A STRW PROJECT ON OUTDOOR ADVERTISING IN INDIA PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT

(Approved by AICTE, Govt. of India) (Equivalent to MBA) ACADEMIC SESSION 2009-11 SUBMITTTED TO:DR. TAPAN KUMAR NAYAK AREA CHAIRPERSON, ECONOMICS. SUBMITTED BY:NIKHIL KUMAR GARG (BM-09123) NIKHIL SINGH (BM-09124) NIMISHA GUPTA (BM-09125) NITESH KUMAR (BM-09127) C-238, BULANDSHAHR ROAD, GHAZIABAD -201009 INSTITUTE OF MANAGEMENT STUDIES 1

CERTIFICATE This is to certify that Mr. Nikhil Kumar Garg(BM-09123), Mr. Nikhil Singh(BM-091 24), Nimisha Gupta(BM-09125), Nitesh Kumar(BM-09127) have completed their projec t titled Outdoor advertizing in India under my guidance with full honesty and inte grity and submitted towards partial fulfillment of Post graduate diploma in mana gement at IMS Ghaziabad. Dr. Tapan Kumar Nayak (Area Chairperson of Economics) 2

CANDIDATES DECLARATION We hereby declare that the work which is being presented in the report entitled OUTDOOR ADVERTISING IN INDIA in partial fulfillment of the requirement of the awa rd of the post graduate diploma in management and submitted in the INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD is an authentic record of our own work carried out during a period from Jan 18, 2010 to March 20, 2010 under the supervision of Dr . Tapan Kumar Nayak, Area chairperson of Economics INSTITUTE OF MANAGEMENT STUDI ES GHAZIABAD. The matter presented in this report has not been submitted by us i n the award of any other degree or diploma of this or any other institute. CANDIDATES NAME AND SIGNATURE :NIKHIL KUMAR GARG(BM-09123) NIKHIL SINGH (BM-09124 ) NIMISHA GUPTA(BM-09125) NITESH KUMAR(BM-09127) 3

ACKNOWLEDGEMENT No task whatever big or small can be completed without proper guidance and encou ragement. It gives us a great pleasure to our deep sense of gratitude and revere nce to every person who created a congenial atmosphere for successful completion of this project. We would like to express our gratitude and profound thanks to Dr. TAPAN KUMAR NAYAK, AREA CHAIRPERSON, and faculty of Institute of Management Studies, Ghaziabad to give us a chance to get an industrial exposure. We thank each and everyone who are involved in this report completion without wh ich it would not have been possible for us to complete this project. 4

ABSTRACT In India now a days, competition in every field of business is very high and com panies are trying to attract maximum number of customers. For this, companies ar e using various modes of advertizing and searching for newer ways which effect m uch more customer. This led to the development of various forms of advertizing a nd outdoor advertizing is one of them. Purpose- In these papers, we are trying t o study various medium of outdoor advertizing and also various other types of ad vertizing and their effect on various customers to understand customers need to attract more and more customers. Method used- The primary as well as secondary d ata for the studies. For primary data, a questionnaire has been prepared and cus tomers having various perceptions were asked to fulfill it. Secondary data is co llected from web resources and books. Various statistical tools like graphical m ethod and chi-square test for our research purpose and analysis of data has been used. Findings- Various modes of advertizing are equally important and outdoor advertizing is one of them. It helps in boosting sales and attracting more and m ore customers and company must focus on outdoor advertizing as it can reach more and more number of peoples than other modes of advertizing. 5

TABLE OF CONTENTS S.No. 1. 2. 3. 3. 4. 4.1 4.2 4.3 5. 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 6. 7. 8. 9. 10. 11. 12. 13. TOPIC Introduction Justification of the study Literature review Research objectives Advertizing basics History of advertizing Definition of adve rtizing Importance of advertizing Outdoor advertizing Factors affecting outdoor advertizing Kinds of outdoor advertizing Classification and types of advertizing Measuring advertizing effectiveness Methods of measuring advertizing effectiven ess Communication effects of advertisement Factors affecting advertizing Impact of advertizing Research methodology Findings Summary Conclusion Recommendation S uggestions References Annexure PAGE NO. 7 9 10 11 12 12 15 18 20 20 21 30 38 40 44 49 49 55 71 72 73 74 76 77 77 6

INTRODUCTION It has been wrongly assumed that the advertising function is of recent origin. E vidences suggest that the Romans practiced advertising; but the earliest indicat ion of its use in this country dates back to the middle Ages, when the use of th e surname indicated a mans occupation. The next stage in the evolution of adverti sing was the use of signs as a visual expression of the tradesmans function and a means of locating the source of goods. This method is still in common use. The seller in primitive times relied upon his loud voice to attract attention and in form consumers of the availability of his services. If there were many competito rs, he relied upon his own personal magnetism to attract attention to his mercha ndise. Often it became necessary for him to resort to persuasion to pinpoint the advantages of his products. Thus, the seller was doing the complete promotion j ob himself. Development of retail stores, made the traders to be more concerned about attracting business. Informing customers of the availability of supplies w as highly important. Some types of outside promotion were necessary. Signs on st ores and in prominent places around the city and notices in printed matters were sometimes used. When customers were finally attracted to the store and satisfie d with the service at least once, they were still subjected to competitive influ ences; therefore, the merchants signs and advertisements reminded customers of th e continuing availability of his services. Sometimes traders would talk to prese nt and former customers in the streets, or join social organizations in order to have continuing contacts with present and potential customers. As the markets g rew larger and the number of customers increased, the importance of attracting t hem also grew. Increasing reliance was placed on advertising methods of informin g about the availability of the products. These advertising methods were more ec onomical in reaching large numbers of consumers. While these advertising methods were useful for informing and reminding and reminding, they could not do the wh ole promotional job. They were used only to reach each consumer personally. The merchant still used personal persuasion once the customers were attracted to his store. 7

The invention of hand press increased the potentialities of advertising. By Shak espeares times, posters had made their appearance, and assumed the function of fo stering demand for existing products. Another important event was the emergence of the pamphlet as an advertising medium. The early examples of these pamphlets disclose their sponsorship by companies want to generate goodwill for their acti vities. The low cost of posters and handbills encouraged a number of publishers to experiment with other methods. 8

JUSTIFICATION The present study has focused on effect of outdoor advertising on consumer perce ption and their attitude towards different products and services. It has been ob served through various researches, that the mode of advertising used like print media i.e. magazines and newspaper; electronic media i.e. television and radio; outdoor advertising i.e. billboards, hoardings, electronic displays plays an imp ortant role in determining the buying behavior of consumers . Outdoor advertisin g has been focused and compared with the other types of media to make the compar ison on the basis of effectiveness. Outdoor media is developing and taking shape in best marketing promotion activities. Also studying the perception and consum er attitudes regarding different advertising media will provide an insight to fu rther future development. 9

REVIEW OF LITERATURE Kotler,(1994)- According to a research concentrating on the advertisers viewpoin t, advertisement is an important tool which companies use to directly persuade b uyers and public . Being a key element in the marketing process, advertisements face many challenges in reaching the audience. Krugman, 1975- One of the main ob stacles is the low audience involvement . In most forms of communication, the au dience least make some effort to pay attention or appear to be doing so. The adv erts are meant for the audience to watch but unfortunately the audience is likel y to take active steps in avoiding them. The advertiser therefore have problem o f making loomed perhaps generally evasive audience pay attention to what is goin g on or at least enough to get basic selling message The challenge gets more dif ficult in a multiracial country such as Malaysia. Bonnex,(1975)- The existence o f the advertisement rooted in Malaysia dated back to the 1971 as claimed by in h is thesis. His theory is even supported by the Honourable Minister Tan Sri Gazal is speech in 1971(Bernama, 1971). Advertising agencies fuel the basic needs of a company to plan, strategise and introduce their product in the market. It is one of the basis of the supply chain and many advertising agencies are involved in this business in Malaysia. Aaker and Mayers, 1975 As known for decades, advertis ement is one of the main strategies in marketing either a product or service. It can be defined as An Advert that does not create a buying response, or at least produce a desire to want to know more is not an advert (Quinn, 1985). Porter (198 0). The value chain is a systematic approach in examining the development of com petitive advantage. It was introduced by one of the pioneer in the ICT and busin ess industry Potter also explains the sources of cost reduction and differentiat ion within a firm. Potter treats every firm as a collection of activities carrie d out to develop, strategically market, deliver and maintain its products or ser vices. 10

RESEARCH OBECTIVES

To study types of advertisements. To study effectiveness of advertisements i.e. on sales, profitability. To study electronic media, print consumers outdoor media. different the percepti on of towards the advertisement i.e. media and To find the ways to make it more effective. modes of 11

