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Partial Fulfilment for the Degree of MASTER OF BUSINESS ADMINISTRATION (MBA) UNDER THE SUPERVISION OF (Ms. Sangeeta Mehrolia)
SUBMITTED BY DHRUV MARWAH Enrolment No.- 0931913908 IV SEMESTER
GITARATTAN INTERNATIONAL BUSINESS SCHOOL (Affiliated to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY) ROHINI, NEW DELHI – 10085 (2008-2010)
Advertising has played a major role in consumer marketing, and has enabled companies to meet communication and other marketing objectives. Typically, advertising is used to inform, persuade, and remind consumers. It importantly reinforces their attitudes and perceptions. Advertising has been a target of criticism for decades. Advertising has been hailed as a capitalistic virtue, an engine of free market economy, and a promoter of consumer welfare. Its detractors on the other hand accuse it of an array of sins ranging from an economic waste to purveying of harmful products, from sexism to deceit and manipulation, from triviality to intellectual and moral pollution (Mittal, 1994). Advertising is seen by many as a threat to the cultural identity and self realisation of many developing countries: it brings to many people alien ethical values; it may deviate consumer demands in developing countries to areas which can inhibit development priorities; it affects and can often deform ways of life and lifestyles (Mac Bride, 1980). Advertising is considered unethical when it degrades rival’s product or substitute product, gives misguiding information, gives false information, conceals information that vitally affects human life (e.g., side effects of drugs), makes exaggerated claims, is obscene or immoral or is against broad national interest. While comparative advertising may be considered legal and its widespread use may have granted it acceptance, the debate on whether or not it is ethical, still continues. There is no unanimity among advertising professionals and marketing clients regarding such questionable practices. However, all agree to one aspect that while considering the question of unethical practices, the focus must be to safeguard the interest of buyers at the micro level and the society at the macro level as their satisfaction is the key to the marketing success. The criticism has been related not only to its intended effects on society, but also to its unintended effects. Most of the criticism has come from "elite" observers of society. In contrast, the general public has historically viewed advertising in a more positive way. Whereas criticisms of advertising have generally originated from the highest socio-economic classes since the earliest days of the modern marketing era and before, lower and middle class people have historically been more positive toward advertising (Bauer & Greyser, 1968; Fullerton & Nevett, 1986; Steiner, 1976; Zanot, 1984).
HISTORY OF ADVERTISEMENT Archaeologists have found evidence of advertising dating back to the 3000s bc, among the Babylonians. One 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 Pompeii. An outdoor advertisement excavated in Rome offers property for rent, and one found painted on a wall in Pompeii 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. The criers were citizens who read public notices aloud and were also employed by merchants to shout the praises of their wares. Later they became familiar figures on the streets of colonial American settlements. The 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 German printer Johannes Gutenberg about 1450. This invention made the mass distribution of posters and circulars possible. The first advertisement in English appeared in 1472 in the form of a handbill announcing a prayer book for sale. Two hundred years later, the first newspaper ad was published offering a reward for the return of 12 stolen horses. In the American colonies, the Boston News-Letter, the first regularly published newspaper in America, began carrying ads in 1704, and about 25 years later Benjamin Franklin made ads more readable by using large headlines. In the United States, the advertising profession began in Philadelphia, Pennsylvania, in 1841 when Volney B. Palmer 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. The ads themselves were created by the advertisers. In 1869 Francis Ayer bought out Palmer and founded N. W. Ayer & Son, an agency that still exists today. Ayer transformed the standard agent practice by billing advertisers exactly what he paid to publishers plus an agreed upon commission. Soon Ayer was not only selling space but was also conducting market research and writing the advertising copy.
when Bernbach's agency picked up the account for the Henry S.Advertising agencies initially focused on print. the Volkswagen ads stood out because they admitted failure in a witty way and gave facts in a believable manner that underlined the car's strengths.' An equally unconventional ad carried the headline 'lemon' beneath a photo of an apparently flawed Volkswagen. Bernbach believed that advertising had to be creative and artistic or it would bore people. founder of the Leo Burnett agency in Chicago.' But it was the advertising for Volkswagen that made the agency's reputation. But the introduction of radio created a new opportunity and by the end of the 1920s. Television had been introduced in 1940. . but because of the high cost of TV sets and the lack of programming. Levy Bakery in Brooklyn. Bill Bernbach. Instead it began to create a product image. advertising had established itself in radio to such an extent that advertisers were producing many of their own programs. The tone of the advertising was also changing. This wit together with a conversational and believable style was a hallmark of the advertising created by Doyle Dane Bernbach and that style became highly influential. As the American economy soared in the 1950s. so did the sale of TV sets and the advertising that paid for the popular new shows. The ad showed a Native American eating a slice of the bakery's rye bread with the headline. all came to prominence in the late 1950s and 1960s and led what has been called the 'creative revolution. sophisticated. and David Ogilvy. a borough of New York City. and witty.' In an era of hype and bombast. No longer did advertising simply present the product benefit. 'You don't have to be Jewish to love Levy's. The early 1930s ushered in dozens of radio dramatic series that were known as soap operas because they were sponsored by soap companies. 'think small. The ads his agency created were understated. Leo Burnett. you get the plums.' Bernbach's agency captured the spirit of the new age. founder of Ogilvy & Mather in New York City. Soon TV far surpassed radio as an advertising medium. For example. founder of Doyle Dane Bernbach in New York City. The chrome strip on the glove compartment is blemished and must be replaced…We pluck the lemons. He also believed that good advertising began with respect for the public's intelligence. it was not immediately embraced. Doyle Dane Bernbach created a magazine ad that showed a small picture of the Volkswagen Beetle surrounded by a sea of white space with the headline. At a time when American cars were getting bigger and bigger and the advertising for them trumpeted that bigger was better. The ad's copy explained that 'this Volkswagen missed the boat. the agency created an ad that entertained New Yorkers and provided fodder for many conversations. Illinois.
what they will watch. (v) Advertising can be economical. by an identified sponsor. will likely enable consumers to select from a vast video library. permitting an advertiser to speak to millions of buyers in a matter of a few hours. to a greater extent than ever before. for it reaches large groups of people. . (iv) It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales. (vi) The communication is speedy. Some industry observers believe that as consumers gain greater control over their viewing activities. This keeps the cost per message low. Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea.” What Advertisement Is? Advertisement is a mass communicating of information intended to persuade buyers to by products with a view to maximizing a company’s profits. The American Marketing Association. The introduction of the TV remote control and access to hundreds of cable channels mean that today advertising must interest and entertain consumers or else they will simply use the remote to change the channel. Consumers will be able to determine not only when they watch something. which means to turn to. The development of interactive television. The dictionary meaning of the term is “to give public notice or to announce publicly”.The creative foundation established by Bernbach and others has been critical to the success of contemporary advertising. goods or services. combining the functions of a computer with access to high-speed transmission over cable lines or optical fibers. for it is not delivered by an actual person. New digital devices even threaten to make it possible to edit out commercials. has defined advertising as “any form of non-personal presentation or promotion of ideas. but also. nor is it addressed to a specific person. they will find it easier to avoid advertising. DEFINITION OF ADVERTISING The word advertising originates from a Latin word advertise. Chicago. The elements of advertising are: (i) It is a mass communication reaching a large group of consumers. (iii) It is non-personal communication. (ii) It makes mass production possible.
because if advertising is done properly. What is excluded from Advertising? Advertising is not an exact science. Advertising includes the following forms of messages: The messages carried inNewspapers and magazines. That is. not the medium. thorough tradesmen. (v) The function of advertising is to increase the profitable sales volume. (whether distributed by mail. (iv) Advertising without persuasion is ineffective. The advertisement that fails to influence anyone. (iii) The content of the advertisement is within the control of the advertiser. On radio and television broadcasts. Advertiser cannot afford to play with advertising. What is Included in Advertising? (i) The information in an advertisement should benefit the buyers. Label stags and other literature accompanying the merchandise. is a waste of money. motion pictures used for advertising. (i) Advertising is not a game. he cannot predict with accuracy what results his future advertising efforts will produce. Store signs. or by inserts in packages). either immediately or in the future. (ii) Advertising is not a toy. (ii) It should suggest better solutions to their problems. advertising expenses should not increase disproportionately. Advertising funds come from sales revenue and must be used to increase sales revenue.(vii) Advertising is identified communication. . both the buyer and the seller benefit from it. by person. An advertiser’s circumstances are never identical with those of another. Circular of all kinds. The advertiser signs his name to his advertisement for the purpose of publicizing his identity. Dealer help materials. Window display and counter – display materials and efforts. Novelties bearing advertising messages and Signature of the advertiser. It should give them a more satisfactory expenditure of their rupees.
This involves decision regarding copy . The use of exhibitions and demonstrations at fairs. The basic objectives of an advertising programme may be listed as below: (i) To stimulate sales amongst present. This means that specific objectives should be set for each particular advertisement campaign. Advertising may be used to reassure buyers that they have made the best purchase. (iii) To retain the loyalty of present and former consumers. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme.(iii) Advertisements are not designed to deceive. The use of samples and activities. former and future consumers. show and conventions. Advertising seeks to condition the consumer so that he/she may have a favourable reaction to the promotional message. the objectives of advertising should be specific. (iv) To increase support. e. The payment of advertising allowances which are not used for advertising. . Advertising is a form of promotion and like a promotion. it thus contributes to enthusiasts and confidence attitude in the organizational. wholesalers. Advertising impliedly bolsters the morale of the sales force and of distributors. The entertainment of customers Advertising Objectives Each advertisement is a specific communication that must be effective. (ii) To communicate with consumers.g. The objectives of advertising were traditionally stated in terms of direct sales. it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. Now.. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. involving news releases and the activities of personal selling forces. : . The activities excluded from advertising are: The offering of premiums to stimulate the sale of products. TV rather than print . thus building loyalty to the brand name or the firm. The desire and hope for repeat sales insures a high degree of honesty in advertising. but for many target buyers. It involves a decision regarding the media. not just for one customer. and retailers.
Advertising is used to promote an overall image of respect and trust for an organization. such as personal selling or point-of-purchase display. Advertising is efficiently used with at least one other sales method. it is seldom solely relied upon. Lower consumer prices then allow these products to become available to more people. the price of newspapers. It can help train dealers salesmen in product uses and applications. advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. to directly move customers to buying action. stressing the advantages of a military career. advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life. While sometimes advertising alone may succeed in achieving buyer acceptance. Similarly. It can force middlemen to stock the product by building consumer interest. Advertising has become an important factor in the campaigns to achieve such societal-oriented objectives such as the discontinuance of smoking. The attempt by army recruitment is bases on a substantial advertising campaign. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. advertising was accepted as a potent and recognized means of promotion only 25 years ago. Advertising strategies that increase the number of units sold stimulate economies in the production process. but also at the government. and the elimination of drug abuse. physical fitness. Advertising has become increasingly important to business enterprises –both large and small. its growing productive capacity and output necessitates the finding of consumers and advertising plays an important . and the like might be prohibitive without advertising. and the general public. radio and TV programmes. Though in India. Advertising is to stimulate market demand.(v) To project an image. The production cost per unit of output is lowered. Outlay on advertising certainly is the voucher. Non-business enterprises have also recognized the importance of advertising. It in turn leads to lower prices. shareholders. This message is aimed not only at consumers. Advertising assumes real economic importance too. or even demand for the product. In short. professional sports. It can build dealer and consumer confidence in the company and its products by building familiarity. preference. The health department popularizes family planning through advertising Labour organizations have also used advertising to make their viewpoints known to the public at large. Importance of Advertising Generally. family planning.
