33783488 Outdoor Advertizing in India

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A STRW PROJECT ON

OUTDOOR ADVERTISING IN INDIAPROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA INMANAGEMENT

(Approved by AICTE, Govt. of India) (Equivalent to MBA) ACADEMIC SESSION 2009-11

SUBMITTTED TO:DR. TAPAN KUMAR NAYAK AREA CHAIRPERSON, ECONOMICS.

SUBMITTED BY:NIKHIL KUMAR GARG (BM-09123) NIKHIL SINGH (BM-09124) NIMISHA GUPTA(BM-09125) NITESH KUMAR (BM-09127)

C-238, BULANDSHAHR ROAD, GHAZIABAD -201009 INSTITUTE OF MANAGEMENT STUDIES

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CERTIFICATE

This is to certify that Mr. Nikhil Kumar Garg(BM-09123), Mr. Nikhil Singh(BM-09124), Nimisha Gupta(BM-09125), Nitesh Kumar(BM-09127) have completed their project titled Outdoor advertizing in India under my guidance with full honesty and integrity and submitted towards partial fulfillment of Post graduate diploma in management at IMS Ghaziabad.

Dr. Tapan Kumar Nayak (Area Chairperson of Economics)

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CANDIDATES DECLARATION

We hereby declare that the work which is being presented in the report entitled OUTDOOR ADVERTISING IN INDIA in partial fulfillment of the requirement of the award of the post graduate diploma in management and submitted in the INSTITUTE OFMANAGEMENT STUDIES, GHAZIABAD is an authentic record of our own work carried outduring a period from Jan 18, 2010 to March 20, 2010 under the supervision of Dr. Tapan Kumar Nayak, Area chairperson of Economics INSTITUTE OF MANAGEMENT STUDIES GHAZIABAD. The matter presented in this report has not been submitted by us in the award of any other degree or diploma of this or any other institute.

CANDIDATES NAME AND SIGNATURE :NIKHIL KUMAR GARG(BM-09123) NIKHIL SINGH (BM-09124) NIMISHA GUPTA(BM-09125) NITESH KUMAR(BM-09127)

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ACKNOWLEDGEMENT

No task whatever big or small can be completed without proper guidance and encouragement. It gives us a great pleasure to our deep sense of gratitude and reverence to every person who created a congenial atmosphere for successful completionof this project. We would like to express our gratitude and profound thanks toDr. TAPAN KUMAR NAYAK, AREA CHAIRPERSON, and faculty of Institute of ManagementStudies, Ghaziabad to give us a chance to get an industrial exposure.

We thank each and everyone who are involved in this report completion without which it would not have been possible for us to complete this project.

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ABSTRACT

In India now a days, competition in every field of business is very high and companies are trying to attract maximum number of customers. For this, companies are using various modes of advertizing and searching for newer ways which effect much more customer. This led to the development of various forms of advertizing and outdoor advertizing is one of them. Purpose- In these papers, we are trying to study various medium of outdoor advertizing and also various other types of advertizing and their effect on various customers to understand customers need toattract more and more customers. Method used- The primary as well as secondary data for the studies. For primary data, a questionnaire has been prepared and customers having various perceptions were asked to fulfill it. Secondary data is collected from web resources and books. Various statistical tools like graphical method and chi-square test for our research purpose and analysis of data has beenused. Findings- Various modes of advertizing are equally important and outdooradvertizing is one of them. It helps in boosting sales and attracting more and more customers and company must focus on outdoor advertizing as it can reach moreand more number of peoples than other modes of advertizing.

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TABLE OF CONTENTSS.No. 1. 2. 3. 3. 4. 4.1 4.2 4.3 5. 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 6. 7. 8. 9.10. 11. 12. 13. TOPIC Introduction Justification of the study Literature reviewResearch objectives Advertizing basics History of advertizing Definition of advertizing Importance of advertizing Outdoor advertizing Factors affecting outdooradvertizing Kinds of outdoor advertizing Classification and types of advertizingMeasuring advertizing effectiveness Methods of measuring advertizing effectiveness Communication effects of advertisement Factors affecting advertizing Impactof advertizing Research methodology Findings Summary Conclusion Recommendation Suggestions References Annexure PAGE NO. 7 9 10 11 12 12 15 18 20 20 21 30 38 4044 49 49 55 71 72 73 74 76 77 77

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INTRODUCTION

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 ameans of locating the source of goods. This method is still in common use. Theseller 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 theadvantages of his products. Thus, the seller was doing the complete promotion job himself. Development of retail stores, made the traders to be more concernedabout 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 weresometimes 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 tohave continuing contacts with present and potential customers. As the markets grew larger and the number of customers increased, the importance of attracting t

hem 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 methodswere useful for informing and reminding and reminding, they could not do the whole promotional job. They were used only to reach each consumer personally. Themerchant still used personal persuasion once the customers were attracted to hisstore. 7


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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 existing products. Another important event was the emergenceof the pamphlet as an advertising medium. The early examples of these pamphletsdisclose their sponsorship by companies want to generate goodwill for their activities. The low cost of posters and handbills encouraged a number of publishersto experiment with other methods.

