SUMMER REPORT

ON

ADVERTISEMENT AND SALES OF

HONDA ACTIVA

Submitted in partial fulfillment of the requirement for the

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by:

Sweety

Class : BBA 5th sem.

Roll No. : 976710063

Univ. Roll No. :

GOVERNMENT P.G. COLLEGE FOR WOMEN, ROHTAK

 PREFACE

BBA is a stepping-stone to the management Honda Activa. In order to achieve practical,

positive and concrete results, the classroom learning needs to be effectively fed to the
realities of the situations existing outside the classroom. This is particularly true of
management.

Management students have good conceptual knowledge of business activities is somewhat in

adequate. Doing a project work on a particular topic needs a lot of detailed study. It gives a better
understanding and knowledge. As a part of curriculum it is exigent for the students pursuing this
course to do a research project in final semester. The research project undertaken was on the topic
“THE ADVERTISEMENT AND INCREASE THE SALES OF HONDA ACTIVA LTD.”. The research project
has been a fruitful experience for me as I now have clear idea and knowledge about conducting a
research in the field of marketing.
 ACNOWLEDGEMENT

This project work, which is my first step in the field of professionalism, has been successfully
accomplished only because of my timely support of well wishers. I would like to pay my sincere regards
and thanks to those, who directed me at every step in my project work.

I extended my sincere thanks and gratitude towards Govt. PG college for women, Rohtak BBADeptt. for
his help and valuable support thorough out the term of the project. It was learning experience to work
under her guidelines.

Sweety
 DECLARATION

I am Sweety student of BBA hereby declare that the project report titled “The Advertisement and
Increase the Sales of HONDA ACTIVA”is a original piece of work done by me and has been not submitted
to any organization in any means possible.

This project report is not submitted to any other institute/university for the award of degree of Bachelor of
Business Administration
 EXECUTIVE SUMMARY

Honda Activa formerly Honda Activa Honda is an Indian motorcycle and scooter
manufacturer based in New Delhi, India. Honda Activa Honda started in 1984 as a
joint venture between Honda Activa Cycles of India and Honda of Japan. The
company is the largest two wheeler manufacturer in India. The 2006 Forbes 200
Most Respected companies list has Honda Activa Honda Motors ranked at 108.
In 2010, When Honda decided to move out of the joint venture, Honda Activa
Group bought the shares held by Honda. Subsequently, in August 2011 the
company was renamed Honda Activa with a new corporate identity. On 4th June
2012,Honda ActivaMoto cop approved a proposal to merge the investment arm of
its parent-Honda Activa Investment Pvt. Ltd. into the automaker. The decision
comes after 18 months of its split from HondaMotor.
Termination of Honda joint venture

Main article: Honda Activa Honda split

In December 2010, the Board of Directors of the Honda Activa Honda Group
have decided to terminate the joint venture between Honda Activa Group of
India and Honda of Japan in a phased manner. The Honda Activa Group would
buy out the 26% stake of the Honda in JV Honda Activa Honda. Under the joint
venture Honda Activa Group could not export to international markets (except
Sri Lanka) and the termination would mean that Honda Activa Group can now
export. Since the beginning, the Honda Activa Group relied on their Japanese
partner Honda for the technology in their Activa. So there are concerns that the
Honda Activa Group might not be able to sustain the performance of the Joint
Venture alone.

Honda Activa

The new brand identity and logo, Honda Activa, was developed by the London
firm Wolff Olin’s. The logo was revealed on 9 August 2011 in London, the day
before the third test match between England andIndia.
Honda Activa can now export to Latin America, Africa and West Asia. Honda
Activa is free to use any vendors for its components instead of just Honda-
approved vendors.
 Advertising
For advertising in Wikipedia articles, see Wikipedia:Spam. For proposal on advertising about Wikipedia,
see Wikipedia:Advertisements.
"Ad", "Advertiser", and "Adverts" redirect here. For the English punk band, see The Adverts. For other
uses, see AD (disambiguation) and Advertiser (disambiguation).

A Advertising is a marketing communication that employs an openly sponsored, non-personal message to

promote or sell a product, service or idea.[1]:465 Sponsors of advertising are typically businesses wishing to
promote their products or services. Advertising is differentiated from public relations in that an advertiser
pays for and has control over the message. It differs from personal selling in that the message is non-
personal, i.e., not directed to a particular individual.[1]:661,672 Advertising is communicated through various
mass media,[2] including traditional media such as newspapers, magazines, television, radio, outdoor
advertising or direct mail; and new media such as search results, blogs, social media, websites or text
messages. The actual presentation of the message in a medium is referred to as an advertisement, or "ad"
or advert for short.

Commercial ads often seek to generate increased consumption of their products or services through
"branding", which associates a product name or image with certain qualities in the minds of consumers. On
the other hand, ads that intend to elicit an immediate sale are known as direct-response advertising. Non-
commercial entities that advertise more than consumer products or services include political parties, interest
groups, religious organizations and governmental agencies. Non-profit organizations may use free modes of
persuasion, such as a public service announcement. Advertising may also be used to reassure employees or
shareholders that a company is viable or successful.

Modern advertising originated with the techniques introduced with tobacco advertising in the 1920s, most
significantly with the campaigns of Edward Bernays, considered the founder of modern, "Madison Avenue"
advertising.[3][4]

Worldwide spending on advertising in 2015 amounted to an estimated US$529.43 billion.[5] Advertising's

projected distribution for 2017 was 40.4% on TV, 33.3% on digital, 9% on newspapers, 6.9% on magazines,
5.8% on outdoor and 4.3% on radio.[6] Internationally, the largest ("big four") advertising-agency groups are
Interpublic, Omnicom, Publicis, and WPP.[7]

In Latin, advertere means "to turn towards".[8]

Barratt introduced many of the crucial ideas that lie behind successful advertising and these were widely
circulated in his day. He constantly stressed the importance of a strong and exclusive brand image for Pears
and of emphasizing the product's availability through saturation campaigns. He also understood the
importance of constantly reevaluating the market for changing tastes and mores, stating in 1907 that "tastes
change, fashions change, and the advertiser has to change with them. An idea that was effective a
generation ago would fall flat, stale, and unprofitable if presented to the public today. Not that the idea of
today is always better than the older idea, but it is different – it hits the present taste."[15]

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

In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it
to lower its price, extend its readership and increase its profitability and the formula was soon copied by all
titles. Around 1840, Volney B. Palmer established the roots of the modern day advertising agency in
Philadelphia. In 1842 Palmer bought large amounts of space in various newspapers at a discounted rate then
resold the space at higher rates to advertisers. The actual ad – the copy, layout, and artwork – was still
prepared by the company wishing to advertise; in effect, Palmer was a space broker. The situation changed
when the first full-service advertising agency of N.W. Ayer & Son was founded in 1869 in Philadelphia.
Ayer & Son offered to plan, create, and execute complete advertising campaigns for its customers. By 1900
the advertising agency had become the focal point of creative planning, and advertising was firmly
established as a profession. [19] Around the same time, in France, Charles-Louis Havas extended the services
of his news agency, Havas to include advertisement brokerage, making it the first French group to organize.
At first, agencies were brokers for advertisement space in newspapers.[19]

Advertising increased dramatically in the United States as industrialization expanded the supply of
manufactured products. In 1919 it was 2.5 percent of gross domestic product (GDP) in the US, and it
averaged 2.2 percent of GDP between then and at least 2007, though it may have declined dramatically
since the Great Recession.
Industry could not benefit from its increased productivity without a substantial increase in consumer
spending. This contributed to the development of mass marketing designed to influence the population's
economic behavior on a larger scale.[20] In the 1910s and 1920s, advertisers in the U.S. adopted the doctrine
that human instincts could be targeted and harnessed – "sublimated" into the desire to purchase
commodities.[21] Edward Bernays, a nephew of Sigmund Freud, became associated with the method and is
sometimes called the founder of modern advertising and public relations.[22] Bernays claimed that:

"[The] general principle, that men are very largely actuated by motives which they conceal from
themselves, is as true of mass as of individual psychology. It is evident that the successful propagandist
must understand the true motives and not be content to accept the reasons which men give for what they
do."[23]

In other words, selling products by appealing to the rational minds of customers (the main method used
prior to Bernays) was much less effective than selling products based on the unconscious desires that
Bernays felt were the true motivators of human action. "Sex sells" became a controversial issue, with
techniques for titillating and enlarging the audience posing a challenge to conventional morality.[24][25]

In the 1920s, under Secretary of Commerce Herbert Hoover, the American government promoted
advertising. Hoover himself delivered an address to the Associated Advertising Clubs of the World in 1925
called 'Advertising Is a Vital Force in Our National Life."[26] In October 1929, the head of the U.S. Bureau
of Foreign and Domestic Commerce, Julius Klein, stated "Advertising is the key to world prosperity."[27]
This was part of the "unparalleled" collaboration between business and government in the 1920s, according
to a 1933 European economic journal.[28]

The tobacco companies became major advertisers in order to sell packaged cigarettes.[29] The tobacco
companies pioneered the new advertising techniques when they hired Bernays to create positive
associations with tobacco smoking.[3][4]

Advertising was also used as a vehicle for cultural assimilation, encouraging workers to exchange their
traditional habits and community structure in favor of a shared "modern" lifestyle.[30] An important tool for
influencing immigrant workers was the American Association of Foreign Language Newspapers (AAFLN).
The AAFLN was primarily an advertising agency but also gained heavily centralized control over much of
the immigrant press.[31][32]
1916 Ladies' Home Journal version of the famous ad by Helen Lansdowne Resor of the J. Walter
Thompson Agency

At the turn of the 20th century, advertising was one of the few career choices for women. Since women
were responsible for most household purchasing done, advertisers and agencies recognized the value of
women's insight during the creative process. In fact, the first American advertising to use a sexual sell was
created by a woman – for a soap product. Although tame by today's standards, the advertisement featured a
couple with the message "A skin you love to touch".[33]

In the 1920s psychologists Walter D. Scott and John B. Watson contributed applied psychological theory to
the field of advertising. Scott said, "Man has been called the reasoning animal but he could with greater
truthfulness be called the creature of suggestion. He is reasonable, but he is to a greater extent
suggestible".[34] He demonstrated this through his advertising technique of a direct command to the
consumer.

