ABSTRACT

This research has been conducted to study the impact of Advertisement (brand image,
brand awareness, positioning, personal attachment, word of mouth and customer
loyalty) on sales. The data will be collected through questionnaire from 1000
respondents. The results show positive relationship of above mentioned Advertisement
with sales. The view of this report is to find the impact of an ad to the sales of the
company. So it is important to know what is actually happen practically after an ad is
launched. Does it help to increase sales of the company or it is an expense of the
company which adds nothing to the company in return.

INTRODUCTION

A wise man once said, "The person who saves money by not advertising is like the man
who stops the clock to save time." In today's fast-paced, high-tech age, businesses must
use some form of advertising to make prospects aware of their products and services.
When it comes to advertising, a lot of people really don't know what they want, where to
get it or what to do with it after they have it. This publication will help to learn the
importance of advertisements of a product or service. Advertising is a prominent feature
of modern business operations. One can encounter advertising messages, while
watching TV, reading magazines, listening to the radio, surfing the internet, or even
simply while walking down the street, as advertisement has a stimulating influence on
purchasing behavior of the customer.
Effective advertising is that which communicates the desired message. While to the
media buyer, effective advertising is that which reaches to prospective buyers a
sufficient numbers of time. However to the advertising or marketing manager, effective
advertising is that which, together with other marketing forces, sells his brand or
product. Whereas according to the general manager, effective advertising produces a
return on his firms expenditure. In fact to be effective the advertising must achieve the
goal of delivering messages to the right audience and thereby creating sales at a higher
profit.
The subject of advertisement has remained a topic of debate either on one pretext or
another for decades. At the beginning of 19th century, though, it was a subject of little
interest to the major researchers, but it became a fertile topic for economic research at
the turn of 19th century during which, on one side its constructive role in providing
information to customers to satisfy their wants at lower cost was recognized and on the
other a wasteful confrontational role by offering little information and doing
redistribution of customers from one firm to another was acknowledged. Various studies
have been conducted to assess the different aspects of relationship between
advertisements and sales at different points of time. A brief review of the variables
relating to different dimensions of interrelationship of sales and advertisement is
presented below:
Customer Loyalty: Customer loyalty is the result of consistently positive emotional
experience, physical attribute-based satisfaction and perceived value of an experience,
which includes the product or services.

Word of Mouth: Word of mouth or viva voce, is the passing of information from
person to person by oral communication, which could be as simple as telling someone
the time of day. Storytelling is a common form of word-of-mouth communication where
one person tells others a story about a real event or something made up.
Brand Image: Brand image is developed over time through advertising campaigns
with a consistent theme, and is authenticated through the consumers' direct experience.
Brand Awareness: Brand awareness is the extent to which a brand is recognized by
potential customers, and is correctly associated with a particular product. Brand
awareness is the primary goal of advertising in the early months or years of a product's
introduction.
Positioning: It is a place a product occupies in consumer minds relative to competing
products. It is a marketing strategy, which aims to differentiate a brand in relation to
competing brands in order to gain market share.
Personal Attachment: An extra part or extension that is or can be attached to
something to perform a particular function.

OBJECTIVES OF STUDY
Each advertisement is a specific communication that must be effective, not
just for one customer, but for many target buyers. This means that specific objectives
should be set for each particular advertisement campaign. Advertising is a form of
promotion and like a promotion; the objectives of advertising should be specific.
This requires that the target consumers should be s p e c i f i c a l l y i d e n t i f i e d
and that the effect which advertising is intended to have upon the
consumer should be clearly indicated. The objectives of advertising were traditionally
stated in terms of direct sales. Now, it is to view advertising as having communication
objectives that seek to inform persuade and remind potential customers of the
worth of the product. Advertising seeks to condition the consumer so that he/she
may have a favorable reaction to the promotional message. Advertising objectives serve
as guidelines for the planning and implementation of the entire advertising program.
The basic objectives of an advertising program may be listed as below:
To stimulate sales amongst present, former and future consumers.
To communicate with consumers.
To retain the loyalty of present and former consumers. Advertising may be used to
reassure buyers that they have made the best purchase, thus building
loyalty to the brand name or the firm.
To increase support. Advertising impliedly bolsters the morale of the sales
force and of distributors, wholesalers, and retailers; it thus contributes to
enthusiasts and confidence attitude in the organizational.
To project an image. Advertising is used to promote an overall image of respect and
trust for an organization. This message is aimed not only at consumers, but also at
the government, shareholders, and the general public.

