A

PROJECT REPORT
On

ROLE OF ADVERTISEMENTS IN SMALL SCALE

INDUSTRIES
Submitted To

KURUKSHETRA UNIVERSITY
KURUKSHETRA
In the partial fulfillment of the Bachelor of degree of Commerce in
Advertising, Sales Promotion and Sales Management.

(Session 2010-2011)

Under Guidance of:

Miss Shivani Puri

Lecturer in Commerce
D.A.V College for Girls

Under Supervision of: Submitted By:

Mrs. Nishi Grover Hritika

Lecturer in Commerce. Class: B.Com. II
D.A.V College for Girls Roll No:20092026
University Roll No.

D.A.V COLLEGE FOR GIRLS

YAMUNA NAGAR
 DECLARATION

I, Hritika here by declare that project report “ROLE OF ADVERTISEMENTS IN SMALL

SCALE INDUSTRIES”. assigned to me for the requirement of the degree of B.COM with
advertising marketing and sales promotion from Kurukshetra University, is the original
work and done by my personally and the information provided in the study is the
authenticated to the best of my knowledge.

The study has not been submitted to any other institution of University for the
award of any degree. If this statement is wrong I shall be personally liable the
consequences.

Hritika
B.COM IInd
ROLLNO. 20092026
 ACKNOWLEDGEMENT

First and foremost I would like to convey my sincere thanks to all mighty God, and then
MISS SHIVANI PURI (lecturer in commerce) of D.A.V GIRLS COLLEGE
YAMUNANAGAR. She has been source of perpetual inspiration to me. She gently
guided and inspired me towards a bright career through my course. I was very fortunate
to have herself as my project guide. She is willing to give all kind of support and
encourage me with her valuable suggestions.

I also owe my special thanks to the Principal “MS. SUSHMA ARYA” for providing the
project title “ROLE OF ADVERTISEMENTS IN SMALL SCALE INDUSTRIES”.The
special course with the required equipment in our college. I am also thankful to MRS.
NISHI GROVER (lecturer in commerce) for helping in making this project report.

Hritika
B.COM IInd
 PREFACE

The main objective of the project is familiarization with the necessary theoretical inputs
and to gain sufficient practical exposure to establish a distant linkage between the
conceptual knowledge acquired at the institute and practices those concepts.

The project is concerned with the “ROLE OF ADVERTISEMENTS IN SMALL

SCALE INDUSTRIES” .During my tenure of research, I studied the various development
tools and deeply analyzed the functions.
Prior to making reference to working of the project prepared, the analysis and feasibility
and all the other aspect were taken into consideration.
 CONTENTS

Introduction

Introduction to Organization

Approach to study

Objective to study

Research Methodology

Database report Gathered

Data Interpretation and Analysis

SWOT Analysis

Findings and Bibliography

Findings

Limitations

Suggestions

Conclusion

Bibliography

Questionnaire
 INTRODUCTION

It has been wrongly assumed that the advertising function is of recent origin.
Evidences suggest that the Romans practiced advertising; but the earliest indication of
its use in this country dates back to the middle Ages, when the use of the surname
indicated a man’s occupation. The next stage in the evolution of advertising was the use
of signs as a visual expression of the tradesman’s function and a means of locating the
source of goods. This method is still in common use. The seller in primitive times relied
upon his loud voice to attract attention and inform consumers of the availability of his
services. If there were many competitors, he relied upon his own personal magnetism to
attract attention to his merchandise. Often it became necessary for him to resort to
persuasion to pinpoint the advantages of his products. Thus, the seller was doing the
complete promotion job himself.
Development of retail stores, made the traders to be more concerned about
attracting business. Informing customers of the availability of supplies was highly
important. Some types of outside promotion were necessary. Signs on stores and in
prominent places around the city and notices in printed matters were sometimes used.
When customers were finally attracted to the store and satisfied with the service
at least once, they were still subjected to competitive influences; therefore, the
merchant’s signs and advertisements reminded customers of the continuing availability
of his services. Sometimes traders would talk to present and former customers in the
streets, or join social organizations in order to have continuing contacts with present and
potential customers.
As the markets grew larger and the number of customers increased, the
importance of attracting them also grew. Increasing reliance was placed on advertising
methods of informing about the availability of the products. These advertising methods
were more economical in reaching large numbers of consumers. While these advertising
methods were useful for informing and reminding and reminding, they could not do the
whole promotional job. They were used only to reach each consumer personally. The
merchant still used personal persuasion once the customers were attracted to his store.
 The invention of hand press increased the potentialities of advertising. By
Shakespeare’s times, posters had made their appearance, and assumed the function of
fostering demand for existing products. Another important event was the emergence of
the pamphlet as an advertising medium. The early examples of these pamphlets
disclose their sponsorship by companies want to generate goodwill for their activities.
The low cost of posters and handbills encouraged a number of publishers to experiment
with other methods.

DEFINITION OF ADVERTISING

The word advertising originates from a Latin word advertise, which means to turn
to. The dictionary meaning of the term is “to give public notice or to announce publicly”.
Advertising may be defined as the process of buying sponsor-identified media
space or time in order to promote a product or an idea.
The American Marketing Association, Chicago, has defined advertising as “any
form of non-personal presentation or promotion of ideas, goods or services, by an
identified sponsor.”

FEATURES OF ADVERTISING:
1. Advertising provides information:
The basic purpose of advertising is to provide information about products,
goods, services or ideas to perspective buyers. The details of products
such as features, uses, prices, benefits, other instructions to be followed
while using the product are given in the advertisements.

2. Advertising is a paid form of communication:

Advertising may be in any convenient form such as sign, symbol, slogan,
Illustration or message.

3. Advertising is a non-personal presentation:

Advertising is non-personal in character as against salesmanship which is
personal (face to face communication) in character. In Advertising, the
message is given to all and not to one specific individual.
e.g. T.V., radio, etc.

4. Advertising is an art, science and profession:

It is an art as it needs creativity for raising its effectiveness. It is treated as
science as it has its principles, rules, etc. Advertising is now treated as
profession with its professional bodies and code of conduct for members.

5. Creativity-the essence of Advertising:

Advertising is a method of presenting a product in an artistic, attractive and
agreeable manner. This is possible through the element of creativity which
is the essence of Advertising of the present period.

6. Advertising is for persuasion:

 Advertising is not only for giving information but also for appealing people
to buy a specific product. It aims at persuasion of potential customers.

7. Advertising is target oriented:

It is possible to make intensive Advertising by selecting a specific market
or specific segment of consumers for the purpose of Advertising. This
selection of specific market is called target market.

8. Advertising is an important element in marketing mix:

Advertising supports the sales promotion efforts of the manufacturer. It can
make positive contribution in sales promotion provided other elements in
the marketing mix are reasonably favorable.
Brand plays an important role in promoting the product or the company, let the
advertisement be the best if it won’t have a particular it won’t work out in the market.

OBJECTIVES OF ADVERTISING
 Each advertisement is a specific communication that must be effective, not just
for one customer, but for many target buyers. This means that specific objectives should
be set for each particular advertisement campaign. Advertising is a form of promotion
and like a promotion; the objectives of advertising should be specific. This requires that
the target consumers should be specifically identified and that the effect which
advertising is intended to have upon the consumer should be clearly indicated. The
objectives of advertising were traditionally stated in terms of direct sales. Now, it is to
view advertising as having communication objectives that seek to inform persuade and
remind potential customers of the worth of the product. Advertising seeks to condition
the consumer so that he/she may have a favourable reaction to the promotional
message. Advertising objectives serve as guidelines for the planning and
implementation of the entire advertising programme.

The basic objectives of an advertising programme may be listed as below:

(i) To stimulate sales amongst present, former and future consumers. It involves a
decision regarding the media, e.g., TV rather than print ;
(ii) To communicate with consumers. This involves decision regarding copy ;
(iii) To retain the loyalty of present and former consumers. Advertising may be used to
reassure buyers that they have made the best purchase, thus building loyalty to the
brand name or the firm.
(iv) To increase support. Advertising impliedly bolsters the morale of the sales force and
of distributors, wholesalers, and retailers, ; it thus contributes to enthusiasts and
confidence attitude in the organizational. :
(v) To project an image. Advertising is used to promote an overall image of respect and
trust for an organization. This message is aimed not only at consumers, but also at the
government, shareholders, and the general public.

