Kinjal's Project Report-Final Project!!

201
A Project Report On Direct Marketing With Reference to Shah Publicity In Partial Fulfillment Of The Requirement For The Award Of The Degree Of Bachelor Of Business Administration Submitted By Kinjal Shah S251 S.Y.B.B.A Section A Submitted To Mr. Zachariah Samuel Guide By Mr. Roopesh Jain Marketing Manager

Transcript of Kinjal's Project Report-Final Project!!

Page 1: Kinjal's Project Report-Final Project!!

A Project ReportOn

Direct MarketingWith Reference to Shah Publicity

In Partial Fulfillment Of The Requirement For The Award Of TheDegree Of

Bachelor Of Business Administration

Submitted ByKinjal Shah

S251

S.Y.B.B.ASection A

Submitted ToMr. Zachariah Samuel

Guide ByMr. Roopesh Jain

Marketing Manager

MetasAdventist College

AthwalinesSurat

Gujarat

Page 2: Kinjal's Project Report-Final Project!!

A Project ReportOn

Direct MarketingWith Reference to Shah Publicity

In Partial Fulfillment Of The Requirement For The Award Of TheDegree Of

Bachelor Of Business Administration

Submitted ByKinjal Shah

S251

S.Y.B.B.ASection A

Submitted ToMr. Zachariah Samuel

Guide ByMr. Roopesh Jain

Marketing Manager

MetasAdventist College

AthwalinesSurat

Gujarat

Page 3: Kinjal's Project Report-Final Project!!

Completion Letter From Shah Publicity

Page 4: Kinjal's Project Report-Final Project!!

PREFACE

The B.B.A. programme is well structured and integrated course of business studies. The main objective of practical training at B.B.A. level is to develop skills in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The B.B.A. programme provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposer to strategic thinking of management.

In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I came to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field.

Training is an integral part of B.B.A. and each and every student has to undergo the training for 1 month in a company and then prepare a project report on the same after the completion of training.

During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life.

In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that “Experience is the best teacher.”

Page 5: Kinjal's Project Report-Final Project!!

ACKNOWLEDGEMENT

Every person to get successful in his/her life needs someone who can give them

proper guidance to achieve their goals and help them to move on a right track towards

their goal. None other than our teachers does this job from several years. They are the

ones who taught us from the very beginning how to tackle difficult situation. I feel myself

lucky to have such helpful teachers; it is because of their help that I was able to do my

project work.

I have completed my project with the objective to "DIRECT MARKETING". I

have successfully completed my project with the help of guidance and encouragement of

many people.

First I would like to express my deep sense of gratitude to my college Seventh

Day Adventist, our president Mr. M.S. Jeremiah, Vice president Mr. Mohan Rao. I

would also like to thank my guide Mr. Zachariah Samuel for his guidance throughout

the project, his knowledge in marketing sector was a great help for me.

I am very thankful to Mr. Yashwant Shah. (Owner of Shah Publicity) to give me

a chance for project work in their own reputed organization and I am also thankful to Mr.

Roopesh Jain to give me valuable guidance and direction during the entire project report

work. I am also thankful to Miss Lata Singhal (supervisor) and all administrative and

non-administrative staff of Shah Publicity and to all those who helped me directly or

indirectly during entire project work.

I am thankful to my respondents for their cooperation & kind behavior to me as

without their willingness & support, my project would not have been completed and also

thank all of them for sparing their valuable time for giving response.

This training provided me lot of Experience. This will be helpful for my

future. This training is unforgettable for me and memorable event for my life.

However, I accept the sole responsibility for any possible error of our

mission and would be extremely grateful to the readers of this project report if they bring

such mistakes to my notice.

At last but not the least, I am also grateful to Almighty because, without

his blessings, I would not have been able to complete my project.

Page 6: Kinjal's Project Report-Final Project!!

EXECUTIVE SUMMARY

Over here I present summary of my project. My project is on Direct Marketing Company called Shah Publicity. And I have taken Direct Market with ref to Shah Publicity. As my project topic. As this project gives me a vital knowledge about the marketing strategies.

These projects on direct marketing have laid emphasis on:-1. Niche, specialty and value-added ways

2. As well as information on enterprise budgets and promotion/publicity.

3. A new section discusses implications of Internet marketing and e-commerce for various business.

In my research I have primary source of data because of direct contact with Customers so that I can get relevant data, and Primary data are freshly gathered for a specific purpose or a specific research Project. I also used secondary date because to know the condition of Shah Publicity last year. In my Project I have used probability sampling and in it I have used simple random sampling and cluster sampling (area sampling) with a sample size of 50.

Page 7: Kinjal's Project Report-Final Project!!

There are certain drawbacks which came to my knowledge during the research process are as follows: -

1. Some of the questions in the survey confused the respondent as a result it affected on the analysis.

2. Rates of Shah Publicity are very high.

So far as the suggestions are concerned I would say, that Shah Publicity needs to focus mainly on economical and moderate transport cost, better delivery and distributors & retailers interaction.

From the undertaken project I would like to conclude that customers are more focusing on innovative advertising and in order to sustain in the competitive market Shah Publicity needs to improve their channel of distribution.

Page 8: Kinjal's Project Report-Final Project!!

TABLE OF CONTENT

Sr. No. Contents Page No.

Page 9: Kinjal's Project Report-Final Project!!

ObjectiveOf

TheStudy

OBJECTIVE OF THE STUDY

1. Main objective of my project was to learn about Direct Marketing.

Page 10: Kinjal's Project Report-Final Project!!

2. It gives lots of knowledge and teaches how to conduct Direct Marketing in the Marketing.

3. It helped me to learn ore about Advertising Industry.

4. It helped me to learn different ways of advertisement and advertisement channels.

5. This study also taught me how to do Direct Marketing.

6. This study also taught me that which areas should be targeted for Direct Marketing.

7. It helped me to know how to convince the people targeted for Direct Marketing.

8. I also came to know that after doing Direct Marketing for our products, we need to get their feedback about their willingness or unwillingness to buy our products.

9. We can get their feedback by calling them up in few day of Direct Marketing or by visiting them another time.

Page 11: Kinjal's Project Report-Final Project!!

IndustryProfile

Industry Profile

Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services. Most commonly, the desired result is drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. Advertising messages are usually paid for by sponsors and viewed via various media; including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages.

Page 12: Kinjal's Project Report-Final Project!!

Commercial advertisers often seek to generate increased consumption of their products or services through "branding," which involves the repetition of an image or product name in an effort to associate certain qualities with the brand in the minds of consumers. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement.

Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. In 2010, spending on advertising was estimated at more than $300 billion in the United States and $500 billion worldwide

Internationally, the largest ("big four") advertising conglomerates are Interpublic, Omnicom, Publicis and WPP.

Contents

1 Definition 2 History

o 2.1 Public service advertising 3 Marketing mix 4 Advertising theory 5 Types of advertising

o 5.1 Digital advertising o 5.2 Physical advertising

6 Sales promotions 7 Media and advertising approaches 8 Current trends

o 8.1 Rise in new media o 8.2 Niche marketing o 8.3 Crowdsourcing o 8.4 Global advertising o 8.5 Foreign public messaging o 8.6 Diversification o 8.7 New technology o 8.8 Advertising education

9 Criticisms 10 Regulation

11 Advertising research

Definition

Page 13: Kinjal's Project Report-Final Project!!

1. The non-personal communication of information usually paid for & usually persuasive in nature, about products (goods & services) or ideas by identified sponsor through various media.(Arenes (1996) 2.Any paid form of non-personal communication about an organisation, product ,service, or idea from an identified sponsor.( Blech & Blech (1998) 3.Paid non -personal communication from an identified sponsor using mass media to persuade influence an audience. (Wells , burnett, & Moriaty (1998) 4. The element of the marketing communication mix that is non personal paid for an identified sponsor, & disseminated through mass channels of communication to promote the adoption of foods, services, person or ideas.( bearden, Ingram, & Laforge (1998) 5.An informative or persuasive message carried by a non personal medium & paid for by an identified sponsor whose organisation or product is identified in some way. (Zikmund & d'amico (1999) 6. Impersonal , one way communication about a product or organisation that is paid by marketer. ( Lamb, Hair & Mc. Daniel (2000)

History

Egyptians used papyrus to make sales messages and wall posters. Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and found advertising on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC.[2] History tells us that Out-of-home advertising and billboards are the oldest forms of advertising.

As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts for the convenience of the customers.

As education became an apparent need and reading, as well as printing, developed advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote books and newspapers, which became increasingly affordable with advances in the printing press; and medicines, which were increasingly sought after as disease ravaged Europe. However, false advertising and so-called "quack" advertisements became a problem, which ushered in the regulation of advertising content.

As the economy expanded during the 19th century, advertising grew alongside. In the United States, the success of this advertising format eventually led to the growth of mail-order advertising.

Page 14: Kinjal's Project Report-Final Project!!

An 1895 advertisement for a weight gain product.

At the turn of the century, there were few career choices for women in business; however, advertising was one of the few. Since women were responsible for most of the purchasing done in their household, advertisers and agencies recognized the value of women's insight during the creative process. In fact, the first American advertising to use a sexual sell was created by a woman – for a soap product. Although tame by today's standards, the advertisement featured a couple with the message "The skin you love to touch".

This practice was carried over to television in the late 1940s and early 1950s. A fierce battle was fought between those seeking to commercialise the radio and people who argued that the radio spectrum should be considered a part of the commons – to be used only non-commercially and for the public good. The United Kingdom pursued a public funding model for the BBC, originally a private company, the British Broadcasting Company, but incorporated as a public body by Royal Charter in 1927. In Canada, advocates like Graham Spry were likewise able to persuade the federal government to adopt a public funding model, creating the Canadian Broadcasting Corporation. However, in the United States, the capitalist model prevailed with the passage of the Communications Act of 1934 which created the Federal Communications Commission. However, the U.S. Congress did require commercial broadcasters to operate in the "public interest, convenience, and necessity". Public broadcasting now exists in the United States due to the 1967 Public Broadcasting Act which led to the Public Broadcasting Service and National Public Radio.

In the early 1950s, the DuMont Television Network began the modern practice of selling advertisement time to multiple sponsors. Previously, DuMont had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. This eventually became the standard for the commercial television industry in the United States. However, it was still a common practice to have single sponsor shows, such as The United States Steel Hour. In some instances the sponsors exercised great control over the content of the show—up to and

Page 15: Kinjal's Project Report-Final Project!!

including having one's advertising agency actually writing the show. The single sponsor model is much less prevalent now, a notable exception being the Hallmark Hall of Fame.

The 1960s saw advertising transform into a modern approach in which creativity was allowed to shine, producing unexpected messages that made advertisements more tempting to consumers' eyes. The Volkswagen ad campaign—featuring such headlines as "Think Small" and "Lemon" (which were used to describe the appearance of the car)—ushered in the era of modern advertising by promoting a "position" or "unique selling proposition" designed to associate each brand with a specific idea in the reader or viewer's mind. This period of American advertising is called the Creative Revolution and its archetype was William Bernbach who helped create the revolutionary Volkswagen ads among others. Some of the most creative and long-standing American advertising dates to this period.

The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a by-product or afterthought. As cable and satellite television became increasingly prevalent, specialty channels emerged, including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and ShopTV Canada.

Marketing through the Internet opened new frontiers for advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising.

Page 16: Kinjal's Project Report-Final Project!!

Advertisement for a live radio broadcast, sponsored by a milk company and published in the Los Angeles Times on May 6, 1930

The share of advertising spending relative to GDP has changed little across large changes in media. For example, in the US in 1925, the main advertising media were newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2.9 percent. By 1998, television and radio had become major advertising media. Nonetheless, advertising spending as a share of GDP was slightly lower—about 2.4 percent.

A recent advertising innovation is "guerrilla marketing", which involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message.Guerrilla advertising is becoming increasing more popular with a lot of companies. This type of advertising is unpredictable and innovative, which causes consumers to buy the product or idea. This reflects an increasing trend of interactive and "embedded" ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social network services such as Facebook.

Public service advertising

The advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non-commercial issues, such as HIV/AIDS, political ideology, energy conservation and deforestation.

Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences. "Advertising justifies its existence when used in the public interest—it is much too powerful a tool to use solely for commercial purposes." Attributed to Howard Gossage by David Ogilvy.

Public service advertising, non-commercial advertising, public interest advertising, cause marketing, and social marketing are different terms for (or aspects of) the use of sophisticated advertising and marketing communications techniques (generally associated with commercial enterprise) on behalf of non-commercial, public interest issues and initiatives.

In the United States, the granting of television and radio licenses by the FCC is contingent upon the station broadcasting a certain amount of public service advertising. To meet these requirements, many broadcast stations in America air the bulk of their required public service announcements during the late night or early morning when the smallest percentage of viewers are watching, leaving more day and prime time commercial slots available for high-paying advertisers.

Page 17: Kinjal's Project Report-Final Project!!

Public service advertising reached its height during World Wars I and II under the direction of more than one government. During WWII President Roosevelt commissioned the creation of The War Advertising Council (now known as the Ad Council) which is the nation's largest developer of PSA campaigns on behalf of government agencies and non-profit organizations, including the longest-running PSA campaign, Smokey Bear.

Marketing mix

The marketing mix has been the key concept to advertising. The marketing mix was suggested by professor E. Jerome McCarthy in the 1960s. The marketing mix consists of four basic elements called the four P’s Product is the first P representing the actual product. Price represents the process of determining the value of a product. Place represents the variables of getting the product to the consumer like distribution channels, market coverage and movement organization. The last P stands for Promotion which is the process of reaching the target market and convincing them to go out and buy the product.

Advertising theory

Hierarchy of effects model

It clarifies the objectives of an advertising campaign and for each individual advertisement. The model suggests that there are six steps a consumer or a business buyer moves through when making a purchase. The steps are:

1. Awareness2. Knowledge3. Liking4. Preference5. Conviction6. Purchase

Means-End Theory

Page 18: Kinjal's Project Report-Final Project!!

This approach suggests that an advertisement should contain a message or means that leads the consumer to a desired end state.

Leverage Points

It is designed to move the consumer from understanding a product's benefits to linking those benefits with personal values.

Verbal and Visual Image

Types of advertising

Paying people to hold signs is one of the oldest forms of advertising, as with this Human billboard pictured above

A bus with an advertisement for GAP in Singapore. Buses and other vehicles are popular mediums for advertisers.

Page 19: Kinjal's Project Report-Final Project!!

A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station

Virtually any medium can be used for advertising. Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes ("logo jets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

Digital advertising

Television advertising / Music in advertisingThe TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3 million (as of 2009). The majority of television commercials feature a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none exist in real-life. This technique is especially used in televised sporting events. Virtual product placement is also possible. Infomercials: An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" combining the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.

Radio advertising

Radio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the obvious

Page 20: Kinjal's Project Report-Final Project!!

limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage.

Online advertising

Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.

'''Product placement'''s

Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Space balls also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most obvious product placement; the whole film stops to show a Coca-Cola billboard.

Physical advertising

Press advertisingPress advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service. Another form of press advertising is

Page 21: Kinjal's Project Report-Final Project!!

the Display Ad, which is a larger ad (can include art) that typically run in an article section of a newspaper.Billboard advertising: Billboards are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums.

The RedEye newspaper advertised to its target market at North Avenue Beach with a sailboat billboard on Lake Michigan.Mobile billboard advertising

Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including: Target advertising, One-day, and long-term campaigns, Conventions, Sporting events, Store openings and similar promotional events, and Big advertisements from smaller companies.

In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters, eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.

Page 22: Kinjal's Project Report-Final Project!!

Coffee cup advertising

Coffee cup advertising is any advertisement placed upon a coffee cup that is distributed out of an office, café, or drive-through coffee shop. This form of advertising was first popularized in Australia, and has begun growing in popularity in the United States, India, and parts of the Middle East.

Street advertising

This type of advertising first came to prominence in the UK by Street Advertising Services to create outdoor advertising on street furniture and pavements. Working with products such as Reverse Graffiti and 3d pavement advertising, the media became an affordable and effective tool for getting brand messages out into public spaces.Celebrity branding

This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products, for example, when celebrities share their favourite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. The use of celebrities to endorse a brand can have its downsides, however. One mistake by a celebrity can be detrimental to the public relations of a brand. For example, following his performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to associate with him after he was photographed smoking marijuana.

Sales promotions

Sales promotions are another way to advertise. Sales promotions are double purposed because they are used to gather information about what type of customers you draw in and where they are, and to jumpstart sales. Sales promotions include things like contests and games, sweepstakes, product giveaways, samples coupons, loyalty programs, and discounts. The ultimate goal of sales promotions is to stimulate potential customers to action.

Media and advertising approaches

Increasingly, other media are overtaking many of the "traditional" media such as television, radio and newspaper because of a shift toward consumer's usage of the Internet for news and music as well as devices like digital video recorders (DVRs) such as TiVo.

Page 23: Kinjal's Project Report-Final Project!!

Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives.

Digital signage is poised to become a major mass media because of its ability to reach larger audiences for less money. Digital signage also offer the unique ability to see the target audience where they are reached by the medium. Technological advances have also made it possible to control the message on digital signage with much precision, enabling the messages to be relevant to the target audience at any given time and location which in turn, gets more response from the advertising. Digital signage is being successfully employed in supermarkets.[18] Another successful use of digital signage is in hospitality locations such as restaurants and malls.

E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "e-mail spam". Spam has been a problem for email users for many years.

Some companies have proposed placing messages or corporate logos on the side of booster rockets and the International Space Station. Controversy exists on the effectiveness of subliminal advertising (see mind control), and the pervasiveness of mass messages (see propaganda).

Unpaid advertising (also called "publicity advertising"), can provide good exposure at minimal cost. Personal recommendations ("bring a friend", "sell it"), spreading buzz, or achieving the feat of equating a brand with a common noun (in the United States, "Xerox" = "photocopier", "Kleenex" = tissue, "Vaseline" = petroleum jelly, "Hoover" = vacuum cleaner, "Nintendo" (often used by those exposed to many video games) = video games, and "Band-Aid" = adhesive bandage) — these can be seen as the pinnacle of any advertising campaign. However, some companies oppose the use of their brand name to label an object. Equating a brand with a common noun also risks turning that brand into a genericized trademark - turning it into a generic term which means that its legal protection as a trademark is lost.

As the mobile phone became a new mass media in 1998 when the first paid downloadable content appeared on mobile phones in Finland, it was only a matter of time until mobile advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile advertising had reached $2.2 billion and providers such as Admob delivered billions of mobile ads.

More advanced mobile ads include banner ads, coupons, Multimedia Messaging Service picture and video messages, advergames and various engagement marketing campaigns. A particular feature driving mobile ads is the 2D Barcode, which replaces the need to do any typing of web addresses, and uses the camera feature of modern phones to gain immediate access to web content. 83 percent of Japanese mobile phone users already are active users of 2D barcodes.

Page 24: Kinjal's Project Report-Final Project!!

