Chapter OneIntroduction

Introduction:

Advertising is a paid non-personal communication using various methods like (television, radio billboards and flyers) to reach the audience or the reader to have what we call in marketing brand awareness. It can influence not only the individual’s attitude, behavior, life style, exposure and in the long run, even the culture of the country. In Bangladesh Cellular phone users has boomed more than six cores. It is now one of the largest tax paying sectors. It seems that advertising in telecommunication sector gets more responses than advertising in other industries. This paper deals with the impact of advertising on consumer behavior especially on young generation and more specifically on telecommunication industry. It can be said that the Bangladesh telecom market has a lot of potential to offer considering strategically ignorable or somehow alterable threats. The market looks very potential and prospective. Lots of opportunities are waiting.

Literature Review:

Ademola (2009) studied the effect of consumers’ mood on advertising effectiveness. The study is essentially an experimental where a subject deign was employed. The result revealed that subjects in the induced positive mood group have a more positive attitude and grater intention to try advertised products when compared with subjects in the induced negative mood group. The study suggests that advertisers should present adverts in a context that elicits happiness.Advertising through all mediums influence audiences, but television is one of the strongest medium of advertising and due to its mass reach; it can influence not only the individual’s attitude, behavior, life style, exposure and in the long run, even the culture of the country (Latif and Abideen, 2011) Kotwal et al. (2008b) studied the impact of TV advertisements on buying pattern of adolescent girls. He found that the advertisement played a vital role in introducing a new product in the family list and making better choice during shopping. The girls utilized pocket money received every month for shopping. The adolescent girl is influenced by T.V advertisement when he purchases clothing they were guided by fashion, friend and boutiques. The respondents preferred to buy branded and standardized product which are more advertised on television. Mickel (1990) studied the effects of commercial television on Iraqi consumer. They found that their television advertisement offer knowledge about the advertising company and their products. Advertising can have a powerful influence on women in case food preferences and consumption behavior. Advertising value has increased dramatically in recent years (Ayanwale et al. 2005). In this way, Unsal and Yüksel (1984) states that advertised products generally are to find more favor in consumers’ eyes than unadvertised ones.Morden(1991) is of the opinion that advertising is used to establish a basic awareness of the product or service in the mind of the potential customer and to build up knowledge about it.

Chapter Two

Model SpecificationThe six major marketing promotion tools i.e., advertising, personal selling, sales promotion, direct marketing publicity and public relation works as cooperative tools for one another to Achieve a goal, sales.

Chapter ThreeOverall Scenarios

Advertising

The advertising, as Jones defines it is "a sort of machine made mass production method of selling which supplements the voice and personality of the individual salesman, such as manufacturing the machine supplements the hands of the craftsman." It is thus a process of buying/sponsor/identified media space or time in order to promote a product or an idea. From a careful scrutiny of the above definition, the following points emerge.

Advertising is a paid form and hence commercial in nature. This any sponsored communication designed to influence buyer behavior advertising.

Advertising is non-personal. Unlike personal selling, advertising is done in a non-personal manner through intermediaries or media whatever the form of advertisement (Spoken, written or visual). It is directed at a mass audience and not directed at the individual as in personal selling.

To encourage information search: In some cases, it is unreasonable to assume that a consumer is ready to make an immediate purchase based solely on advertising. In these cases, consumers need more information

To relate product to needs: A less direct form of advertising, this category includes those ads that draw a link in the consumers’ minds between the product and their needs as a consumer

To prompt action: Direct action advertising is designed to motivate people to act. It involves ads that try to persuade people to make a purchase,

To modify attitudes: One of the more challenging objectives facing advertisers is to modify Advertising promotes idea, goods and services.

Although most advertising is designed to help sell goods, it is being used increasingly to further public interest goals. Attitudes towards product attitudes towards a product.

Advertising promotes idea, goods and services. Although most advertising is designed to help sell goods, it is being used increasingly to further public interest goals.

