect and impersonal link with his prospects easily, quickly and economically. The importance of advertising can be classified into three different heads: 1. Importance of Advertising to producers and Traders, 2. Importance of Advertising to customers 3. Importance of Advertising to society 4. 1. IMPORTANCE OF ADVERTISING TO PRODUCERS AND TRADERS: Advertising provides various benefits to the producers and traders and it can be summed up under the following head; a. Meeting competition: Advertising is an important means for facing competition. By creating brand loyalty, it helps to maintain sales and market share. It supplements personal selling and sales promotion. The importance of Advertising lies in the fact that it creates preference for a particular product opens doors for salesmen and reinforces point of purchase display, thereby reducing the costs of creating and maintaining demand. Dealers prefer to handle well advertised products.

b. Steady demand: Advertising creates regular demand by smoothening out seasonal and other fluctuations. For instance, advertising is used to emphasize hot and cold uses of coffee to maintain regular sales both during summer and winter. By suggesting new and more frequent uses of product, advertising helps to

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maintain demand, throughout the year. Steady demand enables regular production.

c. Higher sales volume: Advertising helps to increase demand, expand markets and enhance sales of existing products. Through repeated advertising, a producer can create new customers and enter new markets. It creates new wants and increases sales. Advertising is an essential technique of mass selling.

d. Introduction of new product: Advertising is helpful in introducing new products by creating awareness and gaining their acceptance. By informing consumers about the new product, advertising stimulates their interest and persuades them to buy it. Effective advertising helps in overcoming consumers resistance to new products.

e. Economies of scale: Advertising facilitates mass distribution of goods. It reduces dependence on middlemen as dealers are more willing to stock and sell well advertised goods. Direct distribution and rapid sales turnover help to reduce costs of distribution. Mass distribution and steady demand lead to large scale and regular production. As a result, several economies of scale become available and cost of production per unit is reduced. Investment in inventories can be reduced.

f. Goodwill : Advertising helps in creating a good image of the firm and reputation for its products. A favorable image increases the capacity of the firm to survive competition and depression. It is through effective advertising that Tatas, Birlas, etc., have become household names. It has rightly been observed that "doing business without advertising is like winking at a girl in the dark. You know what you are doing but the targets do not know." By building goodwill advertising enables business firms to obtain repeat orders.

g. Employee morale: By building reputation of the firm, advertising provides a sense of security to employees and improves their morale. Salesmen feel happy as their task becomes easier when the product and its producer are known to

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customers. In a well reputed firm, executive have a feeling of pride and job satisfaction which is necessary for better performance.

2. IMPORTANCE OF ADVERTISING TO CUSTOMERS:

Advertising not only benefits the producers and traders but benefits the customer as well. Advertising provides awareness of the existence of the product to the customer. Customer satisfaction is of immense priority in modern marketing and the importance of advertising cant be ignored as such. The importance of Advertising to customers can be discussed under the following sub-head; a) Convenience: Advertising makes shopping easy by reducing the time and effort involved shopping. People become aware of the source and availability of different products and need not search them out. They can make better choice among different varieties.

b) Education of consumers; Advertising provides education and knowledge to consumers about new products and their diverse uses. Consumers get the benefit of better advice in safe and proper use of products and develop new ways of life. In this way advertising makes for better living.

c) Lower prices: Effective advertising reduces costs due to large scale production and elimination of wholesalers. As a result customers get goods at lower prices. Prices of advertised goods fluctuate less widely and unscrupulous traders cannot easily exploited consumers by overcharging. Many expensive products of yesteryears have come within the reach of the common man due to continuous advertising and consequent reduction in prices. Advertising helps to eliminate unnecessary middlemen, thereby making products cheaper for the consumers.

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d) Better quality; Advertising is generally done through brand names. Producers try to create special features in their products to successfully communicate product differentiation. Need to find arguments in advertising and desire to live up to the image, leads them to improve quality and product design. Consequently, consumers get better quality and variety of goods.

e) Consumers surplus: Advertising brings the customer closer to the producer so that each can fully appreciate the needs of the other. Such understanding helps in better matching of products and services with human needs. Through advertising, consumers better appreciate the utility of products and derive higher satisfaction from their consumption. This satisfaction and pleasure derived by them from the products is called consumers surplus. f) All these benefits provided to the customers has significant role in customer satisfaction, a very important aspect of modern marketing.

3. IMPORTANCE OF ADVERTISING TO SOCIETY:

Advertising serves the society in the following ways. (i) Employment generation ; Advertising provides direct employment to a large number of people engaged in designing, writing and issuing advertisements. Indirectly, advertising increases employment opportunities by increasing the volume of production and distribution. By promoting exports advertising helps the country in earning valuable foreign exchange. (ii) Higher standard of living : Advertising improves the standard of living of the people by promoting variety and quality in consumption. It educates people about new uses of products and provides information for developing better ways of life. To quote Franklin D. Roosevelt, the late President of America, "advertising brings to the greatest number of people actual knowledge concerning useful things, it is essentially a form of education and the progress of civilization depends on education." (iii) Sustains the press ; Advertising provides an important source of revenue to newspapers, magazines, radio and television. As a result public gets news at lower rates and the circulation of newspapers and magazines increases. Press is the guardian of public opinion and by helping it to remain independent, advertising promotes liberty and democracy in the country. By subsidizing the press, advertising serves as a bright symbol of freedom of choice. (iv) Stimulates research and development: Advertising can be successful only when it is backed by new and better products. To derive maximum benefit from advertising in the
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competitive market, every producer tries to differentiate his products from the competitive products. Big business firms have research and development departments to develop new products and new uses. Research and development becomes necessary also to maximize efficiency and to minimize cost of production. In the absence of advertising and mass distribution, many products would remain confined to the laboratory. By promoting research and development, advertising helps in the process of rapid industrialization. (v) Incentive to progress : Advertising is a great motivating force. People are induced to work hard and earn more to buy new products brought to their knowledge through advertising. (vi) Art and culture : Advertising promotes the creative energies of people required in designing and developing advertisements. Commercial art is largely the creation of advertising. Advertising provides a glimpse of national life, a running commentary on the way people live and work. Advertising also provides entertainment to the public. Many sponsored programs on radio and television have become very popular due to their entertainment and aesthetic value.

5.2 THE ROLE OF ADVERTISING:

a. Advertising is a form of communication that is meant to drive customers to purchase or consume the goods/brand that is being sold. This is an enhanced form of marketing which convinces the customers and public that the brand they are selling are actually better then the others in competition. Every business organization hpabi15038as an Advertising agency or department that caters to the entire public and effectively promotes the benefits and usage of the product. b. An Advertising Agencies mainly focuses on getting the best business for its clients via aggressive promotions, targeting the masses and classes alike. An ad agency is independent from the client and provides an outside point of view to the effort of selling the clients products or services. The range of an Advertising Agency varies from all shapes and sizes right from small to medium sized agencies, large independents, and multi-national agencies, basically depending on the kind of ventures undertaken and the client reputations. The kind of advertisements that is done also varies as per the need and budget of the product or service to be marketed. It could be in the form of commercial advertisements, Internet /online promotion or classified advertisements in newspapers. c. Full-service or media-advertising companies basically target the television audience by promoting the product through commercial advertisements. May be they would get in top celebrity or a famous personality to endorse the product. Online advertising is basically done via the internet and is basically handled by Digital Interactive Marketing firms through their Search Marketing Departments. A development team creates the website of the client, the creative or designing team and then the marketing team promotes it online.
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Then you have people promoting their advertisements via newspapers. This is considered to be one of the most cost effective ways to promote your business, the reason being this has the largest coverage in terms of reaching out to the masses. Infact if any company is looking to promote a business effectively the suggestion would be, first get your advertisement on paper, then get the commercial advertisement going and then promote it online. The campaign is bound to be highly successful. d. Like any other organization an Advertising agency works in a Team Format basis. The people who create the actual ads form the core of an advertising agency. Next comes the account management department. Account management is somewhat the sales arm of the advertising agency. They are then responsible for coordinating the creative, media, and production staff behind the campaign. Next comes in the creative services team or the production team. This department consists of those employees who are responsible for coordinating the creative, media, and production staff behind the campaign. An often forgotten, but still very important, department within an advertising agency is traffic. The traffic department regulates the flow of work in the agency. It is typically headed by a traffic manager (or system administrator). Traffic increases an agencys 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. Some of the Biggest Commercial advertising companies in India include Mudra Communication, Pressman India, Thomson Associates, Lintas, and Percept Holdings. They have the best of clients with excellent reputation attached to them.

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CHAPTER 6 *INTERNATIONAL ADVERTISING CONCEPT*

6.1 Need of advertising 6.2 International Advertising helps 6.3 International Advertising Concept 6.4 Ef fective ness of Advrtising in international Market 6.5 Standardization VS Localization 6.6 International Advertising as a Social Force
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54 55 55 57 60 63

6.7 Conclusion

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6.1 NEED OF INTERNATIONAL ADVERTISING:

It's early days on the Internet, perhaps the most important communications conduit we've seen so far. Yet even now, history is repeating itself. There are those who want to direct the traffic and set up the roadblocks. We believe hyperspace is one more place where you should have the freedom to know what's out there and the right to choose. Which is why advertising is dedicated to help develop the tools and the technologies that will let you do just that? While use of uniform advertising appeals offers a number of advantages, differences in customer perceptions and response patterns across countries and cultures, as well as media availability and government regulation are major barriers to use of a standardized campaign. Even though technological developments allow adaptation of advertising appeals to different languages (for example, TV can have audio channels in two languages, Internet messages can be automatically translated), development of visual and verbal copy that works effectively in multiple countries poses major creative challenges. Faced with this dilemma, firms may use a global umbrella campaign combined with local country or product-specific advertising. The global umbrella campaign develops a uniform image for the company or brand worldwide, often relying on consistent visual images and the corporate logo. Product-specific or country advertising builds on this image, modifying the appeal and providing information tailored to the local market. The objective of the umbrella campaign is to provide an integrating force, while local campaigns provide greater relevance to specific local customers and markets. International advertising is also a major force that both reflects social values, and propagates certain values worldwide.

A. Language barrierLanguage is one of the major barriers to effective communication through advertising. The problem involves different languages of different countries, different languages or dialects within one country, and the subtler problems of linguistic nuance and vernacular.

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The bicardi company wanted to sell the drink pavane in germany, but pavane is perilously close to Pavian which means babbon. A company Marketing tomato paste in the middle east found that in arabic the phrase tomato paste translates as tomato glue. Tropicana brand orange juice was advertised as jugo de china in Puerto Rico, but transported to Miamis Cuban community, it failed. Language translation encounters innumerable barriers that impede effective, idiomtic translation and thereby hamper communication. This is especially apparent in advertising materials. Abstraction, terse writing, and world economy, the most effective tool of the advertisers, pose problem for the translators. Communication is impeded by the great diversity of cultural heritage and education which exists within countries and which causes varying interpretations of even single sentences and simple concept. Some companies have tried to solve the translation problem by hiring foreign translators. This often is not satisfactory because both the language and the translator change. Everyday words have different meanings in different cultures. Low literacy in many countries seriously impedes communications and calls for greater creativity and use of verbal media. Multiple languages within a country or advertising area pose another problem for the advertiser. B.Cultural Diversity Communication is more difficult because cultural factors largely determine the way various phenomena are perceived. If the perceptual framework is different, perception of the message itself differs. Knowledge of cultural diversity must encompass the total advertising project. C.Media Limitation Media may diminish the role of advertising in the promotional program and may force the marketers to emphasis the other elements of promotional mix. A marketers creativity is certainly challenged when a television commercial is limited to to 10 showing a year with no two exposure closer than 10 days. In some African countries advertisers run boats up and down the rivers playing popular music and broadcasting commercial into the bush as they travel.

6.2 INTERNATIONAL ADVERTISING HELPS IN:

Remind customers and prospects about the benefits of your product or service Establish and maintain your distinct identity Enhance your reputation Encourage existing customers to buy more of what you sell Attract new customers and replace lost ones Slowly build sales to boost your bottom line Promote business to customers, investors

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6.3 INTERNATIONAL ADVERTISING CONCEPT

It entails dissemination of a commercial message to target audiences in more than one country. Target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and languages spoken. How the advertising function is organized also varies. International advertising can, therefore, be viewed as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. International advertising is also a business activity involving advertisers and the advertising agencies that create ads and buy media in different countries. The sum total of these activities constitutes a worldwide industry that is growing in importance. International advertising is also a major force that both reflects social values, and propagates certain values worldwide. The Communication Process The process of communication in international markets involves a number of steps. First, the advertiser determines the appropriate message for the target audience. Next, the message is encoded so that it will be clearly understood in different cultural contexts. The message is then sent through media channels to the audience who then decodes and reacts to the message. At each stage in the process, cultural barriers may hamper effective transmission of the message and result in miscommunication. International Advertising as a Business Practice International advertising can also be viewed as a business activity through which a firm attempts to inform target audiences in multiple countries about itself and its product or service offerings. In some cases the advertising message relates to the firm and its activities, i.e. its corporate image. In other cases, the message relates to a specific product or service marketed by the firm. In either case, the firm will use the services of an advertising agency to determine the appropriate message, advertising copy and make the media placement. Art Direction Art direction is concerned with visual presentation- the body language of print and broadcast advertising. Some forms of visual presentation are universally understood. Revlon, for example, has used a French producer to develop television commercials, English and Spanish for use in the international markets. These commercials, which are filmed in Parisian settings, communicate the universal appeals and specific advantages of Revlon products. By producing its ads In France, Revlon obtains effective television commercials at a much lower price than it would have to pay for similar length commercials produced in US. Pepsi Co has used four basic commercials to communicate its advertising themes. The basic setting of young people having fun at a party or on a beach has been adapted to reflect the general physical environment and racial characteristics of North America, South America, Europe, Africa, and Asia,. The music in
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these commercials has also been adapted to suite regional tastes, ranging from rock and role in North America to Bossa nova in Latin America to Africa. The international advertiser must make sure that visual executions are not inappropriately extended into markets. Benetton recently encountered a problem with its United Colors of Benetton campaign. The campaign appeared in 77 countries, primarily in print and on billboards. The art direction focused on striking, provocative interracial juxtapositions- a white hand a black hand handcuffed together, for example another version of campaign, depicting a black woman nursing a white baby, won adverting awards in France and Italy. However, because the image evoked the history of slavery in America, that particular creative execution was not in the U.S market Cultural Considerations Knowledge of cultural diversity, especially the symbolism associated with cultural traits, is essential when creating advertising. Local country managers will be able to share important information, such as when to use cautions in advertising creativity. Use of colors and manwomen relationships can often be stumbling blocks. For example, white in Asia is associated with death. In Japan, intimate scenes between men and women are considered to be in bad taste; they are outlawed in Saudi Arabia. Advertising Communication System Advertising communication always involves a perception process and four of the elements shown in the model: the source, a message, a communication channel, and a receiver. In addition, the receiver will sometimes become a source of information by talking to friends or associates. This type of communication is termed word-of-mouth communication, and it involves social interactions between two or more people and the important ideas of group influence and the diffusion of information. An advertising message can have a variety of effects upon the receiver. It can Create awareness Communicate information about attributes and benefits Develop or change an image or personality Associate a brand with feelings and emotions Create group norms Precipitate behavior

6.4 EFFICACY EFFECTIVENESS OF ADVERTISING ON INTERNATIONAL MARKETS:

International Advertising as a Business Practice
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International advertising can also be viewed as a business activity through which a firm attempts to inform target audiences in multiple countries about itself and its product or service offerings. In some cases the advertising message relates to the firm and its activities, i.e. its corporate image. In other cases, the message relates to a specific product or service marketed by the firm. In either case, the firm will use the services of an advertising agency to determine the appropriate message, advertising copy and make the media placement. Advertising has gone through five major stages of development: domestic, export, international, multi-national, and global. For global advertisers, there are four, potentially competing, business objectives that must be balanced when developing worldwide advertising: building a brand while speaking with one voice, developing economies of scale in the creative process, maximising local effectiveness of ads, and increasing the companys speed of implementation. Born from the evolutionary stages of global marketing are the three primary and fundamentally different approaches to the development of global advertising executions: exporting executions, producing local executions, and importing ideas that travel. Advertising research is key to determining the success of an ad in any country or region. The ability to identify which elements and/or moments of an ad that contributes to its success is how economies of scale are maximised. Once one knows what works in an ad, that idea or ideas can be imported by any other market. Market research measures, such as Flow of Attention, Flow of Emotion and branding moments provide insight into what is working in an ad in any country or region because the measures are based on the visual, not verbal, elements of the ad. MEASURING ADVERTISING EFFECTIVENESS Just as important as creating a strong marketing plan is following through on the results. How will you know which ads are working if you dont analyze the results? Check the effectiveness of your advertising programs regularly by using one or more of the following tests: 1. Run the same ad in two different publications with a different identifying mark on each. Ask customers to clip the ad and bring it in for a discount or free sample. Or, if youre running an ad that asks customers to order by mail, put a code in your company address such as Dept. SI. By looking at the marks on the clipped ads or the addresses on the mail-in orders, youll be able to tell which ad pulled better. 2. Offer a product at slightly different prices in different magazines. This has the added benefit of showing whether consumers will buy your product at a higher price. 3. Advertise an item in one ad only. Dont have any signs or otherwise promote the item in your store or business. Then count the calls, sales or special requests for that item. If you get calls, youll know the ad is working. 4. Stop running an ad that you regularly run. See if dropping the ad affects sales.

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5.

Check sales results whenever you place an ad for the first time.

6. Checks like these will give you some idea how your advertising and marketing program is working. Be aware, however, that you cant expect immediate results from an ad. Especially with small adsthe type most entrepreneurs are likely to be runningyou need to give the reader a getting to know you period during which he gets to feel comfortable with your business. METHODOLOGY The manager needs to engage in situation analysis with respect to the market conditions that are operating at the time and to assess the consumer/market, competitive, facilitating agency, and social legal, and global factors that will affect decision making and the development of the plan. It is vital that the advertising plan be developed so as to mesh with and support the various components of the marketing and communications mix such as personal selling, pricing, public relation, and promotion. The advertising manager also needs to know the major areas of his or her planning and decision-making responsibilities. There are three areas of major importance: A. Objective and Target Selection, B. Message Strategy and Tactics, C. Media Strategy and Tactics.

A. OBJECTIVE AND TARGET SELECTION: 1.Consumer and Market Analysis A situation analysis often begins by looking at the aggregate market for the product, service, or cause being advertised: the size of the market, its growth rate, seasonality, geographical distribution; the possible existence of different segments; and trends in all of these aggregate market characteristics. Competitive Analysis Advertising planning and decision-making are heavily affected by competition and the competitive situation the advertiser faces. Competition is such a pervasive factor that it will occur as a consideration in all phases of the advertising planning and decision-making process. A type of market structure analysis that involves the development of perceptual maps of a market, for example, attempts to locate the relative perceptual positions of competitive brands. 2.Situation analysis should usually include an analysis of what current share the brand now has, what shares its competitors have, trends in these shares, reasons for these trends, what share of a market is possible for the brand, and from which competitors an increase in share will come. The planner also has to be aware of the relative strengths and weaknesses financial, production, and marketing of the different competing companies, and the history of competitive moves and objectives in the product category.
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The Marketing Plan Advertising planning and decision making take place in the context of an overall marketing plan. The marketing plan includes planning, implementation, and control functions for the total corporation or a particular decision-making unit or product line. The marketing plan will include a statement of marketing objectives and will spell out particular strategies and tactics to reach those objectives. The marketing objectives should identify the segments to be served by the organization and how it is going to serve them. The needs and wants of consumers on which the firm will concentrate, such as the needs of working men and women for easily prepared meals, are identified and analyzed in a marketing plan. There are several marketing tools that can be used to help an organization achieve its marketing objectives. Most people are familiar with the 4 Ps the marketing mix which includes product, price, place, and promotion. A marketing plan formulates the strategy and tactics for each of these. B. MESSAGE STRATEGY AND TACTICS: The actual development of an advertising campaign involves several distinct steps. First, the advertising manager must decide what the advertising is meant to communicate by way of benefits, feeling, brand personality, or action content. Once the content of the campaign has been decided, decisions must be made on the best and most effective ways to communicate that content. C. MEDIA STRATEGY AND TACTICS: Although there are many rules of thumb often used to decide how much money to spend on advertising, the soundest rules involve beginning with a detailed specification of what a corporation is attempting to accomplish with advertising, and the resources necessary. It is only when the job to be done is well specified that the amount and nature of the effort the amount of money to be invested in advertising can be really determined.