consumers. Industrial Advertising 5. Competitive Advertising C. there is a tremendous scope for development so that it may be productively used for the benefit of producers. In India. Institutional Advertising C. Informative Product Advertising B. and the country’s economy. Advertising based on Product Life Cycle A. Because of this fact. Product Advertising A. Functional Classification A. Retail Advertising B. Product – Related Advertising It is concerned with conveying information about and selling a product or service. Pioneering Advertising B. viz. A. Wholesale Advertising 6. Advertising According to Medium Utilized 1. Local advertising C. Product advertising is of three types. Selective Demand (Stimulation) B. Product – Related Advertising A. Retentive Advertising 2. Public Service Advertising 3. advertising as a profession is in its infancy. National advertising B. Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection. Persuasive Product Advertising C. Advertising Based on Area of operation A. CLASSIFICATION AND TYPES OF ADVERTISING 1. . traders. Primary Demand (Stimulation) B. Advertising Based on Demand Influence Level.role in this process. Trade Advertising A.. Reminder-Oriented Product Advertising 4. Consumer Advertising B. Regional advertising 7.
direct action-in which case. C. 2. Direct Type: It seeks to stimulate immediate buying action. It seeks to sell a specific brand rather than a general product category. B. it provides prices. the objective is to put across a message intended to change attitudes or behaviour and benefit the public at large. Pioneering Advertising: This type of advertising is used in the introductory stages in the life cycle of a product. Competitive Advertising: It is useful when the product has reached the market-growth and especially the market-maturity stage. It stimulates “selective” demand. The effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of the sponsoring organization. the initial advertisement for black – and – white television and color television. Example: Airline advertising. It is concerned with developing a “primary” demand. or eventually – indirect action – when it suggests that you mention Air India’s name when talking to your travel agent. It conveys information about. Competitive Advertising C. For example. and selling a product category rather than a specific brand. Indirect Type: It attempts to pinpoint the virtues of the product in the expectation that the consumer’s action will be affected by it when he is ready to buy. . time tables and phone numbers on which the customer may call for reservations. Generally in such times. Public Service Advertising This is directed at the social welfare of a community or a nation. or only the name may be mentioned in “reminder” type advertising. Air India attempts to bid for the consumer’s patronage either immediately . B. Such advertisements appeal to the consumer’s emotions and rational motives.A. It is of two types: A. Pioneering Advertising B. Advertisements on not mixing drinking and driving are a good example of public service advertising. A much softer selling approach is used. the advertiser wants to keep his product’s name before the public. In this type of advertising. Retentive Advertising: This may be useful when the product has achieved a favourable status in the market – that is. Retentive Advertising A. maturity or declining stage.
B. Institutional advertisements are at consumers or focus them upon other groups. suppliers. To establish a differential advantage and to acquire an acceptable sort of market. This sells only the name and prestige of the company. It is intended to affect the demand for a type of product. legislators. for example. Selective Demand Stimulation This demand is for a particular brand such as Charminar cigarettes. or Vimal fabrics. Institutional Advertising Institutional Advertising may be formative. When a product is new. . primary demand stimulation is appropriate. Some advertise to stimulate primary demand. (iii) It may try to cause indirect action or direct action. does considerable institutional advertising of its name. the marketer must inform consumers of the existence of the new item and convince them of the benefits flowing from its use. (ii) It may promote either the brand or the firm selling that brand. etc. government officials. financial institutions. emphasizing the quality and research behind its products. If it is effective. Advertising Based on Demand Influence Level. employees. Functional Classification Advertising may be classified according to the functions which it is intended to fulfil. i. It aims at building for a firm a Positive public image in the eyes of shareholders. ii. selective demand advertising is attempted. persuasive or reminder oriented in character. A. Competitive advertising stimulates selective demand. Primary Demand Stimulation Primary demand is demand for the product or service rather than for a particular brand. or the general public.3. When primary demand has been stimulated and competitors have entered the market. Surf detergent powder. The advertiser attempts to differentiate his brand and to increase the total amount of consumption of that product. suppliers. It is not to stimulate the demand for the product or service. It may be of either the direct or the indirect type. the advertising strategy may be to stimulate the selective demand. and not the brand of that product. such as voters. Institutional advertising is used extensively during periods of product shortages in order to keep the name of the company before the public. At this time. HMT or DCM. This type of advertising is used frequently by large companies whose products are well known. (i) Advertising may be used to stimulate either the primary demand or the selective demand.
comprehension. is an affairmotive action employer. attitude change or action for an offering. iii. that its management takes ecologically responsible action. it benefits the organization as a whole. It notifies the consumers that the company is a responsible business entity and is patriotic. Persuasive Product Advertising: Persuasive product advertising is to develop demand for a particular product or brand. to some extent. B. It was the original approach to advertising. C. The marketer may use such promotion to generate exposure attention. Persuasive Product Advertising C. designed to promote the sale or reputation of a particular product or service that the organization sells. . in the maturity period of the product life cycle. When Indian Oil advertisements describe the company’s general activities. Indane’s Cooking Gas is a case in point. HMT once told the story of the small-scale industries supplying it with component parts. It is usually done in the introductory stages of the product life cycle. such as public service work. supports the socialistic pattern of society or provides employment opportunities in the community. Product Advertising Most advertising is product advertising. 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. It deals with the nonpersonal selling of a particular good or service. Informative Product Advertising B. It is a type of promotion used in the growth period and.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. Reminder-Oriented Product Advertising: The goal of this type of advertising is to reinforce previous promotional activity by keeping the brand name in front of the public. It does not attempt to sell a particular product. thus indicating how it aided the development of ancillary industries. Informative Product Advertising: This form of advertising tends to characterize the promotion of any new type of product to develop an initial demand. Reminder-Oriented Product Advertising A. It is of three types as follows:A. It is used in the maturity period as well as throughout the declining phase of the product life cycle.
Industrial Advertising A. To get the advertiser’s name on the buyer’s list of sources. Advertising agencies are much less useful in industrial advertising. To create or change a buyer’s attitude.4. to create or change a company’s image. To recognition for the firm or its products. Baring a few. To induce inquiries. the derived demand. To help get items in the news column of a publication. scooters. Industrial Advertising Industrial executives have little confidence in advertising. and The basic appeals tend to increase the rupee profits of the buyer or help in achieving his non-monetary objectives. Consumer Advertising B. B. Advertising based on Product Life Cycle A. Marketers of pharmaceuticals. detergents and soaps. . The task of the industrial advertiser is complicated by the multiple buying influence characteristics like. They are: To inform. To motivate distributors. cosmetics. and general management publications. The objectives vary according to the firm and the situation. Trade journals are the media most generally used followed by catalogues. To establish recognition for the firm or its product. Consumer Advertising Most of the consumer goods producers engage in consumer product advertising. direct mail communication. all these products are all package goods that the consumer will often buy during the year. There is a heavy competition among the advertisers to establish an advantage for their particular brand. exhibits. To motivate distributors. To provide support for the salesman. To reduce selling costs. To bring in orders. etc. They rely on this form of promotion merely out of fear that their competitors may benefit if they stop their advertising efforts. cigarettes and alcoholic beverages are examples.
Local Advertising A. From the retailer’s point of view. The store personnel are usually given this responsibility as an added task to be performed. They also need to make a greater use of supplier promotion materials and programs in a way advantageous to them. The result is that advertising is often relegated to a secondary position in a retail store. Retail Advertising This may be defined as “covering all advertising by the stores that sell goods directly to the consuming public. National advertising It is practiced by many firms in our country.5. Advertising based on Area of Operation It is classified as follow: A. The famous national advertisers are: Hindustan Levers DCM ITC . co-operative advertising permits a store to secure additional advertising that would not otherwise have been available. not advertising minded. either for themselves or for their suppliers. B. It refers to advertising costs between retailers and manufacturers. It includes. 6.” Advertising agencies are rarely used. Regional Advertising C. It encourages the consumer to buy their product wherever they are sold. One aspect of retail advertising is co-operative advertising. petrol pumps and banks. such as beauty shops. generally. Trade Advertising A. National Advertising B. together with their normal functions. They would benefit from adopting some of the image-making techniques used by retailers – the need for developing an overall promotional strategy. Most national advertisements concentrate on the overall image and desirability of the product. also advertising by establishments that sell services to the public. Wholesale Advertising Wholesalers are. Retail Advertising B. Wholesale Advertising A.
television production crews and many others. These advertisements save the customer time and money by passing along specific information about products. it mainly confined itself to one of the vegetable oil brands distribution to Malihabad district (in U. Almost all advertising is therefore arranged through an advertising agency which provides the necessary skill to turn the message into a memorable and effective advertisement. Regional advertising It is geographical alternative for organizations. Advertising agency is one of the most important components of advertising industry. artists. Local advertising It is generally done by retailers rather than manufacturers. Even the biggest advertisers cannot afford to employ all these experts. Advertising has not only come to reflect pop culture but has also become an important element of economic growth.P. 7. and so on. radio. Advertising Agency Getting the best out of advertising is a highly skilled job. For example. Retailer advertisements usually provide specific goods sales during weekends in various sectors. The advertising agency has evolved to provide the specialized knowledge. For example: TV. magazine. But. Today. designers. This classification is so common in use that it is mentioned here only for the sake of completeness. Advertising According to Medium The most common classification of advertising is by the medium used. location. until recently. skills and experience needed to produce effective advertising campaigns. photographers. It requires the inputs of experts in many different fields like writers. Amrit Vanaspati based in Rajpura claims to be the leading hydrogenated oil producer in the Punjab. It has played a significant role in the development of modern advertising. outdoor. near Lucknow). every person connected with the Indian economy or public should be fully aware what advertising really is and why effective advertising campaigns can be performed by full-service advertising agencies. prices. newspaper and direct mail advertising. It provides a quality . C. business periodical.Jay Engineering TISCO B.
And competition is stiff. Advertising is demanding. The advertising process for professional staff and faculty positions involves five basic steps: 1. and an ability to work under pressure to meet deadlines. the unlimited expense accounts. prepare and place advertising media for sellers seeking to find customers for their goods and services. The industry. It is also interesting and fulfilling. creative and personable men and women with a wellrounded education and a good business sense. Agencies may be hired to produce single ads or. there are never many entry-level positions open in advertising agencies (dozens rather than hundreds).all these popular portraits of life in the big-time advertising agency are misleading. challenging. Compared to larger industries. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. You should plan to have your ad approved and an estimate of the cost done at least one month prior to the date when you want the ad to be published. An advertising agency or ad agency is a service business dedicated to creating. design and placement of advertisements. you should take into account that the “lead-in” time needed to place an ad can vary anywhere from days to months depending on the publication. ongoing series of related ads.range of service greater than any single advertiser could afford or would need to employ. Writing an Ad 2. called an advertising campaign. non-profit organizations and government agencies. An advertising agency is a firm that specializes in the creation. hard work. and in the planning and execution of promotional campaigns for products and services of their clients. planning and handling advertising (and sometimes other forms of promotion) for their clients. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. bright. is constantly on the look out for skilled. The Association of Advertising Agencies of America (AAAA) defines advertising agency as “An independent business organization composed of creative and business people who develop. more commonly.” The glamour. Typical ad agency clients include businesses and corporations. considerable business skills. articulate. Advertising Process When preparing your search proposal. Advertising requires a mix of personal abilities. however. and the exhilarating lifestyle . Getting Approval for the Text of the Ad .
WPP Group.or two-person shops to large multinational. press ads. Some agencies specialize in particular types of advertising. collaterals Media Scheduling and media booking All release approvals for creative & media Material dispatch to media Media release monitoring Any post-testing if required Billing and collection . Paying for Ads Typical work flow in agency STAGE Briefing Stage WORK PERFORMED AT STAGE • Briefing from the client • • Creation Stage • • • • Production Stage • • • • Post Production Stage • • • • Types of advertising agencies Ad agencies come in all sizes. Estimating the Cost of the Ad 4. especially larger ones. Other agencies. such as print ads or television commercials. from small one. produce work for Internal briefing to the creative and media Any research briefing if required Ad campaign and media plan development Internal review and finalization Presentation to client and approvals Any pre-testing if required Budget and estimate approvals Production of film. Placing Ads & Posting Announcements 5. Interpublic Group of Companies and Havas. multi-agency conglomerates such as Omnicom Group.3.
