MADE BY Tanishq Aggarwal

ADVERTISING MANAGEMENT
Q Explain the advantages of advertising to business, consumer and
society?

Answer To business

1. Vast coverage It helps in covering vast audience in less time than other
way covering people.
2. Introducing of a new product It helps in introducing of a new product
which helps easy to communicate message with attractive commercials.
3. Building goodwill It represent the brand image with iconic introduction
and due to awareness of their product as well as the introducing the
product quality superior, it will leads to increase in brand image and
goodwill.
4. Competitive edge IT helps in getting competitive advantage through
giving the product quality message with impressive expression so that
people will take it as the product superior than product of other
companies.
To consumers

1. Knowledge about products It helps in making aware consumer about

the product selling in the market as well as the use of the product so that
consumer can take decision of buying a product.
2. Esteem benefits It helps in fulfilling the needs of social and esteem of a
consumer by providing them good vibes from using the product as it feel
they are using superior and popular products raising their standard.
3. Creation of needs It helps in creating the needs that why they need the
product and how it will make their life easier which ultimately helps in
creation of needs and satisfying them in better manner.
TO SOCIETY
1. Creation of jobs Advertising helps the society by providing jobs
to the society in both in advertising activities as well as in
production and selling activities.
MADE BY Tanishq Aggarwal

2. Raising the standard of society It helps in raising the standard

of society by making them aware of new product and informing
them their life and their need are both satisfies in good manner.
3. Addressing social issues It helps in addressing social and
personal problems which are facing by the society such as
sanitations, food and shelter etc.

Q Give the factors that affects advertising budget and state

the preparation of advertising budget ?
Answer factors affecting advertising budget:
1. Frequency of the Advertisement
This means the number of times advertise has been shown
with the description of the product or service, in the granted
time slots. So here, if any company needs more advertising
frequency for its product, then the company will have to
increase its advertising budget.
2. Competition and Clutter
The companies may have many competitors for its product.
And also there are plenty of advertisements shown which is
called clutter. The company has to then increase their
advertising budget.
3. Market Share
To get a good market share in comparison to their
competitors, the company should have a better product in
terms of quality, uniqueness, demand and catchy
MADE BY Tanishq Aggarwal

advertisements with resultant response of the customers. All

this is possible if the advertisement budget is high.
4. Product Life Cycle Stage
If the company is a newcomer or if the product is on its
introduction stage, then the company has to keep the budget
high to make place in the market with the existing players
and to have frequent advertisements. As the time goes on
and product becomes older, the advertising budget can come
down as then the product doesn’t need frequent advertising.
Methods of preparing advertising budget:
 Percentage Of Sales: In this method, the budget is
decided on the basis of the sales of the product from
previous year records or from the predicted future sales.
This is a pure prediction based method and best
applicable to the companies which have fixed annual
sales. But if in case there is a requirement for more
promotional activities then this method has a
disadvantage because there will be decrease in
advertisements as the budget is fixed.
 Affordability: this method is generally used by the small
companies. Only the companies which have funds and
can afford advertising opt for this method. The
companies can go for advertising at any time in whole
year whenever they have money to spend. The amount
MADE BY Tanishq Aggarwal

spent also varies from time to time as per the

advertisements.

 OBJECTIVES AND TASK MEETHOD

This is the most appropriate ad budget method for any

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

The method is based on the relationship between the

objectives and the task to achieve these objectives. The costs
of various advertising activities to be performed to achieve
marketing objectives constitute advertising budget
 Competitive Parity Method:
Competition is one of the powerful factors affecting marketing
performance. This method considers the competitors’ advertising
activities and costs for setting advertising budget. The advertising
budget is fixed on the basis of advertising strategy adopted by the
competitors.

Thus, competitive factor is given more importance in deciding

advertising budget. For example, if the close competitors spend 3%
of net sales, the company will spend, more or less, the same per cent
for advertising. Here it is assumed that “competitors or leaders are
MADE BY Tanishq Aggarwal

always right.” If not followed carefully, this method may result into
misleading.

It is obvious that a company differs significantly from the

competitors in terms of product characteristics, objectives, sales,
financial conditions, management philosophy, other promotional
means and expenses, image and reputation, price, etc.

Therefore, it is not advisable to follow the competitors blindly.

Marketing/advertising manager should take competitors’
advertising strategy as the base, but should not follow as it is. The
advertising budget must be adjusted to the company’s internal and
external situation.

