ASSIGNMENT OF ADVERTISING

MANAGEMENT
Submitted by: Nishant Ranjan
Course: B.COM(H)
Semester: 2(A)
Enrolment No. :-A50004619100
Submitted To: MOHAN LAL GUPTA
Batch : 2019-2022

Q Explain the advantages of advertising to business, consumer and

society?
Answer :-

To business
1. Vast coverageIt helps in covering vast audience in less time than other way covering people.

2. Introducing of a new product It helps in introducing of a new product which helps easy to
communicate message with attractive commercials.

3. Building goodwillIt represent the brand image with iconic introduction and due to awareness of
their product as well as the introducing the product quality superior, it will leads to increase in brand
image and goodwill.

4. Competitive edge IT helps in getting competitive advantage through giving the product quality
message with impressive expression so that people will take it as the product superior than product
of other companies.

To consumers
1. Knowledge about products It helps in making aware consumer about the product selling in the
market as well as the use of the product so that consumer can take decision of buying a product.
2. Esteem benefits It helps in fulfilling the needs of social and esteem of a consumer by providing
them good vibes from using the product as it feel they are using superior and popular products
raising their standard.

3. Creation of needsIt helps in creating the needs that why they need the product and how it will
make their life easier which ultimately helps in creation of needs and satisfying them in better
manner.

TO SOCIETY
1. Creation of jobs Advertising helps the society by providing jobs to the society in both in advertising
activities as well as in production and selling activities.

2. Raising the standard of society It helps in raising the standard of society by making them aware of
new product and informing them their life and their need are both satisfies in good manner.

3. Addressing social issues It helps in addressing social and personal problems which are facing by
the society such as sanitations, food and shelter etc.

Q Give the factors that affects advertising budget and state

the preparation of advertising budget ?
Answer factors affecting advertising budget:
1. Frequency of the Advertisement-

This means the number of times advertise has been shown with the description of the product or
service, in the granted time slots. So here, if any company needs more advertising frequency for its
product, then the company will have to increase its advertising budget.

2.Competition and Clutter

The companies may have many competitors for its product. And also there are plenty of
advertisements shown which is called clutter. The company has to then increase their advertising
budget.

3. Market Share

To get a good market share in comparison to their competitors, the company should have a better
product in terms of quality, uniqueness, demand and catchy advertisements with resultant response
of the customers. All this is possible if the advertisement budget is high.

4.Product Life Cycle Stage

If the company is a newcomer or if the product is on its introduction stage, then the company has to
keep the budget high to make place in the market with the existing players and to have frequent
advertisements. As the time goes on and product becomes older, the advertising budget can come
down as then the product doesn’t need frequent advertising.
Methods of preparing advertising budget:
 Percentage Of Sales: In this method, the budget is decided on the basis of the sales of the product
from previous year records or from the predicted future sales. This is a pure prediction based
method and best applicable to the companies which have fixed annual sales. But if in case there is a
requirement for more promotional activities then this method has a disadvantage because there will
be decrease in advertisements as the budget is fixed.

 Affordability: this method is generally used by the small companies. Only the companies which
have funds and can afford advertising opt for this method. The companies can go for advertising at
any time in whole year whenever they have money to spend. The amount spent also varies from
time to time as per the advertisements.

 OBJECTIVES AND TASK METHOD

This is the most appropriate ad budget method for any company. It is a scientific method to set
advertising budget. The method considers company’s own environment and requirement. Objectives
and task method guides the manager to develop his promotional budget by (1) defining specific
objectives, (2) determining the task that must be performed to achieve them, and (3) estimating the
costs of performing the task. The sum of these costs is the proposed amount for advertising budget.

The method is based on the relationship between the objectives and the task to achieve these
objectives. The costs of various advertising activities to be performed to achieve marketing
objectives constitute advertising budget

 Competitive Parity Method:

Competition is one of the powerful factors affecting marketing performance. This method considers
the competitors’ advertising activities and costs for setting advertising budget. The advertising
budget is fixed on the basis of advertising strategy adopted by the competitors.

Thus, competitive factor is given more importance in deciding advertising budget. For example, if the
close competitors spend 3% of net sales, the company will spend, more or less, the same per cent
for advertising. Here it is assumed that “competitors or leaders are always right.” If not followed
carefully, this method may result into misleading.

It is obvious that a company differs significantly from the competitors in terms of product
characteristics, objectives, sales, financial conditions, management philosophy, other promotional
means and expenses, image and reputation, price, etc.

