Structure of the

Advertising and
Promotions World

Players in the Advertising

World
Advertisers: Govt, versus Private
National rural health mission-most advt brand
2.5 times jump in govt advt (jan-aug 05)
30% of National channels,70% on rural
channels

Product versus Services:

FMCG, Consumer durables

Multinational versus National

Honda, Nestle vs Nirma, Dabur, Rasna etc.
2

Agency Pitch

Credentials Pitch
Strategy Pitch
Creative Pitch
IMC Pitch

Types of Ad Agencies
Agency:The organization that deals with
the advertiser.
Multinational/National/Regional
Ogilvey, JWT, Grey /Mudra, Dattaram,
Radeus

Big/Medium/Small:Mudra, Chaitra,
Rediffusion.
80-20 Rule
Niche: Specialised services
4

Other Players
Media: Print, TV, Radio, Outdoor,
Transit Media.
Freelancers: Self employed
professionals
Third Parties: Audit firms.

Target Audience
Primary: Actually buys the product
Secondary: Influences in buying
Defined by
Demographics/Psychographics
Socio-Economic Classification

Regulatory Bodies

The Government
Indian Newspaper Society
Indian Broadcasting Federation
Advertising Standards Council of
India

Advertising Agency
Departments

Client Servicing/Account Planning

Creative( Art/Copy)
Media ( Planning/Buying)
Studio Operations
Production
HR
Finance/Legal/Admin.
8

Agency Compensation
Commission Based
Fee Based

Agency Evaluation

Capabilities
Strategy
Creativity
Media

10

Centralized and
Decentralized Advertising
Agency
Centralized

Decentralized

Only one marketing

department which
controls marketing
activities
Responsible for
creating unified
brand image

Multiple marketing
departments are
controlling marketing
activities
There is more
freedom and no single
image is created

Centralized and
Decentralized Advertising
Agency
Have unified brand
image with similar
products/services,
thus requiring single
managing team
For eg, make brand
image is
communicated

Decentralized
organizations offer
multiple
products/service, thus
requiring different
managing teams each
having their own
customers, marketing
approaches, initiatives
and pricing strategies
For eg, FMCG

Advertising Agencies
Independent agencies offers limited range of
services. Focus is limited, for eg, internet advertising
only
B2B agencies handle advertising for client marketing
business products or services to other business
Public service agencies campaigns for government
departments
Digital agencies develop advertising campaign for
internet and other digital media
13

Advertising Agencies
Recruitment agencies recruitment and selecting
candidates for job vacancies on behalf of clients
Social media agencies concentrate on using
social media such as facebook to communicate
with consumers and business customers
Full service agencies offers complete range of
advertising across all media and market sectors.
Also called as integrated agency.
14

Specialised Services

Direct Response Agencies

Sales Promotion Agencies
Public Relation Firms
Event Marketing Agencies
Market Research Agencies

15

 Case TATA SALT