Effect of Advertisements


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Effect of Advertisements

  1. 1. SAAB MARFIN MBA Research MethodologyStatement of the ProblemThrough this report we want to find out how children are influenced by theadvertisements especially of confectionary products. So the statement of thisproject would be ‘Effect of Advertisements on Children with special reference toconfectionary products’The research process goes within the following confectionary products: Biscuits Chocolates Wafers Noodles Sauces Health DrinksObjectives of the StudyThe subject matter for this Project is to study the effects of advertisement onchildren. Following are the main objectives of this report. To know the childrens awareness about confectionary Products & their advertisements. To study the impact of advertisement of confectionary Products on children. To know whether is there any connection between TV watching habit of children and their medium of study or not.Research DesignResearch design selected for this project is Descriptive.‘ Effect of Advertisements on Children with special reference to confectionary products’ 1
  2. 2. SAAB MARFIN MBAScope:The research will be done at Ahmedabad city only.Sampling Plan:-Target Population : - Target population for this research would be children with age of 8-15 and their parents.Sample Unit : - Sample unit for this research would be children with age of 8-15 and their parents of a selected area.Sampling Technique : - Stratified Random SamplingSample Size : - 300 (150 children and 150 parents)Sampling Methods:There are mainly two of sampling methods which are being used by the marketers: 1. Probability Sampling (Random Sampling) 2. Non – probability SamplingProbability sampling is a method for drawing a sample from a population such thatall possible samples have a known and specified probability of being drawn. Non probability sampling is a sampling procedure in which the selection ofpopulation elements is based in part on the judgment of the researcher or fieldinterviewer. The sampling method for this report would be probability sampling becausehere each sample has equal chance of being selected and again it would bestratified random samplingData Collection Method:‘ Effect of Advertisements on Children with special reference to confectionary products’ 2
  3. 3. SAAB MARFIN MBAThere are mainly two types of data collection methods which are as follows: Primary DataPrimary Data is the one that is being collected by the researcher itself and is beingcollected for the first time. Researcher has collected this data with a specificpurpose of studying the problem.Primary Data in the research process would be collected by filling up questionnairesfrom children and their parents. Secondary DataSecondary Data is the data that already exists and in ready to use format andgathered by somebody else. This data can be in the form of articles in magazines,journals, government reports or any other historical data. It might even be thedifferent articles in newspaper and on the internet blogs. Secondary Data that would be used by researcher in the research process assupportive documents are from the various newspaper articles, magazines relatedto specific industry, books in the specific field of advertising and various differentinternet sites.Instrument:-The instrument selected for the primary data is structured questionnaire.Tentative plan:-The tentative plan for this research would be as following. Research methodology Advertising Industry Indian Advertising Industry Children and Advertising Rules and Regulations of Advertising to Children Analysis of Primary Data‘ Effect of Advertisements on Children with special reference to confectionary products’ 3
  4. 4. SAAB MARFIN MBA Testing of Hypothesis Key Findings Suggestions Conclusion Bibliography AnnexureExpected contribution of the studyThe research or study will help to understand how children are influenced by theadvertisements of confectionary products.BeneficiariesBeneficiaries of this research would be researchers, students & the company withconfectionary products.LimitationsThe major barriers in conducting the survey are: 1. Time Limitation 2. Financial Limitations 3. Geographical Limitations1. Time Limitations For a researcher time has always worked as a barrier to his/her researchprocess. As we are conducting the survey in the different schools of Ahmedabadcity and observing the students aging between 8 years to 15 years, time has alwaysworked as a limitation to the research process2. Financial Limitations‘ Effect of Advertisements on Children with special reference to confectionary products’ 4
  5. 5. SAAB MARFIN MBAAnother major limitation for this study is financial limitation. Finance is the majorlimitation for any study. Again for this study finance does matter to the researcherto some extent.3. Geographic LimitationsAs we all know that Ahmedabad is becoming a mega city. It covers big number ofpeople living in the area. There are thousands of primary schools where thestudents are studying. Also the weather of Ahmadabad city is very hot and hence itis impractical to work for more than 3 to 4 hours a day in field. (Because childrencan be interviewed either at the school opening time or the recess time or theschool closing time only). ADVERTISING INDUSTRY‘ Effect of Advertisements on Children with special reference to confectionary products’ 5
  6. 6. SAAB MARFIN MBA 2.1 What is Advertising?Advertising is a form of communication intended to persuade its viewers, readersor listeners to take some action. It usually includes the name of a product orservice and how that product or service could benefit the consumer, to persuadepotential customers to purchase or to consume that particular brand. Modernadvertising developed with the rise of mass production in the late 19th and early20th centuries. Commercial advertisers often seek to generate increased consumption oftheir products or services through branding, which involves the repetition of animage or product name in an effort to associate related qualities with the brand inthe minds of consumers. Different types of media can be used to deliver thesemessages, including traditional media such as newspapers, magazines, television,radio, outdoor or direct mail. Advertising may be placed by an advertising agencyon behalf of a company or other organization. Organizations that spend money on advertising promoting items other than aconsumer product or service include political parties, interest groups, religious‘ Effect of Advertisements on Children with special reference to confectionary products’ 6
  7. 7. SAAB MARFIN MBAorganizations and governmental agencies. Nonprofit organizations may rely on freemodes of persuasion, such as a public service announcement. 2.2 HistoryAs education became an apparent need and reading, as well as printing, developedadvertising expanded to include handbills. In the 17th century advertisementsstarted to appear in weekly newspapers in England. These early printadvertisements were used mainly to promote books and newspapers, whichbecame increasingly affordable with advances in the printing press; and medicines,which were increasingly sought after as disease ravaged Europe. However, falseadvertising and so-called "quack"(fake) advertisements became a problem, whichushered in the regulation of advertising content. As the economy was expanding during the 19th century, advertising grewalongside. In the United States, classified ads became even more popular, fillingpages of newspapers with small print messages promoting all kinds of goods. In1843, the first advertising agency was established by Volney Palmer in Philadelphia.At first, agencies were brokers for ad space in newspapers. N.W. Ayer & Son was‘ Effect of Advertisements on Children with special reference to confectionary products’ 7
  8. 8. SAAB MARFIN MBAthe first full-service agency to assume responsibility for advertising content. It wasalso the first agency to charge a commission on ads. In June 1836, French newspaper La Presse was the first to include paidadvertising in its pages, allowing it to lower its price, extend its readership andincrease its profitability and the formula was soon copied by all titles. In the early 1920s, the first radio stations were established by radioequipment manufacturers and retailers who offered programs in order to sell moreradios to consumers. As time passed, many non-profit organizations followed suitin setting up their own radio stations, and included: schools, clubs and civic groups.When the practice of sponsoring programs was popularized, each individual radioprogram was usually sponsored by a single business in exchange for a briefmention of the business name at the beginning and end of the sponsored shows.However, radio station owners soon realized they could earn more money by sellingsponsorship rights in small time allocations to multiple businesses throughouttheir radio stations broadcasts, rather than selling the sponsorship rights to singlebusinesses per show. The radio station owners soon realized they could earn more money byselling sponsorship rights to other businesses. In those days, each show wasusually sponsored by a single business, in exchange for a brief mention of thesponsor at the beginning and end of the show. This practice was carried over totelevision in the late 1940s and early 1950s. However, a fierce battle was fought between those seeking to commercializethis new medium and the people who argued that the radio spectrum should beconsidered the commons, to be used only non-commercially and for the publicgood. In Canada, advocates like Graham Spry were able to convince the governmentto adopt a socialist funding model. England followed suit with the development ofthe BBC. However in the United States, the capitalist model prevailed with thepassage of the 1934 Communications Act which created the Federal‘ Effect of Advertisements on Children with special reference to confectionary products’ 8
  9. 9. SAAB MARFIN MBACommunications Commission. To placate the socialists, the U.S. Congress didrequire that commercial broadcasters operate in the "public interest, convenience,and necessity". However public radio certainly exists in the United States. In the early 1950s, the Dumont television network began the modern trendof selling advertisement time to multiple sponsors. Dumont had trouble findingsponsors for many of their programs and compensated by selling smaller blocks ofadvertising time to several businesses. This eventually became the norm for thecommercial television industry in the United States. However, it was still a commonpractice to have single sponsor shows, such as the U.S. Steel Hour. In someinstances the sponsors exercised great control over the content of the show - up toand including having ones advertising agency actually writing the show. The singlesponsor model is much less prevalent now, a notable exception being the HallmarkHall of Fame. The 1960s saw advertising transform into a modern approach in whichcreativity was allowed to shine, producing unexpected messages that madeadvertisements more tempting to consumers eyes. The Volkswagen adcampaign—featuring such headlines as "Think Small" and "Lemon" ushered in theera of modern advertising by promoting a "position" or "unique selling proposition"designed to associate each brand with a specific idea in the reader or viewers mind.This period of American advertising is called the Creative Revolution and itsarchetype was William Bernbach who helped create the revolutionary Volkswagenads among others. Some of the most creative and long-standing Americanadvertising dates to this period. The late 1980s and early 1990s saw the introduction of cable television andparticularly MTV. Pioneering the concept of the music video, MTV ushered in a newtype of advertising. As cable and satellite television became increasingly prevalent,specialty channels emerged, including channels entirely devoted to advertising,such as QVC, Home Shopping Network, and ShopTV Canada.‘ Effect of Advertisements on Children with special reference to confectionary products’ 9
