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

1

CERTIFICATE

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)

2

CANDIDATE’S DECLARATION

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)

3

Ghaziabad to give us a chance to get an industrial exposure. 4 . AREA CHAIRPERSON. 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. 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. and faculty of Institute of Management Studies. We would like to express our gratitude and profound thanks to Dr. TAPAN KUMAR NAYAK.ACKNOWLEDGEMENT No task whatever big or small can be completed without proper guidance and encouragement.

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.ABSTRACT In India now a days. competition in every field of business is very high and companies are trying to attract maximum number of customers. Method used.The primary as well as secondary data for the studies. 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 statistical tools like graphical method and chi-square test for our research purpose and analysis of data has been used. For this. Secondary data is collected from web resources and books. a questionnaire has been prepared and customers having various perceptions were asked to fulfill it.Various modes of advertizing are equally important and outdoor advertizing is one of them. Purpose.In these papers. 5 . Findings. 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.

7.No. 3.2 5.1 5.8 6. 8.TABLE OF CONTENTS S. 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 .1 4.3 5. 3. 13. 9. 5.6 5.4 5. 4. 10.7 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.5 5.2 4. 12.3 5. 2. 4. 11. 1.

The seller in primitive times relied upon his loud voice to attract attention and inform consumers of the availability of his services. therefore. They were used only to reach each consumer personally. As the markets grew larger and the number of customers increased. 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. Evidences suggest that the Romans practiced advertising. the seller was doing the complete promotion job himself. The merchant still used personal persuasion once the customers were attracted to his store. While these advertising methods were useful for informing and reminding and reminding. This method is still in common use. the importance of attracting them also grew. Signs on stores and in prominent places around the city and notices in printed matters were sometimes used. they could not do the whole promotional job. Some types of outside promotion were necessary. 7 . Development of retail stores. when the use of the surname indicated a man’s occupation. they were still subjected to competitive influences. the merchant’s signs and advertisements reminded customers of the continuing availability of his services.INTRODUCTION It has been wrongly assumed that the advertising function is of recent origin. or join social organizations in order to have continuing contacts with present and potential customers. Informing customers of the availability of supplies was highly important. made the traders to be more concerned about attracting business. Often it became necessary for him to resort to persuasion to pinpoint the advantages of his products. Increasing reliance was placed on advertising methods of informing about the availability of the products. he relied upon his own personal magnetism to attract attention to his merchandise. If there were many competitors. Sometimes traders would talk to present and former customers in the streets. These advertising methods were more economical in reaching large numbers of consumers. Thus. When customers were finally attracted to the store and satisfied with the service at least once.

posters had made their appearance. 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. and assumed the function of fostering demand for existing products.The invention of hand press increased the potentialities of advertising. 8 . The low cost of posters and handbills encouraged a number of publishers to experiment with other methods. By Shakespeare’s times.

that the mode of advertising used like print media i. television and radio.JUSTIFICATION The present study has focused on effect of outdoor advertising on consumer perception and their attitude towards different products and services.e. Outdoor media is developing and taking shape in best marketing promotion activities. It has been observed through various researches. billboards.e. 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. electronic displays plays an important role in determining the buying behavior of consumers . outdoor advertising i. hoardings. 9 .e. electronic media i. magazines and newspaper.

(1975). Being a key element in the marketing process. Advertising agencies fuel the basic needs of a company to plan. The adverts are meant for the audience to watch but unfortunately the audience is likely to take active steps in avoiding them. 1975 As known for decades. 1985). Krugman. The value chain is a systematic approach in examining the development of competitive advantage. His theory is even supported by the Honourable Minister Tan Sri Gazali’s speech in 1971(Bernama. Aaker and Mayers. 1971). advertisement is one of the main strategies in marketing either a product or service. strategise and introduce their product in the market. Porter (1980). or at least produce a desire to want to know more is not an advert” (Quinn.(1994). In most forms of communication. 1975. It can be defined as “An Advert that does not create a buying response. advertisements face many challenges in reaching the audience. 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.The existence of the advertisement rooted in Malaysia dated back to the 1971 as claimed by in his thesis. strategically market. the audience least make some effort to pay attention or appear to be doing so. 10 . deliver and maintain its products or services.One of the main obstacles is the low audience involvement . Bonnex. It is one of the basis of the supply chain and many advertising agencies are involved in this business in Malaysia.According to a research concentrating on the advertisers viewpoint.REVIEW OF LITERATURE Kotler. advertisement is an important tool which companies use to directly persuade buyers and public . Potter treats every firm as a collection of activities carried out to develop. 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.

e.  To find the ways to make it more effective.RESEARCH OBECTIVES   To study types of advertisements. modes of 11 .e.  To study the perception of consumers towards the different advertisement i. To study effectiveness of advertisements i. electronic media. on sales. print media and outdoor media. profitability.

The first advertisement in English appeared in 1472 in the form of a handbill announcing a prayer book for sale. printed advertising made little headway until the invention of the movable-type printing press by German printer Johannes Gutenberg about 1450. The town criers were forerunners of the modern announcer who delivers radio and television commercials. The criers were citizens who read public notices aloud and were also employed by merchants to shout the praises of their wares. the first regularly published newspaper in America. One of the first known methods of advertising was the outdoor display1. the first newspaper ad was published offering a reward for the return of 12 stolen horses. began carrying ads in 1704. Archaeologists have uncovered many such signs. the advertising profession began in Philadelphia. In the American colonies.ADVERTISING BASICS HISTORY OF ADVERTISEMENT Archaeologists have found evidence of advertising dating back to the 3000s BC. W. the forerunner of the advertising agency. An outdoor advertisement excavated in Rome offers property for rent. This invention made the mass distribution of posters and circulars possible. the Boston News-Letter. In 1869 Francis Ayer bought out Palmer and founded N. and about 25 years later Benjamin Franklin made ads more readable by using large headlines. notably in the ruins of ancient Rome and Pompeii. Later they became familiar figures on the streets of colonial American settlements. Although graphic forms of advertising appeared early in history. Agents contracted with newspapers for large amounts of advertising space at discount rates and then resold the space to advertisers at a higher rate. Palmer set up shop as an advertising agent. and one found painted on a wall in Pompeii calls the attention of travelers to a tavern situated in another town. among the Babylonians. in 1841 when Volney B. Pennsylvania. Ayer & 1 an eye-catching sign painted on the wall of a building 12 . the use of so-called town criers. In the United States. The ads themselves were created by the advertisers. In medieval times word-of-mouth praise of products gave rise to a simple but effective form of advertising. Two hundred years later.