A new form of advertising that is growing rapidly is social network advertising. It is online advertising with a focus on social networking sites. This is a relatively immature market, but it has shown a lot of promise as advertisers are able to take advantage of the demographic information the user has provided to the social networking site. Friendertising is a more precise advertising term in which people are able to direct advertisements toward others directly using social network service.

From time to time, The CW Television Network airs short programming breaks called "Content Wraps," to advertise one company's product during an entire commercial break. The CW pioneered "content wraps" and some products featured were Herbal Essences, Crest, Guitar Hero II, CoverGirl, and recently Toyota.

Recently, there appeared a new promotion concept, "ARvertising", advertising on Augmented Reality technology.

Current trends

Rise in new media

With the dawn of the Internet came many new advertising opportunities. Popup, Flash, banner, Popunder, advergaming, and email advertisements (the last often being a form of spam) are now commonplace. Particularly since the rise of "entertaining" advertising, some people may like an advertisement enough to wish to watch it later or show a friend. In general, the advertising community has not yet made this easy, although some have used the Internet to widely distribute their ads to anyone willing to see or hear them. In the last three quarters of 2009 mobile and internet advertising grew by 18.1% and 9.2% respectively. Older media advertising saw declines: −10.1% (TV), −11.7% (radio), −14.8% (magazines) and −18.7% (newspapers ).

Niche marketing

Another significant trend regarding future of advertising is the growing importance of the niche market using niche or targeted ads. Also brought about by the Internet and the theory of The Long Tail, advertisers will have an increasing ability to reach specific audiences. In the past, the most efficient way to deliver a message was to blanket the largest mass market audience possible. However, usage tracking, customer profiles and the growing popularity of niche content brought about by everything from blogs to social networking sites, provide advertisers with audiences that are smaller but much better defined, leading to ads that are more relevant to viewers and more effective for companies' marketing products. Among others, Comcast Spotlight is one such advertiser employing this method in their video on demand menus. These advertisements are targeted to a specific group and can be viewed by anyone wishing to find out more about

Page 25: Kinjal's Project Report-Final Project!!

a particular business or practice at any time, right from their home. This causes the viewer to become proactive and actually choose what advertisements they want to view.

Crowd sourcing

The concept of crowdsourcing has given way to the trend of user-generated advertisements. User-generated ads are created by consumers as opposed to an advertising agency or the company themselves, most often they are a result of brand sponsored advertising competitions. For the 2007 Super Bowl, the Frito-Lays division of PepsiCo held the Crash the Super Bowl contest, allowing consumers to create their own Doritos commercial. Chevrolet held a similar competition for their Tahoe line of SUVs. Due to the success of the Doritos user-generated ads in the 2007 Super Bowl, Frito-Lays relaunched the competition for the 2009 and 2010 Super Bowl. The resulting ads were among the most-watched and most-liked Super Bowl ads. In fact, the winning ad that aired in the 2009 Super Bowl was ranked by the USA Today Super Bowl Ad Meter as the top ad for the year while the winning ads that aired in the 2010 Super Bowl were found by Nielsen's BuzzMetrics to be the "most buzzed-about".

This trend has given rise to several online platforms that host user-generated advertising competitions on behalf of a company. Founded in 2007, Zooppa has launched ad competitions for brands such as Google, Nike, Hershey’s, General Mills, Microsoft, NBC Universal, Zinio, and Mini Cooper. Crowdsourced advertisements have gained popularity in part to its cost effective nature, high consumer engagement, and ability to generate word-of-mouth. However, it remains controversial, as the long-term impact on the advertising industry is still unclear.

Global advertising

Advertising has gone through five major stages of development: domestic, export, international, multi-national, and global. For global advertisers, there are four, potentially competing, business objectives that must be balanced when developing worldwide advertising: building a brand while speaking with one voice, developing economies of scale in the creative process, maximizing local effectiveness of ads, and increasing the company’s speed of implementation. Born from the evolutionary stages of global marketing are the three primary and fundamentally different approaches to the development of global advertising executions: exporting executions, producing local executions, and importing ideas that travel.

Advertising research is key to determining the success of an ad in any country or region. The ability to identify which elements and/or moments of an ad that contributes to its success is how economies of scale are maximized. Once one knows what works in an ad, that idea or ideas can be imported by any other market. Market research measures, such

Page 26: Kinjal's Project Report-Final Project!!

as Flow of Attention, Flow of Emotion and branding moments provide insight into what is working in an ad in any country or region because the measures are based on the visual, not verbal, elements of the ad.

Foreign public messaging

Foreign governments, particularly those that own marketable commercial products or services, often promote their interests and positions through the advertising of those goods because the target audience is not only largely unaware of the forum as vehicle for foreign messaging but also willing to receive the message while in a mental state of absorbing information from advertisements during television commercial breaks, while reading a periodical, or while passing by billboards in public spaces. A prime example of this messaging technique is advertising campaigns to promote international travel. While advertising foreign destinations and services may stem from the typical goal of increasing revenue by drawing more tourism, some travel campaigns carry the additional or alternative intended purpose of promoting good sentiments or improving existing ones among the target audience towards a given nation or region. It is common for advertising promoting foreign countries to be produced and distributed by the tourism ministries of those countries, so these ads often carry political statements and/or depictions of the foreign government's desired international public perception. Additionally, a wide range of foreign airlines and travel-related services which advertise separately from the destinations, themselves, are owned by their respective governments; examples include, though are not limited to, the Emirates airline (Dubai), Singapore Airlines (Singapore), Qatar Airways (Qatar), China Airlines (Taiwan/Republic of China), and Air China (People's Republic of China). By depicting their destinations, airlines, and other services in a favorable and pleasant light, countries market themselves to populations abroad in a manner that could mitigate prior public impressions.

Diversification

In the realm of advertising agencies, continued industry diversification has seen observers note that “big global clients don't need big global agencies any more”. This is reflected by the growth of non-traditional agencies in various global markets, such as Canadian business TAXI and SMART in Australia and has been referred to as "a revolution in the ad world".

New technology

The ability to record shows on digital video recorders (such as TiVo) allow users to record the programs for later viewing, enabling them to fast forward through commercials. Additionally, as more seasons of pre-recorded box sets are offered for sale of television programs; fewer people watch the shows on TV. However, the fact that these sets are sold, means the company will receive additional profits from the sales of

Page 27: Kinjal's Project Report-Final Project!!

these sets. To counter this effect, many advertisers have opted for product placement on TV shows like Survivor.

Advertising education

Advertising education has become widely popular with bachelor, master and doctorate degrees becoming available in the emphasis. A surge in advertising interest is typically attributed to the strong relationship advertising plays in cultural and technological changes, such as the advance of online social networking. A unique model for teaching advertising is the student-run advertising agency, where advertising students create campaigns for real companies. Organizations such as American Advertising Federation and AdU Network partner established companies with students to create these campaigns.

Criticisms

While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers. Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. In addition, advertising frequently uses psychological pressure (for example, appealing to feelings of inadequacy) on the intended consumer, which may be harmful

Regulation

In the US many communities believe that many forms of outdoor advertising blight the public realm. As long ago as the 1960s in the US there were attempts to ban billboard advertising in the open countryside.[34] Cities such as São Paulo have introduced an outright ban with London also having specific legislation to control unlawful displays.

There have been increasing efforts to protect the public interest by regulating the content and the influence of advertising. Some examples are: the ban on television tobacco advertising imposed in many countries, and the total ban of advertising to children under 12 imposed by the Swedish government in 1991. Though that regulation continues in effect for broadcasts originating within the country, it has been weakened by the European Court of Justice, which had found that Sweden was obliged to accept foreign programming, including those from neighboring countries or via satellite. Greece’s

Page 28: Kinjal's Project Report-Final Project!!

regulations are of a similar nature, “banning advertisements for children's toys between 7 am and 10 pm and a total ban on advertisement for war toys".

In Europe and elsewhere, there is a vigorous debate on whether (or how much) advertising to children should be regulated. This debate was exacerbated by a report released by the Kaiser Family Foundation in February 2004 which suggested fast food advertising that targets children was an important factor in the epidemic of childhood obesity in the United States.

In New Zealand, South Africa, Canada, and many European countries, the advertising industry operates a system of self-regulation. Advertisers, advertising agencies and the media agree on a code of advertising standards that they attempt to uphold. The general aim of such codes is to ensure that any advertising is 'legal, decent, honest and truthful'. Some self-regulatory organizations are funded by the industry, but remain independent, with the intent of upholding the standards or codes like the Advertising Standards Authority in the UK.

In the UK most forms of outdoor advertising such as the display of billboards is regulated by the UK Town and County Planning system. Currently the display of an advertisement without consent from the Planning Authority is a criminal offense liable to a fine of £2,500 per offence. All of the major outdoor billboard companies in the UK have convictions of this nature.

Many advertisers employ a wide-variety of linguistic devices to bypass regulatory laws (e.g. printing English words in bold and French translations in fine print to deal with the Article 120 of the 1994 Toubon Law limiting the use of English in French advertising). The advertisement of controversial products such as cigarettes and condoms are subject to government regulation in many countries. For instance, the tobacco industry is required by law in most countries to display warnings cautioning consumers about the health hazards of their products. Linguistic variation is often used by advertisers as a creative device to reduce the impact of such requirements.

Advertising research

Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. It entails numerous forms of research which employ different methodologies. Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns—pre-testing is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the in-market impact of the ad or campaign on the consumer. Continuous ad tracking and the Communicus System are competing examples of post-testing advertising research types

Page 29: Kinjal's Project Report-Final Project!!

HISTORY OF ADVERTISING IN INDIA - August 19th, 2009

There has been a long tradition of advertising in India since the first newspapers published in India in the 19th Century carried advertising. The first advertising agency was established in 1905, B. Datram and Company, followed by The India-Advertising Company in 1907, the Calcutta Advertising agency in 1909, S.H.Bensen in 1928, J. Walter Thompson Associates through its Indian associate, Hindustan Thompson Associates in 1929, Lintas (Lever international Advertising Services) in 1939 and McCann Erikson in 1956. Advertising expenditure in the 1950s was estimated at $US 300,000. Under the more socialist political environment of the 1960s and 1970s there was little incentive for companies to advertise because advertising was not tax deductible. In the 1970s there was a 58% growth in the number of registered agencies from 106 in 1969 to 168 in 1979, and this included a growth in Indian agencies. The first advertising appeared on state television in 1976.

With the opening of the economy in the 1980s there was a growth in the number of alliances with multinational agencies and an expansion in advertising though foreign network participation in agency ownership was limited. In 1987 Hindustan Thompson was affiliated to J. Walter Thompson. Lintas, the 2nd ranking agency, held only 4% of its subsidiary, as did Ogilvie and Mather. Saatchi and Saatchi/Compton had minority interests in Compton as did Lintas. A study done in 1984 of the largest companies in India found that the ratio of advertising expenditure to sales had risen from .64 in 1976, to .71 in 1980 to .74 in 1984. Foreign controlled corporations had the dominant share of total advertising expenditure, and 80% of these were in the consumer goods sectors. Advertising was very concentrated with the top 50 advertisers accounting for 80% of the advertising spending and the top 10 advertisers made up 40% of that figure, 32% of the total. The largest advertiser throughout the period was Hindustan Lever which was nearly 10% of the advertising budget of the corporate sector companies. Pharmaceutical companies were also significant advertisers at this time.

Present & Future of advertisement

Social Advertising Industry: Present and Future

Last Monday, members of the social advertising industry gathered in New York City at the first-of-its-kind Social Ad Summit. The summit brought together social advertising solutions providers, advertisers, agencies, applications developers, and venture capitalists. The coinciding news of the Lehman Brothers collapse certainly affected the mood and the degree of optimism I'm sure event producers had hoped to generate.

Page 30: Kinjal's Project Report-Final Project!!

Nevertheless, that the event attracted a healthy-sized crowd speaks to the growing interest in the social advertising industry. Here are some relevant highlights.

Media Buying on Social Networks

This panel, made up of agency media buyers, confessed that currently advertiser interest in social advertising is driven more by curiosity than urgency. One panelist remarked that the degree of familiarity with and possibly the personal use of social media by a brand's decision maker affects their interest in social advertising. "Beverage and entertainment brands look at being part of the social networking space like a retailer looks at belonging in a mall."

CMOs feel pressure to figure out social media, and particularly how to measure it, so the industry itself is scrambling to assist brands in doing so. Most panelists cautioned against thinking of social advertising as a direct-response play and instead to consider measurement in terms of engagement, awareness, and intelligence (data collection) and to remind advertisers that, just like when someone does a search for a brand name, a lot of work and dollars go into promoting the brand before someone ever searches for it. Attributing marketing success only to search is shortsighted.

When asked how to prepare and convince the advertiser to test social advertising, panelists advised sending case studies and asking a lot of questions to really understand the background and position of the company and if its offering is even right for social media.

Creative challenges originate from advertisers trying to repurpose existing creative, like television spots, and reuse it for social advertising. Social ads need to be engaging and creative in a whole different way, but a completely separate ad concept and campaign may be a tough sell to advertisers.

Social Ad Network Solutions' Perspective

A lively panel discussion by various social ad network solution providers certainly got everyone out of their post-lunch haze. Moderated by Allen Stern of CenterNetworks, representatives of Social Cash, SocialMedia, Offerpal, Lookery, and appssavvy debated several issues, like the life expectancy of certain social networks, pricing, measurement criteria, market growth, and through what kind of ad solution to best engage the consumer. All agreed that the space is too new to expect too much from it or to be able to accurately predict where it's going. Many felt, however, that by 2010 big-brand dollars will be spent here. Stern believes for dollars to shift to social advertising "there has to be clear metrics for the brands to point to. Brands stick with traditional online advertising

Page 31: Kinjal's Project Report-Final Project!!

because they can report to upper management on [known], reliable stats...But most social ads are using engagement as their metric, which is very difficult to quantify."

"The media and sponsorships are probably going to come from the ad agency, while custom strategies could potentially come directly from the brand," postures appsavvy's Chris Cunningham. "Right now, the big secret is that social ad impressions are pretty cheap. But they won't stay that way for long once the quality of targeting can be shown."

Of course, the thorny question of how quality targeting comes about meant the panelists doing a lot of dancing around the answer. Scott Rafer of Lookery admits that they get outside data and append it to their own; SocialMedia has built a "Friend Rank" solution to track friend interactions to help better understand those interactions in context. Everyone acknowledged that privacy concerns are huge.

Advertising Unsexy Brands

In an earlier panel, moderator Brian Morrissey of "AdWeek" asked, "Could social ads work for unsexy brands?" I loved this question and the follow through with the solutions providers, all of whom came up with examples of how to adapt social advertising for pedestrian brands. Seth Goldstein of Social Media believes, "Every brand is sexy to someone. There are people out there who are passionate about the most mundane of brands. Companies [need to] tap into the already excited base and leverage [this] advocacy to drive results. Brands shouldn't try to figure out how to advertise to people, but instead how to advertise between people."

Future prospects of industry

The future of advertising

More people are rejecting traditional sales messages, presenting the ad industry with big challenges

IT MAY have been Lord Leverhulme, the British soap pioneer, Frank Woolworth, America's first discount-retailer, or John Wanamaker, the father of the department store; all are said to have complained that they knew half of their advertising budget was wasted, but didn't know which half. As advertising starts to climb out of its recent slump, the answer to their problem is easier to find as the real effects of advertising become more measurable. But that is exposing another, potentially more horrible truth, for the $1

Page 32: Kinjal's Project Report-Final Project!!

trillion advertising and marketing industry: in some cases, it can be a lot more than half of the client's budget that is going down the drain.

The advertising industry is passing through one of the most disorienting periods in its history. This is due to a combination of long-term changes, such as the growing diversity of media, and the arrival of new technologies, notably the internet. Consumers have become better informed than ever before, with the result that some of the traditional methods of advertising and marketing simply no longer work.

Ad spending grew rapidly in the late 1990s, but in 2000—just as the technology bubble was about to burst—it soared by more than 8% in America, which represents about half the world market. The following year it plunged by 8%. Spending is up again, according to ZenithOptimedia, which has long tracked the industry. It forecasts that worldwide expenditure in 2004 on major media (newspapers, magazines, television, radio, cinema, outdoor and the internet) will grow by 4.7% to $343 billion. It will be helped by a collection of big events, including the European football championship, the Olympic Games and an election in America. Historically, when there is an upturn in advertising expenditure, it tends to rise faster than the wider economy. So, provided economic growth can be sustained, ad spending may continue to pick up.

How will the money be spent? There are plenty of alternatives to straightforward advertising, including a myriad of marketing and communications services, some of which are called “below-the-line” advertising. They range from public relations to direct mail, consumer promotions (such as coupons), in-store displays, business-to-business promotions (like paying a retailer for shelf-space), telemarketing, exhibitions, sponsoring events, product placements and more.

These have become such an inseparable part of the industry that big agencies now provide most of them. Although some are less than glamorous, marketing services have grown more quickly than advertising. Add in the cost of market research, and this part of the industry was worth some $750 billion worldwide last year, estimates WPP, one of the world's biggest advertising and marketing groups.

As ever, the debate in the industry centres on the best way to achieve results. Is it more cost-effective, for instance, to employ a PR agency to invite a journalist out to lunch and persuade him to write about a product than to pay for a display ad in that journalist's newspaper? Should you launch a new car with glossy magazine ads, or—as some carmakers now do—simply park demonstration models in shopping malls and motorway service stations? And is it better to buy a series of ads on a specialist cable-TV channel or splurge $2.2m on a single 30-second commercial during this year's Super Bowl?

Such decisions are ever harder to make. Although a Super Bowl ad is still cheaper than in 2000, in general network-TV pricing has risen faster than inflation—even though fewer people tune in. Changes in TV-viewing habits, however, are only part of a much wider shift in the way media is consumed, not least because it has become more fragmented and diverse.

Page 33: Kinjal's Project Report-Final Project!!

For a start, people are spending less time reading newspapers and magazines, but are going to the cinema more, listening to more radio and turning in ever-increasing numbers to a new medium, the internet (see chart 1).

After the technology bust it was easy to dismiss the internet. But the phenomenal success of many e-commerce firms, such as Amazon and eBay, shows that millions of people are becoming comfortable buying goods and services online. Many more are using the internet to research products, services and prices for purchases made offline. Some 70% of new-car buyers in America, for instance, use websites to determine which vehicle to buy—and often to obtain competing quotes from dealers.

Bombarded

People are tiring of ads in all their forms. A recent study by Yankelovich Partners, an American marketing-services consultancy, says that consumer resistance to the growing intrusiveness of marketing and advertising has been pushed to an all-time high. Its study found 65% of people now feel “constantly bombarded” by ad messages and that 59% feel that ads have very little relevance to them. Almost 70% said they would be interested in products or services that would help them avoid marketing pitches.

It has been calculated that the average American is subjected to some 3,000 advertising messages every day. If you add in everything from the badges on cars to slogans on sweatshirts, the ads in newspapers, on taxis, in subways and even playing on TVs in lifts,

Page 34: Kinjal's Project Report-Final Project!!

then some people could be exposed to more than that number just getting to the office. No wonder many consumers seem to be developing the knack of tuning-out adverts.

