INTRODUCTION

It has been wrongly assumed that the advertising function is of recent origin. Evidences suggest that the Romans practiced advertising; but the earliest indication of its use in this country dates back to the middle Ages, when the use of the surname indicated a mans occupation. he ne!t stage in the evolution of advertising was the use of signs as a visual e!pression of the tradesmans function and a means of locating the source of goods. common use. his method is still in he seller in primitive times relied upon his loud voice to attract attention and

inform consumers of the availability of his services. If there were many competitors, he relied upon his own personal magnetism to attract attention to his merchandise. "ften it became necessary for him to resort to persuasion to pinpoint the advantages of his products. hus, the seller was doing the complete promotion #ob himself. $evelopment of retail stores, made the traders to be more concerned about attracting business. Informing customers of the availability of supplies was highly important. %ome types of outside promotion were necessary. %igns on stores and in prominent places around the city and notices in printed matters were sometimes used. &hen customers were finally attracted to the store and satisfied with the service at least once, they were still sub#ected to competitive influences; therefore, the merchants signs and advertisements reminded customers of the continuing availability of his services. %ometimes traders would talk to present and former customers in the streets, or #oin social organi'ations in order to have continuing contacts with present and potential customers. As the markets grew larger and the number of customers increased, the importance of attracting them also grew. Increasing reliance was placed on advertising methods of informing about the availability of the products. hese advertising methods were more economical in hey reaching large numbers of consumers. &hile these advertising methods were useful for informing and reminding and reminding, they could not do the whole promotional #ob. once the customers were attracted to his store. he invention of hand press increased the potentialities of advertising. (y %hakespeares times, posters had made their appearance, and assumed the function of fostering demand for ) were used only to reach each consumer personally. he merchant still used personal persuasion

e!isting products. Another important event was the emergence of the pamphlet as an advertising medium. he early e!amples of these pamphlets disclose their sponsorship by companies want to generate goodwill for their activities. he low cost of posters and handbills encouraged a number of publishers to e!periment with other methods.

RESEARCH OBECTIVES

o study types of advertisements.

o study effectiveness of advertisements i.e. on sales, profitability.

o study the perception of consumers towards the product due to advertisement.

o find the ways to make it more effective.

HISTORY OF ADVERTISEMENT
Archaeologists have found evidence of advertising dating back to the +,,,s (-, among the (abylonians. "ne of the first known methods of advertising was the outdoor display, usually an eye.catching sign painted on the wall of a building. Archaeologists have uncovered many such signs, notably in the ruins of ancient Rome and /ompeii. An outdoor advertisement e!cavated in Rome offers property for rent, and one found painted on a wall in /ompeii calls the attention of travelers to a tavern situated in another town. In medieval times word.of.mouth praise of products gave rise to a simple but effective form of advertising, the use of so.called town criers. he criers were citi'ens who read public notices aloud and were also employed by merchants to shout the praises of their wares. 0ater they became familiar figures on the streets of colonial American settlements. he town criers were forerunners of the modern announcer who delivers radio and television commercials. Although graphic forms of advertising appeared early in history, printed advertising made little headway until the invention of the movable.type printing press by 1erman printer 2ohannes 1utenberg about )34,. possible. his invention made the mass distribution of posters and circulars wo hundred years later, the first newspaper ad was he first advertisement in English appeared in )35* in the form of a handbill

announcing a prayer book for sale.

published offering a reward for the return of )* stolen horses. In the American colonies, the Boston News-Letter, the first regularly published newspaper in America, began carrying ads in )5,3, and about *4 years later (en#amin 6ranklin made ads more readable by using large headlines. In the 7nited %tates, the advertising profession began in /hiladelphia, /ennsylvania, in )83) when 9olney (. /almer set up shop as an advertising agent, the forerunner of the advertising agency. Agents contracted with newspapers for large amounts of advertising space at discount rates and then resold the space to advertisers at a higher rate. he ads themselves were created by the advertisers. In )8:; 6rancis Ayer bought out /almer and founded <. &. Ayer = %on, an agency that still e!ists today. Ayer transformed the standard agent practice by billing 3

advertisers e!actly what he paid to publishers plus an agreed upon commission. %oon Ayer was not only selling space but was also conducting market research and writing the advertising copy. Advertising agencies initially focused on print. (ut the introduction of radio created a new opportunity and by the end of the );*,s, advertising had established itself in radio to such an e!tent that advertisers were producing many of their own programs. he early );+,s ushered in do'ens of radio dramatic series that were known as soap operas because they were sponsored by soap companies. elevision had been introduced in );3,, but because of the high cost of 9 sets and the lack of programming, it was not immediately embraced. As the American economy soared in the );4,s, so did the sale of 9 sets and the advertising that paid for the popular new shows. %oon 9 far surpassed radio as an advertising medium. he tone of the advertising was also changing. <o longer did advertising simply present the product benefit. Instead it began to create a product image. (ill (ernbach, founder of $oyle $ane (ernbach in <ew >ork -ity; 0eo (urnett, founder of the 0eo (urnett agency in -hicago, Illinois; and $avid "gilvy, founder of "gilvy = ?ather in <ew >ork -ity, all came to prominence in the late );4,s and );:,s and led what has been called the @creative revolution.@ (ernbach@s agency captured the spirit of the new age. (ernbach believed that advertising had to be creative and artistic or it would bore people. Ae also believed that good advertising began with respect for the public@s intelligence. sophisticated, and witty. 6or e!ample, when (ernbach@s agency picked up the account for the Aenry %. 0evy (akery in (rooklyn, a borough of <ew >ork -ity, the agency created an ad that entertained <ew >orkers and provided fodder for many conversations. he ad showed a <ative American eating a slice of the bakery@s rye bread with the headline, @>ou don@t have to be 2ewish to love 0evy@s.@ (ut it was the advertising for 9olkswagen that made the agency@s reputation. At a time when American cars were getting bigger and bigger and the advertising for them trumpeted that bigger was better, $oyle $ane (ernbach created a maga'ine ad that showed a small picture of the 9olkswagen (eetle surrounded by a sea of white space with the headline, @think small.@ An 4 he ads his agency created were understated,

eBually unconventional ad carried the headline @lemon@ beneath a photo of an apparently flawed 9olkswagen. he ad@s copy e!plained that @this 9olkswagen missed the boat. he chrome strip on the glove compartment is blemished and must be replacedC&e pluck the lemons; you get the plums.@ In an era of hype and bombast, the 9olkswagen ads stood out because they admitted failure in a witty way and gave facts in a believable manner that underlined the car@s strengths. his wit together with a conversational and believable style was a hallmark of the advertising created by $oyle $ane (ernbach and that style became highly influential. he creative foundation established by (ernbach and others has been critical to the success of contemporary advertising. he introduction of the 9 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. <ew digital devices even threaten to make it possible to edit out commercials. he development of interactive television, combining the functions of a computer with access to high.speed transmission over cable lines or optical fibers, will likely enable consumers to select from a vast video library. -onsumers will be able to determine not only when they watch something, but also, to a greater e!tent than ever before, what they will watch. %ome industry observers believe that as consumers gain greater control over their viewing activities, they will find it easier to avoid advertising.

