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RESEARCH PROJECT REPORT

ONSTUDY IMPACTS OF ADVERTISMENTS ON

CUSTOMERS

Submitted in partial ulillment ! t"e re#uirement !r t"ree Year

$ACHE%OR OF $USINESS ADMINISTRATION

Submitted T!& Submitted $'&

Mr( C"andra)"e*"ar Sin+" S",eta Sin+"

-%e.turer/0 SMS R!ll N!( & 112322

$$A 4t" Seme)ter

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PREFACE

The course of BBA require one to undergo a research project with the end of

the 6 th

Semester, so as to get a practical knowledge and understanding the practical aspects of all the theories read. It helps us to make the best use of our

skills and intelligence so as to make a better research report. It is really the

most important thing during the course of the study. The purpose of my research

project was to study impacts of advertisements on It was a continuous learning

eperience as customers and how it is being effective for marketing strategy.I got to

know different kinds of !dvertisements and how they are conducted and are

beneficial.

S",eta Sin+"

R!ll N!( & 112322

BBA 6th Semester

SMS, Varanasi

ACKNOELEDGEMENT

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I feel a great pleasure in presenting this field research report in the hands

of Mr. Chandrasekhar Singh. It is reall a great opportunit gi!en "

him. #his research $ork is com"ined effort of m "rain and heart.

%irstl I $ould like to thank &od for "esto$ing upon me his kind

"lessing all throughout the pro'ect. I am e(tremel grateful to our

)irector Sir, *rof. *.+.-A and to our BBA Co/rdinator Sir, Mr. Atish

0hadse for pro!iding me this opportunit to pro!e m skills in this

academic pro'ect.

I also e(tended m heartiest gratitude to m mentor for this research

$ork, Mr.Chandrasekhar Singh for his !alua"le support, guidance and

encouragement $ho pro!ided me e!er "it of rele!ant information and

guidance in making these pro'ects a success. It $as a great e(perience

$orking under his super!ision.I speciall $ish to thank all m respondents and m parents as $ithout

their !alua"le support this report $ouldnt ha!e "een possi"le.

S",eta Sin+"

R!ll N!( & 112322

BBA 6th Semester

SMS, Varanasi

DECLARATION

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I, Sh$eta Singh, student of BBA 6 th Sem. declare that the

pro'ect report entitled 5STUDY IMPACTS OF

ADVERTISMENTS ON CUSTOMERS6 is the result of mo$n efforts and is "ased on information collected.

%urthermore, the information presented in this report is correct

to the "est of m kno$ledge.

S",eta Sin+"

R!ll N!( & 112322

BBA 6th Semester

SMS, Varanasi

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TABLE OF CONTENTS

INDEX-

• I:-Preface

• II:-Acknowledgement

• Introdct!on

• O"#ect!$e%

• Im&ortance of t'e %td(

• Sco&e of t'e %td(

• )e%earc' *et'odolog(

• Data Anal(%!% + Inter&retat!on

• F!nd!ng% + )ecommendat!on%

• Concl%!on + L!m!tat!on

• B!"l!ogra&'(

• Anne,re

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INTRODUCTION

It has "een $rongl assumed that the ad!ertising function is of

recent origin. 5!idences suggest that the omans practiced ad!ertising7

"ut the earliest indication of its use in this countr dates "ack to the

middle Ages, $hen the use of the surname indicated a mans occupation.

#he ne(t stage in the e!olution of ad!ertising $as the use of signs as a

!isual e(pression of the tradesmans function and a means of locating

the source of goods. #his method is still in common use. #he seller in

primiti!e times relied upon his loud !oice to attract attention and inform

consumers of the a!aila"ilit of his ser!ices. If there $ere man

competitors, he relied upon his o$n personal magnetism to attractattention to his merchandise. /ften it "ecame necessar for him to resort

to persuasion to pinpoint the ad!antages of his products. #hus, the seller

$as doing the complete promotion 'o" himself.

)e!elopment of retail stores, made the traders to "e more

concerned a"out attracting "usiness. Informing customers of the

a!aila"ilit of supplies $as highl important. Some tpes of outside

promotion $ere necessar. Signs on stores and in prominent placesaround the cit and notices in printed matters $ere sometimes used.

8hen customers $ere finall attracted to the store and

satisfied $ith the ser!ice at least once, the $ere still su"'ected

to competiti!e influences7 therefore, the merchants signs and

ad!ertisements reminded customers of the continuing

a!aila"ilit of his ser!ices. Sometimes traders $ould talk to

present and former customers in the streets, or 'oin social

organi9ations in order to ha!e continuing contacts $ith present

and potential customers.

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As the markets gre$ larger and the num"er of customers

increased, the importance of attracting them also gre$.

Increasing reliance $as placed on ad!ertising methods of

informing a"out the a!aila"ilit of the products. #hesead!ertising methods $ere more economical in reaching large

num"ers of consumers. 8hile these ad!ertising methods $ere

useful for informing and reminding and reminding, the could

not do the $hole promotional 'o". #he $ere used onl to reach

each consumer personall. #he merchant still used personal

persuasion once the customers $ere attracted to his store.#he in!ention of hand press increased the potentialities of

ad!ertising. B Shakespeares times, posters had made their

appearance, and assumed the function of fostering demand for

e(isting products. Another important e!ent $as the emergence

of the pamphlet as an ad!ertising medium. #he earl e(amples

of these pamphlets disclose their sponsorship " companies

$ant to generate good$ill for their acti!ities. #he lo$ cost of

posters and hand"ills encouraged a num"er of pu"lishers to

e(periment $ith other methods.

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.

<

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5S5AC- /B5C#IV5S

#o stud tpes of ad!ertisements.

#o stud effecti!eness of ad!ertisements i.e. on sales,

profita"ilit.

#o stud the perception of consumers to$ards the

product due to ad!ertisement.

#o find the $as to make it more effecti!e.

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HISTORY OF ADVERTISEMENT

Archaeologists ha!e found e!idence of ad!ertising dating "ack to the ===s BC, among

the Ba"lonians. /ne of the first kno$n methods of ad!ertising $as the outdoor displa, usuall

an eecatching sign painted on the $all of a "uilding. Archaeologists ha!e unco!ered man

such signs, nota"l in the ruins of ancient ome and *ompeii. An outdoor ad!ertisement

e(ca!ated in ome offers propert for rent, and one found painted on a $all in *ompeii calls the

attention of tra!elers to a ta!ern situated in another to$n.

In medie!al times $ordofmouth praise of products ga!e rise to a simple "ut effecti!e

form of ad!ertising, the use of socalled to$n criers. #he criers $ere citi9ens $ho read pu"licnotices aloud and $ere also emploed " merchants to shout the praises of their $ares. >ater

the "ecame familiar figures on the streets of colonial American settlements. #he to$n criers

$ere forerunners of the modern announcer $ho deli!ers radio and tele!ision commercials.

Although graphic forms of ad!ertising appeared earl in histor, printed ad!ertising made

little head$a until the in!ention of the mo!a"letpe printing press " &erman printer ohannes

&uten"erg a"out 134=. #his in!ention made the mass distri"ution of posters and circulars

possi"le. #he first ad!ertisement in 5nglish appeared in 13:2 in the form of a hand"ill

announcing a praer "ook for sale. #$o hundred ears later, the first ne$spaper ad $as

pu"lished offering a re$ard for the return of 12 stolen horses. In the American colonies, the

Boston News-Letter, the first regularl pu"lished ne$spaper in America, "egan carring ads in

1:=3, and a"out 24 ears later Ben'amin %ranklin made ads more reada"le " using large

headlines.

In the ?nited States, the ad!ertising profession "egan in *hiladelphia, *ennsl!ania, in

1;31 $hen Volne B. *almer set up shop as an ad!ertising agent, the forerunner of the

ad!ertising agenc. Agents contracted $ith ne$spapers for large amounts of ad!ertising space at

discount rates and then resold the space to ad!ertisers at a higher rate. #he ads themsel!es $ere

created " the ad!ertisers. In 1;6< %rancis Aer "ought out *almer and founded +. 8. Aer @

Son, an agenc that still e(ists toda. Aer transformed the standard agent practice " "illing

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ad!ertisers e(actl $hat he paid to pu"lishers plus an agreed upon commission. Soon Aer $as

not onl selling space "ut $as also conducting market research and $riting the ad!ertising cop.

Ad!ertising agencies initiall focused on print. But the introduction of radio created a

ne$ opportunit and " the end of the 1<2=s, ad!ertising had esta"lished itself in radio to such

an e(tent that ad!ertisers $ere producing man of their o$n programs. #he earl 1<=s ushered

in do9ens of radio dramatic series that $ere kno$n as soap operas "ecause the $ere sponsored

" soap companies.

#ele!ision had "een introduced in 1<3=, "ut "ecause of the high cost of #V sets and the

lack of programming, it $as not immediatel em"raced. As the American econom soared in the

1<4=s, so did the sale of #V sets and the ad!ertising that paid for the popular ne$ sho$s. Soon

#V far surpassed radio as an ad!ertising medium.

