33783488 Outdoor Advertizing in India[1]

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A STRW PROJECT ONOUTDOOR ADVERTISING IN INDIA

PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POSTGRADUATE DIPLOMA IN MANAGEMENT

(Approved by AICTE, Govt. of India)

(Equivalent to MBA)

ACADEMIC SESSION 2009-11

SUBMITTTED TO:- SUBMITTED BY:DR.TAPAN KUMAR NAYAK NIKHIL KUMAR GARG (BM-09123)AREA CHAIRPERSON, ECONOMICS. NIKHIL SINGH (BM-09124)

NIMISHA GUPTA (BM-09125)NITESH KUMAR (BM-09127)

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

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CERTIFICATE

This is to certify that Mr. Nikhil Kumar Garg(BM-09123), Mr. Nikhil Singh(BM-09124),Nimisha Gupta(BM-09125), Nitesh Kumar(BM-09127) have completed their project titled

Outdoor advertizing in India under my guidance with full honesty and integrity and submitted towards partial fulfillment of Post graduate diploma in management atIMSGhaziabad.

Dr. Tapan Kumar Nayak

(Area Chairperson of Economics)

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CANDIDATES DECLARATION

We hereby declare that the work which is being presented in the report entitled OUTDOORADVERTISING IN INDIA in partial fulfillment of the requirement of the award of the post graduatediploma in management and submitted in the INSTITUTE OF MANAGEMENT STUDIES,GHAZIABAD is an authentic record of our own work carried out during a period from Jan 18, 2010 toMarch 20, 2010 under the supervision of Dr. Tapan Kumar Nayak, Area chairpersonof EconomicsINSTITUTE OF MANAGEMENT STUDIES GHAZIABAD.

The matter presented in this report has not been submitted by us in the award of anyother degree or diploma of this or any other institute.

CANDIDATES NAME AND SIGNATURE :

NIKHIL KUMAR GARG(BM-09123)

NIKHIL SINGH (BM-09124)

NIMISHA GUPTA(BM-09125)

NITESH KUMAR(BM-09127)

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ACKNOWLEDGEMENT

No task whatever big or small can be completed without proper guidance andencouragement. It gives us a great pleasure to our deep sense of gratitudeand reverence to every person who created a congenial atmosphere forsuccessful completion of this project.

We would like to express our gratitude and profound thanks to Dr.TAPAN KUMAR NAYAK, AREA CHAIRPERSON, and faculty of Institute ofManagement Studies, Ghaziabad to give us a chance to get an industrialexposure.

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

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ABSTRACT

In India now a days, competition in every field of business is very high and companies are tryingto attract maximum number of customers. For this, companies are using various modes ofadvertizing and searching for newer ways which effect much more customer. This led to thedevelopment of various forms of advertizing and outdoor advertizing is one of them.

Purpose-In these papers, we are trying to study various medium of outdoor advertizing and alsovarious other types of advertizing and their effect on various customers to understand customersneed to attract more and more customers.

Method used-The primary as well as secondary data for the studies. For primary data, aquestionnaire has been prepared and customers having various perceptions were asked to fulfillit. Secondary data is collected from web resources and books. Various statistical tools likegraphical method and chi-square test for our research purpose and analysis of data has been used.

Findings-Various modes of advertizing are equally important and outdoor advertizing is one ofthem. It helps in boosting sales and attracting more and more customers and company must focuson outdoor advertizing as it can reach more and more number of peoples than other modes ofadvertizing.

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TABLE OF CONTENTS

S.No. TOPIC PAGE NO.1. Introduction 72. Justification of the study 93. Literature review 103. Research objectives 114. Advertizing basics 124.1 History of advertizing 124.2 Definition of advertizing 154.3 Importance of advertizing 185. Outdoor advertizing 205.1 Factors affecting outdoor advertizing 205.2 Kinds of outdoor advertizing 215.3 Classification and types of advertizing 305.4 Measuring advertizing effectiveness 385.5 Methods of measuring advertizing effectiveness 40

5.6 Communication effects of advertisement 445.7 Factors affecting advertizing 495.8 Impact of advertizing 496. Research methodology 557. Findings 718. Summary 729. Conclusion 7310. Recommendation 7411. Suggestions 7612. References 7713. Annexure 77

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INTRODUCTION

It has been wrongly assumed that the advertising function is of recent origin. Evidencessuggest that the Romans practiced advertising; but the earliest indication of its use in this countrydates back to the middle Ages, when the use of the surname indicated a man s occupation. Thenext stage in the evolution of advertising was the use of signs as a visual expression of thetradesman s function and a means of locating the source of goods. This method is still incommon use. The seller in primitive times relied upon his loud voice to attractattention andinform consumers of the availability of his services. If there were many competitors, he reliedupon his own personal magnetism to attract attention to his merchandise. Often it became

necessary for him to resort to persuasion to pinpoint the advantages of his products. Thus, theseller was doing the complete promotion job himself.

Development of retail stores, made the traders to be more concerned about attractingbusiness. Informing customers of the availability of supplies was highly important. Some typesof outside promotion were necessary. Signs on stores and in prominent places around the cityand notices in printed matters were sometimes used.

When customers were finally attracted to the store and satisfied with the service at leastonce, they were still subjected to competitive influences; therefore, the merchant s signs andadvertisements reminded customers of the continuing availability of his services. Sometimestraders would talk to present and former customers in the streets, or join social organizations inorder to have continuing contacts with present and potential customers.

As the markets grew larger and the number of customers increased, the importanceof

attracting them also grew. Increasing reliance was placed on advertising methodsof informing

about the availability of the products. These advertising methods were more economical inreaching large numbers of consumers. While these advertising methods were useful

forinforming and reminding and reminding, they could not do the whole promotional job. Theywere used only to reach each consumer personally. The merchant still used personal persuasiononce the customers were attracted to his store.

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The invention of hand press increased the potentialities of advertising. By Shakespeare stimes, posters had made their appearance, and assumed the function of fosteringdemand forexisting products. Another important event was the emergence of the pamphlet asan advertisingmedium. The early examples of these pamphlets disclose their sponsorship by companies want togenerate goodwill for their activities. The low cost of posters and handbills encouraged a numberof publishers to experiment with other methods.

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JUSTIFICATION

The present study has focused on effect of outdoor advertising on consumer perceptionand their attitude towards different products and services.

It has been observed through various researches, that the mode of advertising used likeprint media i.e. magazines and newspaper; electronic media i.e. television and radio; outdooradvertising i.e. billboards, hoardings, electronic displays plays an important role in determiningthe buying behavior of consumers .

Outdoor advertising has been focused and compared with the other types of mediatomake the comparison on the basis of effectiveness. Outdoor media is developing and taking

shape in best marketing promotion activities.Also studying the perception and consumer attitudes regarding different advertisingmedia will provide an insight to further future development.

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REVIEW OF LITERATURE

Kotler,(1994)-According to a research concentrating on the advertisers viewpoint,advertisement is an important tool which companies use to directly persuade buyers and public .Being a key element in the marketing process, advertisementsface many challenges in reaching the audience.Krugman, 1975-One of the main obstacles is the low audience involvement . Inmost forms of communication, the audience least make some effort to pay attention or appear tobe doing so. The adverts are meant for the audience to watch but unfortunately the audience islikely to take active steps in avoiding them. The advertiser therefore have problem of makingloomed perhaps generally evasive audience pay attention to what is going on or at least enough

to get basic selling message The challenge gets more difficult in a multiracialcountry such asMalaysia.Bonnex,(1975)-The existence of the advertisement rooted in Malaysia dated back to the 1971as claimed by in his thesis. His theory is even supported by the Honourable Minister Tan SriGazali s speech in 1971(Bernama, 1971). Advertising agencies fuel the basic needsof acompany to plan, strategise and introduce their product in the market. It is one

of the basis of thesupply chain and many advertising agencies are involved in this business in Malaysia.Aaker and Mayers, 1975 As known for decades, advertisement is one of the main strategies inmarketing either a product or service. It can be defined as An Advert that does not create abuying response, or at least produce a desire to want to know more is not an advert (Quinn,1985).Porter (1980). The value chain is a systematic approach in examining the development ofcompetitive advantage. It was introduced by one of the pioneer in the ICT and business industryPotter also explains the sources of cost reduction and differentiation within afirm. Potter treatsevery firm as a collection of activities carried out to develop, strategically market, deliver andmaintain its products or services.

