Advertising Agency of India

ADVERTISING AGENCY OF INDIA
Chapter 1
SIDVIN SCHOOL OF BUSINESS, BANGALORE 1

ADVERTISING
INTRODUCTION
Advertising is a form of communication whose purpose is to inform potential

customers about products and services and how to obtain and use them. Many
advertisements are also designed to generate increased consumption of those
products and services through the creation and reinforcement of brand image
and brand loyalty. For these purposes advertisements often contain both
factual information and persuasive messages. Every major medium is used to
deliver these messages, including: television, radio, movies, magazines,
newspapers, video games, the Internet (see Internet advertising), and
billboards. Advertising is often placed by an advertising agency on behalf of a
company.
Advertising, in its non-commercial guise, is a powerful educational tool capable

of reaching and motivating large audiences. "Advertising justifies its existence
when used in the public interest - it is much too powerful a tool to use solely
for commercial purposes." - Attributed to Howard Gossage by David Ogilvy
Advertisements can also be seen on the seats of grocery carts, on the walls of
an airport walkway, on the sides of buses, heard in telephone hold messages

and in-store public address systems. Advertisements are usually placed

anywhere an audience can easily and/or frequently access visuals and/or
audio and print organizations which frequently spend large sums of money on
advertising but do not strictly sell a product or service to the general public
include: political parties, interest groups, religion-supporting organizations,
and militaries looking for new recruits. Additionally, some non-profit
organizations are not typical advertising clients and rely upon free channels,
such as public service announcements.
Advertising spending has increased dramatically in recent years. In the United
States alone in 2006, spending on advertising reached $155 billion, reported
TNS Media Intelligence.[1] That same year, according to a report titled Global
Entertainment and Media Outlook: 2006-2010[2] issued by global accounting
firm PricewaterhouseCoopers, worldwide advertising spending was $385
billion. The accounting firm's report projected worldwide advertisement
spending to exceed half-a-trillion dollars by 2010.
While advertising can be seen as necessary for economic growth, it is not
without social costs. Unsolicited Commercial Email and other forms of spam
have become so prevalent as to have become a major nuisance to users of
these services, as well as being a financial burden on internet service
providers.[3] Advertising is increasingly invading public spaces, such as schools,
which some critics argue is a form of child exploitation.
Meaning - Advertising is the promotion of a company’s products and services

carried out primarily to drive sales of the products and services but also to
build a brand identity and communicate changes or new product /services to
the customers. Advertising has become an essential element of the corporate
world and hence the companies allot a considerable amount of revenues as
their advertising budget. There are several reasons for advertising some of
which are as follows:

• Increasing the sales of the product/service

• Creating and maintaining a brand identity or brand image.
• Communicating a change in the existing product line.
• Introduction of a new product or service.
• Increasing the buzz-value of the brand or the company.
Thus, several reasons for advertising and similarly there exist various media
which can be effectively used for advertising. Based on these criteria there can
be several branches of advertising
Definition; One definition of advertising is: "Advertising is the nonpersonal

communication of information usually paid for and usually persuasive in
nature about products, services or ideas by identified sponsors through the
various media."(Bovey, 1992, p. 7) So much for academic doubletalk
* Advertising is a form of communication that typically attempts to persuade
potential customers to purchase or to consume more of a particular
*Advertising - communication whose purpose is to inform potential customers
about products and services
*Advertising - Any paid form of no personal presentation and promotion of
ideas, goods, or services by an identified sponsor.
*Advertising - Usually a company’s encouragement to consumers to buy its
products or services. Advertising is paid for by the sponsoring business. No
journalists often confuse advertising with publicity
*Advertising - A paid, mediated, form of communication from an identifiable

source, designed to persuade the receiver to take some action, now or e future
Types of advertising

Print Advertising – Newspapers, Magazines, Brochures, Fliers
The print media have always been a popular advertising medium. Advertising
products via newspapers or magazines is a common practice. In addition to
this, the print media also offers options like promotional brochures and fliers
for advertising purposes. Often the newspapers and the magazines sell the
advertising space according to the area occupied by the advertisement, the
position of the advertisement (front page/middle page), as well as the
readership of the publications. For instance an advertisement in a relatively
new and less popular newspaper would cost far less than placing an
advertisement in a popular newspaper with a high readership. The price of
print ads also depend on the supplement in which they appear, for example an
advertisement in the glossy supplement costs way higher than that in the
newspaper supplement which uses a mediocre quality paper.
Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events
Outdoor advertising is also a very popular form of advertising, which makes

use of several tools and techniques to attract the customers outdoors. The
most common examples of outdoor advertising are billboards, kiosks, and also
several events and tradeshows organized by the company. The billboard
advertising is very popular however has to be really terse and catchy in order to
grab the attention of the passers by. The kiosks not only provide an easy outlet
for the company products but also make for an effective advertising tool to
promote the company’s products. Organizing several events or sponsoring them
makes for an excellent advertising opportunity. The company can organize
trade fairs, or even exhibitions for advertising their products. If not this, the
company can organize several events that are closely associated with their
field. For instance a company that manufactures sports utilities can sponsor a
sports tournament to advertise its products.

Broadcast advertising – Television, Radio and the Internet
Broadcast advertising is a very popular advertising medium that constitutes of

several branches like television, radio or the Internet. Television advertisements
have been very popular ever since they have been introduced. The cost of
television advertising often depends on the duration of the advertisement, the
time of broadcast (prime time/peak time), and of course the popularity of the
television channel on which the advertisement is going to be broadcasted. The
radio might have lost its charm owing to the new age media however the radio
remains to be the choice of small-scale advertisers. The radio jingles have been
very popular advertising media and have a large impact on the audience, which
is evident in the fact that many people still remember and enjoy the popular
radio jingles.
Covert Advertising – Advertising in Movies
Covert advertising is a unique kind of advertising in which a product or a

particular brand is incorporated in some entertainment and media channels
like movies, television shows or even sports. There is no commercial in the
entertainment but the brand or the product is subtly (or sometimes evidently)
showcased in the entertainment show. Some of the famous examples for this
sort of advertising have to be the appearance of brand Nokia which is displayed
on Tom Cruise’s phone in the movie Minority Report, or the use of Cadillac cars
in the movie Matrix Reloaded.
Surrogate Advertising – Advertising Indirectly
Surrogate advertising is prominently seen in cases where advertising a

particular product is banned by law. Advertisement for products like cigarettes

or alcohol which are injurious to heath are prohibited by law in several
countries and hence these companies have to come up with several other
products that might have the same brand name and indirectly remind people of
the cigarettes or beer bottles of the same brand. Common examples include
Fosters and Kingfisher beer brands, which are often seen to promote their
brand with the help of surrogate advertising.
Public Service Advertising – Advertising for Social Causes
Public service advertising is a technique that makes use of advertising as an