#he tone of the ad!ertising $as also changing. +o longer did ad!ertising simpl present

the product "enefit. Instead it "egan to create a product image. Bill Bern"ach, founder of )ole

)ane Bern"ach in +e$ ork Cit7 >eo Burnett, founder of the >eo Burnett agenc in Chicago,

Illinois7 and )a!id /gil!, founder of /gil! @ Mather in +e$ ork Cit, all came to

prominence in the late 1<4=s and 1<6=s and led $hat has "een called the creati!e re!olution.

Bern"achs agenc captured the spirit of the ne$ age. Bern"ach "elie!ed that ad!ertising had to "e creati!e and artistic or it $ould "ore people. -e also "elie!ed that good ad!ertising "egan

$ith respect for the pu"lics intelligence. #he ads his agenc created $ere understated,

sophisticated, and $itt.

%or e(ample, $hen Bern"achs agenc picked up the account for the -enr S. >e!

Baker in Brookln, a "orough of +e$ ork Cit, the agenc created an ad that entertained +e$

orkers and pro!ided fodder for man con!ersations. #he ad sho$ed a +ati!e American eating a

slice of the "akers re "read $ith the headline, ou dont ha!e to "e e$ish to lo!e >e!s.

But it $as the ad!ertising for Volks$agen that made the agencs reputation. At a time $hen

American cars $ere getting "igger and "igger and the ad!ertising for them trumpeted that "igger

$as "etter, )ole )ane Bern"ach created a maga9ine ad that sho$ed a small picture of the

Volks$agen Beetle surrounded " a sea of $hite space $ith the headline, think small. An

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euall uncon!entional ad carried the headline lemon "eneath a photo of an apparentl fla$ed

Volks$agen. #he ads cop e(plained that this Volks$agen missed the "oat. #he chrome strip

on the glo!e compartment is "lemished and must "e replacedD8e pluck the lemons7 ou get the

plums. In an era of hpe and "om"ast, the Volks$agen ads stood out "ecause the admitted

failure in a $itt $a and ga!e facts in a "elie!a"le manner that underlined the cars strengths.

#his $it together $ith a con!ersational and "elie!a"le stle $as a hallmark of the ad!ertising

created " )ole )ane Bern"ach and that stle "ecame highl influential.

#he creati!e foundation esta"lished " Bern"ach and others has "een critical to the

success of contemporar ad!ertising. #he introduction of the #V remote control and access to

hundreds of ca"le channels mean that toda ad!ertising must interest and entertain consumers or

else the $ill simpl use the remote to change the channel. +e$ digital de!ices e!en threaten tomake it possi"le to edit out commercials. #he de!elopment of interacti!e tele!ision, com"ining

the functions of a computer $ith access to highspeed transmission o!er ca"le lines or optical

fi"ers, $ill likel ena"le consumers to select from a !ast !ideo li"rar. Consumers $ill "e a"le to

determine not onl $hen the $atch something, "ut also, to a greater e(tent than e!er "efore,

$hat the $ill $atch. Some industr o"ser!ers "elie!e that as consumers gain greater control

o!er their !ie$ing acti!ities, the $ill find it easier to a!oid ad!ertising.

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DEFINITION OF ADVERTISIN7

#he $ord ad!ertising originates from a >atin $ord ad!ertise, $hich means to turn to. #he

dictionar meaning of the term is Eto gi!e pu"lic notice or to announce pu"liclF.

Ad!ertising ma "e defined as the process of "uing sponsoridentified media space or

time in order to promote a product or an idea.

#he American Marketing Association, Chicago, has defined ad!ertising as Ean form of

nonpersonal presentation or promotion of ideas, goods or ser!ices, " an identified sponsor.F

8"at Ad9erti)ement I):

Ad!ertisement is a mass communicating of information intended to persuade "uers to "

products $ith a !ie$ to ma(imi9ing a compans profits.

#he elements of ad!ertising areG

Hi It is a mass communication reaching a large group of consumers.

Hii It makes mass production possi"le.

Hiii It is nonpersonal communication, for it is not deli!ered " an actual person, nor is it

addressed to a specific person.

Hi! It is a commercial communication "ecause it is used to help assure the ad!ertiser of a long

"usiness life $ith profita"le sales.

H! Ad!ertising can "e economical, for it reaches large groups of people. #his keeps the cost per

message lo$.

H!i #he communication is speed, permitting an ad!ertiser to speak to millions of "uers in a

matter of a fe$ hours.

H!ii Ad!ertising is identified communication. #he ad!ertiser signs his name to his ad!ertisement

for the purpose of pu"lici9ing his identit.

8"at i) In.luded in Ad9erti)in+:

Hi #he information in an ad!ertisement should "enefit the "uers. It should gi!e them a more

satisfactor e(penditure of their rupees.

Hii It should suggest "etter solutions to their pro"lems.

Hiii #he content of the ad!ertisement is $ithin the control of the ad!ertiser, not the medium.

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Hi! Ad!ertising $ithout persuasion is ineffecti!e. #he ad!ertisement that fails to influence

anone, either immediatel or in the future, is a $aste of mone.

H! #he function of ad!ertising is to increase the profita"le sales !olume. #hat is, ad!ertising

e(penses should not increase disproportionatel.

Ad9erti)in+ in.lude) t"e !ll!,in+ !rm) ! me))a+e)G #he messages carried in

+e$spapers and maga9ines7

/n radio and tele!ision "roadcasts7

Circular of all kinds, H$hether distri"uted " mail, " person, thorough tradesmen, or "

inserts in packages7

)ealer help materials,

8indo$ displa and counter J displa materials and efforts7

Store signs, motion pictures used for ad!ertising,

+o!elties "earing ad!ertising messages and Signature of the ad!ertiser,

>a"el stags and other literature accompaning the merchandise.

8"at i) e;.luded r!m Ad9erti)in+:

Ad!ertising is not an e(act science. An ad!ertisers circumstances are ne!er identical $ith those

of another7 he cannot predict $ith accurac $hat results his future ad!ertising efforts $ill

produce.

Hi Ad!ertising is not a game, "ecause if ad!ertising is done properl, "oth the "uer and the

seller "enefit from it.

Hii Ad!ertising is not a to. Ad!ertiser cannot afford to pla $ith ad!ertising. Ad!ertising funds

come from sales re!enue and must "e used to increase sales re!enue.

Hiii Ad!ertisements are not designed to decei!e. #he desire and hope for repeat sales insures a

high degree of honest in ad!ertising.

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T"e a.ti9itie) e;.luded r!m ad9erti)in+ are&

#he offering of premiums to stimulate the sale of products7

#he use of e(hi"itions and demonstrations at fairs, sho$ and con!entions7

#he use of samples and acti!ities, in!ol!ing ne$s releases and the acti!ities of personal

selling forces7

#he pament of ad!ertising allo$ances $hich are not used for ad!ertising7

#he entertainment of customers

Ad9erti)in+ Ob<e.ti9e)

5ach ad!ertisement is a specific communication that must "e effecti!e, not 'ust for one

customer, "ut for man target "uers. #his means that specific o"'ecti!es should "e set for each

particular ad!ertisement campaign. Ad!ertising is a form of promotion and like a promotion7 the

o"'ecti!es of ad!ertising should "e specific. #his reuires that the target consumers should "e

specificall identified and that the effect $hich ad!ertising is intended to ha!e upon the

consumer should "e clearl indicated. #he o"'ecti!es of ad!ertising $ere traditionall stated in

terms of direct sales. +o$, it is to !ie$ ad!ertising as ha!ing communication o"'ecti!es that seek

to inform persuade and remind potential customers of the $orth of the product. Ad!ertising

seeks to condition the consumer so that heKshe ma ha!e a fa!oura"le reaction to the promotional

message. Ad!ertising o"'ecti!es ser!e as guidelines for the planning and implementation of the

entire ad!ertising programme.

T"e ba)i. !b<e.ti9e) ! an ad9erti)in+ pr!+ramme ma' be li)ted a) bel!,&

Hi #o stimulate sales amongst present, former and future consumers. It in!ol!es a decision

regarding the media, e.g., #V rather than print 7

Hii #o communicate $ith consumers. #his in!ol!es decision regarding cop 7

Hiii #o retain the loalt of present and former consumers. Ad!ertising ma "e used to reassure "uers that the ha!e made the "est purchase, thus "uilding loalt to the "rand name or the

firm.

Hi! #o increase support. Ad!ertising impliedl "olsters the morale of the sales force and of

distri"utors, $holesalers, and retailers, 7 it thus contri"utes to enthusiasts and confidence attitude

in the organi9ational. G

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H! #o pro'ect an image. Ad!ertising is used to promote an o!erall image of respect and trust for

an organi9ation. #his message is aimed not onl at consumers, "ut also at the go!ernment,

shareholders, and the general pu"lic.

Imp!rtan.e ! Ad9erti)in+

&enerall, ad!ertising is a relati!el lo$cost method of con!eing selling messages to

numerous prospecti!e customers. It can secure leads for salesmen and middlemen " con!incing

readers to reuest more information and " identifing outlets handling the product. It can force

middlemen to stock the product " "uilding consumer interest. It can help train dealers salesmen

in product uses and applications. It can "uild dealer and consumer confidence in the compan

and its products " "uilding familiarit. Ad9erti)in+ i) t! )timulate mar*et demand. 8hile

sometimes ad!ertising alone ma succeed in achie!ing "uer acceptance, preference, or e!en

demand for the product, it is seldom solel relied upon. Ad!ertising is efficientl used $ith at

least one other sales method, such as personal selling or pointofpurchase displa, to directl

mo!e customers to "uing action.