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RESEARCH OBECTIVES

To study types of advertisements.

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

To study the perception of consumers towards the different modes ofadvertisement i.e. electronic media, print media and outdoor media.

To find the ways to make it more effective.11


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ADVERTISING BASICS

HISTORY OF ADVERTISEMENT

Archaeologists have found evidence of advertising dating back to the 3000s BC, amongthe Babylonians. One of the first known methods of advertising was the outdoor display1.Archaeologists have uncovered many such signs, notably in the ruins of ancient Rome andPompeii. An outdoor advertisement excavated in Rome offers property for rent, and one foundpainted on a wall in Pompeii calls the attention of travelers to a tavern situated in another town.

In medieval times word-of-mouth praise of products gave rise to a simple but eff

ectiveform of advertising, the use of so-called town criers. The criers were citizenswho read publicnotices aloud and were also employed by merchants to shout the praises of theirwares. Laterthey became familiar figures on the streets of colonial American settlements. The town crierswere forerunners of the modern announcer who delivers radio and television commercials.

Although graphic forms of advertising appeared early in history, printed advertising madelittle headway until the invention of the movable-type printing press by Germanprinter JohannesGutenberg about 1450. This invention made the mass distribution of posters and circularspossible. The first advertisement in English appeared in 1472 in the form of a handbillannouncing a prayer book for sale. Two hundred years later, the first newspaperad waspublished offering a reward for the return of 12 stolen horses. In the Americancolonies, theBoston News-Letter, the first regularly published newspaper in America, began carrying ads in1704, and about 25 years later Benjamin Franklin made ads more readable by using

largeheadlines.

In the United States, the advertising profession began in Philadelphia, Pennsylvania, in1841 when Volney B. Palmer set up shop as an advertising agent, the forerunner of theadvertising agency. Agents contracted with newspapers for large amounts of advertising space atdiscount rates and then resold the space to advertisers at a higher rate. The ads themselves werecreated by the advertisers. In 1869 Francis Ayer bought out Palmer and founded N. W. Ayer &

1 an eye-catching sign painted on the wall of a building


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Son, an agency that still exists today. Ayer transformed the standard agent practice by billingadvertisers exactly what he paid to publishers plus an agreed upon commission. Soon Ayer wasnot only selling space but was also conducting market research and writing the advertising copy.

Advertising agencies initially focused on print. But the introduction of radio created anew opportunity and by the end of the 1920s, advertising had established itselfin radio to suchan extent that advertisers were producing many of their own programs. The early1930s usheredin dozens of radio dramatic series that were known as soap operas because they were sponsoredby soap companies.

Television had been introduced in 1940, but because of the high cost of TV sets

and thelack of programming, it was not immediately embraced. As the American economy soared in the1950s, so did the sale of TV sets and the advertising that paid for the popularnew shows. SoonTV far surpassed radio as an advertising medium.

The tone of the advertising was also changing. No longer did advertising simplypresentthe product benefit. Instead it began to create a product image. Bill Bernbach,founder of DoyleDane Bernbach in New York City; Leo Burnett, founder of the Leo Burnett agency in Chicago,Illinois; and David Ogilvy, founder of Ogilvy & Mather in New York City, all came toprominence in the late 1950s and 1960s and led what has been called the 'creative revolution.'Bernbach's agency captured the spirit of the new age. Bernbach believed that advertising had tobe creative and artistic or it would bore people. He also believed that good advertising beganwith respect for the public's intelligence. The ads his agency created were understated,sophisticated, and witty.

For example, when Bernbach's agency picked up the account for the Henry S. LevyBakery in Brooklyn, a borough of New York City, the agency created an ad that entertained NewYorkers and provided fodder for many conversations. The ad showed a Native American eating aslice of the bakery's rye bread with the headline, 'You don't have to be Jewishto love Levy's.'But it was the advertising for Volkswagen that made the agency's reputation.

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At a time when American cars were getting bigger and bigger and the advertisingforthem trumpeted that bigger was better, Doyle Dane Bernbach created a magazine ad

that showeda small picture of the Volkswagen Beetle surrounded by a sea of white space with

the headline,'think small.' An equally unconventional ad carried the headline 'lemon' beneath

a photo of anapparently flawed Volkswagen. The ad's copy explained that 'this Volkswagen missed the boat.The chrome strip on the glove compartment is blemished and must be replaced We pluck thelemons; you get the plums.' In an era of hype and bombast, the Volkswagen ads stood outbecause they admitted failure in a witty way and gave facts in a believable manner thatunderlined the car's strengths. This wit together with a conversational and believable style was a

hallmark of the advertising created by Doyle Dane Bernbach and that style becamehighlyinfluential.

The creative foundation established by Bernbach and others has been critical tothesuccess of contemporary advertising. The introduction of the TV remote control and access tohundreds of cable channels mean that today advertising must interest and entertain consumers orelse they will simply use the remote to change the channel. New digital deviceseven threaten tomake it possible to edit out commercials. The development of interactive television, combiningthe functions of a computer with access to high-speed transmission over cable lines or opticalfibers, will likely enable consumers to select from a vast video library. Consumers will be able todetermine not only when they watch something, but also, to a greater extent than

ever before,what they will watch. Some industry observers believe that as consumers gain greater controlover their viewing activities, they will find it easier to avoid advertising.

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DEFINITION OF ADVERTISING

The word advertising originates from a Latin word advertise, which means to turnto. The

dictionary meaning of the term is to give public notice or to announce publicly .

Advertising may be defined as the process of buying sponsor-identified media space ortime in order to promote a product or an idea.The American Marketing Association, Chicago, has defined advertising as any formof non-personal presentation or promotion of ideas, goods or services, by an identified

sponsor.

What Advertisement Is?

Advertisement is a mass communicating of information intended to persuade buyersto by

products with a view to maximizing a company s profits.The elements of advertising are:

(i) It is a mass communication reaching a large group of consumers.(ii) It makes mass production possible.(iii) It is non-personal communication, for it is not delivered by an actual person, nor is itaddressed to a specific person.(iv) It is a commercial communication because it is used to help assure the advertiser of a longbusiness life with profitable sales.(v) Advertising can be economical, for it reaches large groups of people. This keeps the cost permessage low.(vi) The communication is speedy, permitting an advertiser to speak to millionsof buyers in amatter of a few hours.(vii) Advertising is identified communication. The advertiser signs his name tohis advertisementfor the purpose of publicizing his identity.15


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What is Included in Advertising?

(i) The information in an advertisement should benefit the buyers. It should give them a moresatisfactory expenditure of their rupees.(ii) It should suggest better solutions to their problems.(iii) The content of the advertisement is within the control of the advertiser,not the medium.(iv) Advertising without persuasion is ineffective. The advertisement that fails

to influenceanyone, either immediately or in the future, is a waste of money.(v) The function of advertising is to increase the profitable sales volume. That

is, advertisingexpenses should not increase disproportionately.Advertising includes the following forms of messages: The messages carried in.Newspapers and magazines;. On radio and television broadcasts;. Circular of all kinds, (whether distributed by mail, by person, thorough trade

smen, or byinserts in packages);. Dealer help materials,. Window display and counter display materials and efforts;. Store signs, motion pictures used for advertising,. Novelties bearing advertising messages and Signature of the advertiser,. Label stags and other literature accompanying the merchandise.

What is excluded from Advertising?

Advertising is not an exact science. An advertiser s circumstances are never identical with thoseof another; he cannot predict with accuracy what results his future advertisingefforts willproduce.