Instead it began to create a product image.' Bernbach's agency captured the spirit of the new age. The ads his agency created were understated. The tone of the advertising was also changing. and witty. Ayer transformed the standard agent practice by billing advertisers exactly what he paid to publishers plus an agreed upon commission. 13 . all came to prominence in the late 1950s and 1960s and led what has been called the 'creative revolution. Soon Ayer was not only selling space but was also conducting market research and writing the advertising copy. advertising had established itself in radio to such an extent that advertisers were producing many of their own programs. but because of the high cost of TV sets and the lack of programming. founder of the Leo Burnett agency in Chicago. Leo Burnett. Bill Bernbach. He also believed that good advertising began with respect for the public's intelligence. As the American economy soared in the 1950s. the agency created an ad that entertained New Yorkers and provided fodder for many conversations.' But it was the advertising for Volkswagen that made the agency's reputation. and David Ogilvy. The early 1930s ushered in dozens of radio dramatic series that were known as soap operas because they were sponsored by soap companies. For example. Illinois. a borough of New York City. when Bernbach's agency picked up the account for the Henry S. an agency that still exists today. it was not immediately embraced. so did the sale of TV sets and the advertising that paid for the popular new shows. founder of Ogilvy & Mather in New York City. 'You don't have to be Jewish to love Levy's. No longer did advertising simply present the product benefit. The ad showed a Native American eating a slice of the bakery's rye bread with the headline. Television had been introduced in 1940. founder of Doyle Dane Bernbach in New York City. But the introduction of radio created a new opportunity and by the end of the 1920s. sophisticated. Advertising agencies initially focused on print. Bernbach believed that advertising had to be creative and artistic or it would bore people. Soon TV far surpassed radio as an advertising medium. Levy Bakery in Brooklyn.Son.

you get the plums. 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. they will find it easier to avoid advertising. what they will watch. combining the functions of a computer with access to high-speed transmission over cable lines or optical fibers. 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. 'think small. to a greater extent than ever before. will likely enable consumers to select from a vast video library. 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. but also. The ad's copy explained that 'this Volkswagen missed the boat. Consumers will be able to determine not only when they watch something.' In an era of hype and bombast. Some industry observers believe that as consumers gain greater control over their viewing activities. The development of interactive television. New digital devices even threaten to make it possible to edit out commercials. The chrome strip on the glove compartment is blemished and must be replaced…We pluck the lemons. 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 creative foundation established by Bernbach and others has been critical to the success of contemporary advertising. 14 .' 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. The advertiser signs his name to his advertisement for the purpose of publicizing his identity. goods or services. Chicago. (iii) It is non-personal communication. by an identified sponsor. Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. (vii) Advertising is identified communication. has defined advertising as “any form of nonpersonal presentation or promotion of ideas. The dictionary meaning of the term is “to give public notice or to announce publicly”. (ii) It makes mass production possible. (vi) The communication is speedy. The elements of advertising are: (i) It is a mass communication reaching a large group of consumers. 15 . nor is it addressed to a specific person. This keeps the cost per message low. (v) Advertising can be economical. for it reaches large groups of people.” 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 American Marketing Association. (iv) It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales. which means to turn to. for it is not delivered by an actual person. permitting an advertiser to speak to millions of buyers in a matter of a few hours.

Advertising includes the following forms of messages: The messages carried in        Newspapers and magazines. 16 . (iii) Advertisements are not designed to deceive. or by Dealer help materials. Advertiser cannot afford to play with advertising. (v) The function of advertising is to increase the profitable sales volume. he cannot predict with accuracy what results his future advertising efforts will produce. The advertisement that fails to influence anyone. (ii) It should suggest better solutions to their problems. (ii) Advertising is not a toy. An advertiser’s circumstances are never identical with those of another. On radio and television broadcasts. Circular of all kinds. Store signs. Novelties bearing advertising messages and Signature of the advertiser. It should give them a more satisfactory expenditure of their rupees. Window display and counter – display materials and efforts. is a waste of money. (whether distributed by mail. advertising expenses should not increase disproportionately. inserts in packages). That is. motion pictures used for advertising. thorough tradesmen. Label stags and other literature accompanying the merchandise. (iv) Advertising without persuasion is ineffective. The desire and hope for repeat sales insures a high degree of honesty in advertising. not the medium. by person. because if advertising is done properly. either immediately or in the future. (iii) The content of the advertisement is within the control of the advertiser. Advertising funds come from sales revenue and must be used to increase sales revenue. What is excluded from Advertising? Advertising is not an exact science. both the buyer and the seller benefit from it. (i) Advertising is not a game.What is Included in Advertising? (i) The information in an advertisement should benefit the buyers.

. involving news releases and the activities of personal The payment of advertising allowances which are not used for advertising. former and future consumers. but for many target buyers. Advertising is a form of promotion and like a promotion. Advertising Objectives Each advertisement is a specific communication that must be effective. This means that specific objectives should be set for each particular advertisement campaign. e. The basic objectives of an advertising programme may be listed as below: (i) To stimulate sales amongst present. (ii) To communicate with consumers. (iii) To retain the loyalty of present and former consumers. Now. It involves a decision regarding the media. thus building loyalty to the brand name or the firm. 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. show and conventions. it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. not just for one customer. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. 17 . The use of exhibitions and demonstrations at fairs. the objectives of advertising should be specific.The activities excluded from advertising are:      The offering of premiums to stimulate the sale of products. The use of samples and activities. The objectives of advertising were traditionally stated in terms of direct sales. Advertising seeks to condition the consumer so that he/she may have a favourable reaction to the promotional message. TV rather than print . The entertainment of customers selling forces.g. This involves decision regarding copy . Advertising may be used to reassure buyers that they have made the best purchase.