6.5 STANDARDISATION VIS A VIS LOCALISATION

1. Adaptation as a general tendency of the cross-national advertising literature The feasibility of ad standardization depends on variables related to the economic, technological, legal, social, and cultural environment. Within a homogeneous environment advertising standardization is recommendable. If, on the contrary, environmental variables across markets are heterogeneous, customized advertising should be favored. Reviews of cross-national advertising studies, either regional or global generally conclude in favour of adaptation. Standardized advertising is hindered if the use of certain media or execution elements is
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restricted, for instance in countries such as Malaysia which prohibits the use of foreign models in advertising. In a similar way, a heterogeneous economic environment across countries makes advertising standardization more difficult. Advertising execution has to take into account the education, literacy, and income levels of target groups. The competitive environments as well as the actual life cycle stage of a product are further factors in favor of adaptation. The cultural environment is seen as the highest barrier against standardized advertising. Differing needs, traditions, consumption habits, religion etc. make the use of an identical advertising approach across markets difficult. On average, the cross-national advertising literature leans towards adaptation rather than standardization of advertising worldwide. 2.Change over time Many studies point to the persistent need of ad adaptation . For instance, an analysis of U.S. companies operating in Europe showed that, between 1963 and 1983, advertising was more resistant to standardization than product or brand policies . However, there are many arguments in favour of a trend towards advertising standardization, especially due to strong globalization over the last 20 years. A number of developing countries have been accessing the status of advertising intensive countries. China and India are a case in point for a dramatic change in the place of advertising in the overall business and consumer scene. Authors coming from the corporate world, either advertisers or agencies, have consistently argued in favour of ad standardization and the possibility of putting up a global message with localized communication . Furthermore, rapidly changing communication technologies (Internet ads, satellite TV) influence global advertising: media overlaps push companies to more standardized advertising approach. : Advertising standardization is increasing over time due the globalization trend. Adaptation to local contexts still needed Religion act as filters of advertising messages, transforming factual information into culturally interpreted meaning. : Culture and local customs are positively related to adaptation recommendation Advertising strategy versus advertising execution Advertising content consists of two major elements: strategy and execution. Although there is obviously some overlap between both categories, advertising strategy comprises 'what is said' and execution concerns more 'how it is said'. Degree of adaptation should increase over a continuum of four levels: mission (long term, identity and vision of the communicator), proposition (campaign themes), creative concepts (how themes are translated in the language and cultures of the target groups) and execution. While mission and proposition can rather easily be globalized, execution will need much local tailoring. : Advertising strategy is more standardization prone than ad execution. Influence of product category on the degree of standardization Of international advertising Product type may have an influence on advertising standardization. Products satisfying
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fairly universal needs whose ad messages mostly carry rather context-free information cues are easier to standardize. Ads for certain product categories may be easier to standardize because they correspond to global (airlines, tobacco, banks,) rather than multidomestic industries (food, motor insurance,). : The level of advertising standardization is contingent on product category im lovin it: An International Motto For example, McDonalds launched a new and for the first time, global marketing strategy in Germany at the beginning of September. The campaign focuses around the motto, im lovin it and it is part of a new and broader marketing approach that McDonalds calls Rolling Energy. The company says this approach will revitalize the brand in the entire world, unify its messages and integrate all its marketing moves. McDonalds realized that it can save money. To create a campaign of this sort, which is not individualized for each country and each market and which is going to use the same slogan, presumes a terrific cost savings that could have an impact on [McDonalds] accounting results. Despite the benefits that this campaign offers, it contains the risk of not being able to adjust to the peculiarities of each individual market . The value shared by the youths in different countries makes it possible today more than ever to create global campaigns with a same message. In fact, the strategy of unifying a campaign behind the same message for the brand is nothing new. Nike, with its Just Do It slogan had already done that, and enjoyed very good results. When Nike launched its campaign, in some countries they had to change the fundamental image of the advertising because of cultural questions. Thats the most that can happen to McDonalds in its global campaign. Axe Chocolate-man Ad Banned Axe ad is a classic example of standardization vs localization debate. Keeping in line with its crackdown on suggestive advertisements being televised.The Indian government has taken strong objection to the AXE chocolate deodorant ad .Ministry of information and broadcasting has regarded the ad as indecent ,vulgar and repulsive. It clearly reflects the importance of understanding cultural sensitivity in advertising. Facilitating Agencies Another external factor involves the agencies that facilitate advertising and provide the means to advertise. From a situation analysis viewpoint, the advertiser basically needs to know what kind of facilitating agencies exist and the nature of the services they can provide. From a planning viewpoint, much local advertising, for example, is done without the services of an advertising agency or a research supplier. A national advertiser, on the other hand, may have under contract many different agencies and research suppliers, each serving one or more brands in a product line made up of several products. Many advertising decisions involve choices among facilitating agency alternatives. What advertising agency should be chosen? What media should be used? What copy-testing supplier will be best for our particular situation? Concerning the question for agency selection, for example, Cagley and Roberts found that the people factor tends to dominate in agency
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selection. Characteristics such as the quality of personnel, reputation, integrity, mutual understanding, interpersonal compatibility, and synergism were very important. Fact file The majority of large advertising agencies are headquartered in the US. Of the ten largest advertising agency groups, seven are headquartered in the US, and one each in the UK, France and Japan, although WPP, the British agency holding company, is made up of two large USbased agencies. With the exception of Dentsu, the Japanese agency, most other agency networks generate the majority of their revenues outside their home country. The largest agency group, Omnicom, places over $37 billion of advertising for its clients around the world and derives half its revenue from outside the US. US-based advertising agencies and their subsidiaries are responsible for most of the advertising throughout the world. China is the next largest advertising market and is also growing rapidly

6.6 INTERNATIONAL ADVERTISING AS SOCIAL FORCES:

In the view of the advertiser the primary objective of advertising is to sell products or services. In achieving this primary goal, there are often profound secondary consequences. Advertising exerts a formative influence whose character is both persuasive and pervasive. Through the selective reinforcement of certain social roles, language and values, it acts as an important force fashioning the cognitions and attitudes that underlie behavior not only in the market place, but also in all aspects of life. In an international setting, advertising has an important social influence in a number of ways. First, much international advertising is designed to promote and introduce new products from one society into another. Often this results in radical change in life-styles, behavior patterns of a society, stimulating for example the adoption of fast food, casual attire or hygiene and beauty products. International advertising also encourages desire for products from other countries, it creates expectations about "the good life", and establishes new models of consumption. Advertising is thus a potent force for change, while selectively reinforcing certain values, life-styles and role models. Often the symbols, ideals and mores that international advertising portrays and promotes are those of Western society and culture. Through the reach of advertising, brands such as Levi's, Nike, Marlboro and McDonalds are known by and have become objects of desire for teens and young adults throughout the world. Similarly, images and scenes depicted in much international advertising are either Western in origin or reflect Western consumption behavior and values. Even where adapted to local scenarios and role models, those shown often come from sectors of society, such as the upwardly mobile urban middle class, which embrace or are receptive to Western values and mores. Consequently, a criticism frequently leveled at international advertising is that it promulgates Western values and mores, notably from the US, in other countries. This is viewed particularly negatively in societies with strong religious or moral values, which run counter to those of the
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West as, for example, Islamic societies in the Middle East. When Western advertising depicts sexually explicit situations or shows women in situations considered as inappropriate or immoral, it is likely to be considered a subversive force undermining established cultural mores and values. Equally, in some countries such as France, there is a strong negative reaction to the imposition of US culture, values and use of English in advertising. Promotion of tobacco products by US and UK companies in countries where there is no legislation regulating or banning cigarette advertising has also been criticized. At the same time, international advertising also acts as an integrating force across national boundaries. It disseminates messages using universal symbols and slogans, and establishes a common mode of communication among target audiences in different parts of the world. At the same time, multicultural values are reinforced by advertisers, who adopt images incorporating peoples of different nations and diverse cultural backgrounds, as, for example, the Colors of Benneton campaign or the British Airways "Peoples of the World" campaign. The impact of such campaigns is further reinforced by the growth of global media such as Star TV, CNN, MTV or print media that target global audiences worldwide. Consequently, while, on the one hand, international advertising can be viewed as a colonizing force propagating Western values and mores throughout the world, it is also an important force integrating societies and establishing common bonds, universal symbols and models of communication among peoples in different parts of the globe.

6.7 CONCLUSION
Thus we see advertising has multiple layers to it. A lot more than what actually meets the consumers eye goes into creating a successful advertisement or an advertisement campaign. In todays era of consumerism the need for advertisements to break the clutter and stand out becomes absolutely imperative. Advertising has multiple media at its disposal with each having its respective strengths and limitations. For instance radio still has a reach to rural India like no other medium can. Also it overcomes the barrier of illiteracy in a developing country like India. On the other hand mailers pop ups are an excellent way to remain visible to the urban technosavvy Internet using consumers. Depending on the target audience the medium best suited should be exploited to the hilt. Digital media advertising (internet, mobile and digital signage) is expected to emerge as the medium of choice for advertisers. Of the available media, it was the fastest growing segment in 2008. Its better return on investment and the comparative ease with which its efficacy can be measured will ensure that the trend continues, say analysts. Rising interest in social networking in 2008 has made brands think seriously about online advertising. According to a Ficci-PwC report, it is expected to touch Rs 1,100 crore in 2011 from the current Rs 300 crore. In terms of marketing it is a very potent tool to create awareness and lure the consumer to buy the product. But one must not underestimate the discerning capacity of the buyers. Advertisements must achieve the difficult task of creating the world of possibility at the same time living up to what they promise to the consumer. Else, it may backfire. The common traps in marketing are promising something and then not delivering it. Therefore, along with your

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marketing strategy, its also important to service other not so obvious touch- points so as to provide a consistent 360-degree brand experience to your consumers. International advertising is a creative and cultural challenge. Before conveying any message one must have a fair idea about the sensitivities that are specific to every culture. For instance, different cultures have different flavours of humour. An Indian advertisement cannot humour the elders as it would offend the cultural beliefs that the country represents. A good positive example of this would be which captures the spirit how money has different cultural connotations to it in India. Clients increasingly working in global matrix structures expect their service providers to mirror those structures. With the market maturing, international expertise has become imperative at the local level. Globalisation, too, has opened up opportunities for Indian professionals. An advertisement campaign is a big challenge. The critical part of making an advertising campaign is determining a campaign theme, as it sets the tone for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities. The campaign themes are usually developed with the intention of being used for a substantial period but many of them are short lived due to factors such as being ineffective or market conditions and/or competition in the marketplace and marketing mix. The Vodafone campaign is yet another classic example of the same. Getting celebrities who have attained iconic status is a popular way to endorse a brand. But what makes it break the clutter is the fact how one creatively leverages the presence of a celebrity. This is exactly where Amir Khan with his Coca Cola campaign achieved wonders. His each character catered to different cultural ethnicities that India comprises of. Celebrities are seen to covertly endorse brands as well. For example, one observes product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. It is seen that after United States, China is the next largest market in terms of advertisement. But India too is not far behind as some its advertisements have got noticed in the international community. Advertisement is therefore, has elements of both an art as well as science. The art comes in the creativity and visualization. While the other bit is taken care of in terms of consumer behaviour comprehension in marketing. A good example of this would be Virgin Mobile, a brand targeted at the youth, the learning was that Indian youth are not out and out rebellious, but work around problems to get their way. Or, as one teenager put it, their mantra is jugaad. This was expressed evocatively as inventive thinking that breaks the firewall of sanctions. A final word of caution by David Ogilvy a Scottish born British military intelligence officer and later top advertising executive Never write an advertisement which you wouldn't want your family to read. You wouldn't tell lies to your own wife. Don't tell them to mine.

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CHAPTER 7 *ADVERTISING PLANNING*

7.1 Why you need a marketing plan first 7.2 Why you need and advertising plan 7.3 Create an effective advertising planning 7.4 Define your customers 7.5 Define what makes you unique 7.6 Set advertising goals and objectives 7.7 Set a sustainable budget for your advertising 7.8 Choose your media 7.9 Timing and scheduling
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68 69 70 70 71 72 73 75 77

7.10 Dont reinvent the wheel

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This is a very large chapter with a lot of important information. Advertising planning takes a lot of work, but the extra effort is worth it. Working on your advertising plan today will pay off with more customers walking through the door tomorrow. This chapter is oriented toward media advertising, but it applies equally to other marketing materials like brochures or direct mail.

7.1 Why you need a marketing plan first 7.2 Why you need and advertising plan 7.3 Create an effective advertising planning 7.4 Define your customers 7.5 Define what makes you unique 7.6 Set advertising goals and objectives 7.7 Set a sustainable budget for your advertising 7.8 Choose your media 7.9 Timing and scheduling 7.10 Dont reinvent the wheel 7.11 Evaluation and follow through

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7.1 Why You Need A Marketing Plan First

An effective advertising plan is only one part of your overall marketing plan. Effective advertising and promotional materials are born from your strong marketing plan. You want everything integrated and working together. The better your marketing plan is, the more effective your advertising plan will be. 1. Marketing is probably your companys only source of income, and as such your marketing plan is probably the most important document you have. 2. Your marketing plan accurately describes your market, your customers, your products and services, and your competition. 3. Your marketing plan calculates the size or potential of your market. 4. Your marketing plan will help you to efficiently allocate money and resources. 5. Your marketing plan provides focus, guidance, and direction for effective advertising and business practices. 6. Your marketing plan positions your company in the marketplace. 7. Your marketing plan will help with proper customer management and retention. 8. Your marketing plan will define your communications strategy. It will help your entire company give a planned, clear, comprehensive, and consistent message to your customers, employees, investors, and business partners. A strong marketing plan guides your advertising plan. You dont want to back into an overall marketing strategy based on your advertising plan. This doesnt mean you need a forty-page document about your marketing. But you absolutely need a clear, realistic picture of your business environment and of your customers. If you want great advertising, start with a solid marketing plan.

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7.2 Why You Need an Advertising Plan

Going astray in advertising is all too easy. The most creative advertising in the world is worthless if it misses the target audience. The best offer in the world is worthless if it does not offer the benefits your clients want. Even well planned and executed advertising has little value if you dont keep it in front of your customers. In todays world of information, it takes at least three exposures just to get your message through the first time. And then you face a huge rate of forgetfulness from your clients. Think about it. Effective advertising comes from good planning, good budgeting, a long-term commitment, and a lot of work. You need great ads that get results. And you need to keep them in front of your customers for the long term. 1. Effective advertising lowers your cost of doing business. Your phone rings, and clients walk in the door. Its a fact. 2. Minimal, limited duration, or random advertising equals wasted money. 3. Advertising is not creative or funny if it does not bring in clients. 4. Advertising has a cumulative effect, and is a long-term investment. Sales response builds over time if advertising is consistent. 5. With consumer goods and services, marketing and advertising affects your market share more than price does. 6. Effective advertising comes from solid planning and high quality production. 7. Synergy is a real thing in advertising. It comes from the cumulative effect of all of your marketing materials working together. 8. There are limits to what advertising can accomplish, even with an unlimited budget. Advertising cannot make up for poor quality, service, or timing.

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9. Every company should go through the advertising planning process.

7.3 Create an Effective Advertising Plan

Product, Price, Place, & Promotion Your marketing plan has positioned your company in terms of product, price, and place. You have made decisions about what market segment you will compete in. You have considered products and services, distribution, pricing, guarantees, quality, policies, etc. You have set objectives and goals. Now its time to decide how you will promote your company to achieve those objectives and goals.

7.4 Define Your Customers.

The number one reason advertising fails is because it is poorly targeted. No advertising is going to be successful if its target audience is not well defined and understood. Talk to your customers and potential prospects. Listen to them. Understand them. We have provided you with some excellent strategies for defining your customers. Please read the Market Targeting Strategy and the Generating Better Qualified Prospects chapters. These two chapters will give you insight into defining your customers, and knowing what they need, want, and desire. There are a few things to note here about your customers. First, your target group does not include the whole world. If you try to advertise to the whole world, you will go out of business. Second, in many companies, 20% of the customers account for 80% of sales, and often 100% of the profits. These are the high usage customers that you want to target. Define who they are. Third, one out of ten people strongly influence the other nine. They are the movers and shakers of the world. They participate heavily in community and business activities. They interact with several different large groups on a regular basis. They can and they will influence your success. Define who they are, because you also want to get your message to them.

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Make no mistake your advertising plan needs a clear, concise, written definition of who your customers are. Age, sex, marital status, economic status, geographic location, what they read, think, trust, value, desire, and any and all other relevant information should be included in your definition.

7.5 Define What Makes You Unique

In your marketing plan, you described the market you compete in. You probably narrowed a larger market down into an area that you specialize in. You have chosen an area of specialization, and that makes you special. With your advertising, you want to clearly and concisely tell people about what makes you special and different from your competition. In your advertising plan, you want to describe your area of specialization in one unique message. Look, if you really want to be successful with marketing and advertising, you need a simple, unique, easy to understand message. In advertising its called a Unique Selling Position (USP). Its what differentiates you from all of your competitors, and it makes you special. Dont skip over this, because its too important. Lets take a closer look at defining your unique selling position (USP). Here are some questions [and some reading] for you to consider. Unique Selling Position Example: Dominos pizza Free Delivery Thats it. Dominos differentiated themselves by offering free delivery, and they repeated that one message over and over and over. The message is clear, concise, and easy to understand. The benefit is self-evident and real. Your message needs to be just as clear, concise, and easy to understand. The benefit you offer needs to be just as desirable. Make a list of the benefits you offer that make you unique in comparison to your competitors. Now: What benefit is most important to your customers? [Ask them].
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What benefit is hard for your competitors to copy? What benefit can be clearly communicated to your customers? Is it easy to understand? Is the benefit really desirable to the customer? Remember you can compete on price, quality, geographic location, services or products, knowledge, implementation, follow up, targeting, doing something better than the next guy, and many other ways. The key to success with your advertising is to pick the strongest one benefit that makes you special. Unless you have a very big advertising budget, you will only be able to communicate one message to your customers. Make sure it is the strongest one you can. Picking your unique selling position is about competitive positioning. The better you have defined and analyzed your competition in your marketing plan, the better you will be able to uniquely position yourself in the market with your advertising. We have provided you with many strategies for differentiating yourself in the marketplace. Please read Competitor Analysis From Your Customers Perspective, Pricing Strategy in Advertising, and Advertising Image, Credibility, and Trust for more information. For your advertising plan, you want a short, one-line description of what makes you special. Until you find your unique selling position, your advertising will not be effective.

7.6 Set Advertising Goals and Objectives

Your marketing plan outlined some broad sales goals for your company. You know the total market size, the strength of your competitors, and the amount of business that may be available for you to take. In your advertising plan, its time to define how you are going to get there. Your advertising plan will be modified according to your choice of media. Direct mail is different from newspaper advertising. How many times you send a brochure will differ from how many times someone reads your ad in the yellow pages. For the purpose of this discussion, lets look at how advertising in the newspaper works. But even if you dont use the newspaper, the basic fundamentals of advertising planning described below apply to you. Sometimes businesses set goals in advertising that are too vague. You want to list specific things that you want your advertising to accomplish. To give you a better idea of specific goals that you may choose, please read What Your Print Advertising Can Do and write down your goals.
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Remember, ads are supposed to do more than just bring you customers -they are supposed to bring you more profitable customers.

7.7 Goal setting Part Two

Your number one goal is probably to reach a certain level of dollar sales. Lets take a look at how you plan to achieve your sales goal. And stick with us here its time to do some math. Step One You start by dividing your desired sales by the value of each customer. This will give you the number of customers your ads need to bring you over a given time period to achieve your desired sales. [Desired Sales / Value per customer = # of customers required]. Lets work on the assumption that five exposures to your advertising will be enough to generate an understanding of your message for the target audience. [If you have been running your ads consistently, it would only take two or three exposures]. Step Two OK. You know how many customers you need. You believe that each customer needs to see your ad five times before they seriously consider your current offer. Now you are trying to figure out how much space you must buy in how many different newspapers in order to get that number of customers and that number of exposures. [You will want to read Budgeting For Your Advertising Campaign for additional help on this]. If you have carefully positioned your company with a unique selling position [USP], and you are making a competitive offer, then you can assume a certain rate of response from your target audience. If your offer is at least equal to the competitions, then your market share should be close to the share of total market advertising that you run. In other words, if you run 10% of the total advertising in the market, then over time you should get 10% of the total business, everything else being equal. Of course the better you position yourself, the better you target your customers, and the better your advertising strategy, the better you will do. Alternatively, poor strategy and low quality advertising will get you bad results.

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But ultimately, only experience will really tell you what you are going to get. If you are just starting out, you are going to have to guess at your customer response rate. And dont be overly optimistic. Budget for the long haul. Read Newspaper Advertising for more on this. The good news is that by measuring your response rate over time, you will be able to calculate the effectiveness of any given advertising campaign. And, you will be able to accurately predict how many customers will walk in the door on a regular basis. Read Testing and Tracking Ads for more. So lets say that you expect a .01 response rate [1 percent]. For every one hundred people in your target audience that is exposed to your ad five times over a given time period, you will get one customer. Now you know how many exposures you need to achieve among your target audience. [If you want 50 customers, you need 50 x 100 = 5000 target customers x 5 exposures each = 25,000 exposures]. Step Three Now you look at the demographic profile that your newspaper is promising you. If your newspaper promises you 5,000 people in your specific target audience, then you can expect to get 50 customers when 5,000 x .01 percent of them have seen your ad five times each. If your newspaper cant deliver that big of an audience, then you cant expect that big of a response. To get your 50 customers, you know you will have to do additional advertising elsewhere. But even if your newspaper can deliver, how much space do you have to buy? Well, if you took out a full-page ad five days in a row, you would get your 50 customers. Alternatively, if you ran a classified ad once per month, you would probably never get your 50 customers. Here is a rough estimate of what happens in the real world when people read the newspaper. With a full-page ad, you would get 75% of the people to notice it. A half page would get you 50% of the people. A quarter page ad would get you 30% of the people. An eighth page ad would get you 15%. A sixteenth would get you 8% or so. Thus, your 1/8 page ad would be seen by 15% of the 5,000 people in your target audience each time it runs. If you need 25,000 exposures to get your 50 customers, then you need to run your 1/8 page ad .15 x 5000 x 33 times = 25,000 exposures. You need to run your ad 33 times to get the required exposure.

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Now we have some good information. You know that you have to pay to produce and run your ad 33 times to get 50 customers. So, what is the lifetime value per customer versus the cost of getting that customer? You can now answer that question, and determine if you should invest in newspaper advertising. One more note here. This was a simplified example. Your ad may get a huge response immediately, depending on how good it is. And sales build over time as you keep your ads running. If you are a consistent advertiser, your customers will look for your ads. You may only need to run it a few times to get all 5,000 people to understand your offer. That is the value of consistent advertising. The best we can do up front is to estimate what is going to happen, and make sure we are being realistic about what our ads can do. Advertising planning is about making the best decisions based on what we know, and what we can estimate. For more information on how best to use media, please read Using Media More Effectively.

7.8 Set A Sustainable Budget For Your Advertising

As we always say, consistent advertising is the key to success. Budgeting for consistent advertising therefore is critical. Please read Budgeting For Your Advertising Campaign for more. Here are some additional ideas to consider when setting your budgeting plan. 1. Small businesses commonly spend 1 3% of sales on their advertising. For many companies, like jewelry stores, theaters, and furniture or appliance stores, the normal expenditure is 4 7%. 2. It is more effective to reinforce a strong selling season with more advertising than to strengthen a weak selling season. Only reduce your advertising during peak seasons if you cant handle the volume of business coming in. 3. Your advertisement must be large enough to contain all of the information consumers need to make a contact decision. You must budget to buy a big enough space. And of course you want to run the ad as regularly as you can. In the newspaper, this means every week. You can skip every fourth week if you really need to, and you can skip every other week off-season [although we dont normally recommend it]. But an ad that does not contain enough information, or that does not appear on a regular basis, will fail.

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4. Many things will affect your advertising budget. If your store is in a poor location, you are going to have to outspend your better-located competition to bring people in. [Often its better to pay for a superior location]. If you are a new business, you must outspend the competition. A rough formula is to spend 20% - 50% more than your desired market share as a percentage of total advertising in the market. [If you want 20% of the market, then you buy 30% of the total advertising in the market until you get your 20% market share]. If you are an existing company with a good reputation, you can do less advertising, or you can focus more of your advertising on your repeat customers. But you must always watch what the competition is doing, and respond. If someone is outspending you, they will eventually take your market share. 5. Any money you spend on advertising outside of your trade area is a complete waste. Ask your customers where they live, and draw a circle around your location on a map. Only advertise within that circle, unless you cant avoid it, or there are special circumstances. 6. Your advertising budget should align with your sales. If you made a chart of your advertising budget expenditures over time, it should follow your sales almost exactly. If there are peaks and valleys in your advertising, while your sales remain constant, then you need to smooth out your advertising to better match your sales. 7. Before you decide to increase your advertising budget because of weak sales, make sure that advertising is your problem. Weak sales are not necessarily a reflection of poor or under-funded advertising. [This is an advertising firm telling you this]. Before you increase your advertising, do a competitive review to make sure you are properly positioned and competitive. Also talk to your customers to see what is going on. Advertising cant make up for poor service or quality. 8. Keep some flexibility in your advertising budget for emergencies and opportunities. Keep a contingency fund available for special circumstances, special deals, competitor actions, etc. 9. If you want to reallocate your advertising budget, test your ideas slowly. Try smaller changes, and watch for results. The key to effective advertising is to test not only your message, media, and offer - but also your advertising schedule.