(i) Advertising is not a game, because if advertising is done properly, both thebuyer and the

seller benefit from it.(ii) Advertising is not a toy. Advertiser cannot afford to play with advertising. Advertising fundscome from sales revenue and must be used to increase sales revenue.(iii) Advertisements are not designed to deceive. The desire and hope for repeat

sales insures ahigh degree of honesty in advertising.16


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The activities excluded from advertising are:

. The offering of premiums to stimulate the sale of products;

. The use of exhibitions and demonstrations at fairs, show and conventions;

. The use of samples and activities, involving news releases and the activitiesof personalselling forces;. The payment of advertising allowances which are not used for advertising;. The entertainment of customers

Advertising Objectives

Each advertisement is a specific communication that must be effective, not justfor onecustomer, but for many target buyers. This means that specific objectives should

be set for eachparticular advertisement campaign. Advertising is a form of promotion and like a

promotion; theobjectives of advertising should be specific. This requires that the target consumers should bespecifically identified and that the effect which advertising is intended to have upon theconsumer should be clearly indicated. The objectives of advertising were traditionally stated interms of direct sales. Now, it is to view advertising as having communication objectives that seekto inform persuade and remind potential customers of the worth of the product. Advertisingseeks to condition the consumer so that he/she may have a favourable reaction to

the promotionalmessage. Advertising objectives serve as guidelines for the planning and implementation of theentire advertising programme.

The basic objectives of an advertising programme may be listed as below:

(i) To stimulate sales amongst present, former and future consumers. It involvesa decision

regarding the media, e.g., TV rather than print ;(ii) To communicate with consumers. This involves decision regarding copy ;(iii) To retain the loyalty of present and former consumers. Advertising may beused to reassurebuyers that they have made the best purchase, thus building loyalty to the brand

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(iv) To increase support. Advertising impliedly bolsters the morale of the salesforce and of

distributors, wholesalers, and retailers, ; it thus contributes to enthusiasts and confidence attitudein the organizational. :(v) To project an image. Advertising is used to promote an overall image of respect and trust foran organization. This message is aimed not only at consumers, but also at the government,shareholders, and the general public.IMPORTANCE OF ADVERTIZING

Generally, advertising is a relatively low-cost method of conveying selling messages tonumerous prospective customers. It can secure leads for salesmen and middlemen by convincingreaders to request more information and by identifying outlets handling the product. It can force

middlemen to stock the product by building consumer interest. It can help traindealers salesmenin product uses and applications. It can build dealer and consumer confidence in

the companyand its products by building familiarity. Advertising is to stimulate market demand. Whilesometimes advertising alone may succeed in achieving buyer acceptance, preference, or evendemand for the product, it is seldom solely relied upon. Advertising is efficiently used with atleast one other sales method, such as personal selling or point-of-purchase display, to directlymove customers to buying action.

Advertising has become increasingly important to business enterprises both largeandsmall. Outlay on advertising certainly is the voucher. Non-business enterpriseshave alsorecognized the importance of advertising. The attempt by army recruitment is bases on asubstantial advertising campaign, stressing the advantages of a military career.

The healthdepartment popularizes family planning through advertising Labour organizationshave also usedadvertising to make their viewpoints known to the public at large. Advertising assumes realeconomic importance too. Advertising strategies that increase the number of units sold stimulateeconomies in the production process. The production cost per unit of output is lowered. It in turnleads to lower prices. Lower consumer prices then allow these products to become

available tomore people. Similarly, the price of newspapers, professional sports, radio andTV programmes,and the like might be prohibitive without advertising.

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In short, advertising pays for many of the enjoyable entertainment and educationalaspects of contemporary life. Advertising has become an important factor in thecampaigns toachieve such societal-oriented objectives such as the discontinuance of smoking,

familyplanning, physical fitness, and the elimination of drug abuse. Though in India,advertising wasaccepted as a potent and recognized means of promotion only 25 years ago, its growingproductive capacity and output necessitates the finding of consumers and advertising plays animportant role in this process. Advertising helps to increase mass marketing while helping theconsumer to choose from amongst the variety of products offered for his selection. In India,advertising as a profession is in its infancy. Because of this fact, there is atremendous scope for

development so that it may be productively used for the benefit of producers, traders, consumers,and the country s economy.

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OUTDOOR ADVERTISING

Any advertising done outdoors that publicizes your business's products and services. Outdooradvertising includes various types of promotional displays, from highway billboards to transitposters and arena placement, all geared towards communicating a message to the public. Themessage might be to buy a product, take a trip, vote for a politician, or give to a charity. It mighteven be a public service announcement. According to the Outdoor Advertising Association ofAmerica, Inc. (OAAA), businesses spent $5.8 billion dollars on outdoor advertising in 2004, afigure expected to rise again in 2005.

FACTORS AFFECTING OUTDOOR ADVERTISING

1. Modern urban lifestyles2. Technological advancements3. Boom in the real estate and infrastructurea) Mallsb) Buildingsc) Flyoversd) Toll roadse) Metro trains4. Rise in consumerisma) Consumer awarenessb) Purchase optionsc) Buying power5. Growth in rural markets6. Saturation of other medias20


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KINDS OF OUTDOOR ADVERTISING

1. BILLBOARDSa) Front litb) Back lit

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2. Bus stops22


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3. Metro stations23


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4. Auto panel24


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5. Train advertisement25


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6. Mobile van26


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7. Hoardings27


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8. Wall paintings28


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9. Taxi29


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CLASSIFICATION AND TYPES OF ADVERTISING

1. Product Related AdvertisingA. Pioneering AdvertisingB. Competitive AdvertisingC. Retentive Advertising2. Public Service Advertising3. Functional ClassificationA. Advertising Based on Demand Influence Level.A. Primary Demand (Stimulation)B. Selective Demand (Stimulation)B. Institutional AdvertisingC. Product AdvertisingA. Informative Product AdvertisingB. Persuasive Product AdvertisingC. Reminder-Oriented Product Advertising4. Advertising based on Product Life Cycle

A. Consumer AdvertisingB. Industrial Advertising5. Trade AdvertisingA. Retail AdvertisingB. Wholesale Advertising6. Advertising Based on Area of operationA. National advertisingB. Local advertisingC. Regional advertising7. Advertising According to Medium Utilized30


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1. Product Related AdvertisingIt is concerned with conveying information about and selling a product or service. Productadvertising is of three types, viz.,

A. Pioneering AdvertisingB. Competitive AdvertisingC. Retentive AdvertisingA. Pioneering Advertising:This type of advertising is used in the introductory stages in the life cycle of

a product. Itis concerned with developing a primary demand. It conveys information about, and selling aproduct category rather than a specific brand. For example, the initial advertisement for black and white television and color television. Such advertisements appeal to the consumer semotions and rational motives.

B. Competitive Advertising:It is useful when the product has reached the market-growth and especially the market-maturity stage. It stimulates selective demand. It seeks to sell a specific brandrather than ageneral product category. It is of two types:

A. Direct Type: It seeks to stimulate immediate buying action.B. Indirect Type: It attempts to pinpoint the virtues of the product in the expectation that theconsumer s action will be affected by it when he is ready to buy.Example: Airline advertising.Air India attempts to bid for the consumer s patronage either immediately -directaction-in which case, it provides prices, time tables and phone numbers on which the customer may callfor reservations; or eventually indirect action when it suggests that you mention Air India sname when talking to your travel agent.

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C. Retentive Advertising:This may be useful when the product has achieved a favourable status in the market thatis, maturity or declining stage. Generally in such times, the advertiser wants to keep his product sname before the public. A much softer selling approach is used, or only the name

may bementioned in reminder type advertising.

2. Public Service AdvertisingThis is directed at the social welfare of a community or a nation. The effectiveness ofproduct service advertisements may be measured in terms of the goodwill they generate in favourof the sponsoring organization. Advertisements on not mixing drinking and driving are a goodexample of public service advertising. In this type of advertising, the objective is to put across a

message intended to change attitudes or behaviour and benefit the public at large.

3. Functional ClassificationAdvertising may be classified according to the functions which it is intended to

fulfil.

