UNIT I ADVERTISING LESSON 1: CHAPTER1: DEFINITION, INTRODUCTION ROLE OF ADVERTISING TO ADVERTISING AND ITS HISTORY

Objective Advertising puts across the message in a convincing way, and ADVERTISING AND PROMOTIONS Students by the end of this lesson I expect you to be clear with guides us to take action-buy these products repeatedly. what is advertising and how it has evolved over a period of Now Let’s first understand the definition of advertising. time. The word advertising has its origin from a Latin word The World of Advertising ‘advertire’ which means to turn to. In this first lesson we will start with the discussion on the so- The dictionary meaning of the word is ‘to announce publicly called the glamour’s world and that is advertising where our or to give public notice.’ main focus will be on what is’ advertising? What are its American Marketing association has defined advertising as “any important dimensions? (The standard definition of ad- paid form of non-personal presentation and promotion of vertising includes six elements.) ideas, goods and services by an identified sponsor.” To start with tell me what do you understand from advertising. Advertising is a paid form of communication, although some As all of you would have noticed that, whenever you are forms of advertising, such as public service announcements watching any channel or coming from your home they’re too (PSAs), are donated space and time. many advertisement, but have you ever thought why it is being done? If no, then start thinking and if yes then lets discuss. Second, not only is the message paid for, but also the sponsor is identified. Third, most advertising tries to persuade or influence the consumer to do something, Although in some cases the point of the message is simply to make consumers aware of the product or company. Fourth and fifth, the message is conveyed through many different kinds of mass media reaching a large audience of potential consumers. Finally, because advertising is a form of mass communication, it is also non-personal. A definition of advertising, then, includes all six features. Advertising is paid non-personal communication from an identified sponsor using mass media to persuade or influence an audience. In an ideal world every manufacturer would be able to talk one- on-one with every con-sumer about the product or service being offered for sale. Personal selling is typically a one-on-one approach, but it is very expensive. Although advertising delivered through interactive technology Before getting into the definition try and recall this might be considered personal rather than mass communication, advertisement. Tell me this is the advertisement of which it is still a far cry from personal selling. Adver-tises can provide brand? more customization through interactive media such as the World Wide Web, but it is not the same as meeting with every What is Advertising? customer individually to discuss a product or service. The key Advertising is known to each one of us. This is so because right point is that interactive advertising reaches a large audience just from morning till night we come across a number of them in like traditional advertising. newspapers, in magazines, on the roads as hoardings, in shops The costs for time in broadcast media, for space in print media, as posters, in films and on TV. In fact, in stares at us from all and for time and space in interactive and support media are sides and is all-pervasive. What function does it perform spread over the tremendous number of people that these essentially? It influences our decisions, especially buying media reach. For example, $1.2 million may sound like a lot of decisions. money for one Super Bowl ad; but when you consider that the If you want to see the effect of advertising ask a nursery going advertisers are reaching over 500 million people, the cost is not child these days he/she are aware of brands like Colgate and so extreme. Rasna and Nirma thanks to TV advertising. Jingles of the Lets us discuss the salient features of Advertising in detail. products are hummed by the young and old alike.