Following are major types of advertising agencies that are currently serving the advertising industry. This type is owned completely by the advertiser. The advertiser should make list of all possible agencies that can serve his purpose and the agency best qualified to provide required and effective services are selected. Companies that create and plan their own advertising are said to do their work in house. an advertiser may hire an agencies media department to plan and execute a program for advertising that another agency has developed. which prefer to have closer control over advertising. artwork. Thus an advertiser may commission an agency’s creative department to develop an ad campaign while obtaining other agency services elsewhere. Not all advertising is created by agencies. have their own in-house agency. It performs almost all functions that an outside advertising agency would perform and that’s why some . product design etc. Some advertiser may select more than one advertising agency to handle effectively the various product lines. Fees are charged for actual work undertaken. Or. This relatively young industry has been slow to adopt the term 'agency' however with the creation of ads (either text or image) and media purchases they do qualify technically as an 'advertising agency' as well as recent studies suggest that both SEO and SEM are set to outpace magazine spending in the next 3-5 years. Lately. Modular agencies A modular agency is a full service agency that sells its services on a piece meal basis. In House agencies Those companies. A full services agency provides services that are directly related to advertising such as copywriting. production of ads. distribution. Full Service Agencies A full service ad agency is one that provides a range of marketing services. packaging. Search Engine Marketing (SEM) and Search Engine Optimization (SEO) firms have been classified by some as 'agencies' due to the fact that they are creating media and implementing media purchases of text based (or image based in some instances of search marketing) ads. Today selection of ad-agency is very difficult. It also provides such services in respect of pricing. media planning etc.many types of media.
a London based agency who started the movement and at present it is the third largest agency network in the world. for instance Soubhagya advertising agency concentrate on specialized in financial advertising. Such in-house agency also benefits the owner as it can bring revenue through agency commission that are offered by the media and by way of fees that are collected from outside parties for undertaking their advertising work. However. Agencies worldwide merge with each other serve their clients in much better way. they charge a fee or percentage of full service agencies. but an advertising department solely undertakes that work of its owner and not of outside clients. The specialized creative functions include copy writing. Creative Boutiques These are shop agencies that provides only creative functions and not fullservice. and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services. space and place the ads. which an in-house agency would posses. Such an In-house agency is an administrative center (under the direction of an advertising director) that gathers and directs varying outside for its operation. It was in 1986. Saachi & Saachi. artwork and production of ads. there are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc. if the owner so desires. . Such revenue increases the funds and profits of the company. The Specialists Agency There are some agencies who undertake advertising work only in certain areas. In-house agency not only provides control over advertising schedule and costs. but also offers convenience for its owner. Secondly an advertising department may not be equipped the personnel and facilities. Mega agencies A significant of 1980’s is the development of mega agency. There is another version of in-house agency whereby advertiser handles the total agency functions by buying service unit to buy time. the difference between an in-house agency and an advertising department is that the inhouse agency can undertake to serve several other clients. because it is just available in the same building as that of the head office of advertiser.people refer to it as full-service advertising department of the advertiser.
As a company with a product or service to sell. for example: • For whom is the product or service designed? Who would use it? Who is the "target group"? • • . People are not going to beat a path to your door.The functions of an advertising agency: • • To accelerate economic growth and create public awareness To provide a total. experienced service which is very personal in its nature • To take the advertiser's message and convert it into an effective and memorable communication The Benefits of Using an Advertising Agency • • • • • • • • • • Added Expertise Media Knowledge and Unbiased Advice Easier Administration Media Buying Quality Control Information Fending off the media And when things go wrong Cost Saving Time Saving Advertising Agency's Role Suppose you are a company with a product. You have to seek a channel of communication. Ad agency need to consider. It may be a totally new product. designing and making that item is only part of the battle. professional.
magazines and radio. providing the best creative designed to capture the imagination of consumers . This is where advertising agencies fit in. preferences. their specific appeal about the company and its product – and about competing companies and their products Services offered by ad agency Total Advertising Services Strategic planning. newspapers. particularly in television. wants. expectations • • about media . Market the company's product. Public Media Ad Company with a Agency product or service The process of advertising involves considerable specialized knowledge and expertise • about people .their interests. • • How extensive a region should your company try to cover? How often? Communication and marketing decisions involve specialized expertise. creative development and media services for advertising. their effectiveness. needs.• What's special about the product? In what way is it distinct? Unique? Different? • • • • What's its "position" in relation to other similar products? What do you want to convey to the public about your product? How should your company contact the public? What medium should it use? Radio? TV? Newspapers? Magazines? Billboards? Bus/subway ads? Direct mail? etc. Advertising agencies exist to help companies to communicate with the public. Many companies that design and produce products or offer services lack these specific capabilities. lifestyles.their reach.
including system integration services. e-business consulting and customer relationship management (CRM). market research. the creative department. Content Business Sales of sponsorship. PR and event marketing. music and other forms of entertainment. e-Solution Services e-solution services. films. media buying. broadcasting and other rights. These divisions are usually physically separated.Marketing Services Provision of a number of advertising related services. TV programs. Search Engine Marketing (SEM) and Search Engine Optimization (SEO) and e-promotions using the Internet and mobile. and research. including sales promotion. although all four areas work closely together to produce an advertising campaign in its entirety. animated content. . and the production and marketing of such media / content as sporting events. Integrated Media Services Bringing value to both clients and media-related companies by offering a wide range of media solution services Sales Promotion Providing comprehensive sales promotion planning designed to complement mass media and other activities Event Marketing Assisting clients by providing dynamic vehicles for their messages in the form of onthe-spot interactive communications Integrated Branding Services Assuring clients the highest quality of branding services for their communication needs Organization Structure The activities within an advertising agency are typically divided into 4 broad groups: account management.
direct marketing. As the academic Mark Crispin Miller observed: ‘Technology now infiltrates rather than . which the media guru. while the media department places finished ads within the media in which they will receive the most exposure to a target audience. be it internet or i-pods. continues to dominate youth attention with its umpteen reality shows. that we forget the reach of ‘old’ media — newspapers. many youngsters do flip through the daily newspaper at home. one cannot overlook the critical role played by the ‘old’ media which are competing aggressively with the ‘new’ media. which recently has been identified as one of the influencing factors in teen suicides. described as an ‘extension of our senses’. television and films on our youth. such as photography and high-tech print work. not even poor Santa was spared! He was positioned as a scary character with five pictures to support this tall claim. As for television. ADVERTISEMENT AND STUDENT There is so much written these days about the impact of ‘new’ media. a 23-year old rapes an 8-year old.TV and print have been quietly reinventing themselves to grab TRPs and readership. So as one looks at the impact of media on youth behaviour. many create stressful situations where participants begin to question their sense of worth in our success-driven society. The creative department designs original themes or concepts for ads.Account managers usually have daily interaction with a counterpart at the client's office and coordinate the activities of the other departments according to the client's wishes. Recently added to advertising agencies' roster of services are public relations.Sensational headlines often catch their attention especially when they are about their own generation — the Rathore scandal and student suicides are cases in point.A routine story perhaps. Other activities that used to be completed by outside vendors. but young minds reading these headlines day after day are bound to develop anxiety and question the sanity of our times.While some promote talent. Marshal McLuhan.Even if we presume they read less these days. The research department provides data about consumers to help the agency and the client make informed advertising decisions. In a recent newspaper article. Another headline screamed: ‘Neighbour arrested for raping and killing minor’. and promotional services. have been brought inhouse in many agencies.
TV is irresistible.Cell phones have literally metamorphosed into ‘magic boxes’ which can do practically anything!The growth of internet is phenomenal.Denis Campbell writes: “This will result in millions of pounds of extra revenue but the medicos fear it will also result in increased obesity as sugar-based products are promoted in many programmes… often. television or other electronic device. staying home. rural youth looking forward to moving to big cities. according to a new study from the Kaiser Family Foundation. personality development and social issues like juvenile crimes? In an effort to understand the contributory factors of teen suicides. But. has said that with media use so ubiquitous. that heavy media use is associated with several negatives. .” Not that the ‘new’ media does not finds ways to draw people.No one wants youngsters to become prudes. where the internet has not made much headway. computer. but in this transitional age. they are very impressionable to environmental conditions. (January 3. The average young American now spends practically every waking minute — except for the time in school — using a smart phone. when recent studies point a finger at an over-burdened education system.In an article in the Guardian News. at the same time. blending in with the woodwork. But where are the programmes to help youngsters deal with career selection.Moreover. who directs the Centre on Media and Child Health. Dr Michael Rich. as it were. Television blinds us to any visual event that takes longer than an instant to comprehend and keeps us sitting down. including behaviour problems and lower grades. Umpteen ads prey upon greed and bring in their own brand of sexuality and consumerism. A recent development in UK of allowing product placement in programmes has resulted in a hue and cry by British doctors and teachers.No longer appearing as an alien force. our TV barons are not sitting quietly for the demise of the ‘idiot box’. it was time to stop arguing over whether it was good or bad and accept it as part of children’s environment. the study found. the storyline is altered to promote a particular product.invades. when they are neither children nor adults. Regional television often feeds the hunger of the aspiring. TV remains the main source of information and entertainment. let us not underestimate the impact and continuing growth of the all-pervading ‘old’ media. of Children’s Hospital Boston. 2010) headlined ‘Backlash over plan to extend TV advertising’. And television is the world’s most popular babysitter.’ In smaller towns and rural areas.
000 from a company in exchange for permission to interview 10-to 12-year-old students in classrooms after school. "The advertising industry itself has funded dozens of studies on children designed to enhance marketing effectiveness.Let’s make youth aware of how media influences.. them. What they all have in common is that they are directed toward teenagers. Saatchi & Saatchi hired clinical psychologists and cultural anthropologists to record more than 500 hours of interviews and observations of children between the ages of six and 20. Advertisers spend over billion each year on television commercials. About 57% of viewers surveyed in 1996 enjoy commercials as much as television programs. newspapers." (Linn 2) "It has been documented that the average teenager spends about 6 ¾ hours a day (38+ hours/week) using media--television. we must also involve them in the creation of programmes that help cope with life. "Ipod. It is estimated that teenagers between the ages of 13 and 19 spend 0 a week or 4 billion per year on clothing. There are enormous opportunities for the marketer who is able to understand both the reality and fantasy of teen life. grade schools in Connecticut accepted . "Got Milk?". Selling to Kids.000 commercials a year. such research is taking place in schools. our educationists should also think in terms of developing a ‘medialiterate’ society. he or she will have seen about 20. The Gepetto Group conducts focus groups and consults with psychologists to help businesses better understand how to market to teens by exploiting their vulnerabilities. movies. "Just Do It". "Be All You Can Be"--We have heard these slogans many times during the course of a day in some fashion or other.' the firm's chief strategic officer explained in a Selling to Kids interview. magazines. entertainment. According to the industry newsletter.As we reconsider our educational system and the influence of all media in face of rising suicides. "Have It Your Way". Therefore I Am". Teenagers are probably more influenced by advertising than any other age group. The average child sees approximately 20. playing video games and using the computer. Teens are ?. . an oppositional subculture. By the time a child is 18. Increasingly. "Reach Out and Touch Someone".Going further." (Linn 2) "And according to USA TODAY. We need to guide our youth in this media-saturated society. interested in shutting out the adult world. and they are really not aware of it. "Finger Lickin' Good"..000 food commercials advertising food low in nutrition. "It's Everywhere You Want To Be". even manipulates.