(i) Advertising may be used to stimulate either the primary demand or the selective demand.(ii) It may promote either the brand or the firm selling that brand.(iii) It may try to cause indirect action or direct action.i. Advertising Based on Demand Influence Level.A. Primary Demand StimulationPrimary demand is demand for the product or service rather than for a particular

brand. Itis intended to affect the demand for a type of product, and not the brand of that product. Someadvertise to stimulate primary demand. When a product is new, primary demand stimulation isappropriate. At this time, the marketer must inform consumers of the existence of the new itemand convince them of the benefits flowing from its use. When primary demand hasbeenstimulated and competitors have entered the market, the advertising strategy may

be to stimulatethe selective demand.

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B. Selective Demand StimulationThis demand is for a particular brand such as Charminar cigarettes, Surf detergentpowder, or Vimal fabrics. To establish a differential advantage and to acquire an acceptable sortof market, selective demand advertising is attempted. It is not to stimulate the

demand for theproduct or service. The advertiser attempts to differentiate his brand and to increase the totalamount of consumption of that product. Competitive advertising stimulates selective demand. Itmay be of either the direct or the indirect type.

ii. Institutional AdvertisingInstitutional Advertising may be formative, persuasive or reminder oriented in character.Institutional advertising is used extensively during periods of product shortages in order to keep

the name of the company before the public. It aims at building for a firm a Positive public imagein the eyes of shareholders, employees, suppliers, legislators, or the general public. This sellsonly the name and prestige of the company. This type of advertising is used frequently by largecompanies whose products are well known. HMT or DCM, for example, does considerableinstitutional advertising of its name, emphasizing the quality and research behind its products.

Institutional advertisements are at consumers or focus them upon other groups, such asvoters, government officials, suppliers, financial institutions, etc. If it is effective, the targetgroups will respond with goodwill towards, and confidence in the sponsor. It isalso a usefulmethod or introducing sales persons and new product to consumers. It does not attempt to sell aparticular product; it benefits the organization as a whole.

It notifies the consumers that the company is a responsible business entity andispatriotic; that its management takes ecologically responsible action, is an affair-motive actionemployer, supports the socialistic pattern of society or provides employment opportunities in thecommunity. When Indian Oil advertisements describe the company s general activities, such aspublic service work, this may be referred to as institutional advertising because it is intended tobuild an overall favorable attitude towards the company and its family of products. HMT oncetold the story of the small-scale industriessupplying it with component parts, thus indicating how it aided the developmentof ancillaryindustries.

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iii. Product AdvertisingMost advertising is product advertising, designed to promote the sale or reputation of aparticular product or service that the organization sells. Indane s Cooking Gas is

a case in point.The marketer may use such promotion to generate exposure attention, comprehension, attitudechange or action for an offering. It deals with the non-personal selling of a particular good orservice. It is of three types as follows:

A. Informative Product AdvertisingB. Persuasive Product AdvertisingC. Reminder-Oriented Product AdvertisingA. Informative Product Advertising:This form of advertising tends to characterize the promotion of any new type ofproduct

to develop an initial demand. It is usually done in the introductory stages of the product lifecycle. It was the original approach to advertising.

B. Persuasive Product Advertising:Persuasive product advertising is to develop demand for a particular product orbrand. Itis a type of promotion used in the growth period and, to some extent, in the maturity period ofthe product life cycle.

C. Reminder-Oriented Product Advertising:The goal of this type of advertising is to reinforce previous promotional activity bykeeping the brand name in front of the public. It is used in the maturity period

as well asthroughout the declining phase of the product life cycle.

4. Advertising based on Product Life CycleA. Consumer AdvertisingB. Industrial Advertising34


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A. Consumer AdvertisingMost of the consumer goods producers engage in consumer product advertising.Marketers of pharmaceuticals, cosmetics, scooters, detergents and soaps, cigarettes and alcoholicbeverages are examples. Baring a few, all these products are all package goods that the consumerwill often buy during the year. There is a heavy competition among the advertisers to establishan advantage for their particular brand.

B. Industrial AdvertisingIndustrial executives have little confidence in advertising. They rely on this form ofpromotion merely out of fear that their competitors may benefit if they stop their advertisingefforts. The task of the industrial advertiser is complicated by the multiple buying influencecharacteristics like, the derived demand, etc. The objectives vary according to

the firm and thesituation. They are:. To inform,. To bring in orders,. To induce inquiries,. To get the advertiser s name on the buyer s list of sources,. To provide support for the salesman,. To reduce selling costs,. To help get items in the news column of a publication,. To establish recognition for the firm or its product,. To motivate distributors,. To recognition for the firm or its products,. To motivate distributors, to create or change a company s image,. To create or change a buyer s attitude, and

The basic appeals tend to increase the rupee profits of the buyer or help in achieving hisnon-monetary objectives. Trade journals are the media most generally used followed bycatalogues, direct mail communication, exhibits, and general management publications.Advertising agencies are much less useful in industrial advertising.

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5. Trade AdvertisingA. Retail AdvertisingB. Wholesale AdvertisingA. Retail AdvertisingThis may be defined as covering all advertising by the stores that sell goods directly tothe consuming public. It includes, also advertising by establishments that sellservices to thepublic, such as beauty shops, petrol pumps and banks. Advertising agencies are rarely used. Thestore personnel are usually given this responsibility as an added task to be performed, togetherwith their normal functions. The result is that advertising is often relegated to a secondaryposition in a retail store. One aspect of retail advertising is co-operative advertising. It refers toadvertising costs between retailers and manufacturers. From the retailer s point of view, cooperative

advertising permits a store to secure additional advertising that would not otherwisehave been available.

B. Wholesale AdvertisingWholesalers are, generally, not advertising minded, either for themselves or for

theirsuppliers. They would benefit from adopting some of the image-making techniquesused byretailers the need for developing an overall promotional strategy. They also need to make agreater use of supplier promotion materials and programs in a way advantageous to them.

6. Advertising based on Area of OperationIt is classified as follow:

A. National AdvertisingB. Regional AdvertisingC. Local Advertising36


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Measuring Advertising Effectiveness

All advertising efforts are directed mainly towards the achievement of business, marketing and advertising objectives i.e., to increase the sales turnover and thus to market themaximum profit. The advertiser spends lakhs of rupees in to this advertising activity. In thebackground of all these efforts, is an attempt to attract the customer towards the product throughadvertising. As soon as the advertising campaign is over, a need is generally arisen to measurethe effectiveness of the campaign. Whether, it has achieved the desired resultsi.e. desired salesprofitability or results in terms the change in customer behaviour in favour of the company sproduct which will naturally, affect the future sale of the product.

In order to measure the effectiveness of advertising copy, two types of tests pre tests andpost tests-can be undertaken. Pre tests are generally conducted in the beginning

of the creationprocess or at the end of creation process or production stage. There are several

pre and post teststechniques to measure the effectiveness of the advertising copy.

The effectiveness of advertising in a particular media may also be measuredin any of the following ways

(a) By giving different addresses to different media,(b) Different newspapers may be selected for advertisements of different departments,(c) Coupon blank etc. May be provided with the advertisement or(d) Enquiry from consumers should mention the name of the source of information. The technique is known as keying the advertising. Thus in measuring the effectiveness ofadvertising we include measuring of the effectiveness of advertising campaign, advertising copyand the effectiveness of individual media. This chapter deals these three problems.

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Importance of measuring the Effectiveness of Advertising

(1) It acts as a Safety measureTesting effectiveness of advertising helps in finding out ineffective advertisement andadvertising campaigns. It facilitates timely adjustments in advertising to makeadvertisingconsumer oriented and result oriented. Thus waste of money in faulty advertising

can be avoided.

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

(3) Avoids possible failureAdvertisers are not sure of results of advertising from a particular advertising

campaign.

Evaluating advertising effectives helps in estimating the results in order to avoid complete loss.