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7.9 Choose Your Media

For this example of advertising planning, we are discussing using the newspaper for your advertising. So, which newspaper is best, and why? Part of the answer to that question will be found in Using Media More Effectively. That chapter will help you in selecting and using any of the different forms of media, including newspapers. You will also want to read Newspaper Advertising if you are running a newspaper campaign. For this advertising planning example, consider the following points before you select what newspaper to use: 1. What are the demographics the paper is offering? The publisher will send you a complete description of their market. How well is your specific target group represented? How well is your trade area covered? Compare different local newspapers against each other for better coverage of your market. 2. Depending on your target market size, dont overlook the small community newspapers and newsletters. A community paper may cover your trade area much better than a larger regional paper. Local papers are inexpensive to advertise in, and they are well read. Communities like their own little newspapers, and people read them to get the local scoop. And dont forget that the regional paper can sell you advertising that only appears in your local market. It costs a little more per person reached, but you are reaching the right people. 3. How much will it cost? You measure media cost by dividing the cost of the media by the total number of viewings or impressions you get [how many people in your target market that see your ad]. It is common to talk about your cost per thousand impressions, or your CPM. [Cost / # of target market viewings X 1000 = CPM]. In the simplest example, if two newspapers are charging the same amount for an ad space, and one paper delivers twice as many people in your target audience, then your cost per thousand is half what it is in the other paper.
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Dont assume that one paper is better than another. Talk to your customers, and ask them what they read and why. Ask them if they read each newspaper by name, and how often they read it. Ask if they are subscribers, and ask how many other people in the house [and in your target audience] read the paper. Make each newspaper send you their demographic information [in writing not verbally from the salesperson]. Tell them exactly who your target audience is, and ask how they specifically target that audience. Each newspaper has special sections, issues, and coverage that are designed to appeal to specific target audiences. What do they have for your target audience? Remember, the most important thing is whether or not the paper is being read by your target group. A large, regional paper may have a huge subscriber base of people that only lightly read the paper [except on Sunday when they read it thoroughly]. A local, weekly paper focusing on your specific neighborhood may get read cover to cover, every time. Ask your customers. 4. You normally want to advertise in the same newspaper as your competition is advertising in. That is probably where most of your clients are looking for information. Sometimes this goes against some of the other strategies for picking the best paper to run your ad in. If you can, run ads in different papers for six to eight weeks with different coupons, and see which works better. The longer test you run, the better. Testing is the key to effective advertising. 5. It is a good strategy to spend your advertising budget where your current customers are coming from. Certainly you can try new outlets for getting new customers, but it is normally more expensive to get new customers from new media than it is to get new customers from your regular media. As always, go slow, and test. 6. There is also advertising theory to consider when you decide on what newspaper to choose. The recency theory of advertising states that you want to reach as many people as you can as close to the time that they are going to make a purchase as possible. This means that you want them to receive your advertisement in the Saturday morning newspaper for their Saturday afternoon shopping. To best take advantage of this timing, you may have to change what newspaper you are advertising in. As always, testing is the way to find out.

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7.10 Timing & Scheduling

Your goal as an advertiser is to hit the right prospect with the right advertising message at the right time. To do this, you need an advertising schedule. We discussed recency theory in advertising. You want your clients to see your message as close as possible to the time that they are ready to make a purchase. The key to success is to know when your customers are ready to buy, and to get your message to them at that time. The very best way to predict future consumer behavior is to keep good records of your previous sales. If you know that during the month of May you did 20% of your annual sales, then you can safely predict that you will do it again next May. If you know that you did one-third of your weekly sales on Friday, then you can safely predict that you will do it again. Your advertising budget and your advertising scheduling should reflect these predictions. If you predict that you are going to do 20% of your sales in May, then you should schedule to spend 20% of your advertising budget in May. If you want to increase your May sales, then you should increase your advertising accordingly. Here are some tips on scheduling your advertising: 1. You want to schedule and budget your advertising on a weekly basis. Also track your expenditures, and track the resulting sales. This will give you excellent control, and you will be ready to go when you plan your advertising next year. There is a great and simple tool to do this. Please see The Advertising Calendar for more. 2. You want to pay attention to things that affect your sales, and schedule your advertising accordingly. For example: A. What day is payday for local, large employers? Alternatively, if everyone is broke on the first of the month, you may want to cut back on your advertising. Measure your sales accurately, and find out.

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B.

What promotions will your suppliers be having during the year? You want to take full advantage of any national advertising they will be doing by running your ads at the same time. Ask your suppliers.

C. What annual promotions do your competitors do? If they are bigger than you, you may gain additional sales by riding on their coat tails. If you are really good, you might beat them badly with a better offer while they are running their biggest sale of the year. D. What days of the week do you get the most traffic? Remember, its easier to increase traffic on heavy days than on slow days. What related merchandise will be getting increased promotion in your area? Can you associate yourself with other big merchandising events? Pizza companies have done well to run promotions during football season. What can you tie into? What special dates and events should you try to promote? Which should you try and avoid? Track your sales to find out what days seem stronger, and schedule your advertising accordingly. For example, you may not want to compete against the county fair, or a super big annual sale from other local retailers, even if they are not your direct competition.

E.

F.

3. Work with your media representative so that you understand the required lead time for placing ads. Dont forget to give your ad designers as much time as possible to get the best quality work. 4. Monitor your competition, and any national advertising, to understand what lead-time they give before the start of the season. Certainly Christmas starts earlier every year. What is happening in your business? You want to schedule accordingly. This also applies to new product rollouts. You can build expectation among your prospects if you advertise new items ahead of time. Normally your advertising increases as the release date gets closer. What works for other stores? What does your supplier recommend? Will they put their money behind their recommendation? 5. Dont forget that consistent advertising is effective advertising. For a new advertiser, it may take five or more impressions for a person to even notice your offer. For a consistent advertiser, your clients may respond immediately to a new offer.

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6. The number of impressions you are going to have to make with your target audience depends on the complexity of your offer. If your offer is hard to understand, you are going to have to run your ad with more frequency, or longer, than if the offer is simple. 7. Dont forget that you want to run your ad on the same days, and in the same place, as your competitors do. If people expect to find your type of business in the metro section of the Thursday evening newspaper, then that is where you have to be. If you run your ad on Wednesday, or if you run it in the sports section, they probably wont even see it. 8. Dont forget that ads wear out. A strong ad may run once a week for a very long time in the newspaper, but you should be testing other offers and other ads to see if you can do better. As a general rule, when the majority of your target audience has seen your ad twenty times, it time to change your ad.

7.11 Dont Reinvent the Wheel

Before you finalize any advertising plan, go and read Things Not To Do In Business Advertising, and evaluate your plan according to our recommendations there. You dont want to reinvent the wheel. Also, we strongly recommend that you ask a marketing professional to review your ads and your advertising strategy. It really is a very good investment. Your advertising is too important to take chances with.

7.12 Evaluation and Follow Through

You must plan how you are going to track the response to your ads. Read Testing and Tracking Ads for more information. This is pretty simple you only get what you measure. You will never know how good, or how bad, your ads or your marketing materials are unless you test them. You need to measure your results, or all of your planning will be wasted. Effective advertising comes from always trying to beat your previous best ad.

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CHAPTER- 8
* CONSUMER & MARKET ANALYSIS *
8.1 Introduction 8.2 Objectives A. Customer Benefit B. Customer Profile C. Market Customer 83 83 84 87 89

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8.1 INTRODUCTION
The American marketing association defines market research as: "The systematic gathering, recording, and analysis of data about problems relating to the marketing of goods and services". Consumer analysis is an important part of this marketing research. Without marketing research, it is quite impossible today to start any business. Consumer analysis is the first step of any marketing research. In this module, our objective is to develop skills in consumer analysis.

8.2 OBJECTIVES:
Consumer analysis allows you to identify your prospect and segment market. The objectives of this consumer analysis lesson are to give you the fundamental notions about: A. Customer benefit 1. Functional benefit 2. Psychological benefit 3. High and low involvement benefits 4. User and purchaser benefit

B. Customer profile 1. Customer characteristics

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2. Customer buying process

C. Market customer 1. Undifferentiated market 2. Market segments 3. Cluster analysis

A. CUSTOMER BENEFIT: The product must bring a benefit to the customer. Customer benefit = Sales= Profit. No customer benefit, no profit. -Definition: A customer benefit is the value your product or your service gives to the customer. The customer benefit is not the Unique Selling Advantage (USA). The customer benefit is included in the USA, but it focuses on the point of view of the customer and not of the investor. It implies that you put yourself in the shoes of the customer. It means that the customer benefit is a more precise concept than the USA. There are two types of customer benefit: Functional and psychological benefits.

1. Functional benefit: A functional benefit is measured in money, time, duration, or physical measures: Examples: -The product is cheaper than another one: The benefit is measured in money. -This new machine saves the consumer 50% of his time: The benefit can be measured in hours or minutes.
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-This car has a duration twice another car: The benefit is measured in years. -This chair is lighter than another one ( ten kilos instead of twenty). It occupies less space (One square meter instead of two): The benefit is here calculated with physical measures. As time and space can be converted in money, a functional benefit is quite important for a business man. If your corporate sells its products to other corporate ( business to business) you must emphasize the functional benefit.

2. Psychological benefit : A psychological benefit gives to the customer a pleasant feeling such as self esteem, feeling of power, pleasant view and so on. Examples: -This product looks attractive and beautiful: Beauty depends on subjective choice. -This big and expensive car allows you to enjoy speed: As traffic regulations limit speed, the benefit is only a feeling of power. For starting a business, we recommend to focus on the functional benefit that does not depend on fads. It does not prevent you to add further some psychological benefits. The next drawing shows a product offering both functional and psychological benefits.

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As a good or a service offers different kinds of benefits. You have to rate them from 1 (low) to 5 (very high) according to their importance for the customer. Of course a low price is rated 5 because it represents a greater benefit to the customer than a high price. In the next drawing the product offers a low price (functional benefit) and is quite attractive (psychological benefit). On the contrary, it does not save any time: It can be a fashionable gadget.

Once again, try to forget your own point of view. May be, you think that your low price is an important benefit but in asking around you, you will realize that the customer emphasizes on the time saved, thanks to your product. This analysis is important because it allows you to target your advertisement on the benefits which really matter for the customers. 3. High and low involvement benefits: Now, we have to examine another topic: Are these functional or psychological benefits quite important for the customer. It means that we have to distinguish low and high involvement products. Definition: If a consumer pays attention to buy a product, then it is considered as a high involvement product. If he does not pay too much attention, there is a low involvement product. Of course, all the expensive products are always high involvement products: Flats, cars, antiques and so on. Nevertheless, some inexpensive products can be said high involvement products: For example, the consumers pay attention in buying cheap drugs because health is an important stake. What is more, this feature depends also on the customer: For example, a fashionable dress is a psychological benefit but it becomes also a high involvement item for a theater actor who is mainly judged on his appearance. So, it is always fruitful to bring some high involvement topics to your product. For example, if you can assert that your yogurt contains specific vitamins, you bring a high involvement feature
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to a quite basic product. It enables you to differentiate your product from the competition and to charge a high price. Finally, the product which gives the greater benefit to the consumer must gather both three characteristics: Functional benefits, psychological benefits, high involvement features.

In this drawing, the big circle represents a star because the product combines both functional, psychological and high involvement benefits. 4. User and purchaser benefit: During this analysis, you have to distinguish the user and the purchaser In business to business, you sell a big computer or a software to the heads of the corporate and you are not keeping in touch with the final consumer. Nevertheless, you have to emphasize on the user benefit because the head will not buy a product deprived of benefits ! In business to consumer, you sell to a wholesaler or a retailer. Of course you must emphasize on the final customer benefit but you have also to take in account the wholesaler or retailer benefit. These business intermediaries should mainly focus on some functional benefit such as margins or time saving in the delivery of the product.

2-CUSTOMER PROFILE: The customer profile is deduced from the customer benefit. It includes also the customer buying process. Definition: The customer profile describes the characteristics of the customer who could really benefit of your product or service.

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Clearly, if you intend to sell fun boards, your customer profile is not those of aged persons! 1. Customer characteristics : You can start by defining your ideal customer and list all characteristics you will expect in this profile: -Business to consumer: The main characteristics are quite unlimited: Geographic area, age, sex, income, level of study, employment and so on. So keep close to your benefit analysis and just list the characteristics that correspond to the benefits you offer: If you sell bathing suit, you will not care for people living in north pole. If you sell fur clothes, do not loose your time with the characteristics of people living in Central Africa! -Business to business: The main characteristics are the company size, the products or services, the level of technology, the turnover, the staff number, the location and so on. You must describe the required customer profile according to your product or service Example: What's the customer profile for fun board? -Demographic characteristics: 15 to 25 years old, male, and healthy -Economic characteristics: Student or young professional, not less than $30,000 income coming from parents or work. -Social characteristics: Middle and upper-middle class. -Geographical area: North America, Australia, Northern Europe. -Special interests: Sport like and sea like. You just have to think in order to define your customer profile: Of course, he is a young man. He has good money because you cannot afford to buy a fun board when you are short for your daily living. So, you can expect that he comes from developed countries. Obviously, he likes sports and sea very much. Why do you need all these characteristics? The response is that you need the larger information to channel effectively your advertisement: For example, the fact to know where he is located will conduct you to advertise mainly in English and in sportsmen newspapers. 2. Customer buying process:

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According to your customer profile, you have to focus on the customer buying process. It is not the same thing to buy a candy, a car or a real estate. You have to emphasize on the following aspects. I call it the DTHP process: -Who is the decision making person? In business to business, the purchaser may be a top ranking executive: The more hierarchical levels involved, the more difficult the sale. In business to consumer, the buying process could imply on person or the entire family. The same observation applies: The more individuals or groups involved, the more difficult the sale. -At what time or period, does he buy? Consider frequency and regularity of the purchases. Some business follow seasoning periods such as the toys, the bathing suit. This period can be short: For example, the selling of flowers on sunday, or the clothes during the discount periods. -How does he buy: The buying decision includes the following process? -The customer becomes aware of a need: The need could originate from an impulse (candy) or from a recognized deficiency (such as a refrigerator) -The customer begins to explore how meeting the need: He reads newspapers, yellow pages, and so on. It is very important to know how does he explore to target advertisement channels. -According to the need and his income, the customer refines the buying criteria and defines a budget. -He narrows the field of his choice in comparing quality/price ratio. He could need physical touch or face to face interaction such as a test drive. -Finally he closes the sales. In many process, he needs to be helped by a salesman! How does he pay: Does he use cash, check, or credit card? Does he ask for times payment? Does he need a loan? If you could link some financial services to your product, such as times payments, it should give you a high advantage especially for expensive items.

C. MARKET CUSTOMER: You do not intend to sell to only one person. So knowing the customer profile, you have now to group all the persons sharing the same profile: It is your market customer Definition: A market is a group of customers ( or prospects ) sharing the characteristics which cope with the benefits offered by your product or service.
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Example: -There is a group of persons eager to travel: there is the tourist market. -There is a group of persons who use car. There is the car market. Then we have to separate undifferentiated markets and market segments. 1. Undifferentiated market If your product brings benefits to everyone, you can treat the market as a whole. For example, anybody whatever his age, sex or revenue drink soda. Nevertheless, you have to take notice of the geographical area. For a retailer, the soda market is around his shop. For Coca cola, that is the entire world. 2. Market segments In most cases, inside a broad market, you have to differentiate segments. It means that the market segmentation is one of the most basic concepts in marketing. Definition: The market segmentation is the process of splitting customers within a market customer, into different groups sharing some specific characteristics. Compare with the definition of the market customer. The important word is the adjective "specific". Among the common characteristics of your market customer, you only focus on some "specific characteristics". Examples: -If your project is to manage an hostel, the tourist market is your customer market but it is not very useful. The tourist market includes cruisers, hostels, tour trip, trekking and so on. Within the tourist market, you have to study the hostel market and inside this broad segment the specific one which corresponds to the benefit your hostel will offer ( Is it a five stars or a two stars hostel? is it located on sea shore or in the Rocky Mountains?) -We have defined above the customer profile for fun board and consequently our customer market. Right now, we will focus on only one geographical characteristic. It means, for example, that we only focus on North America and inside it on USA. In doing so, we isolate a market segment within our broad market. With a segment you can execute your advertising activities to yield your business targets. Without a segment, you risk wasting money.

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Once again, three major variables are used : - Geographic segmentations divide the market by country, region and city: It is often a good starting point to begin with a single geographical territory. Once you have completed the segmentation for it, you can test the applicability to other and larger areas. - Demographic segmentations divide the population on measurable variables such as age, sex, income, educational level and so on, - Psychological segmentation is often quite difficult and needs costly surveys. 3. Cluster analysis To target your customers, you can split the segment into little groups according to a multi-criteria approach: Example: With our fun board market, we have defined a market segment in Arizona. Now, we shall split this segment in clusters, according to new criteria's: People who focus on price, people who had subscribed life insurance, people who only buy from well known brand. Summary: A product or a service must bring a benefit to the customer. The customer benefit may be functional and psychological. It may represent a low or a high involvement. The best benefit gathers both functional, psychological and high involvement features. Any benefit analysis must be conduct both for the user and the purchaser. The customer profile is deduced of the customer benefit. A market gathers the customers who share the same profile and who could benefit from the product. A market segment focuses on some specific characteristics of the customer profile. It must be homogeneous, consistent, profitable and executable.

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CHAPTER 9
*MARKETING PLAN*
9.1 Introduction 9.2 Marketing Planning & Process 9.3 Planning & Objectives 9.4 Detail of the Marketing Plan 9.5 Content of the Marketing Plan 9.6 Measurement of Progress 9.7 Performance Analysis 9.8 Budgets as Managerial Tools 93 93 94 97 98 99 99 101

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9.1 INTRODUCTION:
A marketing plan or business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. Marketing plans may also target changes in perception and branding by the customer, client, taxpayer, or larger community. When the existing business is to assume a major change or when planning a new venture - a 3 to 5 year business plan is essential. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.

9.2 THE MARKETING PLANNING PROCESS:

Marketing process can be realized by the marketing mix in step 4. The last step in the process is the marketing controlling. In most organizations, "strategic planning" is an annual process, typically covering just the year ahead. Occasionally, a few organizations may look at a practical plan which stretches three or more years ahead.

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To be most effective, the plan has to be formalized, usually in written form, as a formal "marketing plan." The essence of the process is that it moves from the general to the specific, from the vision to the mission to the goals to the corporate objectives of the organization, then down to the individual action plans for each part of the marketing program. It is also an interactive process, so that the draft output of each stage is checked to see what impact it has on the earlier stages, and is amended.

9.3 PLANNING AND OBJECTIVES:

Behind the corporate objectives, which in themselves offer the main context for the marketing plan, will lie the "corporate mission," which in turn provides the context for these corporate objectives. In a sales-oriented organization, the marketing planning function designs incentive pay plans to not only motivate and reward frontline staff fairly but also to align marketing activities with corporate mission. This "corporate mission" can be thought of as a definition of what the organization is, of what it does: "Our business is This definition should not be too narrow, or it will constrict the development of the organization; a too rigorous concentration on the view that "We are in the business of making meat-scales," as IBM was during the early 1900s, might have limited its subsequent development into other areas. On the other hand, it should not be too wide or it will become meaningless; "We want to make a profit" is not too helpful in developing specific plans. A bell suggested that the definition should cover three dimensions: "customer groups" to be served, "customer needs" to be served, and "technologies" to be used. Thus, the definition of IBM's "corporate mission" in the 1940s might well have been: "We are in the business of handling accounting information [customer need] for the larger US organizations [customer group] by means of punched cards [technology]." Perhaps the most important factor in successful marketing is the "corporate vision." Surprisingly, it is largely neglected by marketing textbooks, although not by the popular exponents of corporate strategy - indeed, it was perhaps the main theme of the book by Peters and Waterman, in the form of their "Super ordinate Goals." "In Search of Excellence" said: "Nothing drives progress like the imagination. The idea precedes the deed."If the organization in general, and its chief executive in particular, has a strong vision of where its future lies, then there is a good chance that the organization will achieve a strong position in its markets (and attain that future). This will be not least because its strategies will be consistent and will be supported by its staff at all levels. In this context, all of IBM's marketing activities were underpinned by its philosophy of "customer service," a vision originally promoted by the charismatic Watson dynasty. The emphasis at this stage is on obtaining a complete and accurate picture.

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A "traditional" - albeit product-based - format for a "brand reference book" (or, indeed, a "marketing facts book") was suggested by Godley more than three decades ago: Financial dataFacts for this section will come from management accounting, costing and finance sections. Product dataFrom production, research and development. Sales and distribution data - Sales, packaging, distribution sections. Advertising, sales promotion, merchandising data - Information from these departments. Market data and miscellany - From market research, which would in most cases act as a source for this information. His sources of data, however, assume the resources of a very large organization. In most organizations they would be obtained from a much smaller set of people (and not a few of them would be generated by the marketing manager alone). It is apparent that a marketing audit can be a complex process, but the aim is simple: "it is only to identify those existing (external and internal) factors which will have a significant impact on the future plans of the company." It is clear that the basic material to be input to the marketing audit should be comprehensive. Accordingly, the best approach is to accumulate this material continuously, as and when it becomes available; since this avoids the otherwise heavy workload involved in collecting it as part of the regular, typically annual, planning process itself - when time is usually at a premium. Even so, the first task of this annual process should be to check that the material held in the current facts book or facts files actually is comprehensive and accurate, and can form a sound basis for the marketing audit itself. The structure of the facts book will be designed to match the specific needs of the organization, but one simple format - suggested by Malcolm McDonald - may be applicable in many cases. This splits the material into three groups: Review of the marketing environment. A study of the organization's markets, customers, competitors and the overall economic, political, cultural and technical environment; covering developing trends, as well as the current situation. Review of the detailed marketing activity. A study of the company's marketing mix; in terms of the 7 Ps.

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Review of the marketing system. A study of the marketing organization, marketing research systems and the current marketing objectives and strategies. The last of these is too frequently ignored. The marketing system itself needs to be regularly questioned, because the validity of the whole marketing plan is reliant upon the accuracy of the input from this system, and `garbage in, garbage out' applies with a vengeance.

