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It has been wrongly assumed that the advertising function is of recent origin. Evidences suggest that the Romans practiced advertising; but the earliest indication of its use in this country dates back to the middle Ages, when the use of the surname indicated a mans occupation. The next stage in the evolution of advertising was the use of signs as a visual expression of the tradesmans function and a means of locating the source of goods. This method is still in common use. The seller in primitive times relied upon his loud voice to attract attention and inform consumers of the availability of his services. If there were many competitors, he relied upon his own personal magnetism to attract attention to his merchandise. Often it became necessary for him to resort to persuasion to pinpoint the advantages of his products. Thus, the seller was doing the complete promotion job himself. Development of retail stores, made the traders to be more concerned about attracting business. Informing customers of the availability of supplies was highly important. Some types of outside promotion were necessary. Signs on stores and in prominent places around the city and notices in printed matters were sometimes used. When customers were finally attracted to the store and satisfied with the service at least once, they were still subjected to competitive influences; therefore, the merchants signs and advertisements reminded customers of the continuing availability of his services. Sometimes traders would talk to present and former customers in the streets, or join social organizations in order to have continuing contacts with present and potential customers. As the markets grew larger and the number of customers increased, the importance of attracting them also grew. Increasing reliance was placed on advertising methods of informing about the availability of the products. These advertising methods were more economical in reaching large numbers of consumers. While these advertising methods were useful for informing and reminding and reminding, they could not do the whole promotional job. They were used only to reach each consumer personally. The merchant still used personal persuasion once the customers were attracted to his store. The invention of hand press increased the potentialities of advertising. By Shakespeares times, posters had made their appearance, and assumed the function of fostering demand for 1
existing products. Another important event was the emergence of the pamphlet as an advertising medium. The early examples of these pamphlets disclose their sponsorship by companies want to generate goodwill for their activities. The low cost of posters and handbills encouraged a number of publishers to experiment with other methods.
RESEARCH OBECTIVES
HISTORY OF ADVERTISEMENT
Archaeologists have found evidence of advertising dating back to the 3000s BC, among the Babylonians. One of the first known methods of advertising was the outdoor display, usually an eye-catching sign painted on the wall of a building. Archaeologists have uncovered many such signs, notably in the ruins of ancient Rome and Pompeii. An outdoor advertisement excavated in Rome offers property for rent, and one found painted on a wall in Pompeii calls the attention of travelers to a tavern situated in another town. In medieval times word-of-mouth praise of products gave rise to a simple but effective form of advertising, the use of so-called town criers. The criers were citizens who read public notices aloud and were also employed by merchants to shout the praises of their wares. Later they became familiar figures on the streets of colonial American settlements. The town criers were forerunners of the modern announcer who delivers radio and television commercials. Although graphic forms of advertising appeared early in history, printed advertising made little headway until the invention of the movable-type printing press by German printer Johannes Gutenberg about 1450. This invention made the mass distribution of posters and circulars possible. The first advertisement in English appeared in 1472 in the form of a handbill announcing a prayer book for sale. Two hundred years later, the first newspaper ad was published offering a reward for the return of 12 stolen horses. In the American colonies, the Boston News-Letter, the first regularly published newspaper in America, began carrying ads in 1704, and about 25 years later Benjamin Franklin made ads more readable by using large headlines. In the United States, the advertising profession began in Philadelphia, Pennsylvania, in 1841 when Volney B. Palmer set up shop as an advertising agent, the forerunner of the advertising agency. Agents contracted with newspapers for large amounts of advertising space at discount rates and then resold the space to advertisers at a higher rate. The ads themselves were created by the advertisers. In 1869 Francis Ayer bought out Palmer and founded N. W. Ayer & Son, an agency that still exists today. Ayer transformed the standard agent practice by billing 4
advertisers exactly what he paid to publishers plus an agreed upon commission. Soon Ayer was not only selling space but was also conducting market research and writing the advertising copy. Advertising agencies initially focused on print. But the introduction of radio created a new opportunity and by the end of the 1920s, advertising had established itself in radio to such an extent that advertisers were producing many of their own programs. The early 1930s ushered in dozens of radio dramatic series that were known as soap operas because they were sponsored by soap companies. Television had been introduced in 1940, but because of the high cost of TV sets and the lack of programming, it was not immediately embraced. As the American economy soared in the 1950s, so did the sale of TV sets and the advertising that paid for the popular new shows. Soon TV far surpassed radio as an advertising medium. The tone of the advertising was also changing. No longer did advertising simply present the product benefit. Instead it began to create a product image. Bill Bernbach, founder of Doyle Dane Bernbach in New York City; Leo Burnett, founder of the Leo Burnett agency in Chicago, Illinois; and David Ogilvy, founder of Ogilvy & Mather in New York City, all came to prominence in the late 1950s and 1960s and led what has been called the 'creative revolution.' Bernbach's agency captured the spirit of the new age. Bernbach believed that advertising had to be creative and artistic or it would bore people. He also believed that good advertising began with respect for the public's intelligence. The ads his agency created were understated, sophisticated, and witty. For example, when Bernbach's agency picked up the account for the Henry S. Levy Bakery in Brooklyn, a borough of New York City, the agency created an ad that entertained New Yorkers and provided fodder for many conversations. The ad showed a Native American eating a slice of the bakery's rye bread with the headline, 'You don't have to be Jewish to love Levy's.' But it was the advertising for Volkswagen that made the agency's reputation. At a time when American cars were getting bigger and bigger and the advertising for them trumpeted that bigger was better, Doyle Dane Bernbach created a magazine ad that showed a small picture of the Volkswagen Beetle surrounded by a sea of white space with the headline, 'think small.' An 5
equally unconventional ad carried the headline 'lemon' beneath a photo of an apparently flawed Volkswagen. The ad's copy explained that 'this Volkswagen missed the boat. The chrome strip on the glove compartment is blemished and must be replacedWe pluck the lemons; you get the plums.' In an era of hype and bombast, the Volkswagen ads stood out because they admitted failure in a witty way and gave facts in a believable manner that underlined the car's strengths. This wit together with a conversational and believable style was a hallmark of the advertising created by Doyle Dane Bernbach and that style became highly influential. The creative foundation established by Bernbach and others has been critical to the success of contemporary advertising. The introduction of the TV remote control and access to hundreds of cable channels mean that today advertising must interest and entertain consumers or else they will simply use the remote to change the channel. New digital devices even threaten to make it possible to edit out commercials. The development of interactive television, combining the functions of a computer with access to high-speed transmission over cable lines or optical fibers, will likely enable consumers to select from a vast video library. Consumers will be able to determine not only when they watch something, but also, to a greater extent than ever before, what they will watch. Some industry observers believe that as consumers gain greater control over their viewing activities, they will find it easier to avoid advertising.