effective communication medium to convey socially relevant messaged about
important matters and social welfare causes like AIDS, energy conservation,
political integrity, deforestation, illiteracy, poverty and so on. David Ogilvy who
is considered to be one of the pioneers of advertising and marketing concepts
had reportedly encouraged the use of advertising field for a social cause. Ogilvy
once said, "Advertising justifies its existence when used in the public interest -
it is much too powerful a tool to use solely for commercial purposes.". Today
public service advertising has been increasingly used in a non-commercial
fashion in several countries across the world in order to promote various social
causes. In USA, the radio and television stations are granted on the basis of a
fixed amount of Public service advertisements aired by the channel.
Celebrity Advertising
Although the audience is getting smarter and smarter and the modern day
consumer getting immune to the exaggerated claims made in a majority of
advertisements, there exist a section of advertisers that still bank upon
celebrities and their popularity for advertising their products. Using celebrities
for advertising involves signing up celebrities for advertising campaigns, which

consist of all sorts of advertising including, television ads or even print

advertisements.
The features of advertising
1. the fact that it is ‘a paid form’ of presentation emphasis’s that advertising

space or time must be purchased
2. its “non personal” nature emphasis’s the fact that it is not a direct or
personalized presentation to one individual but to the masses
3. “presentation” signifies the format in which advertisement communicate
4. “promotion “indicates the objective of advertising and
5identified sponsor refers to the identification of the brand or the advertiser

that is communicating
Today advertising has become an integral part of our social and economic
structure. An increasing number of company’s are spending millions of dollars
on advertising in India every year.
Significance of advertising:
In every walk of business and industrial activities, there is a throat-cut

competition, therefore no business can survive without advertisement.
Advertisement is useful not only for the business enterprises but for the
community as a whole. The economic utility of advertisement can broadly be
divided into five categories:
1) Benefits to Manufacturers:

• Helps in Creation of demand for new products

• Helps in Stabilizing the demand for the product
• Helps in increasing the demand for existing products
• Helps in introduction of new products
• retail price maintenance
• increase in profits
• Creates a brand image in the minds of consumers
• Reduces the cost of production
• Helpful in establishing a direct contact between manufacturers and
consumers
• Helpful in getting efficient, experienced and effective middlemen
2) Benefits to Middlemen:
• Increases the rate of turnover of stock.

• Convenient in selling
• Stability in sales and profits
• Reputation created is shared by the wholesalers and the retailers alike.
• Ensures more economical selling
• Increase in sales
• Increase in goodwill
3) Benefits to Consumers:
• Provides knowledge of new products

• Convenient in purchasing, i.e., where and when to buy
• Provides opportunities to compare the merits and demerits of various
substitute products
• Saving of time and labor
• No possibility of cheating by sellers
• Modern advertisements are highly informative

• Increase in the standard of living

• Elimination of middlemen
• Stresses quality and very often prices that forms an indirect guarantee to
the consumers.
• Provides knowledge of alternative uses of products.
4) Benefits to Salesmen:
· Makes the introduction of new products easy
· Reduces sales efforts
· Establish good and permanent contact with the customers
· Helps in weighing the effectiveness of advertising.
5) Benefits to Community:
· Creates more employment opportunities
· Increases standard of living
· Encourages healthy competition
· Encourages research and development
· Helpful in industrial progress and prosperity
· Encourages art and designing
· Educative
Functions of advertising
1. To differentiate the product from their competitors

2. To communicate product information
3. To urge product used
4. To expand the product distribution
5. Too increase brand preference and loyalty
6. To reduce overall sales cost
7. Creates new demands
1. Differentiate the product from their competitors :
An important function of advertising is the identification function, that is, to

identify a product and differentiate it from others; this creates an awareness of
the product and provides a basis for consumers to choose the advertised
product over other products this creates an awareness of the product and
provides a basis for consumers to choose the advertised product over other
products.
The identification function of advertising includes the ability of advertising to

differentiate a product so that it has its own unique identity or personality.
There are four additional ways to differentiate your offering from the
competition and increase your differentiation:
1. leveraging the brand,

2. innovating your service offering
3. designing product
4. packaging
2. Communicate product information

Another function of advertising is to communicate information about the

product, its attributes, and its location of sale; this is the information function.
Product information communicated to the customers in manner that meets
their information needs. Most consumers tend to discount the information in
advertising because they understand that the purpose of the advertising is to
persuade. Making an advertising message believable is not easy; though often
it is sufficient to make the consumer curious enough to try the product. Such
curiosity is often referred to as interested disbelief. Advertisers use a variety of
devices to increase the believability of their advertising: celebrities or experts
who are the spokespersons for the product, user testimonials, product
demonstrations, research results, and endorsements.
Example:
Ponds age miracle, in that ad the celebrity HADIQA KAYANI is informing the
consumers about the benefits of it. That how the old women can look younger
by using it continuously. It will make you fair cream plus it reduces freckles
plus it can be used as a sun block as well it will make you look young.
3. Urge product used
The third function of advertising is to induce consumers to try new products

and to suggest reuse of the product as well as new uses; this is the persuasion
function.
The basic function of advertising is to provide constant reminders and

reinforcements to generate the desired behavior the advertiser wants from
them. This is a particularly effective function in the long run as reminders and
reinforcements register in the consumers' minds, becoming the base on which
they shape their future decisions. Sampling in the way to urge the product
using

4. Expand the product distribution
When the consumer comes to know about the particular product from the
advertisement he/she wants to try that new product. They go to shops to buy
the product; if the new product is not available in a shop then the shopkeeper
consults the distributor to make that product available in his shop. It is
basically to provide the product all over market. It is necessary to make sure
that product should be accessible to everyone. Availability of product effect the
distribution. . Accessibility is major factor for successful product
5. Increase brand preference and loyalty
Marketing is a moving thing. As your needs are changed your preferences are
changed. When the product delivers the promised quality, service and value, it
creates satisfied customers who become instrumental in spreading a favorable
word-of-mouth. Satisfied customers also develop brand preference; each
product features and uses are written on the product.
Example: 99% girls who are not married will not look at the ad of pampers or
any milk powder for children but when they will get married their interest will
automatically move towards such ad'
6. Brand loyalty
Brand loyalty is a long-term customer preference for a particular product or

service. Brand loyalty can be produced by factors such as customer
satisfaction with the performance or price of a specific product or service, or
through identifying with a brand image. It can be encouraged by advertising.
People often make purchasing decisions based on how a brand makes them
feel emotionally rather than based on quality or other objective evaluations. If

"Just Do it" strikes a chord with an athlete, he'll buy Nike; the decision may
have little to do with quality.
Example: For instance, when one buys a tube of Colgate toothpaste and finds
it ok, one will not have to spend any valuable time on looking for other
toothpaste brands.
7. To reduce overall sales cost
When a product is selling you have to teach the people about the product.
Like if we would advertise through newspapers, TV, broachers and internet, it

would cater huge sum of masses and if you do individually it would be more
costly and time consuming.
Example: Coke targets their consumers on a very large scale through mass
media whereas make cola advertise on smaller scale or go door to door to
advertise their product.
Creates new demands
Advertising have to create new demands they should educate the people about
more and more new things coming up in the market. Each year new products,
including line extensions and new brands are introduced into groceries and
drugstores.
Example: Wateen telecom is offering wireless internet chips, video conferencing

and WIMAX services as they are introducing new services in market its creating
new demands.

