a project study report ondocshare04.docshare.tips/files/13556/135562658.pdfproject study report on...
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A
Project Study Report
On
―Advertisement Effectiveness‖
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
Submitted By: - Submitted To:-
Mukesh Kumar Yadav Mrs. Suhasini Varma
MBAPart 2nd year HOD MBA
2011-2013
Rajasthan Institute of Engineering & Technology, Bhakrota Jaipur
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Preface
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Acknowledgement
I express my sincere thanks to my project guide Dr. Suhasini Varma, HOD MBA., for guiding
me right from the inception till the successful completion of the project. I sincerely
acknowledge her for extending their valuable guidance, support for literature, critical reviews of
project and the report and above all the moral support she had provided to me with all stages
of this project.
I would also like to thank the supporting staff Mrs. Monika Shekhawat Department, for their
help and cooperation throughout our project.
Mukesh Kumar Yadav
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Executive Summary
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Contents
1. Introduction to the Industry
2. Introduction to the Organization
3. Research Methodology
3.1 Title of the Study
3.2 Duration of the Project
3.3 Objective of Study
3.4 Type of Research
3.5 Sample Size and method of selecting sample
3.6 Scope of Study
3.7 Limitation of Study
4. Facts and Findings
5. Analysis and Interpretation
6. SWOT
7. Conclusion
8. Recommendation and Suggestions
9. Appendix
10. Bibliography
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Introduction to the Industry
Indian advertising industry is talking business today and has evolved from being a small-scale
business to a full-fledged industry. It has emerged as one of the major industries and tertiary
sectors and has broadened its horizons be it the creative aspect, the capital employed or the
number of personnel involved. Indian advertising industry in a short span of time has carved a
niche for itself and placed itself on the global map.
Indian advertising Industry which has an estimated value of Rs.13, 200-crore has made jaws
drop and set eyeballs gazing with some astonishing pieces of work that it has given in the
recent past. The creative minds of the Indian advertising industry incorporates have come up
with some mind-boggling concepts and work that can be termed as masterpieces in the field of
advertising.
In the year 2009 the industries attrition rate is as high as 20-25 % which was sober in that
sense. According to industry executives the attrition rate is below 5 %, implying that most had
to stay put and deliver on their briefs in their respective agencies.
The ads shown to us are sometimes innovative and sometimes they really get on your nerves,
especially when they are repeated time and again and especially when they are repeated
twice. This happens when there is something sponsored by them say a tennis match or an
award ceremony, etc. Advertisements usually amaze people with their creativity and
presentation whereas some are really horrible in the depiction of their ideas. Most of the times
however we find quite interesting and appealing ads. The Indian ad agencies have some of the
most creative and talented people around which is attested by the fact that global companies
are approaching Indian ad agencies to handle their media campaigns.
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Market capitalization
At the last Cannes Awards, the president of the Jury was Piyush Pandey, Group President and
National Creative Director of Ogilvy and Mather conveyed that India is quickly becoming a
viable online advertising center. There is expectation that the online advertising market in India
to heat up. As Lionel Lim, Sun's VP and MD (Asia South), recently stated, "Over the next three
to four years, we want to help create up to 100 dot-com companies in India, each with a
market cap of around $10 billion. That is, perhaps, the biggest investment we can make in this
country.
Size of the industry
The size of Indian Advertising Industry depends on the following factors and industries.
Television Current size: Rs 148 billion Projected size by 2010: Rs 427 billion; CAGR: 24%
Filmed entertainment: Current size: Rs 68 Billion: Projected size by 2010: Rs 153 billion;
CAGR: 18% Print Media: Current size: Rs 109 Billion: Projected size by 2010: Rs 195 billion;
CAGR: 12% Radio: Current size: Rs 3 billion: Projected size by 2010: Rs 12 billion; CAGR:
32%. Music Current size: Rs 7,000 million crore projected size by 2010: Rs 7,400 million;
CAGR: 1%. Live entertainment: Current size: Rs 8,000 million, Projected size by 2010: Rs
18,000 million; CAGR: 18%
Out-of-home Advertising: Current size: 9000 million, Projected size by 2010: 17,500 million;
CAGR: 14%.
Internet Advertising: Current size: Rs 1.6 Billion, Projected size by 2010: Rs 7.5 billion; CAGR:
50%.
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Total contribution to the economy/ sales
The turnover of Indian Advertising Industry is less than 1% of the national GDP of the country
as compared to 2.3% of share of US to the GDP which indicates the tremendous growth
potential for India. The Indian advertising industry is expected to grow by 13 %in 2010 to Rs
21,145 crore. According to the PITCH-Madison Media Advertising Outlook 2010 analysis, the
Indian advertising pie is expected to be worth about Rs 21,145 crore this year, a 13 % increase
over the previous one. The Indian media and advertising industry clocked a size of Rs 18,670
crore in 2009 and that saw a dramatic drop of 10 percentage points compared to 2008, where
the industry was worth Rs 20,717 crore. Total advertising market grew 17% in 2008 and is
projected to increase.
Top leading Companies
Ogilvy and Mather
J Walter Thompson India
Mudra Communication Pvt. Ltd
FCB-Ulka Advertising Ltd
Reinfusion-DY&R
McCann-Erickson India Ltd
RK Swami/BBDO Advertising Ltd
Grey Worldwide (I) Pvt. Ltd
Leo Burnett India Pvt. Ltd
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Contract Advertising India Ltd
Employment opportunities
There are tremendous opportunities in Indian Advertising Industries in the country and abroad.
The opportunities include that of account planner, executive, copywriter, visualizer, creative art
director, animator, multimedia expert, photographer, printer, TV producer, media planner, web
developer jobs, web planner, and marketing professional. Candidates qualified in Commercial
Art have great opportunities. MBAs can also play a significant role in client servicing. However,
individual creativity and ability for innovation are more important than academic degrees. The
advertising industry always has a perennial demand of talent.
Latest developments
The global Advertising Industry as far as scale of operations and scope is concerned the
turnover is close to USD 450 billion annually. Indian Advertising Industry contributes less than
1.5% which is next to China and Russia. The Global Ad Industry is expected to reach a growth
rate of 2% in 2010 which is better than 2009 while Indian Ad Industry in contrast estimates to
reach the growth rate of 10% figuring about Rs.23700 crores. The reasons are because of the
IPL, Foot ball World Cup and the Commonwealth Games.
India contributes to 17 % of the world population but is only 0.7% of the world advertising
market so it has huge potential to grow in future.
Experts reveal that total advertisement spending by the political parties would be around Rs
800 crore. The Congress and the BJP alone could spend over Rs 400 crore on ads on
television, radio and newspapers. Most of the ads appear on going to general entertainment
and regional TV channels and hardly a small proportion in News channels.
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Worldwide Partne rInc are the Ninth largest global network of more than 90 marketing and
communication agencies in about 50 countries which has recently tied up with Indian
Pressman Advertising and Marketing Ltd following repeated enquires about India.
Introduction to the Organization
Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest consumer
goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch
company Unilever which controls 52% majority stake in HUL. Its products include foods,
beverages, cleaning agents and personal care products.
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as
Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength
of over 16,500 employees and contributes to indirect employment of over 65,000 people. The
company was renamed in June 2007 as ―Hindustan Unilever Limited‖.
Lever Brothers started its actual operations in India in the summer of 1888, when crates full of
Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were
shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving
Consumer Goods (FMCG)
Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its
products are available in over 6.4 million outlets in the country. As per Nielsen market research
data, two out of three Indians use HUL products.
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Brands
HUL is the market leader in Indian consumer products with presence in over 20 consumer
categories such as soaps, tea, detergents and shampoos amongst others with over 700 million
Indian consumers using its products. Eighteen of HUL‘s brands featured in
the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2012).
The company has a distribution channel of 6.3 million outlets and owns 35 major Indian
brands. Its brands include:
Food brands:
Annapurna salt and atta
Bru coffee
Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea
Kissan squashes, ketchups, juices and jams
Lipton tea
Knorr soups & meal makers and soupy noodles
Kwality Wall's frozen dessert
Modern Bread, ready to eat chapattis and other bakery items
Homecare Brands
Active Wheel detergent
Cif Cream Cleaner
Comfort fabric softeners
Domex disinfectant/toilet cleaner
Rin detergents and bleach
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Sunlight detergent and colour care
Surf Excel detergent and gentle wash
Vim dish wash
Magic – Water Saver
Personal Care Brands:
Aviance Beauty Solutions
Axe deodorant and after shaving lotion and soap
LEVER Ayush Therapy ayurvedic health care and personal care products
Breeze beauty soap
Clear anti-dandruff hair products
Clinic Plus shampoo and oil
Close Up toothpaste
Dove skin cleansing & hair care range: bar, lotions, creams and anti-per spirant deodorants
Denim shaving products
Fair & Lovely skin-lightening products
Hamam
Lakme beauty products and salons
Lifebuoy soaps and hand wash range
Liril 2000 soap
Lux soap, body wash and deodorant
Pears soap
Pepsodent toothpaste
Pond's talcs and creams
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Rexona soap
Sunsilk shampoo
Sure anti-per spirant
Vaseline petroleum jelly, skin care lotions
TRESemmé
Water Purifier Brand:
Pureit Water Purifier
Leadership
HUL has produced many business leaders for corporate India, including Harish Manwani the
non-executive chairman of HUL and currently the Chief Operating Officer of Unilever. He is
also a member of Unilever Leadership Executive team (ULE), which comprises the company‘s
top management and is responsible for managing Unilever‘s profit and loss and delivering
growth across its regions, categories and functions. Nitin Paranjpe has been the Managing
Director and Chief Executive Officer of the company since April 2008. He is also Executive
Vice President, South Asia, and Unilever and is also the executive head of the South Asia
cluster for Unilever.
HUL's leadership-building potential was recognized when it was ranked 4th in
the Hewitt Global Leadership Survey 2007 with only GE, P&G and Nokia ranking ahead of
HUL in the ability to produce leaders with such regularity A study conducted by Aon Hewitt,
The RBL Group and Fortune in 2011, ranked the company number six in the list of ‗Top
Companies for Leaders 2011 Study Results‘ The company was awarded the CII- Prize for
Leadership in HR Excellence at the 2nd CII National HR Conclave 2011 held on October 2011.
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Awards and Recognition
As per the latest Nielsen Campus Track-Business School Survey released in February 2013,
Hindustan Unilever Limited has emerged as the No.1 employer of choice for B-School students
who will graduate in 2013, across functions. HUL also retained the 'Dream Employer' status for
the 4th year running and continues to be the top company considered for application by B-
School student in India. In 2012, HUL was recognized as one of the world's most innovative
companies by Forbes. With a ranking of number 6, it was the highest ranked FMCG Company
Hindustan Unilever Limited (HUL) won the first prize at FICCI Water Awards 2012 under the
category of ‗community initiatives by industry‘ for Gundar Basin Project, a water conservation
initiative. Hindustan Unilever Limited won 13 awards at the Emvies 2012 Media Awards
organized by the Advertising Club Bombay in September 2012. The company bagged four
awards at the Spikes Asia Awards 2012, held in September. The awards included one Grand
Prix one Gold Award and two Silver Awards. HUL‘s Chhindwara Unit won the National Safety
Award for outstanding performance in Industrial Safety. These awards were instituted by the
Union Ministry of Labour and Employment in 1965. HUL was one of the eight Indian
companies to be featured on the Forbes list of World‘s Most Reputed companies in 2007.
In July, 2012 Hindustan Unilever Limited won the Golden Peacock Occupational Health and
Safety Award for 2012 in the FMCG category for its safety and health initiatives and
continuous improvement on key metrics Pond‘s Talcum Powder‘s packaging innovation has
bagged a Silver Award at the prestigious 24th DuPont Global Packaging Award, in May
2012.The brand was recognized for cost and waste reduction.
In May 2012, HUL & Star Bazaar bagged the silver award for ‗Creating Consumer Value
through Joint Promotional and Event Forecasting‘ at the 13th ECR Efficient Consumer
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Response Asia Pacific Conference. In 2011, HUL was named the most innovative company in
India by Forbes and ranked 6th in the top 10 list of most innovative companies in the world.
Hindustan Unilever Ltd received the National Award for Excellence in Corporate Governance
2011 of the Institute of Company Secretaries of India (ICSI) for excellence in corporate
governance in 2012; Hindustan Unilever emerged as the No. 1 employer of choice for B-
School students who will graduate in 2012. In addition, HUL also retained the 'Dream
Employer' status for the 3rd year running Hindustan Unilever ranked No. 2 in Fortune India's
Most Admired Companies list, which was released by Fortune India in partnership with the Hay
Group. The company received the highest scores for endurance and financial soundness
HUL was ranked 39th in The Brand Trust Report (2011) published by Trust Research
Advisory. Seven HUL brands also featured in the list: Lux, Pond‘s, Dove, Lakme, Axe, Sunsilk
and Pepsodent. HUL emerged as the top ‗Dream Employer‘ as well as the top company
considered for application in the annual B-School Survey conducted by Nielsen in November
2010. This was the second successive year that HUL has been rated as the top ‗Dream
Employer‘ in India. HUL has also emerged as the top employer of choice among the top
six Indian Institutes of Management (IIM C, A, B, L, K and I). HUL won three awards at the
'CNBC Awaaz Storyboard Consumer Awards‘ in 2011 - Most Recommended FMCG Company
of the Year; Most Consumer Conscious Company of the Year and Digital Marketer of the Year.
The company was felicitated in April 2010 for receiving the highest number of patents in the
year 2009 at Annual Intellectual Property Awards 2010.
In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25
years by Businessworld, one of India‘s leading business magazines. The rating was based on
a compilation of the magazine's annual survey of India‘s most reputed companies over the
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past 25 years. HUL is one of the country's largest exporters; it has been recognized as a
Golden Super Star Trading House by the Government of India.
Research facilities
The Hindustan Unilever Research Centre (HURC) was set up in 1967 in Mumbai, and Unilever
Research India in Bangalore in 1997. Staff at these centres developed many innovations in
products and manufacturing processes. In 2006, the company's research facilities were
brought together at a single site in Bangalore.
Sustainable Living
Unilever launched Sustainable Living Plan in on November 15, 2010
at London, Rotterdam, New York and New Delhi simultaneously The Unilever Sustainable
Living Plan has three major goals, which Unilever aims to achieve by 2020:
Help more than one billion people improve their health and well-being
Halve the environmental impact of their products
Source 100% of their agricultural raw materials sustainably
The plan also sets out over 50 social, economic and environmental targets.
In 2012 Hindustan Unilever featured in BSE's Greenex - India's first environmental friendly
equity index the first environmental friendly equity index, which will enable investors take more
informed decisions in the green theme of India]
Water
The company has reduced water usage in manufacturing operations by 10.1% when
compared with 2010 and by 21.5% compared to 2008 baseline. Rainwater harvesting has
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been implemented in more than 50% of units. More than 75% of the company‘s manufacturing
sites are zero discharge.