© Copy Right: Rai University 11.311 1 ADVERTISING AND PROMOTIONS The following are the salient features of advertising: • Advertising now is practiced as a profession. The advertising • Paid Form: .An advertising message is paid for by the industry consists of the advertising agencies with billing advertiser and this distinguishes it from publicity which is running to Rs. 10,000 crores per annum. Then we have a not paid, for. When an advertiser makes payment, he body of advertisers, mostly manufacturers, distributors, exercises control over its contents, form schedule, and media large retailers; service institutions etc. who sustain the selection. advertising activity. We have the media consisting of the press, broadcast media (radio, TV), outdoor publicity etc. In • Any Form: Advertising can take several forms. It could be a all these three components, there are trained professionals sign, a symbol, and an illustration. It could be a message like the Advertising Manager, the Media Manager, the which is either written in words or shown on TV or aired on Accounts Manager, the Space Selling Manager, the Art radio. It could be a mailer received in post it could be a Director etc. handbill distributed at a “street corner. Advertising could be outdoor advertising such as posters or billboards or neon • Psychological, Social, and Economic Force: Advertising signs. Any form of presentation, which fulfils the functions influences our attitudes and- predisposes us favourably of an advertisement, can be employed. towards certain products. It is thus a psychological force. Advertising reflects the contemporary society. It is thus a • Non-Personal: Advertisement does not include any social force. Advertising attempts to influence’ demand and personal selling done on person-to-person basis or people- so it is an economic force. to-people basis. It is a substitute for a personal salesman. It uses mass media to deliver the message. Advertisement is • A Discipline: Advertising is studied as a discipline having a meant for a larger ‘target audience and is not directed to an body of knowledge at journalism and mass communication individual. schools and in business schools, and now in University’s regular programmes (e.g., B.Com. of and Goa • Goods, Services, Ideas: Advertising can promote a wide University). range of products. It can also promote services such as mobile telephony, internet and banking. Besides, this I think by now you are clear with the concept of advertising advertising is used to propagate socially relevant causes such now let us move on two views that are for advertising. as family welfare, fuel, economy, adult literacy etc. All of you The function of advertising can be vied in two basic ways: must have seen advertisements on TV advising care and 1. As a tool of marketing caution while bursting crackers at the time of Deepavali. 2. As a means of communication • Identified Sponsor: An advertisement is put by an advertiser. The advertiser could be a company or corporation 1. As a tools of marketing: the advertising, in the above lines or society or an individual. The sponsoring organization has been defined as a tool of marketing. It is used as a tool puts either its name or the name of the brand or both on for selling the products, ideas and services of the identified the advertisement. sponsor i.e. advertiser, through non-personal intermediaries or media. It supplements the voice and personality of the • Information: An advertising message informs the individual salesman. consumers about the features of the products and their availability. 2. Advertising as a means of communication and persuasion: advertising presents and promotes the ideas, • Persuasion: Advertising goes beyond information. It goods and services of an identified advertiser. In presenting persuades the potential consumers about the suitability of and promoting an item (ideas, goods and services), the the product. advertiser, is engaging in a very important function of • Target Audience: An advertising message is meant for a communication. It informs the prospective buyers and users specific group of people who are the potential or actual users about the product and the producer. It, thus, serves as a of the product. A lipstick is meant for young college girls. A communication link between the producer and the luxury car is meant for, high income business and prospective buyers who are interested in seeking the professional people. An advertiser directs his message to a information. Surely, advertising may be taken as the most selected group called its target audience. efficient means of reaching people with product • Creativity: Advertising has to sell. But beyond that- it is information. also an art, which employs creativity to create an ad message. A part from disseminating the information to the prospective Advertising as a profession employs both creative and on buyers about the product and the producer, the advertising creative - people. Those who write advertisements are called serves as a mass persuader. While creating awareness and copywriters and work in the creative section. Those who popularity, it seeks to persuade. In fact advertising is a mass visualize the written words are also create the message so- persuasion. It is a more effective widespread and less costly way generated is produced to be put across through different of establishing contact than salesmanship. Clyde R. Miller media. Production and media are the two other important points out that “ all success in business in industrial produc- departments of advertising business. tion, in invention, in religious conversion, in education and in politics depend upon the process of persuasion’. Persuasion is the essence of a democratic society. Every adver- tiser in modern times intends that all creative advertising must

