HAPTER — ONE OVERVIEW 1. INTRODUCTION 2. CONCEPTUAL FRAMEWORKCHAPTER — ONE SECTION ~ ONE ENTRODUCTION 4.4.1 4 Almost since the begining, human beings have used advertising. However, its development as a business tool is new. Advertising is a subset of marketing which in turn, is a subset of managment. The role of advertising as a marketing activity, therefore is to implement product flow through the channels: of distribution to act as a catalyst in acquainting the consumer with the means by which wants may be satisfied and ultimately to induce a consumer action which will benefit the source of communication _— process. Advertising has numerous socio~economic effects. Inspite of criticisms levelled against advertising, it has mainly been a factor in increasing the praduction and decreasing the unit cost and other related advantages which give birth to inevitable desirability of advertising, both from social & economic viewpoints. From an economic viewpoint, advertising increases demand for a product thereby increasing production enabling large scale economies and finally decreasing the cost of production per unity subsidises media services; stimulates competition, thereby increasing variety and quality of goods; provide immense employment opportunities to people and so on, From a social point of view, advertising may be used tocommunicate social issues through mass media. In Indian context, these social issues are health care and medical awareness, family planning, environmental awareness, social attitudes and beliefs, safety patriotism, saving practices and legal aspects. Critisism levelled against advertising have no relevance in a free market where manufacturers are allowed the freedom to decide what to produce and they do so an the basis of what the cansumer wants. Thus advertising is now an integral part of both the society and its economy, Advertising is a multifaceted discipline and uses knowledge from various disciplines relevant to formulation and execution of an advertising plan. This in turn necessitates a clear understanding of all the relevant disciplines. According to a report in Communicator, March 1992 issue, “At present India is among the lowest in the world in terms of advertising e enditure as a percentage of GNP. Countries like UK and Hongkong spend about 0.5 per cent of GNP on advertising while in India it is about 0.05 per cent of GNP". The Indian ad~scene is growing more and more. The ad spending in 1992 were Rs 1600 crore, increased to Rs 2900 crore estimated in 1993 and Rs 4000 crore (estimated) in 1994. This historically strong growth rate in Indian advertising industry is because of competitive nature of Indian market. An executive of 2Tara Sinha Me Cann Erickson Advertising is right when she says, "contributing to this growth will be no doubt, the government's economic liberalisation which has invited a number of multinationals igniting an increased competition in trade. INDUSTRIAL ENVIRONMENT 4.4.2 2 It was in 1980 that the need was felt for promoting competition in Indian industry by permitting import of technology and facilitating modernisation. Nearly 20 years after independence and of centralised planning the government has liberalised the ecomnomy to permit Indian industry to achieve its full potential By the end of sixth plan (1980-85), Indian industry had gained considerable competence and was able to meet the emerging challenges in the world economy. The seventh plan (1985-90) recognised the need for consolidating Indian industry's strength. Thus, to increase productivity, reduce cost and improve quality many changes in policies and procedures were brought about This made a beginning to open up the economy to greater competition and the net result was that industry achieved annual growth of 8.4 per cent during this period. But the Gulf war and the uncertain situation at the centre. resulting in the changing of the Government, has put the Indian economy under severe strain in early 1991. The deceleration in industria growth and an unsatisfied demand for products have °given rise to piguant situation. The government, after the Lok Sabha Elections in June 1991, initiated numerous economic measures with far reaching effects like - liberalisation, globalisation, privatisation, delicensing, convertibility of Indian Rupee, new fiscal, monetary and industrial policies, amendments in MRTP Act, and relaxation of provisions of FERA brought faster economic and industrial growth. These measures have put the Indian economy on the threshold of major tranformations. The need of the hour is to produce in large volumes and of international standards in the areas of quality and service. These should be attained at costs which will make Indian products competitive Thus, the new policies had encouraged and assisted the Indian entrepreuners in exploiting and meeting global opportunities and challenges in a time bound but gradual manner. Inflow of equity capital from abroad is increased and the targeted level is 2 Bilion US dollars a year. The economic liberalisation has brought many changes in the industrial and business sector and has thrust the business into its next phase of growth. Firstly, In the past advertising has often been preoccupied with explaining its reason to be. Now this is not required for the reasons - one, as earlier consumers did not have more choices and now a days more and more options in.a particular product class areavailable to the consumers. Not only the domestic compatition increased hut also the multinational companies has entered the scene. Two, advertisers have also accepted the fact that reducing advertising even during @ recession can have a negative effect on sales and profits resultingly. In order to maintain thier market share and to secure their survival they increase or atleast maintain advertising budgets. Secondly, with the entry of multinational companies Indian industrial scene is being exposed to global expectations in terms of service. Indian manufacturers are now required to produce and s@11 goods and services which match international standards. This further increase dependence on advertising in order to help them to educate, inform, persuade and ensure the consumers to know what value they are getting for their money. Thirdly, all kinds of brands of a particular product class are now available in the market. The task of manufacturer i.