Advertisement:

Any paid form of non-personal

presentation and promotion of
ideas, goods or services by
an identified sponsor.
Advertisement can drive awareness of
something new and without previous
knowledge.
Advertising informs people about the
availability of rationally desirable new products
and services and improvements in existing
ones, helping them to make informed, prudent
consumer decisions, contributing to efficiency
and the lowering of prices, and stimulating
economic progress through the expansion of
business and trade. All of this can contribute to
the creation of new jobs, higher incomes and a
more decent and humane way of life.
Rules and regulations
The Advertising Standards Council of India
(ASCI), established in 1985, monitors and ensures
the protection of the interests of consumers.
No advertisement should violate the ASCI code of
self-regulation in advertising.
Standards Of Conduct
Advertising is an important and legitimate means
for the seller to awaken interest in his products.
The success of advertising depends on public
confidence. Hence no practice is permitted which
tends to impair this confidence.
Advantage in unprofitable
times.
Advertising during a sluggish economy
clearly creates a competitive advantage,
according to the study, with a majority of
executives agreeing that seeing a company
advertise during slower times makes them
feel more positive about the companys
commitment to its products and services.
But perhaps most important is staying at
the top of buyers minds when purchase
decisions are made.
Types of advertisements:
On economic basis advertisements can be
classified into two types.

Commercial Advertisements.
Product oriented.
Image advertising.
Public Service Advertisements/Non-
Commercial Advertisements.

Commercial
Advertisements:
Advertising that involves commercial
interests rather than advocating a social
or political cause.

These are designed in such a way as to
compete with the competition of the
market by attracting the consumers.

Public Service
Advertising:
Welfare / informational advertising.
A public service advertisement (PSA)
or public service ad is a type
of advertisement featured on television,
radio, print or other media. Whereas the
objective of a standard advertisement is to
market a product, a PSA is intended to
change the public interest, by raising
awareness of an issue, affecting public
attitudes, and potentially stimulating action.
Differentiation in commercial
advertisements.
Well established: These constitute the
companies which were already well-
settled in the respective fields. They
have a reputation and needs no
introduction.

New product introduction: These constitute the
companies which introduce a new product in the
market. The companies may be new or
established. The advantages in this is that there is
no competition. It may be a disadvantage if there
is no demand for the product.

New companies entering existing market:
These consists of new startups producing
products similar to existing products in market .
The contents of the adds:
Well established companies: These companies
posses a brand name which identifies it. They
have a reputation which describes the quality of
the product. Their goal is to uphold or develop
their sales further.
Their adds mainly focus on the brand name,
quality, consumer satisfaction etc.
Example: Nokia, Colgate, TATA etc.
New product Introduction (NPI).
The major advantage is the lack of competition.
The disadvantage is lack of existing demand.
Their goal is to create a demand for the product.
When a new product is introduced by a reputed
company it is usually received by the consumer.
The expectations of the product are usually high.
When a new product is introduced by a new
company. There is a need for extensive publicity.
The new companies advertise by borrowed
reputation. E.g. Celebrity branding.

Celebrity branding: This type of advertising which
focuses upon using celebrity power, fame, money,
popularity to gain recognition for their products and
promote specific stores or products. Advertisers often
advertise their products, for example, when celebrities
share their favourite products or wear clothes by
specific brands or designers. Celebrities are often
involved in advertising campaigns such as television
or print adverts to advertise specific or general
products. The use of celebrities to endorse a brand
can have its downsides, however. One mistake by a
celebrity can be detrimental to the public relations of a
brand.
Micromax is a telecommunications company
based in Gurgaon, Haryana, India.
One of the first to introduce Dual Sim phones in
India.
Micromax has presently endorsed
famous Bollywood actor Akshay Kumar as its
brand ambassador. According to Micromax, he is
able to establish instant connection with the target
group or masses.

Joining the existing competitive
market.

When a new company markets an existing product
it faces a stiff competition from the existing
companies.
To compete they try to show variations in their
product and implement various offers.
Example: telecom companies like G- five, Karbonn
mobiles etc.
TREND SETTING
The initiating or popularizing of a trend
or fashion is trend setting.

A market trend is a putative tendency of
a financial market to move in a particular
direction over time.
The extent to which ads can influence economy
depends on the goal in publishing it.

Ads advertising on new products have the
potential of greater influence.

Heavy competition sometimes calls for extreme
measures to increase the demand of a product
making it a false necessity
Areas of Influence
Telecom sector: With a subscriber base of more
than 851 million, the Mobile telecommunications
system in India is the second largest in the world
and it was thrown open to private players in the
1990s.
Due to stiff competition among the mobile
manufactures and among the service providers
there is considerable decrease in the service
charges in an attempt to attract customers.

Mobile Tariffs in India one of the Lowest
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These coupled with the low tariff rates on mobiles
in India helped in the growth of this sector.

The total revenue in the telecom service sector
was 86,720 crore (US$19.3 billion) in 2005-06 as
against 71,674 crore (US$16 billion) in 2004-2005,
registering a growth of 21%.
Though intended for commercial activity
advertisements can directly and in directly
influence economy.
Advertising can be a useful tool for sustaining
honest and ethically responsible competition that
contributes to economic growth in the service of
authentic human development.