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A Dissertation Report On Comparative study of effectiveness of various Mediums of Advertising Dissertation report Submitted by: Shefali Walia Enroll no. – A0102208058 Submitted to:- Ms. Varsha Khattri (Project Mentor) AMITY BUSINESS SCHOOL AMITY BUSINESS SCHOOL NOIDA NOIDA

Comparative Study of Effectiveness of various mediums of Advertising

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A Dissertation Report On

Comparative study of effectiveness of various

Mediums of Advertising

Dissertation report Submitted by:

Shefali Walia

Enroll no. – A0102208058

Submitted to:-

Ms. Varsha Khattri

(Project Mentor)

AMITY BUSINESS SCHOOLAMITY BUSINESS SCHOOL

NOIDANOIDA

DECLARATION

I, hereby declare that this project report is the record of authentic work carried out by me

during the 4th Semester of MBA and has not been submitted to any other University or

Institute for the award of any degree / diploma etc.

Shefali Walia

Univ Roll No. A0102208058

( AMITY UNIVERSITY, NOIDA)

Date:

Place:

2

CERTIFICATE

The forgoing project, entitled “Comparative analysis of effectiveness of different

mediums of Advertsing” carried out by the student named Shefali Walia. It is hereby

approved as a creditable study of an MBA subject carried out and presented in a manner

satisfactory to warrant its acceptance as a prerequisite to the degree for which it has

been submitted. It is understood by this approval that the undersigned do not endorse or

approve any statement made, opinion expressed, or conclusion drawn therein, but

approve the project only for the purpose for which it was submitted. The project is

submitted for the partial fulfilment for the summer training in MBA Marketing & Sales for

the academic year 2009-2010.

( Ms. Varsha Khattri )

Project Mentor

3

Contents

Index Page No.Acknowledgement 6Chapter 1 Introduction 7-9Chapter 2 Literature Review

2.1 Advertising

2.2 The Advertising Campaign

2.3 Need for reviewing advertising performance

2.4 Information flow from advertiser to consumer

2.5 Generalizations about advertising effectiveness in market

2.6 References

10-23

10-11

11-13

13-14

14-17

18-22

23Chapter 3 Introduction to Different mediums of advertising

3.1 Television Advertising

3.2 Newspaper Advertising

3.3 Magazine Advertising

3.4 Cinema Advertising

3.5 Radio Advertising

3.6 Mobile Advertising

3.7 Outdoor Advertising

3.8 Direct mail Advertising

3.9 Specialty Advertising

24-33

24-25

25-26

26-27

27- 28

28-29

30

30-31

31-32

32-33Chapter 4 Research Methodology

4.1 Need of the Study

4.2 Objectives of the study

4.3 Research Methodology

4.4 Research Method : Company Perspective

4.4.1 Sample Frame

4.4.2 Method of Research

4.4.3 Research Methodology

4.5 Research Method : Company Perspective

4.5.1 Method of Research

4.5.2 Sample Frame

4.5.3 Research Methodology

34-41

34-35

35-36

36

37- 39

37

37-38

38-39

39-41

39

40

40-41Chapter 5 Analysis and Interpretations

5.1 Consumer Research Analysis

5.1.1 Questionnaire 1

42-74

42- 65

42-51

4

5.1.2 Questionnaire 2

5.1.3 Questionnaire 3

5.2 Company Research Analysis

51-59

59-65

65-74Chapter 6 Findings of the Study 75-76Conclusion 77Annexure

Consumer Questionnaire 1

Consumer Questionnaire 2

Consumer Questionnaire 3

Company Questionnaire

78- 88

78-81

81-83

84-85

86-88Bibliography 89

Acknowledgement

I would like to thank all of the people that helped make this possible. First and

foremost, I would like to thank my Faculty Guide, Ms.Varsha Khattri, thank you for

encouraging me to go down my own research path and work on the topic I was

5

passionate about. I know it was more work for you when I decided to venture down my

own path and I appreciate all of your guidance and support along the way

It is a pleasure to all thank those who made this dissertation possible for me such as my

Father who gave me the moral support. All the people from the industry, who gave me

their valuable time and opinion and the All the people who contributed their opinion, to

make this research possible for me.

I would also like to express my gratitude to Amity Business School for making me a

person to perform the task and for all the needful resources being made accessible.

Last but not the least, I want to thank our friends who extended their cooperation and

were patient at all stages of our work.

Shefali Walia

MBA (Marketing and Sales)

Amity Business School, Noida

Chapter 1 Introduction

“The business that considers itself immune to the necessity for

6

advertising sooner or later finds itself immune to business.”

Derby Brown

(Ries and Ries, p. XII.)

The need for advertising can not be denied by any business because every business

needs to reach out to its people in a positive manner so as to build a group of loyal

customers to their brand who can further bring profits to their brand. Advertising provides

the platform to the business to interact with their customer, increase their visibility, build

their brand and developing relations with their customers. Need for advertising can in no

way be denied, because if there is business, there ought to be customers and if there

are customers. Communication is evident. This communication is advertising.

Advertising being an investment to company future and like every investment, a lot

depends on advertising, as well, in terms of people, profit, longevity of business,

sustainability etc. Thus, After a company, has come to realize the need of advertising for

its business, prime questions it faces are

• Where are my target buyers?

• What is the best medium to reach them?

• Which medium can allow us maximum reach in minimum possible investment?

These our some of the questions on top of the mind of every business once they

have decided to go for advertising. With advent of technology, changing consumer’s

preferences etc, A lot has changed in the way we should advertise.

Why does most business advertising fail to yield expected return on investment. That is

because of some of our wrong decisions, we make while advertising.

And one of the major decision is, “What should be the right medium to adverise?”

Thus the aim of our study is to understand business needs and correlate it with

advertising basics and hence formulating a comparative study for understanding the

effectiveness of various mediums of advertising according to business needs and

expectations. To help business maximize their reach, public acceptance,

personalization, cost effectiveness by selecting the right medium to advertise.

7

The questions to everyone’s mind now would be, Is selecting advertising mediums

before advertising such an important and crucial decision before anything. Yes, It is. Lets

understand how.

There are various mediums for advertising like newspapers, magazines, radio,

television, cinema, outdoor, mobile internet, direct mailer etc. Every medium follows its

own set of customers, cost and advantages. Differentiating between different mediums

becomes essential to get the maximum advantages of Communication, reach, public

acceptance, cost advantage, building brand image, switching abilities, acceptance and

cost, effectiveness and quality of add, compatibility of ad with the medium, compatability

with time, shelf life, personalization of message, shortcomings etc. Every mediums rates

differently on the scale for above things and thus being different on the basis of needs

and priority of business. Thus our first objective of the study is to understand all the

available mediums of advertising on the above said aspects.

After understanding different available mediums of advertising, It needs to be

comprehended with business needs to deicide the suitability of medium according to

business needs, which varies extensively from the stage the company is in to customers

it is targeting to the budgets it wants to spend. The various questions which every

company should ask before choosing an advertising medium are

• What are the long term advertising objectives of the company

• What respective benefits are they expecting from there advertisements.

• Are they aware of there target buyers. Whether they are keeping it in mind,

before going in for a particular choice of advertising medium.

• What prompts them to a particular advertising medium for there company /

Product. Whether it depends on some outside agency or internal decisions.

Once, we have understood the needs of advertising by various businesses. There would

be a comparative study for you to understand which advertising medium is suitable to

what needs and which business can make the most effective use of the said medium.

8

Nothings satisfies man than an intelligent reason or a logic. Once we have actually

understood, which medium could be best for your business. Our prime concern would be

to know were these choices justified. Thus our next step would be to correlate the

correlate the effectiveness of various advertisements with respect to the medium used

i.e How successful a particular medium is to add on to an advertisement meeting its

objectives.

Having understood all, not leaving any scope for a “what if” situation. The study next

aims to comparatively analyze different advertisement campaigns of different ompanies

under same industry using different mediums for advertising their products

After understanding all the above knowledge on advertising and choice of advertising

medium, the study would be incomplete without understanding the consumers response

to advertising on different mediums. Thus the study next aims to studying the attitude of

people to advertising on various mediums and understanding which respective segment

of people are effected more by which medium of advertising.

Chapter 2 Literature Review

2.1 Advertising

9

Advertising is, according to Belch and Belch (2004), any paid form of nonpersonal

communication about an organization, product, service, or idea by an identified sponsor.

Wells, Burnett, and Moriarty (2000) claim that advertising is nonpersonal since it is a

form of mass communication and defines advertising as nonpersonal communication

from an identified sponsor using mass media to persuade or influence an audience.

Belch and Belch (2004) suggest that advertising is the best known promotional tool since

it is persuasive. It is also a very important tool for companies whose products and

services are aiming to satisfy mass consumer markets.

Advertising is according to Tellis (2004) an enormous industry and the growth in

expenditures indicates that the importance of advertising is not declining. The total

expenditures in the United States on all media advertising in the 2002 were nearly $240

billion (Armstrong & Kotler, 2005, Belch & Belch, 2004, Tellis, 2004). This could be

compared to the total expenditure of $53 billion in 1980. Promotional expenditures in

international markets have grown as well. Advertising expenditures outside the United

States increased from $55 billion in 1980 to nearly $214 billion by 2002. However, there

is no nation that could be compared to the U.S. where companies collectively are

spending more than $1500 per capita a year on every man, woman, and child in the

country – nearly 50 percent more per capita than in any other nation (Belch & Belch,

2004).

Advertising can be, in some cases be the sole reason for the growth of the company or

the product.

“ The effectiveness of advertising depends on the selection of right media for conveying

the said message to the target audience”

Before discussing the limitations with advertising it is important to note the difficulties

with evaluating the effectiveness of advertising. The effectiveness of advertising is

according to Tellis (2004) a highly complex phenomenon and depends fundamentally on

human response to communication and how it is communicated. It involves attention,

processing, recall, and response to appeal. This leads to one potential drawback noted

by Armstrong and Kotler (2005) who claim that advertising is a kind of one-way

10

communication. Smith and Taylor (2002) emphasize the need for advertisers to think

outside the box and engage in a more dynamic and creative methods of advertising via

direct mail, telesales, Internet, television Radio etc. Tellis (2004) emphasize that only a

few advertising campaigns are successful and only a few ads are able to reach over the

level of noise and seize attention. This could be explained by inattention to advertising,

resistance to persuasion, miscomprehension of ad message, and imitation of effective

techniques.

Clutter is according to Duncan (2002) another major limitation of advertising. The

fact that advertising is everywhere results in criticism from people and reinforces the

resistance towards it. Belch and Belch (2004) also acknowledge the problem with clutter

and define it as “the amount of advertising in a medium”.

2.2 The Advertising campaign

While it is the purpose of all advertising to create market recognition and

penetration (leads), the ads themselves often fail to produce profits greater than the cost

of the ad. In fact, most companies are satisfied if their ads only return their cost in

increased gross sales. They must count on multiple ads and repeat business to show a

profit. This is the major drawback of maintenance or flat response advertising.

To draw a common analogy: It is like trying to harvest a crop the same day you plant the

seeds in your garden. The alternative to flat response advertising is cumulative response

advertising or, as it is commonly known, an advertising campaign. To continue the

garden analogy, cumulative response advertising first uses research to select an

appropriate site with fertile soil (market determination), plants the seeds (foundation

advertising), and then weeds, waters and fertilizes (developmental advertising) until the

garden begins to flourish. Only after the garden has begun to mature do you harvest the

crop (maintenance advertising). The effectiveness of this approach is measured by the

cumulative response ratio.

Before starting a campaign, the cost of a qualified response to a maintenance ad my run

between $100 and $350 for an industrial equipment purchaser. After the campaign has

11

been executed, the cost can drop to as low as $10 to $35 or achieve a 10:1 cumulative

response ratio for the identical maintenance ad. At this advertising cost, it becomes

easier to show a net profit on the initial sale.

Laying out your Garden

The first step in preparing an advertising campaign is to target the right market and

select the media which offers access to that market.