Portfolio planning. In addition, the coordinated planning of the individual products and services can contribute towards the balanced portfolio. 80:20 rule. To achieve the maximum impact, the marketing plan must be clear, concise and simple. It needs to concentrate on the 20 percent of products or services, and on the 20 percent of customers, that will account for 80 percent of the volume and 80 percent of the profit. 7 Ps: Product, Place, Price and Promotion, Physical Environment, People, Process. The 7 Ps can sometimes divert attention from the customer, but the framework they offer can be very useful in building the action plans. It is only at this stage (of deciding the marketing objectives) that the active part of the marketing planning process begins. This next stage in marketing planning is indeed the key to the whole marketing process. The "marketing objectives" state just where the company intends to be at some specific time in the future. James Quinn succinctly defined objectives in general as: Goals (or objectives) state what is to be achieved and when results are to be accomplished, but they do not state "how" the results are to be achieved.[3] They typically relate to what products (or services) will be where in what markets (and must be realistically based on customer behavior in those markets). They are essentially about the match between those "products" and "markets." Objectives for pricing, distribution, advertising and so on are at a lower level, and should not be confused with marketing objectives. They are part of the marketing strategy needed to achieve marketing objectives. To be most effective, objectives should be capable of measurement and therefore "quantifiable." This measurement may be in terms of sales volume, money value, market share, percentage penetration of distribution outlets and so on. An example of such a measurable marketing objective might be "to enter the market with product Y and capture 10 percent of the market by value within one year." As it is quantified it can, within limits, be unequivocally monitored, and corrective action taken as necessary. The marketing objectives must usually be based, above all, on the organization's financial objectives; converting these financial measurements into the related marketing
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measurements. He went on to explain his view of the role of "policies," with which strategy is most often confused: "Policies are rules or guidelines that express the 'limits' within which action should occur. Simplifying somewhat, marketing strategies can be seen as the means, or "game plan," by which marketing objectives will be achieved and, in the framework that we have chosen to use, are generally concerned with the 8 P's. Examples are: Price - The amount of money needed to buy products Product - The actual product Promotion (advertising)- Getting the product known Placement - Where the product is located People - Represent the business Physical environment - The ambiance, mood, or tone of the environment Process - How do people obtain your product Packaging - How the product will be protected

In principle, these strategies describe how the objectives will be achieved. The 7 Ps are a useful framework for deciding how the company's resources will be manipulated (strategically) to achieve the objectives. However, they are not the only framework, and may divert attention from the real issues. The focus of the strategies must be the objectives to be achieved - not the process of planning itself. Only if it fits the needs of these objectives should you choose, as we have done, to use the framework of the 7 Ps.The strategy statement can take the form of a purely verbal description of the strategic options which have been chosen. Alternatively, and perhaps more positively, it might include a structured list of the major options chosen. One aspect of strategy which is often overlooked is that of "timing." Exactly when it is the best time for each element of the strategy to be implemented is often critical. Taking the right action at the wrong time can sometimes be almost as bad as taking the wrong action at the right time. Timing is, therefore, an essential part of any plan; and should normally appear as a schedule of planned activities.Having completed this crucial stage of the planning process, you will need to re-check the feasibility of your objectives and strategies in terms of the market share, sales, costs, profits and so on which these demand in practice. As in the rest of the marketing discipline, you will need to employ judgment, experience, market research or anything else which helps you to look at your conclusions from all possible angles.

9.4 DETAIL OF THE MARKETING PLAN:

At this stage, you will need to develop your overall marketing strategies into detailed plans and program. Although these detailed plans may cover each of the 7 Ps (marketing mix), the focus will vary, depending upon your organization's specific strategies. A product-oriented company will focus its plans for the 7 Ps around each of its products. A market or geographically oriented
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company will concentrate on each market or geographical area. Each will base its plans upon the detailed needs of its customers, and on the strategies chosen to satisfy these needs. Brochures and Websites are used effectively. Again, the most important element is, indeed, that of the detailed plans, which spell out exactly what programs and individual activities will take place over the period of the plan (usually over the next year). Without these specified - and preferably quantified - activities the plan cannot be monitored, even in terms of success in meeting its objectives.It is these programs and activities which will then constitute the "marketing" of the organization over the period. As a result, these detailed marketing programs are the most important, practical outcome of the whole planning process. These plans must therefore be: Clear - They should be an unambiguous statement of 'exactly' what is to be done. Quantified - The predicted outcome of each activity should be, as far as possible, quantified, so that its performance can be monitored. Focused - The temptation to proliferate activities beyond the numbers which can be realistically controlled should be avoided. The 80:20 Rule applies in this context too. Realistic - They should be achievable. Agreed - Those who are to implement them should be committed to them, and agree that they are achievable. The resulting plans should become a working document which will guide the campaigns taking place throughout the organization over the period of the plan. If the marketing plan is to work, every exception to it (throughout the year) must be questioned; and the lessons learnt, to be incorporated in the next years.

9.5 CONTENT OF THE MARKETING PLAN:

A marketing plan for a small business typically includes Small Business Administration Description of competitors, including the level of demand for the product or service and the strengths and weaknesses of competitors A. Description of the product or service, including special features B. Marketing budget, including the advertising and promotional plan C. Description of the business location, including advantages and disadvantages for marketing D. Pricing strategy E. Market Segmentation

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Medium and large sized organizations: The main contents of a marketing plan are: 1. 2. 3. 4. 5. 6. 7. 8. Executive Summary Situational Analysis Opportunities / Issue Analysis - SWOT Analysis Objectives Strategy Action Program (the operational marketing plan itself for the period under review) Financial Forecast Controls

9.6 MEASUREMENT OF PROGRESS

The final stage of any marketing planning process is to establish targets (or standards) so that progress can be monitored. Accordingly, it is important to put both quantities and timescales into the marketing objectives (for example, to capture 20 percent by value of the market within two years) and into the corresponding strategies. Changes in the environment mean that the forecasts often have to be changed. Along with these, the related plans may well also need to be changed. Continuous monitoring of performance, against predetermined targets, represents a most important aspect of this. However, perhaps even more important is the enforced discipline of a regular formal review. Again, as with forecasts, in many cases the best (most realistic) planning cycle will revolve around a quarterly review. Best of all, at least in terms of the quantifiable aspects of the plans, if not the wealth of backing detail, is probably a quarterly rolling review - planning one full year ahead each new quarter. Of course, this does absorb more planning resource; but it also ensures that the plans embody the latest information, and - with attention focused on them so regularly - forces both the plans and their implementation to be realistic.

9.7 PERFORMANCE ANALYSIS:

The most important elements of marketing performance, which are normally tracked, are: A. Sales analysis: Most organizations track their sales results; or, in non-profit organizations for example, the number of clients. The more sophisticated track them in terms of 'sales variance' - the deviation from the target figures - which allows a more immediate picture of deviations to become evident.

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`Micro-analysis', which is simply the normal management process of investigating detailed problems, then investigates the individual elements (individual products, sales territories, customers and so on) which are failing to meet targets.

B. Market share analysis: Few organizations track market share though it is often an important metric. Though absolute sales might grow in an expanding market, a firm's share of the market can decrease which bodes ill for future sales when the market starts to drop. Where such market share is tracked, there may be a number of aspects which will be followed: overall market share segment share - that in the specific, targeted segment relative share -in relation to the market leaders annual fluctuation rate of market share also the specific market sharing of customers.

C. Expense analysis: The key ratio to watch in this area is usually the `marketing expense to sales ratio'; although this may be broken down into other elements (advertising to sales, sales administration to sales, and so on).

D. Financial analysis: The "bottom line" of marketing activities should at least in theory, be the net profit (for all except non-profit organizations, where the comparable emphasis may be on remaining within budgeted costs). There are a number of separate performance figures and key ratios which need to be tracked: gross contribution<>net profit gross profit<>return on investment net contribution<>profit on sales The above performance analyses concentrate on the quantitative measures which are directly related to short-term performance. But there are a number of indirect measures, essentially tracking customer attitudes, which can also indicate the organization's performance in terms of

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its longer-term marketing strengths and may accordingly be even more important indicators. Some useful measures are: market research - including customer panels (which are used to track changes over time) lost business - the orders which were lost because, for example, the stock was not available or the product did not meet the customer's exact requirements customer complaints - how many customers complain about the products or services, or the organization itself, and about what E. Use of marketing plans: A formal, written marketing plan is essential; in that it provides an unambiguous reference point for activities throughout the planning period. However, perhaps the most important benefit of these plans is the planning process itself. This typically offers a unique opportunity, a forum, for information-rich and productively focused discussions between the various managers involved. The plan, together with the associated discussions, then provides an agreed context for their subsequent management activities, even for those not described in the plan itself. Additionally, marketing plans are included in business plans, offering data showing investors how the company will grow and most importantly, how they will get a return on investment.

9.8 BUDGETS AS MANAGERIAL TOOLS:

The classic quantification of a marketing plan appears in the form of budgets. Because these are so rigorously quantified, they are particularly important. They should, thus, represent an unequivocal projection of actions and expected results. What is more, they should be capable of being monitored accurately; and, indeed, performance against budget is the main (regular) management review process. The purpose of a marketing budget is, thus, to pull together all the revenues and costs involved in marketing into one comprehensive document. It is a managerial tool that balances what is needed to be spent against what can be afforded, and helps make choices about priorities. It is then used in monitoring performance in practice. The marketing budget is usually the most powerful tool by which you think through the relationship between desired results and available means. Its starting point should be the marketing strategies and plans, which have already been formulated in the marketing plan itself; although, in practice, the two will run in parallel and will interact. At the very least, the rigorous, highly quantified, budgets may cause a rethink of some of the more optimistic elements of the plans

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CHAPTER 10

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*ADVERTISING COMMUNICATION SYSTEM*

10.1 Introduction 10.2 Elements of Advertisement Communication System A. Marketing Communication System B. Customer Communication System 10.3 Factors Affecting Advertising Campaign 103 103 103 105 107

10.1 INTRODUCTION
Advertising communication always involves a perception process and four of the elements shown in the model: the source, a message, a communication channel, and a receiver. In addition, the receiver will sometimes become a source of information by talking to friends or associates. This type of communication is termed word-of-mouth communication, and it involves social interactions between two or more people and the important ideas of group influence and the diffusion of information.

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An advertising message can have a variety of effects upon the receiver. It can Create awareness Communicate information about attributes and benefits Develop or change an image or personality Associate a brand with feelings and emotions Create group norms Precipitate behavior

10.2 ELEMENTS OF ADVERTISING COMMUNICATION SYSTEM:

Advertising communication system has two important elements: 1. MARKETING COMMUNICATION SYSTEM 2. CONSUMER COMMUNICATION SYSTEM

1. MARKETING COMMUNICATION SYSTEM:

Marketing communications is essentially a part of the marketing mix. The marketing mix defines the 4Ps of marketing and Promotion is what marketing communications is all about. It is the message your organization is going to convey to your market. You need to be very particular about different messages you are going to convey through different mediums. Traditionally printed marketing was the whole sole method of conveying the messages to the consumers. However, in recent times, emails, sms, blogs, television and company websites have become the trendy way of conveying the organizations message to the consumers. It is important though that the message you give in one medium should tally with the message provided in other medium. For example, you should use the same logo in on your website as the one you use in your email messages. Similarly, your television messages should convey the same message as your blogs and websites. For the above reason, people controlling the marketing communication process are very important for the company. These executives make it an integrated marketing communication process. You would now understand why it has to be integrated. The reason is that the messages to be conveyed through different mediums should be the same.

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Let us now look at the marketing communication process. It is very important to have a process in place because then your advertising will reap proper benefits. There is an old advertising joke I know my advertising works, I dont know which half. Thats why if the marketing communication process puts a tab on advertising because companies cannot bear to lose dollars on wrong type of advertising. Things have to be well-defined and integrated to get maximum revenues. Your marketing communication process would look like:

The marketing communication process identifies where the investments are being done and what is bringing more return on investment. Therefore, you can alter the advertising campaign to reap maximum benefits. The process begins at the strategic development stage. You start by creating a marketing communications program. At this point, you decide what all will fall in your advertising bracket. At the next stage, you capture responses of your consumers. These responses are then recorded and maintained as advertising data. The executives then analyze and evaluate the collected data. They generate the all important reports which will help to allocate the integrated marketing and communications budget. The integrated marketing communications is a data-driven approach which identifies the consumer insights and develops a strategy with the right combination of offline and online channels which should result in a stronger brand-consumer relationship. It has grown manifolds in recent years due to several shifts in the advertising and media industry. This is the reason why it has developed into a primary strategy for the developers. Some examples of shifts are from media advertising to the multiple forms of communication, from general focus advertising to data based marketing and so on. Selecting the most important communications elements is crucial for the success of companys business. The advertising campaign should be effective across all platforms. Once the integrated
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marketing process is set, the company can reap rich dividends from it. These days, there are companies that specialize in creating the marketing communications process for you. So you can either do it on your own or take their services. But an effective marketing communication process is the order of the day!

2. CONSUMER COMMUNICATION SYSTEM: Consumer communication and persuasion is an essential part of any Marketing Strategy. In fact, it is the starting point of all improvement as consumer voices provide companies with the data such as where they are lacking and what all they could do to improve the product or service. Do all companies listen to the consumer voices? Not really. It is only the ones which have an effective consumer communication process in place, that are really able to focus on consumer needs. Are you one of them? Let us take a look at the consumer communication process at Suntory to understand the Consumer Communication Process.

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This company has set up a Customer Centre which takes up all inquiries, complaints, and proposals from customers. Though most of the queries are answered, the customer voices are sent across to related departments of the company. These departments analyze the gap between the customer needs and the products and services. After doing so, the quality improvements are suggested and the product development takes place in keeping with the customer demands. Consumer communication should be used effectively to drive maximum benefits to the company. You must be thinking how. Let us look at few ways which will help you market effectively even in a downturn. 1. When economy is changing, it is all the more important to get the customer feedback. It is not a good idea to fill their inboxes and mobiles with promotional messages. More so, you can use online surveys to understand how they are thinking and what they want. You can then make changes in your strategies, processes and so on to deliver the product that your consumers are aiming for. 2. It is just not important to feed information to your consumers. Having a dialogue with them from time to time is also important. You can use the email marketing newsletters to invite them for such conversations. Apart from understanding their concerns, showing your consumers that you care is also very important. This will have far-reaching consequence and will benefit your companys image. 3. Try and co-host an event with another local business. This will highlight your products image in a positive manner. This is a kind of customer relationship building activity where you interact face-to-face with the consumer and show him your expertise. 4. Consumers are becoming more and more environmentally aware these days. Anything against the environment would put you in a bad light. So focus that your product or service is following all the environment friendly standards. You can also show your concern by teaming up with local charity and involving your consumers in the event too. The above points can also be used for consumer persuasion too. Face-to-face meetings are more effective in persuading people to buy your stuff. People can judge easily whether what you are saying has substance or not. Therefore, try your level best to portray the positive image of your product in a positive fashion. Once you learn the essence of consumer communication, you would never have to look back.

10.3 FACTORS AFFECTING ADVERTISING COMPAIGN:

An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame.
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The critical part of making an advertising campaign is determining a champion theme as it sets the tone for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities. The campaign themes are usually developed with the intention of being used for a substantial period but many of them are short lived due to factors such as being ineffective or market conditions and/or competition in the marketplace and marketing mix. Following factors which affect an advertising campaign are:1. Choose an appropriate medium to convey your messageThis is so obvious, but you'd be amazed at how many people don't use common sense when buying media. If you're trying to reach a 14 year old, don't buy an ad in the daily paper - buy the radio station that plays hip hop music! Try to target your advertising as much as possible. Think about the person you're trying to reach with your message. The more you know about that person, the easier this will be. If you're selling clothing to working women, buying TV is probably not a good idea. They're probably so busy doing household chores and taking kids to various activities, they probably don't have time to watch much TV. But billboards and radio are great because she's probably on the road a lot and those media fit for that audience.

2. Don't believe that everyone uses media the way you or your spouse doesJust because you don't like a certain program on TV doesn't mean that your potential customer doesn't like it - they may be big fans and never miss an episode. Don't assume that everyone reads the newspaper because everyone you know does. Ask for information about the medium's audience - let your rep show you exactly who is watching/reading/listening/driving by/surfing their medium.

3. Don't judge the price of the ad by the dollar amount aloneJust because an ad is expensive doesn't mean it isn't a good buy - and the opposite is true also. If an ad is cheap, but no one reads or sees it, it's worthless to you. If an ad is reaching tens of thousands of people for $1,000, it might be a good buy if those are the people who are in the market for your product.
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Try to gauge the real value of an ad by the cost per thousand or cost per rating point (for TV, radio & cable). If you're not familiar with those terms, ask your ad rep - they will be happy to fill you in. (And if they aren't, find a new rep.)

4. Develop a relationship with your customers and prospectsThis is another thing that should be obvious, but very few companies actually do this. Proctor and Gamble has found that this is what makes them money. And it makes sense. If people trust your brand and feel that they know your company, they're far more likely to buy your products. This is actually easier to do as a smaller business than a large one - and many local businesses have done this for years. It may be schmaltzy, but when the local furniture store owner is on camera for all his TV commercials, people develop a relationship of sorts with him or her. They feel like they know that business. Anytime you can link a personality - even if it's not a celebrity - to a business that makes that business stand out. This is an important element that there's not nearly enough room to cover - so think this one through for your business and come up with ways (and they can be very simple) to develop a relationship with your customers and prospects. An email newsletter is a simple, cheap and very effective way to do this, by the way.

5. Have a hook. Give people something that makes them remember youBig companies spend millions on this - and for a good reason - it sells stuff. Whatever you do, don't say "for the best in service and quality" - no one will believe you! If you want to convey that message, have one of your customers give a testimonial on camera - have them describe how you provided them with great service and quality. Give details. A hook needs to be simple, memorable and if possible, fun or heartwarming. The Taco Bell Chihuahua is a good example - the Pillsbury Doughboy is another one. Do something different and let people know about it. Give them a reason to choose your company over your competitors.

6. Be relevant. Talk to your prospects in your advertising

let them know that you feel their pain and are going to help them make it go away. If you're talking about something they can't relate to, they'll ignore you. There are way too many advertising messages in the world today - and people have learned to tune them out unless they

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click with something that is important to them. You know how this works - you do the same thing. If you're sick of how your car is nickel & dimming you lately, you suddenly are much more aware of ads for cars. Find out why people buy your product and talk about how you will give that to them. It's really pretty simple - but an overwhelming majority of businesses totally miss this.

7. Make sure you know what you're trying to get your prospect to doDo you want them to come to your store and buy a specific product? Or do you want them to call your business to get an estimate on a project so your sales person can close the sale in person? The more specific you are in your call to action (please make sure to include one!), the more likely your audience will do what you want them to do.

CHAPTER11
*ADVERTISING: MESSAGE STRATEGY & TACTICS*
11.1Introduction 11.2 Comparative Advertising 111 111

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11.3 Effectiveness of Comparative Advertisement 11.4 Misidentification 11.5 Leaders Vs Followers 11.6 Effects on Persuasion 11.7 Refunctioning Adventism 11.8 Emotional Creative Approaches 11.9 Copywriting 11.10 Advertising on the Internet 11.11 Types of T.V. Channels 11.12 Creative Styles

111 112 113 113 116 117 119 123 126 128

11.1 INTRODUCTION
The message strategy is like a foundation for all your marketing. It needs to be strong or your marketing efforts will fall apart. Your message strategy consists of a positioning statement and three support points. They address key target market problems by stating a benefit; i.e. why the target market should care about your product, service or company. A message strategy can be extremely detailed and is like a recipe for all marketing communication. Follow the recipe and you get a good dish. Ah story! Your message strategy makes it easier to deliver the same message across all marketing media including Web sites, brochures, advertisements and presentations to investors, industry analysts and prospects. Consistent execution of the same message is a critical factor in successful marketing. Messages that Matter uses a formal, systematic methodology to help you develop the right message strategy; one that communicates a benefit and can adapt to all marketing communications - brochures, product descriptions, Web sites, sales presentations public relations and advertisements.

11.2 COMPARATIVE ADVERTISING:

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Comparative advertising is a form of advertising in which two or more named or recognizable brands of the same product class are compared and the comparison is made in terms of one or more product attributes. The comparisons can be implicit (brands implied but not named), or explicit (brands named); the comparisons can be verbal or visual; and the claims can be of complete superiority, of superiority on some attributes but not on others, or of parity; and the advertised brand can have a market share smaller than, roughly equal to, or greater than the comparison brand. Obviously, not all types of comparative ads are equally effective, and we will discuss below what is currently known about which types work best.

Different studies conducted in recent years have found that comparative ads often form about 20 to 30 percent of all the ads being run.

11.3 EFFECTIVENESS OF COMPARATIVE ADDS

Is a comparative advertisement more effective than a noncomparative one? Much research has focused on this question, and the evidence on greater effectiveness is often equivocal.' The results seem to vary not only upon the specific kind of comparative ad used and the brands involved, but also on the measure of effectiveness used (attention / recall, perceived similarity, or persuasion) and even the specific questionnaire scales used to measure effectiveness.

the effectiveness of comparative ads sometimes lies not in raising the preference ratings of the advertised brand, but in lowering the preference ratings of the comparison brands, or even in simply increasing the perceived similarity of the advertised and comparison brands without affecting any preference measures at all. It is thus important, in copy testing or tracking the effectiveness of compareative ads, to measure beliefs and preferences not only toward the advertised brand but also toward competition, as well as measure perceived similarities among these brands. If attention and recall are used as the measures of ad effectiveness, various studies have shown that comparative ads do usually get more attention and higher recall than non-comparative ads.

11.4 MISIDENTIFICATION
Consumer advocates and the Federal Trade Commission, which legalized comparative advertising in the U.S. in 1971, have argued that the increased (and more "distinctive")
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information in comparative ads should be beneficial to consumers and increase the chances for better decision making. Many researchers have, however, found that comparative advertising that names competitors can lead to greater consumer confusion about which brand is sponsoring the ad (thus creating awareness and preference for the compared-to_,brand), especially if the ad is being run on TV or radio, where more confusion is likely. Indeed, the frequent occurrence of such "sponsor misidentification" is one of the major criticisms against "direct" comparative advertising (where the comparison brand is explicitly named). It is one reason why many companies prefer to run indirect comparative ads, in which they do not name comparison brands directly but imply them by showing packaging colors or shapes (such as Foigers coffee not naming Maxwell House but showing the other brand packaged in the latter's blue can)

11.5 LEADERS VS FLOWERS

Interestingly, research supports the logic that a direct comparative ad from a small-share market follower is least likely to lead to higher awareness for the compared-to market leader (because the market leader already has high awareness), whereas a market-leading high-share brand has the most to lose from a direct comparative ad (by creating "free" awareness for the compared-to smaller brand). This leads to the conclusion that while low-share brands ought to use direct comparative ads, market leaders perhaps ought to use noncomparative or indirectly comparative ads (those that don't name competitors). Smaller-share market follower brands also stand to gain more from direct comparative ads in another way: such ads have the effect of getting consumers to put both the advertised and the comparison brand in the same "consideration set," by increasing the degree to which they are perceived as similar to each other. Gerald Corn and Charles Weinberg point out that a leading brand might therefore not want to engage in comparative advertising, whereas a challenger brand might gain from associating itself with the leader. Their study found that comparative advertising was much more effective than no comparative advertising in increasing the perceived similarity of the challenger and leader brands, particularly when the leading brand was explicitly named in the ad. Research by Michael Johnson and David Home also shows that comparative ads promote the consumer perception that the brands being compared are similar to each other. These studies thus lend support to the idea that comparative advertising by new brands or challenger brands makes sense as an excellent positioning tool. This similarity-increasing effect, however, seems to depend on the nature of the attributes used: one study suggests that direct comparative ads increase the similarity of the advertised and compared-to brand on attributes not featured in the ad. However, they simultaneously differentiate the brands by lowering consumer perceptions of the compared-to brand on the specific attribute used in the comparison.