Advertising is identifiable with its sponsoring authority and advertiser. It discloses or identifies the source of opinions and ideas.

Telecommunication Sector in Bangladesh

The liberalization of Bangladesh’s telecommunications sector began with small steps in 1989 with the issuance of a license to a private operator for the provision of inter alia cellular mobile services to compete with the previous monopoly provider of telecommunications services the Bangladesh Telegraph and Telephone Board (BTTB). Significant changes in the number of fixed and mobile services deployed in Bangladesh occurred in the late 1990s and the numbers of services in operation have subsequently grown exponentially in the past five years. The incentives both from government and public sectors have helped to grow this sector. It is now one of the biggest sectors of Bangladesh. As a populous country, its huge market has attracted many foreign investors to invest in this sector. The telecom sector in Bangladesh is rapidly emerging. Bangladesh Telecommunication Regulatory Commission (BTRC) is the regulatory authority for this sector, overseeing licensing, policy etc. There are 10 types of telecom operators in Bangladesh. There are 6 mobile phone operators in Bangladesh. These are: Grameenphone Ltd.: Branded as Grameenphone, Sheba Telecom Ltd.: Branded as Banglalink, Axiata Bangladesh Ltd: Branded as Robi, Pacific Bangladesh Telephone Ltd.: Branded as Citycell, Airtel Bangla Ltd. Branded as Airtel, Teletalk Bangladesh Ltd.: Branded as Teletalk

The number of mobile phone subscribers in Bangladesh as of February 2009 was 45.21 million,rising to 76.43 million at the end of June 2011.The problems of telecommunication sector are costing, network, confusing offer, internet service, Change of Government Policy Time to Time, Bureaucracy Problem, technological Problem, Bandwidth Limitation, Lack of Local Entrepreneur, Technological Dependency, Lack of Proper Supervision, Misuse of VOIP, Glass Ceiling Barrier by Government Owned Firm, Barriers to Entry, Threat from Substitute Products, Aggressive SMS and Network Disturbance. The prospects of telecommunication sector are unsaturated Industry, Potential Earning Source of Government Revenue, Density of Population (User), Developing Economy (SME), Future Probability of Adopting High Level Technology, Employment Generation, Complete Communication Package, More Value Added Services, Bargaining Power of Suppliers, Bargaining Power of Customers and Potential Entrants.Segmentation, target market, positioning and marketing mix of telecommunication sector are analyzed in this part. The aim of the study of this thesis report is to analyze the problems and prospects of telecommunication sector and as well as to analyze the marketing strategy of telecom operators of this country.

Impact of Advertisement on Young Generation

Effect of advertisement on purchase of new brand

The research identified that 74.3% respondents after watching advertisement tried to buy new brand because for new features, benefits, qualities, prices and so on. Attitude on not being able to buy the new brand40.7% of the respondents became frustrated when they were not able to buy the desired products seen in advertisements because of financial problems, distribution problems, family decisions and so on.

On the other hand, some became angered and disappointed for not being able to buy the new brand watched in TV commercials and the figure is 25% and 34.

More frequency of advertisement increases the product demand

65% of the respondents agreed that when they observed an advertisement of a product more and more, then they became inclined to purchase that product. The result may be explained by the fact that when people watch continuously the features, benefits, prices and other facilities of a product, they prone to buy that product.

Advertisement Influence to buy convenience products Majority of the respondents (75.7%) were of the opinion that they were influenced by TV commercials to purchase different types of products like food, clothing, cosmetics, stationaries and so on

Opinion about T.V. advertisement on choice making

Majority of the respondents (66.3%) granted thatadvertisements helped them to make a better choice during shopping by providing enough information about the products or brands. Students and Housewives tend to purchase those products which are more frequently advertised on TV. But the rest (33.7%) of the respondents were of the opinion that TV advertisements made them confused for their multiple ranges of brands or products advertised at a time.

