A STUDY ON ADVERTISING AGENCY BUSINESS IN INDIA

Dr. Mukul A. Burghate Head and Associate professor Dr.Panjabrao Deshmukh Inst. of Management, Technology and Research Abstract Promotional activities such as advertising, personal selling, sales promotion and public relations are basically a communications process. All the attendant problems of developing an effective promotional strategy in domestic marketing plus all the cultural problems must be overcome to have a successful promotional program. A major consideration for foreign marketers is to ascertain that all constraints (cultural diversity, media limitations, legal problems etc.) are controlled so the right message is communicated to and received by prospective consumers. The effectiveness of promotional strategy can be jeopardized by so many factors that a marketer must be certain no influences are overlooked. Those executives who understand the communications process are better equipped to manage the diversity they face in developing a promotional program. Keyword: Advertising, Communications Process, Domestic Marketing, Cultural Diversity Introduction Advertising is an activity practiced by everyone, from the person who wants to sell his car or to offer piano lessons, through to the multinational manufacturer selling his products. However, even this spectrum of sales-related uses of advertising is too restrictive. A large part of the job of advertising is to impart information and to provide education on everything from pensions to AIDS prevention, hence the fact that governments are among the very largest users of advertising in most countries. Charities, environmental groups, and other special interest organisations use advertising to plead their case, to win support, or to pursue aims that they believe will improve quality of life in the widest sense. If the roles and uses of advertising are varied then so too are the resources, both amateur and professional that can be considered to be advertising practitioners. The advertising that we are most aware of is normally, but not always, produced for advertisers by advertising agencies of varying kinds. The agency role is one that we have to keep in mind as it accounts for the performance of the sector. The three main branches in advertising can be broadly grouped into Sales Promotion, Consumer Education and Public Relations. In Sales Promotion, the main job is to persuade and convince people to buy the product, which the company has brought out. This cannot be done overnight with a magic wand, but can be achieved only through a sustained campaign and promotional drive. In sales promotion, the first thing that one tries to do is to gather more and cater to more and more people and explain the benefits of the product so that they can be convinced to purchase it repeatedly. Similarly, in Consumer Education, the public at large is taught the various benefits of a particular product or service so that the people get attracted to it. In such a procedure,campaigns are designed and splashed in various papers; posters are hung and hoardings painted. Door-to-door campaigns are also organized where the benefit is even greater and the reach more effective. In Public Relations, the objective is to create a positive image of the company by organising various activities, press meets and articles published in various newspapers and magazines. This also helps in building a strong brand message, as the effectiveness of the media is very strong in the country. It is very cost effective too. There are various media available through which a company can achieve its objective. For example, the print media is the best way to achieve it through press advertisements in newspapers and magazines; handbills, direct mail and posters are the other forms. In the Audio-Visual medium, there are radio spots, film and television commercials, slide presentations and live shows. In displays, there are hoardings, exhibitions, point of purchase promotions and demonstrations, market stalls and information booths. Review of literature Harper (1971) pointed out that agency would need to restructure itself into individual specialized functional units demanded by clients to maintain better working relationship. In the study of Mitchell and Sanders in 1995, compatible interpersonal characteristics are considered to be one of the determinants that appeared to influence the likelihood of the agency-client relationship remaining loyal. Research Methodology Problem Identification The problems faced by the advertising agencies are not few. In view of the globalisations, liberalisations, growth of information technology etc, the futuristic line of approach needs to be defined .The entry of international companies in Indian advertising scenario have further complicated the matters. The increasing awareness of the consumer of their rights has drastically changed the strategies adopted. The government regulations e.g. Consumer protection act 1986 has led the agencies to rethink the ad process. A critical analysis is inevitable to mitigate the above said problem. Objectives of Study With the above background, the objectives of this research are: - 1) To study the development of Advertising in India Experiences are for the past, planning is for future .For better planning the history and development of advertising is vital. One cannot plan for future without studying the past. 2) To study the present status of advertising agencies in India. How did we get here? This is important form the point of view of deciding “where do we go from here? ’’. This aspect is equally important to identify the root cause of the problems of the advertising agencies. 