© Copy Right: Rai University 2 11.311 ADVERTISING AND PROMOTIONS serve more than merely inform or entertain. It must change or agencies came in the USA. In 1875, the first modern advertising reinforce an attitude or behaviour. And the consumer-the agency was set up in Philadelphia (N.W. Ayer & Son). They average man-should recognize the advertisers persuasive offered not only space selling but also many other services to intention. clients. Thus advertising, in its broader sense must include only its Towards the end of the 19th century, creative advertisement commercial functions but at the same time, it should also developed. Painting came to be used in advertising (1887). convey adequately its purpose. The definition of advertising in Consolidation: In the last century (20th century) advertisement the light of the above view, may be given as-”Advertising is bloomed to its full form. More emphasis was laid on advertise- controlled, identifiable information and persuasion by means ment copy. Art services and advertisement production became of mass communication media” more and more important. Media selection was also considered Audiences for Advertising equally important. By 1920, the agencies started planning campaigns. In 1917, AAAA (American Association of Advertis- • Household Consumers ing Agencies) was founded. • Business Organizations In the early part of the century, advertising form underwent • The Trade Channel metamorphosis. In 1914, ABC (Audit Bureau of Circulation) • Professionals was founded. • Government After the First World War, advertisement got established. MR also came up on the scene. Radio commercials in the USA became common. Advertisement films also became prominent. Students let us see how adverting has originated and After the II World War, there was mass production. Advertising gained importance over a period of time activity therefore increased. TV also came later in 20th century as a powerful medium of Origin and Growth of Advertising advertising: Advertising history runs parallel to, the history of mankind. Advertising as we know it today is a. phenomenon’” hardly Let us tabulate the history of Indian Advertising. sixty years’ ‘old. . Prior to the invention of the printing, press (1450 AD) there were town criers who sold their goods through Period Characteristics shouting Generally, this was a method of ‘ sale in fairs and Pre- Press Advertisements market yard. This simple method was’ supplemented by shop- Independen ’signs. The oldest written advertising is preserved in the British ce India museum (3000 years old). Albums (a place for writing on the 1930s The talkie and radio emerge as media wall) and stone-tablets were the media. Placards followed these. 1940s War Years With the fall of the Roman empire, advertising died too. Till Famine. 1400 AD, there was not much of it. Fight for Independence

Let us first see what happed in early years of Printing 1950s Watershed years for advertising Many Indian Industries came up. Printing press invention (Germany, ‘Gutenberg) gave a boost to Wood’s survey of rural market. writing and advertising. Handbills were first printed in 1477. Burmah Shell propagated kersosene by transit Soon the newspaper came up on the scene. Towards the end of advertising on vans. the 16th century all publications in Germany and Holland Cinema advertising began ( 2-3 minutes films). carried advertisements. Product advertised were: new pam- Calcutta gets the privilege of having India’s first phlets; books and treatises. ad club (1956). Press syndicate: leading ad agency Periodical advertising on, a regular basis began in the early part National created the Murphy baby – still a of the 17th century. England had a weekly newspaper (1692). popular figure. But a form similar to newspaper of today came after 50 years. 1960s India’s first Advertising convention ( Calcutta – Newspapers -started accepting picture advertising. 1960). In 1650s some advertisements occasionally appeared. Coffee Advertising should be Indian in thought and was offered for the first time in 1652, chocolate in 1657 and the content. (Dr. Keskar in this convention). in 1658 Shift to marketing orientation. Professionalisation within agencies. Handbills are the fore-runners of the present day advertise- Asian Advertising Congress at New Delhi. ments. They appeared on the scene in the 18th century. The first 1960s Research data generated. daily newspaper started publication in 1702. Patent Medicines MRI (Market Rating Indices). were advertised most in all the newspapers. Shop Audits. Expansion: In 19th century advertising marked a great expan- NRS. sion. In 1892, the first advertising agency sprang up in London Creativity was emphasized. (Reynell and Sons). In 1841, in the USA the first advertising Photography finds increasing use Social marketing. agency was started (founded by Volney Palmer). More such