The next step is to create and place foundation advertising which announces to the

greatest number of people that your product exists and what place it occupies in the

market. Is it the biggest?, the best?, the least expensive? This becomes the product's

positioning statement and your selling proposition.

Planting the Seeds

The next phase of cumulative response advertising is the preparation and placement of

developmental or sales builder advertising. Rather that stating the selling proposition,

these ads target on key decision makers, relate to their needs or key buying motivations

and offer the features and benefits of your products to satisfy those needs.

For targets where the key buying motivation is broad based, the ads are usually large,

four color process. In situations where the target is less than 10% of audience, optimum

space (1/2 or 1/3 page) black and white ads are used. While the level of response is

somewhat higher from developmental advertising than foundation advertising, the

primary purpose is long-term recognition of product benefits within the target audience.

The response can again be used to further refine and target the next phase of

advertising; Maintenance Advertising.

Harvesting your Crop

By the time your advertising strategy enters the maintenance phase, your the product

will have developed real and potential markets. All that is required to turn an individual

from the real market into a customer is the information necessary to make a purchase

decision. This is information such as application, price or availability. Since the real

market already has a requirement for your product, there is no need to run a full page ad

or run color. In fact, a quarter page black and white will draw your real market 75% as

well as a four color process two page spread at 20% of the cost for space and color.

Frequency and coverage are the elements for success in maintenance advertising. It is

important to cover your markets horizontally and vertically in all industry, product, special

12

interest, consumer and key decision maker media which will reach a portion of your

market.

Monitoring the costs and response ratios in each market segment will enable you to

evaluate the effectiveness of your advertising strategy6 and plan additional advertising

to strengthen in weak markets or budget reductions in areas of excessive demand.

Disparity between maintenance response and sales also permits manufacturers to

measure dealer sales effectiveness in geographic markets. Helping businesses

implement their marketing plans through advertising, planting the seeds of information in

their markets and spreading enough fertilizer to ensure a bountiful harvest is the

business of advertising and the commitment that WS&A.offers its clients. It is not

enough, however, for your planning organization alone to understand the concepts and

development of campaigns. We hope that by sharing the process, you will be better

prepared to capitalize on the opportunities it affords to maximize profits and exploit new

business.

2.3 Need for reviewing advertising performance

Consumers in today's marketplace have the opportunity to choose between several

available alternatives in almost every product category. The willingness of consumers to

exercise this option is demonstrated in two significant ways—the large market share

differences among competitors within product categories and the high failure rate of new

product introductions. An indication of the failure rate is refiected in the statistic that

about one out of 540 new product ideas ultimately becomes a successful product.

Consequently the marketer is literally forced to devote a very considerable amount of

money and effort to planning and executing the advertising program that will, hopefully,

yield the greatest financial reward.

Various sources suggest that the sum of money spent to communicate a desired

message to the consumer is approaching $17 billion in the United States alone, an all-

time high. Furthermore, this figure will in all probability continue to rise in the years to

come. To put this sum into the proper perspective, it may be noted that the average

family of four is reportedly exposed to more than 1,500 separate advertising messages

during the course of a single day. And this too may be rising. Within this context, it is

surprising that a large number of advertisers make no attempt to measure the

13

effectiveness of their advertising investment. In fact, a recent National Industrial

Conference Board study indicated that a large portion of current advertising efforts are

nothing more than “. . . Untested advertising that small groups of agency or company

executives believed would be effective.”

Sound management practice dictates that all phases and operations of the company be

subject to systematic review in order to achieve a maximum level of performance. This

should include advertising.The short-term and long-term benefits of systematically

reviewing a firm's advertising efforts are overwhelming. For example:

—Management will be forced to define specifically what each element of its program is

intended to accomplish, in advance of actual advertising exposure.

—An accurate feedback system could be provided to management, assisting them in

uncovering what the advertising program—working in conjunction with other marketing

forces—is actually accomplishing in the marketplace.

—Management would be able to use and to learn from experience (both successes and

failures) in order to create more effective communications in the future.

2.4 Information flow from advertiser to consumer and a realistic

program to measure advertising effectiveness

Information from various impersonal sources is communicated to the consumer, either

directly or by another person.^ This message is affected by many subtle yet meaningful

variables over which the advertiser has little control. For example, several studies have

illustrated that the type of message presentation, the attitudes of the audience to the

transmitter (whether it is media or human), the order of presentation, and the emotional

set of the audience"' all serve to influence the effectiveness of information, that is, all

information supplied by a variety of sources and affected by many different factors,

eventually results in a product-related message of some kind being perceived by the

consumer.

The reception of information directed to the consumer is merely the beginning of the

communications process. Furthermore, there is no certainty that even this initial step of

the advertising communications process will be successful. An advertising message will

14

be received by the consumer only if it is transmitted through appropriate media. A

message which theoretically communicates well (for example, in a test situation it is

remembered and understood; it is successful in changing or confirming attitudes,

opinions, and preferences) could easily be ineffective when presented by inappropriate

media.

Even if appropriate media are used and the consumer does become exposed to the

message, it is still unrealistic to expect that he will buy the product at the first

opportunity. The message must first attract the consumer's attention in some way

(either consciously or subconsciously). Otherwise, no matter how well-constructed and

how well-transmitted, the message would be ineffective as an advertising vehicle. The

fact that consumers retain only a .small portion of what they are actually exposed

to—either because of an inability to retain all messages or a lack of desire to do so—

suggests that considerable attention should be given to this problem.

Assuming the sales message is received by the consumer, and attracts his attention, the

marketer should still not expect changes in purchase behavior. The message must first

influence changes in preference by altering or strengthening key attitudes and images

about the product. Both in-theatre and questionnaire research tests have demonstrated

the possibility that a consumer may be exposed to a message with no resultant change

in any image or attitude about the product, much less a change in preference. The key

issue here is the true saliency of the product message from the consumer's point of

view, rather

than the effectiveness with which the advertiser communicated the product message he

judged to be important to consumers. Some experimenters have recently suggested that

consumers may alter their behavior without any prior changes in attitude or preference.

However, analysis of their findings suggests that perhaps their definition of attitude may

be incorrect, casting doubt on their "findings" of no relationship between attitudes and

behavior."

Realistic Program for the Measurement of Advertising Effectiveness

It is within the preceding framework that one can proceed with the development of a

systematic method of measuring advertising effectiveness. By understanding how

15

information about a product is transmitted from the advertiser to the consumer and the

complex paths it sometimes takes, an evaluative program can be designed. This

program must, however, have one basic methodological objective. It must utilize valid

and reliable research instruments. There can be no elements of the program which are

based upon magic formulas and unfounded assumptions. This section describes such

an evaluative system.

A. An important element of the program is to measure consumer exposure to all media

in the advertiser's target market segments. The data may be valuable in defining the

specific media to which consumers have recently been exposed, and the frequency of

such exposure.For example, one could carefully itemize the specific magazines read,

television shows seen, or radio shows heard. Such data would help to determine (1) if

the target market segment was exposed to the sales messages in the past, and (2) what

media selections should be made to insure optimum exposure per dollar

spent in the future.

B. It is also important to measure retention of the advertising and other "messages"

received by the consumer. Information should be collected for the product under

investigation, as well as for all competitors in the appropriate product category. Specific

information could be obtained about retention of the individual elements of a sales

message and also consumers' explanations and interpretations of what an advertiser is

communicating about his product.

C. The level of consumer preference, both for the advertised product and for its

competitors, can be developed. Consumers can be categorized into several intensities of

preference. For example, the first and lowest level of preference could be a complete

lack of awareness for the product. Next might be a general state of product awareness

(either with a negative feeling or with no observable preference). A third, and more

intense level of preference, could be an evaluation by the consumer that the product is

within a group of products toward which he has some level of favorable feeling. Finally,

the highest level of preference could be the single product that is most preferred. (The

concept behind these preference levels has application in most product categories.

However, many studies of advertising effectiveness suggest that the number and

16

definition of the various levels of preference may vary among different product

categories.)

D. Salient images and attitudes toward the product under investigation, as well as for all

of its competitors, can also be measured. Knowing a consumer's level of preference, as

well as his specific attitudes, enables the correlation of attitudinal factors with preference

for all products in the category of interest.

E. Recent actual marketing behavior of the consumer should be investigated.

Information

sought might include such factors as product brand, size and amount usually purchased,

various uses and methods of usage, as well as the consumer's current product inventory

on hand.

F. The type of data described above can be used only to measure what the advertising

for a product is accomplishing relative to its competition. However, it cannot tell the

marketer the economic value of his current advertising strategy. As noted earlier, there

are a large number of variables which must be accounted for and controlled in order to

provide this type of information. The actual experience of several manufacturers"

suggests that it is possible to provide management with a series of objective indicators

of advertising's economic value. These observations may then be examined in light of

current market conditions, government actions, competitive activities, and so on, in order

to gain insight into a measure of advertising's economic value.

2.5 Generalizations about advertising effectiveness in market

(GERARD J. TELLIS, Marshall School of Business

University of Southern California

Journal of advertising research, June 2009 )

Based on over 260 estimates, the mean elasticity of sales or market share to

17

advertising is 0.1 percent. Another 450 field experiments suggest that changes in

media, product, target segments, advertising scheduling, and advertising content are

more likely to yield changes in sales than do changes in advertising weight. Numerous

other studies suggest that advertising wear-in does not exist or occurs quite rapidly while

advertising wear-out occurs more slowly. Details of and differences in these results by

condition are discussed in this article.

FIELD RESEARCH ON ADVERTISING

A) RESEARCH ON ADVERTISING ELASTICITY

"Advertising elasticity" is the percentage change in sales of a brand for a 1 percent

change in the level of advertising. It is free of any units. Studies in this area try to

estimate the statistical relationship by which sales respond to advertising. To do so, the

studies define a model with sales as the dependent variable and advertising as the

independerit variable. As far as possible the

studies try to control for the effect of Other independent variables such as price, quality,

distribution, promotion, or brand name. There are more than 260 estimates of

advertising elasticity carried out in numerous studies using a variety of models and data

across many countries, product categories, brands and time periods. There also are two

types of elasticities, current and carry-over. The current elasticity is the percentage

change in sales for a 1 percent change in advertising in the concurrent time period.

Carry-over elasticity, alternatively, refers to the percentage change in sales for a 1

percent increase in advertising in subsequent time periods, after or beyond the

concurrent one.

Generalizations from elasticity study:

About current effect

• If advertising changes by 1 percent, sales or market share will change by about 0.1

percent. In other words: advertising elasticity is 0.1.

18

• The advertising elasticity is lower in models that incorporate disaggregate data,

advertising carryover, quality, and promotion relative to those that do not.

About carryover effect

• The carryover elasticity of advertising seems twice as large as that of the current effect.

• The estimates of the carryover effect of advertising decrease with the interval of the

data used to estimate the carryover.

Implications:

These results suggest the following four implications. First, advertising is not the variable

of choice for increasing sales. Second, there are distinct circumstances when advertising

is effective in increasing sales. Third, researchers need to be cautious about modeling

advertising response. They need to properly control

for independent variables, carryover effects, and multiplicative models. Fourth,

researchers need to use data at the unit exposure time and correct for estimates of

elasticity if they use more aggregate data (Tellis and Franses, 2006

B) RESEARCH ON ADVERTISING WEIGHT

"Weight" refers to the level or intensity of the advertising budget. Typically, the studies in

this group examine the effect of differences in advertising budget across time periods or

regions. The main focus of such studies is to determine whether an increase in weight

translates into a proportional or profitable increase in sales of the advertised product.

Researchers have carried out more than 450 market or field experiments to assess the

effectiveness of advertising. In such experiments, researchers compare two or more

similar markets, each of which differs by a particular advertising weight. In most cases,

the experiments last for several time periods to enable the researchers to get baseline

sales before the change in advertising weight and assess carryover sales after the

change has been made. These experiments varied widely in time period, markets,

product contexts, advertised brands, and changes in weight (Tellis, 2004, 2007).