HUL has also been working for more than a decade in the area of water conservation in
locations which face acute water shortage. By 2015, the Company expects hundred billion
liters of water to be harvested through the projects they have undertaken. One million people
in 180 villages across India will benefit. Most projects are expected to see a 50% rise in crop
production.
India Water Body
In May 2011, the company launched the India Water Body, an initiative aimed to address the
challenge of water scarcity in India. HUL has been working in the area of water conversation
for more than a decade and has initiated projects in several states across India with the aim to
create capacity towards conserving more than 50 billion liters of water in the next four years
(by 2015).Water conservation has been a focus area for the company across its value chain.
The company has not only reduced water consumption in its operations but also developed
product innovations such as Surf Excel quick-wash that helps consumers use less water while
washing clothes.
Plastic Recycling Project
In July 2011, HUL and Bharti Retail started a three month campaign called ―Go Recycle‖ to
promote plastic recycling among consumers in the National Capital Region (NCR) in 2011.
Consumers were encouraged to bring empty plastic bottles and pouches, for which they were
given discount coupons in return.
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Creating financial inclusion
The company joined forces with the State Bank of India (SBI) to introduce banking services to
people from low-income groups in rural areas.] The project was piloted in the states of
Maharashtra and Karnataka.
HUL also renders services to the community, focusing on health & hygiene education,
empowerment of women, and water management. It is also involved in education and
rehabilitation of underprivileged children, care for the destitute and HIV-positive, and rural
development. HUL has also responded to national calamities, for instance with relief and
rehabilitation after the 2004 tsunami caused devastation in South India.
Health and Hygiene
Lifebuoy took hand washing messages to remote areas, reaching out to 30million people
directly in 2010–11 through HUL's rural outreach programme, Khushiyon Ki Doli‘ (Caravan of
Happiness). The Company entered into a partnership with UNICEF and Department of Rural
Development, Government of Madhya Pradesh, to implement hygiene awareness
programmers in over 5,000schools in 2012. This will further strengthen the Lifebuoy hand
wash programme in India and contribute to the global target of reaching one billion consumers
by 2015 across Asia, Africa and Latin America.
As many as 30 million people in India have gained access to safe drinking water from Pureit,
in-home purifier which provides water ‗as safe as boiled water‘, without needing electricity, or
running water. Pureit is affordable – with an upfront cost starting at Rs. 900, and an ongoing
cost that provides approximately four liters of safe drinking water for about one rupee. Globally,
Unilever aims to reach 500 million people through Pureit by 2020
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Nutrition
The company‘s food and beverage brand labels carry information on energy, protein
carbohydrate, sugars, fat, and where relevant, on saturated fat, fiber and sodium. HUL also
participates in ‗The Choices Programme.‘ It is a front-of-pack labeling programme aimed to
help consumers make a healthier choice. Around 60% of our major food and beverage brands
comply with the guidelines as against the global target of 100% by 2015.
Greenhouse Gases
The Company is on track to meet the global 2012 target, which is to reformulate the products
to reduce GHG emissions by 15%. The process of reformulating products started in 2009. A
significant reduction has been achieved with the reduction in detergent powders of Sodium Tri
Poly Phosphate, an ingredient that neutralizes the impact of water hardness.
In 2011, the Company reduced C02 emissions per tonne of production in India by 9.9%
compared to 2010 and by 14.7% compared to the 2008 baseline. This was achieved due to the
installation of biomass boilers to reduce CO2 emissions at Chiplun, Puducherry, Goa, Nasik
and Mysore factories. The biggest challenge was to deliver reduction in CO2 emissions from
transport despite significant volume increase. In 2011, the Company delivered 17.8%
improvement in CO2 efficiency in logistics over 2010.
Sustainable Sourcing
In 2011, 60% of tomatoes used in Kissan Ketchup in India were from sustainable sources. The
Company is working with a select group of tomato farmers to help reduce water usage through
drip irrigation and at the same time reduce the use of fertilizer and pesticides while improving
yields.
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More than 16% of the tea sourced from India for Unilever‘s brands was from sustainable
sources in 2011 About 800 smallholder farmers in India are growing gherkins for Unilever‘s
Amora and Maille brands using drip irrigation. Trials have produced average water saving of
40%. Unilever now aims to help up to 1,000 gherkin farmer‘s transition to drip irrigation by
2015.Unilever also focuses on helping farmers use composting to cut water use. By 2020, we
will source 100% of the raw materials sustainably.
Enhancing Livelihoods
Project Shakti, a unique initiative by the Company to build and support a network of women
entrepreneurs in small villages was strengthened in 2010-11 with the Shaktimaan initiative,
under which men from Shakti households were given a bicycle to cover a cluster of villages in
their vicinity. There are now 30,000 Shaktimaans across India.
The company‘s Kwality Wall‘s mobile vending operations provide entrepreneurship
opportunities to over 6,500 migrant laborers across India.
Marketing Initiatives
Khushiyon Ki Doli
The company launched a multi-brand rural marketing initiative called Khushiyon Ki Doli in 2010
in three states – Uttar Pradesh, Andhra Pradesh and Maharashtra. Through this initiative more
than 10 million consumers were contacted directly in more than 28,000 villages across these
three states. Through this initiative, the company also reached out to 170,000 retailers in these
villages. Through this initiative HUL engaged with 25 million rural consumers in media dark
areas in 2011.
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In 2011, HUL extended this initiative to cover five states – West Bengal, Bihar, Maharashtra,
Andhra Pradesh and Uttar Pradesh, covering over fifty thousand villages across these five
states.
In 2012, Khushiyon Ki Doli has been extended to Karnataka to cover a total of six States:
Maharashtra, UP, Bihar, West Bengal, Andhra Pradesh and Karnataka. The initiative aims to
cover over Fifty five thousand villages in 2012.
Various personal care and home care brands of HUL have participated in this initiative
including: Wheel, Surf Excel, FAL, Sunsilk, Vim, Lifebuoy and Close-up.
The module follows a three-step process, starting with awareness, moving on to consumer
engagement and finally retail contact. The first step of spreading awareness is achieved
through a team of promoters who head to each village and invite the villages to what is known
as ‗Mohall as‘ to make them aware of the company and its products. In every village, there are
about 4-5 teams that conduct these events in local language for small focused groups so that it
allows for greater engagement and involvement for the consumers. During this activity, brands
are introduced with the help of TVCs that are played continuously. And the promoters by way
of ‗live‘ demonstrations bring alive the hygiene benefits of using such brands and improving the
quality of daily life. To increase the ‗fun‘ element and enhance involvement, promoters also
conduct simple quizzes and games around the brands and daily hygiene habits. As part of this
activation, the company offers schemes both for the participating consumers and also local
retailers for generating trial among consumers as well enhancing availability at retail. Post the
‗mohalla‘ activity, the promotes go home to home and conduct consumer home visits to
generate trial where they offer attractive promotions to the consumers Similarly, there is
another team which visits all the shops in the village which ensures improved availability and
visibility of HUL brands. Technology has been used to highlight the benefits of HUL‘s brands in
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a simple and engaging manner. At the same time, traditional symbols have also been used to
create more acceptances. For example, the brand films and hygiene messages are shown to
the consumers through the use of Palki
Lessons in Marketing Excellence
The company tied up with CNBC TV18 in 2009 to launch a television show titled, ‗Lessons in
Marketing Excellence‘, a marketing case-study competition for management students in India.
Some of the participating institutes include: IIM Calcutta, IIM Ahmadabad, IIM Bangalore, IIM
Lucknow, Faculty of Management Studies, University of Delhi, IIM Indore, XLRI,Symbiosis
Center for Management and Human Resource Development, Jamnalal Bajaj Institute of
Management Studies, SP Jain Institute of Management and Research and National Institute of
Industrial Engineering.
The show has completed three seasons and the fourth season will be on air
soon. http://www.limeonline.in/about_the_show.asp
Perfect Stores
The ‗Perfect Stores‘ initiative was launched by HUL in May 2010 with the aim to improve the
availability and visibility of its products in retail stores across the country In May 2010, four
thousand HUL employees from across functions launched the initiative through ‗Project
Bushfire‘ and created 16,000 ‗Perfect Stores‘ in 130 towns in India in a span of 6 days. The
employees not only laid out various products on the stores‘ shelves but also dusted them,
thereby transforming the whole look of the stores. The company is constantly increasing the
number of stores it covers under the Perfect Stores programme. Technology has played a key
role in this initiative. The company‘s salesmen have been provided with a hand held terminal
called iQ, which gives customized recommendations for each store – which products to sell,
when to sell them and in what quantity. The salesman just has to sync the IQ device when
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visiting the distributor and download data from the centre to retrieve information on the market.
To strengthen this initiative, HUL launched POPeye - an initiative that puts the power of IQ in
the hands of the employees. When an HUL employee visits an outlet and finds the company‘s
product out of stock, he can log stock calls either by logging on to the POPeye site, or report
the information by phone or email.
Headquarters
Hindustan Unilever‘s corporate headquarters is located at Andheri (E), Mumbai. The campus is
spread over 12.5 acres of land and houses over 1600 employees. Some of the facilities
available for the employees include a convenience store, a food court, an occupational health
centre, a gym, sports & recreation centre and a day care centre.
The campus uses green and energy efficient building features such as rainwater harvesting,
optimal use of glass and use of ‗zero-waste‘ water recycling concepts.
The campus received a certification from LEED(Leadership in Energy and Environmental
Design Gold in ‗New Construction‘ category, by Indian Green Building Council (IGBC),
Hyderabad, under license from the United States Green Building Council (USGBC)
The company‘s previous headquarters was located at Back Bay Reclamation, Mumbai at the
Lever House, where it was housed for over 46 years
Direct Selling Division
HUL also runs Hindustan Unilever Network (HULN), a direct selling business arm. Under
HULN, health products are marketed by Ayush Therapy in collaboration with Arya Vaidya
Pharmacy, Coimbatore; beauty products by Aviance; home products by Lever Home; and male
grooming by D.I.Y. There are also premium products for beauty salons and others.
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Controversy
Mercury pollution
In 2001 a thermometer factory in Kodaikanal run by Hindustan Unilever was accused of
dumping glass contaminated with mercury in municipal dumps, or selling it on to scrap
merchants unable to deal with it appropriately.
Skin lightening creams
Hindustan Unilever's "Fair and Lovely" is the leading skin-lightening cream for women in
India. The company was forced to withdraw television advertisements for the product in 2007.
Advertisements depicted depressed, dark-complexioned women, who had been ignored by
employers and men, suddenly finding new boyfriends and glamorous careers after the cream
had lightened their skin In 2008 Hindustan Unilever made former Miss World Priyanka
Chopra a brand ambassador for Pond's and she then appeared in a mini-series of television
commercials for another skin lightening product, White Beauty, alongside Saif Ali
Khan and Neha Dhupia; these advertisements, showing Priyanka's face with a clearly darker
complexion against the visibly fairer Neha Dhupia, were widely criticized for perpetuating
racism.
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Introduction to Advertisement
Advertising
The word ‗Advertising‟ has its origin from a Latin word ‗Adventure‘ which means to turn to.
The dictionary meaning of the word is ‗to announce publicity or to give public concerned to a
specific thing which has been announced by the advertiser publicity in order to inform and
influence them with the ideas which the advertisement carries. In business world the terms in
mainly used with reference to selling the product of the concern.
The advertising, as Jones defines it is "a sort of machine made mass production method of
selling which supplements the voice and personality of the individual salesman, such as
manufacturing the machine supplements the hands of the craftsman." It is thus a process of
buying/sponsor/identified media space or time in order to promote a product or an idea. From a
careful scrutiny of the above definition, the following points emerge.
Advertising is a paid form and hence commercial in nature. This any sponsored
communication designed to influence buyer behaviour advertising. Advertising is non-personal.
Unlike personal selling, advertising is done in a non-personal manner through intermediaries or
media whatever the form of advertisement (Spoken, written or visual). It is directed at a mass
audience and not directed at the individual as in personal selling.
Advertising promotes idea, goods and services. Although most advertising is designed to help
sell goods, it is being used increasingly to further public interest goals.
Advertising is identifiable with its sponsoring authority and advertiser. It discloses or identifies
the source of opinions and ideas.
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Advertising thus is:
1. Impersonal
2. A communication of ideas.
3. Aimed at mass audience
4. by a paying sponsor.
The two forms of mass communication that are something confused with advertising are
publicity and propaganda. If we eliminate the elements of the "paying sponsor" (The paid
requirement) we would have the element of publicity left. For publicity in technically speaking,
is advertisement without payment. In a similar manner if, we eliminate the requirement of an
"identified sponsor", the resulting communication is propagandistic.
It is important for us to emphasize that advertising may involve the communication of ideas or
goods of service. We are all aware that advertising attempts to sell goods and services. But we
may overlook the more important fact that it often sells ideas. Advertising may persuade with
information; it may persuade with emotion: more frequently, it endeavors to persuade with
some mixture of both.
Advertising is a form of communication intended to persuade an audience (viewers, readers or
listeners) to take some action. It includes the name of a product or service and how that
product or service could benefit the consumer, to persuade potential customers to purchase or
to consume that particular brand. Modern advertising developed with the rise of mass
production in the late 19th and early 20th centuries.
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Commercial advertisers often seek to generate
increased consumption of their products or services
through branding, which involves the repetition of an
image or product name in an effort to associate related
qualities with the brand in the minds of consumers.
Different types of media can be used to deliver these
messages, including traditional media such as
newspapers, magazines, television, radio, outdoor or
direct mail; or new media such as websites and text
messages. Advertising may be placed by an advertising
agency on behalf of a company or other organization.
Non-commercial advertisers that spend money to advertise items other than a consumer
product or service include political parties, interest groups, religious organizations and
governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such
as a public service announcement.
In 2007, spending on advertising was estimated at more than $150 billion in the United States
and $385 billion worldwide.
A recent advertising innovation is "guerrilla marketing", which involve 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. Guerrilla advertising is becoming increasing more
popular with a lot of companies. This type of advertising is unpredictable and innovative, which
causes consumers to buy the product or idea. This reflects an increasing trend of interactive
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and "embedded" ads, such as via product placement, having consumers vote through text
messages, and various innovations utilizing social network services such as MySpace.
Public service advertising
The same advertising techniques used to promote commercial goods and services can be
used to inform, educate and motivate the public about non-commercial issues, such as
HIV/AIDS, political ideology, energy conservation and deforestation.
Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching
and motivating large audiences. "Advertising justifies its existence when used in the public
interest—it is much too powerful a tool to use solely for commercial purposes." Attributed to
Howard Goss age by David Ogilvy.
Public service advertising, non-commercial advertising, public interest advertising, cause
marketing, and social marketing are different terms for (or aspects of) the use of sophisticated
advertising and marketing communications techniques (generally associated with commercial
enterprise) on behalf of non-commercial, public interest issues and initiatives. In the United
States, the granting of television and radio licenses by the FCC is contingent upon the station
broadcasting a certain amount of public service advertising. To meet these requirements,
many broadcast stations in America air the bulk of their required public service
announcements during the late night or early morning when the smallest percentage of
viewers are watching, leaving more day and prime time commercial slots available for high-
paying advertisers.
