Services Marketing

Chapter 28 : Professional Services Marketing - (IT Services, Consultancy, Healthcare, Advertising & Retailing Industries)

Advertising Services

Evolution of the Advertising Industry Segmentation & Marketing Strategy

Marketing Mix

Product People
Place Process Promotion Price Physical Evidence

Advertising Industry in India

Section Summary - Advertising Services

The advertising industry is dependent on the economy and business cycle. Advertising has invaded almost every sector of the industry today. To survive, the agencies need to differentiate their products/services from each other. Advertising helps an organization create awareness of its products/services and their benefits among the target segment. Advertising has gained importance in India, with increased globalization and competition.

Advertising originated thousands of years ago, though it evolved as a commercial industry only a few decades ago. The Industrial Revolution and the invention of radio and television played a catalytic role in the emergence of advertisement as a major service industry. The emergence of an educated middle class compelled the trading section to develop brand identities to set apart their products from those of competitors.

More and more businessmen rely on advertising to create and maintain mass appeal for their products.
Many advertising agencies are moving towards becoming a 'one-stop communication solution' or 'full-service advertising agency' by diversifying into allied fields such as market research, packaging design, direct and test marketing, merchandising, event management, public relations, media planning, media buying etc.

The Advertising Industry is in its infancy in India. With the entry of MNCs and globalization, Indian ad agencies have been forced to reposition themselves while enjoying growth prospects. The major problems faced by the industry in India are availability of human resources, positioning of the industry, size of the industry and compensation for services.

Retailing Industry »