  10. 10. SAAB MARFIN MBA Marketing through the Internet opened new frontiers for advertisers andcontributed to the "dot-com"(.com) boom of the 1990s. Entire corporationsoperated solely on advertising revenue, offering everything from coupons to freeInternet access. At the turn of the 21st century, a number of websites including thesearch engine Google, started a change in online advertising by emphasizingcontextually relevant, unobtrusive ads intended to help, rather than inundate, users.This has led to a plethora of similar efforts and an increasing trend of interactiveadvertising. The share of advertising spending relative to GDP has changed little acrosslarge changes in media. For example, in the U.S. in 1925, the main advertisingmedia were newspapers, magazines, signs on streetcars, and outdoor posters.Advertising spending as a share of GDP was about 2.9 percent. By 1998, televisionand radio had become major advertising media. Nonetheless, advertising spendingas a share of GDP was slightly lower—about 2.4 percent. A recent advertising innovation is "guerrilla marketing", which involveunusual approaches such as staged encounters in public places, giveaways ofproducts such as cars that are covered with brand messages, and interactiveadvertising where the viewer can respond to become part of the advertisingmessage. Guerrilla advertising is becoming increasing more popular with a lot ofcompanies. This type of advertising is unpredictable and innovative, which causesconsumers to buy the product or idea. This reflects an increasing trend ofinteractive and "embedded" ads, such as via product placement, having consumersvote through text messages, and various innovations utilizing social networkservices such as MySpace .‘ Effect of Advertisements on Children with special reference to confectionary products’ 10
  11. 11. SAAB MARFIN MBA 2.3 Changing scenario of advertisingMarketing through advertising is considered an important variable in the globalbusiness. Advertising is second only to films as far as its influence on the society isconcerned. History bears testimony to the fact that the great Romans practicedadvertising. Their surnames indicated their occupation. The potentialities ofadvertising multiplied when manual press was invented in the 15th century. Afterthat the demand has been increasing. Advertising is, in fact, the most influential and powerful medium in thepresent commercial society. It creates an entire worldview, shaping our attitude andbeliefs. Advertisements pervade every aspect of our life and most of us are hardlyaware of it. In the movement for equal status and fair treatment to women, animportant part is attributed to the mass media, particularly to electronic media. The central position of media in daily life ensures its role in advertisingbusiness. The meanings that are created by media are not fixed, but they varyaccording to cultural, historical and social context of the people concerned. Thecommon man judges the products on the basis of the understanding his societyand culture has inculcated into them. Symbolism is one of the major aspects of advertisement and it is to be notedthat a change has occurred in this context. Use of women to promote a concept orproduct is increasing day by day. In the advertisement world, advertisers havepicked up women for advertising of consumer commodities. Women are used in TVcommercials as weapon of persuasion.‘ Effect of Advertisements on Children with special reference to confectionary products’ 11
  12. 12. SAAB MARFIN MBA Women in many cultures make the majority of consumption decisions; hencethey are important target of these advertisers. So the advertisers find it easier tosell the product by using the same gender. But most of these ads hardly needwomen as models. For example, there is no need to ask females to do an ad for amen’s shaving cream. The list is uncountable. Most of the companies want toattract the consumers by using the physical look of the models. They have createda world of fantasy. And we are drawn towards that world without realizing muchabout the realities of life. We try to imitate whatever is shown on the Television.The media must play the role of a watchdog in such a situation.‘ Effect of Advertisements on Children with special reference to confectionary products’ 12
  13. 13. SAAB MARFIN MBA 2.4 Types of advertisingVirtually any medium can be used for advertising. Commercial advertising mediacan include a wall paintings, billboards, street furniture components, printed flyersand rack cards, radio, cinema and television adverts, web banners, mobiletelephone screens, shopping carts, web popup, skywriting, bus stop benches,human billboards, magazines, newspapers, sides of buses, banners attached to orsides of airplanes ("logojets"), in-flight advertisements on seatback tray tables oroverhead storage bins, taxicab doors, roof mounts and passenger screens, musicalstage shows, subway platforms and trains, doors of bathroom stalls, stickers onapples in supermarkets, shopping cart handles (grabertising), the opening sectionof streaming audio and video, posters, and the backs of event tickets andsupermarket receipts. Any place an "identified" sponsor pays to deliver theirmessage through a medium is advertising.TelevisionThe TV commercial is generally considered the most effective mass-marketadvertising format, as is reflected by the high prices TV networks charge forcommercial airtime during popular TV events. The annual Super Bowl football gamein the United States is known as the most prominent advertising event on television.The average cost of a single thirty-second TV spot during this game has reachedUS$3 million (as of 2009).‘ Effect of Advertisements on Children with special reference to confectionary products’ 13
  14. 14. SAAB MARFIN MBA The majorities of television commercials feature a song or jingle thatlisteners soon relate to the product. Virtual advertisements may be inserted into regular television programmingthrough computer graphics. It is typically inserted into otherwise blank backdropsor used to replace local billboards that are not relevant to the remote broadcastaudience. More controversially, virtual billboards may be inserted into thebackground where none exist in real-life. Virtual product placement is alsopossible.InfomercialsAn infomercial is a long-format television commercial, typically five minutes orlonger. 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 productthrough the advertised toll-free telephone number or website. Infomercialsdescribe, display, and often demonstrate products and their features, andcommonly have testimonials from consumers and industry professionals.Radio advertisingRadio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcasted as radio waves to the air from atransmitter to an antenna and a thus to a receiving device. Airtime is purchasedfrom a station or network in exchange for airing the commercials. While radio hasthe obvious limitation of being restricted to sound, this becomes its majordisadvantage.Press advertising‘ Effect of Advertisements on Children with special reference to confectionary products’ 14
  15. 15. SAAB MARFIN MBAPress advertising describes advertising in a printed medium such as a newspaper,magazine, or trade journal. This encompasses everything from media with a verybroad readership base, such as a major national newspaper or magazine, to morenarrowly targeted media such as local newspapers and trade journals on veryspecialized topics. A form of press advertising is classified advertising, whichallows private individuals or companies to purchase a small, narrowly targeted adfor a low fee advertising a product or service.Online advertisingOnline advertising is a form of promotion that uses the Internet and World WideWeb for the expressed purpose of delivering marketing messages to attractcustomers. Examples of online advertising include contextual ads that appear onsearch engine results pages, banner ads, in text ads, Rich Media Ads, Socialnetwork advertising, online classified advertising, advertising networks and e-mailmarketing, including e-mail spam.Billboard advertisingBillboards are large structures located in public places which displayadvertisements to passing pedestrians and motorists. Most often, they are locatedon 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 ason mass transit vehicles and in stations, in shopping malls or office buildings, andin stadiums.Mobile billboard advertisingThe RedEye newspaper advertised to its target market at North Avenue Beach with asailboat 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‘ Effect of Advertisements on Children with special reference to confectionary products’ 15
  16. 16. SAAB MARFIN MBAroutes 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 arestatic, while others change; for example, continuously or periodically rotatingamong a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughoutthe world, including: Target advertising One-day, and long-term campaigns Conventions Sporting events Store openings and similar promotional events Big advertisements from smaller companies OthersIn-store advertisingIn-store advertising is any advertisement placed in a retail store. It includesplacement of a product in visible locations in a store, such as at eye level, at theends of aisles and near checkout counters, eye-catching displays promoting aspecific product, and advertisements in such places as shopping carts and in-storevideo displays.Covert advertisingCovert advertising, also known as guerrilla advertising, is when a product or brandis embedded in entertainment and media. For example, in a film, the maincharacter can use an item or other of a definite brand, as in the movie MinorityReport, where Tom Cruises character John Anderton owns a phone with the Nokialogo 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‘ Effect of Advertisements on Children with special reference to confectionary products’ 16
