Wednesday, April 21, 2010

Television Based Advertising: Electronic Media

So far,the television advertising market has crossed the benchmark of more than billions of dollars. Actually television advertising is such a source of advertising that keeps the products and services of any companies live among the existing customers. That's the reason FMCG, IT, Pharmaceutical & now mobile manufacturing companies are in queue to bid more and more so that their products could be featured in most seen tele soaps. All the advertising costs are calculated on behalf of TRP (Television Rating Points). The channels which have more TRP, obviously they would charge according to that.

Today in India there are more than 220 television channels approved by Ministry of Information & Broadcasting. All these channels have been differentiated on their genre. But the major category of channels belong to news. According to the channels report, despite of majority of news channels, Star Plus, Zee TV and other channels which feature women based serials are seen most by the majority of women in India and somehow they have got better TRPs than the other channels. The TRP of such channels has now increased by the reality shows.

When a company has to advertise on any of these channels, firstly they had to get their ad campaigns made by any of the professional ad makers. Actually the campaign videos are made by the experts as the concept of the advertisement should reach in viewers mind in that given period of time. Generally these videos are of 15 - 30 seconds. This is because screening of such videos on television channels are charged as per second.

Now you can make an idea of the costing of any of the products of which the bollywood stars are campaigning. While making of the ads these actors and models are paid a huge amount. After them, ad making companies take a huge amount as well. According to one of the media expert in New Delhi (India), if a campaign would be shown for a minimum of six months it will cost more than 70 lakhs.

Advertising brings sale to companies but increase a price load on customers and its too bad.


Thursday, April 1, 2010

Paper Based Advertising : Print Media

No doubt a paper printed with text on it have a great impact on anyone, just remember your school time, it was your book printed with lessons on it taught you a lot at that time. Today, in the era of electronics, still print media has got its own importance in the form of newspapers, magazines, booklets and pamphlets. There are number of people who prefer to read daily served newspapers along with their cup of tea. So far, there are more than hundreds of newspapers read daily in the various parts of India. The total number of copies which are sold a day are more than 1 Cr.

It means that the words printed on newspaper is read by a minimum of 1 Cr population. That's gave the newspaper companies to earn money selling their spaces for advertising. This was also beneficial for advertisers, they got a chance to promote their products through newspapers. Hence, it brought a new way of advertising. That is in the form of print media. Advertising in newspapers can cost you from 10,000 to 1 lac depending on the sizes of the ad formats.

The other next option is advertising through magazines. But here the advertisers prefer to put their ads on the related contents magazines. For example, if the advertiser or a company from automobile would definitely prefer to publish their ads in automobile magazines like, Over Drive, Auto Car India. This would bring their autos in the groups of targeted and prospective auto buyers. The other advertisers also think in the same way.

All the above mentioned advertising sources are some how cheaper than the other mediums of advertising in print media. But still there are few companies or organizations who choose to promote their products & services through pamphlets. But the cost of advertising through pamphlets is more costlier than newspapers and magazines. Secondly it doesn't have large numbers of viewers due to limited distribution network.

But here is the most important question "Does print media advertising really works?". For last 5 years it has been seen that the newspaper publishing companies are growing at a faster rate. Even you can easily find district wise newspaper publishing companies in most part of India, publishing the local news in the local languages. You know why? This may be because of the advertising revenue earned from the major newspaper companies would have been observed by the little players in this sector.

Actually on the name of news the local and the growing newspaper companies publish weird news details which does not worth to be published in public. But as the newspaper companies have to give 22 pages printed paper along with highly paid advertisements and to collect big bucks they publish these mess. Probably you would have learn law of diminishing marginal utility. This law states that when a product reaches its maximum, a consumers interest towards that product starts declining. Ironically, the same law applies here.

More newspaper companies, the same news with different headings and different images can't make the people, fool. No doubt, copies of the newspapers are sold but very small number of population assumes those to be true and reliable. So may be they would have now come to know what exactly these newspapers are carrying in 29 pages books. These contains 80% advertisement and 20% news. So any one can figure it out that how many readers would value these newspapers.

Chain Systems & Network Marketing

This was really a memorable day, when one of my school teacher told me how can I drive my own earned car at the age of 15. That was really a nice day. He started to describe me the path which was followed my most of the successful personalities who earned a lot of money following the same path. It was really interesting when he showed me the full plan that how easy it is to earn money now a days. But what I found, I found that my total earning depends on sales volume generated by me and my team.


Actually then I got that, as my teacher is explaining to me to introduce me in such a business structure, I will have to do the same. It means I will also have to bring more and more people to increase the sales and to earn money. Consequently I understood that, this is purely based on Chain System or you may say Network Marketing. Yes, this is the way, chain systems work for any organization to get more and more sales. I such type of marketing, company saves expenses on hiring marketing executive, reduces their budget in advertising.

