Radio Research Synopsis

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IntroductionRadio is an ideal media for marketing fast moving consumer goods because it can reach wide targeted listener demographics in urban habitat. A large number of people listen to radio while being in Universities and colleges respond to the broadcast of various commercial messages. Radio is an affordable ad medium that can reach a mass audience. Radio stations today generally run their advertising in clusters or sets, scattered throughout the broadcasting hour. This study aims at analyzing the impact of radio advertisements on buying behavior of urban commuters in the form of faculty, staff and students at LPU. The impact of radio advertisements on the purchase rate and buying preferences will be analyzed based on responses of the student. Most radio stations and advertising agencies subscribe to this paid service, because ratings are key in the broadcast industry. Ad agencies generally purchase radio based on a target demographic. For example, their client may want to reach men between 18 and 49 years old. The ratings enable advertisers to select a specific segment of the listening audience and purchase airtime accordingly. Ratings are also referred to as numbers in the business. The study therefore will aim at knowing how effective the radio advertisements are in driving or forming a particular purchase decision among the mentioned respondents at LPU..

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A Brief Overview of the Radio Industry in IndiaRadio broadcasting began in India on an experimental basis. In 1921, Times of India in collaboration with Post and Telegraph started broadcasting a musical programme. In 1930, radio broadcasting started under the Indian Broadcasting Company. After three years, the company was liquidated and the Government took the charge of broadcasting. In 1936, the name changed to All India radio (AIR). It is officially known as Akashvani. AIR is one of the largest radio networks in the world. AIR has always concentrated on information, education and entertainment. Vividh Bharti service of AIR was started in 1957 to combat Radio Ceylon. It presents a mix of film music, skits, short plays and interactive programmes, some of the old popular programmes of Vividh Bharati are 'Sangeet Sarita', 'Bhule Bisre Geet', Hawa Mahal, 'Jaimala', 'Inse Miliye', 'Chhaya Geet' etc., are still distinctly recognized by the listeners. Ameen Sayani is referred to as the golden voice of Radio. For four decades, the Government of India did not allow private radio stations to broadcast in India. In 1993, the Government allowed private FM operators to buy chunks on AIR, prepare programming content, book commercials from advertisers and then broadcast. Within a short span of time, the FM radio advertising and sponsorship grew to crores of rupees. The year 1999, changed the course of radio industry in India. The Government decided to allow private sector participation in FM radio broadcasting. 150 new FM channels were to be licensed across 40 cities. The focus was on the metros but many players dropped because of the heavy license fee. This marked the Phase-I of Radio. Phase-II saw a less of restrictions and discussions on Phase-III which may lead to permission of broadcasting news on private FM stations are still on. At a time when radio nearly became dead, life was resurrected in it by FM stations. They brought music listening back into fashion. Radio One, Radio Mirchi, Big FM, Red FM are few of the big players of the industry. The irony with the radio industry is that it has been the last one to get liberalized.

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With Phase-III, 800 new radio stations are expected to start. 18% of all the private FM stations are in the metro market. Advertising is the sole source of revenue for this industry. Radio industry is yet to see even greener shades of success. Youngsters like radio because it matches with the fast-paced lifestyle today.

Review of literature[Park Associates white paper Internet Radio Advertising Impact Study, (2011)] Reveals radio and the Internet have complementary roles in a media plan Ad recall drastically improves when Radio and digital platforms are used in tandem A positive impact on brand preference, purchase behavior Increases in advertised brand website visitation Rajagopal (2010) reveals that shopping behavior of urban consumer at retail stores in response to radio advertisements is highly influenced by the physical, cognitive and economic variables. It further reveals that advertisements on radio are designed around the concept of customer value and focused to deal with widespread retail competition, and knowledgeable and empowered consumers. Muswede and Tavhiso (2010) in a comparative study of three community radio stations, namely: Botlokwa, Mohodi and Radio Turf revealed that a comprehensive approach to sustainability should recognize the role of social, organizational and financial aspects of the medium. Despite marked progress with respect to social acceptance, more innovative marketing and fundraising strategies, appropriate organizational and management policies in the sector are essential. In their absence, community radio continues to lack access to a fair share of resources and can barely raise funds to meet its obligations. Consequently, poor performance in community radio is largely attributable to sustainability challenges, particularly in rural communities where resources are often scarce as compared to urban centers.