  17. 17. SAAB MARFIN MBAby Will Smith mentions his Converse shoes several times, calling them "classics,"because the film is set far in the future. I, Robot and Spaceballs also showcasefuturistic cars with the Audi and Mercedes-Benz logos clearly displayed on thefront 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 arefeatured in recent James Bond films, most notably Casino Royale. In "Fantastic Four:Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo onthe front. Blade Runner includes some of the most obvious product placement; thewhole film stops to show a Coca-Cola billboardCelebritiesThis type of advertising focuses upon using celebrity power, fame, money,popularity to gain recognition for their products and promote specific stores orproducts. Advertisers often advertise their products, for example, when celebritiesshare their favorite products or wear clothes by specific brands or designers.Celebrities are often involved in advertising campaigns such as television or printadverts 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. Forexample, following his performance of eight gold medals at the 2008 OlympicGames in Beijing, China, swimmer Michael Phelps contract with Kelloggs wasterminated, as Kelloggs did not want to associate with him after he wasphotographed smoking marijuana 2.5 Recent Trends in Advertising Internet Advertising‘ Effect of Advertisements on Children with special reference to confectionary products’ 17
  18. 18. SAAB MARFIN MBA Internet Marketing is the online advertisement and selling of products,services or businesses through the Internet. Online advertising is possible only ifone has its own website. Having a website for a particular business is worthlessuntil and unless people know about your business and put their trust and likingson services that you provide. So, having a website is just like having a shop, ifpeople find you, they obviously visit it, and visit it again if they find it reallyinteresting. Internet Advertising is the latest and most effective method of businesspromotion. It is necessary to help people find you more easily, know your presence,know more about the services and products that you offer and assure people whatreal difference you can bring about in comparison to other similar service providers.To make your website worth interesting, different Website advertising strategiesare available today, such as, pay per click advertising, banner advertising, emailmarketing, search engine marketing through search engine optimization, affiliate,article, blog and interactive marketing services. If these strategies are dealtattentively, then you can experience the difference that online business can bringon your business. There are 26 million Internet users in India, largely in the age group of 20 to40 - a target-base for Indias rapid growth advertising industry is increasinglylooking at. Its reboot time for Indian advertising with predictions that the onlinesegment is likely to cross the 100 million dollar mark by 2010, according to a studyby MSN. Indias advertising industry generates about 2.2 billion dollars annually,according to industry sources. Currently, online advertising comprises less thanone per cent of the pie. The total spending for 2004-2005 was about 18 milliondollars, but the Indian Online Association (IOA), predicts this will touch 57 millionin 2006-2007.‘ Effect of Advertisements on Children with special reference to confectionary products’ 18
  19. 19. SAAB MARFIN MBA Internet is increasingly a part of the media mix for advertisers as they realizeits high potential in reach and penetration. Print and television still hog a majorshare of Indian advertising at 700 to 920 million dollars annually. But digitaladvertising industry players point out that television too saw a sluggish beginningand then exploded as cable TV entered the arena. So whats holding back the onlineadvertising boom? It’s the unfamiliarity with the new medium, a lack ofunderstanding of its reach and potential, a fear of venturing into a new area. Thelimited reach of Internet - it has only 26 million users in a country of one billion -is another reason. The mobile industry has far overtaken Internet with a user baseof 50 million in India and is growing by the day. Unlike print and TV, the consumer can decide when and how he wants to beexposed to a campaign, and the advertiser too can filter targets in terms of groupsand locales. The Internet has great cost advantage as well. The cost per 1,000reach is very effective when compared to other media. Finance is the main sectorgoing for Internet advertising in India. Most in the advertising industry agree thattoday even a brilliant campaign has a vital element missing if there is no Internetpresence. Leading portals in India like Rediff, Yahoo and MSN are also seeing a revival.Rediff saw an increase of over 70 per cent in online revenue on its India operationsin 2004. It largely comprised advertising and fee-based services like onlinesubscriptions, mobile downloads and online shopping. And there were more thantwo dozen first time advertisers the same year. Yahoo! India saw a 100 per centgrowth in advertising in 2004. Indiatimes.com, the online operations of one ofIndias leading media groups estimated total advertising on its site to be around3.5-4.6 million U.S. dollars in 2004. All top advertising agencies in India from JWT,Lowe Lint’s, O&M and Mudra have interactive arms or links with the same.‘ Effect of Advertisements on Children with special reference to confectionary products’ 19
  20. 20. SAAB MARFIN MBA Internet Users in India: Year Users Usage Source 1998 14,00,000 ITU 1999 28,00,000 ITU 2000 55,00,000 ITU 2001 70,00,000 ITU 2002 1,65,00,000 ITU 2003 2,25,00,000 ITU 2004 3,92,00,000 C.I.Almanac 2005 5,06,00,000 C.I.Almanac 2006 4,00,00,000 IAMAI 2007 4,20,00,000 Internet world star‘ Effect of Advertisements on Children with special reference to confectionary products’ 20
  21. 21. SAAB MARFIN MBA Mobile AdvertisingMobile advertising in India is at a very nascent stage compared to markets likeJapan, Korea and West, but many are reported to be preparing to get into the act.“The future for mobile advertising is already here, despite not being on manymarketers’ radars yet. Hundreds of millions of ads are already being run,click-through rates are much higher than online. The growth of 3G networks, IPTVand high end gaming on mobile phones will open new avenues for advertising onmobile. The size of mobile advertising in India is miniscule, it has potential to growat 200% a year, giving operators a new revenue source. With the average revenueper user (ARPU) constantly falling, it could be a saving grace for operators. From Rs356 in March last year, the ARPU in December 2006 has declined by 115 to touchRs 316. The worldwide mobile advertising market is pegged at $1 billion currently.IDC believes with more than two billion mobile users in the world, it prevails as thefirst medium through which advertisers can reach such a large audience on anindividual basis. In India, it is currently a Rs 5-6 crore market, set to grow to Rs 20-25 croreby March 2008. It is clearly a medium that needs to be evangelised to brands ashow Internet advertising was done to brands in early 2000 - 2001. Mobileadvertising can take many forms like SMS broadcast, MMS broadcast, sponsoredcontent, WAP ads and product placement in games. Currently, it is restricted to SMSbased activities in the country. Some FMCG, beverage and entertainment companieshave tested MMS too and few operators have also tried to get sponsorship revenuefrom value added services. Seeing the huge potential of mobile advertising in future, operators likeBharti Airtel, MTNL, Reliance and Tata Teleservices are exploring the option, butfeel it will take some time for the format to take off in the country in a big way.‘ Effect of Advertisements on Children with special reference to confectionary products’ 21
  22. 22. SAAB MARFIN MBA Targeted mobile advertising is 50% more acceptable to mobile internet usersthan untargeted ads, according to the consumer mobile advertising reportconducted with more than 1,200 mobile internet users across the US, Europe andIndia. As 70% of the SMSes have less than 40 characters, value added servicesprovider Cellebrum has come up with a solution where micro advertisements areinserted into the text messages of subscribers who opt-in to the programme inexchange for incentives such as free SMS or reduced tariffs. In the not too distant future, we will have the freedom to choose whether wewish to pay for our mobile calls or have it free. Soon enough we will be given a freemobile phone and be allowed to make and receive calls for free provided we arewilling to pay with our attention to short advertising messages while using thesephone. For instance, when we answer or make a call, before we get connected, wewill hear the advertising message. This message will more than likely be of someinterest to us because the advertiser would have information about who we arebased on what content we subscribe to from the ocean of published content. Freelance advertisingIn freelance advertising, companies hold public competitions to create ads for theirproduct, the best one of which is chosen for widespread distribution with a prizegiven to the winner(s). During the 2007 Super Bowl, Pepsico held such a contest forthe creation of a 30-second television ad for the Doritos brand of chips, offering acash prize to the winner. Chevrolet held a similar competition for their Tahoe lineof SUVs. This type of advertising, however, is still in its infancy. It may ultimatelydecrease the importance of advertising agencies by creating a niche forindependent freelancers Embedded advertisingEmbedded advertising or in-film ad placements are happening on a larger scalenow than ever before. Films like Krish had over a dozen placements including‘ Effect of Advertisements on Children with special reference to confectionary products’ 22
  23. 23. SAAB MARFIN MBABournvita, Samsung, Faber Castell and Hero Honda. Shift in Message from Product Features to Consumer BenefitsA common rule in the advertising industry is the “one message” strategy. In short,it is based on the premise that one unique selling proposition (USP) is effective.This reflects concerns over how communicating a multitude of messages in a singleadvertisement may easily distract consumers and cause difficulties inunderstanding the underlying message, thus weakening the advertisement’s effects.So, a common and frequently made mistake made in current commercials is thatthey often end up communicating product features while obscuring their messageand emphasizing technological prowess. In particular, this trend was noticeable inindustries where technological capability was a differentiating point and complexfunctions were the competitive edge. Recent successful commercials have instead adopted a strategy of softappeal focused on consumer benefits, rather than one of hard appeal,communicating product characteristics. The keys to success for theseadvertisements have been the use of consumer language and attractive imageswhen communicating features and technologies. Selecting a simple and clearmessage as well as delivering messages focusing on consumers benefits is helpfulto raise message appeal, brand awareness and brand power.‘ Effect of Advertisements on Children with special reference to confectionary products’ 23