é., to motivate the consumer to buy a particular brand is becoming more complicated, if not impossible. Therefore, they are increasingly depending on advertising to help them sell their product brands so that they can continue producing. Ms.Tara Sinha, an eminent advertising personality and chief of T.S.McCann Advertising is right to say, “Business has already shown wings for a number of brands established, 5existing ones and new comers and the principal reason for being the kind of quality and variety being offered to consumers. When it comes to stretching af his rupee to the maximum value, the consumer has become wiser, To meet consumer needs and interest things have to more mere product publicity to demographics and psychographics, That's why 1 said fighting it out in the open". Fourthly, many other media vehicles, particularly for TV broadcast media, have come up. Important among them are ~ STAR TV, ATN, MTV, ZEE TV etc.. Besides cable TV operators have come in on the Indian media scene with a Promising growth rate. This is because the local or regional markets have reached to nearly saturation ate thereby intensifying the increased competition among retail outlets. Thereby, dividing the target audience among the vehicles. Thus in order to reach to their target audiences the manufacturers are left with no options but to use a optimal mix of these vehicles. Further they are increasingly targeting the cable TV operators. As they have become more attractive as a result of their lower per capita ad rates plus a perception that local advertising can bolster lagging sales in paricular market or make the advertising more effective by introducing the local flavour. Therefore, media and technological improvements and changes such as telecommunications, computerization had 6affected and will affect the production values and sales environment in general and in particulars the advertising industry. 4.1.3 1 The advertising industry consists of components like advertisers (through its departments), mass media and advertising agency, is a socio economic institution and aims at fulfilling the human information needs (through acquisition & transmitting? about the availability of the products/services. All the business and non-business organisations have practically used it at one time or the other the advertising industry. The adverising agency, is a subset of advertising industry which in turn, a subset of advertising. 4.1.4 1 Advertising agency, of course a recent and core component of the industry, plays a pivotal role in shaping and reshaping the advertising industry. We have seen that as liberalisation process picks up speed, the dependence on advertising and consequently ad-spending is bound to increase. The need of hour is to understand how advertising agencies help the domestic manufacturers to catch on the changes. It is here, the manufacturer requires the help of advertising agency and are increasingly depending on advertising agencies. R. Vasudevan says, “the entry of consumer product giants from the west had opened up exciting possibilities for advertising agencies in India many of which are yet to reach international standards. For 7those involved in promoting indigenous products the challenge has become tdugh they have now to compete with the more technically competent and professional agencies from the west who have tied up with loca setups..... Some of the well known, big budget agencies in US have sharpened up the art of communication and created the consumer needs through the manipulative persuasion". Jeff Fergus, who is Regional Managing Director (Asia Pacific) of Leo Burnett Advertising says, “ the quality of Indian advertising has lot of scope to improve, considering the tremendous potential that exists, and some of the compaigns can compare with the best anywhere...... You see, we look at India not as one but a number of nations, given its variety of cultural, language and community differentiations. It is a complex situation that needs highly competitive handling. One should not forget the sensitive nature of the people who may react differently". Kurien Mathew Director (Client Servicing) Anthem Communications expresses, “there are signs of an upsurge in advertising in the days to come. I think we are going to see a good new year in the market which means substantial increase in the advertising budgets of marketers. That is good for consumer as also more advertising means more wider product information" Manufacturers are providing agencies with the profitable and promising business. This boom in the ad 8business requires advertising agencies to gear up to face the opportunities and challenges of the last decade of the 21st Century, with its high voltage strategies to match international standards and with a long term perspective. This situation led to look into what is happening behind the scene. In spite of growing interest in advertising agencies relatively little theory and research exist to guide effective decision making. They too focus for attention and provide basis of necessary specialisation, Therefore, our purpose is to make a closer investigation and develop a better understanding of what has happened with the advertising agencies and what ad-agencies should do This work, combination of