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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.
advertising had established itself in radio to such an extent that advertisers were producing many of their own programs. Bernbach believed that advertising had to be creative and artistic or it would bore people. founder of the Leo Burnett agency in Chicago. 'You don't have to be Jewish to love Levy's. founder of Doyle Dane Bernbach in New York City. and witty.Advertising agencies initially focused on print. when Bernbach's agency picked up the account for the Henry S. The ads his agency created were understated. The chrome strip on the glove compartment is blemished and must be replaced…We pluck the lemons. As the American economy soared in the 1950s. and David Ogilvy. so did the sale of TV sets and the advertising that paid for the popular new shows. the Volkswagen ads stood out because they admitted failure in a witty way and gave facts in a believable manner that underlined the car's strengths. The ad's copy explained that 'this Volkswagen missed the boat. No longer did advertising simply present the product benefit. the agency created an ad that entertained New Yorkers and provided fodder for many conversations. you get the plums. But the introduction of radio created a new opportunity and by the end of the 1920s. Leo Burnett. . At a time when American cars were getting bigger and bigger and the advertising for them trumpeted that bigger was better. it was not immediately embraced.' An equally unconventional ad carried the headline 'lemon' beneath a photo of an apparently flawed Volkswagen. The ad showed a Native American eating a slice of the bakery's rye bread with the headline. Television had been introduced in 1940. The tone of the advertising was also changing. For example. Instead it began to create a product image. Soon TV far surpassed radio as an advertising medium. Bill Bernbach. He also believed that good advertising began with respect for the public's intelligence. 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. all came to prominence in the late 1950s and 1960s and led what has been called the 'creative revolution. The early 1930s ushered in dozens of radio dramatic series that were known as soap operas because they were sponsored by soap companies.' But it was the advertising for Volkswagen that made the agency's reputation. sophisticated. a borough of New York City. 'think small.' Bernbach's agency captured the spirit of the new age.' In an era of hype and bombast. but because of the high cost of TV sets and the lack of programming. Illinois. 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. founder of Ogilvy & Mather in New York City. Levy Bakery in Brooklyn.
Some industry observers believe that as consumers gain greater control over their viewing activities. DEFINITION OF ADVERTISING The word advertising originates from a Latin word advertise. (iii) It is non-personal communication. which means to turn to. . Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. (v) Advertising can be economical. (ii) It makes mass production possible. Chicago. will likely enable consumers to select from a vast video library. The development of interactive television. permitting an advertiser to speak to millions of buyers in a matter of a few hours. but also. combining the functions of a computer with access to high-speed transmission over cable lines or optical fibers. 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. has defined advertising as “any form of non-personal presentation or promotion of ideas. goods or services. to a greater extent than ever before. Consumers will be able to determine not only when they watch something. nor is it addressed to a specific person. they will find it easier to avoid advertising. for it is not delivered by an actual person. (vi) The communication is speedy. New digital devices even threaten to make it possible to edit out commercials. This keeps the cost per message low.” 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 elements of advertising are: (i) It is a mass communication reaching a large group of consumers. (iv) It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales. by an identified sponsor. 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. what they will watch. for it reaches large groups of people.
both the buyer and the seller benefit from it. . motion pictures used for advertising. Advertiser cannot afford to play with advertising. (v) The function of advertising is to increase the profitable sales volume. The advertiser signs his name to his advertisement for the purpose of publicizing his identity. What is excluded from Advertising? Advertising is not an exact science.(vii) Advertising is identified communication. because if advertising is done properly. That is. either immediately or in the future. (ii) Advertising is not a toy. Novelties bearing advertising messages and Signature of the advertiser. What is Included in Advertising? (i) The information in an advertisement should benefit the buyers. or by inserts in packages). Dealer help materials. Circular of all kinds. Advertising includes the following forms of messages: The messages carried inNewspapers and magazines. The advertisement that fails to influence anyone. (whether distributed by mail. thorough tradesmen. (iii) The content of the advertisement is within the control of the advertiser. (i) Advertising is not a game. It should give them a more satisfactory expenditure of their rupees. Store signs. Window display and counter – display materials and efforts. not the medium. (iv) Advertising without persuasion is ineffective. On radio and television broadcasts. An advertiser’s circumstances are never identical with those of another. is a waste of money. advertising expenses should not increase disproportionately. by person. he cannot predict with accuracy what results his future advertising efforts will produce. Advertising funds come from sales revenue and must be used to increase sales revenue. Label stags and other literature accompanying the merchandise. (ii) It should suggest better solutions to their problems.
TV rather than print . . Advertising seeks to condition the consumer so that he/she may have a favourable reaction to the promotional message. it thus contributes to enthusiasts and confidence attitude in the organizational.(iii) Advertisements are not designed to deceive. It involves a decision regarding the media. and retailers. the objectives of advertising should be specific. Now. show and conventions. Advertising impliedly bolsters the morale of the sales force and of distributors. Advertising is a form of promotion and like a promotion. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. (ii) To communicate with consumers. involving news releases and the activities of personal selling forces. (iii) To retain the loyalty of present and former consumers. 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.. This involves decision regarding copy . The entertainment of customers Advertising Objectives Each advertisement is a specific communication that must be effective. The desire and hope for repeat sales insures a high degree of honesty in advertising. Advertising may be used to reassure buyers that they have made the best purchase.g. The basic objectives of an advertising programme may be listed as below: (i) To stimulate sales amongst present. but for many target buyers. e. : . (iv) To increase support. former and future consumers. thus building loyalty to the brand name or the firm. not just for one customer. 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. The use of samples and activities. wholesalers. This means that specific objectives should be set for each particular advertisement campaign. The activities excluded from advertising are: The offering of premiums to stimulate the sale of products. The payment of advertising allowances which are not used for advertising. The use of exhibitions and demonstrations at fairs.
Non-business enterprises have also recognized the importance of advertising. Outlay on advertising certainly is the voucher. It can force middlemen to stock the product by building consumer interest. Advertising assumes real economic importance too. Though in India. the price of newspapers. advertising was accepted as a potent and recognized means of promotion only 25 years ago.(v) To project an image. Advertising strategies that increase the number of units sold stimulate economies in the production process. Advertising is to stimulate market demand. Importance of Advertising Generally. Advertising has become an important factor in the campaigns to achieve such societal-oriented objectives such as the discontinuance of smoking. advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. Advertising has become increasingly important to business enterprises –both large and small. It can build dealer and consumer confidence in the company and its products by building familiarity. such as personal selling or point-of-purchase display. and the elimination of drug abuse. While sometimes advertising alone may succeed in achieving buyer acceptance. or even demand for the product. In short. radio and TV programmes. shareholders. The production cost per unit of output is lowered. and the general public. it is seldom solely relied upon. advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life. It in turn leads to lower prices. physical fitness. stressing the advantages of a military career. family planning. The health department popularizes family planning through advertising Labour organizations have also used advertising to make their viewpoints known to the public at large. It can help train dealers salesmen in product uses and applications. and the like might be prohibitive without advertising. to directly move customers to buying action. but also at the government. This message is aimed not only at consumers. Advertising is used to promote an overall image of respect and trust for an organization. Advertising is efficiently used with at least one other sales method. professional sports. Lower consumer prices then allow these products to become available to more people. preference. its growing productive capacity and output necessitates the finding of consumers and advertising plays an important . Similarly. 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.
Informative Product Advertising B. Institutional Advertising C. Wholesale Advertising 6. Primary Demand (Stimulation) B. CLASSIFICATION AND TYPES OF ADVERTISING 1. Local advertising C. Retail Advertising B. consumers. Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection. Advertising Based on Area of operation A. advertising as a profession is in its infancy. Product advertising is of three types.. . Public Service Advertising 3. Advertising According to Medium Utilized 1. Functional Classification A. Reminder-Oriented Product Advertising 4. Advertising based on Product Life Cycle A. Selective Demand (Stimulation) B. Consumer Advertising B. there is a tremendous scope for development so that it may be productively used for the benefit of producers. Product – Related Advertising A. Advertising Based on Demand Influence Level. Pioneering Advertising B. Because of this fact. Product – Related Advertising It is concerned with conveying information about and selling a product or service. National advertising B. Regional advertising 7. Persuasive Product Advertising C.role in this process. In India. Trade Advertising A. Industrial Advertising 5. traders. Competitive Advertising C. viz. A. Retentive Advertising 2. and the country’s economy. Product Advertising A.