“Consumers are getting harder to influence as commercial clutter invades their lives,” says a recent report by Deutsche Bank. It examined the effectiveness of TV advertising on 23 new and mature brands of packaged goods and concluded that in some cases it was a waste of time. Although in the short-term TV advertising would lead to an incremental increase in volume sales in almost every case, there was only a positive cash return on that investment in 18% of cases. Over a longer term the picture improved, with 45% of cases showing a return on investment. Not surprisingly, new products did better than older ones. The study concluded that “increased levels of marketing spending were less important than having new items on the shelf and increasing distribution.”

The effectiveness of advertising is a hugely controversial area. Conventional wisdom in the industry is that sales may well increase for a certain period even after the advertising of a product ends. But there comes a point when sales start to decline and it then becomes extremely expensive to rebuild the brand.

This supports the idea of continuous advertising. But some people in the industry believe the conventional wisdom is no longer true. When America's big TV networks reached prime-time audiences of 90% of households, they were a powerful way to build a brand. Now that those audiences might be as low as one-third of households, other ways of promoting a brand have become more competitive. Moreover, many clients never really embraced continuous advertising: when times get tough, just as they did after 2000, one of the first things many companies cut is their ad budget.

Robert Shaw, a visiting professor at the Cranfield School of Management in Britain, runs a forum in which a number of big companies try to monitor the “marketing payback” from advertising. The return from traditional media was, he says, “never terribly good”. Generally under half of ads provide a return on their investment. And there can be various reasons why ads influence sales, other than their direct effect on consumers. For instance, if a producer announces a multi-million dollar ad-campaign, then retailers are often persuaded to increase deliveries. This can result in a “distribution effect” that leads to additional sales.

Some companies have profited from re-allocating their spending across different media, adds Mr Shaw. But it is a tricky business to determine what works best. For many companies, and especially the media-buyers who purchase space and slots for ads, greater media diversity and the arrival of the internet has made a difficult job much tougher.

Soap stars

Some big spenders have already made clear choices. With an annual budget of more than $4 billion, America's Procter & Gamble (P&G) is the biggest advertiser in the world. Ten years ago about 90% of its global ad spend was on TV. Now the figure is much smaller. Last year the company launched a non-prescription version of Prilosec, an anti-heartburn

Page 35: Kinjal's Project Report-Final Project!!

medicine. It was one of the most successful brand launches in the company's history, according to Jim Stengel, P&G's global marketing officer. But only about one-quarter of the marketing spend on Prilosec went to TV. The rest was spent on other forms of marketing, such as in-store promotions.

P&G, which helped to launch TV soap operas as a new way to market goods, is now looking once again for novel ways to reach consumers. Three years ago it set up an operation called Tremor to recruit an army of several hundred thousand American teenagers. It uses them to discuss ideas about new products and to help spread marketing messages. In return, the teenagers get to hear about and use new things before many of their peers.

Getting trendsetters to buy (or be given) new products in order to influence a broader market is hardly a new idea. So-called “early adopters” are a similar group, much sought-after by consumer-electronics companies in order to give their new products a good start. But there is a wider group which marketers sometimes call “prosumers”; short for proactive consumers. Some people in the industry believe this group is the most powerful of all.

Euro RSCG, a big international agency, is completing a nine-country study of prosumers, which it says can represent 20% or so of any particular group. They can be found everywhere, are at the vanguard of consumerism, and what they say to their friends and colleagues about brands and products tends to become mainstream six to 18 months later. They also vary by category, says Marc Lepere, Euro RSCG's chief marketing officer: a wine prosumer, for instance, will not necessarily be a prosumer of cars.

Such people often reject traditional ads and invariably use the internet to research what they are going to buy and how much they are going to pay for it. Half of prosumers distrust companies and products they cannot find on the internet. If they want to influence prosumers, says Mr Lepere, companies have to be extremely open about providing information.

Despite all of these complications, many in the advertising business remain sanguine. For Rupert Howell, chairman of the London arm of McCann Erickson, which is part of the giant Interpublic group, the industry's latest downturn was the third he has experienced. As it did from the others, he says, the industry is emerging a little wiser. But, he insists, “The underlying principles haven't changed.” Even the arrival of new media, like the internet, does not spell the demise of the old. Indeed, as he points out, TV never killed radio, which in turn never killed newspapers. They did pose huge creative challenges, but that's OK, he maintains: “The advertising industry is relentlessly inventive; that's what we do.”

Major players of the industriesIn the process of advertising, there are specific players who deliver different functions, the entire combination of which constitutes the entire intricate mechanism of advertising. These five players are:

Page 36: Kinjal's Project Report-Final Project!!

AdvertiserThe advertising agencyThe mediaThe vendorThe target audience

The advertiser is basically the company whose product or service is going to be promoted through the incorporation of advertising. In the eventual realm of affairs, the impact of the final advertisement is going to leverage him the most as its brand whose future depends upon the nature of the advertising.

While the advertiser will get affected the most (positively or negatively), it's the advertising agency, which plays the greatest role in generating the impact of the advertisement. In other words, the advertising agency is verily responsible for the magnitude of effectiveness of the advertisement, the outcome of which will make or break the brand.

As for the media or the medium that will be chosen to deliver the advertisement, these different media that include electronic, print and interactive media, which constitute the channels of communication that will be employed to enhance the reach factor for the brand. The better and more compatible the media (channel of communication) is, the greater the outcomes of advertising.

Vendors are not directly related to any of the above-mentioned stakeholders. They have an indirect yet significant relationship with the advertising procedure. Consisting of players like freelancers, consultants and self-employed professionals, the vendors actually provide aegis to the advertiser in helping him and the advertising agency to achieve the optimum quality of advertising that will not only be substantial but would also exude adequate charm.

Last but definitely not the least; it is the target audience that requires the utmost mention. They are the final deciders, the ultimate stakeholders whose consent would be the eventual determinant in shaping the present and future of the advertised brand.

Back Lit Bus Shelter

Page 37: Kinjal's Project Report-Final Project!!

Back Lit Bus Shelter

Product Description :

We are involved in manufacturing back lit bus shelters with back-lighting, which is used to make all the important messages properly visible to consumers. These back lits are one of the catchy medium of marketing the products. These are palced in high potential places to attract more and more target audience. We are specialized to manufacture back lits as per clients requirements.

Back Lit Hoardings

Page 38: Kinjal's Project Report-Final Project!!

Back Lit Hoardings

Product Description:

Best used to show all the brands with an appealing way, these hoardings are made to promote the products. These hoardings are placed in markets, where the possibility of potential customers are high like shopping complexes and malls. Now a days, these back lit hordings are the best and resonable way to showcase companies and their products.

Building Wrap

Page 39: Kinjal's Project Report-Final Project!!

Building Wrap

Product Description:

This is just like an online skyscraper, but the medium is offline. We manufacture building wraps of different sizes, that depends on the choice of the clients. This is also called building graphics, tall wraps etc. This is a new option of marketing the products and companies. Now a days most of the retail houses are using this type of banners to show their company names.

Display Hoardings

Page 40: Kinjal's Project Report-Final Project!!

Display Hoardings

Product Description:

We make gigantic hoardings which grab maximum attention of the customers due to their larger than life effect, attractive design and creative theme.

One Way Vision

Page 41: Kinjal's Project Report-Final Project!!

One Way Vision

Product Description:

We are specialize in best possible way of promoting and marketing the brands in the market. One of the medium is One Way vision; we use these types of banners in various turning points and bus and taxi stops. They are capable to get your attention, and are enough to increase the curiosity regarding the brand.

The dawn of Indian Advertising marked its beginning when hawkers called out their

wares right from the days when cities and markets first began. It was then that the

signages, the trademarks, the press ads and the likes evolved.

Concrete advertising history began with classified advertising. Ads started appearing for

the first time in print in Hickey’s Bengal Gazette which was India’s first newspaper.

Studios mark the beginning of advertising created in India as opposed to being imported

from England. Studios were set up for bold type, ornate fonts, fancier, larger ads.

Newspaper studios trained the first generation of visualizers and illustrators

Page 42: Kinjal's Project Report-Final Project!!

Major advertisers during that time were retailers like Spencer’s, Army & Navy and White

away and Laidlaw. Retailers’ catalogues that were used as marketing promotions

provided early example. Patent medicines: The first brand as we know them today was a

category of advertisers. Horlicks becomes the first ‘malted milk’ to be patented in1883.

B Dattaram and Co. claims to be the oldest existing Indian agency in Mumbai which was

started in 1902. Later, Indian ad agencies were slowly established and they started

entering foreign owned ad agencies. Ogilvy and Mater and Hindustan Thompson

Associate agencies were formed in the early 1920s. In 1939, Lever’s advertising

department launched Dalda – the first major example of a brand and a marketing

campaign specifically developed for India. In the 1950s, various advertising associations

were set up to safeguard the interests of various advertisers in the industry. In 1967, the

first commercial was aired on Vividh Bharati and later in 1978; the first television

commercial was seen. Various companies now started advertising on television and

sponsoring various shows including Humlog and Yeh Jo Hai Zindagi.

In 1986, Mudra Communications created India’s first folk-history TV serial Buniyaad

which was aired on Doordarshan; it became the first of the mega soaps in the country.

Later in 1991, First India-targetted satellite channel, Zee TV started its broadcast. 1995

saw a great boom in media boom with the growth of cable and satellite and increase of

titles in the print medium. This decade also saw the growth of public relations and events

and other new promotions that various companies and ad agencies introduced.

Advertising specific websites were born, one of them being agencyfaqs now known as

afaqs.

Page 43: Kinjal's Project Report-Final Project!!

Company profile

Company profile:-

Page 44: Kinjal's Project Report-Final Project!!

Products

Shah Publicity offers best outdoor advertising services with creative artwork and designs that catches the immediate attention of the audience. Our hoardings, banner, etc., long lasted due to their high quality materials and not to mention, that our ads leave a lasting impression as well.

Company profile of SHAH PUBLICITYSince 1973, Shah Publicity has built a loyal patronage by providing our clients with quality, reliable products and efficient, friendly customer service. Industry resources allow Shah Publicity to obtain superior products and materials at the lowest prices, while always maintaining the highest quality. This ongoing commitment to maintaining solid client relationships is what allows Shah Publicity to be the most trusted name in the industry. We guarantee 100 percent client satisfaction for all products we manufacture.Design

We have employed a team of designers with nearly 40 years of combined experience in

the graphic design field. We have further enhanced their artistic and production skills

with the latest illustration, photo-editing, graphic and design software available today.

Our designers use talent and technology to turn even the simplest concepts into creative

images, including photo-quality signs and decals.

Screen PrintingShah publicity has the knowledge and expertise to provide our clients with the most cost-

effective screen printing solutions available. Shah publicity uses state-of-the-art screen

printing presses which can produce signs up to 41” x 144”in size.

We pride ourselves in manufacturing our clients’ designs on time and within budget,

while always ensuring quality and accuracy. This is possible because of our ability to

print on a variety of substrates including aluminum, steel, vinyl, coroplast, polystyrene,

polycarbonate and paper, using both UV and baked enamel inks. We stand behind our

screen printed products by offering a five-year guarantee against fading, chipping,

peeling or flaking.

Digital PrintingBy purchasing the latest innovation in printing technology we are now able to offer you superior inkjet printing that has virtually limitless options. Shah publicity can create photo-quality digital images up to 5’ x 8’ in size, and 1.5” in thickness with

Page 45: Kinjal's Project Report-Final Project!!

superior outdoor durability. This printer is able to produce high-resolution images on various mediums, and can even produce 3-D and lenticular special effects.

Custom FabricationLet us transform even the simplest of ideas into innovative and well-crafted products that fit the advertising and signage needs of your business. Our design and production teams use the latest manufacturing technology to provide customized services such as roll-forming, embossing, die-cutting and other fabrication processes.TechnologyShah publicity is continually updating our production systems and equipment to offer our clients superior products and materials as technology improves. Equipment such as punch presses, extrusion machines, vinyl-cutting software and custom die-cutting machinery allows us to produce any standard or custom order in the most efficient and precise way possible, while always maintaining customer satisfaction.

FacilitiesIn August 2001 our facility was expanded and updated to include 140,000 square feet of production space. This expansion allowed all components of our business to perform more efficiently at one location; ensuring greater quality control and faster turnaround times for our clients.

In the 1973, ‘Shah Publicity’ founded and established by Mr. Yashwant C. Shah. With the installation of a small hoarding admeasuring just 12’ x 18’ at Varachha, Shah Publicity growing up as the leading ‘Outdoor Advertising Company’.

MILESTONE

 

In 1973 Establishment of Company by Mr. Yashvantbhai Shah.

 

 

 

The biggest HOARDING in the city installed by Shah Publicity for the second time.

 

 

 In 1996 Shah publicity get sole

 

Page 46: Kinjal's Project Report-Final Project!!

advertising rights of Sardar bridge in Surat, where it place Gujarat’s First backlit Kiosks.

 

 

In 1997 First led display hoarding was installed in Surat having size of 20‘x10’.

 

 

 

In 1999 First ever Gantry was installed on Sardar bridge. After that 25 Gantries are installed subsequence Surat and South Gujarat.

 

 

 

In 2000, In new millennium shah publicity is entered in Indoor media of vinyl, flex, backlit flex etc.

 

 

 

In 2003 First time “Trivision” was introduce in South Gujarat having size of 20’x10’.

 

 

 

In 2004 Beautiful island having miniature of aircraft on Athwagate circle.

 

  In 2004 Beautiful

 

Page 47: Kinjal's Project Report-Final Project!!

 

island having miniature of aircraft on Athwagate circle.

 

  

                   

In 2005 Shah publicity achieve 1000 hoardings and 1000 kiosks across South Gujarat. Today it is not only South Gujarat’s no. 1 out of home advertising company, but also it provides more services and access to modern technology than anyone else in business. SHAH PUBLICITY offer full range of services aimed at reaching the specific demographic targets of the clients, and are in a position to provide hoardings anywhere in South Gujarat as per the customers requirements.

SERVICES

We offer a variety of services that represent the very best in OUT DOOR ADVERTISING. Our quality control standards are high. We select / offer only the highest caliber source for OUT DOOR ADVERTISING. Our goal is always to deliver quality services. Customer satisfaction is of paramount importance.

Below is the list our services :

Page 48: Kinjal's Project Report-Final Project!!

G A N T R I E SUNIQUE GIGANTIC GANTRY OF 100’ X 15’ AT HAZIRA G.I.D.C.TWO GANTRIES BEAUTIFYING THE SARDAR BRIDGE - “PRIDE OF SURAT”MORE THEN 15 GANTRIES AT VARIOUS LOCATION IN SURAT CITY.WELCOME GANTRIES AT BARDOLI, VYARA, SACHIN & MANY MORE AT PARLE POINT, ATHWA GATE AND RING ROAD.

H O A R D I N G S1000 HOARDINGS ACROSS SOUTH GUJARATSIZES VARYING FROM 10' X 10'  TO 170' X 20'OVER 300 ILLUMINATED  HOARDINGS INCLUDING. 

Page 49: Kinjal's Project Report-Final Project!!

K I O S K SONLY LIT KIOSKS ON BRIDGE IN GUJARAT130 BACK LIT KIOSKS ON SARDAR BRIDGE450 HEAD HAMMERING KIOSKS IN SURAT CITY & BARDOLI350 KIOSKS COVER HAZIRA IND. BELTOVER 1500 KIOSK IN VARIOUS GARDENS OF SURAT CITY.

G A R D E N  K I O S K SNEWLY INTRODUCED SERVICE TO DISPLAY ADVERTISEMENT IN THE GARDENS. 

Page 50: Kinjal's Project Report-Final Project!!

T R I V I S I O NFIRST TRIVISION OF 20' x 10' SIZED WAS INTRODUCED IN GUJARAT. TRIVISION HAS BEEN INSTALLED AT ATHWA GATE, SURAT.TOW MORE TRIVISION OF 10' x 10' SIZED  HAS BEEN INSTALLED AT SARDAR BRIEDGE, SURAT. 

OTHER OUTDOOR MEDIAS VINYL NEON SIGNSSINAGESWALL PAINTINGS ETC. 

PRODUCTS

Back Lit Bus Shelter

Page 51: Kinjal's Project Report-Final Project!!

We are involved in manufacturing back lit bus shelters with back-lighting, which is used to make all the important messages properly visible to consumers. These back lits are one of the catchy medium of marketing the products. These are palced in high potential places to attract more and more target audience. We are specialized to manufacture back lits as per clients requirements.

Back Lit Hoardings

Best used to show all the brands with a appealing way, These hoardings are made to promote the products. These hoardings are placed in markets, where the possibility of potential customers are high like shopping complexes and malls. Now a days, these back lit hordings are the best and resonable way to showcase companies and their products. 

Building Wrap

Page 52: Kinjal's Project Report-Final Project!!

This is just like an online skyscraper, but the medium is offline. We manufacture building wraps of different sizes, that depends on the choice of the clients. This is also called building graphics, tall wraps etc. This is a new option of marketing the products and companies. Now a days most of the retail houses are using this type of banners to show their company names.

   

Display Hoardings

We make gigantic hoardings which grab maximum attention of the customers due to their larger than life effect, attractive design and creative theme. Some of the highlights of our hoarding services are: • 1000 hoardings across South Gujarat • Sizes varying from 10' x 10' to 170' x 20' • Over 300 illuminated hoardings

Display Hoardings on Bridge Pillars

Page 53: Kinjal's Project Report-Final Project!!

We also provide services of hoardings placement under bridges and fly overs. We manufacture these banners with the measured size of the bridges. These are the best suitable advertisements of all the companies. Now a days, most of the companies from small to big, are trying the means of advertisements.

   

Display Hoardings on Unipoles

Decorated with different graphics and colors, these are available in varied sizes and can be made as per client requirements. We provide manufacturing facility to installation facility. This is one of the medium of promotion of companies and their brands.

 

Gantries

Page 54: Kinjal's Project Report-Final Project!!

We place huge gantries on various spots of advertising importance. We have done following gantry projects: • Unique gigantic gantry of 100’ x 15’ at Hazira G.I.D.C. • Two gantries beautifying the Sardar bridge - “pride of Surat” • More than 15 gantries at various locations in Surat city. • Welcome gantries at Bardoli, Vyara, Sachin & many more at Parle Point, Athwa Gate and Ring Road.

 

Garden Kiosks

Garden kiosks is a newly evolved form of outdoor advertising and we are a pioneer service provider for garden kiosks in Gujarat. It is really effective as it grabs the attention of the customers when they are in relaxed mood and at comfort in the peaceful surroundings of a garden. We have introduced this service of display advertisement in various famous gardens of Surat city. 

Kiosks

Page 55: Kinjal's Project Report-Final Project!!

We make effective kiosks which are creative as well as grab attention of the audience. It

runs as a series of small hoardings and evokes curiosity in the consumer at first and later

kiosks promote the brand. The features and highlights of our kiosks service are: • Only lit

kiosks on bridge in Gujarat • 130 back lit kiosks on Sardar bridge • 450 head hammering

kiosks in Surat city & Bardoli • 350 kiosks cover Hazira industrial belt • Over 1500 kiosk

in various gardens of Surat city.

