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“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)
Ghaziabad to give us a chance to get an industrial exposure. 4 . 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. AREA CHAIRPERSON. We would like to express our gratitude and profound thanks to Dr. TAPAN KUMAR NAYAK. and faculty of Institute of Management Studies.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.
The primary as well as secondary data for the studies.ABSTRACT In India now a days. 5 . For primary data. 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. Secondary data is collected from web resources and books. 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. For this. Method used. Findings. Purpose. companies are using various modes of advertizing and searching for newer ways which effect much more customer. This led to the development of various forms of advertizing and outdoor advertizing is one of them.Various modes of advertizing are equally important and outdoor advertizing is one of them. Various statistical tools like graphical method and chi-square test for our research purpose and analysis of data has been used.In these papers. a questionnaire has been prepared and customers having various perceptions were asked to fulfill it. competition in every field of business is very high and companies are trying to attract maximum number of customers.
5. 10. 12.4 5.1 4.No. 1. 13. 4.1 5.2 4.6 5.8 6. 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 6 . 2. 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.TABLE OF CONTENTS S.2 5.7 5. 3. 4.3 5. 8.5 5. 9. 11. 7. 3.3 5.
This method is still in common use. therefore. These advertising methods were more economical in reaching large numbers of consumers. The seller in primitive times relied upon his loud voice to attract attention and inform consumers of the availability of his services. Informing customers of the availability of supplies was highly important. Thus. Evidences suggest that the Romans practiced advertising. If there were many competitors. made the traders to be more concerned about attracting business. they were still subjected to competitive influences. Development of retail stores. Sometimes traders would talk to present and former customers in the streets. they could not do the whole promotional job. the importance of attracting them also grew. While these advertising methods were useful for informing and reminding and reminding. The merchant still used personal persuasion once the customers were attracted to his store. Increasing reliance was placed on advertising methods of informing about the availability of the products. They were used only to reach each consumer personally. the seller was doing the complete promotion job himself.INTRODUCTION It has been wrongly assumed that the advertising function is of recent origin. he relied upon his own personal magnetism to attract attention to his merchandise. or join social organizations in order to have continuing contacts with present and potential customers. Some types of outside promotion were necessary. 7 . As the markets grew larger and the number of customers increased. 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. but the earliest indication of its use in this country dates back to the middle Ages. 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. the merchant’s signs and advertisements reminded customers of the continuing availability of his services. Signs on stores and in prominent places around the city and notices in printed matters were sometimes used.
The early examples of these pamphlets disclose their sponsorship by companies want to generate goodwill for their activities. and assumed the function of fostering demand for existing products. posters had made their appearance. Another important event was the emergence of the pamphlet as an advertising medium. By Shakespeare’s times.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. 8 .
Also studying the perception and consumer attitudes regarding different advertising media will provide an insight to further future development. Outdoor advertising has been focused and compared with the other types of media to make the comparison on the basis of effectiveness. 9 . billboards. that the mode of advertising used like print media i. outdoor advertising i. hoardings. electronic displays plays an important role in determining the buying behavior of consumers . electronic media i.e. Outdoor media is developing and taking shape in best marketing promotion activities. television and radio. magazines and newspaper.e.JUSTIFICATION The present study has focused on effect of outdoor advertising on consumer perception and their attitude towards different products and services.e. It has been observed through various researches.
1975. The adverts are meant for the audience to watch but unfortunately the audience is likely to take active steps in avoiding them.REVIEW OF LITERATURE Kotler. 1975 As known for decades. 10 . Aaker and Mayers. Potter treats every firm as a collection of activities carried out to develop. Bonnex. advertisement is one of the main strategies in marketing either a product or service. advertisements face many challenges in reaching the audience. His theory is even supported by the Honourable Minister Tan Sri Gazali’s speech in 1971(Bernama. strategise and introduce their product in the market.One of the main obstacles is the low audience involvement . Being a key element in the marketing process. Porter (1980). deliver and maintain its products or services. or at least produce a desire to want to know more is not an advert” (Quinn.(1975). It is one of the basis of the supply chain and many advertising agencies are involved in this business in Malaysia.(1994). the audience least make some effort to pay attention or appear to be doing so. The value chain is a systematic approach in examining the development of competitive advantage. 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. Krugman. 1971). Advertising agencies fuel the basic needs of a company to plan.According to a research concentrating on the advertisers viewpoint. 1985). 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.The existence of the advertisement rooted in Malaysia dated back to the 1971 as claimed by in his thesis. It can be defined as “An Advert that does not create a buying response. advertisement is an important tool which companies use to directly persuade buyers and public . In most forms of communication. strategically market.
e. modes of 11 . print media and outdoor media.RESEARCH OBECTIVES To study types of advertisements. profitability. electronic media. To find the ways to make it more effective. To study effectiveness of advertisements i. To study the perception of consumers towards the different advertisement i.e. on sales.
Palmer set up shop as an advertising agent. began carrying ads in 1704. and about 25 years later Benjamin Franklin made ads more readable by using large headlines. Although graphic forms of advertising appeared early in history. the first regularly published newspaper in America. Archaeologists have uncovered many such signs. In the American colonies. One of the first known methods of advertising was the outdoor display1. An outdoor advertisement excavated in Rome offers property for rent. The town criers were forerunners of the modern announcer who delivers radio and television commercials. printed advertising made little headway until the invention of the movable-type printing press by German printer Johannes Gutenberg about 1450. notably in the ruins of ancient Rome and Pompeii. among the Babylonians. the Boston News-Letter. In 1869 Francis Ayer bought out Palmer and founded N. The first advertisement in English appeared in 1472 in the form of a handbill announcing a prayer book for sale. the use of so-called town criers. In medieval times word-of-mouth praise of products gave rise to a simple but effective form of advertising. the forerunner of the advertising agency. Two hundred years later. Later they became familiar figures on the streets of colonial American settlements. Ayer & 1 an eye-catching sign painted on the wall of a building 12 . the first newspaper ad was published offering a reward for the return of 12 stolen horses. Agents contracted with newspapers for large amounts of advertising space at discount rates and then resold the space to advertisers at a higher rate. In the United States. and one found painted on a wall in Pompeii calls the attention of travelers to a tavern situated in another town. the advertising profession began in Philadelphia.ADVERTISING BASICS HISTORY OF ADVERTISEMENT Archaeologists have found evidence of advertising dating back to the 3000s BC. Pennsylvania. W. in 1841 when Volney B. The ads themselves were created by the advertisers. This invention made the mass distribution of posters and circulars possible. The criers were citizens who read public notices aloud and were also employed by merchants to shout the praises of their wares.
