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ON CORPORATE ADVERTISING
A Report on Contemporary Management Issue Submitted in partial fulfillment of the requirement for the Award of the degree of
Preface
Advertising is an economic activity and it generates employment. Thousands of men and women are directly or indirectly, employed in professional advertising. Advertising is an economic proposition. People who invest their money in advertising anticipate positive results. Hence, advertising must be result-oriented. Every newspaper or magazine survives on the advertisements that it receives. Advertisements are definite source of revenue to the publishers. Because of the advertisements inserted in newspapers and magazines, they are sold at lower price, which can be afforded by the public. Advertising is of paramount importance because it creates better-informed public by making available innumerable publications at an affordable price. Considering the response that advertisements generate, it can be stated that "advertising does not cost too much". Under the stuy of Cooperate Advertising we will determine its value as perspective to Institution as well as Consumer perception
Acknowledgement
I express my sincere thanks to my project guide, Mr. /Dr./Ms./Mrs. _______________________________________, Designation _________________, Department ______________., for guiding me right form the inception till the successful completion of the report. I sincerely acknowledge him/her/them for extending their valuable guidance, support for literature, critical reviews of the contemporary management issue and above all the moral support he/she/they had provided to me.
(Signature of Student)
Executive Summary
The American Marketing Association defines advertising as any paid form of non personal presentation and promotion of Ideas, goods or services by an identified sponsor. Today world is globalise and every company facing a high competition in the market. At the time of recession every company not expands our incomes on individual advertising. They create a corporate advertising to support our product and create awareness of new technology related to product.Advertising is the blood of marketing Because advertsing is decide the future life and growth of the company and product. Under the study of contemporary issue we would come to know the imporance of Corporate advertising between various competitors and how it creates a brand value between various customers. This study will help us to know that how company survive with the help of corporate advertising.Reliance is the biggest example in this scenario. Advertising is all about communication. In international markets the process of communicating to a target audience is more complex because communication takes place across multiple contexts, which differ in terms of language, literacy, and other cultural factors.
Introduction
Imagine a day in the life of an average urban Indian male living in an apartment by himself. He wakes up early in the morning to the sound of a hi tech alarm (which he has recently bought, thanks to the ad of an alarm clock he seen on TV). He jumps out of bed and switches on the radio (to hear some good music on FM punctuated with some news headline). The TV is then switched on (to the channel on Aerobics while he woks out with those slim women who promise a sexy physique in just a couple of months). With a brush in his mouth (of course with Close Up toothpaste for greater confidence and so that beautiful girls may say Talk to me), he scans the news paper for a quick update while he prepares some breakfast (the fast and highly nutritious Kellogs which once again he purchased because of the attractive ad). After a warm bath (with Dettol soap for greater skin protection and Head and Shoulders Shampoo so that he is never embarrassed because of dandruff), and a cool shave (with the very cool Gilette Shaving foam as shaving cream is out and shaving foam is in, and the Mac3 - for the closest shave), he bathes his cheeks with an after shave (Old Spice for that macho feeling). He dashes off to work (whizzing past posters, billboards, hoardings all bombarding him with different messages, schemes, offers etc.). His bus and train journey are never boring as he always carries the latest India Today to keep him abreast of the latest happenings. He is on the field working when he feels thirsty (but he cannot make up his mind whether to have a Thums up as he is grown up, or to have a Pepsi because he wants to live young forever; any way he decides to play safe and have a Bisleri). His mobile suddenly buzzes. Its a programmed call, reminding of his date. He realises he is late. At the shopping center close by he buys his date a card (an Archies Im sorry Card of course, because no one can say it better than Archies). Obviously his date reacts as she is expected to by giving him a hug (just like the ad). After the great date they return home. After some TV snacking, he sets the mood with some soft music, spruces himself (any guesses with what? yes with the sexiest, irresistible, AXE deo spray). And the lights go out. (Hey wait a second, I forgot to mention the extra soft. Kurlon mattress he had recently purchased thanks to the special Diwali offer). That was Media and Advertisings influence for you. 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 publicity. Advertising as a term is used by many to cover almost any topic in the promotional area of marketing. Advertising is a marketing vehicle that is designed for the masses. The American Marketing Association defines advertising as any paid form of non personal presentation and promotion of Ideas, goods or services by an identified sponsor.