knowledge of both theory and practice, place more emphasis on practices and actua business situations that advertising agencies ecutives have actually faced.CHAPTER-ONE SECTION-TWO CONCEPTUAL FRAME WORK IT is pertinent to elaborate some of the concepts relevant to the research study. ORGANISATION 4.2.1 4 @n organisation may be defined as a set of people who have a common interest in achieving a set of goals and who interact through structured relationships and various operating processes. Stan Kossen in his book, ‘The Human Side of Organisation’, states that," An organisation is a group of individuals coordinated into different levels of authority and segments of Specialisation for the purpose of achieving the goals and objectives of the organisation".Whereas,Louis Allen defines organisation, in his book ‘Management and Organisation’, as “the process of identifying and grouping the work to be performed , defining and delegating responsibility and © authority, and. establishing relationships for the purpose of enabling people to work most effectively together in establishing of objectives".Therefore, an organisation may be usefully thought of as a system a set of interacting elements . When viewed in this way. sai}organisations are open systems rather than closed systems, although organsation members may act as if they are part of a closed systems. Gpen systems have five generic subsystem: production, supportive maintenance,adaptive and managerial. The structuring process of an organisation may be viewed in terms of eight steps as follows? (1) Determination of organisational goals or objectives (2) Determination of the task requirements, that is the amount of skills, effort and knowledge; (3) Division of tasks inte different jobst (4) Integration of jobs into departments or ether work groups; (5) Selection of personnel to fill jobs; (8) Assignment of work positions to the individuals; (7) Granting the authority to the people to carry out the duties of their jobs; and (8) Determination of superior—subordinate relationships for facilitating the performance evaluation. @n organisation must have = following = three charactersticss(i) a set of two or more peoples (ii? goals; and (iii) patterned relationship among organisational members. These three characteristics determine the three main functions of an organisation - division of labour, combination of labour and co-ordination. Delegation ofAuthority in an organisation create various levels of authority, commonly called as , organisational hierarchy. Organisational Charts are formal documents meant to indicate the chain of command, control, direction and the designations assigned to these personnels,and charts indicate people's locations or positions in the hierarchy and their relationships with in a formal organisation". MANAGEMENT 4.2.2 1 The management has been important to the daily lives of individuals since long. Thus concept of management is more and so much more, in fact, that no one definition has been universally accepted.Nevertheless, it can be better understood from three approaches, namely, management as a field of study, as a team or class of people, and as a process. Management as field of study includes management principles, techniques, functions and problems. Management as a team includes individuals who perform the managerial activities in the organisation. Management as a process includes various managerial activities, i.e., of getting things done by others.We define management as a process of a systematic way of doing things. According to Professor L.M. Prasad, management posesses following characteristics? (1) Management is a process of organised activities and brings about a co-ordinated efforts of many 12individuals and sub groups. (2) There is an objective or set of objectives towards which the organised group activities are directed. (3) There is a certain relationship among the available resources like materials, money, and people in the organisation. (4) Management involves working through others. i.e. by operatives to accomplish organisational objectives. (5) Management process involves decisions~ the evaluation and selection of alternatives ina complex enviornment to get things done by others. Judged by its nature management can be viewed as an economic resources(co-ordinator of different resources like land, labour, capital and — entrepreneur Entrepreneur establishes the organisation and its sources into management transforms these various productive processes.)+ system of authority: (system is a set or assemblage of things connected or interrelated or interdependent so as to form a complex unity and authority is the legal ‘right to ‘command others to act or not to act in a prescribed manner therefore management is the arrangement of various types of = authority) Science and art both (it is a science because it evolves and uses certain principles and art because it requires continuous practice to get the desired results in the best way)t 13profession (it has all the five characteristics of a profession,as identified by Mc Farland, viz. existence of an organised and systematic knowledge formalised methods of acquiring training and experience, existence of an association with professionalisation as its goal, the formation of ethical codes for guidance of conduct and charging of fees based on service, but with due regard for the priority of service over the desire for monetary reward). Since management is viewed as an inexact science, thus it must have certain principles and theories. Henry Fayol, perhaps the real father of modern operational management theory,has given (in his book ‘General and Industrial Administration’) the fourteen principles of management, although according to him the list is not exhaustive. They are follows 1, Division of work + 2. Authority and Responsibility; 