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11.6 EFFECTS ON PERSUASION

Thus far, we have talked about how a comparative ad might help the advertised brand by gaining it "extra" attention and by bringing it perceptually "closer" to the comparison brand. Do these gains necessarily also translate into increased preference for the advertised brand? Not always.

These failures could be due, in part, to the fact that these studies often failed to measure (and could not therefore find) possible decreases in consumers' attitudes toward the comparison brand. It has also been shown, however, that comparative ads often fail to sway attitudes and preferences because, while people may indeed notice them more, they nonetheless may consider a comparative ad offensive, less credible, and less informative (especially if they happen to like the brand being shown in a negative light). In fact, there is some evidence that consumers' liking for comparative ads goes up with the "intensity" of the comparative ad, but only up to a point ads that are "too intense" appear to be disliked.

Many studies have shown that comparative ads often evoke such an unfavorable attitudinal reaction because they stimulate more counterarguing by consumers, often because they are perceived as less truthful. Obviously, therefore, comparative ads ought to be designed in ways that try to reduce such counterarguing. Message content that tries to stay as factual and "objective" as possible (as in Figure 12-2 above) can reduce such counterargumentation. It helps to include a credible source, and to get the target audience involved in the ad. so they are motivated to actually make the invited comparison, rather than dismissing it out of hand. It also helps to make the comparison in as "positive" a manner as possible: rather than derogate the comparison brand, it is better to claim superiority over the comparison brand in a nonderogatory manner.

Two-Sided versus One-Sided Comparative Ads Not all two-sided ads beat one-sided ads in credibility: research has shown that two-sided ads are especially credible when the attribute on which the weakness is admitted is (a) relatively unimportant, but not trivial, to consumers; (b) perceived to be negatively correlated with the attribute on which superiority is claimed (e.g., "we are more expensive (weakness), but only because we give you higher quality"); (c) one that would not otherwise be known to consumers prior to purchase, so that the advertiser gains some "brownie points" for honesty.

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Other research has also shown the general superiority of two-sided appeals, especially with more educated audiences, and with those consumers initially opposed to the brand making the claims, and on attitudes rather than purchase intentions. These results suggest that comparative ads are more likely to be persuasive in changing brand attitudes if they are two-sided rather than one-sided.

Open-Ended versus Close-Ended Comparisons Another relevant issue is whether conclusions and arguments should be spelled out explicitly in a comparative advertisement or whether the receiver should be left to draw his or her own conclusions about the superiority of the brand sponsoring the comparison. It is often advantageous to leave something out of a message: the closure principle discussed in Chapter 7 comes in here. Leaving something out can stimulate curiosity and motivation to seek additional information about the brand and lead to a consumer-generated belief that is relatively more powerful than a belief created by an explicit statement in the ad. This would argue for not making explicit claims of the sponsoring brand's superiority. However, there is some risk in assuming that a receiver will "draw his own conclusions." Research suggests that conclusions should be stated explicitly when there is a significant chance that the audience will not be motivated or unable to draw their own conclusions, or when there are real risks of having them draw the wrong conclusions. Alan Sawyer and Daniel Howard found that if the audience is involved in the message, and if the message is one where a conclusion can be easily drawn, an open-ended message (where no explicit conclusion was drawn) led to greater brand attitudes, intentions, and choice than a close-ended message (there was no difference for an uninvolved audience).

Inoculate Advertising Building Resistant Attitudes A great deal of advertising activity is associated with this goal of "defensive" marketing. Given that we have developed favorable patronagehave a good share of market, for examplehow can it be sustained? In attitude theory terms, how can we induce those currently loyal to our brand to remain loyal?

A consumer can be made more resistant to competitive appeals either by attempting to make a brand offering more attractive, or by attempting to train the consumer to withstand the persuasive
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efforts of competitors. From the first viewpoint, for example, one strategy would be to anchor beliefs about the brand to other beliefs that the consumer values highly. The brand might be shown to be significant in maintaining one's self-esteem or in otherwise enhancing the ego in various ways.

The alternative, of attempting to train a consumer to withstand competitive attacks, has been the subject of some empirical work in marketing. The diffusion of advertising messages can be thought of as similar to the diffusion of germs in the spread of a disease through a population. If individuals are given weakened doses of the germs, they can build defenses to withstand the more potent ones, and thus be made resistant to the disease when exposed to it. The medical or biological analogy is, of course, the notion of inoculating an individual with a weakened dosage, and for this reason it has been called the inoculation approach.

In the advertising context, it has been demonstrated that preexposure to weakened forms of counterargument (arguments counter to the position or object being defended) is more effective in building up resistance to strong subsequent attacks than is a simple repetition of supportive arguments. Other research has also shown that a refutational appeal (discussed shortly) provides a greater resistance to attack than a standard supportive appeal.

11.7 REFUNCTIONALING ADVERTISING

Another term closely related to inoculation is refutation. It refers to the process of explicitly or implicitly stating competitive appeals (or consumer beliefs) and then refuting them, instead of dealing exclusively with brand benefits (supportive advertising). Hertz and Avis advertising are examples of both refutational and supportive advertising. For many years, Hertz used a supportive approach, emphasizing the many benefits of renting a Hertz car. Avis, on the other hand, refuted the implicit claim that "No. 1 equals the best" by suggesting that "No. 2 tries harder."

Ray cites three reasons why refutational messages appear to work: 1. They are more stimulating than supportive messages. They underline conflict and get peopleconcerned about an area. This motivating factor alone can be quite effective, since
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refutational defenses can work even if they deal with claims other than those that appear in subsequent attacks. 2. They refute counterclaims and thus make the competitive/ attacks appear less credible when they appear. This refutation is probably quite satisfying. Statements of counterclaims can arouse dissonance or imbalance. The refutation can restore balance. 3. Refutational messages do contain some supportive information, even though less than supportive messages.

As mentioned earlier, a refutationa! approach can be useful not only against a competitive claim but also against a prior consumer belief that is negative. The famous ad for Life cereal that featured the little boy called Mikey is an example of refutational advertising. Here, the challenge was to convince mothers that their kids would actually like Life cereal, despite the fact that it was "healthy" cereal. As another application, if a certain segment of American consumers believe that Japanese cars are superior in quality, an ad by an American auto manufacturer aimed at this segment might be more successful in credibly communicating the actually high quality of American cars by first acknowledging this belief about poor quality and then refuting it with evidence (instead of making no reference to that prior belief about lower quality). A refutational ad in such a situation might gain even more credibility if it were two sided conceding that quality in prior years was, in fact, poor but then going on to argue that it has since improved substantially.

11.8 EMOTIONAL CREATIVE APPROACHES

The creative approaches discussed thus far are "rational" in the sense that they rely for their persuasive power on arguments, or reasons, about brand attributes, For instance, a comparative approach attempts to show, based on reasons, why the sponsoring brand is superior to competition. There is, of course, the whole category of creative approaches that rely on emotions or feelings for their effectiveness, such as the attempted evocation of warmth and affection, or surgency and excitement, or the use of humor, or of fear. When the product category is one where, typically, consumers buy the product because of a "feeling" benefiteither the low-involvement "small pleasures" of candy or soda pop or the highly involving feelings associated with fragrances, sports cars, and jewelry. Emotion-evoking

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creative approaches do not appear to be very successful in "high-involvement, thinking" situations (see Chapter 8 for a fuller discussion).

Using an Endorser Advertisers often use endorsers for their products or servicesand this makes many endorsers very rich. In brief, research and commonsense suggest three types of benefits. First, endorsers enhance advertising readership (or viewership or listenership) scores. Second, endorsers can induce positive attitude change toward a company and its products. In general, the more credible a source, the more persuasive that source is likely to be. Third, the personality characteristics of the endorser can get associated with a brand's imagery. These benefits are not automatic, however and obtaining them requires a careful consideration of a brand's marketing or advertising needs, and an endorser's characteristics. There are two ways of thinking about an endorser's characteristics. The traditional way is to think of an endorser is a "source" of the information in the ad, contributing to the acceptability of the content of (arguments in) the message because of the source's credibility or attractiveness. We shall say more about this way of thinking below. The second, more recent, way is to think of the endorser as possessing some symbolic properties, which are transferred from the endorser to the endorsed brand (through advertising) and then from the brand to the consumer (through the acts of purchasing and consuming or owning the brand).

According to this meaning transfer model popularized by McCracken, brands benefit from associations with endorsers because endorsers acquire or possess particular configurations of cultural meanings that cannot be found elsewhere. Thus, for instance, the symbolic cultural meanings linked to Michael Jackson and Madonnapresumably their anti-establishment, "bad" imageswere what Pepsi wanted and obtained for itself through their endorsements, which then helped Pepsi attract the youths and teenagers who form the crucial part of the soft-drink market. Similarly, Coca-Cola hoped that ads featuring pop star George Michael might improve Coke's image as being "young" and "modern."

The Creative Process: Coming up with an Idea The creative process is concerned with taking the baldly stated marketing proposition, usually derived from and couched in terms of marketing research and manufacturing specifications, and turning it into one or more creative ideas that clearly, powerfully, and persuasively convey to the consumer what the brand does for them and why it should matter to them. Such creative
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processes come into play where research leaves off. It is possible today to use a computer-based expert system called ADCAD to specify what kind of advertising appeal and format will work best in what kind of situationbut one still needs a creative process to take such recommendations and turn them into brilliant advertising. John Keil, in a book on creativity, argues that there are several myths about creativity and creative people, none of which is really supported by the facts. Keil's six myths of creative people are as follows: 1. Creative people are sophisticated and worldly. They are cultured, well read, and snobbish. 2. creative people are more intelligent than others. 3. Creative people are disorganized 4. Creative people are witty and seldom boring. 5. Creative people are more involved with liquor and drugs than others are. 6. Drugs and alcohol stimulate creative thinking.

Like the social stereotypes of any profession, Keil essentially cautions against such stereotyping and argues that creative people have a wide variety of habits, styles, and values. There are boring creative people, as well as witty ones. The incidence of alcoholism and drug abuse in this profession appears no greater than in others such as law or medicine. The creative process culminates in the specific activities of writing copy, illustrating, and layout. Each of these activities is briefly described in the next sections.

11.9 COPYWRITING
Copywriting, illustrating, and layout are different activities associated with the creative stage of advertising development and are usually done by different people who specialize in one or the other. Copyiuriting in print is the activity of actually putting words to paper, particularly those contained in the main body of the text (the main arguments and appeals used), but also including attendant bylines and headlines. In broadcast, the copywriter is, in effect, a script writer who develops the scenario or script to be used in a radio or television medium; writing a jingle, or the lyrics for music, may also be involved. Don't try to edit your ideas at the start. Don't put a brake

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on your imagination." In his book, he develops a checklist of important guidelines for copywriting: 1. Cash In on your personal experience. 2. Organize your experience. 3. Write from the heart. 4. Learn from the experience of others. 5. Talk with the manufacturer. 6. Study the product. 7. Review previous advertising for the product. 8. Study competitors' ads. 9. Study testimonials from customers. 10. Solve the prospect's problem. 11. Put your subconscious mind to work. 12. Ring the changes" on a successful idea.

Following these rules is good advice in creating copy. The idea of "ring the changes" is particularly useful and interesting. Once a successful idea has been found, it should be used repeatedly with variations on the central theme. For example, an insurance company found that ads featuring retirement annuities brought the most coupon replies. So all the ad headlines featured retirement. Once you have found a winning sales idea, don't change it. Your client may tire of it after a year or two. He sees all the ads from layout stage to proof stage to publication stage. Explain to him that when he is tired of the campaign, it is just beginning to take hold of the public. Copywriting obviously becomes more important in the case of long copy and less important in the case where few words are included. Copy should be only as long as necessary to complete the sales jobthis means that long copy is often appropriate only for the highly interested reader (such as people contemplating car purchases).
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A. General Copy Principles

While there are no (and should never be any) "rules" for what makes for good copy, it is worthwhile to become familiar with some generally accepted principles. Regardless of the specific ad medium, copy is usually more effective if it is simple, containing only one or two key ideas; contains a benefit or idea unique to the brand being advertised; is extendible (can lead to several variations in a campaign); and flows naturally and smoothly from beginning to end.

Good ads are specific, using facts and figures and believable details instead of generalities. One overriding rule for developing copy is to keep the format simple, uncluttered, and straightforward. Whether in print or in broadcast, the tendency for including too much information or for complicating the television commercial with too many scene changes, or scenes that are not well integrated, should be avoided. This principle of simplicity extends to the language used as well. Like cluttered format, complicated language is unlikely to induce people to spend the time to "figure it out." The message should always be true to the product. Claims should be sub stantiable, and the style should not be radically altered over the life cycle of the product.

B. Print Copy Principles

For print ads, one of the key elements is the headline, which must flag down the target reader and pull him or her into the body copy, offering a reward for reading on. This is best achieved by headlines that appeal to the reader's self-interest (e.g., by offering free, useful information), are newsy, offer new twists on familiar sayings, and/or evoke curiosity (e.g., by asking a quizlike question).

Since most people reading print ads never go beyond the headline, it is also extremely important that the headline and visual complement each other so wel! and "tell the story" so easily, that a reader who only looks at the headline and main visual can "get the message" without having to read a word of the body copy.

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As for the body copy itself, it should be detailed and specific , support the headline, and be readable and interesting. Research by Michael Houston, Terry Childers and Susan Heckler has shown that attribute information is recalled better when it is presented both as a picture and in words (for example, a teddy bear to depict softness in a fabric softener ad) than when it was presented only as words with a different attribute conveyed in the picture. However, this extra recall effect of pictures that exemplify verbal product attribute information appears to occur only when the verbal information is itself of low imagery (does not involve visualization of a concept or relationship). Such imagery or visualization occurs more easily if the ad uses concrete rather than abstract words, if the ad is believable, and if the ad does seem to create more liking for the ad and the brand. The message of the ad is also more memorable if its various parts are consistent rather than inconsistent, for example an ad for ICY vodka from Iceland, showing a bottle apparently made out of ice and using copy reading "Smooth as Ice ... Icy cold. Icy clear . . Other research has discovered that more imagery is evoked if the picture makes it easy for the consumer to plausibly imagine himself or herself in engaging in that behavior. The effects of an ad's pictures on brand attitudes (liking) seem to increase if they contain product-relevant information, especially for highly involved consumers.

C. Television Copy Principles

Television scripts (which are discussed further shortly) must usually be written to take advantage of the visual nature of the medium, by using demonstrations, pack close-ups, and the like. The message contained in the pictures is especially important now that many consumers pay only limited attention to advertisements. Since TV ads are fleeting and cannot usually easily communicate much information, simplicity (and frequent and early mention of the brand name and key idea) are strongly recommended. TV ads get higher recall scores if they contain more frequent visual representations of the brand name, package, and key product attributes. TV ads also get higher persuasion scores if the shots in the ad are more "connected" and betterlinked to each other. While there seems to exist a belief that TV ads should use more shots because viewer attention spans are getting shorterthe average number of shots per ad is up from eight in 1978 to thirteen in 1991research has actually found that as the number of shots per ad goes up, the ad's recall and persuasion scores go down, even among young viewers. Amazingly, it has been found that if the camera angle is such that the product or person appears bigger, stronger or bolder, the ad is evaluated more favorably, though this happens mostly for consumers processing the TV ad in a low-involvement fashion. It bears repeating, however, that the key factor making for a persuasive TV ad is as simple as the presence of a strong branddifferentiating benefit. While the creative execution is certainly important, if you want a persuasive ad, make sure you've got the right (strong and convincing) message!
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D. Radio Copy Principles

For radio ads, a key principle usually is to write copy that "creates a picture in the mind's eye" of the listener. The radio ad must pull the listener in from whatever is being done when the ad comes on, into an imagined situation, through use of the human voice, sound effects, humor, and music. Research shows that sound effects increase imagery activity and, through that, the evocation of feelings that are not verbally described in the ad. Though it can occasionally be distracting, product-related imagery usually increases the ad's likability and the recall and recognition of ad claims. It is usually also important in radio to mention the brand name and the key selling benefit early and often. Srjort words and short sentences are usually easier to understand on the radio. Obviously, radio ads can use various creative tools, and a typology of different kinds of radio ads has been developed.

E. Outdoor Copy Principles

For outdoor ads, where the message must be communicated in a few seconds, the copy and visual (such as a large pack shot) must be extremely short, simple, strong, and obviousthere is no time for subtlety. Outdoor ads are recalled more if they have fewer words, are about more involving products, are creatively more distinct, and are on the right-hand side of highways than on the left-hand side (from the drivers1 perspective).

F. Retail Copy Principles

Retail ads usually must contain specifics about the merchandise being offered (such as exact sizes, colors, and prices) in order to stimulate immediate buying action. Yet they must also be created in a manner consistent with (and must strive to reinforce) the image of the store.

G. Business-to-Business Ads
Since business-to-business ads are usually written to an audience seeking problem-solving or profit-improving information, they should usually be informative and offer specifics, serious (but not boring), and (ideally) offer case histories of how the advertised brand helped someone else in a similar situation. The software company Lotus, for example, in advertising its Notes product to corporate users, ian ads in September 1993 citing successful adoption by twelve different companies, each named explicitly, with a paragraph describing each specific case.

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Long copy ads are good, but they should focus on a. single benefit, and it helps if they have a single dramatic image. While the ads need to be factual and informative, they should nonetheless contain some drama or human interest, according to a study by Roper Starch Worldwide. A coupon or phone number can be used to provide more-detailed information and generate a lead for a subsequent sales call, either in person or via the telephone.

11.10 ADVERTISING ON THE INTERNET

Advertisers are just beginning to advertise on the Internet, the worldwide web of computer networks that promises to become another avenue of electronic commerce. Advertisers set up "home pages" that can be accessed by "web browser" software, and occupy "storefronts" in "online malls." It is far too early to tell how advertising will evolve on the Internet, but according to Ogilvy and Mather Direct, one of several agencies venturing in this medium, Internet advertising should not be intrusive, should take place only in designated newsgroups and list servers, should offer full disclosure of what is being sold and under what terms, should only perform consumer research with the consumer's consent, and should not resell consumer data without express user permission. Illustrating The activity of illustrating is of crucial importance for many consumer nondurable products where pictures or photographs are used to convey a central idea, and there is little or no need for Jong explanations or a recitation of copy points. Normally, an artist will be involved in selecting materials or will actually draw original pictures for the advertising.

Artwork is equally if not more important than writing copy particularly where the goals of the advertising are attention getting or building awareness. As in writing copy, pictorial materials should be developed that are tied into the self-interest and understanding of the audience, "tell a story" at a glance, are relevant to the product and copy theme, and accurate and plausible in the context of the selling message. Another popular rule is to include pictures of at least some or all of the product. Illustrating also involves decisions as to what "identification marks" to include. These fall into one of three categories; company or trade name, brand name, and trademarks. The decision regarding brand name will probably have been made prior to actual copywriting, but it may not. A great deal of time and research effort may be required to arrive at the right brand name. Trademarks, service marks, and certification marks like the Good Housekeeping seal of approval must also be considered for inclusion in the visual materials. Often a caricature
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or identifying symbol such as the Pillsbury doughboy, the Green Giant, or Mr. Peanut will be included, and decisions as to how they will be positioned will be required. The visual content, color, artwork, and identification mark decisions are a crucial aspect of print advertising, and choices will heavily determine the effectiveness of the final result. Many of the same kinds of decisions must be made with respect to the video portion of a television commercial. Here, however, the emphasis is on action and the dynamics of each scene. The director must take into account how one scene will blend into the next, how video materials will serve to enhance and reinforce the audio message, which will be mainly attention-getters, which will carry the copy points, and so on. Layout The layout activity involves bringing all the pieces together before the advertising is sent out for production. A layout can be in relatively unfinished form, a preliminary layout, or can be a very detailed specification of all aspects of the production requirements, a comprehensive layout. The decision as to how detailed the layout is to be will rest on the agency's trust in the supplier firms. Many agencies choose to send on only preliminary layouts to allow room for a significant amount of creativity in the production process. Layout involves decisions as to how the various components of headline, illustration, copy, and identification marks are to be arranged and positioned on the page. The size of the advertisement will obviously have an effect on this decision. There are five considerations to take into account in developing print layout: 1. Balance: the arrangement of elements to achieve a pleasing distribution or visual impression. 2. Contrast using different sizes, shapes, densities, and colors to enhance attention value and readability. 3. Proportion: the relation of objects to the background in which they appear and to each other. 4. Gaze-motion: the headline, illustration, copy, and identification marks in that order will usually provide the most logical sequence for gaze-motion (in some cases, however, it may be useful to alter this typical pattern). 5. unity: the qualities of balance, contrast, proportion, and gaze-motion should be combined to develop unity of thought, appearance, and design in the layout. Coupons, for example, should not be placed at the beginning of an advertisement unless the copy theme is built around the idea of clipping the coupon. Unity is best achieved by keeping the layout simple and uncluttered and to ease the reader's task in comprehending the advertisement. Simplicity can be carried forward in many instances by judicious use of "white space" in which most of a large part of the advertisement shows nothing.
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Various classifications have been developed for print ad layout styles. These include: 1. Picture window (also called Ayer #1): a large picture or illustration with tightly edited copy fitting into the small space alloted to it. 2. Mondrian/grld: named after the Dutch painter, these break out space into a series of severely demarcated rectangles or even-sized boxes. 3. Type-specimen: these exhibit large type size with no illustration at all. 4. copy-heavy: no illustration, or only a small visual, rely mostly on words. 5. Frame: artwork or illustrative material framing the copy (or vice versa). 6. Silhouette: the elements form an overall silhouette, or shape, against the background; for example, white space pushed toward the edges of the ad. 7. Multipanel: these look like comic-strips. 8. Circus: like multipanel, with even more components (e.g., grocery store ads). 9. Rebus: photographs, illustrations or diagrams are inserted into the copy, which is usually quite long.