On the radio from the 1920s

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

In the early 1920s, the first radio stations were established by radio equipment manufacturers, followed by
non-profit organizations such as schools, clubs and civic groups who also set up their own stations.[35]
Retailer and consumer goods manufacturers quickly recognised radio's potential to reach consumers in their
home and soon adopted advertising techniques that would allow their messages to stand out; slogans,
mascots, and jingles began to appear on radio in the 1920s and early television in the 1930s.[36]

The rise of mass media communications allowed manufacturers of branded goods to bypass retailers by
advertising directly to consumers. This was a major paradigm shift which forced manufacturers to focus on
the brand and stimulated the need for superior insights into consumer purchasing, consumption and usage
behaviour; their needs, wants and aspirations.[37] The earliest radio drama series were sponsored by soap
manufacturers and the genre became known as a soap opera.[38] Before long, radio station owners realized
they could increase advertising revenue by selling 'air-time' in small time allocations which could be sold to
multiple businesses. By the 1930s, these advertising spots, as the packets of time became known, were
being sold by the station's geographical sales representatives, ushering in an era of national radio
advertising.[39]

By the 1940s, manufacturers began to recognize the way in which consumers were developing personal
relationships with their brands in a social/psychological/anthropological sense.[40] Advertisers began to use
motivational research and consumer research to gather insights into consumer purchasing. Strong branded
campaigns for Chrysler and Exxon/Esso, using insights drawn research methods from psychology and
cultural anthropology, led to some of most enduring campaigns of the 20th-century.[41]

Commercial television in the 1950s

In the early 1950s, the DuMont Television Network began the modern practice of selling advertisement
time to multiple sponsors. Previously, DuMont had trouble finding sponsors for many of their programs and
compensated by selling smaller blocks of advertising time to several businesses. This eventually became the
standard for the commercial television industry in the United States. However, it was still a common
practice to have single sponsor shows, such as The United States Steel Hour. In some instances the sponsors
exercised great control over the content of the show – up to and including having one's advertising agency
actually writing the show.[citation needed]
The single sponsor model is much less prevalent now, a notable
exception being the Hallmark Hall of Fame.[citation needed]

Cable television from the 1980s

The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering
the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes in for the
advertising message, rather than it being a by-product or afterthought. As cable and satellite television
became increasingly prevalent, specialty channels emerged, including channels entirely devoted to
advertising, such as QVC, Home Shopping Network, and ShopTV Canada.[42]

On the Internet from the 1990s

Main article: Online advertising

With the advent of the ad server, online advertising grew, contributing to the "dot-com" boom of the
1990s.[43] Entire corporations operated solely on advertising revenue, offering everything from coupons to
free Internet access. At the turn of the 21st century, some websites, including the search engine Google,
changed online advertising by personalizing ads based on web browsing behavior. This has led to other
similar efforts and an increase in interactive advertising.[44]

The share of advertising spending relative to GDP has changed little across large changes in media since
1925. In 1925, the main advertising media in America were newspapers, magazines, signs on streetcars, and
outdoor posters. Advertising spending as a share of GDP was about 2.9 percent. By 1998, television and
radio had become major advertising media; by 2017, the balance between broadcast and online advertising
had shifted, with online spending exceeding broadcast.[45] Nonetheless, advertising spending as a share of
GDP was slightly lower – about 2.4 percent.[46]

Guerrilla marketing involves unusual approaches such as staged encounters in public places, giveaways of
products such as cars that are covered with brand messages, and interactive advertising where the viewer
can respond to become part of the advertising message. This type of advertising is unpredictable, which
causes consumers to buy the product or idea.[47] This reflects an increasing trend of interactive and
"embedded" ads, such as via product placement, having consumers vote through text messages, and various
campaigns utilizing social network services such as Facebook or Twitter.[48]

The advertising business model has also been adapted in recent years.[when?][clarification needed]
In media for
equity, advertising is not sold, but provided to start-up companies in return for equity. If the company grows
and is sold, the media companies receive cash for their shares.

Domain name registrants (usually those who register and renew domains as an investment) sometimes
"park" their domains and allow advertising companies to place ads on their sites in return for per-click
payments. These ads are typically driven by pay per click search engines like Google or Yahoo, but ads can
sometimes be placed directly on targeted domain names through a domain lease or by making contact with
the registrant of a domain name that describes a product. Domain name registrants are generally easy to
identify through WHOIS records that are publicly available at registrar websites.[49]
Classification

Play media
An advertisement for the Wikimedia Foundation

An advertisemen for a diner. Such signs are common on storefronts.

Paying people to hold signs is one of the oldest forms of advertising, as with this human billboard.

A taxicab with an advertisement for Daikin in Singapore. Buses and other vehicles are popular media for
advertisers.

Mobile Billboard in East Coast Park, Singapore

A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station
A Transperth bus with an advertisement on its side

Hot air balloon displaying advertising for GEO magazine

Advertising may be categorized in a variety of ways, including by style, target audience, geographic scope,
medium, or purpose.[2]:9–15 For example, in print advertising, classification by style can include display
advertising (ads with design elements sold by size) vs. classified advertising (ads without design elements
sold by the word or line). Advertising may be local, national or global. An ad campaign may be directed
toward consumers or to businesses. The purpose of an ad may be to raise awareness (brand advertising), or
to elicit an immediate sale (direct response advertising). The term above the line is used for advertising
involving mass media; other types of advertising and promotion are referred to as below the line.[50]

Traditional media

Virtually any medium can be used for advertising. Commercial advertising media can include wall
paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television
adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches,
human billboards and forehead advertising, magazines, newspapers, town criers, sides of buses, banners
attached to or sides of airplanes ("logojets"), in-flight advertisements on seatback tray tables or overhead
storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and
trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets,
shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the
backs of event tickets and supermarket receipts. Any situation in which an "identified" sponsor pays to
deliver their message through a medium is advertising.[51]

Share of global adspend[52]

Medium 2015 2017[disputed – discuss]

Television advertisement 37.7% 34.8%
Desktop online advertising 19.9% 18.2%
Mobile advertising 9.2% 18.4%
Newspaper#Advertising 12.8% 10.1%
Magazines 6.5% 5.3%
Outdoor advertising 6.8% 6.6%
Radio advertisement 6.5% 5.9%
Cinema 0.6% 0.7%
Television
Television advertising is one of the most expensive types of advertising; networks charge large
amounts for commercial airtime during popular events. The annual Super Bowl football game in the
United States is known as the most prominent advertising event on television – with an audience of
over 108 million and studies showing that 50% of those only tuned in to see the
advertisements.[53][54] During the 2014 edition of this game, the average thirty-second ad cost US$4
million, and $8 million was charged for a 60-second spot.[53] Virtual advertisements may be inserted
into regular programming through computer graphics. It is typically inserted into otherwise blank
backdrops[55] or used to replace local billboards that are not relevant to the remote broadcast
audience.[56] More controversially, virtual billboards may be inserted into the background where
none exist in real-life. This technique is especially used in televised sporting events. Virtual product
placement is also possible.[57][58] An infomercial is a long-format television commercial, typically
five minutes or longer. The word "infomercial" is a portmanteau of the words "information" and
 "commercial". The main objective in an infomercial is to create an impulse purchase, so that the
target sees the presentation and then immediately buys the product through the advertised toll-free
telephone number or website. Infomercials describe, display, and often demonstrate products and
their features, and commonly have testimonials from customers and industry professionals.[citation
needed]

A television commercial being filmed in 1948

Radio
Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a
thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the
commercials. While radio has the limitation of being restricted to sound, proponents of radio
advertising often cite this as an advantage. Radio is an expanding medium that can be found on air,
and also online. According to Arbitron, radio has approximately 241.6 million weekly listeners, or
more than 93 percent of the U.S. population.[citation needed]
Online
Online advertising is a form of promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract customers. Online ads are delivered
by an ad server. Examples of online advertising include contextual ads that appear on search engine
results pages, banner ads, in pay per click text ads, rich media ads, Social network advertising,
online classified advertising, advertising networks and e-mail marketing, including e-mail
spam.[citation needed] A newer form of online advertising is Native Ads; they go in a website's news feed
and are supposed to improve user experience by being less intrusive. However, some people argue
this practice is deceptive.[59]
Domain names
Domain name advertising is most commonly done through pay per click web search engines,
however, advertisers often lease space directly on domain names that generically describe their
products. When an Internet user visits a website by typing a domain name directly into their web
browser, this is known as "direct navigation", or "type in" web traffic. Although many Internet users
search for ideas and products using search engines and mobile phones, a large number of users
around the world still use the address bar. They will type a keyword into the address bar such as
"geraniums" and add ".com" to the end of it. Sometimes they will do the same with ".org" or a
country-code Top Level Domain (TLD such as ".co.uk" for the United Kingdom or ".ca" for
 Canada). When Internet users type in a generic keyword and add .com or another top-level domain
(TLD) ending, it produces a targeted sales lead.[60] Domain name advertising was originally
developed by Oingo (later known as Applied Semantics), one of Google's early acquisitions.[61]
Product placements
Covert advertising is when a product or brand is embedded in entertainment and media. For
example, in a film, the main character can use an item or other of a definite brand, as in the movie
Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo
clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of
advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse
shoes several times, calling them "classics", because the film is set far in the future. I, Robot and
Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed
on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as
a result contained many scenes in which Cadillac cars were used. Similarly, product placement for
Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond
films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport
vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most obvious
product placement; the whole film stops to show a Coca-Cola billboard.[citation needed]
Print
Print advertising describes advertising in a printed medium such as a newspaper, magazine, or trade
journal. This encompasses everything from media with a very broad readership base, such as a major
national newspaper or magazine, to more narrowly targeted media such as local newspapers and
trade journals on very specialized topics. One form of print advertising is classified advertising,
which allows private individuals or companies to purchase a small, narrowly targeted ad paid by the
word or line. Another form of print advertising is the display ad, which is generally a larger ad with
design elements that typically run in an article section of a newspaper.[2]:14
Outdoor
Billboards, also known as hoardings in some parts of the world, are large structures located in public
places which display advertisements to passing pedestrians and motorists. Most often, they are
located on main roads with a large amount of passing motor and pedestrian traffic; however, they
can be placed in any location with large numbers of viewers, such as on mass transit vehicles and in
stations, in shopping malls or office buildings, and in stadiums. The form known as street
advertising first came to prominence in the UK by Street Advertising Services to create outdoor
 advertising on street furniture and pavements. Working with products such as Reverse Graffiti, air
dancers and 3D pavement advertising, for getting brand messages out into public spaces.[citation needed]
Sheltered outdoor advertising combines outdoor with indoor advertisement by placing large mobile,
structures (tents) in public places on temporary bases. The large outer advertising space aims to
exert a strong pull on the observer, the product is promoted indoors, where the creative decor can
intensify the impression.[citation needed] Mobile billboards are generally vehicle mounted billboards or
digital screens. These can be on dedicated vehicles built solely for carrying advertisements along
routes preselected by clients, they can also be specially equipped cargo trucks or, in some cases,
large banners strewn from planes. The billboards are often lighted; some being backlit, and others
employing spotlights. Some billboard displays are static, while others change; for example,
continuously or periodically rotating among a set of advertisements. Mobile displays are used for
various situations in metropolitan areas throughout the world, including: target advertising, one-day
and long-term campaigns, conventions, sporting events, store openings and similar promotional
events, and big advertisements from smaller companies.[citation needed]