Generalizations from advertising-weight studies

Research from weight studies leads to the following six important and surprising

findings:

19

• Even if advertisers make a big increase or decrease in weight, sales do not increase or

decrease by much.

• If advertisers make cuts in weight, sales do not immediately decrease.

• If advertising is effective, its effects are visible early in the life of a campaign.

• Conversely, if early advertising is ineffective, then repetition will not create or enhance

its effectiveness.

• If advertisers make changes in media, product, target segments, scheduling, and

especially content of the advertising, they are more likely to cause changes in sales than

if they merely change weight.

• Where profitability of the advertising has been assessed, advertising seems to be

profitable less than half the time.

Implications

These results suggest three implications. First, firms could be over-advertising, not only

in the amount of advertising they do, but also in using the same content, positionings,

product, media, and schedule too long. Second, advertising may have carryover or

permanent effects, so that continued advertising at the same level is not always

necessary. If the carryover effect is present, however, it starts to occur immediately and

does not build up over time. Third, a firm's budget increase or original budget itself is

more fruitfully enhanced by changes in media, content, target segments, product, or

schedule rather than on weight alone. In other words, variety in advertising is likely to

yield better results than increases in weight.

C) RESEARCH ON ADVERTISING FREQUENCY

A firm's advertising budget normally affects consumers through the exposure of

consumers to advertisements through the media. "Frequency," in this context, refers to

the number of advertising exposures each consumer receives in a particular time period.

The advertising budget in a time period ultimately translates into a sequence of

individual exposures targeted to one or more consumers. Similarly, sales is an

aggregate of "brand choice"—consumers' choices of brands. Research on frequency

normally examines the effect of advertising frequency on consumer choice (Deighton,

Henderson, and Neslin, 1994; Gibson, 1996; Jones, 1995; McDonald, 1971; Pedrick and

Zufryden, 199(1; Tellis, 1988a). Such research provides a more fine-grained and

20

insightful analysis of advertising response than comparable studies on advertising

elasticity or advertising weight.

Generalizations from advertising-frequency studies

Research on advertising frequency leads to the following five findings:

The effects of advertising exposure are less prominent and immediate and more

fragile than those for price or promotion on brand choice.

In general, increasing frequency of exposures increases probability of brand choice

at a decreasing rate.

For mature, frequently purchased products, the optimum level of exposure is

relatively small, ranging from one to three exposures a week.

Brand loyalty moderates response to advertising exposures, in that established

brands have an earlier and lower peak response to advertising exposures than

newer brands.

Brand choice is more responsive to the number of consumers the advertisement

reaches than to frequency with which it is repeated.

Implications

These findings suggest two implications: First, advertisers need to target loyal buyers

and nonbuyers of their products with differing levels of exposures. Second, consistent

with findings from prior sections, heavier exposures need to be reserved for new

consumers and brands.

D) RESEARCH ON ADVERTISING CONTENT

"Content" refers to what is in an advertisement as opposed to such external

characteristics as weight or frequency. Aspects of content include the appeal (argument,

emotion, and endorsement), the duration or length of the advertisement, the use of color,

sound, or video, the amount/type of text, etc. While a vast number of theater and lab

studies have examined the effectiveness of various aspects of advertising content, only

21

a few market studies have done so (Chandy, Tellis, Maclnnis, and Thaivanich, 2001;

Maclnnis, Rao, and Weiss, 2002). Thus, generalizations of findings in this area need to

be made cautiously.

Generalizations about advertising content

Research on advertising content seems to suggest the following preliminary findings:

• Changes in the creative, medium, target segment, or product itself sometimes lead to

changes in sales, even though increases in the level of advertising by itself does not.

• Informative appeals are more important early than late in the product's lifecycle.

• Conversely, emotional appeals are more effective late rather than early in a product's

life cycle.

Implications

These findings have two important implications for advertisers. First, to increase

effectiveness, advertisers should modify content more than increasing weight or

frequency. Second, advertisers need to test and typically vary the content of their

advertising within the life stage of the product.

2.6 References

Books

• Marketing Management by Philip Kotler

• Advertising Management by Rajiv Batra, John G. Myers.

22

Research papers

• Gerard J. Tellis, Marshall School of Business, University of Southern

California, Journal of advertising research, June 2009

• The Role of PR, Jönköping June 2005

• Elizabeth Marting, New Products, New Profits (New York: American

Management Association, 1964)

• Roger H. Bolin, cited in Russel H. Colley, Defining Advertising Goals for

Measured Advertising Results (New York: Association of National Advertisers,

1961), Foreword.)

• Journal of Marketing. Vol. 33, 1969).

Chapter 3 Introduction to different mediums of

Advertising

The promise of media advertising is great. It’s an opportunity for a brand to tell its story

directly to the ultimate consumer. It’s an opportunity to build awareness and project a

powerful brand image. It’s an opportunity to create and build brand equity. It’s an

opportunity to bypass the trade, an opportunity to circumvent competitors. In actual

23

practice, however, the promise of media advertising I seldom realized. In fact, the

opposite is true. Media advertising is probably the most inefficient, least productive

expenditure in the typical company’s marketing budget.

3.1 Television Advertising

Television advertising provides a very powerful vehicle for delivering a message about

your product or service to the widest audience possible. The visual impact of video

simply has a great ability to capture and hold the audience—more so than the more

static mediums of print or audio media. Although it may seem like a daunting task, you

can write and produce your own commercial at a television studio, or at a local college or

high school that has an audio-visual department. The costs of producing a fifteen-,

thirty-, or sixty-second television spot will vary depending upon the sets, special effects,

talent, equipment, and crew necessary to pull off your concept.

The cost for placing a television ad depends upon the type of station, the time of day

your ad airs, and the ad run frequency. Station types, in order of expense, include UHF,

VHF, and local cable access. When determining which time slot to place your ads in,

consider any documentaries, features, or sporting events with local content that cater

specifically to an audience that would be interested in your product or service.

Remember that the frequency of your ads is as important as the time of day they air.

Running your commercial once or twice a week, for example, is unlikely to generate any

response at all

The effect of TV commercials, or any other form of advertising, can and has been

measured on a variety of criteria. Advertising recall, message comprehension, product

awareness and knowledge, attitude toward and intentions to buy the advertised product

are some of the more frequently used commercial and product-related measures of

advertising effectiveness.' These measures, being non purchase in nature, should ideally

be related to the theoretically ' "optimal" criterion of advertising effectiveness—the

present value of the relative profitability of advertising alternatives. Unfortunately, there

is no sound theoretical (or even an empirical) basis for selecting any one measure as the

single "best" criterion. This may suggest the need for advertising evaluation tests which

utilize a number of relevant commercial and product related criteria. Yet, most current

24

commercial testing procedures, including those that are consistent with the Dagmar

approach, determine the effectiveness of a given commercial based on its performance

on a single criterion.

3.2 Newspaper Advertising

Every advertising medium has characteristics that give it natural advantages and

limitations. As you look through your newspaper(s), you'll notice some businesses that

advertise regularly. Observe who they are and how they advertise their products and

services. More than likely, their advertising investment is working if it's selling!

Some Advantages in Newspaper Advertising

Almost every home receives a newspaper, either by newsstand or home delivery.

Reading the newspaper is a habit for most families. And, there is something for

everybody: sports, comics, crosswords, news, classifieds, etc. You can reach certain

types of people by placing your ad in different sections of the paper. People expect

advertising in the newspaper. In fact, many people buy the paper just to read the ads

from the supermarket, movies or department stores.

Unlike advertising on TV and radio, advertising in the newspaper can be examined at

your leisure. A newspaper ad can contain details, such as prices and telephone numbers

or coupons.

There are many advantages to advertising in the newspaper. From the advertiser's

point-of-view, newspaper advertising can be convenient because production changes

can be made quickly, if necessary, and you can often insert a new advertisement on

short notice. Another advantage is the large variety of ad sizes newspaper advertising

offers. Even though you may not have a lot of money in your budget, you can still place

a series of small ads, without making a sacrifice.

Some Disadvantages with Newspaper Advertising

• Newspapers usually are read once and stay in the house for just a day.

• The print quality of newspapers isn't always the best, especially for photographs.

So use simple artwork and line drawings for best results.

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• The page size of a newspaper is fairly large and small ads can look minuscule.

Your ad has to compete with other ads for the reader's attention.

3.3 Magazines advertising

Many of the same "print" type principles which apply to newspaper advertising also apply

to magazine advertising. The biggest differences are: Magazines are usually weekly or

monthly publications instead of daily. Advertising messages are more image-oriented

and less price-oriented. The quality of the pictures and paper are superior to newsprint.

Advertisements involve color more often. The general rule that you can run the same ad

3-5 times within a campaign period before its appeal lessens applies to magazine

advertising as well, even with a monthly publication. So it makes sense to spend extra

time and money to prepare a worthwhile ad that can be successfully repeated. Over long

terms such as these, however, be aware that the client (you) often tires of the ad before

the audience does. Because ads in magazines are not immediate, they take more

planning. Often, an ad for a monthly magazine must be prepared at least a month in

advance of publication, so ads detailing prices and items have to be carefully crafted to

insure accuracy..

There are two categories of magazines: trade magazines and consumer magazines.

Trade magazines are publications that go to certain types of businesses, services and

industries. Consumer magazines are generally the kind you find on the average news

stand. Investigate which type would do your business the most good. An agency can

also purchase the magazine space for you, often at no charge, because the magazine

pays the agency a commission directly. If you wish to purchase the advertising yourself,

contact the magazine directly and ask for an "Ad Kit" or "Media Package." They will send

you a folder that includes demographic information, reach information, a current rate

card and a sample of the publication.

Although most magazines are national in nature, many have regional advertising

sections that allow your business to look like it purchased a national ad when it only

went to a certain geographical area. This can be especially useful if your product or

service is regional in nature as well and could not benefit from the magazine’s complete

readership. Each magazine does this differently, so contact the one(s) you are interested

26

in and ask them about their geographic editions. Some sophisticated magazines even

have demographic editions available, which might also be advantageous.

Also, Magazine and television work in different ways Magazine and television advertising

work in different ways and in assessing advertising effectiveness these differences

should be taken into account. The measures developed for television are not necessarily

appropriate for magazines.

Moreover, exposure to a magazine ad is under the reader’s control, whereas exposure

to a TV commercial is not in the viewer’s control. Television and magazine

advertisements are stored in memory in different ways. A TV commercial tends to be

held in the mind as a ‘story’. With magazine advertisements a higher proportion of

memories are stored as information about the product rather than about the ad itself.

Consequently, as a criterion of the advertising efficiency of magazines, measuring

theabsorption of product messages is more relevant than ad awareness. Unlike

television, magazines offer repeat exposures to the advertising. The typical reader looks

at an average page on more than two occasions.

3.4 Cinema Advertising

Cinema advertising is a dynamic medium offering advertisers the opportunity to reach

their target consumers in a distraction-free, compelling environment. Advertisers

showcase their brands on an entertainment backdrop and access the star power that

drives consumers to theatres. Cinema advertising is becoming a more essential,

strategic part of the media plan, for many brand categories. Consumers are more likely

to consider and choose a brand when in-cinema advertising is part of the overall media

mix. Moviegoers who saw in-theatre advertising are 44% more likely to remember the ad

than consumers who saw it on TV. Cinema advertising has longevity. Up to one week

after seeing commercial at the movies, nearly half of consumers could name the specific

brands they saw advertised. In terms of reach, it is lower than TV but in terms of impact

it is around 5 times higher. There is better ROI on Cinema as a medium when compared

with television.

Cinema attendance worldwide has increased rapidly in recent years and this growth

inttendance has seen a parallel increase in the utilization of cinema as an advertising

medium (Val Morgan Cinema Advertising, personal communication 1996).