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

(5) To know the communication EffectThe effectiveness of the advertisement can be measured in terms of their communicationeffects on the target consumers or audience. The main purpose of advertising iscommunicatedthe general public, and existing and prospective consumers, various informationabout theproduct and the company. It is therefore desirable to seek post measurements ofadvertising inorder to determine whether advertisement have been seen or heard or in other words whetherthey have communicated the theme, message or appeal of the advertising.

(6) Compare two marketsUnder this procedure, advertising is published in test markets and results are contrastedwith other. Markets so called control markets which have had the regular advertisingprogram. The measurements made to determine results may be measurements of change in sales,change in consumer attitudes, changes in dealer display and so on depending upon

the objectivessought by the advertiser.

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METHODS OF MEASURING ADVERTISING EFFECTIVENESS

Advertising is aimed at improving the sales volume of a concern so its effectiveness canbe evaluated by its impact on sales. Most of the managers believe that the advertisement directlyaffects the sales volume and hence they evaluate the effectiveness of the advertising campaign bythe increase in the sales volume.

There may be two types measures

(i) Direct measures: and(ii) Indirect measures:(1) Direct Measures of Advertising EffectivenessUnder direct measures, a relationship between advertising and sales is established. Acomparison of sales of two periods or two periods or two markets may be done and

thecorresponding changes may be noted. The following are some of the methods that are generallyused in measuring that advertising effects.

(a) Historical Sales MethodSome insights into the effectiveness of past advertising may be obtained by measuringthe relationship between the advertising expenditure and the total sales of theproduct. A multipleregression analysis of advertising expenditure and sales over several time periods may becalculated. It would show how the changes in advertising expenditure have correspondingchanges in sales volume. This technique estimates the contribution that advertising has made toexplaining in a co relational manner rather than a casual sales, the variation in sales over the timeperiods covered in the study

(b) Experimental ControlThe other measure of advertising effectiveness is the method of experimental controlwhere a casual relationship between advertising and sales is established. This method is quiteexpensive when related to other advertising effectiveness measures yet it is possible to isolateadvertising contribution to sales. Moreover this can be done as a pre-test to aid advertising inchoosing between alternative creative designs. Media schedules expenditure levels or somecombination of these advertising decision areas. One experimental approach to measuring thesales effectiveness of advertising is test marketing.

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(i) Before-after with Control Group DesignThis classic design uses several test and control cities in this design two types of cities areselected. Cities in which advertising campaigns are affected may be named as test cities andother cities may be called central cities. First of all, the normal sales levelis calculated for bothtype of cities prior to advertising campaign, and then the advertising campaignis presented to thetest cities and not the central cities. The effect of advertising campaign, canthen, be measured bysubtracting the amount of post campaign figure of sale from the pre campaign sale figures in testcities

(ii) Multivariable Experimental DesignsWhile the experimental design discussed above yields a reasonably accurate estimate of

the effects of the advertising on sales, it is not successful in explaining thesuccess or failure ofthe campaign itself. Multivariable designs Produce these explanations and are, therefore used bysome very large firm because of their diagnostic value.The power of this multivariable factorialdesign is explained by G.H.Brown, former Fords Director of Marketing Research. For any singlemedium, eight possible geographic areas have been exposed and eight have not been exposed.Thus, in this experimental model it is possible to evaluate how each individualmedium behavesalone and in all possible to evaluate how each individual medium behaves alone and in allpossible combinations with other media.

(2) Indirect MeasuresAs it is very difficult to measure the direct effect of advertising on company s profits orsales, most firms rely heavily on indirect measures. These measures do not evaluate the effects ofadvertisements directing on sales or profits but all other factors such as customer awareness orattitude or customer recall of advertising message affect the sales or profits or goals of thebusiness indirectly. Despite the uncertainties about the relationship between the intermediateeffects of advertising and the ultimate results, there is no other alternative but to use indirectmeasures. The most commonly used measures are

(i) Exposure to AdvertisementIn order to be effective, the advertisement must gain exposure. The management isconcerned about the number of target audiences who see or hear the organizationmessage set inthe advertisement. Without exposure, advertisement is bound to failure. Marketers or advertisersmay obtain an idea of exposure generated by the medium by examining its circulation or


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audience data which reveal the number of copies of the magazine, newspaper or journal sold thenumber of persons passing the billboards or riding in transit facilities, or the

number of personsliving in the televiewing or radio listening area, and the number of persons switching on their

T.V. and radio sets at various points of time. This number can be estimated by interviewing thenumbers of the audience for different media.(ii) Attention or Recall of Advertising Message ContentThis is one of the widely used measures of advertising results. Under this measure, arecall of the message content among a specified group or groups or prospective customers ismeasured within 24 hours of the exposure of the advertisement.

Attention value is the chief quality of the advertising copy the advertisements

cannot besaid to be effective unless they attract the attention of the target consumers.There are twomethods for evaluating the attention getting value of the advertisements. One is

pre-test and theother is post-test. In a pre-test evaluation, the consumers are asked to indicate the extent to whichthey recognise or recall the advertisement, they have already seen. This test is

conducted in thelaboratory setting. Here consumers read, hear or listen to the advertisement and

then researchersask question regarding the advertisement just to test the recall and then evaluate it. In post-testmethod, the consumers are asked questions about the indication of recognition or

recall after theadvertisement has been run. These measures assume that customers can recall or recognize whatthey have viewed or listened to. Various mechanical devices are being used in the westerncountries which provide indices of attention such as eye-camera etc.

(iii) Brand AwarenessThe marketers who rely heavily on advertising often appraise its effectiveness bymeasuring the customer s awareness about the particular product or brand. The assumption ofthis type of measure is that there is a direct relationship between the advertisements and theawareness. This type of measure is also subject to the same criticisms as is applicable to directmeasures of effectiveness (sales measures because awareness is also not the direct result of theadvertisements. It is also affected by many other factors. But, for new products, changes inawareness can often be attributed to the influence of advertising.

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(iv) ComprehensionConsumers generally use advertisements as a means of obtaining information about

theproduct, brand or the manufacturer. They cannot be informed unless they comprehend themessage (grasp the message mentally and understand it fully). Various tests forvaluatingcomprehension are available

One is recall tests an indicator of comprehension because it is evident that consumersrecall what they comprehend. Another measure of the variable is to ask questions

about subjectshow much they have comprehended a message they have recently heard or seen. Onemayemploy somewhat imprecise test of the comprehension of a newspaper and radio advertisement.One may ask typical target consumers from time to time such questions like what d

id you thinkof our new commercial? and Did it get the message across ? The answers of these questionswill provide sufficient insight into advertising decision making.

(v) Attitude ChangeSince advertising is considered to be one way of influencing the state of the mind of theaudience towards a product, service or organisation, the results are very oftenmeasured in termsof attitudes among groups exposed to advertising communication. Several measures

are usedranging from asking the questions about willingness to buy the likelihood of buying to themeasurement of the extent to which specific attributes (such as modern or new) are associatedwith a product.

(vi) ActionOne objective of advertisement may be assumed to be to stimulate action or behavior.The action or intention to take an action may be measured on the intention to buy measuringinstrument. Under this type of measure, consumers are asked to respond why theyare interestedin purchasing the product or brand. One type of action that advertisers attemptto induce isbuying behavior. The assumption is that if an increase in sales follows a decrease in advertisingexpenditure, the change in sales levels are good indicators of the effectiveness

of advertising.Logic suggests that measurement of sales is preferable to other measurements.

Thus, these above measures (direct or indirect) are used to evaluate the effectiveness ofadvertisements. It seems from the analysis of the above methods of measuring effectiveness thatdirectly or indirectly changes in sales or profits are taken as the measuring rod of theeffectiveness of the advertising.


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COMMUNICATION EFFECTS OF ADVERTISEMENT

The management should attempt to evaluate the effectiveness of the advertisingcampaign if the firm s advertising goals are to be achieved and the ad effectiveness is to beincreased. By regular evaluation of the effectiveness, the short comings and the

plus pointswould be revealed and the management would be able to improve the campaign by negating theshortcomings and retaining the favorable point. For this purpose, it is very necessary to knowhow advertising affects the buyer s behaviors. But this is very difficult task becausemeasurements are imperfect and imprecise.