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JUSTIFICATION

The present study has focused on effect of outdoor advertising on consumer perception and their attitude towards different products and services. It has been observed through various researches, that the mode of advertising used like printmedia i.e. magazines and newspaper; electronic media i.e. television and radio;outdoor advertising i.e. billboards, hoardings, electronic displays plays an important role in determining the buying behavior of consumers . Outdoor advertising has been focused and compared with the other types of media to make the comparison on the basis of effectiveness. Outdoor media is developing and taking shapein best marketing promotion activities. Also studying the perception and consumer attitudes regarding different advertising media will provide an insight to further future development.

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REVIEW OF LITERATUREKotler,(1994)- According to a research concentrating on the advertisers viewpoint, advertisement is an important tool which companies use to directly persuade buyers and public . Being a key element in the marketing process, advertisementsface many challenges in reaching the audience. Krugman, 1975- One of the main obstacles is the low audience involvement . In most forms of communication, the audience least make some effort to pay attention or appear to be doing so. The adverts are meant for the audience to watch but unfortunately the audience is likely to take active steps in avoiding them. The advertiser therefore have problem of making loomed perhaps generally evasive audience pay attention to what is going on or at least enough to get basic selling message The challenge gets more difficult in a multiracial country such as Malaysia. Bonnex,(1975)- The existence of the advertisement rooted in Malaysia dated back to the 1971 as claimed by in his thesis. His theory is even supported by the Honourable Minister Tan Sri Gazalis speech in 1971(Bernama, 1971). Advertising agencies fuel the basic needs of acompany to plan, strategise and introduce their product in the market. It is oneof the basis of the supply chain and many advertising agencies are involved inthis business in Malaysia. Aaker and Mayers, 1975 As known for decades, advertisement is one of the main strategies in marketing either a product or service. Itcan be defined as An Advert that does not create a buying response, or at leastproduce a desire to want to know more is not an advert (Quinn, 1985). Porter (1980). The value chain is a systematic approach in examining the development of competitive advantage. It was introduced by one of the pioneer in the ICT and business industry Potter also explains the sources of cost reduction and differentiat

ion within a firm. Potter treats every firm as a collection of activities carried out to develop, strategically market, deliver and maintain its products or services.

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RESEARCH OBECTIVES

To study types of advertisements.

To study effectiveness of advertisements i.e. on sales, profitability.

To study electronic media, print consumers outdoor media. different the perception of towards the advertisement i.e. media and To find the ways to make it more effective.

modes of

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ADVERTISING BASICSHISTORY OF ADVERTISEMENTArchaeologists 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 display1. Archaeologists have uncovered many such signs, notably in the ruins of ancient Rome and Pompeii. An outdoor advertisement excavated in Rome offersproperty 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 ofthe 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 inAmerica, began carrying ads in 1704, and about 25 years later Benjamin Franklinmade ads more readable by using large headlines. In the United States, the advertising profession began in Philadelphia, Pennsylvania, in 1841 when Volney B. Pa

lmer set up shop as an advertising agent, the forerunner of the advertising agency. Agents contracted with newspapers for large amounts of advertising space atdiscount 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 &1

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Son, an agency that still exists today. Ayer transformed the standard agent practice by billing advertisers exactly what he paid to publishers plus an agreed upon commission. Soon Ayer was not only selling space but was also conducting market research and writing the advertising copy. Advertising 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 becausethey 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 alsochanging. No longer did advertising simply present the product benefit. Insteadit 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 sintelligence. 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 t

hat 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 forVolkswagen that made the agency s reputation.

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At a time when American cars were getting bigger and bigger and the advertisingfor 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 ofwhite space with the headline, think small. An equally unconventional ad carried the headline lemon beneath a photo of an apparently flawed Volkswagen. Thead

s copy explained that

this Volkswagen missed the boat. The chrome strip onthe 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 Bernbachand 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 elsethey will simply use the remote to change the channel. New digital devices eventhreaten 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 consumersto 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.

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DEFINITION OF ADVERTISINGThe word advertising originates from a Latin word advertise, which means to turnto. 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 nonpersonal presentation or promotion of ideas, goods or services, by an identified sponsor. WhatAdvertisement Is? Advertisement is a mass communicating of information intendedto 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 largegroup 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 isused 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. Thiskeeps the cost per message low. (vi) The communication is speedy, permitting anadvertiser 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.