DEFINITION OF ADVERTISING The word advertising originates from a Latin word advertise, which means to turn to. The dictionary meaning of the term is to give public notice or to announce publicly. Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. The American Marketing Association, Chicago, has defined advertising as any form of non-personal presentation or promotion of ideas, goods or services, by an identified sponsor. What Advertisement Is? Advertisement is a mass communicating of information intended to persuade buyers to by products with a view to maximizing a companys profits. The elements of advertising are: (i) It is a mass communication reaching a large group of consumers. (ii) It makes mass production possible. (iii) It is non-personal communication, for it is not delivered by an actual person, nor is it addressed to a specific person. (iv) It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales. (v) Advertising can be economical, for it reaches large groups of people. This keeps the cost per message low. (vi) The communication is speedy, permitting an advertiser to speak to millions of buyers in a matter of a few hours. (vii) Advertising is identified communication. The advertiser signs his name to his advertisement for the purpose of publicizing his identity. What is Included in Advertising? (i) The information in an advertisement should benefit the buyers. It should give them a more satisfactory expenditure of their rupees. 7
(ii) It should suggest better solutions to their problems. (iii) The content of the advertisement is within the control of the advertiser, not the medium. (iv) Advertising without persuasion is ineffective. The advertisement that fails to influence anyone, either immediately or in the future, is a waste of money. (v) The function of advertising is to increase the profitable sales volume. That is, advertising expenses should not increase disproportionately. Advertising includes the following forms of messages: The messages carried inNewspapers and magazines; On radio and television broadcasts; Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen, or by inserts in packages); Dealer help materials, Window display and counter display materials and efforts; Store signs, motion pictures used for advertising, Novelties bearing advertising messages and Signature of the advertiser, Label stags and other literature accompanying the merchandise.
What is excluded from Advertising? Advertising is not an exact science. An advertisers circumstances are never identical with those of another; he cannot predict with accuracy what results his future advertising efforts will produce. (i) Advertising is not a game, because if advertising is done properly, both the buyer and the seller benefit from it. (ii) Advertising is not a toy. Advertiser cannot afford to play with advertising. Advertising funds come from sales revenue and must be used to increase sales revenue. (iii) Advertisements are not designed to deceive. The desire and hope for repeat sales insures a high degree of honesty in advertising.
The activities excluded from advertising are: The offering of premiums to stimulate the sale of products; The use of exhibitions and demonstrations at fairs, show and conventions; The use of samples and activities, involving news releases and the activities of personal selling forces; The payment of advertising allowances which are not used for advertising; The entertainment of customers Advertising Objectives Each advertisement is a specific communication that must be effective, not just for one customer, but for many target buyers. This means that specific objectives should be set for each particular advertisement campaign. Advertising is a form of promotion and like a promotion; the objectives of advertising should be specific. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. The objectives of advertising were traditionally stated in terms of direct sales. Now, it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. Advertising seeks to condition the consumer so that he/she may have a favourable reaction to the promotional message. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. The basic objectives of an advertising programme may be listed as below: (i) To stimulate sales amongst present, former and future consumers. It involves a decision regarding the media, e.g., TV rather than print ; (ii) To communicate with consumers. This involves decision regarding copy ; (iii) To retain the loyalty of present and former consumers. Advertising may be used to reassure buyers that they have made the best purchase, thus building loyalty to the brand name or the firm.