The effectiveness of advertising can be measured by the extent, it to which it achieves theobjectives set for it. If it succeeds in attaining the objectives. Advertising c

an be said to beeffective otherwise it will be a waste of money and time. In this sense, advertising can berecognized as a business activity like other activities.

In a very real sense the integrity of promotional activities rests on how well thoseactivities work. An advertising budget that is spent on some poorly defined task

or on undefinedtasks may be regarded as an economic waste as compared to that spent to achievethe welldefined objectives for which the results can be measured. Any social institution

upon which asignificant portion of our total productive efforts is expanded should be able to point to itsspecific accomplishment. Indeed, it is a source of discomfort that specific results of advertisingactivities have not always been subject to precise measurement. Both practitioners and criticsfeel that promotional activities should only be accepted as socio economic institution withfull right and privileges when the meansexist to prove that advertising super are productive rupees It is undoubtedly a source ofembarrassment that we cannot exactly measure the effectiveness of advertising in

definitiveterms.

The exact result of advertisement expenditure is very difficult to predict because.

(a) The reaction of consumer buyers to the advertising efforts cannot be known in advance.(b) The reaction of competitors in the field cannot be guessed in anticipation and(c) The unexpected events (such as change in social and economic environment and

thegovernment policies etc.) cannot be accurately anticipated. Such events may influence the resultsof the advertising efforts. If we take a hypothetical case of a retailer who con


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Rs.5000 on advertisement with a local newspaper for a special sales even. The advertisement isseen and the response is much greater than it is anticipated. What caused the success of sale?They message theme colors etc., of the advertisement or the low prices quoted during the sale ofthe superior quality of the product or absence of competition in the market on the day or thefavorable. Weather conditions or the goodwill of the firm etc. The overwhelmingsuccess of thesale is the joint result of all the above variables and it is quite impossible to isolate the role of anyone variable. It is so because the cause and effect relationship cannot be established in advancewhen a multitude of variable impinge upon a particular event. It is entirely possible that a pooradvertising support may push up the sale because everything else falls into itsproper place or the

reverse may be possible. But it does not mean that that we cannot measure the effects ofparticulars advertising effort. The advertising executives are much concerned about theassessment of the effectiveness of the advertising efforts. For this purpose, the managementneeds answers to such questions as: was the advertising campaign really successful in attainingthe advertising goals? Were our T.V. commercials as good as those of our competitors? Will theprint advertisement, which we have designed, make consumers aware of our new product? Toget answers of these questions, various tests of effectiveness (Pre-tests and post tests ) aredeeded to determine whether proposed advertisement should be used, and if they are notsatisfactory how they might be improved, and whether on going campaign should be

stoppedcontinued or changed. Pre-tests are conducted before exposing target consumers to theadvertisements and post tests after consumers have been exposed to them.

As indicated earlier, the advertisers are interested in knowing what they are getting fortheir advertising rupees, So they test the proposed advertisement with pre testand measure theactual results with a post test. In the past, protesting was done by the advertising agencies butnow the advertisers have been taking an increasingly active role in protesting process. Pre testmay be done either before an advertisement has been designed or executed after it is ready forpublic distribution or at both points.

During protesting there is often research on three vital questions:

(i) Do consumers feel that the advertisement communicates something desirable about theproduct?(ii) Does the message have an exclusive appeal that differentiates the product f


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(iii) Is the advertisement believable?Although a lot of money is spent on protesting yet the advertisers like to confirm theresults by post testing of their promotional campaigns due to the following reasons:

(i) There is a need produce more effective advertising by retaining the good andremoving the

bad.(ii) The advertising executives can prove to the satisfaction of the managementthat a higheradvertising budget will benefit the firm.(iii) There is a need for measuring the results to determine the level of expenditure that is mostpromising.Most research focuses on the communication effect rather than sales effect because it is a

long run process. In the short run, however sales may be slight and important but in the long runits effects ob brands and companies may be of great importance. Indirectly it will affect the salesin the long run, by changing the consumer awareness and attitude. The advertisers are therefore,concerned with their impact on consumer awareness and attitude.

The communication effect on sales may be presented in the following figure:

Communication Effect on SalesAwareness

.

Attitude

.

Trial

.

Satisfaction

.

Purchases or repurchase

Awareness builds a favorable or at least a curious attitude towards the productwhichleads to experimentation. If consumer is satisfied with the trial he may decideto purchase theproduct. There are many critical and unresolved issues in determining how to test the


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communication effects of advertising. Among these are:

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(1) Exposure Conditions Should advertising be tested under realistic conditionsor under morecontrolled laboratory conditions?(2) Execution Protesting a finished advertisement as an expensive and time consuming. Doesprotesting a preliminary execution produce accurate and useful data?(3) Quality Vs. Quantity Data-Quantitative data are the easiest and the almost precisemeasurement. But qualitative data collected through interviews may provide information thatshort answer questions never can.Many types of advertising tests are conducted (different methods of pre tests and post test are given in question number) In T.V. commercials are tested by inviting agroup of peopleto the studio to view a program. The audience is then surveyed about the commercials. Printadvertisements are tested through dummy magazine portfolio tests.

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Compunction Effectiveness Vs Sales Effectiveness

It is easier to assess the communication effect of advertising than the sales effect. Manyfirms try to measure the effectiveness of advertising in terms of sales resultsbut this practice isalways misleading. Since, the effect is the result of so many variables, a distinct effect ofadvertising on sales cannot be correctly measured, Although there may be some exceptions. Forexample direct mail advertising can effectively be measured by the inquiries received. But inmany situations the exact relationship between advertising activity and sales cannot beestablished satisfactorily.

We can correctly assume that some sales will occur even though there is no advertising or

little advertising or conversely there will be no increase in sales after the point of saturation isreached or it may be that sales will show a decreasing trend at this point in spite of large amountof expenditure on advertising is done. It is so because advertising is no the only variable thateffect the sales.

Thus, we may conduct that sales effect of advertising is difficult to measure because anumber of variables affect the quantum of tales and the contribution of advertisement cannot bemeasured separately unless all other variables are presumed to be constant. This

situation is quitehypothetical and almost nonexistent. Added to this is the fact that advertisement itself is made ofa variety of variables such as media, messages, colours, page or time of the day, locations, thesize of the headline and the appeals used. Thus even if the advertising variable

is separated thiswould still not answer the question about the effectiveness of the individual components of theadvertising campaign. So advertisers try to measure the communication effect ofthe advertising.

Suitability

In small business firms where the marketing research resources are limited advertisingmanagers may decide on less expensive and less relevant measures. The big business house,which has more access to research, may decide on the more relevant and expensive

measures.

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Factors Affecting Advertising

The final external factor in the planning framework concerns environmental factor social,legal, and global. Law forbids deceptive advertising. One solution is to createbrand advertisingthat is vague and contains little specific information. However, such an approach can result notonly in ineffective advertising; by it can lessen the social value of advertising by reducing theamount for useful information that it provides to society. Thus, and advertiserwho attempts toprovide specific, relevant information must be well aware of advertising regulation.

Even more difficult consideration for people involved in the advertising effortis broadsocial and economic issues. Another concern is that advertising, especially when

it is moreirritating than entertaining, is an intrusion into an already excessively polluted environment. Awhole set of rules is emerging to cover advertising directed at children, and advertising forproducts such as alcohol and cigarettes, and the use of environmental and health

claims inadvertising.

Thus advertising has a tremendous impact on international marketing and the twoconcepts therefore go hand in hand and are dependent on each other.

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IMPACT OF ADVERTISEMENT

Advertising has an important effect on a country s economy, society, culture, and

political system. This is especially true in the United States where the advertising industry plays

such a prominent role.