  

One Way Vision

We are specialize in best possible way of promoting and marketing the brands in the market. One of the medium is One Way vision, we use these types of banners in various turning points and bus and taxi stops. They are capable to get your attention, and are enough to increase the curiosity regarding the brand.

Trivision

Page 56: Kinjal's Project Report-Final Project!!

We offer another innovative outdoor advertising option in the form of trivisions which display 3-messages in the space of just one. Our sign has three sides for the vision. • First trivision of 20' x 10' sized was introduced in Gujarat. Trivision has been installed at Athwa gate, Surat. • Two more trivision of 10' x 10' sized has been installed at Sardar bridge, Surat.  

Page 57: Kinjal's Project Report-Final Project!!

Direct Marketin

g

Page 58: Kinjal's Project Report-Final Project!!

Direct Marketing

Introduction

Direct marketing is a sometimes controversial sales method by which advertisers approach potential customers directly with products or services. The most common forms of direct marketing are telephone sales, solicited or unsolicited emails, catalogs, leaflets, brochures and coupons. Successful direct marketing also involves compiling and maintaining a large database of personal information about potential customers and clients. These databases are often sold or shared with other direct marketing companies.

For many companies or service providers with a specific market, the traditional forms of advertising (radio, newspapers, television, etc.) may not be the best use of their promotional budgets. For example, a company which sells a hair loss prevention product would have to find a radio station whose format appealed to older male listeners who might be experiencing this problem. There would be no guarantee that this group would be listening to that particular station at the exact time the company's ads were broadcast. Money spent on a radio spot (or television commercial or newspaper ad) may or may not reach the type of consumer who would be interested in a hair restoring product.

Direct marketing is a form of advertising that reaches its audience without using traditional formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising.

Direct Advertising is a sub-discipline and type of marketing. There are two main

definitional characteristics which distinguish it from other types of marketing. The first is

that it sends its message directly to consumers, without the use of intervening commercial

communication media. The second characteristic is the core principle of

successful Advertising driving a specific "call to action." This aspect of direct marketing

involves an emphasis on trackable, measurable, positive responses from consumers

(known simply as "response" in the industry) regardless of medium.

Page 59: Kinjal's Project Report-Final Project!!

If the advertisement asks the prospect to take a specific action, for instance call a phone

number or visit a Web site, then the effort is considered to be direct response advertising.

Direct marketing is predominantly used by small to medium-size enterprises with limited

advertising budgets that do not have a well-recognized brand message. A well-executed

direct advertising campaign can offer a positive return on investment as the message is

not hidden with overcomplicated branding. Instead, direct advertising is straight to the

point; offers a product, service, or event; and explains how to get the offered product,

service, or event.

Contents

1 History 2 Benefits and drawbacks 3 Channels

o 3.1   Direct mail

o 3.2   Telemarketing

o 3.3   Email Marketing

o 3.4   Door-to-Door Leaflet Marketing

o 3.5   Broadcast faxing

o 3.6   Voicemail Marketing

o 3.7   Couponing

o 3.8   Direct-response television marketing

o 3.9   Direct selling

o 3.10   Popularity of Direct Advertising

History

Mail order pioneer Aaron Montgomery Ward knew that by using the technique of selling

product directly to the consumer at appealing prices could, if executed effectively and

efficiently, revolutionize the market industry and therefore be used as an innovative

model for marketing products and creating customer loyalty. The term "direct marketing"

was coined long after Montgomery Ward`s time.

In 1967 Lester Wunderman identified, named, and defined "direct marketing".

Wunderman — considered to be the father of contemporary direct marketing — is behind

the creation of the toll-free 1-800 number and numerous loyalty marketing programs

Page 60: Kinjal's Project Report-Final Project!!

including the Columbia Record Club, the magazine subscription card, and the American

Express Customer Rewards program. The term junk mail, referring to unsolicited

commercial ads delivered via post office or directly deposited in consumers' mail boxes,

can be traced back to 1954. The term spam, meaning "unsolicited commercial e-mail,"

can be traced back to March 31, 1993, although in its first few months it merely referred

to inadvertently posting a message so many times on UseNet that the repetitions

effectively drowned out the normal flow of conversation.

In 1872, Aaron Montgomery Ward produced the first mail-order catalogue for

his Montgomery Ward mail order business. By buying goods and then reselling them

directly to customers, Ward was consequently removing the middlemen at the general

store and, to the benefit of the customer, drastically lowering the prices. The Direct Mail

Advertising Association, predecessor of the present-day Direct Marketing Association,

was first established in 1917. Third class bulk mail postage rates were established in

1928.

Benefits and drawbacks

Direct marketing is attractive to many marketers, because in many cases its positive

effect (but not negative results) can be measured directly. For example, if a marketer

sends out 1,000 solicitations by mail, and 100 respond to the promotion, the marketer can

say with confidence that campaign led directly to 10% direct responses. The number of

recipients who are offended by junk mail/spam, however, is not easily measured. By

contrast, measurement of other media must often be indirect, since there is no direct

response from a consumer. Measurement of results, a fundamental element in successful

direct marketing, is explored in greater detail elsewhere in this article.

The Internet has made it easier for marketing managers to measure the results of a

campaign. This is often achieved by using a specific Web site landing page directly

relating to the promotional material, a call to action will ask the consumer to visit the

landing page, and the effectiveness of the campaign can be measured by taking the

number of promotional messages distributed (e.g., 1,000) and dividing it by the number

of responses (people visiting the unique Web site page).

Another way to measure the results is to compare the projected sales for a given term

with the actual sales after a direct advertising campaign.

Page 61: Kinjal's Project Report-Final Project!!

While many marketers recognize the financial benefits of increasing targeted awareness,

some direct marketing efforts using particular media have been criticized for generating

unwanted solicitations, not due to the method of communication but because of poorly

compiled demographic databases, advertisers do not wish to waste money on

communicating with consumers not interested in their products. For example, direct mail

that is irrelevant to the recipient is considered "junk mail," and unwanted e-mail

messages are considered "spam." Some consumers are demanding an end to direct

marketing for privacy and environmental reasons, which direct marketers are able to do

to some extent by using "opt-out" lists, variable printing, and more-targeted mailing lists.

In response to consumer demand and increasing business pressure to increase the

effectiveness of reaching the right consumer with direct marketing, companies specialize

in targeted direct advertising to great effect, reducing advertising budget waste and

increasing the effectiveness of delivering a marketing message with

better geodemography information, delivering the advertising message to only the

consumers interested in the product, service, or event on offer.

Channels

Direct mail:-

The most common form of direct marketing is direct mail, sometimes called junk mail, used by advertisers who send paper mail to all postal customers in an area or to all customers on a list.

Any low-budget medium that can be used to deliver a communication to a customer can

be employed in direct marketing. Probably the most commonly used medium for direct

marketing is mail, in which marketing communications are sent to customers using the

postal service. The term direct mail is used in the direct marketing industry to refer to

communication deliveries by the Post Office, which may also be referred to as "junk

mail" or "admail" and may involve bulk mail.

Direct mail includes advertising circulars, catalogs, free trial CDs, pre-approved credit

card applications, and other unsolicited merchandising invitations delivered by mail or to

homes and businesses, or delivered to consumers' mailboxes by delivery services other

than the Post Office. Bulk mailings are a particularly popular method of promotion for

businesses operating in the financial services, home computer, and travel and tourism

industries.

Page 62: Kinjal's Project Report-Final Project!!

In many developed countries, direct mail represents such a significant amount of the total

volume of mail that special rate classes have been established. In the United

States and United Kingdom, for example, there are bulk mail rates that enable marketers

to send mail at rates that are substantially lower than regular first-class rates. In order to

qualify for these rates, marketers must format and sort the mail in particular ways –

which reduces the handling (and therefore costs) required by the postal service.

Advertisers often refine direct mail practices into targeted mailing, in which mail is sent

out following database analysis to select recipients considered most likely to respond

positively. For example a person who has demonstrated an interest in golf may receive

direct mail for golf related products or perhaps for goods and services that are appropriate

for golfers. This use of database analysis is a type of database marketing. The United

States Postal Service calls this form of mail "advertising mail"

Direct Mail Marketing includes: -

As one of the oldest forms of advertising, direct mail marketing is a low cost means of advertising that requires a relatively low return in order to be considered successful. Many different businesses make use of direct mail marketing. These include supermarkets that mail out circulars featuring items that are on sale for a limited amount of time.

Business to business (B2B) direct mail is a particularly lucrative segment of the market; marketers can target their messages to precisely those recipients that are likely to become customers. In the end, direct mail allows companies to isolate their marketing dollars to high-probability prospects and avoid wasting money on those that are likely to be uninterested.

Telemarketing

Another common form of direct marketing is telemarketing, in which marketers contact

consumers by phone. The unpopularity of call telemarketing (in which the consumer does

not expect or invite the sales call) has led some US states and the US federal government

to create "no-call lists" and legislation including heavy fines. This process may be

outsourced to specialist call centre.

In the US, a national do-not-call list went into effect on October 1, 2003. Under the law,

it is illegal for telemarketers to call anyone who has registered themselves on the list.

After the list had operated for one year, over 62 million people had signed up. The

Page 63: Kinjal's Project Report-Final Project!!

telemarketing industry opposed the creation of the list, but most telemarketers have

complied with the law and refrained from calling people who are on the list.

Canada has passed legislation to create a similar Do Not Call List. In other countries it is

voluntary, such as the New Zealand Name Removal Service.

Email Marketing

Email Marketing is a third type of direct marketing. A major concern is spam. As a result

of the proliferation of mass spamming, ISPs and email service providers have developed

increasingly effective E-Mail Filtering programs. These filters can interfere with the

delivery of email marketing campaigns, even if the person has subscribed to receive

them, as legitimate email marketing can possess the same hallmarks as spam. There are a

range of e-mail service providers that provide services for legitimate opt-in emailers to

avoid being classified as spam.

Door-to-Door Leaflet Marketing

Leaflet distribution services are used extensively by the fast food industries, and much

other business focussing on a local catchment. Business to consumer business model,

similar to direct mail marketing, this method is targeted purely by area, and costs a

fraction of the amount of a mailshot due to not having to purchase stamps, envelopes or

having to buy address lists and the names of home occupants.

Broadcast faxing

A fourth type of direct marketing, broadcast faxing, is now less common than the other

forms. This is partly due to laws in the United States and elsewhere which make it illegal.

Voicemail Marketing

A fifth type of direct marketing has emerged out of the market prevalence of personal

voice mailboxes, and business voicemail systems. Due to the ubiquity of email

marketing, and the expense of direct mail and telemarketing, voicemail marketing

presented a cost effective means by which to reach people directly, by voice.

Page 64: Kinjal's Project Report-Final Project!!

Abuse of consumer marketing applications of voicemail marketing resulted in an

abundance of "voice-spam", and prompted many jurisdictions to pass laws regulating

consumer voicemail marketing.

More recently, businesses have utilized guided voicemail (an application where pre-

recorded voicemails are guided by live callers) to accomplish personalized business-to-

business marketing formerly reserved for telemarketing. Because guided voicemail is

used to contact only businesses, it is exempt from Do Not Call regulations in place for

other forms of voicemail marketing.

Another variation is voicemail courier (an application where pre-recorded voice messages

are couriered into voicemail by live callers) to accomplish personalized voicemail

marketing. Voicemail courier is used for both business-to-business marketing and also

business-to-consumer applications.

Couponing

Couponing is used in print media to elicit a response from the reader. An example is a

coupon which the reader cuts out and presents to a super-store check-out counter to avail

of a discount. Coupons in newspapers and magazines cannot be considered direct

marketing, since the marketer incurs the cost of supporting a third-party medium (the

newspaper or magazine); direct marketing aims to circumvent that balance, paring the

costs down to solely delivering their unsolicited sales message to the consumer, without

supporting the newspaper that the consumer seeks and welcomes.

Direct-response television marketing

Direct marketing on TV (commonly referred to as DRTV) has two basic forms: long

form (usually half-hour or hour-long segments that explain a product in detail and are

commonly referred to as infomercials) and short form, which refers to typical 30-second

or 60-second commercials that ask viewers for an immediate response (typically to call a

phone number on screen or go to a Web site).

TV-response marketing—i.e. infomercials—can be considered a form of direct

marketing, since responses are in the form of calls to telephone numbers given on-air.

This both allows marketers to reasonably conclude that the calls are due to a particular

Page 65: Kinjal's Project Report-Final Project!!

campaign, and allows the marketers to obtain customers' phone numbers as targets for

telemarketing. Under the Federal Do-Not-Call List rules in the US, if the caller buys

anything, the marketer would be exempt from Do-Not-Call List restrictions for a period

of time due to having a prior business relationship with the caller. Firms such

as QVC, Thane Direct, and Interwood Marketing Group then cross-sell and up-sell to

these respondents.

One of the most famous DRTV commercials was for Ginsu Knives by Ginsu Products,

Inc. of RI. Several aspects of ad, such as its use of adding items to the offer and the

guarantee of satisfaction were much copied and came to be considered part of the formula

for success with short-form direct-response TV ads (DRTV)

Direct selling

Direct selling is the sale of products by face-to-face contact with the customer, either by

having salespeople approach potential customers in person, or through indirect means

such as Tupperware parties.

Popularity of Direct Advertising

A report produced by the Direct Marketing Association found that 57% of the campaigns

studied were employing integrated strategies. Of those, almost half (47%) launched with

a direct mail campaign, typically followed by e-mail and then telemarketing.

Artificial intelligence marketing (AIM)

Artificial intelligence marketing (AIM) is a form of direct marketing leveraging database

marketing techniques as well as AI concept and model such as machine

learning and Bayesian Network. The main difference resides in the reasoning part which

suggests it is performed by computer and algorithm instead of human.

Behavioral targeting

Artificial intelligence marketing provides a set of tools and techniques that

enable behavioral targeting.

Page 66: Kinjal's Project Report-Final Project!!

Collect, reason, act

Artificial intelligence marketing principle is based on the perception-reasoning-action

cycle you find in cognitive science. In marketing context this cycle is adapted to form

the collect, reason and act cycle.

Collect

This term relates to all activities which aims at capturing customer or prospect data.

Whether taken online or offline these data are then saved into customer or prospect

databases.

Reason

This is the part where data is transformed into information and

eventually intelligence or insight. This is the section where artificial intelligence

and machine learning in particular have a key role to play.

Act

With the intelligence gathered from the reason step above you can then act. In marketing

context act would be some sort of communications that would attempt to influence a

prospect or customer purchase decision using incentive driven message

Again artificial intelligence has a role to play in this stage as well. Ultimately in

an unsupervised model the machine would take the decision and act accordingly to the

information it receives at the collect stage.

Machine Learning

Machine learning is concerned with the design and development of algorithms and

techniques that allow computers to "learn".

As defined above machine learning is one of the techniques that can be employed to

enable more effective behavioral targeting.

Concerns

"Many online users & advocacy groups are concerned about privacy issues around doing

this type of targeting. This is an area that the behavioral targeting industry is trying to

Page 67: Kinjal's Project Report-Final Project!!

minimize through education, advocacy & product constraints to keep all information non-

personally identifiable or to use opt-in and permission from end-users (permission

marketing)."

Direct-response Marketing

Direct-response marketing is a form of marketing designed to solicit a direct response

which is specific and quantifiable. The delivery of the response is direct between the

viewer and the advertiser, that is, the customer responds to the marketer directly. This is

in contrast to direct marketing in which the marketer contacts the potential customer

directly.

In direct marketing (such as telemarketing), there is no intermediary broadcast media

involved. In direct-response marketing, marketers use broadcast media to get customers

to contact them directly. It is direct-response marketing because the communications

from the customer to the marketer are direct, this differentiates it from simple direct

marketing in which the communications from the marketer to the customer are direct, but

do not allow for instant feedback.

Like direct marketing, direct-response marketing seeks to elicit action. It is inherently accountable since results can be tracked and measured. Furthermore, direct-response campaigns perform best if the underlying strategies and tactics are highly competitive.

Contents

1   Characteristics

2   Media

3   Principles & Techniques

Characteristics

Direct-response advertising is characterized by four primary elements:

Page 68: Kinjal's Project Report-Final Project!!

An offer

Sufficient information for the consumer to make a decision whether to act

An explicit "call to action"

Means of response (typically multiple options such as a toll free number, web

page, and email)

Media

One common form of direct-response marketing today is the infomercial. Due to

affordable TV air time slots (e.g. late night), the infomercial had the potential to be

successful for a comparatively modest up-front investment. Companies such as Greytv,

Icon Media Direct, Script to Screen, Hawthorne Direct, Common Sense Direct, American

Telecast Products, Guthy-Renker, R2C Group-aka Respond2 Cmedia, and International

Shopping Network specialize in infomercials. Infomercials and the production companies

are honored every year at the ERA Annual Awards at the ERA D2C Convention.

Infomercials are also known as direct-response TV commercials. Short-form direct-

response commercials have time lengths ranging from 30 seconds to 2 minutes. Long

form infomercials are 30 minutes long. Infomercials try to achieve a direct response via

television presentations. Viewers respond via telephone or Internet, credit card in hand.

Noted infomercial personalities include Anthony Robbins, Cher, Chuck Norris, George

Foreman (with the George Foreman Grill), fitness guru Jack Lalanne,

inventor/salesman Ron Popeil, Anthony Sullivan, Billy Mays, Jim Ballas and Vince

Offer.

An offshoot of the infomercial is the home shopping industry. In this medium, a home

shopping host will showcase a product directly to the viewer, and encourage them to

purchase the item. Noted pioneers in this industry include the first home shopping

host, Bob Circosta; Bud Paxson and Roy Speer, founders of the first home shopping

channel HSN; and Joseph Segel who founded America's most successful home shopping

channel QVC.

Other media, such as magazines, newspapers, radio, and e-mail can be used to elicit the

response, but they tend to achieve lower response rates than television.

Page 69: Kinjal's Project Report-Final Project!!

Mail order describes a form of direct-response marketing in which customers respond by

mailing a completed order form to the marketer. Mail order is slow and response rates are

low. It has been eclipsed by toll-free telephone numbers and the Internet.

While certain types of media, as mentioned above, have been commonly used in direct-

response campaigns, direct-response marketing, as such, is media-neutral, provided the

campaign includes the four main elements of direct response. Furthermore, direct-

response marketing is organization-neutral, which is to say that it is practiced by

organizations of many types and sizes, regardless of industry.

Principles & Techniques

Direct-response ads like infomercials can be contrasted with normal television

commercials because traditional commercials normally do not solicit a direct immediate

response from the viewer, but instead try to brand their product in the market place.

Improving the appeal and uniqueness of an offer is a first step for improving response.

An offer must be targeted such that its appeal is relevant to the wants or needs of the

audience, so the choice of media or list carries similar importance as the perceived value

of the offer. In case of an unsuccessful DRTV campaign, it is easy to adjust parameters

such as price point or sales pitches to improve sales. It is assumed that only one in every

ten infomercial actually makes money for the DRTV company.