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MEDIA OF ADVERTISEMENT
Paying people to hold signs is one of the oldest forms of advertising, as with this
Human directional pictured above
A bus with an advertisement for GAP in Singapore. Buses and other vehicles are
popular mediums for advertisers.
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A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station
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
popup, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers,
sides of buses, banners attached to or sides of airplanes ("logo jets"), 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 place an "identified" sponsor pays to deliver their
message through a medium is advertising.
Television
The TV commercial is generally considered the most effective mass-market advertising format,
as is reflected by the high prices TV networks charge for commercial airtime during popular TV
events. The annual Super Bowl football game in the United States is known as the most
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prominent advertising event on television. The average cost of a single thirty-second TV spot
during this game has reached US$3 million (as of 2009).
The majorities of television commercials feature a song or jingle that listeners soon relate to
the product.
Virtual advertisements may be inserted into regular television programming through computer
graphics. It is typically inserted into otherwise blank backdrops or used to replace local
billboards that are not relevant to the remote broadcast audience. 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.
Infomercials
An infomercial is a long-format television commercial, typically five minutes or longer. The
word "infomercial" is a portmanteau of the words "information" & "commercial". The main
objective in an infomercial is to create an impulse purchase, so that the consumer 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 consumers and industry professionals.
Radio advertising
Radio advertising is a form of advertising via the medium of radio.
Radio advertisements are broadcasted 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
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exchange for airing the commercials. While radio has the obvious limitation of being restricted
to sound, proponents of radio advertising often cite this as an advantage.
Press advertising
Press 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. A form of press advertising is
classified advertising, which allows private individuals or companies to purchase a small,
narrowly targeted ad for a low fee advertising a product or service.
Online advertising
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. Examples of online
advertising include contextual ads that appear on search engine results pages, banner ads, in
text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising
networks and e-mail marketing, including e-mail spam.
Billboard advertising
Billboards 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 amounts of viewers, such as on mass transit vehicles and in stations, in shopping
malls or office buildings, and in stadiums.
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Mobile billboard advertising
The Redeye newspaper advertised to its target market at North Avenue Beach with a
sailboat billboard on Lake Michigan.
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
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Sporting events
Store openings and similar promotional events
Big advertisements from smaller companies
Others
In-store advertising
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, eye-catching displays promoting a specific product, and advertisements in
such places as shopping carts and in-store video displays.
Covert advertising
Covert advertising, also known as guerrilla 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 Anderson owns a phone with the Nokia logo clearly written in the top corner, or
his watch engraved with the Bulgaria 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 Space balls 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
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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.
Celebrities
This type of advertising focuses upon using celebrity power, fame, money, popularity to gain
recognition for their products and 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.
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 consumer's usage of the Internet for news and
music as well as devices like digital video recorders (DVRs) such as TiVo.
Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising
space are dependent on the "relevance" of the surrounding web content and the traffic that the
website receives.
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Digital signage is poised to become a major mass media because of its ability to reach larger
audiences for less money. Digital signage also offers the unique ability to see the target
audience where they are reached by the medium. Technology advances has also made it
possible to control the message on digital signage with much precision, enabling the
messages to be relevant to the target audience at any given time and location which in turn,
gets more response from the advertising. Digital signage is being successfully employed in
supermarkets. Another successful use of digital signage is in hospitality locations such as
restaurants. And malls.
E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known
as "e-mail spam". Spam has been a problem for email users for many years.
Some companies have proposed placing messages or corporate logos on the side of booster
rockets and the International Space Station. Controversy exists on the effectiveness of
subliminal advertising (see mind control), and the pervasiveness of mass messages (see
propaganda).
Unpaid advertising (also called "publicity advertising"), can provide good exposure at minimal
cost. 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, "Nintendo" (often
used by those exposed to many video games) = video games, and "Band-Aid" = adhesive
bandage) — these can be seen as the pinnacle of any advertising campaign. However, some
companies 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 generalized trademark - turning it into a
generic term which means that its legal protection as a trademark is lost.
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As the mobile phone became a new mass media in 1998 when the first paid downloadable
content appeared on mobile phones in Finland, it was only a matter of time until mobile
advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile
advertising had reached $2.2 billion and providers such as Ad mob delivered billions of mobile
ads.
More advanced mobile ads include banner ads, coupons, Multimedia Messaging Service
picture and video messages, averages 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.
A new form of advertising that is growing rapidly is social network advertising. It is online
advertising with a focus on social networking sites. This is a relatively immature market, but it
has shown a lot of promises as advertisers are able to take advantage of the demographic
information the user has provided to the social networking site. Friendertising is a more precise
advertising term in which people are able to direct advertisements toward others directly using
social network service.
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, Cover Girl, and recently Toyota.
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Criticism of advertising
While advertising can be seen as necessary for economic growth, it is not without social costs.
Unsolicited Commercial Email 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.[19] Advertising is increasingly invading public spaces, such as
schools, which some critics argue is a form of child exploitation.[20] In addition, advertising
frequently uses psychological pressure (for example, appealing to feelings of inadequacy) on
the intended consumer, which may be harmful.
Hyper-commercialism and the commercial tidal wave
Criticism of advertising is closely linked with criticism of media and often interchangeable. They
can refer to its audio-visual aspects (e. g. cluttering of public spaces and airwaves),
environmental aspects (e. g. pollution, oversize packaging, increasing consumption), political
aspects (e. g. media dependency, free speech, censorship), financial aspects (costs),
ethical/moral/social aspects (e. g. sub-conscious influencing, invasion of privacy, increasing
consumption and waste, target groups, certain products, honesty) and, of course, a mix
thereof. Some aspects can be subdivided further and some can cover more than one category.
As advertising has become increasingly prevalent in modern Western societies, it is also
increasingly being criticized. A person can hardly move in the public sphere or use a medium
without being subject to advertising. Advertising occupies public space and more and more
invades the private sphere of people, many of which consider it a nuisance. ―It is becoming
harder to escape from advertising and the media. … Public space is increasingly turning into a
gigantic billboard for products of all kind. The aesthetical and political consequences cannot
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yet be foreseen.‖ Hanno Rauterberg in the German newspaper ‗Die Zeit‘ calls advertising a
new kind of dictatorship that cannot be escaped.
Ad creep: "There are ads in schools, airport lounges, doctors‘ offices, movie theaters,
hospitals, gas stations, elevators, convenience stores, on the Internet, on fruit, on ATMs, on
garbage cans and countless other places. There are ads on beach sand and restroom walls.‖.
―One of the ironies of advertising in our times is that as commercialism increases, it makes it
that much more difficult for any particular advertiser to succeed, hence pushing the advertiser
to even greater efforts.‖ Within a decade advertising in radios climbed to nearly 18 or 19
minutes per hour; on prime-time television the standard until 1982 was no more than 9.5
minutes of advertising per hour, today it‘s between 14 and 17 minutes. With the introduction of
the shorter 15-second-spot the total amount of ads increased even more dramatically. Ads are
not only placed in breaks but e. g. also into baseball telecasts during the game itself. They
flood the internet, a market growing in leaps and bounds.
Other growing markets are ‗‘product placements‘‘ in entertainment programming and in movies
where it has become standard practice and ‗‘virtual advertising‘‘ where products get placed
retroactively into rerun shows. Product billboards are virtually inserted into Major League
Baseball broadcasts and in the same manner, virtual street banners or logos are projected on
an entry canopy or sidewalks, for example during the arrival of celebrities at the 2001 Grammy
Awards. Advertising precedes the showing of films at cinemas including lavish ‗film shorts‘
produced by companies such as Microsoft or DaimlerChrysler. ―The largest advertising
agencies have begun working aggressively to co-produce programming in conjunction with the
largest media firms‖ creating Infomercials resembling entertainment programming.
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Opponents equate the growing amount of advertising with a ―tidal wave‖ and restrictions with
―damming‖ the flood. Kalle Lasn, one of the most outspoken critics of advertising on the
international stage, considers advertising ―the most prevalent and toxic of the mental
pollutants. From the moment your radio alarm sounds in the morning to the wee hours of late-
night TV micro jolts of commercial pollution flood into your brain at the rate of around 3,000
marketing messages per day. Every day an estimated twelve billion display ads, 3 million radio
commercials and more than 200,000 television commercials are dumped into North America‘s
collective unconscious In the course of his life the average American watches three years of
advertising on television.
More recent developments are video games incorporating products into their content, special
commercial patient channels in hospitals and public figures sporting temporary tattoos. A
method unrecognizable as advertising is so-called ‗‘guerrilla marketing‘‘ which is spreading
‗buzz‘ about a new product in target audiences. Cash-strapped U.S. cities do not shrink back
from offering police cars for advertising. A trend, especially in Germany, is companies buying
the names of sports stadiums. The Hamburg soccer Volkspark stadium first became the AOL
Arena and then the HSH Nordbank Arena. The Stuttgart Neckarstadion became the Mercedes-
Benz Arena; the Dortmund Westfalenstadion now is the Signal Iduna Park. The former Sky
Dome in Toronto was renamed Rogers Centre. Other recent developments are, for example,
that whole subway stations in Berlin are redesigned into product halls and exclusively leased
to a company. Düsseldorf even has ‗multi-sensorial‘ adventure transit stops equipped with
loudspeakers and systems that spread the smell of a detergent. Swatch used beamers to
project messages on the Berlin TV-tower and Victory column, which was fined because it was
done without a permit. The illegality was part of the scheme and added promotion. It‘s
standard business management knowledge that advertising is a pillar, if not ―the‖ pillar of the
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growth-orientated free capitalist economy. ―Advertising is part of the bone marrow of corporate
capitalism.‖
―Contemporary capitalism could not function and global production networks could not exist as
they do without advertising.‖
For communication scientist and media economist Manfred Knoche at the University of
Salzburg, Austria, advertising isn‘t just simply a ‗necessary evil‘ but a ‗necessary elixir of life‘
for the media business, the economy and capitalism as a whole. Advertising and mass media
economic interests create ideology. Knoche describes advertising for products and brands as
‗the producer‘s weapons in the competition for customers‘ and trade advertising, e. g. by the
automotive industry, as a means to collectively represent their interests against other groups,
such as the train companies. In his view editorial articles and programmes in the media,
promoting consumption in general, provide a ‗cost free‘ service to producers and sponsoring
for a ‗much used means of payment‘ in advertising. Christopher Lasch argues that advertising
leads to an overall increase in consumption in society; "Advertising serves not so much to
advertise products as to promote consumption as a way of life."
Advertising and constitutional rights
Advertising is equated with constitutionally guaranteed freedom of opinion and speech.
Therefore criticizing advertising or any attempt to restrict or ban advertising is almost always
considered to be an attack on fundamental rights (First Amendment in the US) and meets the
combined and concentrated resistance of the business and especially the advertising
community. ―Currently or in the near future, any number of cases are and will be working their
way through the court system that would seek to prohibit any government regulation of ...
commercial speech (e.g. advertising or food labeling) on the grounds that such regulation
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would violate citizens‘ and corporations‘ First Amendment rights to free speech or free press.‖
An example for this debate is advertising for tobacco or alcohol but also advertising by mail or
fliers (clogged mail boxes), advertising on the phone, in the internet and advertising for
children. Various legal restrictions concerning spamming, advertising on mobile phones,
addressing children, tobacco, alcohol have been introduced by the US, the EU and various
other countries. Not only has the business community resisted restrictions of advertising.
Advertising as a means of free expression has firmly established itself in western society
.Machesney argues, that the government deserves constant vigilance when it comes to such
regulations, but that it is certainly not ―the only antidemocratic force in our society.
...corporations and the wealthy enjoy a power every bit as immense as that enjoyed by the
lords and royalty of feudal times‖ and ―markets are not value-free or neutral; they not only tend
to work to the advantage of those with the most money, but they also by their very nature
emphasize profit over all else….Hence, today the debate is over whether advertising or food
labeling, or campaign contributions are speech...if the rights to be protected by the First
Amendment can only be effectively employed by a fraction of the citizenry, and their exercise
of these rights gives them undue political power and undermines the ability of the balance of
the citizenry to exercise the same rights and/or constitutional rights, then it is not necessarily
legitimately protected by the First Amendment.‖ In addition, ―those with the capacity to engage
in free press are in a position to determine who can speak to the great mass of citizens and
who cannot‖. Critics in turn argue that advertising invades privacy which is a constitutional
right. For, on the one hand, advertising physically invades privacy, on the other; it increasingly
uses relevant, information-based communication with private data assembled without the
knowledge or consent of consumers or target groups.
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For Georg Franck at Vienna University of Technology advertising is part of what he calls
―mental capitalism‖, taking up a term (mental) which has been used by groups concerned with
the mental environment, such as Adbusters. Franck blends the ―Economy of Attention‖ with
Christopher Lasch‘s culture of narcissm into the mental capitalism: In his essay „Advertising at
the Edge of the Apocalypse―, Sut Jhally writes: ―20. Century advertising is the most powerful
and sustained system of propaganda in human history and its cumulative cultural effects,
unless quickly checked, will be responsible for destroying the world as we know it.
The price of attention and hidden costs
Advertising has developed into a billion-dollar business on which many depend. In 2006 391
billion US dollars were spent worldwide for advertising. In Germany, for example, the
advertising industry contributes 1.5% of the gross national income; the figures for other
developed countries are similar. Thus, advertising and growth are directly and causally linked.
As far as a growth based economy can be blamed for the harmful human lifestyle (affluent
society) advertising has to be considered in this aspect concerning its negative impact,
because its main purpose is to raise consumption. ―The industry is accused of being one of the
engines powering a convoluted economic mass production system which promotes
consumption.‖
Attention and attentiveness has become a new commodity for which a market developed. ―The
amount of attention that is absorbed by the media and redistributed in the competition for
quotas and reach is not identical with the amount of attention that is available in society. The
total amount circulating in society is made up of the attention exchanged among the people
themselves and the attention given to media information. Only the latter is homogenized by
quantitative measuring and only the latter takes on the character of an anonymous currency.‖
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According to Franck, any surface of presentation that can guarantee a certain degree of
attentiveness works as magnet for attention, e. g. media which are actually meant for
information and entertainment, culture and the arts, public space etc. It is this attraction which
is sold to the advertising business. The German Advertising Association stated that in 2007
30.78 billion Euros were spent on advertising in Germany, 26% in newspapers, 21% on
television, 15% by mail and 15% in magazines. In 2002 there were 360.000 people employed
in the advertising business. The internet revenues for advertising doubled to almost 1 billion
Euros from 2006 to 2007, giving it the highest growth rates.