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What is Included in Advertising? (i) The information in an advertisement shouldbenefit the buyers. It should give them a more satisfactory expenditure of theirrupees. (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 in Newsd magazines; On radio and television broadcasts; Circular of all kinds, (whetherdistributed by mail, by person, thorough tradesmen, or by Dealer help materials, Window display and counter display materials and efforts; Store signs, motionpictures used for advertising, Novelties bearing advertising messages and Signature of the advertiser, Label stags and other literature accompanying the merchandise.

inserts in packages);

What is excluded from Advertising? Advertising is not an exact science. An advertisers circumstances are never identical with those of another; he cannot predictwith accuracy what results his future advertising efforts will produce. (i) Advertising is not a game, because if advertising is done properly, both the buyerand the seller benefit from it. (ii) Advertising is not a toy. Advertiser cannotafford to play with advertising. Advertising funds come from sales revenue and

must be used to increase sales revenue. (iii) Advertisements are not designed todeceive. The desire and hope for repeat sales insures a high degree of honestyin advertising. 16


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The activities excluded from advertising are: The offering of premiums to stiate 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 The payment of advertising allowances which are not used for advertising; The entertainment of customers

selling forces;

Advertising Objectives Each advertisement is a specific communication that mustbe effective, not just for one customer, but for many target buyers. This meansthat 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 bespecifically 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 theconsumer 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, formerand future consumers. It involves a decision regarding the media, e.g., TV rather than print ; (ii) To communicate with consumers. This involves decision regard

ing 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.

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(iv) To increase support. Advertising impliedly bolsters the morale of the salesforce and of distributors, wholesalers, and retailers, ; it thus contributes toenthusiasts and confidence attitude in the organizational. : (v) To project animage. Advertising is used to promote an overall image of respect and trust foran organization. This message is aimed not only at consumers, but also at the government, shareholders, and the general public.

IMPORTANCE OF ADVERTIZINGGenerally, 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. Whilesometimes advertising alone may succeed in achieving buyer acceptance, preference, or even demand for the product, it is seldom solely relied upon. Advertisingis 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 a

dvertising 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.

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In short, advertising pays for many of the enjoyable 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 drugabuse. 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. InIndia, 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 forthe benefit of producers, traders, consumers, and the countrys economy.

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OUTDOOR ADVERTISINGAny advertising done outdoors that publicizes your business

s products and services. Outdoor advertising includes various types of promotional displays, from highway billboards to transit posters and arena placement, all geared towards communicating a message to the public. The message might be to buy a product, take atrip, vote for a politician, or give to a charity. It might even be a public service announcement. According to the Outdoor Advertising Association of America,Inc. (OAAA), businesses spent $5.8 billion dollars on outdoor advertising in 2004, a figure expected to rise again in 2005.

FACTORS AFFECTING OUTDOOR ADVERTISING1. Modern urban lifestyles 2. Technological advancements 3. Boom in the real estate and infrastructure a) Malls b) Buildings c) Flyovers d) Toll roads e) Metrotrains 4. Rise in consumerism a) Consumer awareness b) Purchase options c) Buying power 5. Growth in rural markets 6. Saturation of other medias

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KINDS OF OUTDOOR ADVERTISING1. BILLBOARDS a) Front lit

b) Back lit

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2. Bus stops

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3. Metro stations

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4. Auto panel

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5. Train advertisement

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8. Wall paintings

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9. Taxi

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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 LifeCycle 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 B. Local advertising C. Regional advertising 7. Advertising According to Medium Utilized

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1. Product Related Advertising It is concerned with conveying information aboutand 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 heis 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.

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C. Retentive Advertising: This may be useful when the product has achieved a favourable status in the market that is, maturity or declining stage. Generally insuch 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. 2. Public Service Advertising This is directed at the socialwelfare of a community or a nation. The effectiveness of product service advertisements may be measured in terms of the goodwill they generate in favour of thesponsoring organization. Advertisements on not mixing drinking and driving are agood example of public service advertising. In this type of advertising, the objective is to put across a message intended to change attitudes or behaviour andbenefit the public at large. 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. i. Advertising Based on DemandInfluence Level. A. Primary Demand Stimulation Primary demand is demand for theproduct or service rather than for a particular brand. It is intended to affectthe demand for a type of product, and not the brand of that product. Some advertise to stimulate primary demand. When a product is new, primary demand stimulation is appropriate. At this time, the marketer must inform consumers of the existence of the new item and convince them of the benefits flowing from its use. When primary demand has been stimulated and competitors have entered the market, the advertising strategy may be to stimulate the selective demand.

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B. Selective Demand Stimulation This demand is for a particular brand such as Charminar cigarettes, Surf detergent powder, or Vimal fabrics. To establish a differential advantage and to acquire an acceptable sort of market, selective demandadvertising is attempted. It is not to stimulate the demand for the product orservice. The advertiser attempts to differentiate his brand and to increase thetotal amount of consumption of that product. Competitive advertising stimulatesselective demand. It may be of either the direct or the indirect type. ii. Institutional Advertising Institutional Advertising may be formative, persuasive or reminder oriented in character. Institutional advertising is used extensively during periods of product shortages in order to keep the name of the company beforethe public. It aims at building for a firm a Positive public image in the eyesof shareholders, employees, suppliers, legislators, or the general public. Thissells only the name and prestige of the company. This type of advertising is used frequently by large companies whose products are well known. HMT or DCM, for example, does considerable institutional advertising of its name, emphasizing thequality and research behind its products. Institutional advertisements are at consumers or focus them upon other groups, such as voters, government officials,suppliers, financial institutions, etc. If it is effective, the target groups will respond with goodwill towards, and confidence in the sponsor. It is also a useful method or introducing sales persons and new product to consumers. It does not attempt to sell a particular product; it benefits the organization as a whole. It notifies the consumers that the company is a responsible business entity and is patriotic; that its management takes ecologically responsible action, is anaffair- motive action employer, supports the socialistic pattern of society or

provides employment opportunities in the community. When Indian Oil advertisements describe the companys general activities, such as public service work, this may be referred to as institutional advertising because it is intended to build anoverall favorable attitude towards the company and its family of products. HMTonce told the story of the small-scale industries supplying it with component parts, thus indicating how it aided the development of ancillary industries. 33