  24. 24. SAAB MARFIN MBA 2.6 The Role of Advertising:Advertising is the means by which goods or services are promoted to the public.The advertiser’s goal is to increase sales of these goods or services by drawingpeople’s attention to them and showing them in a favorable light. The mission ofadvertiser is to reach prospective customers and influence their awareness,attitudes and buying behavior. They spend a lot of money to keep individuals(markets) interested in their products. To succeed, they need to understand whatmakes potential customers behave the way they do.For advertising to exist, a number of factors have to be in place The goods and services to be advertised‘ Effect of Advertisements on Children with special reference to confectionary products’ 24
  25. 25. SAAB MARFIN MBA Competition between different providers of the same kinds of goods and services, for which there needs to be a significant potential market The means of advertising cheaply to large numbers of people A population with sufficient education to be able to understand advertising messages Advertising is a marketing function, and Kotler claims that advertising canhave a number of different, possible objectives. One objective can be to informcustomers about new product or a price change. The main objective here is to buildprimary demand. Another objective can be to persuade the customer to purchasethe product. The use advertising as a way to build preference and to encouragecustomers to change brand. The fundamental purpose of advertising is to influencepeople to purchase various goods and products. In this sense advertising is aphenomenon that aims to persuade or influence people. What is the role of advertising in the demand function? One response of thisquestion is that a company can sell more of its product by informing consumersabout the product. The information may include its existence, price, promotion,quality, etc. Therefore advertising is seen as providing information to consumers.The other response is that advertising searches the way of persuading consumersto purchase the advertised products by appeals to snobbery, associations of theproduct with favored people or situations, repetition of the same message and soon. Advertising shows the last style and the new popular products in the market. Itdisplays ideal individuals wearing the new clothes and looking good. Customers arejealous of this perfection. So that, they go out and purchase in hopes of reachingperfection. There is a time dimension at advertising. Advertisement’s influence on salesis immediate (i.e. it is mostly felt within seven days of an advertisement’s exposure).A repetition of such effects, measured at the end of a year, amounts to a‘ Effect of Advertisements on Children with special reference to confectionary products’ 25
  26. 26. SAAB MARFIN MBAmedium-term influence. The immediate influence of advertising on sales plays agatekeeper role to all further effects. Without it there will not be medium termeffect (i.e. a repetition of short-term effects); and long-term effect. Advertisement’s full effect can be only valued if its long-term influence is taken into account aswell as its short and medium-term effects on sales. These terms make it possibleto evaluate the productivity of an advertising campaign; to measure if the campaignshows a financial return on the investment and is thus accountable According to Doole & Lowe (2004), advertising is the most important part ofthe whole marketing strategy. There are many channels of media to use foradvertising, for example television, printed media, radio, cinema, outdoor andtransport poster. Marketers use television as the most powerful medium ofcommunication. 2.7 Leading Advertising agencies in the worldHere is the rundown of the top 10 advertising agencies that made significant markin the advertising business and has pioneered the known best practices in theadvertising industry.‘ Effect of Advertisements on Children with special reference to confectionary products’ 26
  27. 27. SAAB MARFIN MBA1. BBDO Worldwide, United StatesBBDO Worldwide is one of the major three networks under the umbrella ofOmnicom. BBDO Worldwide has long been recognized as the most prestigiousadvertising network globally. Its estimated total revenues for 2008 amount to$2.0B.2. McCann Erickson, United StatesMcCann Erickson is the largest agency with global coverage. Its main businessfocuses on traditional advertising operations. It also offers a range of innovativemarketing services under the umbrella company known internationally as McCannWorld group. Its estimated total revenues for 2008 amount to $1.7 B.3. DDB Worldwide, United StatesDDB is one of the triumvirate networks under the portfolio of Omnicom. Itmaintains a lower profile compared to the other two networks that form thetriumvirate network of Omnicom. Its estimated revenues for 2008 are at $1.5 B4. TBWA Worldwide, United StatesTBWA Worldwide completes the triumvirate of networks under the Omnicomadvertising group. It is more on the non-traditional lines and usually dabbles onthe “quirky” side of the business. Its total revenues for 2008 are estimated to havereached $1.4 B.5. Euro RSCG Worldwide, FranceEuro RSCG Worldwide is one of the two major advertising agencies in France. Itsglobal reach covers about 75 countries. After growing through some organizationalchallenges, Euro RSCG Worldwide returned to the global scene under a newmanagement group and immediately earned recognition in major publication in the‘ Effect of Advertisements on Children with special reference to confectionary products’ 27
  28. 28. SAAB MARFIN MBAUK and the US. Its estimated 2008 revenues are placed at $1.2B.6. JWT Worldwide, United StatesJWT is sort of a legend in the advertising world. It is recognized as the firstadvertising agency that was ever organized. The advertising agency implementedmajor and strategic changes. Its estimated revenues for 2008 are about $1.2 B.7. Y & R Advertising, United StatesY & R Brands is the umbrella organization of several leading marketing servicecompanies which include leading agencies Y & R and direct marketing outfitWunderman. It is a 100% subsidiary of WPP although it maintains a fairly selfcontained operation. It has gone through difficult stages in its operations primarilyto the disparate performance of the member agencies. The estimated revenues for2008 of Y & R are placed at $ 1.1 B.8. Publicis WorldwidePublicis Worldwide is the biggest ad network under the umbrella group PublicisGroupe which also includes Saatchi & Saatchi and the Leo Burnett advertisingnetwork. It has made significant inroads in its ranking with strategic acquisitions.9. DraftFCB, United StatesDraftFCB officially started business operations in 2006. Its core business is theintegrated marketing business portfolio focusing on a wide range of specialties anddisciplines. Its estimated volume of business for 2008 is about $955 M.10. Wisdek, CanadaWisdek is one of the emerging and leading online marketing and advertising outfits.It is renowned for innovative and creative marketing solutions designed forcompanies that are highly reliant on the Internet. It broke ground in 1998 and has‘ Effect of Advertisements on Children with special reference to confectionary products’ 28
  29. 29. SAAB MARFIN MBAsince then been focusing on innovative projects on site placements on varioussearch engines. Wisdek is the pioneer in an erstwhile non-existent businessinterest.‘ Effect of Advertisements on Children with special reference to confectionary products’ 29
  30. 30. SAAB MARFIN MBA INDIAN ADVERTISING INDUSTRY‘ Effect of Advertisements on Children with special reference to confectionary products’ 30
  31. 31. SAAB MARFIN MBA 3.1 IntroductionThe Indian advertising industry is talking business today. It has evolved from beinga small-scale business to a full-fledged industry. It has emerged as one of themajor industries and tertiary sectors and has broadened its horizons be it thecreative aspect, the capital employed or the number of personnel involved. Indianadvertising industry in very little time has carved a niche for itself and placed itselfon the global map. Indian advertising industry with an estimated value of 13, 200-crore has seteyeballs gazing with some astonishing pieces of work that it has given in the recentpast. The creative minds that the Indian advertising industry incorporates havecome up with some mind-boggling concepts and work that can be termed asmasterpieces in the field of advertising. Advertising agencies in the country too have taken a leap. They have come along way from being small and medium sized industries to becoming well knownbrands in the business. Mudra, Ogilvy and Mather (O&M), Mccann Ericsonn,Rediffussion, Leo Burnett are some of the top agencies of the country. Indian economy is on a boom and the market is on a continuous trail ofexpansion. With the market gaining grounds Indian advertising has every reason tocelebrate. Businesses are looking up to advertising as a tool to cash in on lucrativebusiness opportunities. Growth in business has lead to a consecutive boom in theadvertising industry as well. The Indian advertising today handles both national and international projects.This is primarily because of the reason that the industry offers a host of functionsto its clients that include everything from start to finish that include client servicing,media planning, media buying, creative conceptualization, pre and post campaignanalysis, market research, marketing, branding, and public relation services.‘ Effect of Advertisements on Children with special reference to confectionary products’ 31
  32. 32. SAAB MARFIN MBA Keeping in mind the current pace at which the Indian advertising industry ismoving the industry is expected to witness a major boom in the times ahead. If theexperts are to be believed then the industry in the coming times will form a majorcontribution to the GDP. With all this there is definitely no looking back for theIndian advertising industry that is all set to win accolades from the world over. With development in the technology, various avenues are opening up inadvertising industry. It is estimated that about 2.2 billion dollars are generated inthis industry every year. Be it is print, radio, television or Internet, every mediumplays a significant role in the growth of this industry. Today, Advertising Industry inIndia is surging with revenues. To meet all the demands in adverting sector, manyagencies are coming to the scene. India is a hub of creativity and this is evident from the fact that more andmore people from Indian advertising industry are being accepted world over andimposing a lot of respect in international advertising community. Visibility is the mantra of success these days and advertising makes sure thatyour product, service is visible; thus saleable. Today Advertising Industry in India isbooming with revenue. It is a very successful industry which generates lot ofrevenue. The Advertising Industry in India is getting recognized worldwide with itssuperior quality work and innovation. It ensures tremendous growth and scope forthe employees. During fiscal 2005, the gross advertising spend in India is estimated at Rs111 billion, and is expected to grow at 14.2% to reach Rs. 127 billion by fiscal 2006. The key factors which have contributed to growth of the Indian advertisingindustry include: - Growth in media vehicles leading to increase in media infiltration. - Higher degree of competitive concentration among consumer companies - Entry of global consumer companies with large advertising budgets‘ Effect of Advertisements on Children with special reference to confectionary products’ 32
