A STRW PROJECT ON
“OUTDOOR ADVERTISING IN INDIA”
PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT
(Approved by AICTE, Govt. of India) (Equivalent to MBA) ACADEMIC SESSION 2009-11
SUBMITTTED TO:DR. TAPAN KUMAR NAYAK AREA CHAIRPERSON, ECONOMICS.
SUBMITTED BY:NIKHIL KUMAR GARG (BM-09123) NIKHIL SINGH (BM-09124) NIMISHA GUPTA (BM-09125) NITESH KUMAR (BM-09127)
C-238, BULANDSHAHR ROAD, GHAZIABAD -201009 INSTITUTE OF MANAGEMENT STUDIES
This is to certify that Mr. Nikhil Kumar Garg(BM-09123), Mr. Nikhil Singh(BM-09124), Nimisha Gupta(BM-09125), Nitesh Kumar(BM-09127) have completed their project titled “Outdoor advertizing in India” under my guidance with full honesty and integrity and submitted towards partial fulfillment of Post graduate diploma in management at IMS Ghaziabad.
Dr. Tapan Kumar Nayak (Area Chairperson of Economics)
We hereby declare that the work which is being presented in the report entitled “ OUTDOOR ADVERTISING IN INDIA“ in partial fulfillment of the requirement of the award of the post graduate diploma in management and submitted in the INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD is an authentic record of our own work carried out during a period from Jan 18, 2010 to March 20, 2010 under the supervision of Dr. Tapan Kumar Nayak, Area chairperson of Economics INSTITUTE OF MANAGEMENT STUDIES GHAZIABAD. The matter presented in this report has not been submitted by us in the award of any other degree or diploma of this or any other institute.
CANDIDATE’S NAME AND SIGNATURE :NIKHIL KUMAR GARG(BM-09123) NIKHIL SINGH (BM-09124) NIMISHA GUPTA(BM-09125) NITESH KUMAR(BM-09127)
AREA CHAIRPERSON. We would like to express our gratitude and profound thanks to Dr.ACKNOWLEDGEMENT
No task whatever big or small can be completed without proper guidance and encouragement. It gives us a great pleasure to our deep sense of gratitude and reverence to every person who created a congenial atmosphere for successful completion of this project.
We thank each and everyone who are involved in this report completion without which it would not have been possible for us to complete this project. TAPAN KUMAR NAYAK. and faculty of Institute of Management Studies. Ghaziabad to give us a chance to get an industrial exposure.
Method used. a questionnaire has been prepared and customers having various perceptions were asked to fulfill it. companies are using various modes of advertizing and searching for newer ways which effect much more customer.
. Various statistical tools like graphical method and chi-square test for our research purpose and analysis of data has been used. For primary data.The primary as well as secondary data for the studies. For this. Purpose. we are trying to study various medium of outdoor advertizing and also various other types of advertizing and their effect on various customers to understand customers need to attract more and more customers.Various modes of advertizing are equally important and outdoor advertizing is one of them. competition in every field of business is very high and companies are trying to attract maximum number of customers. This led to the development of various forms of advertizing and outdoor advertizing is one of them. Findings.ABSTRACT
In India now a days.In these papers. It helps in boosting sales and attracting more and more customers and company must focus on outdoor advertizing as it can reach more and more number of peoples than other modes of advertizing. Secondary data is collected from web resources and books.
3.1 5. 3. 8. 7 9 10 11 12 12 15 18 20 20 21 30 38 40 44 49 49 55 71 72 73 74 76 77 77
. 7.3 5.6 5. 4.3 5.7 5. 12. 2.2 4. 1. 11.4 5.TABLE OF CONTENTS
S.5 5. 9.8 6.2 5. TOPIC Introduction Justification of the study Literature review Research objectives Advertizing basics History of advertizing Definition of advertizing Importance of advertizing Outdoor advertizing Factors affecting outdoor advertizing Kinds of outdoor advertizing Classification and types of advertizing Measuring advertizing effectiveness Methods of measuring advertizing effectiveness Communication effects of advertisement Factors affecting advertizing Impact of advertizing Research methodology Findings Summary Conclusion Recommendation Suggestions References Annexure PAGE NO.1 4. 10.No. 5. 13. 4.
As the markets grew larger and the number of customers increased. Development of retail stores. he relied upon his own personal magnetism to attract attention to his merchandise. Informing customers of the availability of supplies was highly important. made the traders to be more concerned about attracting business. This method is still in common use. but the earliest indication of its use in this country dates back to the middle Ages. 7
. If there were many competitors. Evidences suggest that the Romans practiced advertising. Increasing reliance was placed on advertising methods of informing about the availability of the products. The next stage in the evolution of advertising was the use of signs as a visual expression of the tradesman’s function and a means of locating the source of goods. or join social organizations in order to have continuing contacts with present and potential customers. The merchant still used personal persuasion once the customers were attracted to his store. These advertising methods were more economical in reaching large numbers of consumers. the seller was doing the complete promotion job himself. Signs on stores and in prominent places around the city and notices in printed matters were sometimes used. therefore. Thus. the importance of attracting them also grew. While these advertising methods were useful for informing and reminding and reminding. When customers were finally attracted to the store and satisfied with the service at least once. when the use of the surname indicated a man’s occupation. Often it became necessary for him to resort to persuasion to pinpoint the advantages of his products. They were used only to reach each consumer personally. they were still subjected to competitive influences. Some types of outside promotion were necessary. they could not do the whole promotional job.INTRODUCTION
It has been wrongly assumed that the advertising function is of recent origin. Sometimes traders would talk to present and former customers in the streets. the merchant’s signs and advertisements reminded customers of the continuing availability of his services. The seller in primitive times relied upon his loud voice to attract attention and inform consumers of the availability of his services.
and assumed the function of fostering demand for existing products. By Shakespeare’s times. The early examples of these pamphlets disclose their sponsorship by companies want to generate goodwill for their activities. Another important event was the emergence of the pamphlet as an advertising medium. posters had made their appearance.
.The invention of hand press increased the potentialities of advertising. The low cost of posters and handbills encouraged a number of publishers to experiment with other methods.
e. television and radio. that the mode of advertising used like print media i. magazines and newspaper. Outdoor advertising has been focused and compared with the other types of media to make the comparison on the basis of effectiveness.
The present study has focused on effect of outdoor advertising on consumer perception and their attitude towards different products and services. Outdoor media is developing and taking shape in best marketing promotion activities. electronic media i.e. outdoor advertising i. electronic displays plays an important role in determining the buying behavior of consumers .e. hoardings. billboards. It has been observed through various researches. Also studying the perception and consumer attitudes regarding different advertising media will provide an insight to further future development.
Aaker and Mayers. strategically market.According to a research concentrating on the advertisers viewpoint.(1994). 1985).
. The adverts are meant for the audience to watch but unfortunately the audience is likely to take active steps in avoiding them. Porter (1980). advertisements face many challenges in reaching the audience. 1975 As known for decades. advertisement is one of the main strategies in marketing either a product or service.REVIEW OF LITERATURE
Kotler. Advertising agencies fuel the basic needs of a company to plan. Krugman. 1971). It can be defined as “An Advert that does not create a buying response. It was introduced by one of the pioneer in the ICT and business industry Potter also explains the sources of cost reduction and differentiation within a firm. strategise and introduce their product in the market. Being a key element in the marketing process. The advertiser therefore have problem of making loomed perhaps generally evasive audience pay attention to what is going on or at least enough to get basic selling message The challenge gets more difficult in a multiracial country such as Malaysia. 1975.One of the main obstacles is the low audience involvement . advertisement is an important tool which companies use to directly persuade buyers and public . Bonnex. or at least produce a desire to want to know more is not an advert” (Quinn. In most forms of communication.The existence of the advertisement rooted in Malaysia dated back to the 1971 as claimed by in his thesis. Potter treats every firm as a collection of activities carried out to develop. It is one of the basis of the supply chain and many advertising agencies are involved in this business in Malaysia. the audience least make some effort to pay attention or appear to be doing so. His theory is even supported by the Honourable Minister Tan Sri Gazali’s speech in 1971(Bernama. The value chain is a systematic approach in examining the development of competitive advantage. deliver and maintain its products or services.(1975).
To find the ways to make it more effective.
