Advertising in Indian Economy

Topics: Advertising, Advertising agency, Economic growth Pages: 5 (1937 words) Published: September 17, 2010

Advertising is attempting to influence the buying behavior of the customers or clients by providing a persuasive selling message about your products and/or services. Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is focused on one particular product or service. Thus, an advertising plan for one product might be very different than that for another product. Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc. Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of advertising, sales and public relations are often considered aspects of promotions. One of the purposes of advertising is to stimulate demand for a product, service, or idea. Other factors influencing demand are price and substitutability. A major way advertising may stimulate demand is to create a brand franchise for a product. When enough brand equity is created that the brand has the ability to draw buyers (even without further advertising), it is said to have brand franchise. The ultimate brand franchise is when the brand is so prevalent in people's mind (called mind share), that it is used to describe the whole category of products A brand franchise can be established to a greater or lesser degree depending on product and market.

With the dawn of the internet has come many new advertising opportunities. Popup ads, Flash ads, Banner ads, and email ads (often a form of SPAM) abound. What the advertising community is just recently beginning to do is making the ads themselves desirable to the public. Advertising strategy has taken a quantum leap beyond just salesmanship of a product in print. It is like a kaleidoscope. Ever time you turn it you get a different perspective alluring, diverse and genuine. The knack of persuasion in advertising is unleashed but advertising has always been adept to changes with time. It is largely reliant on human inferential abilities. Hence the main goal is not just to inform or persuade but also to establish interactive personal solidarity relationship with the consumers as consumers have been seeing visible and tangible improvement in their lives each passing year. Over a period of time, advertising is undergoing morphing changes slowing and steadily with multi facet approach.

The Indian marketing & advertising sector have shown a tremendous growth since the early 90’s with several progressive plans implemented by the Indian government. The government then decided to open the Indian market for foreign investors and allowed foreign equity. That paved the way for the opening the floodgates of the boom in these sectors which is still shining high. Many of the Indian Advertising companies are earning their deserved name and fame by being conferred with the honor of market-leaders and several others are on an emulating spree to achieve the feat of their peers. The current growth of 18-20 per cent in ADVERTISING is among one of the highest among various industries in India. Nowadays famed global agencies are getting attracted towards the growing Indian market and the Indian economy is slowly but steadily opening its doors to World market capitalism. The 10000-crore ADVERTISING industry accounts for about 33 percent of the total industry profits in the Asia-Pacific belt.

India economy, the third largest economy in the world, in terms of purchasing power, is going to touch new heights in coming years. As predicted by Goldman Sachs, the Global Investment Bank, by 2035 India would be the third largest economy of the world just after US and China. It will grow to 60% of size of the US economy. This booming economy of today has to pass through many phases before it can achieve the current milestone of...
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