The layout of a television commercial is the storyboard; various examples of storyboards have appeared in earlier chapters. Here, again, it can be generated in a relatively primitive form, in which only artist sketches and suggestive copy are included, or in a more comprehensive form that details more precisely what actors are to say, how scenes will blend in, and the precise location of identification marks, background music, special effects, and so on. The copy/art team creating a TV commercial will indicate the nature of the camera shots and camera movements, the level and type of music, and so on. Of course, much will change as the commercial is actually shot and then edited, by the director selected for the commercial (see Chapter 15)

11.11TYPES OF TELEVISION CHANNELS

Audio and visual elements can be combined to produce several types of television commercials, just as a story can be told in many different ways. Emphasis can be placed on the story itself, on
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the problem to be solved, on the central character such as in a testimonial, or on special human emotions or storytelling techniques such as satire, humor, fantasy, and so on. Each is referred to as a particular kind of commercial structure to emphasize that a commercial is other than an unrelated jumble of ideas and techniques. The thirteen types of structure identified by them follow: 1. Story line: a commercial that tells a story; a clear, step-by-step unfolding of a message that has a definite beginning, middle, and end. 2. problem-solution: presents the viewer with a problem to be solved and the sponsor's product as the solution to that problem. Probably the most widely used and generally accepted example of a TV commercial. 3. Chronology: delivers the message through a series of related scenes, each one growing out of the one before. Facts and events are presented sequentially as they occurred, 4. Special effects: no strong structural pattern; strives for and often achieves memorability through the use of some striking device, for example, an unusual musical sound or pictorial technique. 5. Testimonial: also called word-of-mouth advertising; it uses well-known figures or an unknown "man in the street" to provide product testimonials. 6. satire.- a commercial that uses sophisticated wit to point out human foibles, generally produced in an exaggerated style; parodies on James Bond movies, Bonnie and Clyde, Hair, and the like. 7. spokesperson: the use of an on-camera announcer who, basically, "talks." Talk may be fast and hard sell or more personal, intimate sell. 8. Demonstration: uses some physical apparatus to demonstrate a product's effectiveness. Analgesic, watch, and tire commercials employ this approach heavily. 9. Suspense: somewhat similar to story-line or problem-solution structures, but the buildup of curiosity and suspense to the final resolution is given a heightened sense of drama. 10. Siice-of-life: a variation on problem solution; begins with a person at the point of, and just before the discovery of, an answer to a problem. This approach is heavily used by detergent manufacturers. 11. Analogy: offers an extraneous example, then attempts to relate it to the product message, instead of delivering a message simply and directly, an analogy uses one example to explain

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another by comparison or implication: "Just as vitamins tone up your body, our product tones up your car's engine." 12. Fantasy: uses caricatures or special effects to create fantasy surrounding product and product use: Jolly Green Giant, White Knight, White Tornado, the washing machine that becomes 10 feet tall. 13. Personality: a technical variation of the spokesperson or announcer-on-camera, straight-sell structure. Relies on an actor or actress rather than an announcer to deliver the message. Uses a setting rather than the background of a studio. The actor plays a character who talks about the product, reacts to its use, or demonstrates its use or enjoyment directly to the camera.

These structures are, of course, not mutually exclusive, but rather serve to provide points of focus for analysis, copy production, and research. For example, in testimonials and, perhaps, in spokesperson and demonstration commercials, the credibility of source and/or the mode of presentation are likely to be most important. Customer reactions to source could receive special attention, utilizing the ideas on source credibility given earlier in Chapter 12. In story-line, problem solution, and perhaps the chronology and analogy structures, focus would tend to center more on the type of argument (for example, one- versus two-sided or refutation) or the order of argument (primacy-recency, stating a conclusion) dimensions. Each of these seven types of commercials also tends to be more factual in orientation.

The remaining six types all are more emotional in orientation and can be distinguished on the basis of whether the emotion-arousing capacity or the characterization being used relates to source or message. The personality and slice-oMife structures, for example, are likely to be more source oriented. The choice of the personality to be used or the characters who will play the role in the slice-of-life situation are emphasized. The special effects, fantasy, satire, and suspense structures are all fundamentally emotional in orientation. Special effects, for example, might be used to arouse emotions with respect to fear, sex, or status. The principal objective would be emotional arousal, and interest would centei on whether the particular emotion was evoked in the target consumer.

11.12 CREATIVE STYLES

As has already been suggested, creating advertising is a little like creating art. Two artists viewing the same scene may paint it quite differently but both can produce high-quality.paintings and "effective" products. In this portion of the chapter, several of the creative giants of
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advertising and examples of their work are presented. An important factor that tends to distinguish them is the nature of the product or market situation. As will be seen, however, there are points of emphasis and style that tend to characterize the approach and make it recognizable. Is Execution More Important than Content? There are, of course, many other advertising agencies and many other creative approaches and styles that could be presented and discussed. Those reviewed in this chapter are, however, fairly representative of the range of creative output, at least in the leading agencies. Of course, there are dozens of other creative people associated with highly successful agencies and creative output that could have been reviewed as well. One way to think of the range of creative styles is to think of a continuum from the "what you say is crucial" camp (such as Reeves' USP style) to the "how you say it is crucial" view (represented by the more freewheeling creative styles of Clow and Riney). To the extent this book is going to advocate a position on who is right, we would suggest that both are necessary a message must be both on strategy in terms of "what" it is communicating and highly creative in "how" it communicates that message. Even though this chapter has focused on the importance of the creative process, we must point out that according to research by David Stewart and David Furse the single most important factor in an ad's impact on persuasion, recall, and message comprehension is the presence of a strong brand differentiating messagewhich is a content, not an executional variable. But even the most appropriate content will get lost in today's crowded airwaves and pages if it is not said boldly, with the taking-on of creative risk. Thus, the best advertising combines both meaningful content and brilliant creative execution. While the strategy part of the mixture is amenable to rigorous analysis the creative part is as much art and genius as it is science, which is what makes the advertising business rely so much on the talents of people like the ones just profiled.

CHAPTER 12
*ADVERTISING COSTS & EXPENDITURE*
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12.1 Advertising Cost 12.2 Types of Advertising: Cost and Expenditure A. Internet advertising C. Newspaper Advertising E. Outdoor Advertising G. Radio Advertising I. T.V. Advertising K. Cinema Advertising M. Moblile Phone Advertising B.Magazine Advertising D.Online Advertising F. PPC Advertising H. Television Advertising J. Web Advertising L. Vehicle Advertising N. Electronic Advertising

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12.3 Advertising Expenditure

146

12.1 ADVERTISING COSTS

Costs for advertising vary considerably for different types of media advertising.

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Of course, price is very important, but you also need to weigh up what you are getting for that price and then associate a rating of value into the mix. For example, you can pay 5p or 2.5 cents per click for ppc advertising, but what is it actually giving you, in terms of value for money. There is no doubt that on a cost per click basis, the pay per click format is hard to beat, but can you come back with a positive outcome when you look at the return on investment? Other media like magazine advertising can offer a mixture of awareness, branding and corporate identity, as well as providing an effective media for 'new launch' campaigns and meeting other specific objectives. Usually, prices start at around 1000 per colour page and go above 10,000 per page in certain publications. Some magazines do have a very specific readership and rates can be lower for those that are part of a membership or club. For Outdoor Advertising formats, prices can vary from around 2000 for mobile billboards on vehicles to 7-8000 per month for large billboard advertising on the high street or roadside. With Radio Advertising, the costs vary enormously and depend very much on the time slot and length of advert. A typical slot of 25 seconds can be around 250 - 1000 per week, depending on the frequency and amount of listeners. With newspaper advertising they will usually charge by the SCM or single column centimetre if it is for classified ads or up to 10,000 for full page magazine advertisements if it is in the display section.

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The top end of the advertising sales scale is TV advertising. They can demand tens of thousands of pounds before running a campaign, but a lot does depend on the frequency and viewing audience. With this and Radio, there are going to be additional costs for creating the advert, so do build this into your media planning budget. Remember, with any media, prices are negotiable if you are planning to book an advertising schedule. Always be willing to negotiate and you could get a good deal.

12.2 TYPES OF ADVERTISING: COSTS AND EXPENDITURE

A. INTERNET ADVERTISING
Advice and tips about online media.

As one of the fastest growing media formats, Internet advertising or web advertising is one of the first choice advertising media for anyone wanting to promote their products and services to a global audience. Internet Advertising takes on many forms these days and is not just about banner advertising and links from directories. Instead, it opens up a whole new world of possibilities and is now starting to appear on the Internet Media Buying strategies of companies who have not yet delved into the world of online media. Internet advertising forms a media format under the category of new media advertising and is sometimes known generally as Online advertising. However online advertising means 'anything online' and therefore includes newsletter adverts or similar advertising systems. Your internet marketing strategies will, of course include Internet advertising, but make sure you take a close look at media planning before you commit to buy. Always find the websites and
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other online opportunities that match your potential audience and then take a look at who else is advertising. Opportunities on the internet are endless and include banner advertising, advertising networks and ppc advertising (pay per click advertising) to name a few. We have a good selection of internet advertising media sellers on this site, so take a look at the media advertising options in our media database or do a general keyword search in the search box to find more resources.

B. MAGAZINE ADVERTISING

Publishers involved in magazine advertising media are trying to do more for the advertiser. In fact a large proportion of them are developing their websites so they can offer Online advertising packages to compliment their existing print media advertising formats. You see magazine ads have always been more about image than response. Don't get me wrong, magazines have a part to play in the whole advertising and marketing mix, but the advertising costs associated with this form of media advertising has limited its appeal to the masses of small business and consumer targeted advertisers. They now say that simple magazine advertisements work better for response, as potential buyers are in a different frame of mind when it comes to the larger corporate style adverts. The branding message ads of today follow a consistent theme in trying to match the qualities of a product into how this fits into the quality of our lives. Of course this is very different for response generating
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ads - these should have a clear message and a real call to action. However, as a buyer of magazine advertising, there is one thing you have to get right first - to match your product or service with the target audience of the magazine. Make sure you look at all of the possible variables when it comes to magazines. Of course magazine advertising rates are important to your overall campaign, but you must also consider the audience, demographics and the identity of the magazine, as well as its standing in the marketplace. When I was working on advertising sales services for traditional media publishers, advertisers always use to ask me for right hand page positions for their adverts. If there were too many advertisers requesting this, we'd have to turn the last bookings down when it came to doing the flat-plan and pagination of the magazine. In truth, it really doesn't make any difference where an advert is, as long as the structure of the page lends itself to a natural way of reading text and looking at ads. However, one thing that Internet Advertising has taught us is that people seem to be more willing to click on ads if they are within the main text and actually match the general colour scheme of the website. Is this also true for magazines? Personally, I think not. People take time to read magazines and enjoy doing so. They are in a totally different mindset and will respond to something if it is attractive to do so at that time. Therefore, forget the subconscious, subliminal and surreal arguments to successful and clever ad designs. Come up with something that is clear, matches the needs of the readership and reflects the quality of the product or service you are offering. All you have to do then is find the right magazines!

C. NEWS PAPER ADVERTISING

How this media can work for you

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With newspaper advertising, you have the choice to reach a large or small geographic collection of people. With National Newspaper Advertising, the coverage can be huge, but so can the rates. What you have to do here is weigh up if the advertising costs can be justified. A classified advert in a national can cost around 30 per scc (single column centimetre) but is more likely to be around 50. A DPS (double page spread) in a national like the Guardian will be around 34,000. So, make sure that you set yourself a realistic budget when you look at the national's. However, with regional newspaper advertising, you have the advantage of selecting a local audience and this can be the best option if you are advertising a business on the doorstep of the audience in question. The rates are also a lot lower than national newspapers, and an advertisement will cost from just a few pounds to a couple of thousand. The advantages of print media enables you to send in the copy and have it displayed on the section you want within a few days. If it is a classified ad, this can be just 48 hours. The beauty of print media advertising is that you can be as creative as you wish, as long as you follow the guidelines set out by the newspaper. This will usually exclude nudity and strong sexual references in the copy and publishers will usually adhere to advertising standards legislation. Whichever newspaper you use, always remember it is a format that has a very short shelf life indeed. Sometimes it is a very good move to combine newspaper or magazine advertising with other formats like Online advertising or even Radio Advertising. If you have a large budget, newspaper advertising can work extremely well with TV advertising campaigns.

D. ONLINE ADVERTISING
The options available to you
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The term online advertising encompasses so many formats these days. A number of years ago the options were limited to internet banner advertising and other basic web advertising formats. Now, the whole Internet Advertising system has developed considerably and can offer companies so much more choice. For example, even the traditional format of banner advertising has moved on in terms of design, placement options and structure. We can see sophisticated animations, large skyscrapers, standard image ads and banner formats that can expand - the choices for banners alone are endless! There is no doubt that the new media advertising arena has brought with it some exciting new players, with great looking design formats - but how do we feel about them? It seems now that the response rates from 'over complicated' online media advertising is dwindling and the fact is that we want to go back to simple, less 'in ya face' designs The whole issue of internet marketing online is to establish the best promotional opportunities at the best value for money - something you certainly need to look at when you put together your media planning campaign. Of course, online advertising also includes services like advertising in newsletters and announcements from relevant online publishers. These can certainly bring in fast response for your products and can be excellent value for money. Just do a search for your business area followed by the word 'newsletter' to find relevant results. A big player in internet advertising is ppc advertising, or pay per click advertising. Some of the largest providers like google offer a very targeted format where you only pay when someone clicks on your advert. You can set up an account and then decide on a cost per click value that meets your requirements and overall budget. If you enter a high enough value, your ad will display on relevant sites and search results to match keywords you entered in the campaign settings. A ppc management service will gladly take over the set up, testing and maintenance for you if you don't want to do it yourself. Finally, if the whole media planning thing is just too much for you there are countless media buying agencies in your area that will be willing to offer their services. We have a number of UK
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and Ireland based agencies in our agency database and these offer a variety of Media Buying Services to help you.

E. OUTDOOR ADVERTISING

One of fastest growing types of media advertising has seen tremendous change over the last few years.The whole concept of outdoor advertising encompasses some very interesting formats and is now one of the most popular forms available for consumer and B2B targeted campaigns. This is great news for a variety of outdoor advertising companies who are developing a number of attractive designs and concepts for advertisers to consider. One of the most popular is in the form of transport advertising. You can now advertise on mobile billboards on trucks, vans, scooters and also purpose built vehicles. The beauty of this format is the speed in which designs and campaigns can be produced and advertisers can be very selective in the geographical area. Some vehicles even come with GPS, so you can monitor a campaign's effectiveness. Some of these formats are also known as ambient advertising which can include advertising on golf courses, furniture and seating and even beer mat advertising - the list is certainly growing and is very diverse. As ordinary people and local businesses see the potential in their cars, vehicles, buildings and business premises, this format will undoubtedly move on from the standard, yet very successful billboard advertising we see on roadsides, bus shelters and taxi media - watch this rather large space with great interest.

F. PPC ADVERTISING
A term used as an abbreviation to Pay Per Click advertising and also called CPC advertising or Cost Per Click Advertising.
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This format is growing at a crazy rate at the moment and one company has the overall share of PPC advertising around the world - Google. The basics of pay per click are: You write ads, based on relevant keywords for your business - these are displayed on search results pages and websites within that network. If someone types in a keyword/phrase relevant to your business and that matches your advert criteria, your ad will then show on the page. If someone clicks on your ad, you will be charged a fee based on the cost per click value you set for that advert. Therefore, it is important to make the advert clear, so to avoid wasted clicks from people who misunderstood your message. Before setting up a ppc campaign, you should consider what your competition is doing and how much you want to pay for your campaign. The more you pay per click the higher your advert will appear on search results and websites. However, don't be drawn into a 'Top spot' war just for the reasons of getting one up on the competition. The trick with PPC advertising is to get as many good quality clicks as you can, in the position you are happy with and at a price you can afford. If you don't want to set up your account and do the campaign yourself, you could take on the services of a pay per click search marketing company or one that offers a ppc management service. These companies will usually set up your account, look at the competition, write your ads, set a budget and do the whole thing as per your instructions. Companies offering these Media Buying Services can save you a great deal of time and effort, but make sure you provide them with the necessary tools to research your competition.

G. RADIO ADVERTISING
How to get started

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The first thing to remember about Radio Station Advertising is that it can very hit and miss if you don't get it absolutely right. One fundamental area to remember is that advertising on a radio station is all about hitting the same audience on a repetitive basis. If you plan an erratic schedule, you will basically get an erratic response. However, if you get your message across often in the same time slot, you will probably hit the same people with the same message - this is the key to good response levels. If you can sponsor a particular section of a show then even better, but if you do this try to add a message that is catchy or has a meaning of association with the sponsored slot. So, to find the best stations, just take a close look at whether you product or service can be tested on a local or national level first. Then, you can search for relevant radio advertising opportunities and listen to how their ads are formatted. So, how do the ads make you feel and is the time slot you are interested in creating a good tone and environment for your product? When you have done the searching make sure you negotiate on price until you are blue in the face. If you hold out for a quiet period you may find that a usual slot at 50 per second could sell for 25 or much less. You can then ask them to hold the price for two or three months for the first campaign as a test and go from there. Remember, you may want to use a professional advertising agency that has experience with radio advertising. They could prove invaluable, as they may be able to get good prices, based on other current negotiations for different customers. They can also help out with the production of adverts too, although a lot of radio stations are helping their advertisers out in this department as it helps them to cement long-term business.

H. TELEVISION ADVERTISING

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Different ways to get your message across to the masses

Are you thinking of producing and running your own TV advertising commercials? Well, before you buy the video camera and ask people in the park to act naturally, you may want to look at the options of choosing the right channels and production companies to do the hard work for you. One of the great things about technology and the 21st century is that it is possible to do almost anything in the advertising industry. There are companies and advertising agencies that can negotiate advertising costs and schedules for you and there are a whole host of companies who can produce high quality adverts for any advertising media imaginable - well it's is the same for television station advertising too. When we look at advertising on TV, we see a pattern emerging - a pattern that works for car manufacturers, loan companies and people trying to sell aftershave. All of these companies have studied the trends in advertising, as well as keep their eye on what the customer wants and when they react positively to certain situations. What you have to do (before anything else) is put yourself in the mind of the customer and decide where and when you would be more open to buy your product. As soon as you have found the right station, you must then look into taking on the services of a professional production company. There are many out there, but you want to make sure that you give your time and money to a company that has a massive amount of experience in this media. The typical TV advertising rates will be around 1,000 for each 30-second slot. You will then have a cost of around 10,000 for the actual production and design of the advert, so the concept of TV advertising is well within your reach.

I. TV ADVERTISING
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The basic ways to get started and the associated costs.

As one of the elite forms of advertising media, Television Advertising is seen as the media for companies with huge budgets. However, if you run a television station advertising campaign, it can cost you as little as ten fullpage magazine advertisements and that can include the production and design of the adverts too. Of course, the first thing to do is find a station and channel that fits your particular target audience perfectly. If we look at the mass of loan and insurance companies on TV, we notice that most of the adverts appear on daytime lifestyle television channels - and there is a good reason for this. The market for these companies to reach their desired audience is huge and if we go by how often the ads are repeated, it is fair to say they work. If you advertise on ITV television in the UK, then the TV advertising rates will be over 1000 per 30-second slot. You can then add another 1000 or so, if you want your ad to appear on the whole network, which includes ITV across different parts of the UK. Added to this, you have another 10,000 or so on the production of the advert itself and this usually includes dubbing and sound production. Remember, before taking the plunge, look at the overall advertising costs and potential return on investment for your company. The media planning part of TV advertising is hugely important, although there are advertising agencies and media buying companies who can help you with this. Take a look at our television advertising listings in our media database.

J. WEB ADVERTISING
Ways to promote your business on the internet

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The internet is changing and will continue to do so. More and more Online advertising vendors and networks are popping up all the time and the market is getting extremely competitive. So, how do you make sense of it all? There are a number of basic rules that you should follow to make the most of your web media advertising plan. Research the key target sites and opportunities relevant to your website and product range Allocate a test budget for a trial period Select from a number of different advertising media formats Run a one month campaign and monitor the results accurately When you have finished, you should be able to select from the best generators and increase your advertising budget for these according to trial return on investment. So, where do you start and which formats do you choose? Well, nobody seems to clicking on internet banner advertising for fun these days! - the novelty value of the late 1990's has gone and more sophisticated systems are now in place. However, don't ignore this form of Internet Advertising as some providers could give you 1% click through rate (and this is quite good by the way) or higher. If your ads are displaying on a relevant media at say 3-5000 views per month, then this will still give you a decent result. Do check out cost per thousand or set rates though and make sure you track everything! Compared to magazine advertising rates, Online advertising does seem to offer good value for money. Of course, your media plan may also include magazine advertising and this may be a good vehicle for building brand and awareness. However, online now seems to have the edge, in terms of being able to track results and this is why more and more people are switching a high proportion of their ad budgets to the internet.

K. CINEMA ADVERTISING
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How to get noticed on the big screen.

Do you remember the Pearl & Dean tune? - probably for the sheer cheese factor and the associated adverts of the late seventies and early eighties. However, it got noticed and became one of the most recognised jingles on our cinema screens. Of course, Pearl & Dean was (and still is) an influential company in providing commercial productions and they continue to build on their level of expertise in the area of cinema advertising So, how can cinema advertising get us thinking again and has other media put us off the flashing lights of screen advertising for good? There is no doubt that Internet advertising has played a significant part in the way we react to advertising these days. We are no longer consumed or drawn in to the obvious and aggressively animated online consumer targeted ads - in fact they seem to annoy us! Therefore, how can cinema advertising succeed in giving off the right message at the right time and is it a format equally at home with business and consumer type advertising. Some of the big names in advertising have always opted for TV advertising and cinema as a combined force. Take Stella Artois and their familiar "I would give or do anything" brand strategy where they placed short TV ads and lengthier cinema adverts. This worked incredibly well for them and many have followed this technique in the consumer advertising war. From a business point of view, cinema advertising is much more than the old 'get a haircut just 100 yards from this cinema' approach that we used to see many years ago. There is still a very successful element for local advertising in cinema, but many national companies are now seeing the benefits of advertising on screen too. The cinema companies will tend to place the cheaper static ads further away from the main feature and then show the main (and higher cost) ads when more bums are on seats. Of course,

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the costs vary and will depend on the running time of the advert and its time slot in relation to the main feature. A number of advertisers can experiment with video presentations before going into the higher cost area of TV. Therefore, cinema can be an excellent 'toe in the water' for how an advert and its associated product/service has been received by a small audience. One thing is for sure, people are still going to the cinema and advertisers have a great captive audience - most of which are in a relaxed frame of mind. Take advantage of cinema and get your creative head on!

L. VEHICLE ADVERTISING
The latest moves in transport advertising formats

We see them on the sides of vans and buses and as we pass a truck on the motorway - vehicle ads seem to be moving in the right direction for advertisers. As the outdoor advertising industry develops into a hugely competitive environment, we must now accept the fact that ads are for sale on anything that moves! The increase in transport and vehicle advertising formats has been significant over the last few years and it is now one of the biggest advertising growth areas of the last decade. One of the distinct advantages to this type of advertising is its potential to reach a large demographically targeted audience. You can now advertise on a truck on its journey from London to Leeds and from Edinburgh to North Wales. There are scrolling panels, billboards, LCD screens with audio and many other options. A number of vehicles will also now come with satellite navigation tracking so you can see how many miles it has covered and even stats on the average number of viewers, which has been

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determined by taking a mean value of recent traffic levels from the highways agency and transport authorities. The costs involved can be relatively low and some of the transport advertising service companies can offer local or national campaigns to suit your budget. Of course the sizes and their associated costs for design and production can vary so always make sure that you take this into account.