Spiegel-Online reported that in the US in 2008 for the first time more money was spent for
advertising on internet (105.3 billion US dollars) than on television (98.5 billion US dollars). The
largest amount in 2008 was still spent in the print media (147 billion US dollars). For that same
year, Welt-Online reported that the US pharmaceutical industry spent almost double the
amount on advertising (57.7 billion dollars) than it did on research (31.5 billion dollars). But
Marc-André Gagnon und Joel Leaching of York University, Toronto, estimate that the actual
expenses for advertising are higher yet, because not all entries are recorded by the research
institutions. Not included are indirect advertising campaigns such as sales, rebates and price
reductions. Few consumers are aware of the fact that they are the ones paying for every cent
spent for public relations, advertisements, rebates, packaging etc. since they ordinarily get
included in the price calculation.
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Influencing and conditioning
Advertising for McDonald's on the via di Propaganda, Rome, Italy
The most important element of advertising is not information but suggestion more or less
making use of associations, emotions (appeal to emotion) and drives dormant in the sub-
conscience of people, such as sex drive, herd instinct, of desires, such as happiness, health,
fitness, appearance, self-esteem, reputation, belonging, social status, identity, adventure,
distraction, reward, of fears (appeal to fear), such as illness, weaknesses, loneliness, need,
uncertainty, security or of prejudices, learned opinions and comforts. ―All human needs,
relationships, and fears – the deepest recesses of the human psyche – become mere means
for the expansion of the commodity universe under the force of modern marketing. With the
rise to prominence of modern marketing, commercialism – the translation of human relations
into commodity relations – although a phenomenon intrinsic to capitalism, has expanded
exponentially.‖Cause-related marketing‘ in which advertisers link their product to some worthy
social cause has boomed over the past decade.
Advertising exploits the model role of celebrities or popular figures and makes deliberate use
of humor as well as of associations with colour, tunes, certain names and terms. Altogether,
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these are factors of how one perceives himself and one‘s self-worth. In his description of
‗mental capitalism‘ Franck says, ―The promise of consumption making someone irresistible is
the ideal way of objects and symbols into a person‘s subjective experience. Evidently, in a
society in which revenue of attention moves to the fore, consumption is drawn by one‘s self-
esteem. As a result, consumption becomes ‗work‘ on a person‘s attraction. From the subjective
point of view, this ‗work‘ opens fields of unexpected dimensions for advertising. Advertising
takes on the role of a life councilor in matters of attraction. (…) The cult around one‘s own
attraction is what Christopher Lasch described as ‗Culture of Narcissism‘.‖
For advertising critics another serious problem is that ―the long standing notion of separation
between advertising and editorial/creative sides of media is rapidly crumbling‖ and advertising
is increasingly hard to tell apart from news, information or entertainment. The boundaries
between advertising and programming are becoming blurred. According to the media firms all
this commercial involvement has no influence over actual media content, but, as Machesney
puts it, ―this claim fails to pass even the most basic giggle test, it is so preposterous.‖
Advertising draws ―heavily on psychological theories about how to create subjects, enabling
advertising and marketing to take on a ‗more clearly psychological tinge‘ (Miller and Rose,
1997, cited in Thrift, 1999, p. 67). Increasingly, the emphasis in advertising has switched from
providing ‗factual‘ information to the symbolic connotations of commodities, since the crucial
cultural premise of advertising is that the material object being sold is never in itself enough.
Even those commodities providing for the most mundane necessities of daily life must be
imbued with symbolic qualities and culturally endowed meanings via the ‗magic system
(Williams, 1980) of advertising. In this way and by altering the context in which advertisements
appear, things ‗can be made to mean "just about anything"‘ (McFall, 2002, p.162) and the
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‗same‘ things can be endowed with different intended meanings for different individuals and
groups of people, thereby offering mass produced visions of individualism.‖
Before advertising is done, market research institutions need to know and describe the target
group to exactly plan and implement the advertising campaign and to achieve the best
possible results. A whole array of sciences directly deals with advertising and marketing or is
used to improve its effects. Focus groups, psychologists and cultural anthropologists are ‗‘‘de
rigueur‘‘‘ in marketing research‖. Vast amounts of data on persons and their shopping habits
are collected, accumulated, aggregated and analyzed with the aid of credit cards, bonus cards,
raffles and internet surveying. With increasing accuracy this supplies a picture of behaviour,
wishes and weaknesses of certain sections of a population with which advertisement can be
employed more selectively and effectively. The efficiency of advertising is improved through
advertising research. Universities, of course supported by business and in co-operation with
other disciplines (s. above), mainly Psychiatry, Anthropology, Neurology and behavioral
sciences, are constantly in search for ever more refined, sophisticated, subtle and crafty
methods to make advertising more effective. ―Neuromarketing is a controversial new field of
marketing which uses medical technologies such as functional Magnetic Resonance Imaging
(fMRI) -- not to heal, but to sell products. Advertising and marketing firms have long used the
insights and research methods of psychology in order to sell products, of course. But today
these practices are reaching epidemic levels, and with complicity on the part of the
psychological profession that exceeds that of the past. The result is an enormous advertising
and marketing onslaught that comprises, arguably, the largest single psychological project
ever undertaken. Yet, this great undertaking remains largely ignored by the American
Psychological Association.‖ Robert Machesney calls it "the greatest concerted attempt at
psychological manipulation in all of human history."
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Children and adolescents as target groups
The children‘s market, where resistance to advertising is weakest, is the ―pioneer for ad creep‖.
―Kids are among the most sophisticated observers of ads. They can sing the jingles and
identify the logos, and they often have strong feelings about products. What they generally
don't understand, however, are the issues that underlie how advertising works. Mass media
are used not only to sell goods but also ideas: how we should behave, what rules are
important, who we should respect and what we should value.‖[73] Youth is increasingly reduced
to the role of a consumer. Not only the makers of toys, sweets, ice cream, breakfast food and
sport articles prefer to aim their promotion at children and adolescents. For example, an ad for
a breakfast cereal on a channel aimed at adults will have music that is a soft ballad, whereas
on a channel aimed at children, the same ad will use a catchy rock jingle of the same song to
aim at kids. Advertising for other products preferably uses media with which they can also
reach the next generation of consumers. ―Key advertising messages exploit the emerging
independence of young people‖. Cigarettes, for example, ―are used as a fashion accessory
and appeal to young women. Other influences on young people include the linking of sporting
heroes and smoking through sports sponsorship, the use of cigarettes by popular characters in
television programmes and cigarette promotions. Research suggests that young people are
aware of the most heavily advertised cigarette brands.‖
―Product placements show up everywhere, and children aren't exempt. Far from it. The
animated film, Food fight, had ‗thousands of products and character icons from the familiar
(items) in a grocery store.‘ Children's books also feature branded items and characters, and
millions of them have snack foods as lead characters. ―Business is interested in children and
adolescents because of their buying power and because of their influence on the shopping
habits of their parents. As they are easier to influence they are especially targeted by the
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advertising business. ―The marketing industry is facing increased pressure over claimed links
between exposure to food advertising and a range of social problems, especially growing
obesity levels.‖ In 2001, children‘s programming accounted for over 20% of all US television
watching. The global market for children‘s licensed products was some 132 billion US dollars
in 2002. Advertisers target children because, e.g. in Canada, they ―represent three distinct
markets:
1. Primary Purchasers ($2.9 billion annually)
2. Future Consumers (Brand-loyal adults)
3. Purchase Influencers ($20 billion annually)
Kids will carry forward brand expectations, whether positive, negative, or indifferent. Kids are
already accustomed to being catered to as consumers. The long term prize: Loyalty of the kid
translates into a brand loyal adult customer‖
The average Canadian child sees 350,000 TV commercials before graduating from high
school, spends nearly as much time watching TV as attending classes. In 1980 the Canadian
province of Québec banned advertising for children under age 13. ―In upholding the
constitutional validity of the Quebec Consumer Protection Act restrictions on advertising to
children under age 13 (in the case of a challenge by a toy company) the Court held:
‗...advertising directed at young children is per se manipulative. Such advertising aims to
promote products by convincing those who will always believe.‘ Norway (ads directed at
children under age 12), and Sweden (television ads aimed at children under age 12) also have
legislated broad bans on advertising to children, during child programmes any kind of
advertising is forbidden in Sweden, Denmark, Austria and Flemish Belgium. In Greece there is
no advertising for kid‘s products from 7 to 22 h. An attempt to restrict advertising directed at
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children in the US failed with reference to the First Amendment. In Spain bans are also
considered undemocratic.
Opposition and campaigns against advertising
Billboard in Lund, Sweden, saying "One Night Stand?" (2005)
According to critics, the total commercialization of all fields of society, the privatization of public
space, the acceleration of consumption and waste of resources including the negative
influence on lifestyles and on the environment has not been noticed to the necessary extent.
The ―hyper-commercialization of the culture is recognized and roundly detested by the
citizenry, although the topic scarcely receives a whiff of attention in the media or political
culture‖. ―The greatest damage done by advertising is precisely that it incessantly
demonstrates the prostitution of men and women who lend their intellects, their voices, their
artistic skills to purposes in which they themselves do not believe, and …. That it helps to
shatter and ultimately destroy our most precious non-material possessions: the confidence in
the existence of meaningful purposes of human activity and respect for the integrity of man.‖
―The struggle against advertising is therefore essential if we are to overcome the pervasive
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alienation from all genuine human needs that currently plays such a corrosive role in our
society. But in resisting this type of hyper-commercialism we should not be under any illusions.
Advertising may seem at times to be an almost trivial of omnipresent aspect of our economic
system. Yet, as economist A. C. Pigou pointed out, it could only be ‗removed altogether‘ if
‗conditions of monopolistic competition‘ inherent to corporate capitalism were removed. To
resist it is to resist the inner logic of capitalism itself, of which it is the pure expression.‖
―Visual pollution, much of it in the form of advertising, is an issue in all the world's large cities.
But what is pollution to some is a vibrant part of a city's fabric to others. New York City without
Times Square's huge digital billboards or Tokyo without the Ginza's commercial panorama is
unthinkable. Piccadilly Circus would be just a London roundabout without its signage. Still,
other cities, like Moscow, have reached their limit and have begun to crack down on over-the-
top outdoor advertising.‖. ―Many communities have chosen to regulate billboards to protect and
enhance their scenic character. The following is by no means a complete list of such
communities, but it does give a good idea of the geographic diversity of cities, counties and
states that prohibit new construction of billboards. Scenic America estimates the nationwide
total of cities and communities prohibiting the construction of new billboards to be at least
1500. A number of States in the US prohibit all billboards:
Vermont - Removed all billboards in 1970s
Hawaii - Removed all billboards in 1920s
Maine - Removed all billboards in 1970s and early 80s
Alaska - State referendum passed in 1998 prohibits billboards
Almost two years ago the city of São Paulo, Brazil, ordered the downsizing or removal
of all billboards and most other forms of commercial advertising in the city.‖
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Technical appliances, such as Spam filters, TV-Zappers, Ad-Blockers for TVs and stickers on
mail boxes: ―No Advertising‖ and an increasing number of court cases indicate a growing
interest of people to restrict or rid themselves of unwelcome advertising.
Consumer protection associations, environment protection groups, globalization opponents,
consumption critics, sociologists, media critics, scientists and many others deal with the
negative aspects of advertising. ―Antipub‖ in France, ―subvertising‖, culture jamming and
adbusting have become established terms in the anti-advertising community. On the
international level globalization critics such as Naomi Klein and Noam Chomsky are also
renowned media and advertising critics. These groups criticize the complete occupation of
public spaces, surfaces, the airwaves, the media, schools etc. and the constant exposure of
almost all senses to advertising messages, the invasion of privacy, and that only few
consumers are aware that they themselves are bearing the costs for this to the very last
penny. Some of these groups, such as the ‗The Billboard Liberation Front Creative Group‘ in
San Francisco or Adbusters in Vancouver, Canada, have manifestos. Grassroots
organizations campaign against advertising or certain aspects of it in various forms and
strategies and quite often have different roots. Adbusters, for example contests and challenges
the intended meanings of advertising by subverting them and creating unintended meanings
instead. Other groups like ‗Illegal Signs Canada‘ try to stem the flood of billboards by detecting
and reporting ones that have been put up without permit. Examples for various groups and
organizations in different countries are ‗L'association Résistance à l'Agression Publicities‘ in
France, where also media critic Jean Baudrillard is a renowned author. The ‗Anti Advertising
Agency‘ works with parody and humor to raise awareness about advertising. And ‗Commercial
Alert‘ campaigns for the protection of children, family values, community, environmental
integrity and democracy. Media literacy organizations aim at training people, especially
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children in the workings of the media and advertising in their programmes. In the US, for
example, the ‗Media Education Foundation‘ produces and distributes documentary films and
other educational resources ‗MediaWatch‘, a Canadian non-profit women's organization works
to educate consumers about how they can register their concerns with advertisers and
regulators. The Canadian ‗Media Awareness Network/Réseau education medias‘ offers one of
the world‘s most comprehensive collections of media education and Internet literacy resources.
Its member organizations represent the public, non-profit but also private sectors. Although it
stresses its independence it accepts financial support from Bell Canada, CTVGlobeMedia,
CanWest, TELUS and S-VOX.
To counter the increasing criticism of advertising aiming at children media literacy
organizations are also initiated and funded by corporations and the advertising business
themselves. In the US ‗The Advertising Educational Foundation‘ was created in 1983
supported by ad agencies, advertisers and media companies. It is the ―advertising industry's
provider and distributor of educational content to enrich the understanding of advertising and
its role in culture, society and the economy‖ sponsored for example by American Airlines,
Anheuser-Busch, Campbell Soup, Coca-Cola, Colgate-Palmolive, Walt Disney, Ford, General
Foods, General Mills, Gillette, Heinz, Johnson & Johnson, Kellogg, Kraft, Nestle, Philip Morris,
Quaker Oats, Nabisco, Schering, Sterling, Unilever, Warner Lambert, advertising agencies like
Saatchi & Saatchi Compton and media companies like American Broadcasting Companies,
CBS, Capital Cities Communications, Cox Enterprises, Forbes, Hearst, Meredith, The New
York Times, RCA/NBC, Reader‘s Digest, Time, Washington Post, just to mention a few.
Canadian businesses established ‗Concerned Children's Advertisers‘ in 1990 ―to instill
confidence in all relevant publics by actively demonstrating our commitment, concern,
responsibility and respect for children‖. Members are CanWest, Corus, CTV, General Mills,
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Hasbro, Hershey‘s, and Kellogg‘s, Loblaw, Kraft, Mattel, McDonald‘s, Nestle, Pepsi, Walt
Disney, Weston as well as almost 50 private broadcast partners and others. Concerned
Children's Advertisers was example for similar organizations in other countries like ‗Media
smart‘ in the United Kingdom with offspring in Germany, France, the Netherlands and Sweden.
New Zealand has a similar business-funded programme called ‗Willie Munch right‘. ―While
such interventions are claimed to be designed to encourage children to be critical of
commercial messages in general, critics of the marketing industry suggest that the motivation
is simply to be seen to address a problem created by the industry itself, that is, the negative
social impacts to which marketing activity has contributed…. By contributing media literacy
education resources, the marketing industry is positioning itself as being part of the solution to
these problems, thereby seeking to avoid wide restrictions or outright bans on marketing
communication, particularly for food products deemed to have little nutritional value directed at
children…. The need to be seen to be taking positive action primarily to avert potential
restrictions on advertising is openly acknowledged by some sectors of the industry itself….