(iv) To increase support. Advertising impliedly bolsters the morale of the sales force and of distributors, wholesalers, and retailers, ; it thus contributes to enthusiasts and confidence attitude in the organizational. : (v) To project an image. Advertising is used to promote an overall image of respect and trust for an organization. This message is aimed not only at consumers, but also at the government, shareholders, and the general public. Importance of Advertising Generally, advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. It can force middlemen to stock the product by building consumer interest. It can help train dealers salesmen in product uses and applications. It can build dealer and consumer confidence in the company and its products by building familiarity. Advertising is to stimulate market demand. While sometimes advertising alone may succeed in achieving buyer acceptance, preference, or even demand for the product, it is seldom solely relied upon. Advertising is efficiently used with at least one other sales method, such as personal selling or point-of-purchase display, to directly move customers to buying action. Advertising has become increasingly important to business enterprises both large and small. Outlay on advertising certainly is the voucher. Non-business enterprises have also recognized the importance of advertising. The attempt by army recruitment is bases on a substantial advertising campaign, stressing the advantages of a military career. The health department popularizes family planning through advertising Labour organizations have also used advertising to make their viewpoints known to the public at large. Advertising assumes real economic importance too. Advertising strategies that increase the number of units sold stimulate economies in the production process. The production cost per unit of output is lowered. It in turn leads to lower prices. Lower consumer prices then allow these products to become available to more people. Similarly, the price of newspapers, professional sports, radio and TV programmes, and the like might be prohibitive without advertising. In short, advertising pays for many of the enjoyable
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entertainment and educational aspects of contemporary life. Advertising has become an important factor in the campaigns to achieve such societal-oriented objectives such as the discontinuance of smoking, family planning, physical fitness, and the elimination of drug abuse. Though in India, advertising was accepted as a potent and recognized means of promotion only 25 years ago, its growing productive capacity and output necessitates the finding of consumers and advertising plays an important role in this process. Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection. In India, advertising as a profession is in its infancy. Because of this fact, there is a tremendous scope for development so that it may be productively used for the benefit of producers, traders, consumers, and the countrys economy.
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CLASSIFICATION AND TYPES OF ADVERTISING 1. Product Related Advertising A. Pioneering Advertising B. Competitive Advertising C. Retentive Advertising 2. Public Service Advertising 3. Functional Classification A. Advertising Based on Demand Influence Level. A. Primary Demand (Stimulation) B. Selective Demand (Stimulation) B. Institutional Advertising C. Product Advertising A. Informative Product Advertising B. Persuasive Product Advertising C. Reminder-Oriented Product Advertising 4. Advertising based on Product Life Cycle A. Consumer Advertising B. Industrial Advertising 5. Trade Advertising A. Retail Advertising B. Wholesale Advertising 6. Advertising Based on Area of operation A. National advertising
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B. Local advertising C. Regional advertising 7. Advertising According to Medium Utilized 1. Product Related Advertising
It is concerned with conveying information about and selling a product or service. Product advertising is of three types, viz., A. Pioneering Advertising B. Competitive Advertising C. Retentive Advertising
A. Pioneering Advertising:
This type of advertising is used in the introductory stages in the life cycle of a product. It is concerned with developing a primary demand. It conveys information about, and selling a product category rather than a specific brand. For example, the initial advertisement for black and white television and color television. Such advertisements appeal to the consumers emotions and rational motives.
B. Competitive Advertising:
It is useful when the product has reached the market-growth and especially the marketmaturity stage. It stimulates selective demand. It seeks to sell a specific brand rather than a general product category. It is of two types: A. Direct Type: It seeks to stimulate immediate buying action. B. Indirect Type: It attempts to pinpoint the virtues of the product in the expectation that the consumers action will be affected by it when he is ready to buy. Example: Airline advertising. Air India attempts to bid for the consumers patronage either immediately - direct actionin which case, it provides prices, time tables and phone numbers on which the customer may call for reservations; or eventually indirect action when it suggests that you mention Air Indias name when talking to your travel agent.
C. Retentive Advertising:
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This may be useful when the product has achieved a favourable status in the market that is, maturity or declining stage. Generally in such times, the advertiser wants to keep his products name before the public. A much softer selling approach is used, or only the name may be mentioned in reminder type advertising.
3. Functional Classification
Advertising may be classified according to the functions which it is intended to fulfil. (i) Advertising may be used to stimulate either the primary demand or the selective demand. (ii) It may promote either the brand or the firm selling that brand. (iii) It may try to cause indirect action or direct action.
product or service. The advertiser attempts to differentiate his brand and to increase the total amount of consumption of that product. Competitive advertising stimulates selective demand. It may be of either the direct or the indirect type.
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change or action for an offering. It deals with the non-personal selling of a particular good or service. It is of three types as follows:A. Informative Product Advertising B. Persuasive Product Advertising C. Reminder-Oriented Product Advertising
4. Advertising based on Product Life Cycle A. Consumer Advertising B. Industrial Advertising A. Consumer Advertising
Most of the consumer goods producers engage in consumer product advertising. Marketers of pharmaceuticals, cosmetics, scooters, detergents and soaps, cigarettes and alcoholic beverages are examples. Baring a few, all these products are all package goods that the consumer will often buy during the year. There is a heavy competition among the advertisers to establish an advantage for their particular brand.
