A Project Report

On “Advertising & Trends in On-Line advertising”

For “Mona Advertising”

By

Ms Ashvini Shah

Under the Guidance of

Prof.Sunil Doke

Submitted To

Pune UniversityIn partial fulfillment of the requirement for the award of the degree of

Masters in Business Administration

Through

Vishwakarma Institute of Management

Pune-48

1

Chapter 1

Executive summary

2

Chapter 2

Company Profile

3

Chapter 3

Objective of the study

4

Chapter 4

Research Methodology

5

Chapter 5

Data analysis

6

Chapter 6

Findings

7

Chapter 7

Limitations

8

Chapter 8

9

Suggestions & conclusions

Chapter 9

10

Bibliography

11

Acknowledgement

I express great pleasure in introducing my project report titled “Advertising and Trends in

Online Advertising”.

I take this opportunity to express my most sincere and heartfelt gratitude to Mr. Rahul

Shiledar (President) and Mrs. Shubhangi Sapre (Senior Marketing Executive), Mona

Advertising, Pune, for providing me with a wonderful opportunity to execute this project

in their esteemed organization and for patiently monitoring and guiding me throughout

the project.

This project would not have been successful without the precious guidance of our

director Prof. Sharad Joshi and my project guide Prof. Sunil Doke, to whom I express

my sincere gratitude and all those who have helped me directly and indirectly in the

successful completion of my project.

I would also like to thank my parents and friends for their support.

Ashvini Shah

12

List of Abbreviations

Cdr file:- coral draw file format

Pdf file:- acrobat reader file format

Ads: - advertisements

13

List of technical terms

1. Brief: - the idea of the ad in short

2. Creatives:-the artwork or the ad prepared by the artist

3. Calligraphy: - a form of handwriting that is very attractive

4. Coral draw: - it is a computer software used by the artists to make the ads

5. Release order: - it is a document that is sent to the publisher that contains

the details of the ads such as the dates on which the ad is to appear, its size,

its position and if it is color or black & white and also the rate and amount.

14

Index

SR.NO. TITLE PAGE NO.

01 Executive Summary 1-3

02 Company Profile 4-9

03 Objectives of the Study 10-12

04 Research Methodology 13-34

05 Data Analysis 35-41

06 Findings 42

07 Suggestions & Conclusions 43-44

08 Limitations 45

09 Bibliography 46

15

Advertising is a form of mass communication, a powerful marketing tool which

can make firms and brands, leaders in the market provided they have just the

product or services that are required in the market. It is an important element of

the marketing mix. It is a paid form of mass communication that can be traced to

an identified sponsor.

Advertising is not as same as publicity although the latter is also a tool of mass

communication. Publicity is an unpaid form of mass communication and its

sponsor is not easily identified. Over the years advertising has grown from being

just another marketing mix to a key strategic input in brand building and image

creation.

Definition:-

“Advertising is any form of non personal presentation of goods, services or ideas

for action, openly paid for by an identified sponsor.”

Today we are exposed to a larger number of commercial messages than any time

in the past. Newspapers and magazines are full of advertisements. Not only has the

quantity increased but the quality also has improved considerably over the past

decade.

Today we not only have print advertisements but also ads on the radio, the

television, hoardings, and now on the internet.

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A new trend has taken the advertising scenario by storm and that is on line

advertising. The percentage of people accessing the net today in India has reached

100 million and the number is growing by the minute.

On line transactions have doubled and more and more people are using the net to

access information regarding various products and services.

We shall have a brief introduction on internet and the statistics for Internet usage

in India and its future prospects. We will also examine the scenario today where

on line advertising is concerned. We shall see the types of ads that are seen on

line.

This project was carried out in Mona Advertising Agency which is one of the

oldest and the finest advertising agency in Pune. This project tries to give an

overall view of how the work is carried out in an advertising agency today.

Through this project report we will try to understand what goes on in the agency

and how does the process of ad making occur. We shall also see the various types

of ads and a brief introduction to them. Through this project I have tried to give an

idea of what an advertising agency really does. Today the role of the agency is not

only to make ads and publish them but at times it also has to carry out the market

surveys and at times advise the client on the kind of media plan that they should

follow to get maximum results. They also at times have to collect the feedback

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analyze it and make further recommendations to the client regarding the next step

that they should take.