Q Give the functions of Advertising Agency. What are the

factors that affects selection of advertising agency ?
A Functions of Advertising Agency
1. Advertising Plan
Advertising agency either prepares or helps in preparing
advertising plans and programmes for its clients. Preparing
an advertising plan needs concerted efforts and investigative
information. In performing this function, the agency should
have full information about the products. It may pertain to
the product’s positive aspects, past record, its position in the
competitive market, and competitors’ negative aspects,
strengths and weaknesses.
MADE BY Tanishq Aggarwal

The advertising agency should assess the present market

conditions and the firm’s distribution methods.
A thorough knowledge on markets (consumers) is also very
important. Information on what people buy, why they buy it,
where they buy, how they buy, how frequently they buy etc.,
are very important and useful. An advertising agency may be
required to conduct a research to obtain such information.
Matching the advertising team with product positioning
strategy is another important task.
Since an advertising agency knows the character of
advertising medium, it can suggest a suitable media mix to its
client. Knowledge of target market, the media habits and
exposure of the target market are required for this purpose.
2. Creation and Execution
An advertising plan, prepared by the advertising agency will
be sent to the advertiser for approval. Once approved, its
execution is normally assigned to the agency. The agency
enters into contracts with the suitable media and the stage is
set for creating an effective advertisement to suit the
advertising media. Copy will be written, layouts are made,
illustrations are drawn or photographed; commercials are
produced, advertising messages are prepared. Billing for
service space is done.
3. Co-ordination
MADE BY Tanishq Aggarwal

Coordination is another important function of an advertising

agency. It has to ensure a proper coordination between the
clients, sales force and the distribution network to ensure
long-run success of the advertising programme. The goal of
the advertising programme must be to assist the efforts of
sales persons, distributors and retailers to maximize sales for
the client. Many agencies also render special services in such
areas as market research, publicity, preparation of product
literature, etc.
4. Research
Research may enable them to make stronger presentation to
their clients. It may help the copy and art personnel, to
create better advertisements for their clients.
5. Public Relations
The fundamental objective of this department is to build and
maintain goodwill with the cross sections of public. The tools
used in communicating with the public are corporate
advertising and publicity. The main job of this department is
to build stronger relations with clients and the various
sections of the public — customers, employees, middlemen
and shareholders.
Factors Affecting selection of advertising agency:
1. Background
MADE BY Tanishq Aggarwal

This is a basic rule that is to be followed almost every time

you make a decision to work with someone new. A
background check is necessary to analyze the personnel,
financial and managerial positing of the agency. This also
helps in understating the vision and objective of the agency
you’re opting for.
While doing a background search, you also get to know
whether the agency is a full-service or a part-time one. Your
preferred type would matter. In the instance you want only a
part-time agency to fulfill your advertising requirements; a
background check would be beneficial.
2. Budget
Both, yours and the agency’s financial positions should be
assessed. You cannot hire an agency that does not fit into
your budget allocations. It’s not necessary to go for the most
expensive business as that would turn your cash flow
negative! Go for the one most suited with your organizations
financial budget.
3. Credibility
As mentioned previously, the clientele of the business is a
factor that indicates their authenticity. The authenticity,
integrity and image of the agency should be taken into
account. Their credibility can mainly be analyzed by looking
at their past records. Details of clients can be accessed
through their history and the company’s information.
MADE BY Tanishq Aggarwal

4. Expertise & Experience

The experience of an agency would show how much it has
excelled in its business. Some agencies focus on a specific
aspect of advertising or on one particular business sector.
Agencies advertising content relative to your business are
familiar with how to market your brand.
However, that’s not the only requirement. The agency’s
experience in the industry matters while making a selection.
Their experience enables them to understand what the
client, you, need. This helps in conveying your message and
not having to explain everything from scratch.
5. Management Skills
Is the agency able to manage all its tasks and maintain their
clientele? If so, you’re on the path of choosing the right
advertising agency. Agencies manage their own financial
necessities and their customers. These tasks require special
skills, which, if the business has shown that they’re stable.
Agencies which have a problem solving approach are more
efficient as opposed to those who aren’t. Their
responsiveness should also be kept in mind. They should be
able to respond to your queries in a timely manner.
Q What are the guidelines of advertising agency and the
client to preserve good relationships between each other?
MADE BY Tanishq Aggarwal

A Suggestion for advertising agency for maintaining good

relationship with client:
1. The advertising agency should do a smart and hard work
to bring success to the client's ad campaign.
2. It should make a good advertising plan and must
implement it efficiently and effectively. However, first it
must get the approval from the client.
3. It is the duty of the account executive of the agency to
keep his customer happy and satisfied.
4. It should not charge client unreasonably high rates.
5. It should not make ads for client's competitor.
6. It should get all the information from the market that
will help to create better ads.
7. Discuss the ad fees with the client in advance to avoid
disputes.
8. Disclose to the client the names of the team members
(employees) that are working on his ad campaign.
Suggestion for clients to maintain good relationship with
advertising agency:
1. Treat the ad agency with courtesy at all times and never
hurt its ego.
MADE BY Tanishq Aggarwal