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iii. Product Advertising Most advertising is product advertising, designed to promote the sale or reputation of a particular product or service that the organization sells. Indanes Cooking Gas is a case in point. The marketer may use such promotion to generate exposure attention, comprehension, attitude change or actionfor an offering. It deals with the non-personal selling of a particular good orservice. It is of three types as follows:A. Informative Product Advertising B.Persuasive Product Advertising C. Reminder-Oriented Product Advertising A. Informative Product Advertising: This form of advertising tends to characterize the promotion of any new type of product to develop an initial demand. It is usuallydone in the introductory stages of the product life cycle. It was the original approach to advertising. B. Persuasive Product Advertising: Persuasive product advertising is to develop demand for a particular product or brand. It is a type of promotion used in the growth period and, to some extent, in the maturity period of the product life cycle. C. Reminder-Oriented Product Advertising: The goalof this type of advertising is to reinforce previous promotional activity by keeping the brand name in front of the public. It is used in the maturity period aswell as throughout the declining phase of the product life cycle. 4. Advertising based on Product Life Cycle A. Consumer Advertising B. Industrial Advertising

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A. Consumer Advertising Most of the consumer goods producers engage in consumerproduct advertising. Marketers of pharmaceuticals, cosmetics, scooters, detergents and soaps, cigarettes and alcoholic beverages are examples. Baring a few, allthese 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 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 thesituation. They are: To inform, To bring in orders, To induce ithe 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, tocreate or change a companys image, To create or change a buyers attitude, and Thebasic 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.

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5. Trade Advertising A. Retail Advertising B. Wholesale Advertising

A. Retail Advertising This may be defined as covering all advertising by the stores that sell goods directly to the consuming public. It includes, also advertising by establishments that sell services to the 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 toa 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 anoverall promotional strategy. They also need to make a greater use of supplier promotion materials and programs in a way advantageous to them. 6. Advertising based on Area of Operation It is classified as follow: A. National Advertising B.Regional Advertising C. Local Advertising

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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. Thefamous national advertisers are: Hindustan Levers DCM ITC Jay Engineering TISCOB. Regional advertising 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 oneof 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. 7. Advertising According to Medium The most common classification of advertising isby the medium used. For example: TV, radio, magazine, outdoor, business periodical, newspaper and direct mail advertising. This classification is so common in use that it is mentioned here only for the sake of completeness.

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Measuring Advertising EffectivenessAll advertising efforts are directed mainly towards the achievement of business,

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 toattract 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 favourof 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 orproduction stage. There are several pre and post tests techniques to measure theeffectiveness 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 selectedfor advertisements of different departments, (c) Coupon blank etc. May be provided with the advertisement or (d) Enquiry from consumers should mention the nameof 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 ofindividual media. This chapter deals these three problems.

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Importance of measuring the Effectiveness of Advertising (1) It acts as a SafetymeasureTesting effectiveness of advertising helps in finding out ineffective advertisement and advertising campaigns. It facilitates timely adjustments in advertisingto make advertising consumer oriented and result oriented. Thus waste of money in faulty advertising can be avoided.

(2) Provides feedback for remedial measuresTesting effectiveness of advertising provides useful information to the advertisers to take remedial steps against ineffective advertisements.

(3) Avoids possible failureAdvertisers are not sure of results of advertising from a particular advertisingcampaign. Evaluating advertising effectives helps in estimating the results inorder to avoid complete loss.

(4) To justify the Investment in AdvertisingThe expenditure on advertisement is considered to be an investment. The investment in advertising is a marketing investment and its objectives should be spelt out clearly indicating the results expected from the campaign. The rate and sizeof return should be determined in advance. If the expected rate of return is achieved in terms of additional profits, the advertisement can be considered as effective one.

(5) To know the communication EffectThe effectiveness of the advertisement can be measured in terms of their communication effects on the target consumers or audience. The main purpose of advertising is communicated the general public, and existing and prospective consumers,various information about the product and the company. It is therefore desirableto seek post measurements of advertising in order to determine whether advertisement have been seen or heard or in other words whether they have communicated the theme, message or appeal of the advertising.