B. Industrial Advertising
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Industrial executives have little confidence in advertising. They rely on this form of promotion merely out of fear that their competitors may benefit if they stop their advertising efforts. The task of the industrial advertiser is complicated by the multiple buying influence characteristics like, the derived demand, etc. The objectives vary according to the firm and the situation. They are: To inform, To bring in orders, To induce inquiries, To get the advertisers name on the buyers list of sources, To provide support for the salesman, To reduce selling costs, To help get items in the news column of a publication, To establish recognition for the firm or its product, To motivate distributors, To recognition for the firm or its products, To motivate distributors, to create or change a companys image, To create or change a buyers attitude, and The basic appeals tend to increase the rupee profits of the buyer or help in achieving his non-monetary objectives. Trade journals are the media most generally used followed by catalogues, direct mail communication, exhibits, and general management publications. Advertising agencies are much less useful in industrial advertising.
public, such as beauty shops, petrol pumps and banks. Advertising agencies are rarely used. The store personnel are usually given this responsibility as an added task to be performed, together with their normal functions. The result is that advertising is often relegated to a secondary position in a retail store. One aspect of retail advertising is co-operative advertising. It refers to advertising costs between retailers and manufacturers. From the retailers point of view, cooperative advertising permits a store to secure additional advertising that would not otherwise have been available.
B. Wholesale Advertising
Wholesalers are, generally, not advertising minded, either for themselves or for their suppliers. They would benefit from adopting some of the image-making techniques used by retailers the need for developing an overall promotional strategy. They also need to make a greater use of supplier promotion materials and programs in a way advantageous to them.
A. National advertising
It is practiced by many firms in our country. It encourages the consumer to buy their product wherever they are sold. Most national advertisements concentrate on the overall image and desirability of the product. The famous national advertisers are: Hindustan Levers DCM ITC Jay Engineering TISCO
B. Regional advertising
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It is geographical alternative for organizations. For example, Amrit Vanaspati based in Rajpura claims to be the leading hydrogenated oil producer in the Punjab. But, until recently, it mainly confined itself to one of the vegetable oil brands distribution to Malihabad district (in U.P. near Lucknow).
C. Local advertising
It is generally done by retailers rather than manufacturers. These advertisements save the customer time and money by passing along specific information about products, prices, location, and so on. Retailer advertisements usually provide specific goods sales during weekends in various sectors.
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marketing and advertising objectives i.e., to increase the sales turnover and thus to market the maximum profit. The advertiser spends lakhs of rupees in to this advertising activity. In the background of all these efforts, is an attempt to attract the customer towards the product through advertising. As soon as the advertising campaign is over, a need is generally arisen to measure the effectiveness of the campaign. Whether, it has achieved the desired results i.e. desired sales profitability or results in terms the change in customer behaviour in favour of the companys product which will naturally, affect the future sale of the product. In order to measure the effectiveness of advertising copy, two types of tests pre tests and post tests- can be undertaken. Pre tests are generally conducted in the beginning of the creation process or at the end of creation process or production stage. There are several pre and post tests techniques to measure the effectiveness of the advertising copy. The effectiveness of advertising in a particular media may also be measured in any of the following ways (a) By giving different addresses to different media, (b) Different newspapers may be selected for advertisements of different departments, (c) Coupon blank etc. May be provided with the advertisement or (d) Enquiry from consumers should mention the name of the source of information. The technique is known as keying the advertising. Thus in measuring the effectiveness of advertising we include measuring of the effectiveness of advertising campaign, advertising copy and the effectiveness of individual media. This chapter deals these three problems.
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order to determine whether advertisement have been seen or heard or in other words whether they have communicated the theme, message or appeal of the advertising.
The other measure of advertising effectiveness is the method of experimental control where a casual relationship between advertising and sales is established. This method is quite expensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs. Media schedules expenditure levels or some combination of these advertising decision areas. One experimental approach to measuring the sales effectiveness of advertising is test marketing.
attitude or customer recall of advertising message affect the sales or profits or goals of the business indirectly. Despite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results, there is no other alternative but to use indirect measures. The most commonly used measures are
The marketers who rely heavily on advertising often appraise its effectiveness by measuring the customers awareness about the particular product or brand. The assumption of this type of measure is that there is a direct relationship between the advertisements and the awareness. This type of measure is also subject to the same criticisms as is applicable to direct measures of effectiveness (sales measures because awareness is also not the direct result of the advertisements. It is also affected by many other factors. But, for new products, changes in awareness can often be attributed to the influence of advertising.
(iv) Comprehension
Consumers generally use advertisements as a means of obtaining information about the product, brand or the manufacturer. They cannot be informed unless they comprehend the message (grasp the message mentally and understand it fully). Various tests for valuating comprehension are available One is recall tests an indicator of comprehension because it is evident that consumers recall what they comprehend. Another measure of the variable is to ask questions about subjects how much they have comprehended a message they have recently heard or seen. One may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. One may ask typical target consumers from time to time such questions like what did you think of our new commercial? and Did it get the message across? The answers of these questions will provide sufficient insight into advertising decision making.
(vi) Action
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One objective of advertisement may be assumed to be to stimulate action or behavior. The action or intention to take an action may be measured on the intention to buy measuring instrument. Under this type of measure, consumers are asked to respond why they are interested in purchasing the product or brand. One type of action that advertisers attempt to induce is buying behavior. The assumption is that if an increase in sales follows a decrease in advertising expenditure, the change in sales levels are good indicators of the effectiveness of advertising. Logic suggests that measurement of sales is preferable to other measurements. Thus, these above measures (direct or indirect) are used to evaluate the effectiveness of advertisements. It seems from the analysis of the above methods of measuring effectiveness that directly or indirectly changes in sales or profits are taken as the measuring rod of the effectiveness of the advertising.