ADVERTISING BASICS HISTORY OF ADVERTISEMENT Archaeologists have found evidence of advertising dating back to the 3000s BC, a mong the Babylonians. One of the first known methods of advertising was the outd oor display1. Archaeologists have uncovered many such signs, notably in the ruin s of ancient Rome and Pompeii. An outdoor advertisement excavated in Rome offers property for rent, and one found painted on a wall in Pompeii calls the attenti on of travelers to a tavern situated in another town. In medieval times word-ofmouth praise of products gave rise to a simple but effective form of advertising , the use of so-called town criers. The criers were citizens who read public not ices aloud and were also employed by merchants to shout the praises of their war es. Later they became familiar figures on the streets of colonial American settl ements. The town criers were forerunners of the modern announcer who delivers ra dio and television commercials. Although graphic forms of advertising appeared e arly in history, printed advertising made little headway until the invention of the movable-type printing press by German printer Johannes Gutenberg about 1450. This invention made the mass distribution of posters and circulars possible. Th e first advertisement in English appeared in 1472 in the form of a handbill anno uncing a prayer book for sale. Two hundred years later, the first newspaper ad w as published offering a reward for the return of 12 stolen horses. In the Americ an colonies, the Boston News-Letter, the first regularly published newspaper in America, began carrying ads in 1704, and about 25 years later Benjamin Franklin made ads more readable by using large headlines. In the United States, the adver tising profession began in Philadelphia, Pennsylvania, in 1841 when Volney B. Pa lmer set up shop as an advertising agent, the forerunner of the advertising agen cy. Agents contracted with newspapers for large amounts of advertising space at discount rates and then resold the space to advertisers at a higher rate. The ad s themselves were created by the advertisers. In 1869 Francis Ayer bought out Pa lmer and founded N. W. Ayer & 1 an eye-catching sign painted on the wall of a building 12

Son, an agency that still exists today. Ayer transformed the standard agent prac tice by billing advertisers exactly what he paid to publishers plus an agreed up on commission. Soon Ayer was not only selling space but was also conducting mark et research and writing the advertising copy. Advertising agencies initially foc used on print. But the introduction of radio created a new opportunity and by th e end of the 1920s, advertising had established itself in radio to such an exten t that advertisers were producing many of their own programs. The early 1930s us hered in dozens of radio dramatic series that were known as soap operas because they were sponsored by soap companies. Television had been introduced in 1940, b ut because of the high cost of TV sets and the lack of programming, it was not i mmediately embraced. As the American economy soared in the 1950s, so did the sal e of TV sets and the advertising that paid for the popular new shows. Soon TV fa r surpassed radio as an advertising medium. The tone of the advertising was also changing. No longer did advertising simply present the product benefit. Instead it began to create a product image. Bill Bernbach, founder of Doyle Dane Bernba ch in New York City; Leo Burnett, founder of the Leo Burnett agency in Chicago, Illinois; and David Ogilvy, founder of Ogilvy & Mather in New York City, all cam e to prominence in the late 1950s and 1960s and led what has been called the cr eative revolution. Bernbach s agency captured the spirit of the new age. Bernba ch believed that advertising had to be creative and artistic or it would bore pe ople. He also believed that good advertising began with respect for the public s intelligence. The ads his agency created were understated, sophisticated, and w itty. For example, when Bernbach s agency picked up the account for the Henry S. Levy Bakery in Brooklyn, a borough of New York City, the agency created an ad t hat entertained New Yorkers and provided fodder for many conversations. The ad s howed a Native American eating a slice of the bakery s rye bread with the headli ne, You don t have to be Jewish to love Levy s. But it was the advertising for Volkswagen that made the agency s reputation. 13

At a time when American cars were getting bigger and bigger and the advertising for them trumpeted that bigger was better, Doyle Dane Bernbach created a magazin e ad that showed a small picture of the Volkswagen Beetle surrounded by a sea of white space with the headline, think small. An equally unconventional ad carr ied the headline lemon beneath a photo of an apparently flawed Volkswagen. The ad s copy explained that this Volkswagen missed the boat. The chrome strip on the glove compartment is blemished and must be replacedWe pluck the lemons; you g et the plums. In an era of hype and bombast, the Volkswagen ads stood out becau se they admitted failure in a witty way and gave facts in a believable manner th at underlined the car s strengths. This wit together with a conversational and b elievable style was a hallmark of the advertising created by Doyle Dane Bernbach and that style became highly influential. The creative foundation established b y Bernbach and others has been critical to the success of contemporary advertisi ng. The introduction of the TV remote control and access to hundreds of cable ch annels mean that today advertising must interest and entertain consumers or else they will simply use the remote to change the channel. New digital devices even threaten to make it possible to edit out commercials. The development of intera ctive television, combining the functions of a computer with access to high-spee d transmission over cable lines or optical fibers, will likely enable consumers to select from a vast video library. Consumers will be able to determine not onl y when they watch something, but also, to a greater extent than ever before, wha t they will watch. Some industry observers believe that as consumers gain greate r control over their viewing activities, they will find it easier to avoid adver tising. 14

DEFINITION OF ADVERTISING The word advertising originates from a Latin word advertise, which means to turn to. The dictionary meaning of the term is to give public notice or to announce p ublicly. Advertising may be defined as the process of buying sponsor-identified m edia space or time in order to promote a product or an idea. The American Market ing Association, Chicago, has defined advertising as any form of nonpersonal pres entation or promotion of ideas, goods or services, by an identified sponsor. What Advertisement Is? Advertisement is a mass communicating of information intended to persuade buyers to by products with a view to maximizing a companys profits. The elements of advertising are: (i) It is a mass communication reaching a large group of consumers. (ii) It makes mass production possible. (iii) It is non-per sonal communication, for it is not delivered by an actual person, nor is it addr essed to a specific person. (iv) It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales . (v) Advertising can be economical, for it reaches large groups of people. This keeps the cost per message low. (vi) The communication is speedy, permitting an advertiser to speak to millions of buyers in a matter of a few hours. (vii) Adv ertising is identified communication. The advertiser signs his name to his adver tisement for the purpose of publicizing his identity. 15

What is Included in Advertising? (i) The information in an advertisement should benefit the buyers. It should give them a more satisfactory expenditure of their rupees. (ii) It should suggest better solutions to their problems. (iii) The co ntent of the advertisement is within the control of the advertiser, not the medi um. (iv) Advertising without persuasion is ineffective. The advertisement that f ails to influence anyone, either immediately or in the future, is a waste of mon ey. (v) The function of advertising is to increase the profitable sales volume. That is, advertising expenses should not increase disproportionately. Advertisin g includes the following forms of messages: The messages carried in Newspapers d magazines; On radio and television broadcasts; Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen, or by Dealer help materials , Window display and counter display materials and efforts; Store signs, motion pictures used for advertising, Novelties bearing advertising messages and Signat ure of the advertiser, Label stags and other literature accompanying the merchan dise. inserts in packages); What is excluded from Advertising? Advertising is not an exact science. An adver tisers circumstances are never identical with those of another; he cannot predict with accuracy what results his future advertising efforts will produce. (i) Adv ertising is not a game, because if advertising is done properly, both the buyer and the seller benefit from it. (ii) Advertising is not a toy. Advertiser cannot afford to play with advertising. Advertising funds come from sales revenue and must be used to increase sales revenue. (iii) Advertisements are not designed to deceive. The desire and hope for repeat sales insures a high degree of honesty in advertising. 16

The activities excluded from advertising are: The offering of premiums to stimul ate the sale of products; The use of exhibitions and demonstrations at fairs, sh ow and conventions; The use of samples and activities, involving news releases a nd the activities of personal The payment of advertising allowances which are no t used for advertising; The entertainment of customers selling forces; Advertising Objectives Each advertisement is a specific communication that must be effective, not just for one customer, but for many target buyers. This means that specific objectives should be set for each particular advertisement campaig n. Advertising is a form of promotion and like a promotion; the objectives of ad vertising should be specific. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to hav e upon the consumer should be clearly indicated. The objectives of advertising w ere traditionally stated in terms of direct sales. Now, it is to view advertisin g as having communication objectives that seek to inform persuade and remind pot ential customers of the worth of the product. Advertising seeks to condition the consumer so that he/she may have a favourable reaction to the promotional messa ge. Advertising objectives serve as guidelines for the planning and implementati on of the entire advertising programme. The basic objectives of an advertising p rogramme may be listed as below: (i) To stimulate sales amongst present, former and future consumers. It involves a decision regarding the media, e.g., TV rathe r than print ; (ii) To communicate with consumers. This involves decision regard ing copy ; (iii) To retain the loyalty of present and former consumers. Advertis ing may be used to reassure buyers that they have made the best purchase, thus b uilding loyalty to the brand name or the firm. 17