Direct Type: It seeks to stimulate immediate buying action. Retentive Advertising A.A. In this type of advertising. A much softer selling approach is used. the initial advertisement for black – and – white television and color television. Such advertisements appeal to the consumer’s emotions and rational motives. It is concerned with developing a “primary” demand. the objective is to put across a message intended to change attitudes or behaviour and benefit the public at large. For example. Pioneering Advertising: This type of advertising is used in the introductory stages in the life cycle of a product. It stimulates “selective” demand. Competitive Advertising C. C. Example: Airline advertising. it provides prices. maturity or declining stage.direct action-in which case. It conveys information about. Competitive Advertising: It is useful when the product has reached the market-growth and especially the market-maturity stage. 2. . Retentive Advertising: This may be useful when the product has achieved a favourable status in the market – that is. It is of two types: A. the advertiser wants to keep his product’s name before the public. Pioneering Advertising B. time tables and phone numbers on which the customer may call for reservations. or eventually – indirect action – when it suggests that you mention Air India’s name when talking to your travel agent. or only the name may be mentioned in “reminder” type advertising. Air India attempts to bid for the consumer’s patronage either immediately . Advertisements on not mixing drinking and driving are a good example of public service advertising. Indirect Type: It attempts to pinpoint the virtues of the product in the expectation that the consumer’s action will be affected by it when he is ready to buy. It seeks to sell a specific brand rather than a general product category. Public Service Advertising This is directed at the social welfare of a community or a nation. Generally in such times. B. and selling a product category rather than a specific brand. B. The effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of the sponsoring organization.
Surf detergent powder.3. If it is effective. Institutional advertising is used extensively during periods of product shortages in order to keep the name of the company before the public. . When a product is new. HMT or DCM. It may be of either the direct or the indirect type. To establish a differential advantage and to acquire an acceptable sort of market. government officials. selective demand advertising is attempted. emphasizing the quality and research behind its products. Selective Demand Stimulation This demand is for a particular brand such as Charminar cigarettes. etc. for example. Functional Classification Advertising may be classified according to the functions which it is intended to fulfil. When primary demand has been stimulated and competitors have entered the market. Some advertise to stimulate primary demand. Competitive advertising stimulates selective demand. primary demand stimulation is appropriate. (iii) It may try to cause indirect action or direct action. Institutional advertisements are at consumers or focus them upon other groups. financial institutions. ii. B. Institutional Advertising Institutional Advertising may be formative. Primary Demand Stimulation Primary demand is demand for the product or service rather than for a particular brand. the marketer must inform consumers of the existence of the new item and convince them of the benefits flowing from its use. It aims at building for a firm a Positive public image in the eyes of shareholders. It is not to stimulate the demand for the product or service. Advertising Based on Demand Influence Level. and not the brand of that product. (ii) It may promote either the brand or the firm selling that brand. such as voters. A. the advertising strategy may be to stimulate the selective demand. This sells only the name and prestige of the company. or Vimal fabrics. i. suppliers. (i) Advertising may be used to stimulate either the primary demand or the selective demand. employees. At this time. persuasive or reminder oriented in character. suppliers. It is intended to affect the demand for a type of product. The advertiser attempts to differentiate his brand and to increase the total amount of consumption of that product. This type of advertising is used frequently by large companies whose products are well known. legislators. does considerable institutional advertising of its name. or the general public.
HMT once told the story of the small-scale industries supplying it with component parts. It was the original approach to advertising. iii. 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. designed to promote the sale or reputation of a particular product or service that the organization sells. It is usually done in the introductory stages of the product life cycle. When Indian Oil advertisements describe the company’s general activities. Informative Product Advertising B. Persuasive Product Advertising C. Reminder-Oriented Product Advertising A. It is a type of promotion used in the growth period and. attitude change or action for an offering.the target groups will respond with goodwill towards. Product Advertising Most advertising is product advertising. It is used in the maturity period as well as throughout the declining phase of the product life cycle. such as public service work. . in the maturity period of the product life cycle. comprehension. 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 is also a useful method or introducing sales persons and new product to consumers. that its management takes ecologically responsible action. to some extent. It does not attempt to sell a particular product. The marketer may use such promotion to generate exposure attention. it benefits the organization as a whole. Persuasive Product Advertising: Persuasive product advertising is to develop demand for a particular product or brand. It notifies the consumers that the company is a responsible business entity and is patriotic. Indane’s Cooking Gas is a case in point. Informative Product Advertising: This form of advertising tends to characterize the promotion of any new type of product to develop an initial demand. B. and confidence in the sponsor. supports the socialistic pattern of society or provides employment opportunities in the community. It is of three types as follows:A. is an affairmotive action employer. It deals with the nonpersonal selling of a particular good or service. C. thus indicating how it aided the development of ancillary industries.
Advertising agencies are much less useful in industrial advertising. To help get items in the news column of a publication. . cosmetics. To reduce selling costs. Industrial Advertising A. They rely on this form of promotion merely out of fear that their competitors may benefit if they stop their advertising efforts. To motivate distributors. Trade journals are the media most generally used followed by catalogues. all these products are all package goods that the consumer will often buy during the year. To provide support for the salesman. Consumer Advertising B. Marketers of pharmaceuticals. to create or change a company’s image. To motivate distributors. To get the advertiser’s name on the buyer’s list of sources. Industrial Advertising Industrial executives have little confidence in advertising. scooters. etc. To recognition for the firm or its products. The task of the industrial advertiser is complicated by the multiple buying influence characteristics like. exhibits. Baring a few. To induce inquiries. and general management publications. To establish recognition for the firm or its product. Advertising based on Product Life Cycle A. detergents and soaps. cigarettes and alcoholic beverages are examples. To create or change a buyer’s attitude. Consumer Advertising Most of the consumer goods producers engage in consumer product advertising. the derived demand. The objectives vary according to the firm and the situation. direct mail communication. They are: To inform. To bring in orders. There is a heavy competition among the advertisers to establish an advantage for their particular brand. B. and The basic appeals tend to increase the rupee profits of the buyer or help in achieving his non-monetary objectives.4.
Trade Advertising A. Wholesale Advertising Wholesalers are. National advertising It is practiced by many firms in our country. petrol pumps and banks. generally. It refers to advertising costs between retailers and manufacturers. not advertising minded. Retail Advertising B. also advertising by establishments that sell services to the public. One aspect of retail advertising is co-operative advertising. National Advertising B. 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. The result is that advertising is often relegated to a secondary position in a retail store. Advertising based on Area of Operation It is classified as follow: A. 6. It encourages the consumer to buy their product wherever they are sold. together with their normal functions. Regional Advertising C. B. Local Advertising A.5. The store personnel are usually given this responsibility as an added task to be performed. It includes. either for themselves or for their suppliers. such as beauty shops. They would benefit from adopting some of the image-making techniques used by retailers – the need for developing an overall promotional strategy. They also need to make a greater use of supplier promotion materials and programs in a way advantageous to them. Wholesale Advertising A. From the retailer’s point of view. Most national advertisements concentrate on the overall image and desirability of the product.” Advertising agencies are rarely used. Retail Advertising This may be defined as “covering all advertising by the stores that sell goods directly to the consuming public.
Today. photographers. For example: TV. television production crews and many others. Even the biggest advertisers cannot afford to employ all these experts. and so on. This classification is so common in use that it is mentioned here only for the sake of completeness. But. Advertising agency is one of the most important components of advertising industry. prices. it mainly confined itself to one of the vegetable oil brands distribution to Malihabad district (in U. artists. radio. C. outdoor. It has played a significant role in the development of modern advertising. until recently. Amrit Vanaspati based in Rajpura claims to be the leading hydrogenated oil producer in the Punjab. The advertising agency has evolved to provide the specialized knowledge.Jay Engineering TISCO B. Advertising has not only come to reflect pop culture but has also become an important element of economic growth. These advertisements save the customer time and money by passing along specific information about products. Advertising Agency Getting the best out of advertising is a highly skilled job. Advertising According to Medium The most common classification of advertising is by the medium used. 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. near Lucknow). newspaper and direct mail advertising. location. 7.P. It requires the inputs of experts in many different fields like writers. It provides a quality . For example. Retailer advertisements usually provide specific goods sales during weekends in various sectors. Local advertising It is generally done by retailers rather than manufacturers. Regional advertising It is geographical alternative for organizations. skills and experience needed to produce effective advertising campaigns. 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. business periodical. designers. magazine.