SIGNIFICANCE OF STUDY

Advertising is a favorable representation of product to make consumers, customers and

general public aware of the product. It lets the potential buyers, general public and end
users to be aware and familiar with the brands, their goods and services. Before going on
to the importance of advertising, we would have an introduction to advertising first.
Advertising can be defined as a paid form of non professional but encouraging,
complimenting and positively favorable presentation of goods and services to a group of
people by an identified sponsor. It does not include distribution of free samples or
offering bonuses, these are sales promotion. In simplest words advertising is
introduction, to consumers and general public, of services and goods.
In a successful business, advertising play an essential and important role. Though
advertising does not mean selling of products and services but it helps in increasing your
sales. Advertising creates awareness in people. When general public becomes conscious
to the products, services and goods under the brands, they persuade people towards
these brands and make them buy better brands.
Advertising can be used to create brand awareness in general public and to make
business more popular within the circle of potential buyers. Advertising, in a straight
line, increases profit of the companies by escalating its revenue. The expenditure made
on advertisement can turn as good boost in earnings.

LITERATURE REVIEW

Brand image, which usually includes the product's name, its main physical features
and appearance (including the packaging and logo), and its main function(s), is the key
to answer the question of how the consumer chooses among alternative brands after
information-gathering processes of buyer behavior. Consumers tend to compare their
self-image with the product images in the pre-purchase stage of the decision-making
process. The relationship between sales and brand image is found to be statistically
significant. This ending is consistent with the expectation stating that if the perception
of brand image is congruent with the actual consumers, the image factors are positive
and significant. (MALIKUL ADIL, 2012).
The higher the image of a brand, the more dilution occurs, which means that companies
should take caution when extending into different product categories (F MUGE
ARSLAN, KORKAT ALTUNA 2010).

Communicating a brand image to a target market has been regarded as an important

marketing activity. A well-communicated image should help establish a brands
position, insulate the brand from competition (C. WHAN PARK et al., 1996).
The ability to attract the right target market, making them buying/consume the product
on a regular basis and in high quantities and advocating for the product enabling more
customers to shift from the substitute product to your product is termed as customer
loyalty (AMNA NASIR et al, 2014).
Customer loyalty represents as a paradox. Many see it as primarily an attitude based
phenomenon that cab be influenced significantly by customer relationship management
initiative such as the increasingly popular loyalty and affinity. Two aims of customer
loyalty stand out. One is to increase sales revenue by rising purchase levels. Second aim

is more defensive by building a closer bond between brand and current customer
(MARK D. UNCLES et al, 2002).

Loyalty has been widely researched in the domain of marketing. It has been found by
researchers that a satisfied customer tends to be loyal. The customer remains loyal to an
organization as long as he or she feels that the organization gives him or her better
services or products as compared to another organization (SUNNY BOSE & VENU
GOPAL RAO, 2011).

Word of mouth is an important driver of sales. In this study, we characterize patterns

of reviewer behavior, and examine the effect of consumer reviews on firms sales
patterns. Our work contributes to the broader literature on the link between customer
word of mouth and sales. (JUDITH A.CHEVALIER & DINA MAYZLIN, 2003)
Online word-of-mouth (WOM) such as consumer opinions, user experiences, and
product reviews has become a major information source in consumer purchase
decisions. WOM is shown to inuence sales overwhelmingly. A retailers internal WOM
has a limited inuence on its sales of high-involvement products, while external WOM
sources have a signicant impact on the retailers sales. The ndings imply that external
WOM sources play an important role in the information search process. (BIN GU et al
2009)

The ability to exchange opinions and experiences online is known as online word of
mouth (WOM) and has been shown in the literature to have the potential to impact e
commerce sales. (ALANAH DAVIS & DEEPAK KHAZANCHI, 2008)
The authors examine the link between advertising and price effects and propose that
this relationship depends on the specific advertising positioning strategy employed by
an advertiser. The authors note that advertising has different goals, depending on the
competitive context of the brand, with some advertisers positioned to differentiate
between brands and others positioned to narrow the perceived difference between
brands. The authors identify specific types of non-price advertising positioning that
increase brand equity and category price sensitivity, those that decrease both, and those
that increase brand equity while increasing category price sensitivity. (STAVROS P.
KALAFATIS et al, 2000)

Brand awareness means the ability of a consumer can recognize and recall a brand in
different situations. Brand awareness plays an important role on purchase intention
because consumers tend to buy a familiar and well known product. (DR.HASIN
KUANG CHI et al)

The awareness of the brand plays a significant role while purchasing a product or service
and may have control on perceived risk evaluation of consumers and their level of
assurance about the buying decision due to awareness with the brand and its
uniqueness. (MANILAL DHUMP et al)
Brand awareness influences consumer decision making in various ways. Brand
awareness therefore has the effect of increasing brand market performance (PROF DR.
MUHAMMAD EHSAN MALIK et al)

THEORETICAL FRAMEWORK

POSITIONING

PERSONAL
ATTACHMENT

BRAND IMAGE
SALES

BRAND
AWARENESS

CUSTOMER
LOYALTY

WORD OF MOUTH

HYPOTHESIS

HYPOTHESIS
A hypothesis is an explanation for a phenomenon that can be tested in some way that
ideally either proves or disproves it. This study test to help the following hypothesis:

Ho= There is no relationship between motivation and sales.