Chapter 2

Advertising agency
INTRODUCTION; Advertising agencies are outside companies that

provide for the marketing and advertising needs of other businesses and
organizations. Advertising agencies offer a full range of advertising services and
advice based on market studies, popular culture and advanced sales
techniques. Because Advertising agencies produce logos, creating effective and
attractive color schemes to draw the consumer's attention to their clients' ads.
They also prepare slogans and brochures, and write descriptive copy for sales
materials. They may produce public service announcements for charitable
organizations and social programs as well, and issue press releases for new
programs, events, and products. Advertising agencies use assorted forms of
media to promote their clients' businesses or organizations, including magazine
advertisements, newspaper ads, radio and TV commercials, websites, and even
infomercials. Some also plan events, provide booths at conventions, and give
away promotional items. they are independent from the client company, they
can be objective about a client's promotional needs .The way advertising
agencies work is by getting to know their clients' product or service well and
determining which demographic provides the best audience for promotion. If a
company sells designer handbags, an ad agency would likely try to position the
company's TV commercials during women's programming or on a channel

geared toward women. The look and tone of an ad campaign is also dependent
upon demographics. If the company's target audience is mature adults, design
elements should be more traditional than if the target were a younger
generation
There are several associations that advertising agencies may belong to, such as
the Ad Council, the American Advertising Federation, the International
Association of Business Communicators, and the American Association of
Advertising Agencies, or AAAA. When deciding between advertising agencies, it
is a good idea to see if they are members of any associations and to check them
out with the Better Business Bureau. Also helpful is asking an ad agency for
examples of their work. You may find that they are responsible for well-
recognized ad campaigns that have helped establish other companies. Such
agencies may be expensive and you may have to wait some time to join their
list of clients, but an agency that can make your product or service a
household name is worth the wait and the cost.
MEANING;
An advertising agency or ad agency is a service business dedicated to creating,
planning and handling advertising (and sometimes other forms of promotion)
for its clients. An ad agency is independent from the client and provides an
outside point of view to the effort of selling the client's products or services. An
agency can also handle overall marketing and branding strategies and sales
promotions for its clients.
Typical ad agency clients include businesses and corporations, non-profit

organizations and government agencies. Agencies may be hired to produce an
advertising campaign
HISTORY;

Volney B. Palmer opened the first American advertising agency, in Philadelphia

in 1850. This agency placed ads produced by its clients in various newspapers
In 1856 Mathew Brady created the first modern advertisement when he placed
an ad in the New York Herald paper offering to produce "photographs,
ambrotypes and daguerreotypes. His ads were the first whose typeface and
fonts were distinct from the text of the publication and from that of other
advertisements. At that time all newspaper ads were set in agate and only
agate. His use of larger distinctive fonts caused a sensation. Later that same
year Robert Bonner ran the first full-page ad in a newspaper.
In 1864, William James Carlton began selling advertising space in religious

magazines. James Walter Thompson joined this firm in 1868. Thompson
rapidly became their best salesman, purchasing the company in 1877 and
renaming it the James Walter Thompson Company, which today is the oldest
American advertising agency. Realizing that he could sell more space if the
company provided the service of developing content for advertisers, Thompson
hired writers and artists to form the first known Creative Department in an
advertising agency. He is credited as the "father of modern magazine
advertising

ADVERTISING AGENCY IN INDIA
The First World War created conditions for the growth of some of the Indian
consumer industries. After the war, new British investment followed. The need
arose for specialized advertising services. The British India Corporation, a
British firm in Kanpur, with a relatively wide range of consumer goods, set up
Alliance Advertising Associates Limited. This was probably the first advertising
agency in India to provide a wide variety of services. In 1922, Mr. L.A.
Stronach, a senior artist of Alliance Advertising, left to start his own agency in
Bombay. Thus was born a new type of business enterprise in the service sector
in India.
The Indian advertising industry had a slow start and got its first boost during
the Second World War. With the British personnel having to join the armed
forces, opportunities opened up for Indians in this new talent-intensive
business. Then followed a brief interlude of uncertainty in the years
immediately following Independence. The launching of the First Five-Year Plan
and more so the Second Five Year Plan, with the accent on rapid
industrialization, gave an impetus to the growth of advertising agency business
in India. By 1952 there were 109 advertising agencies in India with a total
turnover of Rs 3.5 corer. By 1967, the number of advertising agencies had

increased to 279 with a total turnover of Rs 35 corer. The Indian advertising

industry has really come' into its own with the growing liberalization of the
economy since the mid-eighties. According to the fourth agency report of the
journal Advertising and Marketing, the Indian advertising industry grew by
36.5 per cent in 1992 -93, far outpacing the growth of Indian industry. What is
significant, however, is that three of the top four advertising agencies in India
continue to be subsidiaries of international advertising agencies-Hindustan
Thompson Associates and Lintas India being the first two, and Ogilvy & Mather
being the fourth. What is more with the new interest of many national
corporations in the Indian market, a large number of international advertising
agencies have entered the Indian advertising industry in collaboration with
leading Indian advertising agencies. This is the process of globalization of
Indian advertising agency business. This is opening up new opportunities for
Indian advertising to assume greater responsibility and serve everywhere in the
world and gather experience of global marketing and advertising.
Types of advertising agencies;
Following are major types of advertising agencies that are currently

serving the advertising industry
. Full Service Agencies
A full service ad agency is one that provides a range of marketing

services. A full services agency provides services that are directly related to
advertising such as copywriting, artwork, production of ads, media planning
etc. It also provides such services in respect of pricing, distribution, packaging,
product design etc
Modular agencies
A modular agency is a full service agency that sells its services on a piece
meal basis. Thus an advertiser may commission an agency’s creative

department to develop an ad campaign while obtaining other agency services

elsewhere. Or, an advertiser may hire an agencies media department to plan
and execute a program for advertising that another agency has developed. Fees
are charged for actual work undertaken.
In House agencies
Those companies, which prefer to have closer control over advertising,

have their own in-house agency. This type is owned completely by the
advertiser. It performs almost all functions that an outside advertising agency
would perform and that’s why some people refer to it as full-service advertising
department of the advertiser. However, the difference between an in-house
agency and an advertising department is that the in-house agency can
undertake to serve several other clients, if the owner so desires, but an
advertising department solely undertakes that work of its owner and not of
outside clients. Secondly an advertising department may not be equipped the
personnel and facilities, which an in-advertising schedule and costs, but also
offers convenience for its owner, because it is just available in the same
building as that of the head office of advertiser.
Such in-house agency also benefits the owner as it can bring revenue through
agency commission that are offered by the media and by way of fees that are
collected from outside parties for undertaking their advertising work. Such
revenue increases the funds and profits of the company. There is another
version of in-house agency whereby advertiser handles the total agency
functions by buying service unit to buy time, space and place the ads. Such an
In-house agency is an administrative center (under the direction of an
advertising director) that gathers and directs varying outside for its operation
use agency would posses. In-house agency not only provides control over
Creative Boutiques

These are shop agencies that provides only creative functions and not
full-service. The specialized creative functions include copy writing, artwork
and production of ads, they charge a fee or percentage of full service agencies,
and as such most of them convert into a full service agency or merge with other
agencies to provide a wide range of services.
Mega agencies
A significant of 1980’s is the development of mega agency. Agencies
worldwide merge with each other serve their clients in much better way. It was
in 1986, Saachi & Saachi, a London based agency who started the movement
and at present it is the third largest agency network in the world.
The Specialists Agency