advertising had established itself in radio to such an extent that advertisers were producing many of their own programs. so did the sale of TV sets and the advertising that paid for the popular new shows. The tone of the advertising was also changing. an agency that still exists today. all came to prominence in the late 1950s and 1960s and led what has been called the 'creative revolution. the agency created an ad that entertained New Yorkers and provided fodder for many conversations. He also believed that good advertising began with respect for the public's intelligence. No longer did advertising simply present the product benefit. Bernbach believed that advertising had to be creative and artistic or it would bore people. sophisticated. For example. The ad showed a Native American eating a slice of the bakery's rye bread with the headline. Instead it began to create a product image. 13 . The ads his agency created were understated. Leo Burnett.Son. a borough of New York City. Ayer transformed the standard agent practice by billing advertisers exactly what he paid to publishers plus an agreed upon commission. founder of Doyle Dane Bernbach in New York City. but because of the high cost of TV sets and the lack of programming.' But it was the advertising for Volkswagen that made the agency's reputation. Levy Bakery in Brooklyn. it was not immediately embraced. Soon TV far surpassed radio as an advertising medium. Illinois. The early 1930s ushered in dozens of radio dramatic series that were known as soap operas because they were sponsored by soap companies. Soon Ayer was not only selling space but was also conducting market research and writing the advertising copy. when Bernbach's agency picked up the account for the Henry S.' Bernbach's agency captured the spirit of the new age. As the American economy soared in the 1950s. Television had been introduced in 1940. But the introduction of radio created a new opportunity and by the end of the 1920s. Advertising agencies initially focused on print. and David Ogilvy. founder of the Leo Burnett agency in Chicago. 'You don't have to be Jewish to love Levy's. and witty. founder of Ogilvy & Mather in New York City. Bill Bernbach.
The chrome strip on the glove compartment is blemished and must be replaced…We pluck the lemons. The development of interactive television.At a time when American cars were getting bigger and bigger and the advertising for them trumpeted that bigger was better. what they will watch. you get the plums. combining the functions of a computer with access to high-speed transmission over cable lines or optical fibers. The creative foundation established by Bernbach and others has been critical to the success of contemporary advertising. to a greater extent than ever before. they will find it easier to avoid 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. Consumers will be able to determine not only when they watch something.' An equally unconventional ad carried the headline 'lemon' beneath a photo of an apparently flawed Volkswagen. 'think small. 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. 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 ad's copy explained that 'this Volkswagen missed the boat. 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. 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.' In an era of hype and bombast. 14 .
permitting an advertiser to speak to millions of buyers in a matter of a few hours. The American Marketing Association. The advertiser signs his name to his advertisement for the purpose of publicizing his identity. (ii) It makes mass production possible. (vi) The communication is speedy. The dictionary meaning of the term is “to give public notice or to announce publicly”. (iii) It is non-personal communication. 15 .” 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. which means to turn to. for it reaches large groups of people. has defined advertising as “any form of nonpersonal presentation or promotion of ideas. Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. This keeps the cost per message low. (v) Advertising can be economical.DEFINITION OF ADVERTISING The word advertising originates from a Latin word advertise. Chicago. goods or services. nor is it addressed to a specific person. for it is not delivered by an actual person. The elements of advertising are: (i) It is a mass communication reaching a large group of consumers. (iv) It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales. (vii) Advertising is identified communication. by an identified sponsor.
Circular of all kinds. That is. What is excluded from Advertising? Advertising is not an exact science. 16 . because if advertising is done properly. not the medium. Advertiser cannot afford to play with advertising. (i) Advertising is not a game. It should give them a more satisfactory expenditure of their rupees.What is Included in Advertising? (i) The information in an advertisement should benefit the buyers. Window display and counter – display materials and efforts. Advertising funds come from sales revenue and must be used to increase sales revenue. The desire and hope for repeat sales insures a high degree of honesty in advertising. both the buyer and the seller benefit from it. (iii) The content of the advertisement is within the control of the advertiser. (ii) Advertising is not a toy. (ii) It should suggest better solutions to their problems. motion pictures used for advertising. Label stags and other literature accompanying the merchandise. advertising expenses should not increase disproportionately. he cannot predict with accuracy what results his future advertising efforts will produce. On radio and television broadcasts. by person. thorough tradesmen. (whether distributed by mail. An advertiser’s circumstances are never identical with those of another. is a waste of money. inserts in packages). Novelties bearing advertising messages and Signature of the advertiser. (iii) Advertisements are not designed to deceive. Store signs. either immediately or in the future. Advertising includes the following forms of messages: The messages carried in Newspapers and magazines. The advertisement that fails to influence anyone. (v) The function of advertising is to increase the profitable sales volume. (iv) Advertising without persuasion is ineffective. or by Dealer help materials.
The entertainment of customers selling forces.The activities excluded from advertising are: The offering of premiums to stimulate the sale of products. former and future consumers. (iii) To retain the loyalty of present and former consumers. show and conventions. This involves decision regarding copy . (ii) To communicate with consumers. e. thus building loyalty to the brand name or the firm. but for many target buyers. This means that specific objectives should be set for each particular advertisement campaign. Advertising seeks to condition the consumer so that he/she may have a favourable reaction to the promotional message. Now. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. It involves a decision regarding the media. Advertising may be used to reassure buyers that they have made the best purchase. not just for one customer. Advertising Objectives Each advertisement is a specific communication that must be effective. involving news releases and the activities of personal The payment of advertising allowances which are not used for advertising. The basic objectives of an advertising programme may be listed as below: (i) To stimulate sales amongst present. the objectives of advertising should be specific. it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. 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 use of exhibitions and demonstrations at fairs. TV rather than print . The use of samples and activities. 17 . Advertising is a form of promotion and like a promotion.. The objectives of advertising were traditionally stated in terms of direct sales.g.
