A

PROJECT REPORT

ON

“ADVERTISEMENTS AND SALES

PROMOTIONS”

In Partial fulfillment of the requirements for the degree of

Master of Business Administration
2008-2010

Of

lovely professional university

SUPERVISED BY:- SUBMITTED BY:-

Rita mam Kamaldeep sharma
Lec in LSB MBA 4th SEM.
LPU Regd ID: 10809696
Sec: RR1810A12

LOVELY PROFESSIONAL UNIVERSITY

JALANDHAR

1
 CERTIFICATE

The project report on “ADVERTISEMENT AND SALES

PROMOTION” being submitted by me in partial fulfillment of the
requirement for the award of the degree of Master of Business
Administration under Lovely Professional University, Jalandhar. No part
of this project has been submitted for any other degree or diploma.

KAMALDEEP SHARMA
MBA 4th SEM
Redg ID:10809696
SEC:RR1810A12

2
 ACKNOWLEDGEMENT

This project has been made possible through the efforts, support and
cooperation of various persons for whom I would like to express my
appreciation and gratitude.
First and foremost, I am highly indebted to my guide, RITA MAM,
Lovely School of Business, lovely Professional University, Jalandhar for
her guidance, invaluable suggestions and encouraging attitude during the
project work.
My academic colleagues and friends deserve my appreciation for
extending me their wholehearted cooperation and support.
Last but not the least, I would like to thank my parents who gave me
moral, emotional and economical support during the course of study
otherwise this project would have remained only an abstract idea.

KAMALDEEP SHARMA

CONTENTS

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SR. NO. TITLE PAGES
CERTIFICATE

ACKNOWLEDGEMENT

CHAPTER 1. INTRODUCTION TO THE TOPIC 6-7

CHAPTER 2. OBJECTIVES OF THE STUDY 9

CHAPTER 3. INSIGHT KNOWLEDGE ABOUT 11-27

ADVERTISEMENTS AND AD AGENCIES

CHAPTER 4. REVIEW OF LITERATURE 29-35

CHAPTER 5. CONCLUSION 37

BIBLIPGRAPHY 39

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 Chapter
*1

INTRODUCTION

ADEVERTISEMENT

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 Advertising is a paid, non-personal communication to various media
by business firms, on-profit organizations and individuals in some way
identified in the ads message and who hope to inform or persuade members
of a particular audience. Certain key words like:
 Paid
 Non-personal
 Media
 Identified
 Persuade

Distinguish advertising from other forms of communication. This

definition functional because it views ads primarily from the stand point of
view of advertisers who presumably have studied the target audience and
defined the effect they hope to achieve.
Thus advertising is only one of the many means of transmitting
messages, advertising is only one element in marketing but it is considered
one of the most important.

Some famous person's viewpoint on

advertisement

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 Sir Winston Churchill, "Advertisement nourishes the consuming
power of men. It creates wants for a better standard of living. It set up
before a man the goal for better home, better clothing and better food
for himself and his family.
 Franklin, D Roosevelt. "1f I were to start my life all over again, I am
inclined to think I would go into the advertising business in preference
to almost any other
 Pope Paul VI, "Advertisements intervenes in nearly all aspects of
economic and cultural life.
 Advertisement aims at drawing attentions to a product it seeks to
create awareness about the existence in the mind of prospective
consumer about the product.

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Chapter
*2

Objectives of the Study

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Objectives of the study are explained in the form of the primary objectives
and secondary objectives.

• Primary Objective
The primary objective of the study is to effectiveness of advertising media.
• Secondary objectives
The different secondary objectives are:-
1. Finding out the appeals, which make the maximum impact on

the purchase of any product.

2. To study the effectiveness of the different appeals in different
media
3. To study of effectiveness of each appeal for separate products
under study and the media to be used.
4. To find out the appeals which possessed the following criteria:
 Creating awareness
 Providing information
 Making the message credible
 Entertainment ad could be used successfully for all the products under
study.