Therefore, it is not advisable to follow the competitors blindly. Marketing/advertising manager

should take competitors’ advertising strategy as the base, but should not follow as it is. The
advertising budget must be adjusted to the company’s internal and external situation.
Q Give the functions of Advertising Agency. What are the
factors that affects selection of advertising agency ?
A Functions of Advertising Agency
1. Advertising Plan

Advertising agency either prepares or helps in preparing advertising plans and programmes for its
clients. Preparing an advertising plan needs concerted efforts and investigative information. In
performing this function, the agency should have full information about the products. It may pertain
to the product’s positive aspects, past record, its position in the competitive market, and
competitors’ negative aspects, strengths and weaknesses.

The advertising agency should assess the present market conditions and the firm’s distribution
methods.

A thorough knowledge on markets (consumers) is also very important. Information on what people
buy, why they buy it, where they buy, how they buy, how frequently they buy etc., are very
important and useful. An advertising agency may be required to conduct a research to obtain such
information. Matching the advertising team with product positioning strategy is another important
task.

Since an advertising agency knows the character of advertising medium, it can suggest a suitable
media mix to its client. Knowledge of target market, the media habits and exposure of the target
market are required for this purpose.

2. Creation and Execution

An advertising plan, prepared by the advertising agency will be sent to the advertiser for approval.
Once approved, its execution is normally assigned to the agency. The agency enters into contracts
with the suitable media and the stage is set for creating an effective advertisement to suit the
advertising media. Copy will be written, layouts are made, illustrations are drawn or photographed;
commercials are produced, advertising messages are prepared. Billing for service space is done.

3. Co-ordination

Coordination is another important function of an advertising agency. It has to ensure a proper

coordination between the clients, sales force and the distribution network to ensure long-run
success of the advertising programme. The goal of the advertising programme must be to assist the
efforts of sales persons, distributors and retailers to maximize sales for the client. Many agencies
also render special services in such areas as market research, publicity, preparation of product
literature, etc.
4. Research

Research may enable them to make stronger presentation to their clients. It may help the copy and
art personnel, to create better advertisements for their clients.

5. Public Relations

The fundamental objective of this department is to build and maintain goodwill with the cross
sections of public. The tools used in communicating with the public are corporate advertising and
publicity. The main job of this department is to build stronger relations with clients and the various
sections of the public — customers, employees, middlemen and shareholders.

Factors Affecting selection of advertising agency:

1. Background

This is a basic rule that is to be followed almost every time you make a decision to work with
someone new. A background check is necessary to analyze the personnel, financial and managerial
positing of the agency. This also helps in understating the vision and objective of the agency you’re
opting for.

While doing a background search, you also get to know whether the agency is a full-service or a part-
time one. Your preferred type would matter. In the instance you want only a part-time agency to
fulfill your advertising requirements; a background check would be beneficial.

2. Budget

Both, yours and the agency’s financial positions should be assessed. You cannot hire an agency that
does not fit into your budget allocations. It’s not necessary to go for the most expensive business as
that would turn your cash flow negative! Go for the one most suited with your organizations
financial budget.

3. Credibility

As mentioned previously, the clientele of the business is a factor that indicates their authenticity.
The authenticity, integrity and image of the agency should be taken into account. Their credibility
can mainly be analyzed by looking at their past records. Details of clients can be accessed through
their history and the company’s information.

4. Expertise & Experience

The experience of an agency would show how much it has excelled in its business. Some agencies
focus on a specific aspect of advertising or on one particular business sector. Agencies advertising
content relative to your business are familiar with how to market your brand.

However, that’s not the only requirement. The agency’s experience in the industry matters while
making a selection. Their experience enables them to understand what the client, you, need. This
helps in conveying your message and not having to explain everything from scratch.
5. Management Skills

Is the agency able to manage all its tasks and maintain their clientele? If so, you’re on the path of
choosing the right advertising agency. Agencies manage their own financial necessities and their
customers. These tasks require special skills, which, if the business has shown that they’re stable.
Agencies which have a problem solving approach are more efficient as opposed to those who aren’t.
Their responsiveness should also be kept in mind. They should be able to respond to your queries in
a timely manner.

Q What are the guidelines of advertising agency and the

client to preserve good relationships between each other?
A Suggestion for advertising agency for maintaining good relationship with
client:
1. The advertising agency should do a smart and hard work to bring success to the client's ad
campaign.

2. It should make a good advertising plan and must implement it efficiently and effectively. However,
first it must get the approval from the client.

3. It is the duty of the account executive of the agency to keep his customer happy and satisfied.

4. It should not charge client unreasonably high rates.

5. It should not make ads for client's competitor.

6. It should get all the information from the market that will help to create better ads.

7. Discuss the ad fees with the client in advance to avoid disputes.

8. Disclose to the client the names of the team members (employees) that are working on his ad
campaign.

Suggestion for clients to maintain good relationship with advertising agency:

1. Treat the ad agency with courtesy at all times and never hurt its ego.

2. Provide all possible information about the product to be advertised and the organisation. A well-
informed ad agency will make better ads.