Advertising strategies that increase the number of units sold stimulate economies in the production process. it thus contributes to enthusiasts and confidence attitude in the organizational. Advertising assumes real economic importance too. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. While sometimes advertising alone may succeed in achieving buyer acceptance. Non-business enterprises have also recognized the importance of advertising. Advertising is to stimulate market demand. it is seldom solely relied upon. The production cost per unit of output is lowered. Advertising is used to promote an overall image of respect and trust for an organization. It can force middlemen to stock the product by building consumer interest. or even demand for the product. It in turn leads to lower prices. Lower consumer prices then allow these products to become available to more people. but also at the government. professional sports. radio and TV programmes. and the like might be prohibitive without advertising. Advertising impliedly bolsters the morale of the sales force and of distributors. This message is aimed not only at consumers. . such as personal selling or point-of-purchase display. preference. The attempt by army recruitment is bases on a substantial advertising campaign. Outlay on advertising certainly is the voucher. IMPORTANCE OF ADVERTIZING Generally. advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. The health department popularizes family planning through advertising Labour organizations have also used advertising to make their viewpoints known to the public at large. It can build dealer and consumer confidence in the company and its products by building familiarity. 18 . wholesalers. and retailers.(iv) To increase support. Advertising is efficiently used with at least one other sales method. shareholders. the price of newspapers. and the general public. Advertising has become increasingly important to business enterprises –both large and small. stressing the advantages of a military career. It can help train dealers salesmen in product uses and applications. : (v) To project an image. to directly move customers to buying action. Similarly.
its growing productive capacity and output necessitates the finding of consumers and advertising plays an important role in this process. advertising as a profession is in its infancy. traders. Because of this fact. physical fitness. In India. Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection. advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life. Though in India. family planning. Advertising has become an important factor in the campaigns to achieve such societal-oriented objectives such as the discontinuance of smoking. and the elimination of drug abuse. there is a tremendous scope for development so that it may be productively used for the benefit of producers. consumers. advertising was accepted as a potent and recognized means of promotion only 25 years ago. 19 .In short. and the country’s economy.
Technological advancements 3. businesses spent $5. Outdoor advertising includes various types of promotional displays. Growth in rural markets 6. from highway billboards to transit posters and arena placement. or give to a charity. Rise in consumerism a) Consumer awareness b) Purchase options c) Buying power 5. Saturation of other medias 20 .OUTDOOR ADVERTISING Any advertising done outdoors that publicizes your business's products and services.8 billion dollars on outdoor advertising in 2004. (OAAA). It might even be a public service announcement. Boom in the real estate and infrastructure a) Malls b) Buildings c) Flyovers d) Toll roads e) Metro trains 4. The message might be to buy a product. Inc. a figure expected to rise again in 2005. Modern urban lifestyles 2. FACTORS AFFECTING OUTDOOR ADVERTISING 1. take a trip. According to the Outdoor Advertising Association of America. vote for a politician. all geared towards communicating a message to the public.
KINDS OF OUTDOOR ADVERTISING 1. BILLBOARDS a) Front lit b) Back lit 21 .
Bus stops 22 .2.
3. Metro stations 23 .
4. Auto panel 24 .
Train advertisement 25 .5.
6. Mobile van 26 .
Hoardings 27 .7.
8. Wall paintings 28 .
Taxi 29 .9.
Retentive Advertising 2. Consumer Advertising B. Advertising According to Medium Utilized 30 . Persuasive Product Advertising C. Product Advertising A. Advertising Based on Area of operation A. Advertising based on Product Life Cycle A. Reminder-Oriented Product Advertising 4. Public Service Advertising 3. Selective Demand (Stimulation) B. Institutional Advertising C. Competitive Advertising C. Retail Advertising B.CLASSIFICATION AND TYPES OF ADVERTISING 1. A. Local advertising C. Advertising Based on Demand Influence Level. Trade Advertising A. Regional advertising 7. Pioneering Advertising B. Informative Product Advertising B. Primary Demand (Stimulation) B. Functional Classification A. Industrial Advertising 5. National advertising B. Product – Related Advertising A. Wholesale Advertising 6.
Such advertisements appeal to the consumer’s emotions and rational motives. B. Direct Type: It seeks to stimulate immediate buying action. it provides prices. 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. Retentive Advertising A.. Pioneering Advertising B. viz. and selling a product category rather than a specific brand. Product – Related Advertising It is concerned with conveying information about and selling a product or service. It conveys information about. Competitive Advertising C. A. It is concerned with developing a “primary” demand. Product advertising is of three types. 31 .direct actionin which case. B. Air India attempts to bid for the consumer’s patronage either immediately . Competitive Advertising: It is useful when the product has reached the market-growth and especially the marketmaturity stage. Example: Airline advertising. It seeks to sell a specific brand rather than a general product category. the initial advertisement for black – and – white television and color television. It is of two types: A. Pioneering Advertising: This type of advertising is used in the introductory stages in the life cycle of a product. or eventually – indirect action – when it suggests that you mention Air India’s name when talking to your travel agent. For example. time tables and phone numbers on which the customer may call for reservations.1. It stimulates “selective” demand.
the objective is to put across a message intended to change attitudes or behaviour and benefit the public at large. Advertisements on not mixing drinking and driving are a good example of public service advertising. 32 . i. A. Some advertise to stimulate primary demand. the advertising strategy may be to stimulate the selective demand. (i) Advertising may be used to stimulate either the primary demand or the selective demand. the marketer must inform consumers of the existence of the new item and convince them of the benefits flowing from its use. A much softer selling approach is used. Retentive Advertising: This may be useful when the product has achieved a favourable status in the market – that is. 3. Generally in such times. or only the name may be mentioned in “reminder” type advertising. The effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of the sponsoring organization. Functional Classification Advertising may be classified according to the functions which it is intended to fulfil. Primary Demand Stimulation Primary demand is demand for the product or service rather than for a particular brand. It is intended to affect the demand for a type of product. In this type of advertising. (iii) It may try to cause indirect action or direct action. At this time. When primary demand has been stimulated and competitors have entered the market. 2. (ii) It may promote either the brand or the firm selling that brand. When a product is new. the advertiser wants to keep his product’s name before the public.C. primary demand stimulation is appropriate. maturity or declining stage. Public Service Advertising This is directed at the social welfare of a community or a nation. Advertising Based on Demand Influence Level. and not the brand of that product.
This type of advertising is used frequently by large companies whose products are well known. HMT or DCM. government officials. It is also a useful method or introducing sales persons and new product to consumers. Institutional Advertising Institutional Advertising may be formative. selective demand advertising is attempted. It notifies the consumers that the company is a responsible business entity and is patriotic. thus indicating how it aided the development of ancillary industries. suppliers. The advertiser attempts to differentiate his brand and to increase the total amount of consumption of that product. This sells only the name and prestige of the company. 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. persuasive or reminder oriented in character. and confidence in the sponsor. or the general public. Institutional advertising is used extensively during periods of product shortages in order to keep the name of the company before the public. Competitive advertising stimulates selective demand. such as public service work. HMT once told the story of the small-scale industries supplying it with component parts. financial institutions. the target groups will respond with goodwill towards. It is not to stimulate the demand for the product or service. legislators. that its management takes ecologically responsible action. employees. Surf detergent powder. Selective Demand Stimulation This demand is for a particular brand such as Charminar cigarettes. it benefits the organization as a whole. It may be of either the direct or the indirect type. Institutional advertisements are at consumers or focus them upon other groups. is an affair. 33 . suppliers. for example. such as voters. etc. It aims at building for a firm a Positive public image in the eyes of shareholders. When Indian Oil advertisements describe the company’s general activities. It does not attempt to sell a particular product. does considerable institutional advertising of its name.motive action employer. ii. If it is effective. emphasizing the quality and research behind its products. To establish a differential advantage and to acquire an acceptable sort of market.B. supports the socialistic pattern of society or provides employment opportunities in the community. or Vimal fabrics.