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Chapter
*3

10
Advertisement as a communication tool concentrates on four problems:

© What to say (message content)

© How to say it (message structure)
© How to say it symbolically (message format)
© Who should say it (message source)

Message Content
To get the desired response, advertising as a communication tool
should decide what to say. Various names have been given to this exercise
use of appeals, selection of idea, or a theme, identifying a unique selling
proposition (USP). In practice, it amounts to establishing some kind of
benefits, motivation identification or reason why the audience should think
or do something.
It is worthwhile to mention here that there are three types of appeals
being used in advertising, they are:
 Rational Appeals
These are directed towards the thinking faculty of audience. Examples
of rational motives are high quality, long life, low price, performance, ease
of use, economy in operating expenses etc.
 Emotional Appeals

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 Here the agitated or excited state of rnind prompts us to purchase,
there is no deliberate process involved, emotional appeals are further
classified into two categories.
(i) Negative emotional appeals: These include emotions like fear.
(ii) Positive emotional appeals: These include emotions love,
humor, pride; prestige, joy etc. This study is basically on humorous
advertisements, which happen to fall in this category of emotional appeals.
 Moral Appeals
These are directed towards one's sense of right and wrong. These are
made use of usually in social awareness advertising.

Message Structure
The important aspects of the message structure are:
Drawing conclusions
This is to decide about whether to leave the audience with a message to draw
their own conclusions or give them the conclusions only, the former
approach is less preferable.
Repetition
Helps give a repeated exposure to the audience and thus improve their
retention. This is an important decision to be taken by the advertisers.
In two-sided argument, this is to decide whether the advertiser should
discuss good points of the product only or the bad points of the product only
or the both where as in one-sided arguments it is advisable to put the
strongest point about the product first.

Message Format

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By format, we mean style, organization, plan or type of the ad message.
Message format is the scheme by which the message content and structure
strategy are implemented.

Message Source
Message originating from credible sources are more persuasive, hence the
message had to be delivered through the right source or sender, e.g. a doctor
recommending a medicine etc.

Categories of Advertising
Advertising can be classified into the following categories:

 Product Advertising

Ads providing information directly related to the product are made through
such advertisings. These are further of three types:
(i) Pioneering advertising: Here is an attempt to stimulate the
primary demand for a product category rather than a specific
brand.
(ii) Competitive advertising: Here, selective demand of a specific
prod1.Jct brand is stimulated.
(iii) Retentive advertising: This is for a well-established product,
which requires reminding the consumers of its presence.

 Service Advertising

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Services are activities, benefits or satisfaction offered for sale. They are
intangible, inseparable, variable and perishable. Advertising for services not
only tells people that these kinds of services are available but also attach
quality and creditworthiness with their services.
 Institutional Advertising

Also called corporate advertising as the name suggests, here is the

institutions present their own story to build up an image of itself in the
public.
 Public relation advertising

It is a part of institutional advertising, which is a deliberate, planned and

sustained effort to maintain mutual understanding between the organization
and its public.

 Public service advertising

It is generally done as a part of the social responsibility by the advertising

agencies or business organization.

 Financial advertising

Generally, these are the ads issued to the public inviting them to invest
public issue of shares or debentures or bonds etc of public limited company.

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 HEADLINE

Headline is a word or a phrase, which is catchier than the other elements of

the copy, and carries message below or above it. Captions are not headlines.
It is a headline on the basis of which the readability of the company is
determined. Headline is the most important part of the ad..

SLOGANS

A slogan is a catch sentence or phrase which is easy to remember. It is used

by copy-writers regularly for the sake of establishing it. It creates an
impression on repetition. It gives an identity to the company and its product
slogan is a part of the advertisement copy. It is a concise but effective way
of telling an idea. Many headlines have been sloganised. A slogan is kept in
constant use for at least in campaign. Some ads change the slogan for a new
campaign. Mostly, people know the slogan by heart, slogans are short,
summarized headlines.