radio. but they also influence many of the purchases in the entire household. interactive. teenagers are being left more on their own to make decisions that have a direct impact on families. 2001). effort. Advertisers are aware of this and desperately try to meet their fluctuating--and they are succeeding. hear. research the product to see what best fits those needs. are "impulse" purchasers. We see something that we need. and money goes into developing products and services and marketing them to young people? Do they truly understand how the images they see. television. Advertisers now realize that children not only influence the purchases of the goods and services that appeal to them. and taste trigger their desires to accumulate more and more "stuff?" Advertisers have found their niche with teenagers. and the internet. They are less likely than others to compare prices or seek recommendations(Vision 3). Is it any wonder that this particular age group is targeted? We as adults have the ability to think logically when it comes to making purchases. Do teenagers give any serious thought about the role that advertising plays in what they buy? Do they realize that a great deal of time. what will make them more popular with their peer group.and fast food. manpower." They buy based upon what their friends are buying. "CEA's (Consumer Electronics Association) research says teens may be more open to impulse purchases because they tend not to overanalyze. employs celebrities to pitch the products. With our fast-paced society. We often notice that advertising geared toward this demographic is often very visual. and these decisions are often influenced by what advertising they see--through print. . smell. it is estimated that 78% of children influence what their parents buy (McDougal Littell. on the other hand. Teenagers. They know that teenagers' tastes will change on any given day what's popular today can be passé tomorrow. and then make a purchase. For example. and is simple yet effective in its language. It is no longer up to the parents alone to decide what the family needs. They are more insecure and more rebellious than people of any other age group. or what a celebrity whom they admire or respect says they need. They have become very creative when it comes to marketing to this group. touch. These purchases can be small to large ticket items. This is an advertisers dream. incorporates catchy slogans.
including a high dropout rate. Sometimes school students are thought of as the forgotten children.000 students that is 97% high income group. violence in the neighborhood. Because of their backgrounds and environmental conditions. Students will learn how advertisers change their "wants" into "needs. such as Foundations or Edison Schools. For the past few years. a very large percentage of students have scored below basic on standardized testing. and fragmented family structure. the school also sits in a neighborhood where gentrification has caused housing prices to rise. West Delhi High School has a population of approximately 1. I. and ipods. Educating young people who must deal with some of these problems can be an awesome task. This unit will aim to show my students how this is done and how they are influenced by it. feel obligated to .This project objective is to how they are being manipulated to buy certain products or services. fun and relevant to their lives takes a great deal of effort and planning. low attendance. This has placed the school in the unenviable position of being slated for takeover--possibly by one of the private companies. They are in desperate need of life skills. where I have taught for thirty-four years." and the different strategies and techniques that are incorporated in their advertising campaigns. advertising plays an important role in their lives. as a teacher. Ironically. Students will learn that since the advent of our technological age. This unit was developed to show my students just how much of a role it plays and how they can use it to their advantage. I am the Business/Technology Coordinator at West Delhi High School. where you can easily find a house selling for upwards of 0. The advent of cable television. there are many problems for students.000 or more. cell phones. The design of this unit has been directly influenced by the circumstances under which I teach. They need to become informed consumers who make choices based on facts and not always on emotions. Making learning interesting. they are being bombarded by advertising at an alarming pace. As with all urban schools. computers. Seventy-nine percent of students at West Delhi High School come from low-income households (School District of Philadelphia/Demographics). video games. has afforded the advertising industry numerous vehicles to expose young people to more and more advertising.
And this is definitely not good. if we were using it before. I feel that the debunking of the myths of advertising is but one way of providing this information for my students. chances are. And sometimes we get mad because we feel we have been taken for a ride. So we are grateful for advertisements because they keep us up to date on the improvement of existing products and the creation of new ones.try and bridge this gap between reality and fantasy. larger. etc. shorter etc. This is all very good.Unfortunately many advertisements. that we will continue to use it and that we react positively to the latest improvement. in those good old days (when everybody complained). So far so good. faster acting. When a good product is improved it does become a better product. tell us a product or service is good only to find out after purchase that it is not good at all. we got to recognize certain brands and products as good quality and we stuck by them. laws and consumer magazines and organisations. rules. and when a company sticks to its original . despite rigorous guidelines. and so forth. Even though the message is the same as it was the last time it was improved. New and improved products are developed all the time and we can't be expected to keep track of these developments ourselves. This happy message really pleases the consumer in us and if the product is one that we use we are pleased that it has now been improved (again) and is even better. Before. as we have mentioned before. right? The ad will tell us in a variety of ways that it is any or all of the following: • • • • • • • • • better than the competitor's product cheaper than the competitor's product easier to use than the competitor's product has more prestige value than any similar product lasts longer the competitor's product it's made of superior parts or ingredients it's healthier for you it's wholly organic it's stronger. Positive Effects The positive side of advertising is that it makes you aware that a product or service is available. So its manufacturer helps us in our lack of awareness and tells us: "Our new and improved product is now even better! Go out and buy it!". Reputation is important.
etc. after the sale in other words. According to the box every product is the best after all. No one can deny that an unbelievable quantity of bad products are for sale. The ad is made by the product's manufacturer and that already tells us that it will never be objective. In retrospect. we are wholly convinced with what we are dealing is genuinely great product. Negative Effects The negative side of an ad is that it is not usually a neutral and objective statement. colorings. we can find out that the ad failed to let us know any or all of the following: • • • • • • • it's made of substandard materials it tastes bad it's badly made it's made from leftovers and rejected materials it's made by someone undergoing forced labor it's far too expensive and should cost 10% of what it does because it is made much much cheaper somewhere else some of its ingredients or additives such as preservatives. But if the manufacturer has a lot of power. the ad is so sophisticated in its execution that.success formula we can trust them and continue to use their products or services without having to worry about it too much. Depending on the power of the manufacturer it can be blatantly obvious that we are dealing with a bad or substandard product. have been banned in your country for at least 30 years because of their carcinogenic effects (cancer inducing) • • • there's really nothing in the product that is in the least bit beneficial to your physical or mental health it could be dangerous to your children it's made up of animal byproducts they are destroying a rain forest to produce it it's been designed exclusively to use all those other bits and pieces they would otherwise be stuck with it would kill any insect better than any spray if you would feed it to them instead of eating it yourself • • • . And that is good because in our busy modern lives we have plenty to worry about already.
The advertiser spends lakhs of rupees in to this advertising activity. i. LITRATURE REVIEW All advertising efforts are directed mainly towards the achievement of business. two types of tests pre tests and post tests. or use that service again.• it's made from organic materials. desired sales profitability or results in terms the change in customer’ behaviour in favour of the company’s product which will naturally. a need is generally arisen to measure the effectiveness of the campaign. There are several pre and post tests techniques to measure the effectiveness of the advertising copy. to increase the sales turnover and thus to market the maximum profit. affect the future sale of the product. (c) Coupon blank etc.. Pre tests are generally conducted in the beginning of the creation process or at the end of creation process or production stage. and so forth. it has achieved the desired results i. This chapter deals these three problems. May be provided with the advertisement or (d) Enquiry from consumers should mention the name of the source of information. etc. In order to measure the effectiveness of advertising copy. never buy a product or anything else manufactured by that company. As soon as the advertising campaign is over. The effectiveness of advertising in a particular media may also be measured in any of the following ways – (a) By giving different addresses to different media. is an attempt to attract the customer towards the product through advertising. The list is quite endless once you get going the reality of it is quite depressing. marketing and advertising objectives i.e.can be undertaken. The only thing we can do is learn from our failures.e. Thus in measuring the effectiveness of advertising we include measuring of the effectiveness of advertising campaign. The technique is known as keying the advertising. Whether. not mentioning that those organics are animal byproducts and leftovers. bio-material even an experimental laboratory would label bio-hazard etc. advertising copy and the effectiveness of individual media. Importance of measuring the Effectiveness of Advertising . until we are absolutely sure it is now really worth our hard earned money and time. (b) Different newspapers may be selected for advertisements of different departments.e. In the background of all these efforts..
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. Evaluating advertising effectives helps in estimating the results in order to avoid complete loss. advertising is published in test markets and results are contrasted with other. the advertisement can be considered as effective one. It is therefore desirable to seek post measurements of advertising in order to determine whether advertisement have been seen or heard or in other words whether they have communicated the theme. (6) Compare two markets Under this procedure. (5) To know the communication Effect The effectiveness of the advertisement can be measured in terms of their communication effects on the target consumers or audience. The main purpose of advertising is communicated the general public. (4) To justify the Investment in Advertising The expenditure on advertisement is considered to be an investment. changes in dealer display and so on depending upon the objectives sought by the advertiser. (3) Avoids possible failure Advertisers are not sure of results of advertising from a particular advertising campaign. message or appeal of the advertising. It facilitates timely adjustments in advertising to make advertising consumer oriented and result oriented. and existing and prospective consumers. The measurements made to determine results may be measurements of change in sales. Thus waste of money in faulty advertising can be avoided. (2) Provides feedback for remedial measures Testing effectiveness of advertising provides useful information to the advertisers to take remedial steps against ineffective advertisements.(1) It acts as a Safety measure Testing effectiveness of advertising helps in finding out ineffective advertisement and advertising campaigns. The rate and size of return should be determined in advance. various information about the product and the company. The investment in advertising is a marketing investment and its objectives should be spelt out clearly indicating the results expected from the campaign. If the expected rate of return is achieved in terms of additional profits. Markets – so called control markets – which have had the regular advertising program. change in consumer attitudes. Most of the managers believe that the .
There may be two types measures (i) (ii) Direct measures: and Indirect measures:- (1) Direct Measures of Advertising Effectiveness Under direct measures. Cities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities. the normal sales level is . Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs. One experimental approach to measuring the sales effectiveness of advertising is test marketing. A comparison of sales of two periods or two periods or two markets may be done and the corresponding changes may be noted. This technique estimates the contribution that advertising has made to explaining in a co relational manner rather than a casual sales. This method is quite expensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. It would show how the changes in advertising expenditure have corresponding changes in sales volume. Media schedules expenditure levels or some combination of these advertising decision areas. (a) Historical Sales Method Some insights into the effectiveness of past advertising may be obtained by measuring the relationship between the advertising expenditure and the total sales of the product. First of all.advertisement directly affects the sales volume and hence they evaluate the effectiveness of the advertising campaign by the increase in the sales volume. The following are some of the methods that are generally used in measuring that advertising effects. a relationship between advertising and sales is established. A multiple regression analysis of advertising expenditure and sales over several time periods may be calculated. (i) Before-after with Control Group Design This classic design uses several test and control cities in this design two types of cities are selected. the variation in sales over the time periods covered in the study (b) Experimental Control The other measure of advertising effectiveness is the method of experimental control where a casual relationship between advertising and sales is established.
be measured by subtracting the amount of post campaign figure of sale from the pre campaign sale figures in test cities (ii) Multivariable Experimental Designs While the experimental design discussed above yields a reasonably accurate estimate of the effects of the advertising on sales.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. For any single medium. therefore used by some very large firm because of their diagnostic value. (2) Indirect Measures As it is very difficult to measure the direct effect of advertising on company’s profits or sales. most firms rely heavily on indirect measures. newspaper or journal sold the number of persons passing the billboards or riding in transit facilities. Marketers or advertisers may obtain an idea of exposure generated by the medium by examining its circulation or audience data which reveal the number of copies of the magazine. These measures do not evaluate the effects of advertisements directing on sales or profits but all other factors such as customer awareness or attitude or customer recall of advertising message affect the sales or profits or goals of the business indirectly. former Fords Director of Marketing Research.H. in this experimental model it is possible to evaluate how each individual medium behaves alone and in all possible to evaluate how each individual medium behaves alone and in all possible combinations with other media. The effect of advertising campaign. the advertisement must gain exposure. advertisement is bound to failure.The power of this multivariable factorial design is explained by G. Thus. The management is concerned about the number of target audiences who see or hear the organization message set in the advertisement. The most commonly used measures are – (i) Exposure to Advertisement In order to be effective. it is not successful in explaining the success or failure of the campaign itself. can then.Brown. Multivariable designs Produce these explanations and are. Without exposure. or the number of persons living in the televiewing or radio listening area. there is no other alternative but to use indirect measures. eight possible geographic areas have been exposed and eight have not been exposed. Despite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results. This number can be estimated by interviewing the numbers of the audience for different media. and radio sets at various points of time. . and the number of persons switching on their T.V.