Importance of Advertising
Back in 1950s, it was said that doing business without advertising is like winking at a girl in the dark; you know you what you are doing, but nobody else does. The message was: 'Come on, turn on the light, it pays to advertise'. Today, in this complex world amidst heavy rush or everything, having a densely crowded scenario of multiple ads even winking in broad daylight goes unnoticed. Since everyone is advertising, the idea is to do it with innovation. Advertising is of immense utility both to large and small business. There can be no doubt that advertising efforts would result in creation of additional sales. All forms of promotion of sale of goods is in one way or the other, supported by extensive advertising campaign. It is not possible to imagine survival of any business, which is in the business of "make and sell" in the absence of advertising efforts. Advertising has extended its coverage to include non-business enterprises also e.g.. Public Water Works advertises the need to preserve precious water and to cultivate the habit of drinking clean water free from any form of pollution. Countless illustrations can be provided wherein non-business enterprises have recognised the importance of advertising and their use it as a tool to promote ideas and services. Advertising is an economic activity and it generates employment. Thousands of men and women are directly or indirectly, employed in professional advertising. Advertising is an economic proposition. People who invest their money in advertising anticipate positive results. Hence, advertising must be result-oriented. Every newspaper or magazine survives on the advertisements that it receives. Advertisements are definite source of revenue to the publishers. Because of the advertisements inserted in newspapers and magazines, they are sold at lower price, which can be afforded by the public. Advertising is of paramount importance because it creates better-informed public by making available innumerable publications at an affordable price. Considering the response that advertisements generate, it can be stated that "advertising does not cost too much". In older to cut down production cost per unit there is a need to increase the total sales turnover. When overall sales increase, production cost per unit is automatically slashed and more people buy the goods. Apart from towering production costs, advertising also pays for entertainment and education through use of media like radio and TV. Consumer is the king in the market. He cannot be compelled to buy anything. At the most, he can be persuaded to patronise a certain brand. It is here that advertising plays a prominent role. There is no standard format to be followed to make advertising liked by every person. Advertising is a creative field. Individual likes and dislikes determine success of advertising or its failure. Advertising scores over personal selling because it provides freedom of choice to the consumer. Decision to make purchases is independently arrived at by the consumers. No civilised society can record constant progress and ensure better
standard of living to its people in the absence of information and education provided by advertising.
What is Advertising?
Advertising is all about communication. In international markets the process of communicating to a target audience is more complex because communication takes place across multiple contexts, which differ in terms of language, literacy, and other cultural factors. In addition, media differ in their effectiveness in carrying different appeals. A message may, therefore, not get through to the audience because of peoples inability to understand it (due to literacy problems), because they misinterpret the message by attaching different meanings to the words or symbols used, or because they do not respond to the message due to a lack of income to purchase the advertised product. The process of communication in international markets involves a number of steps. First, the advertiser determines the appropriate message for the target audience. Next, the message is encoded so that it will be clearly understood in different cultural contexts. The message is then sent through media channels to the audience who then decodes and reacts to the message. At each stage in the process, cultural barriers may hamper effective transmission of the message and result in miscommunication. Before undertaking an advertising campaign, marketers should be able to answer two key questions: (1) Why are we advertising? (2) What are we advertising? On the face of it these seem like two fairly obvious questions. But they are significant. Advertising can be a very expensive promotional tool. It is widely believed that much advertising spend is wasted. So careful consideration about Why and What can pay dividends. Why advertise? The following may be good reasons why a business is advertising: To create awareness, customer interest or desire To boost sales (moving the demand curve to the right) To build brand loyalty (or to maintain it at the existing level) To launch a new product