3. Don't unnecessarily bargain for the fees charged by the ad agency as this may affect the quality of
work.

4. Motivate the agency to do a good impactful work. Its charges such as media bills, fees and other
costs must be paid well in time. The client should not wait for the ad agency to remind him about
the payment dues.
5. Don't change the ad agency without a proper reason. If not satisfied, always first communicate
your expectations and then wait for necessary changes to reflect.

6. The client should approve the proposals submitted by the ad agency. He must avoid making petty
arguments and only highlight those crucial relevant matters that needs attention.

7. Give sufficient time to the agency to work on and develop an ad campaign. The client should not
pressurize it to work quickly. He should avoid giving deadlines.

8. Reduce disputes to a minimum.

Q What are the factors that affect media selection?

Answer
 The required coverage

 No. of exposures in a budget

 The relative cost of the media advertising

 Nature or types of target customers

 Advertising budget of the company

 Media environment

Question Write short note on

DEMERIT OF ADVERTISING
(1) Adds to Costs:

An organisation has to spend large amount on advertising. It increases the cost of the products. To
meet this expenditure, price of the product is raised. No manufacturer pays for the advertising
expenses out of his pocket. Advertising, therefore, leads to unnecessary rise in prices. In this
reference it is said that advertising costs are passed on to the consumers in the form of high prices.

(2) Undermines Social Values:

Advertisement is a sort of day-dreaming for the people. These days it is taking the people away from
reality and into the realm of artificiality. Through its medium people get information about new
products.

Only very few products are of any use for them. The brilliance of new products really gets on their
nerves. They want to buy them but have no resources at their command. Consequently, they start
feeling upset with their present status. Taking it as a social evil, it can be said that advertisement
undermines social values.

(3) Confuses the Buyers:

Many a time distorted version of reality is shown in the advertising. Believing in advertising,
consumers buy the product. On its use, they feel cheated.

They come to realise later that the information given in the advertisement was something else
whereas the actual product was quite different from it. Thus, people lose confidence in advertising
because of wrong presentation. In this reference it is said that advertising confuses rather than
helps.

(4) Encourages Sale of Inferior Products:

Every manufacturer projects his product as superior one in the advertisement. Therefore, the buyer
is unable to decide as to which product is really good.

Consequently, it is difficult to get good quality product even after paying a handsome price for it. If a
seller gets good price for some inferior product, it becomes a habit with him. It affects other sellers
also. Therefore, it is said that advertisement encourages the sale of inferior products.

(5) Some Advertisement is in Bad Taste:

Many times, foul language and objectionable pictures are used in advertising in order to attract a
particular class. They may be insulting to a particular class. It causes decay of social values.

Such kinds of advertising are generally opposed by the people as it hurts their feelings. In this
reference it is said that some advertisements are in bad tastes.

Dead mark approach

A dead drop or dead letter box is a method of espionage tradecraft used to pass items or
information between two individuals e.g.a case officer and an agent using a secret location, thus not
requiring them to meet directly and thereby maintaining operational security. The method stands in
contrast to the live drop so-called because two persons meet to exchange information.

Advertising that promotes social interest

Social media advertising helps you get more bang for your marketing buck while reducing the
amount of time you personally have to spend on social media. While this is standard marketing
practice for larger companies, mostsmall-business owners don’t really know how to use social media
foradvertising.That’swhere this guide comes in.In this guide, you’ll find the steps, solutions and goals
to help you maximize your social media profits with advertising — even with a small-business
budget.
Nature of Advertising:
• Advertising is a tool of marketing that disseminates information about a product which is aimed at
a large number of people at the same time using purchased space or time in various mass mediums.

• Advertising messages are delivered through variety of media; television, radio, newspaper,
magazine, billboards, direct-mail campaigns, Internet, clothing lines with messages printed on them,
telemarketing programs, and even messages heard while someone is on hold on the telephone.

• Advertising intends to sell and at the same time create an aspiration towards certain product,
which ultimately leads to a vital and persuasive distinction, which makes the product a brand.

• It is a tremendous challenge for advertisers to design a message which must give an advantage in a
highly cluttered world where customers are becoming increasingly proficient at simply tuning ads
out.

Q Write a note on recent developments in advertising in

India?
A

• Digital Media is eroding the market dominance of television and print media.

• Increased emphasis on developing advertising strategies and digital campaigns.

• Accelerated entry of foreign business and foreign advertising agencies selling foreign products.

• Focus on high quality content.