Furthermore, Hobbs (1998) suggests that such programs are also in the interest of media
organizations that support the interventions to reduce criticism of the potential negative effects
of the media themselves.‖
Global advertising
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, maximizing local effectiveness of ads, and increasing the company‘s speed of
implementation. Born from the evolutionary stages of global marketing are the three primary
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and fundamentally different approaches to the development of global advertising executions:
exporting executions, producing local executions, and importing ideas that travel.
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 that contributes 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.
Trends
With the dawn of the Internet came many new advertising opportunities. Popup, Flash, banner,
Pounder, averaging, and email advertisements (the last often being a form of spam) are now
commonplace.
In the last three quarters of 2009 mobile and internet advertising grew by 18.1% and 9.2%
respectively. Older media advertising saw declines: -10.1% (TV), -11.7% (radio), -14.8%
(magazines) and -18.7% (newspapers).
The ability to record shows on digital video recorders (such as TiVo) allow users 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 the sales of these sets. To counter this effect,
many advertisers have opted for product placement on TV shows like Survivor.
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Particularly since the rise of "entertaining" advertising, some people may like an advertisement
enough to wish to watch it later or show a friend. 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.
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. 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, 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 at any time, right from their home. This
causes the viewer to become proactive and actually choose what advertisements they want to
view.
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‖. This trend 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".
In freelance advertising, companies hold public competitions to create ads for their product, the
best one of which is chosen for widespread distribution with a prize given to the winner(s).
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During the 2007 Super Bowl, PepsiCo held such a contest for the creation of a 30-second
television ad for the Doritos brand of chips, offering a cash prize to the winner. Chevrolet held
a similar competition for their Tahoe line of SUVs. This type of advertising, however, is still in
its infancy. It may ultimately decrease the importance of advertising agencies by creating a
niche for independent freelancers.
Advertising education has become widely popular with bachelor, master and doctorate
degrees becoming available in the emphasis. 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. A unique model for teaching advertising is the
student-run advertising agency, where advertising students create campaigns for real
companies. Organizations such as American Advertising Federation and AdU Network partner
established companies with students to create these campaigns.
SALES PROMOTION
According to the American Marketing Association, Sales Promotion consists of those
marketing activities other than personal advertising and publicity that stimulate consumer
purchasing and dealer effectiveness, such as displays shows and expositions, demonstration
and various non-recurrent selling efforts not in the ordinary routine.
Sales promotion activities are impersonal and usually non-recurring and are directed at the
ultimate consumers, industrial consumers and middlemen. These activities tend to supplement
the advertising and personal selling efforts. Examples of sales promotion are free product
samples, trading stamps, store displays, premiums, coupons and trade shows. For many
organizations, including the marketers of food, toys and clothing, store displays are an
important sales promotion device. Display exposes the promotion messages to consumers at
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the time and place of purchase. Such exposure is especially important for items that are
bought on impulse. Numerous consumers‘ products are purchased in stores that use self-
service selling methods. Marketers of such items need effective display in order to distinguish
their products from those of their rivals.
PUBLICITY
Publicity is a means of promoting the mass market and is similar to advertising, except that it is
free, is found in the editorial portion of news media and pertains to newsworthy events. The
most common type of publicity are news release (also known as press release), photographs
and feature stories. Marketers have less control over the nature of the publicity that their
organization and products receive than they have over their advertising, personal selling and
sales promotions messages. Upon receiving a news release, for instance, the editor or
broadcast station programme director may choose to throw the release in the waste paper
basket, change the hording, or print or broadcast it in the original form. The disposition of the
news release is entirely in the hands of the media and cannot be dictated by the marketer.
Publicity may be negative as well as positive. Some products and brands have received bad
publicity; for example cigarettes, wings, artificial sweeteners have been branded unsafe or
unhealthy in the publicity which they would rather have done without. Many a companies and
trade association officials attempt to develop favorable working relationships, with the media in
order to minimize bad publicity. They realize that such communications to the public may have
every adverse impact upon the image of the organization.
PERSONAL SELLING
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Personal selling consists of persons to communication between the sales persons and their
prospects. Unlike advertising, it involves personal interactions between the sources and the
destination. Advertising aims at grouping the shotgun approach, while personal selling aims at
individuals the right approach. Sales persons are in the position to tailor their messages
according to the unique characteristics of each prospect. Further, by observing and listening,
sales persons receive immediate feedback on the extent to which their messages are getting
across. If feedback indicates that the message is not getting across, the sales person may
quickly adjust it or the method of its presentation.
Personal selling may be a very intense means of promotion. Consumers can easily leave the
room-during a TV commercial, ignore a store display. The most effective method of promotion
probably is to have sales person provided that the organization has sufficient funds. The most
effective method of promotion probably is to have sales person call upon every target
consumers, for many institutions, especially those that appeal to the mass market, this would
be terribly inefficient. As a result, they employ mass marketing techniques such as advertising,
personal selling is very important in industrial marketing.
PUBLIC RELATIONS
Marketers engage in public relations in order to develop a favorable image of their organization
and products join the eyes of the public. They direct this activity to parties other than target
consumers. These "other" include the public at large labour unions, the press and
environmental groups. Public relations activities include sponsoring, lobbying and using
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promotion message to persuade members of the public to take up a desired position. The term
public relations refer to a firm's communication and relationships with the various sections of
the public. These sections include the organization customers, suppliers, share holders,
employees, the government, the general public and the society in which the organization
operates. Public relations programme may higher be formal or informal. The critical point is
that every organization, whether or not it has a formalized (organized, programme, should be
concerned about its public relations.
CONSUMER BUYING BEHAVIOUR
Understanding the buying behavior of the target market for its company products is the
essential task for the marketing dep‘t. The job of the marketers is to ―think customer and to
guide the company into developing offers, which are meaningful and attractive to target
customers and creating solutions that deliver satisfaction to the customers, profits to customer
and benefits to the stakeholders. The job of marketer is to meet and satisfy target customers
needs and wants but ―knowing customer" is not a simple task. Marketers must study the
customer taste, preferences, wants, shopping and buying behavior because such study
provides the clues for developing the new products, price, product changes, messages and
other marketing mix elements. In understand the concept of buying we have the some of the
key questions. They are: -
Why does the market buying? Objective
Who does the market buying? Organization
What does the market buying? Objects
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When does the market buying? Occasions
Where does the market buying? Outlets
How does the market buying? Operations
Along with that there are two more questions that are also related with above. They are: -
How do the buyer‘s characteristics influence the buying behavior?
How does the buyer make purchasing decisions?
These are some of questions that solutions help to predict the buying behaviour.
WAYS OF BUYING BEHAVIOUR
The computer processor company divides its buying behavior in both way i.e. Consumer and
Business. The both of term have same meaning as to define in the chapter of buying behavior.
The both consumer and business are divided further as SMB —Small Medium Big - to identify
the type of client according to their sales and SMB have their own group of clients.
1. CONSUMER BUYING BEHAVIOR:-
It includes all those person who are the direct user of the computers and their processors or for
their employees and family member use. They are not indulging in the sale activity of the
computer and other Products. I.e. home users, companies for their employees.
2. BUSINESS BUYING BEHAVIOR: -
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It includes that entire person who is not the direct user of the computers and their processors
or for their employees and family member use. They are indulging in the sale activity of the
computer and other Products. They can also be authorized from companies i.e. Intel. I.e. hp,
HCL, Assemblers.
ROLES IN BUYING BEHAVIOUR
In the buying behavior there are different roles played in each of consumer and business.
* CONSUMER BUYING ROLES
In the consumer buying there are different buying roles; i.e.
Initiator: -- A Person who first suggest the idea of buying.
Influencer: - A Person who influence the buying decision.
Decider: - A Person who takes decisions regarding buying
Buyer: - A Person who actually buys the products.
User: - A Person who is the user of the product.
* BUSINESS BUYING ROLES
In the business buying there are different buying roles; i.e.
Approver: -- A Person who approves the idea of buying.
Influencer: -- A Person who influence the buying decision.
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Decider: -- A Person who takes decisions regarding buying
Buyer: -- A Person who actually buys the products.
User: -- A Person who is the user of the product.
TYPES OF BUYING BEHAVIOUR
There is a great difference between the purchasing of a computer and a car. Buying decisions
making varies with the type of buying decision. The types of buying behavior divided are
separately divided as per of consumer and business buying.
TYPES OF CONSUMER BUYING BEHAVIOUR
This is to be extensively divided in four types: -
1. Complex Buying Behavior: -- when the consumer is highly involved in the purchase and
aware of significant differences among brands.
2. Dissonance Reducing Buying Behavior: -- when the consumer are highly involved in the
purchase but sees little differences among brands.
3. Habitual Buying Behavior: -- when the consumer is low involved in the purchase but sees
absence of aware of differences among brands.
4. Variety Seeking Buying Behavior: -- when the consumer is low involved in the purchase
but sees significant of differences among brands.
TYPES OF BUSINESS BUYING BEHAVIOUR
This is to be extensively divided in four types: -
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1. Straight Rebury: -- In this buyer approves the purchasing on the basis of the past buying
records and satisfaction with suppliers.
2. Modified Rebury: -- where the buyer wants to modify product specifications. Prices,
delivery requirements.
3. New Task: -- when the buyer approves the purchasing of product for the first time by
consisting of the good and efficient salesperson.
So, that it‘s the types of the buying behavior of consumer as well as business buyer.
FACTOR AFFECTING THE BUYING BEHAVIOR
There are various factors that affect the buying behavior on both consumer as well as business
buying.
FACTOR AFFECTING CONSUMER BUYING BEHAVIOR
Cultural
Factors
Culture
Personal
factors
Age Social Factors
References Psychological
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Sub Culture
Social Class
Occupation
Life Styles
Personality
Group
Family
Roles and
Statues
Motivation
Perception
Learning
BUYER
FACTOR AFFECTING BUSINESS BUYING BEHAVIOR
Environmental
Economic
Political
Cost of Money
Competition
Technological
Organizational
Objective
Policies
Procedures
Structure
Inter – Personal
Authority
Status
Empathy
Individual
Age
Education
Income
BUSINESS
BUYER
So, these are the factors that affect the consumer as well as business buying behaviour.
BUYING DECISION MAKING
Consumers make the decision on the different brands available in the market. They will give
the choice over the different brands. So there is a model that describes how the consumers
make the choice and preferences over the different brands.
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The Following is the model of buying decision-making: -
1. Total Set: - In this they used to maintain the list of the all-leading brand to those particular
products that are available in the market.
2. Awareness Set: - After that they used to make the list of those selected brands with that
they are something knows and aware about their products.
3. Consideration Set: - After that they used to make the list from the list of known brands,
about those they know something better than other brands.
4. Choice Set: - After the consideration of some brands, a list of choice brands those having
the greater chances of acceptance over others.
5. Decision Set: - After the all of the process in last most preferred, most acceptable during
the buying decision process.
So that it‘s a process, which defines that, how a buying decisions are made among the number
of brands available in the market.
So that it‘s all about the general buying behavior of cons, and business buying according to
marketing concept, because to understand and making study over buying behavior first it‘s
necessary to aware with concept of buying behaviour.
CONSUMER BUYING BEHAVIOUR PROCESS
What influences consumers to purchase products or services? The Consumer Buying process
is a complex matter as many internal and external factors have an impact on the buying
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decisions of the consumer. When purchasing a product there several processes, which
consumers go through? These will be discussed below.
1. Problem/Need Recognition
How do you decide you want to buy a particular product or service? It could be that your DVD
player stops working and you now have to look for a new one, all those DVD films you
purchased you can no longer play! So you have a problem or a new need. For high value
items like a DVD player or a car or other low frequency purchased products this is the process
we would take. However, for impulse low frequency purchases e.g. confectionery the process
is different.
2. Information search
So we have a problem, our DVD player no longer works and we need to buy a new one.
What‘s the solution? Yes go out and purchase a new one, but which brand? Shall we buy the
same brand as the one that blew up? Or stay clear of that? Consumer often goes on some
form of information search to help them through their purchase decision. Sources of
information could be family, friends, neighbors who may have the product you have in mind,
and alternatively you may ask the sales people, or dealers, or read specialist magazines like
What DVD? To help with their purchase decision. You may even actually examine the product
before you decide to purchase it.
3. Evaluation of different purchase options.
So what DVD player do we purchase? Shall it be Sony, Toshiba or Bush? Consumers allocate
attribute factors to certain products, almost like a point scoring system which they work out in
their mind over which brand to purchase. This means that consumers know what features from
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the rivals will benefit them and they attach different degrees of importance to each attribute.
For example sound maybe better on the Sony product and picture on the Toshiba, but picture
clarity is more important to you then sound. Consumers usually have some sort of brand
preference with companies as they may have had a good history with a particular brand or
their friends may have had a reliable history with one, but if the decision falls between the
Sony DVD or Toshiba then which one shall it be? It could be that the review the consumer
reads on the particular Toshiba product may have tipped the balance and that they will
purchase that brand.
4. Purchase decision
Through the evaluation process discussed above consumers will reach their final purchase
decision and they reach the final process of going through the purchase action e.g. The
process of going to the shop to buy the product, which for some consumers can be as just as
rewarding as actually purchasing the product. Purchase of the product can either be through
the store, the web, or over the phone.
Post Purchase behaviour
Ever have doubts about the product after you purchased it? This simply is post purchase
behaviour and research shows that it is a common trait amongst purchasers of products.
Manufacturers of products clearly want recent consumers to feel proud of their purchase; it is
therefore just as important for manufacturers to advertise for the sake of their recent purchaser
so consumers feel comfortable that they own a product from a strong and reputable
organization. This limits post purchase. Behaviour i.e. you feel reassured that you own the
latest advertised product.
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Factors influencing the behavior of buyers.
Consumer behaviour is affected by many uncontrollable factors. Just think, what influences
you before you buy a product or service? Your friends, your upbringing, your culture, the
media, a role model or influences from certain groups?
Culture is one factor that influences behaviour. Simply culture is defined as our attitudes s. But
how are these attitudes and beliefs developed? As an individual growing up, a child is
influenced by their parents, brothers, sister and other family member who may teach them
what is wrong or right. They learn about their religion and culture, which helps them develop
these opinions, attitudes and beliefs (AIO). These factors will influence their purchase.
Behaviour however other factors like groups of friends, or people they look up to may influence
their choices of purchasing a particular product or service. Reference groups are particular
groups of people some people may look up towards too that have an impact on Consumer
behaviour. So they can be simply a band like the Spice Girls or your immediate family
members. Opinion leaders are those people that you look up to because your respect their
views and judgments and these views may influence Consumer decisions. So it maybe a
friend who works with the IT trade who may influence your decision on what computer to buy.
The economical environment also has an impact on Consumer behaviour; do consumers have
a secure job and a regular income to spend on goods? Marketing and advertising obviously
influence consumers in trying to evoke them to purchase a particular product or service.