During this project I have found that the major problem that the agencies face

today is that of collections. The clients are not regular in terms of making

payments but at the same time are very particular when it comes to the ad that the

agency is making for them.

Based on this I have made a few recommendations which if put in action should

help the agency to overcome the collection problem.

This project work will also shed light on the current trends in on-line advertising

and try to examine the future prospects in the same.

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For 3 decades Mona advertising has survived in a business which gives sleepless

nights, hyper tension & ulcers. To exist in such environs it is a feat. To do it

successfully calls for rare tenacity and a constant need to reinvent you. From

humble beginnings of local shop promotions to corporate success stories on a

national level, Mona ads has always strived to keep the clients interests at the

foremost. Creating campaigns not only recognized for creative, but affording the

client that elusive element which every marketing person desires, The Turnover.

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Established in 1973

A Powerhouse of Creative Ideas

360° Communication Solutions

Establishing Brands across India

Re-Defining Creativity

Creativity – it is the most frequently used word in the advertising world. Many

appreciate its value, a few understand it & fewer still practice it. Awards,

accolades & laurels do add to its luster but the best reward for creativity is an

appreciative client. The experience of Mona in the field of successful advertising

has motivated it to set definite parameters for the creative process such as:

A studied analysis of the clients needs.

The efficacy of the creative solution.

Time bound delivery of the solution.

These three maxims have proven to be the perfect guidelines to keep on creating

higher standards of efficient advertising that works in the interest of the client

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Re-Organizing the Work Place

The work place has totally redefined the office of yester years. It has become

synonymous with a place where a person thinks and creates. It provides the ideal

environment where people can nurture ideas and enhance their own productivity.

It is this creation of the inner space that fuels the dynamism and efficiency at

which the agency approaches their subject. Centrally located work place, which

houses the creative studio, media department, client servicing, production,

accounts and administration.

State of the art infrastructural facility, total computerization, telecom linkages,

email, faxes lends the work place of Mona the technological edge needed in

today’s fast paced environment.

Re-Engineering People:

The team- the nucleus of any organization. You can have a bunch of brilliant

people, each treading his own path; or you can have individual talents that work in

tandem and achieve. Team Mona is people who think different and yet think alike.

Individual talents who complement each other with a shared knowledge base and

are fired with the aim to better themselves, with out any room for complacency.

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Generating novel ways of saying things mundane, aided with a work culture that

suits their creative expression.

At Mona Ads they have professionals dedicated to their respective fields of

expertise guided by the dynamic core management. Because in advertising, change

is the only constant.

Re- Affirming Trust:

Every relationship is based on mutual respect. Respect earned over understanding

each others strength, abilities and short comings. Over the years Mona has

nurtured these relationships with their clients, with the media, and with all of their

associates with care and concern.

Professional ethics along with the human touch has seen them through many

triumphs and tribulations. For Mona no client is small or big. Each one is valued

and respected as the other because they believe that companies do not make a

difference, people do.

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WHAT DOES MONA DO . . . ? ? ?

Creative Designing

Corporate Identity Programs

Advertising Campaigns

Marketing Consultancy

Market Research

Surveys

Test Marketing

Product Launches

Press Releases

Outdoor Advertising

In shop displays

Point of Purchase

Printing

Packaging

Publishing

Brochures

Sales Literature

Product Catalogues

Radio Jingles

Corporate & Industrial Films

23

Ad Films

T.V. Spots

Sales Promotion

Exhibitions

Electronic & Interactive Media

Event Management & Promos

Etc. . . .

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Every research study needs certain objectives which gives the study is parameters

and a defined framework. Lack of this framework results in the project becoming

vague and it then becomes very difficult for the reader to find out what the

researcher actually wants to highlight.

Need for the study

The world of advertising has changed significantly during the past decade. Now

there are various media available other than the traditional print media and hence

the client has a variety to choose from.

