PROJECT REPORT

IMPORTANCE OF ADVERTISING
IN HOTEL INDUSTRY
SUBMITTED BY:
Aman Bansod
Roll No :- 1741102016
3rd Year B.SC IN HOSPITALITY & HOTEL ADMINISTRATION

UNDER THE GUIDANCE OF:

....................

CONTENTS
CHAPTE PARTICULARS
 ACKNOWLEDGEMENT
CERTIFICATE FROM THE GUIDE
DECLARATION BY THE STUDENTS

CHAPTER I
 INTRODUCTION
 OBJECTIVES

 RESEARCH METHODOLOGY & METHOD OF

DATA COLLECTION
 LIMITATION

CHAPTER II
 THEOROTICAL FRAMEWORK

CHAPTER III
 RECOMMENDATION
 CONCLUSION
 BIBLIOGRAPHY
 QUESTIONNAIRE

ACKNOWLEDGEMENT
This Project entitled “ Importance of Advertising in hotel
Industry” Prepared by me has been possible owing to the
relevant data and information collected from different sources
like website, Newspaper and through personal investigation.

For this project work, I would like to thank my

Guide Mr.R.K gupta in particular for his valuable and
complete guidance in preparing the project report.
Aman Bansod
B.SC IN HOSPITALITY & HOTEL
ADMINISTRATION

IHM Bhopal

CERTIFICATE OF THE GUIDE

This is to certify that the project work entitled “ Importance of Advertising in

hotel Industry” submitted by Aman Bansod NCHMCT Roll No. : 1741102016.

is an authentic work carried out by her under my complete guidance. The work is the
result of her own research work to the best of my knowledge and belief.

Guides Signature
CHAPTER I
 INTRODUCTION
 OBJECTIVES
 RESEARCH METHODOLOGY
 LIMITATION
 INTRODUCTION

Advertising the means of informing as well influencing the

general public to buy the products or services through visual

or oral messages. A product or service is advertised to create

awareness in the minds of potential buyers. Some of the

commonly used media for advertising are T.V, Radio, Websites,

Bill-boards, Hoardings, and Magazines etc. as a result of

economic liberalization and changing the social trends

advertising industry has grown in the last decade.

Advertising is one of the aspects of mass communication.

Advertising is actually brand-building through effective

communication and is essentially a service industry. It helps

to create demand, promote marketing system and boost

economic growth. Thus advertising forms the basis of

marketing.

Advertising plays a significant role in today’s highly

competitive world. A career in advertisement is quite

glamorous and at the same time challenging with more and

more agencies opening up every day. Whether its brands,

companies, personalities or even voluntary or religious

organizations, all of them use some form of advertising in

order to be able to communicate with the target audience. The

salary structure in advertising is quite high and if you have

the knack for it one can reach the top. It is an ideal profession

for a creative individual who can handle work pressure.

Today, new areas are emerging within advertising like event

management, image management, internet marketing etc.

Event management wherein events are marketed, image

management wherein a particular profile of an individual or an

organization is projected. Internet marketing has also brought

about a lot of changes in advertising as internet means that

one catering to a select group of audience rather than a mass

audience.
 OBJECTIVE

The primary objective of the study is Importance of Advertising in Hotel

Industry, to analyze the behavior, choice and need of advertisement among

different consumers because these consumers are either informed or

persuaded by the big business about their products availability in the market.

Secondly my focus is on the positive aspect of advertising on business and

consumers.
 METHODOLOGY

A survey was conducted among different groups of people with

the help of a questionnaire. A 16 point questionnaire was

prepared.

The different groups were:

1. college student

2. Businessmen

3. Servicemen

4. Professional

After getting the questionnaire filled by different people and

also interviewing them I have analyzed the data on the basis of

information filled in by them as regards the impact of

advertising on consumers.
Data analysis is prepared through graphs, diagrams and

statistical method along with the report there upon. Some

suggestions have been also inculcated.

 LIMITATIONS

1. Small universe

The Universe for this study is too small therefore the

findings may not truly represent the conditions in the

entire industry.

2. Problem of Accessibility

it was very difficult in approaching the executives or

the Guest as they would be busy, Despite prior

appointments, they were inaccessible at times being

engaged elsewhere.

3. Constraints of time

The respondents due to non-availability of time could

not discuss many aspects of the topic in depth.