  33. 33. SAAB MARFIN MBA - Increase in consumer riches. Rapid economic growth of the country on the back of economic liberalizationand deregulation. Indian advertising industry is fast catching up with their westerncounterparts. The change has been a slow and steady one, but if you look at theadvertisements on Indian television nowadays, you’ll be vastly surprised. There were times, when it was believed that sex sells anything andeverything. Then came the era of glamour and celebrities. Film stars and cricketerswere roped it to sell soft-drinks to massage oils. Ads were made for cycles andpens. The list is endless. Now, the times have changed. Humor, industry expertssay, sells the best. People remember jokes, the humor involved, and it becomeseasier to make an impact on the customer. The Indian consumer no longer fallsinto an uneducated, easy to please.‘ Effect of Advertisements on Children with special reference to confectionary products’ 33
  34. 34. SAAB MARFIN MBA 3.2 Top ten Advertising Agencies of India Ogilvy and Mather Limited:- Headed by Mr. Piyush Pandey:The most local of the internationals, The most international of the locals are wordswritten to describe the identity of Ogilvy. Basically, what this means is that theadvertising agency follows the local market, understands the customers needs andthen networks worldwide with MNC and other relevant clients. In all its years of business, Ogilvy has struggled to build brands and has provedits ability to build brands. The agency does its best to enhance the customer-brandrelation. For this, it undergoes the process of scrutiny of the tools and techniqueswhich work well to build a long and lasting association with a brand. Mudra communications Pvt. Ltd:- Head: Mr. Madhukar Kamath:The agency practises the art of communication in order to express ideas that canshape the brands. As the name suggests, the agency is influenced by the artistictraditions of Indian dance, drama and painting. These, in turn, inculcate feelings,ideas, thoughts and emotions for the success of a brand. Mudra peeps into thelocal consumer markets, channels and media, and has its own identity incommunication of brands. It looks for the entrepreneurial zeal which causescontinuous and speedy growth for each brand. The advertising agency always‘ Effect of Advertisements on Children with special reference to confectionary products’ 34
  35. 35. SAAB MARFIN MBAbelieved in doing interesting work that pleases its clients. Lintas India Pvt. Ltd:- Head: Mr. Pranesh Misra (President & COO - Lowe, India):After the merge of Lintas India Ltd. with Lowe Lintas and Partners group of the UK,it is now known as Lowe Lintas. India Pvt. Ltd. The turnover of Lintas is Rs. 750crore. The advertising agency inculcates advertising, media buying house, directmarketing, public relations, design consultancy, market research, events, ruralcommunications and interactive communications. Enterprise Nexus, the agencypartner of Lowe in India, continues to be a member and is known as the‘Independent Brands’ division which is the only specialist in advertising andmarketing communications. Lowe Lintas India is a successful agency which isinclined towards quality creative advertising and works for the benefit of its clients. JWT (Hindustan Thompson Associates Pvt. Ltd.):- Head:Mr.Colvyn Harris (Chief Executive Officer):The advertising agency has a special portfolio which includes creativity, innovation,clients, case studies, awards, well-thought out leadership and talent. Clientsperceive the agency as a resource of ideas which tell the brand’s story to thecustomer, dealing with market research. In this process, the agency includesinnovative ideas. FCB-Ulka advertising pvt. Ltd:- Head Mr. Anil Kapoor (Managing Director and CEO):FCB, being one of the the top three advertising agencies in the USA, ranks number10 in the world. FCB-Ulka has made its mark in India as Ulka Advertising. It wasfounded in 1961. On the creative front, Ulka is known to stand out. FCB-Ulka hasmade a smooth transition from a creative shop to a large mainstream agency.Around the mid-seventies, FCB-Ulka had become the fifth largest agency in Indiaand has sustained this status till date. The efforts of FCB-Ulka deserve praise. Italso gave recognition to those brands that were not in the limelight earlier but are‘ Effect of Advertisements on Children with special reference to confectionary products’ 35
  36. 36. SAAB MARFIN MBAnow completely above other market players. Santoor soap did thorough researchand focused on advertising which gave growing sales figures against stiffcompetition from Levers and P&G brands. Not surprisingly, FCB-Ulka is seen as aturnaround specialist - an agency that does brand building and more. Rediffusion DY&R Pvt Ltd:- Mr. Mahesh Chauhan (President):This advertising agency places its people first. It believes that the strength of abrand lies in the efforts the people of the organization make. Rediffusion DY&Rfollows system-driven ‘thinking’ in its culture. The agency attracts right mindsbecause it thinks of a perfect balance between creativity and strategy. RK Swamy BBDO Pvt Ltd:- Mr. Srinivasan K Swamy (Head)It is the agency of the worldwide-renowned BBDO network. The advertising agencysuggests comes up with solutions for its clients regarding their marketingcommunication problems and provides them with intelligent solutions andsupports them in attaining their goals. The symbol or logo of the advertisingagency is Hansa and is known to separate milk from the water. Similarly, RK Swamyof BBDO is capable of deriving the essential elements from the irrelevant ones inorder to promote each brand. The agency practises high level of commitment andspirited teamwork for a common cause. McCann-Ericsson India Ltd:- Sorab Mistry (Head)This advertising agency is a leading global agency and has the power and passionto achieve its mission .McCann-Ericsson is known as a world class advertisingagency and has found outstanding talent in its employees. Leo Burnett:- Mr. Arvind Sharma (Chairman and CEO):The advertising agency is totally idea-centric. It generates big brand ideas. Itregards the pencil as its engine no matter the size - it is the means through whichit can generate plenty of creative ideas. The agency is never too satisfied with its‘ Effect of Advertisements on Children with special reference to confectionary products’ 36
  37. 37. SAAB MARFIN MBAendless efforts in building up a brand. It believes that the brands can become andremain leaders by building better ideas. Its no wonder that the founder of theadvertising agency, Leo Burnett, regards the pencil as a metaphor for the kind ofideas he was coming up with for his clients. Grey worldwide (India) Pvt Ltd:- Mr. Nirvik Singh (President south east Asia & chairman South Asia, Grey Global):The agency handles above the line advertising for the Grey group. It has launchedDominos in India. It has had Ambuja cement, Thums Up, Arrow, Lee and manymore brands in its portfolio. The mission of the agency is to remain the largestglobal integrated agency to leading brand ideas. The list of the top ten advertising agencies is not always stable and remainsinterchanging. The additions and deletion of a few of them formulates the list. Buteach of them are making their way to becoming the best, and their efforts aremaking are each making a mark in the Indian advertising scenario.‘ Effect of Advertisements on Children with special reference to confectionary products’ 37
  38. 38. SAAB MARFIN MBA CHILDREN & ADVERTISING‘ Effect of Advertisements on Children with special reference to confectionary products’ 38
  39. 39. SAAB MARFIN MBA 4.1 IntroductionAdvertising to children is the act of marketing or advertising products or servicesto children, as defined by national legislation and advertising standards.Advertising to children is often the subject of debate, relating to the allegedinfluence on children’s consumption. Rules on advertising to children have largelyevolved in recent years. In most countries, advertising for children is now framedby a mix of legislation and advertising self-regulation. Scope and FormAdvertising to children can take place on traditional media – television, radio andprint – as well as new media (internet and other electronic media). Packaging,in-store advertising, event sponsorship and promotions can also be means toadvertise to children. There is no universal definition of a child (although UNESCO - the UnitedNations Educational, Scientific and Cultural Organization, defines early childhoodas ages 0– 8 years). Children are otherwise defined according to nationaljurisdictions. For the purposes of advertising law, the definition of a child variesfrom one jurisdiction to another. However, 12 is commonly used as a cut-off point,on the basis of the widespread academic view that by the age of 12 children havedeveloped their behavior as consumers, effectively recognize advertising and areable to adopt critical attitudes towards it. There is no global data on ad spending directed at children, only data forspecific sectors. According to the Federal Trade Commission, food and beveragecompanies (44 companies reporting to the FTC) in the US spent approximately $1.6billion in 2006 to promote their products/services to children.‘ Effect of Advertisements on Children with special reference to confectionary products’ 39
  40. 40. SAAB MARFIN MBA 4.2 Advertising standardsIn many countries worldwide, advertising is also governed by self-regulatory codesof conduct. Advertisers, advertising agencies and the media agree on a code ofadvertising standards – a set of ethical and behavioral rules they commit torespecting – which is enforced by a Self Regulatory Organisation, often anindependent industry-funded body, responsible for drafting, amending andenforcing the code. Self-Regulatory Organizations for advertising are increasinglyfollowing the best practice model agreed with regulators and consumer and publichealth groups in Europe. At a minimum, the general aim of self-regulatory codes isto ensure that any advertising is legal, decent, honest and truthful, but in mostcountries detailed rules are in place for different advertising techniques and sectors. Advertising self-regulation is built on different levels. On a global level, theInternational Chamber of Commerce has drafted a global code on marketingcommunications. All forms of marketing communications worldwide must conformto the ICC Consolidated Code on Advertising and Marketing. The code includes aspecific section, detailing the special care needed when communicating withchildren. Since 2006, a global code of practice on food marketing communications isalso in place. The Framework for Responsible Food and Non-Alcoholic BeverageMarketing Communications of the International Chamber of Commerce (ICC) setsdown global requirements for food and beverage marketing communications on allmedia, including the internet Key provisions include: the need for substantiation forclaims or health benefits; no encouragement of excess consumption; norepresentation of snacks as meals; no undermining of healthy lifestyle messages;‘ Effect of Advertisements on Children with special reference to confectionary products’ 40