Media for advertising

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 The media for advertising is very important. The objective of all advertising
is to inform the public about the right kind of services or ideas at the right
time through the right medium. Hence, the selection of right media is crucial
for the success of advertising. Though equaling factors are the message, the
timing, the place and the target group. The list of various media available to
advertisers for getting the ads according to their target audience is:
 Non-broadcast media: video and cable close circuit television and cinema.
 Broadcast media: Television is one of the most out reaching media
and is very important for all types of ads. The ads that have been
studied in this project are also collected from media only. Earlier it
was available to us only in the form of national network on DD 1 out
with the beginning of satellite TV, we have a range of broadcasting
channels to choose from STAR TV, ESPN, MTV, Zee TV to name a
few.
 Print media: These include-
• Newspapers: daily, Sunday supplements, and weekly
newspapers.
• Magazines: (General interest special interest, trade publications,
institutional publication).
• Direct mail

 Outdoor media
It includes posters, hoardings. r on sign advertisings and laser
projectors.
 Speciality media
T-shirts, caps, buttons, stickers, badges, etc

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 Point of purchase or in shop media
Banners, hangings, stickers, packaging, painted signs.
 Miscellaneous media
Trolleys at international and domestic airport.

Thus, media plays an important role in the advertising today and

certainly it is the access to the different types of media which has taken
place marketers to new heights through increased coverage of more and
more of their prospective consumers who were earlier devoid of any such
information which they are receiving now about the products/services
available around them.
Now, the list is provided here, about the top ten advertising agencies
operating in India. The list has been given to create the awareness among the
readers about the top ad agencies and their gross income equally held by
each agency.

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 TOP TEN AD AGENCIES

1 Hindustan Thompson Associates, Bombay

2 Ammirati Purias Lintas India, Bombay
3 Mudra Communications (DDBN)
4 Ogivly and Mather, Bombay
5 Ulka Advertising (JWT), Bombay
6 Contract Advertising (JWT), Bombay
7 Trikaya Grey, Bombay
8 R.K. Swamy, BBDO Advertising, Madras
9 MAA Group (Bozell), Bangalore
10 Rediffusion- Dentus, Young & Rebicum

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 Analysis of different TV Ads

Here some of the ads collected from different channels have been
analysed. This is one of the very crucial part of the project as it gives
analysis of different types of ads which were collected and were analyzed
describing the type of appeal used and with what objective it was made to
serve the purpose it was made for.

Analysis-1
Product : Whirlpool Refrigerators
Campaign title : “Stable solutions”
Company : Whirlpool India Ltd.
Account handled by : Contract Advertising
Objective
To establish that the whirlpool refrigerators come with strong
compressor that ensures a longer life.

Description of the ads

Ad shows a consumer fed up of coming up with ways to use his old,
not working refrigerators. He is shown using one as a locker, another as a
Kidde bathtub, and third showcases statues. The fourth buy a whirlpool,

19
rubbing his palms moist at the prospects of some wise improvisation all over
again, the voltage does its yo-yo act, but the fridge keeps purring because it
has a HTC compressor that can withstand voltage as low as 160 volts to as
high as 260 volts.

How it helped achieve the objectives

Taking the clue from 1994 Francis Kanoi report and syndicated
research by MARG and others, Contract decided to link the compressor
strength to voltage fluctuations. The single most dreaded complication owns
a consumer durable in India. To avoid the message sounding like run of the
mill drivel, the creative team decided to get some chunks from absurdity. Of
course, whirlpool fixed all, “isn’t it time we bought a cupboard now?” asks
our now ageing chubby friends bespectacled wife, at the end.

Analysis-II

Product : BPL Electronics

Campaign title : “Honest to its limits”
Company : BPL Limited
Account handled by : Mudra

Description of the ad
Amitabh Bachchan shown moving through a posh locality market
subway. On the way he is taking about the features of the product, but when
it comes to telling the brand name, he seems to be completely forgetting it.

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The background shows big neon signs of BPL Flashing, which our Big B
passes trying to remember the brand name.

How it helped achieve the objective

The ad used the same formula of expected /unexpected contrast for
generating a humorous situation. As it is typical or our audience they are
dying to duck reality like the Hindi movies, the ad picked the idea in the
same way of portraying the brand with all its glamour and grandness that it
appears to the audience, that how can the B” forget something of his own
type and in the process the audience subconsciously is trying to tell him that
“Hey! Look behind, there it is’ and in the attempt remembers the brand
themselves.

ASSOCIATED FEELINGS WITH THE BRAND

The feelings people have about a particular ad i.e. likes and dislikes
lead to the level of a particular attitude about the brand being advertised.
Feelings like warmth, humor, fear etc may be felt while a person is watching
an ad.