M. MOBILE PHONE & CELL PHONE ADVERTISING

Mobile & cell phone advertising is growing in popularity. Media and advertising service providers are salivating at the prospect of capturing the mobile phone market and there is no sign of it letting up anytime soon. There is a current label regarding this advertising format, which for many is bordering on being invasive. As a result, there are now very strict guidelines and conditions around privacy issues when it comes to reaching this vast audience. One thing is for sure though, it is a huge market, which can almost guarantee targeted exposure to millions of phone users around the world. One of the biggest services of the moment is SMS announcements and this is creating quite a stir in the advertising world. As I am writing this article on a plane from London to New Orleans, there are many consumers back at Gatwick airport who had the opportunity to sign up to an SMS announcement service from a host of suppliers. Companies who want to reach consumers can send an SMS message to an individual about almost anything, as long as there is a permission based structure and opt-in procedure in place.
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First of all, advertisers must get the message and the timing right for maximum benefit. For example, people who subscribe before they take a flight need to be told about offers and services from retailers when they are in the departure lounge and in close proximity to the offer. So, if Boots the chemist had an offer on, they could send an SMS to the bargain hunters before they boarded the plane. This is very useful for companies that want to reach a captive audience and costs range from around 50 pence or 90 cents per text. Of course, the trick is to catch people when they are about to use their phone and well before they get on the plane. Therefore, there are certain strategies in place to send a text ready for the person to read it just before they use the phone themselves. For example, suppliers could contact the phone user before they send a text to their partner to say they got to the airport safely. In this case, three hours before departure would be a good time.

N. ELECTRONIC GAMES ADVERTISING

Whether you look at console games or PC based systems, electronic game advertising is a very a exciting medium for some of the larger players.

When creative people got together with game manufacturers, they saw the huge potential to add an extra revenue stream to an already highly lucrative industry. To allow gamers to interact with a brand or message is very powerful and companies know it. When your brain is engaged and open, it becomes responsive to different messages in many different ways. A well positioned advert in an area where people are familiar of its surroundings can emphasise the product or service message offered - it almost sub-consciously puts us into a place we feel comfortable. It is estimated that this form of advertising will see an annual growth rate of around 40% from now (March 2008) to 2013. This is even higher than the internet and TV, so it presents a huge market for advertisers.Depending on the popularity and overall sales of electronic games, companies can project viewing figures of their adverts and these can run into millions. Of course the big brands like McDonalds relish this kind of opportunity as its brand is something that is instantly recognised by game players. The age group of players is also highly suited to this food brand and in this case it represents a great value option.
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There are other opportunities for lesser known companies and there is even talk of introducing audio dialogue mentioning brands and products as part of the game. All manufacturers have to do is write the game and then strip in the audio later on.

12.3 ADVERTISING EXPENDITURE

The Table below shows advertising spending in the top ten global ad markets.

1997 Advertising Country U.S. Japan U.K. Germany France Brazil Italy Australia Canada S. Korea Total: Expenditures (millions) 117.0 35.7 20.8 20.3 9.7 8.8 7.2 5.5 5.4 5.3 235.7 Percent 50 15 9 9 4 4 3 2 2 2 100

CHAPTER 13
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*ADVERTISING: COMPANIES & AGENCIES INDIA & WORLDWIDE *

13.1 Top Advertising Companies of India 13.2 Advertising Agencies World Wide 13.3 Worldwide Revenue 13.4 Fact files 148 150 152 153

Advertising is a big business in this era in India. Indian Advertising industry has witnessed a prominent globalization. With the inception of various divisions,the advertising industry has undergone a sea change. Indian consumer's deepening pocket and blooming markets for adspends have touched new heights in India. The Indian Advertising Companies are creating stories and brand experiences in a way that engages and involves. The Best Indian sites offers the names of the top Advertising Organizations In India.

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Here is a list of the top Indian websites and a quick glance at them will help you to get the required knowledge about the websites

13.1 TOP ADVERTISING COMPANIES OF INDIA:

1. Ogilvy and Mather: This is one of the leading advertising company in India. This organization believes that devotion to the brand defines the profile of their company. This company has offices across the globe. The objective of the company is to build brands. It is a subsidiary of WPP Group plc. The headquarterofthecompanyisinNewYork. 2. J Walter Thompson India: One of the most popular company in the advertising industry is J Walter Thompson India. Their objective is to make advertising a part of the life of the consumers. This is also world's best advertising brand with about 200 offices in 90 countries. This company is the first one to introduce pioneer careers in ad for women,sex-appeal ads and also produced the first ever sponsored -TV program. 3. Mudra Communication Pvt. Ltd: This is one of the renowned advertising company of India. This advertising organization was founded in the year 1980 at Mumbai. Recently the Ad company declared the addition of public relations,rural marketing,events etc. The head office of the company is in Bombay Area. 4. FCB-Ulka Advertising Ltd: One of the best company in India in the advertising arena is FCB-Ulka Advertising Ltd. In US ,this advertising company ranks third and tenth in the world having about 188 offices in 102 countries. Their aim is to reflect the needs of the brand and not the personality of the brand. It has about 500 professionals and no prima donnas.

5. Rediffusion-DY&R: This Advertising company of India has made a benchmark in the field of creativity. India's 5th largest advertising company is Rediffusion. This advertising agency offers a wide array of integrated pr services for external and internal communications. The primary strength of the company lies in the media relations.
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6. McCann-Erickson India Ltd: The prominent name among the best advertising companies of India is McCann-Erickson India Ltd. They define work in relation to the impact that advertising has on the lives of masses. The testimony of the company in which it firmly believes is the campaign of Coca -cola-'Thanda Matlab Coca Cola'. 7. RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973,this advertising reached great heights. This is also India's No.1 research company in the market sector and is fully run by Indians. Brand Equity is an integral part of the company. 8. Grey Worldwide (I) Pvt. Ltd: A significant name in India in the world of advertising agencies is Grey Worldwide (I) Pvt Ltd.The company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide. The company specializes in advertising and marketing services. 9. Leo Burnett India Pvt. Ltd : It has a significant presence in about 96 offices in 10 countries. This advertising agency was awarded the 'Worldwide Agency of the Year' in 2004.They are proficient in explaining how a single image is worth thousand words and can break the barriers of language but not at the cost of the ad's emotional power. 10. Contract Advertising India Ltd: This advertising company of India is one of the leading advertising agencies in India. It is oneto-one customer lifecycle management advertising agency. It was founded in 1992 and is situated in Mumbai. It offers a wide range of services like online marketing and strategy and many others.

The final external factor in the planning framework concerns environmental factor social, legal, and global. Law forbids deceptive advertising. One solution is to create brand advertising that is vague and contains little specific information. However, suchan approach can result not only in ineffective advertising; by it can lessen the socialvalue of advertising by reducing the amount for useful information that it provides tosociety. Thus,
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and advertiser who attempts to provide specific, relevant informationmust be well aware of advertising regulation.Even more difficult consideration for people involved in the advertising effort is broad social and economic issues. Another concern is that advertising, especiallywhen it is more irritating than entertaining, is an intrusion into an already excessively polluted environment. A whole set of rules is emerging to cover advertising directedat children, and advertising for products such as alcohol and cigarettes, and the use of environmental and health claims in advertising Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other

13.2 LIST OF ADVERTISING AGENECIES WORLD WIDE

This is a list of notable advertising agencies and marketing groups. These agencies have a large revenue, won major national and international advertising awards or were among the earliest agencies created. 11. Aegis Group 12. Ally & Gargano (19631991) 13. Anomaly 14. BBDO 15. Bernstein-Rein 16. Bozell Worldwide (founded in 1921) 17. Cordiant Communications Group 18. CORE (advertising media) (founded in 1995) in St. Louis, Missouri 19. Crowell Advertising (founded in 1987) in Salt Lake City, Utah 20. Davis Elen Advertising (founded in 1948) in Los Angeles, California 21. DDB Worldwide 22. Della Femina, Travisano and Partners 23. Dentsu 24. DeVito/Verdi 25. D'Arcy Masius Benton & Bowles (19062002) 26. Doyle Dane Bernbach 27. DraftFCB 28. Eric Mower and Associates, in Syracuse, NY 29. Euro RSCG 30. Fallon Worldwide 31. Goodby, Silverstein & Partners 32. Grey EMEA 33. Grey Global Group 34. GSD&M Idea City 35. Havas
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36. Interpublic Group 37. Jellyvision 38. la comunidad 39. London Creative (founded 1997) 40. Mother Advertising 41. Neathawk Dubuque & Packett (founded in 1963) 42. Ogilvy & Mather 43. Omnicom Group 44. Pappas Group 45. Publicis Groupe 46. PubliGestion 47. Saatchi & Saatchi 48. Scali, McCabe and Sloves (founded 1967, acquired by Lowe Worldwide in 1993) 49. Sapient Corporation 50. StrawberryFrog 51. TAXI 52. TBWA Worldwide 53. Tombras Group 54. Wieden+Kennedy 55. WPP Group 56. Young & Rubicam 57. Zubi Advertising Services 58. The Martin Agency

13.3 By 2005 worldwide revenue

Rank Agency 1 Omnicom Group 2 WPP Group Headquarters New York City London Revenue (US$ millions) 10,481.1 10,032.2

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3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Interpublic Group of Companies Publicis Groupe Dentsu* Havas Aegis Group Hakuhodo DY Holdings* Asatsu-DK MDC Partners Sapient Digitas aQuantive Aspen Marketing Services Cheil Communications Monster Worldwide WB Doner & Company Cossette Communication Group Richards Group Bartle Bogle Hegarty* M&C Saatchi Chime Communications PLC Merkle Wieden+Kennedy* RPA| Cramer-Krasselt

New York City 6,700.0 Paris 5,107.2 Tokyo 2,887.8 Suresnes, France 1,808.0 London 1,577.6 Tokyo 1,364.0 Tokyo 444.8 Toronto/New York City 443.5 Cambridge, Massachusetts 358.4 Boston 340.5 Seattle 258.4 West Chicago, Illinois 229.0 Seoul 210.7 New York City 168.6 Southfield, Michigan 164.3 Quebec City 164.1 Dallas 148.0 London 128.1 London 123.3 London 114.2 Lanham, Maryland 108.0 Portland, Oregon 102.9 Santa Monica 102.2 Chicago 96.2 91.5

ChoicePoint Precision Marketing Alpharetta, Georgia

13.4 FACT FILE

The majority of large advertising agencies are headquartered in the US. Of the ten largest advertising agency groups, seven are headquartered in the US, and one each in the UK,

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France and Japan, although WPP, the British agency holding company, is made up of two large US-based agencies.

With the exception of Dentsu, the Japanese agency, most other agency networks generate the majority of their revenues outside their home country.

The largest agency group, Omnicom, places over $37 billion of advertising for its clients around the world and derives half its revenue from outside the US.

US-based advertising agencies and their subsidiaries are responsible for most of the advertising throughout the world.

China is the next largest advertising market and is also growing rapidly.

CHAPTER 14
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*BRAND AMBASSADORS: EFFECT ON INTERNATIONAL MARKETING*

14.1 Brand Ambassadors & Effect on International marketing A. Trade Show Model B. Convention Model 14.2 Indias Top Celebritys 14.3 Brand Ambassadors of Various Companies 156 157 157 159 155

14.1 BRAND AMBASSADORS

A Brand Ambassadors promotional model is a person hired to drive consumer demand for a product, service, brand, or concept by directly interacting with potential consumers. A
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promotional model can be female or male, and typically is intended to be attractive in physical appearance. They serve to provide information about the product or service and make it appealing to consumers. While the length of interaction may be short, the promotional model delivers a live experience that reflects on the product or service he or she is representing. This form of marketing touches fewer consumers for the cost than traditional advertising media (such as print, radio, and television); however the consumer's perception of a brand, product, service, or company, is often more profoundly affected by a live person-to-person experience. The influence of this type of marketing may be more enduring as well. Promotional models often interact with many people at once to maximize quantitative influence on consumer demand. The responsibilities of the promotional model depend on the particular marketing campaign being carrying out, and may include: increasing product awareness providing product information creating an association in the consumer's mind between the product or brand and a particular idea (natural beauty, classic heritage, edgy sex appeal, reliability) handing items to consumers, such as a sample of the product itself, a small gift, or printed information Marketing campaigns that make use of promotional models may take place in stores or shopping malls, at tradeshows, special promotional events, clubs, or even at outdoor public spaces. They are often planned at high traffic locations to reach as many consumers as possible, or at venues at which a particular type of target consumer is expected to be present. Changing social and business standards have resulted in a decrease in the use of promotional models in both the construction industry and automobile trade shows.

A. TRADE SHOW MODEL:-

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Trade show models work a trade show floorspace or booth, and represent a company to attendees. Trade show models are typically not regular employees of the company, but are freelancers hired by the company renting the booth space. They are hired for several reasons. Trade show models make a company's booth more visibly distinguishable from the hundreds of other booths with which it competes for attendee attention. Also, trade show models are articulate and quickly learn and explain or disseminate information on the company and its product and service, and can assist a company in handling a large number of attendees which the company might otherwise not have enough employees to accommodate, therefore increasing the number of sales or leads resulting from participation in the show. Trade show models can be skilled at drawing attendees into the booth, engaging them in conversation, and at spurring interest in the product, service, or company. Trade show models may be highly skilled at screening the mass of show attendees for target consumers or at obtaining attendee information so that they may be solicited after the show. Attire varies and depends on the nature of the show, and on the image the company would like to portray. They may wear a dress, or simple but flattering business attire. They sometimes wear wardrobe that is particular to the company, product, or service represented. The slang term "booth babe" is often used to refer to a trade show model. The term focuses on physical appearance, or specifically on wardrobe, which, depending on the type of trade show, can be thematic or sexy. For example, at a builder's convention a model may be dressed as a construction worker with cut-offs, tight t-shirt, tool belt, and hard hat. Girls that work at a car

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show or similar event are often called 'car show girls', 'race queens', 'pit babes' or in a noncolloquial term, paddock girls. B. CONVENTION MODEL A convention model is an assistant that works with a company's sales representatives at a trade show exhibit. They are used to draw in attendees and provide them with basic information about product or services. Convention models may be used to distribute marketing materials or gather customer information for future promotions.

14.2 INDIAS TOP 10 CELEBRITY BRAND AMBASSADORS A. Highest earning celebrity

MS Dhoni 28 - (1981) Shahrukh Khan 43 (1945) Aishwarya Rai Bachchan 35 (1973) Amitabh Bachchan 66 (1942) Sachin Tendulkar 36 (1973) Hrithik Roshan 35 (1974) Yuvraj Singh 27 (1981) Katrina Kaif 25 (1984) Akshay Kumar 42 (1967) Salman Khan 43 (1965)

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B. Women Top Men:

Aishwarya Abhishek Kareena Saif Deepika Ranbir Kajol Ajay Cricketers and actors rule over Indians. They can sell anything with their star power and grip over Indians. While cricketers mesmerise the classes, actors sway the masses. It is a win-win situation for both the cricketers and the actors. In India, if you are no good in studies, head to be a cricketer, or an actor. If you dont succeed there, become a politician. You will still reap benefits (if not popularity or money wise, power-wise you will.) With three cricketers and seven actors in the list, it is definitely in favour of entertainment. Indians sure can do with it in no uncertain terms to ease their stressful lives. Actors spread cheer and influence them in their buying decisions. Women have stolen a march in many areas. They have come into their own. And they find a place in the list. Sania Mirza, Hema Malini, Kareena Kapoor and Priyanka Chopra may not be in Top 10 but they are there later on, making their presence felt. Katrina Kaif is fast emerging as an enigma. She has reached the pinnacle of success in Bollywood in a very short span of six years. She started with a miserable flop Boom (2003) when she was 19. In 2009 and 25 years old, she has set standards that will be hard to match by anyone in years to come by. A foreigner rules the roost and is more Indian than Indians. A total outsider with no connections or Godfathers, she has made to the marquee. That is confidence and a desire to succeed. Kudos to her. Aamir Khan, Saif Ali Khan, Kareena Kapoor and Priyanka Chopra are conspicuous by their absence from the top 10 list. Significantly there are no politicians, businessmen, cops, judges, journalists, doctors, engineers or educationists, who influence Indians. It is sad but then reality check is important. And this reality hurts. Nevertheless, it presents a fact where much catching up has to be done. Along with the reality shows, a reality check remains to be done. Our heroes are cricketers and actors. Our educational text books may have Mahatma Gandhi and other heroes but remain unread. But magazines filled with news about cricketers and actors sell like hot cakes. If only our educational books were made of them, it will attract more students, who will excel in education (doesnt matter if that will be filmi one.)

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14.3 BRAND AMBASSADORS OF VARIOUS COMPANIES: Eveready ropes in Akshay Kumar as its brand ambassador

Eveready Industries India, Indias leading marketing dry cell battery has signed up Bollywood actor Akshay Kumar as its brand ambassador. Akshay Kumar, speaking on the occasion, said It gives me immense pleasure to be associated with an iconic brand like Eveready. As a child whenever I would get a toy, I would ask my dad Where is the Eveready? since Eveready was equal to battery in my mind. I thank Eveready for always bringing me and my toys to life. Referring to the association, Deepak Khaitan, Vice Chairman, Eveready said We are happy to have Mr Akshay Kumar as the brand ambassador for Eveready. He is a great youth icon who has a very power-packed persona. It is a very natural association between him and the brand and we are sure that this relationship will be mutually rewarding one. In the mid-nineties, Eveready launched its first major advertisement campaign with the famous slogan "Give me Red". The advertising byline of the popular Red series of batteries, it is today symbolic of the empowered urban lifestyle that the brand reflects. Eveready is Indias largest marketer of dry cell batteries selling about 1.2 billion units annually. It is also the largest marketer of torches selling more than 2 million pieces per annum. Apart from batteries and torches, Eveready offers a basket of FMCG products that find place in every household. This includes rechargeable batteries, CFL & GLS lamps and packet tea. Eveready has one of the most extensive distribution networks in India of over 4,000 distributors reaching out to more than 1 million retail outlets directly. Its products are available in more than 3 million outlets in the country.

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 Virat Kohli is brand ambassador for TVS Sport motorcycles

VS Motor Company has roped in Indian cricket star Virat Kohli as Brand Ambassador for its Sport range of motorcycles. "TVS Motor Company has signed on one of India's brightest and most promising cricketing talents, Virat Kohli as brand ambassador for its all new TVS Sport motorcycle. Kohli will feature on all advertising and retail material related to TVS Sport", Chennai-based TVS Motor Company said in a statement. Virat is a perfect fit to the brand. Both are about youth, have bountiful energy, vigour, go-getter attitude and a high degree of flamboyancy. We are confident that this new association will work wonders for the brand", TVS Motor Company Marketing-President H S Goindi said. The motorcycle manufactured at the company's Hosur plant boasts new features including dual tone colours. With a LED tail lamp cluster, the bike is equipped with an electric start and an all black handle bar. On his appointment as brand ambassador, Kohli said, "I am excited about this development and look forward to being part of the brand's successful growth". TVS Motor Company reported a 24 per cent jump in sales during February 2011 to 1,77,412 units as against 1,42,676 units sold in the same period of the previous year.

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 Imran khan has been signed as brand ambassadors of coca cola company

Like Aamir, like Imran. Looks like the nephew follows uncle in all respects, be it films, life or even endorsements. Reportedly, Imran Khan has signed up with Coca-Cola as its brand ambassador. Aamir Khan has been the brand ambassador of Coke for the better part of the last decade. Imran will break the ice in the ad along with Kalki of Dev D fame. The young duo has been directed by Dibakar Banerjee, who is ready with his next release LSD. The entire campaign has been conceptualised by McCann Erickson.

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Aishwarya Rai Nakshatra Diamond Jewelry Brand Ambassador Information

Aishwarya Rai Nakshatra Diamond's Brand Ambassador became today's modern face of Indian tradition with mysticism and symbolism. Within the first year of its launch, Nakshatra acquired a good market. After that it continued and in the next two years, it has become the leading branded jewelry collection in the country. The total market was for Bridal, non- bridal collection and the regular ones for the rich people who buyers' diamonds in the regular basis. Nakshatra is a circular cluster of six to nine stones, with the central stone larger than the stones surrounding it. It is a traditional Indian floral design with a fashionable look. Nakshatra is a powerful imagery in women's minds - mystery, brilliance, beauty and a constellation of stars. Aishwarya Rai the face of Nakshatra personifies there quality in every respect. Certificate of Authenticity is given with each piece of Nakshatra. Nakshatra has also created "Nakshatra Brand Zones" which are specially designed to enhance the consumers brand experience. It played an important role in the retail trade. In 2001, Nakshatra was awarded with silver Effie and in the following years with the Bronze Effie. [ The Effie is the most significant awards in advertising that recognize effectiveness and honor tangible results. ]

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 SRK has been signed by NOKIA as brand ambassadors

Nokia India has appointed Bollywood superstar Shah Rukh Khan (SRK) as its corporate brand ambassador. As part of this association, Nokia has launched a TVC created by Bates David Enterprise and is directed by ad filmmaker Pradeep Sarkar. The TV commercial focuses on the seamless weaving of Nokia in peoples lives today and highlights how the brand has become a trusted friend by being with them in the most important moments of their life. The target audience for the commercial is SEC A, B and C segments in the age group of 14-45 years. The TVC begins with SRK talking on his cell phone and walking in his house. As he does so, he says, Kuchh khaas baatein sabse pehle kuchh khaas hi jaantein hain. He opens the door and enters a nursery with a cradle in it. He calls out to his son and says, Jaise zindagi mein nayi zindagi ka aana.

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MS Dhoni has been brand ambassadors of various companies

Dhoni brand ambassador for many products and companies in last couple of years. Every single year, he ends up with adding more products/services/companies to the list of MS Dhoni brand. As of now, MS Dhoni brand ambassador has been for many companies and brands like: Pepsi Orient Fans TVS Birla Sun Life Cello Pens Titan GE Money Aircel Karnataka Soaps and Detergents Limited (KSDL) Big Bazaar Reebok Siyaram Royal Stag; and many more products.
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 Sachin Tendulkar is Toshibas new brand ambassador

Japanese electronics firm Toshiba today said it has signed cricket icon Sachin Tendulkar as the brand ambassador of the company. Toshiba Corporation has appointed Sachin Tendulkar as its brand ambassador across its product categories of laptops, LCD TV and home appliances and for corporate branding in India, the company said in a statement. The cricketer replaces Bollywood actress Vidya Balan who was companys brand ambassador for the last two years. As part of the contract, Tendulkar will feature in advertisements for Toshibas laptops, LCD TV and home appliances. Cricket is the most popular sport in India and Sachin, the most formidable and popular cricketer, is an influential figure, Toshiba India Private Limited managing director Kenji Urai said. His (Sachins) cricketing achievements and constant quest for high performance is in line with Toshibas Leading Innovation tagline, he added.