To change customer attitudes perhaps trying to move a product more upmarket or to dispel some widely held perceptions about the product To support the activities of the distribution channel (e.g. supporting a pull strategy) To build the company or brand image To reminds and reassure customers To offset competitor advertising businesses may defend market share by responding to competitors campaigns with their own advertising To boost public standing: companies can boost their public standing with advertisements that link them with generally approved campaigns such as care for the environment To support the sales force advertising can make the job of the sales force easier and more effective by attracting leads from potential customers and perhaps motivate them by boosting the profile of the business Take a look through any magazine and select a sample of adverts. Which of the above reasons do you think are behind the adverts you choose? Dont forget that some adverts aim to achieve multiple objectives. What to advertise? Factors that help answer the what are we advertising? focus on what the advertising message should be. In general, there are really only two kinds of effective advertising message: Firstly, does the business/product have a Unique Selling Proposition (USP) A unique selling proposition is a customer benefit that no other product can claim In reality these are rare, although that does not stop marketers from claiming them for their products. Secondly, does the thing that is being advertised add value and if so, how? For example, advertising for washing powders will focus on the added value created by whitening agents or the fact that a particular formulation will last longer than the competition (take a look at the Fairy web site to see if you can spot the other added value features claimed for its products) Whatever is advertised, it is important that the message is: Seen Read
6. In a sense that a perverse form of PR for surely advertising. The media tend to assume that bad news is good news and good news is no sort of news at all. 7. Corporate advertising can therefore serve the purpose of presenting the good news about an oraganisation which the media would not normally print. This is a tendentious argument because it admits the failure of traditional media relations. 8. Given that such a situation exists, corporate advertising can be a legitimate form of PR, adopting a positive tactic in urgent circumstances. This is very different from merely flying the flag which is what so much of this sort of advertising seems to be. 9. Serious corporate advertising therefore has a purpose: it aims to convey an urgent message to a selected public. 10. Let us take a hypothetical example. Suppose your company has suffered bad publicity because of a series of set-backs. Your share price has fallen. The trade is wary. All sorts of risks exist. You could lose orders, key staff could desert you, & a take over bid might well be imminent. And yet you know that the truth is very different. There is no need for panic. you have a new factory coming on-steam to produce a market-leader, & the good news is about to break. To stop the rot, and create a favorable market situation, you could place a confidence booster corporate advertising campaign in journals as varied as the Financial Times, the trade, technical, professional & local press, plus the leading nationals read by your distributors & customers. Now that would be a real purpose-built corporate campaign which was aimed at the right people in order to actually do something. They did not use pretty coloured pictures; instead they used dramatic headlines & typography. 11. There is another kind of corporate advertising which is very effective & that is issue or advocacy advertising. Used by mobile in the states, it has been dubbed op-ed advertising because such advertisements have been deliberately placed opposite leaderpage editorials. The objectives of this kind of PR advertising are two-fold as will be explained. In a sense, this is a kind of lobbying or pressuring via the media- usually the press, but TV can be used. Whereas the typical British corporate advertising is full of pretty pictures and highly literacy copy, and talks of great achievements, historical record or the excellence of its research, the American style issue advertising tackles issues of government policies on, say, pollution, the environment nuclear power, drugs or crime, or it presents the case for an industry under attack from either government or pressure groups. 12. Oil companies have used media such as the Sunday colour magazines & TV to show how they are protecting wild life or are engaged in other energy industries. Leading up to privatization, a number of enterprises have used corporate advertising to establish a corporate image. We have also seen companies using this form of PR to explain their diversification when they were often thought to merely monopolise in one industry. Issue advertising is not quite like the propaganda ads which certain interested parties