There are some agencies who undertake advertising work only in certain
areas. there are agencies that specialize only in financial services or only in
publicity or only in point-of-purchase material etc. for instance Soubhagya
advertising agency concentrate on specialized in financial advertising.
The Benefits of Using an Advertising Agency

• Added Expertise
• Media Knowledge and Unbiased Advice
• Easier Administration
• Media Buying
• Quality Control
• Information
• Fending off the media
• And when things go wrong
• Cost Saving
• Time Saving

DISADVANTAGES OF USING THE ADVERTISING AGENCIES
A main disadvantage of using an advertising agency would be the

communication factor. If an agency does not communicate or relay it's clients
goals and creative wishes properly problems can occur within a contract and
lawyers may have to become involved. Depending on the communicative skill of
the agency, you may be prone to being blindfolded during much of the
processes of your campaign leading to a lot of guessing and speculation.
Another disadvantage would be the media buying discounts you may not be
able to take full advantage of due to commission barriers within an agency,
however an agency may have better negotiating powers than your company and
save you more money in the long run anyways. There are far more advantages
to having the right advertising agency than not.
The functions of an advertising agency:

• To accelerate economic growth and create public awareness
• To provide a total, professional, experienced service which is very
personal in its nature
• To take the advertiser's message and convert it into an effective and
memorable communication

The Working of Ad Agencies
To begin with, the agencies started as one-man agents who booked space in the
Media. Even today, in our country, there are so many one-man agents who
book space in the media. Soon the space booking was handed over to the
contact-man, and creative wordsmiths adept at sloganising undertook the
actual construction of the ad. In the course of years, the ad agency became
service-oriented, and was able to offer every possible service including
marketing, market research (MR), and public relations (PR).
Ad agencies have evolved over a period of time. These days we have mostly
studio-based agencies, some industrial and specialized agencies, and hot-
shops who only plan creative campaign by engaging the services of freelancers.
At Madison Avenue, most of these large agencies of the world fiercely compete
for new accounts, resulting in a shift of millions of dollars of billing from one
agency to another. Advertising Age is an official publication of the American
Association of Advertising Agencies (AAAA).
In India, advertising business is worth Rs. 8,000 corers. There were only 62
advertising agencies in 1958, which increased to 168 in 1978, more than 2.5
times the numbers in 1958. There are more than 500 ad agencies today. The
oldest and largest advertisement agency in India is Hindustan Thompson
Associates Ltd. The second largest advertisement agency is Lintas.
Mumbai is considered to be the Mecca of Indian advertising. These days

agencies are also being set up at Bangalore, Madras, Hyderabad, Ahmedabad
and Delhi. In India the ad agencies are sole proprietary concern, partnership or
private limited companies.
It is better to operate agencies on professional lines, rather than as a family. It

is good to install MBO (Management By Objectives). An agency must

necessarily plough back at least 75 % of its profits into business.
The advertising agencies are shifting from the creative mode to the marketing
mode. Today the onus is on the agency to supply the client with data on his
industry; the days of the clients briefing the industry are almost over. The
agencies are expected to maintain database. There is a leaning towards
software for optimizing media usage, and computerization of studio functions.
In India, the legal structure of ad agencies is that of a small proprietary

concern or a big partnership. Sometimes, they are private limited companies,
either big or small. Indian advertising is a fragmented business. There are over
733 agencies accredited to INS. The top 25 account for 50% of all billings. In
addition, there are many accredited agencies.
It is the top 25 agencies, most of which are headquartered in Mumbai, that set
the pace and define the shape of the industry. Agencies like HTA, Lintas,
Clarion and O & M have shaped the entire advertising industry in the country.
Many Indians firms are coming up, by importing Western ad techniques.
Many agencies die a premature death. Most people do not appreciate that an
agency –like any other business - must be properly managed. It is simply not
enough just to have great idea. In recent years, there has been a healthy trend
towards sound management practices, especially financial planning and
control.
This is a highly paid profession. It is a conspicuous high wage island. People

operate on high profile. Their life-styles are opulent because of high expense
accounts 'of entertaining clients. They got their elitist brand due to this reason.
But high salaries and freedom are necessary to attract talents.

People working in an agency:
Accounts Executive: It is a key career option in advertising agency. He is

called an Account Director when he is a member of the Board. He is a link
between a client and his staff. The marketing or advertising department of the
client briefs him. He communicates this to the agency people.
He reaches out to different clients for seeking new business. Even clients who
want an agency' to work for them contact the accounts executive. This
business development work makes it virtually a marketing manager of the
agency.
Do right-brained people make better account directors?
The faculties of logic and reason are supposed to reside in the left-brained
people. While intuition and creativity are believed to be in the right. So far,
accounts director was considered suitable if logical and systematic, i.e., left-
brained. But if he has to motivate a team, he should be inspiring and creative
too, i.e., right-brained.
Copywriters: They are the wordsmiths who do the wording of an

advertisement. They are bright and talented. They have a flair for language.
They contribute to the theme of an advertisement. Creation of successful copies
for different clients establishes them in this field.
Visualisers: These are artists who put on paper what has been thought out by
the copywriter. They in fact design the ad.
Creative Director: He co-ordinates the copywriting and designing. He is a

senior professional who is seasoned in an existing advertising agency set-up to
take on this mantle.

Production Department: Persons of diverse talents like printing technology,

DTP, photography, typography etc. are involved here.
Media Planner: He has to allocate the advertising budget amongst media. He

has to select the appropriate media. He decides about the frequency, size and
position of an advertisement. He decides about its publication date. He receives
the tear-off copies from the media when the ad is published. He is guided by
the media research, which he undertakes, or by research undertaken by an
outside agency. Media is the most professionalized department of advertising
agencies.
Marketing Research: Modern agencies are integrated set-ups. They provide a

range of marketing services. Research data become very useful as input to the
creative process.
The Media : Most of the media today sustain on advertising revenue. They sell
space or time. While selling space or time, they have to convince the client
about the reach of their media vehicle, the composition break-up of their
readers and the pricing of their space/time selling. They monitor the market,
survey their readers, and highlight their readers' demographic and geographic
characteristics. They also maintain relationship with the media department of
advertising agencies who buy space/time on behalf of clients.
Ancillary Services : These are needed to produce/create advertisement. A

whole range of services like studio service, photographic service, printing
service, gift item producers etc. fall into this category.
Freelancers : These are professionals who work independently and have a

successful track record. They are copywriters, jingle singers, radio announcers,
artists, visualizers, technical writers etc.

Organization Structure of Advertising Department
All major advertisers maintain an advertising department. The structure of the

department however may vary from one organization to another, as each one
tries to develop a form, which is most suited to one's requirements. The
principal forms of organizational structure are based on
• sub functions of advertising, such as copywriting or artworks
• communication media
• geographical spread
• product and
• End users.
Irrespective of the specific form, the advertising department has to perform

several functions. Principal among these are setting advertising goals, plans
and budget, selecting the outside ad agency, maintaining contacts, providing
support to the marketing staff and monitor the functioning of the ad agency.
Selecting the ad agency is one of the important tasks of the advertising
department. Several criteria, including experience, size, track record and the
quality of the personnel, are considered in the selection process.
As you know, there are different categories of advertisers. Depending upon

their functions, each organization develops its own structure, of which
advertising department is a part. What is important in this connection is to
analyze the functions an advertisement department is expected to perform.