The production cost per unit of output is lowered. or even demand for the product. professional sports. and retailers. such as personal selling or point-of-purchase display. but also at the government. It can build dealer and consumer confidence in the company and its products by building familiarity. Advertising strategies that increase the number of units sold stimulate economies in the production process. Similarly. : (v) To project an image. wholesalers. The health department popularizes family planning through advertising Labour organizations have also used advertising to make their viewpoints known to the public at large. stressing the advantages of a military career. This message is aimed not only at consumers. It in turn leads to lower prices. preference. Advertising impliedly bolsters the morale of the sales force and of distributors. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. Outlay on advertising certainly is the voucher. IMPORTANCE OF ADVERTIZING Generally. . to directly move customers to buying action.(iv) To increase support. it thus contributes to enthusiasts and confidence attitude in the organizational. Advertising is efficiently used with at least one other sales method. it is seldom solely relied upon. It can force middlemen to stock the product by building consumer interest. shareholders. Non-business enterprises have also recognized the importance of advertising. The attempt by army recruitment is bases on a substantial advertising campaign. the price of newspapers. While sometimes advertising alone may succeed in achieving buyer acceptance. Advertising assumes real economic importance too. Advertising has become increasingly important to business enterprises –both large and small. advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. and the like might be prohibitive without advertising. Lower consumer prices then allow these products to become available to more people. and the general public. 18 . It can help train dealers salesmen in product uses and applications. Advertising is to stimulate market demand. radio and TV programmes. Advertising is used to promote an overall image of respect and trust for an organization.

In India. advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life. consumers. Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection.In short. advertising was accepted as a potent and recognized means of promotion only 25 years ago. physical fitness. its growing productive capacity and output necessitates the finding of consumers and advertising plays an important role in this process. family planning. traders. there is a tremendous scope for development so that it may be productively used for the benefit of producers. Though in India. advertising as a profession is in its infancy. and the elimination of drug abuse. and the country’s economy. 19 . Advertising has become an important factor in the campaigns to achieve such societal-oriented objectives such as the discontinuance of smoking. Because of this fact.

Outdoor advertising includes various types of promotional displays. Rise in consumerism a) Consumer awareness b) Purchase options c) Buying power 5. a figure expected to rise again in 2005. take a trip. Growth in rural markets 6. (OAAA). from highway billboards to transit posters and arena placement.OUTDOOR ADVERTISING Any advertising done outdoors that publicizes your business's products and services. vote for a politician. or give to a charity. FACTORS AFFECTING OUTDOOR ADVERTISING 1. The message might be to buy a product. Technological advancements 3. Boom in the real estate and infrastructure a) Malls b) Buildings c) Flyovers d) Toll roads e) Metro trains 4. Inc. Modern urban lifestyles 2. According to the Outdoor Advertising Association of America.8 billion dollars on outdoor advertising in 2004. businesses spent $5. Saturation of other medias 20 . It might even be a public service announcement. all geared towards communicating a message to the public.

BILLBOARDS a) Front lit b) Back lit 21 .KINDS OF OUTDOOR ADVERTISING 1.

2. Bus stops 22 .

3. Metro stations 23 .

4. Auto panel 24 .

5. Train advertisement 25 .

6. Mobile van 26 .

7. Hoardings 27 .

8. Wall paintings 28 .

9. Taxi 29 .

Regional advertising 7. Retentive Advertising 2. Local advertising C. Primary Demand (Stimulation) B. National advertising B. Consumer Advertising B. Advertising According to Medium Utilized 30 . Institutional Advertising C. Selective Demand (Stimulation) B. Advertising based on Product Life Cycle A. A. Pioneering Advertising B. Industrial Advertising 5. Advertising Based on Demand Influence Level. Product Advertising A. Persuasive Product Advertising C. Public Service Advertising 3. Advertising Based on Area of operation A. Informative Product Advertising B. Competitive Advertising C. Retail Advertising B. Product – Related Advertising A.CLASSIFICATION AND TYPES OF ADVERTISING 1. Functional Classification A. Trade Advertising A. Wholesale Advertising 6. Reminder-Oriented Product Advertising 4.

Such advertisements appeal to the consumer’s emotions and rational motives. Pioneering Advertising: This type of advertising is used in the introductory stages in the life cycle of a product.1. 31 . Example: Airline advertising. Retentive Advertising A. 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 stimulates “selective” demand. Pioneering Advertising B. Competitive Advertising: It is useful when the product has reached the market-growth and especially the marketmaturity stage. Direct Type: It seeks to stimulate immediate buying action. Competitive Advertising C. or eventually – indirect action – when it suggests that you mention Air India’s name when talking to your travel agent. Product advertising is of three types. it provides prices. It seeks to sell a specific brand rather than a general product category. Air India attempts to bid for the consumer’s patronage either immediately . For example. A. time tables and phone numbers on which the customer may call for reservations. B. It is of two types: A. It conveys information about. 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. It is concerned with developing a “primary” demand. B.direct actionin which case. the initial advertisement for black – and – white television and color television.

A. Some advertise to stimulate primary demand. In this type of advertising. At this time. maturity or declining stage. 32 . 3. (i) Advertising may be used to stimulate either the primary demand or the selective demand. When a product is new. 2. Retentive Advertising: This may be useful when the product has achieved a favourable status in the market – that is. the marketer must inform consumers of the existence of the new item and convince them of the benefits flowing from its use. It is intended to affect the demand for a type of product. (iii) It may try to cause indirect action or direct action. Primary Demand Stimulation Primary demand is demand for the product or service rather than for a particular brand. the advertising strategy may be to stimulate the selective demand. primary demand stimulation is appropriate. Advertisements on not mixing drinking and driving are a good example of public service advertising. and not the brand of that product. Generally in such times. A much softer selling approach is used.C. The effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of the sponsoring organization. or only the name may be mentioned in “reminder” type advertising. Public Service Advertising This is directed at the social welfare of a community or a nation. i. the advertiser wants to keep his product’s name before the public. Functional Classification Advertising may be classified according to the functions which it is intended to fulfil. the objective is to put across a message intended to change attitudes or behaviour and benefit the public at large. (ii) It may promote either the brand or the firm selling that brand. When primary demand has been stimulated and competitors have entered the market. Advertising Based on Demand Influence Level.