3. Disciplines 4. Unity of Commands 5. Unity of Direction (one unit and one plan? 6. Subordination of Individual to General Interest; 7. Remuneration of Personnel; 8. Centralization; 9. Scalar Chain (of Authority and communication); 40. Order ( arrangement of things and people) 14, Equity ( combination of justice and kindliness)s 42, Stability of Tenures 43. Initiatives and 1444. Esprit de corps ( union is strength). These principles are universal, and have limitations due to thi nature of human behaviour in According to Fayol, management dynamic in nature? ee tl can process consisting of five elements fect of complex he organisation. be viewed as a based on its functions, namely, planning,organising, commanding,co~ ordinating and controlling. Various theorists in- management group these functior ns differently, The number of these functions vary from three (planning , organising, and controlling) Planning, organising, staffing, to dire, eight (POSDCORB~ cling, controlling, coordinating, reporting and budgeting). For practical purposes, we follow the grouping done by Koontz and Q'Donnell, that is planning, orgat mising, staffing, directing, and controlling. According to James. ALF. Stoner and Charles Wankel, managers think through their g oals Planning implies that and actions in advance. Their actions are usually based on some method, plan,or logic, rather Organising means that the mana: human and material resources of effectiveness of an organisation to marshal its resources to Obviously, the more integrated th. gers the depet att. and jan on a hunch. co-ordinate the organisation. The nds on its ability ain its goals. co-ordinated the work of an organisation, the more effective it will be. Achieving this co-ordination is part of the managers 15job. Staffing involves manning the positions created by organisation process. Leading (directing) describes how managers direct and influence subordinates, getting others to perform essential tasks. By establishing the proper atmosphere they help their subordinates do their best. Controlling means that managers attempt to assure that the organisation is moving toward its goals. If some part of their organisation is on the wrong track managers try to find out why and set things right MONAGEMENT AND ADMINISTRATION 4.2.31 Generally the two terms— Management and Administration= are used interchangebly. Howgver, a terminological conflict appeared in 1923 when Oliver Sheldon described administration as decision making function and management as execution function. According to Prof. L.M. Prasad, "on the analysis of the various views expressed in this regard three conclusions can be derived 4. Management and Administration are ones 2, Administration is above Management; and 3. Administration is the part of Management" Theorists like Henry Fayol, Louis Allen, William. H Newman, Koontz and O'Donnell, say that both management and admistration involves the same principles and functions. However, Administration is more common in 16use in Public Administration while management in Business. William. R.Spriegel, G.E. Milward, Oliver Sheldon, Ordway Tead, etc. consider management and administration involve different principles and functions. According to them administration is concerned with policy formulation and decision making whereas management execute these policies and decision, thus administration is above management. 0. Sheldon in ‘Philosophy of Management’ has said," An organisation is the formation of an effective machine the management of an effective executive and the administration of an effective direction. Administration determines the goals; the managements strives towards it. Administration determines the organisation ; the management uses it. an organisation is a machine of management in its achievement of the ends determined by its administration". E.F.L. Brech says ‘administration is part of management Administrative functions are more important at the top management level and at the lower management managerial functions are more important, that is to say. administrative functions decrease and managerial functions increase as we move down from top to lower management levels in an organisation. 4.2.4 % Ina nutshell, Administration and management may be conceptually and theoretically different , but for practical purposes, they are one and used 17synonymously of interchangeably. To understand organisational problems and their solution management deals with people in organisation and direct the human behaviour towards achieving organisational objectives. ‘Organisation’ means a structure brought into existence, ranged into a system and put into working order, ‘Management' means the art of making an organisation work successfully. Both are indespensable for a business entitiy. All the human beings working in the organisation can be divided into two groups ~ managerial and non-managerial or operational. This classification is based on the functions which they perform in the organisation. Thus “ an organisation is @ mechanism with which a management co-ordinates and controls the activities of man to achieve organisational objectives". ORGANISATIONAL FUNCTIONS 4.2.5 % Organisational functions simply mean the functions to be performed in the organisation. These functions vary in number and type from organisation to organisation depending upon the nature of the organisation and the types of classification of various activities, Identification and classification of these functions are based on intensive utilization of labour at operative and managerial level by making use of the principle of specialization of labour. Organisational functions of a business organisation could be nine 18(production, finance, development, distribution purchasing, transport, maintenance, personnel and office), but the widely accepted