To study effectiveness of advertisements i. on sales. profitability.e.
To study the perception of consumers towards the different advertisement i. print media and outdoor media.RESEARCH OBECTIVES
To study types of advertisements.
. electronic media.
and one found painted on a wall in Pompeii calls the attention of travelers to a tavern situated in another town. The first advertisement in English appeared in 1472 in the form of a handbill announcing a prayer book for sale. the Boston News-Letter. the use of so-called town criers. the first newspaper ad was published offering a reward for the return of 12 stolen horses. the forerunner of the advertising agency. among the Babylonians. notably in the ruins of ancient Rome and Pompeii. In the American colonies. Later they became familiar figures on the streets of colonial American settlements. Two hundred years later. began carrying ads in 1704. The criers were citizens who read public notices aloud and were also employed by merchants to shout the praises of their wares. the advertising profession began in Philadelphia. the first regularly published newspaper in America. Ayer &
an eye-catching sign painted on the wall of a building 12
. printed advertising made little headway until the invention of the movable-type printing press by German printer Johannes Gutenberg about 1450. In the United States. An outdoor advertisement excavated in Rome offers property for rent. Agents contracted with newspapers for large amounts of advertising space at discount rates and then resold the space to advertisers at a higher rate. The ads themselves were created by the advertisers. W. In 1869 Francis Ayer bought out Palmer and founded N. in 1841 when Volney B. This invention made the mass distribution of posters and circulars possible. Although graphic forms of advertising appeared early in history. In medieval times word-of-mouth praise of products gave rise to a simple but effective form of advertising. One of the first known methods of advertising was the outdoor display1. Palmer set up shop as an advertising agent. The town criers were forerunners of the modern announcer who delivers radio and television commercials. Archaeologists have uncovered many such signs. Pennsylvania. and about 25 years later Benjamin Franklin made ads more readable by using large headlines.ADVERTISING BASICS
HISTORY OF ADVERTISEMENT
Archaeologists have found evidence of advertising dating back to the 3000s BC.
an agency that still exists today. Levy Bakery in Brooklyn.Son. and David Ogilvy. Soon Ayer was not only selling space but was also conducting market research and writing the advertising copy. The ads his agency created were understated. Bill Bernbach.' But it was the advertising for Volkswagen that made the agency's reputation. founder of Doyle Dane Bernbach in New York City. so did the sale of TV sets and the advertising that paid for the popular new shows. He also believed that good advertising began with respect for the public's intelligence. Ayer transformed the standard agent practice by billing advertisers exactly what he paid to publishers plus an agreed upon commission. the agency created an ad that entertained New Yorkers and provided fodder for many conversations. Instead it began to create a product image. But the introduction of radio created a new opportunity and by the end of the 1920s. Advertising agencies initially focused on print. but because of the high cost of TV sets and the lack of programming. it was not immediately embraced.' Bernbach's agency captured the spirit of the new age. Bernbach believed that advertising had to be creative and artistic or it would bore people. No longer did advertising simply present the product benefit. Soon TV far surpassed radio as an advertising medium. For example. sophisticated. As the American economy soared in the 1950s. all came to prominence in the late 1950s and 1960s and led what has been called the 'creative revolution. advertising had established itself in radio to such an extent that advertisers were producing many of their own programs. The early 1930s ushered in dozens of radio dramatic series that were known as soap operas because they were sponsored by soap companies. founder of Ogilvy & Mather in New York City. The tone of the advertising was also changing. and witty. when Bernbach's agency picked up the account for the Henry S. a borough of New York City. Leo Burnett.
. founder of the Leo Burnett agency in Chicago. 'You don't have to be Jewish to love Levy's. The ad showed a Native American eating a slice of the bakery's rye bread with the headline. Television had been introduced in 1940. Illinois.
the Volkswagen ads stood out because they admitted failure in a witty way and gave facts in a believable manner that underlined the car's strengths. The development of interactive television. combining the functions of a computer with access to high-speed transmission over cable lines or optical fibers. The chrome strip on the glove compartment is blemished and must be replaced…We pluck the lemons. 'think small. to a greater extent than ever before. but also. Doyle Dane Bernbach created a magazine ad that showed a small picture of the Volkswagen Beetle surrounded by a sea of white space with the headline. The introduction of the TV remote control and access to hundreds of cable channels mean that today advertising must interest and entertain consumers or else they will simply use the remote to change the channel. New digital devices even threaten to make it possible to edit out commercials.
. what they will watch. Some industry observers believe that as consumers gain greater control over their viewing activities. will likely enable consumers to select from a vast video library. you get the plums.' In an era of hype and bombast. The ad's copy explained that 'this Volkswagen missed the boat. they will find it easier to avoid advertising. Consumers will be able to determine not only when they watch something. The creative foundation established by Bernbach and others has been critical to the success of contemporary advertising. This wit together with a conversational and believable style was a hallmark of the advertising created by Doyle Dane Bernbach and that style became highly influential.At a time when American cars were getting bigger and bigger and the advertising for them trumpeted that bigger was better.' An equally unconventional ad carried the headline 'lemon' beneath a photo of an apparently flawed Volkswagen.
DEFINITION OF ADVERTISING
The word advertising originates from a Latin word advertise. This keeps the cost per message low.
. for it reaches large groups of people. Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. nor is it addressed to a specific person. The advertiser signs his name to his advertisement for the purpose of publicizing his identity. (v) Advertising can be economical. for it is not delivered by an actual person. The American Marketing Association. (iii) It is non-personal communication. (ii) It makes mass production possible. (vii) Advertising is identified communication. The dictionary meaning of the term is “to give public notice or to announce publicly”.” What Advertisement Is? Advertisement is a mass communicating of information intended to persuade buyers to by products with a view to maximizing a company’s profits. The elements of advertising are: (i) It is a mass communication reaching a large group of consumers. has defined advertising as “any form of nonpersonal presentation or promotion of ideas. (iv) It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales. permitting an advertiser to speak to millions of buyers in a matter of a few hours. which means to turn to. (vi) The communication is speedy. goods or services. by an identified sponsor. Chicago.
Novelties bearing advertising messages and Signature of the advertiser. Advertising funds come from sales revenue and must be used to increase sales revenue. (iii) Advertisements are not designed to deceive. advertising expenses should not increase disproportionately. because if advertising is done properly.
inserts in packages). (iii) The content of the advertisement is within the control of the advertiser. Window display and counter – display materials and efforts.
What is excluded from Advertising? Advertising is not an exact science. Label stags and other literature accompanying the merchandise. Advertising includes the following forms of messages: The messages carried in Newspapers and magazines. he cannot predict with accuracy what results his future advertising efforts will produce. (v) The function of advertising is to increase the profitable sales volume. The desire and hope for repeat sales insures a high degree of honesty in advertising. On radio and television broadcasts. thorough tradesmen. 16
. not the medium. both the buyer and the seller benefit from it. (ii) Advertising is not a toy. (ii) It should suggest better solutions to their problems. Store signs. motion pictures used for advertising. Advertiser cannot afford to play with advertising.What is Included in Advertising? (i) The information in an advertisement should benefit the buyers. Circular of all kinds. (iv) Advertising without persuasion is ineffective. (i) Advertising is not a game. An advertiser’s circumstances are never identical with those of another. (whether distributed by mail. by person. The advertisement that fails to influence anyone. It should give them a more satisfactory expenditure of their rupees. either immediately or in the future. That is. is a waste of money. or by Dealer help materials.
(ii) To communicate with consumers. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. The objectives of advertising were traditionally stated in terms of direct sales. The use of exhibitions and demonstrations at fairs. involving news releases and the activities of personal The payment of advertising allowances which are not used for advertising. The use of samples and activities. Advertising is a form of promotion and like a promotion. This means that specific objectives should be set for each particular advertisement campaign. e. The entertainment of customers
selling forces. not just for one customer. TV rather than print .The activities excluded from advertising are: The offering of premiums to stimulate the sale of products. former and future consumers. the objectives of advertising should be specific. Advertising may be used to reassure buyers that they have made the best purchase. Now.
Advertising Objectives Each advertisement is a specific communication that must be effective. it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product.. (iii) To retain the loyalty of present and former consumers. show and conventions.