Ad!ertising has "ecome increasingl important to "usiness enterprises J"oth large and

small. /utla on ad!ertising certainl is the !oucher. +on"usiness enterprises ha!e also

recogni9ed the importance of ad!ertising. #he attempt " arm recruitment is "ases on a

su"stantial ad!ertising campaign, stressing the ad!antages of a militar career. #he health

department populari9es famil planning through ad!ertising >a"our organi9ations ha!e also used

ad!ertising to make their !ie$points kno$n to the pu"lic at large. Ad!ertising assumes real

economic importance too. Ad!ertising strategies that increase the num"er of units sold stimulate

economies in the production process. #he production cost per unit of output is lo$ered. It in turn

leads to lo$er prices. >o$er consumer prices then allo$ these products to "ecome a!aila"le to

more people. Similarl, the price of ne$spapers, professional sports, radio and #V programmes,

and the like might "e prohi"iti!e $ithout ad!ertising. In short, ad!ertising pas for man of the

en'oa"le

entertainment and educational aspects of contemporar life. Ad!ertising has "ecome an

important factor in the campaigns to achie!e such societaloriented o"'ecti!es such as the

discontinuance of smoking, famil planning, phsical fitness, and the elimination of drug a"use.

#hough in India, ad!ertising $as accepted as a potent and recogni9ed means of promotion onl

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24 ears ago, its gro$ing producti!e capacit and output necessitates the finding of consumers

and ad!ertising plas an important role in this process. Ad!ertising helps to increase mass

marketing $hile helping the consumer to choose from amongst the !ariet of products offered

for his selection. In India, ad!ertising as a profession is in its infanc. Because of this fact, there

is a tremendous scope for de!elopment so that it ma "e producti!el used for the "enefit of

producers, traders, consumers, and the countrs econom.

CREATIVE ADVERTISEMENTS

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C%ASSIFICATION AND TYPES OF ADVERTISIN7

1( Pr!du.t = Related Ad9erti)in+

A( Pi!neerin+ Ad9erti)in+

$( C!mpetiti9e Ad9erti)in+

C( Retenti9e Ad9erti)in+

>( Publi. Ser9i.e Ad9erti)in+

?( Fun.ti!nal Cla))ii.ati!n

A( Ad9erti)in+ $a)ed !n Demand Inluen.e %e9el(

A( Primar' Demand -Stimulati!n/

$( Sele.ti9e Demand -Stimulati!n/

$( In)tituti!nal Ad9erti)in+

C( Pr!du.t Ad9erti)in+

A( In!rmati9e Pr!du.t Ad9erti)in+

B. Per)ua)i9e Pr!du.t Ad9erti)in+

C( Reminder@Oriented Pr!du.t Ad9erti)in+

2( Ad9erti)in+ ba)ed !n Pr!du.t %ie C'.le

A( C!n)umer Ad9erti)in+

$( Indu)trial Ad9erti)in+

( Trade Ad9erti)in+

A( Retail Ad9erti)in+

$( 8"!le)ale Ad9erti)in+

4( Ad9erti)in+ $a)ed !n Area ! !perati!n

A( Nati!nal ad9erti)in+

$( %!.al ad9erti)in+

C( Re+i!nal ad9erti)in+

3( Ad9erti)in+ A..!rdin+ t! Medium UtiliBed

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1( Pr!du.t = Related Ad9erti)in+

It is concerned $ith con!eing information a"out and selling a product or ser!ice. *roduct

ad!ertising is of three tpes, !i9.,

A. *ioneering Ad!ertising

B. Competiti!e Ad!ertising

C. etenti!e Ad!ertising

A( Pi!neerin+ Ad9erti)in+G

#his tpe of ad!ertising is used in the introductor stages in the life ccle of a product. It

is concerned $ith de!eloping a EprimarF demand. It con!es information a"out, and selling a

product categor rather than a specific "rand. %or e(ample, the initial ad!ertisement for "lack J

and J $hite tele!ision and color tele!ision. Such ad!ertisements appeal to the consumers

emotions and rational moti!es.

$( C!mpetiti9e Ad9erti)in+G

It is useful $hen the product has reached the marketgro$th and especiall the market

maturit stage. It stimulates Eselecti!eF demand. It seeks to sell a specific "rand rather than a

general product categor. It is of t$o tpesG

A. )irect #peG It seeks to stimulate immediate "uing action.

B. Indirect #peG It attempts to pinpoint the !irtues of the product in the e(pectation that the

consumers action $ill "e affected " it $hen he is read to "u.

E;ample& Airline ad!ertising.

Air India attempts to "id for the consumers patronage either immediatel direct action

in $hich case, it pro!ides prices, time ta"les and phone num"ers on $hich the customer ma call

for reser!ations7 or e!entuall J indirect action J $hen it suggests that ou mention Air Indias

name $hen talking to our tra!el agent.

C( Retenti9e Ad9erti)in+&#his ma "e useful $hen the product has achie!ed a fa!ora"le status in the market J that

is, maturit or declining stage. &enerall in such times, the ad!ertiser $ants to keep his products

name "efore the pu"lic. A much softer selling approach is used, or onl the name ma "e

mentioned in EreminderF tpe ad!ertising.

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>( Publi. Ser9i.e Ad9erti)in+

#his is directed at the social $elfare of a communit or a nation. #he effecti!eness of

product ser!ice ad!ertisements ma "e measured in terms of the good$ill the generate in fa!our

of the sponsoring organi9ation. Ad!ertisements on not mi(ing drinking and dri!ing are a good

e(ample of pu"lic ser!ice ad!ertising. In this tpe of ad!ertising, the o"'ecti!e is to put across a

message intended to change attitudes or "eha!iour and "enefit the pu"lic at large.

?( Fun.ti!nal Cla))ii.ati!n

Ad!ertising ma "e classified according to the functions $hich it is intended to fulfil.

Hi Ad!ertising ma "e used to stimulate either the primar demand or the selecti!e demand.

Hii It ma promote either the "rand or the firm selling that "rand.

Hiii It ma tr to cause indirect action or direct action.

i( Ad9erti)in+ $a)ed !n Demand Inluen.e %e9el(

A( Primar' Demand Stimulati!n

*rimar demand is demand for the product or ser!ice rather than for a particular "rand. It

is intended to affect the demand for a tpe of product, and not the "rand of that product. Some

ad!ertise to stimulate primar demand. 8hen a product is ne$, primar demand stimulation is

appropriate. At this time, the marketer must inform consumers of the e(istence of the ne$ item

and con!ince them of the "enefits flo$ing from its use. 8hen primar demand has "een

stimulated and competitors ha!e entered the market, the ad!ertising strateg ma "e to stimulate

the selecti!e demand.

$( Sele.ti9e Demand Stimulati!n

#his demand is for a particular "rand such as Charminar cigarettes, Surf detergent

po$der, or Vimal fa"rics. #o esta"lish a differential ad!antage and to acuire an accepta"le sort

of market, selecti!e demand ad!ertising is attempted. It is not to stimulate the demand for the

product or ser!ice. #he ad!ertiser attempts to differentiate his "rand and to increase the total

amount of consumption of that product. Competiti!e ad!ertising stimulates selecti!e demand. It

ma "e of either the direct or the indirect tpe.

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ii( In)tituti!nal Ad9erti)in+

Institutional Ad!ertising ma "e formati!e, persuasi!e or reminder oriented in character.

Institutional ad!ertising is used e(tensi!el during periods of product shortages in order to keep

the name of the compan "efore the pu"lic. It aims at "uilding for a firm a *ositi!e pu"lic image

in the ees of shareholders, emploees, suppliers, legislators, or the general pu"lic. #his sells

onl the name and prestige of the compan. #his tpe of ad!ertising is used freuentl " large

companies $hose products are $ell kno$n. -M# or )CM, for e(ample, does considera"le

institutional ad!ertising of its name, emphasi9ing the ualit and research "ehind its products.

Institutional ad!ertisements are at consumers or focus them upon other groups, such as

!oters, go!ernment officials, suppliers, financial institutions, etc. If it is effecti!e, the target

groups $ill respond $ith good$ill to$ards, and confidence in the sponsor. It is also a useful

method or introducing sales persons and ne$ product to consumers. It does not attempt to sell a

particular product7 it "enefits the organi9ation as a $hole.

It notifies the consumers that the compan is a responsi"le "usiness entit and is

patriotic7 that its management takes ecologicall responsi"le action, is an affair moti!e action

emploer, supports the socialistic pattern of societ or pro!ides emploment opportunities in the

communit. 8hen Indian /il ad!ertisements descri"e the compans general acti!ities, such as

pu"lic ser!ice $ork, this ma "e referred to as institutional ad!ertising "ecause it is intended to

"uild an o!erall fa!ora"le attitude to$ards the compan and its famil of products. -M# oncetold the stor of the smallscale industries

suppling it $ith component parts, thus indicating ho$ it aided the de!elopment of ancillar

industries.

iii( Pr!du.t Ad9erti)in+

Most ad!ertising is product ad!ertising, designed to promote the sale or reputation of a

particular product or ser!ice that the organi9ation sells. Indanes Cooking &as is a case in point.