(iv) To increase support. Advertising impliedly bolsters the morale of the sales force and of distributors, wholesalers, and retailers, ; it thus contributes to enthusiasts and confidence attitude in the organizational. : (v) To project an image. Advertising is used to promote an overall image of respect and trust for an organization. This message is aimed not only at consumers, but also at the go vernment, shareholders, and the general public. IMPORTANCE OF ADVERTIZING Generally, advertising is a relatively low-cost method of conveying selling mess ages to numerous prospective customers. It can secure leads for salesmen and mid dlemen by convincing readers to request more information and by identifying outl ets handling the product. It can force middlemen to stock the product by buildin g consumer interest. It can help train dealers salesmen in product uses and appl ications. It can build dealer and consumer confidence in the company and its pro ducts by building familiarity. Advertising is to stimulate market demand. While sometimes advertising alone may succeed in achieving buyer acceptance, preferenc e, or even demand for the product, it is seldom solely relied upon. Advertising is efficiently used with at least one other sales method, such as personal selli ng or point-of-purchase display, to directly move customers to buying action. Ad vertising has become increasingly important to business enterprises both large an d small. Outlay on advertising certainly is the voucher. Non-business enterprise s have also recognized the importance of advertising. The attempt by army recrui tment is bases on a substantial advertising campaign, stressing the advantages o f a military career. The health department popularizes family planning through a dvertising Labour organizations have also used advertising to make their viewpoi nts known to the public at large. Advertising assumes real economic importance t oo. Advertising strategies that increase the number of units sold stimulate econ omies in the production process. The production cost per unit of output is lower ed. It in turn leads to lower prices. Lower consumer prices then allow these pro ducts to become available to more people. Similarly, the price of newspapers, pr ofessional sports, radio and TV programmes, and the like might be prohibitive wi thout advertising. 18

In short, advertising pays for many of the enjoyable entertainment and education al aspects of contemporary life. Advertising has become an important factor in t he campaigns to achieve such societal-oriented objectives such as the discontinu ance of smoking, family planning, physical fitness, and the elimination of drug abuse. Though in India, advertising was accepted as a potent and recognized mean s of promotion only 25 years ago, its growing productive capacity and output nec essitates the finding of consumers and advertising plays an important role in th is process. Advertising helps to increase mass marketing while helping the consu mer to choose from amongst the variety of products offered for his selection. In India, advertising as a profession is in its infancy. Because of this fact, the re is a tremendous scope for development so that it may be productively used for the benefit of producers, traders, consumers, and the countrys economy. 19

OUTDOOR ADVERTISING Any advertising done outdoors that publicizes your business s products and servi ces. Outdoor advertising includes various types of promotional displays, from hi ghway billboards to transit posters and arena placement, all geared towards comm unicating a message to the public. The message might be to buy a product, take a trip, vote for a politician, or give to a charity. It might even be a public se rvice announcement. According to the Outdoor Advertising Association of America, Inc. (OAAA), businesses spent $5.8 billion dollars on outdoor advertising in 20 04, a figure expected to rise again in 2005. FACTORS AFFECTING OUTDOOR ADVERTISING 1. Modern urban lifestyles 2. Technological advancements 3. Boom in the real est ate and infrastructure a) Malls b) Buildings c) Flyovers d) Toll roads e) Metro trains 4. Rise in consumerism a) Consumer awareness b) Purchase options c) Buyin g power 5. Growth in rural markets 6. Saturation of other medias 20

KINDS OF OUTDOOR ADVERTISING 1. BILLBOARDS a) Front lit b) Back lit 21

2. Bus stops 22

3. Metro stations 23

4. Auto panel 24

5. Train advertisement 25

6. Mobile van 26

7. Hoardings 27

8. Wall paintings 28

9. Taxi 29

CLASSIFICATION AND TYPES OF ADVERTISING 1. Product Related Advertising A. Pioneering Advertising B. Competitive Advertis ing C. Retentive Advertising 2. Public Service Advertising 3. Functional Classif ication A. Advertising Based on Demand Influence Level. A. Primary Demand (Stimu lation) B. Selective Demand (Stimulation) B. Institutional Advertising C. Produc t Advertising A. Informative Product Advertising B. Persuasive Product Advertisi ng C. Reminder-Oriented Product Advertising 4. Advertising based on Product Life Cycle A. Consumer Advertising B. Industrial Advertising 5. Trade Advertising A. Retail Advertising B. Wholesale Advertising 6. Advertising Based on Area of ope ration A. National advertising B. Local advertising C. Regional advertising 7. A dvertising According to Medium Utilized 30

1. Product Related Advertising It is concerned with conveying information about and selling a product or service. Product advertising is of three types, viz., A . Pioneering Advertising B. Competitive Advertising C. Retentive Advertising A. Pioneering Advertising: This type of advertising is used in the introductory sta ges in the life cycle of a product. It is concerned with developing a primary dema nd. It conveys information about, and selling a product category rather than a s pecific brand. For example, the initial advertisement for black and white televi sion and color television. Such advertisements appeal to the consumers emotions a nd rational motives. B. Competitive Advertising: It is useful when the product h as reached the market-growth and especially the marketmaturity stage. It stimula tes selective demand. It seeks to sell a specific brand rather than a general prod uct category. It is of two types: A. Direct Type: It seeks to stimulate immediat e buying action. B. Indirect Type: It attempts to pinpoint the virtues of the pr oduct in the expectation that the consumers action will be affected by it when he is ready to buy. Example: Airline advertising. Air India attempts to bid for th e consumers patronage either immediately - direct actionin which case, it provide s prices, time tables and phone numbers on which the customer may call for reser vations; or eventually indirect action when it suggests that you mention Air Ind ias name when talking to your travel agent. 31

C. Retentive Advertising: This may be useful when the product has achieved a fav ourable status in the market that is, maturity or declining stage. Generally in such times, the advertiser wants to keep his products name before the public. A m uch softer selling approach is used, or only the name may be mentioned in reminde r type advertising. 2. Public Service Advertising This is directed at the social welfare of a community or a nation. The effectiveness of product service adverti sements may be measured in terms of the goodwill they generate in favour of the sponsoring organization. Advertisements on not mixing drinking and driving are a good example of public service advertising. In this type of advertising, the ob jective is to put across a message intended to change attitudes or behaviour and benefit the public at large. 3. Functional Classification Advertising may be cl assified according to the functions which it is intended to fulfil. (i) Advertis ing may be used to stimulate either the primary demand or the selective demand. (ii) It may promote either the brand or the firm selling that brand. (iii) It ma y try to cause indirect action or direct action. i. Advertising Based on Demand Influence Level. A. Primary Demand Stimulation Primary demand is demand for the product or service rather than for a particular brand. It is intended to affect the demand for a type of product, and not the brand of that product. Some advert ise to stimulate primary demand. When a product is new, primary demand stimulati on is appropriate. At this time, the marketer must inform consumers of the exist ence of the new item and convince them of the benefits flowing from its use. Whe n primary demand has been stimulated and competitors have entered the market, th e advertising strategy may be to stimulate the selective demand. 32

B. Selective Demand Stimulation This demand is for a particular brand such as Ch arminar cigarettes, Surf detergent powder, or Vimal fabrics. To establish a diff erential advantage and to acquire an acceptable sort of market, selective demand advertising is attempted. It is not to stimulate the demand for the product or service. The advertiser attempts to differentiate his brand and to increase the total amount of consumption of that product. Competitive advertising stimulates selective demand. It may be of either the direct or the indirect type. ii. Insti tutional Advertising Institutional Advertising may be formative, persuasive or r eminder oriented in character. Institutional advertising is used extensively dur ing periods of product shortages in order to keep the name of the company before the public. It aims at building for a firm a Positive public image in the eyes of shareholders, employees, suppliers, legislators, or the general public. This sells only the name and prestige of the company. This type of advertising is use d frequently by large companies whose products are well known. HMT or DCM, for e xample, does considerable institutional advertising of its name, emphasizing the quality and research behind its products. Institutional advertisements are at c onsumers or focus them upon other groups, such as voters, government officials, suppliers, financial institutions, etc. If it is effective, the target groups wi ll respond with goodwill towards, and confidence in the sponsor. It is also a us eful method or introducing sales persons and new product to consumers. It does n ot attempt to sell a particular product; it benefits the organization as a whole . It notifies the consumers that the company is a responsible business entity an d is patriotic; that its management takes ecologically responsible action, is an affair- motive action employer, supports the socialistic pattern of society or provides employment opportunities in the community. When Indian Oil advertisemen ts describe the companys general activities, such as public service work, this ma y be referred to as institutional advertising because it is intended to build an overall favorable attitude towards the company and its family of products. HMT once told the story of the small-scale industries supplying it with component pa rts, thus indicating how it aided the development of ancillary industries. 33

iii. Product Advertising Most advertising is product advertising, designed to pr omote the sale or reputation of a particular product or service that the organiz ation sells. Indanes Cooking Gas is a case in point. The marketer may use such pr omotion to generate exposure attention, comprehension, attitude change or action for an offering. It deals with the non-personal selling of a particular good or service. It is of three types as follows:A. Informative Product Advertising B. Persuasive Product Advertising C. Reminder-Oriented Product Advertising A. Infor mative Product Advertising: This form of advertising tends to characterize the p romotion of any new type of product to develop an initial demand. It is usually done in the introductory stages of the product life cycle. It was the original a pproach to advertising. B. Persuasive Product Advertising: Persuasive product ad vertising is to develop demand for a particular product or brand. It is a type o f promotion used in the growth period and, to some extent, in the maturity perio d of the product life cycle. C. Reminder-Oriented Product Advertising: The goal of this type of advertising is to reinforce previous promotional activity by kee ping the brand name in front of the public. It is used in the maturity period as well as throughout the declining phase of the product life cycle. 4. Advertisin g based on Product Life Cycle A. Consumer Advertising B. Industrial Advertising 34

A. Consumer Advertising Most of the consumer goods producers engage in consumer product advertising. Marketers of pharmaceuticals, cosmetics, scooters, detergen ts and soaps, cigarettes and alcoholic beverages are examples. Baring a few, all these products are all package goods that the consumer will often buy during th e year. There is a heavy competition among the advertisers to establish an advan tage for their particular brand.