ADVERTISING AND BRAND IMAGE BUILDING

When a company introduces any product in the market, it takes the
following steps:
I) To select a brand name acceptable by the people

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 2) Be ready to spend money on ad through various media vehicles
3) Once the product gets accepted in the market there should not be any
slackness in advertising.
4) The company should try to improve the quality and standards of the
product. For building the brand loyalty the ad should be made
effective. The feature should be highlighted so as to make consumers
change this loyalty from brand to another. Developing a good brand
for a product requirement a great deal of long-term investment
especially for advertising, promotion and packaging. Through ad the
consumer is likely to develop a set of beliefs about brands.

The set of beliefs about a particular brand is known as

its brand loyalty. It includes impressions about its physical features and
performance, impressions about functional benefits from using it,
impressions about the kind of people who use it, the image and the symbolic
meaning it evokes in consumer’s mind.

ADVERTISING AND CONSUMER

In the modem world, transmission of’ ideas, thoughts, views and

development particularly through impersonal communication has gained a
rapid momentum. This has been necessitated to meet the growing needs of
mass production and mass distribution. Often the goal of advertising is to
persuade consumers to change their attitude more favorably to a particular
product, service or person or issue through their persuasive appeals. It has
been rightly said that in the age of mass production and mass distribution the

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advertising remains the only sensitive weapon, which penetrates the market
at a reasonable cost.

IMPACT OF ADS ON PURCHASE

Marketing in the modern world may not be possible without the aid of
the ad. It is a link between the produces and the ultimate consumer. The
information of the product manufacturer reaches the consumer through ads.
The questions like, what is the nature of the product? What are its attributes?
How can it be useful? Are answered by the advertisement.
It is generally observed that whenever some durable product is to be
purchased, search for more and more information is resorted to. Consumer
might go to the dealer of the product, take the advice of his friends and
relatives or ask about the reaction of the users of the product. After
consulting all the sources he finally makes his mind for the purchase of the
product. This is because durable goods involve huge amount of money ad
are brought of the year. Hence, it is of paramount important that eve ad
should be attractive, suggestive, memorable, educative, instinctive, and
believable and goes with the sentiments of people.
Hence we see that the success of the advertisement depends not only
on the choice of an effective appeal but also on the media chosen for
advertising.
Ad media are thus, the vehicles, which carry the ad messages.
Effective advertising refers to informing the public about the right product at

23
right time through the right medium. Therefore, the right media selection is
the crux of success of entire advertising campaign.

The purpose of ad is to sell something,

 A good service idea, person/place
 Either now or later.
The goal is reached by setting specific objective that can be expressed in
individual ads that are incorporated into ad campaign. The marketers are
dishing out laths of rupees on advertising their product so as to make them a
success. But the marketers need to have some information to produce a good
advertisement. The study tries to find out the effectiveness of different
advertising appeals in different media for some consumer durable products.

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 SALES PROMOTIONS
It changes the price value relationship of the product. There are
number of sales promotion tools which are:-

 Consumer sales promotion

 Trade sales promotion

CONSUMER SALES PROMOTION

There are number of consumer sales promotion tools which are:-
 Samples
 Coupons
 Cash refund offers
 Price packs
 Premiums
 Frequency Programs
 Prizes
 Patronage Awards
 Free trials
 Product warranties
 Tie-in promotions
 Cross promotions
 Point of Purchase

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TRADE SALES PROMOTION
There are number of trade sales promotion tools which are:-
 Price-off
 Allowance
 Free goods
 Trade shows and conventions
 Sales contests
 Specialty advertisement

Just because of sales promotion, there are:-

I. Immediate results
II. Direct impact on sales
III. Measurable
IV. Less expensive than advertisement
V. Clears inventory

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 ADVERTISEMENT VS SALES PROMOTION