.g. This involves decision regarding copy . Advertising seeks to condition the consumer so that he/she may have a favourable reaction to the promotional message. thus building loyalty to the brand name or the firm. but for many target buyers. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. It involves a decision regarding the media. The basic objectives of an advertising programme may be listed as below: (i) To stimulate sales amongst present.
Similarly. such as personal selling or point-of-purchase display. : (v) To project an image. radio and TV programmes. Advertising is to stimulate market demand.
. The attempt by army recruitment is bases on a substantial advertising campaign. professional sports. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. the price of newspapers. Outlay on advertising certainly is the voucher. The health department popularizes family planning through advertising Labour organizations have also used advertising to make their viewpoints known to the public at large. and retailers. or even demand for the product.(iv) To increase support. It can force middlemen to stock the product by building consumer interest. but also at the government. While sometimes advertising alone may succeed in achieving buyer acceptance. and the like might be prohibitive without advertising. preference. The production cost per unit of output is lowered. to directly move customers to buying action. it thus contributes to enthusiasts and confidence attitude in the organizational. wholesalers. and the general public. Advertising is efficiently used with at least one other sales method. shareholders. Advertising impliedly bolsters the morale of the sales force and of distributors. Lower consumer prices then allow these products to become available to more people.
IMPORTANCE OF ADVERTIZING
Generally. Advertising is used to promote an overall image of respect and trust for an organization. This message is aimed not only at consumers. advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. It in turn leads to lower prices. It can build dealer and consumer confidence in the company and its products by building familiarity. it is seldom solely relied upon. Advertising strategies that increase the number of units sold stimulate economies in the production process. It can help train dealers salesmen in product uses and applications. Advertising assumes real economic importance too. Advertising has become increasingly important to business enterprises –both large and small. stressing the advantages of a military career. Non-business enterprises have also recognized the importance of advertising. .
Because of this fact. physical fitness. advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life. traders. its growing productive capacity and output necessitates the finding of consumers and advertising plays an important role in this process. Advertising has become an important factor in the campaigns to achieve such societal-oriented objectives such as the discontinuance of smoking. advertising as a profession is in its infancy.In short. In India. and the elimination of drug abuse. Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection. and the country’s economy. Though in India. there is a tremendous scope for development so that it may be productively used for the benefit of producers. family planning. advertising was accepted as a potent and recognized means of promotion only 25 years ago. consumers.
vote for a politician. (OAAA).OUTDOOR ADVERTISING
Any advertising done outdoors that publicizes your business's products and services. Growth in rural markets 6. Inc. take a trip. from highway billboards to transit posters and arena placement. Saturation of other medias
. a figure expected to rise again in 2005. Boom in the real estate and infrastructure a) Malls b) Buildings c) Flyovers d) Toll roads e) Metro trains 4. It might even be a public service announcement. The message might be to buy a product. or give to a charity. Outdoor advertising includes various types of promotional displays. all geared towards communicating a message to the public. businesses spent $5.
FACTORS AFFECTING OUTDOOR ADVERTISING
1. According to the Outdoor Advertising Association of America. Rise in consumerism a) Consumer awareness b) Purchase options c) Buying power 5.8 billion dollars on outdoor advertising in 2004. Modern urban lifestyles 2. Technological advancements 3.
KINDS OF OUTDOOR ADVERTISING
1. BILLBOARDS a) Front lit
b) Back lit
2. Bus stops
3. Metro stations
6. Mobile van
8. Wall paintings
Regional advertising 7. National advertising B. Retail Advertising B. Selective Demand (Stimulation) B. Industrial Advertising 5. Public Service Advertising 3. Advertising Based on Demand Influence Level. Local advertising C. Informative Product Advertising B. Product Advertising A. Consumer Advertising B. Advertising based on Product Life Cycle A. Institutional Advertising C. Wholesale Advertising 6. Functional Classification A. Pioneering Advertising B. Advertising Based on Area of operation A. Reminder-Oriented Product Advertising 4. Primary Demand (Stimulation) B. Persuasive Product Advertising C. Trade Advertising A. Advertising According to Medium Utilized
. Retentive Advertising 2. Competitive Advertising C.CLASSIFICATION AND TYPES OF ADVERTISING
1. A. Product – Related Advertising A.
it provides prices. Direct Type: It seeks to stimulate immediate buying action. B. It is concerned with developing a “primary” demand.direct actionin which case. Pioneering Advertising B. It conveys information about. Air India attempts to bid for the consumer’s patronage either immediately . Pioneering Advertising: This type of advertising is used in the introductory stages in the life cycle of a product. It stimulates “selective” demand. B. Competitive Advertising C. time tables and phone numbers on which the customer may call for reservations. Indirect Type: It attempts to pinpoint the virtues of the product in the expectation that the consumer’s action will be affected by it when he is ready to buy.. Example: Airline advertising. A. For example. viz. Product – Related Advertising It is concerned with conveying information about and selling a product or service. or eventually – indirect action – when it suggests that you mention Air India’s name when talking to your travel agent. Such advertisements appeal to the consumer’s emotions and rational motives. and selling a product category rather than a specific brand.
. It is of two types: A. Product advertising is of three types. It seeks to sell a specific brand rather than a general product category. Competitive Advertising: It is useful when the product has reached the market-growth and especially the marketmaturity stage.1. Retentive Advertising A. the initial advertisement for black – and – white television and color television.
It is intended to affect the demand for a type of product. At this time. When primary demand has been stimulated and competitors have entered the market. Retentive Advertising: This may be useful when the product has achieved a favourable status in the market – that is. or only the name may be mentioned in “reminder” type advertising. In this type of advertising. Generally in such times. i. the marketer must inform consumers of the existence of the new item and convince them of the benefits flowing from its use. The effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of the sponsoring organization. maturity or declining stage. Advertisements on not mixing drinking and driving are a good example of public service advertising. A. 3. the advertising strategy may be to stimulate the selective demand. Some advertise to stimulate primary demand. the objective is to put across a message intended to change attitudes or behaviour and benefit the public at large. 2. A much softer selling approach is used. When a product is new. and not the brand of that product. Public Service Advertising This is directed at the social welfare of a community or a nation. (ii) It may promote either the brand or the firm selling that brand. Primary Demand Stimulation Primary demand is demand for the product or service rather than for a particular brand. primary demand stimulation is appropriate. (i) Advertising may be used to stimulate either the primary demand or the selective demand. Functional Classification Advertising may be classified according to the functions which it is intended to fulfil. the advertiser wants to keep his product’s name before the public.C.
. Advertising Based on Demand Influence Level. (iii) It may try to cause indirect action or direct action.
Surf detergent powder. Competitive advertising stimulates selective demand. It notifies the consumers that the company is a responsible business entity and is patriotic. legislators. financial institutions. and confidence in the sponsor. The advertiser attempts to differentiate his brand and to increase the total amount of consumption of that product. Institutional advertising is used extensively during periods of product shortages in order to keep the name of the company before the public. the target groups will respond with goodwill towards. Institutional Advertising Institutional Advertising may be formative. It does not attempt to sell a particular product. employees. does considerable institutional advertising of its name. such as public service work. Institutional advertisements are at consumers or focus them upon other groups. HMT or DCM. selective demand advertising is attempted. supports the socialistic pattern of society or provides employment opportunities in the community. it benefits the organization as a whole. is an affair. It may be of either the direct or the indirect type. It is also a useful method or introducing sales persons and new product to consumers. thus indicating how it aided the development of ancillary industries. suppliers. etc. It is not to stimulate the demand for the product or service. such as voters. HMT once told the story of the small-scale industries supplying it with component parts. for example.B. If it is effective. ii. To establish a differential advantage and to acquire an acceptable sort of market. suppliers. persuasive or reminder oriented in character. emphasizing the quality and research behind its products. This type of advertising is used frequently by large companies whose products are well known. or the general public. Selective Demand Stimulation This demand is for a particular brand such as Charminar cigarettes. 33
. or Vimal fabrics. that its management takes ecologically responsible action. This sells only the name and prestige of the company. It aims at building for a firm a Positive public image in the eyes of shareholders. this may be referred to as institutional advertising because it is intended to build an overall favorable attitude towards the company and its family of products.motive action employer. When Indian Oil advertisements describe the company’s general activities. government officials.