DEFINITION OF ADVERTISING he word advertising originates from a 0atin word advertise, which means to turn to. he dictionary meaning of the term is Dto give public notice or to announce publiclyE. Advertising may be defined as the process of buying sponsor.identified media space or time in order to promote a product or an idea. he American ?arketing Association, -hicago, has defined advertising as Dany form of non.personal presentation or promotion of ideas, goods or services, by an identified sponsor.E What Advertisement Is Advertisement is a mass communicating of information intended to persuade buyers to by products with a view to ma!imi'ing a companys profits. he elements of advertising areF GiH It is a mass communication reaching a large group of consumers. GiiH It makes mass production possible. GiiiH It is non.personal communication, for it is not delivered by an actual person, nor is it addressed to a specific person. GivH It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales. GvH Advertising can be economical, for it reaches large groups of people. his keeps the cost per message low. GviH he communication is speedy, permitting an advertiser to speak to millions of buyers in a matter of a few hours. GviiH Advertising is identified communication. he advertiser signs his name to his advertisement for the purpose of publici'ing his identity. What is In!"#ded in Advertisin$ GiH he information in an advertisement should benefit the buyers. It should give them a more satisfactory e!penditure of their rupees. 5

GiiH It should suggest better solutions to their problems. GiiiH he content of the advertisement is within the control of the advertiser, not the medium. GivH Advertising without persuasion is ineffective. GvH he advertisement that fails to influence anyone, either immediately or in the future, is a waste of money. he function of advertising is to increase the profitable sales volume. hat is, advertising e!penses should not increase disproportionately. Advertisin$ in!"#des the %&""&'in$ %&rms &% messa$esF he messages carried in. <ewspapers and maga'ines; "n radio and television broadcasts; -ircular of all kinds, Gwhether distributed by mail, by person, thorough tradesmen, or by inserts in packagesH; $ealer help materials, &indow display and counter I display materials and efforts; %tore signs, motion pictures used for advertising, <ovelties bearing advertising messages and %ignature of the advertiser, 0abel stags and other literature accompanying the merchandise.

What is e(!"#ded %r&m Advertisin$ Advertising is not an e!act science. An advertisers circumstances are never identical with those of another; he cannot predict with accuracy what results his future advertising efforts will produce. GiH Advertising is not a game, because if advertising is done properly, both the buyer and the seller benefit from it. GiiH Advertising is not a toy. Advertiser cannot afford to play with advertising. Advertising funds come from sales revenue and must be used to increase sales revenue. GiiiH Advertisements are not designed to deceive. he desire and hope for repeat sales insures a high degree of honesty in advertising.

The a!tivities e(!"#ded %r&m advertisin$ are) he offering of premiums to stimulate the sale of products; he use of e!hibitions and demonstrations at fairs, show and conventions; he use of samples and activities, involving news releases and the activities of personal selling forces; he payment of advertising allowances which are not used for advertising; he entertainment of customers Advertisin$ O*+e!tives Each advertisement is a specific communication that must be effective, not #ust for one customer, but for many target buyers. his means that specific ob#ectives should be set for each particular advertisement campaign. Advertising is a form of promotion and like a promotion; the ob#ectives of advertising should be specific. his reBuires 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. he ob#ectives of advertising were traditionally stated in terms of direct sales. <ow, it is to view advertising as having communication ob#ectives that seek to inform persuade and remind potential customers of the worth of the product. Advertising seeks to condition the consumer so that heJshe may have a favourable reaction to the promotional message. Advertising ob#ectives serve as guidelines for the planning and implementation of the entire advertising programme. The *asi! &*+e!tives &% an advertisin$ ,r&$ramme ma- *e "isted as *e"&') GiH o stimulate sales amongst present, former and future consumers. It involves a decision regarding the media, e.g., 9 rather than print ; GiiH o communicate with consumers. his involves decision regarding copy ; GiiiH o retain the loyalty of present and former consumers. Advertising may be used to reassure buyers that they have made the best purchase, thus building loyalty to the brand name or the firm.

GivH

o increase support. Advertising impliedly bolsters the morale of the sales force and of

distributors, wholesalers, and retailers, ; it thus contributes to enthusiasts and confidence attitude in the organi'ational. F GvH o pro#ect an image. Advertising is used to promote an overall image of respect and trust for an organi'ation. his message is aimed not only at consumers, but also at the government, shareholders, and the general public. Im,&rtan!e &% Advertisin$ 1enerally, advertising is a relatively low.cost method of conveying selling messages to numerous prospective customers. It can secure leads for salesmen and middlemen by convincing readers to reBuest more information and by identifying outlets handling the product. It can force middlemen to stock the product by building consumer interest. It can help train dealers salesmen in product uses and applications. It can build dealer and consumer confidence in the company and its products by building familiarity. Advertisin$ is t& stim#"ate mar.et demand. &hile sometimes advertising alone may succeed in achieving buyer acceptance, preference, or even demand for the product, it is seldom solely relied upon. Advertising is efficiently used with at least one other sales method, such as personal selling or point.of.purchase display, to directly move customers to buying action. Advertising has become increasingly important to business enterprises Iboth large and small. "utlay on advertising certainly is the voucher. <on.business enterprises have also recogni'ed the importance of advertising. he attempt by army recruitment is bases on a he health substantial advertising campaign, stressing the advantages of a military career.

department populari'es family planning through advertising 0abour organi'ations have also used advertising to make their viewpoints known to the public at large. Advertising assumes real economic importance too. Advertising strategies that increase the number of units sold stimulate economies in the production process. he production cost per unit of output is lowered. It in turn leads to lower prices. 0ower consumer prices then allow these products to become available to more people. %imilarly, the price of newspapers, professional sports, radio and 9 programmes, and the like might be prohibitive without advertising. In short, advertising pays for many of the en#oyable

),

entertainment and educational aspects of contemporary life. Advertising has become an important factor in the campaigns to achieve such societal.oriented ob#ectives such as the discontinuance of smoking, family planning, physical fitness, and the elimination of drug abuse. hough in India, advertising was accepted as a potent and recogni'ed means of promotion only *4 years ago, its growing productive capacity and output necessitates the finding of consumers and advertising plays an important role in this process. Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection. In India, advertising as a profession is in its infancy. (ecause of this fact, there is a tremendous scope for development so that it may be productively used for the benefit of producers, traders, consumers, and the countrys economy.

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C/ASSIFICATION AND TY0ES OF ADVERTISING 12 0r&d#!t 3 Re"ated Advertisin$ A2 0i&neerin$ Advertisin$ B2 C&m,etitive Advertisin$ C2 Retentive Advertisin$ 42 0#*"i! Servi!e Advertisin$ 52 F#n!ti&na" C"assi%i!ati&n A2 Advertisin$ Based &n Demand In%"#en!e /eve"2 A2 0rimar- Demand 6Stim#"ati&n7 B2 Se"e!tive Demand 6Stim#"ati&n7 B2 Instit#ti&na" Advertisin$ C2 0r&d#!t Advertisin$ A2 In%&rmative 0r&d#!t Advertisin$ (. 0ers#asive 0r&d#!t Advertisin$ C2 Reminder8Oriented 0r&d#!t Advertisin$ 92 Advertisin$ *ased &n 0r&d#!t /i%e C-!"e A2 C&ns#mer Advertisin$ B2 Ind#stria" Advertisin$ :2 Trade Advertisin$ A2 Retai" Advertisin$ B2 Wh&"esa"e Advertisin$ ;2 Advertisin$ Based &n Area &% &,erati&n A2 Nati&na" advertisin$
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B2 /&!a" advertisin$ C2 Re$i&na" advertisin$ <2 Advertisin$ A!!&rdin$ t& Medi#m Uti"i=ed 12 0r&d#!t 3 Re"ated Advertisin$
It is concerned with conveying information about and selling a product or service. /roduct advertising is of three types, vi'., A. /ioneering Advertising (. -ompetitive Advertising -. Retentive Advertising

A2 0i&neerin$ Advertisin$F
his type of advertising is used in the introductory stages in the life cycle of a product. It is concerned with developing a DprimaryE demand. It conveys information about, and selling a product category rather than a specific brand. 6or e!ample, the initial advertisement for black I and I white television and color television. %uch advertisements appeal to the consumers emotions and rational motives.