IMPORTANCE OF ADVERTISING
 Generally, advertising is a relatively low-cost method of conveying selling
messages to numerous prospective customers. It can secure leads for salesmen and
middlemen by convincing readers to request more information and by identifying outlets
handling the product. It can force middlemen to stock the product by building consumer
interest. It can help train dealers salesmen in product uses and applications. It can build
dealer and consumer confidence in the company and its products by building familiarity.
Advertising is to stimulate market demand. While sometimes advertising alone may
succeed in achieving buyer acceptance, preference, or even demand for the product, it
is seldom solely relied upon. Advertising is efficiently used with at least one other sales
method, such as personal selling or point-of-purchase display, to directly move
customers to buying action.
Advertising has become increasingly important to business enterprises –both
large and small. Outlay on advertising certainly is the voucher. Non-business enterprises
have also recognized the importance of advertising.. Advertising assumes real economic
importance too. Advertising strategies that increase the number of units sold stimulate
economies in the production process. The production cost per unit of output is lowered.
It in turn leads to lower prices. Lower consumer prices then allow these products to
become available to more people. Similarly, the price of newspapers, professional
sports, radio and TV programmes, and the like might be prohibitive without advertising.
In short, advertising pays for many of the enjoyable entertainment and educational
aspects of contemporary life. Advertising helps to increase mass marketing while
helping the consumer to choose from amongst the variety of products offered for his
selection. In India, advertising as a profession is in its infancy. Because of this fact, there
is a tremendous scope for development so that it may be productively used for the
benefit of producers, traders, consumers, and the country’s economy.

HISTORY OF ADVERTISEMENT
 Archaeologists have found evidence of advertising dating back to the 3000s BC,
among the Babylonians. One of the first known methods of advertising was the outdoor
display, usually an eye-catching sign painted on the wall of a building. Archaeologists
have uncovered many such signs, notably in the ruins of ancient Rome and Pompeii. An
outdoor advertisement excavated in Rome offers property for rent, and one found
painted on a wall in Pompeii calls the attention of travelers to a tavern situated in
another town.

In medieval times word-of-mouth praise of products gave rise to a simple but

effective form of advertising, the use of so-called town criers. The criers were citizens
who read public notices aloud and were also employed by merchants to shout the
praises of their wares. Later they became familiar figures on the streets of colonial
American settlements. The town criers were forerunners of the modern announcer who
delivers radio and television commercials.

Although graphic forms of advertising appeared early in history, printed

advertising made little headway until the invention of the movable-type printing press by
German printer Johannes Gutenberg about 1450. This invention made the mass
distribution of posters and circulars possible. The first advertisement in English
appeared in 1472 in the form of a handbill announcing a prayer book for sale. Two
hundred years later, the first newspaper ad was published offering a reward for the
return of 12 stolen horses. In the American colonies, the Boston News-Letter, the first
regularly published newspaper in America, began carrying ads in 1704, and about 25
years later Benjamin Franklin made ads more readable by using large headlines.

In the United States, the advertising profession began in Philadelphia,

Pennsylvania, in 1841 when Volney B. Palmer set up shop as an advertising agent, the
forerunner of the advertising agency. Agents contracted with newspapers for large
amounts of advertising space at discount rates and then resold the space to advertisers
at a higher rate. The ads themselves were created by the advertisers. In 1869 Francis
Ayer bought out Palmer and founded N. W. Ayer & Son, an agency that still exists today.
Ayer transformed the standard agent practice by billing advertisers exactly what he paid
to publishers plus an agreed upon commission. Soon Ayer was not only selling space
but was also conducting market research and writing the advertising copy.

Advertising agencies initially focused on print. But the introduction of radio

created a new opportunity and by the end of the 1920s, advertising had established
itself in radio to such an extent that advertisers were producing many of their own
programs. The early 1930s ushered in dozens of radio dramatic series that were known
as soap operas because they were sponsored by soap companies.

Television had been introduced in 1940, but because of the high cost of TV sets
and the lack of programming, it was not immediately embraced. As the American
economy soared in the 1950s, so did the sale of TV sets and the advertising that paid
for the popular new shows. Soon TV far surpassed radio as an advertising medium.

The tone of the advertising was also changing. No longer did advertising simply
present the product benefit. Instead it began to create a product image. Bill Bernbach,
founder of Doyle Dane Bernbach in New York City; Leo Burnett, founder of the Leo
Burnett agency in Chicago, Illinois; and David Ogilvy, founder of Ogilvy & Mather in New
York City, all came to prominence in the late 1950s and 1960s and led what has been
called the 'creative revolution.' Bernbach's agency captured the spirit of the new age.
Bernbach believed that advertising had to be creative and artistic or it would bore
people. He also believed that good advertising began with respect for the public's
intelligence. The ads his agency created were understated, sophisticated, and witty.

The creative foundation established by Bernbach and others has been critical to
the success of contemporary advertising. The introduction of the TV remote control and
access to hundreds of cable channels mean that today advertising must interest and
entertain consumers or else they will simply use the remote to change the channel. New
digital devices even threaten to make it possible to edit out commercials. The
development of interactive television, combining the functions of a computer with access
to high-speed transmission over cable lines or optical fibers, will likely enable consumers
to select from a vast video library. Consumers will be able to determine not only when
they watch something, but also, to a greater extent than ever before, what they will
watch. Some industry observers believe that as consumers gain greater control over
their viewing activities, they will find it easier to avoid advertising.

Advertising Effectiveness
The objectives of all business are to makes profits and a merchandising
concern can do that by increasing its sales at remunerative prices. This is
possible, if the product is widely polished to be audience the final consumers,
channel members and industrial users and through convincing arguments it is
persuaded to buy it. Publicity makes a thing or an idea known to people. It is a
general term indicating efforts at mass appeal. As personal stimulation of
demand for a product service or business unit by planting commercially
significant news about it in a published medium or obtaining favourable
presentation of it upon video television or stage that is not paid for by the
sponsor.

On the other hand, advertising denotes a specific attempt to popularize

a specific product or service at a certain cost. It is a method of publicity. It
always intentional openly sponsored by the sponsor and involves certain cost
and hence is paid for. It is a common form of non- personal communication
about an organisation and or its products idea service etc. that is transmitted
to a target audiences through a mass medium. In common parlance the term
publicity and advertising are used synonymously.

Importance of Advertising
 Generally, advertising is a relatively low-cost method of conveying selling
messages to numerous prospective customers. It can secure leads for salesmen and
middlemen by convincing readers to request more information and by identifying outlets
handling the product. It can force middlemen to stock the product by building consumer
interest. It can help train dealers salesmen in product uses and applications. It can build
dealer and consumer confidence in the company and its products by building familiarity.
Advertising is to stimulate market demand. While sometimes advertising alone may
succeed in achieving buyer acceptance, preference, or even demand for the product, it
is seldom solely relied upon. Advertising is efficiently used with at least one other sales
method, such as personal selling or point-of-purchase display, to directly move
customers to buying action.
Advertising has become increasingly important to business enterprises –both
large and small. Outlay on advertising certainly is the voucher. Non-business enterprises
have also recognized the importance of advertising.