1.Economic ImpactMost economists believe that advertising has a positive impact on the economybecause it stimulates demand for products and services, strengthening the economy bypromoting the sale of goods and services. Manufacturers know that advertising can helpsell a new product quickly, enabling them to recoup the costs of developing newproducts. By stimulating the development of new products, advertising helps incr

easecompetition. Many economists believe that increased competition leads to lower prices,thereby benefiting consumers and the economy as a whole. These economists also arguethat by interesting consumers in purchasing goods, advertising enables manufacturers andothers to sell their products in larger quantities. The increased volume of sales enablescompanies to produce individual units at lower costs and therefore, sell them at

a lowerprice. Advertising thus benefits consumers by helping lower prices.

Other economists, however, believe that advertising is wasteful. They argue that the cost of advertising adds to the cost of goods and that most advertising simplyencourages consumers to buy one brand rather than another. According to this view,advertising simply moves sales from one company to another, rather than increasing salesoverall and thereby benefiting the economy as a whole.

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2. Social ImpactAdvertising can have wide-ranging repercussions on a society. Some criticssuggest that advertising promotes a materialistic way of life by leading peopleto believethat happiness is achieved by purchasing products. They argue that advertising creates aconsumer culture in which buying exciting new products becomes the foundation of

thesociety's values, pleasures, and goals.

Other critics express concern over the way advertising has affected women andracial minority groups. Ads in the 1950s depicted women primarily as decorationor sexobjects. Although millions of women worked outside the home in the 1960s, adscontinued to focus on their role as homemakers. Whether owing to the feministmovement or to women's increasing economic power, after the 1960s it became more common to see women depicted in professional roles. However, many ads today stil

lemphasize a woman s sexuality.

The way advertising has depicted racial minorities has also been harmful. Priorto1960, African Americans were usually shown in a subordinate position. Due to the influence of the civil rights movement, however, advertisers by the 1980s had begun todepict African Americans as students, professionals, or business people. However, manyAfrican American organizations and community activists continue to object to the

waythat alcohol and tobacco companies have seemingly targeted low-income minoritycommunities with a heavy preponderance of outdoor advertising for their products.

As ads have begun to more fully reflect the lives of women and AfricanAmericans in the United States, increasing attention has been paid to the way in

whichadvertising shows other ethnic groups, including Hispanics, Asians, Native Americans,and Eastern Europeans. There is still considerable debate over how advertising influencespublic perception of gender and of particular ethnic groups.

Advertising has a major social impact by helping sustain mass communications

media and making them relatively inexpensive, if not free, to the public. Newspapers,

magazines, radio, and broadcast television all receive their primary income from

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advertising. Without advertising, many of these forms of mass communication might notexist to the extent that they do today, or they might be considerably more expensive, offerless variety, or even be subject to government control through subsidies. In-depth newsprograms, a diversity of magazines, and free entertainment might no longer be widelyavailable.

At the same time, however, some critics warn that because advertising plays such a major economic role, it may exercise undue influence on the news media and therebycurtail the free flow of information in a free society. Reporters and editors, for example,may be hesitant to develop a news story that criticizes a major advertiser. As a

result,

society might not be alerted to harmful or potentially harmful conduct by the advertiser.Most members of the news media deny that pressure from an advertiser prevents themfrom pursuing news stories involving that advertiser, but some members of the mediaacknowledge that they might not be inclined to investigate an issue aggressively

if itthreatened to offend a major advertiser.

Advertisers may affect media programming in other ways, too, critics charge. For example, companies that sponsor TV programs prefer relatively wholesome,noncontroversial programming to avoid offending a mass audience. This preference causes TV networks to emphasize this type of programming. The result is that societymay be denied the benefits of being able to view challenging or highly originalentertainment programs or news programs on controversial issues. Because advertisersare especially interested in attracting the 18 to 34 year olds who account for mostconsumer spending, television shows are often developed with this audience in mind. Ifthe ratings show that a program is not attracting large audiences, particularlyamong 18 to34 year olds, advertisers often withdraw support, which causes a program to be canceled.As a result, shows that are more likely to interest and to be of value to olderaudiences arenot produced.

The impact of television on young children has received much attention. Research suggests that children see television advertising as just another form of programming andreact uncritically to its messages, which makes them especially vulnerable to advertising.

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There is also concern about the way in which adolescent girls respond to advertising thatfeatures beautiful, thin models. Research indicates that many adolescent girls are undulyinfluenced by this standard of beauty, become dissatisfied with their own bodies, andmay develop eating disorders in pursuit of a thin figure. New research suggeststhatadolescent boys are also being influenced by advertising images of bulked-up, buffedbodies. As a result, many become dissatisfied with their own body image, devotelargeamounts of time to weightlifting, and may even take drugs that have harmful side

effectsin order to develop more muscle. Those over the age of 60 are thought to be less influenced by advertising, but some elderly people no longer process messages as

easily

as younger people, making them more susceptible to questionable advertising claims.

3. Political ImpactAdvertising is now a major component of political campaigns and therefore has abig influence on the democratic process itself. In 1998 more than $467 million was spenton election campaigns in the United States. That amount of spending placed politicaladvertising in the ranks of the country s 30 leading advertisers that year. Politicaladvertising is a relatively new development in U.S. history. Advertising professionals didnot become involved in electoral campaigns until the 1950s. But since then, politicaladvertising has grown in sophistication and complexity.

Political advertising enables candidates to convey their positions on importantissues and to acquaint voters with their accomplishments and personalities. Televisionadvertising is especially effective for candidates running for national or statewide officebecause it can reach so many people at once. Candidates can also use advertising

torespond effectively to the charges of their opponents.

Various campaign finance reform proposals, however, have tried to address theimpact of television advertising on political campaigning. Because of the high cost oftelevision ads, the costs of political campaigns have skyrocketed, making it necessary forcandidates to raise money continually, even after they have been elected to office. Criticssay this factor jeopardizes the democratic process by making elected officials beholden to

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wealthy contributors and by making it more likely that only the wealthy will runfor

office. Some reform proposals have called for free airtime, but television and radionetworks have resisted this idea.

Critics of political advertising also charge that the 30-second television spothasbecome more important to a political campaign than a thorough discussion of theissues.As a result, voters are bombarded with image advertising rather than being acquaintedwith the candidate s positions. They contend that this practice is harmful to good government. Issues are simplified, and candidates are packaged and sold much likeaconsumer product, thereby distorting the political process.

4. Cultural ImpactAdvertising can affect cultural values. Some advertising messages, for example,encourage aggressive individualism, which may clash with the traditional cultural valuesof a country where the collective or group is emphasized over the individual orhumilityor modesty is preferred to aggressiveness. With the globalization of the world economy,multinational corporations often use the same advertising to sell to consumers around theworld. Some critics argue that advertising messages are thus helping to break downdistinct cultural differences and traditional values, causing the world to becomeincreasingly homogeneous.

Many advertising campaigns, however, have universal appeal, overriding culturaldifferences, or they contribute to culture in a positive way. Humor in advertising hasmade many ad campaigns widely popular, in some cases achieving the status of folkloreor taking on new life in another arena. For example, a popular ad campaign for a

fast-food chain with the slogan Where s the beef? became part of the 1980 Democraticpresidential primary campaign between Gary Hart and Walter Mondale. The ad ridiculeda competitor by depicting a small hamburger patty dwarfed by a huge bun. Duringaprimary debate one of the candidates used the ad slogan to suggest that his opponent scampaign lacked substance.

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RESEARCH METHODOLOGY

Research Design : DescriptiveData Source : Primary data

: Secondary dataResearch Instrument : QuestionnaireSample design : Simple random designSample size : 100Sample location : Delhi

: NCR

Sample element: Students: House hold: Professional

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RESEARCH METHODOLOGYChi-Square Test

Chi-square is a statistical test commonly used to compare observed data with data we wouldexpect to obtain according to a specific hypothesis. For example, if, accordingto Mendel's laws,you expected 10 of 20 offspring from a cross to be male and the actual observednumber was 8males, then you might want to know about the "goodness to fit" between the observed andexpected. Were the deviations (differences between observed and expected) the result of chance,or were they due to other factors. How much deviation can occur before you, theinvestigator,must conclude that something other than chance is at work, causing the observedto differ fromthe expected. The chi-square test is always testing what scientists call the nul

l hypothesis, whichstates that there is no significant difference between the expected and observedresult

The formula for calculating chi-square ( .2) is: .2= (o-e)2/eThat is, chi-square is the sum of the squared difference between observed (o) and the expected

(e) data (or the deviation, d), divided by the expected data in all possible categories.Step-by-Step Procedure for Testing Your Hypothesis and Calculating Chi-Square

1. State the hypothesis being tested and the predicted results. Gather the databy conducting theproper experiment (or, if working genetics problems, use the data provided in the problem).2. Determine the expected numbers for each observational class. Remember to usenumbers, notpercentages.Chi-square should not be calculated if the expected value in any category is less than 5.