hear or listen to the advertisement and then researchers ask question regarding the advertisement just to test the recall and then evaluate it. The assumption of this type of measure is that there is a direct relationship between the advertisements and the awareness. (iv) Comprehension Consumers generally use advertisements as a means of obtaining information about the product. brand or the manufacturer. for new products. In post-test method. a recall of the message content among a specified group or groups or prospective customers is measured within 24 hours of the exposure of the advertisement. Under this measure. But.(ii) Attention or Recall of Advertising Message Content This is one of the widely used measures of advertising results. Attention value is the chief quality of the advertising copy the advertisements cannot be said to be effective unless they attract the attention of the target consumers. the consumers are asked questions about the indication of recognition or recall after the advertisement has been run. Here consumers read. Various mechanical devices are being used in the western countries which provide indices of attention such as eye-camera etc. This test is conducted in the laboratory setting. This type of measure is also subject to the same criticisms as is applicable to direct measures of effectiveness (sales measures because awareness is also not the direct result of the advertisements. In a pre-test evaluation. they have already seen. It is also affected by many other factors. These measures assume that customers can recall or recognize what they have viewed or listened to. changes in awareness can often be attributed to the influence of advertising. Another measure of the variable is to ask questions about subjects how much they have comprehended a message they have . the consumers are asked to indicate the extent to which they recognise or recall the advertisement. (iii) Brand Awareness The marketers who rely heavily on advertising often appraise its effectiveness by measuring the customer’s awareness about the particular product or brand. One is pre-test and the other is post-test. There are two methods for evaluating the attention getting value of the advertisements. They cannot be informed unless they comprehend the message (grasp the message mentally and understand it fully). Various tests for valuating comprehension are available – One is recall tests – an indicator of comprehension because it is evident that consumers recall what they comprehend.
For this purpose. (vi) Action One objective of advertisement may be assumed to be to stimulate action or behavior. (v) Attitude Change Since advertising is considered to be one way of influencing the state of the mind of the audience towards a product. the change in sales levels are good indicators of the effectiveness of advertising. Logic suggests that measurement of sales is preferable to other measurements. 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. If it succeeds in attaining the objectives. One type of action that advertisers attempt to induce is buying behavior. But this is very difficult task because measurements are imperfect and imprecise. the results are very often measured in terms of attitudes among groups exposed to advertising communication. One may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. Thus. Several measures are used ranging from asking the questions about willingness to buy the likelihood of buying to the measurement of the extent to which specific attributes (such as modern or new) are associated with a product. The action or intention to take an action may be measured on the intention to buy measuring instrument. Advertising can be . it is very necessary to know how advertising affects the buyer’s behaviors. it to which it achieves the objectives set for it.recently heard or seen. The effectiveness of advertising can be measured by the extent. 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. By regular evaluation of the effectiveness. Under this type of measure. COMMUNICATION EFFECTS OF ADVERTISEMENT The management should attempt to evaluate the effectiveness of the advertising campaign if the firm’s advertising goals are to be achieved and the ad effectiveness is to be increased. One may ask typical target consumers from time to time such questions like ‘what did you think of our new commercial?’ and ‘Did it get the message across’? The answers of these questions will provide sufficient insight into advertising decision making. these above measures (direct or indirect) are used to evaluate the effectiveness of advertisements. The assumption is that if an increase in sales follows a decrease in advertising expenditure. service or organisation. consumers are asked to respond why they are interested in purchasing the product or brand.
An advertising budget that is spent on some poorly defined task or on undefined tasks may be regarded as an economic waste as compared to that spent to achieve the well defined objectives for which the results can be measured.said to be effective otherwise it will be a waste of money and time. of the advertisement or the low prices quoted during the sale of the superior quality of the product or absence of competition in the market on the day or the favorable.. Such events may influence the results of the advertising efforts. The advertisement is seen and the response is much greater than it is anticipated.5000 on advertisement with a local newspaper for a special sales even. Any social institution upon which a significant portion of our total productive efforts is expanded should be able to point to its specific accomplishment. (b) The reaction of competitors in the field cannot be guessed in anticipation and (c) The unexpected events (such as change in social and economic environment and the government policies etc. If we take a hypothetical case of a retailer who contract to spent Rs.) cannot be accurately anticipated. Weather conditions or the goodwill of the firm etc. In a very real sense the integrity of promotional activities rests on how well those activities work. The exact result of advertisement expenditure is very difficult to predict because. advertising can be recognized as a business activity like other activities. Indeed. Both practitioners and critics feel that promotional activities should only be accepted as socio – economic – institution with full right and privileges “when the means exist to prove that advertising super are productive rupees’ It is undoubtedly a source of embarrassment that we cannot exactly measure the effectiveness of advertising in definitive terms.(a) The reaction of consumer – buyers to the advertising efforts cannot be known in advance. The advertising executives are much concerned about the assessment of the effectiveness . What caused the success of sale? They message theme colors etc. It is so because the cause and effect – 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. The overwhelming success of the sale is the joint result of all the above variables and it is quite impossible to isolate the role of any one variable. it is a source of discomfort that specific results of advertising activities have not always been subject to precise measurement. But it does not mean that that we cannot measure the effects of particulars advertising effort. In this sense.
of the advertising efforts. For this purpose, the management needs answers to such questions as: was the advertising campaign really successful in attaining the advertising goals? Were our T.V. commercials as good as those of our competitors? Will the print advertisement, which we have designed, make consumers aware of our new product? To get answers of these questions, various tests of effectiveness (Pretests and post – tests ) 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. Pre- tests are conducted before exposing target consumers to the advertisements and post tests after consumers have been exposed to them. As indicated earlier, the advertisers are interested in knowing what they are getting for their advertising rupees, So 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. Pre test may be done either before an advertisement has been designed or executed after it is ready for public distribution or at both points. During protesting there is often research on three vital questions:(i) Do consumers feel that the advertisement communicates something desirable about the product? (ii) Does the message have an exclusive appeal that differentiates the product from that of the competitors? (iii) Is the advertisement believable? Although a lot of money is spent on protesting yet the advertisers like to confirm the results by post testing of their promotional campaigns due to the following reasons:(i) There is a need produce more effective advertising by retaining the good and removing the bad. (ii) The advertising executives can prove to the satisfaction of the management that a higher advertising budget will benefit the firm. (iii) There is a need for measuring the results to determine the level of expenditure that is most promising. Most 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. The advertisers are therefore, concerned with their impact on consumer awareness and attitude. The communication effect on sales may be presented in the following figure:Communication Effect on Sales Awareness builds a favorable or at least a curious attitude towards the product which leads to experimentation. If consumer is satisfied with the trial he may decide to purchase the product. There are many critical and unresolved issues in determining how to test the communication effects of advertising. Among these are:(1) Exposure Conditions – Should advertising be tested under realistic conditions or under more controlled laboratory conditions? (2) Execution – Protesting a finished advertisement as an expensive and time consuming. Does protesting a preliminary execution produce accurate and useful data? (3) Quality Vs. Quantity Data- Quantitative data are the easiest and the almost precise measurement. But qualitative data collected through interviews may provide information that short answer questions never can. Many types of advertising tests are conducted (different methods of pre tests and post – test are given in question number) In T.V. commercials are tested by inviting a group of people to the studio to view a program. The audience is then surveyed about the commercials. Print advertisements are tested through dummy magazine portfolio tests. Compunction Effectiveness Vs Sales Effectiveness It is easier to assess the communication effect of advertising than the sales effect. Many firms try to measure the effectiveness of advertising in terms of sales results but this practice is always misleading. Since, 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 exceptions. For example direct mail advertising can effectively be measured by the inquiries received. But in many situations the exact relationship between advertising activity and sales cannot be established satisfactorily. We can correctly assume that some sales will occur even though there is no advertising or little advertising or conversely there will be no increase in sales after the point of saturation is reached or it may be that sales will show a decreasing trend at this point in spite of large amount of expenditure on advertising is done. It is so because advertising is no the only variable that effect the sales.
Thus, we may conduct that sales effect of advertising is difficult to measure because a number of variables affect the quantum of tales and the contribution of advertisement cannot be measured separately unless all other variables are presumed to be constant. This situation is quite hypothetical and almost nonexistent. 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 size of the headline and the appeals used. Thus even if the advertising variable is separated this would still not answer the question about the effectiveness of the individual components of the advertising campaign. So advertisers try to measure the communication effect of the advertising. Suitability In small business firms where the marketing research resources are limited advertising managers may decide on less expensive and less relevant measures. The big business house, which has more access to research, may decide on the more relevant and expensive measures. Factors Affecting Advertising The final external factor in the planning framework concerns environmental factor social, legal, and global. Law forbids deceptive advertising. One solution is to create brand advertising that is vague and contains little specific information. However, 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. Thus, 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 excessively 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. Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other. IMPACT OF ADVERTISEMENT
Manufacturers know that advertising can help sell a new product quickly. Ads in the 1950s depicted women primarily as decoration or sex objects.Advertising has an important effect on a country’s economy. According to this view. Economic Impact Most economists believe that advertising has a positive impact on the economy because it stimulates demand for products and services. Other critics express concern over the way advertising has affected women and racial minority groups. advertising enables manufacturers and others to sell their products in larger quantities. 1. They argue that advertising creates a consumer culture in which buying exciting new products becomes the foundation of the society's values. By stimulating the development of new products. after the 1960s it became more . These economists also argue that by interesting consumers in purchasing goods. Other economists. They argue that the cost of advertising adds to the cost of goods and that most advertising simply encourages consumers to buy one brand rather than another. Many economists believe that increased competition leads to lower prices. Whether owing to the feminist movement or to women's increasing economic power. Advertising thus benefits consumers by helping lower prices. sell them at a lower price. Social Impact Advertising can have wide-ranging repercussions on a society. advertising helps increase competition. society. however. advertising simply moves sales from one company to another. The increased volume of sales enables companies to produce individual units at lower costs and therefore. believe that advertising is wasteful. ads continued to focus on their role as homemakers. and goals. pleasures. culture. enabling them to recoup the costs of developing new products. Some critics suggest that advertising promotes a materialistic way of life by leading people to believe that happiness is achieved by purchasing products. rather than increasing sales overall and thereby benefiting the economy as a whole. This is especially true in the United States where the advertising industry plays such a prominent role. thereby benefiting consumers and the economy as a whole. Although millions of women worked outside the home in the 1960s. and political system. 2. strengthening the economy by promoting the sale of goods and services.
offer less variety. many African American organizations and community activists continue to object to the way that alcohol and tobacco companies have seemingly targeted low-income minority communities with a heavy preponderance of outdoor advertising for their products. There is still considerable debate over how advertising influences public perception of gender and of particular ethnic groups. Native Americans. As a result. a diversity of magazines. if not free. society might not be alerted to harmful or potentially harmful conduct by the advertiser. As ads have begun to more fully reflect the lives of women and African Americans in the United States. it may exercise undue influence on the news media and thereby curtail the free flow of information in a free society. Reporters and editors. critics charge. Advertisers may affect media programming in other ways. radio. However. however. noncontroversial programming to avoid offending a mass audience. magazines. and broadcast television all receive their primary income from advertising. At the same time. The way advertising has depicted racial minorities has also been harmful. Asians. Most members of the news media deny that pressure from an advertiser prevents them from pursuing news stories involving that advertiser. or even be subject to government control through subsidies. and Eastern Europeans. Due to the influence of the civil rights movement. some critics warn that because advertising plays such a major economic role. Newspapers. advertisers by the 1980s had begun to depict African Americans as students. companies that sponsor TV programs prefer relatively wholesome. or they might be considerably more expensive. professionals. may be hesitant to develop a news story that criticizes a major advertiser. increasing attention has been paid to the way in which advertising shows other ethnic groups. Without advertising. and free entertainment might no longer be widely available. to the public. many ads today still emphasize a woman’s sexuality. Advertising has a major social impact by helping sustain mass communications media and making them relatively inexpensive. but some members of the media acknowledge that they might not be inclined to investigate an issue aggressively if it threatened to offend a major advertiser. In-depth news programs. This preference . too. or business people. However. For example. for example. however. many of these forms of mass communication might not exist to the extent that they do today. African Americans were usually shown in a subordinate position.common to see women depicted in professional roles. Prior to 1960. including Hispanics.