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In addition to the increasing reach of cinema, some researchers have argued that

cinema possesses a number of advantages which make it a more attractive medium

than has hitherto been recognized (see Johnson 1981). In the only major study to

explore cinema advertising, Johnson identified the high quality, high resolution

presentation offered by cinema; the "social" aspect of movie going which, he suggested,

ensures decision-makers view advertising in the company of purchase influencers; the

captive environment of cinema, and the lack of clutter affecting the medium, as reasons

for its increasing popularity. He acknowledged some disadvantages, especially the

difficulty of building frequency (although this is easily addressed through the use of other

media within a specific schedule); the lower reach when compared to traditional

broadcast media, and booking constraints. However, despite these problems, Johnson

concluded that cinema was an under-utilized medium.

3.5 Radio Advertising

Since its inception, radio has become an integral part of our culture. In some way, it

touches the lives of almost everyone, every day. Radio, as a medium, offers a form of

entertainment that attracts listeners while they are working, traveling, relaxing or doing

almost anything. A farmer, for example, may listen to the radio while he is having

breakfast or plowing his field. People driving to work often listen to the radio. Radio

offers information such as: news, weather reports, traffic conditions, advertising and

music for your listening pleasure.

Radio is a relatively inexpensive way of reaching people. It has often been called the

"theater of the mind" because voices or sounds can be used to create moods or images

that if crested by visual effects would be impossible to afford.

You can also negotiate rates for your commercials, or even barter. Stations are often

looking for prizes they can give away to listeners, so it's possible to get full commercial

credit for the product or service you offer.

Advantages to radio advertising include:

• The ability to easily change and update scripts are paramount to radio

broadcasting, since news stories can and often do happen live.

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• Radio is a personal advertising medium. Station personalities have a good

rapport with their listeners. If a radio personality announces your commercial, it's

almost an implied endorsement.

• Radio is also a way to support your printed advertising. You can say in your

commercial, "See our ad in the Sunday Times," which makes your message twice

as effective.

• Radio advertising is not without its disadvantages too, such as:

• You can't review a radio commercial. Once it plays, it’s gone. If you didn't catch

all the message, you can't go back and hear it again.

Since there are a lot of radio stations, the total listening audience for any one station is

just a piece of a much larger whole. That's why it's important to know what stations your

customers and prospects probably listen to. Therefore, most of the time, you'll have to

buy time on several radio stations to reach the market you are after.

People don't listen to the radio all the time...only during certain times of day. So, it's

important to know when your customers or prospects are listening. For example, if you

want to reach a large portion of your audience by advertising during the morning farm

report, you'll have to specify that time period to the radio station when you buy the time.

Radio as a broadcasting medium, can effectively sell an image...or one or two ideas at

the most. It is not, however, a detailed medium...and is a poor place for prices and

telephone numbers.

Radio listeners increase in the spring and summer, contrary to television audiences

which increase in the fall and winter and decrease in the summer. This is an important

aspect to consider when you are choosing advertising media.

3.6 Mobile Advertising:

The high penetration rate of mobile phones has resulted in the increasing use of

handheld devices to deliver advertisements for products and services. Short Messaging

Service (SMS), in particular, has been very successful. A series of surveys conducted by

A.T. Kearney indicates that the use of mobile information services and SMS has

increased dramatically since 2001 [20]. More than 100 billion SMS messages were sent

29

worldwide in a single year. More than half of the 19–34 age group in Taiwan use SMS at

least once a day. The rising popularity of SMS has created a new channel for

advertising, called mobile advertising. Ads are rendered as short textual messages and

sent to mobile phones

3.7 Outdoor Advertising

Out-Of-Home (OOH) or Outdoor Advertising is defined as “any type of advertising that

reaches the consumer while he or she is outside the home (or office). This is in contrast

to broadcast, print, or internet advertising, which may be delivered to viewers out-of-

home (e.g. via tradeshow, newsstand, hotel lobby room), but are more-often viewed in

the home or office.”2

OOH advertising falls into one of four formats3:

• Billboards – Standardized large format advertising displays intended for viewing from

extended distances, generally more than 50 feet (including digital billboards)

• Street furniture – Advertising displays, many that provide a public amenity, positioned

in close proximity to pedestrians and shoppers for eye-level viewing, or at curbside to

influence vehicular traffic (including traffic barriers, benches, bollards, post boxes, phone

boxes, street lamps, street lighting, traffic lights, traffic signs, grit bins, public lavatories,

fountains and memorials, and waste receptacles)

• Transit – Advertising displays affixed to moving vehicles or positioned in the common

areas of transit stations, terminals and airports (including buses, commuter trains, trucks,

taxicabs, and mobile billboards)

• Alternative – new media advertising different from billboards, street furnitures, and

transit. This include mobile projections, cinema, place-based advertising (such as in

malls, golf courses, parking garages, stadiums and arenas, rest areas and resorts),

postcards, vending carts, and place-based digital networks (also called digital displays)

OOH advertising has emerged as a new frontier for what has traditionally been

dominated by TV, radio and print. With a projected growth of 28% in 2007, OOH

advertising is now slowly being regarded as a co-equal of traditional media.

Need of OOH Advertising

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According to recent studies cited by the Outdoor Advertising Association of America

(OAAA), people are spending more time out of home than in-home9. This is widely

influenced by two key factors:

• Increasing mobility of consumers as they spend more time on the road while

commuting to and from places of work and relaxation, in spite of the increasing cost of

fuel

• Increasing number of working individuals per family, itself influenced by an increasing

cost of living and lifestyle

Furthermore, consumers are increasingly exerting control of their purchase and

consumption habits, demanding the ad content that they want to see when they want to

see it. The increasing clutter of home-based advertising from a burgeoning number of

TV and radio channels, and a widening option of print media from magazines to

newspapers, has made it difficult to make purchase decisions at home. As a result, most

consumers are now making such decisions out-of-home, at that moment in time

immediately before the point of purchase.

3.8 Direct Mail

What makes "direct" mail different than regular mail? Nothing. It's just a way the

advertising world describes a promotional message that circumvents traditional media

(newspaper, radio, TV) and appeals directly to an individual consumer. Usually through

the mail, but other carriers also participate.

Direct mail may be used more than you think. Studies indicate that it is the third largest

media expenditure behind television and newspaper.

Rules to Remember

1. Define your audience. Figure out who you want to reach before developing your

direct mail program. This allows you to specifically target your message to fit

common needs. It is the best advertising medium for "tailoring" your appeal.

2. Locate the right mailing list. You can either build a "house list" by doing the

research yourself and compiling the information on a computer - or you can

purchase an "outside list" from a list house or mailing organization already pre-

prepared and ready to go.

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3. There are many ways to purchase lists. You can buy them demographically (by

age, profession, habits or business), or geographically (by location, or zip code).

Or you can by a list with both qualities. More than likely, there is a mailing list

company in your area that would happy to consult with you on your needs. If not,

there are a number of national mailing lists available.

4. For assembly, addressing and mailing your project, you also have the choice of

doing it yourself or locating a mailing service company to do it for you. As the

numbers of your direct mail pieces increase, the more practical it is for you to

enlist such an organization for assistance. They also are very good at getting you

the lowest postal rates.

5. Consider using a self-addressed reply card or envelope to strengthen return. Use

a Business Reply Postage Number on the envelope and you'll only pay for the

cards which are sent back to you.

The blessing (or curse) of direct mail is that there are no set rules for form or content.

The task of deciding what your mailing should have as content, its design and its

message(s) is up to you. However, remember to attract the reader's attention with color

and creativity. Use clear, comfortable writing and make your appeal easy to respond.

And of course, coordinate the mailing with other advertising media if you are also using

them in the same campaign. It can significantly increase the potential return.

3.9 Specialty Advertising

"Giveaways" -- the pencils, pens, buttons, calendars and refrigerator magnets you see

everyday -- are called "Specialty Advertising" in the advertising business.

Chances are, you have some specialty advertising items right at your desk. Businesses

imprint their name on items and give them away (or sometimes sell them at very low

cost) in order that:

You notice their name enough times on the item to build "top-of-the-mind" awareness.

So when you need a restaurant, for instance, you think of their name first.

32

You appreciate the goodwill of the company giving you the item and eventually return

the favor by giving them some business.

These are both long-term advertising investments that can take months or years to turn

into actual sales.

First, select the best item that would tell your story most effectively. While an accountant

can give away an inexpensive calculator, the same item may not be ideal for a

hairdresser. A comb or brush might be more appropriate in that case.

Second, decide what you are going to say on the item. A company slogan? Address

directions? Since you have a relatively small area, you must be very concise and direct.

Third, figure out your method of distribution. Are you going to send them to each

customer through the mail? If so, how much will that cost? Will you have them in a big

bowl that says "take one"? Distribution is just as important to consider as buying the

item.

Just as there are many reputable specialty advertising professionals in your area, the

industry is notorious with a lot of high-pressure telephone and mail solicitors who often

give specialty advertising a bad name. Don't buy specialty advertising through the mail

without checking the quality and prices with trusted local representatives first. And,

buying specialty advertising over the telephone is not recommended at all.

Specialty advertising is a unique way to generate goodwill and put your name on items

that people remember. But don't do it unless you have an item and distribution plan that

will benefit your business.

Chapter 4 Research Methodology

4.1 Need of the Study

33

Consumer, in today’s marketplace has the opportunity to choose between several

available alternatives in almost every product category. With increasing competition,

changing consumer behavior advancement of technology, The need for advertising is

growing even more for the organizations to reach out to its customers in the best

possible way and build the long term relations with them. Advertising today is an

important item on the top management agenda. The foremost reason, of course, is the

increase in size of advertising expenditures. In many cases, advertising has become the

third, second, and in a few cases, the largest item in the corporate budget. Keener

competition, together with expanded plant capacity, has forced a greater reliance on

advertising to maintain or increase volume and profit.

Every business invests huge amount of time and money on its advertising but the

problem arises when it fails to deliver result. Some of the reason for it could be People

never accessed or viewed the advertisement, It did`nt left the impact it ought to, It was

too costly for the results achieved or message was no clear etc. Many of the problem

arises because of the wrong selection of the medium of advertising. Every medium has

its different communication style, reach, public acceptance, cost advantage, shelf life

etc. So as to understand that which characteristic of a particular medium suits best

according to the needs of the respective company.

The consumers have very definite ideas about the media and their advertising content.

They believe for example that newspapers are the best source of shopping information,

the best source of information about sources of entertainment and that they contain the

most useful advertisements of the four media included in this study. They also feel that

newspaper advertisements are the most truthful and informative, and would be least

willing to give up the advertising content of the newspaper when compared to the other

media.

When it comes to television People indicates that it spends the greatest amount of its

media time with television, and that television is their first choice for entertainment and

for world and national news. While people feels that television advertising is the most

annoying, insulting, misleading and most in need of government regulation, they also

feel it is the most entertaining and the best source of new product news.

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Radio and magazines appear to hold a very secondary position in the mind of the

consumer vis-à-vis television and newspapers. While people indicates that magazines

are the medium they spend the least amount of time with, and the medium they could

"do without," they are also the medium which provides the best source of information on

durable goods in their opinion.

Thus, the goal of the study is to understand how the right choice of media can actually

help in getting maximum possible benefits from advertising. Every medium of advertising

carries its own respective benefit, its own set of loyal audience and its own different chief

characteristics. Thus, at some point of times companies have no available criteria, to

judge, which medium would be most effective to solve their required purpose than

budget as a consideration. The particular study aims to understand every aspect of the

different medium and correlate it with various needs of the business.

4.2 Objectives of the Study

The research is done from two perspectives that are from the company perspective as

well as the consumer perspective.

The prime objective of the study from the business perspective are stated as follow

1) To understand advertising for businesses.

2) To understand and explore different available mediums of advertising for

businesses.

3) To understand the primary objectives and needs for advertising of various

businesses (w.r.t. select industries).

4) To understand the Suitability of various Advertising mediums for different Product

and industry levels.

5) To correlate the effectiveness of various advertisements with the choice of

medium used.

35

Besides the above objectives, the second part of the research involved on getting

acquainted with the consumer behavior with respect to various mediums of advertising.

The objectives are stated as follow:

1) Attitude of people to advertising on various mediums in northern region of India.

2) To understand which respective segment of people is affected more by which

medium of marketing.