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Foundation Research Report (2010) the report is based on a telephone survey of 1,060 English Canadians representative of the national population considering age and regional distribution. It reveals that Canadians spend over 2 hours daily with radio, Radio most popular medium during work day, More time in car and at-work listening drive increase and finally the implications for advertisers that Radio is a versatile medium that offers advertisers consistent market presence for their brands - listening is ubiquitous, frequent and in tune with the Canadian lifestyle. Foundation Research Report (2010a). Study reports that almost 30% of adults listen to the radio while online. Research indicates that of the major media, radio and the internet have the highest percentage of adults reporting that their time spent is equal or greater than the previous year. Belgrave (2010) quotes Radios advantage is that it is not demanding of your time. Television, print media and the Internet all require the user to set aside time to consume; radio adapts to the listeners schedule. He further says Results from 2010 study Of Canadians are a testament to radios versatility; 75% of adults listen to radio while shopping, 72% tune in on the way to work and 38% listen at work. In fact, adult Canadians spend more time with radio during a typical workday than any other medium; an average of two hours and 14 minutes, 21 minutes more than with TV and 36 minutes more than the Internet. Belgrave (2009) says that by demonstrating your understanding of an advertiser's consumer you will immediately capture their interest; the consumer ultimately determines the success or failure of any marketing campaign. Combining insight with a sound knowledge of your client's business will help you to sell the benefits of radio and present your station as an integral component in a marketing campaign. Belgrave (2007) further says that the increasing popularity of the Internet has contributed to radios performance amongst young Canadians. Radio and the Internet are completely complementary; radio is a personal medium that connects emotionally while the Internet is source of news and information. The two used in combination are particularly effective in connecting with young adults. He says, they asked 18 to 34 year old Canadians how radio affected their Internet surfing habits and found that radio had a significant influence;

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54% of respondents said that they had checked things out on the Internet after hearing about them on radio 42% said that radio ads prompted them to search for something on the Internet 38% have typed a website address into their Internet browser after hearing it on the radio

Hispanic Radio Today series Report (2009) provides an in-depth look at the radio listening activity and consumer profiles of Hispanic people, who represent 13% of the U.S. population. This new report covers 16 formats, including 10 Spanish-language formats and six English-language formats. Audience data for Hispanic Radio Today 2009 are derived from the 105 Hispanic Differential Survey Treatment (DST) markets that have a significant Hispanic population. Radio overall continued in fall 2008 to be a part of nearly every Hispanic consumers life each week. In general, a higher percentage of women than men listened to radio among teens, and those 18-24, 25-34 and 45-54. However, men generated higher ratings among the 35-44, 55-64 and 65+ age groups Foundation Research Report (2009) reveals that Radio offers particularly strong market penetration throughout most of the day when TV is less utilized, Listeners are loyal to their radio station and stay tuned for up 3 hours a day, meaning an increased opportunity for exposure to your message. Exposure through multiple media channels, such as the TV radio combination, Increases persuasion, Reinforces and drives higher recall and recognition of brand messages and Increases audience involvement with the brand

Deitz (2009) says traditional radio stations must be highly competitive for both listeners and advertisers, especially during a recessive economy. Deitz (2008) Says,

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given the scenario, this is no time for anyone in traditional Radio to look down their nose at the upstarts and wannabes because it is only a matter of time until they are given the technological footing to compete equally. All they will have to do is come up with good content better content than old media did. Deitz (2005) says every moment of airtime at a radio station should be treated as if its entertainment potential could mean the difference between a listener staying or leaving because it does. If traditional radio stations adopted a Super Bowl mentality when it came to those 12 or so minutes of commercial time each hour, then maybe the promise of commercialfree music on Satellite Radio wouldnt be as alluring to listeners. Radio Ad lab Report (2008) reveals strong radio Ad beginnings make a difference, Strong word selection matters. In the original 2007 Engagement, Emotions, and the Power of Radio study, Gallup & Robinson the researchers, used Continuous Emotional Response Analysis (CERA) to measure emotional activation at a deep, pre-cognitive level with Facial Electromyography (EMG) for 16 real campaigns. The study found that on average, Radio ads have emotional impact on consumers that is equal to that of television ads The Radio Ad lab Report (2007) Online test showed that recall of advertising is dramatically enhanced (27% vs. 6%) when a mix of radio and Internet ads is used compared to website ads alone. Radio ads can also improve website traffic and a brands emotional bond with consumers when added to Internet exposures. Both radio and the Internet reach light users of other media. For example, it was found that 41% of light (or non-) users of television are actually heavy users of radio or the Internet. The daily reach of radio and the Internet together is similar to that of television. On a daily basis, radio and the Internet together reach about 83% of the 18-54 population

Radio Ad Effectiveness Lab Report (2006 and 2004) highlights reveal that radio affects consumers differently than other media, with respondents reporting that

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they have a greater emotional connection to radio than to other media. Also it was found that:

Radio is more personal than TV and the internet, and better meets personal wants and needs Radio (programming and advertising) is relevant to listeners as individuals; and is seen as 'speaking to me' In contrast, TV and newspapers are designed to satisfy the masses