B. Industrial Advertising Industrial executives have little confidence in advert ising. They rely on this form of promotion merely out of fear that their competi tors may benefit if they stop their advertising efforts. The task of the industr ial advertiser is complicated by the multiple buying influence characteristics l ike, the derived demand, etc. The objectives vary according to the firm and the situation. They are: To inform, To bring in orders, To induce inquiri the advertisers name on the buyers list of sources, To provide support for the sal esman, To reduce selling costs, To help get items in the news column of a public ation, To establish recognition for the firm or its product, To motivate distrib utors, To recognition for the firm or its products, To motivate distributors, to create or change a companys image, To create or change a buyers attitude, and The basic appeals tend to increase the rupee profits of the buyer or help in achiev ing his non-monetary objectives. Trade journals are the media most generally use d followed by catalogues, direct mail communication, exhibits, and general manag ement publications. Advertising agencies are much less useful in industrial adve rtising. 35

5. Trade Advertising A. Retail Advertising B. Wholesale Advertising A. Retail Advertising This may be defined as covering all advertising by the stor es that sell goods directly to the consuming public. It includes, also advertisi ng by establishments that sell services to the public, such as beauty shops, pet rol pumps and banks. Advertising agencies are rarely used. The store personnel ar e usually given this responsibility as an added task to be performed, together w ith their normal functions. The result is that advertising is often relegated to a secondary position in a retail store. One aspect of retail advertising is cooperative advertising. It refers to advertising costs between retailers and manu facturers. From the retailers point of view, cooperative advertising permits a st ore to secure additional advertising that would not otherwise have been availabl e. B. Wholesale Advertising Wholesalers are, generally, not advertising minded, either for themselves or for their suppliers. They would benefit from adopting s ome of the image-making techniques used by retailers the need for developing an overall promotional strategy. They also need to make a greater use of supplier p romotion materials and programs in a way advantageous to them. 6. Advertising ba sed on Area of Operation It is classified as follow: A. National Advertising B. Regional Advertising C. Local Advertising 36

A. National advertising It is practiced by many firms in our country. It encoura ges the consumer to buy their product wherever they are sold. Most national adve rtisements concentrate on the overall image and desirability of the product. The famous national advertisers are: Hindustan Levers DCM ITC Jay Engineering TISCO B. Regional advertising It is geographical alternative for organizations. For e xample, Amrit Vanaspati based in Rajpura claims to be the leading hydrogenated o il producer in the Punjab. But, until recently, it mainly confined itself to one of the vegetable oil brands distribution to Malihabad district (in U.P. near Lu cknow). C. Local advertising It is generally done by retailers rather than manufacturers . These advertisements save the customer time and money by passing along specifi c information about products, prices, location, and so on. Retailer advertisemen ts usually provide specific goods sales during weekends in various sectors. 7. A dvertising According to Medium The most common classification of advertising is by the medium used. For example: TV, radio, magazine, outdoor, business periodic al, newspaper and direct mail advertising. This classification is so common in u se that it is mentioned here only for the sake of completeness. 37

Measuring Advertising Effectiveness All advertising efforts are directed mainly towards the achievement of business, marketing and advertising objectives i.e., to increase the sales turnover and th us to market the maximum profit. The advertiser spends lakhs of rupees in to thi s advertising activity. In the background of all these efforts, is an attempt to attract the customer towards the product through advertising. As soon as the ad vertising campaign is over, a need is generally arisen to measure the effectiven ess of the campaign. Whether, it has achieved the desired results i.e. desired s ales profitability or results in terms the change in customer behaviour in favour of the companys product which will naturally, affect the future sale of the prod uct. In order to measure the effectiveness of advertising copy, two types of tes ts pre tests and post tests- can be undertaken. Pre tests are generally conducte d in the beginning of the creation process or at the end of creation process or production stage. There are several pre and post tests techniques to measure the effectiveness of the advertising copy. The effectiveness of advertising in a pa rticular media may also be measured in any of the following ways (a) By giving d ifferent addresses to different media, (b) Different newspapers may be selected for advertisements of different departments, (c) Coupon blank etc. May be provid ed with the advertisement or (d) Enquiry from consumers should mention the name of the source of information. The technique is known as keying the advertising. Thus in measuring the effectiveness of advertising we include measuring of the e ffectiveness of advertising campaign, advertising copy and the effectiveness of individual media. This chapter deals these three problems. 38

Importance of measuring the Effectiveness of Advertising (1) It acts as a Safety measure Testing effectiveness of advertising helps in finding out ineffective advertisem ent and advertising campaigns. It facilitates timely adjustments in advertising to make advertising consumer oriented and result oriented. Thus waste of money i n faulty advertising can be avoided. (2) Provides feedback for remedial measures Testing effectiveness of advertising provides useful information to the advertis ers to take remedial steps against ineffective advertisements. (3) Avoids possible failure Advertisers are not sure of results of advertising from a particular advertising campaign. Evaluating advertising effectives helps in estimating the results in order to avoid complete loss. (4) To justify the Investment in Advertising The expenditure on advertisement is considered to be an investment. The investme nt in advertising is a marketing investment and its objectives should be spelt o ut clearly indicating the results expected from the campaign. The rate and size of return should be determined in advance. If the expected rate of return is ach ieved in terms of additional profits, the advertisement can be considered as eff ective one. (5) To know the communication Effect The effectiveness of the advertisement can be measured in terms of their communi cation effects on the target consumers or audience. The main purpose of advertis ing is communicated the general public, and existing and prospective consumers, various information about the product and the company. It is therefore desirable to seek post measurements of advertising in order to determine whether advertis ement have been seen or heard or in other words whether they have communicated t he theme, message or appeal of the advertising. (6) Compare two markets Under this procedure, advertising is published in test markets and results are c ontrasted with other. Markets so called control markets which have had the regul ar advertising program. The measurements made to determine results may be measur ements of change in sales, change in consumer attitudes, changes in dealer displ ay and so on depending upon the objectives sought by the advertiser. 39

METHODS OF MEASURING ADVERTISING EFFECTIVENESS Advertising is aimed at improving the sales volume of a concern so its effective ness can be evaluated by its impact on sales. Most of the managers believe that the advertisement directly affects the sales volume and hence they evaluate the effectiveness of the advertising campaign by the increase in the sales volume. T here may be two types measures (i) (ii) Direct measures: and Indirect measures:(1) Direct Measures of Advertising Effectiveness Under direct measures, a relati onship between advertising and sales is established. A comparison of sales of tw o periods or two periods or two markets may be done and the corresponding change s may be noted. The following are some of the methods that are generally used in measuring that advertising effects. (a) Historical Sales Method Some insights i nto the effectiveness of past advertising may be obtained by measuring the relat ionship between the advertising expenditure and the total sales of the product. A multiple regression analysis of advertising expenditure and sales over several time periods may be calculated. It would show how the changes in advertising ex penditure have corresponding changes in sales volume. This technique estimates t he contribution that advertising has made to explaining in a co relational manne r rather than a casual sales, the variation in sales over the time periods cover ed in the study (b) Experimental Control The other measure of advertising effect iveness is the method of experimental control where a casual relationship betwee n advertising and sales is established. This method is quite expensive when rela ted to other advertising effectiveness measures yet it is possible to isolate ad vertising contribution to sales. Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs. Media schedules ex penditure levels or some combination of these advertising decision areas. One ex perimental approach to measuring the sales effectiveness of advertising is test marketing. 40