The RedEye newspaper advertised to its target market at North Avenue Beach with a sailboat billboard on
Lake Michigan.
Point-of-sale
In-store advertising is any advertisement placed in a retail store. It includes placement of a product
in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters
(a.k.a. POP – point of purchase display), eye-catching displays promoting a specific product, and
advertisements in such places as shopping carts and in-store video displays.[citation needed]
Novelties
Advertising printed on small tangible items such as coffee mugs, T-shirts, pens, bags, and such is
known as novelty advertising. Some printers specialize in printing novelty items, which can then be
distributed directly by the advertiser, or items may be distributed as part of a cross-promotion, such
as ads on fast food containers.[citation needed]
Celebrity endorsements
Advertising in which a celebrity endorses a product or brand leverages celebrity power, fame,
money, popularity to gain recognition for their products or to promote specific stores' or products.
Advertisers often advertise their products, for example, when celebrities share their favorite products
or wear clothes by specific brands or designers. Celebrities are often involved in advertising
 campaigns such as television or print adverts to advertise specific or general products. The use of
celebrities to endorse a brand can have its downsides, however; one mistake by a celebrity can be
detrimental to the public relations of a brand. For example, following his performance of eight gold
medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with
Kellogg's was terminated, as Kellogg's did not want to associate with him after he was photographed
smoking marijuana.[citation needed]
Celebrities such as Britney Spears have advertised for multiple
products including Pepsi, Candies from Kohl's, Twister, NASCAR, and Toyota.[citation needed]
Aerial
Using aircraft, balloons or airships to create or display advertising media. Skywriting is a notable
example.[citation needed]

An Allegiant Air aircraft in the special Blue Man Group livery

New media and advertising approaches

Increasingly, other media are overtaking many of the "traditional" media such as television, radio and
newspaper because of a shift toward the usage of the Internet for news and music as well as devices like
digital video recorders (DVRs) such as TiVo.[62]

Online advertising began with unsolicited bulk e-mail advertising known as "e-mail spam". Spam has been
a problem for e-mail users since 1978.[63] As new online communication channels became available,
advertising followed. The first banner ad appeared on the World Wide Web in 1994.[64] Prices of Web-
based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that
the website receives.[citation needed]

In online display advertising, display ads generate awareness quickly. Unlike search, which requires
someone to be aware of a need, display advertising can drive awareness of something new and without
previous knowledge. Display works well for direct response. Display is not only used for generating
awareness, it's used for direct response campaigns that link to a landing page with a clear 'call to
action'.[citation needed]
As the mobile phone became a new mass medium in 1998 when the first paid downloadable content
appeared on mobile phones in Finland,[65][citation needed]
mobile advertising followed, also first launched in
Finland in 2000.[citation needed] By 2007 the value of mobile advertising had reached $2 billion and providers
such as Admob delivered billions of mobile ads.[citation needed]

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

Some companies have proposed placing messages or corporate logos on the side of booster rockets and the
International Space Station.[citation needed]

Unpaid advertising (also called "publicity advertising"), can include personal recommendations ("bring a
friend", "sell it"), spreading buzz, or achieving the feat of equating a brand with a common noun (in the
United States, "Xerox" = "photocopier", "Kleenex" = tissue, "Vaseline" = petroleum jelly, "Hoover" =
vacuum cleaner, and "Band-Aid" = adhesive bandage). However, some companies[which?] oppose the use of
their brand name to label an object. Equating a brand with a common noun also risks turning that brand into
a generic trademark – turning it into a generic term which means that its legal protection as a trademark is
lost.[66][disputed – discuss]

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

A new promotion concept has appeared, "ARvertising", advertising on augmented reality technology.[67]

Controversy exists on the effectiveness of subliminal advertising (see mind control), and the pervasiveness
of mass messages (propaganda).

Rise in new media

US newspaper advertising revenue, Newspaper Association of America published data[68]

With the Internet came many new advertising opportunities. Pop-up, Flash, banner, pop-under,
advergaming, and email advertisements (all of which are often unwanted or spam in the case of email) are
now commonplace. Particularly since the rise of "entertaining" advertising, some people may like an
advertisement enough to wish to watch it later or show a friend.[citation needed]
In general, the advertising
community has not yet made this easy, although some have used the Internet to widely distribute their ads to
anyone willing to see or hear them. In the last three quarters of 2009, mobile and Internet advertising grew
by 18% and 9% respectively, while older media advertising saw declines: −10.1% (TV), −11.7% (radio),
−14.8% (magazines) and −18.7% (newspapers).[citation needed] Between 2008 and 2014, U.S. newspapers lost
more than half their print advertising revenue.[69]

Niche marketing

Another significant trend regarding future of advertising is the growing importance of the niche market
using niche or targeted ads. Also brought about by the Internet and the theory of the long tail, advertisers
will have an increasing ability to reach specific audiences. In the past, the most efficient way to deliver a
message was to blanket the largest mass market audience possible.[citation needed] However, usage tracking,
customer profiles and the growing popularity of niche content brought about by everything from blogs to
social networking sites, provide advertisers with audiences that are smaller but much better defined,[citation
needed]
leading to ads that are more relevant to viewers and more effective for companies' marketing products.
Among others, Comcast Spotlight is one such advertiser employing this method in their video on demand
menus. These advertisements are targeted to a specific group and can be viewed by anyone wishing to find
out more about a particular business or practice, from their home. This causes the viewer to become
proactive and actually choose what advertisements they want to view.[70] Niche marketing could also be
helped by bringing the issue of colour into advertisements. Different colours play major roles when it comes
to marketing strategies, for example, seeing the blue can promote a sense of calmness and gives a sense of
security which is why many social networks such as Facebook use blue in their logos. Google AdSense is
an example of niche marketing. Google calculates the primary purpose of a website and adjusts ads
accordingly; it uses keywords on the page (or even in emails) to find the general ideas of topics disused and
places ads that will most likely be clicked on by viewers of the email account or website visitors.

Crowdsourcing
Main article: Crowdsourcing

The concept of crowdsourcing has given way to the trend of user-generated advertisements. User-generated
ads are created by people, as opposed to an advertising agency or the company themselves, often resulting
from brand sponsored advertising competitions. For the 2007 Super Bowl, the Frito-Lays division of
PepsiCo held the "Crash the Super Bowl" contest, allowing people to create their own Doritos
commercials.[71] Chevrolet held a similar competition for their Tahoe line of SUVs.[71] Due to the success of
the Doritos user-generated ads in the 2007 Super Bowl, Frito-Lays relaunched the competition for the 2009
and 2010 Super Bowl. The resulting ads were among the most-watched and most-liked Super Bowl ads. In
fact, the winning ad that aired in the 2009 Super Bowl was ranked by the USA Today Super Bowl Ad Meter
as the top ad for the year while the winning ads that aired in the 2010 Super Bowl were found by Nielsen's
BuzzMetrics to be the "most buzzed-about".[72][73] Another example of companies using crowdsourcing
successfully is the beverage company Jones Soda that encourages consumers to participate in the label
design themselves.