It is a type of promotion used in the growth period and. designed to promote the sale or reputation of a particular product or service that the organization sells. 4. Informative Product Advertising: This form of advertising tends to characterize the promotion of any new type of product to develop an initial demand. Consumer Advertising B. Reminder-Oriented Product Advertising: The goal of this type of advertising is to reinforce previous promotional activity by keeping the brand name in front of the public. It deals with the non-personal selling of a particular good or service. The marketer may use such promotion to generate exposure attention. B. It is of three types as follows:A. Informative Product Advertising B. comprehension. It was the original approach to advertising. Indane’s Cooking Gas is a case in point. to some extent. Persuasive Product Advertising C. Industrial Advertising
. in the maturity period of the product life cycle. attitude change or action for an offering.iii. It is used in the maturity period as well as throughout the declining phase of the product life cycle. Persuasive Product Advertising: Persuasive product advertising is to develop demand for a particular product or brand. Advertising based on Product Life Cycle A. It is usually done in the introductory stages of the product life cycle. Product Advertising Most advertising is product advertising. Reminder-Oriented Product Advertising A. C.
the derived demand. To motivate distributors. Trade journals are the media most generally used followed by catalogues. To recognition for the firm or its products. They rely on this form of promotion merely out of fear that their competitors may benefit if they stop their advertising efforts. direct mail communication. and The basic appeals tend to increase the rupee profits of the buyer or help in achieving his non-monetary objectives. etc. To get the advertiser’s name on the buyer’s list of sources. To induce inquiries. cigarettes and alcoholic beverages are examples. To reduce selling costs.
. To create or change a buyer’s attitude.
B. Consumer Advertising Most of the consumer goods producers engage in consumer product advertising. to create or change a company’s image. detergents and soaps. Baring a few. To provide support for the salesman. Marketers of pharmaceuticals. There is a heavy competition among the advertisers to establish an advantage for their particular brand.A. They are: To inform. To motivate distributors. Advertising agencies are much less useful in industrial advertising. scooters. cosmetics. The objectives vary according to the firm and the situation. To establish recognition for the firm or its product. Industrial Advertising Industrial executives have little confidence in advertising. and general management publications. all these products are all package goods that the consumer will often buy during the year. The task of the industrial advertiser is complicated by the multiple buying influence characteristics like. To bring in orders. exhibits. To help get items in the news column of a publication.
. One aspect of retail advertising is co-operative advertising. The store personnel are usually given this responsibility as an added task to be performed.5. It refers to advertising costs between retailers and manufacturers.” Advertising agencies are rarely used. From the retailer’s point of view. generally. Wholesale Advertising Wholesalers are. National Advertising B. petrol pumps and banks. not advertising minded. They would benefit from adopting some of the image-making techniques used by retailers – the need for developing an overall promotional strategy. Advertising based on Area of Operation It is classified as follow: A. Retail Advertising This may be defined as “covering all advertising by the stores that sell goods directly to the consuming public. also advertising by establishments that sell services to the public. It includes. cooperative advertising permits a store to secure additional advertising that would not otherwise have been available. Wholesale Advertising
A. 6. together with their normal functions. They also need to make a greater use of supplier promotion materials and programs in a way advantageous to them. Trade Advertising A. such as beauty shops. Regional Advertising C. B. The result is that advertising is often relegated to a secondary position in a retail store. either for themselves or for their suppliers. Retail Advertising B.
Retailer advertisements usually provide specific goods sales during weekends in various sectors. near Lucknow). Local advertising It is generally done by retailers rather than manufacturers. For example. radio. outdoor. newspaper and direct mail advertising. prices. Amrit Vanaspati based in Rajpura claims to be the leading hydrogenated oil producer in the Punjab. Regional advertising It is geographical alternative for organizations. But. it mainly confined itself to one of the vegetable oil brands distribution to Malihabad district (in U. location. and so on. until recently.
C. For example: TV. The famous national advertisers are: Hindustan Levers DCM ITC Jay Engineering TISCO B. Advertising According to Medium The most common classification of advertising is by the medium used. This classification is so common in use that it is mentioned here only for the sake of completeness. business periodical. National advertising It is practiced by many firms in our country. These advertisements save the customer time and money by passing along specific information about products. Most national advertisements concentrate on the overall image and desirability of the product. magazine. It encourages the consumer to buy their product wherever they are sold.P.
This chapter deals these three problems.. to increase the sales turnover and thus to market the maximum profit. (b) Different newspapers may be selected for advertisements of different departments. (c) Coupon blank etc. Whether. two types of tests pre tests and post tests.Measuring Advertising Effectiveness
All advertising efforts are directed mainly towards the achievement of business. a need is generally arisen to measure the effectiveness of the campaign. The technique is known as keying the advertising.
. advertising copy and the effectiveness of individual media. The effectiveness of advertising in a particular media may also be measured in any of the following ways – (a) By giving different addresses to different media. affect the future sale of the product. desired sales profitability or results in terms the change in customer’ behaviour in favour of the company’s product which will naturally. Thus in measuring the effectiveness of advertising we include measuring of the effectiveness of advertising campaign. Pre tests are generally conducted in the beginning of the creation process or at the end of creation process or production stage. The advertiser spends lakhs of rupees in to this advertising activity. As soon as the advertising campaign is over. There are several pre and post tests techniques to measure the effectiveness of the advertising copy. In order to measure the effectiveness of advertising copy. May be provided with the advertisement or (d) Enquiry from consumers should mention the name of the source of information.e.
marketing and advertising objectives i.e. is an attempt to attract the customer towards the product through advertising. In the background of all these efforts. it has achieved the desired results i.can be undertaken.
(3) Avoids possible failure
Advertisers are not sure of results of advertising from a particular advertising campaign. change in consumer attitudes. It facilitates timely adjustments in advertising to make advertising consumer oriented and result oriented.
(2) Provides feedback for remedial measures
Testing effectiveness of advertising provides useful information to the advertisers to take remedial steps against ineffective advertisements. advertising is published in test markets and results are contrasted with other. The main purpose of advertising is communicated the general public. changes in dealer display and so on depending upon the objectives sought by the advertiser. 39
. various information about the product and the company. Thus waste of money in faulty advertising can be avoided. Markets – so called control markets – which have had the regular advertising program. Evaluating advertising effectives helps in estimating the results in order to avoid complete loss. If the expected rate of return is achieved in terms of additional profits. The measurements made to determine results may be measurements of change in sales. It is therefore desirable to seek post measurements of advertising in order to determine whether advertisement have been seen or heard or in other words whether they have communicated the theme.Importance of measuring the Effectiveness of Advertising (1) It acts as a Safety measure
Testing effectiveness of advertising helps in finding out ineffective advertisement and advertising campaigns.
(4) To justify the Investment in Advertising
The expenditure on advertisement is considered to be an investment. The rate and size of return should be determined in advance. message or appeal of the advertising. the advertisement can be considered as effective one.
(5) To know the communication Effect
The effectiveness of the advertisement can be measured in terms of their communication effects on the target consumers or audience.
(6) Compare two markets
Under this procedure. The investment in advertising is a marketing investment and its objectives should be spelt out clearly indicating the results expected from the campaign. and existing and prospective consumers.
the variation in sales over the time periods covered in the study (b) Experimental Control The other measure of advertising effectiveness is the method of experimental control where a casual relationship between advertising and sales is established. a relationship between advertising and sales is established. Most of the managers believe that the advertisement directly affects the sales volume and hence they evaluate the effectiveness of the advertising campaign by the increase in the sales volume. This method is quite expensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. The following are some of the methods that are generally used in measuring that advertising effects. A comparison of sales of two periods or two periods or two markets may be done and the corresponding changes may be noted.METHODS OF MEASURING ADVERTISING EFFECTIVENESS
Advertising is aimed at improving the sales volume of a concern so its effectiveness can be evaluated by its impact on sales.
. This technique estimates the contribution that advertising has made to explaining in a co relational manner rather than a casual sales. Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs. One experimental approach to measuring the sales effectiveness of advertising is test marketing. (a) Historical Sales Method Some insights into the effectiveness of past advertising may be obtained by measuring the relationship between the advertising expenditure and the total sales of the product. There may be two types measures (i) (ii) Direct measures: and Indirect measures:-
(1) Direct Measures of Advertising Effectiveness Under direct measures. It would show how the changes in advertising expenditure have corresponding changes in sales volume. A multiple regression analysis of advertising expenditure and sales over several time periods may be calculated. Media schedules expenditure levels or some combination of these advertising decision areas.