4. Lack of Interest

Many respondents were just not interested in interacting

as they considered it to be a waste of time, a non-

lucrative approach. This negative approach was quite

impairing.
CHAPTER II
 THEOROTICAL
FRAMEWORK
 POSITIVE ASPECT OF ADVERTISING

ON BUSINESS HOUSE ON CONSUMERS

1. Improve goodwill by 1. Increase their knowledge

Publicity brand name base regarding different

2. Increase their consumers goods and services in the

Base which correspondingly market

Increases the revenue of the 2. Give them wider choice to

Firm because of the increased choose among products

Demand of the firm. Available.

3. Provide consumers value

For their money.

 Advantages to the advertisers

 The advertisers have complete control. Unlike public

relations efforts, you determine exactly where, when and

how often your messages will appear, how will it look and

what it will say. The advertiser can target your audience

more readily and aim at very specific geographic areas

and vertical markets.

 The advertiser can be consistent, presenting your

company’s image and sales message repeatedly to build

awareness and trust. A distinctive identity will eventually

become clearly associated with your company, like hotel.

Customers will recognize you quickly and easily – in ads,

mailers, packing, or signs – If you present yourself

consistently.
 Advertising Drawbacks

 Multiplication of need advertising multiplies the need of

the people by inducing them to buy even those things

which are not required by them. Since advertising is

continuously repeated, it creates a desire in the mind of

the public to buy the advertised product. Sometimes, the

product advertised is only a slight improvement over the

existing product. This leads to waste of social resources.

 Burden on customer. The amount spent by an advertiser

on his products advertisement is added to the

distribution cost of the product. Thus, the customers

have to pay more for the product advertised. But it

should also be remembered that advertising facilitates

the large scale production which leads to reduction in the

cost of production per unit.

 Shifting of demand. Advertising does not always increase

the demand of the product. When the demand is

inelastic, advertising shifts the demand from one

producer to another. That Means a large amount of

 money spent on advertising by all the manufacturers

goes waste.

 Wasteful expenditure. Advertising involves huge wasteful

expenditure because a large no of advertisements either

escape the attention of the people or are ignored by them.

Sometimes, advertising creates no demand but shifts it

from one producer to another. It is said that advertising

encourages extravagance among the people.

Thus we can say that advertising is very useful marketing

activity. Its drawbacks could be removed if the people and the

government keep a watch on the advertiser. People should

satisfy themselves about the claims made by a producer before

they purchase his products. The manufacturers or the

advertisers should also avoid wasteful advertising and keep

advertising expenditure within limits. They should also follow

the ethical standards while advertising a product.

 BENEFITS OF ADVERTISING

Benefits to customers

 It helps the customers to know about the existence of

various products and their prices. Thus the sellers

cannot exploit them.

 It educates the people about new products and diverse

uses.

 In increases the utility of existing products because it

adds to the amount of satisfaction, which is derived from

the customer

 It stimulates research and development activities and

hence ensures the supply of products of better quality to

the customers.

Benefits to Society

 It provides employment to the persons in the field of

advertising
 It promotes the standard of living of the people by

increasing the variety and quality in consumption as a

result of sustained research and development activities.

 It educates the people about the various uses of different

products and thus increases their knowledge.

 It sustains the press and another media; it is because of

advertising that the media survives.

 It also helps in finding customers in international

market, which is essential for earning foreign exchange,

and hence our economy is uplifted.

 ROLE OF ADVERTISING

In developing countries like India advertising plays four

different roles in an economy

 Marketing role

 Communicational role

 Economic role

 Societal role

Marketing role

Marketing is the strategic process that satisfies customers

needs and wants through goods and services. It aims at target

market with the help of certain tools called product, place and

price. It also includes a mechanism of communication for

communicating information to customers which is called

marketing communication. It is also called promotion. Then

communication or promotion mix can further be studied

under communication techniques called advertising, sales

promotion, public relations, personal selling. Advertising is

only one of the elements of promotion. Overall communication

program but is a most visible one.

Communication role

It is a form of mass communication. It transmits different type

of market information to match buyers and sellers in the

market place. It transforms and informs product by creating

an image that goes beyond straightforward facts.