This trend has given rise to several online platforms that host user-generated advertising competitions on
behalf of a company. Founded in 2007, Zooppa has launched ad competitions for brands such as Google,
Nike, Hershey's, General Mills, Microsoft, NBC Universal, Zinio, and Mini Cooper.[74] Crowdsourced
remains controversial, as the long-term impact on the advertising industry is still unclear.[75]

Global advertising

Main article: Global marketing

Advertising has gone through five major stages of development: domestic, export, international, multi-
national, and global. For global advertisers, there are four, potentially competing, business objectives that
must be balanced when developing worldwide advertising: building a brand while speaking with one voice,
developing economies of scale in the creative process, maximising local effectiveness of ads, and increasing
the company's speed of implementation. Born from the evolutionary stages of global marketing are the three
primary and fundamentally different approaches to the development of global advertising executions:
exporting executions, producing local executions, and importing ideas that travel.[76]

Advertising research is key to determining the success of an ad in any country or region. The ability to
identify which elements and/or moments of an ad contribute to its success is how economies of scale are
maximized. Once one knows what works in an ad, that idea or ideas can be imported by any other market.
Market research measures, such as Flow of Attention, Flow of Emotion and branding moments provide
insight into what is working in an ad in any country or region because the measures are based on the visual,
not verbal, elements of the ad.[77]

Foreign public messaging

See also: Soft power and International tourism advertising

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

Diversification

In the realm of advertising agencies, continued industry diversification has seen observers note that "big
global clients don't need big global agencies any more".[78] This is reflected by the growth of non-traditional
agencies in various global markets, such as Canadian business TAXI and SMART in Australia and has been
referred to as "a revolution in the ad world".[79]
New technology

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

To counter this effect, a variety of strategies have been employed. Many advertisers have opted for product
placement on TV shows like Survivor. Other strategies include integrating advertising with internet-
connected EPGs, advertising on companion devices (like smartphones and tablets) during the show, and
creating TV apps. Additionally, some like brands have opted for social television sponsorship.[80]

The emerging technology of drone displays has recently been used for advertising purposes.[81]

Advertising education

In recent years there have been several media literacy initiatives, and more specifically concerning
advertising, that seek to empower citizens in the face of media advertising campaigns.[82]

Advertising education has become popular with bachelor, master and doctorate degrees becoming available
in the emphasis.[citation needed] A surge in advertising interest is typically attributed to the strong relationship
advertising plays in cultural and technological changes, such as the advance of online social
networking.[citation needed]
A unique model for teaching advertising is the student-run advertising agency,
where advertising students create campaigns for real companies.[83] Organizations such as the American
Advertising Federation establish companies with students to create these campaigns.[citation needed]

Purposes

Advertising is at the front of delivering the proper message to customers and prospective customers. The
purpose of advertising is to inform the consumers about their product and convince customers that a
company's services or products are the best, enhance the image of the company, point out and create a need
for products or services, demonstrate new uses for established products, announce new products and
programs, reinforce the salespeople's individual messages, draw customers to the business, and to hold
existing customers.[84]
Sales promotions and brand loyalty

Sales promotions are another way to advertise. Sales promotions are double purposed because they are used
to gather information about what type of customers one draws in and where they are, and to jump start sales.
Sales promotions include things like contests and games, sweepstakes, product giveaways, samples
coupons, loyalty programs, and discounts. The ultimate goal of sales promotions is to stimulate potential
customers to action.[85]

Criticisms

Main article: Criticism of advertising

See also: Racial stereotyping in advertising

Mobstr - Visual Pollution, London

While advertising can be seen as necessary for economic growth,[27] it is not without social costs.
Unsolicited commercial e-mail and other forms of spam have become so prevalent as to have become a
major nuisance to users of these services, as well as being a financial burden on internet service
providers.[86] Advertising is increasingly invading public spaces, such as schools, which some critics argue
is a form of child exploitation.[87] This increasing difficulty in limiting exposure to specific audiences can
result in negative backlash for advertisers.[88] In tandem with these criticisms, the advertising industry has
seen low approval rates in surveys and negative cultural portrayals.[89]

One of the most controversial criticisms of advertisement in the present day is that of the predominance of
advertising of foods high in sugar, fat, and salt specifically to children. Critics claim that food
advertisements targeting children are exploitive and are not sufficiently balanced with proper nutritional
education to help children understand the consequences of their food choices. Additionally, children may
not understand that they are being sold something, and are therefore more impressionable.[90] Michelle
Obama has criticized large food companies for advertising unhealthy foods largely towards children and has
requested that food companies either limit their advertising to children or advertise foods that are more in
line with dietary guidelines.[91] The other criticisms include the change that are brought by those
advertisements on the society and also the deceiving ads that are aired and published by the corporations.
Cosmetic and health industry are the ones which exploited the highest and created reasons of concern.[92]
Regulation

There have been increasing efforts to protect the public interest by regulating the content and the influence
of advertising. Some examples include restrictions for advertising alcohol, tobacco or gambling imposed in
many countries, as well as the bans around advertising to children, which exist in parts of Europe.
Advertising regulation focuses heavily on the veracity of the claims and as such, there are often tighter
restrictions placed around advertisements for food and healthcare products.[93]

The advertising industries within some countries rely less on laws and more on systems of self-
regulation.[93][94][95] Advertisers and the media agree on a code of advertising standards that they attempt to
uphold. The general aim of such codes is to ensure that any advertising is 'legal, decent, honest and truthful'.
Some self-regulatory organizations are funded by the industry, but remain independent, with the intent of
upholding the standards or codes like the Advertising Standards Authority in the UK.[96]

In the UK, most forms of outdoor advertising such as the display of billboards is regulated by the UK Town
and County Planning system. Currently, the display of an advertisement without consent from the Planning
Authority is a criminal offense liable to a fine of £2,500 per offense.[97] In the US, many communities
believe that many forms of outdoor advertising blight the public realm.[98] As long ago as the 1960s in the
US there were attempts to ban billboard advertising in the open countryside.[99] Cities such as São Paulo
have introduced an outright ban[100] with London also having specific legislation to control unlawful
displays.

Some governments restrict the languages that can be used in advertisements, but advertisers may employ
tricks to try avoiding them. In France for instance, advertisers sometimes print English words in bold and
French translations in fine print to deal with Article 120 of the 1994 Toubon Law limiting the use of
English.[101]

The advertising of pricing information is another topic of concern for governments. In the United States for
instance, it is common for businesses to only mention the existence and amount of applicable taxes at a later
stage of a transaction.[102] In Canada and New Zealand, taxes can be listed as separate items, as long as they
are quoted up-front.[103][104] In most other countries, the advertised price must include all applicable taxes,
enabling customers to easily know how much it will cost them.[105][106][107]
Theory

See also: Advertising management

Hierarchy-of-effects models

Various competing models of hierarchies of effects attempt to provide a theoretical underpinning to

advertising practice.[clarification needed][108]

 The model of Clow and Baack[109] clarifies the objectives of an advertising campaign and for each
individual advertisement. The model postulates six steps a buyer moves through when making a
purchase:
1. Awareness
2. Knowledge
3. Liking
4. Preference
5. Conviction
6. Purchase
 Means-end theory suggests that an advertisement should contain a message or means that leads the
consumer to a desired end-state.[110]
 Leverage points aim to move the consumer from understanding a product's benefits to linking those
benefits with personal values.[citation needed]

Marketing mix

Main article: Marketing mix

The marketing mix was proposed by professor E. Jerome McCarthy in the 1960s.[111] It consists of four
basic elements called the "four Ps". Product is the first P representing the actual product. Price represents
the process of determining the value of a product. Place represents the variables of getting the product to the
consumer such as distribution channels, market coverage and movement organization. The last P stands for
Promotion which is the process of reaching the target market and convincing them to buy the product.
In the 1990s, the concept of four Cs was introduced as a more customer-driven replacement of four P's.[112]
There are two theories based on four Cs: Lauterborn's four Cs (consumer, cost, communication,
[113]
convenience) and Shimizu's four Cs (commodity, cost, communication, channel) in the 7Cs Compass
Model (Co-marketing). Communications can include advertising, sales promotion, public relations,
publicity, personal selling, corporate identity, internal communication, SNS, and MIS.[114][115][116][117]

Advertising research

Main article: Advertising research

Advertising research is a specialized form of research that works to improve the effectiveness and efficiency
of advertising. It entails numerous forms of research which employ different methodologies. Advertising
research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns.

Pre-testing includes a wide range of qualitative and quantitative techniques, including: focus groups, in-
depth target audience interviews (one-on-one interviews), small-scale quantitative studies and physiological
measurement. The goal of these investigations is to better understand how different groups respond to
various messages and visual prompts, thereby providing an assessment of how well the advertisement meets
its communications goals.[118]

Post-testing employs many of the same techniques as pre-testing, usually with a focus on understanding the
change in awareness or attitude attributable to the advertisement. With the emergence of digital advertising
technologies, many firms have begun to continuously post-test ads using real-time data. This may take the
form of A/B split-testing or multivariate testing.

Continuous ad tracking and the Communicus System are competing examples of post-testing advertising
research types.[119]

Semiotics

Main article: Advertising research

Meanings between consumers and marketers depict signs and symbols that are encoded in everyday
objects.[120] Semiotics is the study of signs and how they are interpreted. Advertising has many hidden signs
and meanings within brand names, logos, package designs, print advertisements, and television
advertisements. Semiotics aims to study and interpret the message being conveyed in (for example)
advertisements. Logos and advertisements can be interpreted at two levels – known as the surface level and
the underlying level. The surface level uses signs creatively to create an image or personality for a
product.[citation needed]
These signs can be images, words, fonts, colors, or slogans. The underlying level is
made up of hidden meanings. The combination of images, words, colors, and slogans must be interpreted by
the audience or consumer.[121] The "key to advertising analysis" is the signifier and the signified. The
signifier is the object and the signified is the mental concept.[122] A product has a signifier and a signified.
The signifier is the color, brand name, logo design, and technology. The signified has two meanings known
as denotative and connotative. The denotative meaning is the meaning of the product. A television's
denotative meaning might be that it is high definition. The connotative meaning is the product's deep and
hidden meaning. A connotative meaning of a television would be that it is top-of-the-line.[123]

Apple's commercials[when?] used a black silhouette of a person that was the age of Apple's target market.
They placed the silhouette in front of a blue screen so that the picture behind the silhouette could be
constantly changing. However, the one thing that stays the same in these ads is that there is music in the
background and the silhouette is listening to that music on a white iPod through white headphones. Through
advertising, the white color on a set of earphones now signifies that the music device is an iPod. The white
color signifies almost all of Apple's products.[124]

The semiotics of gender plays a key influence on the way in which signs are interpreted. When considering
gender roles in advertising, individuals are influenced by three categories. Certain characteristics of stimuli
may enhance or decrease the elaboration of the message (if the product is perceived as feminine or
masculine). Second, the characteristics of individuals can affect attention and elaboration of the message
(traditional or non-traditional gender role orientation). Lastly, situational factors may be important to
influence the elaboration of the message.[125]

There are two types of marketing communication claims-objective and subjective.[126] Objective claims
stem from the extent to which the claim associates the brand with a tangible product or service feature. For
instance, a camera may have auto-focus features. Subjective claims convey emotional, subjective,
impressions of intangible aspects of a product or service. They are non-physical features of a product or
service that cannot be directly perceived, as they have no physical reality. For instance the brochure has a
beautiful design.[127] Males tend to respond better to objective marketing-communications claims while
females tend to respond better to subjective marketing communications claims.[128]
Voiceovers are commonly used in advertising. Most voiceovers are done by men, with figures of up to 94%
having been reported.[129] There have been more female voiceovers in recent years,[when?] but mainly for
food, household products, and feminine-care products.[130]