B2 C&m,etitive Advertisin$F
It is useful when the product has reached the market.growth and especially the market. maturity stage. It stimulates DselectiveE demand. It seeks to sell a specific brand rather than a general product category. It is of two typesF A. $irect ypeF It seeks to stimulate immediate buying action. (. Indirect ypeF It attempts to pinpoint the virtues of the product in the e!pectation that the consumers action will be affected by it when he is ready to buy. E(am,"e) Airline advertising. Air India attempts to bid for the consumers patronage either immediately . direct action. in which case, it provides prices, time tables and phone numbers on which the customer may call for reservations; or eventually I indirect action I when it suggests that you mention Air Indias name when talking to your travel agent.

C2 Retentive Advertisin$)
)+

his may be useful when the product has achieved a favourable status in the market I that is, maturity or declining stage. 1enerally in such times, the advertiser wants to keep his products name before the public. A much softer selling approach is used, or only the name may be mentioned in DreminderE type advertising.

42 0#*"i! Servi!e Advertisin$

his is directed at the social welfare of a community or a nation. he effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of the sponsoring organi'ation. Advertisements on not mi!ing drinking and driving are a good e!ample of public service advertising. In this type of advertising, the ob#ective is to put across a message intended to change attitudes or behaviour and benefit the public at large.

52 F#n!ti&na" C"assi%i!ati&n
Advertising may be classified according to the functions which it is intended to fulfil. GiH Advertising may be used to stimulate either the primary demand or the selective demand. GiiH It may promote either the brand or the firm selling that brand. GiiiH It may try to cause indirect action or direct action.

i2 Advertisin$ Based &n Demand In%"#en!e /eve"2 A2 0rimar- Demand Stim#"ati&n

/rimary 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, and not the brand of that product. %ome advertise to stimulate primary demand. &hen a product is new, primary demand stimulation is appropriate. At this time, the marketer must inform consumers of the e!istence of the new item and convince them of the benefits flowing from its use. &hen primary demand has been stimulated and competitors have entered the market, the advertising strategy may be to stimulate the selective demand.

B2 Se"e!tive Demand Stim#"ati&n

his demand is for a particular brand such as -harminar cigarettes, %urf detergent powder, or 9imal fabrics. o establish a differential advantage and to acBuire an acceptable sort of market, selective demand advertising is attempted. It is not to stimulate the demand for the )3

product or service.

he advertiser attempts to differentiate his brand and to increase the total

amount of consumption of that product. -ompetitive advertising stimulates selective demand. It may be of either the direct or the indirect type.

ii2 Instit#ti&na" Advertisin$

Institutional Advertising may be formative, persuasive or reminder oriented in character. Institutional advertising is used e!tensively during periods of product shortages in order to keep the name of the company before the public. It aims at building for a firm a /ositive public image in the eyes of shareholders, employees, suppliers, legislators, or the general public. companies whose products are well known. A? his sells only the name and prestige of the company. his type of advertising is used freBuently by large or $-?, for e!ample, does considerable institutional advertising of its name, emphasi'ing the Buality and research behind its products. Institutional advertisements are at consumers or focus them upon other groups, such as voters, government officials, suppliers, financial institutions, etc. If it is effective, the target groups will respond with goodwill towards, and confidence in the sponsor. It is also a useful method or introducing sales persons and new product to consumers. It does not attempt to sell a particular product; it benefits the organi'ation as a whole. It notifies the consumers that the company is a responsible business entity and is patriotic; that its management takes ecologically responsible action, is an affair. motive action employer, supports the socialistic pattern of society or provides employment opportunities in the community. &hen Indian "il advertisements describe the companys general activities, such as public service work, 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. A? once told the story of the small.scale industries supplying it with component parts, thus indicating how it aided the development of ancillary industries.

iii2 0r&d#!t Advertisin$

?ost advertising is product advertising, designed to promote the sale or reputation of a particular product or service that the organi'ation sells. Indanes -ooking 1as is a case in point. he marketer may use such promotion to generate e!posure attention, comprehension, attitude

)4

change or action for an offering. It deals with the non.personal selling of a particular good or service. It is of three types as followsF. A. Informative /roduct Advertising (. /ersuasive /roduct Advertising -. Reminder."riented /roduct Advertising

A2 In%&rmative 0r&d#!t Advertisin$F

his form of advertising tends to characteri'e the promotion of any new type of product to develop an initial demand. It is usually done in the introductory stages of the product life cycle. It was the original approach to advertising.

B2 0ers#asive 0r&d#!t Advertisin$)

/ersuasive product advertising is to develop demand for a particular product or brand. It is a type of promotion used in the growth period and, to some e!tent, in the maturity period of the product life cycle.

C2 Reminder8Oriented 0r&d#!t Advertisin$F

he goal of this type of advertising is to reinforce previous promotional activity by keeping the brand name in front of the public. It is used in the maturity period as well as throughout the declining phase of the product life cycle.

92 Advertisin$ *ased &n 0r&d#!t /i%e C-!"e A2 C&ns#mer Advertisin$ B2 Ind#stria" Advertisin$ A2 C&ns#mer Advertisin$
?ost of the consumer goods producers engage in consumer product advertising. ?arketers of pharmaceuticals, cosmetics, scooters, detergents and soaps, cigarettes and alcoholic beverages are e!amples. (aring a few, all these products are all package goods that the consumer will often buy during the year. here is a heavy competition among the advertisers to establish an advantage for their particular brand.

B2 Ind#stria" Advertisin$
):

Industrial e!ecutives have little confidence in advertising. efforts.

hey rely on this form of

promotion merely out of fear that their competitors may benefit if they stop their advertising he task of the industrial advertiser is complicated by the multiple buying influence characteristics like, the derived demand, etc. he ob#ectives vary according to the firm and the situation. hey areF o inform, o bring in orders, o induce inBuiries, o get the advertisers name on the buyers list of sources, o provide support for the salesman, o reduce selling costs, o help get items in the news column of a publication, o establish recognition for the firm or its product, o motivate distributors, o recognition for the firm or its products, o motivate distributors, to create or change a companys image, o create or change a buyers attitude, and he basic appeals tend to increase the rupee profits of the buyer or help in achieving his non.monetary ob#ectives. rade #ournals are the media most generally used followed by catalogues, direct mail communication, e!hibits, and general management publications. Advertising agencies are much less useful in industrial advertising.