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 Amitabh Bachchan appointed as Brand Ambassador of Zen Mobile

New Delhi based Dual Sim Mobile handset player Zen Mobile, part of over 1000 crore Telecare group has roped in iconic bollywood actor Big B Amitabh Bacchan as its Brand Ambassador. According to the agreement, Mr. Bachchan will endorse and promote the products offered by Zen mobiles. Zen Mobile brand stands for style, innovation, and performance, the qualities that Bachchan epitomizes making him the most loved and respected actor in India. Zen Mobiles is geared up to launch a slew of QWERTY and multimedia feature rich mobile handsets loaded with social networking experience at affordable price for Indian market. The company plans to leverage its association with Bachchan through an exciting media campaign and various interactive consumer related activities in the coming months. Commenting on the occasion, Mr. Amitabh Bachchan said, I like to connect with brands that I believe in, brands which show commitment to fulfilling the needs and aspirations of Indian people and I found exactly these qualities in Zen Mobiles. I hope my association with the brand will take it closer to people and they would be able to appreciate the brilliance and innovation of Zens handsets. India is a critical market and the competition in mobile handset technologies is growing fast. Mr Bachchan will help render sheen to our brand with his grandeur. Nothing compares with the legendary Big B, a style icon, who is admired as an aspirational figure and Zen Mobiles is placing its bet exactly on that, Deepesh Gupta added.

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CHAPTER 15 *IMPACT OF ADVERTISING ON SALES *

15.1 Sale of Coke 15.2 Sale of Pepsi 15.3 Composition of Advertising on T.V. of Coke & Pepsi 15.4 Sale of Hero Honda 15.5 Hero Honda 168 169 171 172 173

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15.1 SALE OF COKE:

The Indian arm of the worlds largest soft drinks company, Coca-Cola India Inc., said it registered a 14% growth in volume sales in 2007 after a tumultuous period of almost three years, starting 2003, when a pesticides controversy erupted. The December quarter saw an 18% growth in volumes over year-ago quarter. Coca-Cola Co.s global sales volume rose 5% in the December quarter, and 6% in the entire year. Growth in India was fuelled by high-volume sales in both the sparkling and still beverages, said a spokesperson. The sparkling segment includes Coca-Cola, Fanta, Sprite and Thums Up, while the still beverage category includes juice brand Minute Maid, juice drink Maaza and bottled water brand Kinley. This makes 2007 a turnaround year for Coca-Cola in India. The companys sales plummeted after a Delhi-based activist group, the Centre for Science and Environment, alleged that soft drinks sold in India contained certain pesticides. The market remained challenging over the next few years. The turnaround came in 2006 when the company increased its prices by around 14% across brands, said an executive from a media buying agency who did not wish to be named. The first quarter of 2007 saw revenues go up by 4% over the same quarter the previous year. Coca-Cola also launched new products, such as Minute Maid, and some variants of its existing brands, and supplemented these with aggressive marketing and advertising spending last year. Coca Cola spent around Rs120 crore on its advertising in 2007, as against Rs80 crore in 2006. The company launched its first ever corporate campaign in India that showcased all its brands under a common tagline, Little Drops of Joy.Continued investment in building organizational capabilities and marketing communication, and focus on improved execution by consolidating bottling operations helped us attain a solid growth, said a senior executive from Coca-Cola who did not want to be named.The parents net income rose 79% to $1.21 billion from $678 million in 2006 when the company wrote down the value of North American operations, on 24% increase in revenue, up to $7.33 billion, driven by gains in China, India, Turkey and in established markets including Latin America and Africa.
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15.2 SALE OF PEPSI:

1. PepsiCo Inc posted higher-than-expected quarterly sales on Thursday, helped by strong demand in international markets such as India, while soft drink volumes fell in the Americas. 2. The world's second largest soft drink company after Coca-Cola Co posted a quarterly profit that met analysts' estimates and expects to complete its USD 7.8 billion purchase of its two largest bottlers by the end of the month. 3. Coca-Cola also cited strength in emerging markets, including India, when it reported higherthan-expected quarterly sales earlier this week. 4. Coke reported a 29% volume increase in China, while Pepsi reported a decline and attributed it to a shift in the timing of the Chinese New Year and promotions by rivals. "We made a conscious decision not to hit the volume accelerator for one period or one quarter," PepsiCo Chief Executive Indra Nooyi said, echoing a stance the company has taken broadly on steep promotions. 5. Edward Jones analyst Jack Russo said that could also explain why Pepsi's Americas drink volume fell 5% while Coke's North American volume only fell 1%. 6. Looking ahead, PepsiCo said it expects to spend about USD 5 billion this year between buying more of its shares and contributing USD 600 million to its pension plan.

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7. The maker of Pepsi-Cola drinks and Frito-Lay snacks sees additional cost savings from its bottler acquisitions, raising the target by USD 100 million and predicting USD 400 million in savings by 2012 at full integration. 8. Analysts said the two factors could have boosted PepsiCo's 2010 earnings view, but the company stuck to a forecast for growth of 11% to 13%. "I think there's a little disappointment that they didn't raise the full-year EPS guidance given those two factors ... but why get everybody fired up so early in the year?" Russo said. "If they up the guidance this year, maybe it'll happen more in the late spring or summer when the timing's more accurate," he said. PROFIT NEARLY DOUBLES 1. PepsiCo's forecast calls for earnings growth at a mid-to-high single digit%age rate in the first half of the year and a mid-teen%age rate in the second half. Shares of PepsiCo were up 1.3% in Thursday afternoon trading while Coke gained 0.7%. 2. Pepsi shares are up 7.4% from Aug. 3, the day before it announced the bottler deal, through Wednesday, outpacing a 5.6% gain for the Dow Jones US Food and Beverage Makers Index, of which it is a component. 3. PepsiCo struck a deal to take over Pepsi Bottling Group Inc and PepsiAmericas Inc , aiming to improve its North American operations and remove the tensions of being both a shareholder and supplier to the bottlers. 4. PepsiCo earned USD 1.43 billion, or 90 cents per share, in the fourth quarter, up from USD 719 million, or 46 cents per share, a year earlier. On a core basis, which excludes items such as restructuring and merger costs, profit was 90 cents per share. Revenue rose 4.5% to USD 13.3 billion, helped by a 21% increase in sales volume in India and high-single-digit growth in Thailand and Egypt. 5.. Analysts on average were expecting a profit of 90 cents per share on revenue of USD 13.26 billion, according to Thomson Reuters I/B/E/S. Across the company's portfolio, the total volume of snacks sold rose 1%, while beverage volume fell 1%. 6. Volume was flat in the PepsiCo Americas food unit, driven by a flat quarter at Frito-Lay North America, a 2% decrease at Quaker Foods North America, and a flat performance in its Latin American food business. Volume in its international division rose 4% in snacks and 3% in beverages. In Europe, volume fell 3% in snacks and was flat in beverages. In the unit covering Asia, Africa and the Middle East, snack volume soared 13% and beverage volume rose 5%.

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15.3 COMPOSITION OF ADVERTISING ON TV OF COKE AND PEPSI

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15.4 SALE OF HERO HONDA Hero Honda royalty at Rs 2,350 crore

1. Hero Honda Motors Ltd (HHML) will pay at least Rs 2,350 crore as royalty to Honda Motor Co. Ltd till June 2014 as a part of the fresh licensing agreement signed between the two firms. 2. Royalty payments to Honda Motor set to rise in line with increasing sales and this could have an impact on profits. 3. Hero Honda Motors Ltd (HHML) Rs2,350 crore as royalty to Honda Motor Co. Ltd till June 2014 as a part of the fresh licensing agreement signed between the two firms after the Japanese firm decided to exit from the joint venture in December. 4. Royalty payments are set to rise in line with increasing sales, and this could have an impact on profits at the worlds largest selling two-wheeler company. 5. Fresh products launched by the company will cannibalize sales of old models, thereby increasing the proportion of new vehicles in the overall mix, according to Vineet Hetamasaria, analyst at Mumbai-based brokerage Pinc Research. 6. What Honda said is that there is a compensation of 45 billion Japanese yen, in Indian rupees it works out to something like Rs2,350 crore to Rs2,400 crore, Sud said. This payment is payable for a period of 3.5 years, our agreement is valid from January 2011. This works out to Rs670 crore to Rs680 crore per annum. 7. When my turnover grows, the Rs670 crore to Rs680 crore as a percentage of net sales will come down, he said. Hence, the payment to Honda will not exceed the current levels, which is 2.7-2.8%. 8. The payments will be made in March of 2012, 2013, 2014 and June 2014. These wont be equal instalments, but as far as a charge to the profit and loss account is concerned, the cost will be spread equally over 3.5 years, or 14 quarters. 9. We paid Rs425 crore in 2009-10. Royalty is a function of volume and the product mix if you sell more products that have higher royalty, the overall royalty will be higher, Sud said. Royalty in (the year ended) March 2011 will be in the vicinity of Rs520 crore. We have done 5.4 million units in 2010-11; volume has grown 17-18%. 10. In 2009-10, the royalty payment was Rs416 crore, or 2.7% of net sales. Sud had said in a previous interview that the royalty for 2010-11 would be 2.8-2.85%. 11. Honda had made the announcement of the royalty payment earlier. Honda and HHML have signed a new licensing agreement, which enables HHML to continue producing, selling and servicing its current products, the Japanese firm said in its release. Consideration for the licensing agreement was 45,000 million yen and becomes due through 2014. 12. Last December, the Hero Group and Honda agreed to end their 26-year-old relationship, with the Indian promoters buying the Japanese firms 26% stake in Hero Honda at a discounted rate for Rs3,841.83 crore.

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15.5 HERO HONDA

Sales Performance Dec'04 Domestic Exports 225250 5501 Dec'05 238822 6282 Apr'04Dec'04 1892540 43441 Apr'05Dec'05 2155479 72815

The Hero Honda Company achieved a solid growth of 35% as compared with sales recorded during January 2005. The cumulative sales of the company for the period April 2003 - January 2004 are 16,73,421 motorcycles, a notable jump from 14,27,052 units sales achieved during the corresponding period last year (April 2002-January 2005). This reflects a growth of 17% in the cumulative sales of the company owing to its advertising strategies.

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CHAPTER 16 *ADVERTISING LEGENDS*

12. Mr. 13. Mr. 14. Mr. 15. Mr. 16. Mr. 17. Mr. 18. Mr.

A.G. Krishnamurthy Brendon Pereira Elsie Nanji Freddy Birdie Gopi Kikde Ivan Arthur Naved Akhtar Panna Jain Subrata Bhowmick Prasoon Joshi

175 175 176 177 177 178 178 179 179 180 181

19. MR. 20. Mr. 21. Mr. 22.

Mr. Alyque Padamsee

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ADVERTISING LEGENDS:
Here are some of the great advertising legends which greatly has an impact on the advertisng industry. With their effort in advertising world they not only make their special identity but also make the add the global phenomenon. Some of these add gurus are :-

1 Mr. A G Krishnamurthy

Everybody knows A G Krishnamurthy as the Captain who steered his agency from a Rs. 35 lakh company to a Rs. 7 billion corporation in a remarkable short 23 years. But little is known of his considerable contribution in the agencys creative reputation - doubling up as copywriter/art director and quite often even as creative director. Here is a sampling of AG Krishnamurthys own award-winning (The President of Indias 14 awards included!) portfolio. Awards:

1995-A&M Advertising Person of the Year, 1997-Inducted into the Hall of Fame, Ad Club, Calcutta 1998-Nominated as one of the 25 key figures in the international ad industry 1999-The Premnarayen Award by the AAAI.

2. Mr. Brendan Pereira

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From his palette of skills, Brendan Pereira has been imparting knowledge to a wide audience over his 40 years in the business of art, advertising design and communications. His work with agencies in London and a stint as Brand Manager at Beecham's International, London, for a range of consumer products, created a firm base for the task of leading Aiyars Advertising in Bombay as Creative Director, and one of the first in the industry to be elected to the Board in that capacity. As Deputy Managing and Creative Director, he was one of the major shareholders who founded Chaitra Advertising, and led it on to produce some of the outstanding work of that era.Spreading his talent, he published his first book "Changing Faces" in 1999.

3. Miss Elsie Nanji

Elsie Nanji began her career in advertising 20 years ago. Since then she has been with O&M, Lintas, Enterprise and Ambience.Over the years, Elsie has amassed many awards, including an international award at the London International award and the art director of the year award in India for three consecutive years . In 1977 She was selected as the first jury member at the Asia Pacific Adfest in Chiangmai, Thailand.From a creative director in Ambience, she became a partner in 1987. Ambience has been voted as one of the three top creative agencies in the country, by the Marg agency track, '95 and '97, for study conducted in every alternate year.Elsie still maintains that her best creative products are her two children Yohaan (6) and Aria (3)

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4. Mr. Freddy Birdie

Freddy Birdy began his career around ten years ago at Enterprise.Has since worked in Rediffusion, Trikaya and Mudra.He is the only Indian Copywriter to win the coveted Copywriter of the Year award a record ten times.He has worked on campaigns for Thums Up, Vimal, Rasna, Lakme, Polo, Bata, Samsung, Yves St. Laurent, Mitsubishi Lancer and Sil jams.

5. Mr. Gopi Kukde

Gopi Kukde obtained his Commercial Art Diploma in I Class from J.J. Institute and the Gold medal for his campaign for the film Meera, by Gulzar.After working for a decade with leading ad agencies like Chaitra, Clarion and Everest, he with two others founded Advertising Avenues in 1982.His creative brilliance is on show in the campaigns of Asian Paints, Glaxo, Stanrose Fabrics, Centaur Hotel, Hawkins pressure cooker to name just a few. At Avenues, he got to work on UFO Jeans, Skypak Couriers, Paan Pasand and Onida. He has produced and directed dozens of ad-films for Avenues on various brands.Gopi has won several CAG & Ad Club awards in appreciation of his creative talent.He also has special interest in the field of Ceramics and has a studio at Goregaon.

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6. Mr. Ivan Arthur

With more than 36 years in advertising and with most of his time at Hindustan Thompson, Ivan Arthur has been the brain behind many award-winning advertisements for Air India, Sunsilk, Clinic, Hamdard, Bombay Dyeing, Handyplast, Readers Digest, Haryana Breweries, Philips or others. Ivan Arthur has been part of a 10-member international task force that designed and launched JWT's Total Branding Protocol that is now being used internationally.A faculty member of a number of JWT international training programmes, Ivan has also addressed a number of national and international advertising groups including the Philippine Advertising Congress held in Subic Bay, the Advista Advertising Congress held in Cairo and all the Advertising Clubs in India.

7. Mr. Naved akhtar

Naved Akhtar began his career around twelve years ago.He has worked in Clarion, McCann, Trikaya and Mudra.He has won the Art Director of the Year Award three times.He has worked on campaigns for Nescafe, Milkmaid, DCM Toyta, Gillete, Dunlop, Vimal, Rasna, Polo, Bata, Samsung, Yves St. Laurent, Mitsubishi Lancer and Otis.He is reputedly the coolest natured person in Indian Advertising.
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8. Miss Panna Jain

Panna Jain's impressive itinerary includes working with Ogilvy & Mather in London, with Everest Advertising as an Art Director and with MCM as creative Director. Then followed a phase of Creative Consulting with some of India's leading advertising agencies, including Contract, Enterprise, Trikaya, Lintas and FCB-Ulka.Recipient of the Harold Nelson Prize by the London Country Council, the Air India Trophy and Campaign of the year Award jointly given by the Ad Club, CAG and RAPA among several others. Panna has one of his photographs included in the permanent collection of the Museum of Modern Art, New York to his credit. At present, he is working on the final draft of a book on advertising creativity.

9. Mr. Subrata Bhowmick

Subrata Bhowmick is one of Indias leading graphics designers. He has over the last 34 years, created workable and cost-saving design solutions. Which have won him 50 prestigious awards, including 18 Presidents National Awards. His much lauded accomplishments straddle various fields - textiles, photography, environment, graphics, book design, and advertising. Subrata represents India this year, as the Biennales prestigious Guest of Honour.In advertising, his work has contributed in building brands such as Cali-Cloth, Vimal, Handloom House etc, besides making them cherished and loved across a wide-cross section of people.
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10. Mr. Prasoon joshi

Prasoon Joshi is the regional Creative Director for McCann-Erickson for south and south-east Asia, as well as a lyricist for many popular Bollywood movies like Fanaa, Rang De Basanti, Black and Hum Tum. He has also created many advertisements because of which he has earned the title of "the ad guru of India". He is also an alumnus of Institute of Management Technology, a business school which is located in Ghaziabad in Uttar Pradesh, India. He has been the lyricist for the following Bollywood films:

Kajri (2008) Taare Zameen Par (2007) Fanaa (2006) Rang De Basanti (2006) Black (2005) Rok Sako To Rok Lo (2004) Phir Milenge (2004) Hum Tum (2004) Aankhen (2002) Lajja (2001)

He has created the advertisements for the following products:

Chlormint Asian paints Cadbury NDTV India Pulse Polio Program Vacao Scooty Close up Ponds Happydent Coca Cola

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Awards

He has won the Golden Lion at the Cannes Film Festival. He has won the 2002 ABBY for the Best Copywriter and the Best Ad Campaign He has won more then 200 advertising awards. He has received the Screen Best Lyricst Award for the song Sason ko Sason from the film Hum Tum. He has received FilmFare Best Lyricst Award 2006 for the song Chand Sifarish from the film Fanaa.

11. Mr. Alyque Padamsee

Alyque Padamsee is an Indian theater personality and ad film maker. He is probably best known in the English-speaking world for playing Muhammad Ali Jinnah in the film Gandhi. Besides being involved in Indian theatre as an actor and producer, Padamsee is well known as an advertising professional who headed the advertising company Lintas

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*METHODOLOGY*
1. After doing the exploratory research to identify the problem and a detailed study of the
various aspects of The Impact of advertising in International marketing, it became clear that three categories of people need to be interacted with. These are A. the present employees of TFS. B. The past employees who have since left the organization. C. Customers and buyers.

2. Its was therefore planned to conduct my project work for the collection of data(both primary
and secondary) as discussed in following paragraph.

PRIMARY DATA 3. I have planned to use two tools of research namely the questionnaire and the structured
interviews. For obtaining the Primary data for my project, I propose to use two research instruments i.e., Questionnaire and Structured Interviews:

4. QUESTIONNAIRE:
On the basis of exploratory research and theoretical perspective gained a questionnaire was developed and pre-tested for improvements. It was thereafter administered through personal

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contact/visits to TFS. An evenly balanced sample was selected at random for responses. Details of the sample are as under.

i. ii.

Sample Size Sample Composition Export Manager / staff

: : :

25

05 05

Heads of Departments / Senior Staff : Supervisors / Workers Past employees : :

10 05

5. STRUCTURED INTERVIWES

i. ii.

Sample Size Sample composition Export Manager / Staff Heads of Departments / Senior Staff Supervisors / workers Past employees Customers/ buyers :

: : : : : :

10

02 02 02 02 02

SECONDARY DATA
6. Despite all efforts no earlier study on the subject could be obtained from TFS. Infact there was no material even remotely connected to the subject even remotely connedted to the subject available in the organization. I was informed that they have never put thgese aspedts in wiring

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and every recruitment, promotions, reward etc. were done at the behest of personal views of the owners. 7. However I was able to study considerable abount of aready published material (books, article in magazines and internet) on the subject and this served as useful input in conduct on my project. 8. Information gained during the exploratory research while doing interaction with the employees, past employees, customers and owners and my own past experience were also valuable inputs.

*RECOMMENDATIONS*
1. My project study has amply revealed that the impact of advertising in international marketing in TFS is low and the Top management need to be address specific area for better performance and they need to realize that advertising is a key element nowadays. 2. Major recommendations are: A. TFS should carry out an exercise in advertising and lay down their impact for each specific area so that they should know the problem. B. The organizations should standardize their promotion/ rewards policy, publicise it and implement it in a fair and just manner. C. TFS should seriously examine the working conditions prevailing in the organization and improve genuine problems on priority basis. D. TFS need to do their add compaign programme time to time so that the people should know the value and services that the company is giving, since by this they will have an edge on peoples like other companies.
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E. For TFS organizations little advertising may be done, instead promotional money is spent on other promotion options such a personal selling through a sales team. F. TFS companies advertising may consist of occasional advertisement and on a very small scale, such as placing small ads in the classified section of a local newspaper. G. Delivering an effective marketing message through advertising requires many different decisions as the marketer develops their advertising campaign.

*CONCLUSIONS*
Advertising Management though is a complex process of employing various media to sell a product or service. This process begins quite early from the marketing research and encompasses the media campaigns that help sell the product. Without an effective advertising management process in place, the media campaigns are not that fruitful and the whole marketing process goes for a toss. Hence, companies that believe in an effective advertising management process are always a step ahead in terms of selling their goods and services. I have therefore conduct my project on impact of advertising in international marketing and agreed to suggest remedial measures for improvement. Motivated to do a better job, I attempted to obtain some previous studies, standing orders and policy letters from the organization for my secondary data. To my surprise I found next to nothing. However, not discouraged, I conducted an exploratory research and interviews for a number of managers, staff and workers of TFS and also collected my data through internet. Web world help me greatly in collecting the data. This considerably helped me by giving me a deeper insight in defining the problem and later in formulation of my questionnaire and questions for structured interviews. I have kept the top management in picture and have made my point for addressing the areas the key factor of approaching their product through the means of
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advertisement to the peoples. At a bit more personal level conduction a project on this subject has been a very gratifying experience. The TFS top management and workers has appreciated my work, its been a grateful experience.

* KEY LEARNING EXPERIENCES*

To get thorough information about the various activities carried out in the process of introduction, manufacturing, of a product or services and ensuring customer satisfaction.

Management education requires having a detailed knowledge about various stages of

a product or services forming its life cycle, till the expiry of the item. Thus to get a better picture of all these, it is beneficial to work out such exercises.

To know how a company thrives on employing new techniques to make a better position in the market.

It provided with an opportunity to enhance knowledge in the area of The impact of

advertising in international marketing , which is still a new concept in the area of retail yet of extreme importance in managerial decision-making.

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 It enriches my ability to think about the ways in which a company constantly makes

efforts to advertise its product/services in the competitive market.

To acquaint ourselves of a companys product / services and how are they competent with others.

*REFERENCES*
International marketing, strategy planning, market entry by Roger Bennett. News letter from business standards (Add.2011). Advertising principles and practice by wells. Websites: www.managementstudyguide.com www.travelfoodservices.com www. Wikepediafreeencyclopedia.in
businessstandard@business-standard.com

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www.economywatch.com/world-industries/fmcg

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