Organization is a Manufacturing Unit
Manufacturing firms carries out bulk of advertising. It is therefore, necessary

to understand the various principles on which the advertising department can
be organized in manufacturing units. The basic principles are:
(a) By Sub-functions of Advertising :Advertising as a function can be

segmented into its various components, such as, Copywriting, Art Production
and Media. A specialist who in turn reports to the advertising manager can
handle each component.

Advertising Manager
Copywriting Manager Art Manager Production Manager Media Manager
(b) By Media
Advertising Manager
Newspaper Broadcasting Magazine TV Outdoor Direct mailing
© By Product
Advertising Manager
Product A Product B Product C Product D
(d) By Geography
Advertising Manager
Zonal Manager A ZM(B) ZM (C)
(e) By End User

Advertising Manager
Consumer Institutional Government

Market Manager Market Manager Market Manager

Reporting Structure:
The advertising manager has to report to somebody who is higher up in

the organizational
structure. To whom the advertising manager would depend upon how
much importance
advertising is given to the total operations of the firm. There are several
alternatives.
These are:
• Report to the Chief Executive (Chairman/MD.)
• Report to the Director (Marketing)
• Report to the divisional head if the firm is a multi-division firm
and responsibility is delegated at the division level.
Centralization or Decentralization
Should advertising be done on a centralized basis or should the

responsibility be delegated to lower levels - say product or geographical
divisions?
,
Centralized Advertising Activity has been defined as that which - is
located at or directed by headquarters, reporting to corporate sales or
marketing head or in top management. In operation it gets the necessary
product, market, and budget information from the divisions and then
controls the execution of the various programmes by:
1. Providing the needed information and guidance to the advertising

agency and other Services;
2. Then reviewing and approving the completed work before getting
division approval

A Decentralized Advertising Activity is operated and controlled by
individual units located in each major division, usually reporting to a
division head or to a division marketing or sales head. The division
advertising, sales and marketing people and control both the 'what' and
'how' of the advertising job, getting only advice and counsel plus
miscellaneous services from a central advertising function.
In practice, however, it has been found that most companies follow the
centralized pattern of advertising organization. There are at least two
important reasons for it.
1. It is difficult to transfer the tasks of preparation and execution of
creative advertising from to the many without loss of efficiency to a great
extent.
2. Most companies entrust their advertising work to outside agencies
and it is more convenient with them in a centralized way.

Interface with other Departments
Advertising and, therefore the people, manning the advertising

department, do not function in a vacuum. Advertising is a tool of
marketing. It is done to achieve a specified short-term or long term goal.
The advertising staff, therefore, must actively interact with other
departments most importantly, marketing and sales. The interaction
has to be intensive to draw up a coordinated plan, of which advertising
is a part. In fact, not only the advertising department, but also the
outside advertising agency it may have employed, would have to be
actively associated with the formulation of the marketing plan.
In companies, which realize the importance of advertising in its proper

perspective, the advertising department gets useful inputs from sales,
product and brand managers; from Marketing heads, General managers
and top management and also from many others in the engineering and
manufacturing departments who provide valuable advice in respect of
appeals to be focused and also other advertising matters.

Functions of the Advertising Department
Just as the organizational structure of an advertising department varies,

the activity profile also is subject to change from one organization to
another. Kleppner has identified14 activities, which include all the major
functions an advertising department in a manufacturing organization is
supposed to carry out. These are:
1. Determine in consultation with top management the advertising goals,
the advertising budget, and the advertising plan.
2. Help select the advertising agency.
3. Set up a plan of activity, allocating which work is to be done by the
agency and which by the advertiser. Establish with top management the
internal division of such non-commissionable duties as sales promotion,
research and public relations
4. Transmit the policy and problems of management to the agency; keep
it informed of changes in marketing strategies and other related areas.
5. Decide upon the proportion of the appropriation to be assigned to
different tasks in the advertising programme depending upon the
importance of these tasks.
6. Approve the plans for advertisements by the agency and by others who
work on the advertising problems.
7. Prepare, purchase and issue sales material - point-of-purchase
displays and direct mail, including receipts, dealer advertising service,
premiums (unless company has separate premium departments).
8. Prepare, issue and control billing of corporate advertising.
9. Keep the sales force informed of forthcoming advertising.
10. Prepare portfolios of advertising for the salesman's use in showing
advertising to the trade and to other distributors.
11. Work with the sales department in preparing special programmes.
12. Prepare instruction manuals for those who will sell and use the
product; all in all, do everything possible to make the most effective use

of the advertising investment.

13. See that all mail enquiries are answered with mailings as required.
14. See that all bills are properly checked; keep an account of funds and
prepare proper reports for management.
The ad manager in charge of an advertising department has both

managerial and operational functions. He is responsible for interacting
with agencies and the media. He pays attention to outdoor aids. He takes
part in campaign planning and media planning. He frames an ad budget,
and allocates it. He is responsible for broadcast media. He gets POP
prepared. He is the man behind SP and merchandising. He maintains
press relations, and PR functions. He brings out a house-journal. He is
appointed on the basis of his knowledge of advertising and journalism,
his knowledge of the industry, his management background, and his
marketing background. He maintains a good client agency relationship
so essential for the success for the campaigns.

Advertising Agency's Role

Suppose you are a company with a product. It may be a totally
new product. As a company with a product or service to sell, designing
and making that item is only part of the battle. People are not going to
beat a path to your door. You have to seek a channel of communication.
Ad agency need to consider, for example:

• For whom is the product or service designed?
• Who would use it?
• Who is the "target group"?
• What's special about the product? In what way is it distinct?
Unique? Different?
• What's its "position" in relation to other similar products?
• What do you want to convey to the public about your product?
• How should your company contact the public?
• What medium should it use? Radio? TV? Newspapers? Magazines?
Billboards? Bus/subway ads? Direct mail? etc.
• How extensive a region should your company try to cover?
• How often?
Communication and marketing decisions involve specialized expertise.
Many companies that design and produce products or offer services lack
these specific capabilities. This is where advertising agencies fit in.
Advertising agencies exist to help companies to communicate with the
public, Market the company's product.
Company with a
Ad Agency Media Public
product or service

The process of advertising involves considerable specialized knowledge

and expertise
• About people - Their interests, preferences, needs, wants,
lifestyles, expectations
• About media - Their reach, their effectiveness, their specific
appeal
• About the company and its product – And about competing
companies and their products
Services offered by ad agency ;--
Total Advertising Services :Strategic planning, creative development

and media services for advertising, particularly in television, newspapers,
magazines and radio; providing the best creative designed to capture the
imagination of consumers
Marketing Services: Provision of a number of advertising related

services, including sales promotion, market research, PR and event
marketing.
E-Solution Services : e-solution services, including system integration

services, e-business consulting and customer relationship management
(CRM), Search Engine Marketing (SEM) and Search Engine Optimization
(SEO) and e-promotions using the Internet and mobile.
Content Business: Sales of sponsorship, broadcasting and other rights,

and the production and marketing of such media / content as sporting

events, films, TV programs, animated content, music and other forms of

entertainment.
Integrated Media Services : Bringing value to both clients and media-

related companies by offering a wide range of media solution services
Sales Promotion : Providing comprehensive sales promotion planning

designed to complement mass media and other activities
Event Marketing : Assisting clients by providing dynamic vehicles for

their messages in the form of on-the-spot interactive communications
Integrated Branding Services : Assuring clients the highest quality of

branding services for their communication needs
TOP 10 ADVERTISMENT AGENCY OF INDIA