:2 Trade Advertisin$ A2 Retai" Advertisin$ B2 Wh&"esa"e Advertisin$ A2 Retai" Advertisin$

his may be defined as Dcovering all advertising by the stores that sell goods directly to the consuming public. It includes, also advertising by establishments that sell services to the )5

public, such as beauty shops, petrol pumps and banks.E Advertising agencies are rarely used. he store personnel are usually given this responsibility as an added task to be performed, together with their normal functions. he result is that advertising is often relegated to a secondary position in a retail store. "ne aspect of retail advertising is co.operative advertising. It refers to advertising costs between retailers and manufacturers. 6rom the retailers point of view, co. operative advertising permits a store to secure additional advertising that would not otherwise have been available.

B2 Wh&"esa"e Advertisin$
&holesalers are, generally, not advertising minded, either for themselves or for their suppliers. hey would benefit from adopting some of the image.making techniBues used by retailers I the need for developing an overall promotional strategy. hey also need to make a greater use of supplier promotion materials and programs in a way advantageous to them.

;2 Advertisin$ *ased &n Area &% O,erati&n

It is classified as followF A. <ational Advertising (. Regional Advertising -. 0ocal Advertising

A2 Nati&na" advertisin$
It is practiced by many firms in our country. It encourages the consumer to buy their product wherever they are sold. ?ost national advertisements concentrate on the overall image and desirability of the product. he famous national advertisers areF Aindustan 0evers $-? I 2ay Engineering I%-"

B2 Re$i&na" advertisin$

)8

It is geographical alternative for organi'ations. 6or e!ample, Amrit 9anaspati based in Ra#pura claims to be the leading hydrogenated oil producer in the /un#ab. (ut, until recently, it mainly confined itself to one of the vegetable oil brands distribution to ?alihabad district Gin 7./. near 0ucknowH.

C2 /&!a" advertisin$
It is generally done by retailers rather than manufacturers. hese advertisements save the customer time and money by passing along specific information about products, prices, location, and so on. Retailer advertisements usually provide specific goods sales during weekends in various sectors.

<2 Advertisin$ A!!&rdin$ t& Medi#m

he most common classification of advertising is by the medium used. 6or e!ampleF 9, radio, maga'ine, outdoor, business periodical, newspaper and direct mail advertising. classification is so common in use that it is mentioned here only for the sake of completeness. his

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Meas#rin$ Advertisin$ E%%e!tiveness

All advertising efforts are directed mainly towards the achievement of ma!imum profit. business,

marketing and advertising ob#ectives i.e., to increase the sales turnover and thus to market the he advertiser spends lakhs of rupees in to this advertising activity. In the background of all these efforts, is an attempt to attract the customer towards the product through advertising. As soon as the advertising campaign is over, a need is generally arisen to measure the effectiveness of the campaign. &hether, it has achieved the desired results i.e. desired sales profitability or results in terms the change in customer behaviour in favour of the companys product which will naturally, affect the future sale of the product. In order to measure the effectiveness of advertising copy, two types of tests pre tests and post tests. can be undertaken. /re tests are generally conducted in the beginning of the creation process or at the end of creation process or production stage. here are several pre and post tests techniBues to measure the effectiveness of the advertising copy. he effectiveness of advertising in a particular media may also be measured in any of the following ways I GaH (y giving different addresses to different media, GbH $ifferent newspapers may be selected for advertisements of different departments, GcH -oupon blank etc. ?ay be provided with the advertisement or GdH EnBuiry from consumers should mention the name of the source of information. he techniBue is known as keying the advertising. hus in measuring the effectiveness of advertising we include measuring of the effectiveness of advertising campaign, advertising copy and the effectiveness of individual media. his chapter deals these three problems.

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Im,&rtan!e &% meas#rin$ the E%%e!tiveness &% Advertisin$ 617 It a!ts as a Sa%et- meas#re
esting effectiveness of advertising helps in finding out ineffective advertisement and advertising campaigns. It facilitates timely ad#ustments in advertising to make advertising consumer oriented and result oriented. hus waste of money in faulty advertising can be avoided.

647 0r&vides %eed*a!. %&r remedia" meas#res

esting effectiveness of advertising provides useful information to the advertisers to take remedial steps against ineffective advertisements.

657 Av&ids ,&ssi*"e %ai"#re

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.

697 T& +#sti%- the Investment in Advertisin$

he e!penditure on advertisement is considered to be an investment. he investment in advertising is a marketing investment and its ob#ectives should be spelt out clearly indicating the results e!pected from the campaign. he rate and si'e of return should be determined in advance. If the e!pected rate of return is achieved in terms of additional profits, the advertisement can be considered as effective one.

6:7 T& .n&' the !&mm#ni!ati&n E%%e!t

he effectiveness of the advertisement can be measured in terms of their communication effects on the target consumers or audience. he main purpose of advertising is communicated the general public, and e!isting and prospective consumers, various information about the product and the company. It is therefore desirable to seek post measurements of advertising in

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order to determine whether advertisement have been seen or heard or in other words whether they have communicated the theme, message or appeal of the advertising.

6;7 C&m,are t'& mar.ets

7nder this procedure, advertising is published in test markets and results are contrasted with other. ?arkets I so called control markets I which have had the regular advertising program. he measurements made to determine results may be measurements of change in sales, change in consumer attitudes, changes in dealer display and so on depending upon the ob#ectives sought by the advertiser.

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. ?ost 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. here may be two types measures GiH GiiH $irect measuresF and Indirect measuresF.

617 Dire!t Meas#res &% Advertisin$ E%%e!tiveness

7nder direct measures, a 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. he following are some of the methods that are generally used in measuring that advertising effects.

6a7 Hist&ri!a" Sa"es Meth&d

%ome insights into the effectiveness of past advertising may be obtained by measuring the relationship between the advertising e!penditure and the total sales of the product. A multiple regression analysis of advertising e!penditure and sales over several time periods may be calculated. It would show how the changes in advertising e!penditure have corresponding changes in sales volume. his techniBue estimates the contribution that advertising has made to e!plaining in a co relational manner rather than a casual sales, the variation in sales over the time periods covered in the study

6*7 E(,erimenta" C&ntr&"

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he other measure of advertising effectiveness is the method of e!perimental control where a casual relationship between advertising and sales is established. his method is Buite e!pensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. ?oreover this can be done as a pre.test to aid advertising in choosing between alternative creative designs. ?edia schedules e!penditure levels or some combination of these advertising decision areas. "ne e!perimental approach to measuring the sales effectiveness of advertising is test marketing.

6i7 Be%&re8a%ter 'ith C&ntr&" Gr&#, Desi$n

his classic design uses several test and control cities in this design two types of cities are selected. -ities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities. 6irst of all, the normal sales level is calculated for both type of cities prior to advertising campaign, and then the advertising campaign is presented to the test cities and not the central cities. he effect of advertising campaign, can then, be measured by subtracting the amount of post campaign figure of sale from the pre campaign sale figures in test cities

6ii7 M#"tivaria*"e E(,erimenta" Desi$ns

&hile the e!perimental design discussed above yields a reasonably accurate estimate of the effects of the advertising on sales, it is not successful in e!plaining the success or failure of the campaign itself. ?ultivariable designs /roduce these e!planations and are, therefore used by some very large firm because of their diagnostic value. he power of this multivariable factorial design is e!plained by 1.A.(rown, former 6ords $irector of ?arketing Research. 6or any single medium, eight possible geographic areas have been e!posed and eight have not been e!posed. hus, in this e!perimental 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.