classification of organisational functions includes four broad areas ~ Finance, Production, Personnel or Human Resources’ Development and Marketing. These organisational functions are called as functional areas of management and have their own organisation and activities. FINANCE 4.2.6 4 Finance is life blood of industry and a prerequisite for the mobilisation of human resources to organise production and marketing activities. Thus the finance manager has now become an integral part of the business enterprise and is involved in all the activities that take place in the enterprise. He helps in maximising long term as well as short term profits and minimise the risks. According to Bonneville and Dewey "Financing consits in the raising, providing, managing of all the money capital or funds of any kind to be used in connection with the business" the activities included aret Accounting (record keeping of financial transactions,statements,like profit and loss statements, balance sheets etc preparation and so on): Management Accounting (decision making on the basis of analysis and interpretation of financial records): Planning for Funds (costing,investment management, 19taxation ete, meaning thereby raising, allocation and control of requsite capital);so on. PRODUCTION 4.2.7 # Foundation stone of any business organisation is *Production’.Production is an art of transformation of inputs, like information( technological Know-how), non-human resources(land,material,and capital) and human resources (labour) into furnished products (goods and services). Production Management may be defined as “a set of general principles for production economies, facility design, job design, schedule design,quality control, inventory control,workstudy and cost and budgetary control". Thus, according to Dr B.S. Goel, the main activities of Production Management can be listed ast (41) “Specification and procurement of input resources, namely, management, material and land, labour equipment and capitals (2) Product design and development to determine the production process for transforming the input factors into output of goods and services; and (3) Supervision and control of transformation process for efficient production of~ goods and services". 20PERSONNEL (HUMAN RESOURCES DEVELOPMENT) 4.2.8 # Men or Human resources are of paramount importance in the success of any organisation. Without human resources no organisation can achieve its objectives, All the activities of any enterprise are initiated and determined by the persons. Men at work behave in a complex manner and this makes the management of mena challenging task. According to Edwin. B.Flippo, “ personnel management is the planning, organising, directing and controlling of the procurement, development compensation, integration maintenance and separation of human resources at the end that individual, organisational and societa objectives are accomplished “. Thus According to C.B. Mamoria, the main activities of personnel management can be listed a 4, Organisational Planning,Development and Task Specialisations 2. Gtaffing and Employment which includes manpower planning, authorization for planning, developing sources of applicants, evaluation of applicants emplayment decisions (selection) ,offers(placements) induction and orientation, transfers, demotions,and separation(retirement, layoff discharge, resignation, disability and death): Training and Development: 21Compensation and Wage & Salary Administration which includes job evaluation,developing suitable wage and salary programme, incentive compensation plan performance appraisal, motivation and so on; Employee Services and Benefits, like safety provisions,employee counselling, medical services recreational and other welfare facilities, fringe benefits in the form of disability benifits, pension, profit-sharing, bonus,payment for holidays ets: Employee Records: Labour or Industrial Relations which includes grievance handling , implementation of labour laws, discipline, collective bargaining, etc.sand Personnel Audit and Personnel Research, that is, evaluation of personnel programmes, identification of needs and areas of change, development of more appropriate programmes, conducting moral surveys record keeping etc.. MARKETING 4.2.9 4 The most recent definition of marketing is given by the American marketing association in 1985. It states "Marketing (management) is the process of planning and executing the conception pricing, promotion and distribution of ideas, goods and services to organisational objective create exchanges that satisfy individual and The modern marketing 22management focusses on the consumer. According to Phillip Kotler there are five competing concepts under which organisations conduct their marketing activities. They ares (1) The production concept holds that the consumers will favour those products that are widely available and low in costs (2) The product concept holds that consumers will favour those products that offer the most quality or performance; (3) The selling concept (or sales concept) holds that consumers if left alone will ordinarily not buy enough of the organisations’ products. The Organisations = must therefore undertake an aggressive selling and promotion efforts. (4) The Marketing Concept holds that the key to achieving organisational goals consists — in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. (5) The Societal Marketing concept holds that the Organisations’ task is to determine the needs,wants and interest of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumers’ and the Society's well being 234.2.10 Philip Kotler has suggested a set of 4Ps forming the marketing mix. They are (1) Products He defined product as “any thing that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. Products include physical products(goods)and