A decade ago, the advertisement to sales promotion ratio was about

60:40.Today in many consumer packaged goods companies, sales promotion
accounts for 75% of the combined budget. In India, spending on sales
promotion estimated to have grown by 500-600 % during the last few years.
Promotion is now more accepted buy top management as number of brands
has increased and many brands are seen as similar so it is somewhat seems
to be dangerous to use advertisements because of rising costs, media clutter
and legal restraints. But on the other hand Advertisement typically builds
brand loyalty but sales promotion with its incessant price offs, coupons,
deals and premiums may devalue the product offering in buyer’s mind. So
sometimes, heavy use of sales promotion may result into:-

 DECREASING BRAND LOYALTY

 INCREASING CONSUMER PRICE SENSITIVITY
 BRAND QUALITY IMAGE DILLUTION
 FOCUS ON SHORT RUN MARKETING PLANNING

So it is very difficult to say which one of both is good for any company to
offer their product to customer. This is just the mind game which the
companies has to play with complete expertise as there is no room for
mistakes in this advertising world.

27
Chapter
*4

28
 REVIEW OF LITERATURE

Appeals are the motives of target consumers to which the ad

refers. Appeals may be different in different ads. Selection of appeals and
also the use of different appeals for different media is a difficult work
because appeal which seem likely to appeal consumers may be inappropriate
because they don’t coincide with the particular advertising strategy of the
firm and don’t carry the message what the firm wants or may be the appeal
cannot be carried out effectively in a particular medium.
A review of literature was undertaken to gain insight into the topic. A few
studies could be found as given below:
Fear Appeals
Personality variables particularly self-esteem probably has
received the greatest attention in fear research. Self-esteem has been shown
to be negatively related to the level of expressed fear.
Ray and Wilkie (1970) said that non-ownership equal ‘low
relevance’ ad that low relevance is associated with greater responsiveness to
a fear appeal. Fear motivation should be most effective for those who have
seen themselves as a part of market for the recommended product / brand.
Wheatley (1971) conducted research to test Ray Wilkie
hypothesis. He concluded that non-owners of the life insurance showed a
greater degree of favorable attitude shift towards ad. He interpreted these
data as a confirmation of Ray Wilkie’s low relevance hypothesis.

29
 Stuteville (1970) suggest that fear appeal can most effectively be
used in the following situation
 The fear condition is avoided through the use of sponsor’s
product.
 There is no psychological investment in not using the product.
 What is feared is damaged to the social image of self rather than
to the physical self.

Burner and Oliver (1979) gave some support to the value of

segmentation strategy in fear research. High fear message could not be used
for general public effectively but for some specific market segmentation
only. Several psychologists have hypothesized that Psychological needs
result from anxiety long strength, explained the role of anxiety as follow: A
child or adult will appeal to have a need for something to the extent that
absence of a product has been associated with reduction in anxiety and for
increase in other pleasant emotional responses.

Evans in a study of fear appeal found that high fear appeal created more
anxiety than low fear appeal, while low fear appeal caused more anxiety
than positive appeal. Also fear appeal messages were more effective in
creating anxiety, but they were not more successful in modifying attitude
than positive appeal.

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Strengthal & Craig (1973) concluded that-
1) Humorous message attract attention
2) Humorous message may detrimentally affected comprehension.
3) Humorous message may distract the audience, yielding a reduction in
counter argument and an increase in persuasion.
4) Humorous appeal appears to be persuasive but the persuasive effect is
at best no greater than that of serious appeal.
5) Humour tends to enhance source credit
6) Audience characteristics may confound the effect of humour.

Madden and Weinberger (1984) conducted a survey and concluded that-

• Attention and awareness are the objectives best attained by using
humour.
• Comprehension and recall are secondary to attention and awareness in
terms of what humour can achieve. There are aspects of
comprehension such as name and simple copy registration and
retention that are well served via humour.
• Humour increases persuasion by creating a positive mood. Perhaps
when trying to gain the compliance needed in brand switching a
potentially alienating task, humour helps bring about a positive mood
to again the desired end.
• Humour doesn’t enhance source creditability more than non-humour.

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 • Media does make a difference. Radio and television were perceived as
the media vehicles best suited to humour. The next most effective
media outdoor ad magazine received less than half support of the top
two vehicles on the positive side. direct mail ad. Newspapers were
seen to be media least.