Thus it has become necessary to know what an ad agency is all about and what

goes on behind the making of an ad, the choice of the media and the message

behind the ad. Also we live in the age of the internet. Today internet has become

an inseparable part of the human life. The use of the net is growing and at a

tremendous pace. Thus it is imperative for any company who wishes to make its

presence felt over a larger area to think about online advertising.

To do this one needs facts and figures to make a sound decision.

Background

Advertising is a communication link between the seller and the buyer or the

consumer. It does not simply provide information about products and services but

is an active attempt at influencing people to action by an overt appeal to reason or

emotion. Advertising as a part of the total marketing mix influences the sale of the

product. Together with the product or brand, price, channel of distribution and

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personal selling, advertising attempts to reach the marketing objectives. Right

advertising is as essential as the right product, the right distribution channel and

personal selling.

Primary Objectives

The primary objective of this study is as follows:

1) To study the working of the advertising agency

2) To find out various functions of the various departments

3) To study the different types of ads

4) To study the trends in online advertising

Secondary Objectives

The secondary objectives of this study are as follows:

1) To study about the various other Medias of advertising

2) To study the execution of these various other Medias

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Sources of data collection

The primary source of data is based on my observation during the project study.

The secondary source of the data is from various books and web sites.

Significance of the project

This project offers insight into the working of a modern day Ad agency. It also

sheds light on the process that is carried out during the making of an Ad and the

execution of the media plan. Also this project offers a look at online advertising.

27

The research design is descriptive. I have described the observations that I have

made during the project study. The data has mainly been collected by asking

questions to the concerned people and from various magazines, books, and web

sites.

The organization structure at Mona Advertising:

The working of the Art Department

The art department of Mona ads consists of 11 artists and 2 copywriters and they

boast to be (and I have found rightfully so) one of the best creative teams in Pune

city. This department is the most favored and pampered. This team is responsible

for the creatives*. The work of the artists begins after the marketing executive

President

ArtDepartment

Media Department Marketing

DepartmentAccounts

Department

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visits the client and brings a brief* about what the client wants to project in his ad.

The marketing executive then relays this information to the artist and accordingly

the artist gets to work. The artist uses images that are downloaded from the net. At

times they create the ad using calligraphy*. All the advertisements are created in

coral draw*. Then the artist gives the printout of the creative to the marketing

executive. On receiving approval from the client the artist then converts the cdr*

file into a pdf* file and loads it on the computer of the media department so that it

can be sent to the respected publication. Their work does not end here. They have

to maintain backup* files for every creative they make even though the ad has

appeared one year ago.

The working of the media department

The department of media is perhaps the department that has the most difficult task.

This department draws up the schedule for the ads to be released in the papers and

other media. This department also co ordinates the dead lines for the creatives to

be submitted by the artists for particular ads. This department has to maintain

relationship with all the publishing companies such as the Times of India, Indian

Express, Sakal, Lokmat, etc. The media people maintain the rates of the ads, the

day of release and the size and the position of the ad.

They also suggest the client regarding the media to be used to allow maximum

exposure and response. The media department on receiving the approval from the

client regarding the schedule and rates send a release order* to the publishers.

29

Theirs is a very complicated job as they have to handle the confusing task of

releasing the right ads of the right client on the right day and in the right

publication. There have been times when a client has refused to pay for the ad as it

was not in the position which he had asked for. The media people also have to

negotiate with the publishers so as to get the best deal for the client. In addition

they have to maintain records on daily basis.

The working of the Marketing Department

The marketing department is a very lively department. At the moment the strength

of Mona’s Marketing department is 5. The job of the marketing people is very

interesting as they are the ones who act as a link between the client and the

agency. The marketing executive visits the client and discusses with him regarding

the product or the service that the client wants to advertise. He also suggests the

client, the media that the client can employ to get maximum results. At times he

also discusses the strategies that can be put into action to ensure that the objective

of the client is fulfilled. It is the marketing people who bring this brief from the

client and relay it to the artists so that they can work on the creatives. It is these

people who communicate to the media department about the media chosen by the

client, date of release of the ad and the duration during which the client wants the

ad to appear. They also communicate to artists and the media department the size

of the ad and incase of print ads if it is color or black and white and the language

in which the ad is to be published. After the artists have created their work, the

30

executive takes this work to the client and gets the approval or else if there are

some changes communicates them back to the artists. It is also the job of this

department to deliver the bills and recover the money for the same from the client.