647 Indire!t Meas#res

As it is very difficult to measure the direct effect of advertising on companys profits or sales, most firms rely heavily on indirect measures. hese 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. $espite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results, there is no other alternative but to use indirect measures. he most commonly used measures are I

6i7 E(,&s#re t& Advertisement

In order to be effective, the advertisement must gain e!posure. he management is concerned about the number of target audiences who see or hear the organi'ation message set in the advertisement. &ithout e!posure, advertisement is bound to failure. ?arketers or advertisers may obtain an idea of e!posure generated by the medium by e!amining its circulation or audience data which reveal the number of copies of the maga'ine, newspaper or #ournal sold the number of persons passing the billboards or riding in transit facilities, or the number of persons living in the televiewing or radio listening area, and the number of persons switching on their .9. and radio sets at various points of time. his number can be estimated by interviewing the numbers of the audience for different media.

6ii7 Attenti&n &r Re!a"" &% Advertisin$ Messa$e C&ntent

his is one of the widely used measures of advertising results. 7nder this measure, a recall of the message content among a specified group or groups or prospective customers is measured within *3 hours of the e!posure of the advertisement. Attention value is the chief Buality of the advertising copy the advertisements cannot be said to be effective unless they attract the attention of the target consumers. here are two methods for evaluating the attention getting value of the advertisements. "ne is pre.test and the other is post.test. In a pre.test evaluation, the consumers are asked to indicate the e!tent to which they recognise or recall the advertisement, they have already seen. his test is conducted in the laboratory setting. Aere consumers read, hear or listen to the advertisement and then researchers ask Buestion regarding the advertisement #ust to test the recall and then evaluate it. In post.test method, the consumers are asked Buestions about the indication of recognition or recall after the advertisement has been run. hese measures assume that customers can recall or recogni'e what they have viewed or listened to. 9arious mechanical devices are being used in the western countries which provide indices of attention such as eye.camera etc.

6iii7 Brand A'areness

*3

he marketers who rely heavily on advertising often appraise its effectiveness by measuring the customers awareness about the particular product or brand. he assumption of this type of measure is that there is a direct relationship between the advertisements and the awareness. his type of measure is also sub#ect to the same criticisms as is applicable to direct measures of effectiveness Gsales measures because awareness is also not the direct result of the advertisements. It is also affected by many other factors. (ut, for new products, changes in awareness can often be attributed to the influence of advertising.

6iv7 C&m,rehensi&n
-onsumers generally use advertisements as a means of obtaining information about the product, brand or the manufacturer. comprehension are available I "ne is recall tests I an indicator of comprehension because it is evident that consumers recall what they comprehend. Another measure of the variable is to ask Buestions about sub#ects how much they have comprehended a message they have recently heard or seen. "ne may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. "ne may ask typical target consumers from time to time such Buestions like Kwhat did you think of our new commercialL and K$id it get the message acrossL he answers of these Buestions will provide sufficient insight into advertising decision making. hey cannot be informed unless they comprehend the message Ggrasp the message mentally and understand it fullyH. 9arious tests for valuating

6v7 Attit#de Chan$e

%ince advertising is considered to be one way of influencing the state of the mind of the audience towards a product, service or organisation, the results are very often measured in terms of attitudes among groups e!posed to advertising communication. %everal measures are used ranging from asking the Buestions about willingness to buy the likelihood of buying to the measurement of the e!tent to which specific attributes Gsuch as modern or newH are associated with a product.

6vi7 A!ti&n

*4

"ne ob#ective of advertisement may be assumed to be to stimulate action or behavior. he action or intention to take an action may be measured on the intention to buy measuring instrument. 7nder this type of measure, consumers are asked to respond why they are interested in purchasing the product or brand. "ne type of action that advertisers attempt to induce is buying behavior. he assumption is that if an increase in sales follows a decrease in advertising e!penditure, the change in sales levels are good indicators of the effectiveness of advertising. 0ogic suggests that measurement of sales is preferable to other measurements. hus, these above measures Gdirect or indirectH are used to evaluate the effectiveness of advertisements. 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.

COMMUNICATION EFFECTS OF ADVERTISEMENT

he management should attempt to evaluate the effectiveness of the advertising campaign if the firms advertising goals are to be achieved and the ad effectiveness is to be increased. (y regular evaluation of the effectiveness, 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. 6or this purpose, it is very necessary to know how advertising affects the buyers behaviors. (ut this is very difficult task because measurements are imperfect and imprecise. he effectiveness of advertising can be measured by the e!tent, it to which it achieves the ob#ectives set for it. If it succeeds in attaining the ob#ectives. Advertising can be said to be effective otherwise it will be a waste of money and time. In this sense, advertising can be recogni'ed as a business activity like other activities. In a very real sense the integrity of promotional activities rests on how well those activities work. 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 ob#ectives for which the results can be measured. Any social institution upon which a significant portion of our total productive efforts is e!panded should be able to point to its specific accomplishment. Indeed, it is a source of discomfort that specific results of advertising activities have not always been sub#ect to precise measurement. (oth practitioners and critics

*:

feel that promotional activities should only be accepted as socio I economic I institution with full right and privileges Dwhen the means e!ist to prove that advertising super are productive rupees It is undoubtedly a source of embarrassment that we cannot e!actly measure the effectiveness of advertising in definitive terms. he e!act result of advertisement e!penditure is very difficult to predict because.. GaH he reaction of consumer I buyers to the advertising efforts cannot be known in advance. GbH he reaction of competitors in the field cannot be guessed in anticipation and GcH he une!pected events Gsuch as change in social and economic environment and the government policies etc.H cannot be accurately anticipated. %uch events may influence the results of the advertising efforts. If we take a hypothetical case of a retailer who contract to spent Rs.4,,, on advertisement with a local newspaper for a special sales even. he advertisement is seen and the response is much greater than it is anticipated. &hat caused the success of saleL hey message theme colors etc., of the advertisement or the low prices Buoted during the sale of the superior Buality of the product or absence of competition in the market on the day or the favorable. &eather conditions or the goodwill of the firm etc. he overwhelming success of the sale is the #oint result of all the above variables and it is Buite impossible to isolate the role of any one variable. It is so because the cause and effect I relationship cannot be established in advance when a multitude of variable impinge upon a particular event. 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. (ut it does not mean that that we cannot measure the effects of particulars advertising effort. he advertising e!ecutives are much concerned about the assessment of the effectiveness of the advertising efforts. 6or this purpose, the management needs answers to such Buestions asF was the advertising campaign really successful in attaining the advertising goalsL &ere our .9. commercials as good as those of our competitorsL &ill the print advertisement, which we have designed, make consumers aware of our new productL o get answers of these Buestions, various tests of effectiveness G/re. tests and post I tests H are deeded to determine whether proposed advertisement should be used, and if they are not satisfactory how they might be improved, and whether on going campaign should be stopped continued or changed. /re. tests are conducted before e!posing target consumers to the advertisements and post tests after consumers have been e!posed to them. *5