3. Calculate 2 using the formula. Complete all calculations to three significantdigits. Round off

your answer to two significant digits.4. Use the chi-square distribution table to determine significance of the value. Determine degrees of freedom and locate the value in the appropriate column.Locate the value closest to your calculated on that degrees of freedom df row.Move up the column to determine the p value.

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5. State your conclusion in terms of your hypothesis.If the p value for the calculated is p > 0.05, accept your hypothesis. 'The deviation is smallenough that chance alone accounts for it. A p value of 0.6, for example, means that thereis a 60% probability that any deviation from expected is due to chance only. This iswithin the range of acceptable deviation.

If the p value for the calculated is p < 0.05, reject your hypothesis, and conclude that somefactor other than chance is operating for the deviation to be so great. For example, a pvalue of 0.01 means that there is only a 1% chance that this deviation is due to

chancealone. Therefore, other factors must be involved.

The chi-square test will be used to test for the "goodness to fit" between obser

ved and expecteddata from several laboratory investigations.

ANALYSIS OF DATA COLLECTION

In order to present the report with a pragmatic approach along with the theoretical aspect someprimary and secondary data is collected so as to present our report with facts and figures.PRIMARY DATA:The primary data has been collected by preparing a questionnaire, which was circulated over

hundred persons. They have been asked questions regarding the different kind ofmedia affectingtheir choices regarding the different products. A specimen of the questionnaireis attached.

SECONDARY DATA:The secondary data is also of utmost importance. It helps in the in depth analysis of theorganization. Various facts and figures have been gathered through different websites & portals.A list of all those referral websites is mentioned later in the report in references.

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SAMPLING UNIT

Sampling Unit is the total number of samples differed in different locality.

Sl. No. Classes No. of Classes1. Students 332. Professionals 343. Household 33Total 100

Data have been collected through the survey method while surveys have been conducted in onecity:

i) Delhi

ii) NCR

The data collected was both from the primary and secondary source. The primary data wascollected through questionnaires and was collected personally.

The secondary data was collected through books, magazines, and websites. All thearea had

segmented according the population of this area. We have considered 100 as sample size.

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CHI-SQUARE TESTAim-To find out is there a relationship between the occupation of the customer and mode ofadvertising media affecting their perception with regards to different products. Following is the information collected from the primary source .

Type ofmedia.Occupation ofpeople.Outdoor media Print media ElectronicmediaStudent 10 8 2 20Professional 10 9 1 20Household 5 10 45 60Total 25 27 48 100

Step 1:

H0: There is no significant difference (or no relationship) between the people occupation andthe mode of advertising media affecting their perception.HA: There is significant difference( or relationship) between the people occupation and the modeof advertising media affecting their perception.

Step 2:

Level of significance a considered in this analysis is 5% a=0.05.

Step3:

Calculation for the expected frequencyWe use formula(Row total*column total)/Grand totalE11=R1C1/N=(25*20)/100=5,

E12=(R1C2)/N=(27*20)100=5.4E13=(R1c3)/N=(48*20)/100=9.6EE21=(R2C1)/N=(27*20)100=5.4E22=(R2c2)/N=(48*20)/100=9.6E23=(R2C3)/N=(25*20)/100=5,E31=(R3C1)/N=(60*25)/100=15E32=(R3C2)/N=(27*60)/100=16.2E33=(R3C3)/N=(48*60)/100=28.8Step 4:Test statistic for testing H0 is:.^2=S(0i-Ei)^2/Ei

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Observedfrequency Oi frequency Oi`ExpectedFrequency Ei(Oi-Ei)^2 ( Oi-Ei)^2/ Ei10 5 25 58 5.4 6.76 1.252 9.6 57.76 6.0110 5 25 59 5.4 12.96 2.41 9.6 73.96 7.705 15 100 6.6610 6 16 2.6615 28.8 262.44 9.1125.^2 =45.79

Step 5:

Statistic follows a chi-square distribution. So(r=no. of rowsc= no. columns)Degree of freedom df=(r-1)(c-1)

= (3-1)(3-1)

= 2*2= 4.Tabulated value at 4 degree of freedom and 0.05 level of significance.D(4,0.05)= 9.488

Step6:

.^2 cal > .^ tab.The decision rule is to reject the null hypothesis if the calculated value of the .^2 comes to begreater than the tabulated value of the .^2 and to accept it otherwise.In this case we reject null hypothesis.Thus accept the HA,

Step:7Conclusion:

There is a significant difference between the people occupation and mode of media affectingtheir perception regarding different products.Hence People with different occupation are affected differently by different kinds of media i..ePrint media ,electronic media and Outdoor media

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61GRAPHICAL INTERPRETATION1. From where do you get information about the new product?Answers No. of respondentsTelevision & other electronic media 48Newspapers and Magazines 27Outdoor advertizing(billboards and hoardings)25InterpretationA large size of population is influenced by Television and Newspapers.2. Which form of advertisement do you like more?


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62Answers No. of respondentsStill image 28Moving image 72Interpretation:People are more affected by advertisement with moving image.


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633. For you advertisement is a source of :Answers No. of respondentsInformation 62Entertainment 38Interpretation:More number of people consider advertisement as a source of information rather than asource of entertainment.


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644. Does entertaining advertisement affect your opinion about the product?Answers No. of respondentsYes 26No 74Interpretation:Entertaining advertisement does not affect the opinion of customer about the product


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5. Does information provided in advertisement affects your opinion aboutthe product?Answers No. of respondentsYes 87No 13

Interpretation:

Information provided in the advertisement affect very much on the opinion of consumersabout the product.

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666. Does language used in advertisement affects your opinion about theproduct?Answers No. of respondentsYes 63No 37Interpretation:Language used in the advertisement affects a lot on the opinion of consumers about theproduct.


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677. Does presence of any celebrity in the advertisement affects your opinionabout the product?Answers No. of respondentsYes 69No 31Interpretation:Presence of any celebrity affects on the opinion of consumers about the product.


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688. Does intensity of the advertisement affects your opinion about theproduct?Answers No. of respondentsYes 52No 48Interpretation:The effect of intensity is very powerful on the opinion of consumers about the product.


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699. Does presence of social issues in the advertisement affects your opinionabout the product?Answers No. of respondentsYes 59No 41Interpretation:Presence of social issues in advertisements affects very much on the opinion ofconsumers about the product.


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7010. Do you think advertisement helps in increasing sales of any product?Answers No. of respondentsYes 87No 13Interpretation:Advertisement helps very much in increasing the sales of any product.


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FINDINGS

Advertisements with moving image are more effective than advertisement with stillimage.

Information provided in the advertisement has more influence on consumer s perceptionabout the product.

Language used in the advertisement also plays important role in increasing effectivenessof an advertisement.

Intensity of advertisement affects the perception of consumers towards the product and

leads them for its purchase. Social issues included in advertisement affects the perception of high age group

people.

National advertisement has more influence on consumer s perception about the productinstead of local advertisement.

Advertisement increases the sales of any product.71


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SUMMARY

Advertising may be defined as the process of buying sponsor-identified media space or

time in order to promote a product or an idea.The American Marketing Association, Chicago, has defined advertising as any formof non-personal presentation or promotion of ideas, goods or services, by an identified

sponsor.

Advertising focuses on mass production and mass communication along with the niche marketsand specialized markets . Advertising in

Documents

33783488 Outdoor Advertizing in India[1]