(i) Before-after with Control Group Design This classic design uses several test and control cities in this design two types of cities are selected. Cities in w hich advertising campaigns are affected may be named as test cities and other ci ties may be called central cities. First of all, the normal sales level is calcu lated for both type of cities prior to advertising campaign, and then the advert ising campaign is presented to the test cities and not the central cities. The e ffect of advertising campaign, can then, be measured by subtracting the amount o f post campaign figure of sale from the pre campaign sale figures in test cities (ii) Multivariable Experimental Designs While the experimental design discussed above yields a reasonably accurate estimate of the effects of the advertising o n sales, it is not successful in explaining the success or failure of the campai gn itself. Multivariable designs Produce these explanations and are, therefore u sed by some very large firm because of their diagnostic value.The power of this multivariable factorial design is explained by G.H.Brown, former Fords Director of Marketing Research. For any single medium, eight possible geographic areas ha ve been exposed and eight have not been exposed. Thus, in this experimental mode l it is possible to evaluate how each individual medium behaves alone and in all possible to evaluate how each individual medium behaves alone and in all possib le combinations with other media. (2) Indirect Measures As it is very difficult to measure the direct effect of advertising on companys profits or sales, most fi rms rely heavily on indirect measures. These measures do not evaluate the effect s of advertisements directing on sales or profits but all other factors such as customer awareness or attitude or customer recall of advertising message affect the sales or profits or goals of the business indirectly. Despite the uncertaint ies about the relationship between the intermediate effects of advertising and t he ultimate results, there is no other alternative but to use indirect measures. The most commonly used measures are (i) Exposure to Advertisement In order to b e effective, the advertisement must gain exposure. The management is concerned a bout the number of target audiences who see or hear the organization message set in the advertisement. Without exposure, advertisement is bound to failure. Mark eters or advertisers may obtain an idea of exposure generated by the medium by e xamining its circulation or 41

audience data which reveal the number of copies of the magazine, newspaper or jo urnal sold the number of persons passing the billboards or riding in transit fac ilities, or the number of persons living in the televiewing or radio listening a rea, and the number of persons switching on their T.V. and radio sets at various points of time. This number can be estimated by interviewing the numbers of the audience for different media. (ii) Attention or Recall of Advertising Message C ontent This is one of the widely used measures of advertising results. Under thi s measure, a recall of the message content among a specified group or groups or prospective customers is measured within 24 hours of the exposure of the adverti sement. Attention value is the chief quality of the advertising copy the adverti sements cannot be said to be effective unless they attract the attention of the target consumers. There are two methods for evaluating the attention getting val ue of the advertisements. One is pre-test and the other is post-test. In a pre-t est evaluation, the consumers are asked to indicate the extent to which they rec ognise or recall the advertisement, they have already seen. This test is conduct ed in the laboratory setting. Here consumers read, hear or listen to the adverti sement and then researchers ask question regarding the advertisement just to tes t the recall and then evaluate it. In post-test method, the consumers are asked questions about the indication of recognition or recall after the advertisement has been run. These measures assume that customers can recall or recognize what they have viewed or listened to. Various mechanical devices are being used in th e western countries which provide indices of attention such as eye-camera etc. ( iii) Brand Awareness The marketers who rely heavily on advertising often apprais e its effectiveness by measuring the customers awareness about the particular pro duct or brand. The assumption of this type of measure is that there is a direct relationship between the advertisements and the awareness. This type of measure is also subject to the same criticisms as is applicable to direct measures of ef fectiveness (sales measures because awareness is also not the direct result of t he advertisements. It is also affected by many other factors. But, for new produ cts, changes in awareness can often be attributed to the influence of advertisin g. 42

(iv) Comprehension Consumers generally use advertisements as a means of obtainin g information about the product, brand or the manufacturer. They cannot be infor med unless they comprehend the message (grasp the message mentally and understan d it fully). Various tests for valuating comprehension are available One is reca ll tests an indicator of comprehension because it is evident that consumers reca ll what they comprehend. Another measure of the variable is to ask questions abo ut subjects how much they have comprehended a message they have recently heard o r seen. One may employ somewhat imprecise test of the comprehension of a newspap er and radio advertisement. One may ask typical target consumers from time to ti me such questions like what did you think of our new commercial? and Did it get the message across? The answers of these questions will provide sufficient insight i nto advertising decision making. (v) Attitude Change Since advertising is consid ered to be one way of influencing the state of the mind of the audience towards a product, service or organisation, the results are very often measured in terms of attitudes among groups exposed to advertising communication. Several measure s are used ranging from asking the questions about willingness to buy the likeli hood of buying to the measurement of the extent to which specific attributes (su ch as modern or new) are associated with a product. (vi) Action One objective of advertisement may be assumed to be to stimulate action or behavior. The action or intention to take an action may be measured on the intention to buy measuring instrument. Under this type of measure, consumers are asked to respond why they are interested in purchasing the product or brand. One type of action that adve rtisers attempt to induce is buying behavior. The assumption is that if an incre ase in sales follows a decrease in advertising expenditure, the change in sales levels are good indicators of the effectiveness of advertising. Logic suggests t hat measurement of sales is preferable to other measurements. Thus, these above measures (direct or indirect) are used to evaluate the effectiveness of advertis ements. It seems from the analysis of the above methods of measuring effectivene ss that directly or indirectly changes in sales or profits are taken as the meas uring rod of the effectiveness of the advertising. 43

COMMUNICATION EFFECTS OF ADVERTISEMENT The management should attempt to evaluate the effectiveness of the advertising c ampaign if the firms advertising goals are to be achieved and the ad effectivenes s is to be increased. By regular evaluation of the effectiveness, the short comi ngs and the plus points would be revealed and the management would be able to im prove the campaign by negating the shortcomings and retaining the favorable poin t. For this purpose, it is very necessary to know how advertising affects the bu yers behaviors. But this is very difficult task because measurements are imperfec t and imprecise. The effectiveness of advertising can be measured by the extent, it to which it achieves the objectives set for it. If it succeeds in attaining the objectives. Advertising can be said to be effective otherwise it will be a w aste of money and time. In this sense, advertising can be recognized as a busine ss activity like other activities. In a very real sense the integrity of promoti onal activities rests on how well those activities work. An advertising budget t hat is spent on some poorly defined task or on undefined tasks may be regarded a s an economic waste as compared to that spent to achieve the well defined object ives for which the results can be measured. Any social institution upon which a significant portion of our total productive efforts is expanded should be able t o point to its specific accomplishment. Indeed, it is a source of discomfort tha t specific results of advertising activities have not always been subject to pre cise measurement. Both practitioners and critics feel that promotional activitie s should only be accepted as socio economic institution with full right and priv ileges when the means exist to prove that advertising super are productive rupees It is undoubtedly a source of embarrassment that we cannot exactly measure the e ffectiveness of advertising in definitive terms. The exact result of advertiseme nt expenditure is very difficult to predict because.(a) The reaction of consumer buyers to the advertising efforts cannot be known in advance. (b) The reaction of competitors in the field cannot be guessed in anticipation and (c) The unexpe cted events (such as change in social and economic environment and the governmen t policies etc.) cannot be accurately anticipated. Such events may influence the results of the advertising efforts. If we take a hypothetical case of a retaile r who contract to spent 44

Rs.5000 on advertisement with a local newspaper for a special sales even. The ad vertisement is seen and the response is much greater than it is anticipated. Wha t caused the success of sale? They message theme colors etc., of the advertiseme nt or the low prices quoted during the sale of the superior quality of the produ ct or absence of competition in the market on the day or the favorable. Weather conditions or the goodwill of the firm etc. The overwhelming success of the sale is the joint result of all the above variables and it is quite impossible to is olate the role of any one variable. It is so because the cause and effect relati onship cannot be established in advance when a multitude of variable impinge upo n a particular event. It is entirely possible that a poor advertising support ma y push up the sale because everything else falls into its proper place or the re verse may be possible. But it does not mean that that we cannot measure the effe cts of particulars advertising effort. The advertising executives are much conce rned about the assessment of the effectiveness of the advertising efforts. For t his purpose, the management needs answers to such questions as: was the advertis ing campaign really successful in attaining the advertising goals? Were our T.V. commercials as good as those of our competitors? Will the print advertisement, which we have designed, make consumers aware of our new product? To get answers of these questions, various tests of effectiveness (Pre- tests and post tests ) are deeded to determine whether proposed advertisement should be used, and if th ey are not satisfactory how they might be improved, and whether on going campaig n should be stopped continued or changed. Pre- tests are conducted before exposi ng target consumers to the advertisements and post tests after consumers have be en exposed to them. As indicated earlier, the advertisers are interested in know ing what they are getting for their advertising rupees, So they test the propose d advertisement with pre test and measure the actual results with a post test. I n the past, protesting was done by the advertising agencies but now the advertis ers have been taking an increasingly active role in protesting process. Pre test may be done either before an advertisement has been designed or executed after it is ready for public distribution or at both points. During protesting there i s often research on three vital questions:(i) Do consumers feel that the adverti sement communicates something desirable about the product? (ii) Does the message have an exclusive appeal that differentiates the product from that of the compe titors? 45