The production cost per unit of output is lowered. It in turn leads to lower prices.
Lower consumer prices then allow these products to become available to more people.
Similarly, the price of newspapers, professional sports, radio and TV programmes, and
the like might be prohibitive without advertising. In short, advertising pays for many of
the enjoyable entertainment and educational aspects of contemporary life. Advertising
has become an important factor in the campaigns to achieve such societal-oriented
objectives such as the discontinuance of smoking, family planning, physical fitness, and
the elimination of drug abuse. Though in India, advertising was accepted as a potent
and recognized means of promotion only 25 years ago, its growing productive capacity
and output necessitates the finding of consumers and advertising plays an important
role in this process. Advertising helps to increase mass marketing while helping the
consumer to choose from amongst the variety of products offered for his selection. In
India, advertising as a profession is in its infancy. Because of this fact, there is a
tremendous scope for development so that it may be productively used for the benefit of
producers, traders, consumers, and the country’s economy.
CLASSIFICATION AND TYPES OF ADVERTISING

1. Product – Related Advertising

It is concerned with conveying information about and selling a product or service.
Product advertising is of three types, viz.,
A. Pioneering Advertising
B. Competitive Advertising
C. Retentive Advertising

A. Pioneering Advertising:
This type of advertising is used in the introductory stages in the life cycle of a
product. It is concerned with developing a “primary” demand. It conveys information
about, and selling a product category rather than a specific brand. For example, the
initial advertisement for black – and – white television and color television. Such
advertisements appeal to the consumer’s emotions and rational motives.
B. Competitive Advertising:
It is useful when the product has reached the market-growth and especially the
market-maturity stage. It stimulates “selective” demand. It seeks to sell a specific brand
rather than a general product category. It is of two types:
A. Direct Type: It seeks to stimulate immediate buying action.
B. Indirect Type: It attempts to pinpoint the virtues of the product in the expectation that
the consumer’s action will be affected by it when he is ready to buy.
Example: Airline advertising.
Air India attempts to bid for the consumer’s patronage either immediately - direct
action-in which case, it provides prices, time tables and phone numbers on which the
customer may call for reservations; or eventually – indirect action – when it suggests
that you mention Air India’s name when talking to your travel agent.
C. Retentive Advertising:
This may be useful when the product has achieved a favourable status in the
market – that is, maturity or declining stage. Generally in such times, the advertiser
wants to keep his product’s name before the public. A much softer selling approach is
used, or only the name may be mentioned in “reminder” type advertising.

2. Public Service Advertising

This is directed at the social welfare of a community or a nation. The
effectiveness of product service advertisements may be measured in terms of the
goodwill they generate in favour of the sponsoring organization. Advertisements on not
mixing drinking and driving are a good example of public service advertising. In this type
of advertising, the objective is to put across a message intended to change attitudes or
behaviour and benefit the public at large.

3. Functional Classification
Advertising may be classified according to the functions which it is intended to
fulfil.
(i) Advertising may be used to stimulate either the primary demand or the selective
demand.
(ii) It may promote either the brand or the firm selling that brand.
(iii) It may try to cause indirect action or direct action.

Measuring Advertising Effectiveness

 All advertising efforts are directed mainly towards the achievement of
business, marketing and advertising objectives i.e., to increase the sales turnover
and thus to market the maximum profit. The advertiser spends lakhs of rupees in to this
advertising activity. In the background of all these efforts, is an attempt to attract the
customer towards the product through advertising. As soon as the advertising campaign
is over, a need is generally arisen to measure the effectiveness of the campaign.
Whether, it has achieved the desired results i.e. desired sales profitability or results in
terms the change in customer’ behaviour in favour of the company’s product which will
naturally, affect the future sale of the product.
In order to measure the effectiveness of advertising copy, two types of tests pre
tests and post tests- can be undertaken. Pre tests are generally conducted in the
beginning of the creation process or at the end of creation process or production stage.
There are several pre and post tests techniques to measure the effectiveness of the
advertising copy.
The effectiveness of advertising in a particular media may also be measured
in any of the following ways –
(a) By giving different addresses to different media,
(b) Different newspapers may be selected for advertisements of different departments,
(c) Coupon blank etc. May be provided with the advertisement or
(d) Enquiry from consumers should mention the name of the source of information.
The technique is known as keying the advertising. Thus in measuring the
effectiveness of advertising we include measuring of the effectiveness of advertising
campaign, advertising copy and the effectiveness of individual media. This chapter deals
these three problems.

Importance of measuring the Effectiveness of Advertising

(1) It acts as a Safety measure
Testing effectiveness of advertising helps in finding out ineffective advertisement
and advertising campaigns. It facilitates timely adjustments in advertising to make
advertising consumer oriented and result oriented. Thus waste of money in faulty
advertising can be avoided.
(2) Provides feedback for remedial measures
Testing effectiveness of advertising provides useful information to the advertisers
to take remedial steps against ineffective advertisements.
(3) Avoids possible failure
Advertisers are not sure of results of advertising from a particular advertising
campaign. Evaluating advertising effectives helps in estimating the results in order to
avoid complete loss.
(4) To justify the Investment in Advertising
The expenditure on advertisement is considered to be an investment. The
investment in advertising is a marketing investment and its objectives should be spelt
out clearly indicating the results expected from the campaign. The rate and size of return
should be determined in advance. If the expected rate of return is achieved in terms of
additional profits, the advertisement can be considered as effective one.
(5) To know the communication Effect
The effectiveness of the advertisement can be measured in terms of their
communication effects on the target consumers or audience. The main purpose of
advertising is communicated the general public, and existing and prospective
consumers, various information about the product and the company. It is therefore
desirable to seek post measurements of advertising in order to determine whether
advertisement have been seen or heard or in other words whether they have
communicated the theme, message or appeal of the advertising.
(6) Compare two markets
Under this procedure, advertising is published in test markets and results are
contrasted with other. Markets – so called control markets – which have had the regular
advertising program. The measurements made to determine results may be
measurements of change in sales, change in consumer attitudes, changes in dealer
display and so on depending upon the objectives sought by the advertiser.

Factors Affecting Advertising

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, such an
approach can result not only in ineffective advertising; by it can lessen the social value
of advertising by reducing the amount for useful information that it provides to society.
Thus, and advertiser who attempts to provide specific, relevant information must 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, especially when
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 directed at 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.

SMALL SCALE INDUSTRY

INTRODUCTION

The definition for small-scale industrial undertakings has changed over time.
Initially they were classified into two categories- those using power with less than 50
employees and those not using power with the employee strength being more than 50
but less than 100. However the capital resources invested on plant and machinery
buildings have been the primary criteria to differentiate the small-scale industries from
the large and medium scale industries. An industrial unit can be categorized as a small-
scale unit if it fulfils the capital investment limit fixed by the Government of India for the
small-scale sector.

As per the latest definition which is effective since December 21, 1999, for any
industrial unit to be regarded as Small Scale Industrial unit the following condition is to
be satisfied: -

Investment in fixed assets like plants and equipments either held on ownership
terms on lease or on hire purchase should not be more than Rs 10 million.

However the unit in no way can be owned or controlled or ancillary of any other
industrial unit.

The traditional small-scale industries clearly differ from their modern counterparts
in many respects. The traditional units are highly labor consuming with their age-old
machineries and conventional techniques of production resulting in poor productivity rate
whereas the modern small-scale units are much more productive with less manpower
and more sophisticated equipments.

Khadi and handloom, sericulture, handicrafts, village industries, coir, Bell metal
are some of the traditional small-scale industries in India. The modern small industries
offer a wide range of products starting from simple items like hosiery products,
garments, leather products, fishing hook etc to more sophisticated items like television
sets, electronics control system, various engineering products especially as ancillaries to
large industrial undertakings.

Nowadays Indian small-scale industries (SSIs) are mostly modern small-scale

industries. Modernization has widened the list of products offered by this industry. The
items manufactured in modern Small-scale service & Business enterprises in India now
include rubber products, plastic products, chemical products, glass and ceramics,
mechanical engineering items, hardware, electrical items, transport equipment,
electronic components and equipments, automobile parts, bicycle parts, instruments,
sports goods, stationery items and clocks and watches.
 HISTORY OF SMALL SCALE INDUSTRY

Ministry of Agro and Land Rural Industries and Ministry of SSI have been merged into a
single namely, Ministry of Micro Small & Medium Enterprises.