It is usually done in the introductory stages of the product life cycle. Persuasive Product Advertising: Persuasive product advertising is to develop demand for a particular product or brand. It is used in the maturity period as well as throughout the declining phase of the product life cycle. It is of three types as follows:A. Informative Product Advertising: This form of advertising tends to characterize the promotion of any new type of product to develop an initial demand. to some extent. Consumer Advertising B. Persuasive Product Advertising C. attitude change or action for an offering. in the maturity period of the product life cycle. It was the original approach to advertising. Informative Product Advertising B. Advertising based on Product Life Cycle A. 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. C. It deals with the non-personal selling of a particular good or service. Reminder-Oriented Product Advertising A. comprehension. The marketer may use such promotion to generate exposure attention. designed to promote the sale or reputation of a particular product or service that the organization sells. It is a type of promotion used in the growth period and.iii. Product Advertising Most advertising is product advertising. 4. Indane’s Cooking Gas is a case in point. Industrial Advertising 34 . B.
and general management publications. They are: To inform. To reduce selling costs. To get the advertiser’s name on the buyer’s list of sources.A. The objectives vary according to the firm and the situation. Baring a few. Industrial Advertising Industrial executives have little confidence in advertising. B. detergents and soaps. To recognition for the firm or its products. To help get items in the news column of a publication. To induce inquiries. all these products are all package goods that the consumer will often buy during the year. To create or change a buyer’s attitude. Trade journals are the media most generally used followed by catalogues. to create or change a company’s image. They rely on this form of promotion merely out of fear that their competitors may benefit if they stop their advertising efforts. Consumer Advertising Most of the consumer goods producers engage in consumer product advertising. 35 . direct mail communication. exhibits. cosmetics. Marketers of pharmaceuticals. To motivate distributors. To bring in orders. scooters. and The basic appeals tend to increase the rupee profits of the buyer or help in achieving his non-monetary objectives. To establish recognition for the firm or its product. The task of the industrial advertiser is complicated by the multiple buying influence characteristics like. the derived demand. Advertising agencies are much less useful in industrial advertising. There is a heavy competition among the advertisers to establish an advantage for their particular brand. etc. To provide support for the salesman. cigarettes and alcoholic beverages are examples. To motivate distributors.
Advertising based on Area of Operation It is classified as follow: A. It refers to advertising costs between retailers and manufacturers. The result is that advertising is often relegated to a secondary position in a retail store.” Advertising agencies are rarely used. either for themselves or for their suppliers. Local Advertising 36 . It includes. Retail Advertising B. They also need to make a greater use of supplier promotion materials and programs in a way advantageous to them. Wholesale Advertising A. Retail Advertising This may be defined as “covering all advertising by the stores that sell goods directly to the consuming public. One aspect of retail advertising is co-operative advertising. From the retailer’s point of view. also advertising by establishments that sell services to the public. generally. not advertising minded. together with their normal functions. Trade Advertising A. Wholesale Advertising Wholesalers are. such as beauty shops. 6. National Advertising B. petrol pumps and banks. The store personnel are usually given this responsibility as an added task to be performed. B. They would benefit from adopting some of the image-making techniques used by retailers – the need for developing an overall promotional strategy. cooperative advertising permits a store to secure additional advertising that would not otherwise have been available. Regional Advertising C.5.
prices. This classification is so common in use that it is mentioned here only for the sake of completeness. outdoor. Regional advertising It is geographical alternative for organizations. 37 . Amrit Vanaspati based in Rajpura claims to be the leading hydrogenated oil producer in the Punjab. until recently. newspaper and direct mail advertising. For example: TV. Retailer advertisements usually provide specific goods sales during weekends in various sectors.P. near Lucknow). C. The famous national advertisers are: Hindustan Levers DCM ITC Jay Engineering TISCO B.A. It encourages the consumer to buy their product wherever they are sold. location. Advertising According to Medium The most common classification of advertising is by the medium used. Most national advertisements concentrate on the overall image and desirability of the product. magazine. Local advertising It is generally done by retailers rather than manufacturers. and so on. These advertisements save the customer time and money by passing along specific information about products. it mainly confined itself to one of the vegetable oil brands distribution to Malihabad district (in U. For example. 7. But. radio. business periodical. National advertising It is practiced by many firms in our country.
Whether.. advertising copy and the effectiveness of individual media. 38 . As soon as the advertising campaign is over. Pre tests are generally conducted in the beginning of the creation process or at the end of creation process or production stage. a need is generally arisen to measure the effectiveness of the campaign. it has achieved the desired results i. desired sales profitability or results in terms the change in customer’ behaviour in favour of the company’s product which will naturally. There are several pre and post tests techniques to measure the effectiveness of the advertising copy.e. Thus in measuring the effectiveness of advertising we include measuring of the effectiveness of advertising campaign. marketing and advertising objectives i. (c) Coupon blank etc. is an attempt to attract the customer towards the product through advertising.e. to increase the sales turnover and thus to market the maximum profit. In the background of all these efforts. In order to measure the effectiveness of advertising copy. The technique is known as keying the advertising. May be provided with the advertisement or (d) Enquiry from consumers should mention the name of the source of information.can be undertaken. The advertiser spends lakhs of rupees in to this advertising activity. 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. two types of tests pre tests and post tests.Measuring Advertising Effectiveness All advertising efforts are directed mainly towards the achievement of business. affect the future sale of the product. This chapter deals these three problems. (b) Different newspapers may be selected for advertisements of different departments.