This sells only the name and prestige of the company. emphasizing the quality and research behind its products.B. When Indian Oil advertisements describe the company’s general activities. HMT or DCM. The advertiser attempts to differentiate his brand and to increase the total amount of consumption of that product. suppliers. It may be of either the direct or the indirect type. This type of advertising is used frequently by large companies whose products are well known. financial institutions. ii. supports the socialistic pattern of society or provides employment opportunities in the community. such as voters. such as public service work. employees. thus indicating how it aided the development of ancillary industries. etc. selective demand advertising is attempted. persuasive or reminder oriented in character. 33 . or Vimal fabrics. Competitive advertising stimulates selective demand. 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. Institutional Advertising Institutional Advertising may be formative. it benefits the organization as a whole. If it is effective. It is also a useful method or introducing sales persons and new product to consumers. for example. and confidence in the sponsor. is an affair. It does not attempt to sell a particular product. It is not to stimulate the demand for the product or service.motive action employer. It notifies the consumers that the company is a responsible business entity and is patriotic. Selective Demand Stimulation This demand is for a particular brand such as Charminar cigarettes. Institutional advertising is used extensively during periods of product shortages in order to keep the name of the company before the public. that its management takes ecologically responsible action. does considerable institutional advertising of its name. legislators. government officials. the target groups will respond with goodwill towards. or the general public. Institutional advertisements are at consumers or focus them upon other groups. To establish a differential advantage and to acquire an acceptable sort of market. Surf detergent powder. suppliers. HMT once told the story of the small-scale industries supplying it with component parts. It aims at building for a firm a Positive public image in the eyes of shareholders.

Persuasive Product Advertising C. B. Informative Product Advertising B. 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. Consumer Advertising B. attitude change or action for an offering. It is a type of promotion used in the growth period and. to some extent. Informative Product Advertising: This form of advertising tends to characterize the promotion of any new type of product to develop an initial demand. It deals with the non-personal selling of a particular good or service.iii. designed to promote the sale or reputation of a particular product or service that the organization sells. 4. Persuasive Product Advertising: Persuasive product advertising is to develop demand for a particular product or brand. It was the original approach to advertising. It is usually done in the introductory stages of the product life cycle. Indane’s Cooking Gas is a case in point. Industrial Advertising 34 . Product Advertising Most advertising is product advertising. in the maturity period of the product life cycle. Reminder-Oriented Product Advertising A. The marketer may use such promotion to generate exposure attention. 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. comprehension. Advertising based on Product Life Cycle A. C.

35 . To create or change a buyer’s attitude. Marketers of pharmaceuticals. cigarettes and alcoholic beverages are examples. To help get items in the news column of a publication. to create or change a company’s image. They are:             To inform. exhibits. Baring a few. To recognition for the firm or its products.A. To reduce selling costs. cosmetics. etc. detergents and soaps. Advertising agencies are much less useful in industrial advertising. scooters. The objectives vary according to the firm and the situation. There is a heavy competition among the advertisers to establish an advantage for their particular brand. and general management publications. B. To get the advertiser’s name on the buyer’s list of sources. To induce inquiries. the derived demand. To establish recognition for the firm or its product. To provide support for the salesman. Trade journals are the media most generally used followed by catalogues. To motivate distributors. To motivate distributors. direct mail communication. To bring in orders. Industrial Advertising Industrial executives have little confidence in advertising. They rely on this form of promotion merely out of fear that their competitors may benefit if they stop their advertising efforts. all these products are all package goods that the consumer will often buy during the year. and The basic appeals tend to increase the rupee profits of the buyer or help in achieving his non-monetary objectives. The task of the industrial advertiser is complicated by the multiple buying influence characteristics like. Consumer Advertising Most of the consumer goods producers engage in consumer product advertising.

They also need to make a greater use of supplier promotion materials and programs in a way advantageous to them. together with their normal functions. The result is that advertising is often relegated to a secondary position in a retail store. either for themselves or for their suppliers. One aspect of retail advertising is co-operative advertising. Trade Advertising A. such as beauty shops. The store personnel are usually given this responsibility as an added task to be performed. generally. It refers to advertising costs between retailers and manufacturers. Retail Advertising B.” Advertising agencies are rarely used. It includes. cooperative advertising permits a store to secure additional advertising that would not otherwise have been available. also advertising by establishments that sell services to the public. Regional Advertising C. B. Retail Advertising This may be defined as “covering all advertising by the stores that sell goods directly to the consuming public. 6. petrol pumps and banks.5. Wholesale Advertising A. Wholesale Advertising Wholesalers are. Local Advertising 36 . From the retailer’s point of view. not advertising minded. Advertising based on Area of Operation It is classified as follow: A. National Advertising B. They would benefit from adopting some of the image-making techniques used by retailers – the need for developing an overall promotional strategy.

location. It encourages the consumer to buy their product wherever they are sold. 37 . Most national advertisements concentrate on the overall image and desirability of the product. For example: TV. magazine.A.P. it mainly confined itself to one of the vegetable oil brands distribution to Malihabad district (in U. But. Advertising According to Medium The most common classification of advertising is by the medium used. and so on. prices. C. business periodical. Local advertising It is generally done by retailers rather than manufacturers. Regional advertising It is geographical alternative for organizations. newspaper and direct mail advertising. These advertisements save the customer time and money by passing along specific information about products. outdoor. near Lucknow). Retailer advertisements usually provide specific goods sales during weekends in various sectors. Amrit Vanaspati based in Rajpura claims to be the leading hydrogenated oil producer in the Punjab. 7. The famous national advertisers are: Hindustan Levers DCM ITC Jay Engineering TISCO B. radio. For example. This classification is so common in use that it is mentioned here only for the sake of completeness. until recently. National advertising It is practiced by many firms in our country.

a need is generally arisen to measure the effectiveness of the campaign. it has achieved the desired results i. affect the future sale of the product. 38 . (c) Coupon blank etc. The technique is known as keying the advertising. (b) Different newspapers may be selected for advertisements of different departments.e.. 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.can be undertaken. This chapter deals these three problems. two types of tests pre tests and post tests. desired sales profitability or results in terms the change in customer’ behaviour in favour of the company’s product which will naturally. In the background of all these efforts. May be provided with the advertisement or (d) Enquiry from consumers should mention the name of the source of information. Thus in measuring the effectiveness of advertising we include measuring of the effectiveness of advertising campaign. 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. There are several pre and post tests techniques to measure the effectiveness of the advertising copy. to increase the sales turnover and thus to market the maximum profit. The advertiser spends lakhs of rupees in to this advertising activity. In order to measure the effectiveness of advertising copy.Measuring Advertising Effectiveness All advertising efforts are directed mainly towards the achievement of business. marketing and advertising objectives i. is an attempt to attract the customer towards the product through advertising.e. Whether.