© Copy Right: Rai University 11.311 3 ADVERTISING AND PROMOTIONS 1970s Media boom. Simpson, ContemporaryQuotations, 1964, Binghamton, Special magazines. NY: Vail-Ballou Press, p. 84. Asian Advertising Congress at New Delhi • “Advertising is the life of trade.” Life-style studies Positioning. Rural Marketing Calvin Coolidge, quoted in John P. Bradley, Leo F. Daniels & Thomas C. Jones, The International Dictionary of 1980s Indigenisation though there is still Western Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co., execution. p. 13. Public Sector advertising. Expansion and diversification of agencies • “Advertising - a judicious mixture of flattery and TV as a powerful medium threats.” Colour printing more popular Northrop Frye, quoted in Robert I. Fitzhenry, The Fitzhenry Regional broadcasts. & Whiteside Book of Quotations, 1993, Canada: Fitzhenry& Expansion of radio. Whiteside Limited, p. 18. Marketing techniques in print medium Formation of Indian Chapter of International • “The art of publicity is a black art.” Advertising Association. Learned Hand, American jurist, quoted in Robert I. Formation of ASCI. Fitzhenry, The Fitzhenry & Whiteside Book of Quotations, Adoption of a new code. 1993, Canada: Fitzhenry& Whiteside Limited, p. 19. History of Indian Advertising has been taken up as a project by Advertising Club of Bombay. • “[A]dvertising is a symbol-manipulating occupation.” Reach 1 and Reach II. S. I. Hayakawa, Language in Thought and Action (1964), 1990s NRS IV, V, VI and PRS ( 1997) Surveys. New York: Harcourt, p. 268. Niche magazines. • “Advertising is salesmanship mass produced. No one Opening of print media for foreign would bother to use advertisingif he could talk to all his collaboration. prospects face-to-face. But he can’t.” F.M. Radio in private hands. Emphasis on brand equity. Morris Hite, quoted in Adman: Morris Hite’s Methods for Several satellite channels and pay channels of Winning the AdGame, 1988, Dallas, TX: E-Heart Press, p. TV. 203. Consumer satisfaction and tracking studies. • Advertising is “the lubricant for the free-enterprise Prasar Bharati, Cable TV Regulation and system.” Conditional Access System (CAS) Leo-Arthur Kelmenson (1976), quoted in Michael McKenna,

“Quote-Unquote what few stalwarts have to say about The Stein & Day Dictionary of Definitive Quotations, 1983, Advertising.” New York: Stein & Day Publishing Co., p. 11. • “Advertising is the principal reason why the business • “Advertising may be described as the science of man has come to inherit the earth.” arresting the human intelligence longenough to get James Randolph Adams, quoted in John P. Bradley, Leo F. money from it.” Daniels & Thomas C. Jones, The International Dictionary of Stephen Butler Leacock, quoted in Michael Jackman, Crown’s Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co., Book of PoliticalQuotations, 1982, New York: Crown p. 12. Publishing Inc., p. 1. • “Advertising is of the very essence of democracy. An • “Advertising is the greatest art form of the twentieth election goes on every minuteof the business day across century.” the counters of hundreds of thousands of stores Marshall McLuhan (1976), Canadian social scientist (quoted andshops where the customers state their preferences in Robert Andrews, The Routledge Dictionary ofQuotations and determine which manufacturerand which product 1987, p. 5, London: Routledge & Kegan Paul). shall be the leader today, and which shall lead • “Ads are the cave art of the twentieth century.” tomorrow.” Marshall McLuhan, quoted in Robert I. Fitzhenry, The Bruce Barton (1955), chairman of BBDO, quoted in James B. Fitzhenry & Whiteside Book of Quotations, 1993, Canada: Simpson, ContemporaryQuotations, 1964, Binghamton, Fitzhenry& Whiteside Limited, p. 19. NY: Vail-Ballou Press, p. 82. • “Advertising is an environmental striptease for a world • “Advertising is the ability to sense, interpret . . . to put of abundance.” the very heart throbsof a business into type, paper and Marshall McLuhan, introduction to Wilson Bryan Key, ink.” Subliminal Seduction: Ad Media’s Manipulation of a Not So Leo Burnett, quoted by Joan Kufrin, Leo Burnett: Star Innocent America, 1974, New York: Signet (New American Reacher(1995), Chicago, IL: Leo Burnett Company, Inc., p. Library), p. vii. 54. • “Advertising is the rattling of a stick inside a swill • “Advertising is what you do when you can’t go see bucket.” somebody. That’s all itis.” George Orwell, quoted in Angela Partington, The Oxford Fairfax Cone (1963), ad agency partner, quoted in James B.

