Everyone is familiar with the term advertisement. In today’s world, advertisement is considered the most vital promotional tool. This term paper is going to focus on advertisement as a television commercial. Television is a very popular media by which a product or service can be introduced to the customer through . Target group of this topic obviously the mass people who are suppose to be influenced through advertisement.
When a company introduces an advertisement, its motto is to increase sales volume in the market. The term paper focuses on how an advertisement starts and how it comes to an end through commercialization. It includes the role of company’s branding department, ad-firm and TV channels marketing team. It also highlights post advertisement feedback and advertisement in present age.
There are many ways of advertising a product or service, Television commercial is one of them. In present age, advertisement and television are part and parcel of each other. Electronic media has been explored in a great range by the help of advertisement. Advertisement also comes out with a huge success by using the popularity of this media. Advertisement means a public promotion of any product or service. In today’s world, advertising is considered most vital promotional tool.
According to Philip Kotler, “Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified person.” If we look at the history we come to know that, the very first television ad appeared on July 1, 1941 during a baseball game on a local New York channel. It was a 10-second ad which advertised Bulova watches and cost only four dollars; it completely revolutionized television! Because of the huge success of Bulova advertisement, other companies started to realize that they also needed advertisement of their product or service as a new marketing technique.
Businesses like Gimbel’s Department Store, Pan American World Airways, Firestone Tire, and Botany Worsted Mills advertised on television shortly. Television’s spreading popularity influenced the formation of the American Association of Advertising Agencies (AAAA) to generate commercials. During that period, television popularity was so high which results in even the movie studios feared that television would dominate all other media! (Source: internet) Advertising objectives consists of three major factors. These are – 1. To inform,
2. To persuade and
3. To remind.
In this term paper our focus is to highlight the starts to ends procedure of advertisement which includes the role of company’s branding department, role of ad-firm and role of TV channels marketing team. We also mention the advertisement in present age.
Advertising is the most popular and effective way to communicate with the customer. A company usually makes advertisement of its product or service in order to increase sales volume. Through advertisement a company can attract the target group. Advertisement also helps to improve a company’s brand image. A brand image is an attitude people have about a product or service, an attitude carefully developed and nurtured by advertising.
In the chapter ‘Advertising and Public Relations’ the author states that, Although advertising is used mostly by business firms, a wide range of non-profit organizations, professionals, and social agencies also use advertising to promote their causes to various target publics. In fact, the 34th largest advertising spender in the world is a non-profit organization – the U.S. government. (P-364)
When a company introduces a product or service in the market through the advertisement obviously its target group is the consumer. A company always tries to design advertisement to attract the target customer based on their interest. A target audience can be formed of people of geographic, demographic, psychographic or behavioral segmentation.
ROLE OF COMPANY’S BRANDING DEPARTMENT
A company’s branding department has the responsibilities about all media affairs. Consulting with the top management, branding department set the company’s annual promotional budget. In most of the cases, advertisement as a television commercial gets the maximum preference. Advertising budget is a very sensitive issue for a company. A company doesn’t make this information available.
A brand’s advertising budget often depends on its stage in the product life cycle. For example, new products usually require maximum advertising budget to inform people and persuade them for trial. In contrast, mature brands typically need lower advertising budgets as a ratio to sells. Market share also impacts the advertising budget. When we went to IGLOO, we found the similar things.
We talked with Ms. Ishrat and she informed us that company’s policy doesn’t support to explore advertisement budget. After taking decisions about advertisement and its budget, branding department watches the show-rill of ad-firms. Then it arranges a PPM (pre-production meeting) where it discusses different technical and financial issues with the ad-firms.
Image: Igloo Ice-cream
ROLE OF AD-FIRMS
An advertising agency or ad-firm is a service business dedicated to creating, planning, and handling advertising for its clients. An ad agency is independent from the client. It 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. Mr. Tridib Barman told us that, Creativity is the main object of an ad-firm.
An ad-firm’s creative services make the difference between successful and unsuccessful advertising. Mr. Wainwright said that, “television commercials offer the finest form of product demonstration.” To make a successful advertisement creative ideas are the prerequisite. “Ideas are the elusive ‘magic’ which can make commercials great selling vehicles”- he added.
Image: Vodafone’s advertisement
If we look at the advertisement of Vodafone (one of the leading telecom company in India), we see the success of that particular advertisements based on alien which is a brilliant example of creative concept. These advertisements highly influenced its target customers. Ms. Ishrat informed us about the activities of ad-firm. Till now Igloo worked with two ad-firms.