4.3 Research Methodology

Research methods are used to provide a systematic approach to research and helps in

ordering the data collected in order to be to analyze it and conclude whether it answered

a particular question or not. There are basically, two types of researches, Primary

research and secondary research. We have used both the researches in our study. Our

primary research supports the knowledge and curiosity behind our secondary research.

A) Secondary Research: Secondary research was needed in the study, so as to

understand all the previous researches, studies, and derivation in the above field

of media comparisons for advertising. In our secondary research, we studied

various research papers of multiple authors and publications to get the larger

picture of the situation. Our secondary research is cited in various places in the

research paper. The basic purpose of the secondary research is to back up the

actions behind the primary research with the knowledge.

B) Primary Research: Primary research was carried out using various research

tools. Primary research carried various interviews, and questionnaires. It was

basically taken from two perspectives, One was the company perspective and

the other was the consumer perspective.

4.4 Research Method: Company Perspective

36

The purpose of the research was to understand the advertising needs of different

companies like what are there expectations from advertising, do they understand the

importance of selecting the right medium for advertising etc. So that after advertising

needs of the businesses are known, on the basis of our secondary research and the

primary research with consumers, the suitability of advertising medium could be

analyzed with respective need of the company. As in, Every business is at a different

phase of growth from start up to growth to maturity and thus be having different

advertising needs like ROI or image building etc.To understand which respective need is

met by which particular medium of advertising

4.4.1 Sample Frame

The diverse set of 8 to 10 companies was interviewed from different industrial sector for

the said research. Companies from different phases of growth from start-up to growing

to mature organisations were interviewed for the research. Companies having diverse

business needs from sales, ROI, relationship building, brand building, Information

Providing etc so as to get the clear picture as to what are the needs of the diverse set of

organisations.

4.4.2 Method of Research

There are generally two types of research methods, quantitative and qualitative. These

methods can be used together or separately, one should choose the method most

appropriate to the purpose of the thesis (Cantzler, 1992). The two approaches mainly

differ in how to collect and analyze data. Quantitative method is focusing on statistical

instruments and how to prove relations between different variables Furthermore, it is

characterized by a large sample which is examined via forms, statistical methods and

analysis of the data. An advantage of quantitative research is the high degree of

objectivity and due to the large scope of observations it is possible to make

generalizations. Qualitative method on the other hand, means research that generates

descriptive data (Taylor & Bogdan, 1984). It is said that the qualitative method reflects

upon something and that the data collection in this method is focusing on so called “soft”

data. The purpose of the thesis is to get industry opinions and analyze them, Thus

Quantitative method was used.

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Following Research methods were used

• Questionnaires: The questionnaire was very important aspect of research work.

The questionnaire was constructed for the industry and company people, to get

their opinions, which could further be analyzed and could help further in findings

The type of questions used in the questionnaire were

- Demographic Question

- Multiple choice question with single choice

- Multiple choice question with multiple choice

- Single text box open ended questionnaire

• Interviews: Interviews are chosen to gather information, a good way for us to get

informed about the current situation. The interview help collecting data leading to

solve the purpose of the research In order to obtain a thorough understanding of

the organizations perspective of advertising in different medium, the authors

decided to interview one of the co-founders of the company. It is not simple to

define a qualitative research, as stated by Lekvall and Wahlbin (2001). A

qualitative approach should be focusing on relatively small samples and the

interviews should be low structured and be analyzed with verbal reasoning.

4.4.3 Research methodology

The questions to be asked from the industry people were keenly designed keeping in

mind all the possible situations and probability. These are stated as follow:

• To understand, whether the industry people actually realize the need of

advertising in their business. Whether it exists or no.

• To understand, how do they see advertising as a function of business. Whether it

is long term, image building or short term, profit driven.

38

• To understand, which phase of growth businesses are in like start up, growth,

maturity etc. So as to further correlate it with various other generalizations

• To understand, how much target specific businesses are in their approach

towards advertising.

• What medium of advertising is employed by the business according to their

needs and expectations? How apt that medium is in meeting the needs of the

business.

• How do they think, the required medium is helping businesses achieve their

target set of customers and are they satisfied with their current choice of medium.

• Who prompts them to a particular medium of advertising? Whether it is a higher

management decision or marketing department decided or it was some outside

agency.

4.5 Research Method: Consumer Perspective

The research with consumers was extremely important for this study. The relevance of

audience criteria to media comparisons hinges on the assumption that media

effectiveness is a function of the extent to which audiences possess characteristics

predictive of the future purchase of advertised items. Which further has various aspects

to it like likeliness towards a particular medium of entertainment, what builds more trust

inside a consumer, or what is most action focused etc. Thus a research was carried out

to study the behavioral aspects of consumers in context of their responses to various

medium of advertising.

4.5.1 Method of Research

The method used for the research was Questionnaires. For the purpose of said

research, three different questionnaires were designed having different objectives each.

The questions used in the questionnaire were

• Demographic Questions

39

• Multiple choice questions with one answer

• Multiple choice question with multiple answeres

• Rating scales

• Open ended, single textbox questions

4.5.2 Sample Frame:

The Sample frame for each questionnaire was 30. While getting the questionnaire filled,

keen interest was laid on maintaining the variability in the demographics of the

population, so as to get diverse opinion on the topic.

4.5.3 Research Methodology:

The research methodology for all the three questionnaires is stated as below:

Questionnaire 1:

The purpose of questionnaire 1 was to first understand which medium of entertainment

is most used by the people so as to get the information about, where the large chunk of

people could be located.

Secondly to get the direct consumer opinion on the choice of the following mediums of

advertising:

• Television

• Newspaper and Magazine

• Outdoor Advertising

• Radio

• Direct mail advertising

• Internet advertising

The consumer’s opinion on the above said, mediums of advertising were analyzed on

following factors:

• Enjoyment and Entertainment

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• Informational

• Action

• Trust

• Attitude

• Irritability

Questionnaire 2:

The said Questionnaire was used to get people’s opinions on different aspects of

advertising in different mediums, a little more in detail than the previous questionnaire.

Grilling them more on their opinions on the different mediums.

Questionnaire 3:

The aim of questionnaire 3 was to get the opinions of people on television as the

medium of advertising and the brand , That gets an edge over others on adverting on

television. As television is still the mass media of advertising in India.

Chapter 5 Analysis and Interpretations

41

5.1 Consumer Research Analysis

Consumer research analysis carries the analysis of all the research done upon

consumers, to get their opinions and map their behaviours with respect to advertising

and the different medium of advertisins. Every question asked had a purpose in mind,

which will be expleined in the analysis part with the results

5.1.1 Questionnaire 1 : Behavioural testing of consumers on different

Advertising Mediums

Televesion was the most viewed medium of entertainment for people, according to

them, followed by radio, newspaper, magazine and travelling.

In this survey, The study was conducted on all the following Advertising mediums:

• Television

• Newspaper

• Outdoor

• Radio

• Direct Mail

• Internet

In the study, the consumers were asked to rank these mediums on following factors on a

5 point likert scale

• Entertaining

• Informational

• Reference to purchase and Trustworthy

• Most Irritating.

The results of the people are shown and discussed as follows

A. Television Advertising

42

Strongly

Agree

Agree Neither

agree nor

disagree

Disagree Strongly

Disagree

Rating

Average

Entertaining 30% 30% 20% 10% 10% 2.40

Informational 5% 55% 20% 20% 0% 2.55

Reference to

Purchase

and

Trustworthy

0 % 10% 45% 40% 5% 3.40

Irritating 10% 30% 35% 25% 0% 2.75

Interpretations:

• According to people, as rating average of entertaining in television

advertising is minimum i.e. 2.40. Thus people find television to be most

entertaining from amongst everything

• Secondly, People find television advertising to be informational, i.e. they

get their information from television because it has got rating average of

2.55.

• After entertaining and informational, Television advertising was found to

be Irritational because it got the rating avg of 2.75.

• Lastly fourth rank was given to Advertising as a refernce to purchase.

The above opinion shown says, People may found Television advertising to be

entertaining or informational. But they still don`t consider it as an reference to purchase.

Thus, From above opinions, It could be said that Television advertising should be kept

by the company in its marketing campaign to keep the people interested in the brand not

to make people purchase any product

As in the Polling of most favoured medium of entertainment, television tops the charts.

Thus, both research says Company should advetise in television to create a good brand

image, but should not expect much sales from it.

B. Newspaper and Magazine

43

Strongly

Agree

Agree Neither

agree nor

disagree

Disagree Strongly

Disagree

Rating

Average

Entertaining 20% 35% 30% 15% 0 2.40

Informational 20% 50% 25% 5% 0 2.15

Reference to

Purchase

and

Trustworthy

10% 35% 25% 25% 5 2.80

Irritating 0% 10% 45% 45% 0 3.35

Interpretations:

• People found Newspaper and magazine advertising as the most informational

advertising, as the rating average for it is lowest that is 2.15

• Followed by informational, Newspaper advertising was found to be entertaing

by the people followed by the rating of 2.40

• After informational and entertaining, Newspaper and magazine advertising

was also found to be a rference to purchase and trustworthy.

• People found newspaper and magazine adeverting to be least irritating.

Newspaper and magazine advertising have perfect composition of all the components. It

is least irritating, as consumer will only be seeing it, if he wants to. It is even found to be

most informational medium and complete information further generates trust amongst

the minds of consumers.

Thus, Newspaper and magazine advertising should never be left from the comapny`s

advertising campaign as it is found to be a reference to purchase and a trustworthy

medium.

C. Outdoor Advertising

Strongly

Agree

Agree Neither

agree nor

Disagree Strongly

Disagree

Rating

Average

44

disagreeEntertaining 21.1% 63.2% 15.8% 0% 0% 1.95

Informational 5.3% 42.1% 26.3% 26.3% 0% 2.74

Reference to

Purchase

and

Trustworthy

0% 31.6% 31.6% 31.6% 5.3% 3.11

Irritating 0% 5.3% 47.4% 47.4% 0% 3.42

Interpretations:

• Outdoor Advertising was found to be the most entertaining by the people from

amongst all other characterstics, as it got the least rating average i.e. 1.95

• There after, with the rating average of 2.74, outdoor advertising was also

found to be informational after entertaining

• After entertainng and informational, people ranked outdoor advertising as a

refernce to purchase and trustworthy, Take the example of outdoor ads of

various TV serials, it motivates the trials amongst the users.

• Outdoor advertising, as like newspaper and magazine advertising was found

to be least irritating.

Thus outdoor advertising can be used for initiating first time trials among the users.

D. Radio

Strongly

Agree

Agree Neither

agree nor

disagree

Disagree Strongly

Disagree

Rating

Average

Entertaining 10% 35% 15% 20% 20% 3.05

Informational 5% 35% 25% 15% 20% 3.10

45

Reference to

Purchase

and

Trustworthy

0% 10% 50% 25% 15% 3.45

Irritating 5% 10% 45% 25% 15% 3.35

Interpretations:

• Radio advertisements from amongst all the characterstics, was found to be

more entertaing with the rating average of 3.05. But if the rating average of

entertainig in radio advertisements is compared with all other medium, It is

highest. That shows Radio is found least entertaing, if compared to any other

medium.

• Follwed by entrtaining, Radio ads was found to be informational

• Reference to Purchase came third in consumer opinion with the rating

average of 3.45

• Lastly came irritating with the average of 3.35

Radio Ads has the highest rating average from amongst all other mediums.That

shows the least popularity of radio ads from amongst alll other mediums. People

like listening to the radio ads the least.

E. Direct Mail Advertising

Strongly

Agree

Agree Neither

agree nor

disagree

Disagree Strongly

Disagree

Rating

Average

Entertaining 25% 10% 30% 25% 10% 2.85

46

Informational 15% 30% 25% 25% 5% 2.75

Reference to

Purchase

and

Trustworthy

5% 10% 40% 35% 10% 3.35

Irritating 20% 15% 35 20% 10% 2.85

Interpretations:

• Direct mail advertising from amongst all the characterstics was found to be

most informational with rating avarage of 2.75. Direct advertising is

informational as the prime purpose of iit is to provide informationa and build

relations.