(iii) Is the advertisement believable? Although a lot of money is spent on prote sting yet the advertisers like to confirm the results by post testing of their p romotional campaigns due to the following reasons:(i) There is a need produce mo re effective advertising by retaining the good and removing the bad. (ii) The ad vertising executives can prove to the satisfaction of the management that a high er advertising budget will benefit the firm. (iii) There is a need for measuring the results to determine the level of expenditure that is most promising. Most research focuses on the communication effect rather than sales effect because it is a long run process. In the short run, however sales may be slight and import ant but in the long run its effects ob brands and companies may be of great impo rtance. Indirectly it will affect the sales in the long run, by changing the con sumer awareness and attitude. The advertisers are therefore, concerned with thei r impact on consumer awareness and attitude. The communication effect on sales m ay be presented in the following figure:Communication Effect on Sales Awareness Attitude Trial Satisfaction Purchases or repurchase Awareness builds a favorable or at least a curious attitude towards the product which leads to experimentati on. If consumer is satisfied with the trial he may decide to purchase the produc t. There are many critical and unresolved issues in determining how to test the communication effects of advertising. Among these are:46

(1) Exposure Conditions Should advertising be tested under realistic conditions or under more controlled laboratory conditions? (2) Execution Protesting a finis hed advertisement as an expensive and time consuming. Does protesting a prelimin ary execution produce accurate and useful data? (3) Quality Vs. Quantity Data- Q uantitative data are the easiest and the almost precise measurement. But qualita tive data collected through interviews may provide information that short answer questions never can. Many types of advertising tests are conducted (different m ethods of pre tests and post test are given in question number) In T.V. commerci als are tested by inviting a group of people to the studio to view a program. Th e audience is then surveyed about the commercials. Print advertisements are test ed through dummy magazine portfolio tests. 47

Compunction Effectiveness Vs Sales Effectiveness It is easier to assess the comm unication effect of advertising than the sales effect. Many firms try to measure the effectiveness of advertising in terms of sales results but this practice is always misleading. Since, the effect is the result of so many variables, a dist inct effect of advertising on sales cannot be correctly measured, Although there may be some exceptions. For example direct mail advertising can effectively be measured by the inquiries received. But in many situations the exact relationshi p between advertising activity and sales cannot be established satisfactorily. W e can correctly assume that some sales will occur even though there is no advert ising or little advertising or conversely there will be no increase in sales aft er the point of saturation is reached or it may be that sales will show a decrea sing trend at this point in spite of large amount of expenditure on advertising is done. It is so because advertising is no the only variable that effect the sa les. Thus, we may conduct that sales effect of advertising is difficult to measu re because a number of variables affect the quantum of tales and the contributio n of advertisement cannot be measured separately unless all other variables are presumed to be constant. This situation is quite hypothetical and almost nonexis tent. Added to this is the fact that advertisement itself is made of a variety o f variables such as media, messages, colours, page or time of the day, locations , the size of the headline and the appeals used. Thus even if the advertising va riable is separated this would still not answer the question about the effective ness of the individual components of the advertising campaign. So advertisers tr y to measure the communication effect of the advertising. Suitability In small b usiness firms where the marketing research resources are limited advertising man agers may decide on less expensive and less relevant measures. The big business house, which has more access to research, may decide on the more relevant and ex pensive measures. 48

Factors Affecting Advertising The final external factor in the planning framework concerns environmental facto r social, legal, and global. Law forbids deceptive advertising. One solution is to create brand advertising that is vague and contains little specific informati on. However, such an approach can result not only in ineffective advertising; by it can lessen the social value of advertising by reducing the amount for useful information that it provides to society. Thus, and advertiser who attempts to p rovide specific, relevant information must be well aware of advertising regulati on. Even more difficult consideration for people involved in the advertising eff ort is broad social and economic issues. Another concern is that advertising, es pecially when it is more irritating than entertaining, is an intrusion into an a lready excessively polluted environment. A whole set of rules is emerging to cov er advertising directed at children, and advertising for products such as alcoho l and cigarettes, and the use of environmental and health claims in advertising. Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other. 49

IMPACT OF ADVERTISEMENT Advertising has an important effect on a countrys economy, society, culture, and political system. This is especially true in the United States where the adverti sing industry plays such a prominent role. 1. Economic Impact Most economists be lieve that advertising has a positive impact on the economy because it stimulate s demand for products and services, strengthening the economy by promoting the s ale of goods and services. Manufacturers know that advertising can help sell a n ew product quickly, enabling them to recoup the costs of developing new products . By stimulating the development of new products, advertising helps increase com petition. Many economists believe that increased competition leads to lower pric es, thereby benefiting consumers and the economy as a whole. These economists al so argue that by interesting consumers in purchasing goods, advertising enables manufacturers and others to sell their products in larger quantities. The increa sed volume of sales enables companies to produce individual units at lower costs and therefore, sell them at a lower price. Advertising thus benefits consumers by helping lower prices. Other economists, however, believe that advertising is wasteful. They argue that the cost of advertising adds to the cost of goods and that most advertising simply encourages consumers to buy one brand rather than a nother. According to this view, advertising simply moves sales from one company to another, rather than increasing sales overall and thereby benefiting the econ omy as a whole. 50

2. Social Impact Advertising can have wide-ranging repercussions on a society. S ome critics suggest that advertising promotes a materialistic way of life by lea ding people to believe that happiness is achieved by purchasing products. They a rgue that advertising creates a consumer culture in which buying exciting new pr oducts becomes the foundation of the society s values, pleasures, and goals. Oth er critics express concern over the way advertising has affected women and racia l minority groups. Ads in the 1950s depicted women primarily as decoration or se x objects. Although millions of women worked outside the home in the 1960s, ads continued to focus on their role as homemakers. Whether owing to the feminist mo vement or to women s increasing economic power, after the 1960s it became more c ommon to see women depicted in professional roles. However, many ads today still emphasize a womans sexuality. The way advertising has depicted racial minorities has also been harmful. Prior to 1960, African Americans were usually shown in a subordinate position. Due to the influence of the civil rights movement, howeve r, advertisers by the 1980s had begun to depict African Americans as students, p rofessionals, or business people. However, many African American organizations a nd community activists continue to object to the way that alcohol and tobacco co mpanies have seemingly targeted low-income minority communities with a heavy pre ponderance of outdoor advertising for their products. As ads have begun to more fully reflect the lives of women and African Americans in the United States, inc reasing attention has been paid to the way in which advertising shows other ethn ic groups, including Hispanics, Asians, Native Americans, and Eastern Europeans. There is still considerable debate over how advertising influences public perce ption of gender and of particular ethnic groups. Advertising has a major social impact by helping sustain mass communications media and making them relatively i nexpensive, if not free, to the public. Newspapers, magazines, radio, and broadc ast television all receive their primary income from 51

advertising. Without advertising, many of these forms of mass communication migh t not exist to the extent that they do today, or they might be considerably more expensive, offer less variety, or even be subject to government control through subsidies. In-depth news programs, a diversity of magazines, and free entertain ment might no longer be widely available. At the same time, however, some critic s warn that because advertising plays such a major economic role, it may exercis e undue influence on the news media and thereby curtail the free flow of informa tion in a free society. Reporters and editors, for example, may be hesitant to d evelop a news story that criticizes a major advertiser. As a result, society mig ht not be alerted to harmful or potentially harmful conduct by the advertiser. M ost members of the news media deny that pressure from an advertiser prevents the m from pursuing news stories involving that advertiser, but some members of the media acknowledge that they might not be inclined to investigate an issue aggres sively if it threatened to offend a major advertiser. Advertisers may affect med ia programming in other ways, too, critics charge. For example, companies that s ponsor TV programs prefer relatively wholesome, noncontroversial programming to avoid offending a mass audience. This preference causes TV networks to emphasize this type of programming. The result is that society may be denied the benefits of being able to view challenging or highly original entertainment programs or news programs on controversial issues. Because advertisers are especially intere sted in attracting the 18 to 34 year olds who account for most consumer spending , television shows are often developed with this audience in mind. If the rating s show that a program is not attracting large audiences, particularly among 18 t o 34 year olds, advertisers often withdraw support, which causes a program to be canceled. As a result, shows that are more likely to interest and to be of valu e to older audiences are not produced. The impact of television on young childre n has received much attention. Research suggests that children see television ad vertising as just another form of programming and react uncritically to its mess ages, which makes them especially vulnerable to advertising. 52