The management is concerned about the number of target audiences who see or hear the organization message set in the advertisement. Despite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results. These measures do not evaluate the effects of advertisements directing on sales or profits but all other factors such as customer awareness or attitude or customer recall of advertising message affect the sales or profits or goals of the business indirectly. there is no other alternative but to use indirect measures. and then the advertising campaign is presented to the test cities and not the central cities. Marketers or advertisers may obtain an idea of exposure generated by the medium by examining its circulation or 41
.(i) Before-after with Control Group Design This classic design uses several test and control cities in this design two types of cities are selected. most firms rely heavily on indirect measures.The power of this multivariable factorial design is explained by G. former Fords Director of Marketing Research. Thus. The most commonly used measures are – (i) Exposure to Advertisement In order to be effective. in this experimental model it is possible to evaluate how each individual medium behaves alone and in all possible to evaluate how each individual medium behaves alone and in all possible combinations with other media. can then. Multivariable designs Produce these explanations and are.Brown. Without exposure. First of all. eight possible geographic areas have been exposed and eight have not been exposed. For any single medium. it is not successful in explaining the success or failure of the campaign itself. Cities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities. (2) Indirect Measures As it is very difficult to measure the direct effect of advertising on company’s profits or sales. the normal sales level is calculated for both type of cities prior to advertising campaign. be measured by subtracting the amount of post campaign figure of sale from the pre campaign sale figures in test cities (ii) Multivariable Experimental Designs While the experimental design discussed above yields a reasonably accurate estimate of the effects of the advertising on sales. therefore used by some very large firm because of their diagnostic value. advertisement is bound to failure.H. The effect of advertising campaign. the advertisement must gain exposure.
for new products.
. But. newspaper or journal sold the number of persons passing the billboards or riding in transit facilities. These measures assume that customers can recall or recognize what they have viewed or listened to. The assumption of this type of measure is that there is a direct relationship between the advertisements and the awareness.V. they have already seen. or the number of persons living in the televiewing or radio listening area. hear or listen to the advertisement and then researchers ask question regarding the advertisement just to test the recall and then evaluate it. Under this measure. In post-test method. the consumers are asked to indicate the extent to which they recognise or recall the advertisement. Various mechanical devices are being used in the western countries which provide indices of attention such as eye-camera etc. Attention value is the chief quality of the advertising copy the advertisements cannot be said to be effective unless they attract the attention of the target consumers. There are two methods for evaluating the attention getting value of the advertisements. and the number of persons switching on their T. the consumers are asked questions about the indication of recognition or recall after the advertisement has been run. and radio sets at various points of time. This type of measure is also subject to the same criticisms as is applicable to direct measures of effectiveness (sales measures because awareness is also not the direct result of the advertisements. a recall of the message content among a specified group or groups or prospective customers is measured within 24 hours of the exposure of the advertisement.audience data which reveal the number of copies of the magazine. One is pre-test and the other is post-test. (iii) Brand Awareness The marketers who rely heavily on advertising often appraise its effectiveness by measuring the customer’s awareness about the particular product or brand. In a pre-test evaluation. This test is conducted in the laboratory setting. It is also affected by many other factors. This number can be estimated by interviewing the numbers of the audience for different media. (ii) Attention or Recall of Advertising Message Content This is one of the widely used measures of advertising results. changes in awareness can often be attributed to the influence of advertising. Here consumers read.
(vi) Action One objective of advertisement may be assumed to be to stimulate action or behavior. It seems from the analysis of the above methods of measuring effectiveness that directly or indirectly changes in sales or profits are taken as the measuring rod of the effectiveness of the advertising. Several measures are used ranging from asking the questions about willingness to buy the likelihood of buying to the measurement of the extent to which specific attributes (such as modern or new) are associated with a product. (v) Attitude Change Since advertising is considered to be one way of influencing the state of the mind of the audience towards a product. Under this type of measure. The assumption is that if an increase in sales follows a decrease in advertising expenditure. One may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. these above measures (direct or indirect) are used to evaluate the effectiveness of advertisements. 43
. The action or intention to take an action may be measured on the intention to buy measuring instrument. Various tests for valuating comprehension are available – One is recall tests – an indicator of comprehension because it is evident that consumers recall what they comprehend.(iv) Comprehension Consumers generally use advertisements as a means of obtaining information about the product. Thus. consumers are asked to respond why they are interested in purchasing the product or brand. Logic suggests that measurement of sales is preferable to other measurements. They cannot be informed unless they comprehend the message (grasp the message mentally and understand it fully). One type of action that advertisers attempt to induce is buying behavior. service or organisation. brand or the manufacturer. One may ask typical target consumers from time to time such questions like ‘what did you think of our new commercial?’ and ‘Did it get the message across’? The answers of these questions will provide sufficient insight into advertising decision making. the results are very often measured in terms of attitudes among groups exposed to advertising communication. Another measure of the variable is to ask questions about subjects how much they have comprehended a message they have recently heard or seen. the change in sales levels are good indicators of the effectiveness of advertising.
In a very real sense the integrity of promotional activities rests on how well those activities work. But this is very difficult task because measurements are imperfect and imprecise. Indeed. In this sense. it is very necessary to know how advertising affects the buyer’s behaviors. Both practitioners and critics feel that promotional activities should only be accepted as socio – economic – institution with full right and privileges “when the means exist to prove that advertising super are productive rupees’ It is undoubtedly a source of embarrassment that we cannot exactly measure the effectiveness of advertising in definitive terms. (b) The reaction of competitors in the field cannot be guessed in anticipation and (c) The unexpected events (such as change in social and economic environment and the government policies etc. If we take a hypothetical case of a retailer who contract to spent 44
. advertising can be recognized as a business activity like other activities. Such events may influence the results of the advertising efforts. By regular evaluation of the effectiveness.) cannot be accurately anticipated. An advertising budget that is spent on some poorly defined task or on undefined tasks may be regarded as an economic waste as compared to that spent to achieve the well defined objectives for which the results can be measured. it is a source of discomfort that specific results of advertising activities have not always been subject to precise measurement. Advertising can be said to be effective otherwise it will be a waste of money and time. it to which it achieves the objectives set for it. the short comings and the plus points would be revealed and the management would be able to improve the campaign by negating the shortcomings and retaining the favorable point. The effectiveness of advertising can be measured by the extent.(a) The reaction of consumer – buyers to the advertising efforts cannot be known in advance. Any social institution upon which a significant portion of our total productive efforts is expanded should be able to point to its specific accomplishment. If it succeeds in attaining the objectives.COMMUNICATION EFFECTS OF ADVERTISEMENT
The management should attempt to evaluate the effectiveness of the advertising campaign if the firm’s advertising goals are to be achieved and the ad effectiveness is to be increased. The exact result of advertisement expenditure is very difficult to predict because. For this purpose.
It is so because the cause and effect – relationship cannot be established in advance when a multitude of variable impinge upon a particular event. commercials as good as those of our competitors? Will the print advertisement. So they test the proposed advertisement with pre test and measure the actual results with a post test.. and whether on going campaign should be stopped continued or changed. Pre test may be done either before an advertisement has been designed or executed after it is ready for public distribution or at both points. But it does not mean that that we cannot measure the effects of particulars advertising effort. The overwhelming success of the sale is the joint result of all the above variables and it is quite impossible to isolate the role of any one variable. In the past. protesting was done by the advertising agencies but now the advertisers have been taking an increasingly active role in protesting process. the management needs answers to such questions as: was the advertising campaign really successful in attaining the advertising goals? Were our T. What caused the success of sale? They message theme colors etc.5000 on advertisement with a local newspaper for a special sales even. It is entirely possible that a poor advertising support may push up the sale because everything else falls into its proper place or the reverse may be possible. make consumers aware of our new product? To get answers of these questions. The advertising executives are much concerned about the assessment of the effectiveness of the advertising efforts.V. and if they are not satisfactory how they might be improved. the advertisers are interested in knowing what they are getting for their advertising rupees. During protesting there is often research on three vital questions:(i) Do consumers feel that the advertisement communicates something desirable about the product? (ii) Does the message have an exclusive appeal that differentiates the product from that of the competitors? 45
.Rs. Weather conditions or the goodwill of the firm etc. The advertisement is seen and the response is much greater than it is anticipated. As indicated earlier. of the advertisement or the low prices quoted during the sale of the superior quality of the product or absence of competition in the market on the day or the favorable.tests and post – tests ) are deeded to determine whether proposed advertisement should be used. various tests of effectiveness (Pre. Pre.tests are conducted before exposing target consumers to the advertisements and post tests after consumers have been exposed to them. which we have designed. For this purpose.