The President under Notification 9th May 2007 has amended the Government of India
(Allocation of business) Rules 1961, Pursuant to this amended Ministry of Agro and rural
Industries ( Krishi Evam Gramin Udyog Mantralay) and ministry of SSI (Laghu Udoyag
Mantralay) have been merged into a single Ministry, namely, Ministry of Micro Small &
Medium Enterprises ( Suksham Laghu Aur Medium Udyam Mantralay )
CONCEPT & DEFINATION OF SSI

In most parts of the world the nomenclature used is small and Medium Enterprises
(Small Scale Industries) and the citeria for defininig include the number of employees
and /or the turnover. In India the Small Scale Industry eoveks different meanings for
different agencies and the financial institution. For example for the purpose of excise
and sales Tax Exemption, the turnover alone is the determinig criterion. However in
broder terms, currently, an SSI is defined in terms of investment ceiling on the original
value of instlled plant and machinery.

7.65 The small scale sector has played a very important role in the socio-
economic development of the country during the past 50 years. It has significantly
contributed to the overall growth in terms of the Gross Domestic Product (GDP),
employment generation and exports. The performance of the small scale sector,
therefore, has a direct impact on the growth of the overall economy. The performance of
the small scale sector in terms of parameters like number of units (both registered and
unregistered), production, employment and exports is given in Table 7.15. 7.66 During
the one year period i.e., 2000-01

Over 1999-2000, the number of SSI units is estimated to have increased by

1,58,000, production at current prices by Rs. 72,609 crore and at constant prices by Rs.
33,714 crore. Employment increased by 7,14,000 persons, while exports were higher by
Rs. 5,778 crores. 7.67 According to projections made by the Ministry of Small Scale
Industries during 2000-01, the SSI sector recorded growth in production of 8.09 per cent
over the previous year. The small scale industries sector has recorded higher growth
rate than the industrial sector as a whole (4.9 per cent during 2000-01). It contributed
about 40 per cent towards the industrial production as a whole and 35 per cent of direct
exports from the country. 7.68 The Government has been taking various measures from
time to time in order to enhance
 The productivity, efficiency and competitiveness of the SSI sector. In pursuance
of the comprehensive policy package announced last year, the major developments that
have taken place in the SSI sector during 2001-02

The definition for small-scale industrial undertakings has changed over time.Initially they
were classified into two categories- those using power with less than 50 employees and
those not using power with the employee strength being more than 50 but less than 100.
However the capital resources invested on plant and machinery buildings have been the
primary criteria to differentiate the small-scale industries from the large and medium scale
industries. An industrial unit can be categorized as a small- scale unit if it fulfils the capital
investment limit fixed by the Government of India for the small-scale sector.

According to 2001 census, Small scale industrial units are those engaged in the
manufacture, processing or preservation of goods and whose investment in plant and
machinery (original cost) does not exceed Rs.1 crore. These would, inter alia, include
units engaged in mining or quarrying, servicing and repairing of machinery

Small Scale Industries are located throughout the country, though predominantly in the
rural areas. The small scale industries in the rural areas are skill based, wherein the skill
for manufacturing is passed on from one generation to another. Some of the goods
manufactured in these units are textile handicrafts, woodcarving, stone carving, metal
ware etc. Small scale industrial factories are also present in urban areas and usually
they account for the maximum volume of production for that particular good.

For e.g. Ludhiana in the state of Punjab is the main center in the country for producing
woolen hosiery, sewing machine parts, bicycles and its parts, similarly Tiruppur in Tamil
Nadu accounts for small scale firms that are involved in spinning, weaving and dying of
cotton garments.
The importance of cottage industries in the Indian economy was first understood by our
first prime minister Jawaharlal Nehru. The development of such small scale industries
infused much needed production efficiency into the rural Indian economy. The Cottage
Industries also helped the agricultural workers to have a better quality of life. This is due
to the additional profits generated by the farming community.

Khadi and handloom, sericulture, handicrafts, village industries, coir, Bell metal
are some of the traditional small-scale industries in India. The modern small industries
offer a wide range of products starting from simple items like hosiery products,
garments,leather products, fishing hook etc to more sophisticated items like television
sets,electronics control system, various engineering products especially as ancillaries to
large industrial undertakings.

Nowadays Indian small-scale industries (SSIs) are mostly modern small-scale

industries. Modernization has widened the list of products offered by this industry. The
items manufactured in modern Small-scale service & Business enterprises in India now
include rubber products, plastic products, chemical products, glass and ceramics,
mechanical engineering items, hardware, electrical items, transport equipment,
electronic components and equipments, automobile parts, bicycle parts, instruments,
sports goods, stationery items and clocks and watches.

As on 10 October 2008, following items are reserved for exclusive manufacture by

small enterprise sector:
• Food and Allied Industries: Pickles & Chutneys, Bread, Mustard Oil
(except solvent extracted), Ground nut oil (except solvent extracted).

• Wood and Wood Products: Wooden furniture and fixtures

• Paper Products: Exercise books and registers

• Injection Moulding Thermo Plastic Product: PVC Pipes, including

conduits upto 110 mm dia, Fittings for PVC pipes
 • Other Chemicals & Chemical Products: Wax candles, Laundry soap,
Safety matches, Fire works, Agarbatties

• Glass & Ceramics: Glass Bangles

• Mechanical Engg. Excluding Transport Equipment: Steel almirah,

Rolling shutters, Steel chairs , Steel tables, Steel furniture, Padlocks,
Stainless steel utensils, Domestic utensils – Aluminium

TYPES OF SMALL SCALE INDUSTRIES

Measuring Tapes (Steel)

IntroduCTION

Steel measuring tapes are used for measuring length or distances. There are
number of measuring devices available for different purposes for instance steel
measuring tape, tailors measuring tape, measuring scale wooden and steel rulers and
soon steel measuring tapes are used for measuring length or distances. These are hand
items being encased in rolled form. As this is a small compact item, it can be easily
carried from place to place in a pocket or small bags. For sturdiness and easy handling
in outdoor activities such as on construction sites or sports fields or factories executives
prefer to have this item in their pockets. These measuring tapes are available in various
lengths from 1 metre to 30 meters.

Since the dawn of civilization, metals and materials have played a keyrole in the
life of man without effective utilisation of metals and materials the spectacular
engineering achievements of the present age would not have been possible.
Tremendous developments have of late, taken place in the production of ferrous and
non ferrous metals and their innumerable alloys and this ‘materials explosion has now
reached astonishing levels compared with the 19th century, when only 20 odd materials
were in industrial use and many which were unheard of or were mere scientific
curiosities then, have now made important contributions to the advancement of
technology.

Measuring tapes are frequently used in land measurement, wall and floor
measurements. In construction of buildings, it has its unique importance keeping in point
of view as easy handling due to it is in form of rolls compacted in a circular case. It also
has wide scope in engineering applications.

Carbon Potentiometers

Introduction

Carbon Potentiometer is an electronic component classified as variable resistor.

Carbon Potentiometer is used as voltage divider to provide variable output voltage.
Carbon Potentiometers uses carbon as resistive element. There are different types of
Potentiometers like Wire Wound and ceramic type using different materials as resistive
element. Carbon Potentiometer can be classified into logarithmic type and linear type
depending on the mode of operations. Carbon Potentiometers are manufactured in
many shapes and sizes depending on resistance value, power rating and type of
mounting.
 Panel mounted type Carbon Potentiometer are widely used for volume and tone
control in consumer and entertainment electronics. Printed Circuit Board mount type is
used as function controller, measuring and testing equipment, medical electronics,
industrial electronics etc. Carbon Potentiometers are available with and without
switches. There are many varieties of spindles used for carbon potentiometer depending
on the materials and sizes.

Carbon Potentiometer range includes double potentiometer at the same shaft,

high voltage potentiometer, multi turn potentiometer, miniature potentiometer etc.

Auto Pistons

Introduction

Gravity casting in Aluminium alloy is popularly used for casting of Piston. These
engineering piston are used in automobile industries. The technique has advantages
when a component is required in large quantities. However in automotive applications,
properties and durability are of primary importance. Therefore, it is essential that the
best design should be used and optimum casting techniques with minimum cost should
be adopted. Gravity Die Casting products are used in domestic as well as international
automobile industries.