published in Britain in the 60s and 70s to protect themselves from the labour governments nationalization plans. Issue advertising seeks to create better understanding of a companys attitude, position or even desire to have a vary positive use of advertising for a PR purpose. It is vital to distinguish between vanity and purposeful institutional advertising. 13. There are, of course, other kinds of corporate & financial advertising which are legitimate. You may wish to present your companys case during an industrial dispute, or publish a summary of the annual report, & the offer of a copy of the full report may be advertised. Decide why you need corporate advertising. Is it to present a case quickly in words & media of your choosing? Is it to position yourself firmly in the market place? Is it to clearly identify & establish your corporate image? Or do you want to put on record your achievements? Or do you want to show how you are responding to government policies, or contributing to social issues as Shell and BP have done? Maybe you want to show the contribution you are making to the economy. These are all vary positive aims. Prestige derives from such advertising, but that is not its sole purpose. Justify the Statement: Advertising is what you say about yourself, & PR is what others say about yourself . Advertising is a commercial, persuasive activity aimed at promoting a specific idea or a viewpoint, product or a service or an institution through the use of mass media. Advertising presents the most persuasive possible selling message to the right prospect for the product or service at the lowest possible cost. In any case, PR costs less than advertising if you have something of interest and value to the public which the media will want to tell them about. There are many instances when an advertisement is preferred to free Publicity. The following are few examples: 1. An advertisement accommodate much more material than a press release and it is not altered or proved mercilessly by editorial staff. 2. In order to have a bigger turn-out for an event, advertising is of a greater help than any other form of communication including public relations. 3. It is cost effective and easier to buy an advertisement space in the long run rather than bringing out press release which may sometimes even not get printed. An advertisement through any media will not enjoy same respectability as news coverage would.
The following are the relative advantages and factors in ones favour or against:1. Every oraganisation irrespective of its nature is involved in public relations. Advertising may or may not be used by an oraganisation for an example hospitals, and social service oraganisation may not advertise every now and then, but they will have to use PR in a big way at every step. 2. Advertising is limited to special selling and buying tasks and hence requires less time. On the other hand PR demands more time and effort than advertising. In case of advertising the basic jobs of conceptualizing, producing, space buying etc. can be fully delegated to agencies whereas such total hiring of agencies for absolute PR function cannot be conceived. 3. PR not built overnight, it is a long-term policy measure. It also does not come free of cost. The comparative cost cannot be assessed in terms of advertisement rates for PR expenses. There are no reasons for advertising and PR to work at cross purposes, although they can have their separate fields of operation. Public relations can have their separate fields of operation. Public relations can use advertising as a weapon or a tool. It can effectively use advertising to fulfill its own purpose. In the present era, Advertising & Public relations are now joining hands towards fulfilling common objectives. PR enjoys a distinct advantage in the field of corporate advertising. Through advertising and public relations were not commonly mixed still advertising has been one of the key strategic tools in PR. Hence there are numerous examples available today where advertising and PR work together as a communication group. The benefits of integrated approach and its results in terms of impact and mileage are tremendous. Another important area where PR shows its expertise is in the use of a number of communication tools like TV, home video, satellites etc. As PR can make an impact on public opinion they can make an important contribution to planning out advertising in support of marketing and sales activities. Advertising is what you say about yourself, PR is what other people say about you. Make sure that the two match, because the one can influence the other.
Indias most valuable & respected corporations. ITCs e-choupal ITC has partnered the Indian farmer by introducing of IT through its e-choupal initiative. Under this initiative, ITC has set up Internet facilities in villages to help farmers access crop specific web sites created by the company. Thus the companys e-choupal initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. Hindustan Lever Limited. (HLL) Hindustan Lever Limited (HLL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HLL is also one of India's largest exporters.
Lifebuoy Swasthya Chetana Lifebuoy Swasthya Chetana is the single largest rural health and hygiene educational programme ever undertaken in India. Its objective is to educate people about basic hygienic habits. STANDARD CHARTERED Standard Chartered has also arranged Mumbai Marathon. They get lot of response from the people by their participation in race. This year they are also arranged Corporate Sporting Challenge. The money which is collect from this race are donated to the charity. Standard chartered wants to be big marathon race in the world. So, this people shows their social responsibility towards society which create corporate image in minds of the people. So, this companies creates corporate advertising by showing social responsibility towards the society which create corporate image of the company & also helps to maintain good public relation & influence people to use the companys products.