(6) Compare two marketsUnder this procedure, advertising is published in test markets and results are contrasted with other. Markets so called control markets which have had the regular advertising program. The measurements made to determine results may be measur

ements of change in sales, change in consumer attitudes, changes in dealer display and so on depending upon the objectives sought by the advertiser. 39


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METHODS OF MEASURING ADVERTISING EFFECTIVENESSAdvertising is aimed at improving the sales volume of a concern so its effectiveness can be evaluated by its impact on sales. Most of the managers believe thatthe advertisement directly affects the sales volume and hence they evaluate theeffectiveness of the advertising campaign by the increase in the sales volume. There may be two types measures (i) (ii) Direct measures: and Indirect measures:-

(1) Direct Measures of Advertising Effectiveness Under direct measures, a relationship between advertising and sales is established. A comparison of sales of two periods or two periods or two markets may be done and the corresponding changes may be noted. The following are some of the methods that are generally used inmeasuring that advertising effects. (a) Historical Sales Method Some insights into the effectiveness of past advertising may be obtained by measuring the relationship between the advertising expenditure and the total sales of the product.A multiple regression analysis of advertising expenditure and sales over severaltime periods may be calculated. It would show how the changes in advertising expenditure have corresponding changes in sales volume. This technique estimates the contribution that advertising has made to explaining in a co relational manner rather than a casual sales, the variation in sales over the time periods covered in the study (b) Experimental Control The other measure of advertising effectiveness is the method of experimental control where a casual relationship between advertising and sales is established. This method is quite expensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. 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 testmarketing.

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(i) Before-after with Control Group Design This classic design uses several testand control cities in this design two types of cities are selected. Cities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities. First of all, the normal sales level is calculated for both type of cities prior to advertising campaign, and then the advertising campaign is presented to the test cities and not the central cities. The effect of advertising campaign, can then, be measured by subtracting the amount of post campaign figure of sale from the pre campaign sale figures in test cities(ii) Multivariable Experimental Designs While the experimental design discussedabove yields a reasonably accurate estimate of the effects of the advertising on sales, it is not successful in explaining the success or failure of the campaign itself. Multivariable designs Produce these explanations and are, therefore used by some very large firm because of their diagnostic value.The power of thismultivariable factorial design is explained by G.H.Brown, former Fords Directorof Marketing Research. For any single medium, eight possible geographic areas have been exposed and eight have not been exposed. Thus, in this experimental model it is possible to evaluate how each individual medium behaves alone and in allpossible to evaluate how each individual medium behaves alone and in all possible combinations with other media. (2) Indirect Measures As it is very difficultto measure the direct effect of advertising on companys profits or sales, most firms rely heavily on indirect measures. These measures do not evaluate the effects of advertisements directing on sales or profits but all other factors such ascustomer awareness or attitude or customer recall of advertising message affectthe sales or profits or goals of the business indirectly. Despite the uncertaint

ies 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 (i) Exposure to Advertisement In order to be effective, the advertisement must gain exposure. The management is concerned about the number of target audiences who see or hear the organization message setin the advertisement. Without exposure, advertisement is bound to failure. Marketers or advertisers may obtain an idea of exposure generated by the medium by examining its circulation or 41


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audience data which reveal the number of copies of the magazine, newspaper or journal sold the number of persons passing the billboards or riding in transit facilities, or the number of persons living in the televiewing or radio listening area, and the number of persons switching on their T.V. and radio sets at variouspoints of time. This number can be estimated by interviewing the numbers of theaudience for different media. (ii) Attention or Recall of Advertising Message Content This is one of the widely used measures of advertising results. Under this measure, a recall of the message content among a specified group or groups orprospective customers is measured within 24 hours of the exposure of the advertisement. Attention value is the chief quality of the advertising copy the advertisements cannot be said to be effective unless they attract the attention of thetarget consumers. There are two methods for evaluating the attention getting value of the advertisements. One is pre-test and the other is post-test. In a pre-test evaluation, the consumers are asked to indicate the extent to which they recognise or recall the advertisement, they have already seen. This test is conducted in the laboratory setting. Here consumers read, hear or listen to the advertisement and then researchers ask question regarding the advertisement just to test the recall and then evaluate it. In post-test method, the consumers are askedquestions about the indication of recognition or recall after the advertisementhas been run. These measures assume that customers can recall or recognize whatthey have viewed or listened to. Various mechanical devices are being used in the western countries which provide indices of attention such as eye-camera etc. (iii) Brand Awareness The marketers who rely heavily on advertising often appraise its effectiveness by measuring the customers awareness about the particular pro

duct or brand. The assumption of this type of measure is that there is a directrelationship between the advertisements and the awareness. This type of measureis 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.

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(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 themessage across? The answers of these questions will provide sufficient insight into advertising decision making. (v) Attitude Change Since advertising is considered to be one way of influencing the state of the mind of the audience towardsa product, service or organisation, the results are very often measured in termsof attitudes among groups exposed to advertising communication. Several measures are used ranging from asking the questions about willingness to buy the likelihood of buying to the measurement of the extent to which specific attributes (such as modern or new) are associated with a product. (vi) Action One objective ofadvertisement may be assumed to be to stimulate action or behavior. The actionor intention to take an action may be measured on the intention to buy measuringinstrument. Under this type of measure, consumers are asked to respond why theyare 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 abovemeasures (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. 43