#he marketer ma use such promotion to generate e(posure attention, comprehension, attitude

change or action for an offering. It deals $ith the nonpersonal selling of a particular good or

ser!ice. It is of three tpes as follo$sG

A. Informati!e *roduct Ad!ertising

B. *ersuasi!e *roduct Ad!ertising

C. eminder/riented *roduct Ad!ertising

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A( In!rmati9e Pr!du.t Ad9erti)in+G

#his form of ad!ertising tends to characteri9e the promotion of an ne$ tpe of product

to de!elop an initial demand. It is usuall done in the introductor stages of the product life

ccle. It $as the original approach to ad!ertising.

$( Per)ua)i9e Pr!du.t Ad9erti)in+&

*ersuasi!e product ad!ertising is to de!elop demand for a particular product or "rand. It

is a tpe of promotion used in the gro$th period and, to some e(tent, in the maturit period of

the product life ccle.

C( Reminder@Oriented Pr!du.t Ad9erti)in+G

#he goal of this tpe of ad!ertising is to reinforce pre!ious promotional acti!it "

keeping the "rand name in front of the pu"lic. It is used in the maturit period as $ell as

throughout the declining phase of the product life ccle.

2( Ad9erti)in+ ba)ed !n Pr!du.t %ie C'.le

A( C!n)umer Ad9erti)in+

$( Indu)trial Ad9erti)in+

A( C!n)umer Ad9erti)in+Most of the consumer goods producers engage in consumer product ad!ertising.

Marketers of pharmaceuticals, cosmetics, scooters, detergents and soaps, cigarettes and alcoholic

"e!erages are e(amples. Baring a fe$, all these products are all package goods that the consumer

$ill often "u during the ear. #here is a hea! competition among the ad!ertisers to esta"lish

an ad!antage for their particular "rand.

$( Indu)trial Ad9erti)in+Industrial e(ecuti!es ha!e little confidence in ad!ertising. #he rel on this form of

promotion merel out of fear that their competitors ma "enefit if the stop their ad!ertising

efforts. #he task of the industrial ad!ertiser is complicated " the multiple "uing influence

characteristics like, the deri!ed demand, etc. #he o"'ecti!es !ar according to the firm and the

situation. #he areG

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#o inform,

#o "ring in orders,

#o induce inuiries,

#o get the ad!ertisers name on the "uers list of sources,

#o pro!ide support for the salesman,

#o reduce selling costs,

#o help get items in the ne$s column of a pu"lication,

#o esta"lish recognition for the firm or its product,

#o moti!ate distri"utors,

#o recognition for the firm or its products,

#o moti!ate distri"utors, to create or change a compans image,

#o create or change a "uers attitude, and

#he "asic appeals tend to increase the rupee profits of the "uer or help in achie!ing his

nonmonetar o"'ecti!es. #rade 'ournals are the media most generall used follo$ed "

catalogues, direct mail communication, e(hi"its, and general management pu"lications.

Ad!ertising agencies are much less useful in industrial ad!ertising.

( Trade Ad9erti)in+A( Retail Ad9erti)in+


A( Retail Ad9erti)in+

#his ma "e defined as Eco!ering all ad!ertising " the stores that sell goods directl to

the consuming pu"lic. It includes, also ad!ertising " esta"lishments that sell ser!ices to the

pu"lic, such as "eaut shops, petrol pumps and "anks.F Ad!ertising agencies are rarel used. #he

store personnel are usuall gi!en this responsi"ilit as an added task to "e performed, together

$ith their normal functions. #he result is that ad!ertising is often relegated to a secondar

position in a retail store. /ne aspect of retail ad!ertising is cooperati!e ad!ertising. It refers to

ad!ertising costs "et$een retailers and manufacturers. %rom the retailers point of !ie$, co

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operati!e ad!ertising permits a store to secure additional ad!ertising that $ould not other$ise

ha!e "een a!aila"le.


8holesalers are, generall, not ad!ertising minded, either for themsel!es or for their

suppliers. #he $ould "enefit from adopting some of the imagemaking techniues used "

retailers J the need for de!eloping an o!erall promotional strateg. #he also need to make a

greater use of supplier promotion materials and programs in a $a ad!antageous to them.

4( Ad9erti)in+ ba)ed !n Area ! Operati!n

It is classified as follo$G

A. +ational Ad!ertising

B. egional Ad!ertising

C. >ocal Ad!ertising

A( Nati!nal ad9erti)in+

It is practiced " man firms in our countr. It encourages the consumer to "u their

product $here!er the are sold. Most national ad!ertisements concentrate on the o!erall image

and desira"ilit of the product. #he famous national ad!ertisers areG

-industan >e!ers

)CM

I#C

a 5ngineering

#ISC/

$( Re+i!nal ad9erti)in+

It is geographical alternati!e for organi9ations. %or e(ample, Amrit Vanaspati "ased in

a'pura claims to "e the leading hdrogenated oil producer in the *un'a". But, until recentl, it

mainl confined itself to one of the !egeta"le oil "rands distri"ution to Maliha"ad district Hin

?.*. near >uckno$.

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C( %!.al ad9erti)in+

It is generall done " retailers rather than manufacturers. #hese ad!ertisements sa!e the

customer time and mone " passing along specific information a"out products, prices, location,

and so on. etailer ad!ertisements usuall pro!ide specific goods sales during $eekends in

!arious sectors.

3( Ad9erti)in+ A..!rdin+ t! Medium

#he most common classification of ad!ertising is " the medium used. %or e(ampleG #V,

radio, maga9ine, outdoor, "usiness periodical, ne$spaper and direct mail ad!ertising. #his

classification is so common in use that it is mentioned here onl for the sake of completeness.

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Mea)urin+ Ad9erti)in+ Ee.ti9ene))

All ad!ertising efforts are directed mainl to$ards the achie!ement of "usiness,

marketing and ad!ertising o"'ecti!es i.e., to increase the sales turno!er and thus to market the

ma(imum profit. #he ad!ertiser spends lakhs of rupees in to this ad!ertising acti!it. In the

"ackground of all these efforts, is an attempt to attract the customer to$ards the product through

ad!ertising. As soon as the ad!ertising campaign is o!er, a need is generall arisen to measure

the effecti!eness of the campaign. 8hether, it has achie!ed the desired results i.e. desired sales

profita"ilit or results in terms the change in customer "eha!iour in fa!our of the compans

product $hich $ill naturall, affect the future sale of the product.

In order to measure the effecti!eness of ad!ertising cop, t$o tpes of tests pre tests and

post tests can "e undertaken. *re tests are generall conducted in the "eginning of the creation

process or at the end of creation process or production stage. #here are se!eral pre and post tests

techniues to measure the effecti!eness of the ad!ertising cop.

#he effecti!eness of ad!ertising in a particular media ma also "e measured

in an of the follo$ing $as J

Ha B gi!ing different addresses to different media,

H" )ifferent ne$spapers ma "e selected for ad!ertisements of different departments,

Hc Coupon "lank etc. Ma "e pro!ided $ith the ad!ertisement orHd 5nuir from consumers should mention the name of the source of information.

#he techniue is kno$n as keing the ad!ertising. #hus in measuring the effecti!eness of

ad!ertising $e include measuring of the effecti!eness of ad!ertising campaign, ad!ertising cop

and the effecti!eness of indi!idual media. #his chapter deals these three pro"lems.

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Imp!rtan.e ! mea)urin+ t"e Ee.ti9ene)) ! Ad9erti)in+

-1/ It a.t) a) a Saet' mea)ure

#esting effecti!eness of ad!ertising helps in finding out ineffecti!e ad!ertisement and

ad!ertising campaigns. It facilitates timel ad'ustments in ad!ertising to make ad!ertisingconsumer oriented and result oriented. #hus $aste of mone in fault ad!ertising can "e a!oided.

->/ Pr!9ide) eedba.* !r remedial mea)ure)

#esting effecti!eness of ad!ertising pro!ides useful information to the ad!ertisers to take

remedial steps against ineffecti!e ad!ertisements.

-?/ A9!id) p!))ible ailure

Ad!ertisers are not sure of results of ad!ertising from a particular ad!ertising campaign.

5!aluating ad!ertising effecti!es helps in estimating the results in order to a!oid complete loss.-2/ T! <u)ti' t"e In9e)tment in Ad9erti)in+

#he e(penditure on ad!ertisement is considered to "e an in!estment. #he in!estment in

ad!ertising is a marketing in!estment and its o"'ecti!es should "e spelt out clearl indicating the

results e(pected from the campaign. #he rate and si9e of return should "e determined in ad!ance.

If the e(pected rate of return is achie!ed in terms of additional profits, the ad!ertisement can "e

considered as effecti!e one.

-/ T! *n!, t"e .!mmuni.ati!n Ee.t

#he effecti!eness of the ad!ertisement can "e measured in terms of their communication

effects on the target consumers or audience. #he main purpose of ad!ertising is communicated

the general pu"lic, and e(isting and prospecti!e consumers, !arious information a"out the

product and the compan. It is therefore desira"le to seek post measurements of ad!ertising in

order to determine $hether ad!ertisement ha!e "een seen or heard or in other $ords $hether

the ha!e communicated the theme, message or appeal of the ad!ertising.