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feel that promotional activities should only be accepted as socio economic institution with full right and privileges when the means exist to prove that advertising super are productive rupees It is undoubtedly a source of embarrassment that we cannot exactly measure the effectiveness of advertising in definitive terms. The exact result of advertisement expenditure is very difficult to predict because.(a) The reaction of consumer buyers to the advertising efforts cannot be known in advance. (b) The reaction of competitors in the field cannot be guessed in anticipation and (c) The unexpected events (such as change in social and economic environment and the government policies etc.) cannot be accurately anticipated. Such events may influence the results of the advertising efforts. If we take a hypothetical case of a retailer who contract to spent Rs.5000 on advertisement with a local newspaper for a special sales even. The advertisement is seen and the response is much greater than it is anticipated. What caused the success of sale? They message theme colors etc., of the advertisement or the low prices quoted during the sale of the superior quality of the product or absence of competition in the market on the day or the favorable. Weather conditions or the goodwill of the firm etc. The overwhelming success of the sale is the joint result of all the above variables and it is quite impossible to isolate the role of any one variable. It is so because the cause and effect relationship cannot be established in advance when a multitude of variable impinge upon a particular event. It is entirely possible that a poor advertising support may push up the sale because everything else falls into its proper place or the reverse may be possible. But it does not mean that that we cannot measure the effects of particulars advertising effort. The advertising executives are much concerned about the assessment of the effectiveness of the advertising efforts. For this purpose, the management needs answers to such questions as: was the advertising campaign really successful in attaining the advertising goals? Were our T.V. commercials as good as those of our competitors? Will the print advertisement, which we have designed, make consumers aware of our new product? To get answers of these questions, various tests of effectiveness (Pre- tests and post tests ) are deeded to determine whether proposed advertisement should be used, and if they are not satisfactory how they might be improved, and whether on going campaign should be stopped continued or changed. Pre- tests are conducted before exposing target consumers to the advertisements and post tests after consumers have been exposed to them. 27
As indicated earlier, the advertisers are interested in knowing what they are getting for their advertising rupees, So they test the proposed advertisement with pre test and measure the actual results with a post test. In the past, protesting was done by the advertising agencies but now the advertisers have been taking an increasingly active role in protesting process. Pre test may be done either before an advertisement has been designed or executed after it is ready for public distribution or at both points. During protesting there is often research on three vital questions:(i) Do consumers feel that the advertisement communicates something desirable about the product? (ii) Does the message have an exclusive appeal that differentiates the product from that of the competitors? (iii) Is the advertisement believable? Although a lot of money is spent on protesting yet the advertisers like to confirm the results by post testing of their promotional campaigns due to the following reasons:(i) There is a need produce more effective advertising by retaining the good and removing the bad. (ii) The advertising executives can prove to the satisfaction of the management that a higher advertising budget will benefit the firm. (iii) There is a need for measuring the results to determine the level of expenditure that is most promising. Most research focuses on the communication effect rather than sales effect because it is a long run process. In the short run, however sales may be slight and important but in the long run its effects ob brands and companies may be of great importance. Indirectly it will affect the sales in the long run, by changing the consumer awareness and attitude. The advertisers are therefore, concerned with their impact on consumer awareness and attitude. The communication effect on sales may be presented in the following figure:Communication Effect on Sales Awareness Attitude 28
Trial Satisfaction Purchases or repurchase Awareness builds a favorable or at least a curious attitude towards the product which leads to experimentation. If consumer is satisfied with the trial he may decide to purchase the product. There are many critical and unresolved issues in determining how to test the communication effects of advertising. Among these are:(1) Exposure Conditions Should advertising be tested under realistic conditions or under more controlled laboratory conditions? (2) Execution Protesting a finished advertisement as an expensive and time consuming. Does protesting a preliminary execution produce accurate and useful data? (3) Quality Vs. Quantity Data- Quantitative data are the easiest and the almost precise measurement. But qualitative data collected through interviews may provide information that short answer questions never can. Many types of advertising tests are conducted (different methods of pre tests and post test are given in question number) In T.V. commercials are tested by inviting a group of people to the studio to view a program. The audience is then surveyed about the commercials. Print advertisements are tested through dummy magazine portfolio tests.
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many situations the exact relationship between advertising activity and sales cannot be established satisfactorily. We can correctly assume that some sales will occur even though there is no advertising or little advertising or conversely there will be no increase in sales after the point of saturation is reached or it may be that sales will show a decreasing trend at this point in spite of large amount of expenditure on advertising is done. It is so because advertising is no the only variable that effect the sales. Thus, we may conduct that sales effect of advertising is difficult to measure because a number of variables affect the quantum of tales and the contribution of advertisement cannot be measured separately unless all other variables are presumed to be constant. This situation is quite hypothetical and almost nonexistent. Added to this is the fact that advertisement itself is made of a variety of variables such as media, messages, colours, page or time of the day, locations, the size of the headline and the appeals used. Thus even if the advertising variable is separated this would still not answer the question about the effectiveness of the individual components of the advertising campaign. So advertisers try to measure the communication effect of the advertising. Suitability In small business firms where the marketing research resources are limited advertising managers may decide on less expensive and less relevant measures. The big business house, which has more access to research, may decide on the more relevant and expensive measures.