The working of the Accounts Department

The accounts department generates bills according to the release of the ads of the

particular clients. This department consists of five accountants. They maintain a

record of the dues and the payments that the agency has to make to their publishers

and associates. They also do revising of the bills incase of any discrepancy*. This

department also takes care of the salaries of all the employees at Mona and all the

other financial factors like income tax, sales tax, etc. for Mona.

An Introduction to Different Types of Ads (Print Media)

31

A] PRESS ADS

These are known as the press ads

These are released not only in the news papers but also in various

magazines

The color scheme is four colors CYMK*

B] HOARDINGS

32

Hoardings are those ads that are the part of outdoor advertising

Their objective is to catch the attention of the person passing by the

hoarding and to pique the interest of that person

A hoarding is a great way of advertising for brand recognition & brand

recall

C] BROCHURES

33

34

A brochure is a booklet that gives information regarding the product or the

service

It is usually used by businesses like real estate, institutes, banks, etc.

A brochure is more of use when the client is introducing new products

For example; if a builder is launching a new project a brochure of that

project would carry all the details regarding the project, the amenities

provided by the builder, etc.

35

D] LOGO DESIGNS

A logo is an emblem of an organization

36

It creates the identity of the firm

It makes recalling of the company quicker

It is used by the firm on all its material beginning from the visiting cards to

office stationery to ads

37

A FEW FACTS ABOUT PRINT ADS & OTHER MEDIA

1) The size of a print ad is measured in square centimeters

2) The width is measured in columns where one column is equal four

centimeters

3) Only the width of the classified ads is always fixed at three centimeters

4) The height is measured in centimeters also and is flexible

5) The ads are divided in different categories like

Display ads

Appointment ads

Classified ads

Pointers

Ear banners

6) Display ads are just for the display of the goods or services that the client

has to offer

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7) Appointment ads are those ads which communicate the requirement of a

client to the masses

8) Classified ads are small ads which can be used for both display or to

communicate requirement

9) Pointers are small ads usually at the left hand side corner of the front page

on a newspaper which points at the ad in the inside regions

10) Ear banners are those ads which are on the top corners on the newspapers`

front page

11) Other medium of ads used popularly today is radio jingles

12) A jingle is measured in seconds and the standard is of a ten second spot

13) The client can order for any number of spots to be played per day for the

duration that he wishes

39

TRENDS IN ONLINE ADVERTISING

Before we get any further with the details in online advertising lets learn some

basic facts about the internet & the usage pattern in India . . .

What Is Internet??

Internet is network of computer networks spread across the globe.

The scale and speed @ which the interconnected form of electronic

communication known as the NET, “ THE INTERNET” has entered

ordinary life in almost all its aspects

One of the greatest things about the Internet is that nobody really owns it. It

is a global collection of networks, both big and small

These networks connect together in many different ways to form the single

entity that we know as the Internet

The Internet can powerfully leverage your ability to find, manage, and

share information

Never before in human history has such a valuable resource been available

to so many people at such little cost

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India-Key Facts

India currently has around 50 million Internet users with a growth rate of

40-50% YOY

The number of Leased Line Connections in India is 16,589. Number of

Broadband connectivity (>=256Kbps) subscribers is 399,253. Minutes of

usage per subscribers reported by 34 ISPs is approximately 300 minutes

per Month.