© Copy Right: Rai University 4 11.311 ADVERTISING AND PROMOTIONS Dictionary ofQuotations, 1992, New York: Oxford Looking for a Bride Groom University Press, p. 501. of Age 18 - 25 26 - 30 31 - 35 36 - 45 46 - 50 Above 50 • Advertising is “[a] ten billion dollar a year With the economy showing signs of recovery, the Indian ad misunderstanding with the public.” industry will certainly register a healthy growth rate in the year Chester L. Posey, Senior V.P. & Creative Director, McCann 2004, predicts Nirvik Singh, chairman South Asia, Grey Erickson Worldwide Group. “In the New Year, the ad spends will go up • “Advertising is, actually, a simple phenomenon in terms in many sectors which include pharma and insurance. I defi- of economics. It ismerely a substitute for a personal nitely see a bright year for the ad industry in the year 2004,” he sales force - an extension, if you will, ofthe merchant adds. who cries aloud his wares.” For effective advertising strategy, Indian marketers will continue Rosser Reeves, Reality in Advertising (1986), New York: to opt for integrated marketing plans which will be split AlfredA. Knopf, Inc., p. 145. between above and below- the-line-activities, says Mr. Singh. “I • “Advertising is the ‘wonder’ in Wonder Bread.” think it will be a mix of 70 per cent of traditional advertising Jef I. Richards (1995), advertising professor, The University and 30 per cent of non-traditional media,” he adds. of Texas at Austin. If this year the industry grows by about 10 per cent, the next • “Advertising is the modern substitute for argument;its year should see a 15 to 18 per cent growth as the outlook is function is to make the worse appear the better.” healthy, predict industry analysts in Mumbai. George Santayana Echoing similar views, Arvind Sharma, chairman and chief • “Advertising is the foot on the accelerator, the hand on executive officer, Leo Burnett, expects the Indian ad industry to the throttle, the spur on theflank that keeps our grow by 15 per cent in the year 2004. “Happy times are ahead. economy surging forward.” Most sectors will increase their ad spends to stand out in a Robert W. Sarnoff, quoted in John P. Bradley, Leo F. Daniels clutter. Sectors like FMCGs, durables and services will surely & Thomas C. Jones, The International Dictionary of increase their ad spends in 2004.” says Mr Sharma. According to Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co., industry analysts, the new new year promises to be good: p. 15. strong macro economic fundamentals, turnaround in GDP • “The simplest definition of advertising, and one that growth, brimming foreign exchange reserves and increased will probably meet thetest of critical examination, is public investment programmes in infrastructure. “The sectors, that advertising is selling in print.” which already show remarkable results, are industry and services. Daniel Starch, Principles of Advertising, 1923, Chicago, IL: India’s IT sector will continue to make tremendous progress. A.W. ShawCompany, p. 5. And now, outsourcing and R&D are creating widespread job opportunities. Given this macro environment, advertising will • “Advertising is selling Twinkies to adults” reflect this positive framework,” comments a leading advertising Donald R. Vance practitioner in Mumbai. • “Advertising is legalized lying.” Sharing Mr Sharma’s positive outlook, Kurien Mathews, H.G. Wells, quoted in Michael Jackman, Crown’s Book of director, TBWA India, says the ad industry will benefit from the PoliticalQuotations, 1982, New York: Crown Publishing feel-good factors in the country. “The country is doing well. The Inc., p. 2. economy is booming so the ad industry will see better times. I • “Advertising is the genie which is transforming America think ad spends will certainly increase in sectors like insurance into a place of comfort,luxury and ease for millions.” and financial services,” says Mr Mathews. William Allen White, quoted in John P. Bradley, Leo F. According to Ramesh Narayan, managing director, Canco Daniels & Thomas C. Jones, The International Dictionary of advertising, the ad industry can hope for a bright year ahead as Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co., all economic indicators are showing great signs. “With the p. 15 elections around the corner, many key sectors will hike their ad Ad Spends Seen Rising In The New Year spends, with the result the industry will fare better in the year Advertising industry poised for a healthy growth 2004,” he adds. Lalitha Srinivasan In sharp contrast to these views, Tarun Rai, senior vice- president, JWT India, says the ad spends will not increase MUMBAI, DEC 29: What will really work in the Rs 12,000 dramatically while there will be an incremental increase in the crore Indian advertising industry in the year 2004? Will ad year 2004. “Things will be better next year. However, I think it’s spends be under pressure in the highly competitive industry? going to take another year before we can assume that the While many head honchos of advertising agencies predict that growth is going to last. While ad spend may increase, it may not 2004 will be a good year for the ad industry, there are others be reflected in the industry’s growth. I do not expect any who expect tougher times ahead. According to ad gurus, sectors dramatic change in the new year,” comments Mr Rai. like pharma, insurance, IT, services and consumer durables will surely increase their ad spends in the year 2004. Finally, with the economy looking up, most professionals are hoping for a better year than 2003 in the Indian advertising industry.