services"; (2) Pricet Price is defined as" the money value of a Product or service agreed upon in a market transaction"; (3) Place? The term ‘place*in marketing mix , normally, refers to channel of Distribution which indicate routes or pathways through which goods and services flow, or move from producers to consumers (4) Promotion! Promotion is the process of marketing communication involving information, persuasion and influence.Thus, promotion has been defined as "the co-ordinated self initiated efforts to establish channels of information and persuasion to facilitate or foster the sale of goods or services or the = acceptance of ideas or points of view." PROMOTION-MIX 4.2.14 2 The promotion mix or the Marketing communications mix consists of four elements (1) Sales Promotion: Kotler defines as “Short term incentives to encourage purchase or sale of a product or service ". It includes displays, shows, 243 (a> exhibitions, demonstrations etc. Sales Promotion has three distinctive characteristies, viz, good communication, incentive and an open invitation to transact immediately. Public Relations: According to Kotler ,it “a variety of programs designed to improve ,maintain or protect a company or product image".It includes publicity also, i.e., obtaining favourable presentation in a media without payment. Public Relations has three distinctive charactereistics- viz~high authenticity and credibility, potential to reach prospective customers allergic to advertisements and salesforce of the companys and potential for dramatising the product Personal Selling + American Marketing Association defines it as "Oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales.Personal Selling has three distinctive characteristics viz-interactive and alive relationship ;cultivation of long-run relationship and polite response.Cin recent years direct’ marketing has also been developed as an element of promotion mix, with aim to reach to the consumer without any intermediary Direct, Marketing Association of USA defines it as “an interactive system of marketing which uses one or more advertising media to effect a measurable 25response and/or transaction at any locatior Thus, in Direct Marketing offers are sent directly to prospective customers who are most willing and ready to make purchase of the good or service" The use of Direct Marketing, (in the form of direct mail and mail catalogues)is increased in recent years, though its role in promotion-mix is still insignificant.] The reason to use sales promotion is to provide a reason to buy now ,whereas personal selling is used to close the sale however, In most of the cases, the advertising is used to create awareness and interest. (4) Advertising # The meaning of Advertising as given in ‘The Concise Oxford Dictionary of Current English’ as “an act to make (thing, oneself or absolute) generally or — publicly knowns (especially) describe (goods) publicly with new to increasing sales + notify (person, of thing, that) The word advertising is assumed to have been originated from ‘advertire’ a Latin word ,which means*to turn to’. American Marketing Association defines Advertising as “any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. Phillip Kotler tried to generalise some of the distinctive qualities of Advertising as!~ “Public Presentation! Advertising is a highly 26public mode of communication .Its public nature confers a kind of legitimacy on the product and also suggests a standardized offering ,because many persons receive the same massage , buyers know that their motives for purchasing the product will be publicly understood.; Pervasiveness: Advertising is a pervasive medium that permits the seller to repeat a message many times It ‘also allows the buyer to receive and compare the messages of various competitors.,Large scale advertising by a seller says some thing positive about the sellers’ size ,popularity and sucess? Amplified Expressiveness: Advertising provides opportunities for dramatising the company and its products through the artful use of print,sound and colour. Sometimes, however, the tools’ very success at expressiveness may dilute or distract from the message; Impersonalityt Advertising cannot be as compelling as a company sales representative .The audience does not feel obligated to pay attention or respond. Advertising is able to carry on only a monologue ,not a dialogue ,with the audience." According to Chunnawala and Sethia ,Many people criticize advertising on the following grounds = 27(a) Advertising compels people to buy things which they do not need; (b) Advertising raises the prices of Goods; (c) Many advertising claims are unbelievable (d) Psychological and emotive appeals are cleverly used to mislead the public and children are more susceptible to deceptions (e) Gver emphasis on sex appeals in advertisements produces vulgarity in taste + (f) Advertising tend to create monopolies and competitive advertising transfers business from one corner to another; (g) Expensive advertising particularly, imitated contents and styles of foreign advertisements alone cannot promote the product and thus in a poor country, advertising amounts to waste of national resources; and (h) Advertising engenders unhappiness amongst those who desire the product but do not have the capablity to buy it. In spite of these criticism, advertising has many advantages to advertisers & customers in particular and the society, in general. The basic role of advertising, is to create and maintain the primary and selective demand for a product. Besides ,it has other functions also. Some of them are as under ¢ 28(1) Advertising guide the prospective customers by its informative role 5 (2) Advertising encourages product development by recovering research expenses on new product development and = substantial investment in