Ecommerce in India expected to touch Rs. 1,180 crores for year 2005-

2006. Projected growth for year 2006-2007 is Rs. 2,300 crores

Top Ecommerce sites in India are Indiatimes Shopping, Irctc.co.in,

ebay.co.in, Fabmall.com in that order

Intended Use of Source in 07 - Internet=39% Cable TV=24%

Newspaper=8% National Network News=5%

41

Relevance to Today’s World

It has provided an extremely reliable reach across the globe

A reliable and Affordable infrastructure to conduct business

Easy information access across segments has made the medium extremely

popular

PC penetration has increased phenomenally resulting in increase in the

number of online users

Popular with advertisers due to cost effectiveness & measurability

Compared to other mediums, internet provides an actionable and instant

response and fulfillment. It therefore becomes a formidable branding and

fulfillment tool

42

How does online advertising compare to offline advertising?

Online advertising betters offline advertising in many respects from cost to

demographics to targeting.

Few benefits of internet medium:

Transparency and accuracy

Cost

Targeting

Control

Speed

Midstream tweaks

43

Key Takeouts

Internet medium is poised on the brink of a takeoff

With a sizeable audience from affluent background, the online medium is

going to be the next big thing to seriously vie for advertising budgets of big

brands

Compared to other mediums, internet provides an actionable and instant

response and fulfillment. It therefore becomes a formidable branding and

fulfillment tool

With average internet usage of over 300 minutes per month per person, its

taking some quality time away from other offline mediums like print &

television

44

NOW LETS TAKE A LOOK AT THE TRENDS IN ONLINE ADVERTISING IN

INDIA

While most advertisers are still focusing on the traditional advertising media,

the target audience is rapidly moving to a more dynamic and interactive medium

- the Internet.

About 93% of the 28 million online Indians today belong to the age group of 18-

45 years, which has the maximum buying power - your prime TA.

What's more, the Indian online population is estimated to be 100 million by 2007-

08

  Advertising market 2003-04 2004-05 2005-06 2006-07

  Online Ad Market  (Rs. Crore)

42 107 162 218

45

% share of Online Ad Revenue across Categories

  Categories 2004-05 2005-06

  Financial Services 27% 24%

  Tech 13% 11%

  Travel 14% 12%

  Automobile 9% 11%

  Consumer Durables 8% 9%

  FMCG 7% 9%

  Online Serives (P) 12% 11%

  Entertainment 4% 7%

  Telecom 2% 6%

Financial Services includes: Credit Cards, Loans-Personal, Home, Car, Banking

Services, Utility Payments, Insurance, Investments)

Online Services (Personal) (Matrimonial, Job Placement, Personalized Travel

Verticals- advertising are predominantly pure-play net ventures)

46

SOME INTERESTING FACTS

44% of Internet users believe that a film's online participation influences their judgment in watching a movie reinforcing the need for movie houses to be present online.

73% of Internet users spend less than Rs 500 on a visit to the cinema indicating an affluent demographic. The 18-35 age groups are the biggest spenders.

33% of Internet users have a penchant to buy movie merchandise online & this frequency is likely to grow as we are reaching to households owning DVD Players & Recorders (35%), VCD Players (56%)

94% of users are susceptible to mobile marketing. Moreover, there is high propensity to talk, share amongst friends.

47% of Internet users would pay for mobile content like alerts, ring tones, wallpaper etc.

47

ONLINE AD UNITS

Till now we have seen the trends in online advertising. We have also seen the

benefits of the same. The units of ad that is online are different from the units of

off-line ads. As we have already seen the various components that are required in

order to publish your ad whether a hoarding or a brochure or a pointer or a

classified, etc. Similarly it is important to know where and when and how will

your ad be displayed on a specific web site. To know these details it is important

to have the core knowledge about the internet or online advertising units.

Let’s have a look at the online Ad units,

Top Text Link

Content Text Link

Ear Panel Slug

Left Navigational Banner

Top Banner

Tower Banner

Leader Board Banner

Section banner

Inbox Banner

48

Login Logout

Monster Banner

Hot Links

Bottom Leader board

Bottom Slug

Shoshkele

Frame spots

Interstitial

49

We have already seen the trends in on line advertising. On the basis of that I have

collected some facts and figures that I have presented below.

Due to online advertising there is an increase in the online shopping.

Below given are a few most popular items that are bought online and their trends.