There is also concern about the way in which adolescent girls respond to adverti sing that features beautiful, thin models. Research indicates that many adolesce nt girls are unduly influenced by this standard of beauty, become dissatisfied w ith their own bodies, and may develop eating disorders in pursuit of a thin figu re. New research suggests that adolescent boys are also being influenced by adve rtising images of bulked-up, buffed bodies. As a result, many become dissatisfie d with their own body image, devote large amounts of time to weightlifting, and may even take drugs that have harmful side effects in order to develop more musc le. Those over the age of 60 are thought to be less influenced by advertising, b ut some elderly people no longer process messages as easily as younger people, m aking them more susceptible to questionable advertising claims. 3. Political Imp act Advertising is now a major component of political campaigns and therefore ha s a big influence on the democratic process itself. In 1998 more than $467 milli on was spent on election campaigns in the United States. That amount of spending placed political advertising in the ranks of the countrys 30 leading advertisers that year. Political advertising is a relatively new development in U.S. histor y. Advertising professionals did not become involved in electoral campaigns unti l the 1950s. But since then, political advertising has grown in sophistication a nd complexity. Political advertising enables candidates to convey their position s on important issues and to acquaint voters with their accomplishments and pers onalities. Television advertising is especially effective for candidates running for national or statewide office because it can reach so many people at once. C andidates can also use advertising to respond effectively to the charges of thei r opponents. Various campaign finance reform proposals, however, have tried to a ddress the impact of television advertising on political campaigning. Because of the high cost of television ads, the costs of political campaigns have skyrocke ted, making it necessary for candidates to raise money continually, even after t hey have been elected to office. Critics say this factor jeopardizes the democra tic process by making elected officials beholden to 53

wealthy contributors and by making it more likely that only the wealthy will run for office. Some reform proposals have called for free airtime, but television and radio networks have resisted this idea. Critics of political advertising als o charge that the 30-second television spot has become more important to a polit ical campaign than a thorough discussion of the issues. As a result, voters are bombarded with image advertising rather than being acquainted with the candidates positions. They contend that this practice is harmful to good government. Issue s are simplified, and candidates are packaged and sold much like a consumer produc t, thereby distorting the political process. 4. Cultural Impact Advertising can affect cultural values. Some advertising messages, for example, encourage aggres sive individualism, which may clash with the traditional cultural values of a co untry where the collective or group is emphasized over the individual or humilit y or modesty is preferred to aggressiveness. With the globalization of the world economy, multinational corporations often use the same advertising to sell to c onsumers around the world. Some critics argue that advertising messages are thus helping to break down distinct cultural differences and traditional values, cau sing the world to become increasingly homogeneous. Many advertising campaigns, h owever, have universal appeal, overriding cultural differences, or they contribu te to culture in a positive way. Humor in advertising has made many ad campaigns widely popular, in some cases achieving the status of folklore or taking on new life in another arena. For example, a popular ad campaign for a fastfood chain with the slogan Wheres the beef? became part of the 1980 Democratic presidential pr imary campaign between Gary Hart and Walter Mondale. The ad ridiculed a competit or by depicting a small hamburger patty dwarfed by a huge bun. During a primary debate one of the candidates used the ad slogan to suggest that his opponents cam paign lacked substance. 54

RESEARCH METHODOLOGY Research Design Data Source Research Instrument Sample design Sample size Sample location : Descriptive : Primary data : Secondary data : Questionnaire : Simple random design : 100 : Delhi : NCR Sample element : Students : House hold : Prof essional 55

RESEARCH METHODOLOGY Chi-Square Test Chi-square is a statistical test commonly used to compare observed data with dat a we would expect to obtain according to a specific hypothesis. For example, if, according to Mendel s laws, you expected 10 of 20 offspring from a cross to be male and the actual observed number was 8 males, then you might want to know abo ut the "goodness to fit" between the observed and expected. Were the deviations (differences between observed and expected) the result of chance, or were they d ue to other factors. How much deviation can occur before you, the investigator, must conclude that something other than chance is at work, causing the observed to differ from the expected. The chi-square test is always testing what scientis ts call the null hypothesis, which states that there is no significant differenc e between the expected and observed result The formula for calculating chi-squar e ( 2) is: 2= (o-e)2/e That is, hi-square is the sum of the squared differen e be tween observed (o) and the expe ted (e) data (or the deviation, d), divided by t he expe ted data in all possible ategories. Step-by-Step Pro edure for Testing Your Hypothesis and Cal ulating Chi-Square 1. State the hypothesis being tested and the predi ted results. Gather the data by ondu ting the proper experiment ( or, if working geneti s problems, use the data provided in the problem). 2. Dete rmine the expe ted numbers for ea h observational lass. Remember to use numbers , not per entages. Chi-square should not be al ulated if the expe ted value in any ategory is less than 5. 3. Cal ulate 2 using the formula. Complete all al ulations to three signifi ant digits. Round off your answer to two signifi ant d igits. 4. Use the hi-square distribution table to determine signifi an e of the value. Determine degrees of freedom and lo ate the value in the appropriate ol umn. Lo ate the value losest to your al ulated on that degrees of freedom df r ow. Move up the olumn to determine the p value. 56

5. State your on lusion in terms of your hypothesis. If the p value for the al ulated is p > 0.05, a ept your hypothesis. 'The deviation is small enough that han e alone a ounts for it. A p value of 0.6, for example, means that there i s a 60% probability that any deviation from expe ted is due to han e only. This is within the range of a eptable deviation. If the p value for the al ulated is p < 0.05, reje t your hypothesis, and on lude that some fa tor other than h an e is operating for the deviation to be so great. For example, a p value of 0. 01 means that there is only a 1% han e that this deviation is due to han e alo ne. Therefore, other fa tors must be involved. The hi-square test will be used to test for the "goodness to fit" between observed and expe ted data from severa l laboratory investigations. OF DATA COLLECTION to present the report with a pragmati approa h along with the theoreti t some primary and se ondary data is olle ted so as to present our rep fa ts and figures.

PRIMARY DATA: The primary data has been olle ted by preparing a questionnaire, whi h was ir ulated over hundred persons. They have been asked questions regarding the differ ent kind of media affe ting their hoi es regarding the different produ ts. A sp e imen of the questionnaire is atta hed. SECONDARY DATA: The se ondary data is also of utmost importan e. It helps in the in depth analys is of the organization. Various fa ts and figures have been gathered through dif ferent websites & portals. A list of all those referral websites is mentioned la ter in the report in referen es. 57

ANALYSIS In order al aspe ort with

SAMPLING UNIT Sampling Unit is the total number of samples differed in different lo ality. Sl. No. 1. 2. 3. Classes Students Professionals Household Total No. of Classes 33 3 4 33 100 Data have been olle ted through the survey method while surveys have been ondu ted in one ity: i) ii) Delhi NCR

The data olle ted was both from the primary and se ondary sour e. The primary d ata was olle ted through questionnaires and was olle ted personally. The se on dary data was olle ted through books, magazines, and websites. All the area had segmented a ording the population of this area. We have onsidered 100 as samp le size. 58

CHI-SQUARE TEST Aim- To find out is there a relationship between the o upation of the ustomer and mode of advertising media affe ting their per eption with regards to differe nt produ ts. Following is the information olle ted from the primary sour e . Ty pe of media O upation of people Student Professional Household Total Outdoor medi a Print media Ele troni media 10 10 5 25 8 9 10 27 2 1 45 48 20 20 60 100 Step 1: H0: There is no signifi ant differen e (or no relationship) between the people o upation and the mode of advertising media affe ting their per eption. HA: There is signifi ant differen e( or relationship) between the people o upat ion and the mode of advertising media affe ting their per eption. Step 2: Level of signifi an e considered in this n lysis is 5% =0.05. Step3: C lcul tion for t he expected frequency We use formul (Row tot l*column tot l)/Gr nd tot l E11=R1 C1/N=(25*20)/100=5, E12=(R1C2)/N=(27*20)100=5.4 E13=(R1c3)/N=(48*20)/100=9.6 EE2 1=(R2C1)/N=(27*20)100=5.4 E22=(R2c2)/N=(48*20)/100=9.6 E23=(R2C3)/N=(25*20)/100= 5, E31=(R3C1)/N=(60*25)/100=15 E32=(R3C2)/N=(27*60)/100=16.2 E33=(R3C3)/N=(48*60 )/100=28.8 Step 4: Test st tistic for testing H0 is: ^2=(0i-Ei)^2/Ei 59

Observed frequency Oi 10 8 2 10 9 1 5 10 15 `Expected Frequency Ei 5 5.4 9.6 5 5.4 9.6 15 6 28.8 (Oi- Ei)^2 25 6.76 57.76 25 12.96 73.96 100 16 262.44 ( Oi-Ei)^2/ Ei 5 1.25 6.01 5 2.4 7.70 6.66 2.66 9.1125 ^2 =45.79 Step 5: St tistic follows chi-squ re distribution. So (r=no. of rows c= no. co lumns) Degree of freedom df=(r-1)(c-1) = (3-1)(3-1) = 2*2= 4. T bul ted v lue t 4 degree of freedom nd 0.05 level of signific nce. D(4,0.05)= 9.488 Step6: ^2 c l > ^ t b. The decision rule is to reject the null hypothesis if the c lcul ted v lue of the ^2 comes to be gre ter th n the t bul ted v lue of the ^2 nd to cce pt it otherwise. In this c se we reject null hypothesis. Thus ccept the HA, Ste p:7 Conclusion: There is signific nt difference between the people occup tion nd mode of medi ffecting their perception reg rding different products. Hence People with different occup tion re ffected differently by different kinds of medi i..e Print medi ,electronic medi nd Outdoor medi 60

GRAPHICAL INTERPRETATION 1. From where do you get inform tion bout the new product? Answers Television & other electronic medi Newsp pers nd M g zines Outdoor dv ertizing (billbo rds nd ho rdings) No. of respondents 48 27 25 Interpret tion

2. Which form of dvertisement do you like more? 61

A l rge size of popul tion is influenced by Television

nd Newsp pers.