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. Writing an Ad 2. 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. Advertising is demanding. non-profit organizations and government agencies. and in the planning and execution of promotional campaigns for products and services of their clients. is constantly on the look out for skilled. Advertising requires a mix of personal abilities.” The glamour.all these popular portraits of life in the big-time advertising agency are misleading. there are never many entry-level positions open in advertising agencies (dozens rather than hundreds). Agencies may be hired to produce single ads or. Getting Approval for the Text of the Ad . challenging. ongoing series of related ads. planning and handling advertising (and sometimes other forms of promotion) for their clients. the unlimited expense accounts. called an advertising campaign. 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. and an ability to work under pressure to meet deadlines. Advertising Process When preparing your search proposal. articulate. considerable business skills. An advertising agency is a firm that specializes in the creation.range of service greater than any single advertiser could afford or would need to employ. and the exhilarating lifestyle . hard work. prepare and place advertising media for sellers seeking to find customers for their goods and services. more commonly. An advertising agency or ad agency is a service business dedicated to creating. And competition is stiff. however. The advertising process for professional staff and faculty positions involves five basic steps: 1. It is also interesting and fulfilling. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. The Association of Advertising Agencies of America (AAAA) defines advertising agency as “An independent business organization composed of creative and business people who develop. The industry. creative and personable men and women with a wellrounded education and a good business sense. Typical ad agency clients include businesses and corporations. design and placement of advertisements. Compared to larger industries. bright.
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.3. Interpublic Group of Companies and Havas. 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. multi-agency conglomerates such as Omnicom Group.or two-person shops to large multinational. Other agencies. WPP Group. such as print ads or television commercials. 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 . press ads. especially larger ones. from small one. Estimating the Cost of the Ad 4. Some agencies specialize in particular types of advertising. Placing Ads & Posting Announcements 5.
Modular agencies A modular agency is a full service agency that sells its services on a piece meal basis. This type is owned completely by the advertiser. It performs almost all functions that an outside advertising agency would perform and that’s why some . production of ads. which prefer to have closer control over advertising. product design etc. 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. have their own in-house agency. artwork. Not all advertising is created by agencies. Full Service Agencies A full service ad agency is one that provides a range of marketing services. A full services agency provides services that are directly related to advertising such as copywriting. In House agencies Those companies. distribution. It also provides such services in respect of pricing. packaging. Companies that create and plan their own advertising are said to do their work in house. Thus an advertiser may commission an agency’s creative department to develop an ad campaign while obtaining other agency services elsewhere.many types of media. Or. 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. an advertiser may hire an agencies media department to plan and execute a program for advertising that another agency has developed. 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. media planning etc. Following are major types of advertising agencies that are currently serving the advertising industry. Today selection of ad-agency is very difficult. Fees are charged for actual work undertaken. Some advertiser may select more than one advertising agency to handle effectively the various product lines. Lately.
space and place the ads. 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. for instance Soubhagya advertising agency concentrate on specialized in financial advertising. It was in 1986. In-house agency not only provides control over advertising schedule and costs. and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services. artwork and production of ads. Saachi & Saachi. but an advertising department solely undertakes that work of its owner and not of outside clients. the difference between an in-house agency and an advertising department is that the inhouse agency can undertake to serve several other clients. The specialized creative functions include copy writing.people refer to it as full-service advertising department of the advertiser. There is another version of in-house agency whereby advertiser handles the total agency functions by buying service unit to buy time. but also offers convenience for its owner. because it is just available in the same building as that of the head office of advertiser. Agencies worldwide merge with each other serve their clients in much better way. Creative Boutiques These are shop agencies that provides only creative functions and not fullservice. . However. a London based agency who started the movement and at present it is the third largest agency network in the world. they charge a fee or percentage of full service agencies. Such revenue increases the funds and profits of the company. if the owner so desires. Secondly an advertising department may not be equipped the personnel and facilities. 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. The Specialists Agency There are some agencies who undertake advertising work only in certain areas. which an in-house agency would posses. there are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc. Mega agencies A significant of 1980’s is the development of mega agency.
designing and making that item is only part of the battle. As a company with a product or service to sell. You have to seek a channel of communication. 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. for example: • For whom is the product or service designed? Who would use it? Who is the "target group"? • • . It may be a totally new product. People are not going to beat a path to your door. professional.The functions of an advertising agency: • • To accelerate economic growth and create public awareness To provide a total. Ad agency need to consider.
newspapers.their interests. magazines and radio. This is where advertising agencies fit in. wants. their effectiveness. Public Media Ad Company with a Agency product or service The process of advertising involves considerable specialized knowledge and expertise • about people . Many companies that design and produce products or offer services lack these specific capabilities. Advertising agencies exist to help companies to communicate with the public. 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. needs. particularly in television. preferences. creative development and media services for advertising.• 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. • • How extensive a region should your company try to cover? How often? Communication and marketing decisions involve specialized expertise. expectations • • about media . Market the company's product. providing the best creative designed to capture the imagination of consumers .their reach. lifestyles.
the creative department. animated content. broadcasting and other rights. . Content Business Sales of sponsorship. including sales promotion. and the production and marketing of such media / content as sporting events. including system integration services. e-Solution Services e-solution services. media buying.Marketing Services Provision of a number of advertising related services. 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. PR and event marketing. Search Engine Marketing (SEM) and Search Engine Optimization (SEO) and e-promotions using the Internet and mobile. although all four areas work closely together to produce an advertising campaign in its entirety. music and other forms of entertainment. e-business consulting and customer relationship management (CRM). and research. market research. These divisions are usually physically separated. TV programs. films.
that we forget the reach of ‘old’ media — newspapers. which the media guru. ADVERTISEMENT AND STUDENT There is so much written these days about the impact of ‘new’ media. many create stressful situations where participants begin to question their sense of worth in our success-driven society. As the academic Mark Crispin Miller observed: ‘Technology now infiltrates rather than . and promotional services. not even poor Santa was spared! He was positioned as a scary character with five pictures to support this tall claim. The creative department designs original themes or concepts for ads.A routine story perhaps.Sensational headlines often catch their attention especially when they are about their own generation — the Rathore scandal and student suicides are cases in point.While some promote talent. Other activities that used to be completed by outside vendors. be it internet or i-pods. have been brought inhouse in many agencies.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. such as photography and high-tech print work. In a recent newspaper article. which recently has been identified as one of the influencing factors in teen suicides. The research department provides data about consumers to help the agency and the client make informed advertising decisions. Recently added to advertising agencies' roster of services are public relations. continues to dominate youth attention with its umpteen reality shows.Even if we presume they read less these days. So as one looks at the impact of media on youth behaviour. described as an ‘extension of our senses’. many youngsters do flip through the daily newspaper at home. television and films on our youth. direct marketing. As for television. while the media department places finished ads within the media in which they will receive the most exposure to a target audience.TV and print have been quietly reinventing themselves to grab TRPs and readership. but young minds reading these headlines day after day are bound to develop anxiety and question the sanity of our times. a 23-year old rapes an 8-year old. one cannot overlook the critical role played by the ‘old’ media which are competing aggressively with the ‘new’ media. Marshal McLuhan. Another headline screamed: ‘Neighbour arrested for raping and killing minor’.
computer. that heavy media use is associated with several negatives. let us not underestimate the impact and continuing growth of the all-pervading ‘old’ media.No one wants youngsters to become prudes. when they are neither children nor adults. staying home. A recent development in UK of allowing product placement in programmes has resulted in a hue and cry by British doctors and teachers. Television blinds us to any visual event that takes longer than an instant to comprehend and keeps us sitting down. (January 3.” Not that the ‘new’ media does not finds ways to draw people. who directs the Centre on Media and Child Health.Cell phones have literally metamorphosed into ‘magic boxes’ which can do practically anything!The growth of internet is phenomenal. has said that with media use so ubiquitous. the storyline is altered to promote a particular product. the study found. personality development and social issues like juvenile crimes? In an effort to understand the contributory factors of teen suicides. when recent studies point a finger at an over-burdened education system. Umpteen ads prey upon greed and bring in their own brand of sexuality and consumerism. it was time to stop arguing over whether it was good or bad and accept it as part of children’s environment. 2010) headlined ‘Backlash over plan to extend TV advertising’. but in this transitional age. of Children’s Hospital Boston. Regional television often feeds the hunger of the aspiring. our TV barons are not sitting quietly for the demise of the ‘idiot box’.invades. television or other electronic device.No longer appearing as an alien force. TV is irresistible. at the same time. where the internet has not made much headway. . as it were. blending in with the woodwork.’ In smaller towns and rural areas. rural youth looking forward to moving to big cities. But where are the programmes to help youngsters deal with career selection. The average young American now spends practically every waking minute — except for the time in school — using a smart phone. they are very impressionable to environmental conditions.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.In an article in the Guardian News. Dr Michael Rich. including behaviour problems and lower grades. But. And television is the world’s most popular babysitter. TV remains the main source of information and entertainment.Moreover. according to a new study from the Kaiser Family Foundation.