-4/ C!mpare t,! mar*et)

?nder this procedure, ad!ertising is pu"lished in test markets and results are contrasted

$ith other. Markets J so called control markets J $hich ha!e had the regular ad!ertising

program. #he measurements made to determine results ma "e measurements of change in sales,

change in consumer attitudes, changes in dealer displa and so on depending upon the o"'ecti!es

sought " the ad!ertiser.

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METHODS OF MEASURIN7 ADVERTISIN7 EFFECTIVENESS

Ad!ertising is aimed at impro!ing the sales !olume of a concern so its effecti!eness can

"e e!aluated " its impact on sales. Most of the managers "elie!e that the ad!ertisement directl

affects the sales !olume and hence the e!aluate the effecti!eness of the ad!ertising campaign "

the increase in the sales !olume.

#here ma "e t$o tpes measures

Hi )irect measuresG and

Hii Indirect measuresG

-1/ Dire.t Mea)ure) ! Ad9erti)in+ Ee.ti9ene))

?nder direct measures, a relationship "et$een ad!ertising and sales is esta"lished. A

comparison of sales of t$o periods or t$o periods or t$o markets ma "e done and the

corresponding changes ma "e noted. #he follo$ing are some of the methods that are generall

used in measuring that ad!ertising effects.

-a/ Hi)t!ri.al Sale) Met"!d

Some insights into the effecti!eness of past ad!ertising ma "e o"tained " measuring

the relationship "et$een the ad!ertising e(penditure and the total sales of the product. A multiple

regression analsis of ad!ertising e(penditure and sales o!er se!eral time periods ma "e

calculated. It $ould sho$ ho$ the changes in ad!ertising e(penditure ha!e corresponding

changes in sales !olume. #his techniue estimates the contri"ution that ad!ertising has made to

e(plaining in a co relational manner rather than a casual sales, the !ariation in sales o!er the time

periods co!ered in the stud

-b/ E;perimental C!ntr!l

#he other measure of ad!ertising effecti!eness is the method of e(perimental control

$here a casual relationship "et$een ad!ertising and sales is esta"lished. #his method is uite

e(pensi!e $hen related to other ad!ertising effecti!eness measures et it is possi"le to isolate

ad!ertising contri"ution to sales. Moreo!er this can "e done as a pretest to aid ad!ertising in

choosing "et$een alternati!e creati!e designs. Media schedules e(penditure le!els or some

com"ination of these ad!ertising decision areas. /ne e(perimental approach to measuring the

sales effecti!eness of ad!ertising is test marketing.

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-i/ $e!re@ater ,it" C!ntr!l 7r!up De)i+n

#his classic design uses se!eral test and control cities in this design t$o tpes of cities are

selected. Cities in $hich ad!ertising campaigns are affected ma "e named as test cities and

other cities ma "e called central cities. %irst of all, the normal sales le!el is calculated for "oth

tpe of cities prior to ad!ertising campaign, and then the ad!ertising campaign is presented to the

test cities and not the central cities. #he effect of ad!ertising campaign, can then, "e measured "

su"tracting the amount of post campaign figure of sale from the pre campaign sale figures in test

cities

-ii/ Multi9ariable E;perimental De)i+n)

8hile the e(perimental design discussed a"o!e ields a reasona"l accurate estimate of

the effects of the ad!ertising on sales, it is not successful in e(plaining the success or failure of

the campaign itself. Multi!aria"le designs *roduce these e(planations and are, therefore used "

some !er large firm "ecause of their diagnostic !alue.#he po$er of this multi!aria"le factorial

design is e(plained " &.-.Bro$n, former %ords )irector of Marketing esearch. %or an single

medium, eight possi"le geographic areas ha!e "een e(posed and eight ha!e not "een e(posed.

#hus, in this e(perimental model it is possi"le to e!aluate ho$ each indi!idual medium "eha!es

alone and in all possi"le to e!aluate ho$ each indi!idual medium "eha!es alone and in all

possi"le com"inations $ith other media.

->/ Indire.t Mea)ure)

As it is !er difficult to measure the direct effect of ad!ertising on compans profits or

sales, most firms rel hea!il on indirect measures. #hese measures do not e!aluate the effects of

ad!ertisements directing on sales or profits "ut all other factors such as customer a$areness or

attitude or customer recall of ad!ertising message affect the sales or profits or goals of the

"usiness indirectl. )espite the uncertainties a"out the relationship "et$een the intermediate

effects of ad!ertising and the ultimate results, there is no other alternati!e "ut to use indirect

measures. #he most commonl used measures are J -i/ E;p!)ure t! Ad9erti)ement

In order to "e effecti!e, the ad!ertisement must gain e(posure. #he management is

concerned a"out the num"er of target audiences $ho see or hear the organi9ation message set in

the ad!ertisement. 8ithout e(posure, ad!ertisement is "ound to failure. Marketers or ad!ertisers

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ma o"tain an idea of e(posure generated " the medium " e(amining its circulation or

audience data $hich re!eal the num"er of copies of the maga9ine, ne$spaper or 'ournal sold the

num"er of persons passing the "ill"oards or riding in transit facilities, or the num"er of persons

li!ing in the tele!ie$ing or radio listening area, and the num"er of persons s$itching on their

#.V. and radio sets at !arious points of time. #his num"er can "e estimated " inter!ie$ing the

num"ers of the audience for different media.

-ii/ Attenti!n !r Re.all ! Ad9erti)in+ Me))a+e C!ntent

#his is one of the $idel used measures of ad!ertising results. ?nder this measure, a

recall of the message content among a specified group or groups or prospecti!e customers is

measured $ithin 23 hours of the e(posure of the ad!ertisement.

Attention !alue is the chief ualit of the ad!ertising cop the ad!ertisements cannot "e

said to "e effecti!e unless the attract the attention of the target consumers. #here are t$o

methods for e!aluating the attention getting !alue of the ad!ertisements. /ne is pretest and the

other is posttest. In a pretest e!aluation, the consumers are asked to indicate the e(tent to $hich

the recognise or recall the ad!ertisement, the ha!e alread seen. #his test is conducted in the

la"orator setting. -ere consumers read, hear or listen to the ad!ertisement and then researchers

ask uestion regarding the ad!ertisement 'ust to test the recall and then e!aluate it. In posttest

method, the consumers are asked uestions a"out the indication of recognition or recall after the

ad!ertisement has "een run. #hese measures assume that customers can recall or recogni9e $hatthe ha!e !ie$ed or listened to. Various mechanical de!ices are "eing used in the $estern

countries $hich pro!ide indices of attention such as eecamera etc.

-iii/ $rand A,arene))

#he marketers $ho rel hea!il on ad!ertising often appraise its effecti!eness "

measuring the customers a$areness a"out the particular product or "rand. #he assumption of

this tpe of measure is that there is a direct relationship "et$een the ad!ertisements and the

a$areness. #his tpe of measure is also su"'ect to the same criticisms as is applica"le to direct

measures of effecti!eness Hsales measures "ecause a$areness is also not the direct result of the

ad!ertisements. It is also affected " man other factors. But, for ne$ products, changes in

a$areness can often "e attri"uted to the influence of ad!ertising.

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-i9/ C!mpre"en)i!n

Consumers generall use ad!ertisements as a means of o"taining information a"out the

product, "rand or the manufacturer. #he cannot "e informed unless the comprehend the

message Hgrasp the message mentall and understand it full. Various tests for !aluating

comprehension are a!aila"le J

/ne is recall tests J an indicator of comprehension "ecause it is e!ident that consumers

recall $hat the comprehend. Another measure of the !aria"le is to ask uestions a"out su"'ects

ho$ much the ha!e comprehended a message the ha!e recentl heard or seen. /ne ma

emplo some$hat imprecise test of the comprehension of a ne$spaper and radio ad!ertisement.

/ne ma ask tpical target consumers from time to time such uestions like L$hat did ou think

of our ne$ commercial and L)id it get the message across #he ans$ers of these uestions

$ill pro!ide sufficient insight into ad!ertising decision making.

-9/ Attitude C"an+e

Since ad!ertising is considered to "e one $a of influencing the state of the mind of the

audience to$ards a product, ser!ice or organi9ation, the results are !er often measured in terms

of attitudes among groups e(posed to ad!ertising communication. Se!eral measures are used

ranging from asking the uestions a"out $illingness to "u the likelihood of "uing to the

measurement of the e(tent to $hich specific attri"utes Hsuch as modern or ne$ are associated

$ith a product.

-9i/ A.ti!n

/ne o"'ecti!e of ad!ertisement ma "e assumed to "e to stimulate action or "eha!ior.

#he action or intention to take an action ma "e measured on the intention to "u measuring

instrument. ?nder this tpe of measure, consumers are asked to respond $h the are interested

in purchasing the product or "rand. /ne tpe of action that ad!ertisers attempt to induce is

"uing "eha!ior. #he assumption is that if an increase in sales follo$s a decrease in ad!ertising

e(penditure, the change in sales le!els are good indicators of the effecti!eness of ad!ertising.>ogic suggests that measurement of sales is prefera"le to other measurements.