The measurements made to determine results may be measurements of change in sales. If the expected rate of return is achieved in terms of additional profits. (2) Provides feedback for remedial measures Testing effectiveness of advertising provides useful information to the advertisers to take remedial steps against ineffective advertisements. (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. 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. and existing and prospective consumers. changes in dealer display and so on depending upon the objectives sought by the advertiser.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. 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. The main purpose of advertising is communicated the general public. (6) Compare two markets Under this procedure. various information about the product and the company. message or appeal of the advertising. (4) To justify the Investment in Advertising The expenditure on advertisement is considered to be an investment. the advertisement can be considered as effective one. advertising is published in test markets and results are contrasted with other. 39 . The rate and size of return should be determined in advance. The investment in advertising is a marketing investment and its objectives should be spelt out clearly indicating the results expected from the campaign. It facilitates timely adjustments in advertising to make advertising consumer oriented and result oriented. (3) Avoids possible failure Advertisers are not sure of results of advertising from a particular advertising campaign. change in consumer attitudes. Thus waste of money in faulty advertising can be avoided.
40 . One experimental approach to measuring the sales effectiveness of advertising is test marketing. Media schedules expenditure levels or some combination of these advertising decision areas. A multiple regression analysis of advertising expenditure and sales over several time periods may be calculated. Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs.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. a relationship between advertising and sales is established. (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. The following are some of the methods that are generally used in measuring that advertising effects. There may be two types measures (i) (ii) Direct measures: and Indirect measures:- (1) Direct Measures of Advertising Effectiveness Under direct measures. This method is quite expensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. It would show how the changes in advertising expenditure have corresponding changes in sales volume. 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 technique estimates the contribution that advertising has made to explaining in a co relational manner rather than a casual sales. 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 comparison of sales of two periods or two periods or two markets may be done and the corresponding changes may be noted.
and then the advertising campaign is presented to the test cities and not the central cities. 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. Multivariable designs Produce these explanations and are. advertisement is bound to failure. therefore used by some very large firm because of their diagnostic value. For any single medium. Thus. can then. Marketers or advertisers may obtain an idea of exposure generated by the medium by examining its circulation or 41 . it is not successful in explaining the success or failure of the campaign itself. eight possible geographic areas have been exposed and eight have not been exposed. former Fords Director of Marketing Research. The most commonly used measures are – (i) Exposure to Advertisement In order to be effective. Despite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results. the advertisement must gain exposure. (2) Indirect Measures As it is very difficult to measure the direct effect of advertising on company’s profits or sales.Brown. The effect of advertising campaign. most firms rely heavily on indirect measures. the normal sales level is calculated for both type of cities prior to advertising campaign.The power of this multivariable factorial design is explained by G. 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. Cities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities. there is no other alternative but to use indirect measures. Without exposure.H. 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. First of all.(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. The management is concerned about the number of target audiences who see or hear the organization message set in the advertisement.
In a pre-test evaluation. the consumers are asked to indicate the extent to which they recognise or recall the advertisement. 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. or the number of persons living in the televiewing or radio listening area.audience data which reveal the number of copies of the magazine. hear or listen to the advertisement and then researchers ask question regarding the advertisement just to test the recall and then evaluate it. 42 . This test is conducted in the laboratory setting. In post-test method. newspaper or journal sold the number of persons passing the billboards or riding in transit facilities. they have already seen. But. (ii) Attention or Recall of Advertising Message Content This is one of the widely used measures of advertising results. One is pre-test and the other is post-test. 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. and the number of persons switching on their T. The assumption of this type of measure is that there is a direct relationship between the advertisements and the awareness. There are two methods for evaluating the attention getting value of the advertisements. It is also affected by many other factors. changes in awareness can often be attributed to the influence of advertising. Here consumers read. for new products. These measures assume that customers can recall or recognize what they have viewed or listened to. 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. Under this measure. (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. and radio sets at various points of time. Various mechanical devices are being used in the western countries which provide indices of attention such as eye-camera etc. This number can be estimated by interviewing the numbers of the audience for different media. the consumers are asked questions about the indication of recognition or recall after the advertisement has been run.V.
They cannot be informed unless they comprehend the message (grasp the message mentally and understand it fully). The action or intention to take an action may be measured on the intention to buy measuring instrument. The assumption is that if an increase in sales follows a decrease in advertising expenditure. the results are very often measured in terms of attitudes among groups exposed to advertising communication. these above measures (direct or indirect) are used to evaluate the effectiveness of advertisements.(iv) Comprehension Consumers generally use advertisements as a means of obtaining information about the product. consumers are asked to respond why they are interested in purchasing the product or brand. the change in sales levels are good indicators of the effectiveness of advertising. brand or the manufacturer. service or organisation. 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. Thus. Under this type of measure. (vi) Action One objective of advertisement may be assumed to be to stimulate action or behavior. One type of action that advertisers attempt to induce is buying 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. Logic suggests that measurement of sales is preferable to other measurements. (v) Attitude Change Since advertising is considered to be one way of influencing the state of the mind of the audience towards a product. One may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. 43 . 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. Another measure of the variable is to ask questions about subjects how much they have comprehended a message they have recently heard or seen. 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.
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. Advertising can be said to be effective otherwise it will be a waste of money and time. Such events may influence the results of the advertising efforts. Any social institution upon which a significant portion of our total productive efforts is expanded should be able to point to its specific accomplishment. 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.(a) The reaction of consumer – buyers to the advertising efforts cannot be known in advance. (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. 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. By regular evaluation of the effectiveness.) cannot be accurately anticipated. advertising can be recognized as a business activity like other activities. If we take a hypothetical case of a retailer who contract to spent 44 . it is a source of discomfort that specific results of advertising activities have not always been subject to precise measurement. The effectiveness of advertising can be measured by the extent. If it succeeds in attaining the objectives. it is very necessary to know how advertising affects the buyer’s behaviors. The exact result of advertisement expenditure is very difficult to predict because. 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. But this is very difficult task because measurements are imperfect and imprecise. For this purpose. In this sense. In a very real sense the integrity of promotional activities rests on how well those activities work. Indeed. it to which it achieves the objectives set for it.
tests are conducted before exposing target consumers to the advertisements and post tests after consumers have been exposed to them. and whether on going campaign should be stopped continued or changed. In the past. For this purpose. The advertisement is seen and the response is much greater than it is anticipated. The advertising executives are much concerned about the assessment of the effectiveness of the advertising efforts. the management needs answers to such questions as: was the advertising campaign really successful in attaining the advertising goals? Were our T.V. As indicated earlier. But it does not mean that that we cannot measure the effects of particulars advertising effort. Pre. protesting was done by the advertising agencies but now the advertisers have been taking an increasingly active role in protesting process. 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..5000 on advertisement with a local newspaper for a special sales even. and if they are not satisfactory how they might be improved. 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. It is so because the cause and effect – relationship cannot be established in advance when a multitude of variable impinge upon a particular event. So they test the proposed advertisement with pre test and measure the actual results with a post test. Weather conditions or the goodwill of the firm etc. 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 . the advertisers are interested in knowing what they are getting for their advertising rupees. 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. What caused the success of sale? They message theme colors etc. commercials as good as those of our competitors? Will the print advertisement. make consumers aware of our new product? To get answers of these questions. 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.Rs. which we have designed. various tests of effectiveness (Pre.tests and post – tests ) are deeded to determine whether proposed advertisement should be used.