The main purpose of advertising is communicated the general public. various information about the product and the company. (6) Compare two markets Under this procedure. The measurements made to determine results may be measurements of change in sales. message or appeal of the advertising. change in consumer attitudes. 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 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.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. Thus waste of money in faulty advertising can be avoided. If the expected rate of return is achieved in terms of additional profits. the advertisement can be considered as effective one. and existing and prospective consumers. (3) Avoids possible failure Advertisers are not sure of results of advertising from a particular advertising campaign. Evaluating advertising effectives helps in estimating the results in order to avoid complete loss. (2) Provides feedback for remedial measures Testing effectiveness of advertising provides useful information to the advertisers to take remedial steps against ineffective advertisements. Markets – so called control markets – which have had the regular advertising program. (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. (4) To justify the Investment in Advertising The expenditure on advertisement is considered to be an investment. changes in dealer display and so on depending upon the objectives sought by the advertiser. advertising is published in test markets and results are contrasted with other. 39 . The rate and size of return should be determined in advance.

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. 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. This technique estimates the contribution that advertising has made to explaining in a co relational manner rather than a casual sales. The following are some of the methods that are generally used in measuring that advertising effects. a relationship between advertising and sales is established. It would show how the changes in advertising expenditure have corresponding changes in 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 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. One experimental approach to measuring the sales effectiveness of advertising is test marketing. A comparison of sales of two periods or two periods or two markets may be done and the corresponding changes may be noted. Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs. 40 . There may be two types measures (i) (ii) Direct measures: and Indirect measures:- (1) Direct Measures of Advertising Effectiveness Under direct measures.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) 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.

Thus. advertisement is bound to failure. Despite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results. former Fords Director of Marketing Research.The power of this multivariable factorial design is explained by G. Cities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities. eight possible geographic areas have been exposed and eight have not been exposed. For any single medium. 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. First of all. The most commonly used measures are – (i) Exposure to Advertisement In order to be effective.Brown. 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. most firms rely heavily on indirect measures. The effect of advertising campaign. it is not successful in explaining the success or failure of the campaign itself. there is no other alternative but to use indirect measures. the normal sales level is calculated for both type of cities prior to advertising campaign. Marketers or advertisers may obtain an idea of exposure generated by the medium by examining its circulation or 41 . therefore used by some very large firm because of their diagnostic value.H. Without exposure. and then the advertising campaign is presented to the test cities and not the central cities. The management is concerned about the number of target audiences who see or hear the organization message set in the advertisement. can then. (2) Indirect Measures As it is very difficult to measure the direct effect of advertising on company’s profits or sales.(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. 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. the advertisement must gain exposure.

newspaper or journal sold the number of persons passing the billboards or riding in transit facilities. (ii) Attention or Recall of Advertising Message Content This is one of the widely used measures of advertising results. the consumers are asked to indicate the extent to which they recognise or recall the advertisement. for new products. The assumption of this type of measure is that there is a direct relationship between the advertisements and the awareness. This number can be estimated by interviewing the numbers of the audience for different media. Under this measure.V. and radio sets at various points of time. In a pre-test evaluation. 42 . But. and the number of persons switching on their T. changes in awareness can often be attributed to the influence of advertising. There are two methods for evaluating the attention getting value of the advertisements. Various mechanical devices are being used in the western countries which provide indices of attention such as eye-camera etc. These measures assume that customers can recall or recognize what they have viewed or listened to.audience data which reveal the number of copies of the magazine. 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. It is also affected by many other factors. One is pre-test and the other is post-test. Here consumers read. they have already seen. (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. hear or listen to the advertisement and then researchers ask question regarding the advertisement just to test the recall and then evaluate it. 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. the consumers are asked questions about the indication of recognition or recall after the advertisement has been run. In post-test method. This test is conducted in the laboratory setting. 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.

Under this type of measure. these above measures (direct or indirect) are used to evaluate the effectiveness of advertisements. 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. 43 . (vi) Action One objective of advertisement may be assumed to be to stimulate action or behavior. consumers are asked to respond why they are interested in purchasing the product or brand. 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. 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. 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. Logic suggests that measurement of sales is preferable to other measurements.(iv) Comprehension Consumers generally use advertisements as a means of obtaining information about the product. Another measure of the variable is to ask questions about subjects how much they have comprehended a message they have recently heard or seen. Thus. 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. 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. the change in sales levels are good indicators of the effectiveness of advertising. One may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. The action or intention to take an action may be measured on the intention to buy measuring instrument. (v) Attitude Change Since advertising is considered to be one way of influencing the state of the mind of the audience towards a product.

Any social institution upon which a significant portion of our total productive efforts is expanded should be able to point to its specific accomplishment. it is very necessary to know how advertising affects the buyer’s behaviors. The effectiveness of advertising can be measured by the extent. By regular evaluation of the effectiveness. 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. Advertising can be said to be effective otherwise it will be a waste of money and time. advertising can be recognized as a business activity like other activities. For this purpose. In this sense. it is a source of discomfort that specific results of advertising activities have not always been subject to precise measurement. 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. But this is very difficult task because measurements are imperfect and imprecise. 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. Such events may influence the results of the advertising efforts. In a very real sense the integrity of promotional activities rests on how well those activities work. Indeed. If we take a hypothetical case of a retailer who contract to spent 44 .) cannot be accurately anticipated. (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.(a) The reaction of consumer – buyers to the advertising efforts cannot be known in advance. The exact result of advertisement expenditure is very difficult to predict because. 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.

Pre.tests are conducted before exposing target consumers to the advertisements and post tests after consumers have been exposed to them.tests and post – tests ) are deeded to determine whether proposed advertisement should be used. The advertising executives are much concerned about the assessment of the effectiveness of the advertising efforts. So they test the proposed advertisement with pre test and measure the actual results with a post test. But it does not mean that that we cannot measure the effects of particulars advertising effort. What caused the success of sale? They message theme colors etc. 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. 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. and whether on going campaign should be stopped continued or changed. The advertisement is seen and the response is much greater than it is anticipated. the management needs answers to such questions as: was the advertising campaign really successful in attaining the advertising goals? Were our T. various tests of effectiveness (Pre. 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. For this purpose. In the past. and if they are not satisfactory how they might be improved.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. 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 .Rs.V. which we have designed. make consumers aware of our new product? To get answers of these questions. As indicated earlier. commercials as good as those of our competitors? Will the print advertisement.. protesting was done by the advertising agencies but now the advertisers have been taking an increasingly active role in protesting process. the advertisers are interested in knowing what they are getting for their advertising rupees. It is so because the cause and effect – relationship cannot be established in advance when a multitude of variable impinge upon a particular event.