2. Provide all possible information about the product to be

advertised and the organisation. A well-informed ad
agency will make better ads.
3. Don't unnecessarily bargain for the fees charged by the
ad agency as this may affect the quality of work.
4. Motivate the agency to do a good impactful work. Its
charges such as media bills, fees and other costs must
be paid well in time. The client should not wait for the
ad agency to remind him about the payment dues.
5. Don't change the ad agency without a proper reason. If
not satisfied, always first communicate your
expectations and then wait for necessary changes to
reflect.
6. The client should approve the proposals submitted by
the ad agency. He must avoid making petty arguments
and only highlight those crucial relevant matters that
needs attention.
7. Give sufficient time to the agency to work on and
develop an ad campaign. The client should not
pressurize it to work quickly. He should avoid giving
deadlines.
8. Reduce disputes to a minimum.

Q What are the factors that affect media selection?

MADE BY Tanishq Aggarwal

Answer
 The required coverage
 No. of exposures in a budget
 The relative cost of the media advertising
 Nature or types of target customers
 Advertising budget of the company
 Media environment
Question Write short note on
DEMERIT OF ADVERTISING
(1) Adds to Costs:
An organisation has to spend large amount on
advertising. It increases the cost of the products. To
meet this expenditure, price of the product is raised.
No manufacturer pays for the advertising expenses
out of his pocket. Advertising, therefore, leads to
unnecessary rise in prices. In this reference it is said
that advertising costs are passed on to the consumers
in the form of high prices.
(2) Undermines Social Values:
Advertisement is a sort of day-dreaming for the
people. These days it is taking the people away from
reality and into the realm of artificiality. Through its
medium people get information about new products.
MADE BY Tanishq Aggarwal

Only very few products are of any use for them. The
brilliance of new products really gets on their nerves.
They want to buy them but have no resources at their
command. Consequently, they start feeling upset with
their present status. Taking it as a social evil, it can be
said that advertisement undermines social values.
(3) Confuses the Buyers:
Many a time distorted version of reality is shown in
the advertising. Believing in advertising, consumers
buy the product. On its use, they feel cheated.
They come to realise later that the information given
in the advertisement was something else whereas the
actual product was quite different from it. Thus,
people lose confidence in advertising because of
wrong presentation. In this reference it is said that
advertising confuses rather than helps.
(4) Encourages Sale of Inferior Products:
Every manufacturer projects his product as superior
one in the advertisement. Therefore, the buyer is
unable to decide as to which product is really good.
Consequently, it is difficult to get good quality
product even after paying a handsome price for it. If a
seller gets good price for some inferior product, it
becomes a habit with him. It affects other sellers also.
MADE BY Tanishq Aggarwal

Therefore, it is said that advertisement encourages

the sale of inferior products.
(5) Some Advertisement is in Bad Taste:
Many times, foul language and objectionable pictures
are used in advertising in order to attract a particular
class. They may be insulting to a particular class. It
causes decay of social values.
Such kinds of advertising are generally opposed by
the people as it hurts their feelings. In this reference
it is said that some advertisements are in bad tastes.

Dead mark approach

A dead drop or dead letter box is a method of
espionage tradecraft used to pass items or
information between two individuals e.g. a case
officer and an agent using a secret location, thus not
requiring them to meet directly and thereby
maintaining operational security. The method stands
in contrast to the live drop so-called because two
persons meet to exchange information.
Advertising that promotes social interest
Social media advertising helps you get more bang for
your marketing buck while reducing the amount of
time you personally have to spend on social media.
MADE BY Tanishq Aggarwal

While this is standard marketing practice for larger

companies, most small-business owners don’t really
know how to use social media for advertising. That’s
where this guide comes in. In this guide, you’ll find
the steps, solutions and goals to help you maximize
your social media profits with advertising — even
with a small-business budget.
Nature of Advertising:
• Advertising is a tool of marketing that disseminates
information about a product which is aimed at a large
number of people at the same time using purchased
space or time in various mass mediums.
• Advertising messages are delivered through variety
of media; television, radio, newspaper, magazine,
billboards, direct-mail campaigns, Internet, clothing
lines with messages printed on them, telemarketing
programs, and even messages heard while someone
is on hold on the telephone.
• Advertising intends to sell and at the same time
create an aspiration towards certain product, which
ultimately leads to a vital and persuasive distinction,
which makes the product a brand.
• It is a tremendous challenge for advertisers to
design a message which must give an advantage in a
MADE BY Tanishq Aggarwal

highly cluttered world where customers are becoming

increasingly proficient at simply tuning ads out.
Q Write a note on recent developments in advertising
in India?
A
• Digital Media is eroding the market dominance of
television and print media.
• Increased emphasis on developing advertising
strategies and digital campaigns.
• Accelerated entry of foreign business and foreign
advertising agencies selling foreign products.
• Focus on high quality content.