© Copy Right: Rai University 11.311 5 ADVERTISING AND PROMOTIONS 1920s - Enter the first foreign owned ad agencies • Advertising and Indian Advertising set up • Expatriate agencies emerge: Alliance Advertising, Tata Publicity • LA Stronach’s merges into today’s Norvicson Advertising • D J Keymer gives rise to Ogilvy & Mather and Clarion 1925 - LR Swami & Co, Madras 1926 - LA Stronach & Co (India) Pr. Ltd, Bombay starts • Agency called National set up for American rather than British advertisers • American importers hire Jagan Nath Jaini, then advertising manager of Civil and Military Gazette, Lahore. National today is still run by Jaini’s family • Beginning of multinational agencies • J Walter Thompson (JWT) opened to service General The spirit should be free and creativity of yours should fly Motors business higher and higher in this ad mad world of advertising. 1928 - BOMAS Ltd (Formerly DJ Keymer & Co Ltd) set up Just go through this on advertising history : 1929 - J Walter Thompson Co Pr. Ltd formed • A sophisticated & professional industry called Indian Indian Agencies, Foreign Advertising in the Thirties Advertising 1931 - National Advertising Service Pr. Ltd. Bombay set up • Indian Advertising starts with the hawkers calling out their • Universal Publicity Co, Calcutta formed wares right from the days when cities and markets first began 1934 - Venkatrao Sista opens Sista Advertising and Publicity • Shop front signages Services as first full service Indian agency • From street side sellers to press ads 1935 - Indian Publicity Bureau Pr Ltd, Calcutta established • The first trademarks 1936 - Krishna Publicity Co Pr. Ltd, Kanpur begins opera- • Handbills distributed separately from the products tions 18th Century • Studio Ratan Batra Pr. Ltd, Bombay established • Concrete advertising history begins with classified advertising • Indian Broadcasting Company becomes All India Radio • Ads appear for the first time in print in Hickey’s Bengal (AIR) Gazette. India’s first newspaper (weekly). 1938 - Jayendra Publicity, Kolhapur started • Studios mark the beginning of advertising created in India 1939 - Lever’s advertising department launches Dalda - the (as opposed to imported from England) Studios set up for first major example of a brand and a marketing campaign bold type, ornate fonts, more fancy, larger ads specifically developed for India • Newspaper studios train the first generation of visualisers & • The Press Syndicate Ltd, Bombay set up illustrators Indianising Advertisements in the Forties • Major advertisers: Retailers like Spencer’s, Army & Navy and 1940 - Navanitlal & Co., Ahmedabad set up Whiteaway & Laidlaw 1941 - Lux signs Leela Chitnis as the first Indian film actress to • Marketing promotions: Retailers’ catalogues provided early endorse the product example • Hindustan Thompson Associates (HTA), the current • Ads appear in newspapers in the form of lists of the latest incarnation of JWT, coins the Balanced Nourishment merchandise from England concept to make Horlicks more relevant to India • Patent medicines: The first brand as we know them today • Green’s Advertising Service Agents, Bombay formed were a category of advertisers 1943 - Advertising & Sales Promotion Co (ASP), Calcutta • Horlicks becomes the first ‘malted milk’ to be patented on established 5th June 1883 (No. 278967). 1944 - Dazzal, Bombay comes into existence The 1900s 1905 - B Dattaram & Co claims to be the oldest existing • Ranjit Sales & Publicity Pr. Ltd, Bombay started Indian agency in Girgaum in Bombay 1945 - Efficient Publicities Pr. Ltd, Madras set up 1912 - ITC (then Imperial Tobacco Co. Ltd.) launches Gold • Tom & Bay (Advertising) Pr. Ltd., Poona begins operations Flake in India 1946 - Eastern Psychograph Pr. Ltd., Bombay set up