• Adbur Pvt Ltd
• Akshara Advertising
• Mudra communication ltd
• Chaitra Leo Burnett Pvt Ltd
• Contract Advertising (India) Ltd
• Crayons Advertising and Marketing Pvt Ltd
• Creative Advertising
• Enterprise Nexus Communications Pvt. Ltd
• Euro RSCG Advertising Pvt Ltd
• Everest Integrated Communications Limited

The source of an advertising agency’s income:
A manufacturer who operates out of a small and unpretentious office is

often impressed (sometimes unfavorably!) by the obviously furnishings in
the offices of some advertising agencies. Paying for part of the agency’s
overhead, rent, payroll, etc. is naturally going to use up some of the
money he spends for advertising. Should he spend his money through an
agency, or should he spend that money direct and thus save the cost of
the agency’s services?
Questions like these are good questions, but the answer to them is often
not as clear or simple as it seems. In order to answer them, attention
must be focused not on the total costs of advertising agency service but
on the additional costs, if any which the use of an advertising agency will
involve as against the expenditure of the same number of advertising
dollars on a direct basis without agency participation in the expenditure.
The difference is a vital one, because of the nature of historically
established advertising agency compensation methods.
An advertising agency traditionally derives its basic income from “agency

commissions”. Those commissions, for the most part, are paid to the
advertising agency by various advertising media (e.g., newspapers,
magazines, radio or televisions stations or networks, etc). Agency
commissions is usually established at or near the level of 15 per cent of
the “card” or “list” price of the space, time or other facility purchased.
To be sure you understand how the commission is derived, let’s use a

specific example is previously mentioned, a full-page four-colour

advertisement in LIFE cost $39,500. if you as an advertiser brought a

one-page four-colour single insertion in LIFE direct from the publisher
you would be billed the full published rate of $39,000. However, if you
had the ad prepared for you by an advertising agency which placed the
ad with the publisher of LIFE, the agency would be billed for the rate of
$39,000 less 15% agency commission. That commission of $5,925 would
represent the agency’s gross income on the creation and placement of
that single ad. From your viewpoint as an advertiser, the effect of this
compensation method is clear. It would cost you no more dollars out of
your total advertising budget (or appropriation, as it is called), for
advertising space if you used an advertising agency that would if you did
not.
You may well ask: Why should advertising media pay my advertising
agency for services performed by the agency for me, the advertiser? The
answer is buried in the historical development of the advertising agency,
and would require more space here than its relevance to the subject of
this report warrants. What you should remember is that, illogical or not,
that is the basis of most advertising agency compensation generally.
For a more complete picture of the compensation question, we might

note a few exceptions, which introduce added costs to the use of an
agency. Some advertising media (the large direct-mail house, for
example), do not grant advertising-agency commission. If your places
some of your advertising through non-commissionable media, the invoice
which you receive from your agency for such advertising is likely to
consist of two items, each identified. The first is the base cost which
represent the sum, which the agency paid out of its corporate pocket to
the media. The second is an additional figure, representing agency
commission. In that way the agency receives the same relative gross

income from the advertising it places, as it would have received if the

media granted commissions to agencies. It is customary also to add
agency commission to various other non-commissionable expenditures
made by the agency for its advertiser-client, such as the cost of the
engravings used in advertisements (purchased by the agency from a
photo-engraving house), and the cost of the finished artwork from which
those engravings were made.
Some advertisers tend to resist and resent the practice of agencies’

adding an agency commission to non-commissionable items. For
example, the agency may buy artwork, engravings or typographic
composition, or prepare a portfolio for the use of your salesman. Any
activity of that type costs the agency money, in terms of the time and
overhead associated with the activities of skilled and experienced people
in performing such specialized tasks. Agencies pass along the costs
involved by adding an agency commission to the cost incurred, or by
charging a special fee for the service. You should be alert to the
possibility that the fee or commission may be out of the line with the
agency’s costs. You should not, however, expect the agency to provide
such service – on which there is no commission from a media, nor any
other income for the agency to use to offset its costs – without charge.
Such charges are an established trade practice.
Not the vital importance of paying agency commission on all non-

commissionable media. If such expenditures were not commissionable,
the agency would often be in the position of having to choose between
two or more media, with significant difference in the agency’s own
income as one influence on the decision. Since all media expenditure
carry the same commission, whether it is the policy of the media to pay
an agency commission or not, the agency’s decision is influenced only by

its judgment as to what contributes the soundest media approach to

achieving the planned objectives sought by its client.
Agency commission represents gross income,

within which a profit-provision must be made:
It is important to remember that the agency commission, whether paid to
the agency by a media or whether added to the client’s invoice and paid
by the client in the case of non-commissionable media or non-media
advertising expenses, constitutes the gross income and not the net
income of the advertising agency. Out of that gross income, all of the
expenses of operating an agency is typically its payroll account. In
addition to salaries, which often represent as much as half of total
agency expenses, such other items as rent, heat, light, telephone and
telegraph, postage, and travel and entertainment costs must be paid.
There is, in addition, a further “cost” which should be recognized.
An advertising agency, like a manufacturing organization, is in business

to make a profit. An agency can realize a profit only if the total of all its
gross income. The management of an advertisement agency typically
plans for achievement of a planned-for profit margin by the process of
reserving a portion of anticipated income from a given client (on account)
for profit, and budgeting the remainder over various expense items
involved in serving the account. This tendency, to take a “slice off the
top” of total income from an account as profit, differs from the profit-
planning approach of some manufacturing organization. It is rather
general in advertising-agency management.