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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. Weatherconditions or the goodwill of the firm etc. The overwhelming success of the saleis 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 answersof 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. As indicated earlier, the advertisers are interested in know

ing 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 testmay be done either before an advertisement has been designed or executed afterit 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 messagehave an exclusive appeal that differentiates the product from that of the competitors? 45


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(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 measuringthe results to determine the level of expenditure that is most promising. Mostresearch focuses on the communication effect rather than sales effect because itis 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 Trial Satisfaction Purchases or repurchase Awareness builds a favorableor 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 thecommunication effects of advertising. Among these are:-

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(1) Exposure Conditions Should advertising be tested under realistic conditionsor 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 answerquestions 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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Compunction Effectiveness Vs Sales Effectiveness It is easier to assess the communication effect of advertising than the sales effect. Many firms try to measurethe effectiveness of advertising in terms of sales results but this practice isalways misleading. Since, the effect is the result of so many variables, a distinct effect of advertising on sales cannot be correctly measured, Although theremay be some exceptions. For example direct mail advertising can effectively bemeasured by the inquiries received. But in many situations the exact relationship between advertising activity and sales cannot be established satisfactorily. We can correctly assume that some sales will occur even though there is no advertising or little advertising or conversely there will be no increase in sales after the point of saturation is reached or it may be that sales will show a decreasing trend at this point in spite of large amount of expenditure on advertisingis 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 arepresumed 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 man

agers may decide on less expensive and less relevant measures. The big businesshouse, which has more access to research, may decide on the more relevant and expensive measures.

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Factors Affecting AdvertisingThe final external factor in the planning framework concerns environmental factor social, legal, and global. Law forbids deceptive advertising. One solution isto create brand advertising that is vague and contains little specific information. However, such an approach can result not only in ineffective advertising; byit can lessen the social value of advertising by reducing the amount for usefulinformation 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 twoconcepts therefore go hand in hand and are dependent on each other.

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IMPACT OF ADVERTISEMENTAdvertising has an important effect on a countrys economy, society, culture, andpolitical 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 enablesmanufacturers and others to sell their products in larger quantities. The increased volume of sales enables companies to produce individual units at lower costsand therefore, sell them at a lower price. Advertising thus benefits consumersby helping lower prices. Other economists, however, believe that advertising iswasteful. They argue that the cost of advertising adds to the cost of goods andthat most advertising simply encourages consumers to buy one brand rather than another. According to this view, advertising simply moves sales from one companyto another, rather than increasing sales overall and thereby benefiting the economy as a whole.

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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, adscontinued 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 stillemphasize a womans sexuality. The way advertising has depicted racial minoritieshas also been harmful. Prior to 1960, African Americans were usually shown in asubordinate 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 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 morefully 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 51


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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 moreexpensive, offer less variety, or even be subject to government control throughsubsidies. 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 themedia 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 toavoid offending a mass audience. This preference causes TV networks to emphasizethis type of programming. The result is that society may be denied the benefitsof being able to view challenging or highly original entertainment programs ornews 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. 52


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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, andmay 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 spendingplaced political advertising in the ranks of the countrys 30 leading advertisersthat year. Political advertising is a relatively new development in U.S. history. Advertising professionals did 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 runningfor 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 a

ddress the impact of television advertising on political campaigning. Because ofthe 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 53


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wealthy contributors and by making it more likely that only the wealthy will runfor office. Some reform proposals have called for free airtime, but televisionand 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 arebombarded with image advertising rather than being acquainted with the candidatespositions. 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 canaffect 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 worldeconomy, multinational corporations often use the same advertising to sell to consumers around the world. Some critics argue that advertising messages are thushelping to break down 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 campaignswidely popular, in some cases achieving the status of folklore or taking on newlife in another arena. For example, a popular ad campaign for a fastfood chainwith 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.

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RESEARCH METHODOLOGYResearch Design Data Source Research Instrument Sample design Sample size Samplelocation : Descriptive : Primary data : Secondary data : Questionnaire : Simplerandom design : 100 : Delhi : NCR Sample element : Students : House hold : Professional

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RESEARCH METHODOLOGY Chi-Square TestChi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis. For example, if,according to Mendel s laws, you expected 10 of 20 offspring from a cross to bemale and the actual observed number was 8 males, then you might want to know about the "goodness to fit" between the observed and expected. Were the deviations(differences between observed and expected) the result of chance, or were they due to other factors. How much deviation can occur before you, the investigator,must conclude that something other than chance is at work, causing the observedto differ from the expected. The chi-square test is always testing what scientists call the null hypothesis, which states that there is no significant difference between the expected and observed result The formula for calculating chi-square ( 2) is: 2= (o-e)2/e That is, hi-square is the sum of the squared differen e between observed (o) and the expe

ted (e) data (or the deviation, d), divided by the expe ted data in all possible ategories. Step-by-Step Pro edure for TestingYour Hypothesis and Cal

ulating Chi-Square 1. State the hypothesis being testedand the predi ted results. Gather the data by ondu ting the proper experiment (or, if working geneti

s problems, use the data provided in the problem). 2. Determine the expe ted numbers for ea h observational lass. Remember to use numbers, not per

entages. Chi-square should not be

al

ulated if the expe

ted value inany ategory is less than 5. 3. Cal ulate 2 using the formula. Complete all al ulations to three signifi

ant digits. Round off your answer to two signifi

ant digits. 4. Use the hi-square distribution table to determine signifi an e of thevalue. Determine degrees of freedom and lo

ate the value in the appropriate

ol

umn. Lo

ate the value

losest to your

al

ulated on that degrees of freedom df row. Move up the

olumn to determine the p value.