People‘s social status will also impact their behaviour. What is their role within society? Are
they Actors? Doctors? Office worker? And mothers and fathers also? Clearly being parents
affects your buying habits depending on the age of the children, the type of job may mean you
need to purchase formal clothes; the income which is earned has an impact. The lifestyle of
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someone who earns Rs.250000 would clearly be different from someone who earns Rs.25000.
Also characters have an influence on buying decision. Whether the person is extrovert (out
going and spends on entertainment) or introvert (keeps to themselves and purchases via
online or mail order) again has an impact on the types of purchases made.
Types of buying Behaviour
There are four typical types of buying Behaviour based on the type of products that intends to
be purchased.
Complex buying Behaviour is where the individual purchases a high value brand and seeks
a lot of information before the purchase is made.
Habitual buying Behaviour is where the individual buys a product out of habit e.g. a daily
newspaper, sugar or salt.
Variety seeking buying Behaviour is where the individual likes to shop around and
experiment with different products. So an individual may shop around for different breakfast
cereals because he/she wants variety in the mornings!
Dissonance reducing buying Behaviour is when buyer is highly involved with the purchase
of the product, because the purchase is expensive or infrequent.
There is little difference between existing brands an example would be buying a
diamond ring, there is perceived little difference between existing diamond brand
manufacturers.
ADVERTISING EFFECTIVENESS
Advertising is an art not a science. Effectiveness of which cannot be measured with a
mathematical or empirical formula some advertisers argue that advertising efforts go to waste,
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but every advertiser is keenly interested in measuring or in evaluation of ad. Effectiveness.
Testing for the effectiveness of ad. Will lead advertisement testing must be done either before
or after the ad has done in the media. It is of two types, pretesting which are done before the
ad. Has been launched and one is referred to as cost testing which is done before the ad. Has
been launched and one is referred to as cost testing which is done after launching the
advertising campaign. The basic purpose of advertising effectiveness is to avoid costly
mistakes, to predict the relative strength of alternative strength of alternative advertising
strategies and to increase their efficiency. In measurement of ad. Effectiveness feedback is
always useful even if it costs some extra expenditure to the advertiser.
Sales-Effect:
Communication-effect advertising research helps advertisers assess advertising's
communication effects but reveals little about its sales impact. What sales are generated by an
ad that increases brand awareness by 20% and brand preference by 10%?
Advertising's sales effect is generally harder to measure than its communication effect. Sales
are influenced by many factors besides advertising, such as the product's features, price,
availability and competitors' actions. The fewer or more controllable these other factors are, the
easier it is to measure advertising's effect on sales. The sales impact is easiest to measure in
direct-marketing's effect on sales. The sales impact is easiest it is to measure in direct-
marketing situations and hardest measure in brand or corporate-image-building advertising.
PROGRESS TESTS
These assess the various stages of buyer awareness, preference, buying intention and the
actual purchase in relation to ad. Effort. They are called sales effect tests.
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Measuring Sales Response to Advertising:
Though increase in sales in the true measure of advertising effectiveness, in reality it is difficult
to measure the increase that is due to a particular advertisement. It is rather difficult to
correlate the response in sales with the advertising programme. However, a few methods have
been discalced in the following paragraphs which are generally used to measure the sales
response to advertising.
The Neaps Method:
The term Netapps has been framed from the term net-ad-produce-purchases. This method,
which has been developed by Daniel Starch and Staff Company, requires the measurement of
both readers and non-readers who purchased and who did not purchase the brand under
investigation. The netapps method is useful in the relative measurement of the sales-
effectiveness of various advertising approaches. But the method is subject to a high level of
false reporting and open to interviewer bias. Moreover, we have considered advertising
influence as the only factor which results in a purchase. There may be, and often are, other
variables which affect purchases.
Sales Results Tests:
The additional sales generated by the ads are recorded, taking several routes.
Past Sales before the ad and sales after the ad are noted. The difference is attributed to an
impact.
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Controlled Experiment: In experimental market, any one element of marketing mix is
changed. It is compared with the sales of another similar market. The element's presence
observance is a reason for difference in sales.
Instead of two markets, the experiment can be carried on the two groups of consumers.
The inventory audit is dealer‘s inventory before and after the ad is run.
Attitude Tests
This is an indirect measurement of the post-testing effects of ads on attitudes towards the
advertised product or brands. The change in attitude as a result of advertising is assessed.
The assumption is that favorable attitude towards the product may lead to purchases.
Most ads are designed to either reinforce or change existing attitudes. An attitude is a
favorable or unfavorable feeling about a product.
Influencing people: Myths and Mechanisms
Why is it so difficult to introspect on advertising and how it influences us? Because we look for
major effects, that‘s why! Too often, we look for the ability of an ad to persuade us. We look for
a major effect rather than more subtle, minor effects. Big and immediate effects of advertising
do occur when the advertiser has something new to say. Then it is easy for us to introspect on
its effect. But most effects of advertising fall well short of persuasion. These minor effects are
not obvious but they are more characteristic of the way advertising works. To understand
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advertising we have to understand and measure these effects. When our kids are growing up
we don‘t notice their physical growth each day but from time to time we become aware that
they have grown. Determining how much a child has grown in the last 24 hours is like
evaluating the effect of being exposed to a single commercial. In both cases, the changes are
too small for us to notice. But even small effects of advertising can influence which brand we
choose especially when all other factors are equal and when alternative brands are much the
same.
Weighing the alternatives: Evaluation
It is easiest to understand this with low-involvement buying
situations. The situation is like a ‗beam-balance‘ in which
each brand weighs the same. With one brand on each side,
the scale is balanced. However, it takes only a feather added
to one side of the balance to tip it in favor of the brand on that
side. The brands consumers have to choose from are often
very similar. Which one will the buying balance tip towards?
When we look for advertising effects we are looking for
feathers rather than heavy weights.
The buying of cars, appliances, vacations and other high-priced items are examples of high-
involvement decision- making. This high level of involvement contrasts with the low level
brought to bear on the purchase of products like shampoo or soft drink or margarine. For most
of us, the buying of these smaller items is no big deal. We have better things to do with our
time than agonize over which brand to choose every time we buy something.
Low involvement:
Deciding between 2 virtually
identical alternatives.
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The fact is that in many low-involvement product categories, the alternative brands are
extremely similar and in some cases almost identical. Most consumers don't really care which
one they buy and could substitute easily if their brand ceased to exist. It is in these low-
involvement categories that the effects of advertising can be greatest and yet hardest to
introspect upon.
Even with high involvement products the beam balance
analogy is relevant because very different alternatives can
weigh-up equal. We often have to weigh up complex things
like ‗average quality at a moderate price‘ against ‗premium
quality at a higher price‘. Often we find ourselves in a state of
indecision between the alternatives. When the choice weighs
equal in our mind, whether it is low involvement products or
high involvement products, it can take just a feather to swing
that balance.
With high involvement decisions we are more concerned about the outcome of the weighing up
process, so we think more about how much weight to give to each feature (quality, size or
power)? How many extra dollars is it worth paying for a feature? Automotive writers for
example can reach very different opinions. The more complex a products features the more
complex this assessment because there are usually both positive and negative perspectives.
For example, a compact car is positive in regard to both fuel economy and maneuverability but
negative in regard to leg-room and comfort.
So which way should we see it? What weight should we give to a particular feature in our
minds? When, advertising emphasizes points that favor a brand, it doesn‘t have to persuade
High involvement decisions:
Very different alternatives
can weigh equal.
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us - merely raise our awareness of the positive perspectives. Chances are we will notice
confirmatory evidence more easily as a result. When we subsequently read a newspaper or
consumer report or talk with friends, research shows that we are prone to interpret such
information slightly more favorably. This effect is a long way from heavyweight persuasion.
Rather it is a gentle, mental biasing of our subsequent perceptions, and we see in Chapter 2
how perspective can influence our interpretation. It is not so much persuasion as a shifting of
the mental spotlight...playing the focal beam of attention on one perspective rather than
another.
Repetition
As with the amount by which our kids grow in a day, we are
just not aware of the small differences advertising can make.
Even though these imperceptibly small changes in time add
up to significant effects, individual increments are too small
for us to notice. They are just below the just noticeable
difference (JND).
Through the process of repetition these small increments
can produce major perceived differences between brands,
but we are rarely aware of the process taking place.
The cumulative effects of changes in brand image become starkly noticeable only in rare
cases: for instance, when we return home after a long absence and find that an old brand is
now seen by people in a different light — that in the intervening period the brand has acquired
a different image.
Small cumulative increments:
We don‟t notice a child‟s
growth in 24 hours.
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Registering a claim in our minds (e.g. ‗taste the difference‘ or ‗good to the last drop‘) does not
necessarily mean we believe it. However, it makes us aware that there are claimed differences
between brands. This is a proposition (a ‗feather‘, if you will) that, when everything else is
equal may tip the balance of brand selection, even if only to prompt us to find out if it is true.
Repetition increases our familiarity with a claim. In the absence of evidence to the contrary, a
feeling of greater likelihood that the claim is true begins to accompany the growing familiarity.
This effect of repetition is known as ‗the truth effect.
We tend to think that if something is not true somehow it would somehow be challenged. If it is
repeated constantly and not challenged, our minds seem to regard this as prima facie
evidence that perhaps it is true. The effect of repetition is to produce small but cumulative
increments in this ‗truth‘ inference. It is hardly rational but we don‘t really think about it. We
don‘t go out of our way to think about it because low involvement, by definition means we don‘t
care much anyway. Such claims are ‗feathers‘.
In summary, the reasons we are unable to introspect on advertising‘s effects — especially in
low-involvement situations are:
o the effect of each single ad exposure is small;
o with repetition, even imperceptibly small effects can build into larger perceived differences
between brands;
o if something gets repeated constantly without challenge, our minds seem to regard this as
prima facie evidence that maybe, just maybe, it is true (the ‗truth‘ effect);
o Often it is no big deal to us which of the alternative brands we choose, anyway.
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If you have ever wondered why advertisers seem to persist in repeating the same ad — if you
have ever wondered why they think this could possibly influence sane people like us — then
here is the answer. Much of advertising creates only marginal differences, but small
differences can build into larger differences. Even small differences can tip the balance in favor
of the advertised brand. This is especially true of ‗image advertising‘.
Image advertising
The effect of image advertising is easier to see in relation to high-involvement products, so let
us start with a high-involvement example — Volvo cars.
Between 1970 and 1990, Volvo focused its image advertising on safety. Through repetition, it
built up a strong image for the Volvo as a safe car. On a scale of 1 to 10 for safety, most
people would rate Volvo higher than almost any other car. Safety is now an integral part of our
perception of this brand. (The fact that the car actually delivers on this promise has of course
been a very important ingredient in the success of the safety campaign -but that is another
story.)
One effect of image advertising, then, is to produce gradual shifts in our perceptions of a brand
with regard to a particular attribute — in Volvo‘s case, safety (in other words, to effect marginal
changes in our mental rating of the brand on that attribute). This is often not perceptible after
just one exposure because the change, if it occurs, is too small for us to notice.
Now let‘s take a low-involvement product category-hair spray — and examine its history of
brand image advertising.
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The first brands of hair spray originally fought for market share on the basis of the attribute of
‗hair holding‘. That is, each brand claimed to hold hair. To the extent that they all claimed the
same thing, they were what we call ‗me-too‘ brands.
To break out of this, one brand began to claim that it ‗holds hair longer‘. Just as Volvo claimed
that it was safer, and thereby moved Volvo up higher up the perceived safety scale, so this
brand of hair spray made people aware that some brands of hair spray might hold hair longer
than others. It then attempted to shift perception of itself on this attribute and marginally
increase the mental rating consumers would give it on ‗length of hold‘.
The next brand of hair spray to enter the market, instead of
tackling that brand head-on, cleverly avoided doing battle on
‗length of hold‘. The new brand claimed that it was ‗long holding‘,
but also that it ‗brushes out easier‘ — a dual benefit. In doing so it
successfully capitalized on the fact that hair sprays that hold
longer are harder to brush out (or were until then). Many years
later, came the attribute of ‗flexible hold‘.
These examples of image advertising for hair spray and cars
illustrate how one effect of advertising is to alter our perceptions of
a brand. Advertising can marginally change our image of a brand
by leading us to associate it with a particular attribute (like ‗longer
holding‘ or ‗brushes out easily‘), and to associate the brands in our minds with that attribute
more than we associate it with any other competitive brand.
Gauging the effects image advertising has on us is made even more complex because these
effects may not operate directly on the image of the brand itself. Image advertising may
Vidal Sassoon Hairspray
ad claiming „flexible
hold‟
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produce small, incremental differences in the image of a brand, as in the case of Volvo — but
sometimes it is aimed at changing not so much the image of the brand itself but who we see in
our mind‘s eye as the typical user of that brand.
User image
In advertising for Levi‘s, Revlon, Coca-Cola, Calvin Klein, Dior or Gap, the focus is often on
people who use the brand. What changes is not so much our perception, or image, of the
product as our perception of the user-stereotype — the kind of person who typically uses the
brand, or the situation in which the brand is typically used.
When these brands are advertised, the focus is very much on
image but often with this important, subtle difference. The
advertising aims to change not how we see the brand itself-the
brand image-but how we see:
o the stereotypical user of the brand -the user image;
o The stereotypical situation in which the brand is used.
If the user image of a brand resembles us, or the type of person we
aspire to be, what happens when we come to buy that product
category? The user image acts as a feather on one side of the
beam balance. If everything else is equal it can tip the scale (but
note, only if everything else is about equal).
Jim Beam ad reinforcing the stereotypical user image -
young, single males.
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User, or situational, image changes usually fall short of the kinds of rational, heavyweight
reasons that make perfect sense of any choice. But they can nevertheless tilt the balance in
favor of one brand. Minor effects such as these constitute much of the impact of advertising.
Yet they are usually much more difficult for us as consumers to analyze introspectively, and we
tend to discount them because they clearly fall well short of persuasion.
Two mental processes in decision-making
There are fundamentally different mental processes at work in choice decisions. We have
already considered the most obvious one, the weighing up of alternatives. But there is another
process that consumers and advertisers tend to be less conscious of. Weighing up the
alternatives is one thing. Which alternatives get weighed up is another!
Which alternatives get weighed up?
What determines the alternatives that are actually considered?
Think about a consumer decision that you probably make every day. It‘s getting on for noon,
you are feeling hungry and you ask yourself, ‗What am I going to have for lunch today?‘ Your
mind starts to generate alternatives and evaluate each alternative as you think of it. The
process goes something like this:
o ‗Will I have a salad?‘ No, I had a salad yesterday.
o ‗A sandwich?‘ ‗No, the sandwich store is too far away and besides, it‘s raining.‘
o ‗I could drive to McDonald‘s.‘ ―Yes . . . I‘ll do that.‘
There are two things to note here. First, what the mind does is produce alternatives, one at a
time. This ‗mental agenda‘ of alternatives is ordered like this:
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Second, the order in which the alternatives are arranged is the order in which they are elicited
by the mind. This order can influence your final choice. You may enjoy Pizza Hut more than
McDonald‘s. But in the example, you didn‘t go to Pizza Hut, you went to McDonald‘s.