Economic role

Two schools of thought are there

1. Market power school of thought

2. Market competition school of thought

According to the first advertising is a persuasive

communication tools used by the marketers to distract

consumer attention from price to product. The other version

is, it is a source of information that increase

Consumer sensitivity and stimulate competition. Little is

known about its nature Prof. Sandag is if the view that it

assessed in developing the judgment, on the part of consumer

in their purchase strategies but looking into the benefits of

advertising he can say advertising plays a very important role

in the development of economy and we cannot think of an

economy without advertising.

Societal role

Advertising also performs certain societal roles

1. It tells us about the news, the improved products and

their uses.

2. It helps to compare products features and make

informed decision making

3. It tells as about fashion and design trends

4. Of lately, advertising has also started giving due

consideration to ecological and environmental issues.

Now it has started taking into account the factors, which

affect the consumer and the society, and hence has tried

to build up a new and better environment.

 OBJECTIVES OF ADVERTISING

A. General objectives of advertising

 Increase in sales

 Increase in profit

Advertising goal is a specific communication task to be

accomplished among a definite audience to a given degree in a

given period.

1. Effect of advertising on demand ( increase in sales )

2. Effect of advertising on profit ( increase in profits )

B. Specific objective

According to Kotler

1. To inform the public

a) Telling the market about the new product

b) Suggesting new uses of the product

c) Informing the market of the price change

2. To persuade

a) Persuading customers to purchase now

b) Persuading customers to receive a sales call

3. To remind

a) Keeping it in their minds during off-season.

 TYPES OF ADVERTISING

It is conceptually more interesting and analytically more

important to classify advertising. The basis of classification

can however be diverse as will be evident from below:

1. Geographical spread

On the basis of the geographical spread, advertising can

be classified as

 National

 Local

 Global

a. National advertising: Some manufacturers may think

that their target is the entire country. They select media

with a countrywide base. Generally, large, established

firms belong to this category. Among them is Hindustan

unilever, Brooke bond, Larsen & turbo, Escorts,

associated cement companies and the like.

b. Local advertising: Small firms may like to restrict their

business to state or regional. Some firms first localize

their marketing efforts and once success has been

achieved, they spread out to widen horizons. A classic

 example is Nirma washing powder, which initially was

sold in Gujarat subsequently, entered other markets. In

recent years, several magazines have appeared which

focus on a particular city and are of direct relevance to its

inhabitants like the Bombay and island.

c. Global advertising: Multinational firms treat the world

as their market. Firms such as national, IBM or Sony or

Ford advertise globally, E.g. in periodically like times and

reader’s digest.

2. Target Group

On the basis of target group aimed at

a) Consumer advertising

b) Industrial advertising

c) Trade advertising

d) Professional advertising

A. Consumer advertising: A very substantial portion of

total advertising is directed to buyers of consumer

products who purchase them either for their own use or

 their household’s. The fact that buyers of consumer

items are generally very large and are widely distributed

over a large graphical area enhances the importance of

advertising as a marketing tool. These advertisements are

indented to promote sale of the advertised products by

appealing directly to the buyers/consumers. Such

advertising is called consumer advertising.

B. Industrial advertising: These refer to those

advertisements, which are issued by the manufacturers,

distributors to the buyers of industrial products. This

category would include machinery and equipment,

industrial intermediaries, parts and components, etc.

Here the target group is small.

C. Trade advertising: Advertisements which are directed

by the manufacturers to the distribution channel

members, such as wholesalers or retailers are called

trade advertising. The objective of such advertising is to

promote sales motivating the distribution channel

members to stock more to attract new retail outlets.

D. Professional advertising: There are certain products for

which the consumers themselves are not responsible for

the buying choice. The classic examples are

pharmaceuticals where doctors make the decision while

the consumers are the patients. Almost similar situation

exists in the field of construction where architects, civil

engineers and contractors are the decision makers. Firms

operating in such market segments, therefore have to

direct their advertising to these decision makers, who are

professional people. Such advertising is called

professional advertising.