Piston is a solid or hollow disc like plunger fitting closely in a bore of a cylinder
into which it reciprocates from Top Dead Centre (TDC) to Bottom Dead Centre (BDC)
and in the process imparts motion to the vehicle.

Piston ring is a metallic ring of C.I., wrought iron, steel or gun metal etc. Cast iron
piston rings are preferred for IC engines. Piston rings are used as the peripheral part of
the piston. Rings offer a steam-tight or gas-tight joint between cylinder wall and piston.
This arrangement saves leakage of burnt/half burnt fuel mixture and increases
piston’s efficiency to impart motion.
 Depending on piston size, engine capacity etc, the size of piston rings use in
automobile engines is wide and varied. Every auto-engine uses these essentially in
varying numbers and as compression ring, oil-control ring or spare ring.

The use of piston rings reduces the piston weight, improves engine performance,
restricts road-pollution and saves the other parts of the engine from damaging.

Wafer Biscuits

Introduction

The Indian bakery industry is dominated by the small scale sector with an
estimated 50,000 small and medium-size producers, besides the 15 units in the
organised sector. Apart from the nature of the industry which gravitates to the markets
and caters to the local tastes, the industry is widely dispersed also due to the
reservation policies of the government.

The two major bakery products, biscuits and bread, account for 82% of all bakery
production. The unorganised sector accounts for about two-thirds of the total biscuit
production estimated at 1.3 mn tonnes. It also accounts for 80% of the total bread
production, which is estimated at 1.5 mn tonnes and around 90% of the other bakery
products estimated at 0.6 mn tonnes. The last includes pasteries, cakes, buns, rusks
and others.

Biscuit is estimated to enjoy around 37% share by volume and 75% by value of
the bakery industry. The organised sector caters to the medium and premium segments,
which are relatively less price-sensitive. The organised sector is unable to compete at
the lower price range due to the excise advantage enjoyed by the informal sector.

The organised segment in biscuits has witnessed a steady growth of about 6%,
conforming broadly to the growth rate of GDP. The production crossed the one-million
tonne mark in 1995-96 which has now grown by estimated 30%.
 Bakery industry in India is the largest of the food industries with an annual
turnover of about Rs. 3200 crores. India is the second largest producer of biscuits after
USA.

The quantities of bread and biscuits produced are more or less the same.
However, value of biscuits is more than bread. The industry largely continues to be in
the unorganized sector contributing over 70% of the total production. Bakery products
earlier considered as sick man’s diet, have now become an essential food items of
the vast majority of population. Though bakery industry in India has been in existence
since long, real fillip came only in the later part of 20th century. The contributing factors
were urbanization, resulting in increased demand for ready to eat products at
reasonable costs.

Cement Concrete Tiles and Paving Blocks

Introduction

Cement Concrete tiles are products made out of Cement Concrete. These are
available in many designs, colours and surface effects and their usage has also
increased tremendously.

Cement concrete tiles and paving blocks are precast solid products made out of
cement concrete. The product is made in various sizes and shapes viz. rectangular,
square and round blocks of different dimensions with designs for interlocking of adjacent
tiles blocks. The raw materials required for manufacture of the product are portland
cement and aggregates such as sand & stones ships which are available in local
market.

Market Potential

Cement concrete tiles and paving blocks find various applications as in

pavements, gardens, footpaths, passenger waiting sheds, bus-stops, industry and other
public places. The product is commonly used in urban areas. Hence it is advisable to set
up the unit in urban and semi-urban areas as well as near the market.
 A lot of face-lift is being given to roads, footpaths along the roadside. Concrete
paving blocks are ideal materials on the footpaths for easy laying, better look and finish.
Whereas the tiles find extensive use outside the large building and houses, lots of these
materials are also used in flooring in the open areas of public offices and commercial
buildings and residential apartments.

In India, Europe & China, the per capita consumption of ceramic tiles in India is 1.01
sqm.p.a. and that that of China is 1.22 sq.m. p.a., other European Countries are 5-6
sq.m. per person p.a.

Tomato Products

Introduction

Tomato, though botanically a fruit is generally considered a vegetable because of

the way in which it is consumed. Tomatoes are widely grown in all parts of the world.
However, the yield per hectare is the highest (245 tonnes/hect.) in Netherlands. The
world average yield of tomato is 23 tonnes per hectare. Indian average yield of tomato is
9.6 tonnes per hectare. Tomato products such as puree, juice, ketchup are commonly
used commodities in households, hotels and restaurants. By use of these items, the
taste of different food products is enhanced. Tomato puree is used as a substitute of
fresh tomato in cooking. Ketchup is a sweeter and diluted version of puree (Pulp).
Tomato sauce tastes sweet and sour. Both sauce and ketchup are consumed with food
and snacks. Tomato is a valuable raw material used for processed products such as
juice, puree, and paste, ketchup/sauce, and canned whole. The recent scientific
advances have revolutionised tomato processing industries.

V. Belts and Fan Belts

Introduction

As the name implies, these power transmission belts have the V-belt cross
section. They have various advantages over flat belts e.g. compactners, quite operation,
non slipping grip between belts and sleeve, absorption of shocks grip between belts and
sleeve, absorption of shocks, smooth starting cleanliness, long service life, low cost and
light bearing loads. The internal structure of standard V-belts varies. Cords are the
“back bone” of V-belts. They are located in the upper wide portion. These cords
in the best belts are impregnated and embedded in a rubber compound which reduces
friction between individual strands or fibres and retards heat build up. This is known as
cushion rubber. This is embedded in a mass of solid rubber; it is known as core. Core is
the belt that improves flexibility and increase shock absorption.

In starting, monetary stresses greater than those encountered in running must be

withstand, and this core rubber acts as an absorber for the sudden pull, thus protecting
the cords and cover. When the belt travels around a sleeve. The narrower a portion is
compressed, and the solid rubber must withstand such distortion without accumulating
excessive heat. Special cool running compounds have been developed. The whole thing
is enclosed in rubber fabric jacket or cover which acts as an envelope to resist wear and
protects the inner structure.

V-belts are specially useful for silent drive between short centre distances and
are used for fractional horsepower drives for domestic appliances and for automatic fan
belts. They come in five standard sizes A, B, C, D, E. The top width of A is 12.7 mm (1/2
in) and that of E is mm (1) and the thickness varies between the different sizes. When
power transmitted is heavy multiple belts are used in pullies having a number of grooves
as required. More recently, premium industrial belts known as 3V, 5V and 8V belts or
wedge type belts have been introduced. In these the ratio of depth to the top width is
greater than in the standard sections, giving a more compact drive. These constructions
are made possible by the use of high tenacity materials such as polyester cord.
The role of Advertising in Small Scale Industry

The role of advertising can be studied by referring to its advantages in different areas.
For e.g., advertising acts as a medium of communication with the consumers. It
educates guides and persuades them in the right direction. It is also important to note
that advertising widens market and facilitates large scale production of goods and
services. In addition, advertising creates employment opportunities in the field of
advertising and in other fields also (production, distribution of goods and services). It
facilitates the process of economic growth and globalization of business. Finally,
advertising raises the standard of living of people. It encourages market competition
which again leads to product innovation, improvement in the quality and more benefits
and satisfaction to consumers. All such benefits indicate the importance and the positive
role of advertising. Advertising offers advantages or special benefits to different social
groups such as consumers, traders, producer, retailers and advertising media. Such
benefits also suggest the importance and constructive role of advertising in modern
business. All these things proves the importance and a great need of advertising in
globalised market.
Indian advertising industry has been growing at an unprecedented speed, and
thankfully big fishes of the Indian Industry like Unilever, Proctor and Gamble, Cadbury,
Vodafone, Nokia and Asian Paints to name a few are making most of it. On the other
hand, though Indian Small Scale Industries comprise a large part of the Indian business
environment they are pretty wary when it comes to investing in advertising. Indian Small
Scale Industries, more often the not, resort to small-tactical efforts and focus on brand
building at the micro level.