Factors affecting the purchase of different productsTV advertisements affect the purchasing decision of women in case of cosmetics, food, clothing and stationary rather than other factors.I observed that television is the most important media of information regarding fashion awareness among adolescents, while friends were the next important source of information. In case of stationary, there is a little bit impact of other factors besides TV advertising.The study also found that respondents consider that ads provide important insights about life, which can be an encouraging outcome for the marketers. However, driving demands for unnecessary products is considered as the most harmful impact of TV advertisement.

Description of the sample

Research Methodology The relevant data of the study were collected from both primary and secondary sources. Secondary data were collected from different journals, books and websites to provide theoretical background to the research problem. On the other hand, primary data were collected through questionnaire. By the term ‘young generation’, I actually meant the people of ages ranging from 16-35.Out of 20 questionnaires, 10 were administered to Comilla city and the rest were administered to the same kind of respondents of Doulotpur. As a technique non-probability, judgmental sampling was applied as it is useful to obtain information from a very specific group

of people. The questionnaire was divided into four parts. Parts two, three and four included the questions specific to the research problem. Questions in part one were associated to the demographic profile of the respondents both open ended and closed ended questions were used to measure consumer response regarding advertisements of mobile operators. Finally, the gathered data from the survey were analyzed using statistical techniques. The general information were analyzed using simple tabular presentation

Demographic Profile

Gender

Gender Responses

Frequency Percent

Male 12 60

Female 8 40

Total 20 100

Rural and Urban Respondents

Rural Urban Total

Male 5 5 10

Female 5 5 10

Age

Among the fourage groups of respondents, 60 (30+30) percent respondents of Male & female were within the below 25 years age group.

Table 2: Respondents (Age based)

Age

Male

Frequency Percent

Female

Frequency Percent

16-20 3 15 3 15

21-25 3 15 3 15

26-30 2 10 210

30-35 2 10 2 10

Education

High school 4 ( Frequency)

Vocational school or Colleges 2

Under graduate 6

Graduate 8

Total

Occupation

Student 12

Officer 2

Business owner 2

Government employee 2

Housewife 1

Others 1

Total 20

Demographic Significance

50% respondents from the age group 25-35 and 74% respondents belonging to the age group below 25 watch TV ads as a form of pleasure. However, almost 68% respondents of 30-35 age group does not consider TV ad as fun and enjoyment. Moreover, 60% respondents of 36-40 age group & 44% respondents of 41-45 age group believe that ads teach people to respect each other.

Impacts of Advertisement on Young Generation in the Telecom Industries

Particulars Yes ( % ) No (%) Don’t know ( % )

TV ads are meant for creating brand awareness 55 25 20

It helps in recalling brand name 30 40 30

Ads provide adequate information 19 21 60

When I view a good ad I pay full attention to it 15 57 28

I recommend good TV ads to others 20 70 10

Ads help me make good purchase decisions 35 45 20

I feel more inclined to buy a product after watching 20 55 25

an ad.

Ads are a nuisance 47 33 20

TV ads are entertaining, pleasing and enjoyable 35 28 37

Credibility of TV ads is much more than other medias

40 39 21

I switch channels during TV ads 50 40 10

Attitude on not being able to buy the new brand

Responses Frequency Percent

Frustrated 6 30

Angered 7 35

Disappointed 7 35

Total 20 100

Table-: TV ads influence you to buy convenience products

Responses Frequency Percent

Strongly disagree 1 5

Disagree 3 15

uncertain 3 15

Agree 8 40

Strongly agree 5 25

Total 20 100

Table-: Effect of advertisement on purchase of new brand

Responses Frequency Percent

Want to buy the new Brand 8 40

Continue with your old brand 12 60

Total 20 100

Opinion regarding the role of T.V. Advertisement on buying behavior

Responses Frequency Percent

Introducing new product in the family list. 5 25

Reinforcing familiarity of the product 8 40

Convincing to purchase the product. 3 15

Time saver

Total

4

20

20

100

More frequency of television advertisement increases the product demand

Responses Frequency Percent

Strongly Disagree 4 20

Disagree 3 15

Uncertain 1 5

Agree 7 35

Strongly Agree 5 25

Total 20 100

Key Findings.