#hus, these a"o!e measures Hdirect or indirect are used to e!aluate the effecti!eness of

ad!ertisements. It seems from the analsis of the a"o!e methods of measuring effecti!eness that

directl or indirectl changes in sales or profits are taken as the measuring rod of the

effecti!eness of the ad!ertising.

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COMMUNICATION EFFECTS OF ADVERTISEMENT

#he management should attempt to e!aluate the effecti!eness of the ad!ertising

campaign if the firms ad!ertising goals are to "e achie!ed and the ad effecti!eness is to "e

increased. B regular e!aluation of the effecti!eness, the short comings and the plus points

$ould "e re!ealed and the management $ould "e a"le to impro!e the campaign " negating the

shortcomings and retaining the fa!ora"le point. %or this purpose, it is !er necessar to kno$

ho$ ad!ertising affects the "uers "eha!iors. But this is !er difficult task "ecause

measurements are imperfect and imprecise.

#he effecti!eness of ad!ertising can "e measured " the e(tent, it to $hich it achie!es the

o"'ecti!es set for it. If it succeeds in attaining the o"'ecti!es. Ad!ertising can "e said to "e

effecti!e other$ise it $ill "e a $aste of mone and time. In this sense, ad!ertising can "e

recogni9ed as a "usiness acti!it like other acti!ities.

In a !er real sense the integrit of promotional acti!ities rests on ho$ $ell those

acti!ities $ork. An ad!ertising "udget that is spent on some poorl defined task or on undefined

tasks ma "e regarded as an economic $aste as compared to that spent to achie!e the $ell

defined o"'ecti!es for $hich the results can "e measured. An social institution upon $hich a

significant portion of our total producti!e efforts is e(panded should "e a"le to point to its

specific accomplishment. Indeed, it is a source of discomfort that specific results of ad!ertising

acti!ities ha!e not al$as "een su"'ect to precise measurement. Both practitioners and criticsfeel that promotional acti!ities should onl "e accepted as socio J economic J institution $ith

full right and pri!ileges E$hen the means

e(ist to pro!e that ad!ertising super are producti!e rupees It is undou"tedl a source of

em"arrassment that $e cannot e(actl measure the effecti!eness of ad!ertising in definiti!e

terms.

#he e(act result of ad!ertisement e(penditure is !er difficult to predict "ecause.

Ha #he reaction of consumer J "uers to the ad!ertising efforts cannot "e kno$n in ad!ance.

H" #he reaction of competitors in the field cannot "e guessed in anticipation and

Hc #he une(pected e!ents Hsuch as change in social and economic en!ironment and the

go!ernment policies etc. cannot "e accuratel anticipated. Such e!ents ma influence the results

of the ad!ertising efforts. If $e take a hpothetical case of a retailer $ho contract to spent

s.4=== on ad!ertisement $ith a local ne$spaper for a special sales e!en. #he ad!ertisement is

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seen and the response is much greater than it is anticipated. 8hat caused the success of sale

#he message theme colors etc., of the ad!ertisement or the lo$ prices uoted during the sale of

the superior ualit of the product or a"sence of competition in the market on the da or the

fa!ora"le. 8eather conditions or the good$ill of the firm etc. #he o!er$helming success of the

sale is the 'oint result of all the a"o!e !aria"les and it is uite impossi"le to isolate the role of an

one !aria"le. It is so "ecause the cause and effect J relationship cannot "e esta"lished in ad!ance

$hen a multitude of !aria"le impinge upon a particular e!ent. It is entirel possi"le that a poor

ad!ertising support ma push up the sale "ecause e!erthing else falls into its proper place or the

re!erse ma "e possi"le. But it does not mean that that $e cannot measure the effects of

particulars ad!ertising effort. #he ad!ertising e(ecuti!es are much concerned a"out the

assessment of the effecti!eness of the ad!ertising efforts. %or this purpose, the management

needs ans$ers to such uestions asG $as the ad!ertising campaign reall successful in attaining

the ad!ertising goals 8ere our #.V. commercials as good as those of our competitors 8ill the

print ad!ertisement, $hich $e ha!e designed, make consumers a$are of our ne$ product #o

get ans$ers of these uestions, !arious tests of effecti!eness H*re tests and post J tests are

deeded to determine $hether proposed ad!ertisement should "e used, and if the are not

satisfactor ho$ the might "e impro!ed, and $hether on going campaign should "e stopped

continued or changed. *re tests are conducted "efore e(posing target consumers to the

ad!ertisements and post tests after consumers ha!e "een e(posed to them.

As indicated earlier, the ad!ertisers are interested in kno$ing $hat the are getting for

their ad!ertising rupees, So the test the proposed ad!ertisement $ith pre test and measure the

actual results $ith a post test. In the past, protesting $as done " the ad!ertising agencies "ut

no$ the ad!ertisers ha!e "een taking an increasingl acti!e role in protesting process. *re test

ma "e done either "efore an ad!ertisement has "een designed or e(ecuted after it is read for

pu"lic distri"ution or at "oth points.

)uring protesting there is often research on three !ital uestionsG

Hi )o consumers feel that the ad!ertisement communicates something desira"le a"out the

product

Hii )oes the message ha!e an e(clusi!e appeal that differentiates the product from that of the

competitors

Hiii Is the ad!ertisement "elie!a"le

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Although a lot of mone is spent on protesting et the ad!ertisers like to confirm the

results " post testing of their promotional campaigns due to the follo$ing reasonsG

Hi #here is a need produce more effecti!e ad!ertising " retaining the good and remo!ing the

"ad.

Hii #he ad!ertising e(ecuti!es can pro!e to the satisfaction of the management that a higher

ad!ertising "udget $ill "enefit the firm.

Hiii #here is a need for measuring the results to determine the le!el of e(penditure that is most

promising.

Most research focuses on the communication effect rather than sales effect "ecause it is a

long run process. In the short run, ho$e!er sales ma "e slight and important "ut in the long run

its effects o" "rands and companies ma "e of great importance. Indirectl it $ill affect the sales

in the long run, " changing the consumer a$areness and attitude. #he ad!ertisers are therefore,

concerned $ith their impact on consumer a$areness and attitude.

#he communication effect on sales ma "e presented in the follo$ing figureG

Communication 5ffect on Sales

A$areness

↓

Attitude

↓#rial

↓

Satisfaction

↓

*urchases or repurchase

A$areness "uilds a fa!ora"le or at least a curious attitude to$ards the product $hichleads to e(perimentation. If consumer is satisfied $ith the trial he ma decide to purchase the

product. #here are man critical and unresol!ed issues in determining ho$ to test the

communication effects of ad!ertising. Among these areG

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H1 5(posure Conditions J Should ad!ertising "e tested under realistic conditions or under more

controlled la"orator conditions

H2 5(ecution J *rotesting a finished ad!ertisement as an e(pensi!e and time consuming. )oes

protesting a preliminar e(ecution produce accurate and useful data

H Nualit Vs. Nuantit )ata Nuantitati!e data are the easiest and the almost precise

measurement. But ualitati!e data collected through inter!ie$s ma pro!ide information that

short ans$er uestions ne!er can.

Man tpes of ad!ertising tests are conducted Hdifferent methods of pre tests and post J

test are gi!en in uestion num"er In #.V. commercials are tested " in!iting a group of people

to the studio to !ie$ a program. #he audience is then sur!eed a"out the commercials. *rint

ad!ertisements are tested through dumm maga9ine portfolio tests.

C!mpun.ti!n Ee.ti9ene)) V) Sale) Ee.ti9ene))

It is easier to assess the communication effect of ad!ertising than the sales effect. Man

firms tr to measure the effecti!eness of ad!ertising in terms of sales results "ut this practice is

al$as misleading. Since, the effect is the result of so man !aria"les, a distinct effect of

ad!ertising on sales cannot "e correctl measured, Although there ma "e some e(ceptions. %or

e(ample direct mail ad!ertising can effecti!el "e measured " the inuiries recei!ed. But inman situations the e(act relationship "et$een ad!ertising acti!it and sales cannot "e

esta"lished satisfactoril.

8e can correctl assume that some sales $ill occur e!en though there is no ad!ertising or

little ad!ertising or con!ersel there $ill "e no increase in sales after the point of saturation is

reached or it ma "e that sales $ill sho$ a decreasing trend at this point in spite of large amount

of e(penditure on ad!ertising is done. It is so "ecause ad!ertising is no the onl !aria"le that

effect the sales.

#hus, $e ma conduct that sales effect of ad!ertising is difficult to measure "ecause a

num"er of !aria"les affect the uantum of tales and the contri"ution of ad!ertisement cannot "e

measured separatel unless all other !aria"les are presumed to "e constant. #his situation is uite

hpothetical and almost none(istent. Added to this is the fact that ad!ertisement itself is made of

a !ariet of !aria"les such as media, messages, colours, page or time of the da, locations, the

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si9e of the headline and the appeals used. #hus e!en if the ad!ertising !aria"le is separated this

$ould still not ans$er the uestion a"out the effecti!eness of the indi!idual components of the

ad!ertising campaign. So ad!ertisers tr to measure the communication effect of the ad!ertising.