© Copy Right: Rai University 6 11.311 ADVERTISING AND PROMOTIONS • Everest Advertising Pr. Ltd, Bombay established 1970 - Concept of commercial programming accepted by All 1947 - Grant Advertising Inc, Bombay formed India Radio • Swami Advertising Bureau, Sholapur started • Hasan Rezavi gives the very first spot on Radio Ceylon 1948 - RC Advertising Co, Bombay set up 1971 - Benson’s undergo change in name to Ogilvy, Benson & Mather • Phoenix Advertising Pr. Ltd, Calcutta formed 1972 - Western Outdoor Advertising Pvt Ltd (WOAPL) 1950s - Radio Ceylon and Radio Goa become the media introduces first closed circuit TV (CCT) in the country at the race option course in Mumbai 1951 - Vicks VapoRub: a rub for colds, causes ripples with its 1973 - RK Swamy/BBDO established entry in the balm market 1974 - MCM goes out of business 1952 - Shantilal G Shah & Co, Bombay • Arun Nanda & Ajit Balakrishnan set up Rediffusion 1954 - Advertising Club, Mumbai set up 1975 - Gupta sets up Trikaya Grey • Express Advertising Agency, Bombay 1976 - Commercial Television initiated • India Publicity Co. Pr. Ltd., Calcutta 1978 - First television commercial seen 1956 - Aiyars Advertising & Marketing, Bombay 1979 - Ogilvy, Benson & Mather’s name changes to Ogilvy & • Clarion Advertising Services Pr. Ltd, Calcutta Mather 1957 - Vividh Bharati kicks off Glued to the Television in the Eighties 1958 - Shree Advertising Agency, Bombay 1980 - Mudra Communications Ltd set up 1959 - Associated Publicity, Cuttack • King-sized Virginia filter cigarette enters market with brand Creative Revolution in the Sixties name of ‘Charms’ 1960 - Advertising Accessories, Trichur started 1981 - Network, associate of UTV, pioneers cable television in • Marketing Advertising Associates, Bombay set up India 1961 - Industrial Advertising Agency, Bombay comes into 1982 - The biggest milestone in television was the Asiad ’82 existence when television turned to colour transmission • Bal Mundkur quits BOMAS to set up Ulka the same year • Bombay Dyeing becomes the first colour TV ad 1962 - India’s television’s first soap opera - Teesra Rasta • 13th Asian Advertising Congress in New Delhi enthralls viewers • Media planning gets a boost 1963 - BOMAS changes names to SH Benson’s 1983 - Maggi Noodles launched to become an overnight • Stronach’s absorbed into Norvicson success • Lintas heading for uncertainty • Canco Advertising Pvt. Ltd. founded • Levers toying with giving its brands to other agencies • Manohar Shyam Joshi’s Hum Log makes commercial • Wadia sets up Interpub television come alive • Wills Filter Tipped cigarettes launched and positioned as • Mudra sponsors first commercial telecast of a major sporting made for each other, filter and tobacco match event with the India-West Indies series 1965 - Kersey Katrak sets up Mass Communication and 1984 - Hum Log, Doordarshan’s first soap opera in the colour Marketing (MCM) era is born 1966 - Government persuaded to open up the broadcast • Viewers still remember the sponsor (Vicco) of Yeh Jo Hai media Zindagi! • Ayaz Peerbhoy sets up Marketing and Advertising Associates 1985 - Mudra makes India’s first telefilm, Janam (MAA) 1985-86 - 915 new brands of products and services appearing 1967 - First commercial appears on Vividh Bharati on the Indian market 1968 - Nari Hira sets up Creative Unit 1986 - Sananda is born on July 31. The Bengali magazine stupefies India by selling 75,000 copies within three hours of • India wins the bid for the Asian Advertising Congress appearing on the newsstands. 1969 - Sylvester daCunha left Stronach’s to run ASP; later sets • Mudra Communications creates India’s first folk-history TV up daCunha Associates serial Buniyaad. Shown on DD, it becomes the first of the 1970 - Frank Simoes sets up Frank Simoes Associates mega soaps The Problematic Seventies • Price quality positioning of Nirma detergent cakes boost 1970, 1978 - National Readership Studies provided relevant sales data on consumers’ reading habits 1988 - AAAI’s Premnarayan Award instituted