Gender effects in the processing of advertising

According to a 1977 study by David Statt, females process information comprehensively, while males
process information through heuristic devices such as procedures, methods or strategies for solving
problems, which could have an effect on how they interpret advertising.[131][need quotation to verify] According to
this study, men prefer to have available and apparent cues to interpret the message, whereas females engage
in more creative, associative, imagery-laced interpretation. Later research by a Danish team[132] found that
advertising attempts to persuade men to improve their appearance or performance, whereas its approach to
women aims at transformation toward an impossible ideal of female presentation. In Paul Suggett's article
"The Objectification of Women in Advertising"[133] he discusses the negative impact that these women in
advertisements, who are too perfect to be real, have on women, as well as men, in real life. Advertising's
manipulation of women's aspiration to these ideal types as portrayed in film, in erotic art, in advertising, on
stage, within music videos, and through other media exposures requires at least a conditioned rejection of
female reality, and thereby takes on a highly ideological cast. Studies show that these expectations of
women and young girls negatively impact their views about their bodies and appearances. These
advertisements are directed towards men. Not everyone agrees: one critic viewed this monologic, gender-
specific interpretation of advertising as excessively skewed and politicized.[134][need quotation to verify] There are
some companies, however, like Dove and Aerie that are creating commercials to portray more natural
women, with less post production manipulation, so more women and young girls are able to relate to
them.[citation needed] These commercials give more natural beauty standards.[citation needed]

More recent research by Martin (2003) reveals that males and females differ in how they react to advertising
depending on their mood at the time of exposure to the ads, and on the affective tone of the advertising.
When feeling sad, males prefer happy ads to boost their mood. In contrast, females prefer happy ads when
they are feeling happy. The television programs in which ads are embedded influence a viewer's mood
state.[135] Susan Wojcicki, author of the article "Ads that Empower Women don’t just Break Stereotypes—
They’re also Effective"[136] discusses how advertising to women has changed since the first Barbie
commercial where a little girl tells the doll that, she wants to be just like her. Little girls grow up watching
advertisements of scantily clad women advertising things from trucks to burgers, and Wojcicki states that
this shows girls that they are either arm candy or eye candy.
OBJECTIVE OF THE STUDY
Advertising is one of the most creative fields and is a part of Marketing. In fact, Advertising has become so big that
many people get confused about the differences between marketing and advertising. Nonetheless, the objectives of
Advertising are completely different from Marketing. In summary, it is the objective of advertising to carry out
communications between the brand and the customer. Before the adoption of digital marketing and advertising,
most of the communication between the brand and the customer was one way. However, nowadays even digital
advertising like sponsored ads are a chance of two-way communication.

1) Introduce a product

The most common reason Advertising is used is to introduce a new product in the market. This can be done
by existing brands as well as new brands. Have a look at the latest IPhone in the market or a Samsung
smartphone and you will find a lot of advertisement for these new products. The objective of advertising
here is to tell customers – “Here is the new product we have launched”

2) Introduce a brand

There are many startups in the market today and many of them are services. Services are generally marketed
as a brand rather than marketing their individual service product. Thus, Uber will market its own brand and
introduce that Uber has started servicing customers in a new market. Same goes for Oracle or Accenture –
Companies which market their brand and their presence in the market rather than marketing an individual
product.

3) Awareness creation

According to the AIDA model, the most important job of advertising is to get attention which is nothing but
Awareness creation. Advertising needs to capture the attention of people and make them aware of the
products or their features in the market.

4) Acquiring customers or Brand switching

One of the major objectives of advertising and the first objective of many advertising campaigns is to
acquire more customers. This is also known as making the customers switch brands. This can happen by
passing on a strong message so that the potential customer leaves the brand which he is tied up with and
comes to your brand.

Example – Most telecom companies launch plans and strategies just to acquire customers and then advertise
these strategies in the market so that the customer switches brands. There is hardly any differentiation in the
telecom market – thus advertising is a major way to acquire customers. The Vodafone Zoozoo campaign
was just that – Influence the customers and create passion in such a way that they do brand switching,

5) Differentiation and value creation

A most important aspect of Advertising is to differentiate the product or the service from those of the
competitor. A customer can only differentiate between services based on the value the firms provides over
that of competitors.

If a competitor is just advertising the features, whereas your firm advertises the promises and commitments
that it will keep, naturally more customers will “trust” your brand over others. This is the reason that
advertising is used commonly to create value and to differentiate one brand from another.

Coca cola, Toyota, Amazon are some of the most trusted brands in the market. It is no doubt that these
brands are also amongst the top advertisers in their respective segments. These brands target value creation
as well as differentiation via their advertising campaigns.

6) Brand building

When a brand regularly advertises and delivers quality products and fulfills the promises it makes,
automatically the value of the brand is built. However, there are many other aspects of brand building. One
of the first ones is to advertise via ATL and BTL campaigns etc.

7) Positioning the product – Product and brand recall

One of the key factors in the actual purchase of a product is the products recall and the brand recall at the
time of purchase. Amongst the objectives of advertising, one objective is to correctly position the brand in
the minds of the customer.
Examples include premium brands like Ralph Lauren, Gucci, Hermes or others which are clearly positioned
premium. This position is achieved by first having a very premium product line which is high priced but it
is also achieved by buying premium advertising and placing the ads in media vehicles which are very
premium.

Besides premium marketing, we can also look at niche marketing. Kent is a company which has focused all
its advertising on its purification capability. They claim they are the masters of water purifiers. Their
repeated advertising creates a high product and brand recall in the minds of the customers thereby
positioning them as the top purchased brand in the water purifier segment.

8) Increase sales

Naturally, with so many steps being taken to advertise the product, it is no doubt that one of the objectives
of advertising is to increase sales. Many a times this objective is achieved via advertising. However, if the
campaign is improper or the audience is not targeted properly, then advertising can fail in its objective.

Nonetheless, there are many seasonal products wherein an immediate increase in sale is observed due to
advertising. The best example is Ice cream brands which advertise heavily during the summer months
because they know that advertising will immediately influence the sales figures. They do not waste money
in advertising during the winter season at all.

9) Increase profits

With the value being communicated and the brand being differentiated as well as sales being increased,
there is no doubt that advertising can contribute a lot to increasing profits. Advertising should never be
looked at as an expense or a liability. In fact, it is an investment for a firm just like a brand is an investment.

Look at the likes of Siemens or Bosch – Brands which have invested heavily in positioning themselves on
the basis of their German engineering. As a result, today they demand high profits in whatever segments
they operate in or whatever products they sell.

10) Create Desire

Again, referring to the AIDA model, one of the key factors in advertising is to create a desire for the
product so that the customer wants the product. Brands which are known to do this are BMW, Audi, Harley
Davidson, Adidas and others. These brands are master of advertising where they create so much desire for
the product that the customer absolutely wants a product even if he doesn’t need it.

There are many stories of Harley Davidson as a brand wherein customers have saved money for years to
buy a particular bike of Harley Davidson. Same stories can be heard about an Audi or a BMW. A unique
example in this case are the bottles of Absolut Vodka. Absolut Vodka is so famous for its bottles that there
are collectors who desire to collect all different bottle types of Absolut Vodka. Such desire creation is an
effect of advertising + brand building + the fan following over time.

11) Call to action

One of the most common objectives of digital advertising and digital marketing is to get a call to action.
Brands invest in banner ads, link ads as well as social ads to get their potential customers to take an action.
This action can be filling up an Email form, clicking on a link, watching a video, giving a survey or what
not.

There are brands which have done ATL advertising and shown half the ads and then attracted customers to
their YouTube channel so that they could track their viewers and get them to take some action. Call to
actions are also one of the objectives of advertising in which case the actions differ from time to time based
on what the marketer wants to achieve.

The above are the different types of Objectives of Advertising. Naturally, a firm can have 2-3 objectives for
advertising their products or services.

Some of these objectives might be short term like advertising to increase seasonal sales whereas other
objectives might be long term like Brand building and increasing profits. Depending on the current standing
of the firm in their market, they can choose their advertising objective and come up with an advertising
campaign.
ADVANTAGES OF ADVERTISEMENT
The major advantages of advertising are: (1) introduces a new product in the market, (2) expansion of the
market, (3) increased sales, (4) fights competition, (5) enhances good-will, (6) educates the consumers, (7)
elimination of middlemen, (8) better quality products, (9) supports the salesmanship, (10) more employment
opportunities, (11) reduction in the prices of newspapers and magazines, (12) higher standard of living!

The benefits derived from advertising are manifold. It is one of the most important components of the
marketing process.

This is beneficial to manufacturers, traders, consumers and society as a whole. Advertising offers the
following advantages.

(1) Introduces a New Product in the Market:

Advertising plays significant role in the introduction of a new product in the market. It stimulates the people
to purchase the product.

(2) Expansion of the Market:

It enables the manufacturer to expand his market. It helps in exploring new markets for the product and
retaining the existing markets. It plays a sheet anchor role in widening the marketing for the manufacturer’s
products even by conveying the customers living at the far flung and remote areas.

(3) Increased Sales:

Advertisement facilitates mass production to goods and increases the volume of sales. In other words, sales
can be increased with additional expenditure on advertising with every increase in sale, selling expenses
will decrease.

(4) Fights Competition:

Advertising is greatly helpful in meeting the forces of competition prevalent in the market. Continuous
advertising is very essential in order to save the product from the clutches of the competitors.

(5) Enhances Good-Will:

Advertising is instrumental in increasing goodwill of the concern. It introduces the manufacturer and his
product to the people. Repeated advertising and better quality of products brings more reputation for the
manufacturer and enhances goodwill for the concern.

(6) Educates The Consumers:

Advertising is educational and dynamic in nature. It familiarises the customers with the new products and
their diverse uses and also educates them about the new uses of existing products.