As indicated earlier, the advertisers are interested in knowing what they are getting for their advertising rupees, %o they test the proposed advertisement with pre test and measure the actual results with a post test. In the past, protesting was done by the advertising agencies but now the advertisers have been taking an increasingly active role in protesting process. /re test may be done either before an advertisement has been designed or e!ecuted after it is ready for public distribution or at both points. $uring protesting there is often research on three vital BuestionsF. GiH $o consumers feel that the advertisement communicates something desirable about the productL GiiH $oes the message have an e!clusive appeal that differentiates the product from that of the competitorsL GiiiH Is the advertisement believableL 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 reasonsF. GiH here is a need produce more effective advertising by retaining the good and removing the bad. GiiH he advertising e!ecutives can prove to the satisfaction of the management that a higher advertising budget will benefit the firm. GiiiH here is a need for measuring the results to determine the level of e!penditure that is most promising. ?ost research focuses on the communication effect rather than sales effect because it is a long run process. In the short run, however sales may be slight and important but in the long run its effects ob brands and companies may be of great importance. Indirectly it will affect the sales in the long run, by changing the consumer awareness and attitude. he advertisers are therefore, concerned with their impact on consumer awareness and attitude. he communication effect on sales may be presented in the following figureF. -ommunication Effect on %ales Awareness Attitude *8

rial %atisfaction /urchases or repurchase Awareness builds a favorable or at least a curious attitude towards the product which leads to e!perimentation. If consumer is satisfied with the trial he may decide to purchase the product. here are many critical and unresolved issues in determining how to test the communication effects of advertising. Among these areF. G)H E!posure -onditions I %hould advertising be tested under realistic conditions or under more controlled laboratory conditionsL G*H E!ecution I /rotesting a finished advertisement as an e!pensive and time consuming. $oes protesting a preliminary e!ecution produce accurate and useful dataL G+H Muality 9s. Muantity $ata. Muantitative data are the easiest and the almost precise measurement. (ut Bualitative data collected through interviews may provide information that short answer Buestions never can. ?any types of advertising tests are conducted Gdifferent methods of pre tests and post I test are given in Buestion numberH In .9. commercials are tested by inviting a group of people to the studio to view a program. he audience is then surveyed about the commercials. /rint advertisements are tested through dummy maga'ine portfolio tests.

C&m,#n!ti&n E%%e!tiveness Vs Sa"es E%%e!tiveness

It is easier to assess the communication effect of advertising than the sales effect. ?any firms try to measure the effectiveness of advertising in terms of sales results but this practice is always misleading. %ince, the effect is the result of so many variables, a distinct effect of advertising on sales cannot be correctly measured, Although there may be some e!ceptions. 6or e!ample direct mail advertising can effectively be measured by the inBuiries received. (ut in

*;

many situations the e!act relationship between advertising activity and sales cannot be established satisfactorily. &e 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 e!penditure on advertising is done. It is so because advertising is no the only variable that effect the sales. hus, we may conduct that sales effect of advertising is difficult to measure because a number of variables affect the Buantum of tales and the contribution of advertisement cannot be measured separately unless all other variables are presumed to be constant. his situation is Buite hypothetical and almost none!istent. Added to this is the fact that advertisement itself is made of a variety of variables such as media, messages, colours, page or time of the day, locations, the si'e of the headline and the appeals used. hus even if the advertising variable is separated this would still not answer the Buestion about the effectiveness of the individual components of the advertising campaign. %o advertisers try to measure the communication effect of the advertising. S#ita*i"itIn small business firms where the marketing research resources are limited advertising managers may decide on less e!pensive and less relevant measures. he big business house, which has more access to research, may decide on the more relevant and e!pensive measures.

+,

Fa!t&rs A%%e!tin$ Advertisin$ he final e!ternal factor in the planning framework concerns environmental factor social, legal, and global. 0aw forbids deceptive advertising. "ne solution is to create brand advertising that is vague and contains little specific information. Aowever, such an approach can result not only in ineffective advertising; by it can lessen the social value of advertising by reducing the amount for useful information that it provides to society. hus, and advertiser who attempts to provide specific, relevant information must be well aware of advertising regulation. Even more difficult consideration for people involved in the advertising effort is broad social and economic issues. Another concern is that advertising, especially when it is more irritating than entertaining, is an intrusion into an already e!cessively polluted environment. A whole set of rules is emerging to cover advertising directed at children, and advertising for products such as alcohol and cigarettes, and the use of environmental and health claims in advertising. hus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other.

+)

IM0ACT OF ADVERTISEMENT Advertising has an important effect on a countrys economy, society, culture, and political system. his is especially true in the 7nited %tates where the advertising industry plays such a prominent role. 12 E!&n&mi! Im,a!t ?ost economists believe that advertising has a positive impact on the economy because it stimulates demand for products and services, strengthening the economy by promoting the sale of goods and services. ?anufacturers know that advertising can help sell a new product Buickly, enabling them to recoup the costs of developing new products. (y stimulating the development of new products, advertising helps increase competition. ?any economists believe that increased competition leads to lower prices, thereby benefiting consumers and the economy as a whole. hese economists also argue that by interesting consumers in purchasing goods, advertising enables manufacturers and others to sell their products in larger Buantities. he increased volume of sales enables companies to produce individual units at lower costs and therefore, sell them at a lower price. Advertising thus benefits consumers by helping lower prices.

+*

"ther economists, however, believe that advertising is wasteful. hey 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. According to this view, advertising simply moves sales from one company to another, rather than increasing sales overall and thereby benefiting the economy as a whole.

42 S&!ia" Im,a!t Advertising can have wide.ranging repercussions on a society. %ome critics suggest that advertising promotes a materialistic way of life by leading people to believe that happiness is achieved by purchasing products. hey argue that advertising creates a consumer culture in which buying e!citing new products becomes the foundation of the society@s values, pleasures, and goals. "ther critics e!press concern over the way advertising has affected women and racial minority groups. Ads in the );4,s depicted women primarily as decoration or se! ob#ects. Although millions of women worked outside the home in the );:,s, ads continued to focus on their role as homemakers. &hether owing to the feminist movement or to women@s increasing economic power, after the );:,s it became more common to see women depicted in professional roles. Aowever, many ads today still emphasi'e a womans se!uality. he way advertising has depicted racial minorities has also been harmful. /rior to );:,, African Americans were usually shown in a subordinate position. $ue to the influence of the civil rights movement, however, advertisers by the );8,s had begun to depict African Americans as students, professionals, or business people. Aowever, many ++