• Followed, by informational, people found it entertaing with the rating average

of 2.85

• People also find it less irritating, with the rating avarage of 3.85. As this is the

only medium of advertising, accessing which is completely in your hands.

F. Internet Advertising

Strongly

Agree

Agree Neither

agree nor

disagree

Disagree Strongly

Disagree

Rating

Average

Entertaining 15% 25% 40% 20% 0% 2.65

Informational 15% 60% 15% 10% 0% 2.20

47

Reference to

Purchase

and

Trustworthy

10% 20% 40% 20% 0% 2.80

Irritating 5% 25% 50% 25% 5% 3.00

Interpretations:

From amongst all the characterstics, Internet advertising was found to be most

informational, with rating average of 2.20. Followed by entertaining, It was found to be

informational with the rating average of 2.65. Thereafter as a reference to purchase and

tustworthy with the rating average of 2.80. Lastly it was found to be irritational with the

rating average of 3.00.

Summary of Questionnaire 1:

Combined rating average scale for all mediums

Television

Advertising

Newspaper

and

Magazine

Outdoor

Advertising

Radio

Advertising

Direct Mail

Advertising

Internet

Advertising

48

AdevertisingEntertaining 2.40 2.40 1.95 3.05 2.85 2.65

Informational 2.55 2.15 2.74 3.10 2.75 2.20

Reference to

Purchase and

Trustworthy

3.40 2.80 3.11 3.45 3.35 2.80

Irritating 2.75 3.35 3.42 3.35 2.85 3.00

Interpretations:

1) The list of all the mediums is given, compared to be as most entertaining to

least entertaining as surveyed according to the research

Outdoor Advertising 1.95 ------ Most

Entertaining

Television Advertising 2.40Newspaper and magazine

Advertisng

2.40

Internet Advertising 2.65Direct Mail Advertising 2.85Radio Advertising 3.05 ------- Least

Entertaining

2) The list of all the mediums is given, compared to be as most informational to

least informational as surveyed according to the research

Newspaper and magazine

Advertisng 2.15

------Most Informational

Internet Advertising 2.20

Television 2.552.74

49

Outdoor Advertising Direct mail advertising 2.75 Radio Advertising 3.10 ------- Least Entertaining

3) The list of all the mediums is given, compared to be as most trustworthy to

least trustworthy as surveyed according to the research

Newspaper and Magazine

advertising

2.80 ------ Most Trustworthy

Internet Advertising 2.80 Outdoor Advertising 3.11Direct mail Advertising 3.35

TV Advertising

3.40

Radio Advertising 3.45 ----- Least Trustworthy

4) The list of all the mediums is given, compared to be as most irritating to least

irritating as surveyed according to the research

Television Advertising 2.75 ------Most Irritating

Direct mail Advertising 2.85 Internet Advertising 3.00

Newspaper and magazine

advertising

3.35

Radio Advertising

3.35

Outdoor Advertising 3.42 ------ Least Irritating

5.1.2 Questionnaire 2 : Behavioural testing of consumers on different

Advertising Mediums -2

50

The purpose of this Questionnaire was to further understand consumer behaviour with

regard to different advertising medium after understanding it through questionnaire 1.

Question 1 How frequently you are in your news paper or magazine reading

habits?

Interpretations:

The above question was asked to understand the newspaper and magazine reading

habbits of people. So as to see, How much people are accessible towards, newspaper

as a medium of entertainment

• Very few people read more than 2 newspapers a day

• Where as 20% plus people read 3 newspapers and some magazines in a day.

• Larger chunk of people i.e. near to 70% people read single newspapers and few

magazines in a day

• Wheress there are still people who never read magazines and newspapers and

that number is less than 10 %

Question 2 Did advertisements in newspaper and magazine, grab your

attentions?

51

Public Opinion

01020304050607080

Read more than 2newspapers andmany magazines

Read 2newspapers andsome magazines

Read singlenewspapers andfew magazines

Don`t readnewspapers and

magazines

Newspaperand Magazines Reading Habbits

Public Opinion

Public Opinion

010203040506070

Yes, Paykeen attention

Sometimes, Ifthey arecatchy

Rarely Never

How sucessful are newspaper and magazine in catching attention on Ads

Public Opinion

Interpretations:

After understanding the reading habbits of newspapers and magazines by the people

and understanding how much people are accessible to a particular advertising medium.

It was understood that, wheteher these advertisements grab the attention of people or

not.

According to the reasearch,

• Near to 25% of people said yes, newspaper advertising grab their attention.

• And 60 % of people said, Sometimes newspaper avertising grab their attention, if

they are too catchy. Thus major part of people were on the positive side of

newspaper grabbing their attentions

• And very few people said that, newspaper advertising rarely or never grab their

attention. That is, the number was near to 15%.

Thus, On a positive note most of the newspaper advertising grab people`s attention.

Besides Newspaper advertising being informational and entertaining according to

the previous research.

Hence, Newspaper stands a fair chance in people`s eyes. For it being taking

people`s attention and also being an informational and entertaining medium of

advertising.

Question 3 According to you, Had your purchase decision ever depended on

the Ads you saw in the newspapers or magazines?

52

Interpretations:

After studying the accessibility and attention grabbing of newspapers, it was studied that

whether all this leads to purchase or not. That is whether the people’s purchase decision

depends on the add they see in newspaper or not.

The result is still on the positive sides as more than 80% of people says that Yes and

sometimes their purchase decision depends on the Ads being seen by them in television

and newspaper magazines

Question 4 How frequently you listen to Radio in a day?

53

Public Opinion

01020304050607080

Yes, Always Sometimes, Ifthey arecatchy

Rarely Never

Had your purchase decision ever depended on Ads seen in newspaper or magazines

Public Opinion

Public Opinion

01020

30405060

7080

Whole day Sometimesin a day

Rarely in aday

Never

How frequently you listen radio in a day

Public Opinion

Interpretations:

The above question was asked to see, how frequently does a person listens to radio in a

day. So as to see, How much are they accessible to radio advertisements in a day.

Before judging what impact they leave on people, it was to be seen How much people

are into it.

The research shows,

• Very few people listen to Radio the whole day.

• But major part of people i.e. 90% listens to radio, sometimes in a day or rarely in

a day. But the best part is that people listen to it at some point of the day, which

shows, they are accessible to radio in a day.

• Very few people said, they never listen to radio in a day i.e. Less than 10 %.

Thus majority of people listen to radio at some point of the day and are accessible to

radio advertisements.

Question 5 Which of the following motives in Radio Advertisements generate

most trust in your minds and leads to actions?

54

05

101520253035

Ads providinginformations

EntertaningAds

PromotionalAds

Ads havingschemes and

offers

Which of the following motives in Radio Advertisements generates most trust in your minds and leads to actions?

Public Opinion

Interpretations:

After seeing, how much people are accessible to radio ads, the next part of the research

was to see, which type of radio ads leaves more trust in the minds of the people.

• Most of the people opted promotional ads as the factor that generates most trust

in their mind. The number was 30%.

• Rest, there was equal poling of 22.5% for all other types of ads i.e. Ads providing

information, entertaining ads and ads having schemes and offers.

This shows that radio ads, can digest a lot of diversity in it. And different people have

different taste for radio ads. And most of which generates trust in their minds.

Question 6 Does your opinion improves on a particular brand on seeing it

advertised frequently at outdoor locations like metro’s or billboard

advertisements etc.?

Interpretations:

55

05

101520253035404550

Yes, i

t has

Somet

imes,

it do

Rarely,

It d

oes

Never

Does your opinion improves on a particular brand on seeing it advertised frequently at outdoor locations like metro`s or

billboard advertisements etc?

Public Opinion

Public Opinion

The purpose of above question was to understand from the people, how effective it is to

advertise in Outdoor ads, and whether it solves the purpose, it is for or not.

Thus people were asked to tell, whether their opinion improves on a particular brand on

seeing it advertised again and again at outdoor locations or not. The research shows:

• More than 20% of people said that, yes their opinion has changed on a particular

brand on seeing it advertised again and again at outdoor locations.

• Near to 45% people said that, sometimes their opinion changes on seeing a

particular brand being advertised again and again at outdoor locations.

• Near to 22.5 people said that their opinion has rarely changed on seeing a

particular brand again and again being advertised on outdoor locations.

• Less than 10% person said that their opinion has never changed.

On a positive note, More than 60% of people were on the side that their opinion has ever

changed on seeing a particular brand again and again being advertised on outdoor

locations like metro o billboard advertising.

Question 7 According to you, from the following characteristics, what

leaves most impact on you with respect of direct mailer received as

advertisements?

56

Public Opinion

010

2030

4050

Info

rmat

iona

l

Bra

ndB

uild

ing

Pur

chas

e(A

ctio

n)

Rel

atio

nshi

pB

uild

ing

what is most impactful on you with respect of direct mailer received as advertisements ?

Public Opinion

Interpretations:

The above question was asked to see, On what aspect, Direct mail leaves most effect

on people. So as to analyze, what purpose of advertising could be best solved by the

direct mailer advertising. The research shows:

• More than 40% of people said they see direct mail advertising as more of brand

building. Thus, according to them, brand of a company builds well through direct

mailer advertising.

• Secondly, Near to 40% of people said, Direct mailer advertising builds their

relation with the brand on a positive note.

• More than 10% people said that they see direct mailer advertising as more of

informational. That is it provides them the information they needs.

• Very few or no people said that, direct mailer advertisements leads them to

purchase of the good.

Question 8 According to you, which of the following medium of advertising,

displays its message perfectly without wasting your time?

57

Public Opinion

05

101520253035

Tel

evis

ion

New

spap

ers

Mag

azin

es

Inte

rnet

Dire

ct M

ail

Out

door

Adv

ertis

emen

t

Rad

io

which of the above medium of advertising, displays its message perfectly without wasting your time

Public Opinion

Interpretations:

Last question was to see, which medium according to people conveys its message

perfectly to them without wasting their time. To which results are as follows:

• Maximum people, I.e. near to 30% of people said that, Newspaper is the medium

that conveys its message to them without wasting their time.

• Followed by television, near to 21 % people opted television as medium of

advertising that conveys its message perfectly to people.

• Internet and advertising were more or less on same stand in people’s eye as

medium of advertising that conveys its message perfectly.

• Thereafter coming radio advertisements being conveying it message perfectly at

11%

• Lastly people opted for direct mailer and magazines. The choice here is less

because not every one has access to these mediums of advertising.

Varity in people’s choice in the medium of choice of advertising that conveys its

message perfectly without wasting their time, shows differences in people’s taste and

choices.

5.1.3 Questionnaire 3 Behavioral Testing on television Advertising

As, Television is still a mass media of entertainment in India and one of the best way to

advertise your company and brand. Thus we decided, to study consumer behavior on

television as medium of entertainment and advertising.

Question 1 Name the first brand and product category that comes to your

mind on listening of Television Advertising?

Interpretations:

The purpose of above question was to see

• Which brand or product comes to their mind first, when they hear of TV

Advertising.

58

• What type of company or products are best to be advertised on TV, as people

remembers them first, when it comes to television advertising

Some of the responses of people are shown as follows:

• Clear winner in the category was Vodafone, which got more than 5 votes from the

people and some even specified the zoo zoo campaign of Vodafone.

Some other brands selected were:

• Nokia

• LG

• Amway we are listening

• Volkswagen

• Mobile Phone

• Volkswagen

• Minto fresh

• Hindustan lever, bath soaps

• Lux

• Cadbury Dairy milk

Above were some of the brands that people remembered first on the mention of

television advertising

Some of the interpretations from the above

• There are no service brands on the list.

• Almost all are the consumer goods.

• Vodafone was a clear winner because of its quality of ads and the message

conveying.

• These are some of the ads that has build their relations with mass public through

the use of this mass media i.e. television.

59

Question 2 Suggest the names of 5 such brands or products whose buying

decisions were based on you’re watching its television advertisement?