© Copy Right: Rai University 11.311 7 ADVERTISING AND PROMOTIONS 1989 - Advertising Club Bombay begins a biennial seminar In the New Millennium called ‘Advertising that Works’ 2000 - Mudra launches magindia.com - India’s first advertising • Advertising & Marketing (A&M) magazine launched and marketing gallery Tech Savvy in the Nineties • Lintas merges with Lowe Group to become Lowe Lintas and Partners (LLP) 1990 - Marks the beginning of new medium Internet • Agencies open new media shops; go virtual with websites • bigideasunlimited.com - a portal offering free and fee ideas and Internet advertising for money launched by Alyque Padamsee and Sam Mathews • Brand Equity (magazine) of The Economic Times is born • Game shows like Kaun Banega Crorepati become a rage; media buying industry is bullish on KBC 1991 - First India-targetted satellite channel, Zee TV starts • Kyunki Saas Bhi Kabhi Bahu Thi marks the return of broadcast family-oriented soap on TV • Close on the throes of the Gulf War enters STAR (Satellite • French advertising major Publicis acquires Maadhyam Transmission for Asia Region) 2001 - Trikaya Grey becomes Grey Worldwide 1992 - Spectrum, publisher of A&M, constitutes its own award known as ‘A&M Awards’ • Bharti’s Rs 2.75-crore corporate TV commercial, where a baby girl is born in a football stadium, becomes the most • Scribes and media planners credit The Bold And The expensive campaign of the year Beautiful serial on STAR Plus channel as a soap that started the cultural invasion 2002 - Lowe Lintas & Partners rechristened Lowe Worldwide 1993 - India’s only advertising school, MICA (Mudra Institute • For the first time in the history of HTA, a new post of of Communications Ahmedabad), is born president is created. Kamal Oberoi is appointed as the first president of HTA • Tara on Zee TV becomes India’s first female-centric soap 1995 - Advertising Club of Bombay calls its awards as Abby Points to ponder L: • Country’s first brand consulting firm, SABRE (Strategic Advantage for Brand Equity) begins operations 1996 - The ad fraternity hits big time for the first time by bagging three awards at the 43rd International Advertising ADVERTISING Festival, Cannes • Sun TV becomes the first regional TV channel to go live 24 hours a day on all days of the week n Advertising: paid, nonpersonal communication through various media by 1997 - Media boom with the growth of cable and satellite; print medium sees an increase in titles, especially in specialised business firms, not-for-profit areas organizations, and individuals who are • Government turns towards professional advertising in the identified in the advertising message andand private sector for its VDIS campaigns who hope to inform or persuadepersuade members of a particular audience • Army resorts to the services of private sector agencies • Advertising on the Internet gains popularity • Equitor Consulting becomes the only independent brand consultancy company in the country • Several exercises in changing corporate identity • For the first time ever, Indians stand the chance of winning the $ 1- million booty being offered by Gillette as part of its Football World Cup promo 1998 • Events assume important role in marketing mix • Rise of software TV producers banking on ad industry talent • Reinventing of cinema -advertising through cinema begins 1998 - Lintas becomes Ammirati Puri Lintas (APL) 1999 - B2B site agencyfaqs.com launched on September 28, 1999 • The Advertising Club Bombay announces the AdWorks Trophy

© Copy Right: Rai University 8 11.311 ADVERTISING AND PROMOTIONS 1 Advertising and Market Share

u New brands spend proportionately more for advertising than old ones.

u A certain level of exposure is needed to affect purchase habits.

u Beyond a certain level, diminishing returns set in.

1 Advertising and the Consumer

u Average U.S. citizen is exposed to hundreds of ads each day.

u Advertising may change a consumer’s attitude toward a product.

u Advertising can affect consumer ranking of brand attributes.

© Copy Right: Rai University 11.311 9