MEDIA ADVANTAGES DISADVANTAGES

TELEVISION  Mass coverage  Low selectivity

 High reach  Short message

 Impact of sight, life

sound, and  High absolute

motion cost

 High prestige  High

  Low cost per production

exposure cost

 Attention  Clutter

getting

 Favorable image

RADIO  Mass coverage  Audio only

 Low cost  Clutter

 High frequency  Low attention

 Flexible getting

 Low production  Fleeting

cost message

 Well segmented

audience

MAGAZINES  Segmentation  Long lead time

potential for ad

 Quality placement

reproduction  Visual only

 High  Lack of

informational flexibility
 content

 Longevity

 Multiple reader

NEWSPAPERS  High coverage  Short life

 Low cost  Clutter

 Ads can be  Low attention

placed in  Poor

interest reproduction

sections quality

 Timely  Selective

 Readers control reader

exposure exposure

 Can be used for

coupons

OUTDOOR  Location  Short exposure

specific time
  High repetition  Poor image

 Easily noticed  Local

restrictions

DIRECT MAIL  High selectivity  High cost

 Reader controls  Poor image

exposure  Clutter

 High

information

content

 Opportunities

for repeat

exposures

INTERNET  User selects  Limited

product creative

information capabilities

 User attention  Web snarl

and involvement  Technology

 Interactive limitations

relationship  Few valid

  Direct selling measurement

potential techniques

 Flexible  Limited reach

message

platform

ACTORS AFFECTING CHOICE OF MEDIA

The choice of media depends upon various factors and has to

be selected very carefully because advertisement requires lots

of money and effort.

One factor to be considered is the role the media plays in the

lights of it’s:

 Audience: these vehicles should be compatible with the

product and services, which are advertise.

  The availability is another criterion, which needs the

considered.

 Another consideration is the ability of the vehicle to reach

to the target audience with minimum waste coverage.

Most sophisticated advertisers select media vehicles on

the basis of their efficient coverage of heavy users rather

than regular ones.

HOWEVER THE FOLLOWING FACTORS SHOULD BE

CONSIDERED IN THE SELECTION OF MEDIA

 Advertisement objectives

The most important consideration in choosing a media is

the objective of the advertiser. The objective includes the

specification of the target customer and the intended

effect of the message upon him. For Example - home

appliances.
 Media circulation

A desirable medium is the one whose listeners, viewers or

readers are target consumer of the marketers. Media

circulation must match the distribution pattern of the

product. Therefore, geographic scope of the market will

considerably influence the choice of media. Those media

should be selected which will reach the desired type of

market with a minimum of waste circulation

 Cost of media

Two important things are to be taken into account-

(i) The amount of fund available

(ii) The circulation of media

Another important criterion is cost, both total and per

contract. The

total cost divided by the number of target audience.

Generally, it is expressed in terms of cost per 1000.

Generally, direct mail has a lighter cost whereas newspaper

has lower cost.

 Nature of message

The media preferred should be compatible with the

advertisement message. For example – technical products

(the best medium for these products are magazines,

practically demonstration).

 Time and location of buying decision

The advertiser should select the medium, which will reach

the prospective customer at the time he makes his buying

decision.

 Cooperation and promotional aids by media

A manufacturer may want to tie up with the advertising

agency. Obviously he would find those media better

which offer re-prints or window displays. The

management may select the medium, which provide such

a kind of service.

 Nature of product
It also has an important bearing on the medium of

advertisement. Two types of goods are Consumers and

Industrial good.

 Nature of market

The market can be either local or national. Film

advertisement and outdoor advertisement are more suitable

for local products while newspapers are more suitable for

national advertisement.

 Life of advertisement

Magazines and direct mail have a longer life. But the life of

newspaper, radio and television is very short. Hence, the

advertiser should also take into consideration the duration

of advertising.

FINDINGS
 AND

CONCLUSIONS

According to the survey which is conducted by me total

number of male student who have filled the questionnaire are

17.14% , Female students are 21.14% , Serviceman are

11.42%.Professional are 11.42%, businessman are 17.14%

and housewives are 15.17%.

According to the questionnaire:-

Why do we buy a product?

 To satisfy a need

 To look for certain benefits from products

 Both of the above

15.17% people think they buy a product to satisfy a need ,

15.71% people think they buy a product to look for certain

benefits and mostly people i.e. 69.58% consider both the

factors i.e. to satisfy a need and look for certain benefits while

buying a product.
According to another Question.

Why do we buy particular brand of product

 Due to your belief

 Due to your experience

 Due to reference

 Due to advertising
8.57% people buy a brand product due to their belief , 42.85%

people due to their experience, 15.71%due to reference as

given by friends , relatives and consumer reviews , and

32.86% people due to advertising . But most people try

products from ads.