The best example for chain system & network marketing as we discussed earlier are Amway, Oriflame, Modi and recently, RCM. In the beginning the concept was firstly introduced in India by Amway then followed by the others. These companies got approved from FDI and other accredited institutions so that they can easily execute such concepts. Later on more and more companies started to follow the same path to generate sale, as it was the cheapest but more effective way of selling.

Network Marketing works on a predefined structure where one person who joins a network brings more and more person to his team to increase the sales volume. For Example "A" join a network then he will bring "B" "C" & "D" to the group. These all three would also having a personal interest to earn more and more money. Now "B" would also introduce three new members to the group. The same way "C" & "D" would Day. Now "A" team has 13 members. Gradually the team would grow and hence the sale would increase.

When more such groups are made, sales increase and give companies a large volume of profit to the organization. This is what " Network Marketing" is. But as every thing has dual aspects, it has too, this concept steadily started to be applied in the form of scams and later on it got neglected in various parts of the countries. But later on, after arrival of internet, it got a new structure and a new name " Affiliate Marketing".

Tuesday, March 23, 2010

Mouth Advertising & Network Marketing - Free & Paid

We, the human beings have one habit in common, if we like or dislike something we appreciate & depreciate it among our friends and familiars. Today I bought an i pod for me, it is really beautiful in design & appearance, when I shown it to my friends, the first question was "from where you bought this?. I told them that I bought it from Nehru place, secondly they asked about the shop and resulted into buying the same. Here the shopkeeper didn't pay anything to me but what I did, I promoted the shopkeeper free of cost.

Mouth advertising is a free of cost advertising medium for business organizations depending on their quality of products and services. Whenever a person would be satisfied he would definitely promote the product & the company without expecting money from the promoted company. Now for a moment just think, you told about a product to 10 people free of cost, and what if you would be paid for that. Yes, you will tell more than 100 a day. Based on this concept, company started to pay commissions on each sale to anyone for promoting their products among their friends & relatives.

This concept brought a new way of advertising & promoting a product called " Network Marketing. This really doesn't cost anything to advertisers as they pay the network marketers on the sales volume generated by them. You must have heard the name of Amway. Amway is an MNC company that market their products through network marketing followed by HUL, Oriflame, Modi group. Network marketing really worked across the world but was successful to a limited extent (FMCG only).

Mouth advertising and network marketing both are based on same concepts of advertisement but one is free and other is paid. So you are the better judge to choose between them. So far, you would have noticed that some how advertising & marketing both are similar in few ways. These both tools are used to spread word about products & services.

Advertsing & Marketing : The Great Tools For A Business.

Advertising always remained an integral part of any business whether its a small scale, medium or giant business structure. Each and every business groups use different kinds of advertising methodologies to promote their products among customers. No doubt, the monopolistic market structure has reduced a great extent but it lead to an extensive competitive market. Here is there were 1000 of customers, you may find more than 500 product manufacturers satisfying these customers' needs.

So, it becomes a confused situation for customers to decide with which products they should move on. For example if we talk about FMCG (
Fast Movable Consumable Goods) , we would find, HUL (Hindustan Unilever Ltd), Procter & Gamble, ITC & other renowned brands having a large market capitalization in FMCG market. This really depicts the competitive face of market structure. This is not constraint only to FMCG products only, even the same level of crowd can be seen in Technology, Engineering, Pharmaceuticals & other categorized industries.

Here advertising plays a vital role in making customers aware of the products. So all these business groups apply various of advertising & marketing strategies to have greater exposure & large number of satisfied customers base resulting into a large sales volume. So far the traditional way of advertising say Print Media (
Newspapers, Magazines, Brochures), Electronic Media (Televisions, Radios) were available in 90, but the arrival of internet broaden the application of advertising & promotions.

Once web language arrived and people started interacting with internet media, then it was found that advertising may have a new approach and that can be
Internet Marketing. The best example of Internet Advertising is Google Adwords. As people started looking for anything on Google it became the worlds' no. 1. search engine where you can search for any information that you need. Increasing number of Google users attracted big companies who always remained in some new source of advertising to reach a large group of audiences.


Apart from Google Adwords, companies started peeping into the personal emails of the customers through e-mail advertising , e-zine advertising, affiliate marketing & other internet based mediums of advertising & promotions. So, start from the beginning we saw a dramatic change in the forms of advertising. According to a site the internet based advertising was worth $ 38.8 million. And the accelerated pace has added more worth to advertising market.