  41. 41. SAAB MARFIN MBAno undermining of the role of parents. These codes provide a minimum requirement for marketing communicationsworldwide. National self-regulatory codes, based on the ICC codes, are established,policed and enforced by local Self-Regulatory Organisations (SROs) and industry inover 100 countries and apply to a range of media, increasingly also includingdigital marketing communications. The ICC and national codes are reviewedregularly to ensure that they remain relevant to local, cultural and consumerconcerns and that they promote best practice. The ICC Framework is applicableglobally but is a minimum standard designed to be adapted and transposed into SRcodes at national level. Many countries have implemented SR provisions that usethe ICC Framework as a basis, but go further in several respects, depending onlocal considerations. Examples include Australia, Brazil, Canada, Chile, France,Ireland, The Netherlands, New Zealand, Spain, the UK and the USA. In addition to industry-wide self-regulation, individual companies andindustry sectors have introduced a wide range of additional provisions relating tomarketing communications directed at children. For example, most multinationalfood and beverage companies have developed their own policies on food andbeverage marketing communications to children and, most recently, haveannounced the joint implementation of these individual commitments. In July 2007, 10 of these companies (now 13) announced a common pledgein the US – the Children’s Food and Beverage Advertising Initiative, mirroring asimilar initiative by 15 companies in Canada – the Canadian Children’s Food &Beverage Advertising Initiative; and followed by 11 companies in Europe with theEU Pledge. Under these initiatives, participating companies will cease advertising tochildren under 12, other than products that meet specific nutritional guidelines,based on international scientific recommendations. A similar Pledge programmewas launched by leading food companied in Thailand in May 2008 and in Australiain mid-2009‘ Effect of Advertisements on Children with special reference to confectionary products’ 41
  42. 42. SAAB MARFIN MBA 4.3 Media LiteracyMedia literacy is a relatively new discipline, aimed at teaching individuals andchildren in particular to understand and use the media to their advantage. Medialiteracy is increasingly recognized by governments and international organizationssuch as the European Union and the World Health Organisation as a key tool to helpchildren understand and deal with today’s complex media environment. Media Smart is an established media literacy education programme focusedon advertising. Launched in November 2002, Media Smart is a non-profit medialiteracy programme for school children aged 6 to 11 years old. Media Smartdevelops and provides, free of charge and on request, educational materials toprimary schools that teach children to think critically about advertising in thecontext of their daily lives. Media Smart materials use real examples of advertisingto teach core media literacy skills. Media Smart is funded by the advertisingbusiness in the UK and is supported by the UK government and EU institutions.Since 2002, Media smart has been launched in Belgium, Germany, the Netherlands,Finland, Sweden, Portugal and Hungary.‘ Effect of Advertisements on Children with special reference to confectionary products’ 42
  43. 43. SAAB MARFIN MBA Is it fair to advertise to children unless they fully understand the intent of theadvertisers? If young children do not understand that intent, then when do theydevelop that ability? Is television an effective way to market products to children?Are the products (such as food and toys) typically aimed at children, the type ofproducts that children should be encouraged to buy? Are children encouraged tobuy or try unsuitable products (such as alcohol or tobacco) from viewingadvertisements even when those advertisements are not aimed at them? Does advertising encourage a more materialistic attitude in children? Or is itappropriate that children learn to be effective consumers from an early age? Doesencouraging children to buy products lead them to pester their parents and causefamily disputes? Does television advertising present an accurate or misleadingimage of the world to children? Should advertising aimed at children be regulated? If so, how strict shouldthat regulation be and, in a global market place, should regulators draw upcommon guidelines across different countries and cultures? Should we educatechildren about advertising, and if so, who should take on the role of educator? These are the questions that require to have a proper look at. Children agingaround 15 in India are having spending power. It is from their own allowances andearnings. Almost 30 percentage of Indian population belongs to this age group,and called to be the future of India. But the fact is that out of every rupee thegovernment spent, only five paisa went to child related programmes. In Bihar,spending on per meal per child is about 15 paisa. Now can anyone explain thatwhat kind of nutritious food can be supplied at that rate? When we talk of the Indian economy it is vastly segmented in different agegroups with different spending powers. Most of the Indian people live under thepoverty line. But the others are having a huge spending power with large amount ofselection in the product basket. The children from these segments are beingtargeted by the companies to generate the sales.‘ Effect of Advertisements on Children with special reference to confectionary products’ 43
  44. 44. SAAB MARFIN MBA The market for selling products to children is potentially immense, and it isnot surprising that in those countries that have established traditions of advertising,much of that advertising is aimed at children, often via television and other media. 4.4 Children and TV AdvertisingIn the 1940s and 1950s children were not considered consumers in their own rightbut only extensions to their parents purchasing power. With the advent oftelevision and other mass media, children have come into their own right asconsumers and, consequently, they have become an important target market forthe business. Advertisers are the first to recognize children’s value as consumerswho are capable of making decisions about spending. The 1950s dates the modern era of childrens television programming, whena deal between struggling television network ABC and Disney brought The MickeyMouse Club and Disneyland into childrens afternoon television programming.‘ Effect of Advertisements on Children with special reference to confectionary products’ 44
  45. 45. SAAB MARFIN MBAAdvertising at that time appealed generally to the personal gain of the consumer inthe case they decided to purchase the sponsored product. Over the next 15 to 20years, childrens television became an industry by itself. Throughout this history of childrens television advertising, researchers havecriticized in different ways the use of television commercials directed to children(Tseng, 2004). In the late 1970s, a research team funded by National ScienceFoundation (NSF) estimated that children viewed an average of about 20,000.-commercials per year (Adler in Singer, 2001). There was so little study on this topicduring the 1950s, the majority of the studies on childrens television advertisingenvironment goes from the 1970s onward (Alexander et al. 1998). Four types of products advertised to children during the 1970s were limited:toys, cereals, candies and snacks, and fast foods. Male voiceovers accounted forthe great majority of ads coded, and animated characters seldom appeared (Barcusin Tseng, Eliana Shiao; 2004). While marketers and advertisers heightened theirinterest in the child market during the 1980s, research on childrens televisionadvertising of that period consisted mainly on replications and extensions ofprevious studies (Tseng, 2004). Children’s television advertising is rapidly becoming a major concern togovernment agencies, citizens. groups and researchers in many areas of the socialsciences ( Resnik, Stern and Alberty; 1979).Children who watch a lot of television,want more toys seen in advertisements and eat more advertised food than childrenwho do not watch as much television (Strasburger, 2002). Children also urge theirparents and friends to be sure to watch certain commercials (Fox in Jarlbo, 2000). According to (Resnik, Stern and Alberty, 1979), television advertising and itseffect on consumption patterns, values, and social interaction have been hotlydebated for many years. But only recently has the controversy focused on itsdifferential impact on special‘ Effect of Advertisements on Children with special reference to confectionary products’ 45
  46. 46. SAAB MARFIN MBAinterest groups- the elderly, minorities and children. As many authors states, there are many television advertisements based onchildren and it is faced that children urge their parents to purchase what they wantwithout needing. For a whole generation of new age children, television is asinfluential as a parent or a teacher (Panwar, 2006). According to Wiman (1986),children who talk with their parents more frequently about TV advertising andcommercials make more purchase requests. Children considered television to beone of life’s necessities. Studies commissioned by cable television networks in USA,found that an average of 43 per cent of total purchases made by parents wereinfluenced by children (Cooper in Caruana, and Vassallo; 2003). Exposure to it wasusually extensive – before school, after school, during homework, at weekends,with or without friends (Hanley, 2000). Marketers understand this fact very well.With the growing influence of media on children, an increasingly large number ofadvertisements are today directed to them (Panwar, Agnihotri, 2006). Children, for example, who come from disadvantaged backgrounds, or thosewho have less access to their parents may not only spend more time with the media.But, may continue to rely more heavily on TV advertising for the information thatthey seek in various areas (Brown, Childers, Bauman and Koch in Evra; 1995).Parents create direct opportunities by interacting with their children about purchaserequests, giving them pocket money and taking them to shopping excursions(Ward, Wackman, and Wartella; 1977). Children spend a large amount of timewatching television. They pay more attention to commercials broadcast duringchildren’s programming. Commercials broadcast during children’s programmingare designed to capture the younger child’s attention by the use of cartooncharacters, music, subjective camera angles and editing (Stern & Harmon, 1986). According to The Guardian newspaper, McDonalds, and Coca Cola spentrespectively 34,6 million USD and 16,2 million USD for television advertisementpresented for children. In this situation, firms do not hesitate to spend their money‘ Effect of Advertisements on Children with special reference to confectionary products’ 46