Had you continued your thought process instead of stopping at the third alternative
(McDonald‘s), you would probably have gone to Pizza Hut. But if Pizza Hut is only fifth on your
mental agenda of lunch alternatives, it is unlikely to get much of your business. You didn‘t get
to Pizza Hut because you didn‘t think of it before you hit on a satisfactory solution —
McDonald‘s. You didn‘t get there physically because you never got there mentally. Even if we
like or prefer something, if it is not reasonably high on our mental agenda it is likely to miss out.
How many times have you found yourself doing something and realized too late that there was
something else you would rather have been doing but didn‘t think about in time? The most
preferred alternatives are not necessarily the ones you think of first. (Anyone who has ever left
an important person off an invitation list will appreciate this.) Next time you go out for dinner
and are trying to decide which restaurant to go to, observe your thought pattern. There are two
separate processes at work. One is generation of alternatives. The other is evaluation of the
alternatives.
To affect the outcome of buying decisions, advertisers can try to influence:
o the order in which the alternatives are evoked;
o the evaluation of a particular alternative; or
o Both.
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When we think of advertising‘s effects we almost invariably think of how advertising influences
our evaluation of a brand. Yet much of advertising‘s influence is not on our evaluations of a
brand but on the order in which alternative brands are evoked.
Agenda-setting effect
Influencing the order of alternatives has its basis in what is known as the agenda-setting theory
of mass communications. This says: The mass media don‘t tell us what to think. But they do
tell us what to think about! They set the mental agenda.
The agenda-setting theory was originally developed to explain the influence of the mass media
in determining which political issues become important in elections. Adroit committee members
and politicians claim that if you can control the agenda you can control the meeting. It was not
until 1981 that the relevance of this to advertising was recognized.
When we reach into our minds to generate any of these agendas, the items do not all come to
mind at once. They are elicited one at a time and in an order. The items on top of the mental
agenda are the most salient and the ones we are most likely to remember first. It‘s the same
with choosing which restaurant to go to or which department store to visit or which
supermarket to shop at this week. It is the same with the decision about which cars or
refrigerators to short-list and which dealers to visit. The order in which we retrieve the items
from our memories seems almost inconsequential to us but may be critically important in
determining the chances of our going to a McDonald‘s versus Pizza Hut.
This effect also occurs if we have a list of the alternatives or a display of them such as in the
supermarket. Even here, where the brands are all set out in front of us, all of them do not get
noticed simultaneously. In fact they do not all get noticed.
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Think about the process. We stand there at the display. We notice first one brand, then
another and then another. It happens rapidly, but in sequence. So despite the fact that the
brands are all displayed, they are not necessarily all equal in terms of the probability that they
will come to mind or be noticed. Supermarkets today carry more than 30,000 items, up from
17,500 a decade ago.[8] This raises a question. At supermarket displays, what makes a brand
stand out? To use the marketing term, what makes it ‗break through the clutter‘ of all the
alternative packs and get noticed? What makes one brand get noticed more quickly than
others at the supermarket display?
This introduces the concept of salience, which is formally defined in the next section. In this
context we ask how a brand can be moved up from fifth, to fourth to third, to second, to
become the first one noticed. The higher up it is in this order, the better the chance it has of
being considered, and consequently, the better the chance of its being purchased.
The brand‘s physical prominence, the amount of shelf space it occupies and its position in the
display are very important. But advertising can influence choice when other factors (like shelf
space or position) are otherwise equal. Advertising can help tip the balance.
Asking what makes one brand more salient — more likely to come to mind or get noticed —
than another is like asking what influences Pizza Hut‘s position on our mental lunch agenda. In
the supermarket, instead of having to recall all the alternatives by ourselves, we are prompted
by the display. However, the brands we notice and the order in which we notice them can be
influenced by more than just the display.
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Salience
We think much more often about people and things that are important to us than about those
that are not. The psychological term for this prominence in our thoughts is salience.
Advertisers would like us to think of their brands as ‗more important‘ but they will settle for
‗more often‘.[9] In other words, they would like their brands to be more salient for us.
Our definition of salience is the probability that something will be in the conscious mind at any
given moment. One way advertising can increase this probability is through repetition. We
have all had the experience of being unable to rid our minds of a song we have heard a lot.
The repetition of the song has increased its salience; it has increased its probability of being in
the conscious mind at any moment. Repetition of an advertisement, especially a jingle, can
have a similar effect. Through repetition of the ad, the salience of the brand - the star of the ad
- is increased in our minds.
Another way that advertising influences what we think about and notice is through ‗cueing‘. To
explain this, answer a few questions.
o What‘s the first thing you think of when you see: "Just Do it."‘
o What‘s the first thing you think of when someone says: "Don't leave home without it?"
o What comes to mind if you are asked: "Where do you want to go today?‖
o What‘s the first thing you think of when someone says: "Cross your heart‖?
o When you see the word "Always ....‖ what do you think of?
o What's the first thing you think of when someone asks "Where's the beef?‖ in America or
"Which bank?‖ in Australia?
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Words or expressions such as these come up naturally in everyday conversation. When a
brand is linked to them through repetition, they become cues that help increase the salience of
the brand.
An actor in a play takes his cue from a line or some other happening or event. The human
mind takes its cue from its intentions and its immediate environment. Such cues can influence
what we think about next. That‘s how we go to sleep at night. We turn off the cues. We turn off
the light and the radio. We try to reduce distractions or cues so that things won‘t keep popping
into our minds.
One way advertising can use cues is by tying a brand to something that frequently recurs in
the ordinary environment. There are many common words, expressions, symbols or tunes that
can be developed by means of repetition into mnemonic devices that trigger recollection of the
brand.
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FACTORS THAT HAVE AN IMPACT ON CONSUMER DECISION MAKING
* Culture
Culture is part of the external influences that impact the consumer. That is, culture represents
influences that are imposed on the consumer by other individuals.
The definition of culture offered in the text is "That complex whole which includes knowledge,
belief, art, morals, custom, and any other capabilities and habits acquired by man person as a
member of society." From this definition, one can make the following observations:
Culture, as a "complex whole," is a system of interdependent components.
Knowledge and beliefs are important parts. Other issues are relevant. Art, for example, may be
reflected in the rather arbitrary practice of wearing ties in some countries and wearing turbans
in others. Cultural rules can be categorized into three types. Formal rules carry relatively
explicit standards as to how one should behave, and violations often carry severe sanctions.
Informal rules, on the other hand, are less explicit and may not carry sanctions for violation.
Finally, technical cultural rules involve implicit standards as to what constitutes a good product.
Language is an important element of culture. It should be realized that regional differences
may be subtle.
Some cultures tend to adopt new products more quickly than others, based on several factors:
Modernity: The extent to which the culture is receptive to new things. In some countries,
such as Britain and Saudi Arabia, tradition is greatly valued—thus, new products often don‘t
fare too well. The United States, in contrast, tends to value progress.
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Homophile: The more similar to each other that members of a culture are, the more likely
an innovation is to spread—people are more likely to imitate similar than different models. The
two most rapidly adopting countries in the World are the U.S. and Japan. While the U.S.
interestingly scores very low, Japan scores high.
Physical distance: The greater the distance between people, the less likely innovation is
to spread.
Opinion leadership: The more opinion leaders are valued and respected, the more likely
an innovation is to spread. The style of opinion leaders moderates this influence, however. In
less innovative countries, opinion leaders tend to be more conservative, i.e., to reflect the local
norms of resistance.
* Family Decision Making
Individual members of families often serve different roles in decisions that ultimately draw on
shared family resources. Some individuals are information gatherers/holders, who seek out
information about products of relevance. These individuals often have a great deal of power
because they may selectively pass on information that favors their chosen alternatives.
Influencers do not ultimately have the power decide between alternatives, but they may make
their wishes known by asking for specific products or causing embarrassing situations if their
demands are not met. The decision maker(s) have the power to determine issues such as:
Whether to buy;
Which product to buy (pick-up or passenger car?);
Which brand to buy?
Where to buy it; and
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When to buy.
One is bargaining—one member will give up something in return for someone else. Strategy is
reasoning—trying to get the other person(s) to accept one‘s view through logical
argumentation.
* Group Influences
Humans are inherently social animals, and individuals greatly influence each other. A useful
framework of analysis of group influence on the individual is the so called reference group—
the term comes about because an individual uses a relevant group as a standard of reference
against which oneself is compared. Reference groups come in several different forms. The
inspirational reference group refers to those others against whom one would like to compare
oneself. Associative reference groups include people who more realistically represent the
individuals‘ current equals or near-equals—e.g., coworkers, neighbors, or members of
churches, clubs, and organizations. Finally, the dissociative reference group includes people
that the individual would not like to be like.
* Diffusion of Innovation
The diffusion of innovation refers to the tendency of new products, practices, or ideas to
spread among people. Usually, when new products or ideas come about, they are only
adopted by a small group of people initially; later, many innovations spread to other people.
The saturation point is the maximum proportion of consumers likely to adopt.
Several forces often work against innovation. One is risk, which can be either social or
financial. Another risk is being perceived by others as being weird for trying a "fringe" product
or idea. Other sources of resistance include the initial effort needed to learn to use new
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products (e.g., it takes time to learn to meditate or to learn how to use a computer) and
concerns about compatibility with the existing culture or technology. Innovations come in
different degrees. A continuous innovation includes slight improvements over time. A
dynamically continuous innovation involves some change in technology, although the product
is used much the same way that its predecessors were used—e.g., jet vs. propeller aircraft. A
discontinuous innovation involves a product that fundamentally changes the way that things
are done—e.g., the fax and photocopiers.
* Perception
Background. Our perception is an approximation of reality. Our brain attempts to make sense
out of the stimuli to which we are exposed.
Factors in perception. Several sequential factors influence our perception. Exposure involves
the extent to which we encounter a stimulus. Most of this exposure is random—we don‘t plan
to seek it out. Exposure is not enough to significantly impact the individual—at least not based
on a single trial In order for stimuli to be consciously processed, attention is needed.
Interpretation involves making sense out of the stimulus. Weber‘s Law suggests that
consumers‘ ability to detect changes in stimulus intensity appear to be strongly related to the
intensity of that stimulus to begin with.
Several factors influence the extent to which stimuli will be noticed. One obvious issue is
relevance. Consumers, when they have a choice, are also more likely to attend to pleasant
stimuli (but when the consumer can‘t escape, very unpleasant stimuli are also likely to get
attention—thus, many very irritating advertisements are remarkably effective). Surprising
stimuli are likely to get more attention—survival instinct requires us to give more attention to
something unknown that may require action. A greater contrast (difference between the
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stimulus and its surroundings) as well as greater prominence (e.g., greater size, center
placement) also tend to increase likelihood of processing.
* Learning and Memory
Learning involves "a change in the content or organization of long term memory and/or
behavior." The first part of the definition focuses on what we know (and can thus put to use)
while the second focuses on concrete behavior.
Several factors influence the effectiveness of learning. In general, the closer in time the
consequences are to the behavior, the more effective the learning. However, it is not
necessary to reward a behavior every time for learning to occur. Even if a behavior is only
rewarded some of the time, the behavior may be learned.
Memory. There are two kinds of memory. When you see an ad on TV for a mail order product
you might like to buy, you only keep the phone number in memory until you have dialed it. This
is known as short term memory. In order for something to enter into long term memory, which
is more permanent, you must usually "rehearse" it several times. A special issue in memory is
so called "scripts," or procedures we remember for doing things. Scripts involve a series of
steps for doing various things (e.g., how to send a package).
* Motivation, Personality, and Emotion
Perspectives on Consumer Behavior and Motivation: People considered several perspectives
on behavior as a way to understand what motivates the consumer. Each of these perspectives
suggests different things as to what the marketer should do and what can (and cannot) be
controlled.
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The Hard Core Behavioral perspective suggests that consumers must learn from their own
experiences rather than merely observing other people who overeat and get sick.
The Social Learning Perspective, in contrast, allows for vicarious learning--i.e., learning
obtained by watching others getting good or bad consequences for behavior
The Cognitive approach emphasizes consumer thinking rather than mere behavior. Here, the
emphasis is on how people reason themselves to the consequences of their behavior.
The Biological approach suggests that most behavior is determined by genetics or other
biological bases. By this perspective, it is suggested that consumers eat the foods they eat in
large part because the body craves these foods. The main implication of biological
determinism is that the marketer must adapt--for example, food advertisements are more likely
to be effective when people are hungry, and thus they might better be run in the late afternoon
rather than in the late morning.
The Rational Expectations perspective is based on an economic way of looking at the World.
* Attitudes
Consumer attitudes are a composite of a consumer‘s (1) beliefs about, (2) feelings about, (3)
and behavioral intentions toward some object within the context of marketing, usually a brand
or retail store. These components are viewed together since they are highly interdependent
and together represent forces that influence how the consumer will react to the object.
Beliefs. The first component is beliefs. A consumer may hold both positive beliefs toward an
object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is easily spilled and
stains papers). In addition, some beliefs may be neutral.
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Affect. Consumers also hold certain feelings toward brands or other objects. Sometimes these
feelings are based on the beliefs (e.g., a person feels nauseated when thinking about a
hamburger because of the tremendous amount of fat it contains), but there may also be
feelings which are relatively independent of beliefs.
Behavioral intention. The behavioral intention is what the consumer plans to do with respect to
the object (e.g., buy or not buy the brand). As with affect, this is sometimes a logical
consequence of beliefs (or affect), but may sometimes reflect other circumstances.
Changing affect. One approach is to try to change affect, which may or may not involve getting
consumers to change their beliefs. One strategy uses the approach of classical conditioning try
to "pair" the product with a liked stimulus. Finally, products which are better known, through the
mere exposure effect, tend to be better liked--that is, the more a product is advertised and
seen in stores, the more it will generally be liked, even if consumers to do not develop any
specific beliefs about the product.
Changing behavior. People like to believe that their behavior is rational; thus, once they use
our products, chances are that they will continue unless someone is able to get them to switch.
----One way to get people to switch to one brand is to use temporary price discounts and
coupons; however, when consumers buy a product on deal, they may justify the purchase
based on that deal (i.e., the low price) and may then switch to other brands on deal later. A
better way to get people to switch to our brand is to at least temporarily obtain better shelf
space so that the product is more convenient. Consumers are less likely to use this availability
as a rationale for their purchase and may continue to buy the product even when the product is
less conveniently located. (Notice, by the way, that this represents a case of shaping).
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Changing beliefs. Although attempting to change beliefs is the obvious way to attempt attitude
change, particularly when consumers hold unfavorable or inaccurate ones, this is often difficult
to achieve because consumers tend to resist. Several approaches to belief change exist:
Change currently held beliefs. It is generally very difficult to attempt to change beliefs that
people hold, particularly those that are strongly held, even if they are inaccurate.