African American organi'ations and community activists continue to ob#ect 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. As ads have begun to more fully reflect the lives of women and African Americans in the 7nited %tates, increasing attention has been paid to the way in which advertising shows other ethnic groups, including Aispanics, Asians, <ative Americans, and Eastern Europeans. here is still considerable debate over how advertising influences public perception of gender and of particular ethnic groups. Advertising has a ma#or social impact by helping sustain mass communications media and making them relatively ine!pensive, if not free, to the public. <ewspapers, maga'ines, radio, and broadcast television all receive their primary income from advertising. &ithout advertising, many of these forms of mass communication might not e!ist to the e!tent that they do today, or they might be considerably more e!pensive, offer less variety, or even be sub#ect to government control through subsidies. In.depth news programs, a diversity of maga'ines, and free entertainment might no longer be widely available. At the same time, however, some critics warn that because advertising plays such a ma#or economic role, it may e!ercise undue influence on the news media and thereby curtail the free flow of information in a free society. Reporters and editors, for e!ample, may be hesitant to develop a news story that critici'es a ma#or advertiser. As a result, society might not be alerted to harmful or potentially harmful conduct by the advertiser. ?ost members of the news media deny that pressure from an advertiser prevents them from pursuing news stories involving that advertiser, but some members of the media acknowledge that they might not be inclined to investigate an issue aggressively if it threatened to offend a ma#or advertiser. Advertisers may affect media programming in other ways, too, critics charge. 6or e!ample, companies that sponsor 9 programs prefer relatively wholesome, his preference noncontroversial programming to avoid offending a mass audience. +3

causes 9 networks to emphasi'e this type of programming. he 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. (ecause advertisers are especially interested in attracting the )8 to +3 year olds who account for most consumer spending, television shows are often developed with this audience in mind. If the ratings show that a program is not attracting large audiences, particularly among )8 to +3 year olds, advertisers often withdraw support, which causes a program to be canceled. As a result, shows that are more likely to interest and to be of value to older audiences are not produced. he impact of television on young children has received much attention. Research suggests that children see television advertising as #ust another form of programming and react uncritically to its messages, which makes them especially vulnerable to advertising. here is also concern about the way in which adolescent girls respond to advertising that features beautiful, thin models. Research indicates that many adolescent girls are unduly influenced by this standard of beauty, become dissatisfied with their own bodies, and may develop eating disorders in pursuit of a thin figure. <ew research suggests that adolescent boys are also being influenced by advertising images of bulked.up, buffed bodies. As a result, many become dissatisfied with their own body image, devote large amounts of time to weightlifting, and may even take drugs that have harmful side effects in order to develop more muscle. hose over the age of :, are thought to be less influenced by advertising, but some elderly people no longer process messages as easily as younger people, making them more susceptible to Buestionable advertising claims. 52 0&"iti!a" Im,a!t Advertising is now a ma#or component of political campaigns and therefore has a big influence on the democratic process itself. In );;8 more than N3:5 million was spent on election campaigns in the 7nited %tates. hat amount of spending placed political advertising in the ranks of the countrys +, leading advertisers that year. /olitical advertising is a relatively new development in 7.%. history. Advertising professionals did

+4

not become involved in electoral campaigns until the );4,s. (ut since then, political advertising has grown in sophistication and comple!ity. /olitical advertising enables candidates to convey their positions on important issues and to acBuaint voters with their accomplishments and personalities. elevision advertising is especially effective for candidates running for national or statewide office because it can reach so many people at once. -andidates can also use advertising to respond effectively to the charges of their opponents. 9arious campaign finance reform proposals, however, have tried to address the impact of television advertising on political campaigning. (ecause of the high cost of television ads, the costs of political campaigns have skyrocketed, making it necessary for candidates to raise money continually, even after they have been elected to office. -ritics say this factor #eopardi'es the democratic process by making elected officials beholden to wealthy contributors and by making it more likely that only the wealthy will run for office. %ome reform proposals have called for free airtime, but television and radio networks have resisted this idea. -ritics of political advertising also charge that the +,.second television spot has become more important to a political campaign than a thorough discussion of the issues. As a result, voters are bombarded with image advertising rather than being acBuainted with the candidates positions. hey contend that this practice is harmful to good government. Issues are simplified, and candidates are Dpackaged and soldE much like a consumer product, thereby distorting the political process. 92 C#"t#ra" Im,a!t Advertising can affect cultural values. %ome advertising messages, for e!ample, encourage aggressive individualism, which may clash with the traditional cultural values of a country where the collective or group is emphasi'ed over the individual or humility or modesty is preferred to aggressiveness. &ith the globali'ation of the world economy, multinational corporations often use the same advertising to sell to consumers around the world. %ome critics argue that advertising messages are thus helping to break down +:

distinct cultural differences and traditional values, causing the world to become increasingly homogeneous. ?any advertising campaigns, however, have universal appeal, overriding cultural differences, or they contribute to culture in a positive way. Aumor in advertising has made many ad campaigns widely popular, in some cases achieving the status of folklore or taking on new life in another arena. 6or e!ample, a popular ad campaign for a fast. food chain with the slogan D&heres the beefLE became part of the );8, $emocratic presidential primary campaign between 1ary Aart and &alter ?ondale. he ad ridiculed a competitor by depicting a small hamburger patty dwarfed by a huge bun. $uring a primary debate one of the candidates used the ad slogan to suggest that his opponents campaign lacked substance.

RESEARCH METHODO/OGY Resear!h Desi$n Data S&#r!e Resear!h Instr#ment Sam,"e desi$n Sam,"e si=e Sam,"e "&!ati&n F F F F F F F $escriptive /rimary data %econdary data Muestionnaire %imple random design ),, $urg

F (hilai Sam,"e e"ement F F F F %tudents (usiness class Aouse hold %ervice class

+5

SAM0/ING UNIT
%ampling 7nit is the total number of samples differed in different locality. S"2 N&2 ). *. +. 3. C"asses %tudents (usiness class Aousehold %ervice class T&ta" N&2 &% C"asses *4 *4 *4 *4 1>>

$ata have been collected through the survey method while surveys have been conducted in one cityF iH iiH $urg (hilai

he data collected was both from the primary and secondary source. he primary data was collected through Buestionnaires and was collected personally. he secondary data was collected through books, maga'ines, company website and other websites. All the area had segmented according the population of this area. I have considered ),, as sample si'e.

+8

HY0OTHESIS TESTING
H>) The di%%eren!e am&n$ the ,arameter 'hi!h in%"#en!es the ,er!e,ti&n &% !&ns#mers t&'ards the ,r&d#!t is si$ni%i!ant2 H1) The di%%eren!e am&n$ the ,arameter 'hi!h in%"#en!es the ,er!e,ti&n &% !&ns#mer t&'ards the ,r&d#!t is insi$ni%i!ant2

DETERMINANTS STILL IMAGE MOVING IMAGE ENTERTAINMENT INFORMATION LANGUAGE CELEBRITY INTENSITY SOCIAL ISSUE NATIONAL ADS LOCAL ADS

STUDENTS 3 22 10 22 5 19 16 5 23 2

BUSINESS CLASS 8 17 5 22 19 14 12 17 23 2

SERVICE CLASS 8 17 4 24 18 19 11 18 16 9

HOUSEHOLD 9 16 7 19 21 17 13 19 14 11

+;

S&#r!e &% variati&n C&"#mn R&'s T&ta"

S#m &% Sam,"es *).8 )343.55 )35:.45

De$ree &% %reed&m + +: +;

Mean S?#are 5.*; 3,.3)

F8Rati& ,.)5;

:@ F8/imit 6%r&m F8ta*"e7 6G+,+:H O *.8+85

F18TAB/E VA/UE at 6>2>:7 "eve" &% si$ni%i!an!e &% 65A5;7 B 42C5C< Aere in this case 6).statistics P 6).table value. Aence the null hypothesis is accepted.

Inter,retati&n)8 %ince when the statistical value is less than table value then the null hypothesis is accepted and hence we can say that the difference among the determinants and parameters is insignificant.