(7) Elimination of Middlemen:

It aims at establishing a direct link between the manufacturer and the consumer, thereby eliminating the
marketing intermediaries. This increases the profits of the manufacturer and the consumer gets the products
at lower prices.

(8) Better Quality Products:

Different goods are advertised under different brand names. A branded product assures a standard quality to
the consumers. The manufacturer provides quality goods to the consumers and tries to win their confidence
in his product.

(9) Supports The Salesmanship:

Advertising greatly facilitates the work of a salesman. The customers are already familiar with the product
which the salesman sells. The selling efforts of a salesman are greatly supplemented by advertising. It has
been rightly pointed out that “selling and advertising are cup and saucer, hook and eye, or key and lock
wards.”

(10) More Employment Opportunities:

Advertising provides and creates more employment opportunities for many talented people like painters,
photographers, singers, cartoonists, musicians, models and people working in different advertising agencies.

(11) Reduction in the Prices of Newspapers and Magazines Etc:

Advertising is immensely helpful in reducing the cost of the newspapers and magazines etc. The cost of
bringing out a newspaper is largely met by the advertisements published therein.

(12) Higher Standard of Living:

The experience of the advanced nations shows that advertising is greatly responsible for raising the living
standards of the people. In the words of Winston Churchil “advertising nourishes the consuming power of
men and creates wants for better standard of living.” By bringing to the knowledge of the consumers
different variety and better quality products, it has helped a lot in increasing the standard of living in a
developing economy like India.
DISADVANTAGES OF ADVERTISEMENT
1. Cost

One strong objection to advertising is that it is a very costly function. A recent study found that the cost of
ads exceeded that of sales by six percent. In theory, the high cost of advertising is covered by increased
sales of the advertised product. But this usually is not the case.

Advertising is an indirect cost which is added into distribution expenses. When expenses increase, the
selling price of products does too. With large advertisers spending thousands of rupees a week solely on
ads, advertising costs make up a significant part of the price of an advertised product. Thus, consumers have
to pay higher prices for advertised products.

Advertising is an economic waste because unbalanced advertising causes certain goods to cost more than
they should.

2. Misleading Claims

Some advertisers cleverly create misleading impressions of their goods. They present a very rosy picture of
their products with the object of increasing their sales.

3. Encouragement of Monopoly

Advertisement restricts competition among products. Big industrialists and manufacturers can use
advertising to increase their monopolistic control over the market, control that is always used against the
public interest. Advertising increases awareness about a few products, causing all other options to be
overlooked.

4. High Prices

It is undoubtedly true that effective advertising increases sales volume. These increased sales require more
products. Large-scale production brings down the cost of goods per unit, which in turn reduces the selling
price. But if the producers do not lower the prices, the burden of advertising falls on the shoulders of the
consumer.
5. Small Businesses Have Restricted Access

Small businesses cannot properly advertise their products due to limited resources and because the entire
market for many goods and services is dictated by the whims of large advertisers. This makes it virtually
impossible for small businesses to compete, so they eventually disappear form the market.

6. Misdirection of Purchasing Power

Advertising high-priced luxury goods influences the purchasing power of consumers. This results in some
people using unscrupulous means to increase their income for the purpose of getting things they perceive as
necessities of life. Thus, unnecessary advertising creates societal corruption.

7. Dangerous Distractions

Billboards, posters, and electronic moving pictures are placed around important intersections, which distract
drivers and pedestrians. Glaring neon lights and signs are hazards with potentially deadly consequences.

8. Unfulfilled Desires

Another disadvantage of advertising is that it influences the mind of public, creating the desire and taste for
new products that are not actually necessities of life and that most cannot afford. Thus, advertising fosters
unrequited desire, which in turn causes unhappiness.

9. Promotion of Social Evils

Some businesses support immoral and sensational programs as well as crime stories on television and radio,
choosing them as vehicles for advertising. These programs corrupt the values of young people, promoting
social evils.

10. Confusion About Characteristics of Products

Many similar products are advertised on the market. But producers put great emphasis on minor differences
in the formula, technique, or make of advertised goods. For example, there are many brands of shaving
creams which perform the same function, but are advertised as dramatically different products. Due to
misinformation disseminated by advertising, it has become impossible for the average buyer to judge with
any certainty the quality of product they are buying.
SCOPE OF THE STUDY
Scope of Advertising and Promotions

“The scope of Advertising is increasing everyday”

Advertising has a very wide scope in marketing and in the social system. The scope ofadvertising is
described on the basis of activities included under advertising and their forms and systems, objectives and
functions. These include the
Message—which has been discussed earlier.
Media—has also been discussed in detail.
Merchandise—It is the buying and selling of the product-advertisement covers the attributes of the product
to be sold. The outstanding qualities of the product should be assessedand exposed with emphasis. New and
existing products are advertized to popularise them. A firm is considered as an important source of
advertising.

Advertising Functions: No product can be sold without some form of advertising.

 Advertising creates demand.

 Promotes marketing system.
 Helps middleman.
 Builds image for the organisation.
 Makes customer aware of the price and attributes of the product leading to greatersales.
 Brings awareness in the masses.
 Consumer demand can be assessed by marketing researchers and advertising research.
 It helps in expanding the market.
 It helps the middleman to easily sell the product.
 It brings customers and sellers together.
 Advertisement is economical when targeted at the masses.

Nature and Scope of Advertising Management

The nature and scope of advertising management are explained below

Advertiser:is the most important person as he is the customer and spends money on it.He gives
employment to a lot of people and supports the advertising agencies. The advertiser also has a great social
responsibility to create a sound social and economic system.
Objective:The advertising objectives are many in number
However, we shall mention a few:

 To increase sale.
 To create awareness and interest.
 Establishing and sustaining the product.
 To help middleman.
 To persuade, to remain and inform the masses.

Activities:The activities included are mass communication, carrying message, image building. It also
persuades and reminds. The activities should be performed regularly andeconomically.
Art & Science:Management is both an art and science and Advertisement being a partof marketing is also
an art. It creates, it requires experience. It is a science because it is based on certain social-psychological
factors. Cause and effect relationship are studied in advertising.
The effect of advertising is also studied by experimentation. The results of advertising canbe measured. It is
tested on scientific principle as well. Therefore, we see that the scope of advertising is large and varied.

Different Dimensions of Advertising

There are a number of books written on advertising and they cover different dimensions.

 Social dimension of advertising: It informs the society of various products available, their
technology, uses and how the society can benefit from new innovations, like creditcards, debit cards,
golden cards, global cards, mobile phones, travel offers etc. Advertising also educates the people
and the society against hazards of life. Cancer, “Smoking is injurious to health”, hazardous driving,
“Better late than never”. Similarly, we have drive against pollution, against population explosion
etc. Advertising should not deceive the society. It should notmanipulate the consumers against their
will. They can get exploited by sex appeal.
 Economic dimensions: A lot of money is spent on advertising specially when
expensive Media like T.V. is used to spread the message. There are various media which canbe
used. A lot of employment is generated as people get involved in copy writing mission, Message,
Media, Money, Measurement of advertising effectiveness etc. are coordinated. Themost important
thing to consider is how much money is to be spent on various campaigns. Advertising makes the
 consumer aware of products and services and provides informationfor making right decisions. It can
encourage consumption and foster economic growth. Advertising makes entry possible for products
and brands into the market. With larger demandit leads to economies of scale in production,
marketing and in distribution.
 Psycological aspects: One aspect of psycological advertising is that drinking of Alcohol, Beer,
Wine should not be targeted on the children or those below the age of 21. Womenin society are also
critical about obsence ads and promoting sexual permissiveness in the advertisementi.e., Calvin
Klein. There is a lot of criticism on advertising against sexual appealsand nudity. They demean
women as being sex objects. Such ads can be for cosmetics Lingerieand other products used by
women. When a consumer tries to buy a product. He has a lot of choices before him. He getsguided
by the family, by friends, by advertisements, by salesperson and the consumer getsconfused and
often feels that he has made a wrong choice. He undergoes both pre and postpurchase dissonance
and the marketeertries to remove his anxiety by reinforcing his choice.
 Communication task: Advertising communicates and captures the attention ofthe buyer. It
communicates through stories, through episodes, through tables and charts. Thecommunication must
be interpreted in the same manner that it is intended. It also bringsattitudinal changes and changes
the faiths and beliefs of the consumer.
 Triangle of communication: The triangle shows that the advertiser has resourceswhich helps him
to create messages. These messages reach the audience with the help of amedia. The audience is
exposed to the message to a certain extent and also gets distracted bymany factors like noise and
other work. The audience then responds to the message and thefeed back goes to the advertiser. This
leads to researches by the advertiser and his agency.
MEDIA OF ADVERTISEMENT USED BY HONDA
Western consumers know Honda mainly for its cars - it is the #3 Japanese auto manufacturer worldwide behind
Toyota and Nissan. But throughout Asia the company is famed for the motorbikes on which the business was
originally built. Honda is the world's leading bike manufacturer, selling almost 20 million of them in 2017, nearly
four times the number of automobiles it shipped. In the car division, Honda's top models are the ever-popular Civic
and the Accord, a huge hit for 40 years in America where it represents around 20% of the company's unit sales. Until
the crisis which enveloped virtually all the world's auto manufacturers during 2008, Honda had demonstrated strong
growth because of its emphasis on affordable, reliable, cheap-to-run vehicles. However it has lagged a little behind
Toyota and Nissan in Western markets, partly because it offers a smaller passenger car range. One rare but
significant misstep has been its inability to convert an early lead in hybrid fuel technology into actual sales. It aimed
to make up for that error with an aggressive rollout of other hybrid models between 2009 and 2012. Honda is also a
leader in what could become the next cutting edge alternative of hydrogen powered fuel cells.