Change the importance of beliefs.
Add beliefs. Consumers are less likely to resist the addition of beliefs so long as they do
not conflict with existing beliefs.
Change ideal. It usually difficult, and very risky, to attempt to change ideals, and only few
firms succeed.
* The Elaboration Likelihood Model (ELM) and Celebrity
Endorsements. The ELM suggests that consumers will scrutinize claims more in important
situations than in unimportant ones.
The ELM suggests that for "unimportant" products, elaboration will be low. However, for
products which are either expensive or important for some other reason elaboration is likely to
be more extensive, and the endorser is expected to be "congruent," or compatible, with the
product.
Appeal approaches. Several approaches to appeal may be used. The use of affect to induce
empathy with advertising characters may increase attraction to a product, but may backfire if
consumers believe that people‘s feelings are being exploited. Fear appeals appear to work
only if (1) an optimal level of fear is evoked--not so much that people tune it out, but enough to
scare people into action and (2) a way to avoid the feared stimulus is explicitly indicated.
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Humor appears to be effective in gaining attention, but does not appear to increase persuasion
in practice. In addition, a more favorable attitude toward the advertisement may be created by
humorous advertising, which may in turn result in increased sales. Comparative advertising,
which is illegal in many countries, often increases sales for the sponsoring brand, but may
backfire in certain cultures.
Self-Concept, Situational Influences, and Lifestyle
The self-concept. The consumer faces several possible selves. The actual self reflects how the
individual actually is, although the consumer may not be aware of that reality In contrast, the
ideal self reflects a self that a person would like to have, but does not in fact have. The private
self is one that is not intentionally exposed to others. The key here is to keep in mind which
kind of self one is trying to reach in promotional messages.
Individuals will often seek to augment and enhance their self concepts, and it may be possible
to market products that help achieve this goal.
Lifestyles. Self-concept often translates into a person‘s lifestyle, or the way that he or she lives
his or her life. Attempts have been made to classify consumers into various segments based
on their lifestyles. For example, both "Achievers" and "Strivers" want public recognition, but
only the Achievers have the resources to bring this about. A global analogue is the Global
Scan.
Situational influences. Specific circumstances often influence consumer behavior. Consumers
whose attention is demanded elsewhere are likely to disregard commercial messages.
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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 is done before an ad airs to gauge how well
it will perform and post-testing is done after an ad airs to determine the in-market impact of the
ad or campaign on the consumer. Continuous ad tracking and the Communiqués System are
competing examples of post-testing advertising research types.
RESEARCH METHODOLOGY
DEFINITION OF RESEARCH
The term research is also used to describe an entire collection of information about a particular
subject. Research is defined as human activity based on intellectual application in the
investigation of matter. The primary purpose for applied research is discovering, interpreting,
and the development of methods and systems for the advancement of human knowledge on a
wide variety of scientific matters of our world and the universe. Research can use the scientific
method, but need not do so.
Historical research is embodied in the historical method.
Aims and Objectives
The aims and objectives of this project report can be described with following aspects:
To study about the market potential and scope of advertisement
Now days.
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To study the preference of people towards various media of advertisement.
To study the advantages of advertisement for people and their occupation.
To know satisfaction level of people (customers).
To study the effect of advertisement on consumer buying behaviour.
To study influence of quality of prices over buying decision
To study the reason for the delay between purchase decision and actual decision.
One of the objectives is to determine the effect of advertisement over the demand for
the product.
TYPES OF RESEARCH
Quantitative research: - Quantitative research is descriptive and provides hard data on
the numbers of people exhibiting certain behaviors, attitudes, etc. It provides information in
breadth and allows you to sample large numbers of the population.
Qualitative research: - Qualitative research allows you to explore perceptions, attitudes
and motivations and to understand how they are formed. It provides depth of information which
can be used in its own right or to determine what attributes will subsequently be measured in
quantitative studies. Verbatim quotes are used in reports to illustrate points and this brings the
subject to life for the reader.
Secondary or desk research: - The collating and analysis of secondary data is called
desk research. Secondary data is data that already exists and may be found within your own
organization or is published by another party and readily available.
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RESEARCH DESIGN
Plan outlining how information is to be gathered for an assessment or evaluation that
includes identifying the data gathering method(s), the instruments to be used/created, how the
instruments will be administered, and how the information will be organized and analyzed.
TYPES OF RESEARCH DESIGN
1. Philosophical/discursive
This may cover a variety of approaches, but will draw primarily on existing literature, rather
than new empirical data. A discursive study could examine a particular issue, perhaps from an
alternative perspective (e.g. feminist). Alternatively, it might put forward a particular argument
or examine a methodological issue.
2. Literature review
This may be an attempt to summaries or comment on what is already known about a particular
topic. By collecting different sources together, synthesizing and analyzing critically, it
essentially creates new knowledge or perspectives. There are a number of different forms a
literature review might take.
3. Case study
This will involve collecting empirical data, generally from only one or a small number of cases.
It usually provides rich detail about those cases, of a predominantly qualitative nature. There
are a number of different approaches to case study work (e.g. ethnographic, hermeneutic,
estrogenic, etc) and the principles and methods followed should be made clear.
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4. Survey
Where an empirical study involves collecting information from a larger number of cases,
perhaps using questionnaires, it is usually described as a survey. Alternatively, a survey might
make use of already available data, collected for another purpose. A survey may be cross-
sectional (data collected at one time) or longitudinal (collected over a period). Because of the
larger number of cases, a survey will generally involve some quantitative analysis.
5. Evaluation
This might be an evaluation of a curriculum innovation or organizational change. An
evaluation can be formative (designed to inform the process of development) or summative (to
judge the effects). Often an evaluation will have elements of both. If an evaluation relates to a
situation in which the researcher is also a participant it may be described as ‗action research‘.
Evaluations will often make use of case study and survey methods and a summative
evaluation will ideally also use experimental methods.
6. Experiment
This involves the deliberate manipulation of an intervention in order to determine its effects.
The intervention might involve individual pupils, teachers, schools or some other unit. Again, if
the researcher is also a participant (e.g. a teacher) this could be described as ‗action
research‘.
DATA COLLECTION
Data collection is a term used to describe a process of preparing and collecting data -
for example as part of a process improvement or similar project. A method of data collection in
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which the situation of interest is watched and the relevant facts, actions and behaviors are
recorded.
PRIMARY DATA COLLECTION METHODS
In primary data collection, you collect the data yourself using methods such as
interviews and questionnaires. The key point here is that the data you collect is unique to you
and your research and, until you publish, no one else has access to it.
SECONDARY DATA COLLECTION METHODS
All methods of data collection can supply quantitative data (numbers, statistics or
financial) or qualitative data (usually words or text). Quantitative data may often be presented
in tabular or graphical form. Secondary data is data that has already been collected by
someone else for a different purpose to yours. For example, this could mean using:
HYPOTHESIS
When a prediction or a hypothesis relationship is to be tested by scientific methods it is termed
as research hypothesis. The research hypothesis is a predicted statement that related to the
independent variable to a dependent variable, which are not to be adjective verified or the
relationship that are assumed but not to be tested are termed as research hypothesis.
Null Hypothesis
According to my research report, there is positive impact of advertisement on consumer buying
behaviour.
Alternative Hypothesis
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According to my research report, there is negative impact of advertisement on consumer
buying behaviour.
Sample unit (customers)
Sample size (50)
Sample technique (random sampling)
RESEARCH INSTRUMENT
Questionnaire
SCOPE OF THE STUDY
This study shows the Market advertisement position of the company.
This study tries to focus on Market and Brand Image.
This study also tries to focus enhance the goodwill of the company.
This project study also focuses on importance of market survey and data analyzing.
In this project study, I try to develop overall idea of marketing Concept.
LIMITATIONS
This study might be suffering from limitation. Since it was a study for educational
purpose and time & resources were limited.
Sample size of 50 was small since it may not represent whole of India, the limitation of
the study are:-
Lack of time – Now a day‘s every person is so busy, that they do not spend their
time in providing information because the questionnaire was lengthy.
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Limitations of skills- There are so many respondents who don‘t understand the
sense of the questions that is why inadequate information is observed.
Restricted geographical area: Survey was conducted In Moradabad where
awareness of people is not too much. But this might not be the case in whole India
covering metro cities and Rural and urban areas.
An error may have been due to sample taken not confirming to the actual population.
This is because the sample is random sample.
There are some other limitations which affect the result like incorrect information is
provided by the consumer.
FINDINGS
After the analysis of data collection in Moradabad city following conclusions were
drawn:
Customers are price sensitive
50% customers are affected by advertisement.
70% of the consumers are affected by T.V., 20% Newspaper, 4% through their own
choice & wish, and 6% through hoardings.
Traditional advertising is about to over now i.e. 64% people likes multimedia
advertisement and 36% traditional advertisement.
Almost all the respondents said that advertisement increases the cost of product i.e.
70%.
84% of people said that they wait for market responses and that is the reason for
delay between their purchase decision and actual purchase.
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FINDINGS AND ANALYSIS
1. Do you watch advertisement?
(a) Yes 45
(b) No 05
2. Does advertisement affect your purchase decision?
(a) Yes 30
05
10152025303540
45
YES
NOa)
b)
45
5
No. of Persons
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(b) No 20
3. Are you branding loyal?
(a) Yes 35
0
5
10
15
20
25
30
35
YES NO
a) b)
No. of Persons
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(b) No 15
4. Does advertisement shifts you from brand loyalty?
0
5
10
15
20
25
30
35
YES NO
a) b)
No. of Persons
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(a) Yes 40
(b) No 10
5. From which source your buying decision is affected?
(a) T.V. 35
0
5
10
15
20
25
30
35
40
YES NO
a) b)
Series1
No. of Persons
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(b) Newspaper 10
(c) Hoardings 03
(d) By own choice 02
6. Which type of advertisement you prefer?
(a) Traditional Advertisement 18
0
5
10
15
20
25
30
35
40
T.V. Hoardings Newspaper By own choice
a) b) c) d)
Series1
No. of Persons
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(b) Multimedia Advertisement 32
7. Is there Influence of Price on purchase decision?
(a) Agree 42
0
5
10
15
20
25
30
35
Traditional Advertising Multimedia Advertising
No. of Persons
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(b) Disagree 08
8. According to you, which media of advertisement is best:
(a) T.V. 30
0
5
10
15
20
25
30
35
40
45
Agree Disagree
No. of Persons
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(b) Newspaper 09
(c) Hoarding 06
(d) Magazine 05
9. Does advertisement are effective in influencing consumers?
(a) Yes 39
0
5
10
15
20
25
30
35
(a) T.V. (b) Newspaper (c) Hoarding (d) Magazine
%
No. of Persons
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(b) No 11
10. Do you think advertisement convert non users into users?
(a) Yes 45
0
5
10
15
20
25
30
35
40
45
YES NO
No. of Persons
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(b) No 05
11. Do you think advertisement works as a catalyst to increase competition?
(a) Yes 50
0
5
10
15
20
25
30
35
40
45
50
YES NO
No. of Persons
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(b) No 0
12. Do you agree advertisement increases the demand for the product?
(a) Agree 30
0
5
10
15
20
25
30
35
40
45
50
YES NO
Series1
No. of Persons
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(b) Disagree 06
(c) Strongly agree 10
(d) Can‘t say 05
13. Is there influence of quality on purchase decision?
(a) Agree 36
0
5
10
15
20
25
30
(a) Agree (b) Disagree (c) Stronglyagree
(d) Can’t say
No. of Persons
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(b) Disagree 04
(c) Strongly agree 10
(d) Strongly disagree 0
14. Do you think advertisement is an effective tool for sales performance?
(a) Yes 48
0
5
10
15
20
25
30
35
40
(a) Agree (b) Disagree (c) Strongly agree (d) StronglyDisagree
No. of Persons
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(b) No 02
YES NO
48
2
No. of Persons
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15. What you think the cost of advertisement increases the cost of product?
(a) Yes 33
(b) No 17
16. What is the reason for the delay between purchase decision and the actual
purchase?
0
5
10
15
20
25
30
35
YES NO
No. of Persons
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(a) Financial Constraints 6
(b) Waiting for more innovative product 2
(c) Waiting for market response 42
RECOMMENDATIONS
0
5
10
15
20
25
30
35
40
45
(a) FinancialConstraints
(b) Waiting for moreinnovative product
(c) Waiting formarket response
No. of Persons
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Ads should be such that the buyers must be satisfied for what they are paying after
influencing from these ads.
More emphasis should be done on multimedia advertising.
Most of the ads should be given on TV as TV is the popular media of advertising.
Advertisements should be eye catching so that customers (viewers) easily get
attracted towards advertisement.
Advertisements should be of good taste and not of bad taste.
WEBLIOGRAPGY
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I have referred the following books and website as the source of my information for completing
this report.
Books:
Research Methodology : Kothari C.R
Marketing Management : Philip Kotler
Consumer behaviour : L.M Prasad
QUESTIONNAIRE
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Dear Respondent,
I am student of BBA, conducting a survey on “Advertisement Effect on Consumer Buying
Behaviour” kindly spare few minutes to fill up this questionnaire. I would be highly thankful to
you.
1. Do you watch advertisement?
(a) Yes (b) No
2. Does advertisement affect your purchase decision?
(a) Yes (b) No
3. Are you branding loyal?
(a) Yes (b) No
4. Does advertisement shifts you from brand loyalty?
(a) Yes (b) No
5. From which source your buying decision is affected?
(a) T.V. (b) Newspaper
(c) Hoardings (d) by own choice
6. Which type of advertisement you prefer?
(a) Traditional Advertisement (b) Multimedia Advertisement
7. Is there Influence of Price on purchase decision?
(a) Agree (b) Disagree
8. According to you, which media of advertisement is best?
(a) T.V. (b) Newspaper (c) Hoarding (d) Magazine
9. Does advertisement are effective in influencing consumers?
(a) Yes (b) No
10. Do you think advertisement convert non users into users?
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(a) Yes (b) No
11. Do you think advertisement works as a catalyst to increase competition?
(a) Yes (b) No
12. Do you agree advertisement increases the demand for the product?
(a) Agree (b) Disagree
(c) Strongly agree (d) can‘t say
13. Is there influence of quality on purchase decision?
(a) Agree (b) Disagree
(c) Strongly agree (d) Strongly Disagree
14. Do you think advertisement is an effective tool for sales promotion?
(a) Yes (b) No
15. What you think the cost of advertisement increases the cost of product?
(a) Yes (b) No
16. What is the reason for the delay between purchase decision and the actual
purchase?
(a) Financial Constraints (b) Waiting for more innovative product
(c) Waiting for market response
Respondent Profile:
Name :
Age group : 15-20 ( ) 20-25 ( ) 25-30 ( )
30-35 ( ) 35-40 ( ) 40 above ( )
Sex : Male ( ) Female ( )
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Occupation : Student ( ) Teacher ( ) Business ( )
Marital Status : Married ( ) Unmarried ( )
Address:
Phone Number:
E-Mail, if any:
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Appendix