Interpretations:

The above question was asked, so as to study, on seeing which product’s

advertisements on television does the people feel motivated to buy it.

Which product categories are most success full to be advertised on Television

Lets have a look on some of the answers:

• First choice options:

Nokia, LG, Amway, Maruti, Mobile, Vodafone, Bingo, Airtel, Sanitary napkins,

Toothpaste, Maaza HUL

• Second choice options:

Coke, Hero Honda, Tata Docomo, Airtel, Durable goods, Tide, Beauty Products, Sharp

Television, LG, Hair oil, Soap, Kurkure, ITC

• Third choice options:

Big Bazaar, Samsung, Tata indica, Tide, Airtel, Cell phones, Samsung, Television, Veet,

Britania.

• Fourth Choice options:

Dairy milk, Nokia, Tata salt, Fair and lovely, Nokia, Tata Docomo, Sony, Clothes, Olay,

Fortune

• Fifth Choice Options:

Samsung, Spykar, Clinic plus, Tata Tea, Naukri.com, Dabur, Food Products, pp

jewelers, Cadbury.

Some analysis on the choices of people:

60

• Most of the categories of purchased goods were, Consumer goods, FMCG,

Electronics, Mobile Phones, Cosmetics etc.

• Mobile phones like Samsung and Nokia and mobile services providers like Airtel,

Tata Docomo were selected by many people.

• Advertising Cosmetics and Hygiene brands also leads to their purchases.

• Food products advertisements also lead to their purchases.

• All products are established brands; there is no new brand or company in the list

except bingo.

Question 3 Do you like watching advertisements while viewing television?

Interpretations:

Next question was to understand the television watching habits of people. After

understanding how much they watch television, it is understood that how much they

watch advertisements on televisions.

61

Public Choice

05

10152025303540

EnjoyWatchingTV Adssame as

TV shows

Enjoywatchingads in themiddle ofshows

WatchAds due

tolaziness

Rarelywatch TV

Ads

NeverWatch TV

Ads

Likeliness towards watching TV Ads

Pu

bli

c C

ho

ice

Public Choice

The Answers to the above survey are shown as follows:

• Near to 35% of people enjoy watching television Ads same as TV show,

surprisingly that is a good amount of number.

• More than 25% people said, they enjoy watching Television ads in the middle of

the shows.

• Where as near to 20% of people said that they rarely watch TV Ads.

• And Lastly, Again near to 20% people said that they never watch Televisions

Ads.

The Positive part was that near to 60% people surveyed enjoy watching Television Ads.

Question4 Do you tentatively watch television advertisement for making

your purchasing decisions or just have to watch for any random reason?

Interpretations:

62

Public Choice

0102030405060

Ten

tativ

ely

Wat

ch

Wat

chO

ccas

iona

lly

Wat

ch R

arel

y

Nev

er W

atch

TV

Ads

Watching TV ads to make purchases

Pu

bli

c C

ho

ice

Public Choice

The above question was asked how action oriented a television advertisement can

become. To which level can television advertising can become a reference of purchase

for people. The answers to the survey are shown as follows:

• Only 10% of people tentatively watch television advertising for making their

purchase decision. But that is also a good number because, its leading to sales.

• More than 50% people said, they watch television advertising occasionally to

make their purchase decision.

• Near to 30% people said, they rarely watch television advertising to make their

purchase decision.

• And, 10% of people never watch television advertising to make their purchase

decision.

On a positive note, near to 60% of people watch television advertising to make their

purchase decision. And a small number of 10 % never watch television advertising to

make their purchase decision.

Question 5 Please tick, which category of products is most trustworthy

to buy after watching television Advertisements?

Interpretation:

63

Public Choice

05

1015202530

FMCG Goods HomeElectronic

Goods

Beauty andHygieneProducts

Variousservice

providers (likehotels andFlights)

Others

Most trustworthy category of product to prurchase after watching TV Ads

Public Choice

The above question was asked to see, which category of product is most trustworthy to

buy after watching television ads. The results are displayed as follows:

• Maximum number of people i.e. More than 25 % of people selected both Home

electronic goods and Beauty and Hygiene products. The result is in match with

the brands selected in the first question, i.e. what products have they purchased

influenced by television advertising. In that research also, product felt in same

category.

• Topping the chart second is FMCG goods by 18%. Same results were displayed

when people were asked to select the brands they have purchased based on

watching television Ads.

• Next, People opted for various service providers like hotels Flights etc.

Question 6 Which of the following motives in TV Advertisements generates

most trust in your minds and leads to actions?

Interpretations:

The question was asked to see what characteristic in ads provides most trust in the

minds of people when it comes to actions. The results of the research are shown as

follows:

64

0

10

20

30

40

50

60

Ads providinginformation

Entertainingads

PromotionalAds

Ads with starpresence

Ads havinschemes and

offers

Motives of TV Ads generating most trust among people

Public choice

• Surprisingly more than 50% of people opted for Ads providing information,

creates most trust in their minds and leads them to actions. Information leads to

credibility and credibility leads to actions.

• After the ads providing information, People opted for entertaining ads by 28 %

that creates most trust in their minds and leads to actions.

• Promotion ads and ads having schemes and offers were ranked after them with

an equal number of 10%.

The research shows, that it is very important for companies to convince consumers with

information so as to bring the company increased sales. And it is also very important to

never to leave the entertaining factor, so that people feel attracted to view it.

5.2 Company research Analysis

Company research analysis carries the analysis of all the research done upon

companies, to get their opinions and map their responses with respect to advertising and

the different medium of advertisins. Every question asked had a purpose in mind, which

will be expleined in the analysis part with the results.

There were 5 companies interviewed for this research, which are named as follow:

1) Mirror Impact

2) Cosmic Aluminium

3) SRC Infotech Pvt. Ltd.

4) Ebiz.com Pvt ltd.

5) Platowise

The result of the research followes:

Question 1 Do you think there is a need for advertising in your business?

65

0%5%

10%15%20%25%30%35%40%45%

Yes, AbsolutelyAll year round

Sometimes, Goaldriven

May be, wheneverspecifically

needed

Never

Do you think there is a need for advertising in your business

Response

Interpretations:

The purpose of above question was to ask, how the companies understands the need of

advertising in their business. Every business has different advertising needs, Some view

advertising as a long term business function, while some see it as a short term business

function caring just for the return on investment.

The purpose to understand this is as follows:

• To compare how business at different phases of growth, looks at advertising as a

function of business, whether its long term or short term.

• According to their preferences, which mediums of advertising are they employing

in their growth strategies?

The responses from the company in the research say:

• Majority of company i.e. near to 40% said, they need advertising in their business

all year round, which is a way positive response from the industry.

• 20% of people said, they go for advertising sometimes and it is mostly goal

driven.

• 20% of people opted that they may need advertising in their business whenever

specifically needed.

66

• Finally, 20% of company said that they never need advertising in their business.

The particular responses are based on the different needs of companies.

Question 2 Which Phase, would you currently place your business in?

Interpretations:

The above question was asked to understand, that where the companies being

interviewed stand in their phases of growth. The responses to the survey are stated as

follows:

67

0%5%

10%15%20%25%30%35%40%45%

Start Up GrowingOrganisations

Mature but stillgrowing

organisations

MatureOrganisations

Which Phase, would you currently place your business in?

Response

• Majority of company i.e. 40% interviewed were growing organizations.

• Rest, there was being kept an equal proportion of diversity in interviewing the

companies i.e. 20% of the companies were startups, Further 20% were Mature

but still growing organizations. Last but not the least, 20% of the organizations

were mature organizations.

Thus a good amount of diversity was being kept in interviewing organizations, to get the

diverse and multiple opinions of the company.

Question 3 How do you see advertising as a function of business?

Interpretations:

The said question was asked to understand company’s behavior on how they see

advertising as a function of business.

68

0%10%20%30%40%

50%60%70%80%90%

Short termProfit making

and ROI

Long term,Brand building

Communiationand relation

building

InformationDriven

How do you see advertising as a function of business?

Response

The purpose of the above questions was as follows:

• To understand, how businesses take advertising as a function of business.

• Do they understand the value of long term advertising in the business. Or they

would just go for the increased ROI.

• How much importance business gives to providing information to consumers and

building relations with them?

The sum of responses exceeds hundred percent because the questions were multiple

choice questions with an option to choose more than one answer.

The responses of the company to above questions were stated as follows:

• Majority of people i.e. more than 80% of people understand the value of long

term advertising and brand building in business.

• Whereas 40% of people understand the importance of information driven

advertising in business.

• Also, 40% of people understand the importance of communication and

relationship building during advertising.

The responses were satisfactory, as businesses, see their advertising in th right

perspectives to succeed well in longer terms.

Question 4 How target specific are you in your advertising?

69

0%5%

10%15%20%25%30%35%40%45%

Very targetspecific,

Advertising to onlyspecific set of

customers

Target specific butnot ignoring mass

audience

Mass audience,Not target specific

Never aconsideration

How target specific are you in your advertising?

Response

Interpretations:

The purpose of the above question was to understand, whether the business

understands the value target specific advertising in the business. The purpose of the

above question was to understand:

• Do they have a target driven advertising program or not.

• If the businesses are target specific, in that case, do they pay same attention to

the mass audience.

The responses to the above question are as follow:

We got mixed responses in this case. And a clear idea of different business needs and

different set of target customers and how they reach out to them.

• Responses from companies were pretty similar, 20 % of companies are very

target specific and were advertised to only specific set of customers.

• Other set of 20 % were very target specific but no ignoring mass audience.

• There after the other 20% were targeting mass audience and are not target

specific.

Question 5 What medium of advertising are you currently employing for your

business?

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0%10%20%30%40%50%60%70%

Television Newspaper Magazine Internet/online

Specialtyadvertising (like use ofimprinted,useful or

decorative

Outdoor

What medium of advertising are you currently employing for your business?

Response

Interpretations:

The purpose of the above question was to see, which mediums of advertising are being

employed by businesses.

The responses to above question were as follow:

• 60% of companies employed internet and online medium as a medium of

advertising. Internet is fast catching up as a medium of advertising among the

companies.

• 40% of companies selected magazine and online medium as the medium they

are currently employing in their business.

• 20% of the companies selected newspaper and specialty advertising as a

medium of advertising, they have employed in their business.

• Last but not the least only 10% of companies selected Television as a medium

they have employed in their business.

Question 6 Are you satisfied with the choice of your medium and Is it

meeting the objectives of your business?

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0%10%20%30%40%50%60%70%

Yes, It is Yes, Partially Yes, But Weare looking for

more betteroptions

No, Not Exatly No Comments

Are you satisfied with the choice of your medium and Is it meeting the objectives of your business?

Response

Interpretations:

The purpose of the above question was to understand, Are the businesses satisfied with

their choice of medium. Is it helping them achieve their business objectives or not.

The responses to the above question were as follows:

• 60% of people said, Yes, they are satisfied with the choice of their medium and it

is helping them to achieve their business objectives.

• 20% of companies said that, yes the medium employed is partially helping them

to achieve their business objectives.

• Finally, 20% of companies, decided to leave the question with no comments.

Question 7 Which objectives of business are being met by the medium of

your Choice.

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0%

10%

20%

30%

40%

50%

60%

70%

CreatingVisibility

Informationproviding

BrandRecall

RelationBuilding

Sales Competitiveedge

Which objectives of business are being met by the medium of your Choice.

Response

Interpretations:

The above question was asked to understand, which particular objective of business is

being solved by the medium of their choice. The responses to above question are as

follows:

• 60% of companies said that the medium of their choice help them in solving the

purpose of brand recall in their business.

• Other 40% selected, that medium of their choice help them in creating visibility for

their company.

• Sales, thereafter was selected by another 40% companies as the function being

solved by the medium of their choice.

• 20% of companies said that the medium of their choice help them in providing

information to their business.

• And, lastly, 20% of the companies selected that their medium helps them in

getting competitive edge in their business.