000 food commercials advertising food low in nutrition. According to the industry newsletter. There are enormous opportunities for the marketer who is able to understand both the reality and fantasy of teen life. The Gepetto Group conducts focus groups and consults with psychologists to help businesses better understand how to market to teens by exploiting their vulnerabilities. "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. interested in shutting out the adult world. The average child sees approximately 20.As we reconsider our educational system and the influence of all media in face of rising suicides." (Linn 2) "And according to USA TODAY. "Be All You Can Be"--We have heard these slogans many times during the course of a day in some fashion or other. movies. them." (Linn 2) "It has been documented that the average teenager spends about 6 ¾ hours a day (38+ hours/week) using media--television. playing video games and using the computer. Therefore I Am". "Have It Your Way". What they all have in common is that they are directed toward teenagers. grade schools in Connecticut accepted . "Reach Out and Touch Someone". "Just Do It". our educationists should also think in terms of developing a ‘medialiterate’ society. we must also involve them in the creation of programmes that help cope with life. such research is taking place in schools. "Got Milk?".000 from a company in exchange for permission to interview 10-to 12-year-old students in classrooms after school. "It's Everywhere You Want To Be". entertainment. About 57% of viewers surveyed in 1996 enjoy commercials as much as television programs. "Finger Lickin' Good". Advertisers spend over billion each year on television commercials. he or she will have seen about 20. Increasingly. Teenagers are probably more influenced by advertising than any other age group. "Ipod. Teens are ?.Going further.' the firm's chief strategic officer explained in a Selling to Kids interview. newspapers.000 commercials a year. It is estimated that teenagers between the ages of 13 and 19 spend 0 a week or 4 billion per year on clothing. . an oppositional subculture. By the time a child is 18. Selling to Kids. and they are really not aware of it.. even manipulates. We need to guide our youth in this media-saturated society. magazines. 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 now realize that children not only influence the purchases of the goods and services that appeal to them. and then make a purchase. and these decisions are often influenced by what advertising they see--through print. They are less likely than others to compare prices or seek recommendations(Vision 3). This is an advertisers dream. smell. and money goes into developing products and services and marketing them to young people? Do they truly understand how the images they see. For example. We see something that we need. We often notice that advertising geared toward this demographic is often very visual. it is estimated that 78% of children influence what their parents buy (McDougal Littell. "CEA's (Consumer Electronics Association) research says teens may be more open to impulse purchases because they tend not to overanalyze. These purchases can be small to large ticket items. incorporates catchy slogans.and fast food. . 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. teenagers are being left more on their own to make decisions that have a direct impact on families. on the other hand. research the product to see what best fits those needs. hear. and taste trigger their desires to accumulate more and more "stuff?" Advertisers have found their niche with teenagers. They know that teenagers' tastes will change on any given day what's popular today can be passé tomorrow. and is simple yet effective in its language. 2001). They are more insecure and more rebellious than people of any other age group. It is no longer up to the parents alone to decide what the family needs. but they also influence many of the purchases in the entire household. 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. effort. interactive. television. or what a celebrity whom they admire or respect says they need. what will make them more popular with their peer group. are "impulse" purchasers. Advertisers are aware of this and desperately try to meet their fluctuating--and they are succeeding. radio. With our fast-paced society. employs celebrities to pitch the products. manpower. and the internet. Teenagers. touch. They have become very creative when it comes to marketing to this group." They buy based upon what their friends are buying.
They need to become informed consumers who make choices based on facts and not always on emotions. Sometimes school students are thought of as the forgotten children. Seventy-nine percent of students at West Delhi High School come from low-income households (School District of Philadelphia/Demographics). and fragmented family structure. Making learning interesting. such as Foundations or Edison Schools. there are many problems for students. including a high dropout rate. has afforded the advertising industry numerous vehicles to expose young people to more and more advertising.000 or more.000 students that is 97% high income group. Students will learn that since the advent of our technological age. The design of this unit has been directly influenced by the circumstances under which I teach. violence in the neighborhood. they are being bombarded by advertising at an alarming pace. cell phones. where you can easily find a house selling for upwards of 0. and ipods. low attendance. 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. As with all urban schools. a very large percentage of students have scored below basic on standardized testing. feel obligated to . where I have taught for thirty-four years. Because of their backgrounds and environmental conditions. West Delhi High School has a population of approximately 1. the school also sits in a neighborhood where gentrification has caused housing prices to rise. The advent of cable television. This unit will aim to show my students how this is done and how they are influenced by it. This has placed the school in the unenviable position of being slated for takeover--possibly by one of the private companies.This project objective is to how they are being manipulated to buy certain products or services. video games. Ironically. advertising plays an important role in their lives. They are in desperate need of life skills." and the different strategies and techniques that are incorporated in their advertising campaigns. For the past few years. I. computers. fun and relevant to their lives takes a great deal of effort and planning. Educating young people who must deal with some of these problems can be an awesome task. as a teacher. Students will learn how advertisers change their "wants" into "needs.
This is all very good. And this is definitely not good. and when a company sticks to its original . shorter etc. I feel that the debunking of the myths of advertising is but one way of providing this information for my students. larger. we got to recognize certain brands and products as good quality and we stuck by them. laws and consumer magazines and organisations. 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. rules. that we will continue to use it and that we react positively to the latest improvement. And sometimes we get mad because we feel we have been taken for a ride. New and improved products are developed all the time and we can't be expected to keep track of these developments ourselves. 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. Before. Reputation is important. etc. faster acting.try and bridge this gap between reality and fantasy. So far so good. Positive Effects The positive side of advertising is that it makes you aware that a product or service is available. Even though the message is the same as it was the last time it was improved. 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!". as we have mentioned before. if we were using it before. 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.Unfortunately many advertisements. despite rigorous guidelines. When a good product is improved it does become a better product. and so forth. tell us a product or service is good only to find out after purchase that it is not good at all. in those good old days (when everybody complained). chances are.
colorings.success formula we can trust them and continue to use their products or services without having to worry about it too much. Negative Effects The negative side of an ad is that it is not usually a neutral and objective statement. Depending on the power of the manufacturer it can be blatantly obvious that we are dealing with a bad or substandard product. And that is good because in our busy modern lives we have plenty to worry about already. etc. after the sale in other words. 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 • • • . But if the manufacturer has a lot of power. The ad is made by the product's manufacturer and that already tells us that it will never be objective. No one can deny that an unbelievable quantity of bad products are for sale. 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. In retrospect. According to the box every product is the best after all. the ad is so sophisticated in its execution that. we are wholly convinced with what we are dealing is genuinely great product.
can be undertaken.e. or use that service again. is an attempt to attract the customer towards the product through advertising. advertising copy and the effectiveness of individual media. May be provided with the advertisement or (d) Enquiry from consumers should mention the name of the source of information. i. (c) Coupon blank etc. two types of tests pre tests and post tests.• it's made from organic materials. As soon as the advertising campaign is over. a need is generally arisen to measure the effectiveness of the campaign. not mentioning that those organics are animal byproducts and leftovers. The advertiser spends lakhs of rupees in to this advertising activity. desired sales profitability or results in terms the change in customer’ behaviour in favour of the company’s product which will naturally. affect the future sale of the product. it has achieved the desired results i. and so forth. The technique is known as keying the advertising.. The only thing we can do is learn from our failures. 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. bio-material even an experimental laboratory would label bio-hazard etc. Pre tests are generally conducted in the beginning of the creation process or at the end of creation process or production stage.. never buy a product or anything else manufactured by that company. LITRATURE REVIEW All advertising efforts are directed mainly towards the achievement of business. In order to measure the effectiveness of advertising copy. There are several pre and post tests techniques to measure the effectiveness of the advertising copy. until we are absolutely sure it is now really worth our hard earned money and time. marketing and advertising objectives i. Thus in measuring the effectiveness of advertising we include measuring of the effectiveness of advertising campaign. to increase the sales turnover and thus to market the maximum profit. This chapter deals these three problems. The list is quite endless once you get going the reality of it is quite depressing. In the background of all these efforts.e. etc. (b) Different newspapers may be selected for advertisements of different departments. Importance of measuring the Effectiveness of Advertising .e. Whether.
message or appeal of the advertising. and existing and prospective consumers. various information about the product and the company. If the expected rate of return is achieved in terms of additional profits. (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 rate and size of return should be determined in advance. Thus waste of money in faulty advertising can be avoided. (6) Compare two markets Under this procedure. 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.(1) It acts as a Safety measure Testing effectiveness of advertising helps in finding out ineffective advertisement and advertising campaigns. the advertisement can be considered as effective one. changes in dealer display and so on depending upon the objectives sought by the advertiser. Most of the managers believe that the . (2) Provides feedback for remedial measures Testing effectiveness of advertising provides useful information to the advertisers to take remedial steps against ineffective advertisements. 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. Markets – so called control markets – which have had the regular advertising program. Evaluating advertising effectives helps in estimating the results in order to avoid complete loss. 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. The measurements made to determine results may be measurements of change in sales. It facilitates timely adjustments in advertising to make advertising consumer oriented and result oriented. (3) Avoids possible failure Advertisers are not sure of results of advertising from a particular advertising campaign. change in consumer attitudes. advertising is published in test markets and results are contrasted with other. The investment in advertising is a marketing investment and its objectives should be spelt out clearly indicating the results expected from the campaign.