Puerto Rico Radio Today Report (2003) is an effort to expand the knowledge on Puerto Rican listeners and bring new sources of information to enhance the activity of radio in and out of the island. The mountainous island of Puerto Rico lies 1,000 miles southeast of Miami. The total area of the island is 3,515 square miles. It can be compared to Connecticut. It is a little smaller, but with almost a half million more people (3,808,610 vs. 3,405,565).The important findings of the study were that Ninety-five percent (of all persons 12+) listen to radio each week. Nearly all persons 12+ spend about 25 hours a week listening to radio. And working women spend more time listening to radio than nonworking women. Black Radio Report (1998) reveals that the urban format is more popular among black women 18+ (54 percent) than black men 18+ (46percent). Urban is a format enjoyed by the young. Just 16 percent of its audience is aged 45 or older while 40 percent of the audience is under age 25. Black listeners under age 25 clock a full eleven hours and 36 minutes each week listening to urban formatted radio. Urban attracts its largest share of listeners on weekdays from 7PM to 12Midnight.

Small (n.d) addresses the top ten concepts that interact to produce successful radio advertisements which according to him are Production value and voiceover talent, 7

Effective use of the interplay between emotion and logic, Articulation, Distinctiveness of the offering, Simplicity, Use of sound elements to enhance the message, The offer, Benefit orientation, Authenticity and The opening attention grabber. Small (n.d) explains that advertising the fundamental elements involves in how nearly any business can use direct response radio advertising to acquire new customers and grow both profitably and rapidly. According to him, once you understand the fundamentals of radio advertising, youre ready to embark on the process of building a direct response radio advertising campaign. That process involves developing a radio advertising strategy, creating radio ads that drive response, and implementing a radio media plan that delivers your message to the right people for the right cost. Small (n.d) describes how much does it cost to advertise on radio? He says one should budget it around $1,750 for creative development plus $3,000 to $6,000 per week over a 3 week test period for the initial media test. If the test media delivers revenues at or above the break-even profitability level, then youve gained significant learning at essentially zero cost. If the test media delivers revenues at just 75% of your break even profitability level, then for less than $6,000 you still gain significant learning about whether direct response radio is a profitable venture for your business and, if so, how youll go about building a radio advertising campaign that takes full advantage of the opportunity. Craig (n.d) says that radio was one of several technologies that early TwentiethCentury reformers promoted as a means of modernizing and improving rural American life The article explores the coming of radio to rural areas during the 1930s and reviews some contemporary industry research findings on rural radio usage and consumer behavior. It was found that Rural radio families tended to use their sets somewhat more than their urban counterparts. For example, 88.5% of rural radio families said that they listened to radio at some time every day compared to 79.8% of urban radio owners In rural radio homes, the set was reported to be on a median of 4 hours and 47 minutes daily, compared to just 4 hours and 9 minutes in urban radio homes.

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Athiyaman (n.d) says that it is our contention that businesses wanting to advertise in radio have only partial information about the marketplace. There are approximately 500 commercial, and community radio stations in Australia. However, only commercial radio stations, which make up 47% of the total radio stations in the country, systematically conduct radio surveys. The results of this study offers two sets of guidelines to marketing decision-makers in the North Queensland region. Firstly, the study identifies triggers or stimuli for product purchases, and secondly, the study prescribes optimal mix of commercial, and community radio stations that should be used to reach potential purchasers of products. Carowitz (n.d) says that Radio advertising is one of the most powerful ways to target a mass audience in your local market for a relatively low cost. You can reach potential customers at home, in their cars or even at the local barbershop. The effectiveness of your radio campaign will depend on two factors: creating an attention-grabbing message and making an effective media buy. He also says that your ad should mention your companys name a minimum of three times in a thirty second spot and provide a means to contact. When selecting a station, its no time to play favorites. You want one that reaches your target, not necessarily the one you listen to. Ask for a ratings breakdown that includes age, income and other factors. Many stations are part of larger conglomerates, so they may offer you the opportunity to target the same customer across different music formats.

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Rational for the study

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In the past radio had become unpopular with the coming of internet and improved form of televisions so had its attractiveness for advertisements but with the introduction of almost 150 private radio FM channels in 1999 the scenario has changed and more people are listening to the improved version of radio therefore the study is aimed to know the impact of radio advertisements on the urban commuters, the target respondents being the faculty of Lovely Professional University. Scope of the study The scope of the study is confined to Lovely Professional University with Management Engineering and Bio technology departments to be considered within the defined confinement Objectives of the study To form an estimate of the number of urban commuters listening to radio To know the time slots when radio listening is maximum among the defined group. To know the preferred Radio channels to which most of the urban commuters listen to. To know the advertisements which are frequently responded by the defined group. To define slots best suited for advertisers based on the findings of the study To study the extent to which buying behavior of urban commuters is influenced by radio advertisements.