H1= There is a relationship between word of mouth and sales.
Ho= There is no relationship between satisfaction and sales.
H2= There is a relationship between brand image and sales.
Ho= There is no relationship between pay policies and sales.
H3 = There is a relationship between customer loyalty and sales.

Ho= There is no relationship between turnover and sales.

H4= There is a relationship between brand awareness and sales.
Ho= There is no relationship between workforce diversity and sales.
H5= There is a relationship between positioning and sales.
Ho= There is no relationship between absenteeism and sales.
H6= There is a relationship between personal attachment and sales.
METHODOLOGY

This report is prepared on the basis of primary and secondary data from different
sources. Initially, the work was started with the data which were available secondary
data. Moreover, it becomes helpful to gather some more information from other
sources.
Our report is The impact of the ad on the sales of the company
We followed some stages while preparing this report. Those were:
i. Identified the problem: At first we identified the main issue of the topic.
ii. Obtain information: Secondly we gathered information which is related to the
problem.
iii. Data collection through the instrument: Then we collected data from field
level and from secondary sources.
iv. Analyze the data: At this stage of preparation of report we analyzed our
collected data.
v. Interpretation and report preparation: After an analytical study we drew
comments from the collected data at the last stage. Then we composed the whole
report and submitted it to the proper authority.
Population: The data will be collected through questionnaire; the questionnaire
will be filed by the students of GC Women University, Sialkot. The elements in the
population of GC Women University are approximately more than 1000.
Sample Design: We have selected Simple Random Sampling &
Convenience Sampling as a sample design for our research proposal.
First of all, why we have selected simple random sampling or unrestricted sampling
is because there is an equal chance of every student in the university being selected
to fill the questionnaire. And the reason behind selection of Convenience Sampling is

that it will save our time. The questionnaire will be filled from those students who
are conveniently available.

LIMITATIONS
There are few limitations of advertising in spite of communicating the message to the
target audience such as:

Can't standardize the advertising campaign approach and evaluation methods

too.

Advertising message cannot be focused to meet individual customer's needs and

wants.

Non-affordability of cost factor for small and medium companies to use

advertising.

Inability to provide deep insights about a product or service.

REFERENCES
Sunny Bose and Venu Gopal Roa (2011). Management & Marketing Challenges for the
knowledge Society, Vol.6, No.4. 543-560
Amna Nasir, Hamna mushtaq, Muhammad Rizwan (2014). Journal of Sociological
Research, Vol.5(1)
Judith A.Chevalier & Dina Mayzlin (2006). Effect of Word of Mouth on Sales. Journal of
Marketing Research. Vol. 43, No. 3. 345-354.
Alanah Davis, Deepak Khazanchi (2008). An Empirical Study of Online Word of Mouth
as a predictor for multi-product category E-commerce sales. Routledge Taylor and Francis
Group. Vol. 18. 130-141.
Bin Gu, Jaehong Park, Prabhu Dev Konana (2009). The Impact of External Word of
Mouth on Retailer Sales of High-Involvement Products. Articles in Advance. 23(1). 182-196.
Malikul Adil (2012), The Influence of Brand image on sales, Journal of Basic and Applied
Scientific Research, 2(4). 3552-3556.
F. Mge Arslan & Oylum Korkut Altuna (2010), The effect of brand extensions on
product brand image, Journal of Product & Brand Management, Vol. 19. 170-180.
C.Whan Park. Bernard J.Jaworski. Deborah J.Maclnnis (1996), Strategic Brand
Concept-Image Management, Journal of Marketing, Vol no.50. 135-145
Stavros P. Kalafatis, Markos H. Tsogas, Charles Blankson (2000). Positioning
strategies in business markets. Journal of Business & Industrial Marketing. Vol no. 15. 416-437.
Dr.Hasin Kuang Chi, Dr Hurry Ren Yeh,Ya Ting Yang (2009). The impact of brand
awareness on consumer purchase intention. The journal of International management studies,
Vol no. 4.

Prof.Dr.Muhammad Ehsan Malik, Muhammad Mudassar Ghafoor, Hafiz Kashif

Iqbal (2013). The importance of brand awareness and brand loyalty in assessing purchase
intention of consumers. International journal of business & social sciences, vol no. 4(5)

TABLE OF CONTENTS
SERIAL NO.

CONTENTS

PAGE NO.

01

ABSTRACT

01

02

INTRODUCTION

1 &2

03

OBJECTIVES

02

04

SIGNIFICANCE

03

05

LITERATURE
REVIEW

3&4

06

THEORETICAL
FRAMEWORK

05

07

HYPOTHESIS

5&6

08

METHODOLOGY

06

09

LIMITATIONS

07

10

REFERENCES

07