3,

GRA0HICA/ INTER0RETATION

12 Fr&m 'here d& -&# $et in%&rmati&n a*&#t the ne' ,r&d#!t
Ans'ers Te"evisi&n Ne's,a,ers Ma$a=ines Internet 0eers 6Fami"- D Friends7 N&2 &% res,&ndents 3* *: )) : )4

Inter,retati&n)

3)

A large si'e of population is influenced by elevision and <ewspapers.

42 Whi!h %&rm &% advertisement d& -&# "i.e m&re

Ans'ers Sti"" ima$e M&vin$ ima$e N&2 &% res,&ndents *8 5*

Inter,retati&n)
3*

/eople are more affected by advertisement with moving image.

52 F&r -&# advertisement is a s&#r!e &% )

Ans'ers
Information Entertainment N&2 &% res,&ndents :* +8

Inter,retati&n)
3+

?ore number of people consider advertisement as a source of information rather than a source of entertainment.

92 D&es entertainin$ advertisement a%%e!t -&#r &,ini&n a*&#t the ,r&d#!t

Ans'ers >es <o
N&2 &% res,&ndents

*: 53

Inter,retati&n)
33

Entertaining advertisement does not affect the opinion of customer about the product

:2 D&es in%&rmati&n ,r&vided in advertisement a%%e!ts -&#r &,ini&n a*&#t the ,r&d#!t
Ans'ers Yes N& N&2 &% res,&ndents 85 )+

Inter,retati&n)
34

Information provided in the advertisement affect very much on the opinion of consumers about the product.

;2 D&es "an$#a$e #sed in advertisement a%%e!ts -&#r &,ini&n a*&#t the ,r&d#!t
Ans'ers Yes N& N&2 &% res,&ndents ;5 5<

Inter,retati&n)
3:

0anguage used in the advertisement affects a lot on the opinion of consumers about the product.

<2 D&es ,resen!e &% an- !e"e*rit- in the advertisement a%%e!ts -&#r &,ini&n a*&#t the ,r&d#!t
Ans'ers Yes N& N&2 &% res,&ndents :; +)

Inter,retati&n)
35

/resence of any celebrity affects on the opinion of consumers about the product.

C2 D&es intensit- &% the advertisement a%%e!ts -&#r &,ini&n a*&#t the ,r&d#!t
Ans'ers Yes N& N&2 &% res,&ndents 4* 38

38

Inter,retati&n)
he effect of intensity is very powerful on the opinion of consumers about the product.

E2 D&es ,resen!e &% s&!ia" iss#es in the advertisement a%%e!ts -&#r &,ini&n a*&#t the ,r&d#!t
Ans'ers Yes N& N&2 &% res,&ndents 4; 3)

3;

Inter,retati&n)
/resence of social issues in advertisements affects very much on the opinion of consumers about the product.

1>2D& -&# thin. advertisement he",s in in!reasin$ sa"es &% an- ,r&d#!t
Ans'ers Yes N& N&2 &% res,&ndents 85 )+

4,

Inter,retati&n)
Advertisement helps very much in increasing the sales of any product.

112Whi!h t-,e &% advertisement in%"#en!es -&# m&re

Ans'ers Nati&na" advertisement /&!a" advertisement

N&2 &% res,&ndents 5: *3

4)

Inter,retati&n)
<ational advertisements affect peoples opinion more than the local advertisements.

FINDINGS
Advertisements with moving image are more effective than advertisement with still image. Information provided in the advertisement has more influence on consumers perception about the product.

0anguage used in the advertisement also plays important role in increasing effectiveness of an advertisement. Intensity of advertisement affects the perception of consumers towards the product and leads them for its purchase.

%ocial issues included in advertisement affects the perception of high age group people. <ational advertisement has more influence on consumers perception about the product instead of local advertisement. Advertisement increases the sales of any product. 4*

/IMITATIONS he marketing researcher has to face certain difficulties while he carries out the research work. Ae knows the limitation beforehand, uncontrollable and others are controllable. %ome important limitations, which are faced by researchers as followsF .

%ample si'e restricted to ),, only which was very less according total population.

he responses given by respondents were not always accurate because the respondents gave the response according to their understanding.

%urvey is a time consuming process but the time to collect the data for research was very less.

%ometimes the respondents are not willing to fill the the resultant may not be correct.

Buestionnaire and hence

4+

?arketing researchers studies the behavior that is rational. 9ery often, they do not e!press their feeling correctly what they think. In such cases their habitual, practice, preferences cannot be assessed correctly.

CONC/USION
A<"9A reveals that all the determinants are not internally eBual they are significantly different from one another. %imilarly, all the parameters are not internally eBual they are significantly different from one another. In order to measure the effectiveness of advertising, which approach Gcommunication effectiveness or sales effectivenessH, is more suitableL deciding the approach. hey are 12 Re"evan!e &% advertisin$ &*+e!tives &n the &vera"" ,er%&rman!e &*+e!tives) 1enerally 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. 42 Di%%i!#"t- and !&st &% &*tainin$ data needed t& eva"#ate e%%e!tiveness) 1enerally 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. herefore, the advertising manager has to make a balance between these two approaches. wo factors are to be considered in

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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. o 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.

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REFERENCE
B&&.s ). Advertising ?anagement I concepts and cases ?ahendra ?ohan. *. ?arketing ?anagement I /hilip Qotler +. (randing I 1eoffrey Randoll 3. %trategic (rand ?anagement I Qapferer 4. Advertising and %ales /romotion ?anagement I %.0.1upta, 9.9.Ratra :. Advertising and %alesmanship I /.%aravanavel.

Internet
). www.books.google.com *. www.scribd.com +. www.paulbeelen.com 3. www.decisionanalyst.com

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F#esti&nnaire
I am 9ishal Qumar %harma pursuing II %emester of ?aster of (usiness Administration from (.I. . G $urg H. I am doing my research report on D A %tudy on Effect of Advertisement on -onsumersE as a part of my course curriculum. 6or this I reBuire you to please fill this Buestionnaire.

<ameF CCCCCCCCCCCC................................. %e!F AgeF a. (elow *, b. *, to +, c. +, to 3, d. Above 3, "ccupationF a. %tudent R S S R R R R S S S S a. ?ale R S b. 6emale R S

b. (usiness class R

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c. Aouse hold

S S

d. %ervice class R

). 6rom where do you get information about the new productL a. elevision R R R R S S S S S

b. <ewspapers c. ?aga'ines d. Internet

e. /eers GfriendsJfamilyH R

*. &hich form of advertisement do you like moreL a. %till image G?aga'ines J <ewspapersH b. ?oving image G elevision J InternetH +. 6or you advertisement is a source of a. Information b. Entertainment R R S S R R S S

3. $oes an entertaining advertisement influences your opinion about the productL a. >es b. <o R R S S

4. $oes information provided in advertisement affects your opinion about the productL a. >es b. <o R R S S

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:. $oes language used in advertisement affects your opinion about the productL a. >es b. <o R R S S

5. $oes presence of any celebrity in the advertisement affects your opinion about the productL a. >es b. <o R R S S

8. $oes intensity of the advertisement affects your opinion about the productL a. >es b. <o R R S S

;. $oes presence of social issues in the advertisement affects your opinion about the productL a. >es b. <o R R S S

),. $o you think advertisement helps in increasing sales of any productL a. >es b. <o R R S S

)). &hich type of advertisement influences you moreL a. <ational advertisement b. 0ocal advertisement R R S S

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