New research suggests that adolescent boys are also being influenced by advertising images of bulked-up. Because advertisers are especially interested in attracting the 18 to 34 year olds who account for most consumer spending. If the ratings show that a program is not attracting large audiences. The impact of television on young children has received much attention. many become dissatisfied with their own body image. Political advertising enables candidates to convey their positions on important issues and to acquaint voters with their accomplishments and personalities. Television . Advertising professionals did not become involved in electoral campaigns until the 1950s. But since then.causes TV networks to emphasize this type of programming. In 1998 more than $467 million was spent on election campaigns in the United States. which causes a program to be canceled. and may develop eating disorders in pursuit of a thin figure. advertisers often withdraw support. As a result. 3. and may even take drugs that have harmful side effects in order to develop more muscle. There is also concern about the way in which adolescent girls respond to advertising that features beautiful. television shows are often developed with this audience in mind. become dissatisfied with their own bodies. devote large amounts of time to weightlifting. making them more susceptible to questionable advertising claims. but some elderly people no longer process messages as easily as younger people. Research indicates that many adolescent girls are unduly influenced by this standard of beauty. thin models. buffed bodies. Research suggests that children see television advertising as just another form of programming and react uncritically to its messages. political advertising has grown in sophistication and complexity. As a result. history. shows that are more likely to interest and to be of value to older audiences are not produced. Political advertising is a relatively new development in U. That amount of spending placed political advertising in the ranks of the country’s 30 leading advertisers that year. The result is that society may be denied the benefits of being able to view challenging or highly original entertainment programs or news programs on controversial issues.S. Those over the age of 60 are thought to be less influenced by advertising. Political Impact Advertising is now a major component of political campaigns and therefore has a big influence on the democratic process itself. which makes them especially vulnerable to advertising. particularly among 18 to 34 year olds.
making it necessary for candidates to raise money continually. voters are bombarded with image advertising rather than being acquainted with the candidate’s positions. however. Issues are simplified. Critics say this factor jeopardizes 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. encourage aggressive individualism. With the globalization of the world economy. and candidates are “packaged and sold” much like a consumer product. but television and radio networks have resisted this idea. thereby distorting the political process. Many advertising campaigns. causing the world to become increasingly homogeneous. multinational corporations often use the same advertising to sell to consumers around the world. have universal appeal. 4. even after they have been elected to office. As a result. Cultural Impact Advertising can affect cultural values. Because of the high cost of television ads. They contend that this practice is harmful to good government. Various campaign finance reform proposals. Some critics argue that advertising messages are thus helping to break down distinct cultural differences and traditional values. however. For example. which may clash with the traditional cultural values of a country where the collective or group is emphasized over the individual or humility or modesty is preferred to aggressiveness. The ad ridiculed a competitor by depicting a small hamburger patty dwarfed by a . Some advertising messages. Humor in advertising has made many ad campaigns widely popular. Candidates can also use advertising to respond effectively to the charges of their opponents. Some reform proposals have called for free airtime. Critics of political advertising also charge that the 30-second television spot has become more important to a political campaign than a thorough discussion of the issues.advertising is especially effective for candidates running for national or statewide office because it can reach so many people at once. a popular ad campaign for a fast-food chain with the slogan “Where’s the beef?” became part of the 1980 Democratic presidential primary campaign between Gary Hart and Walter Mondale. or they contribute to culture in a positive way. have tried to address the impact of television advertising on political campaigning. overriding cultural differences. the costs of political campaigns have skyrocketed. for example. in some cases achieving the status of folklore or taking on new life in another arena.
During a primary debate one of the candidates used the ad slogan to suggest that his opponent’s campaign lacked substance.huge bun. .
CHAPTER-3 RESEARCH METHODOLOGY AND DESIGN RESEARCH PROBLEM Advertising these days is the major tool of promotion and without advertising it is very difficult for any company to survive in this competitive world. The research would be regarding the effects of advertising on the customers in with special reference to the students in Delhi region. RESEARCH HYPOTHESIS Hypothesis I 7Ho Ha : There is no significant impact of advertisement on the students in Delhi. OBJECTIVES • • • To study the impact of advertisement on students in Delhi To study the association between frequency of advertising and repeat purchase level of customers To study the difference between the impact of advertisement on college and school students. : There is a significant impact of advertisement on students in Delhi. The customers tend buy the product when they watch the advertisements and what would be the major focus of the research is that the frequency of advertisements has a impact on the repeat purchase. . So is the practice made by the companies fruitful or it is only an expense and whether there is a significant difference in the attitudes of school students and the college students for the advertisements. The youth being one of the major people amongst the population being targeted by the companies and the companies now days are coming out with the products which are specially meant for the youth. So what really needs to be found is that do the advertisements tend to boost the sales of the company as companies are investing huge amounts in the advertising activities.
: Students in Ashok Vihar.Hypothesis II Ho Ha : There is no significant association between frequency of advertising and : There is a significant association between frequency of advertising and repeat purchase level of customers. Rohini. SAMPLING TECHNIQUE Universe Population Sampling Frame Sample : All Students in India. Model Town. . Hypothesis III Ho Ha : There is no significant difference in the impact of advertisement on college : There is a significant difference in the impact of advertisement on college students and school students. SIGNIFICANCE OF STUDY This would help us to know the impact of advertisements on the students who live in Delhi and would make it clear that what companies should do more in order to attract the youth towards them. : Students in North Delhi. SCOPE OF STUDY Since my research is comprises of the students only in Delhi Region. so future researches can be conducted on the students all over India to get better and accurate results. Pitampura. students and school students. repeat purchase level of customers. : Students in Delhi. TYPE OF RESEARCH • Descriptive Type of Research.
: Journals. Companies these days are investing huge amounts just to make their products known amongst the people. DATA COLLECTION TOOL Primary Data Secondary Data : Questionnaire. Survey Method.Sample Size schools) : 100 Students (50 students in college and 50 students in Sampling Technique : Convenience Sampling EXPECTED OUTCOME OF THE RESEARCH The outcome which is expected is that there would be a considerable impact of advertising on the students. CHAPTER-4 HYPOTHESIS TESTING. Websites. as students these days are more inclined towards the latest trends prevailing in the market and also like to link themselves with the known brands and products. Magazines. Reports. DATA ANALYSIS AND INTERPRETATION . so that they could make attract customers and make them buy those products.
From where do you get information about the new product? Answers Television Newspapers Magazines Internet Peers (Family / Friends) No.1. Which means advertisement would be the best medium to get them the information to the youth . of respondents 28 72 . 2. of respondents 42 26 11 6 15 Interpretation: A large size of population is influenced by Television and Newspapers. Which form of advertisement do you like more? Answers Still image Moving image No.
of respondents 62 38 .Interpretation: People are more affected by advertisement with moving image. For you advertisement is a source of : Answers Information Entertainment No. 3. Specially in this case where 50 college and 50 school student is contributing to this survey result it is more likely to be students are from Delhi would like more moving image advertisement rather than going for the still or print media advertisement.
Does entertaining advertisement affect your opinion about the product? Answers NO Yes No.Interpretation: More number of Delhi’s Student consider advertisement as a source of information rather than a source of entertainment. Out of 100 student 62% of them are going for the advertisement because of the information that they will get from that for example latest trend and what phone going to be launch in the market etc. of respondents 26 74 . 4.
Interpretation: Entertaining advertisement does affect the opinion of customer about the product which is one of the objective of the project to find out where as Advertisement affects the customer perception towards the product. Here from this question we got to know if the advertisement is more interesting It would be liked by the students more and more. 5. This has been told by the 74% of the students from the Delhi and from the schools and college going as well. of respondents 87 13 . Does information provided in advertisement affects your opinion about the product? Answers Yes No No.
of respondents 63 37 . 6.Interpretation: Information provided in the advertisement affect very much on the opinion of consumers about the product. Does language used in advertisement affects your opinion about the product? Answers Yes No No. which means 87% of the students are said yes it is impact on there purchasing behavior so it is most important factor for the students to target on.
Which is the one of objective to reach out because student looking for more trendy and stylish advertisement pattern which is told by the 63% of students from school and college. of respondents 69 31 . 7. Does presence of any celebrity in the advertisement affects your opinion about the product? Answers Yes No No.Interpretation: Language used in the advertisement affects a lot on the opinion of consumers about the product.
of respondents 52 48 . 8. Does intensity (frequency) of the advertisement affects your opinion about the product? Answers Yes No No.Interpretation: Presence of any celebrity affects on the opinion of consumers about the product because most of the student are influence by the celebrity 69% of the students are given there views that yes if any celebrity will comes to the ad that will influence there purchasing behavior.
9. Does presence of social issues in the advertisement affects your opinion about the product? Answers Yes No No.Interpretation: The effect of intensity is very powerful on the opinion of consumers about the product. This is one of our objective to be reach out also because the frequency of advertisement will increase the brand recall of the students which is admitted by the 52% of the students from Delhi. of respondents 59 41 .
Do you think advertisement helps in increasing sales of any product? Answers Yes No No.r. In coming months of advertisement there are lot many social issues covered by the organization w.Interpretation: Presence of social issues in advertisements affects very much on the opinion of consumers about the product.t social advertisement yes 63% of the student changes there buying behavior only because of that. 10. of respondents 87 13 .
Availability of product E. Promotion. Advertisement B. 1. . 3. F. HYPOTHESIS TESTING Hypothesis I Ho : There is no significant impact of advertisement on the students in Delhi. Strongly Agree 2. A. Money C. Agree. Price D. Strongly Disagree. Quality of the product. What impact is most for the purchasing of any new product for you? Please rate this factor on 1.Interpretation: Advertisement helps very much in increasing the sales of any product. C. It has been proved from this question that it will impact on the customer directly if the company launched any good advertisement. Disagree 5. Neutral 4. Brand. 87% of the people suggested for the same as per our study.
Advertisement Money Price Availability Quality of product.0 1.0 1.0 .0 Residual .0 1.0 .00 17.0 10.00 21. Brand.0 .0 1.0 1.00 40.00 Total Money Observed N 1 1 1 1 1 5 Price Observed N 1 1 1 1 1 5 Availability Expected N 1.0 Residual .00 Total .0 1.0 .0 .0 1.00 45.00 34.0 .0 1.00 45.00 11.0 1.00 31.00 2. Strongly Agree Agree 10 45 45 15 the 44 29 37 21 34 17 23 34 39 27 Neutral Disagree 11 40 1 2 4 31 7 22 6 12 12 9 10 14 Strongly Disagree 18 18 3 33 7 10 10 Chi-Square Test Advertisement Observed N 1 1 1 1 1 5 Expected N 1.0 .0 .0 .00 18.0 .00 18.0 .0 1.0 1.0 1.0 1. Promotion.0 Residual .0 Expected N 1.0 .00 Total 3.00 4.