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5. State your on lusion in terms of your hypothesis. If the p value for the al

ulated is p > 0.05, a

ept your hypothesis. 'The deviation is small enough that han e alone a ounts for it. A p value of 0.6, for example, means that there is a 60% probability that any deviation from expe ted is due to han e only. Thisis within the range of a eptable deviation. If the p value for the al ulated

is p < 0.05, reje

t your hypothesis, and

on

lude that some fa

tor other than

han e is operating for the deviation to be so great. For example, a p value of 0.01 means that there is only a 1%

han

e that this deviation is due to

han

e alone. Therefore, other fa tors must be involved. The hi-square test will be usedto test for the "goodness to fit" between observed and expe

ted data from several laboratory investigations.

ANALYSIS OF DATA COLLECTIONIn order to present the report with a pragmati

approa

h along with the theoreti al aspe t some primary and se ondary data is olle ted so as to present our report with fa

ts and figures.

PRIMARY DATA:The primary data has been olle ted by preparing a questionnaire, whi h was ir ulated over hundred persons. They have been asked questions regarding the different kind of media affe ting their hoi es regarding the different produ ts. A spe

imen of the questionnaire is atta

hed.

SECONDARY DATA:

The se

ondary data is also of utmost importan

e. It helps in the in depth analysis of the organization. Various fa

ts and figures have been gathered through different websites & portals. A list of all those referral websites is mentioned later in the report in referen

es.

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SAMPLING UNITSampling Unit is the total number of samples differed in different lo

ality. Sl.No. 1. 2. 3. Classes Students Professionals Household Total No. of Classes 33 3

4 33 100

Data have been

olle

ted through the survey method while surveys have been

ondu ted in one ity: i) ii) Delhi NCR

The data olle ted was both from the primary and se ondary sour e. The primary data was

olle

ted through questionnaires and was

olle

ted personally. The se

ondary data was olle ted through books, magazines, and websites. All the area hadsegmented a

ording the population of this area. We have

onsidered 100 as sample size.

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CHI-SQUARE TEST

Aim- To find out is there a relationship between the o upation of the ustomerand mode of advertising media affe ting their per eption with regards to different produ ts. Following is the information olle ted from the primary sour e . Type of media O

upation of people Student Professional Household Total Outdoor media Print media Ele troni media

10 10 5 25

8 9 10 27

2 1 45 48

20 20 60 100

Step 1: H0: There is no signifi ant differen e (or no relationship) between thepeople o

upation and the mode of advertising media affe

ting their per

eption.HA: There is signifi ant differen e( or relationship) between the people o upation and the mode of advertising media affe

ting their per

eption. Step 2: Levelof signifi an e considered in this n lysis is 5% =0.05. Step3: C lcul tion for the expected frequency We use formul (Row tot l*column tot l)/Gr nd tot l E11=R1C1/N=(25*20)/100=5, E12=(R1C2)/N=(27*20)100=5.4 E13=(R1c3)/N=(48*20)/100=9.6 EE21=(R2C1)/N=(27*20)100=5.4 E22=(R2c2)/N=(48*20)/100=9.6 E23=(R2C3)/N=(25*20)/100=

5, E31=(R3C1)/N=(60*25)/100=15 E32=(R3C2)/N=(27*60)/100=16.2 E33=(R3C3)/N=(48*60)/100=28.8 Step 4: Test st tistic for testing H0 is: ^2=(0i-Ei)^2/Ei

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Observed frequency Oi 10 8 2 10 9 1 5 10 15

`Expected Frequency Ei 5 5.4 9.6 5 5.4 9.6 15 6 28.8

(Oi- Ei)^2 25 6.76 57.76 25 12.96 73.96 100 16 262.44

( Oi-Ei)^2/ Ei 5 1.25 6.01 5 2.4 7.70 6.66 2.66 9.1125 ^2 =45.79

Step 5: St tistic follows chi-squ re distribution. So (r=no. of rows c= no. columns) Degree of freedom df=(r-1)(c-1) = (3-1)(3-1) = 2*2= 4. T

bul

ted v

lue

t4 degree of freedom nd 0.05 level of signific nce. D(4,0.05)= 9.488 Step6: ^2 c

l > ^ t

b. The decision rule is to reject the null hypothesis if the c

lcul

tedv lue of the ^2 comes to be gre ter th n the t bul ted v lue of the ^2 nd to ccept it otherwise. In this c

se we reject null hypothesis. Thus

ccept the HA, Step:7 Conclusion: There is signific nt difference between the people occup tion

nd mode of medi

ffecting their perception reg

rding different products. HencePeople with different occup tion re ffected differently by different kinds ofmedi i..e Print medi ,electronic medi nd Outdoor medi

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Answers Still im ge Moving im ge

No. of respondents 28 72

Interpret tion:People re more ffected by dvertisement with moving im ge.