The amount and quality of advertising service

which you as an advertiser can expect from an
agency depends directly on the size of your total
expenditure ;-
Now to arrive at accurate perspective on what you as an advertiser can
expect, in the way of service, from an advertising agency you hire, let’s
mentally transpose ourselves to the agency’s side of the desk. Assume
that you are the president of an advertisement agency, considering an
account-present or perspective – in terms of how important that account
is to you or would be if you had it, and of how much service you could
afford to give the account if it wore “in the shop”. What criteria do you
use? A very simple one – a rough estimate of the potential gross and net
profit the account would provide.
Suppose that the account in question has a total appropriation, you

estimate, of $100,000. That represents gross income of $15,000. What
would it represent to you in real profit – that is, in net income? Assume
that your agency does its profit – that is, in net income? Assume that
your agency does its profit – planning in the expectation that it will retain
as profit after taxes, 2 per cent of its expenditure. In order to have 2 per
cent after taxes, however, you need about 4 per cent before taxes. Note
that is 4 per cent out of the total of 15 per cent you receive as
commission in other words a little more than on –quarter of the total
amount you receive as commissions you plan (or hope!) to retain as
before-tax profits in order to have about one-eighths of that income as

your after-tax profits. (There are two wide variations in the earnings
ratios of different types of advertising agencies and of different sizes of
advertising agencies. The 4 per cent before taxes – per cent after taxes
figures used are reasonable figures for any agency in the moderate size
range – that is, with total billings in an area from 5 million to 9 million,
and with gross income at about 15 per cent of total billings.).
The purpose of this relatively long example is to make an extremely vital

point. You as an advertiser approach an agency, and discuss with the
principals of that agency the possibility that they may be appointed to
handle your account, which you estimate will total $100,000 a year. If
you appoint them, you will be creating for yourself, in effect, a “service
bank account” in the amount of $11,000 a year. (The $11,000 represents
gross income of $15,000 reduced by profit provision of a $4,000 before-
tax sum.)
You are entitled to know just how much in the way of what kind of
service you will receive for that $11,000. the agency will (or should) tell
you. You should be on guard against being “over sold” – against being
promised $20,000 or $30,000 in service. You know from the above
figures that the only way an agency can deliver that much service on an
account your size, is for the agency to lose a substantial sum of money in
serving you.
As a minor exception to the above comment, we might note that some

agencies – perhaps most agencies – realize little or not profit in the first
year or two that they handle an account. There are substantial non-
recurring costs involved in acquainting the agency team with the
particular problems of the advertiser and his industry. Particularly on an
account, which is estimated to have substantial growth potential, a

deliberate policy of “investment spending” (i.e., spending in service and

in direct costs a sum in excess of commission income) is not unusual.
But mark this well: it is a very different thing for an agency to have a
planned policy of investing in new accounts in the first year or two of
serving them, and for an agency to promise continually to provide more
service than the commissions and/or fees involved can pay for.
While commission income represents the major source of agency

compensation, there is an additional method of working out the agency’s
income from an account, which warrants mention. In some cases, the
cost of preparing a client’s advertising would be far in excess of the
commission income involved. Such a pattern is not usual in the case of
advertisers with multiple product-lines, using a variety of different
specialized business publications. Such publications reach selective
audiences. The circulation of each is far smaller than the multimillion
copy circulation of some consumer publications. The cost of a page of
space (and, therefore, the commission on a page of space) is
correspondingly small. On that type of operation, it is not unusual for
the advertiser and the agency to agree upon a service for handling the
account. Often commissions earned on advertising placed by the agency
are credited against and hence reduce the net fee the advertiser must
pay. The point to note here is that the advertising agency, like the
advertiser, is in business to make profit and is entitled to do so when
soundly managed. If the amount of expense involved in handling a
particular advertiser’s account (including time salaried personnel,
overhead items, etc.) is in excess of the commissions which would be
generated by the amount of advertising in question, the agency is
enlisted to and will typically insist upon a fee in addition to commission
sufficient to reimburse it for its costs and leave a profit for the agency’s
management.

Against the background of these general comments about the nature of

the advertising agency, it would be logical now to move into a
consideration of specific agency types and of factors involved in the
selection of an agency. Before you as an advertiser can discuss
intelligently with an advertising agency whether you are or are not
interested in their services or whether they are or should be interested in
handling your account, it is necessary for you to have in mind at least an
approximate dollar figure which represents a preliminary estimate of the
size of your advertising account.

Chapter-3

Company profile
Mudra communication limited
Introduction;
One client vimal and a 500 sq ft office that was Mudra in the year 1980
They were a small agency tucked away in Ahmedabad with one clearly
Articulated goal to be a top 5 agency .there ambition with an almost
manic obsession by creating the best contemporary advertising that had
our client and other people taking notice
As a young agency operating out of Ahmedabad our growth was driven
helping small business with big ambition explode their brands to the
country at large
With in 9 years they were the largest Indian advertising agency
HISTORY POINTS :-
• Mr.AG Krishnamurthy founded mudra communication on 25th

march 1980

• Mr Krishnamurthy started his advertising career with shilpi

advertising in 1976
• He moved to Reliance Industry as advertising manager 4years later
he founded mudra communication
• Mr Krishnamurthy started mudra with one brand vimal .today
mudra has 125 client this multifold increase is a testy many to his
passion and zeal
• In 1991 he created the mudra institute of communication
Ahmedabad (MICA) the only advertising school of it s kind in Asia
• In 1995 Mr. Krishnamurthy was nominated as advertising person
of the year
PROFILE OF MUDRA COMMUNICATION LTD
Head Mumbai
quarter
Industry Marketing and
advertising
Type Privately held
Status Operating
founded 1980
Sanjay New
Sharma president(North&East0
Company 501-1000 employees
size
Web site www.mudra.com

Members in the management of the mudra

communication ltd
Name Designation
Sebastian Joseph Executive,vicepresident,and head
technology
Mohit Country head,mudra sport
Bhagchandani
Joy deep Vice president and national
dasgupta strategic, planning head
Sonal Jheej Account planner
Present situation of mudra communication;

It was started in 1980 mudra rose to become the 3rd largest agency in the
country. In a short span of nine years. Today the mudra group is one of
the India s leading marketing communication networks
The group utilizes it s deep understanding of consumers brands and
media to deliver creative business solution –A customized and
collaborative approach helps it s client build enduring and profitable
brands
The group offers integrated communication services through it s platform
(1) mudra and DDB
(2) mudra (advertising)
(3) mudra max(integrate communication planning and implementation)
mudra

(4)mudra health and life style(health and life style advertising)

(5)water (brand strategy and design consulting)
In the present year mudra is poised to exceed a turnover in excess of 15

billion at it continues to maintain it s aggressive growth rate.
Mudra is one of the management admired marketing communication
network in the country a highly rated agency both by client and
industry.
Mudra south won the agency of the year at the ad club cochin s paper
awards 2009 10.4.09
Achievements of the mudra communication ltd
*It was a mudra that first gave India double spread colors ads
*it was mudra that first sponsored commercial telecast of a major
sporting event with the India and west Indies series of 1983
*it was mudra that first branded a public issue reliance khazana
*it was mudra that made India s first teleflim Janam
*it was mudra that gave Doordarshan Rajani .The serial that heralded a
new consumer awareness in India
*it was mudra that gave India s it s first academy for advertising .
THE Mudra Institute Of Communication(MICA)
*it is a mudra that gave India s advertising community its first
advertising archives marketing and Advertising Gallery(MAG)
MEMORABLE ADVERTISING

Mudra has created some of the most memorable advertising in India they
are;
1 only vimal
2 I love you rasna
3 my daddy strongest
4Humko binie mangta
5The world in your pocket
6 The mint with the hole

7 Team Samsung
8 McDonalds mein hai kuch baat
9 Kar lo duniya muthi mein
Services: Services are provided by the organization

1 Mudra is a today the largest Indian advertising agency .it s meteoric

growth has been driven by some epochal work mudra has created some
of most memorable advertising like
1 Only vimal
2 I love you rasna
3 my daddy strongest
4Humko binie mangta
5The world in your pocket
Today it handles over 125 client nationally .though it s four independent

units they are;
1 Mudra Mumbai
2 Mudra South (including Bangalore Chennai cochin)
3 Mudra north Ahmedabad
4 Mudra north and east (including Delhi and kolkata)
Mudra often the entire spectrum of brand communication competency

ranging from strategic planning brand management creative,
Mudra is also one of the few agency networks in the country that offers a
comprehensive suit of marketing services under one umbrella .these are
supported by the largest national network among all agency.
2 Mudra health and life style (MHL);

It is specialize in the emerging common needs of the health core

industry marrying in-depth understanding of the medical business with
refreshing consumer doctor and channel insight it is uniquely positioned
to address .the common requirement of the health and life style space
MHL also has a strong track record in the domain of social common and
pharmaceutical brand promotion.
Mudra health and life style client included J&J medical buyer Bistol –
Myers Squibb, Alembic, Unicef & USV among others.