Among these are:-
.(iii) Is the advertisement believable? Although a lot of money is spent on protesting yet the advertisers like to confirm the results by post testing of their promotional campaigns due to the following reasons:(i) There is a need produce more effective advertising by retaining the good and removing the bad. The communication effect on sales may be presented in the following figure:Communication Effect on Sales Awareness ↓ Attitude ↓ Trial ↓ Satisfaction ↓ Purchases or repurchase Awareness builds a favorable or at least a curious attitude towards the product which leads to experimentation. The advertisers are therefore. If consumer is satisfied with the trial he may decide to purchase the product. There are many critical and unresolved issues in determining how to test the communication effects of advertising. concerned with their impact on consumer awareness and attitude. (iii) There is a need for measuring the results to determine the level of expenditure that is most promising. however sales may be slight and important but in the long run its effects ob brands and companies may be of great importance. Most research focuses on the communication effect rather than sales effect because it is a long run process. (ii) The advertising executives can prove to the satisfaction of the management that a higher advertising budget will benefit the firm. In the short run. Indirectly it will affect the sales in the long run. by changing the consumer awareness and attitude.
Quantitative data are the easiest and the almost precise measurement.(1) Exposure Conditions – Should advertising be tested under realistic conditions or under more controlled laboratory conditions? (2) Execution – Protesting a finished advertisement as an expensive and time consuming. Quantity Data.
. commercials are tested by inviting a group of people to the studio to view a program. Print advertisements are tested through dummy magazine portfolio tests. But qualitative data collected through interviews may provide information that short answer questions never can. Does protesting a preliminary execution produce accurate and useful data? (3) Quality Vs. The audience is then surveyed about the commercials. Many types of advertising tests are conducted (different methods of pre tests and post – test are given in question number) In T.V.
Added to this is the fact that advertisement itself is made of a variety of variables such as media. For example direct mail advertising can effectively be measured by the inquiries received. Since. locations. It is so because advertising is no the only variable that effect the sales. we may conduct that sales effect of advertising is difficult to measure because a number of variables affect the quantum of tales and the contribution of advertisement cannot be measured separately unless all other variables are presumed to be constant. Suitability In small business firms where the marketing research resources are limited advertising managers may decide on less expensive and less relevant measures.
. Thus even if the advertising variable is separated this would still not answer the question about the effectiveness of the individual components of the advertising campaign. a distinct effect of advertising on sales cannot be correctly measured. page or time of the day. Although there may be some exceptions. the effect is the result of so many variables. So advertisers try to measure the communication effect of the advertising. But in many situations the exact relationship between advertising activity and sales cannot be established satisfactorily. Thus. which has more access to research. messages. Many firms try to measure the effectiveness of advertising in terms of sales results but this practice is always misleading. This situation is quite hypothetical and almost nonexistent. The big business house. may decide on the more relevant and expensive measures. colours. We can correctly assume that some sales will occur even though there is no advertising or little advertising or conversely there will be no increase in sales after the point of saturation is reached or it may be that sales will show a decreasing trend at this point in spite of large amount of expenditure on advertising is done.Compunction Effectiveness Vs Sales Effectiveness It is easier to assess the communication effect of advertising than the sales effect. the size of the headline and the appeals used.
. legal. by it can lessen the social value of advertising by reducing the amount for useful information that it provides to society. However. Another concern is that advertising. and advertising for products such as alcohol and cigarettes. Even more difficult consideration for people involved in the advertising effort is broad social and economic issues. especially when it is more irritating than entertaining. such an approach can result not only in ineffective advertising. One solution is to create brand advertising that is vague and contains little specific information. Law forbids deceptive advertising. Thus. Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other. and advertiser who attempts to provide specific. and the use of environmental and health claims in advertising. and global. is an intrusion into an already excessively polluted environment. relevant information must be well aware of advertising regulation.Factors Affecting Advertising
The final external factor in the planning framework concerns environmental factor social. A whole set of rules is emerging to cover advertising directed at children.
By stimulating the development of new products. advertising enables manufacturers and others to sell their products in larger quantities. 1. advertising helps increase competition. sell them at a lower price. This is especially true in the United States where the advertising industry plays such a prominent role.IMPACT OF ADVERTISEMENT
Advertising has an important effect on a country’s economy. Manufacturers know that advertising can help sell a new product quickly. According to this view. Economic Impact Most economists believe that advertising has a positive impact on the economy because it stimulates demand for products and services. They argue that the cost of advertising adds to the cost of goods and that most advertising simply encourages consumers to buy one brand rather than another. Many economists believe that increased competition leads to lower prices. culture. rather than increasing sales overall and thereby benefiting the economy as a whole. and political system. society. Advertising thus benefits consumers by helping lower prices. strengthening the economy by promoting the sale of goods and services.
. These economists also argue that by interesting consumers in purchasing goods. thereby benefiting consumers and the economy as a whole. enabling them to recoup the costs of developing new products. believe that advertising is wasteful. The increased volume of sales enables companies to produce individual units at lower costs and therefore. advertising simply moves sales from one company to another. however. Other economists.
many ads today still emphasize a woman’s sexuality. ads continued to focus on their role as homemakers. Due to the influence of the civil rights movement. As ads have begun to more fully reflect the lives of women and African Americans in the United States. pleasures. many African American organizations and community activists continue to object to the way that alcohol and tobacco companies have seemingly targeted low-income minority communities with a heavy preponderance of outdoor advertising for their products. increasing attention has been paid to the way in which advertising shows other ethnic groups. Social Impact Advertising can have wide-ranging repercussions on a society. magazines. However. Newspapers. Advertising has a major social impact by helping sustain mass communications media and making them relatively inexpensive. Whether owing to the feminist movement or to women's increasing economic power. and goals. Prior to 1960. however. after the 1960s it became more common to see women depicted in professional roles. and Eastern Europeans. However. Native Americans.2. or business people. There is still considerable debate over how advertising influences public perception of gender and of particular ethnic groups. Some critics suggest that advertising promotes a materialistic way of life by leading people to believe that happiness is achieved by purchasing products. if not free. Although millions of women worked outside the home in the 1960s. Ads in the 1950s depicted women primarily as decoration or sex objects. They argue that advertising creates a consumer culture in which buying exciting new products becomes the foundation of the society's values. radio. and broadcast television all receive their primary income from 51
. advertisers by the 1980s had begun to depict African Americans as students. to the public. The way advertising has depicted racial minorities has also been harmful. Asians. African Americans were usually shown in a subordinate position. Other critics express concern over the way advertising has affected women and racial minority groups. including Hispanics. professionals.
and free entertainment might no longer be widely available. shows that are more likely to interest and to be of value to older audiences are not produced. many of these forms of mass communication might not exist to the extent that they do today. Advertisers may affect media programming in other ways. At the same time. This preference causes TV networks to emphasize this type of programming. but some members of the media acknowledge that they might not be inclined to investigate an issue aggressively if it threatened to offend a major advertiser. society might not be alerted to harmful or potentially harmful conduct by the advertiser. For example. Reporters and editors. Without advertising. it may exercise undue influence on the news media and thereby curtail the free flow of information in a free society. If the ratings show that a program is not attracting large audiences. however. In-depth news programs. or even be subject to government control through subsidies. too. which causes a program to be canceled. The impact of television on young children has received much attention. companies that sponsor TV programs prefer relatively wholesome. particularly among 18 to 34 year olds.advertising. noncontroversial programming to avoid offending a mass audience. As a result. Most members of the news media deny that pressure from an advertiser prevents them from pursuing news stories involving that advertiser. some critics warn that because advertising plays such a major economic role. offer less variety. may be hesitant to develop a news story that criticizes a major advertiser. advertisers often withdraw support. As a result. television shows are often developed with this audience in mind. for example. which makes them especially vulnerable to advertising. Because advertisers are especially interested in attracting the 18 to 34 year olds who account for most consumer spending. 52
. or they might be considerably more expensive. Research suggests that children see television advertising as just another form of programming and react uncritically to its messages. critics charge. The result is that society may be denied the benefits of being able to view challenging or highly original entertainment programs or news programs on controversial issues. a diversity of magazines.