Answers Still im ge Moving im ge No. of respondents 28 72 Interpret tion: People re more ffected by dvertisement with moving im ge. 62

3. For you dvertisement is source of : Answers Inform tion Entert inment No. of respondents 62 38

63

Interpret tion: More number of people consider dvertisement s h n source of entert inment.

source of inform tion r ther t

26 74 Interpret tion: Entert ining dvertisement does not ffect the opinion of customer bout the pro duct 64

4. Does entert ining dvertisement Answers Yes No No. of respondents

ffect your opinion bout the product?

5. Does inform tion provided in dvertisement ffects your opinion bout the pro duct? Answers Yes No No. of respondents 87 13

65

Interpret tion: Inform tion provided in the sumers bout the product.

dvertisement ffect very much on the opinion of con

66

Interpret tion: L ngu ge used in the dvertisement ffects ut the product.

lot on the opinion of consumers

6. Does l ngu ge used in dvertisement ffects your opinion Answers Yes No No. of respondents 63 37

bout the product?

bo

67

Interpret tion: Presence of ny celebrity

ffects on the opinion of consumers bout the product.

7. Does presence of ny celebrity in the dvertisement t the product? Answers Yes No No. of respondents 69 31

ffects your opinion bou

8. Does intensity of the dvertisement ffects your opinion bout the product? Answers Yes No No. of respondents 52 48 Interpret tion: The effect of intensity is very powerful on the opinion of consumers bout the p roduct. 68

 Interpret tion: Presence of soci l issues in dvertisements ffects very much on the opinion of consumers bout the product. 69

9. Does presence of soci l issues in the dvertisement t the product? Answers Yes No No. of respondents 59 41

ffects your opinion bou

70

Interpret tion: Advertisement helps very much in incre sing the s les of

ny product.

10. Do you think dvertisement helps in incre sing s les of Answers Yes No No. of respondents 87 13

ny product?

FINDINGS Advertisements with moving im ge re more effective th n dvertisement with stil l im ge. Inform tion provided in the dvertisement h s more influence on consume rs perception bout the product. L ngu ge used in the dvertisement lso pl ys import nt role in incre sing effec tiveness of n dvertisement. Intensity of dvertisement ffects the perception of consumers tow rds the product nd le ds them for its purch se. Soci l issues included in dvertisement ffects the perception of high ge group people. N tion l dvertisement h s more influence on consumers perception bout the product inste d of loc l dvertisement. Advertisement incre ses the s les of ny product. 71

SUMMARY Advertising m y be defined s the process of buying sponsor-identified medi sp ce or time in order to promote product or n ide . The Americ n M rketing Asso ci tion, Chic go, h s defined dvertising s ny form of nonperson l present tion or promotion of ide s, goods or services, by n identified sponsor. Advertising focuses on m ss production nd m ss communic tion long with the niche m rkets nd speci lized m rkets . Advertising includes the following forms of mess ges: T he mess ges c rried in Newsp pers nd m g zines; On r dio nd television bro dc s ts; Circul r of ll kinds, (whether distributed by m il, by person, thorough tr desmen, or by inserts in p ck ges); De ler help m teri ls, Window displ y nd counter displ y m teri ls nd efforts; Store signs, motion pictures used for dvertising, Novelt ies be ring dvertising mess ges nd Sign ture of the dvertiser, L bel st gs n d other liter ture ccomp nying the merch ndise. Advertising seeks to condition the consumer so th t he/she m y h ve f vor ble re ction to the promotion l mes s ge. Advertising objectives serve s guidelines for the pl nning nd implement tion of the entire dvertising progr m. E ch dvertisement is specific communic tion th t must be effective, not just for one customer, but for m ny t rget buyers. This me ns th t specific objective s should be set for e ch p rticul r dvertisement c mp ign. Advertising is for m of promotion nd like promotion; the objectives of dvertising should be spe cific. This requires th t the t rget consumers should be specific lly identified nd th t the effect which dvertising is intended to h ve upon the consumer sho uld be cle rly indic ted. The objectives of dvertising were tr dition lly st te d in terms of direct s les. Now, it is to view dvertising s h ving communic ti on objectives th t seek to inform persu de nd remind potenti l customers of the worth of the product. 72

CONCLUSION CHI-SQUARE reve ls th t ll the determin nts re not intern lly equ l they re s ignific ntly different from one nother. Simil rly, ll the p r meters re not i ntern lly equ l they re signific ntly different from one nother. In order to m e sure the effectiveness of dvertising, which ppro ch (communic tion effective ness or s les effectiveness), is more suit ble? Two f ctors re to be considered in deciding the ppro ch. They re 1. Relev nce of dvertising objectives on th e over ll perform nce objectives: Gener lly dvertising m n gers would like to k now the role of dvertisements on the over ll perform nce of the business firm i .e., return on investment nd on profit bility. A s le is determining f ctor o f comp ny perform nce. 2. Difficulty nd cost of obt ining d t needed to ev lu te effectiveness: Gener lly communic tion me sures re e sy to follow th n s les effectiveness me sures. If the me sures of dvertising re more relev nt they w ill be difficult nd costly. If it is less difficult nd che p the me sures will not be more relev nt. Therefore, the dvertising m n ger h s to m ke b l nce between these two ppro ches. 73

LIMITATIONS The m rketing rese rcher h s to f ce cert in difficulties while he c rries out t he rese rch work. He knows the limit tion beforeh nd, uncontroll ble nd others re controll ble. Some import nt limit tions, which re f ced by rese rchers s follows: -

S mple size restricted to 100 only which w s very less ccording tot l popul tio n. The responses given by respondents were not lw ys ccur te bec use the responde nts g ve the response ccording to their underst nding. Survey is time consuming process but the time to collect the d t for rese rch w s very less. Sometimes the respondents re not willing to fill the the result nt m y not be c orrect. questionn ire nd hence M rketing rese rchers studies the beh vior th t is r tion l. Very often, they do not express their feeling correctly wh t they think. In such c ses their h bitu l, pr ctice, preferences c nnot be ssessed correctly.

74

Investment in dvertisement should be m de with gre t c re of medi of dvertise ment nd type of dvertisement. Advertisers should develop new nd more effectiv e w ys of dvertisement. 75

SUGGESTIONS Advertisement should be m ind. Advertisement should ifferent ge groups. To m f effectiveness should be t

de with keeping the determin nts of effectiveness in m be ccording to the product nd its suit bility with d ke dvertisement more effective ll the determin nts o ken c re of.

REFERENCE Books 1. Moh n M, (1989), Advertising M n gement : concept nd c ses, T t Mc Gr whill, Indi . 2. Kotler Philip,(2000), M rketing M n gement, The millennium edi tion, Printice h ll, Indi . 3. K pferer J. , (2009) Str tegic Br nd M n gement , Kog n p ge Indi Pvt. Ltd. 4. Str tegic Br nd M n gement K pferer 5. Gupt S.L (2005), Advertising nd S les Promotion M n gement, Excel Books, New Delhi. Inte rnet 1. http://books.google.com/books?id=t-yoHkKZ9ZsC&q=m rketing&dq=m rketing&c d=1 2. http://books.google.com/books?id=wAMs LJoykYC&dq=m rketing&cd=3 76

ANNEXURE Questionn ire We re doing rese rch project s p rt of our curriculum on A Study on Effect o f v rious modes of Advertisement on Consumers. For this we require you to ple se fill this questionn ire.

N me: ................................. Sex: Age: . Below 20 b. 20 to 30 c. 30 t ve 40 Occup tion: . Student c. House hold [ ] [ ] b. Business cl ss [ ] d. Serv ice cl ss [ ] 1. From where do you get inform tion bout the new product? . Tel evision c. Outdoor dvertizing d. Internet e. Peers (friends/f mily) [ ] [ ] [ ] [ ] b. Newsp pers nd M g zines [ ] [ ] [ ] [ ] [ ] . M le [ ] b. Fem le [ ] 2. Which form of Outdoor dvertisement do you like more? . Still im ge (B nners nd ho rdings) [ ] b. Moving im ge (Visu l displ y bo rd) [ ] 77

3. For you dvertisement is source of . Inform tion b. Entert inment . Yes b . No . Yes b. No . Yes b. No product? . Yes b. No . Yes b. No product? . Ye s b. No . Yes b. No [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ]

8. Does intensity of the dvertisement ffects your opinion bout the product?

78

10. Do you think dvertisement helps in incre sing s les of

ny product?

9. Does presence of soci l issues in the dvertisement t the

ffects your opinion bou

7. Does presence of ny celebrity in the dvertisement t the

ffects your opinion bou

6. Does l ngu ge used in

dvertisement ffects your opinion

bout the product?

5. Does inform tion provided in duct?

dvertisement ffects your opinion bout the pro

4. Does n entert ining dvertisement influences your opinion

bout the product?