00 27.0 Residual .000 1.0 .00 29.000 4 Quality .0%) have expected frequencies less than 5.000 4 Availability .600 3 Promotion .0 .3 Residual .0 1.3 1. .00 9.0 Residual .3.000 4 Price . b 4 cells (100.000 4 Money .0 .0 1.0%) have expected frequencies less than 5.0 .0 .0 1. Sig.3 10.00 12. The minimum expected cell frequency is 1.00 12.7.0 1.00 23.0 .b) df Asymp.0 .00 44.0 1.00 14.00 39.0 1.00 34.0 .000 Expected N 1.0 Quality 6.0 1.000 4 1.0.3 -.0 Expected N 1.0 Brand Observed N 2 1 1 1 5 Promotion Observed N 1 1 1 1 1 5 Test Statistics Advertisement ChiSquare(a.0 1.000 1.00 15.0 .0 1.8 -.000 1.0 1.000 .00 Total Observed N 1 1 1 1 1 5 Expected N 1.3 1.3 -. .00 Total 10.00 22. The minimum expected cell frequency is 1.000 1.896 a 5 cells (100.00 33.00 7.00 37.0 .00 Total Observed N 1 1 1 1 1 5 Expected N 1.000 4 Brand .0 Residual .0 .00 Total 1.0 .0 1.0 1.3 1.
092 5 .760 .043 5 5 1 .989(**) .690 .278 .021 5 .933(*) .575 5 5 1 . .198 5 -.227 . (2tailed) N -.179 .135 .126 Brand -.514 5 .01 level (2-tailed).342 .373 5 -. (2tailed) N -.916 5 .774 5 -.828 .916 5 . (2tailed) N .450 5 .573 5 .227 .828 Price Pearson Correlation Availability Pearson Correlation Quality Pearson Correlation Brand Pearson Correlation Promotion Pearson Correlation * Correlation is significant at the 0.650 5 .340 .179 Quality -.392 .046 5 .340 Sig.198 5 -.816 .516 .760 .989(**) . (2tailed) N Money Pearson Correlation -.774 5 -.084 5 5 .046 5 .092 5 .448 Sig.021 5 . (2tailed) N -.538 5 -.839 5 .816 .372 .891(*) .05 level (2-tailed).933(*) .001 5 5 1 .789 5 . (2tailed) N 1 Money -.126 .342 Sig.885(*) Promotio n -.538 5 -.839 5 .066 .573 5 .514 5 .136 5 5 1 .448 Price .372 .828 5 .392 Sig.450 5 1 .373 5 -.690 .885(*) .278 Sig.135 .166 Sig.CORRELATION TEST Correlations Advertisem ent Advertisem ent Pearson Correlation Sig.714 5 5 1 . ** Correlation is significant at the 0.828 5 .891(*) .789 5 .516 Availabilit y .650 5 .066 .166 . (2tailed) N .
Agree.04. Relative D.96 or . Neutral 4. Disagree 5.33% so major factor for the student is not the advertisement but the money that they have. Strongly Agree 2.0. Friend C. 3. Strongly Disagree. Strongly Agree 42 34 18 15 29 Agree 38 34 17 14 39 Neutral 5 1 14 7 6 Disagree 8 11 31 31 19 T-Test One-Sample Statistics . Ha : There is a significant impact of advertisement on students in Delhi.As per the correlation and chi square test suggested that the Advertisement does not seems to be significant here and there is no significant impact of the advertisement on student because if we asked for the most valuable and the crucial things for the student to make a purchase decision our correlation test suggested that it would be pocket money and the quality of that product which is also correlation by the 93. This means (by the subtraction rule) that the probability that the standard deviation would be greater is 1 . A.44. Promotion. If you have a money from where you get the maximum information about the product that you want to purchase? Please rate this factor on 1. Advertisement is impacted negatively as per the chi square test tells us that the probability that a standard deviation would be less than or equal to is 0. 2. Direct sales team E. Strongly Disagree 7 20 20 33 7 Advertisement Friend Relative Direct sales team Promotion. Advertisement B.
293 .017 .293 . Error Mean 8.988 5 .9053 5.20366 6.00000 Lower -2.815 5 -.00000 20.633 5 -.51920 11.038 5 1 Relative -.9290 28.387 .071 .00000 20.899(*) .45755 2.038 5 -.146 . (2-tailed) N Pearson Correlation Sig.242 .0000 20.3526 Upper 42.009 .893(*) .0947 34.133 5 -.988 5 .520 5 -.893(*) .438 3.00000 20.0710 11.0000 20.133 5 1 Promotion .0000 20.002 . Deviation 18.695 5 5 Friend .7770 2.40175 14. (2-tailed) . (2-tailed) N Promotion Pearson Correlation Sig.0000 20.922 3.763 .860 3.7770 37.147 df 4 4 4 4 4 Sig.095 5 -.00000 20.813 . (2-tailed) N Friend Relative Pearson Correlation Sig.041 5 5 -.041 5 .0000 Std.146 .6474 Correlations Advertisement 1 5 .21267 Std.05 level (2-tailed).993 5 5 -.695 5 1 Advertisement Pearson Correlation Sig.e.520 5 .097 6.005 .633 5 -.005 . As per the our alternate hypothesis suggested that the it makes sense when we are saying the advertisement makes impact over the student in Delhi Correlation test suggested that the significance level of the advertisement is much higher i. 71% as t test reflects that which means advertisement does impact when we are saying that .43953 6.899(*) .815 5 1 Direct Sales -.993 5 -.009 .09902 6.34394 14. (2-tailed) N * Correlation is significant at the 0.91548 5.35610 One-Sample Test Test Value = 0 95% Confidence Interval of the Difference Advertisement Friend Relative Direct Sales Promotion t 2.242 .036 .8429 2.813 .N Advertisement Friend Relative Direct Sales Promotion 5 5 5 5 5 Mean 20.763 .1571 37. (2-tailed) N Direct Sales Pearson Correlation Sig.095 5 5 .387 .035 Mean Difference 20.
So our alternative hypothesis has been proved that it makes impact to the student of Delhi.Student customer behaviour influence by the various factor. Hypothesis II Ho : There is no significant association between frequency of advertising and repeat purchase level of customers. .
(2-tailed) N Offers Pearson Correlation Sig. Does advertisement is appealing you most of time to purchase same product or what factor most of time influence you to repurchase the same brand? Please rate this factor on 1.01 level (2-tailed). Advertisement D.357 .979(**) .974 5 1 5 ** Correlation is significant at the 0.725 .674 .020 .974 5 5 1 CS .556 5 -.763 . Quality B.467 .004 5 1 Advertisement -. (2-tailed) N CS Pearson Correlation Sig.004 5 -.599 .166 5 .1. (2-tailed) N Necessity Pearson Correlation Sig.427 5 .218 .486 5 1 Necessity .725 5 -. A.133 5 . Necessity E. (2-tailed) N 5 . 3.285 5 -.725 . Agree.416 .467 . Offers Strongly Agree 44 44 20 56 19 Neutra l 6 1 19 18 6 Disagre e 9 10 31 2 19 Strongly Disagree 7 12 20 10 17 Quality Customer service’ Advertisement Necessity Offers Agree 34 33 10 14 39 Correlations Quality Quality Pearson Correlation Sig.285 5 .486 5 .133 5 .427 5 -.725 5 1 Offers .674 .020 . Strongly Agree 2.218 .213 5 5 -.416 .599 .763 .357 . Correlations .979(**) .213 5 -. Neutral 4.166 5 -.556 5 5 -. Customer service’ C. Strongly Disagree. (2-tailed) N Advertisement Pearson Correlation Sig. Disagree 5.
357 .725 5 -.285 1 CS .0000 N 5 5 5 5 5 5 5 Std.0000 20. .33167 9.133 5 .213 5 Advertisement -.427 5 -.974 5 1 5 5 ** Correlation is significant at the 0. (2tailed) 1.44983 17.38083 3.0000 5 Paired Samples Correlations N Pair 1 Pair 2 Pair 3 Pair 4 Quality & Advertisement CS & Advertisement Advertisement & Necessity Advertisement & Offers 5 5 5 5 Correlation -.556 Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Lower 27.58 339 27.66060 Pair 1 Pair 2 Pair 3 Pair 4 Quality Advertisement CS Advertisement Advertisement Necessity Advertisement Offers Mean 20.44983 7.427 .416 .725 .30 249 t .974 5 Offers . Error Mean 9.0000 20.725 . (2-tailed) N Advertisement Pearson Correlation Sig.96869 3.33167 3.000 df 4 4 Sig.416 . (2-tailed) N CS Pearson Correlation Sig.73415 7.0000 20.81853 7.416 -.763 . 00000 .01 level (2-tailed). Deviatio n 22.674 .9886 3 Std.18535 18.33167 3. 00000 Std.674 .218 .44983 8. (2-tailed) N Necessity Pearson Correlation Sig.020 .44983 20.467 -.0000 20.486 .725 5 1 5 -.97618 7.0000 20.133 5 . Error Mean 7.599 .427 5 .556 5 -.213 5 -. (2-tailed) N Offers Pearson Correlation Sig.218 -.000 1.166 5 -.833 62 . Deviation 17.166 5 .004 5 1 5 -.020 .934 79 9.33167 7.979(**) .763 .467 .467 .000 .285 5 . Paired Samples Statistics Std.000 Mean Pai r1 Pai r2 Quality Advertisement CS Advertisement .30 249 Upper 27.486 5 1 5 -.556 5 Necessity .93095 3.2148 6 21.Quality Quality Pearson Correlation Sig.599 .0000 20.486 5 .58 339 27.357 .725 .218 .357 Sig.979(**) . (2-tailed) N 5 .004 5 -.
Watching advertisement one time B. 00000 2. Does advertisement is appealing you most of time to purchase same product if that product advertisement will repeat continuously please state when you influence most? Please rate this factor on 1. Watching advertisement every day. A.Pai r3 Pai r4 Advertisement – Necessity Advertisement Offers .000 .e. No advertisement impact. Strongly Agree 2. Neutral 4.000 00 23.347 4 4 1. Watching advertisement every weekends D. Strongly Agree Neutra Disagre Strongly . 3. 2.9% of the customer happiness and in the ANOVA test of advertisement series will have negative impact it has been prove that no significant association between frequency of advertising and repeat purchase level of customers Ha : There is a significant association between frequency of advertising and repeat purchase level of customers. Strongly Disagree.000 .99 772 29.99 772 . Watching advertisement in a month.47 481 13. C.7381 5 12. Agree.47 481 17. Disagree 5.761 94 29.61 603 5.746 As per the null hypothesis concern i. E. no significant association between frequency of advertising and repeat purchase level of customers which seams to be true from the t test and regression test which is done by the SPSS ANOVA which suggest there are various other factor which play important role while customer going for the purchasing for example customer service customer service of the product and the quality will represent 97.8841 0 10.