As a result. In 1998 more than $467 million was spent on election campaigns in the United States. devote large amounts of time to weightlifting. Advertising professionals did not become involved in electoral campaigns until the 1950s. New research suggests that adolescent boys are also being influenced by advertising images of bulked-up. and may even take drugs that have harmful side effects in order to develop more muscle. Political advertising enables candidates to convey their positions on important issues and to acquaint voters with their accomplishments and personalities. Television advertising is especially effective for candidates running for national or statewide office because it can reach so many people at once. Because of the high cost of television ads. making it necessary for candidates to raise money continually. history. 3. thin models. Candidates can also use advertising to respond effectively to the charges of their opponents. political advertising has grown in sophistication and complexity.S. even after they have been elected to office. Those over the age of 60 are thought to be less influenced by advertising. the costs of political campaigns have skyrocketed. Research indicates that many adolescent girls are unduly influenced by this standard of beauty. but some elderly people no longer process messages as easily as younger people. have tried to address the impact of television advertising on political campaigning. buffed bodies. become dissatisfied with their own bodies. But since then. Various campaign finance reform proposals. Political Impact Advertising is now a major component of political campaigns and therefore has a big influence on the democratic process itself. Critics say this factor jeopardizes the democratic process by making elected officials beholden to 53
. many become dissatisfied with their own body image.There is also concern about the way in which adolescent girls respond to advertising that features beautiful. however. making them more susceptible to questionable advertising claims. Political advertising is a relatively new development in U. That amount of spending placed political advertising in the ranks of the country’s 30 leading advertisers that year. and may develop eating disorders in pursuit of a thin figure.
however. in some cases achieving the status of folklore or taking on new life in another arena. multinational corporations often use the same advertising to sell to consumers around the world.wealthy contributors and by making it more likely that only the wealthy will run for office. thereby distorting the political process. As a result. The ad ridiculed a competitor by depicting a small hamburger patty dwarfed by a huge bun. Some advertising messages. Some critics argue that advertising messages are thus helping to break down distinct cultural differences and traditional values. overriding cultural differences. Issues are simplified. or they contribute to culture in a positive way. During a primary debate one of the candidates used the ad slogan to suggest that his opponent’s campaign lacked substance. have universal appeal.
. They contend that this practice is harmful to good government. For example. which may clash with the traditional cultural values of a country where the collective or group is emphasized over the individual or humility or modesty is preferred to aggressiveness. 4. encourage aggressive individualism. causing the world to become increasingly homogeneous. Critics of political advertising also charge that the 30-second television spot has become more important to a political campaign than a thorough discussion of the issues. With the globalization of the world economy. Many advertising campaigns. a popular ad campaign for a fastfood chain with the slogan “Where’s the beef?” became part of the 1980 Democratic presidential primary campaign between Gary Hart and Walter Mondale. Some reform proposals have called for free airtime. and candidates are “packaged and sold” much like a consumer product. voters are bombarded with image advertising rather than being acquainted with the candidate’s positions. Cultural Impact Advertising can affect cultural values. Humor in advertising has made many ad campaigns widely popular. for example. but television and radio networks have resisted this idea.
Research Design Data Source Research Instrument Sample design Sample size Sample location : Descriptive : Primary data : Secondary data : Questionnaire : Simple random design : 100 : Delhi : NCR Sample element : Students : House hold : Professional
Gather the data by conducting the proper experiment (or. The chi-square test is always testing what scientists call the null hypothesis. Were the deviations (differences between observed and expected) the result of chance. Step-by-Step Procedure for Testing Your Hypothesis and Calculating Chi-Square 1. How much deviation can occur before you. 4. d). For example. which states that there is no significant difference between the expected and observed result The formula for calculating chi-square ( χ2) is: χ2= (o-e)2/e That is. chi-square is the sum of the squared difference between observed (o) and the expected (e) data (or the deviation. not percentages. or were they due to other factors. Locate the value closest to your calculated on that degrees of freedom df row. if. causing the observed to differ from the expected.RESEARCH METHODOLOGY Chi-Square Test
Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis. Round off your answer to two significant digits. Use the chi-square distribution table to determine significance of the value. Determine degrees of freedom and locate the value in the appropriate column. 3. Complete all calculations to three significant digits. Determine the expected numbers for each observational class. then you might want to know about the "goodness to fit" between the observed and expected. you expected 10 of 20 offspring from a cross to be male and the actual observed number was 8 males. use the data provided in the problem). State the hypothesis being tested and the predicted results. Move up the column to determine the p value. Remember to use numbers. divided by the expected data in all possible categories. the investigator. must conclude that something other than chance is at work. Calculate 2 using the formula. 2. according to Mendel's laws. Chi-square should not be calculated if the expected value in any category is less than 5.
. if working genetics problems.
means that there is a 60% probability that any deviation from expected is due to chance only.
The primary data has been collected by preparing a questionnaire. State your conclusion in terms of your hypothesis. For example.01 means that there is only a 1% chance that this deviation is due to chance alone. a p value of 0. If the p value for the calculated is p > 0.05. and conclude that some factor other than chance is operating for the deviation to be so great.
The secondary data is also of utmost importance. A list of all those referral websites is mentioned later in the report in references. A p value of 0. for example.05. Therefore. 'The deviation is small enough that chance alone accounts for it.
ANALYSIS OF DATA COLLECTION
In order to present the report with a pragmatic approach along with the theoretical aspect some primary and secondary data is collected so as to present our report with facts and figures. reject your hypothesis. If the p value for the calculated is p < 0. This is within the range of acceptable deviation. Various facts and figures have been gathered through different websites & portals. The chi-square test will be used to test for the "goodness to fit" between observed and expected data from several laboratory investigations. which was circulated over hundred persons. accept your hypothesis. They have been asked questions regarding the different kind of media affecting their choices regarding the different products.6. It helps in the in depth analysis of the organization. A specimen of the questionnaire is attached. other factors must be involved.
Sampling Unit is the total number of samples differed in different locality. 2. of Classes 33 34 33 100
Data have been collected through the survey method while surveys have been conducted in one city: i) ii) Delhi NCR
The data collected was both from the primary and secondary source. The primary data was collected through questionnaires and was collected personally. 3. Classes Students Professionals Household Total No. We have considered 100 as sample size. The secondary data was collected through books.
. Sl. No. 1. All the area had segmented according the population of this area. magazines. and websites.
4 E13=(R1c3)/N=(48*20)/100=9. Step3: Calculation for the expected frequency We use formula (Row total*column total)/Grand total E11=R1C1/N=(25*20)/100=5.05.4 E22=(R2c2)/N=(48*20)/100=9.6 E23=(R2C3)/N=(25*20)/100=5. HA: There is significant difference( or relationship) between the people occupation and the mode of advertising media affecting their perception. Type of media⇒ Occupation of people⇓ Student Professional Household Total Outdoor media Print media Electronic media
10 10 5 25
8 9 10 27
2 1 45 48
20 20 60 100
Step 1: H0: There is no significant difference (or no relationship) between the people occupation and the mode of advertising media affecting their perception.6 EE21=(R2C1)/N=(27*20)100=5. E12=(R1C2)/N=(27*20)100=5.CHI-SQUARE TEST
Aim.8 Step 4: Test statistic for testing H0 is: ℵ^2=∑(0i-Ei)^2/Ei
.2 E33=(R3C3)/N=(48*60)/100=28. E31=(R3C1)/N=(60*25)/100=15 E32=(R3C2)/N=(27*60)/100=16. Step 2: Level of significance α considered in this analysis is 5% α=0. Following is the information collected from the primary source .To find out is there a relationship between the occupation of the customer and mode of advertising media affecting their perception with regards to different products.