CLIENTS
1. Paros pharmaceuticals
2. Reliance communication
3. Union bank of India
4. Life Insurance Cooperation of India
5. Godrej
6. The Philips
7. Hindustan unilever ltd.
8. Pepsi
9. Jet air ways
10. Reliance ADAG
11.Spice telecom
12.ICI points
13.Union bank of India
14.Amrutanjan
AWARDS

Mudra communication ltd. has got national and

international awards.
1. International awards- Number of award-230 like Connes,
D&AD, Clio, One show, Ad fest, communication arts, New York
festivals and others
2. National awards – Number of awards-825 like Abby, CAG, Ad

clubs, AAAI show case of India advertising and others
3. Agency of the year 8 times – Mudra founder A.G. Krishna

Murty has been honored multi times including
• Calcutta Ad club Hall of fame
• A&M Ad person of the year
• Media international one of the international Ad industry
1998
• AAAI premnrayon award recognition of pioneering spirit and
entrepreneurial vision
• Mudra south agency of the year at paper award and the Ad
club Cochin.
SWOT Analysis of mudra communication

Strength
- Satisfying the need of the customers
- Meeting up the client requirements in time
- Innovative & creative in advertisement segment
- Quality in advertisement
- Global exposure with higher rewards & appreciation
- Efficient team working environment
Weakness
- Pricing strategy
- Lack in promotion strategies towards increasing the brand name.
Opportunities
- Entering in global market to attract global clients
- Being the oldest advertising agency in India, it brand among its

clients- they have lot of client coming back with new product for
getting advertised.
- In its successful journey, they lot of wonderful memorbal

advertisement done by them- this has increased there brand image
in the Indian market.

Threats
- Challenging stiff competition from its competitor’s from both

domestic & international levels.
- Changes in the taste & preferences of clients.
- Lack of creative minds & also too expensive in overall

management.
Competitors of the mudra communication;
AGENCY PLACE
Adbur Pvt Ltd Ghaziabad
Akshara Advertising New Delhi
Ambience D’Arcy Mumbai
Chaitra Leo Burnett Mumbai -

Pvt Ltd
Conclusion:

In today’s world which is fast moving & dynamic, people’s wants,

need and desires are changing; it’s very important to know them and give
them what they want. This is the main objective of advertising where ad
agency plays major role in market research, making of creative,
launching it in the market, taking the feedback of consumer and making
any product famous and acceptable among consumers. Ad agencies are
playing an important role in shaping present and future of not just
selected brand but of entire company.
There is no one -- sure-fire -- best way to advertise your product or

service. It is important to explore the various advertising media and
select those which will most effectively convey your message to your
customers in a cost-efficient manner. Always to be remember,
advertising is an investment in the future of your business.
Ad agency is service industry it is growing very fast .talented people are

hired and they are showing there creativity ability .the ad agency are
providing services to the branded company carrying there advertisement
campaign most effectively.
They know how to attract the consumers .from one side agency are very
costly they are charging more money for the advertisement campaign.
On other side it is useful to the company .the ad agency can launch the
company product in better way.
I think ad agency are playing key role in-increasing the brand &
performance of a product or services of a company
Thank to ad agencies contribution for changing our world of dreams &
desire.

Bibliography-
Marketing management by Philip kotler

Advertising principle practice by Burnett wells Mariraty
www.google.com
www.india advertising agency.com
www.yahoo.com
www.msn.com

ANNEXURE




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ADVERTISING AGENCY OF INDIA

SIDVIN SCHOOL OF BUSINESS, BANGALORE 1

Advertising is a form of communication whose purpose is to inform potential

Advertising, in its non-commercial guise, is a powerful educational tool capable

SIDVIN SCHOOL OF BUSINESS, BANGALORE 2

and in-store public address systems. Advertisements are usually placed

Meaning - Advertising is the promotion of a company’s products and services

SIDVIN SCHOOL OF BUSINESS, BANGALORE 3

• Increasing the sales of the product/service

Definition; One definition of advertising is: "Advertising is the nonpersonal

*Advertising - A paid, mediated, form of communication from an identifiable

SIDVIN SCHOOL OF BUSINESS, BANGALORE 4

Print Advertising – Newspapers, Magazines, Brochures, Fliers

Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events

Outdoor advertising is also a very popular form of advertising, which makes

SIDVIN SCHOOL OF BUSINESS, BANGALORE 5

Broadcast advertising – Television, Radio and the Internet

Broadcast advertising is a very popular advertising medium that constitutes of

Covert Advertising – Advertising in Movies

Covert advertising is a unique kind of advertising in which a product or a

Surrogate Advertising – Advertising Indirectly

Surrogate advertising is prominently seen in cases where advertising a

SIDVIN SCHOOL OF BUSINESS, BANGALORE 6

particular product is banned by law. Advertisement for products like cigarettes

Public Service Advertising – Advertising for Social Causes

Public service advertising is a technique that makes use of advertising as an

SIDVIN SCHOOL OF BUSINESS, BANGALORE 7

consist of all sorts of advertising including, television ads or even print

The features of advertising

1. the fact that it is ‘a paid form’ of presentation emphasis’s that advertising

5identified sponsor refers to the identification of the brand or the advertiser

In every walk of business and industrial activities, there is a throat-cut

SIDVIN SCHOOL OF BUSINESS, BANGALORE 8

• Helps in Creation of demand for new products

• Increases the rate of turnover of stock.

• Provides knowledge of new products

SIDVIN SCHOOL OF BUSINESS, BANGALORE 9

• Increase in the standard of living

· Makes the introduction of new products easy

· Reduces sales efforts

· Establish good and permanent contact with the customers

· Helps in weighing the effectiveness of advertising.

· Creates more employment opportunities

· Increases standard of living

· Encourages healthy competition

· Encourages research and development

· Helpful in industrial progress and prosperity

· Encourages art and designing

1. To differentiate the product from their competitors

SIDVIN SCHOOL OF BUSINESS, BANGALORE 10

2. To communicate product information

3. To urge product used

4. To expand the product distribution

5. Too increase brand preference and loyalty

6. To reduce overall sales cost

7. Creates new demands

1. Differentiate the product from their competitors :

An important function of advertising is the identification function, that is, to

The identification function of advertising includes the ability of advertising to

1. leveraging the brand,

2. Communicate product information

SIDVIN SCHOOL OF BUSINESS, BANGALORE 11