According to survey, I reached to the conclusion that, most of

people want to promote the advertisements. Businessman and

professional influenced by the internet and newspaper as they

get less time to watch the television. Students and Housewife’s

get influenced through magazines and television. Even

Serviceman gets influenced through all kinds of media like

television, internet, newspaper and magazines.

People have different opinion when it comes to the meaning of

advertisements or what it informs you like

 It informs, convinces and helps to remember the brand

while purchasing.

 Entertain while explain

 It is the way to sell the cheap products.

And mostly people opt for 1st option.

People get influenced through the advertisement which is

related to their field like children get influenced through these

ads that promote products like beverages. Children easily get

convinced by those advertisements which used animations

and songs.

SUGGESTIONS

 Consumers of all groups under study generally like ads

with children, so more and more ads with children

should be promoted.
  A high percentage of consumers appreciate film

celebrities after children in ads so, advertisers should try

to get their products promoted through them.

 All consumer groups are influenced by ads of eatables,

cold drink, etc. hence more and more such ads should be

placed.

 Some persons are deceived by certain ads. They may take

the advantage of CONSUMER PROTECTION ACT, 1986.

The main purpose of this act is to safeguard the interests of

consumers as against the trading segment of society. The act

helps the fate of the consumers. It provides a cheap,

expeditious, quick and swift remedy. It is a measure of sure

and swift justice. It brings justice to the doorsteps of the

consumers. The act covers all kind of services. It also covers

all kind of consumer dealings whether cash or in kind, it

protects the consumer from the burden of restrictive and

unfair trade practices. It enables the CONSUMER FORUM

AND COMMISSION to award compensation for not only the

amount lost in purchasing defective material or in hiring

deficient services but also for mental pain and suffering and

harassment caused by defective goods and services. This act

protects consumers from deceptive advertisement also.

CONCLUSION

Consumers of all groups whether it is housewives or

professional or student, all feel advertisements should be

promoted as it helps the consumers in taking a decision as to

which product to buy. It is essential part of business world.

Advertiser should be careful in choosing the type and media of

advertising so that it has a positive impact. Moreover

advertiser should be careful that the ad given by him is not

deceptive lest he may be sued under CONSUMER

PROTECTION ACT. 1986.

I have prepared this project with a hypothetical objective, that

advertising always has positive impact on both the business

houses and the final consumer. But, later on after doing this

survey in the market I realize that like every coin, advertising

also has two faces i.e. one is positive impact on society and

business and the other is its negative impact on the same.

 BIBLIOGRAPHY

1. Websites

 www.google.com

 www.wikipedia.com

 www.aef.com/index.html

2. Books

 Julian Petley

 “advertising”

 Advertising and selling- C.B GUPTA

 APPENDICES
QUESTIONNAIRE

This questionnaire is about advertisement. The purpose of this

questionnaire is to know that upto what extent people get

influenced through advertisement. I would like to get some

input on what everyone thinks about it. Please leave your

comments about how you feel on this topic.

1. Age Sex Education

 Under 18 Male Xth/XIIth

 19 – 25 Female Graduate

 25 – 30 Post Graduate

 30 & above

2. Occupation

Student/Businessmen/Housewife/Professional/

Servicemen
 3. Annual Income

 No Income

 Upto 1 Lac

 Upto 5 Lacs

 Upto 10 Lacs

 Above 10 Lacs

4. Which of the following media influences you the

most?

 Radio/TV/Internet/Newspaper/Magazine/Hoarding

5. How many times you have seen the advertisement of (Nos: 0 to 100)?

Ads / Media Colgate Tata Max life Nivea

Indicom insurance cream

Newspaper/

Magazine

Radio
TV

Internet

6. Advertisement’s…. (Put the best choice)

 Informs, convince & helps to remember the brand

while purchasing

 Entertains while explains

 Annoys me & also product becomes costlier

 Are deceptive

 Are the way to sell cheap products

 Other viewpoint

______________________________________________________

______________________________________________________

7. Do you like advertisement that have ….

 Children Yes / No

 Models Yes / No

 Film celebrities Yes / No

 Players Yes / No
8. Name the ads, which In your opinion are …

 Vulgar __________________________________________

 Makes you laugh __________________________________

 Doesn’t convey anything ____________________________

9. Please tell me one of your favorite advertisement and

why?

10. Please tell me one of your disliked

advertisement and why?

11. Have you ever been deceived by any

advertisement ?( if yes please give details )

12. Whether advertisement should be promoted or

not ? Yes/No