Not with standing the mindset of Indian Small Scale Industries, it is imperative to
highlight the fact that every big fish today was a small fish not so long go. For the
starters, the first registered brand was ‘Sunlight’ by William Hasketh Lever in 1880s. The
man with a vision introduced branded soap when homemade products were used both
for washing themselves and the laundry. He initially created a silent commercial for the
brand in 1907 then went on to launch a series of advertisements to create demand for
his product. The small fish of the yore has morphed into a blue whale called ‘Unilever’ –
a renowned brand with massive advertising spends.

Closer home, we have we have few examples like Zodiac. In 1961, Zodiac try to build a
premium brand of ties via advertising and today the company has ventured into ready-
wear and has made its existence felt in highly competitive and crowded Indian market
place. As aforementioned Indian brands like Nirma, Moov, Fevicol have put faith in
advertising and reaped in huge benefits, while few others have managed to keep the
competition at bay. However, such cases can be counted on the finger tips. On a
broader level, Indian Small Scale Industries avoid spending big time on advertising.
Probably the fault lies with both the companies and the advertising industry per se.

The Indian entrepreneur is very different from his western counterpart. Indian
entrepreneur is happy focusing on the local markets and don’t believe in building a
national brand. They don’t dream big and lay cocooned in their own safe little world.

The orthodox mindset prevents them from aiming high and consequently they look upon
advertising as an expense rather than income. When the dreams are small, the question
of advertising big time never arises. Moreover, Indian businessmen believe more in
relationship-building and pushing the product into the market rather than dealing directly
with the consumers and drive sales. Further, the Small Scale Industries don’t believe
much in the power of branding. And if at all, they get involved, they don’t have a long
term picture in mind rather opt for short term advertisements.

In more than one ways, one can simply pass the buck on the advertising industry for the
sorry state of affairs of the Small Scale Industries. The industry never ever took pains to
make the Small Scale Industries understand the value of advertising. Perhaps the boom
in the last two decades, which aided easy flow of money from big companies to the ad
industry made the industry pretty indifferent to the needs of Small Scale Industries. And
to rub salt on the wounds, the big agency models never suited the needs of the Small
Scale Industries as the commission and the retainer fee compensation models are
petrifying. Consequently, Small Scale Industries end up doing local advertisements with
the involvement of local players and so there is no conscious brand-building exercise
involved.

Moving forward, one cannot deny the fact that Small Scale Industries are the next big
thing. The evolution of the Internet medium may turn out to be the light at the end of the
tunnel for the SME industry. Branding and advertising on the internet can be done at
viable rates and that too at the targeted audience. Nonetheless, for this to happen the
Small Scale Industries have to expand their vision and have the will to invest

In 1989, a small time glue manufacturer thought of advertising his product on television,
though its use was only in smaller proportions. Today the brand has created a niche for
itself and it’s well-known by the name of ‘Fevicol’.

Advertising Ideas for Small Businesses

Word of mouth is excellent small business advertising – but it’s slow, and may be
practically non-existent for new businesses. If you want to grow your customer base
more quickly, you have to advertise.
This collection of small business advertising ideas presents both the tried and true and
advertising ideas you may not have tried yet – advertising ideas for your small business
to effectively reach your target market and attract new customers.

Tried and True Small Business Advertising Ideas

1. The Yellow Pages.

There’s still a lot of people who use the yellow pages to find the businesses they’re
looking for – and they won’t find you if your small business isn’t listed there. Get the
biggest yellow page ad you can afford; the more visibility the better.

2. Newspaper advertising.
Besides box ads and advertising inserts, local newspapers also often offer special
advertising features showcasing particular businesses – all powerful small business
advertising opportunities. Don’t overlook special interest newspapers as an advertising
idea if they exist in your area. They may be delivered to exactly the audience you want
to reach.
3. Direct mail.
Direct mail can be very effective small business advertising – and is much more
favorably received than other direct marketing media, such as email or telemarketing.
And even if you don’t have a mailing list, you can still geographically target your mail.

4. Magazine advertising.
This advertising idea can be a very effective way of reaching a target market. The trick is
to choose the magazines or e-zines that best match the market you’re targeting.

5. Business cards.
Business cards are a valuable promotion tool. No business person could live without the
convenience of having a business card to hand to prospective clients or customers.
Handing out a business card is so much easier than writing out all your contact
information for a person you've just met.
But most business cards only do half the marketing job. Think about what you do with
the business cards people give you. If you're like me, they go into a pile in a drawer. If
you're more organized, maybe they go into a card file. In either case, the business cards
just sit there, out of view, and probably out of mind. What a waste!
Why not turn your business card into a marketing vehicle by making your business card
visible? Instead of the traditional business card, get your contact information printed on
something that people might leave in plain sight; something that will remind them of you
and your services or products whenever they look at it.
You can get information printed on just about anything now. What about using
something like fridge magnets instead of the standard business card? What do people
do with fridge magnets? Put them on their refrigerator in their kitchen - a place the family
frequents, where they'll see your contact information (and marketing message)
countless times a day!
Message pads, coasters, mouse pads - your choice of business card marketing vehicle
is limited only by your imagination. My cat's veterinarian hands out palm-sized calendars
with magnetic backing as business cards, something that most people are guaranteed to
hang up in plain view.
Remember, most business cards just sit in a drawer, doing nothing until or unless
someone bothers to dig them out. And if there's nothing to remind them of you, why
would they bother to dig out your business card? Making it easy for people to remember
(and call) you by using a more unique 'handout' item as a business card is a smart
investment.

6. Joining professional/business organizations.

Every professional or business organization offers exclusive advertising opportunities for
their members, ranging from free promotion on the organization’s website through
special section newspaper advertising. And being a member can be good small
business advertising in itself.

7. Vehicle advertising.
The reason you see so many vehicles emblazoned with advertising is that it works;
vehicle advertising is very visible small business advertising. If you’re not ready for
custom graphics or a magnet quad sign that sit atop your vehicle, go for a magnetic sign
that you can take off when you want.
Advertising Ideas You May Not Have Tried Yet

8. Sending promos with invoices.

We all know that the main purpose of invoices is to collect payment, but have you given
any thought to using invoices as business promotion? Including promos with your
invoices can be a great way to bring back existing customers and even attract new
customers.
An invoice promotion can be as simple as printing "Bring this invoice with you on your
next visit and receive 10% off" on your current invoice form. Return customers and
clients are the meat and potatoes of small business; this gives them an additional
reason to come back. Encourage them to come back promptly by including a date or
specified time frame in your promo, such as "... until June 15th, 2004".
Another approach is to add a coupon promo to your invoice. You can either print this at
the bottom of the invoice as a "tear-off" promo or have the coupons printed separately
and include them with the invoices.
Besides offering customers a certain percentage off their next purchase, you might use
a coupon promo to advertise particular specials, either products or services that are
currently on sale, or a "buy two, get one free" promotion. The advantage of using
promos with invoices that can be "torn-off" or otherwise easily separated from the
invoice is that your current customer or client might pass them along to someone else,
giving you a chance to win a new customer.
If you want to focus your promo on bringing in new customers, you might try something
such as a "bring-a-friend" discount. You could even offer the original customer who
brought in the promo coupon or sheet a certain discount on products or services if he or
she brought a friend into the store, and a higher discount if he or she brought two friends
in.
The exact promotion you use with your invoice is only limited by your imagination.
Anyone with a computer and printer can easily design a coupon or promo sheet that can
be attached to an invoice. As you're sending out an invoice anyhow, why waste such a
potentially valuable promotion opportunity?

9. Cable TV advertising.
So you can’t afford to advertise your business during the Super Bowl. That doesn’t
mean you have to miss out on the household reach of TV. Cable TV companies offer
advertising ideas within the budget of small businesses, from advertising on the TV
Guide Listings or Real Estate channels through running infomercials.