PROBLEM OF THE CASE 1. Lack of awareness of the existence of the company. 2. The market for the companys product was very low. 3. lack of effective communication amongst the internal public. 4. So the growth is not up to the mark. SOLUTION OF THE CASE
1. To stop further depression & to create a favorable market situation, for that the company have to place a confidence boostle corporate advertising. Corporate advertising help than any other forms of communication. It can serve the purpose of presenting good news about the company than any other media. 2. The company can maintain good public relation with their different types of publics i.e. customer, investors suppliers & so on. Companys management have to give chance to the different publics to present their views at the right time & at the right place. Because consumer is a person who actually consumes the product or uses the services. 3. Along with the market survey to create corporate identity there is need for greater public relation. They have to be more conscious about their target audiences i.e. prints, press etc. Also the company has to use different communication tools like TV, home video & satellites etc. where corporate public relation shows its expertise. Finally the public relation & corporate advertising believe in adequate consumer focus, which should be the spirit of the profitable oraganisation.
Here are the some examples of Various companies. Nokia Airtel Amway Connecting India Express yourself We provide solution
5. Control production & budget These are the key concept of any organisation. In control and better budget company provide better advertise by selecting an appropriate media. Short Message, Short time advertise. We know that sometimes due to over budget many marketing plans failed. And also over production or low production will hamper the sale of the product which hamper the company brand image in the customer mind so proper control on budget and production is necessary. 6. Evaluate the effects. By corporate advertising company have to evaluate their old image like reliance start their business with clothmill and now they dealt with telecom and power sector also. In this way we can say that in each segment company has to target diferent sort of customers. For that purpose they advertise completally according to their segment and than they evaluate the effects by comparing the previous results and the new findings.
In todays knowledgeable society the corporate advertisers have been quick to learn the value of such advertisement. Therefore, the PR professionals & corporate advertisers have to be conscious of the power of advertising & of the need to use that power for the common good. The image of an organization is multi-faceted & in the real sense it is not tractable. The publics like shareholders, investors, suppliers, customers or employees view the organization from different perspectives. Corporate advertising interestingly does not ask for any action on the part of these publics except passive approval. There is a need for greater image development through corporate advertising. Regardless of how high a companys products are held in esteem by the public, this image is not transferable automatically to management competence or to positive attitudes about the companys future direction.
Conclusion
Today world is globalise and competition is increases so day by day to maintain our brand image and our corporate identity, the companies are focus on corporate advertising. Advertising is the Heart pulse of any company because the company sales is depends on effective advertising design. Under the detailed study and the findings through information we have reached the following conclusions 1.) 2.) Corporate advertising creates a high brand value in the mind of the customers. Corporate advertising is the advertising related to organisation and not focuses on the product of the organisation. That sort of advertising believe in adequate customer focus excepts product focus. For effective advertising proper media should be used. Finally the public relation & corporate advertising believe in adequate consumer focus, which should be the spirit of the profitable oraganisation
Suggestions
1) Proper communication is necessary 2) Use of proper media 3) Target to create a brand image not the product image 4) Variety of products or unique product shold be available in market. 5) Time and money is highly considering factor before displaying the advertisement. 6) Along with the market survey to create corporate identity there is need for greater public relation. They have to be more conscious about their target audiences. 7) We have to keep eye on our cometitors promotion strategies because advertising will more effective after competitor analysis.
BIBLIOGRAPHY
Public Relations Management: By Romeo Mascarenhas. Public Relation for your Business: By Jefkins. Franklins. Effective Public Relation Management: By K.R. Balan. Advertising Management by P. K. Agrawal Advertising Management by Azhar Kazmi
WEBLIOGRAPHY www.adagency.com
CONTENTS
1. Executive Summary
1 2 3 4 6 7 8 13 15 17 19 20 21
2. Introduction
3. Importance of Advertising 4. What is Advertising?