First of all. This technique estimates the contribution that advertising has made to explaining in a co relational manner rather than a casual sales. The following are some of the methods that are generally used in measuring that advertising effects. Cities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities.advertisement directly affects the sales volume and hence they evaluate the effectiveness of the advertising campaign by the increase in the sales volume. One experimental approach to measuring the sales effectiveness of advertising is test marketing. Media schedules expenditure levels or some combination of these advertising decision areas. There may be two types measures (i) (ii) Direct measures: and Indirect measures:- (1) Direct Measures of Advertising Effectiveness Under direct measures. 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. This method is quite expensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. a relationship between advertising and sales is established. (a) Historical Sales Method Some insights into the effectiveness of past advertising may be obtained by measuring the relationship between the advertising expenditure and the total sales of the product. Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs. the normal sales level is . It would show how the changes in advertising expenditure have corresponding changes in sales volume. A comparison of sales of two periods or two periods or two markets may be done and the corresponding changes may be noted. (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. A multiple regression analysis of advertising expenditure and sales over several time periods may be calculated.
Despite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results.The power of this multivariable factorial design is explained by G. it is not successful in explaining the success or failure of the campaign itself.Brown.V. and the number of persons switching on their T. The most commonly used measures are – (i) Exposure to Advertisement In order to be effective. Thus.calculated for both type of cities prior to advertising campaign. can then. or the number of persons living in the televiewing or radio listening area.H. Multivariable designs Produce these explanations and are. and radio sets at various points of time. there is no other alternative but to use indirect measures. and then the advertising campaign is presented to the test cities and not the central cities. For any single medium. newspaper or journal sold the number of persons passing the billboards or riding in transit facilities. advertisement is bound to failure. 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. 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. in this experimental model it is possible to evaluate how each individual medium behaves alone and in all possible to evaluate how each individual medium behaves alone and in all possible combinations with other media. the advertisement must gain exposure. The effect of advertising campaign. The management is concerned about the number of target audiences who see or hear the organization message set in the advertisement. eight possible geographic areas have been exposed and eight have not been exposed. former Fords Director of Marketing Research. . This number can be estimated by interviewing the numbers of the audience for different media. (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. Without exposure. 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. therefore used by some very large firm because of their diagnostic value.
Here consumers read. the consumers are asked to indicate the extent to which they recognise or recall the advertisement. for new products. 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. One is pre-test and the other is post-test. Various mechanical devices are being used in the western countries which provide indices of attention such as eye-camera etc. But.(ii) Attention or Recall of Advertising Message Content This is one of the widely used measures of advertising results. (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. changes in awareness can often be attributed to the influence of advertising. hear or listen to the advertisement and then researchers ask question regarding the advertisement just to test the recall and then evaluate it. This test is conducted in the laboratory setting. In a pre-test evaluation. 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. (iv) Comprehension Consumers generally use advertisements as a means of obtaining information about the product. Under this measure. They cannot be informed unless they comprehend the message (grasp the message mentally and understand it fully). they have already seen. Another measure of the variable is to ask questions about subjects how much they have comprehended a message they have . brand or the manufacturer. 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. There are two methods for evaluating the attention getting value of the advertisements. These measures assume that customers can recall or recognize what they have viewed or listened to. It is also affected by many other factors. 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. The assumption of this type of measure is that there is a direct relationship between the advertisements and the awareness.
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. By regular evaluation of the effectiveness.recently heard or seen. 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. The effectiveness of advertising can be measured by the extent. For this purpose. Thus. Under this type of measure. The action or intention to take an action may be measured on the intention to buy measuring instrument. Logic suggests that measurement of sales is preferable to other measurements. One type of action that advertisers attempt to induce is buying behavior. If it succeeds in attaining the objectives. But this is very difficult task because measurements are imperfect and imprecise. One may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. (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. the results are very often measured in terms of attitudes among groups exposed to advertising communication. service or organisation. Advertising can be . it to which it achieves the objectives set for it. 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. (vi) Action One objective of advertisement may be assumed to be to stimulate action or behavior. The assumption is that if an increase in sales follows a decrease in advertising expenditure. these above measures (direct or indirect) are used to evaluate the effectiveness of advertisements. it is very necessary to know how advertising affects the buyer’s behaviors. consumers are asked to respond why they are interested in purchasing the product or brand. 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.
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. In a very real sense the integrity of promotional activities rests on how well those activities work. Indeed. advertising can be recognized as a business activity like other activities. 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. If we take a hypothetical case of a retailer who contract to spent Rs. Such events may influence the results of the advertising efforts.) cannot be accurately anticipated. 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.(a) The reaction of consumer – buyers to the advertising efforts cannot be known in advance. 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.. The exact result of advertisement expenditure is very difficult to predict because. The advertisement is seen and the response is much greater than it is anticipated. 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. What caused the success of sale? They message theme colors etc. 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.5000 on advertisement with a local newspaper for a special sales even. In this sense. Weather conditions or the goodwill of the firm 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.said to be effective otherwise it will be a waste of money and time. But it does not mean that that we cannot measure the effects of particulars advertising effort. The advertising executives are much concerned about the assessment of the effectiveness .
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
sell them at a lower price. thereby benefiting consumers and the economy as a whole. and goals. Other economists. advertising helps increase competition. Ads in the 1950s depicted women primarily as decoration or sex objects. after the 1960s it became more . These economists also argue that by interesting consumers in purchasing goods. 2. This is especially true in the United States where the advertising industry plays such a prominent role. ads continued to focus on their role as homemakers. enabling them to recoup the costs of developing new products. They argue that advertising creates a consumer culture in which buying exciting new products becomes the foundation of the society's values. rather than increasing sales overall and thereby benefiting the economy as a whole. advertising simply moves sales from one company to another. society. Although millions of women worked outside the home in the 1960s.Advertising has an important effect on a country’s economy. Social Impact Advertising can have wide-ranging repercussions on a society. Advertising thus benefits consumers by helping lower prices. however. Other critics express concern over the way advertising has affected women and racial minority groups. The increased volume of sales enables companies to produce individual units at lower costs and therefore. Some critics suggest that advertising promotes a materialistic way of life by leading people to believe that happiness is achieved by purchasing products. 1. Whether owing to the feminist movement or to women's increasing economic power. 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. By stimulating the development of new products. advertising enables manufacturers and others to sell their products in larger quantities. believe that advertising is wasteful. culture. pleasures. 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. strengthening the economy by promoting the sale of goods and services. Manufacturers know that advertising can help sell a new product quickly. Many economists believe that increased competition leads to lower prices. and political system.
There is still considerable debate over how advertising influences public perception of gender and of particular ethnic groups. However. noncontroversial programming to avoid offending a mass audience. For example. society might not be alerted to harmful or potentially harmful conduct by the advertiser. companies that sponsor TV programs prefer relatively wholesome. African Americans were usually shown in a subordinate position. radio. it may exercise undue influence on the news media and thereby curtail the free flow of information in a free society. 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. or even be subject to government control through subsidies. to the public. many African American organizations and community activists continue to object to the way that alcohol and tobacco companies have seemingly targeted low-income minority communities with a heavy preponderance of outdoor advertising for their products. Prior to 1960. critics charge. and Eastern Europeans. many ads today still emphasize a woman’s sexuality. if not free. As a result. Advertisers may affect media programming in other ways. a diversity of magazines. and free entertainment might no longer be widely available. for example. magazines. The way advertising has depicted racial minorities has also been harmful. advertisers by the 1980s had begun to depict African Americans as students. however. At the same time. some critics warn that because advertising plays such a major economic role. or they might be considerably more expensive. too. including Hispanics. offer less variety. may be hesitant to develop a news story that criticizes a major advertiser. Without advertising. Newspapers. Most members of the news media deny that pressure from an advertiser prevents them from pursuing news stories involving that advertiser. Advertising has a major social impact by helping sustain mass communications media and making them relatively inexpensive.common to see women depicted in professional roles. many of these forms of mass communication might not exist to the extent that they do today. or business people. increasing attention has been paid to the way in which advertising shows other ethnic groups. This preference . As ads have begun to more fully reflect the lives of women and African Americans in the United States. Native Americans. and broadcast television all receive their primary income from advertising. Due to the influence of the civil rights movement. professionals. Asians. Reporters and editors. however. However. In-depth news programs.