(Oi.488 Step6: ℵ^2 cal > ℵ^ tab.96 73.4 7.4 9..79
Step 5: Statistic follows a chi-square distribution. columns) Degree of freedom df=(r-1)(c-1) = (3-1)(3-1) = 2*2= 4.66 2. Tabulated value at 4 degree of freedom and 0. of rows c= no.Observed frequency Oi 10 8 2 10 9 1 5 10 15
`Expected Frequency Ei 5 5. Hence People with different occupation are affected differently by different kinds of media i.25 6.6 15 6 28.66 9.76 57.0.70 6. So (r=no.05 level of significance.Ei)^2 25 6.1125 ℵ^2 =45.76 25 12. The decision rule is to reject the null hypothesis if the calculated value of the ℵ^2 comes to be greater than the tabulated value of the ℵ^2 and to accept it otherwise.electronic media and Outdoor media
.4 9.96 100 16 262.e Print media .6 5 5. D(4.01 5 2. Thus accept the HA. Step:7 Conclusion: There is a significant difference between the people occupation and mode of media affecting their perception regarding different products.44
( Oi-Ei)^2/ Ei 5 1.05)= 9. In this case we reject null hypothesis.
2. Which form of advertisement do you like more?
. From where do you get information about the new product?
Answers Television & other electronic media Newspapers and Magazines Outdoor advertizing (billboards and hoardings) No. of respondents 48 27 25
A large size of population is influenced by Television and Newspapers.GRAPHICAL INTERPRETATION
Answers Still image Moving image
No. of respondents 28 72
People are more affected by advertisement with moving image.
of respondents 62 38
More number of people consider advertisement as a source of information rather than a source of entertainment.
. For you advertisement is a source of :
Information Entertainment No.3.
Entertaining advertisement does not affect the opinion of customer about the product
. Does entertaining advertisement affect your opinion about the product?
Answers Yes No
.5. of respondents 87 13
Information provided in the advertisement affect very much on the opinion of consumers about the product. Does information provided in advertisement affects your opinion about the product?
Answers Yes No No.
Does language used in advertisement affects your opinion about the product?
Answers Yes No No.6.
. of respondents 63 37
Language used in the advertisement affects a lot on the opinion of consumers about the product.
. Does presence of any celebrity in the advertisement affects your opinion about the product?
Answers Yes No No. of respondents 69 31
Presence of any celebrity affects on the opinion of consumers about the product.7.
Does intensity of the advertisement affects your opinion about the product?
Answers Yes No No. of respondents 52 48
The effect of intensity is very powerful on the opinion of consumers about the product.8.
Does presence of social issues in the advertisement affects your opinion about the product?
Answers Yes No No.9. of respondents 59 41
Presence of social issues in advertisements affects very much on the opinion of consumers about the product.
of respondents 87 13
Advertisement helps very much in increasing the sales of any product.10.
. Do you think advertisement helps in increasing sales of any product?
Answers Yes No No.
Social issues included in advertisement affects the perception of high age group people.
Language used in the advertisement also plays important role in increasing effectiveness of an advertisement. Advertisement increases the sales of any product. Information provided in the advertisement has more influence on consumer’s perception about the product. Intensity of advertisement affects the perception of consumers towards the product and leads them for its purchase.FINDINGS
Advertisements with moving image are more effective than advertisement with still image.
. National advertisement has more influence on consumer’s perception about the product instead of local advertisement.
This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated.” Advertising focuses on mass production and mass communication along with the niche markets and specialized markets . motion pictures used for advertising. goods or services. The objectives of advertising were traditionally stated in terms of direct sales. Circular of all kinds. Window display and counter – display materials and efforts. Store signs.
Each advertisement is a specific communication that must be effective. by person. The American Marketing Association. the objectives of advertising should be specific. Dealer help materials. 72
. has defined advertising as “any form of nonpersonal presentation or promotion of ideas. by an identified sponsor. not just for one customer. Advertising includes the following forms of messages: The messages carried in Newspapers and magazines. but for many target buyers. This means that specific objectives should be set for each particular advertisement campaign.SUMMARY
Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. Advertising is a form of promotion and like a promotion. thorough tradesmen. Now. On radio and television broadcasts. it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. Chicago. Advertising seeks to condition the consumer so that he/she may have a favorable reaction to the promotional message. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising program. Label stags and other literature accompanying the merchandise. or by
inserts in packages). Novelties bearing advertising messages and Signature of the advertiser. (whether distributed by mail.
CHI-SQUARE reveals that all the determinants are not internally equal they are significantly different from one another. Similarly, all the parameters are not internally equal they are significantly different from one another. In order to measure the effectiveness of advertising, which approach (communication effectiveness or sales effectiveness), is more suitable? Two factors are to be considered in deciding the approach. They are 1. Relevance of advertising objectives on the overall performance objectives: Generally advertising managers would like to know the role of advertisements on the overall performance of the business firm i.e., return on investment and on profitability. A sale is a determining factor of company performance. 2. Difficulty and cost of obtaining data needed to evaluate effectiveness: Generally communication measures are easy to follow than sales effectiveness measures. If the measures of advertising are more relevant they will be difficult and costly. If it is less difficult and cheap the measures will not be more relevant. Therefore, the advertising manager has to make a balance between these two approaches.
The marketing researcher has to face certain difficulties while he carries out the research work. He knows the limitation beforehand, uncontrollable and others are controllable. Some important limitations, which are faced by researchers as follows: -
Sample size restricted to 100 only which was very less according total population.
The responses given by respondents were not always accurate because the respondents gave the response according to their understanding.
Survey is a time consuming process but the time to collect the data for research was very less.
Sometimes the respondents are not willing to fill the the resultant may not be correct.
questionnaire and hence
Marketing researchers studies the behavior that is rational. Very often, they do not express their feeling correctly what they think. In such cases their habitual, practice, preferences cannot be assessed correctly.
Advertisement should be made with keeping the determinants of effectiveness in mind. Advertisement should be according to the product and its suitability with different age groups. To make advertisement more effective all the determinants of effectiveness should be taken care of.
Investment in advertisement should be made with great care of media of advertisement and type of advertisement. Advertisers should develop new and more effective ways of advertisement.
Marketing Management. Printice hall. 3. India. Advertising Management : concept and cases. New Delhi. Internet 1.L (2005). Gupta S. Advertising and Sales Promotion Management. 2. India. Excel Books.(2000). Kapferer J. http://books.com/books?id=t-yoHkKZ9ZsC&q=marketing&dq=marketing&cd=1 2. Ltd. Kogan page India Pvt. Strategic Brand Management – Kapferer 5.REFERENCE
Books 1. . 4. http://books. (2009) Strategic Brand Management . Tata Mc Grawhill. (1989).google.google. Kotler Philip. The millennium edition. Mohan M.com/books?id=wAMsaLJoykYC&dq=marketing&cd=3
. Internet e...... Newspapers and Magazines [
2..... Television c. Above 40 Occupation: a. Outdoor advertizing d.. Female [ ]
1.. Service class [ [ [ [ [ ] ] ] ] a. Which form of Outdoor advertisement do you like more? a..
Name: ………………………………. 20 to 30 c.. Sex: Age: a. Student c.. Business class [ d.ANNEXURE
We are doing a research project as part of our curriculum on “ A Study on Effect of various modes of Advertisement on Consumers”. Still image (Banners and hoardings) [ b... Moving image (Visual display board) [ ] 77
. For this we require you to please fill this questionnaire..... Peers (friends/family) [ [ [ [ ] ] ] ] ] ] b. Male [ ] b. Below 20 b..... 30 to 40 d.. From where do you get information about the new product? a..... House hold [ [ ] ] ] ] b...
Yes b. No product? a. No product? a. No [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ [ [ [ [ ] ] ] ] ] ] ] ]
4. For you advertisement is a source of a. Yes b. Yes b. No a. Entertainment a. Yes b. Does an entertaining advertisement influences your opinion about the product?
5. Does presence of social issues in the advertisement affects your opinion about the
10. Does intensity of the advertisement affects your opinion about the product?
9. Does language used in advertisement affects your opinion about the product?
7. No a. No a. Does presence of any celebrity in the advertisement affects your opinion about the
8. Information b. Yes b. Yes b.3. No a. Yes b. Does information provided in advertisement affects your opinion about the product?
6. Do you think advertisement helps in increasing sales of any product?