Research Methodology10

Type of Research The type of research will be Descriptive Research as it includes Survey and factfinding enquiries. The major purpose of this research is description of the state of affairs as it exits at present. The method of research utilised in this report will be survey method and tool to be used is Questionnaire Research Design Descriptive studies are those studies which are concerned with describing the characteristics of a particular individual or a group. This study will be using a descriptive approach and is non-experimental. Source of Data The primary source of data would be the faculty of management, engineering and Bio technology department. Respondents Description Further commuters are categorized into two types: (a) Public Transport (Bus & Auto)

(b) Own Transport The sample respondents selected for the study frequently commute to their workplace (Lovely Professional University) from the residential areas located in suburban habitats in Jalandhar, Ludhiyana, Phagwara and other urban places in Punjab.

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Sampling Technique The type of sample, the item for sample, the sampling unit, etc. are selected deliberately. So the sampling techniques will be judgment and quota sampling amongst non-probability sampling techniques. During the survey, there will be an interaction with urban residing faculty, staff and students and then the questionnaire would be given to be filled and returned. . Sample The sample will consist of 150 respondents from Management, Engineering and Bio Technology department. The sample used for this study will be considered a judgment and quota sample. Method of Data Collection This study will be utilizing self-reported questionnaire survey procedures. going to each of the mentioned departments, meeting the faculty and giving them the questionnaire to be filled and returned.

Tentative Chapterization of the Study

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Chapter 1 Chapter 2 Chapter 3 Chapter 4Chapter 5Chapter 6Chapter -

Introduction Review of Literature Research Methodology Findings & Data Analysis Summary Conclusion & Recommendations Implications and Bibliography

Chapter - Annexure

References13

Rajagopal (2010), Role of Radio Advertisements as Behavioral Driver among Urban Consumers http://sibresearch.org/uploads/2/7/9/9/2799227/rajagopal_wp04-2010.pdf {Viewed 15/11/2011} Small, J (n.d), The Fundamentals of Direct Response Radio Advertising http://www.strategicmediainc.com/radio-advertising articles/fundamentals_direct_response_radio_advertising.html{Viewed16/11/201 1} Small, J. (n.d) The Top Ten Keys To Creating Great Radio Ads http://www.strategicmediainc.com/radio-advertising articles/the_top_ten_keys_to_creating_great_radio_ads.html{Viewed16/11/20 11} Deitz, C (2005) Radio Commercials: Don't Just Play Less....Make Them Better http://radio.about.com/od/satelliteradio/a/aa020905a.htm {Viewed 17/11/2011} The Radio Ad lab Conducted by Harris Interactive Inc. February (2007) http://www.radioadlab.org/studyDocs/radioInternetSummary.pdf {Viewed 18/11/2011} Radio Ad Effectiveness Lab (RAEL) (2004 and 2006) Consumer attitudes towards radio http://www.rmb.ca/researchstudies.aspx?id=20108 {Viewed18/11/2011} Black Radio Today (1998 edition) How America Listens to Radio. http://www.arbitron.com/downloads/blackradiotoday98.pdf {Viewed 21/11/2011} Radio Ad lab (2007) A Study of How Radio Affects Consumer Emotions Conducted by Gallup & Robinson (Part Two) http://www.radioadlab.org/studyDocs/engagement2.pdf {Viewed 21/11/2011} Foundation Research (2009), Radio and television. http://www.rmb.ca/researchstudies.aspx?id=20176 {Viewed 21/11/2011} Puerto Rico Radio Today (2003) How Puerto Rico Listens to Radio http://www.arbitron.com/downloads/PuertoRicoRadioToday03.pdf

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{Viewed 21/11/2011} Foundation Research (2010), How Canadians listen to radio. http://www.rmb.ca/researchstudies.aspx?id=20076 {Viewed 23/11/2011} Foundation Research, (2010), Radio and Internet. http://www.rmb.ca/researchstudies.aspx?id=20090 {Viewed 23/11/2011} Hispanic Radio Today series, (2009) How America Listens to Radio, http://www.arbitron.com/study/hisprt.asp {Viewed 23/11/2011} Craig, S (n.d) The More They Listen, the More they Buy: Radio and the Modernizing of Rural America, 1930-1939 [email protected] {Viewed 24/11/2011} Belgrave, J (2007) Youth discover radio again http://www.rmb.ca/news_detail.aspx?id=10112 {Viewed 24/11/2011} Belgrave, J (2009) Know your audience http://www.rmb.ca/news_detail.aspx?id=21398 {Viewed 24/11/2011} Belgrave, J (2010) Study demonstrates radio's effectiveness http://www.rmb.ca/news_detail.aspx?id=26570 {Viewed 24/11/2011}

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