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3. For you dvertisement is source of :AnswersInform tion Entert inment No. of respondents 62 38

Interpret tion:More number of people consider dvertisement s source of inform tion r ther th n source of entert inment.

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4. Does entert ining dvertisement ffect your opinion bout the product?Answers Yes NoNo. of respondents

26 74

Interpret tion:Entert ining dvertisement does not ffect the opinion of customer bout the pro

duct

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5. Does inform tion provided in dvertisement ffects your opinion bout the product?Answers Yes No No. of respondents 87 13

Interpret tion:Inform

tion provided in the

dvertisement

ffect very much on the opinion of consumers bout the product.

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6. Does l ngu ge used in dvertisement ffects your opinion bout the product?Answers Yes No No. of respondents 63 37

Interpret tion:L ngu ge used in the dvertisement ffects lot on the opinion of consumers bout the product.

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7. Does presence of ny celebrity in the dvertisement ffects your opinion bout the product?Answers Yes No No. of respondents 69 31

Interpret tion:Presence of ny celebrity ffects on the opinion of consumers bout the product.

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8. Does intensity of the dvertisement ffects your opinion bout the product?Answers Yes No No. of respondents 52 48

Interpret tion:The effect of intensity is very powerful on the opinion of consumers bout the product.

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10. Do you think dvertisement helps in incre sing s les of ny product?Answers Yes No No. of respondents 87 13

Interpret tion:Advertisement helps very much in incre sing the s les of ny product.

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FINDINGS Advertisements with moving im

ge

re more effective th

n

dvertisement with still im ge. Inform tion provided in the dvertisement h s more influence on consumers perception bout the product.

L

ngu

ge used in the

dvertisement

lso pl

ys import

nt role in incre

sing effectiveness of n dvertisement. Intensity of dvertisement ffects the perceptionof consumers tow

rds the product

nd le

ds them for its purch

se.

Soci l issues included in dvertisement ffects the perception of high ge grouppeople. N tion l dvertisement h s more influence on consumers perception boutthe product inste

d of loc

l

dvertisement. Advertisement incre ses the s les of ny product.

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CONCLUSIONCHI-SQUARE reve

ls th

t

ll the determin

nts

re not intern

lly equ

l they

re signific ntly different from one nother. Simil rly, ll the p r meters re not intern lly equ l they re signific ntly different from one nother. In order to me sure the effectiveness of dvertising, which ppro ch (communic tion effectiveness or s

les effectiveness), is more suit

ble? Two f

ctors

re to be consideredin deciding the ppro ch. They re 1. Relev nce of dvertising objectives on the over

ll perform

nce objectives: Gener

lly

dvertising m

n

gers would like to know the role of dvertisements on the over ll perform nce of the business firm i.e., return on investment

nd on profit

bility. A s

le is

determining f

ctor of comp ny perform nce. 2. Difficulty nd cost of obt ining d t needed to ev lu te effectiveness: Gener

lly communic

tion me

sures

re e

sy to follow th

n s

leseffectiveness me sures. If the me sures of dvertising re more relev nt they will be difficult

nd costly. If it is less difficult

nd che

p the me

sures willnot be more relev nt. Therefore, the dvertising m n ger h s to m ke b l ncebetween these two

ppro

ches.

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SUGGESTIONS Advertisement should be m

de with keeping the determin

nts of effectiveness in mind. Advertisement should be ccording to the product nd its suit bility with different ge groups. To m ke dvertisement more effective ll the determin nts of effectiveness should be t ken c re of.

Investment in dvertisement should be m de with gre t c re of medi of dvertisement

nd type of

dvertisement. Advertisers should develop new nd more effective w ys of dvertisement.

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REFERENCE

Books 1. Moh n M, (1989), Advertising M n gement : concept nd c ses, T t Mc Gr whill, Indi . 2. Kotler Philip,(2000), M rketing M n gement, The millennium edition, Printice h ll, Indi . 3. K pferer J. , (2009) Str tegic Br nd M n gement ,Kog

n p

ge Indi

Pvt. Ltd. 4. Str

tegic Br

nd M

n

gement K

pferer 5. Gupt

S.L(2005), Advertising nd S les Promotion M n gement, Excel Books, New Delhi. Internet 1. http://books.google.com/books?id=t-yoHkKZ9ZsC&q=m

rketing&dq=m

rketing&cd=1 2. http://books.google.com/books?id=wAMs LJoykYC&dq=m rketing&cd=3

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ANNEXUREQuestionn

ireWe re doing rese rch project s p rt of our curriculum on A Study on Effect of v rious modes of Advertisement on Consumers. For this we require you to ple sefill this questionn ire.

N me: ................................. Sex: Age: . Below 20 b. 20 to 30 cve 40 Occup

tion:

. Student c. House hold [ ] [ ] b. Business cl

ss [ ] d. Service cl ss [ ] 1. From wher

33783488 Outdoor Advertizing in India

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