00000 20.402 .One time Every day Every weekends Month No Adv impact Agree 19 44 39 12 10 13 33 27 14 11 l 6 1 19 18 16 e 39 10 11 28 29 Disagree 23 12 4 28 34 One-Sample Statistics N One Everyday Weekends Month No 5 5 5 5 5 Mean 20.604 2.017 5 5 5 .00000 20.108 df 4 4 4 4 4 Sig.4835 Upper 35.0205 10.510 3.066 .00000 Lower 4.872 4.195 5 -. (2tailed) N .804 .502 5 -.0000 Std.81853 13. Error Mean 5.071 Weekends -.1246 36.214 5 -.101 5 -.101 5 -.40967 17.195 5 5 1 .61577 10. (2-tailed) .214 5 5 1 .5438 6. (2tailed) N 1 Everyday -.270 5.941(*) .0000 20.983(**) Mean Difference 20.930(*) .672 Sig.1246 3.88577 One-Sample Test Test Value = 0 95% Confidence Interval of the Difference One Everyday Weekends Month No t 3. Deviation 12.941(*) No .9795 29.96869 6.86826 Weekends Pearson Correlation Month Pearson Correlation .67479 7.11555 3.071 Sig.4086 42.023 .5914 -2.40588 4.672 .0000 20.804 Month .909 5 .4562 33.633 .909 5 1 .502 5 -.402 Sig.00000 20.693 .623 .004 . (2tailed) N -.0000 20.017 5 .693 .0000 20.54977 7.031 .5165 Std. (2tailed) N Everyday Pearson Correlation -.00000 20.015 Correlations One One Pearson Correlation Sig.
Hypothesis III Ho : There is no significant difference in the impact of advertisement on college students and school students. And form the T-test suggested that it is valid because until or unless organization not fleshing there advertisement regularly Student may changed there brand so if the company doing advertisement once in a month would not required to do that because if they will not do so 98. Advertisement B. Environment of school or College D.983(**) . ** Correlation is significant at the 0. Agree. A. Family E. 3. Do you think in the only advertisement can change you purchasing power decision or other factor also influences that? Please rate this factor on 1.252 5 -. F.262 5 .022 5 1 . Neutral 4. (2tailed) N -.05 level (2-tailed).01 level (2-tailed).930(*) . C.No Pearson Correlation .623 . Strongly Disagree. So significance level is much higher in the case of Daily advertisement for the student. In the case of Alternate hypothesis which suggested that There is a significant association between frequency of advertising and repeat purchase level of customers so it means if the frequency of detriment increase the repurchase will increase.003 5 * Correlation is significant at the 0.633 Sig. Movie Strongly Agree 22 56 31 32 37 38 Neutra l 17 1 2 1 1 2 Disagre e 14 11 11 25 2 11 Strongly Disagree 33 12 9 1 12 12 Advertisement Personal contact.3% of the customer does not know about that product. Strongly Agree 2. Environment Family Friends. Disagree 5. Friends. Personal contact. Movie Agree 14 20 47 41 48 37 . 1.
Which way of advertisement impacts you and your personal expenses. 1. Strongly Disagree. Strongly Agree 2. 3. A.Ha : There is a significant difference in the impact of advertisement on college students and school students. Neutral 4. Brand reconnect D. Out of 100 student 62% of them are going for the advertisement because of the information that they will . Emotionally B. Agree. • More number of Delhi’s Student consider advertisement as a source of information rather than a source of entertainment. Promotionally Strongly Agree 37 35 33 38 Agree 20 29 47 49 Strongly Neutral Disagree Disagree 1 14 28 1 2 1 11 11 11 24 7 1 Emotionally product knowledge Brand reconnect Promotionally It is significant from the study is there is major impact of advertisement on the school and the college student although it may vary from the product and service provided by the company because as per the study college student will go for accessories but the school student go for the play and for the sports thing for example different gaming and cartoon things or health drinks. Spreading the product knowledge C. Please rate this factor on 1. CHAPTER-5 MAJOR FINDINGS AND DISCUSSIONS • People are more affected by advertisement with moving image. Specially in this case where 50 college and 50 school student is contributing to this survey result it is more likely to be students are from Delhi would like more moving image advertisement rather than going for the still or print media advertisement. Disagree 5.
.r. • Presence of social issues in advertisements affects very much on the opinion of consumers about the product. Which is the one of objective to reach out because student looking for more trendy and stylish advertisement pattern which is told by the 63% of students from school and college. • Presence of any celebrity affects on the opinion of consumers about the product because most of the student are influence by the celebrity 69% of the students are given there views that yes if any celebrity will comes to the ad that will influence there purchasing behavior. In coming months of advertisement there are lot many social issues covered by the organization w. • Information provided in the advertisement affect very much on the opinion of consumers about the product. This has been told by the 74% of the students from the Delhi and from the schools and college going as well. • The effect of intensity is very powerful on the opinion of consumers about the product.t social advertisement yes 63% of the student changes there buying behavior only because of that.get from that for example latest trend and what phone going to be launch in the market etc. • Entertaining advertisement does affect the opinion of customer about the product which is one of the objective of the project to find out where as Advertisement affects the customer perception towards the product. which means 87% of the students are said yes it is impact on there purchasing behavior so it is most important factor for the students to target on. Here from this question we got to know if the advertisement is more interesting It would be liked by the students more and more. This is one of our objective to be reach out also because the frequency of advertisement will increase the brand recall of the students which is admitted by the 52% of the students from Delhi. • Language used in the advertisement affects a lot on the opinion of consumers about the product.
Advertising is criticized for its presenting misleading information.96 or .44.33% so major factor for the student is not the advertisement but the money that they have. 1964. subliminal seduction messages and persuading people to buy things they no longer need (Katona. Pollay. All the foregoing aspects are apt to . (O’Donohoe. fake claims.04.• As per the correlation and chi square test suggested that the Advertisement does not seems to be significant here and there is no significant impact of the advertisement on student because if we asked for the most valuable and the crucial things for the student to make a purchase decision our correlation test suggested that it would be pocket money and the quality of that product which is also correlation by the 93. this industry is blamed of spreading unsustainable consumption patterns around the world over and encouraging excessive consumption.1993). CHAPTER-6 CONCLUSIONS AND RECOMMENDATIONS CONCLUSION Despite the fact that advertising is an effective tool for the business along with its being an important element of the modern age and a fast growing industry. Pollay and Mittal. This means (by the subtraction rule) that the probability that the standard deviation would be greater is 1 . the public image of advertising is still a matter of great concern. promoting adverse values.1995). Advertisement is impacted negatively as per the chi square test tells us that the probability that a standard deviation would be less than or equal to is 0. 1986.0. Again.
2001. They are a large and ever growing segment of the populace. That is why. cultural values and on the business itself. guaranteeing the quality products and an effective means to curtail prices. 1981. Calfee and Ringold. 1986). 1987. 2000). They are the outstanding asset for the product and service sellers as they are the trendsetters and early adopters. Wright. establish brand loyalties that continue long after the college days. The results of the study show very significant negative feelings of the respondent about the social consequences of the current advertising. They have dominating role in opinion making. Pollay and Mittal. The results . it is critical of the advertising concerns to follow the public opinion advertising for its for reaching impact on the economy. The results of the research clearly reveal that most of the respondents feel that the ongoing advertising is unethical because of its deceiving. confuse the people by creating clutter effect.. exaggerating nature for and putting more emphasis on the sex appeals. 1993. Russell. 1996. At the same time majority of the respondents consider the advertising to be an important tool for the economic growth. They can influence the purchasing decisions of their peers and parents. Wolburg and Pokrywczynski. and ensure a higher standard of living after their graduation (Morton. Therefore. The students represent a sizeable segment of the society. They have considerable amount of money at their disposal. RECOMMENDATION This research study is an endeavor to secure adequate evidence on the consequences of the advertising and their relationship to the general attitude of the college students it. (Wills and Ryans. promotes materialism and inculcate obscene values in the youth populace of Delhi. improvement of standard of living.hinder its effectiveness as well as efficiency as a marketing tool (Beales et al. 1982). exclusive studies on the students’ attitude towards advertising are being carried out in different parts of the world today. The advertising is considered to be the sole source which convinces the people to buy the products that they no more need. To exploring the college students’ attitudes towards advertising is important for several reasons. The results of the study also depict that the college students demand lexical changes by the regulatory authorities with the view to controlling the advertising.
Advertising Management – concepts and cases Mahendra Mohan. Advertising and Salesmanship – P. Also.decisionanalyst. Advertising and Sales Promotion Management – S. www.Saravanavel.google. general attitude of the college students towards the advertising.V. The growing ethical.L.Ratra 6. social and regulatory concern of the college students as indicated in the results of the study invites attention of the marketers and the regulatory authorities like to avoid any disruption in the positive. Strategic Brand Management – Kapferer 5.com . 2.com 3. economic and social consequences of the advertising on the part of the marketers and the regulatory authorities before they launch any campaign.com 2.show an overall. general attitude towards the advertising. www.Gupta. Marketing Management – Philip Kotler 3. V. REFERENCES Books 1. www. Internet 1.paulbeelen. positive. Branding – Geoffrey Randoll 4.books. the results of the study highlight the technique as to how to assess and evaluate the ethical.
.... Female [ ] a. Service class [ 1... Sex: Age: a..... 20 to 30 c. 30 to 40 d... Student c....... From where do you get information about the new product? a.... House hold [ [ [ [ [ [ ] ] ] ] ] ] ] ] b.....APPENDIX Name: ………………………………... Television [ ] .. Business class [ d.. Below 20 b... Above 40 Occupation: a.. Male [ ] b.
No a. Yes b. Which form of advertisement do you like more? a. Yes b. Entertainment a. No the product? a. Does language used in advertisement affects your opinion about the product? 1. Internet [ [ [ ] ] ] ] [ [ ] ] e. For you advertisement is a source of a. Which type of advertisement influences you more? . Yes b. Peers (friends/family) [ 1. No the product? a. Newspapers c. No product? a. Does presence of any celebrity in the advertisement affects your opinion about 1. No a. Yes b. Does presence of social issues in the advertisement affects your opinion about 1. Yes b. Still image (Magazines / Newspapers) b. Moving image (Television / Internet) 1. No a.b. Yes b. Does an entertaining advertisement influences your opinion about the product? 1. Does intensity of the advertisement affects your opinion about the product? 1. Information b. Do you think advertisement helps in increasing sales of any product? 1. Yes b. Does information provided in advertisement affects your opinion about the 1. Magazines d. No [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] 1.
a. Local advertisement [ [ ] ] . National advertisement b.
com 3.Ratra 6. www.com . Advertising Management concepts and cases Mahendra Mohan. Internet 1.google. Branding Geoffrey Randoll 4. 2. Strategic Brand Management Kapferer 5.V.paulbeelen. V.Gupta. Advertising and Sales Promotion Management S.L.REFERENCES Books 1. Advertising and Salesmanship P. www.decisionanalyst.Saravanavel. www.com 2.books. Marketing Management Philip Kotler 3.
. Female [ ] a. Above 40 Occupation: a. Still image (Magazines / Newspapers) b... House hold [ d. Does an entertaining advertisement influences your opinion about the product? 5... Below 20 b. Student [ [ [ [ [ ] ] ] ] ] ] ] ] b. Magazines d.. Yes b.... Moving image (Television / Internet) 3... Television b. No [ [ [ [ ] ] ] ] [ [ ] ] 4. From where do you get information about the new product? a.... Information b.APPENDIX Name: Sex: Age: a. Which form of advertisement do you like more? a.... 30 to 40 d.. Newspapers c. Male [ ] .. Yes b. Business class [ c. Peers (friends/family) [ 2. Service class [ 1. Does information provided in advertisement affects your opinion about the product? a..... 20 to 30 c....... b.. No [ [ ] ] . Entertainment a.. For you advertisement is a source of a. Internet [ [ [ [ ] ] ] ] ] e..
Yes b. Which type of advertisement influences you more? a. Yes b.6. Local advertisement [ [ ] ] . Yes b. Yes b. Does language used in advertisement affects your opinion about the product? a. No [ [ ] ] 11. Does intensity of the advertisement affects your opinion about the product? a. No [ [ ] ] 9. Yes b. No [ [ ] ] 10. Do you think advertisement helps in increasing sales of any product? a. National advertisement b. Does presence of social issues in the advertisement affects your opinion about the product? a. No [ [ ] ] 7. No [ [ ] ] 8. Does presence of any celebrity in the advertisement affects your opinion about the product? a.
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