Emotional Appeal
E. P. Beltiughaus gave the following points as guidance for
constructing the emotional appeal when it appears to be appropriate.
• Use emotionally changed language especially words that have a high
personal meaning to the target consumers.
• If the brand message is unfamiliar to the audience, associate it with
well known ideas.
• Associate the brand/message with visual /non-verbal cues such as
hand motions which support the verbal message.
Research and market place findings over the last 10-15 years have identified
that the consumer’s emotional response toward the brand and or the ad can
be powerful motivator of consumption behaviour. Cailen Machleit and
Kleine (1992), Erevalles (1998), Haley and Baldinger (l991) and can
substantially influence post exposure attitudes ad recall.
In the last few years advertising researchers have demonstrated the
important role the viewer’s emotional response plays in mediating the
impact of television commercial as well as advertisements in general.
The emotional response of the viewer has been shown to influence
attitude towards the ad and the brand. Batia & Ray (1 986), Edell and Burke
(1 987), Derbaix (1995), increased attention to the ad Colney. Hoibreok and

32
Batia (1991) and increase ad, message and brand recall. Englis (1990), Page
Thoroson and Heide (1900), Stayman & Batia (1991).

The review of available literature indicated that on studies were

conducted in the field of advertising relation to its influence on the consumer
buying process.
I) In the work of Starch (1959) colour combination used for ad
showed that four colour ad pull approximately 50% more enquiry than
black and white.
2) Singh and Verma (1994) found that recall of magazine ad by urban
respondents was relatively better than that of newspaper because of
better presentation.
3) Godrej (1975) observed that due to low frequency of purchase and
higher unit cost the risk involved is high in the purchase decision
regarding durable goods.
4) Cross by and Taylor (1981) concluded that female sub did not
require information to the same extent as the male subs. Females are
more involved in = the durability ad quality of construction.
5) Clarke and Sautor (1982) concluded that environment effect the
acquisition order for the products.

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 ANALYSIS OF REVIEW OF LITERATURE

The studies which were being done in the past on advertisements and
sales promotions states that whichever appeal is used by the
advertising companies should be in a way that draws the attention of
the general public/customer easily and effectively so that they can
retain their customers for long period of time.

Companies should identify the needs and

requirements of the customers so that they can deliver them the
desired products which are being required by them and the products
should be qualitative and quantitative as well. Companies should use
emotionally changed language especially words that have a high
personal meaning to the target consumers
.
Advertising agencies must associate the
brand/message with visual /non-verbal cues such as hand motions
which support the verbal message. Appeal messages such as fear
appeal should be more effective in creating anxiety but they were
more successful in modifying attitude than positive appeal.

34
 The companies should check the emotional
response of the viewer so that they can come to know how customer
relates his attitude towards the ad and the brand.Thus companies
should make each and every decision by taking into consideration the
customer’s choice, needs and requirements as there is no space of
mistakes in advertising world because with every single mistake
companies has to incur huge losses in terms of brand loyalty and
brand name of the organization.

35
Chapter
*5

36
 CONCLUSION

From the above findings, we conclude that effectiveness of ads depends

upon the different criteria for which the people like to watch the different
ads on different media. The effectiveness of the ads depends upon the
criteria like informative capacity of the ads. The entertainment capability of
the ads depends upon the visual, model and quality of jingles in the ads. On
these various parameters the effectiveness of ads on different media
depends.

TV is the most important advertising media and influences the consumer’s

buying behavior. Advertising adds to the goodwill of the product and builds
the confidence to buy the product. The ads trigger the innovative capacity of
the people. So advertising is a good source of information and helps in
boosting the sales.

37
BIBLIOGRAP
HY

38
 BIBLIOGRAPHY

Aaker, A. David and Myers, John G, “Advertising Management, Prentice Hall of India

P. Ltd., New Delhi, 1986.

Chunawalla, S.A., and Sethia, K.C., “Foundation of Advertising- Theo and Practice”, I

Himalaya Publishing House, New Delhi, 1997.

Jefkins, Frank, “Advertising Made Simple”, The creation of advertising and production

Of advertising, 1982.

Journal of Advertising Research, “Emotional Response to television Commercials”,

March- April, 1999.

Websites

www.emeraldinsight.com

www.encarta.com

www.altavista.com

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