10. Radio advertising.

Another advertising idea you may not have thought of is radio advertising. Running ads
on a local radio station can be both effective and relatively inexpensive.

11. Bench/bus stop advertising.

Looking to reach a mass audience? Then transit advertising may be the best advertising
idea for you. Contact your local transit company for information on bench, bus and
shelter advertising possibilities.

12. Local website advertising.

More people are spending more time online than ever before. Cover all your small
business advertising bases by ensuring that your business is listed on websites
providing business information for your local area. Many municipalities, for instance,
offer business listings on their sites.

13. Trade show participation.

One of the main reasons to participate in trade shows is to be seen and get known.
While participating in big trade shows can be quite expensive, there are a lot of smaller
opportunities that may work well for your business, from trade shows put on by local
business associations through trade shows focused on particular industries.
 EFFECTS OF ADVERTISING IN SMALL SCALE INDUSTRIES

Positive Effects

1) Advertising helps in increasing sales by informing more and more people about

the products or services being offer by any specific company.

2) Advertisement helps in creating better brand image.

3) Advertising is a mode of communication between the seller and buyer.

4) Advertisment is a medium of informing target market about latest changes in

existing product line and about company's latest brand line

Negative Effects

1. Hidden Costs

You should know that advertising costs lots of money and that money comes from you -

the consumer. When you buy a product, you pay for the product itself, which means its

packaging, costs of the development, the machinery, the facility where the product has

been made in, etc.

But what you probably don’t know is that by buying some product, you also pay for that

its advertising as well. While it’s logical to pay objective costs, such as package or

production, it’s not understandable why pay company to tell us about the product we

already bought.
2. Lying to Customers

Advertisers know that they cannot outright make false claims, because any claim they

make must be supported by some kind of statistic, according to the law. However,

Advertisers can and often do bend and curve the truth for their own benefit and in order

to promote and advertise own product.

Company can exaggerate certain features of their products or they can make vague and

ambiguous claims that sound good. Of course any negative features of the product

won’t be mentioned. Advertisements can be deceitful, especially for younger population

who spends days in front of TV screen and watch aggressive and false advertising in

between popular shows.

3. Conditioning and False Trendsetting

But, in order to hypnotize mass population, companies need to create trends that

customers will follow. This is the true purpose of advertising today. Advertisers have

found out that if they make a product, and make customers believe that their product will

make them happy, sales will skyrocket. To fulfill that, advertisers must bombard

customers with images and false claims for hours every day patiently, until people start

to believe in certain things.

4. Censorship

Advertisers want their ads shown on certain stations or websites that have certain

content, because they want to attract a certain audience. Most mass media mediums

have become nothing more than vessels for advertising, which means that advertising

and companies that use it have become a powerful force as far as censorship. But, how
can advertising censor a television network’s programming? If you have a popular prime

time show that’s a bit ‘sketchy’ toward certain things or views, that can be an obstacle or

popular brand product that want prime time advertising in that show. Producers will ever

say: “Heck with the commercial!” Instead they will ask show writers to rewrite sketchy

parts that can ruin products’ reputation.

That basically means that our precious moments of fun or enlightenment are often

replaced with long and boring commercial blocks, which basically means subtle

censorship.

5. Degradation of Art

The last negative effect of advertising presented in this article I want to discuss is the

complete degradation of some forms of art. No more creativity on TV. Everything you

see or hear on it now is meant to sell you something.

Actors present you new products you should by. Models look more beautiful and

younger with new makeup that you should - guess what – buy. You watch 90 minutes

movie, but it’s extended to two hours because of commercials. Football game is 30

seconds of action followed by endless minutes of advertising agony.

Another problem are totally unimaginative commercials, made for zombies. They’re

mostly not funny, not creative and they lack even smallest trace of art.

With so much money in their pockets, great corporations make fools of themselves

because of these ads.

But they still occupy our precious time for fun and enlightenment.

Advantages of Small Scale Industry(SSI)

1. This industry is especially specialized in the production of consumer commodities.

2. Small scale industries can be characterized with the special feature of adopting the

labor intensive approach for commodity production. As these industries lack capital, so

they utilize the labor power for the production of goods. The main advantage of such a

process lies in the absorption of the surplus amount of labor in the economy that was not

being absorbed by the large and capital intensive industries. This, in turn, helps the

system in scaling down the extent of unemployment as well as poverty.

3. It has been empirically proved all over the world that Small Scale Industries are

adept in distributing national income in more efficient and equitable manner among the

various participants in the process of good production than their medium or larger

counterparts.

4. Small Scale Industries help the economy in promoting balanced development of

industries across all the regions of the economy.

5. This industry helps the various sections of the society to hone their skills required for

entrepreneurship.

6. Small Scale Industries act as an essential medium for the efficient utilization of the

skills as well as resources available locally.

Advertising Effects of Small Business Enterprises

One of the major marketing problems facing small business enterprises in India is lack
of understanding and the application of marketing concept. In a study conducted by
Ogwo (1991), this was conspicuously exposed. Most Indian small business owners
equate ‘marketing’ to ‘selling’ and this is reflected in their various dysfunctional business
behaviour against customer satisfaction and good business orientation. They lack the
knowledge and skills of basic marketing ingredients – marketing research, market
segmentation and marketing planning and control. The outcome of this is poor quality
products, unawareness of competition, poor promotion, poor distribution, and poor
pricing methods. They are not marketing oriented and market-focused if a marketer is
defined as someone who understands and applies marketing in order to create, build,
and maintain beneficial relationships with target markets. Baker (1979) and Doyle (1985)
identify lack of marketing orientation as the major factor for business failure
Most Indian small manufacturer, in a higher degree, depends on imported equipment
and raw materials for their operations. With the over-devaluation of naira, vis-à-vis other
foreign currencies, they are not finding it easier to secure these items abroad. They
therefore resort to poor locally produced alternatives. The result is usually poor quality
products. This may be one of the factors responsible for Indian consumers’ unquenching
appetite for imported goods, even though many of these foreign goods are equally of
poor quality especially those coming from Asian and Far East countries. Porter (1980)
point out that high quality raw material are important to producing high quality product.
With the increasing demand for imported goods in India, dubious local and foreign
importers are dumping fake products which go further to frustrate small scale
manufacturers and seriously affect our hard earned foreign exchange.

Besides, small-scale producers lack good quality control in their operations. In this
respect, they rely mainly on replacing faulty products instead of developing good quality
control system (Onwuchuruba 2001)
Only very few Indian small manufacturers are aware of the nature of competition facing
them. They estimate their success only through sales revenue without considering also
their market share. Even, some do not know their market segments on which to focus
their operations.
Piercy (182) has emphasized the importance of good stockholding, transport, and
distribution for enhancing commercial success. Many of our small manufacturers do not
have properly defined criteria for appointing their product distributors. They rely mainly
on trust created through relationships between the owners of the companies and the
distributors. These relationships are in form of fathers and mothers, brother and sisters,
friends and in-laws etc. This relationship often ends up in running the business down.

High costs of vehicles and poor roads are also affecting the operations of small
manufacturers in their efforts to move finished products down to consumers in both rural
and urban areas. They have a complex channel of distribution with many layers which
go to push the prices of their products higher. Besides, small manufacturers pay little
attention to the promotion of their products. Advertising and other methods of promotion
are not adequately used. There is no other way of creating awareness of their
innovations and stimulating consumers to action than promotion. Even, many of them do
not participate in trade fairs and exhibitions. This also inhibits their growth and ability to
compete with larger companies.

In a developing country like ours with low income and high level of poverty, a company
that wants to succeed should offer its product at the price the consumers can bear. But
often, small manufacturers set prices of their products arbitrarily without regard to this
peculiar consumer characteristic in our environment. Since they do not have clearly
defined criteria upon which to base their prices, they always seek to maximize profits at
short runs without having a long-term view of their businesses. Farah (1980) cautions
the United States car firms on setting high prices if they wish to succeed in markets
around less developed countries due to low income and high level of poverty in the
areas.