There are many other best practices and techniques used to achieve results such as the use

of urgency, clear and compelling copy, graphics and design which aim to reinforce the

message. Lately, the viral potential of funny, hilarious or upbeat infomercials uploaded to

YouTube for example has proven to be an important contributor to infomercial success.

Apt individuals re-dubbing or ridiculing known infomercial hosts amplify the reach of

this alternative (deliberate or involuntary) marketing channel and help to spread the word

of the product, service or brand.

Database Marketing

Database marketing is a form of direct marketing using databases of customers or

potential customers to generate personalized communications in order to promote a

Page 70: Kinjal's Project Report-Final Project!!

product or service for marketing purposes. The method of communication can be any

addressable medium, as in direct marketing.

The distinction between direct and database marketing stems primarily from the attention

paid to the analysis of data. Database marketing emphasizes the use of statistical

techniques to develop models of customer behavior, which are then used to select

customers for communications. As a consequence, database marketers also tend to be

heavy users of data warehouses, because having a greater amount of data about customers

increases the likelihood that a more accurate model can be built.

There are two main types of marketing databases, 1) Consumer databases, and 2)

business databases. Consumer databases are primarily geared towards companies that sell

to consumers, often abbreviated as B2C or BtoC. Business marketing databases are often

much more advanced in the information that they can provide. This is mainly because

business databases aren't restricted by the same privacy laws as consumer databases.

The "database" is usually name, address, and transaction history details from internal

sales or delivery systems, or a bought-in compiled "list" from another organization,

which has captured that information from its customers. Typical sources of compiled lists

are charity donation forms, application forms for any free product or contest, product

warranty cards, subscription forms, and credit application forms.

The communications generated by database marketing may be described as junk

mail or spam, if it is unwanted by the addressee. Direct and database marketing

organizations, on the other hand, argue that a targeted letter or e-mail to a customer, who

wants to be contacted about offerings that may interest the customer, benefits both the

customer and the marketer.

Some countries and some organizations insist that individuals are able to prevent entry to

or delete their name and address details from database marketing lists.

Contents

1   Background

2   Growth and evolution of database marketing

3   Sources of data

o 3.1   Consumer data

o 3.2   Business data

Page 71: Kinjal's Project Report-Final Project!!

4   Analytics and modeling

5   Laws and regulations

6   Advances in database marketing

7   Challenges and limitation of database marketing

Background

Database marketing emerged in the 1980s as a new, improved form of direct marketing.

During the period traditional "list broking" was under pressure to modernise, because it

was offline and tape-based, and because lists tended to hold limited data. At the same

time, with new technologies enabling customer responses to be recorded, direct

response marketing was in the ascendancy, with the aim of opening up a two-way

communication, or dialogue, with customers.

Robert D. "Bob" and Kate Kestnbaum were trailblazing pioneers of the new direct

marketing, who were credited with developing new metrics including customer lifetime

value, and applying financial modelling and econometrics to marketing strategies. They

founded Kestnbaum & Co, a consulting firm in 1967, and this was the training ground for

many of database marketing's leading thinkers, including Robert Blattberg, Rick

Courtheaux and Robert Shaw. Bob Kestnbaum was inducted into the DMA Hall of Fame

in October 2002.

Kestnbaum collaborated with Shaw in the 1980s on several landmark online marketing

database developments - for BT (20 million customers), BA (10 million) and Barclays

(13 million). Shaw incorporated new features into the Kestnbaum approach,

including telephone and field sales channel automation, contact strategy optimisation,

campaign management and co-ordination, marketing resource management, marketing

accountability and incorporated into CRM and MRM packages in the 1990s and later.

The earliest recorded definition of Database Marketing was in 1988 in the book of the

same name (Shaw and Stone 1988 Database Marketing):

"Database Marketing is an interactive approach to marketing, which uses the

individually addressable marketing media and channels (such as mail, telephone

and the sales force): to extend help to a company's target audience; to stimulate

their demand; and to stay close to them by recording and keeping an electronic

Page 72: Kinjal's Project Report-Final Project!!

database memory of the customer, prospect and all commercial contacts, to help

improve all future contacts and to ensure more realistic of all marketing."

Growth and evolution of database marketing

The growth of database marketing is driven by a number of environmental issues.

Fletcher, Wheeler and Wright (1991)  classified these issues into four main

categories: (1) changing role of direct marketing; (2) changing cost structures; (3)

changing technology; and (4) changing market conditions.

DRIVER-1: THE CHANGING ROLE OF DIRECT MARKETING

The move to relationship marketing for competitive advantage.

The decline in the effectiveness of traditional media.

The overcrowding and myopia of existing sales channels.

DRIVER-2: CHANGING COST STRUCTURES

The decline in electronic processing costs.

The increase in marketing costs.

DRIVER-3: CHANGING TECHNOLOGY

The advent of new methods of shopping and paying.

The development of economical methods for differentiating customer

communication.

DRIVER-4: CHANGING ECONOMIC CONDITIONS

The desire to measure the impact of marketing efforts.

The fragmentation of consumer and business markets.

Shaw and Stone (1988) noted that companies go through evolutionary phases in

the developing their database marketing systems. They identify the four phases of

database development as:

Page 73: Kinjal's Project Report-Final Project!!

1. mystery lists;

2. buyer databases;

3. coordinated customer communication; and

4. integrated marketing.

Sources of data

Although organizations of any size can employ database marketing, it is particularly

well-suited to companies with large numbers of customers. This is because a large

population provides greater opportunity to find segments of customers or prospects

that can be communicated with in a customized manner. In smaller (and more

homogeneous) databases, it will be difficult to justify on economic terms the

investment required to differentiate messages. As a result, database marketing has

flourished in sectors, such as financial services, telecommunications, and retail, all

of which have the ability to generate significant amounts transaction data for

millions of customers.

Database marketing applications can be divided logically between those marketing

programs that reach existing customers and those that are aimed at prospective

customers.

Consumer data

In general, database marketers seek to have as much data available about

customers and prospects as possible.

For marketing to existing customers, more sophisticated marketers often build

elaborate databases of customer information. These may include a variety of data,

including name and address, history of shopping and purchases, demographics, and

the history of past communications to and from customers. For larger companies

with millions of customers, such data warehouses can often be multiple terabytes in

size.

Marketing to prospects relies extensively on third-party sources of data. In most

developed countries, there are a number of providers of such data. Such data is

usually restricted to name, address, and telephone, along with demographics, some

supplied by consumers, and others inferred by the data compiler. Companies may

Page 74: Kinjal's Project Report-Final Project!!

also acquire prospect data directly through the use of sweepstakes, contests, on-line

registrations, and other lead generation activities.

Business data

For many business-to-business (B2B) company marketers, the number of

customers and prospects will be smaller than that of comparable business-to-

consumer (B2C) companies. Also, their relationships with customers will often rely

on intermediaries, such as salespeople, agents, and dealers, and the number of

transactions per customer may be small. As a result, business-to-business marketers

may not have as much data at their disposal as business-to-consumer marketer are

accustomed.

One other complication is that B2B marketers in targeting teams or "accounts" and

not individuals may produce many contacts from a single organization. Determining

which contact to communicate with through direct marketing may be difficult. On

the other hand it is the database for business-to-business marketers which often

includes data on the business activity about the respective client.

These data become critical to segment markets or define target audiences, e.g.

purchases of software license renewals by telecom companies could help identify

which technologist is in charge of software installations vs. software procurement,

etc. Customers in Business-to-Business environments often tend to be loyal since

they need after-sales-service for their products and appreciate information on

product upgrades and service offerings. This loyalty can be tracked by a database.

Sources of customer data often come from the sales force employed by the company

and from the service engineers. Increasingly, online interactions with customers are

providing B2B marketers with a lower cost source of customer information.

For prospect data, businesses can purchase data from compilers of business data, as

well as gather information from their direct sales efforts, on-line sites, and specialty

publications.

Analytics and modeling

Companies with large databases of customer information risk being "data rich and

information poor." As a result, a considerable amount of attention is paid to the

analysis of data. For instance, companies often segment their customers based on the

analysis of differences in behavior, needs, or attitudes of their customers. A common

method of behavioral segmentation is RFM, in which customers are placed into

Page 75: Kinjal's Project Report-Final Project!!

subsegments based on the recency, frequency, and monetary value of past purchases.

Van den Poel (2003) gives an overview of the predictive performance of a large

class of variables typically used in database-marketing modeling.

They may also develop predictive models, which forecast the propensity of

customers to behave in certain ways. For instance, marketers may build a model that

rank orders customers on their likelihood to respond to a promotion. Commonly

employed statistical techniques for such models include logistic

regression and neural networks.

Laws and regulations

As database marketing has grown, it has come under increased scrutiny from privacy

advocates and government regulators. For instance, the European Commission has

established a set of data protection rules that determine what uses can be made of

customer data and how consumers can influence what data are retained. In the United

States, there are a variety of state and federal laws, including the Fair Credit Reporting

Act, or FCRA, (which regulates the gathering and use of credit data), the Health

Insurance Portability and Accountability Act(HIPAA) (which regulates the gathering and

use of consumer health data), and various programs that enable consumers to suppress

their telephones numbers from telemarketing.

Advances in database marketing

While the idea of storing customer data in electronic formats to use them for

database-marketing purposes has been around for decades, the computer systems

available today make it possible to gain a comprehensive history of client behavior

on-screen while the business is transacting with each individual, producing thus real-

time business intelligence for the company. This ability enables what is called one-

to-one marketing or personalization.

Today's Customer Relationship Management (CRM) systems use the stored data not

only for direct marketing purposes but to manage the complete relationship with

individual customer contacts and to develop more

customized product and service offerings. However, a combination of CRM, content

management and business intelligence tools are making delivery

of personalized information a reality.

Page 76: Kinjal's Project Report-Final Project!!

Marketers trained in the use of these tools are able to carry out customer nurturing,

which is a tactic that attempts to communicate with each individual in an

organization at the right time, using the right information to meet that client's need

to progress through the process of identifying a problem, learning options available

to resolve it, selecting the right solution, and making the purchasing decision.

Because of the complexities of B2B marketing and the intricacies of corporate

operations, the demands placed on any marketing organization to formulate the

business process by which such a sophisticated series of procedures may be brought

into existence are significant. It is often for this reason that large marketing

organizations engage the use of an expert in marketing process strategy and

information technology (IT), or a marketing IT process strategist. Although more

technical in nature than often marketers require, a system integrator (SI) can also

play an equivalent role to the marketing IT process strategist, particularly at the time

that new technology tools need to be configured and rolled out.

New advances in cloud computing and marketing's penchant for both outsourcing

services to third-party agencies and avoiding involvement in the creation of complex

technological tools has provided a fertile soil for Software as a Service (SaaS)

providers to centralize the marketing database under a hosting service model that

incorporates functions from CRM, content management and business intelligence

under one offering to automate the marketing.

Challenges and limitation of database marketing

While real-time business intelligence is a reality for select companies, it remains

elusive to many as it is dependent on these premises: the percentage of the business that

is online, and the degree of level of sophistication of the software. Technology companies

like Google, Dell, and Apple, are most positioned to capitalize on this. For other

companies, more traditional methods still apply, either to maintain communication with

an existing customer base (retention) or building, acquiring or renting new databases

(acquisition), with the latter being an established primary driver for growth. A major

challenge for databases is the reality of obsolescence - a subset of this is the lag time

between when data was acquired and when the database is used. This can be addressed by

online and offline means including traditional methods. An alternative approach is real-

time proximity marketing for acquisition purposes.

Page 77: Kinjal's Project Report-Final Project!!

Advertising Mail

Advertising mail, also known as direct mail, junk mail, or admail, is the delivery of

advertising material to recipients of postal mail. The delivery of advertising mail forms a

large and growing service for many postal services, and direct-mail marketing forms a

significant portion of the direct marketing industry. Some organizations attempt to help

people opt out of receiving advertising mail, in many cases motivated by a concern over

its negative environmental impact.

Advertising mail includes advertising circulars, catalogs, CDs, “pre-approved” credit card

applications, and other commercial merchandising materials delivered to both homes and

businesses. It may be addressed to pre-selected individuals, or unaddressed and delivered

on a neighbourhood-by-neighbourhood basis.

Contents

1   Postal services

2   Direct mail marketing

o 2.1   Political usage

o 2.2   Business-to-Business mailings (B2B)

3   Opting out

4   Environmental effect

Postal services

Page 78: Kinjal's Project Report-Final Project!!

1928 direct mail advertising letter offering mail delivery of fish and seafood

Postal systems have enacted lower rates for buyers of bulk mail permits. In order to

qualify for these rates, marketers must format and sort the mail in specific ways – which

reduces the handling required by the postal service.

Income from advertising mail represents a significant and growing portion of some postal

services' budgets, and it is a service actively marketed by them. In Canada, addressed and

unaddressed advertising mail accounted for 20% of Canada Post's revenue in 2005, and

the share is increasing. Postal services employ the terms advertising mail, admail,

and direct mail, while avoiding and objecting to the pejorative term junk mail.

In many developed countries, advertising mail represents a significant and growing

amount of the total volume of mail. In the United States, "Standard mail: advertising"

comprised 29% of all mail in 1980 and 43% in 2003.

Direct mail marketing

Direct mail is a common form of direct marketing, and may be employed by for-

profit businesses, charities and other non-profits, political campaigns, and other

organizations. Advertisers often refine direct mail practices into targeted mailing, in

which mail is sent out following database analysis to select recipients considered most

Page 79: Kinjal's Project Report-Final Project!!

likely to respond positively. For example a person who has demonstrated an interest in

golf may receive direct mail for golf related products or perhaps for goods and services

that are appropriate for golfers. This use of database analysis is a type of database

marketing. Alternatively, unaddressed direct mail may be sent on a neighbourhood-by-

neighbourhood basis. Whether at the individual or neighbourhood level, direct mail

marketing allows recipients to be targeted, attempting to match the demographic profile

of the recipients to one most closely matching that of likely customers. Individually

targeted direct mail may be tailored based on previous transactions and gathered data. For

example, all male recipients of an offer may receive a personalized package with a man’s

picture on the cover, while all female recipients receive a picture of a woman.

Political usage

Political campaigns often use direct mail, such as these examples from Barack Obama's

2008 presidential campaign. Multiple mailings of the same item are common.

Political campaigns make frequent use of direct mail, both to gain votes from the

electorate as a whole, and to target certain groups of voters thought to be open to a

candidate's message and to appeal for campaign funds.

Certain organizations and individuals have become known for their prowess in direct

mail, including in the U.S., the Free Congress Foundation in the 1970s, Response

Dynamics, Inc. in the 1980s, the National Congressional Club, and Richard

Viguerie. With the advent of the Internet in political campaigns, direct mail became just

one of many campaign management tools, but still played a significant role.

Page 80: Kinjal's Project Report-Final Project!!

Business-to-Business mailings (B2B)

When targeted to other businesses rather than individuals, direct mail is known as

a business to business mailing. Traditionally, this worked in one of two ways: as a direct

sale, therefore precluding the use of a salesperson or a retail store, or as a method of

generating leads for a salesforce. The former method was ideally used by products that

were easy to sell, were familiar to the prospect and needed no demonstration. The latter

method was used for large-ticket items or for those that needed demonstration for

example.

One method of direct mailing used in B2B is known as "bill-me". In this direct-mail

marketing offer, the buyer is shipped the product prior to payment and then is sent an

invoice later.

Opting Out

Several organizations offer opt-out services to people who wish to reduce or

eliminate the amount of addressed advertising mail they receive. In the United Kingdom,

the Mailing Preference Service allows people to register with them for removal from

posted as opposed to hand-delivered mail. In the United States, there are several

nonprofit organizations, such as41pounds.org, catalogchoice.org, as well as private sector

alternatives like Greendimes.

A "No Junkmail" sticker on a mailbox in Calgary, Canada

In response to a US Supreme Court ruling (Rowan v. Post Office Dept.), the United

States Postal Service enables an applicant to obtain a Prohibitory Order, which gives

people the power to stop non-governmental organizations from sending them mail, and to

demand such organizations remove the consumers’ information from their mailing lists.

In Canada, the highly-publicized Red Dot Campaign offers advice on reducing

unaddressed advertising mail. The campaign focuses on advertising the Canada Post

Page 81: Kinjal's Project Report-Final Project!!

policy to respect "No Junkmail" signs, noting that this policy is not promoted by Canada

Post itself. The name "red dot" refers to an internal marker used by Canada Post to

indicate which households do not wish to receive unaddressed admail. The UK Royal

Mail also offers an opt-out service, though it sparked public outrage by warning that

unaddressed government mailings could not be separated from advertisements, and those

who opted out of the latter would stop receiving the former as well.

Several websites critical of junk mail have guides for people interested in reducing the

amount of junk mail they get, such as the Center for a New American Dream.

Environmental effect

Several of the above organizations, as well as environmental groups, express

concern about the environmental impact generated by junk mail.

In the United States, the Environmental Protection Agency estimates that 44% of junk

mail is discarded without being opened or read, equaling four million tons of waste paper

per year, with 32% recovered for recycling. Further, the Ohio Office of Compliance

Assistance and Pollution Prevention (OCAPP) estimates that 250,000 homes could be

heated for a single day's junk mail.

In the United Kingdom, the Minister of State responsible for the Department for

Environment, Food and Rural Affairs estimated that "direct mail and promotions"

accounted for between 500,000 and 600,000 tonnes of paper in 2002, with 13% being

recycled. The government and the Direct Marketing Association (UK) together agreed on

recycling targets for the direct mail industry, including a goal of 55% by 2009, though the

DMA's latest estimates are that the industry will fall well short of this mark.

The CO2 emissions from 41 pounds of advertising mail received annually by the average

United States consumer is about 47.6 kilograms (105 pounds) according to one

study. The loss of natural habitat potential from the 41 pounds of advertising mail is

estimated to be 36.6 square meters (396 square feet).

In the United States many commercial envelope printing companies are moving towards

water-based or vegetable-based ink and laminates, and have increased the use of recycled

paper.

Page 82: Kinjal's Project Report-Final Project!!

Customer Relationship Management (CMR)

Customer relationship management (CRM) is a widely-implemented strategy for

managing a company’s interactions with customers, clients and sales prospects. It

involves using technology to organize, automate, and synchronize business processes—

principally sales activities, but also those for marketing, customer service, and technical

support. The overall goals are to find, attract, and win new clients, nurture and retain

those the company already has, entice former clients back into the fold, and reduce the

costs of marketing and client service. Customer relationship management describes a

company-wide business strategy including customer-interface departments as well as

other departments.