Television ads are still considered to be a significant medium to consumption related information and its role in successful marketing of a company’s products and services.

Brand awareness and brand recall is considered to be most important purpose that an ad serves.

Humor appeal ads are preferred the most, followed by the ads portraying luxurious appeal by young consumers.

Ad endorsements by film celebrities and sports personalities are most preferred by the respondents. Ads portraying experts endorsing the products in TV are least preferred.

Television ads are still considered to be a significant medium to consumption related information and its role in successful marketing of a company’s products and services.

Further analysis reveals that young consumers possess overall a favorable attitude towards advertisements and its role in impacting their buying behavior.

Use ideas, words or images that are distasteful. Use inappropriate message about product.

Chapter Five

Problem Identification and Recommendations

Problem

People are getting bored to advertisement. Technological diversification creates problem for surviving Media diversification also is a problem for reaching all the target audience Lack of knowledgeable person in the field of advertising Clutter most often create problem. Ads are often misled or misguided. Requires huge amount of budget.

Recommendations

Proper skill and training is necessary To avoid clutter, suitable media and proper timing of advertising is necessary. Add more budgets. To cope up with the technological diversification.

Conclusion:

The sector of telecommunication industry in Bangladesh is emerging day by day. Though there are some problems in the sector of telecommunication in Bangladesh, there are some prospects also have. If all telecom operator come in one platform for giving better service to all types of subscribers, then total industry will able to earn more profit and confidence of general subscribers.

Advertising can have wide-ranging repercussions on a society more especially youth. The findings clearly indicate that young consumers perceptions and attitude is very positive towards advertising and its role in brand awareness and brand recall. Youth advertising is an important determinant of consumer behavior; it has been shown to have an influence. Critics argue this because they believe that youth are more influenced by advertising messages than adults are.

References:

Ayanwale, A. B., Alimi, T. and Ayanbimipe, M. A. (2005), “The Influence of Advertising on Consumer Brand Preference”, Journal of Social Science, 10(1), 9-16

Malathi, N.T. and Kumar, R. K. (1989), “Effectiveness of mass media advertisements: A case study of Mysore Cityaudience”, Vidura 26(1): 26-27

IMC Keneth E Clow & Donald Baack, Forth Edition.

Larkin, E. F. (1979). "Consumer Perceptions of the Media and Their Advertising Content." Journal of Advertising (8:2), 1979, pp.5-7.

Sandage and Leckenby. “Student Attitudes Toward Advertising: Institution vs. Instrument.” Journal of Advertising (9:2), 1980, pp. 29-32

Appendix 1:Questionnaires

Name:…………….. Address: …………………..

Occupation: ………… Educational Background….

Age: ……..

1. What types of ad you appreciate most?

¤ Emotional ¤ Rational ¤ Thrilling ¤ Social Concern

2. Do you pay attention TV advertisement?

¤ Yes ¤ No

3. What type of appeals used in ads do you prefer most?

¤ Humor ¤ Emotion ¤ Sex ¤ Fun ¤ Informative

4. In what reason you watch TV ad?

¤ To get Information ¤ To be entertained ¤ To pass time

5. Do TV ads influence on your buying behavior?

¤ Yes ¤ No

6. Factor affecting to switch to new brand in lie of advertisement?

¤ Poor product quality ¤ False Statement ¤ Gap between actual and proclaimed performance

7. Do TV ads help you to know brand extension?

¤ Yes ¤ No

8. What types of Endorsements in Ads do you prefer most?

¤ Celebrity ¤ Expert ¤ Common People ¤ Animation

9. Effect of brand choice for ad?

¤ Brand Recall ¤ Brand repurchase ¤ Brand loyalty ¤ Feeling happy to use advertised product

Appendix-2:Some Sample Telecommunication Ads

Sample-1

Sample-2