Indirectly it will affect the sales in the long run. by changing the consumer awareness and attitude. In the short run. (ii) The advertising executives can prove to the satisfaction of the management that a higher advertising budget will benefit the firm. The advertisers are therefore. 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. Among these are:- 46 . There are many critical and unresolved issues in determining how to test the communication effects of advertising. however sales may be slight and important but in the long run its effects ob brands and companies may be of great importance.(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. Most research focuses on the communication effect rather than sales effect because it is a long run process. (iii) There is a need for measuring the results to determine the level of expenditure that is most promising. concerned with their impact on consumer awareness and attitude. If consumer is satisfied with the trial he may decide to purchase the product.
47 .Quantitative data are the easiest and the almost precise measurement. Many types of advertising tests are conducted (different methods of pre tests and post – test are given in question number) In T. Print advertisements are tested through dummy magazine portfolio tests. Quantity Data. commercials are tested by inviting a group of people to the studio to view a program. But qualitative data collected through interviews may provide information that short answer questions never can.(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. Does protesting a preliminary execution produce accurate and useful data? (3) Quality Vs.V. The audience is then surveyed about the commercials.
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. the size of the headline and the appeals used. But in many situations the exact relationship between advertising activity and sales cannot be established satisfactorily. Many firms try to measure the effectiveness of advertising in terms of sales results but this practice is always misleading. which has more access to research. locations. The big business house. Since. page or time of the day.Compunction Effectiveness Vs Sales Effectiveness It is easier to assess the communication effect of advertising than the sales effect. the effect is the result of so many variables. may decide on the more relevant and expensive measures. Suitability In small business firms where the marketing research resources are limited advertising managers may decide on less expensive and less relevant measures. a distinct effect of advertising on sales cannot be correctly measured. Although there may be some exceptions. Thus. So advertisers try to measure the communication effect of the advertising. It is so because advertising is no the only variable that effect the sales. Added to this is the fact that advertisement itself is made of a variety of variables such as media. 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. 48 . messages. 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. For example direct mail advertising can effectively be measured by the inquiries received. This situation is quite hypothetical and almost nonexistent. colours.
such an approach can result not only in ineffective advertising.Factors Affecting Advertising The final external factor in the planning framework concerns environmental factor social. relevant information must be well aware of advertising regulation. and global. and advertiser who attempts to provide specific. However. Thus. legal. is an intrusion into an already excessively polluted environment. A whole set of rules is emerging to cover advertising directed at children. Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other. Another concern is that advertising. especially when it is more irritating than entertaining. 49 . by it can lessen the social value of advertising by reducing the amount for useful information that it provides to society. and advertising for products such as alcohol and cigarettes. and the use of environmental and health claims in advertising. Even more difficult consideration for people involved in the advertising effort is broad social and economic issues. One solution is to create brand advertising that is vague and contains little specific information. Law forbids deceptive advertising.
By stimulating the development of new products. sell them at a lower price. Many economists believe that increased competition leads to lower prices. and political system. enabling them to recoup the costs of developing new products. 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. advertising helps increase competition. believe that advertising is wasteful. This is especially true in the United States where the advertising industry plays such a prominent role. society. Other economists. The increased volume of sales enables companies to produce individual units at lower costs and therefore. Advertising thus benefits consumers by helping lower prices. thereby benefiting consumers and the economy as a whole. Manufacturers know that advertising can help sell a new product quickly. strengthening the economy by promoting the sale of goods and services.IMPACT OF ADVERTISEMENT Advertising has an important effect on a country’s economy. Economic Impact Most economists believe that advertising has a positive impact on the economy because it stimulates demand for products and services. According to this view. advertising simply moves sales from one company to another. however. 1. These economists also argue that by interesting consumers in purchasing goods. advertising enables manufacturers and others to sell their products in larger quantities. 50 . rather than increasing sales overall and thereby benefiting the economy as a whole. culture.
magazines. Social Impact Advertising can have wide-ranging repercussions on a society. 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. Prior to 1960. to the public. Other critics express concern over the way advertising has affected women and racial minority groups. However. however. if not free. advertisers by the 1980s had begun to depict African Americans as students.2. pleasures. Some critics suggest that advertising promotes a materialistic way of life by leading people to believe that happiness is achieved by purchasing products. increasing attention has been paid to the way in which advertising shows other ethnic groups. professionals. Whether owing to the feminist movement or to women's increasing economic power. after the 1960s it became more common to see women depicted in professional roles. radio. Advertising has a major social impact by helping sustain mass communications media and making them relatively inexpensive. or business people. including Hispanics. many ads today still emphasize a woman’s sexuality. As ads have begun to more fully reflect the lives of women and African Americans in the United States. and broadcast television all receive their primary income from 51 . Asians. Newspapers. Due to the influence of the civil rights movement. ads continued to focus on their role as homemakers. The way advertising has depicted racial minorities has also been harmful. However. They argue that advertising creates a consumer culture in which buying exciting new products becomes the foundation of the society's values. African Americans were usually shown in a subordinate position. Although millions of women worked outside the home in the 1960s. and Eastern Europeans. Ads in the 1950s depicted women primarily as decoration or sex objects. and goals. Native Americans. There is still considerable debate over how advertising influences public perception of gender and of particular ethnic groups.
too. Research suggests that children see television advertising as just another form of programming and react uncritically to its messages. advertisers often withdraw support. which causes a program to be canceled. companies that sponsor TV programs prefer relatively wholesome. 52 . 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.advertising. Most members of the news media deny that pressure from an advertiser prevents them from pursuing news stories involving that advertiser. Reporters and editors. for example. or even be subject to government control through subsidies. As a result. This preference causes TV networks to emphasize this type of programming. noncontroversial programming to avoid offending a mass audience. particularly among 18 to 34 year olds. many of these forms of mass communication might not exist to the extent that they do today. At the same time. 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. offer less variety. society might not be alerted to harmful or potentially harmful conduct by the advertiser. or they might be considerably more expensive. If the ratings show that a program is not attracting large audiences. Without advertising. Because advertisers are especially interested in attracting the 18 to 34 year olds who account for most consumer spending. The impact of television on young children has received much attention. For example. As a result. however. which makes them especially vulnerable to advertising. television shows are often developed with this audience in mind. it may exercise undue influence on the news media and thereby curtail the free flow of information in a free society. may be hesitant to develop a news story that criticizes a major advertiser. Advertisers may affect media programming in other ways. a diversity of magazines. shows that are more likely to interest and to be of value to older audiences are not produced. critics charge. some critics warn that because advertising plays such a major economic role. and free entertainment might no longer be widely available. In-depth news programs.