production facilities: (3) Advertising affects both, the long run and short run propensity to consume by influencing tastes and informing customers of bargains: (4) Advertising provides financial support to media by making payments for the space and time bought in the media 7 (5) Advertising plays a part in expanding the range of merchandise through products differentiation; (6) Advertising helps in lowering prices by encouraging mass consumption which inturn lead to lower production cost per unit because of benefits of large-scale economies; (7) Advertising increases competition among rivals resulting into improvement of product quality: (8) Advertising helps in expanding the economic system and inturn the employment potential ; (9) Advertising for ‘de marketing * helps in meeting out the challenges posed by recession in the econom: (10) Advertising helps in curbing the social evils, like dowry, drug-addictions, population explosions, terrorisms, etc. 29(11) Advertising helps in nation building by arousing the feelings of nationality, brotherhood,secularism, etc. Thus, in a nutshell,advertising have both social and economic implications. 4.2.12 3 Brief Description of terms used in Advertising (a) Advertising Goalt According to Philip Kotler, “Aan advertising goal is a specific communication task and achievement level to be accomplished with a specific audience in a specific period of time". advertising has many purposestiong-term build up of the organisation's coorporate image (institutional advertising ), long-term build up of a particular brand (brand advertising), information dissemination about a sale, service, or event (classified advertising), announcement of a special sale (sale or promofional advertising) and advocacy of @ particular cause (advocacy advertising)" (b) Advertising Budget? is a forward plan of company's future advertising activities, expressed in monetary terms, for a specified period. (c) Advertising Medium: is the means or conveyance by which the advertisement is carried to prospective customers. (4) Comparison Advertising? William, L.Wilkie and Paul. W.Farris has defined comparison advertising. "seeks 30to establish the superiority of one brand through specific comparison with one or more other brands in the product class." (2) According to Borden and Marshall, “Consumers: goods advertising is directed to consumers whereas Industrial advertising is directed to buyers of industrial goods. Dealers advertising is meant for immediate sale of merchandise, promotion of brands or of product lines and for promotion of institution or departments". | Primary demand advertising seeks "* to induce people to buy products of the class in which the advertised article falls, that is, to increase the total demand, for the product class. In contrast, the objective of selective demand advertising is to induce people to buy a particular brand with in a product class". Advertising plan involves generation, Specification, evaluation of alternative courses of action and selection of the best alternative in the three main areas. mamely, objectives and budget,copy and’ media. The advertising plan is a part of the overall marketing plan or programme of the company. The marketing programme or plan includes a statement of marketing objectives and the development of tacties to reach those objectives." (#) According to Aaker and Myers, The creation stage encompasses the creative procesmy the generation ofwritten copy ( copy writing ), artwork of various kinds (illustrating), an a preliminary or comprehensive version of the advertisement (layout). Alex Osborn says, creative process starts with the following~ 4. Fact-finding a. Problem-definition, picking out and pointing up the problem. b. Preparation # gathering and analysing the pertinent data 2. Idea-finding. a. Idea ~production ! thinking up tentative ideas as possible leads. b. Idea ~ development selecting from resultant ideas,adding others, and reprocessing by means of modification, combination,etc. copywriting 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 attandent by-lines and headlines. In broadcast, the copy writer is in effect a ‘scriptwriter’ who develops the scenario or script to be used in a radio or television medium." “Illustrating generation of pictures ,is usually the work of an artist in the case of print and is the job of the commercial director and film crew in the case of television". “Layout. is 2 preliminary print Qo.advertisement ready to be shipped for production. In the case of prospective television commercial the lay out is called a ‘story board*. “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." ‘copy’, "refer to the audio visual or audiovisual entity that contains ‘the advertiser's message and in the focal point for an advertising compaign ." (g) Reinforcement Advertising * According to Philip Kotler, “seeks to assure current purchasers that they have made the right choice ." (h) Product Advertising According to Borden and Marshall"seeks to build = — reputation of manufacturers’ products,usually under a brand classification, and to promote the sale of these products".Manufacturers* product advertising, brand advertising and brand advertisements can usually be classified as direct action advertisements, indirect-action advertisements or combination of direct and indirect advertisements Direct-action advertisement"seeks as its main objective an immediate response to the advertisement in the form of the readers sending an order for the goods advertised or a request for further information.” Whereas indirect action advertisenent: seeks no immediate response from the reader Their objective, rather,is to build the reputations of anthe brands advertised and to enhance the wantability of the branded products offered through building mental associations relating to them . 34