3) To study the problems faced by the advertising agencies in IndiaThe changed environment as brought in a new set of problems to the agencies. It is prudent to analysis these problems in order to diagnose the causes for it and the effects of it. This is bound to assist in deciding the future plan of action. Hypothesis The basis of any advertising is good research. Every good ad plans start with research. This has to be done with the collection of data, of information about the target group, the market and the existing competition. Based on market research, a broad hypothesis is formed on which the ad story is being worked out, market research specialists must, therefore, be good in statistics, and possess some knowledge of psychology or behavioural sciences. H1: The globalisation, liberalisation of the Indian Economy has necessitated the Indian Advertisers to rethink on their marketing strategies with “ Cause related advertising ” as its motto. Recommendation There is a lot the advertising sector can do to help to promote sustainable development. The key requirements are that companies increase the number of truly sustainable innovations to promote, and consultants in the communications field as a whole put themselves in a situation to be able to give expert advice and to channel their creative professionalism into supporting advertisers, ventures. There are high expectations that both the client and agency sides of the sector are able to do this. The major client companies have acknowledged the need and the agencies are well used to becoming experts in a new field, as they have recently had to do in the case of interactive communications. In categories where dynamic development is becoming less frequent, a new theme like sustainability presents opportunities to the first to establish leadership and threats to those who are slow in reacting. Conclusion  India remains a major advertising market with multiple media outlets, comparatively lax legislation and a base for major fast-moving consumer goods (FMCG) corporations.  Indian advertising agencies are strongly positioned within the international advertising industry, both as parts of global groups and as respected creative firms in their own right.  India is also still the centre of the Asian-wide advertising industry.  The onset of digital television (TV), widespread adoption of satellite, cable and multi-channel terrestrial TV are providing additional media space, as well as the continued growth of commercial radio, the regional press and the number and scope of magazine titles.  Advertising industry is embracing new electronic media, such as the Internet, as an additional strength and has well-developed design, technical and creative skills to exploit the new media.  With India positioned at the upper end of the business cycle, account revenues are the highest they have been throughout the 1990s. Any slowdown in the Indian economy, as is expected to occur, will be a weakness, as advertising is an industry that is very responsive to trends in the wider economy.  Larger agencies are finding that smaller, although highly creative agencies, are successfully winning accounts. A prime example is the highly rated R.K. Swamy/BBDO agency.  Listed advertising agencies are finding that their share price is often volatile due to rapid switching of accounts between agencies.  The growing concentration of media power in the hands of a smaller number of players means that advertising space rates are increasing.  Web advertising is expected to become increasingly popular, with an estimated 150 million connections to the Internet by the year 2000.  Likewise, digital TV will provide additional segmentation of the TV market, allowing advertisers to target niche markets such as sports fans, news fans, etc.  With segmentation becoming ever more defined, more general advertising opportunities, such as posters and billboards, have become popular again, with advertisers seeking to achieve maximum exposure.  Ambient advertising is a growth sector and is providing creative opportunities for both agencies and site promoters.  The rash of risqué adverts such as the Cola-Cola and Pepsodent campaigns have led to renewed calls for greater restrictions on the content of advertising. Any clampdown on creativity would obviously be a threat to agencies.  The current consolidation of the industry into several larger international holding companies may ultimately be a threat and lead to a drop in creativity and diversity.  The onset of any recession in the India would obviously be a threat to the industry, as it would reduce advertising expenditure across the board. References: Books  Advertising -planning, implementation and control : Sandeep Sharma  Advertising: - C.N.Sontakki Page No: -489  Prescription for Advertising :Edmond A. Bruneau owner of Creative Consultants in Spokane, Washington, and the author of the book, Journals  Initiative Media :-Ashish Bhasin ,President, and head of all Media, Lowe Lintas and Partners  The New Marketing: Developing Long-Term Interactive Relationships,” Long Range Planning, 20 (4), 10-20. Gummesson, E. (1987),