Political advertising enables candidates to convey their positions on important issues and to acquaint voters with their accomplishments and personalities. Political Impact Advertising is now a major component of political campaigns and therefore has a big influence on the democratic process itself. Research indicates that many adolescent girls are unduly influenced by this standard of beauty. Those over the age of 60 are thought to be less influenced by advertising. and may develop eating disorders in pursuit of a thin figure. even after they have been elected to office. Various campaign finance reform proposals. political advertising has grown in sophistication and complexity. That amount of spending placed political advertising in the ranks of the country’s 30 leading advertisers that year. buffed bodies. devote large amounts of time to weightlifting. Advertising professionals did not become involved in electoral campaigns until the 1950s. But since then. making it necessary for candidates to raise money continually. In 1998 more than $467 million was spent on election campaigns in the United States.There is also concern about the way in which adolescent girls respond to advertising that features beautiful.S. but some elderly people no longer process messages as easily as younger people. making them more susceptible to questionable advertising claims. many become dissatisfied with their own body image. Political advertising is a relatively new development in U. have tried to address the impact of television advertising on political campaigning. the costs of political campaigns have skyrocketed. become dissatisfied with their own bodies. New research suggests that adolescent boys are also being influenced by advertising images of bulked-up. Candidates can also use advertising to respond effectively to the charges of their opponents. 3. history. Critics say this factor jeopardizes the democratic process by making elected officials beholden to 53 . thin models. however. As a result. Because of the high cost of television ads. and may even take drugs that have harmful side effects in order to develop more muscle. Television advertising is especially effective for candidates running for national or statewide office because it can reach so many people at once.
Some reform proposals have called for free airtime. Issues are simplified. however. Humor in advertising has made many ad campaigns widely popular. or they contribute to culture in a positive way. and candidates are “packaged and sold” much like a consumer product. Some advertising messages. 4. 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. 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. Cultural Impact Advertising can affect cultural values. 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. 54 . overriding cultural differences. thereby distorting the political process. For example. Some critics argue that advertising messages are thus helping to break down distinct cultural differences and traditional values. As a result. 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. With the globalization of the world economy. encourage aggressive individualism. have universal appeal. They contend that this practice is harmful to good government. for example. Many advertising campaigns. The ad ridiculed a competitor by depicting a small hamburger patty dwarfed by a huge bun. During a primary debate one of the candidates used the ad slogan to suggest that his opponent’s campaign lacked substance. in some cases achieving the status of folklore or taking on new life in another arena. but television and radio networks have resisted this idea. voters are bombarded with image advertising rather than being acquainted with the candidate’s positions.
RESEARCH METHODOLOGY 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 55 .
according to Mendel's laws. 2. Complete all calculations to three significant digits. Remember to use numbers. How much deviation can occur before you. then you might want to know about the "goodness to fit" between the observed and expected. Determine the expected numbers for each observational class. Locate the value closest to your calculated on that degrees of freedom df row. not percentages. Move up the column to determine the p value. Step-by-Step Procedure for Testing Your Hypothesis and Calculating Chi-Square 1. Were the deviations (differences between observed and expected) the result of chance. use the data provided in the problem). The chi-square test is always testing what scientists call the null hypothesis. chi-square is the sum of the squared difference between observed (o) and the expected (e) data (or the deviation. causing the observed to differ from the expected. 56 . the investigator. State the hypothesis being tested and the predicted results.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. if working genetics problems. d). Calculate 2 using the formula. Round off your answer to two significant digits. or were they due to other factors. Use the chi-square distribution table to determine significance of the value. 4. Determine degrees of freedom and locate the value in the appropriate column. Gather the data by conducting the proper experiment (or. For example. 3. must conclude that something other than chance is at work. if. 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 should not be calculated if the expected value in any category is less than 5. you expected 10 of 20 offspring from a cross to be male and the actual observed number was 8 males. divided by the expected data in all possible categories.
Therefore.01 means that there is only a 1% chance that this deviation is due to chance alone. 'The deviation is small enough that chance alone accounts for it. a p value of 0. Various facts and figures have been gathered through different websites & portals. They have been asked questions regarding the different kind of media affecting their choices regarding the different products.5. A p value of 0. If the p value for the calculated is p > 0. other factors must be involved. If the p value for the calculated is p < 0. A specimen of the questionnaire is attached. and conclude that some factor other than chance is operating for the deviation to be so great.05. which was circulated over hundred persons. This is within the range of acceptable deviation. The chi-square test will be used to test for the "goodness to fit" between observed and expected data from several laboratory investigations.05. A list of all those referral websites is mentioned later in the report in references. 57 . reject your hypothesis. SECONDARY DATA: The secondary data is also of utmost importance. PRIMARY DATA: The primary data has been collected by preparing a questionnaire.6. means that there is a 60% probability that any deviation from expected is due to chance only. State your conclusion in terms of your hypothesis. for example. It helps in the in depth analysis of the organization. accept your hypothesis. For example. 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.
The primary data was collected through questionnaires and was collected personally. Sl.SAMPLING UNIT Sampling Unit is the total number of samples differed in different locality. magazines. We have considered 100 as sample size. 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. All the area had segmented according the population of this area. The secondary data was collected through books. 2. 3. 58 . 1. No. Classes Students Professionals Household Total No. and websites.
E31=(R3C1)/N=(60*25)/100=15 E32=(R3C2)/N=(27*60)/100=16.CHI-SQUARE TEST Aim.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.6 EE21=(R2C1)/N=(27*20)100=5. 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.4 E13=(R1c3)/N=(48*20)/100=9.8 Step 4: Test statistic for testing H0 is: ℵ^2=∑(0i-Ei)^2/Ei 59 .6 E23=(R2C3)/N=(25*20)/100=5. Step3: Calculation for the expected frequency We use formula (Row total*column total)/Grand total E11=R1C1/N=(25*20)/100=5.4 E22=(R2c2)/N=(48*20)/100=9.05. HA: There is significant difference( or relationship) between the people occupation and the mode of advertising media affecting their perception. Following is the information collected from the primary source . Step 2: Level of significance α considered in this analysis is 5% α=0. E12=(R1C2)/N=(27*20)100=5.2 E33=(R3C3)/N=(48*60)/100=28.