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Factors Affecting Advertising The final external factor in the planning framework concerns environmental factor social, legal, and global. Law forbids deceptive advertising. One solution is to create brand advertising that is vague and contains little specific information. However, such an approach can result not only in ineffective advertising; by it can lessen the social value of advertising by reducing the amount for useful information that it provides to society. Thus, and advertiser who attempts to provide specific, relevant information must be well aware of advertising regulation. Even more difficult consideration for people involved in the advertising effort is broad social and economic issues. Another concern is that advertising, especially when it is more irritating than entertaining, is an intrusion into an already excessively polluted environment. A whole set of rules is emerging to cover advertising directed at children, and advertising for products such as alcohol and cigarettes, and the use of environmental and health claims in advertising. Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other.
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IMPACT OF ADVERTISEMENT Advertising has an important effect on a countrys economy, society, culture, and political system. This is especially true in the United States where the advertising industry plays such a prominent role. 1. Economic Impact Most economists believe that advertising has a positive impact on the economy because it stimulates demand for products and services, strengthening the economy by promoting the sale of goods and services. Manufacturers know that advertising can help sell a new product quickly, enabling them to recoup the costs of developing new products. By stimulating the development of new products, advertising helps increase competition. Many economists believe that increased competition leads to lower prices, thereby benefiting consumers and the economy as a whole. These economists also argue that by interesting consumers in purchasing goods, advertising enables manufacturers and others to sell their products in larger quantities. The increased volume of sales enables companies to produce individual units at lower costs and therefore, sell them at a lower price. Advertising thus benefits consumers by helping lower prices.
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Other economists, however, believe that advertising is wasteful. They argue that the cost of advertising adds to the cost of goods and that most advertising simply encourages consumers to buy one brand rather than another. According to this view, advertising simply moves sales from one company to another, rather than increasing sales overall and thereby benefiting the economy as a whole.
2. Social Impact Advertising can have wide-ranging repercussions on a society. Some critics suggest that advertising promotes a materialistic way of life by leading people to believe that happiness is achieved by purchasing products. They argue that advertising creates a consumer culture in which buying exciting new products becomes the foundation of the society's values, pleasures, and goals. Other critics express concern over the way advertising has affected women and racial minority groups. Ads in the 1950s depicted women primarily as decoration or sex objects. Although millions of women worked outside the home in the 1960s, ads continued to focus on their role as homemakers. Whether owing to the feminist movement or to women's increasing economic power, after the 1960s it became more common to see women depicted in professional roles. However, many ads today still emphasize a womans sexuality. The way advertising has depicted racial minorities has also been harmful. Prior to 1960, African Americans were usually shown in a subordinate position. Due to the influence of the civil rights movement, however, advertisers by the 1980s had begun to depict African Americans as students, professionals, or business people. However, many 33
African American organizations and community activists continue to object to the way that alcohol and tobacco companies have seemingly targeted low-income minority communities with a heavy preponderance of outdoor advertising for their products. As ads have begun to more fully reflect the lives of women and African Americans in the United States, increasing attention has been paid to the way in which advertising shows other ethnic groups, including Hispanics, Asians, Native Americans, and Eastern Europeans. There is still considerable debate over how advertising influences public perception of gender and of particular ethnic groups. Advertising has a major social impact by helping sustain mass communications media and making them relatively inexpensive, if not free, to the public. Newspapers, magazines, radio, and broadcast television all receive their primary income from advertising. Without advertising, many of these forms of mass communication might not exist to the extent that they do today, or they might be considerably more expensive, offer less variety, or even be subject to government control through subsidies. In-depth news programs, a diversity of magazines, and free entertainment might no longer be widely available. At the same time, however, some critics warn that because advertising plays such a major economic role, it may exercise undue influence on the news media and thereby curtail the free flow of information in a free society. Reporters and editors, for example, may be hesitant to develop a news story that criticizes a major advertiser. As a result, society might not be alerted to harmful or potentially harmful conduct by the advertiser. Most members of the news media deny that pressure from an advertiser prevents them from pursuing news stories involving that advertiser, but some members of the media acknowledge that they might not be inclined to investigate an issue aggressively if it threatened to offend a major advertiser. Advertisers may affect media programming in other ways, too, critics charge. For example, companies that sponsor TV programs prefer relatively wholesome, noncontroversial programming to avoid offending a mass audience. This preference 34
causes TV networks to emphasize this type of programming. The result is that society may be denied the benefits of being able to view challenging or highly original entertainment programs or news programs on controversial issues. Because advertisers are especially interested in attracting the 18 to 34 year olds who account for most consumer spending, television shows are often developed with this audience in mind. If the ratings show that a program is not attracting large audiences, particularly among 18 to 34 year olds, advertisers often withdraw support, which causes a program to be canceled. As a result, shows that are more likely to interest and to be of value to older audiences are not produced. The impact of television on young children has received much attention. Research suggests that children see television advertising as just another form of programming and react uncritically to its messages, which makes them especially vulnerable to advertising. There is also concern about the way in which adolescent girls respond to advertising that features beautiful, thin models. Research indicates that many adolescent girls are unduly influenced by this standard of beauty, become dissatisfied with their own bodies, and may develop eating disorders in pursuit of a thin figure. New research suggests that adolescent boys are also being influenced by advertising images of bulked-up, buffed bodies. As a result, many become dissatisfied with their own body image, devote large amounts of time to weightlifting, and may even take drugs that have harmful side effects in order to develop more muscle. Those over the age of 60 are thought to be less influenced by advertising, but some elderly people no longer process messages as easily as younger people, making them more susceptible to questionable advertising claims. 