CHARACTERISTICS OF SERVICES APPLICABLE IN ADVERTSING INDUSTRY

1. PRESENTED BY
AEGIDIUS SAVIO MONDOL
ANUSHREE MAZUMDAR
CYRIL VICTOR
POUSALI MUKHERJEE
PRABAR RAKSHIT
RANJEET SINGH
SUMAN KUMAR DEY
SUSHMITA MUKHERJEE

3. • Advertising is multidimensional. It is a form of mass communication, a
powerful marketing tool, a component of the economic system
• Advertising in India was pioneered by Dattaram and Company in 1905
from Girgaon, an area in Mumbai.
• The Indian advertising industry has evolved from being a small-scale
business to a full-fledged industry.
• Indian Advertising today handles both national and international
projects.
• Keeping in mind this situation, the rate at which the advertising
agencies are growing the industry is expected to witness a major boom
in the times ahead

5. Overall Industry
size (INR Billion)
2007 2008 2009 2010 2011 2012
Television 211 241 257 297 341 389
Print 160 172 175 193 211 231
Film 93 104 89 83 91 98
Radio 7 8 8 10 12 15
Music 7 7 8 9 9 11
Out of Home 14 16 14 17 19 22
Animation and VFX 14 17 20 24 28 33
Gaming 4 7 8 10 13 17
Digital Advertising 4 6 8 10 13 18
Total 516 579 587 652 738 834
Source: KPMG analysis and industry interviews [FICCI-KPMG Report 2012]

6. Sources: Industry estimates and PwC analysis

7.  OGILVY AND MATHEW LIMITED -
SBI mutual fund, Pantaloons fashion India limited, Hindustan
Unilever Limited, UTI, ITC Limited, Tata Communications TVS
Suzuki etc.
 J WALTER THOMPSON INDIA - :
Apollo Hospital, Indian Army, Indian Navy, Star TV Network, Hero
Motor Corp, Timex Watches, Parle agro, ESPN etc.
 MUDRA COMMUNICATION PRIVATE LIMITED- :
Indian Express, Godrej Foods, Indian tourism, Honda Siel Power,
Hindustan Motors Limited, Satyam Computers Service Limited etc.
 GREY WORLDWIDE (I) PVT LIMITED-
General Motors, Oracle India, Britannia Industries, The Hindustan
Times, ITC Foods, Philips Communications etc.

8.  LEO BURNETT INDIA PVT LIMITED-
Birla Sun Life Insurance, La Opala, Somany Tiles, Bajaj Electricals, Linc
Pen and Plastic, Fiat Auto etc.
 CONTRACT ADVERTISING INDIA LIMITED- Bajaj limited, Sony
India, Grasim Industries, M.P.Jewellers, Luxor, Cadbury India, Dabur
Foods etc.
 REDIFFUSION DY&R- Tata Tetley, ING Vyasa, Haldia Petrochemicals,
Ericsson Mobiles, Godfrey Philips, Citi Bank, Sail, Cannon etc.
 McCANN ERICKSON INDIA LIMITED- Gillette India, Times Fm,
Cocacola, Nestle, TVS Suzuki, Khaitan, Johnson and Johnson India,
Goodyear India etc.
 RK SWAMY/BBDO ADVERTISING INDIA LIMITED-Mercedes Benz,
Cisco Group, Wipro Group, MTNL, VISA International, GE Countrywide
etc.

10. INTANGIBILITY:
 The entire service process is intangible.
 One needs to experience an ad as he cannot touch so.
 Pricing is complex in this case.
 The service cannot be readily displayed or communicated.
 Difficult to determine the quality of the service immediately.
INSEPARABILITY:
 Advertisement services are first created and then used.
 Interaction between the business client and the service provider is of
utmost importance in this particular industry.
 Mass production does not take place in this kind of industry.
 Customization is done in the advertising agency.
 Both employees and the customer affects the service outcome

11. HETEROGENITY:
 Same sort of advertising service may not be delivered every
time.
 Service varies from employee to employee.
 Service depends upon the requirements and needs of the
client.
 Different people prefer different tools of advertisements.
PERISHABILITY:
 An advertisement cannot be stored.
 It is prepared for the present use.
 It cannot be resold.
 It cannot be returned back to the producer if it fails to create
an impact.

13. PRODUCT
 Services rendered by advertising industry are generally intangible in nature.
 The clients have to be present in order to avail the services provided by an advertising agency
because they need to make face to face interactions.
PRICE
 Pricing depends on which kind of service company needs and how many times it will be
necessary to achieve the work.
PLACE
 Place in advertising agency includes not only the place of delivery but also the
various channels of delivery too

14. PROMOTION
 Promotion in an advertising industry mainly includes presentations.
 Various kinds events are also organized as well as campaigns are organized
for promotions
PEOPLE
 In an advertising industry people refer to the employees who are working in
this particular industry. Employees comprise of creative director, creative
manager, copywritersVisualizers, Skilled labors
Graphic designers.
 People not only include employees it also consists of the clients who are
receiving the service from this industry.

15. Introduction of our services to the client
Client briefing about product/service
Brief discussion with creative director
Media work begins

16. Creative work begins
Proposal presented to the client
Discussion with brand team
Client’s approval
Printing and output presented to the client
Final display of ad campaign

17. PHYSICAL EVIDENCE
In advertising industry physical evidence can be the corporate offices, their
visiting cards or cd’s which they mainly provide to their clients.

18. MENTAL STIMULUS PROCESSING
 Ethical standards required when customers who
depend on such services can potentially be
manipulated by suppliers
 Physical presence of recipients not required

20. Thank you