05)= 9.electronic media and Outdoor media 60 .96 73. Tabulated value at 4 degree of freedom and 0. of rows c= no.4 7.25 6.1125 ℵ^2 =45.44 ( Oi-Ei)^2/ Ei 5 1.Ei)^2 25 6. So (r=no.6 5 5.01 5 2. columns) Degree of freedom df=(r-1)(c-1) = (3-1)(3-1) = 2*2= 4. Thus accept the HA. Hence People with different occupation are affected differently by different kinds of media i.66 9.79 Step 5: Statistic follows a chi-square distribution. Step:7 Conclusion: There is a significant difference between the people occupation and mode of media affecting their perception regarding different products.66 2.76 25 12.96 100 16 262..76 57.70 6.05 level of significance.e Print media .4 9.8 (Oi. 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.6 15 6 28.488 Step6: ℵ^2 cal > ℵ^ tab.Observed frequency Oi 10 8 2 10 9 1 5 10 15 `Expected Frequency Ei 5 5.4 9.0. D(4. In this case we reject null hypothesis.
2. From where do you get information about the new product? Answers Television & other electronic media Newspapers and Magazines Outdoor advertizing (billboards and hoardings) No.GRAPHICAL INTERPRETATION 1. of respondents 48 27 25 Interpretation A large size of population is influenced by Television and Newspapers. Which form of advertisement do you like more? 61 .
of respondents 28 72 Interpretation: People are more affected by advertisement with moving image.Answers Still image Moving image No. 62 .
of respondents 62 38 Interpretation: More number of people consider advertisement as a source of information rather than a source of entertainment. 63 .3. For you advertisement is a source of : Answers Information Entertainment No.
of respondents 26 74 Interpretation: Entertaining advertisement does not affect the opinion of customer about the product 64 . Does entertaining advertisement affect your opinion about the product? Answers Yes No No.4.
of respondents 87 13 Interpretation: Information provided in the advertisement affect very much on the opinion of consumers about the product. 65 . Does information provided in advertisement affects your opinion about the product? Answers Yes No No.5.
of respondents 63 37 Interpretation: Language used in the advertisement affects a lot on the opinion of consumers about the product.6. Does language used in advertisement affects your opinion about the product? Answers Yes No No. 66 .
67 . of respondents 69 31 Interpretation: Presence of any celebrity affects on the opinion of consumers about the product.7. Does presence of any celebrity in the advertisement affects your opinion about the product? Answers Yes No No.
of respondents 52 48 Interpretation: The effect of intensity is very powerful on the opinion of consumers about the product. Does intensity of the advertisement affects your opinion about the product? Answers Yes No No.8. 68 .
69 .9. Does presence of social issues in the advertisement affects your opinion about the product? Answers Yes No No. of respondents 59 41 Interpretation: Presence of social issues in advertisements affects very much on the opinion of consumers about the product.
Do you think advertisement helps in increasing sales of any product? Answers Yes No No. of respondents 87 13 Interpretation: Advertisement helps very much in increasing the sales of any product.10. 70 .
FINDINGS Advertisements with moving image are more effective than advertisement with still image. Advertisement increases the sales of any product. 71 . Language used in the advertisement also plays important role in increasing effectiveness of an advertisement. National advertisement has more influence on consumer’s perception about the product instead of local advertisement. Social issues included in advertisement affects the perception of high age group people. 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.
it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. Now. or by inserts in packages). by person. 72 . Advertising is a form of promotion and like a promotion. Advertising seeks to condition the consumer so that he/she may have a favorable reaction to the promotional message. Novelties bearing advertising messages and Signature of the advertiser. This means that specific objectives should be set for each particular advertisement campaign. by an identified sponsor. Advertising includes the following forms of messages: The messages carried in Newspapers and magazines. Circular of all kinds. but for many target buyers.” Advertising focuses on mass production and mass communication along with the niche markets and specialized markets . not just for one customer. (whether distributed by mail. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising program. thorough tradesmen. has defined advertising as “any form of nonpersonal presentation or promotion of ideas. Store signs. 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.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. On radio and television broadcasts. Window display and counter – display materials and efforts. motion pictures used for advertising. Chicago. Dealer help materials. Each advertisement is a specific communication that must be effective. Label stags and other literature accompanying the merchandise. The objectives of advertising were traditionally stated in terms of direct sales. goods or services. the objectives of advertising should be specific. The American Marketing Association.
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.
4.google. (2009) Strategic Brand Management . http://books. Kogan page India Pvt. http://books. Internet 1. India. Excel Books. Marketing Management.REFERENCE Books 1.L (2005).com/books?id=wAMsaLJoykYC&dq=marketing&cd=3 76 . Strategic Brand Management – Kapferer 5. 3. New Delhi. Gupta S. Advertising and Sales Promotion Management.com/books?id=t-yoHkKZ9ZsC&q=marketing&dq=marketing&cd=1 2. . Kotler Philip. 2.google. Kapferer J. Advertising Management : concept and cases. The millennium edition. India. (1989).(2000). Printice hall. Mohan M. Ltd. Tata Mc Grawhill.
. Male [ ] b.... Still image (Banners and hoardings) [ b. Business class [ d.. 30 to 40 d.. 20 to 30 c. Sex: Age: a... Female [ ] 1.. Peers (friends/family) [ [ [ [ ] ] ] ] ] ] b.. Below 20 b. Internet e.. House hold [ [ ] ] ] ] b. Name: ………………………………. Television c. For this we require you to please fill this questionnaire. Above 40 Occupation: a.. Which form of Outdoor advertisement do you like more? a....ANNEXURE Questionnaire We are doing a research project as part of our curriculum on “ A Study on Effect of various modes of Advertisement on Consumers”.. From where do you get information about the new product? a............ Moving image (Visual display board) [ ] 77 ... Outdoor advertizing d. Student c.... Service class [ [ [ [ [ ] ] ] ] a. Newspapers and Magazines [ 2.
Yes b. Do you think advertisement helps in increasing sales of any product? 78 . Does intensity of the advertisement affects your opinion about the product? 9. Does an entertaining advertisement influences your opinion about the product? 5. Entertainment a. For you advertisement is a source of a. Information b. No product? a. Does information provided in advertisement affects your opinion about the product? 6. Does presence of social issues in the advertisement affects your opinion about the 10. No a. No product? a. Yes b. Yes b. Yes b. No a. No a. Yes b. Does language used in advertisement affects your opinion about the product? 7. No [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ [ [ [ [ ] ] ] ] ] ] ] ] 4. Yes b. No a.3. Yes b. Does presence of any celebrity in the advertisement affects your opinion about the 8.
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