  47. 47. SAAB MARFIN MBAfor the related advertisements. Therefore nowadays the expenditure of theseadvertisements has been increased dramatically such as McDonalds and Coca Colaas well as Disney. They are the best known brand in the world. It can be drawnconclusion from here that the role of children as consumer on the world’s economyhas rapidly increased. The common features of the above mentioned brands areeasily to find and focus on children and family in their advertisements. According to McNeal (1992) American children spent over USD 132 billion on62 product categories of products were influenced by children. The number ofcommercials per hour on American television increased significantly towards theend of the decade. They provide a strong indication that American children aretoday exposed to more than 25 000 commercials per year via television (Kunkel &Roberts 1991). In 1997, $1,3 billion was spent on television advertisementsdirected at children. Counting all media, advertising and marketing budgets aimedat children approached $12 billion (McNeal, 1999). It is estimated that children mayview as many as 40,000 commercials each year (Strasburger, 2001). In one of theresearch project about the influence of television advertising on children andteenagers, Hanley (2000) found that the younger children (aged 9–11) were veryvague in their recall of current television advertising. The examples they came upwith were often unbranded, with the recall attached to the „story. or charactersinstead, e.g. Honey Monster (Sugar Puffs), cartoon elephant (Charmin toilet roll).Older children (aged 12–16) recalled advertising they enjoyed or disliked. Theappeal often related to the „storyline., characters featured or the product. Forinstance, they mentioned Rolo (elephant never forgets), as well as KitKat, Argos(toys), and McDonald.s. They identified three main ways in which televisionadvertising seemed to influence children: pester power; Many parents felt thatadvertising had the power to make a significant impression on their children. Thosefeaturing children, cartoon characters, animals, „catchy. tunes and phrases, colour,dynamic special effects, aspirational celebrity heroes, humor and children’sproducts (e.g. confectionery, cereals and toys) were most likely to be referred to:‘ Effect of Advertisements on Children with special reference to confectionary products’ 47
  48. 48. SAAB MARFIN MBAwww.itc.org.uk Generally advertisers use interesting characters in theiradvertisement to catch children’s attention. Sometimes these characters are notreal. For example Corn Flakes, Nesquick advertisements and etc (Hanley, 2000). It was very common for the advertiser to show ads in which the child wouldacquire superhuman strength by eating a specific breakfast cereal, or would leave agroup of friends in choking clouds of dust by running with the sponsored sneakers.Toys ads of that time were sponsored by unknown brands, which would generallyend up becoming famous after making deals with the television station (Alexanderet al; 1998). Children’s ages are also significant to understand the advertisements.Children’s comprehension of television advertising and its persuasive intentincreases with age, because of greater cognitive maturity and increased experiencewith the medium. Even a majority of 5-8 years old have only a low awareness ofwhat a commercial really is; and although three quarters of 9-12 year old childrenmay demonstrate a medium level of awareness (eg. commercials tell you what tobuy) (Ward & Wackman in Evra; 1995). However it is possible to say that eventhough they are very young to understand, the most important thing is theadvertisements impact on children. De Bens and Vandenbruaene (1992 pg 27) conveys that children’s attentionis affected depending on whether they are watching TV alone, with their parents orwith other children of the same age. Children.s attention depends on whether theyare playing, eating or occupied with something else while watching TV. Generally itis assumed that these factors contribute to reducing children’s attention to TVadvertising (De Bens and Vandenbruaene, 1992). In less developed countries the trend appears to follow the same pattern asin the developed world, although the market size may be comparatively small.Increasingly, children have become not passive observers, but active participants in‘ Effect of Advertisements on Children with special reference to confectionary products’ 48
  49. 49. SAAB MARFIN MBAthe family purchase decisions. Not only do children have their “own money” tospend on a variety of products and services of their choice, they also haveextensive influence on how their parents buy products and services (Wimalasiri,2004). If children saw something new in a television advertisement or in a magazinethat they liked they were likely to buy it. This is in line with Buijzen andValkenburg.s (2003) findings that advertising is positively and directly related tochildren’s purchase requests. McGee in Beder (1998, pg 100) says “children underaged 12 spend more than $11 billion of their own money and influence familyspending decisions worth another $165 billion on food, household items likefurniture, electrical appliances and computers, vacations, the family car and otherspending”. For example, one study estimated that children influenced $9 billionworth of car sales in 1994. One car dealer explains: "Sometimes, the child literallyis our customer. I have watched the child pick out the car."(Stanley in Beder, 1998,pg 102) Advertising offers consumer ideas and information, which we process andevaluate in order to make rational choices. Brown (2004) defends advertising tochildren on just such cognitive grounds: “Children are young consumers, interestedin making choices and needing information about them”.‘ Effect of Advertisements on Children with special reference to confectionary products’ 49
  50. 50. SAAB MARFIN MBA 4.5 TV Advertising & Children in India More than half of television viewers in India today are children of below 15years. And yet there is hardly any sensitivity about the relevance and impact ofwhat is dished out by various television channels. All of them are operating in acompetitive mode for one upmanship in the race for viewership. In this orderchannels are concerned more about “what interests or attracts” rather than what is“in the interest” of children. Neither the Government nor the parents or theteachers seems to be concerned about this situation. For, the generation next andthe civil society of the country is shaped and molded by what they are exposed totoday on the “idiot-box” day in and day out. Research studies over the year’s world over; have brought out various typesof negative impact of intense viewing of television by children. The direct influenceof TV viewing on the extent of violence and deviant behavior pattern of childrenhas been reiterated – even in India. In fact, there are a couple of confessions by‘ Effect of Advertisements on Children with special reference to confectionary products’ 50
  51. 51. SAAB MARFIN MBAadolescents, even a biography, as to how they picked up ideas about a rape orrobbery or revenge or killing or suicide or kidnap, etc from one or other TVprogramme. Even some court judgments have commented on such effect of TVprogrammes. That TV has a double-edged effect and that it is the negativecharacter which impacts more than positive potential often is known. But what is not realized is that there are no serious efforts to explore positivevirtues of TV and that parents who should be more concerned about such aphenomena hardly do anything about it. In fact, studies have brought out, forexample, that in Punjab and Uttar Pradesh, parents enjoy the same fare of TV alongwith their children and as keenly; where as in Tamil Nadu and West Bengal, parentstry to restrain their children in favor of some discriminative viewing. Teachers andsocial activists in a couple of places have been occasionally demonstrating aboutthe influence of television contents. Political parties too do not seem to beconcerned to do something about. BJP, however, had referred to this adverse trendin its election manifesto a few years ago. But did nothing on coming to power. Even the code for advertising, although outdated and inadequate, isconscious of “implications” to children of certain broadcasts and realizes the scopefor misuse. For example, under the code no advertisements should be acceptedwhich lures children to believe that if they do not own or use the productadvertised they will be inferior to other children or that they are liable to ridiculefor not owning or using a particular brand. However, in reality there is neitherstrict monitoring of the advertisements nor a rigid follow-up despite that many adson television fall under this category. And most of these children’s channels havebecome marketing outlets for brands altogether to India. Against this background and in this context there are certain recent trendson the Indian TV scene, which need to be taken note. More and more channels aregoing for “children’s programmes”. In fact, more channels are coming indescribing themselves as “children’s channel” or positioning themselves as such.‘ Effect of Advertisements on Children with special reference to confectionary products’ 51
  52. 52. SAAB MARFIN MBAMost of these are beamed into the country as if no one in the country, theGovernment the least, is concerned about such a trend. What is not taken note isthat:(a) Most of these children’s channels and programmes are of foreign origin orremake of them and are reruns over the years,(b) They do not have anything to do with enrichment or supplementary scope forschool education or imparting moral standards (there are of course some goodpre-school programmes);(c) Some of these foreign channels are now entering their second phase in thecountry taking to marketing of toys and tools for children promoted in these serials. And, worse, as a result of all this, there has been a decline recently in theextent of locally originated programmes for children even in Indian channels. Tocomplicate the matter further these foreign programmes for children are now beingdubbed into Indian languages. There are international lobbies operating aggressively to thrust uponanimation serials for children on countries like India. That is how today cartoonshave become synonymous for Children’s TV. Most of these serials are producedafter so much research. But not for ensuring educational or general knowledgeaspects but for capturing and retaining eyeballs of children again and again and tosee their serials have certain “dope-effect” on children. This recent launch of DTH services in a competitive mode brings out theurgency for Government take a view of this proliferation of uninhibited foreign farefor children and doing something about it so that television is also used with moreconcern and for positive ends. The least the Government should do is to prescribe that every channel beingdown linked must have certain percent of locally produced and originatingprogrammes for children. In fact, in the case of children channels, this percentageof locally originated programmes has to be higher. Canada and European Union‘ Effect of Advertisements on Children with special reference to confectionary products’ 52