Benefits of CRM

The use of a CRM system will confer several advantages to a company:

Quality and efficiency

Decrease in overall costs

Decision support

Enterprise agility

Customer Attention

Strategy

For larger-scale enterprises, a complete and detailed plan is required to obtain the

funding, resources, and company-wide support that can make the initiative of choosing

and implementing a system successfully. Benefits must be defined, risks assessed, and

cost quantified in three general areas:

Processes: Though these systems have many technological components, business

processes lie at its core. It can be seen as a more client-centric way of doing business,

enabled by technology that consolidates and intelligently distributes pertinent

information about clients, sales, marketing effectiveness, responsiveness, and market

trends. Therefore, a company must analyze its business workflows and processes

before choosing a technology platform; some will likely need re-engineering to better

serve the overall goal of winning and satisfying clients. Moreover, planners need to

Page 83: Kinjal's Project Report-Final Project!!

determine the types of client information that are most relevant, and how best to

employ them.

People: For an initiative to be effective, an organization must convince its staff

that the new technology and workflows will benefit employees as well as clients.

Senior executives need to be strong and visible advocates who can clearly state and

support the case for change. Collaboration, teamwork, and two-way communication

should be encouraged across hierarchical boundaries, especially with respect to

process improvement.

Technology: Technology: In evaluating technology, key factors include

alignment with the company’s business process strategy and goals, including the

ability to deliver the right data to the right employees and sufficient ease of adoption

and use. Platform selection is best undertaken by a carefully chosen group of

executives who understand the business processes to be automated as well as the

software issues. Depending upon the size of the company and the breadth of data,

choosing an application can take anywhere from a few weeks to a year or more.

Direct Marketing Associations (DMA)

Direct Marketing Associations are national trade organizations that seek to advance all

forms of direct marketing.

International Federation of Direct Marketing Associations(IFDMA)

23 direct marketing trade associations from five continents established an International

Federation of Direct Marketing Associations. Founded in 1989, the IFDMA was

established to develop firm lines of communications between direct marketers around the

world, and is dedicated to improving the practice and communicating the value of direct

marketing; and to promoting the highest standards for ethical conduct and effective self-

regulation of the direct marketing community.

The purposes of Direct Marketing Associations

The purposes are generally:

Promoting direct marketing techniques and companies to consumers.

Fighting negative images of the direct marketing industry.

Providing training and professional development opportunities to marketers.

Page 84: Kinjal's Project Report-Final Project!!

Conducting industry research.

Hosting networking conferences for marketers.

Promoting direct marketing, informing consumers of the safeguards that exist, and

promoting the DMA as their protector, contact point and regulator.

Trying to ensure that their members create consumer confidence.

Advising how companies should use information by operating within the terms of

Data Protection Acts.

Lobbying against Data Protection Acts which protect data against redistribution.

Lobbying against laws forbidding e-mail address harvesting.

Controversy

Direct Marketing Associations have attracted controversy, as people believe they aim to promote spam and to defend junk mail and unsolicited telemarketing, which many consumers find irritating and intrusive.

Telemarketing legislation

The United States National Do Not Call Registry, went into effect in 2003. Under

the law, it is illegal for telemarketers to call anyone who has registered themselves on the

list. After the list had operated for one year, over 62 million people had signed up.The

telemarketing industry opposed the creation of the list, but most telemarketers have

complied with the law and refrained from calling people who are on the list.

Canada has passed legislation to create a similar Do Not Call List. In other countries it is voluntary, such as the New Zealand Name Removal Service.

Personalized Marketing

Personalized marketing (also called personalization, and sometimes called one-to-one

marketing) is an extreme form of product differentiation. Whereas product differentiation

tries to differentiate a product from competing ones, personalization tries to make a

unique product offering for each customer.

Page 85: Kinjal's Project Report-Final Project!!

Personalized marketing had been most practical in interactive media such as the internet.

A web site can track a customer's interests and make suggestions for the future. Many

sites help customers make choices by organizing information and prioritizing it based on

the individual's liking. In some cases, the product itself can be customized using

a configuration system.

The business movement during Web 1.0 leveraged database technology for targeting

products, ads, and services to specific users with particular profile attributes. The concept

was supported by technologies such as Broad Vision, ATG, and BEA. Amazon is a

classic example of a company that performs "One to One Marketing" by offering users

targeted offers and related products. Personalization is the term that later followed as a

way of describing this evolution in Internet marketing. Drew Bartkiewicz and Bill

Zujewski were two of the biggest industry advocates of the benefits and feasibility of One

to One and later of personalization. Dr. Pehong Chen was the technologist who founded

the software company, Broad Vision, which enabled large companies to personalize their

e-Business initiatives in the pursuit of One to One Marketing.

More recently, personalized marketing has become practical with bricks and mortar

retailers. The market size, an order of magnitude greater than that of the Internet,

demanded a different technological approach now available and in use. Many retailers

attract customers to the physical store by offering discounted items which are

automatically selected to appeal to the individual recipient. The interactivity occurs

through the offer redemptions recorded by the point of sale systems, which can then

update each model of the individual shopper. Personalization can be more accurate when

based solely upon individual purchasing records because of the simplified and repetitive

nature of some bricks and mortar retail purchasing, for example grocery superstores.

Don Peppers and Martha Rogers, in their ground breaking book on the subject, The One

to One Future (Peppers, D. and Rogers, M. 1993) speak of managing customers rather

than products, differentiating customers not just products, measuring share of customer

not share of market, and developing economies of scope rather than economies of scale.

They also describe personalized marketing as a four phase process: identifying potential

customers; determining their needs and their lifetime value to the company; interact with

customers so as to learn about them; and customize products, services, and

communications to individual customers.

Some commentators (including Peppers and Rogers) use the term "one-to-one marketing"

which has been misunderstood by some. Seldom is there just one individual on either side

Page 86: Kinjal's Project Report-Final Project!!

of the transaction. Buyer decision processes often involve several people, as do the

marketer's efforts. However, the excellent metaphor refers to the objective of a single

message source (store) "to" the single recipient (household), a technological analogy to a

"mom and pop" store on a first name basis with 10 million customers.

One-to-one marketing refers to marketing strategies applied directly to a specific

consumer. Having the knowledge on the consumer preferences, there are suggested

personalized products and promotions to each consumer. The one-to-one marketing is

based in four main steps in order to fulfill its goals: Those stages are IDENTIFY;

DIFFERENTIATE; INTERACT and CUSTOMIZE.

Identify: In this stage the major concern is to get to know the customers, to collect

reliable data about their preferences and how their needs can be satisfy.

Differentiate: To get to distinguish the customers in terms of their lifetime value, to

know them by their priority in terms of their needs and segment them in more restrict

groups.

Interact: In this phase it is needed to know by which communication channel an in

which way it is possible to optimize the contact with the client. It is needed to get the

customer attention by engaging with him in ways that are known has being the ones that

he enjoys the most.

Customize: It is needed to personalize the product or service to the customer

individually. The knowledge that a company has of a customers need to be taken into

practice and the information about it has to be taken into account in order to be able to

give the client exactly what he wants.

Examples of companies that have these techniques in order to persuade the clients:

Market America;

Dell Computers;

Smart Cars;

NikeID;

Amazon.com;

Sonae Distribuição (Modelo Continente SGPS).

Printable Technologies

Page 87: Kinjal's Project Report-Final Project!!

Predictive Analytics

Predictive analytics encompasses a variety of statistical techniques from modeling, data

mining and game theory that analyze current and historical facts to make predictions

about future events.

In business, predictive models exploit patterns found in historical and transactional data

to identify risks and opportunities. Models capture relationships among many factors to

allow assessment of risk or potential associated with a particular set of conditions,

guiding decision making for candidate transactions.

Predictive analytics is used in actuarial science, financial

services, insurance, telecommunications, retail, travel, healthcare, pharmaceuticals and

other fields.

One of the most well-known applications is credit scoring, which is used

throughout financial services. Scoring models process a customer’s credit history, loan

application, customer data, etc., in order to rank-order individuals by their likelihood of

making future credit payments on time. A well-known example would be the FICO score.

Definition

Predictive analytics is an area of statistical analysis that deals with extracting information

from data and using it to predict future trends and behavior patterns. The core of

predictive analytics relies on capturing relationships between explanatory variables and

the predicted variables from past occurrences, and exploiting it to predict future

outcomes. It is important to note, however, that the accuracy and usability of results will

depend greatly on the level of data analysis and the quality of assumptions.

Types

Generally, the term predictive analytics is used to mean predictive modeling, "scoring"

data with predictive models, and forecasting. However, people are increasingly using the

term to describe related analytical disciplines, such as descriptive modeling and decision

modeling or optimization. These disciplines also involve rigorous data analysis, and are

Page 88: Kinjal's Project Report-Final Project!!

widely used in business for segmentation and decision making, but have different

purposes and the statistical techniques underlying them vary.

Predictive models

Predictive models analyze past performance to assess how likely a customer is to exhibit a specific behavior in the future in order to improve marketing effectiveness. This category also encompasses models that seek out subtle data patterns to answer questions about customer performance, such as fraud detection models. Predictive models often perform calculations during live transactions, for example, to evaluate the risk or opportunity of a given customer or transaction, in order to guide a decision. With advancement in computing speed, individual agent modeling systems can simulate human behavior or reaction to given stimuli or scenarios. The new term for animating data specifically linked to an individual in a simulated environment is avatar analytics.

Descriptive models

Descriptive models quantify relationships in data in a way that is often used to classify customers or prospects into groups. Unlike predictive models that focus on predicting a single customer behavior (such as credit risk), descriptive models identify many different relationships between customers or products. Descriptive models do not rank-order customers by their likelihood of taking a particular action the way predictive models do. Descriptive models can be used, for example, to categorize customers by their product preferences and life stage. Descriptive modeling tools can be utilized to develop further models that can simulate large number of individualized agents and make predictions.

Decision models

Decision models describe the relationship between all the elements of a decision — the

known data (including results of predictive models), the decision and the forecast results

of the decision — in order to predict the results of decisions involving many variables.

These models can be used in optimization, maximizing certain outcomes while

minimizing others. Decision models are generally used to develop decision logic or a set

of business rules that will produce the desired action for every customer or circumstance.

Telephone Preference Service

Page 89: Kinjal's Project Report-Final Project!!

The Telephone Preference Service (TPS) is a UK opt-out telephone list that is intended

to prevent telemarketing calls to those who do not wish to receive them. The list is

administered on behalf of Ofcom by the British direct marketing industry, who also run

the Mailing Preference Service and Fax Preference Service. In 2005, the BBC reported

that there were 10.5 million numbers registered. At the end of the year 2007, 14.8 million

numbers were registered.

The TPS should not be confused with the Government Telephone Preference

Scheme which refers exclusively to the system used by the General Post Office since

1952 and later BT to keep selected telephones operating during wartime when access to

the telephone system by the general public would be denied.

History

Residential users have been able to register on the list since May 1999 under the

Telecommunications (Data Protection and Privacy) Regulations 1999. The list has

statutory force under the Privacy and Electronic Communications (EC Directive)

Regulations 2003. From 25 June 2004 corporate subscribers were also allowed to register

on the list under Privacy and Electronic Communications (EC Directive) (Amendment)

Regulations 2004.

Exemptions

Companies can still contact their own customers regardless of TPS to offer new products

and services so long as the customer has "already notified you that they do not object to

receiving such calls". Genuine market research (from companies like Ipsos

MORI and RCU) are also allowed and calls from overseas made by overseas companies

on their own account cannot be controlled by registering with the TPS. Individuals and

businesses may opt out on a case-by-case basis by objecting to these types of

organisations directly. Unlike its foreign counterparts, TPS does not exempt charities,

religious organisations and political parties.

Enforcement

Page 90: Kinjal's Project Report-Final Project!!

Once a number is registered it may take up to twenty-eight days to become fully

effective. After this time, it is unlawful for telemarketers to call a number on the list. The

TPS has no enforcement power, so all complaints are passed on to the Information

Commissioner's Office. The maximum penalty is currently £5,000. However, there have

been no prosecutions undertaken as the legislation does not allow for prosecution.

L eaflet Distribution

Leaflet distribution is a field marketing technique which consists of one or more people

delivering pamphlets to targeted areas. It is very popular as a marketing technique as it

can be directly targeted to specific demographics.

Methods

Leaflet distribution is predominantly carried out in one of two ways: either door

to door to target specific areas or street marketing. There are three main methods of

leaflet distribution, one of which is called solus which is where the leaflet is delivered

solely on its own and is the best yet and the most cost effective. Shared distribution is

where the leaflet is delivered with other leaflets and can be with up to 4 or 5 other

leaflets, this is of course cheaper but is not as effective. The other type of leaflet

distribution is news share this is the cheapest yet the least effective way of leafleting, this

is where the leaflet is delivered with a local, normally free, newspaper and also with other

leaflets. The other way of leafleting is street marketing, the leaflets are hand delivered to

people in the street and is an effective form of marketing but can be costly. For example

if a council wanted to provide information relevant to a specific area then teams can be

sent to go door to door in the area, whereas a commercial company launching a new

promotion or product aimed at students would want distribution teams in and around

university campuses driving footfall towards their stores with relevant promotional

material.

Leaflet Distribution Must Not be confused with direct mail .Any leaflet company should

have in place a pre - set penetration levels of various areas through internal mapping and

data sets.

Page 91: Kinjal's Project Report-Final Project!!

Companies offering every leaflet delivered would find it impossible to pay any of the

workers the nmw based on the prices charged for leafleting some as low as 1.5p per item

in comparison to direct mail at 32p per item.

As a guide for 1,000 homes delivered on a share plan for reliability you should be

looking to pay at least £38.00 per thousand. A guide for solus price would be in the

region of £ 50.00 per thousand homes.

Any less than this you run the risk of throwing money away. If used correctly Leaflet

distribution is a fantastic advertising medium.

Applications

Leafleting is used to distribute information to specific target locations. In the past this has

been used for commercial marketing, political campaigns, and

recruitment and subversive attacks.

Commercial marketing

Leaflet distribution is extremely popular in commercial marketing since companies can

target their promotion at their intended target audiences. Often leaflet distribution is

integrated into advertising campaigns to support and amplify the effects of these

campaigns.

Subversion

Leaflets have been used in various harmful applications. The best known example of this

is during the Second World War where pamphlets were distributed by the Nazi

government, providing false information about the Jewish community to the country to

change opinions and allow the atrocities to continue.

Street Marketing

Street marketing is a term used to refer to certain marketing techniques used to promote

products and/or services in an unconventional way in public places. The main point of

street marketing is that the activities are done exclusively on the streets or other public

Page 92: Kinjal's Project Report-Final Project!!

places, such as shopping centers. Unlike typical public marketing campaigns that utilize

billboards, street marketing involves the application of multiple techniques and practices

in order to establish direct contact with the customers. One of the goals of this interaction

is to cause an emotional reaction in the clients. The final goal of street marketing is to get

people to remember brands in a different way than they are used to.

Origin

This marketing technique started by the need of businesses, especially small

businesses, to attract customers rather than wait for them to come, using alternative

methods for the diffusion of their brand names. As a result, the concept of street

marketing was born. It has evolved from being only the application of activities on the

streets, to be the development of innovative practices of promotion. For example, one

method used by many enterprises to promote their products or services on the streets is

the distribution of fliers. This activity does not focus on creativity, but on making

publicity on the streets. However, with the passage of time, companies have developed

more unconventional techniques to catch the attention of the clients.

Small businesses cannot spend so much money in marketing campaigns. One of the

reasons why they apply street marketing techniques is that, as stated by Jay Conrad

Levinson, author of the book "Guerrilla marketing", street marketing and other guerrilla

methods do not spend a big amount of money. Instead, they spend energy, imagination

and time in creating new strategies to enter or to stay in a specific market.

Also, the majority of the companies have the major goal of generating profits. To reach

that goal, they develop plans in which they take into account the marketing approach.

Most of those plans are based on acknowledging different kinds of methods to persuade

the customers. In addition, they focus on making sure that the brand stays in their minds.

There are many strategies that most organizations put into action, even though some of

them do not work on certain companies. Once the strategies have been chosen, the

enterprises analyze the results and decide if the marketing plan is working.

Typical Procedure

First, enterprises identify the public places where the campaign can be developed

such as beaches, cultural events, places close to schools, sporting events and recreation

centers for children. Next, companies have to develop a plan to get close to different

Page 93: Kinjal's Project Report-Final Project!!

media and the target market. In order to attract attention, street marketing events not only

involve unusual activities, but use technology as part of the events. The purpose is to

increase the value of the campaigns and get potential consumers' attention.

Besides, the plans that companies develop take into account that street marketing

involves global communication and interaction not only with the customers or the

media. They are also developed to identify opportunities and collect enough information

about products, markets and competitors. For example, for business it is important that

customers stay with them, instead of choosing the competitors’ offers. They implement

innovative strategies with which they will not lose position in the market, and they

consider supplementation with other advertisement through other mediums, such as radio

and television, when using street marketing.

There are various examples of strategies that are used in street marketing. One of them is

to provide offers to increase sales. In many cases, businesses do not only supply their

products or services to be recognized, but they also offer other things for free. Another

instance is to present a fundraiser offer. The point of this strategy is to help other

organizations, such as schools, by offering them money. Most companies implement this

method not only to increase their sales, but to improve their reputation and image among

the community. Finally, there is a strategy called "team selling" that consists of

conforming groups of people, the majority of them young, who go knocking the doors of

different houses in a neighborhood. They do this in order to help companies promoting

and selling their products or services.

When doing street marketing, organizations also consider focusing on the psychological

approach. For many companies, this implies if they are having success or not. Street

marketing focuses on some psychological aspects to know costumers' behavior and

preferences. For example, certain psychological areas study how people’s brains are

divided: 45% of people are left-brained, 45% are right brained, and 10% are balanced.

Left-brained persons tend to be logical, right-brained ones tend to be emotional, and the

rest combine the two. Then, according to the product or service that enterprises provide,

and also the kind of costumer, businesses decide the way they are going to manage their

street marketing campaigns. Besides, almost all the enterprises base their street marketing

campaigns on repeating the messages they spread among their customers. Repetition is

related to the unconscious part of the mind. This is the one in charge of making decisions.

It lets people know what they are going to choose, as well as what they are going to buy.

Businesses follow the principle that establishes that, the more people paying attention to

the campaign, the more possibilities that campaign has for being remembered Examples

Page 94: Kinjal's Project Report-Final Project!!

of Street Marketing Companies include Go gorilla in the U.S and Street Advertising

Services in the U.K.

"Direct Marketing Boosts Business Results Through Systematically Winning You Quality Customers"

Direct marketing addresses some of the biggest challenges in marketing a business – lead generation, converting those leads into high quality customers, and then systematically growing customer profitability. Marketing experts estimate that your prospects and customers are bombarded with more than 3000 marketing messages (direct mail, email marketing, radio/tv advertising, billboards) – every day. Direct marketing helps you get through the ‘marketing noise’, and delivers a high return on investment for your marketing spend.

With prospects being presented with so many choices, they seldom, if ever, buy at the first contact. In fact, it can take anything from 9 to 15 contacts before they have sufficient trust in you to finally buy your product.

Little wonder that so many entrepreneurs and sales people hate cold calling as the chances of early success are dismally low.

An alternative to the pain of cold calling is a consistent set of processes that attracts qualified leads to your business, and then keeps them ‘in the loop’ until they convert into customers.