Honda 2Wheeler gives wings of freedom to riders

In Ad Craft

Honda’s ‘Sau mein se sava sau’ campaign gives more than full marks to Activa 125
In Ad Craft

In Ad Craft

‘One Look is enough’ at Honda Motorcycle X-Blade for a lasting statement

In Ad Craft
‘Effortless style gets Sportier’ with Honda’s CB Shine SP
In Ad Craft

Love for Honda’s Activa 5G is growing, shows new spot

In Ad Craft

Honda launches Activa 4G with a ‘Nayi Generation Hai’ campaign

In Ad Craft

Honda 2 Wheeler India emphasises on importance of balance in life and roads

In Ad Craft

Honda shows off the raw muscle power of the CB Hornet 160R bike
In Ad Craft
Honda goes ‘vaah, vaah’ over latest Activa 3G avatar
In Ad Craft

Honda’s CB Unicorn 160 creates a ‘Goodness Cult’

In Ad Craft

Honda Dream series launches a sequel campaign with a twist in the tale
In Ad Craft

Dentsu wins creative duties for Honda’s New Jazz

In Advertising

Big FM promotes Honda Amaze’s Longest Drive campaign

In Radio
Company performance

During the fiscal year 2008-09, the company sold 3.7 million Activa, a growth of
12% over last year. In the same year, the company had a market share of 57% in
the Indian market. Honda Activa Honda sells more two wheelers than the
second, third and fourth placed two-wheeler companies put together. Honda
Activa Honda's bike Honda Activa splendor pro sells more than one million units
per year. On 1st June 2012, Honda Activa reported its highest ever monthly sales
at 5, 56,644 units in May, registering a growth of 11.28%.

According to my experience I found that overview about Honda Activa motors.

Different types of sales promotion & techniques used to promote & increase
growth level of Honda Activa. Honda Activa splendor pro &Honda Activa passion
pro of the cash cow of the Honda Activa Moto cop.
 Profile of Honda

HONDA MOTOR COMPANY LTD.

Honda has been the world's largest motorcycle manufacturer since 1959 as well as the world's largest
manufacturer of internal combustion engines measured by volume, producing more than 14 million
internal combustion engines each year. Honda surpassed Nissan in 2001 to become the second-largest
Japanese automobile manufacturer As of August 2008, Honda surpassed Chrysler as the fourth largest
automobile manufacturer in the United States Honda is the sixth largest automobile manufacturer in the
world.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in
1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden
equipment, marine engines, personal watercraft and power generators, amongst others. Since 1986,
Honda has been involved with artificial intelligence/robotics research and released their ASIMO robot in
2000. They have also ventured into Aero space with the establishment of GE Honda Aero Engines in 2004
and the Honda HA-420HondaJet, scheduled to be released in 2011. Honda spends about 5% of its
revenues into R&D.

History

From a young age, Honda's founder, Soichiro Honda (November 17, 1906 -August 5, 1991) had a great
interest in automobiles. He then established the Honda Technical Research Institute in Hamamatsu, Japan,
to develop and produce small 2-cycle motorbike engines. Calling upon 18,000 bicycle shop owners across
Japan to take part in revitalizing a nation torn apart bywar, Soichiro received enough capital to engineer
his first motorcycle, the Honda Cub. This marked the beginning of Honda Motor Company, which would
grow a short time later to be the world's largest manufacturer of motorcycles by 1964.

Philosophy

HMSI operates on a principle, which is followed worldwide by all Honda companies.

Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a
reasonable price for worldwide customer satisfaction. Honda's philosophy is based on the company's
guiding principle and advocates 2 fundamental beliefs:

Respect for the Individual

Honda recognizes and respects individual differences. The respect for individual stems from the following
three points:

 Initiative
 Equality
 Trusts

It is the contribution from each individual in the company that has made our company what it is

today and that, which will take us into the future.

The Three Joys

 The joy of manufacturing high quality products.

 The joy of selling high quality products.
 The joy of buying high quality products.

Motorcycles

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in 1955 At
its peak in 1982, Honda manufactured almost 3 million motorcycles annually. By 2006 this figure had
reduced to around 550,000 but was still higher than its three domestic competitors

During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese motorcycle market
and began exporting to the U.S. Taking Honda’s story as an archetype of the smaller manufacturer
entering a new market already occupied by highly dominant competitors, the story of their market entry,
and their subsequent huge success in the U.S. and around the world, has been the subject of some
academic controversy. Competing explanations have been advanced to explain Honda’s strategy and the
reasons for their success.

The first of these explanations was put forward when, in 1975, Boston Consulting Group (BCG) was
commissioned by the UK government to write a report explaining why and how the British motorcycle
industry had been out-competed by its Japanese competitors. The report concluded that the Japanese
firms, including Honda, had sought a very high scale of production (they had made a large number of
motorActiva) in order to benefit from economies of scale and learning curve effects. It blamed the decline
of the British motorcycle industry on the failure of British managers to invest enough in their businesses to
profit from economies of scale and scope.

The second explanation was offered in 1984 by Richard Pascale, who had interviewed the Honda
executives responsible for the firm’s entry into the U.S. market. As opposed to the tightly focused strategy
of low cost and high scale that BCG accredited to Honda, Pascale found that their entry into the U.S.
market was a story of “miscalculation, serendipity, and organizational learning” – in other words, Hondas
success was due to the adaptability and hard work of its staff, rather than any long term strategy. For
example, Honda􀂶s initial plan on entering the U.S. was to compete in large motorcycles, around 300 cc. It
was only when the team found that the scooters they were using to get themselves around their U.S. base
of San Francisco attracted positive interest from consumers that they came up with the idea of selling the
Super cub.

Awards Details

2011

"Indian Motorcycle of the Year 2011 (IMOTY)

Jury:BS Motoring , Bike India , BBC Top Gear , Overdrive , AutoBuild India ."

Bike of the Year – CNBC TV18 Overdrive Awards 2011

Bike of the Year - Bloomberg/UTV AutoHonda Activa Award 2011

Viewer’s Choice Award: Bike of the Year - Bloomberg / UTV AutoHonda Activa Awards 2011.

CB Twister

"The Most Awarded Motorcycle of the Year - 2011"

Bike of the Year - BS Motoring Award 2011 .

Bike of the Year upto 110CC – Bike India .

Motorcycle upto 110CC - NDTV Honda Activa & Bike Awards 2011.

Premium 100CC Motorcycle - Zigwheels Awards.

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards.

CB Unicorn Dazzler

Motorcycle upto 160CC – NDTV Honda Activa & Bike Awards 2011.

Sporty Motorcycle upto 180CC – ZigwheelsAwards .

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards.

VFR 1200F

Superbike of the Year – TopGear

Automotive Technology of the Year –Zigwheels Awards

Brand Honda

" Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011"

Motorsport

Honoured for 'Promoting 2Wheeler racing in India'

2010

Brand

" Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010"

Trusted Brand Award (Gold) for Two-wheeler: Readers' Digest.

CB1000R

Import Two - Wheeler of the Year NDTV Profit Honda Activa & Bike Awards 2010.
CB1000R

Import Bike of the Year – AutoHonda Activa Awards 2010.

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award.

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - Zigwheels.com

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheels.com

Activa Scooter Customers Satisfaction No.1 - CNBC TV18 - Auto Honda Activa "Auto

Awards 2008.

Brand

-Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India "Best Brand Survey Awards 2008.

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (B.S. Motoring & auto Honda Activa)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (B.S. Motoring & Overdrive)

2004

Enter no Best Scootes of the Year (B S. Motoring & ICICI Bank, Overdrive
Magazine)

2003

DioScooter

of the Year 2003 (BBC)

2002

Activa Scooter of the Year by Overdrive Magazine

2001

 ActivaScooter of the Year 2001 (BS Motoring).

Tokyo, April 28, 2010--- Honda Motor Co., Ltd. today announced its consolidated financial results for the
fiscal fourth quarter and the fiscal year ended March 31, 2010.

Fourth Quarter Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal fourth quarter ended
March 31, 2018 amounted to JPY 72.1 billion (USD 776 million), an increase of JPY 252.1 billion from the
same period in 2009. Basic net income attributable to Honda
Motor Co., Ltd. per common share for the quarter amounted to JPY 39.78 (USD 0.43), an increase of JPY
138.95 from the corresponding period last year. One Honda American Depository Share represents one
common share.

Consolidated net sales and other operating revenue (herein referred to as “revenue”) for the quarter
amounted to JPY 2,279.5 billion (USD 24,501 million), an increase of 27.8% from the same period in 2009,
due primarily to increased revenue in all of the business segments and currency translation effects. Honda
estimates that had the exchange rates remained the same from the corresponding period in 2016,
revenue for the quarter would have increased by approximately 25.4%.

Consolidated operating income for the quarter amounted to JPY 96.0 billion (USD 1,033million), an
increase of JPY368.2 billion from the same period in 2009, due primarily to increased profit attributable to
increased revenue, reduction in vehicle costs as a result of increased production and decreased SG&A
expenses.

Consolidated income before income taxes and equity in income of affiliates for the quarter amounted to
JPY 93.5 billion (USD 1,006 million), an increase of JPY 392.2 billion from the same period in 2009.

Equity in income of affiliates amounted to JPY 23.8 billion (USD 257 million) for the quarter, an increase of
JPY 21.1 billion from the corresponding period last year.

Fiscal Year Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal year ended March
31, 2010 totaled JPY 268.4 billion (USD 2,885 million), an increase of 95.9%from the previous fiscal year.
Basic net income attributable to Honda Motor Co., Ltd. Per common share for the period amounted to JPY
147.91 (USD 1.59), an increase of JPY 72.41from the previous fiscal year.

Consolidated revenue for the period amounted to JPY 8,579.1 billion (USD 92,210 million), a decrease of
14.3% from the previous fiscal year, primarily due to unfavorable currency translation effects and
decreased revenue in the automobile business. Honda estimates that had the exchange rate remained the
same as the previous fiscal year, revenue for the period would have decreased by approximately 7.5%.

Consolidated operating income for the period totaled JPY 363.7 billion (USD 3,910 million),an increase of
91.8%, due primarily to decreased SG&A expenses and R&D expenses and continuing cost reduction
efforts, despite decreased profit attributable to decreased revenue ,the unfavorable impact of currency
effects and the increase in fixed costs per vehicle as a result of reduced production.

Consolidated income before income taxes and equity in income of affiliates for the period totaled JPY
336.1 billion (USD 3,613 million), an increase of 107.9% from the previous fiscal year.