The sum total of all questions exceeds 100% because, question used here was multiple

choice question, with more than one option as answere.

Question 8 Who prompts you to a particular medium of advertising?

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0%5%

10%15%20%25%30%35%40%45%

HigherManagement

Decision

MarketingDepartment

decides

Depends onoutside

AdvertisingAgency.

Mutual Decision

Who prompts you to a particular medium of advertising? ( Please tick the option, that bets suits your opinion.

Response

Interpretations:

The purpose of above question was to see, in whose hands lies the decision to select

the right medium of advertising for the business. The responses to the above questions

are as follow:

• 40% of companies said that it is a mutual decision of the higher management and

marketing department.

• 20% of companies said that, it is a decision of higher management.

• For other 20% companies, the decision was of the marketing department of the

company.

• Finally, for 20% of company, the decision depends on some outside advertising

agency.

Chapter 6 Findings of the Study

In the analysis, we studied the opinions of people and industry on different advertising

mediums and further the role of all advertising mediums at different places, purposes

and function of business. Now, to sum up all the analysis with the finding of the study,

Let’s study the varied impact of different advertising mediums.

Varied impact of different advertising mediums:

• Television gives access as a medium of advertising to maximum number of

people and creates an own distinct image of the company. In fact, television

viewers are even more apt to fully “tune into” an advertisement. Television

advertising creates an own distinct image of the company. People on the other

hand also likes watchin television advertising. Television is a terrific medium for

image advertising. The visual action and audio allow viewers to feel involved with

television Last but not the least, Television advertising also acts as an important

factor in the purchase decion of the people. It works best for consumer goods,

FMCG, Electroni goods, Mobile phones etc.

• Newspaper advertising is one of the cheapest way to reach mass audience.

Moreover according to the research people feels, newspaper advertising is one of

those mediums where the message is delievered in one of the most effective

ways, without wasting the time of people. Newspaper, moreover also provides

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scope to companies to provide people with more information in advertising, which

further creates credibility. In any case, remember that newspapers are typically

scanned by the reader. Even, If an ad is seen at all, the headline will be glimpsed

and the copy could get ignored, but the notice may anyway come in.

• Magazines offer a slightly better opportunity to catch the reader’s attention.

Readers tend to peruse magazines more carefully than they do newspapers, and

because magazine ads are placed fewer per page, the competition for the

reader’s eye is reduced. But magazine ads cost more than newspaper ads.

Magazines are a great aid for B2b advertising and image building.

• Radio offers a dramatic improvement over “print” advertisements. The “listener”

is captive to the message unless they switch stations or turn the radio off. The

cost to reach the same amount of people that a print ad would reach, however, is

significantly higher. With music the message reaches better.

• Outdoor and transit advertisements are hard to avoid viewing. They increases

visibilty and people voted that, their opinion changes on a particular brand after

seeing it advertised again and again at outdoor locations. But, despite the high

visibility factor, no one spends any great amount of time reading them. They are

appropriate for very simple messages.

• Direct mail has the highest impact of any medium. Your message reaches each

recipient in a personalized way and at a moment they have chosen to consider

your message. The cost of reaching an individual through direct mail can be even

greater than television, making it the most expensive advertising medium per

person reached.

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Conclusion

The information in previous chapters brought forward in front of us various facts and

behaviors of the people, which we can use in any possible way. The above study is like

water, which can take any shape of knowledge and the any conclusions can be derived

from it based on the different needs of the people and companies. Our job was to

uncover various facts, which could be further shaped with any conclusions. Your needs

and requirements could be put in front and being matched with the facts stated in the

analysis and findings and your own conclusions can be derived, which could be further

put to use.

All mediums of advertising, have their different functions, cover different needs and have

different set of target audience. The needs of the business should be analyzed first and

then the above information can be used to understand, which medium of advertising

could be best for any business.

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Annexure

Consumer Questionnaire 1

__________________________________________

Behavioural testing on different advertising medium

1. Please provide us small detail of yourself

Please provide us small detail of yourself Name:

Address 1:

Address 2:

City/Town:

State/Province:

Email Address:

2. Please Tick the medium on entertainment, that is most used by you?

Please Tick the medium on entertainment, that is most used by you? a) Television b) Radio c) Newspaper d) Magazine e) Traveling

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3. Television Advertising ( Please add your opinion on the respective options)

Strongly Agree

AgreeNeither Agree nor Disagree

Disagree Strongly Disagree

a) I enjoy watching TV Ads. They are entertaining

b) TV advertisements provides information, I need

c) I find TV advertising as a reference to purchase and i trust them

d) TV advertising irritates me the most.

4. Newspaper and magazine advertising ( Please add your opinion on the

respective options)

Strongly Agree

AgreeNeither Agree nor Disagree

Disagree Strongly Disagree

a) a) I enjoy watching Newspaper and magazine Adds. They are entertaining

b) Newspaper and magazine Ads provides information, I need

c) I find Newspaper and magazine ads as a reference to purchase and i trust them

d) Newspaper and magazine ads irritates me the most.

5. Outdoor Advertising ( Please add your opinion on the respective options)

Strongly Agree

AgreeNeither Agree nor Disagree

Disagree Strongly Disagree

a) I enjoy watching outdoor Ads. They are entertaining

b) Outdoor advertisements provides information, I need

c) I find Outdoor

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Strongly Agree

AgreeNeither Agree nor Disagree

Disagree Strongly Disagree

advertising as a reference to purchase and i trust themd) Outdoor advertising irritates me the most.

6. Radio ( Please add your opinion on the respective options)

Strongly Agree

AgreeNeither Agree nor Disagree

Disagree Strongly Disagree

a) I enjoy listening Radio Ads. They are entertaining

b) Radio advertisements provides information, I need

c) I find Radio advertising as a reference to purchase and i trust them

d) Radio advertising irritates me the most.

7. Direct mail Advertising (Please add your opinion on the respective options)

Strongly Agree

AgreeNeither Agree nor Disagree

Disagree Strongly Disagree

a) I enjoy direct mail Ads. They are entertaining

b) Direct mail advertisements provides information, I need

c) I find Direct mail advertising as a reference to purchase and i trust them

d) Direct mail advertising irritates me the most.

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8. Internet Advertising ( Please add your opinion on the respective options)

Strongly Agree

AgreeNeither Agree nor Disagree

Disagree Strongly Disagree

a) I enjoy Internet Ads. They are entertaining

b) Internet advertisements provides information, I need

c) I find Internet advertising as a reference to purchase and i trust them

d) Internet advertising irritates me the most.

Consumer Questionnaire 2

_______________________________________________

Behavioural Testing on Different advertising medium 2

1. Please provide small detail of yourself.

Name:

Address 1:

Address 2:

City/Town:

State/Province:

Email Address:

2. Please specify the age group you belong to:

10 to 17 18 to 28 28 to 40 40 to 60 60 and above

3. How frequently you are in your news paper or magazine reading habits?

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I read more than 2 newspaper in a day and many magazines in a month. I read two newspaper in a day and some magazines I read single newspaper in a day and very few magazines I Don`t read newspapers and magazines

4. Did advertisements in newspaper and magazine, grab your attentions?

Yes, I pay keen attention to advertisements in newspaper and magazine. Sometimes, If the ads are too catchy Rarely Never

5. According to you, Had your purchase decision ever depended on the Ads you saw in the newspapers or magazines?

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Yes, Always Sometimes Rarely Never

6. How frequently you listen to Radio in a day?

Whole Day Sometimes in a day Rarely in a day Never

7. Which of the following motives in Radio Advertisements generates most trust in your minds and leads to actions?

Advertisements providing information Entertaining Advertisements Promotional Advertisements Advertisements with star presence Advertisements having schemes and offers

8. Does your opinion improves on a particular brand on seeing it advertised frequently at outdoor locations like metro`s or billboard advertisements etc.?

Yes, it has Sometimes, It do Rarely, It does Never.

9. According to you, from the following characteristics, what is most impactful on you with respect of direct mailer received as advertisements ?

Informational Brand Building Purchase (Action) Relationship Building

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10. According to you, which of the following medium of advertising, displays its message perfectly without wasting your time?

Television Newspaper Magazines Internet Direct mail Outdoor advertisements Radio

Consumer Questionnaire 3

_____________________________________________

Behavioural Testing on television advertising

1. Please provide us small detail of Yourself.

Name:

Address 1:

Address 2:

City/Town:

State/Province:

Email Address:

2. Please specify the age group you belong to:

a) 10 to 17 b) 18 to 28 c) 28 to 40 d) 40 to 60 e) 60 and above

3. Name the first brand and product category that comes to your mind on listening of Television Advertising?

4. Suggest the names of 5 such brands or products whose buying decisions were based on your watching its television advertisement?

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1)

2)

3)

4)

5)

5. Do you like watching advertisements while viewing television?

a) I enjoy watching advertisements on TV as i like watching shows b) I enjoy seeing ads in the middle of shows c) I watch advertisements due to laziness of swapping channels d) I rarely watch TV ads e) I never watch TV ads

6. Do you tentatively watch television advertisement for making your purchasing decisions or just have to watch for any random reason?

a) Tentatively watch b) Watch occasionally c) Watch rarely d) Never watch

7. Please tick, which category of products is most trustworthy to buy after watching television Advertisements?

a) Insurance b) FMCG Goods (eatables) c) Home Electronic goods d) Medicines, beauty and Hygiene products e) Various Service Providers( like hotels, flight etc) f) Others

8. Which of the following motives in TV Advertisements generates most trust in your minds and leads to actions?

a) Advertisements providing information b) Entertaining Advertisements c) Promotional Advertisements d) Advertisements with star presence e) Advertisements having schemes and offersWe are Highly obliged to you for spending your valuable time and money!!!

Company Questionnaire 4

___________________________________________

Company perspective on Advertising

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1. Please provide small information of yourself.

Name:

Company:

Address 1:

City/Town:

State/Province:

Email Address:

2. Do you think there is a need for advertising in your business?

Absolutely, All year round Sometimes, Goal driven May be, whenever specifically needed Never

3. How do you see advertising as a function of business? ( Please tick the answer that best suits your opinion. you can select more than one option)

A. Short term, Profit making and ROI B. Long term, Brand building C. Communication and relation building D. Information driven.

4. Which Phase, would you currently place your business in?

Start up organisation Growing organisation Mature, but still growing organisation Mature Organisation No Comments

5. How target specific are you in your advertising?

Very target specific, Advertising to only specific set of customers Target specific but not ignoring mass audience Mass audience, Not target specific Never a consideration No commnets

6. What medium of advertising are you currently employing for your business? ( Please tick the option that best suits your opinion. You can select more than one option)

Television Newspaper Magazine Internet/ online Direct Mail ( Newsletters) Specialty advertising ( like use of imprinted, useful or decorative products like keychains etc.)

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Outdoor

7. Are you satisfied with the choice of your medium and Is it meeting the objectives of your business?

Yes, It is Yes, Partially Yes, But We are looking for more better options No, Not Exatly No Comments

8. How do you think, your choice of medium is helping your business to grow

9. Which objectives of business are being met by the medium of your Choice. (Please tick the answer that best suits your opinion. You can select more than one option)

Creating Visibility Information providing Relation Building Brand Recall Sales Competitive edge

10. Who prompts you to a particular medium of advertising? ( Please tick the option, that bets suits your opinion.You can select more than one option)

Higher Management Decision. Marketing Department decides. Depends on outside Advertising Agency. Mutual Decision No Comments

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Bibliography

Books

• Marketing Management by Philip Kotler

• Advertising Management by Rajiv Batra, John G. Myers.

Research papers

• Gerard J. Tellis, Marshall School of Business, University of Southern

California, Journal of advertising research, June 2009

• The Role of PR, Jönköping June 2005

• Elizabeth Marting, New Products, New Profits (New York: American

Management Association, 1964)

• Roger H. Bolin, cited in Russel H. Colley, Defining Advertising Goals for

Measured Advertising Results (New York: Association of National Advertisers,

1961), Foreword.)

• Journal of Marketing. Vol. 33, 1969).

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