  53. 53. SAAB MARFIN MBAcountries have one or other provisions in this regard. If France has prescribed 30percent of contents of channels should be locally originated, India should go for ahigher percentage, not less. India has a rich tradition of enriching children with folk tales and grandmatales and imparting values and imparting discipline and moral values in anentertaining format. When some of us advocated and argued a couple of decadesago for expansion of TV network in the country and for going for color television,one hope was that children’s fare will get some priority and all that treasure ofIndia gets a chance to figure. But what is happening now is contrary. Theexceptions are only a few. For, there is a decline in the extent of children’sparticipation even in national channels. The best specific examples of course areMalguidi Days, Panchatantra, Tenaliraman and the like. Realizing these strengthsof Indian tradition, some foreign producers are scouting in India to capture talentfor television, particularly in animation format. But what about our own initiatives? We do not seem to learn from our experiences. All India Radio in the earlieryears has set good examples for children’s programmes, which were enriching aswell as entertaining and supplementary to school education. In fact, the format ofthose AIR programmes was such that they were participatory and empoweringconfidence and courage building in children and respect for elders andenvironment. Today most imported children’s programmes are all out to promotematerialism, selfishness, consumerism and “at any cost” approach to life. Realizing the significance of media in the context of children, a few years agoUN has prescribed annual day for mass media when children are supposed to bethe producers of media contents. It is a good symbolic initiative. But it should befollowed up by some support to promote “creative TV software” for children of 6 –12 age groups, in particular. For, there is UN Convention on Rights of Child with aset of standards to promote well being of children. Unfortunately, there is no publictrust or foundation of civil society in India for this purpose. Even Public Service‘ Effect of Advertisements on Children with special reference to confectionary products’ 53
  54. 54. SAAB MARFIN MBABroadcasting Trust, which is a good initiative otherwise, is yet to be concernedabout children’s interests. It is most unfortunate that neither of the plethoras of Government agenciesclaiming concern for children has taken note of this vacuum. Not even the Ministryof Information & Broadcasting. All this despite ample creative talents across thecountry to produce more positive, pro-active and relevant software for childrenthan what is available now. It is unfortunate that the Government has neither takenpro-active or re-active initiatives in this regard. While we have a Children’s FilmSociety to promote films for children and a Children’s Book Trust, we have none fortelevision despite the number of children who see television is several times moreand, even more critically, the frequency of their viewing television is more than acouple of hours a day.‘ Effect of Advertisements on Children with special reference to confectionary products’ 54
  55. 55. SAAB MARFIN MBA 4.6 How Children Process AdvertisementsTo be effective, marketing campaigns must get children to attend to the message,desire a specific product, recognize and remember that product, and purchase it.How well children understand the persuasive intent of advertisements also affectsthe success of commercials.Attention.Commercials that are designed to attract and hold children’s attention arecharacterized by lively action, sound effects, and loud music. The animatedcharacter Tony the Tiger, for example, bursts onto the screen, proclaiming thatKellogg’s Frosted Flakes are “GRRRRRREAT!!” One study found that preschoolerspaid more attention to commercials full of action, sound effects, and loud musicthan to more low-key commercials. Audio features are particularly important ingaining children’s attention. Another study found that children aged three to eightwere more attentive to commercials that were higher in audio than in videocomplexity. Audio features have more recruiting power than visual featuresbecause interesting sounds can get children who are not looking at the televisionscreen to direct their visual attention to it. These findings are consistent withPiaget’s insight that young children are especially focused on the attention-gettingperceptual qualities of presentations. Children’s patterns of attention help revealhow well they can make distinctions between the commercial and the televisionprogram. In one study, researchers trained mothers to examine their children’s visualattention to Saturday morning cartoons and advertisements. The mothers reportedthat the younger children (five to eight) continued to pay attention when acommercial came on but that children older than eight looked away. The olderchildren’s awareness of the break in the content suggests that they are lesssusceptible than the younger children to the effects of advertising.‘ Effect of Advertisements on Children with special reference to confectionary products’ 55
  56. 56. SAAB MARFIN MBARecognition and retention.Advertisers use visual and auditory production techniques and repetition toenhance children’s memory of the content. One study found that preschool,kindergarten, and second-grade children remembered food products that had beenadvertised audio visually or visually better than they remembered productspresented in an audio version only. Advertisers use catchy auditory features, suchas jingles, repetitively in commercials to reach child audiences. Song lyrics andrhymes can replay in children’s heads, leading to automatic rehearsal and memoryof content. When children are shown the same commercial repeatedly, they aremore likely to remember the product advertised. Repetition also undermineschildren’s, even older children’s, defenses against product messages.Comprehension of commercial intent.As noted, children younger than age eight do not understand that the intent ofcommercials is to persuade them to buy one product over another; instead they seecommercials as a means of informing them about the vast number of attractiveproducts that they can buy. In a key study demonstrating the developmentaladvance during middle childhood, Thomas Robertson and John Rossiter questionedfirst-, third-, and fifth-grade boys about their understanding of commercials. Onlyhalf of the first-grade boys understood the persuasive intent of commercials, asagainst 87 percent of third graders and 99 percent of fifth graders.Product requests and purchases.What aspects of exposure to commercial messages lead to product requests?Researchers have found that repetition, in particular, increases children’s requestsfor, and purchases of, specific food, beverage, and toy products. One study, forexample, measured three- to eleven-year-old children’s overall exposure toadvertisements at home and to specific advertisements in their laboratory. Theythen had children visit a mock grocery store with a parent. Children who were‘ Effect of Advertisements on Children with special reference to confectionary products’ 56
  57. 57. SAAB MARFIN MBAexposed to more overall advertisements at home and who were most attentive toadvertisements in the laboratory setting made the most requests for the advertisedproducts. Premiums—bonus toys and treats that accompany the product—alsoincrease children’s product requests. For instance, Charles Aitkin found that 81percent of mothers thought that premiums influenced their children’s cerealselections. The more children watched Saturday morning television programs,which are saturated with cereal commercials, the more children wanted the cerealsthat contained premiums. Free downloads such as screen savers serve similarfunctions in newer technologies, but researchers have not yet fully examined theeffects of such practices. 4.7 Marketing Promos Targeting ChildrenChildren play an important role in the household decision making process byattempting to influence their parents acquisition, usage and disposition behavior.The most common is that children nag until their parents finally give in. Researchfinds that success of such attempts on the type of offering, characteristics of theparents, age of the child and stage of the process. Children are more likely to influence the parents for the purchase of childrelated products as cereals, cookies, snacks, car vacation and new computertechnologies. For clothing and toys, children often use that argument that“Everyone else has one” and because parents want to avoid being identified as‘scrim piers’ they will often given in. Interestingly, children consistently overestimate how much influence theyhave in most of the decisions.‘ Effect of Advertisements on Children with special reference to confectionary products’ 57
  58. 58. SAAB MARFIN MBA Working and single parents on the other hand are more likely to give inbecause thay face more time pressures. Another important finding is that the olderthe child the more influence he/she will exert on the parents.Targeting ChildrenMarketers are increasingly targeting the young children because of the influencethat these kids have on their parents; buying decision. Advertisers are influencingthe kids through various educational programs, games and certain otherpromotional events. The promos aim at increasing the brand visibility anddeveloping an emotional connect with the kids. In India, kids have a considerable amount of demographic representationwhich marketers want to capitalize on. Marketers are targeting the kids becausekids influence buying decisions, they exert pressure on the parents for a certainproduct purchase and they are the future adult consumers. In the earlier days, marketers aimed at influencing the parents for purchaserelated to kid’s products. Of late, marketers are trying to influence the kids directlythrough various promos and contests that provide them with lots of fun andadventure. By doing so, marketers are aiming to occupy the young mindssuccessfully. Generally, the contests are specially designed to target a particular age groupof kids. The response from the kids is usually high because of the emotionaltie-ups which is generated by the promos. This is the major success factor for themarketers. The common thing in all these promos is that they provide fun andadventure to the kids.A Bag of Contests from Marketers‘ Effect of Advertisements on Children with special reference to confectionary products’ 58