APPROACH TO STUDY

OBJECTIVES
 1. To study the Role of Advertisement in Small Scale Industries.
2. To know about the various types of advertising.
3. To study the various types of Small Scale Industries.

RESEARCH METHODOLOGY

Research methodology has many dimension, it includes not only the research method
but also consists the logic behind the methods used in the contxt of the study and
explains why only a particular method of technique had been used so that search lend
themselves to proper evaluation. At the outset may be noted that there are several ways
of studying and tacking a problem. The formidable problem that follows the task of
defining the research problem is the preparation of the design of research project
popularly known as research design.
More explicitly the designing decision happened to be in respect of following:
• What is study about?
• Why is study being made?
• Where will the study be carried out?
• What type of data is required?
• What will be the sample design?
• What period of time will the study include?
• How will the data be analyzed?
• In what style will the report will prepared?

The purpose of this section is to describe the research procedure. This gives the
researcher sufficient support to give his argument for opting certain alternatives and to
justify his position. Research methodology is a way to systematically solve the research
problem. It include all those steps that are generally adopted to solve the research
problem.
IT GENERALLY INVOLVES
DATA COLLECTION:
The task of data collection is being after a research problem has been defined and
research designed/plan chalked out. Data collection is to gather the data from the
population. The data can be collected of two types:
• Primary Data
• Secondary data

PRIMARY DATA are those which are collected afresh and for the first time, and thus
happened to be original in character. Methods of primary collection are as follows:
Questionnaire
SECONDARY DATA is being search sites like magazines, newspapers, journals,
websites and the data has been collected through other approaches.

Data Source : Primary data

: Secondary data
Research Instrument : Questionnaire

Sample size : 100

Sample location : Yamuna Nagar

: Haryana

Sample element : Students

: Business class
: House hold
: Service class

SAMPLING UNIT

Sampling Unit is the total number of samples differed in different locality.

Sl. Classes No. of Classes

No.
1. Students 25
 2. Business class 25
3. Household 25
4. Service class 25
Total 100

Data have been collected through the survey method while surveys have been
conducted in one city:

1. Yamuna nagar

2. Haryana

The data collected was both from the primary and secondary source. The primary data
was collected through questionnaires and was collected personally.

The secondary data was collected through books, magazines, company website and
other websites. All the area had segmented according the population of this area. I have
considered 100 as sample size.

DATA BASED REPORTS GATHERED

DATA ANALYSIS AND INTERPRETATION

Q.1: Do your SSI advertise?

Yes 50%
No 50%

Yes
No
50% 50%

Interpretation: 50% respondents said that the SSI use to advertise and 50%
respondents said that their SSI does not advertise.

Q.2: Are you satisfied with the advertisement of your products?

Satisfied 70%
Not Satisfied 30%

30%

Satisfied
Not Satisfied

70%
70% respondents are satisfied with the advertisement of the product, whereas 30% are
not satisfied.

Q.3: Which media you suggest to company for advertisement?

Electronic Media 30%

Print Media 20%
Both 50%

60%
50%
50%

40%
30%
30%
20%
20%

10%

0%
Electronic Media Print Media Both

30% respondents suggest for electronic media, 20% suggest print media and 50%
suggest both media for advertisement to reach the maximum crowd.

Q.4: How you rate the quality of products of the company?

Good 70%
Average 30%
Poor 0%
 80%
70%
70%

60%

50%

40%
30%
30%

20%

10%
0%
0%
Good Average Poor

70% respondents rated the quality of their product as good, 30% rated as average and
no respondents said against the product they are selling.

Q.5 What percentage of profit should be utilized towards advertisement?

0%-5% 20%
5%-10% 50%
10%-20% 20%
More than 20% 10%

60%
50%
50%

40%

30%
20% 20%
20%
10%
10%

0%
0%-5% 5%-10% 10%-20% More than 20%
The majority of respondents i.e. 50% said that 5-10% of net profits should be utilised
towards advertisement, 20% said 0-5%, 20% said 10-20% and only 10% said more than
20%.

Q.6: Do you agree that sponsoring an event or program is more effective than regular
advertisement?

Strongly Agree 40%

Agree 10%
Disagree 20%
Strongly Disagree 30%
45%
40%
40%
35%
30%
30%
25%
20%
20%
15%
10%
10%
5%
0%
Strongly Agree Agree Disagree Strongly Disagree

40% respondents strongly agree that sponnsering an event or program is more effective
than regular advertisement, 10% agree 20% disagree and 30% strongly disagree.
 SWOT ANALYSIS

Strengths

 The strengths component of the analysis should identify the advertising industry’s

internal strengths, such as where the industry excels compared to other industries, and

how it is maximizing its physical resources and personnel. For example, this section

may list low staff turnover, high staff morale, low overhead, high profit margins, multiple

revenue streams, product and service diversification and a sustainable business model.

Weaknesses

 The weaknesses component should identify the advertising industry’s internal

weaknesses, such as where improvements need to be made and where physical and

human resources are not being maximized. For example, this section may list low client

satisfaction, high production costs, low return on investment (ROI) or an untrained or

aging employee base. These examples may not apply to all advertising agencies, but for

a SWOT analysis of the industry, these examples would be generalizations of the

industry.

Opportunities

 The opportunities component should list how the industry could grow or expand. The

items listed in this section tend to be environmental factors that can be leveraged by the

previously listed strengths. For example, opportunities may include rising marketing

budgets, large client bases, a growing economy, a larger number of media outlets, lower

advertising rates or new advertising mediums. It’s important to note that these examples
are listed as opportunities, but some could also be listed as threats, depending on the

circumstances of each individual agency.

Threats

The threats listed on a SWOT analysis should list the external elements of the

advertising industry where the industry could potentially be harmed. The features listed

here should be areas of the industry where outside forces could possibly harm current

growth or even harm the status quo. For example, threats listed could include a

shrinking economy, less demand for marketing services, higher health care costs or a

change in tax legislation.

 Findings and Bibliography
Findings

1. Advertising done in local channels by local small scale industries have

influence on the customers.
2. There is lack of proper distribution of channel.
3. Less advertisement being done by Small Scale Industries.
4. People are still unaware of products of Small Scale Industries.
 LIMITATIONS

 Sample size restricted to 100 only which was very less according total
population.

 The responses given by respondents were not always accurate because

the respondents gave the response according to their understanding.

 Survey is a time consuming process but the time to collect the data for
research was very less.

 Sometimes the respondents are not willing to fill the questionnaire and
hence the resultant may not be correct.

 Marketing researchers studies the behavior that is rational. Very often,

they do not express their feeling correctly what they think. In such cases
their habitual, practice, preferences cannot be assessed correctly.
 Suggestion
SUGGESTIONS

 Advertisement should be made with keeping the determinants of effectiveness in

mind.

 Advertisement should be according to the product and its suitability with different
age groups.

 To make advertisement more effective all the determinants of effectiveness

should be taken care of.

 Investment in advertisement should be made with great care of media of

advertisement and type of advertisement.

 Advertisers should develop new and more effective ways of advertisement.

Conclusion

On the basis of the survey I may conclude that:

1. The SSI is a rapidly growing Industry t in Indian.
2. Advertisement does play role in the expansion of the business as to attract the
new customer.
3. Some SSI doesn’t advertise because it use to give the amount to its
Employees rather than spending it on advertisement.
 Bibliography

www.google.com
www.mbaguys.com
www.wikipedia.com
Questionnaire

Q.1: Do your company advertise?

Yes No

Q.2: Are you satisfied with the advertisement of your products?

Satisfied Not Satisfied

Q.3: Do the advertisement helps in the SSI?

Yes No

Q.4: Which media you suggest to company for advertisement?

Electronic Media Print Media

Both

Q.6: How you rate the quality of products of the company?

Good Average
Poor

Q.7: What percentage of profit should be utilized towards advertisement?

0%-5% 5%-10%
10%-20% More than 20%
Q.8: Do you agree that sponsoring an event or program is more effective than regular
advertisement?

Strongly Agree Agree

Disagree Strongly Disagree