Indirectly it will affect the sales in the long run. by changing the consumer awareness and attitude. In the short run. The advertisers are therefore. however sales may be slight and important but in the long run its effects ob brands and companies may be of great importance. (ii) The advertising executives can prove to the satisfaction of the management that a higher advertising budget will benefit the firm. There are many critical and unresolved issues in determining how to test the communication effects of advertising. Among these are:- 46 . Most research focuses on the communication effect rather than sales effect because it is a long run process. 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. 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. If consumer is satisfied with the trial he may decide to purchase the product.(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.

47 .V. Many types of advertising tests are conducted (different methods of pre tests and post – test are given in question number) In T. commercials are tested by inviting a group of people to the studio to view a program.Quantitative data are the easiest and the almost precise measurement. The audience is then surveyed about the commercials. Print advertisements are tested through dummy magazine portfolio tests. Does protesting a preliminary execution produce accurate and useful data? (3) Quality Vs. Quantity Data. 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.

48 . 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. 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. Since. Added to this is the fact that advertisement itself is made of a variety of variables such as media.Compunction Effectiveness Vs Sales Effectiveness It is easier to assess the communication effect of advertising than the sales effect. It is so because advertising is no the only variable that effect the sales. messages. For example direct mail advertising can effectively be measured by the inquiries received. The big business house. 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. Many firms try to measure the effectiveness of advertising in terms of sales results but this practice is always misleading. the effect is the result of so many variables. page or time of the day. This situation is quite hypothetical and almost nonexistent. Although there may be some exceptions. which has more access to research. a distinct effect of advertising on sales cannot be correctly measured. the size of the headline and the appeals used. locations. But in many situations the exact relationship between advertising activity and sales cannot be established satisfactorily. So advertisers try to measure the communication effect of the advertising. Thus. 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. colours.

49 . Law forbids deceptive advertising. A whole set of rules is emerging to cover advertising directed at children. by it can lessen the social value of advertising by reducing the amount for useful information that it provides to society. and global. and advertising for products such as alcohol and cigarettes. Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other. legal. Even more difficult consideration for people involved in the advertising effort is broad social and economic issues.Factors Affecting Advertising The final external factor in the planning framework concerns environmental factor social. especially when it is more irritating than entertaining. and advertiser who attempts to provide specific. Another concern is that advertising. is an intrusion into an already excessively polluted environment. such an approach can result not only in ineffective advertising. relevant information must be well aware of advertising regulation. Thus. One solution is to create brand advertising that is vague and contains little specific information. However. and the use of environmental and health claims in advertising.

IMPACT OF ADVERTISEMENT Advertising has an important effect on a country’s economy. advertising simply moves sales from one company to another. This is especially true in the United States where the advertising industry plays such a prominent role. By stimulating the development of new products. Other economists. rather than increasing sales overall and thereby benefiting the economy as a whole. 50 . sell them at a lower price. advertising helps increase competition. society. however. and political system. enabling them to recoup the costs of developing new products. Manufacturers know that advertising can help sell a new product quickly. These economists also argue that by interesting consumers in purchasing goods. Economic Impact Most economists believe that advertising has a positive impact on the economy because it stimulates demand for products and services. culture. advertising enables manufacturers and others to sell their products in larger quantities. Many economists believe that increased competition leads to lower prices. Advertising thus benefits consumers by helping lower prices. According to this view. thereby benefiting consumers and the economy as a whole. strengthening the economy by promoting the sale of goods and services. The increased volume of sales enables companies to produce individual units at lower costs and therefore. believe that advertising is wasteful. 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. 1.

or business people. to the public. if not free. pleasures. Asians. As ads have begun to more fully reflect the lives of women and African Americans in the United States. ads continued to focus on their role as homemakers. Whether owing to the feminist movement or to women's increasing economic power. They argue that advertising creates a consumer culture in which buying exciting new products becomes the foundation of the society's values. Other critics express concern over the way advertising has affected women and racial minority groups. Advertising has a major social impact by helping sustain mass communications media and making them relatively inexpensive. There is still considerable debate over how advertising influences public perception of gender and of particular ethnic groups. Although millions of women worked outside the home in the 1960s. Social Impact Advertising can have wide-ranging repercussions on a society. after the 1960s it became more common to see women depicted in professional roles. Prior to 1960. Native Americans. Newspapers. and broadcast television all receive their primary income from 51 . however. Some critics suggest that advertising promotes a materialistic way of life by leading people to believe that happiness is achieved by purchasing products. magazines. radio. professionals. including Hispanics. 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. many ads today still emphasize a woman’s sexuality. Ads in the 1950s depicted women primarily as decoration or sex objects. increasing attention has been paid to the way in which advertising shows other ethnic groups. advertisers by the 1980s had begun to depict African Americans as students. However. and goals. African Americans were usually shown in a subordinate position. However. and Eastern Europeans.2. Due to the influence of the civil rights movement. The way advertising has depicted racial minorities has also been harmful.

however. As a result. offer less variety. Advertisers may affect media programming in other ways. In-depth news programs. which makes them especially vulnerable to advertising. for example. which causes a program to be canceled. Because advertisers are especially interested in attracting the 18 to 34 year olds who account for most consumer spending. As a result. Most members of the news media deny that pressure from an advertiser prevents them from pursuing news stories involving that advertiser. and free entertainment might no longer be widely available. television shows are often developed with this audience in mind. or they might be considerably more expensive. For example. noncontroversial programming to avoid offending a mass audience. a diversity of magazines. 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. critics charge. Research suggests that children see television advertising as just another form of programming and react uncritically to its messages. At the same time. Reporters and editors. some critics warn that because advertising plays such a major economic role. or even be subject to government control through subsidies. particularly among 18 to 34 year olds. society might not be alerted to harmful or potentially harmful conduct by the advertiser. 52 . If the ratings show that a program is not attracting large audiences. advertisers often withdraw support.advertising. many of these forms of mass communication might not exist to the extent that they do today. shows that are more likely to interest and to be of value to older audiences are not produced. Without advertising. 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. The impact of television on young children has received much attention. 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. companies that sponsor TV programs prefer relatively wholesome. This preference causes TV networks to emphasize this type of programming. too.