Systematic Direct Marketing is that set of processes – a marketing strategy based on direct marketing methods which will deliver an immediate and sustainable sales improvement.

By improvements we mean:

your lead generation costs will drop, converting leads into sales will not be due to profit-killing price discounts, and your quality clients will form enduring relationships – providing you with

profitable repeat sales

The Highly Effective Cycle of Systematic Direct Marketing

Page 95: Kinjal's Project Report-Final Project!!

In order to attract, retain and nurture a list of highly profitable customers, you need to craft your direct marketing strategy around a number of marketing activities that can start in a fairly simple way, but over time develop into a fairly sophisticated set of direct marketing processes.

If you cycle through the following direct marketing activities you will experience an unprecedented improvement in your business’s results:

Each direct marketing cycle will create a set of clients who can start providing you with referrals. These ‘lowest cost’ prospects will supplement the prospects that you attract through your normal ongoing lead generation techniques, yielding an ever-increasing prospect base for you to convert into customers.

If this is the solution, why isn’t everybody adopting this Direct Marketing Strategy?

For starters, many business executives get seduced by glamour advertising – where advertising agencies vie to see how ‘creative’ they can be with your advertising budget. Sadly this approach is both expensive and ineffective. Even worse, no measurement criteria are established to track the effectiveness of these expensive adverts. Literally a case of pay and pray.

Possibly the main reason that many businesses don’t base their marketing strategy around direct marketing is that it requires setting up several interlinked marketing processes, and many smaller business owners don’t have the direct marketing know-how to do this.

The good news is that most of these marketing ‘systems’ are not too difficult to set up, and many are relatively inexpensive to implement. The smart approach to systematic direct marketing is to introduce the easy / low-cost approaches first, and then use the

Page 96: Kinjal's Project Report-Final Project!!

newly-generated additional cash flow to fund the more sophisticated and more expensive methods.

Prescription of Direct marketing Success

When it comes to advertising for their company, most small business owners rely on a

handful of resources: a sign on the door front, a phone book ad, and merchandise bags

with their company's name and logo. A few go a step further and dabble into radio, local

television, and newspaper ads, but their efforts are typically inconsistent, and they neglect

to measure the ads' effectiveness. No wonder so many small businesses feel they can't

compete with the big national chains. However, by employing some simple direct

marketing strategies, you can attract more customers and enjoy the long-term business

growth you desire.

Direct marketing can and does work in a number of industries, for companies of all sizes. For example, consider the pharmaceutical industry. Up until a few years ago, pharmaceutical companies weren't permitted to advertise directly to consumers. They had to focus all their marketing on physicians. However, now that the laws have changed and pharmaceutical companies can market directly to consumers, they're seeing greater brand recognition and increased profits. Recent surveys have found that 77% of Americans have seen a pharmaceutical ad on television, and 52% of those people said that the advertising made them want to try the medication. In addition, most drug manufacturers have systems in place to entice potential users of their products to sign up for email newsletters, and direct mailings. So if direct marketing works in an industry where the end user isn't the final decision maker (the physician is), then it can work in your industry, too. 

While you likely don't have the multi-billion advertising budget that pharmaceutical companies do, one can employ the following suggestions to create a successful direct marketing campaign:

1. Develop a Fan Base 

Your fans are your best customers. Not only do they buy from you often, but they also recommend your company to others. Look through your customer data and pinpoint who your fans are. Where do they live? What product or service do they purchase most often? What problems do they have that your company can solve? By knowing the type of customer who buys from you the most, you can target other people in that same demographic. Remember that the objective of any direct marketing effort is not just to get a response or make a sale; it's to build customers. When you market directly to your fan base, you leverage the 80-20 rule, which states that 80% of your business will come from

Page 97: Kinjal's Project Report-Final Project!!

20% of your customers. Therefore, identify your 20%, and market to them and others like them. 

2. Select the Right Media 

No one specific advertising medium is the right choice for every company. Depending on your customers, you may need to use direct mail pieces, Internet marketing, radio ads, newspaper coupons, or some combination thereof. Knowing your customers makes the decision easier. 

For example, if you're marketing a truly broad-based product, then direct mail will probably not be the way to go. It is too expensive on a per-thousand basis and takes too long to execute. Television will probably be a better route. Once you produce a "spot," the cost of buying television is less per thousand than direct mail. On the other hand, if you have a niche or micro-market, television normally isn't the best route. For targeting, direct mail and print advertising work best. The key is to pick the medium that makes the most sense for your customers and your budget. 

3. Make the Right Offer 

An offer is what you are willing to give and what you want in exchange for a particular response from prospects. Included in the offer are price, terms, guarantees, and extras. The right offer doesn't necessarily mean the one that generates the most responses or the one that generates the highest profitability from the individual effort. The right offer is the one that ultimately contributes the most profit to your business. 

Offers are normally categorized by the objective of the direct marketing effort:

Lead Generation (for field sales or telephone follow-up). In lead generation, you have both hard and soft offers. The harder the offer, the fewer but more qualified the responses. Hard offers generally will ask prospects for considerably more information about themselves and their buying intentions, ask for an appointment or demonstration, mention the cost of the product or service, and refrain from offering any type of gift or premium.

Traffic-Building (to a retail location, trade show booth, or website). Traffic-building offers normally involve premiums, special discounts, or exclusives.

Direct Sell to business or consumer markets. In direct-sell situations, free trials, samples, premiums, and discounts can all work to draw attention to your promotion and to boost response. Whenever possible, offer a guarantee.

Certain offers will help you move customers from being one-time buyers to fans. Loyalty programs deserve consideration from almost every marketer. Then, depending on the product or service, you can consider offers like automatic shipment, membership clubs and continuity programs. 

Page 98: Kinjal's Project Report-Final Project!!

4. Get a Response and Build a Relationship 

You need to break through all the communications clutter in the marketplace in a way that's credible. For example, a drugstore owner can put a photo of a cute baby on the envelope of a direct mail package to get it opened. But they have to tie the product to the baby (such as flavoring for children's medicine) or it will have attracted attention but not delivered in terms of marketing. 

Good direct response advertising involves the recipient. In direct mail, personalization, tokens and rub-offs, stamps, and quizzes all aid involvement. Good direct response advertising also makes it as convenient as possible for a prospect or customer to respond. Use as many vehicles as possible, including toll-free phone numbers, pre-paid reply envelopes, fax numbers, and e-mail.5. Find a Niche or Unique Selling Proposition 

Small business owners must find their unique selling proposition in order to compete against "The Big Boys." This could mean free home delivery or phone call reminders when it's time to purchase or use a service again. Another way small businesses can compete with the national chains is to develop a niche in a target market. For example, with the aging of the "Baby Boomers," there are many unmet needs, ranging from health care to travel and from investing to real estate needs. Pinpoint what's unique about your company or what niche you fall into, and target that market directly. 

6. Analyze Response to Improve Profitability 

One of direct marketing's great assets is that you can easily measure its effectiveness. Using key codes and coupons are great ways to determine if a particular campaign is working, as is simply asking people, "How did you hear about us?" The more you can measure your campaign's effectiveness, the more you can improve. But the only way to improve is to test on a continuous basis. Critical factors to test include:

The media used. Which brings in new customers most inexpensively? Are they "better" customers?

The effectiveness of the offers. Which offers pull the best response and produce the most fans repeatedly time after time?

The creative approaches. What strategy best separates your company from your competitors?

The timing. What months are best for the specific product or service? What's the ideal time between efforts for particular prospect and customer groups?

Why Direct Marketing?

Page 99: Kinjal's Project Report-Final Project!!

It is the excesses of the conventional marketing system that have forced the return of direct marketing. Consumers tired of tasteless supermarket produce and factory-raised meat (and with increasing concerns about food safety issues) want fresh food with flavor, as well as more control over their food supply, and are willing to pay a premium price for it.

Direct marketing, also called "shopping with a human face," promises "vine-ripened tomatoes that won't bounce if dropped and are full of the flavor you remember."

Direct marketing can give the farmer a larger share of the food dollar and possibly a higher return on each unit sold, offset to some extent by loss of economies of scale. For some farmers, adding value or marketing some minimally processed farm products directly to the consumer is a way of enhancing financial viability. Farmers who are unable to compete in, or are locked out of, distant markets can build a thriving local business. However, finding the right niche and marketing directly to the public is a hard and labor-intensive job requiring time and effort, creativity, ingenuity, sales expertise, and the ability to deal with people in a pleasant and positive manner. Agricultural producers must be absolutely sure they are ready for the job.

Characteristics of Direct Marketing

DIRECT MARKETING: Direct Marketing is subscriber database driven marketing, targeting at the segments, the marketer is positioning his/her product or services through appropriate and relevant messages.

Direct Marketing is characterized by the following:

1. Customer or Subscriber or Prospect databases that make targeting possible

2. A view of customers as assets with life time value

3. Ongoing relationships and affinity with customer

4. Data based market segmentation

5. Research and Experimentation (testing)

6. Benefit oriented direct response advertising

7. Measurement of results and accountability for costs

8. Interactivity

9. Multi-media promotion

10. Multi-channel distribution

Page 100: Kinjal's Project Report-Final Project!!

Database lists can be looked at as market segments to which promotion efforts are directed and from which databases are generated. Lists can also be viewed as readers of a particular publication or a television program. They can also be viewed as segments like purchase preferences, purchase behaviors, and transaction events. Loyal customers generate greater profitability for a company than do new customers. When compared with new customers, loyal customers,

1). Spend more money over time

2). Cost less to serve

3). Are less price sensitive

4). Generate referrals for the company by spreading positive communication

Therefore, direct marketers actively plan to keep their customers happy and loyal to their business by attempting to exceed customer expectations instead of merely meeting them. Customers can exhibit a characteristic of relationship or affinity and can favor purchases and ongoing loyalty with a particular brand, product or company. In return they expect a quality, value and service. Businesses, in turn seek customer loyalty in the hope of creating an affinity that keeps customers from coming back. Market segmentation consists of clustering the company’s potential consumers in groups that clearly differ from each other but show a great deal of homogeneity within the group.

Database lists with customer demographics, preferences and purchasing behaviors provide enough information to create customer segmentation for marketers to target their products or services by appropriately positioning the product offering to the market segment. Testing the offer is finding out if the marketing offer generates a specific outcome. Marketers should test their offers on an ongoing basis. Early testing of an offer on a small market segment may save time and money, before a complete offer may be rolled out to the entire consumer market. The goal of testing is to determine what will work the best in generating a response from the consumer. Mass market advertising having survived for years in a largely unaccountable manner, now faces a future of measurement. Database driven direct marketers utilizing the internet are obtaining that knowledge, enabling them to profile their customers through additional knowledge on customer demographics, preferences, and purchasing behaviors and using promotional strategies that will not only drive prospects to their websites or stores, but also engage them in meaningful and ongoing transactions once there. Breakthroughs in technology has allowed direct marketers and customers now interact in multiple mediums like personal computer, cell phones, internet, telephone and television

The internet, company websites, e-commerce portals, social networking websites, blogs, review an price comparison websites have all helped marketers promoting through various electronic media, apart from traditional print and broadcast media. Direct Marketers are tapping the synergy among various media, which allows them to select the media or channel they prefer when shopping for products or services. Many marketers are now offering consumers a catalog, toll-free number, a website or an affiliate website from which they may shop, apart from retail channels and outlets.

Page 101: Kinjal's Project Report-Final Project!!

Challenges in Direct Marketing

Direct marketing requires careful planning, analysis and alertness in order to

make it a success rather than frustrating the potential customers. There are even many

people who consider direct marketing to be a marketing strategy that would work out the

negative way and spoil the brand name. However, that cannot be true as there are several

businesses who have succeeded by direct marketing.

  There are many challenges in direct marketing that the business owner needs to

handle with caution and ensure that the customers do not get frustrated or irritated by the

way you approach them. This is quite common in direct marketing, as no customer would

want the marketer to target him or her personally and try to market something new. The

situation would be totally different if the same product or service is presented to

customers who are in need of the service or to someone who is looking for them. So, the

secret lies in identifying the right group that would be interested in your products or

services when you talk to them about your business. In order to be successful in direct

marketing, you would certainly have to spend enough time in building a database of

customers who would be interested in your service or products. Any marketing strategy

would be useful and would make sense only when it results in sales or improvement in

business. Similarly, direct marketing would also be helpful only when it is practiced with

an accurately targeted group. Blindly contacting anyone and talking about your services

would spoil your reputation and would irritate the customers.

  Though database generation is definitely not a simple task, a little more effort and

time would help you generate a list quickly. Alternatively, you can also purchase contact

lists from various database generation companies and start your direct marketing

campaign. However, care needs to be taken in this regard as in many cases the database

might contain contact details that are outdated. You can find the right company that has

experience and reputation in database generation and purchase the list from them as

cheap lists might go to waste and spoil your business’ reputation.

  The approach that you use to contact your customers is also important as this

would be the first meeting or discussion that your company would be having with them

Page 102: Kinjal's Project Report-Final Project!!

and this is what would help you to impress them. Therefore, any mode you use, whether

it be a phone call or a personal meeting or an email, it should be well organized and

appealing. You should already be prepared for the discussion and should have answers

for all those questions that the customers might raise during the discussion. All possible

questions should be predicted and the answers for them should also be ready. Preparation

of a professional script would help for personal meetings and phone calls. You can even

have an email template drafted for direct marketing through emails. However, a few

things that would make the email look personalized and customized should be changed

before sending it across.

Contacting the customers can either be done directly by you or can be outsourced

to other third party companies who have experience in direct marketing and dealing with

customers without any problem. However, both the company and the sales

representatives who deal with your customers should be experienced in handling direct

marketing calls and with different types of customers. Their approach should be

professional and they should have answers for all the questions possible. For this, you

should first have these call agents educated on the various services and / or products that

you sell. They should also know about your experience in the field, the quality of service

or products, cost, guarantee if any and so on. The main thing in dealing with customers in

direct marketing is that the information you give should be accurate and promises or

assurance that you make should be true. Any fake promises and assurance would

certainly spoil the reputation of your business and the customers would no longer trust

you and your business. Finding the right call agents would be a great challenge and

training them to talk about your company would definitely be a tough job.

  Once you are prepared and finished with all these preliminary arrangements, you

can start calling or mailing your targeted customers by yourself or using call agents from

other companies. Whatever the case, care should be taken to see whether it is the right

time to contact the customers. For example, customers would not be interested in talking

to a marketing person and in receiving a marketing mail when they are on vacation or

during the weekends. Therefore, such private timings can be avoided and customers

contacted during the weekdays. This would reduce a lot of disorder and would help them

to keep your customers cool without frustrating them. After the initial discussion, if you

Page 103: Kinjal's Project Report-Final Project!!

are asked to contact at a particular time of the day, after a week or whenever it might be,

remember to do it promptly and do not disturb them before that.

  Maintaining a tracking system that would remind you about the timing of

returning calls would also help in building a good opinion about your punctuality and

business amongst your customers. Direct marketing can generate more leads and end up

as successful sales if only these few challenges in direct marketing are handled with care

and thought. A professional touch in every step that you take in direct marketing would

be the best way to go about it.

Page 104: Kinjal's Project Report-Final Project!!

Research Methodolo

gy

RESEARCH METHODOLOGY

Properly conduct of market survey is a required tool for top management in

decision making in order to conduct a useful and objective market research. A research

methodology only then the studies conduct can be properly elaborated and commented on

so I have conduct research and it include some sub-point and it is given below.

Page 105: Kinjal's Project Report-Final Project!!

Marketing Research

MEANING: -

Market research is the function which links the consumer, customer and

public to the market through information used to identifying and defines marketing

opportunities and problems, generate, refine and evaluate marketing actions, monitor

understanding of marketing as a process. The management depends upon marketing

research as a tool in solving its marketing problems. It helps in taking fruitful and

efficient decisions regarding to the flow of goods and services to the customers.

It involves the use of surveys, tests, and statistical studies to analyze

consumer trends and to forecast the qualitative and locale of a market favourable to the

profitable sale of products or service. The social sciences are increasingly utilized in

customer research. Psychology and sociology, for example, by providing clues to

people’s activities, circumstances, wants, desires, and general motivation, are keys to

understanding the various behavioural patterns of consumers.

Attached with applications from the social science has been the

introduction of modern measuring methods when surveys are made to determine the

extent of markets for a particular product. These methods include the use of statistics and

the utilization of computers to determine trends in consumer’s desires for various

products. Scientific analysis is being used in such areas as product development,

particularly in evaluating the sales potential of new product idea. For example, use is

made of mathematical models, that is, theory-based projections of social behaviour in a

particular important marketing decision, including those relating to the type and extent of

advertising, the allocation of salespeople, and the number and location of warehouses.

Definition: -

Page 106: Kinjal's Project Report-Final Project!!

Marketing reaches is a systematic and objective study of problems pertaining to

the marketing of goods and services. It may be emphasized that it is not restricted to any

particular area of marketing, but it is applicable to all its phases and aspect.

The American Marketing Association (AMA) has defined marketing research as

follows.

“Marketing research is the function which links the consumer, customer

and public to the dealer through information used to identify and define marketing

opportunities and problems, evaluate marketing actions, monitor marketing performance

and improve understanding of marketing as a process

Marketing research is defined as, “The systematic, objective and exhaustive

research for the study of facts relevant to any problem in the field of marketing.” It is

systematic search for information. It involves data collection, analysis and interpretation.

According to Ronald, marketing research may be defined as “the systematic

gathering, recording and analyzing of data about problems relating to the marketing of

goods and services under essentially non-recurring conditions.”

Research Designing:-

Definition:-

Page 107: Kinjal's Project Report-Final Project!!

Kerlinger: research design is the plan, structure, and strategy of

investigation conceived so as to obtain answer to research questions & control variance.

Marketing research design is the arrangement of events for assembling and

analyzing the data necessary to help identify or respondent to a problem or opportunity,

such that the dissimilarity between the cost of obtaining various levels of accuracy and

the expected value of the information associated with each level of accuracy is

maximized.

According to Green and Tull “A research Design is the specification of method

and procedure for acquiring the information needed. It is the overall operation al pattern

or framework the project that stipulates what information is to be collected from which

sources, by what procedures”

Formulation of research problem

Choice of research design

Selection of sources of data

Designing data collection techniques

Sampling decision

Field survey

Editing, tabulating & analysis of the data

Preparing research report

1. Formulating the research problem :

Page 108: Kinjal's Project Report-Final Project!!

Business researchers are applied researches which are meant to solve one or

another problem or to tap or to encase the business opportunities. So, this is the first stage

where the need of any research is felt. Moreover, business researches are basic researches

which are done to augment the knowledge of that particular discipline. So, in this project,

I have done business research on the "effect of advertisement on the Honda automobile"

also at this stage, we should try to define the following things:

Who are the population members (i.e. unit of analysis), in this project I have

considered the customers of Honda automobiles of Surat city as unit of analysis.

Time & Space Boundaries:- In this project, the time boundary given to us to

complete this project is only of 1 month e.g. 1 may to 30 th may and the space time

limit is up to Surat city only.