Television . devote large amounts of time to weightlifting. Research indicates that many adolescent girls are unduly influenced by this standard of beauty. buffed bodies. Because advertisers are especially interested in attracting the 18 to 34 year olds who account for most consumer spending. 3. and may even take drugs that have harmful side effects in order to develop more muscle. but some elderly people no longer process messages as easily as younger people. That amount of spending placed political advertising in the ranks of the country’s 30 leading advertisers that year. and may develop eating disorders in pursuit of a thin figure. Advertising professionals did not become involved in electoral campaigns until the 1950s. shows that are more likely to interest and to be of value to older audiences are not produced. which causes a program to be canceled. Those over the age of 60 are thought to be less influenced by advertising. making them more susceptible to questionable advertising claims. Political advertising enables candidates to convey their positions on important issues and to acquaint voters with their accomplishments and personalities. As a result. In 1998 more than $467 million was spent on election campaigns in the United States. thin models. Political advertising is a relatively new development in U. 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. become dissatisfied with their own bodies. If the ratings show that a program is not attracting large audiences. particularly among 18 to 34 year olds.causes TV networks to emphasize this type of programming. which makes them especially vulnerable to advertising. The impact of television on young children has received much attention. As a result. There is also concern about the way in which adolescent girls respond to advertising that features beautiful.S. But since then. New research suggests that adolescent boys are also being influenced by advertising images of bulked-up. Political Impact Advertising is now a major component of political campaigns and therefore has a big influence on the democratic process itself. advertisers often withdraw support. political advertising has grown in sophistication and complexity. television shows are often developed with this audience in mind. Research suggests that children see television advertising as just another form of programming and react uncritically to its messages. history. many become dissatisfied with their own body image.
The ad ridiculed a competitor by depicting a small hamburger patty dwarfed by a . making it necessary for candidates to raise money continually. voters are bombarded with image advertising rather than being acquainted with the candidate’s positions. overriding cultural differences. multinational corporations often use the same advertising to sell to consumers around the world. Some reform proposals have called for free airtime. Humor in advertising has made many ad campaigns widely popular. Some advertising messages. causing the world to become increasingly homogeneous. for example. or they contribute to culture in a positive way. have universal appeal. thereby distorting the political process. Some critics argue that advertising messages are thus helping to break down distinct cultural differences and traditional values. Because of the high cost of television ads. in some cases achieving the status of folklore or taking on new life in another arena. however. As a result. even after they have been elected to office.advertising is especially effective for candidates running for national or statewide office because it can reach so many people at once. 4. Many advertising campaigns. have tried to address the impact of television advertising on political campaigning. however. Critics of political advertising also charge that the 30-second television spot has become more important to a political campaign than a thorough discussion of the issues. With the globalization of the world economy. Issues are simplified. but television and radio networks have resisted this idea. They contend that this practice is harmful to good government. encourage aggressive individualism. For example. 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. Cultural Impact Advertising can affect cultural values. and candidates are “packaged and sold” much like a consumer product. Various campaign finance reform proposals. 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. Candidates can also use advertising to respond effectively to the charges of their opponents. the costs of political campaigns have skyrocketed. 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.
huge bun. During a primary debate one of the candidates used the ad slogan to suggest that his opponent’s campaign lacked substance. .
The research would be regarding the effects of advertising on the customers in with special reference to the students in Delhi region.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. RESEARCH HYPOTHESIS Hypothesis I 7Ho Ha : There is no significant impact of advertisement on the students in Delhi. 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. : There is a significant impact of advertisement on students in Delhi. 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. 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. 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. . 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.
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. : Students in Delhi. Model Town. Pitampura. repeat purchase level of customers. so future researches can be conducted on the students all over India to get better and accurate results. . SCOPE OF STUDY Since my research is comprises of the students only in Delhi Region. 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. TYPE OF RESEARCH • Descriptive Type of Research. Rohini. 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. SAMPLING TECHNIQUE Universe Population Sampling Frame Sample : All Students in India. : Students in Ashok Vihar. : Students in North Delhi.
Reports. CHAPTER-4 HYPOTHESIS TESTING. so that they could make attract customers and make them buy those products. DATA ANALYSIS AND INTERPRETATION . : Journals. Survey Method. Companies these days are investing huge amounts just to make their products known amongst the people. 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. DATA COLLECTION TOOL Primary Data Secondary Data : Questionnaire. Websites.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. Magazines.
1. Which form of advertisement do you like more? Answers Still image Moving image No. 2. From where do you get information about the new product? Answers Television Newspapers Magazines Internet Peers (Family / Friends) No. of respondents 28 72 . of respondents 42 26 11 6 15 Interpretation: A large size of population is influenced by Television and Newspapers. Which means advertisement would be the best medium to get them the information to the youth .
Interpretation: People are more affected by advertisement with moving image. of respondents 62 38 . 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.
Interpretation: More number of Delhi’s Student consider advertisement as a source of information rather than a source of entertainment. of respondents 26 74 . 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. 4. Does entertaining advertisement affect your opinion about the product? Answers NO Yes No.
of respondents 87 13 .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. Does information provided in advertisement affects your opinion about the product? Answers Yes No No. 5. This has been told by the 74% of the students from the Delhi and from the schools and college going as well.
Interpretation: Information provided in the advertisement affect very much on the opinion of consumers about 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. 6. Does language used in advertisement affects your opinion about the product? Answers Yes No No. of respondents 63 37 .
of respondents 69 31 .Interpretation: Language used in the advertisement affects a lot on the opinion of consumers about the product. Does presence of any celebrity in the advertisement affects your opinion about the product? Answers Yes No No. 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. 7.
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. 8. of respondents 52 48 . Does intensity (frequency) of the advertisement affects your opinion about the product? Answers Yes No No.
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. 9. of respondents 59 41 .
r. Do you think advertisement helps in increasing sales of any product? Answers Yes No No. 10.Interpretation: Presence of social issues in advertisements affects very much on the opinion of consumers about the product. In coming months of advertisement there are lot many social issues covered by the organization w. of respondents 87 13 .t social advertisement yes 63% of the student changes there buying behavior only because of that.
1. Quality of the product. 3. Strongly Agree 2. 87% of the people suggested for the same as per our study. Disagree 5. Agree. Advertisement B. F. Availability of product E. Neutral 4. C. Price D. Money C. HYPOTHESIS TESTING Hypothesis I Ho : There is no significant impact of advertisement on the students in Delhi. What impact is most for the purchasing of any new product for you? Please rate this factor on 1. It has been proved from this question that it will impact on the customer directly if the company launched any good advertisement. Brand.Interpretation: Advertisement helps very much in increasing the sales of any product. A. Strongly Disagree. . Promotion.
0 .00 Total .0 1. Promotion.0 1.00 45.0 1.00 21.0 1.00 45.00 2.0 .0 .0 .00 Total 3.00 4.0 Residual .0 Residual .Advertisement Money Price Availability Quality of product.0 .0 .00 18.0 .0 1.00 31.00 34.0 .0 .0 .00 18.0 1.0 1.00 11.0 1.0 1.0 .0 1.0 1.0 Expected N 1.00 17.0 1.00 40. Brand.0 10.0 1. 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 Residual .00 Total Money Observed N 1 1 1 1 1 5 Price Observed N 1 1 1 1 1 5 Availability Expected N 1.
b 4 cells (100.0 .0%) have expected frequencies less than 5. The minimum expected cell frequency is 1.0 .0 .0 1.000 4 Money .0 .000 4 Availability .000 1. .00 12.0 .0 Residual .000 1.0 1.000 1.00 34.0 Brand Observed N 2 1 1 1 5 Promotion Observed N 1 1 1 1 1 5 Test Statistics Advertisement ChiSquare(a.0 Quality 6.0 .0 1.000 Expected N 1.00 Total Observed N 1 1 1 1 1 5 Expected N 1.896 a 5 cells (100.00 44.0 1.000 4 Price .000 .0 1.00 9.00 14.00 27.00 Total 10.00 39.0 1.00 33.00 23.3. The minimum expected cell frequency is 1.0 1. Sig.0 1.00 Total 1.0 .0 1.0 Residual .3 1.00 37.0 Residual .00 22.0 .3 1.3 -.3 10.0 1.00 29.3 1.0 1.7.b) df Asymp.00 15.0 .00 7.0 1.0 .3 -.0 .000 4 Brand .0.0%) have expected frequencies less than 5.000 4 Quality .000 4 1.000 1.0 .00 Total Observed N 1 1 1 1 1 5 Expected N 1.3 Residual . .00 12.600 3 Promotion .8 -.0 Expected N 1.