There is also concern about the way in which adolescent girls respond to advertising that features beautiful. buffed bodies. Research indicates that many adolescent girls are unduly influenced by this standard of beauty. Television advertising is especially effective for candidates running for national or statewide office because it can reach so many people at once. and may even take drugs that have harmful side effects in order to develop more muscle. and may develop eating disorders in pursuit of a thin figure. however. As a result. That amount of spending placed political advertising in the ranks of the country’s 30 leading advertisers that year. Various campaign finance reform proposals. devote large amounts of time to weightlifting. In 1998 more than $467 million was spent on election campaigns in the United States. become dissatisfied with their own bodies. the costs of political campaigns have skyrocketed. Critics say this factor jeopardizes the democratic process by making elected officials beholden to 53 . history. have tried to address the impact of television advertising on political campaigning. Those over the age of 60 are thought to be less influenced by advertising. even after they have been elected to office.S. making it necessary for candidates to raise money continually. political advertising has grown in sophistication and complexity. Because of the high cost of television ads. thin models. Political advertising is a relatively new development in U. but some elderly people no longer process messages as easily as younger people. Political advertising enables candidates to convey their positions on important issues and to acquaint voters with their accomplishments and personalities. many become dissatisfied with their own body image. 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. making them more susceptible to questionable advertising claims. But since then. 3. Political Impact Advertising is now a major component of political campaigns and therefore has a big influence on the democratic process itself. Advertising professionals did not become involved in electoral campaigns until the 1950s.

4. During a primary debate one of the candidates used the ad slogan to suggest that his opponent’s campaign lacked substance. voters are bombarded with image advertising rather than being acquainted with the candidate’s positions. 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. Some critics argue that advertising messages are thus helping to break down distinct cultural differences and traditional values. Humor in advertising has made many ad campaigns widely popular. multinational corporations often use the same advertising to sell to consumers around the world. for example. thereby distorting the political process. or they contribute to culture in a positive way. Cultural Impact Advertising can affect cultural values. Issues are simplified. They contend that this practice is harmful to good government. however. The ad ridiculed a competitor by depicting a small hamburger patty dwarfed by a huge bun. 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. Some reform proposals have called for free airtime. in some cases achieving the status of folklore or taking on new life in another arena. 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. and candidates are “packaged and sold” much like a consumer product. Many advertising campaigns.wealthy contributors and by making it more likely that only the wealthy will run for office. encourage aggressive individualism. causing the world to become increasingly homogeneous. overriding cultural differences. have universal appeal. Some advertising messages. but television and radio networks have resisted this idea. As a result. For example. 54 .

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 .

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. How much deviation can occur before you. For example. Use the chi-square distribution table to determine significance of the value. divided by the expected data in all possible categories. d). use the data provided in the problem). Complete all calculations to three significant digits. according to Mendel's laws. Remember to use numbers. then you might want to know about the "goodness to fit" between the observed and expected. Calculate 2 using the formula. not percentages. Were the deviations (differences between observed and expected) the result of chance. you expected 10 of 20 offspring from a cross to be male and the actual observed number was 8 males. 56 . the investigator. or were they due to other factors. The chi-square test is always testing what scientists call the null hypothesis. if working genetics problems. 2. 3. Chi-square should not be calculated if the expected value in any category is less than 5. Round off your answer to two significant digits. Determine the expected numbers for each observational class. must conclude that something other than chance is at work. if.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. causing the observed to differ from the expected. Locate the value closest to your calculated on that degrees of freedom df row. State the hypothesis being tested and the predicted results. Move up the column to determine the p value. chi-square is the sum of the squared difference between observed (o) and the expected (e) data (or the deviation. 4. Gather the data by conducting the proper experiment (or. Step-by-Step Procedure for Testing Your Hypothesis and Calculating Chi-Square 1. Determine degrees of freedom and locate the value in the appropriate column.

Therefore. reject your hypothesis. Various facts and figures have been gathered through different websites & portals. SECONDARY DATA: The secondary data is also of utmost importance. 57 . It helps in the in depth analysis of the organization. other factors must be involved. If the p value for the calculated is p > 0. and conclude that some factor other than chance is operating for the deviation to be so great. State your conclusion in terms of your hypothesis. accept your hypothesis.6. means that there is a 60% probability that any deviation from expected is due to chance only. A p value of 0. a p value of 0. If the p value for the calculated is p < 0.05. For example.01 means that there is only a 1% chance that this deviation is due to chance alone. PRIMARY DATA: The primary data has been collected by preparing a questionnaire. They have been asked questions regarding the different kind of media affecting their choices regarding the different products. This is within the range of acceptable deviation.5. A list of all those referral websites is mentioned later in the report in references. for example.05. 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. A specimen of the questionnaire is attached. which was circulated over hundred persons. 'The deviation is small enough that chance alone accounts for it. The chi-square test will be used to test for the "goodness to fit" between observed and expected data from several laboratory investigations.

magazines. Sl. No.SAMPLING UNIT Sampling Unit is the total number of samples differed in different locality. Classes Students Professionals Household Total No. The secondary data was collected through books. and websites. 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. 58 . All the area had segmented according the population of this area. 2. 3. 1. We have considered 100 as sample size.

E31=(R3C1)/N=(60*25)/100=15 E32=(R3C2)/N=(27*60)/100=16. Step3: Calculation for the expected frequency We use formula (Row total*column total)/Grand total E11=R1C1/N=(25*20)/100=5.6 EE21=(R2C1)/N=(27*20)100=5.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.CHI-SQUARE TEST Aim.8 Step 4: Test statistic for testing H0 is: ℵ^2=∑(0i-Ei)^2/Ei 59 . HA: There is significant difference( or relationship) between the people occupation and the mode of advertising media affecting their perception.6 E23=(R2C3)/N=(25*20)/100=5.2 E33=(R3C3)/N=(48*60)/100=28. 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. Step 2: Level of significance α considered in this analysis is 5% α=0.4 E22=(R2c2)/N=(48*20)/100=9. Following is the information collected from the primary source . E12=(R1C2)/N=(27*20)100=5.05.4 E13=(R1c3)/N=(48*20)/100=9.