2. Choice of research designing:

A research design specifies the methods and procedures for conducting a

particular study. The researcher should specify the approach be intends to use with

respect to the proposed study. Broadly speaking, research design can be grouped into

three categories – exploratory research, descriptive research and casual research.

Exploratory research:-

An exploratory research focuses on the discovery of ideas and is generally based

on secondary data. It is preliminary investigation, which does not have a rigid design.

This is because a researcher engaged in 80 exploratory study may have to change his

focus as a result of new ideas and relationship among the variables. E.g.- to find out the

reasons responsible for a decline in sale etc. The exploratory research is generally based

on secondary data are speedily available.

Descriptive Research:

The descriptive research is generally conducted where the research wants to know

some characteristics of the population e.g. age, sex, income, satisfaction etc. In contrast

Page 109: Kinjal's Project Report-Final Project!!

to exploratory studies, descriptive studies are well structured. It may be based on the

secondary data or the primary data. I have used descriptive research in my project.

Casual Research:

It may be emphasized that the main principle of a good research design is that it

must answer the questions posed earlier. Further, the researcher should select the research

design, which is appropriate in achieving the objectives of the study. A point worth

emphasizing here is that there is no one ‘best’ research design. There are several

alternative methods for solving a particular problem. Therefore the research should not be

deferred in the quest for the ‘ideal’ research design. It is through experience that one is

able to select the most appropriate research design.

This research is undertaken when the researcher want to investigate cause and

effect relationship between two or more variable.

This research design is useful when the researcher intended to know the certain

characteristics of the population

1. Selection of Sources of Data

Descriptive Research

Cross sectional study Longitudinal Study

Field (Census Study) Survey Method

Page 110: Kinjal's Project Report-Final Project!!

All marketing researcher required vast receiver of the information the specific

problem solved after collecting specific information and data. The data and information

be readily available or may not be readily available. The researcher is required to screen

the data and information is available whereas same time he has to collect or gather

through survey in the respondent directly. The nature and source of data are decided by

the research problem and its nature. The sources of data may be broadly classified in full

categories.

Primary Data:

Primary data are those data which are first time gathered by the researcher or by

someone else especially for the purpose of study, are known as primary data. I have

selected to collect data from “primary sources” i.e. directly from the respondents or the

owners of the Honda bike because my sample size is limited and moreover my project

work is restricted boundaries of this Surat, city. So the respondents are located in the

same City. Therefore it would be more beneficially to collect information through

primary sources.

For example, the demographic statistics collected every ten years are the primary

data with the registrar general of data.

Questionnaire:

It is a list of questions framed so as to get more information at a time. It is just

like a personal interview so mostly collected data are fact. I think questionnaire is the best

media for collect effective information.

This method suggests that data are collected through personal interview. If the

researcher is a keen observer, with honesty and accuracy. While the observation method

may be suitable in case of some studies. Several things of interest such as attitudes,

opinions, motivations and other intangible states of mind cannot be observed. Another

aspect of this method is that it is non reactive as data are collected unobtrusively without

Page 111: Kinjal's Project Report-Final Project!!

the direct participation of the respondent. This is a major advantage as the behaviour can

be recorded without relying on reports from the respondents.

Secondary Data:

Any data that have been gathered earlier for some other purpose are known as

secondary data in the hands of the marketing researcher. In compare those data that are

collected at first hand either by the researcher or by someone else especially for the

purpose of study are known as primary data. Thus, primary data collected by one person

may become the secondary data. For example, the demographic statistics collected every

ten years are the primary data with the registrar general of India, but the same statistics

used by anyone else would be secondary data with that individual. There are certain

distinct advantages, as also the limitation, of using secondary data.

As a researcher, one should be fully aware of both the advantages & limitations. I

also selected to collect data from secondary sources i.e. from internet, magazine,

websites, and company lift lets, to collect the proper information and market share of the

company in different bike segment.

4. Designing data collection techniques:

There are various ways to collect data and in each technique there are several

questions which are to be answered.

Observation forms, questionnaires and experiment journals are

some examples of data collection tools.

Page 112: Kinjal's Project Report-Final Project!!

My research, I have used "questionnaire" as the data collection

instrument.

5. Preparing Research Report:

After the tabulation & interpretation and analysis, a research report is to be

prepared. Considering the findings of the research study and recommendations. It also

includes objectives & limitations of research and various conclusions and limitations.

Research Instrument

Research instruments is the tool by which the researcher can do research on specific

problems or objective. The most popular research instruments for collections data is

"Questionnaire" for a particular investigation. It is simple for a moiled set of questions presented

to respondents for their answers. Due to this flexibility, It is most common instrument used to

collect the primary data. During the pre-testing of questionnaire, I seen the reaction of

respondents and suggestions required to make change in research instrument.

Page 113: Kinjal's Project Report-Final Project!!

Data Interpretati

on and

Analysis

Page 114: Kinjal's Project Report-Final Project!!

Questionnaire Analysis

Following are the interpretation and analysis of the data obtained from the survey conducted through questionnaire. The sample size of the people targeted was 50.

Q.1-What kind of impression does an advertisement creates on you?

Interpretation: - From the about diagram we can understand that 20% people think advertisement creates Elegant impact, 30% of the people think advertisement create Marginal impact and 50% people think advertisement create Higher impact on their mind.

So, we can conclude that advertisement create Higher impact on people.

Elegant Marginal

Higher Impact

20% 30% 50%

0

10

20

30

40

50

60

Elegant Marginal Higher Impact

Series1

Page 115: Kinjal's Project Report-Final Project!!

Q.2-Which advertisement company would you prefer for advertising?

Shah Publicity Venus Chitra Cartel

60% 10% 10% 20%

0

10

20

30

40

50

60

ShahPublicity

Venus Chitra Cartel

Series1

Interpretation: - From the above diagram we can understand that 60% people go for Shah Publicity, 10% people prefer Venus, 10% prefer Chitra and 20% prefer Cartel for advertisement.

So we can conclude that mostly people like to do their advertisement from Shah Publicity.

Page 116: Kinjal's Project Report-Final Project!!

Q.3-Your rough advertising budget?

20% of your income

40% of your income

60% of your income

94% 4% 2%

0 20 40 60 80 100

20% of yourincome

40% of yourincome

60% of yourincome

Series1

Interpretation: - From the about diagram we can understand that there are 94% of the people who would like to invest 20% of their income, 4% people would like to invest 40% of their income and 2% people would like invest 60% of their income.

Here, we can conclude that majority part of the people would like to invest 20% of their income in advertisement.

Page 117: Kinjal's Project Report-Final Project!!

Q.4-Which form of ad creates a greater impact on you?

Just the printed words

Words with sound

Words with a visual

A moving action oriented ad

Picture depicting a scene/story

12% 12% 20% 24% 32%

0 10 20 30 40

1

Picture depicting ascene/story

A moving action orientedad

Words with a visual

Words with sound

Just the printed words

Interpretation: - From the above diagram we can understand that 12% of the people think that Just the printed words creates a greater impact on them, another12% people think that Words with sound creates a greater impact on them, 20% of the people think that Words with a visual creates a greater impact on them, 24% people think that A moving action oriented Ad creates a grater impact on you and 32% people think that Picture depicting a scene/story creates a grater impact on them.

From the above we can conclude that most of the people have higher impact on Picture depicting a scene/story.

Page 118: Kinjal's Project Report-Final Project!!

Q.5-Which media gets your attention?

Print Radio Television Word of mouth20% 20% 28% 32%

0

5

10

15

20

25

30

35

Print Radio Television Word of mouth

Series1

Interpretation: - From the above diagram we can understand that 20% of the people think that Print media gets their attention, another 20% of the people think that Radio media gets their attention, 28% people think that Television media gets their attention and 32% people think that Word of mouth media gets their attention.

So, we can conclude that most of the people get attracted towards Word of mouth.

Page 119: Kinjal's Project Report-Final Project!!

Q.6-Generally what do you think is the most appropriate option for advertising?

TV(including Local Cable) Newspaper Radio

OUTDOOR(Banners,Hoardings,Bus,Train etc)

32% 12% 16% 40%

TV(including LocalCable)

Newspaper

Radio

OUTDOOR(Banners,Hoardings,Bus,Train etc)

Interpretation: - From the above diagram we can understand that 32% of the people think TV is the most appropriate option for advertising, 12% people think that Newspaper is the most appropriate option for advertising, 16% people think that Radio is the most appropriate option for advertising and 40% people think that OUTDOOR is the most appropriate option for advertising.

Thus, OUTDOOR (Banners, Hoarding, Bus, Train, etc) is the most appropriate option for advertising.

Page 120: Kinjal's Project Report-Final Project!!

Q.7-Do you think Outdoor Advertising is largely effective?

Yes No80% 20%

Yes

No

Interpretation: -From the above diagram we can understand that 80% of the people think Outdoor Advertising is largely effective while 20% of the people think opposite of it.

Thus, Majority of the people think that Outdoor Advertising is largely effective.

Page 121: Kinjal's Project Report-Final Project!!

Q.8-How long does the impact of an advertisement last on you?

Few hours One day One week One month More than a month40% 34% 20% 4% 2%

Few hours

One day

One w eek

One month

More than a month

Interpretation: - From the above diagram we can understand that 40% of the people think that only Few Hour the impact of an advertisement last on them, 34% of the people think that One day impact of an advertisement last on them, 20% people think that One Week impact of an advertisement last on them, 4% of the people think that One month impact of an advertisement last on them and only 2% people think that More than a month impact of an advertisement last on them.

Thus, we can conclude that advertisement should be advertised everyday.

Page 122: Kinjal's Project Report-Final Project!!

Q.9-Does an advertisement urge you to try a new brand?

Yes No52% 48%

Yes

No

S146%

47%

48%

49%

50%

51%

52%

Series1

Interpretation: - From the above diagram we can understand that 52% of the people think that an advertisement urge public to try a new brand while 48% of the people think opposite of it.

So, from the above we can conclude that an Advertisement do urge public to try a new brand.

Page 123: Kinjal's Project Report-Final Project!!

Q.10-How often do you buy the same article/ garment design as you see in the ad?

Always Most of the time Sometimes Never10% 40% 30% 20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Always Most of thetime

Sometimes Never

Series1

Interpretation: - From the above diagram we can understand that 10% of the people think that people Always buy the same article/garment design as they see in the ad, 40% of the people think that Mostly people buy the same article/garment design as they see in the ad, 30% people think that Sometimes people buy the same article/garment design as they see in the ad and 20% of the people think that people Never buy the same article/garment design as they see in the ad.

So, from the above we can conclude that, people thinks that most of the time they buy the same article/ garment design as they see in the ad.

Page 124: Kinjal's Project Report-Final Project!!

Q.11-Does advertisement helps you in increasing your business?

Yes No82% 18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Series1

Interpretation: - From the above diagram we can understand that 82% of the people says that Advertisement helps them to increasing their business while 18% of the people says opposite of it.

Thus, we can conclude that Advertisement helps businessman to increasing their business.

Page 125: Kinjal's Project Report-Final Project!!

Q.12-How frequently customers visit your shop after getting influenced by advertisement?

Most often Rarely Never42% 56% 2%

0%

10%

20%

30%

40%

50%

60%

Most often Rarely Never

Most often

Rarely

Never

Interpretation: - From the above diagram we can understand that 42% of the people think that most frequently customer visit shop after getting influenced by advertisement, 56% of the people think that only Rarely customer visit shop after getting influenced by advertisement and only 2% people think that customer Never visit shop after getting influenced by advertisement.

Thus, Rarely customer visit shop after getting influenced by advertisement.

Page 126: Kinjal's Project Report-Final Project!!

Q.13-Does the amount spent on advertisement justifies the revenue earned by you?

Yes No82% 18%

Yes

No

Interpretation: - From the above diagram we can understand that 82% of the people says that an amount spent on the advertisement justifies the revenue that it is earned by them while 18% of the people says opposite of it.

Thus we can conclude that the amount spent on advertisement justifies the revenue earned by them.

Page 127: Kinjal's Project Report-Final Project!!

Q.14-Which aspect of advertisement is important to you?

Models Background Theme Punch line Caption Photography20% 10% 10% 30% 20% 10%

0%

5%

10%

15%

20%

25%

30%

Models Theme Caption

Models

Background

Theme

Punch line

Caption

Photography

Interpretation: - From the above diagram we can understand that 20% of the people think that Models aspect of advertisement is important to them, 10% of the people think that Background of advertisement is important to them, 10% of the people think that Theme of advertisement is important to them, 30% of the people think that Punch line of advertisement is important to them, 20% people think that Caption of advertisement is important to them and 10% people think that Photography of advertisement is important to them.

Thus we can conclude that in an advertisement, the Punch line of an advertisement is very important.

Page 128: Kinjal's Project Report-Final Project!!

Q.15-What types of audience are targeted the most in Outdoor Advertising?

YouthWorking

ClassSenior citizens

54% 42% 4%

YouthWorking Class

Seniorcitizens

Interpretation: - From the above diagram we can understand that 54% of the people thinks that Youth are targeted the most in Outdoor Advertising, 42% of the people thinks that Working class people are targeted the most in Outdoor Advertising, and 4% of the people thinks that Senior citizens are targeted the most in Outdoor Advertising.

Thus we can conclude that the Youth are the most targeted people in Outdoor Advertising.

Page 129: Kinjal's Project Report-Final Project!!

Q.16-Are you satisfied with your business after giving advertisement?

Yes No90% 10%

Yes

No

Interpretation: - From the above diagram we can understand that 90% people are satisfied with their business after giving advertisement while 10% people thinks opposite of it.

Thus we can conclude that most of the people are satisfied with their business after giving advertisement.

Page 130: Kinjal's Project Report-Final Project!!

Conclusion

Page 131: Kinjal's Project Report-Final Project!!

CONCLUSION

As we know that Shah Publicity is very big organization and market leader in advertising industry. It has maximum market share in Hoardings, Kiosks, Gantries, Bus Queue Shelter etc which are its main products. With the help of research, company can find out its weak points in advertising industry and can increase its market share through rectify mistakes. People have believed in Shah Publicity and more people will accept its Hoardings, Kiosks, Gantries etc if effective actions will be taken to reduce their price.

The survey resulted into several conclusions:-

1. Shah Publicity’s price should be reduced because local people cannot invest much in advertisement.

2. Shah Publicity is mostly famous for its Outdoor Advertising but, it should also come up with strong Direct Marketing as Direct Marketing is one of an important part of Advertisement.

Page 132: Kinjal's Project Report-Final Project!!

3. In comparision to other players such as Venus, Chitra, Cartel etc, Shah Publicity provides a better quality and availability of their products.

SuggestionRecommendat

ions

Page 133: Kinjal's Project Report-Final Project!!

RECOMMENDATIONS

1. On the basis of findings it is to be recommended that company would have to increase advertising media outside the city.

2. Company have to reduce the price of advertising to attract more consumers.

3. Shah publicity would have to gather or to know about different customer’s opinion related to advertising for expansion of business.

4. Shah publicity has to give the detail related to hoarding to the customer.

Page 134: Kinjal's Project Report-Final Project!!

5. If shah publicity have a blank hoarding than they have to give that hoarding to the regular customer at some percentage of discount.

Bibliography

Page 135: Kinjal's Project Report-Final Project!!

BIBLIOGRAPHY

Reference Book:-

1. Philip Kotler. “Marketing Management.” 13th Edition, Published by Pearson

publication, India 2009.

Sources from INTERNET:-

1. www.shahpublicity.com

Page 136: Kinjal's Project Report-Final Project!!

2. www.google.com

3. www.yahoo.com

4. www.wikipedia.com

Annexure

Page 137: Kinjal's Project Report-Final Project!!

ANNEXURE

QUESTIONNAIRE

Respected Sir/ MadamI Kinjal Shah, a student of S.Y. B.B.A. studying in SEVENTH DAY ADVENTIST COLLEGE, SURAT, is undertaking a summer project training at SHAH PUBLICITY in the Marketing Specialization “DIRECT MARKETING” with reference to “SHAH PUBLICITY” for the partial fulfilment for the Bachelor Degree of Business Administration.

YOURS SINCERELY

Name ____________________________________

Age ________

Occupation?

Page 138: Kinjal's Project Report-Final Project!!

Employee

Self employed

Q.1 – What kind of impression does an advertisement create on you?

Elegant Marginal Higher Impact

Q.2- Which advertisement company would you prefer for advertising?

Shah Publicity Venus Chitra Cartel

Q.3 – Your rough advertising budget?

20% of your income?

40% of your income?

60% of your income?

Q.4-Which form of ad creates a greater impact on you? Just the printed words

Words with sound

Words with a visual

A moving action oriented ad

Picture depicting a scene/story

Q.5-Which media gets your attention?

Print Radio Television

Word of mouth

Page 139: Kinjal's Project Report-Final Project!!

Q.6 - Generally what do you think is the most appropriate option for advertising???

TV {including Local Cable}

Newspaper

Radio

OUTDOOR {Banners, Hoardings, Bus, Train etc}

Q.7 - Please indicate your evaluation of (store) TV ads: Strongly Disagree

Disagree Neutral Agree Strongly Agree

Attractive

Informative

Entertaining

Effective

Q.8 - Please indicate your evaluation of OUTDOOR ads: StronStrongly Disagree Disagree Neutral Agree Strongly

AgreeAttractive

Page 140: Kinjal's Project Report-Final Project!!

Informative

Entertaining

Effective

Q.9- Do you think Outdoor Advertising is largely effective?

Yes No

Q.10- How long does the impact of an advertisement last on you? Few hours One day

One week One month

More than a month

Q.11- Does an advertisement urge you to try a new brand?

Yes No

Q.12- How often do you buy the same article/garment design as you see in the ad? Always Most of the time

Sometimes Never

Q.13-Does advertisement helps you in increasing your business?

Yes No

Q.14-How frequently customers visit your shop after getting influenced by advertisement?

Page 141: Kinjal's Project Report-Final Project!!

Most often Rarely Never

Q.15-Does the amount spent on advertisement justify the revenue earned by you?

Yes No

Q.16-Which aspect of advertisement is important to you?

Models Background Theme

Punch line Caption Photography

Q.17- What types of audience are targeted the most in Outdoor Advertising?

Youth Working class Senior citizens

Q.18- Are you satisfied with your business after giving advertisement?

Yes No

Thank You

Page 142: Kinjal's Project Report-Final Project!!

Shah Publicity’s products

Back Lit Bus Shelter

Back Lit Hoardings

Page 143: Kinjal's Project Report-Final Project!!

Building Wrap

Page 144: Kinjal's Project Report-Final Project!!

Display Hoardings

One Way Vision

Page 145: Kinjal's Project Report-Final Project!!
Page 146: Kinjal's Project Report-Final Project!!
Page 147: Kinjal's Project Report-Final Project!!

Display Hoardings on Bridge Pillars

Page 148: Kinjal's Project Report-Final Project!!

Display Hoardings on Unipoles

Gantries

Page 149: Kinjal's Project Report-Final Project!!

Garden Kiosks

Kiosks

Page 150: Kinjal's Project Report-Final Project!!
Page 151: Kinjal's Project Report-Final Project!!