These are – “Expression” which is owned by Tropa Majumder and “Ad-com” which is owned by Geete Ara Safia Chowdhury. Igloo introduced 3 TVC in last two years. After finalize the budget branding dept. discusses with ad-firm. Both of them try to come up with a mutually agreed solution and in one stage they lock the project. Ad-firm use different moods like – emotion, romance, sadness, pleasure in advertisement as a part of creative strategy.
ROLE OF TV CHANNEL’S MARKETING TEAM
Advertisement is the main source of income for the TV channels. Marketing team of a TV channel has the responsibilities to collect commercials. There is a vice versa relationship between ad-firm and TV channel’s marketing team. Generally, marketing team collects commercials from ad-agencies. Ad-agencies maintain a formal dealing with TV channels. Sometimes ad-agencies contact with different TV channels based on the priority of the particular company.
There is another way to commercialize an advertisement. A company can directly contact with different TV channels to promote its advertisement without the involvement of ad-agency. Igloo follows the strategy to connect directly with the TV channels. We asked why they contact directly without involving ad-agency. Ms. Ishrat replied, as a national company they don’t have too much promotional budget and if they go through ad-agencies there might be an additional charge for them. “Present branding team of Igloo also has a strong connectivity with different TV channels which inspires to take such decision” – she added.
Mr. Suranjit Sinha informed us that, there are fluctuations in rates of advertisement for different slots. A company has to decide which slot it wants to target. Usually rate is high in pick hours, before the news or programme. Igloo generally promotes its advertisement as an occasion based like – Eid-ul-fitr, Valentine’s Day, and New Year etc. It provides advertisement in ntv, Banglavision, desh tv, channel i, channel 24 and maasranga television.
(Source: Marketing department, desh tv)
Rates for Spot Advertisement in ATN Bangla.
Peak Hour 5-00 PM to 1-00 AM.
Middle Break in Drama/ Program
Middle Break in Drama/ Program
Pop-Up in Drama/Film
Minimum Every 5 Sec. Pop-Up Rate Tk.3,500i.e. Tk. 42,000 for per 60 Sec.
(Source: ATN Bangla website)
POST ADVERTISEMENT FEEDBACK
Feedback is the main aspect for a company after the advertisement in electronic media. Almost in every cases outcome is positive. If the advertisement is more innovative, response also so high. After the advertisement of Igloo response was very much positive for its various products like – vanilla, chawkbar, single Sunday, double Sunday, cake etc. Couple of months ago, Igloo introduced an advertisement for its latest product “Nawabi Mithai” produced by Aapon Hasan (COO, Expression ad-firm). Response was so good for that particular product.
ADVERTISEMENT IN PRESENT AGE
Different business as well as social organizations now highly uses advertisement as television commercial. Organizations have to pay much than the past because of increasing commercial rate. U.S. advertisers now run up an estimated annual
advertising bill of more than $290 billion; worldwide ad spending exceeds an estimated $604 billion. Procter & Gamble, the world’s largest advertiser, last year spent $5.2 billion on U.S. advertising and $8.5 billion worldwide, followed by Unilever, with an ad spend of $4.5 billion. (P-363-364)
After analyzing all the factors we see that, day by day various organizations are giving more emphasis on advertisement. It’s really a hard working process for company’s branding dept., ad-firm and TV channels marketing team. An advertisement starts and comes to an end through the combined activities and co-operations between all of them. To cope up with the modern world nature of advertising also changing day by day.
Jewler A. J. (1985), “Creative strategy in Advertising”, (2nd ed.) Wadsworth Publishing Company Wainwright C. A. (1970), “Television Commercials”, NY:HASTINGS HOUSE PUBLISHERS Kotler P., Armstrong G., Agnihotri P. Y., Haque E. U. (2011), “Principles of Marketing”, 13th ed. (363-366) Pearson Publication Web links: http://www.qualitylogoproducts.com/lib/history-of-tv-ads.htm#ixzz2EEq2b2I8 http://en.wikipedia.org/wiki/Television_advertisement Websites: www.atnbangla.tv
Ms. Ishrat Zahan (Sr. Executive, Brand), Igloo
Mr. Tridib Kumar Barman (Producer, Program), Channel 9
Mr. Suranjit Sinha (Manager, Marketing & Sales), desh tv