Suitabilit'

In small "usiness firms $here the marketing research resources are limited ad!ertising

managers ma decide on less e(pensi!e and less rele!ant measures. #he "ig "usiness house,

$hich has more access to research, ma decide on the more rele!ant and e(pensi!e measures.

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Fa.t!r) Ae.tin+ Ad9erti)in+

#he final e(ternal factor in the planning frame$ork concerns en!ironmental factor social,

legal, and glo"al. >a$ for"ids decepti!e ad!ertising. /ne solution is to create "rand ad!ertising

that is !ague and contains little specific information. -o$e!er, such an approach can result not

onl in ineffecti!e ad!ertising7 " it can lessen the social !alue of ad!ertising " reducing the

amount for useful information that it pro!ides to societ. #hus, and ad!ertiser $ho attempts to

pro!ide specific, rele!ant information must "e $ell a$are of ad!ertising regulation.

5!en more difficult consideration for people in!ol!ed in the ad!ertising effort is "road

social and economic issues. Another concern is that ad!ertising, especiall $hen it is more

irritating than entertaining, is an intrusion into an alread e(cessi!el polluted en!ironment. A

$hole set of rules is emerging to co!er ad!ertising directed at children, and ad!ertising for

products such as alcohol and cigarettes, and the use of en!ironmental and health claims in

ad!ertising.

#hus ad!ertising has a tremendous impact on international marketing and the t$o

concepts therefore go hand in hand and are dependent on each other.

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IMPACT OF ADVERTISEMENT

Ad!ertising has an important effect on a countrs econom, societ, culture, and

political sstem. #his is especiall true in the ?nited States $here the ad!ertising industr plas

such a prominent role.

1( E.!n!mi. Impa.t

Most economists "elie!e that ad!ertising has a positi!e impact on the econom

"ecause it stimulates demand for products and ser!ices, strengthening the econom "

promoting the sale of goods and ser!ices. Manufacturers kno$ that ad!ertising can help

sell a ne$ product uickl, ena"ling them to recoup the costs of de!eloping ne$

products. B stimulating the de!elopment of ne$ products, ad!ertising helps increase

competition. Man economists "elie!e that increased competition leads to lo$er prices,

there" "enefiting consumers and the econom as a $hole. #hese economists also argue

that " interesting consumers in purchasing goods, ad!ertising ena"les manufacturers and

others to sell their products in larger uantities. #he increased !olume of sales ena"les

companies to produce indi!idual units at lo$er costs and therefore, sell them at a lo$er

price. Ad!ertising thus "enefits consumers " helping lo$er prices.

/ther economists, ho$e!er, "elie!e that ad!ertising is $asteful. #he argue that

the cost of ad!ertising adds to the cost of goods and that most ad!ertising simpl

encourages consumers to "u one "rand rather than another. According to this !ie$,

ad!ertising simpl mo!es sales from one compan to another, rather than increasing sales

o!erall and there" "enefiting the econom as a $hole.

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>( S!.ial Impa.t

Ad!ertising can ha!e $ideranging repercussions on a societ. Some critics

suggest that ad!ertising promotes a materialistic $a of life " leading people to "elie!e

that happiness is achie!ed " purchasing products. #he argue that ad!ertising creates a

consumer culture in $hich "uing e(citing ne$ products "ecomes the foundation of the

societs !alues, pleasures, and goals.

/ther critics e(press concern o!er the $a ad!ertising has affected $omen and

racial minorit groups. Ads in the 1<4=s depicted $omen primaril as decoration or se(

o"'ects. Although millions of $omen $orked outside the home in the 1<6=s, ads

continued to focus on their role as homemakers. 8hether o$ing to the feminist

mo!ement or to $omens increasing economic po$er, after the 1<6=s it "ecame more

common to see $omen depicted in professional roles. -o$e!er, man ads toda still

emphasi9e a $omans se(ualit.

#he $a ad!ertising has depicted racial minorities has also "een harmful. *rior to

1<6=, African Americans $ere usuall sho$n in a su"ordinate position. )ue to the

influence of the ci!il rights mo!ement, ho$e!er, ad!ertisers " the 1<;=s had "egun to

depict African Americans as students, professionals, or "usiness people. -o$e!er, manAfrican American organi9ations and communit acti!ists continue to o"'ect to the $a

that alcohol and to"acco companies ha!e seemingl targeted lo$income minorit

communities $ith a hea! preponderance of outdoor ad!ertising for their products.

As ads ha!e "egun to more full reflect the li!es of $omen and African

Americans in the ?nited States, increasing attention has "een paid to the $a in $hich

ad!ertising sho$s other ethnic groups, including -ispanics, Asians, +ati!e Americans,

and 5astern 5uropeans. #here is still considera"le de"ate o!er ho$ ad!ertising influences

pu"lic perception of gender and of particular ethnic groups.

Ad!ertising has a ma'or social impact " helping sustain mass communications

media and making them relati!el ine(pensi!e, if not free, to the pu"lic. +e$spapers,

maga9ines, radio, and "roadcast tele!ision all recei!e their primar income from

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#here is also concern a"out the $a in $hich adolescent girls respond to ad!ertising that

features "eautiful, thin models. esearch indicates that man adolescent girls are undul

influenced " this standard of "eaut, "ecome dissatisfied $ith their o$n "odies, and

ma de!elop eating disorders in pursuit of a thin figure. +e$ research suggests that

adolescent "os are also "eing influenced " ad!ertising images of "ulkedup, "uffed

"odies. As a result, man "ecome dissatisfied $ith their o$n "od image, de!ote large

amounts of time to $eightlifting, and ma e!en take drugs that ha!e harmful side effects

in order to de!elop more muscle. #hose o!er the age of 6= are thought to "e less

influenced " ad!ertising, "ut some elderl people no longer process messages as easil

as ounger people, making them more suscepti"le to uestiona"le ad!ertising claims.

?( P!liti.al Impa.t

Ad!ertising is no$ a ma'or component of political campaigns and therefore has a

"ig influence on the democratic process itself. In 1<<; more than O36: million $as spent

on election campaigns in the ?nited States. #hat amount of spending placed political

ad!ertising in the ranks of the countrs = leading ad!ertisers that ear. *olitical

ad!ertising is a relati!el ne$ de!elopment in ?.S. histor. Ad!ertising professionals did

not "ecome in!ol!ed in electoral campaigns until the 1<4=s. But since then, political

ad!ertising has gro$n in sophistication and comple(it.

*olitical ad!ertising ena"les candidates to con!e their positions on important

issues and to acuaint !oters $ith their accomplishments and personalities. #ele!ision

ad!ertising is especiall effecti!e for candidates running for national or state$ide office

"ecause it can reach so man people at once. Candidates can also use ad!ertising to

respond effecti!el to the charges of their opponents.

Various campaign finance reform proposals, ho$e!er, ha!e tried to address the

impact of tele!ision ad!ertising on political campaigning. Because of the high cost of

tele!ision ads, the costs of political campaigns ha!e skrocketed, making it necessar for

candidates to raise mone continuall, e!en after the ha!e "een elected to office. Critics

sa this factor 'eopardi9es the democratic process " making elected officials "eholden to

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$ealth contri"utors and " making it more likel that onl the $ealth $ill run for

office. Some reform proposals ha!e called for free airtime, "ut tele!ision and radio

net$orks ha!e resisted this idea.

Critics of political ad!ertising also charge that the =second tele!ision spot has

"ecome more important to a political campaign than a thorough discussion of the issues.

As a result, !oters are "om"arded $ith image ad!ertising rather than "eing acuainted

$ith the candidates positions. #he contend that this practice is harmful to good

go!ernment. Issues are simplified, and candidates are Epackaged and soldF much like a

consumer product, there" distorting the political process.

2( Cultural Impa.t

Ad!ertising can affect cultural !alues. Some ad!ertising messages, for e(ample,

encourage aggressi!e indi!idualism, $hich ma clash $ith the traditional cultural !alues

of a countr $here the collecti!e or group is emphasi9ed o!er the indi!idual or humilit

or modest is preferred to aggressi!eness. 8ith the glo"ali9ation of the $orld econom,

multinational corporations often use the same ad!ertising to sell to consumers around the

$orld. Some critics argue that ad!ertising messages are thus helping to "reak do$n

distinct cultural differences and traditional !alues, causing the $orld to "ecomeincreasingl homogeneous.

Man ad!ertising campaigns, ho$e!er, ha!e uni!ersal appeal, o!erriding cultural

differences, or the contri"ute to culture in a positi!e $a. -umor in ad!ertising has

made man ad campaigns $idel popular, in some cases achie!ing the status of folklore

or taking on ne$ life in another arena. %or e(ample, a popular ad campaign for a fast

food chain $ith the slogan E8heres the "eefF "ecame part of the 1<;= )emocratic

presidential primar campaign "et$een &ar -art and 8alter Mondale. #he ad ridiculed

a competitor " depicting a small ham"urger patt d$arfed " a huge "un. )uring a

primar de"ate one of the candidates used the ad slogan to suggest that his opponents

campaign lacked su"stance.