373 5 -.372 . ** Correlation is significant at the 0.179 .760 .021 5 .001 5 5 1 .046 5 .774 5 -.135 .01 level (2-tailed).092 5 .760 .342 .342 Sig.933(*) .516 Availabilit y .514 5 .340 .839 5 .514 5 .816 .828 5 .084 5 5 .789 5 .774 5 -.816 .933(*) . (2tailed) N -.891(*) .126 . (2tailed) N .839 5 .373 5 -.828 5 .198 5 -.989(**) .789 5 .372 .573 5 .092 5 . (2tailed) N -.573 5 .066 .650 5 .516 .828 .448 Sig.989(**) .828 Price Pearson Correlation Availability Pearson Correlation Quality Pearson Correlation Brand Pearson Correlation Promotion Pearson Correlation * Correlation is significant at the 0.575 5 5 1 .450 5 .690 .166 .885(*) .05 level (2-tailed).227 .916 5 .538 5 -.650 5 .166 Sig.136 5 5 1 .885(*) Promotio n -.538 5 -.392 .278 .043 5 5 1 . (2tailed) N -.714 5 5 1 .448 Price . (2tailed) N 1 Money -. . (2tailed) N .126 Brand -.021 5 .179 Quality -.227 .450 5 1 .135 .340 Sig.278 Sig.066 .392 Sig.916 5 .690 . (2tailed) N Money Pearson Correlation -.198 5 -.891(*) .CORRELATION TEST Correlations Advertisem ent Advertisem ent Pearson Correlation Sig.046 5 .
Promotion. This means (by the subtraction rule) that the probability that the standard deviation would be greater is 1 . 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 .33% so major factor for the student is not the advertisement but the money that they have. 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. Relative D. Strongly Disagree 7 20 20 33 7 Advertisement Friend Relative Direct sales team Promotion. Advertisement B. 3. 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. Friend C. Neutral 4. A. Direct sales team E. Agree.04.0. Disagree 5.44. Strongly Disagree.96 or . 2.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. Strongly Agree 2. Ha : There is a significant impact of advertisement on students in Delhi.
00000 20.815 5 -.7770 37. (2-tailed) N Promotion Pearson Correlation Sig.8429 2.146 .00000 20.35610 One-Sample Test Test Value = 0 95% Confidence Interval of the Difference Advertisement Friend Relative Direct Sales Promotion t 2.438 3.242 .993 5 5 -.893(*) . (2-tailed) N Pearson Correlation Sig.695 5 5 Friend .9053 5.017 .91548 5.133 5 1 Promotion .0000 20.520 5 .34394 14.005 .922 3.095 5 5 .860 3.893(*) .N Advertisement Friend Relative Direct Sales Promotion 5 5 5 5 5 Mean 20.633 5 -.763 . 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.1571 37.041 5 .242 .095 5 -.899(*) .815 5 1 Direct Sales -.0000 20.009 .0000 20.45755 2.993 5 -.520 5 -.00000 20.988 5 .002 .097 6.147 df 4 4 4 4 4 Sig.0710 11.0000 Std.899(*) .e.035 Mean Difference 20.036 .0000 20. Deviation 18.813 .071 . Error Mean 8.7770 2.633 5 -.3526 Upper 42.009 .20366 6.038 5 -.40175 14.43953 6.038 5 1 Relative -.00000 20.51920 11.695 5 1 Advertisement Pearson Correlation Sig.6474 Correlations Advertisement 1 5 .293 .387 .293 .988 5 .763 .005 .041 5 5 -. (2-tailed) N * Correlation is significant at the 0.133 5 -. (2-tailed) N Friend Relative Pearson Correlation Sig.146 .05 level (2-tailed).00000 Lower -2.813 .9290 28.0947 34. 71% as t test reflects that which means advertisement does impact when we are saying that .21267 Std. (2-tailed) .387 . (2-tailed) N Direct Sales Pearson Correlation Sig.09902 6.
.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. So our alternative hypothesis has been proved that it makes impact to the student of Delhi.
427 5 .357 .133 5 .467 .020 .556 5 -.285 5 .166 5 -.979(**) .763 . Neutral 4.599 .416 .133 5 . A. 3. Agree.725 . 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 -. (2-tailed) N Offers Pearson Correlation Sig.004 5 1 Advertisement -.725 5 -.467 .427 5 -. (2-tailed) N CS Pearson Correlation Sig. Customer service’ C.218 .974 5 1 5 ** Correlation is significant at the 0.725 5 1 Offers .218 . Strongly Disagree.020 .213 5 -. (2-tailed) N Necessity Pearson Correlation Sig.674 .357 . Advertisement D.556 5 5 -.213 5 5 -. Correlations .004 5 -. Quality B.486 5 .1. Strongly Agree 2.166 5 . 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. (2-tailed) N Advertisement Pearson Correlation Sig. Necessity E.763 . Disagree 5.01 level (2-tailed).974 5 5 1 CS .599 .725 . (2-tailed) N 5 .486 5 1 Necessity .674 .416 .979(**) .
000 df 4 4 Sig. Error Mean 9. .33167 9.0000 N 5 5 5 5 5 5 5 Std.33167 7.427 .974 5 Offers .000 1.763 .38083 3.218 .599 .93095 3.44983 7.58 339 27.285 5 .30 249 Upper 27.725 .44983 8. Error Mean 7. (2tailed) 1.979(**) .285 1 CS . 00000 Std.556 Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Lower 27. (2-tailed) N Offers Pearson Correlation Sig.0000 20.9886 3 Std.44983 20.73415 7.725 .133 5 .33167 3.416 -. Paired Samples Statistics Std.416 .674 .486 5 . Deviatio n 22.133 5 .833 62 .004 5 -.Quality Quality Pearson Correlation Sig.467 .2148 6 21.416 .556 5 Necessity .934 79 9.213 5 Advertisement -. (2-tailed) N 5 .000 .0000 20.725 .58 339 27. Deviation 17.467 -.213 5 -. (2-tailed) N CS Pearson Correlation Sig.725 5 -.66060 Pair 1 Pair 2 Pair 3 Pair 4 Quality Advertisement CS Advertisement Advertisement Necessity Advertisement Offers Mean 20.556 5 -.357 Sig.357 .01 level (2-tailed).0000 20.18535 18.427 5 -.0000 20.0000 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 -.486 .974 5 1 5 5 ** Correlation is significant at the 0.725 5 1 5 -.33167 3.166 5 -.357 .0000 20.0000 20.000 Mean Pai r1 Pai r2 Quality Advertisement CS Advertisement .96869 3. (2-tailed) N Advertisement Pearson Correlation Sig. 00000 .30 249 t .218 .427 5 .44983 17.599 .97618 7.004 5 1 5 -.674 .763 .81853 7.020 .979(**) .486 5 1 5 -.020 .218 -. (2-tailed) N Necessity Pearson Correlation Sig.166 5 .467 .
Agree. Strongly Agree 2.47 481 13. E.Pai r3 Pai r4 Advertisement – Necessity Advertisement Offers . Watching advertisement every day.000 . Watching advertisement in a month. No advertisement impact.61 603 5. A.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.761 94 29. Watching advertisement every weekends D. Watching advertisement one time B. 3.000 . Strongly Disagree.99 772 .8841 0 10.99 772 29. C. 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. Neutral 4.e.746 As per the null hypothesis concern i. Disagree 5. 2.7381 5 12. 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. Strongly Agree Neutra Disagre Strongly .347 4 4 1.47 481 17. 00000 2.000 00 23.
(2tailed) N 1 Everyday -.96869 6.1246 36. (2tailed) N -.031 .4562 33.5438 6.11555 3.00000 20.0000 20.40588 4.502 5 -. (2tailed) N .071 Weekends -.195 5 -.67479 7.941(*) No .81853 13.214 5 -.54977 7.017 5 .804 .0000 20.693 .00000 20.004 .108 df 4 4 4 4 4 Sig.0000 20.195 5 5 1 .214 5 5 1 .633 .015 Correlations One One Pearson Correlation Sig.40967 17.510 3.5914 -2.066 .909 5 1 .804 Month .00000 Lower 4.672 .023 .5165 Std.4086 42.672 Sig. (2-tailed) .00000 20.270 5.909 5 . Deviation 12.402 .693 .623 .0000 Std.983(**) Mean Difference 20.0000 20.402 Sig.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 20.071 Sig.604 2.502 5 -.9795 29. Error Mean 5.88577 One-Sample Test Test Value = 0 95% Confidence Interval of the Difference One Everyday Weekends Month No t 3.61577 10. (2tailed) N Everyday Pearson Correlation -.0205 10.4835 Upper 35.86826 Weekends Pearson Correlation Month Pearson Correlation .941(*) .101 5 -.017 5 5 5 .101 5 -.00000 20.930(*) .872 4.1246 3.