3. Political Impact Advertising is now a major component of political campaigns and therefore has a big influence on the democratic process itself. In 1998 more than $467 million was spent on election campaigns in the United States. That amount of spending placed political advertising in the ranks of the countrys 30 leading advertisers that year. Political advertising is a relatively new development in U.S. history. Advertising professionals did
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not become involved in electoral campaigns until the 1950s. But since then, political advertising has grown in sophistication and complexity. Political advertising enables candidates to convey their positions on important issues and to acquaint voters with their accomplishments and personalities. Television advertising is especially effective for candidates running for national or statewide office because it can reach so many people at once. Candidates can also use advertising to respond effectively to the charges of their opponents. Various campaign finance reform proposals, however, have tried to address the impact of television advertising on political campaigning. Because of the high cost of television ads, the costs of political campaigns have skyrocketed, making it necessary for candidates to raise money continually, even after they have been elected to office. Critics say this factor jeopardizes the democratic process by making elected officials beholden to wealthy contributors and by making it more likely that only the wealthy will run for office. Some reform proposals have called for free airtime, but television and radio networks have resisted this idea. Critics of political advertising also charge that the 30-second television spot has become more important to a political campaign than a thorough discussion of the issues. As a result, voters are bombarded with image advertising rather than being acquainted with the candidates positions. They contend that this practice is harmful to good government. Issues are simplified, and candidates are packaged and sold much like a consumer product, thereby distorting the political process. 4. Cultural Impact Advertising can affect cultural values. Some advertising messages, for example, encourage aggressive individualism, which may clash with the traditional cultural values of a country where the collective or group is emphasized over the individual or humility or modesty is preferred to aggressiveness. With the globalization of the world economy, multinational corporations often use the same advertising to sell to consumers around the world. Some critics argue that advertising messages are thus helping to break down 36
distinct cultural differences and traditional values, causing the world to become increasingly homogeneous. Many advertising campaigns, however, have universal appeal, overriding cultural differences, or they contribute to culture in a positive way. Humor in advertising has made many ad campaigns widely popular, in some cases achieving the status of folklore or taking on new life in another arena. For example, a popular ad campaign for a fastfood chain with the slogan Wheres the beef? became part of the 1980 Democratic presidential primary campaign between Gary Hart and Walter Mondale. The ad ridiculed a competitor by depicting a small hamburger patty dwarfed by a huge bun. During a primary debate one of the candidates used the ad slogan to suggest that his opponents campaign lacked substance.
RESEARCH METHODOLOGY Research Design Data Source Research Instrument Sample design Sample size Sample location : : : : : : : Descriptive Primary data Secondary data Questionnaire Simple random design 100 Durg
: Bhilai Sample element : : : : Students Business class House hold Service class
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SAMPLING UNIT
Sampling Unit is the total number of samples differed in different locality. Sl. No. 1. 2. 3. 4. Classes Students Business class Household Service class Total No. of Classes 25 25 25 25 100
Data have been collected through the survey method while surveys have been conducted in one city: i) ii) Durg Bhilai
The data collected was both from the primary and secondary source. The primary data was collected through questionnaires and was collected personally. The secondary data was collected through books, magazines, company website and other websites. All the area had segmented according the population of this area. I have considered 100 as sample size.
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HYPOTHESIS TESTING
H0: The difference among the parameter which influences the perception of consumers towards the product is significant. H1: The difference among the parameter which influences the perception of consumer towards the product is insignificant.
DETERMINANTS STILL IMAGE MOVING IMAGE ENTERTAINMENT INFORMATION LANGUAGE CELEBRITY INTENSITY SOCIAL ISSUE NATIONAL ADS LOCAL ADS
STUDENTS 3 22 10 22 5 19 16 5 23 2
BUSINESS CLASS 8 17 5 22 19 14 12 17 23 2
SERVICE CLASS 8 17 4 24 18 19 11 18 16 9
HOUSEHOLD 9 16 7 19 21 17 13 19 14 11
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Degree of freedom 3 36 39
F-Ratio 0.179
F1-TABLE VALUE at (0.05) level of significance of (3,36) = 2.8387 Here in this case F1-statistics < F1-table value. Hence the null hypothesis is accepted.
Interpretation:Since when the statistical value is less than table value then the null hypothesis is accepted and hence we can say that the difference among the determinants and parameters is insignificant.
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GRAPHICAL INTERPRETATION
Interpretation:
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Interpretation:
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Interpretation:
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More number of people consider advertisement as a source of information rather than a source of entertainment.
26 74
Interpretation:
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Entertaining advertisement does not affect the opinion of customer about the product
5. Does information provided in advertisement affects your opinion about the product?
Answers Yes No No. of respondents 87 13
Interpretation:
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Information provided in the advertisement affect very much on the opinion of consumers about the product.
6. Does language used in advertisement affects your opinion about the product?
Answers Yes No No. of respondents 63 37
Interpretation:
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Language used in the advertisement affects a lot on the opinion of consumers about the product.