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RESEARCH METHODO%O7Y

Re)ear." De)i+n G )escripti!e

Data S!ur.e G *rimar data

G Secondar data

Re)ear." In)trument G Nuestionnaire

Sample de)i+n G Simple random design

Sample )iBe G 1==

Sample l!.ati!n

G !aranasi

Sample element G Students

G Business class

G -ouse hold

G Ser!ice class

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SAMP%IN7 UNIT

Sampling ?nit is the total num"er of samples differed in different localit.

Sl( N!( Cla))e) N!( ! Cla))e)

1. Students 24

2. Business class 24

. -ousehold 24

3. Ser!ice class 24

T!tal 1

)ata ha!e "een collected through the sur!e method $hile sur!es ha!e "een conducted in one

citG

Hi !aranasi

#he data collected $as "oth from the primar and secondar source. #he primar data $as

collected through uestionnaires and $as collected personall.

#he secondar data $as collected through "ooks, maga9ines, compan $e"site and other

$e"sites. All the area had segmented according the population of this area. I ha!e considered

1== as sample si9e.

3:

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S!ur.e !

9ariati!n

Sum !

Sample)

De+ree !

reed!m

Mean

S#uare

F@Rati! F@%imit

-r!m F@table/

C!lumn 21.; :.2< =.1:< %H,6 P 2.;;:

R!,) 1343.:: 6 3=.31

T!tal 13:6.4: <

F1@TA$%E VA%UE at -(/ le9el ! )i+nii.an.e ! -?0?4/ >(?3

-ere in this case %1statistics Q %1ta"le !alue.

-ence the null hpothesis is accepted.

Interpretati!n&@

Since $hen the statistical !alue is less than ta"le !alue then the null hpothesis is accepted andhence $e can sa that the difference among the determinants and parameters is insignificant.

3<

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4=

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7RAPHICA% INTERPRETATION

1( Fr!m ,"ere d! '!u +et in!rmati!n ab!ut t"e ne, pr!du.t:

An),er) N!( ! re)p!ndent)Tele9i)i!n 32Ne,)paper) 26Ma+aBine) 11Internet 6Peer) -Famil' G Friend)/ 14

Interpretati!n&

A large si9e of population is influenced " #ele!ision and +e$spapers.

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>( 8"i." !rm ! ad9erti)ement d! '!u li*e m!re:

An),er) N!( ! re)p!ndent)

Still ima+e 2;

M!9in+ ima+e :2

Interpretati!n&

*eople are more affected " ad!ertisement $ith mo!ing image.

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?( F!r '!u ad9erti)ement i) a )!ur.e ! &


Information 62

5ntertainment ;

Interpretati!n&

More num"er of people consider ad!ertisement as a source of information rather than asource of entertainment.

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2( D!e) entertainin+ ad9erti)ement ae.t '!ur !pini!n ab!ut t"e pr!du.t:


es 26

+o :3

Interpretati!n&

5ntertaining ad!ertisement does not affect the opinion of customer a"out the product

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4( D!e) lan+ua+e u)ed in ad9erti)ement ae.t) '!ur !pini!n ab!ut t"epr!du.t:

An),er) N!( ! re)p!ndent)Ye) 4?N! ?3

Interpretati!n&

>anguage used in the ad!ertisement affects a lot on the opinion of consumers a"out the product.

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3( D!e) pre)en.e ! an' .elebrit' in t"e ad9erti)ement ae.t) '!ur !pini!n

ab!ut t"e pr!du.t:

An),er) N!( ! re)p!ndent)Ye) 6<N! 1

Interpretati!n&

*resence of an cele"rit affects on the opinion of consumers a"out the product.

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( D!e) inten)it' ! t"e ad9erti)ement ae.t) '!ur !pini!n ab!ut t"e

pr!du.t:

An),er) N!( ! re)p!ndent)Ye) 42N! 3;

Interpretati!n&

#he effect of intensit is !er po$erful on the opinion of consumers a"out the product.

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( D!e) pre)en.e ! )!.ial i))ue) in t"e ad9erti)ement ae.t) '!ur !pini!n

ab!ut t"e pr!du.t:

An),er) N!( ! re)p!ndent)Ye) 4<N! 31

Interpretati!n&

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*resence of social issues in ad!ertisements affects !er much on the opinion ofconsumers a"out the product.

1(D! '!u t"in* ad9erti)ement "elp) in in.rea)in+ )ale) ! an' pr!du.t:

An),er) N!( ! re)p!ndent)Ye) ;:N! 1

Interpretati!n&

6=

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Interpretati!n&

+ational ad!ertisements affect peoples opinion more than the local ad!ertisements.

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FINDIN7S

Ad!ertisements $ith mo!ing image are more effecti!e than ad!ertisement $ith still

image.

Information pro!ided in the ad!ertisement has more influence on consumers perception

a"out the product.

>anguage used in the ad!ertisement also plas important role in increasing effecti!eness

of an ad!ertisement.

Intensit of ad!ertisement affects the perception of consumers to$ards the product and

leads them for its purchase.

Social issues included in ad!ertisement affects the perception of high age group people.

+ational ad!ertisement has more influence on consumers perception a"out the productinstead of local ad!ertisement.

Ad!ertisement increases the sales of an product.

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%IMITATIONS

#he marketing researcher has to face certain difficulties $hile he carries out

the research $ork. -e kno$s the limitation "eforehand, uncontrolla"le and others are

controlla"le. Some important limitations, $hich are faced " researchers as follo$sG

Sample si9e restricted to 1== onl $hich $as !er less according total population.

#he responses gi!en " respondents $ere not al$as accurate "ecause therespondents ga!e the response according to their understanding.

Sur!e is a time consuming process "ut the time to collect the data for research

$as !er less.

Sometimes the respondents are not $illing to fill the uestionnaire and hence

the resultant ma not "e correct.

Marketing researchers studies the "eha!ior that is rational. Ver often, the do not

e(press their feeling correctl $hat the think. In such cases their ha"itual,

practice, preferences cannot "e assessed correctl.

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6:

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CONC%USION

A+/VA re!eals that all the determinants are not internall eual the

are significantl different from one another. Similarl, all the parameters are not internall eual

the are significantl different from one another.

In order to measure the effecti!eness of ad!ertising, $hich approach Hcommunication

effecti!eness or sales effecti!eness, is more suita"le #$o factors are to "e considered in

deciding the approach. #he are

1( Rele9an.e ! ad9erti)in+ !b<e.ti9e) !n t"e !9erall per!rman.e !b<e.ti9e)&

&enerall ad!ertising managers $ould like to kno$ the role of ad!ertisements on the

o!erall performance of the "usiness firm i.e., return on in!estment and on profita"ilit. A sale is

a determining factor of compan performance.

>( Dii.ult' and .!)t ! !btainin+ data needed t! e9aluate ee.ti9ene))&

&enerall communication measures are eas to follo$ than sales effecti!eness measures.

If the measures of ad!ertising are more rele!ant the $ill "e difficult and costl. If it is less

difficult and cheap the measures $ill not "e more rele!ant. #herefore, the ad!ertising manager

has to make a "alance "et$een these t$o approaches.

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SU77ESTIONS

Ad!ertisement should "e made $ith keeping the determinants of effecti!eness in mind.

Ad!ertisement should "e according to the product and its suita"ilit $ith different age

groups.

#o make ad!ertisement more effecti!e all the determinants of effecti!eness should "e

taken care of.

In!estment in ad!ertisement should "e made $ith great care of media of ad!ertisement

and tpe of ad!ertisement.

Ad!ertisers should de!elop ne$ and more effecti!e $as of ad!ertisement.

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REFERENCE

$!!*)

1. Ad!ertising Management J concepts and cases Mahendra Mohan.

2. Marketing Management J *hilip 0otler

. Branding J &eoffre andoll

3. Strategic Brand Management J 0apferer

4. Ad!ertising and Sales *romotion Management J S.>.&upta, V.V.atra

6. Ad!ertising and Salesmanship J *.Sara!ana!el.

Internet

1. $$$."ooks.google.com

2. $$$.scri"d.com

. $$$.paul"eelen.com

3. $$$.decisionanalst.com

:2

http://www.books.google.com/

http://www.scribd.com/

http://www.paulbeelen.com/

http://www.decisionanalyst.com/

http://www.books.google.com/

http://www.scribd.com/

http://www.paulbeelen.com/

http://www.decisionanalyst.com/

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ue)ti!nnaire

I am S-85#A SI+&- perursuing 6th Semester of Bachelor of Business Administration

from . I am doing m research report on E A Stud on 5ffect of Ad!ertisement on ConsumersF as

a part of m course curriculum. %or this I reuire ou to please fill this uestionnaire.

+ameG DDDDDDDDDDDD.................................

Se(G a. Male R ". %emale R

AgeG

a. Belo$ 2= R

". 2= to = R

c. = to 3= R

d. A"o!e 3= R

/ccupationG

a. Student R

". Business class R

c. -ouse hold R

d. Ser!ice class R

1. %rom $here do ou get information a"out the ne$ product

a. #ele!ision R

". +e$spapers R

c. Maga9ines R

d. Internet R

e. *eers HfriendsKfamil R

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2. 8hich form of ad!ertisement do ou like more

a. Still image HMaga9ines K +e$spapers R

". Mo!ing image H#ele!ision K Internet R

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