Equity in income of affiliates amounted to JPY 93.2 billion (USD 1,003 million) for the period, a decrease of
5.8% from the previous fiscal year.

Racing

Honda has always played an important role in motor sports, believing it to be the springboard for
technological advancement.

It has also been an aggressive force in the endurance, motocross and trial races held around the world.
We, at Honda, are not allowing this momentum to let up, as we pursue even greater achievements.
Honda has always loved racing, ever since Sochiro Honda took his company into motorcycle competition,
sometime in the 1950s. Hondas engineers have tested themselves on the international stage, proving their
technology to be the best in the world. These technologies are tested in the extreme conditions of
motorcycle racing, to adapt them for use in vehicles that ply on roads today.

In the past, Honda has powered some of the all time great racers, including Redman, Hail wood, Spencer,
Gardner, Capirossi and Doohan, to 39 riders titles. Even today, some of the greatest motorcycle racers, like
Alex Baros, Max Biaggi, Nicky Hayden ride on Honda Activa, at the races.

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-road races
Michael Doohan riding Repsol Honda's NSR 500.

Technologies like these are not just for the race tracks, but are also incorporated in our everyday vehicles.
They are first tested, refined and proven under the trying conditions in the races, and then finally adapted
in the vehicles, so that two wheelers like Activa and Dio can utilise and benefit from such technologies.
 PRODUCTS OF HONDA ACTIVA MOTORS

Honda Activa

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Honda Activa
 Honda Motorcycle and Scooter India
Manufacturer
Honda de México

Parent
HMSI
company

Production 2001 - present;

125 cc 4-stroke, single-cylinder, air-

Engine cooled, OHC or 109 cc 4-stroke,
single-cylinder, air-cooled, OHC

7 bhp (5.2 kW) or 8 bhp (5.71 KW) in

Power
2009 model (claimed)[1]

Torque 8.74 Nm (claimed)[1]

Transmission CVT

Bottom link with spring-loaded

hydraulic damper (front), unit swing
Suspension
with spring-loaded hydraulic damper
(rear)[1]

drum, 130mm (front & rear) with CBS

Brakes
(only in 2009 model)

Tires 90/100-10 53J

Wheelbase 1,238 mm

L: 1,761 mm
Dimensions
W: 710 mm
 H: 1,147 mm

Seat height 765 mm

Fuel capacity 5.75 l or 5.3 l in 2009 model

The Honda Activa is a motor scooter made by Honda Motorcycle and Scooter India. It was launched in
India in 2000. Production in Mexico began in 2004.[2] It is a 109/125 cc, 7 bhp (5.2 kW) scooter. The
vehicle has the option of kick- and self-start, and includes the puncture-resistant "tuff-up" tyre and tube
combination.

Honda launched a new version of the Activa in the Indian market launched on 8 May 2009, with a new
109 cc engine. Power output was bumped up to 8 bhp (6.0 kW) and new features like combi-brake and key
shutter were introduced. Fuel economy was claimed to be improved by 15%.[3]

In June 2013, Honda introduced Activa-i, a sleek and stylish variant of Activa. The new model shared most
of the features with Activa, the primary difference being in the body style.

In April 2014, Honda launched an upgraded model of Activa with a 125cc engine and rebranded the model
as Activa 125. Currently, both Activa-i and Activa 125 are sold in India.

In April, 2017, The Economic Times reported the Honda Activa to be the best selling two wheeler in India
(if not the world), outselling the Hero Splendor. During the month of September 2013, 141,996 Honda
Activa scooters were sold,[4] nearly equal to Honda's entire annual sales in North America.[5]

In India, Honda launched Activa i, a cheaper, lighter and stylish version of the Activa, in December of
2013. It is powered by 110 CC engine and weighs 103 kg. On September 22, 2015, Honda announced that
they had sold over 1 million Activas in five months in the Indian market, from April to August.[7]

After launching the 5th generation of Honda Activa in year 2018, Honda is speculated to launch their first-
ever electric scooter to be called as Honda Activa 6G.[8]
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

Formulation of Hypothesis

The hypothesis was formulated assuming that it would ensure a proper method for the study based on
which relevant material can be collected.

Research Design

It has been assumed that source of data are the foundation, based upon which the actual required
information can be extracted.

Sample Procedure

Empirical field studies require collection of first hand information on data pertaining to the unit of
study from the field.

This sampling plan is effective in getting the first hand information, i.e. primary data, which has
been required for the study by the research.

SAMPLING PROCEDURE

The sample size of collection of data is 100 respondents.

Sampling is basically targeted to the consumers who own Honda Activa, who are chosen by simple random
technique. Though the size of sample is small, it has highly reliable findings as it is targeted to right Honda
Activa owners.

DATA COLLECTION METHOD

 The type of information required for the study was satisfactory level of the consumers who own
Honda Activa. So data is collected through ‘personal interview method’. This method has helped in
obtaining data on factors such as attitude, satisfaction level, mode of purchase etc. by this method one
can expect a reliable information, which is referred to as quantitative research design method.

SOURCES OF DATA

It refers to method used to conduct research for Silicon Honda in this research all the data have been
collected through “primary source of Data collection” method, for the study of “Honda Activa”.

CUTOMERS WILL BE SATISFIED BY CONTINUOUSIMPROVEMENT PROCESS AND

MAINTAINING TOTAL QUALITY
 Customers are judged of quality. Therefore, highest quality of products should be companies objective
maintaining ‘zero defects’ or 100% quality. Thus improves quality, inurn quality increases cost
effectiveness.
 Proven method and procedures should be adopted and applied consistently.
 Quality derivativeness should be compulsory, satisfying customer’s requirements.
 Companies should have quest for quality and should meet standards.
 Quality should be in every stage from planning to production.
 Quality should be in hallmark of the company. Company should promise highest standard of product
quality, safety, comfort and dependability.
 Companies should have quest to find innovative ideas and featured or attributes that will create
excitement and desire and they should look beyond what the customer says.
DATA ANALYSIS & FINDING
Analysis:-

1. No. of people using two wheelers?

Yes :70
No : 30

Column1

Yes

No

Interpretation

After survey student found most of customers having Activa.

2. Percentage of people using different brand?

Honda ActivaMoto -45%

TVS -5%
Honda -20%
Bajaj -20%
Other -10%

Column1

Honda
Activamot
o

TVS

Honda
Bajaj
Other

Interpretation

After survey student found that most of the customers having Honda ActivaActiva.
3. Does your purchasing decision affected by the brand name.

Yes 80
No 20

Yes
No

Interpretation

Most educated customers say yes.

4. What is the opinion about the price policy of Honda Activa products?

Expensive 40
Cheap 60

Expensive
Cheap

Interpretation

Most of the young riders say, it is quite cheap.

5. For what purpose you buy Honda Activa?

Official 25
Household 55
Business 10
Any other 10

60

50

40

30

20

10
Official Hosehold Business Any other
0

Interpretation

Customers mostly preferred to use Honda Activa for their family itself.
6. Have you faced any problem regarding power driving of the vehicle?

Yes 06
No 94

Yes

No

Interpretation

Customers were satisfied with engine performance.

7. How does Honda Activa have customer relations?

Satisfactory 88
Unsatisfactory 12

100

80

60

Satisfactory Unsatisfactory
40

Interpretation
20

Customers are satisfied with Honda Activa’s customer relations.

0
8. Are you satisfied with Honda Activa?

Yes 80
No 20

Yes

No

Interpretation

Customers are satisfied with Honda Activa

9. How did you come to know about this model?

TV 30
Internet 10
Newspaper 12
Banners &Hoardings 10
Friends/Relatives 15
Roadshow 8
Magazine 5
Dealer 10

TV

Internet
Newspaper
Banner&HoardingsF
riends/Relatives
Roadshow
Magazine
FINDINGS
Findings

1. After survey student found the satisfaction level of the Honda Activa bikeriders.
2. Most of the customers go for Honda Activa because of its safeengine.
3. Youth feel very comfortable withit.
4. Honda Activa technology is veryinnovative
5. High segment goes for name andgoodwill.
SUGGESTIONS
Suggestions

1. The company should increase their servicestations.

2. More financing options should beavailable.
3. The company should provide more consumervalue.
4. Follow-ups should beincreased.
5. Efforts should be increased for Customer RelationshipMANAGEMENT.
6. Special offer should be there for govt.employee.
 Chapter - 5

CONCLUSION

Conclusion
This survey was done to identify various problems and level of satisfaction of
consumers, advertising and sales promotion of Honda Activa, so that efforts
might done to satisfy them which would result in building long-term relationships
between customer and company. Due to delivery in customer needs and
expectations, it becomes a difficult task to satisfy every customer, therefore to
satisfy each and every customer the important of building relationship with them
existed, for this purpose a number of questions were asked to find out behavior of
the customers. This research is also done to know the views of the customer
towards the services and quality and supply chain management of Honda
ActivaActiva.
ANNEXURE
ANNEXURE
Questionnaire
Name: ……………….. Mobile: ……………….
Address: ………………
Occupation:-Student -Govt.Employees -Own Business
1. Teacher -Shop Owner -Other
1. Do you havevehicle?

Yes No

2. Which bike you haveown?

Honda Activa TVS Honda Bajaj Other

3. Does your purchasing decision affected by the brand name of thebike?

Yes No

4. What is the opinion about the price policy of Honda

Activaproducts? Expensive Cheap

5. For what purpose you buy Honda Activa?

Official Household Business Any other

6. Have you faced any problem regarding power driving of thevehicle?

Yes No
7. How does Honda Activa have customer

relations? Satisfactory Unsatisfactory

8. Are you satisfied with Honda Activa?

Yes No
9. How did you come to know about thismodel?

Internet Newspaper Banners & Hoardings Roadshow

Friends/Relatives Magazine TV
BIBLOGRAPHY
BIBLOGRAPHY

BOOK REFERENCE

Referred Books:-

Principles of Marketing-

Philips Kotler Marketing

Research-G.C Beri

WEBSITES:-

WWW.Honda
Activamotorcorp.
com
WWW.Timesdri
ve.com

Various magazines such as