In this case we reject null hypothesis.6 5 5.4 7. 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. D(4.e Print media .electronic media and Outdoor media 60 ..488 Step6: ℵ^2 cal > ℵ^ tab. Hence People with different occupation are affected differently by different kinds of media i. Tabulated value at 4 degree of freedom and 0.66 2.96 73.79 Step 5: Statistic follows a chi-square distribution. So (r=no.Observed frequency Oi 10 8 2 10 9 1 5 10 15 `Expected Frequency Ei 5 5.25 6.01 5 2.0.1125 ℵ^2 =45.6 15 6 28.70 6.05)= 9. of rows c= no. Step:7 Conclusion: There is a significant difference between the people occupation and mode of media affecting their perception regarding different products.76 57.8 (Oi. Thus accept the HA.Ei)^2 25 6.05 level of significance.4 9.66 9.76 25 12.96 100 16 262.44 ( Oi-Ei)^2/ Ei 5 1. columns) Degree of freedom df=(r-1)(c-1) = (3-1)(3-1) = 2*2= 4.4 9.

Which form of advertisement do you like more? 61 . 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   Interpretation A large size of population is influenced by Television and Newspapers. 2.GRAPHICAL INTERPRETATION 1.

of respondents 28 72                                                                                                                                                                                                                                                    Interpretation: People are more affected by advertisement with moving image.Answers Still image Moving image No. 62 .

3. 63 . of respondents 62 38                                                                                                                                                                                                                                                    Interpretation: More number of people consider advertisement as a source of information rather than a source of entertainment. 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 .4. Does entertaining advertisement affect your opinion about the product? Answers Yes No No.

Does information provided in advertisement affects your opinion about the product? Answers Yes No No. 65 .5. of respondents 87 13 Interpretation: Information provided in the advertisement affect very much on the opinion of consumers about the product.

66 . 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.

7. of respondents 69 31                                                                                                                                                                                                                                                    Interpretation: Presence of any celebrity affects on the opinion of consumers about the product. 67 . Does presence of any celebrity in the advertisement affects your opinion about the product? Answers Yes No No.

68 . Does intensity of the advertisement affects your opinion about the product? Answers Yes No No.8. of respondents 52 48                                                                                                                                                                                                                                                    Interpretation: The effect of intensity is very powerful on the opinion of consumers about the product.

9. 69 . of respondents 59 41                                                                                                                                                                                                                                                    Interpretation: Presence of social issues in advertisements affects very much on the opinion of consumers about the product. Does presence of social issues in the advertisement affects your opinion about the product? Answers Yes No No.

Do you think advertisement helps in increasing sales of any product? Answers Yes No No. 70 .10. of respondents 87 13                                                                                                                                                                                                                                                    Interpretation: Advertisement helps very much in increasing the sales of any product.

71 .  National advertisement has more influence on consumer’s perception about the product instead of local advertisement.  Advertisement increases the sales of any product.FINDINGS  Advertisements with moving image are more effective than advertisement with still image.  Intensity of advertisement affects the perception of consumers towards the product and leads them for its purchase.  Information provided in the advertisement has more influence on consumer’s perception about the product.  Language used in the advertisement also plays important role in increasing effectiveness of an advertisement.  Social issues included in advertisement affects the perception of high age group people.

not just for one customer.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. Store signs. The objectives of advertising were traditionally stated in terms of direct sales. Window display and counter – display materials and efforts. Advertising seeks to condition the consumer so that he/she may have a favorable reaction to the promotional message. thorough tradesmen. 72 . Label stags and other literature accompanying the merchandise. Each advertisement is a specific communication that must be effective. Advertising is a form of promotion and like a promotion. Now. has defined advertising as “any form of nonpersonal presentation or promotion of ideas. Chicago. Novelties bearing advertising messages and Signature of the advertiser.” Advertising focuses on mass production and mass communication along with the niche markets and specialized markets . but for many target buyers. Advertising includes the following forms of messages: The messages carried in   Newspapers and magazines. or by inserts in packages). This means that specific objectives should be set for each particular advertisement campaign. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising program. by person. 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. motion pictures used for advertising. it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. (whether distributed by mail. the objectives of advertising should be specific. Circular of all kinds. The American Marketing Association.      Dealer help materials. by an identified sponsor. goods or services. On radio and television broadcasts.

CONCLUSION
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.

73

LIMITATIONS
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.

74

SUGGESTIONS
 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.

75

. Advertising and Sales Promotion Management. Gupta S.google. Printice hall. 3. Mohan M. Kogan page India Pvt. The millennium edition.com/books?id=t-yoHkKZ9ZsC&q=marketing&dq=marketing&cd=1 2. Marketing Management. Kotler Philip. India. http://books.REFERENCE Books 1. (2009) Strategic Brand Management . New Delhi. 2. Excel Books.com/books?id=wAMsaLJoykYC&dq=marketing&cd=3 76 .(2000). Strategic Brand Management – Kapferer 5.google. (1989).L (2005). 4. http://books. Tata Mc Grawhill. Kapferer J. Ltd. Internet 1. India. Advertising Management : concept and cases.

...... Service class [ [ [ [ [ ] ] ] ] a. Business class [ d.. Peers (friends/family) [ [ [ [ ] ] ] ] ] ] b.. Male [ ] b. Newspapers and Magazines [ 2... Moving image (Visual display board) [ ] 77 . Above 40 Occupation: a. Still image (Banners and hoardings) [ b.... For this we require you to please fill this questionnaire. Which form of Outdoor advertisement do you like more? a. 30 to 40 d... Television c...... Outdoor advertizing d.. Sex: Age: a.. 20 to 30 c. Female [ ] 1. House hold [ [ ] ] ] ] b... Internet e.... From where do you get information about the new product? a.. Below 20 b. Student c. Name: ………………………………..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”....

No product? a. No a. No [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ [ [ [ [ ] ] ] ] ] ] ] ] 4. Yes b. Yes b.3. No a. Does presence of any celebrity in the advertisement affects your opinion about the 8. Information b. Entertainment a. Yes b. Does an entertaining advertisement influences your opinion about the product? 5. Does language used in advertisement affects your opinion about the product? 7. Yes b. No a. Do you think advertisement helps in increasing sales of any product? 78 . Yes b. For you advertisement is a source of a. No a. No product? a. Yes b. Yes b. 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. Does intensity of the advertisement affects your opinion about the product? 9.