The items that I have taken are as follows:

1. Apparels

2. Home Appliances

3. Computers & Peripherals

4. Railway Tickets

5. Magazines

6. Electronic gadgets

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1] Apparels

Online Apparel sales, just like its offline counterpart, is supported by Multi

Branded outlets (MBOs) online, with their value offering and details catering to a

customer who is keen on ‘information’ before a purchase.

The 18-35 age groups are the highest purchasers of Apparel online, accounting for

79% of purchases with the lion’s share of 50% falling in the 26-35 age groups.

Apparel Demographics

By Age

51

2] Home Appliances

The 26-35 age groups are the highest purchasers of Home Appliances online

accounting for 53% of purchases.

By Age

52

3] Computers & Peripherals

The 18-35 age groups are the highest purchasers of Computer and Peripherals

online accounting for 73% of purchases with a greater share of 48% falling in the

26-35 age groups.

By Age

53

4] Railway Tickets

Railway Ticketing is a perfect example of self-service e-economy with the Internet

being the domain of information, options, bookings, and capacity-allocation. A

perfect opportunity capitalized by IRCTC, a public sector company. The major

group that buys tickets on line is 18-35 with 26-35 contributing a lions share of

47%

By Age

54

5] Magazines

The 18-35 years age group is the highest purchaser of Magazines online

accounting for 68%% of purchases with a lion's share of 47% falling in the 26-35

years age group

By Age

55

6] Electronic gadget

74% of Electronic Gadgets are being bought by 18-35 year age group, with the e-

commerce-savvy 26-35 years having the lion’s share of 49%.

By Age

56

During this project study I have found many interesting facts that I have listed

below. These findings are based on the observations made during the project study

and the information gained from the websites.

1. The scope for advertising is growing huge.

2. The competition in this field is huge

3. There are various other media available to the client for advertising other

than the traditional print media

4. The major problem that the agency faces today is that of collections.

5. The clients do not pay money in time despite the 30 day credit limit

6. There is a shortage of manpower in the media as well as the marketing

department

7. The major spending group today is the 18-35 age group

8. The number of online population has grown to 100 million and is growing

by the minute

9. This age group is net savvy

10. On line transactions have doubled and are expected to keep growing.

Though the on line advertising is catching rage the publishing medium does

not have to worry too much. The publishing medium remains by far the most

favorite medium of advertising.

57

During this project study I have observed that a few things that need to be

changed. The agency is facing two major problems viz manpower and collections.

Also I have seen the rising trend of on line advertising.

Thus I have made a few suggestions which could help to solve the agency’s

problems to a considerable extent.

Suggestions

The agency is facing the problem of manpower in the media and the

marketing dept. to rectify this problem it is necessary hire adequate number

of people so that the work can be carried out more efficiently and quickly

Also the additional benefit would be that the work would be properly

delegated and wont fall on the shoulder of a single employee causing

confusion and stress.

To solve the collection problem of the agency one thing that can be done is

to take post dated cheques from the client

Or yet another idea that can be implemented is that the agency could take

half the amount before the release of the ad and the remaining amount after

the release of the ad so that at least not all the money is blocked by the

client

Also looking at the on line advertising trends I feel that this is the right

time for the agency to get into this field.

58

It should start offering their clients this medium of advertising along with

the other Medias of advertising.

Conclusion

It was very interesting to be able to see the behind the scenes action and drama

that is the part and parcel of an ad agency. One always sees the ads in the papers or

listens to the jingles on the radio yet very few of us realize the amount of work that

is put behind every individual ad. I am glad that I got this golden opportunity to be

able to get a chance to learn how an ad agency functions.

59

There is still a lot left to learn and a vast area to be explored. I feel as if I have just

touched the tip of the iceberg and I am sure that such is indeed the case.

Every project work has a few limitations and this project is no an exception.

The limitations are as follows

The findings and suggestions have been based on the observations made

during the two months.

A more detailed study could not be carried out due to the time constraint of

two months

The facts figures are not completely accurate as they are updated regularly.

Yet I have tried my best to collect as updated data as possible.

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Books:-

1] Foundations of Advertising

(Chunawalla& Sethia)

2] Marketing Management

(Rajan Saxena)

Web site:-

www.iamai.in

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