930(*) .01 level (2-tailed).623 . Agree.252 5 -. Disagree 5.003 5 * Correlation is significant at the 0. Personal contact.022 5 1 .262 5 . 1. 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.3% of the customer does not know about that product. Neutral 4.No Pearson Correlation . Advertisement B. Do you think in the only advertisement can change you purchasing power decision or other factor also influences that? Please rate this factor on 1.983(**) . Hypothesis III Ho : There is no significant difference in the impact of advertisement on college students and school students. Environment Family Friends. ** Correlation is significant at the 0. Environment of school or College D. So significance level is much higher in the case of Daily advertisement for the student. C. F. Movie Agree 14 20 47 41 48 37 . Family E. (2tailed) N -. Strongly Disagree.633 Sig.05 level (2-tailed). A. 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. Strongly Agree 2. Friends. 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.
Please rate this factor on 1. Strongly Agree 2. Brand reconnect D. 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. Emotionally B. CHAPTER-5 MAJOR FINDINGS AND DISCUSSIONS • People are more affected by advertisement with moving image. 1. 3. 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. • More number of Delhi’s Student consider advertisement as a source of information rather than a source of entertainment.Ha : There is a significant difference in the impact of advertisement on college students and school students. Out of 100 student 62% of them are going for the advertisement because of the information that they will . Strongly Disagree. Which way of advertisement impacts you and your personal expenses. Spreading the product knowledge C. Agree. Disagree 5. Neutral 4. A.
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. • 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. • The effect of intensity is very powerful on the opinion of consumers about the product. .get from that for example latest trend and what phone going to be launch in the market etc. • Language used in the advertisement affects a lot on the opinion of consumers about 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. 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. • 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. • Information provided in the advertisement affect 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.r. 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. In coming months of advertisement there are lot many social issues covered by the organization w. This has been told by the 74% of the students from the Delhi and from the schools and college going as well. • Presence of social issues in advertisements affects very much on the opinion of consumers about the product.
Pollay and Mittal. All the foregoing aspects are apt to .• 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. Pollay. fake claims. 1964. Again. (O’Donohoe. This means (by the subtraction rule) that the probability that the standard deviation would be greater is 1 . 1986.0.96 or . the public image of advertising is still a matter of great concern.1993).33% so major factor for the student is not the advertisement but the money that they have.1995). promoting adverse values. subliminal seduction messages and persuading people to buy things they no longer need (Katona. 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. Advertising is criticized for its presenting misleading information.44. this industry is blamed of spreading unsustainable consumption patterns around the world over and encouraging excessive consumption. 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.04.
2001. Wolburg and Pokrywczynski. At the same time majority of the respondents consider the advertising to be an important tool for the economic growth. 1987. establish brand loyalties that continue long after the college days. promotes materialism and inculcate obscene values in the youth populace of Delhi. They have dominating role in opinion making. guaranteeing the quality products and an effective means to curtail prices. it is critical of the advertising concerns to follow the public opinion advertising for its for reaching impact on the economy. 1981. The results of the research clearly reveal that most of the respondents feel that the ongoing advertising is unethical because of its deceiving. Wright. That is why. cultural values and on the business itself. They are the outstanding asset for the product and service sellers as they are the trendsetters and early adopters. 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. To exploring the college students’ attitudes towards advertising is important for several reasons. improvement of standard of living.. The advertising is considered to be the sole source which convinces the people to buy the products that they no more need. 2000). and ensure a higher standard of living after their graduation (Morton. 1993. 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. 1986). The results . exaggerating nature for and putting more emphasis on the sex appeals. 1982). Therefore. exclusive studies on the students’ attitude towards advertising are being carried out in different parts of the world today. They can influence the purchasing decisions of their peers and parents. They have considerable amount of money at their disposal.hinder its effectiveness as well as efficiency as a marketing tool (Beales et al. 1996. They are a large and ever growing segment of the populace. (Wills and Ryans. The students represent a sizeable segment of the society. The results of the study show very significant negative feelings of the respondent about the social consequences of the current advertising. Calfee and Ringold. confuse the people by creating clutter effect. Pollay and Mittal. Russell.
paulbeelen. Internet 1.google. Branding – Geoffrey Randoll 4. general attitude towards the advertising.decisionanalyst.com . The growing ethical.Ratra 6. V. positive.L.com 3. Advertising Management – concepts and cases Mahendra Mohan. the results of the study highlight the technique as to how to assess and evaluate the ethical.books. www. general attitude of the college students towards the advertising.Saravanavel. Marketing Management – Philip Kotler 3.V. economic and social consequences of the advertising on the part of the marketers and the regulatory authorities before they launch any campaign. Advertising and Sales Promotion Management – S. 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. www.Gupta.com 2.show an overall. Advertising and Salesmanship – P. www. 2. Also. REFERENCES Books 1. Strategic Brand Management – Kapferer 5.
20 to 30 c... Above 40 Occupation: a... Service class [ 1.. Sex: Age: a... Television [ ] .... Female [ ] a........ 30 to 40 d. House hold [ [ [ [ [ [ ] ] ] ] ] ] ] ] b.... Below 20 b....... From where do you get information about the new product? a.... Male [ ] b. Business class [ d. Student c..APPENDIX Name: ………………………………...
Yes b. Does presence of social issues in the advertisement affects your opinion about 1. Does language used in advertisement affects your opinion about the product? 1. Entertainment a. Yes b. Peers (friends/family) [ 1. Yes b. Does an entertaining advertisement influences your opinion about the product? 1. No the product? a. Newspapers c. Does information provided in advertisement affects your opinion about the 1. Does intensity of the advertisement affects your opinion about the product? 1. Yes b. No a. No product? a. Do you think advertisement helps in increasing sales of any product? 1. For you advertisement is a source of a. Yes b. No the product? a. Information b. Magazines d.b. Yes b. Moving image (Television / Internet) 1. Yes b. Which type of advertisement influences you more? . Does presence of any celebrity in the advertisement affects your opinion about 1. No [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] 1. Still image (Magazines / Newspapers) b. Which form of advertisement do you like more? a. Internet [ [ [ ] ] ] ] [ [ ] ] e. No a. No a.
a. Local advertisement [ [ ] ] . National advertisement b.
Ratra 6. www.com 2. Branding Geoffrey Randoll 4.paulbeelen.decisionanalyst. Advertising Management concepts and cases Mahendra Mohan.com 3. Marketing Management Philip Kotler 3.books. V. Internet 1.Gupta.REFERENCES Books 1.google.Saravanavel. Advertising and Salesmanship P.V. Advertising and Sales Promotion Management S. www.L. www. 2. Strategic Brand Management Kapferer 5.com .
. Entertainment a.. Yes b.. Moving image (Television / Internet) 3. Does an entertaining advertisement influences your opinion about the product? 5......... House hold [ d.. Female [ ] a.APPENDIX Name: Sex: Age: a... Yes b. Student [ [ [ [ [ ] ] ] ] ] ] ] ] b... Male [ ] . 30 to 40 d.... Internet [ [ [ [ ] ] ] ] ] e.. No [ [ ] ] . Does information provided in advertisement affects your opinion about the product? a..... Below 20 b. Television b. b.. Which form of advertisement do you like more? a. For you advertisement is a source of a. Information b.. Business class [ c... 20 to 30 c.. Peers (friends/family) [ 2.. Still image (Magazines / Newspapers) b. Service class [ 1.. Magazines d. Above 40 Occupation: a. From where do you get information about the new product? a.. Newspapers c. No [ [ [ [ ] ] ] ] [ [ ] ] 4.
Does language used in advertisement affects your opinion about the product? a. Does presence of social issues in the advertisement affects your opinion about the product? a. Do you think advertisement helps in increasing sales of any product? a. Which type of advertisement influences you more? a. Does intensity of the advertisement affects your opinion about the product? a. Yes b. No [ [ ] ] 11.6. No [ [ ] ] 9. Yes b. National advertisement b. No [ [ ] ] 10. Local advertisement [ [ ] ] . Yes b. Does presence of any celebrity in the advertisement affects your opinion about the product? a. No [ [ ] ] 8. Yes b. No [ [ ] ] 7. Yes b.
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