7. Does presence of any celebrity in the advertisement affects your opinion about the product?
Answers Yes No No. of respondents 69 31
Interpretation:
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Presence of any celebrity affects on the opinion of consumers about the product.
8. Does intensity of the advertisement affects your opinion about the product?
Answers Yes No No. of respondents 52 48
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Interpretation:
The effect of intensity is very powerful on the opinion of consumers about the product.
9. Does presence of social issues in the advertisement affects your opinion about the product?
Answers Yes No No. of respondents 59 41
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Interpretation:
Presence of social issues in advertisements affects very much on the opinion of consumers about the product.
50
Interpretation:
Advertisement helps very much in increasing the sales of any product.
No. of respondents 76 24
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Interpretation:
National advertisements affect peoples opinion more than the local advertisements.
FINDINGS
Advertisements with moving image are more effective than advertisement with still image. Information provided in the advertisement has more influence on consumers perception about the product.
Language used in the advertisement also plays important role in increasing effectiveness of an advertisement. Intensity of advertisement affects the perception of consumers towards the product and leads them for its purchase.
Social issues included in advertisement affects the perception of high age group people. National advertisement has more influence on consumers perception about the product instead of local advertisement. Advertisement increases the sales of any product. 52
LIMITATIONS The marketing researcher has to face certain difficulties while he carries out the research work. He knows the limitation beforehand, uncontrollable and others are controllable. Some important limitations, which are faced by researchers as follows: -
Sample size restricted to 100 only which was very less according total population.
The responses given by respondents were not always accurate because the respondents gave the response according to their understanding.
Survey is a time consuming process but the time to collect the data for research was very less.
Sometimes the respondents are not willing to fill the the resultant may not be correct.
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Marketing researchers studies the behavior that is rational. Very often, they do not express their feeling correctly what they think. In such cases their habitual, practice, preferences cannot be assessed correctly.
CONCLUSION
ANOVA reveals that all the determinants are not internally equal they are significantly different from one another. Similarly, all the parameters are not internally equal they are significantly different from one another. In order to measure the effectiveness of advertising, which approach (communication effectiveness or sales effectiveness), is more suitable? Two factors are to be considered in deciding the approach. They are 1. Relevance of advertising objectives on the overall performance objectives: Generally advertising managers would like to know the role of advertisements on the overall performance of the business firm i.e., return on investment and on profitability. A sale is a determining factor of company performance. 2. Difficulty and cost of obtaining data needed to evaluate effectiveness: Generally communication measures are easy to follow than sales effectiveness measures. If the measures of advertising are more relevant they will be difficult and costly. If it is less difficult and cheap the measures will not be more relevant. Therefore, the advertising manager has to make a balance between these two approaches.
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SUGGESTIONS
Advertisement should be made with keeping the determinants of effectiveness in mind. Advertisement should be according to the product and its suitability with different age groups. To make advertisement more effective all the determinants of effectiveness should be taken care of.
Investment in advertisement should be made with great care of media of advertisement and type of advertisement. Advertisers should develop new and more effective ways of advertisement.
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REFERENCE
Books 1. Advertising Management concepts and cases Mahendra Mohan. 2. Marketing Management Philip Kotler 3. Branding Geoffrey Randoll 4. Strategic Brand Management Kapferer 5. Advertising and Sales Promotion Management S.L.Gupta, V.V.Ratra 6. Advertising and Salesmanship P.Saravanavel.
Internet
1. www.books.google.com 2. www.scribd.com 3. www.paulbeelen.com 4. www.decisionanalyst.com
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Questionnaire
I am Vishal Kumar Sharma pursuing II Semester of Master of Business Administration from B.I.T. ( Durg ). I am doing my research report on A Study on Effect of Advertisement on Consumers as a part of my course curriculum. For this I require you to please fill this questionnaire.
Name: ................................. Sex: Age: a. Below 20 b. 20 to 30 c. 30 to 40 d. Above 40 Occupation: a. Student [ ] ] [ [ [ [ ] ] ] ] a. Male [ ] b. Female [ ]
b. Business class [
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c. House hold
] ]
d. Service class [
1. From where do you get information about the new product? a. Television b. Newspapers c. Magazines d. Internet [ [ [ [ ] ] ] ] ]
e. Peers (friends/family) [
2. Which form of advertisement do you like more? a. Still image (Magazines / Newspapers) b. Moving image (Television / Internet) 3. For you advertisement is a source of a. Information b. Entertainment [ [ ] ] [ [ ] ]
4. Does an entertaining advertisement influences your opinion about the product? a. Yes b. No [ [ ] ]
5. Does information provided in advertisement affects your opinion about the product? a. Yes b. No [ [ ] ]
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6. Does language used in advertisement affects your opinion about the product? a. Yes b. No [ [ ] ]
7. Does presence of any celebrity in the advertisement affects your opinion about the product? a. Yes b. No [ [ ] ]
8. Does intensity of the advertisement affects your opinion about the product? a. Yes b. No [ [ ] ]
9. Does presence of social issues in the advertisement affects your opinion about the product? a. Yes b. No [ [ ] ]
10. Do you think advertisement helps in increasing sales of any product? a. Yes b. No [ [ ] ]
11. Which type of advertisement influences you more? a. National advertisement b. Local advertisement [ [ ] ]
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