Comparative Study of Effectiveness of various mediums of Advertising

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Comparative Study of Effectiveness of various mediums of Advertising

  1. 1. A Dissertation Report OnComparative study of effectiveness of various Mediums of Advertising Dissertation report Submitted by: Shefali Walia Enroll no. – A0102208058 Submitted to:- Ms. Varsha Khattri (Project Mentor) AMITY BUSINESS SCHOOL NOIDA
  2. 2. DECLARATIONI, hereby declare that this project report is the record of authentic work carried out by meduring the 4th Semester of MBA and has not been submitted to any other University orInstitute for the award of any degree / diploma etc.Shefali WaliaUniv Roll No. A0102208058( AMITY UNIVERSITY, NOIDA)Date:Place: 2
  3. 3. CERTIFICATEThe forgoing project, entitled “Comparative analysis of effectiveness of differentmediums of Advertsing” carried out by the student named Shefali Walia. It is herebyapproved as a creditable study of an MBA subject carried out and presented in a mannersatisfactory to warrant its acceptance as a prerequisite to the degree for which it hasbeen submitted. It is understood by this approval that the undersigned do not endorse orapprove any statement made, opinion expressed, or conclusion drawn therein, butapprove the project only for the purpose for which it was submitted. The project issubmitted for the partial fulfilment for the summer training in MBA Marketing & Sales forthe academic year 2009-2010.( Ms. Varsha Khattri )Project Mentor 3
  4. 4. ContentsIndex Page No.Acknowledgement 6Chapter 1 Introduction 7-9Chapter 2 Literature Review 10-23 2.1 Advertising 10-11 2.2 The Advertising Campaign 11-13 2.3 Need for reviewing advertising performance 13-14 2.4 Information flow from advertiser to consumer 14-17 2.5 Generalizations about advertising effectiveness in market 18-22 2.6 References 23Chapter 3 Introduction to Different mediums of advertising 24-33 3.1 Television Advertising 24-25 3.2 Newspaper Advertising 25-26 3.3 Magazine Advertising 26-27 3.4 Cinema Advertising 27- 28 3.5 Radio Advertising 28-29 3.6 Mobile Advertising 30 3.7 Outdoor Advertising 30-31 3.8 Direct mail Advertising 31-32 3.9 Specialty Advertising 32-33Chapter 4 Research Methodology 34-41 4.1 Need of the Study 34-35 4.2 Objectives of the study 35-36 4.3 Research Methodology 36 4.4 Research Method : Company Perspective 37- 39 4.4.1 Sample Frame 37 4.4.2 Method of Research 37-38 4.4.3 Research Methodology 38-39 4.5 Research Method : Company Perspective 39-41 4.5.1 Method of Research 39 4.5.2 Sample Frame 40 4.5.3 Research Methodology 40-41Chapter 5 Analysis and Interpretations 42-74 5.1 Consumer Research Analysis 42- 65 5.1.1 Questionnaire 1 42-51 4
  5. 5. 5.1.2 Questionnaire 2 51-59 5.1.3 Questionnaire 3 59-65 5.2 Company Research Analysis 65-74Chapter 6 Findings of the Study 75-76Conclusion 77Annexure 78- 88Consumer Questionnaire 1 78-81Consumer Questionnaire 2 81-83Consumer Questionnaire 3 84-85Company Questionnaire 86-88Bibliography 89 Acknowledgement I would like to thank all of the people that helped make this possible. First and foremost, I would like to thank my Faculty Guide, Ms.Varsha Khattri, thank you for encouraging me to go down my own research path and work on the topic I was 5
  6. 6. passionate about. I know it was more work for you when I decided to venture down myown path and I appreciate all of your guidance and support along the wayIt is a pleasure to all thank those who made this dissertation possible for me such as myFather who gave me the moral support. All the people from the industry, who gave metheir valuable time and opinion and the All the people who contributed their opinion, tomake this research possible for me.I would also like to express my gratitude to Amity Business School for making me aperson to perform the task and for all the needful resources being made accessible.Last but not the least, I want to thank our friends who extended their cooperation andwere patient at all stages of our work. Shefali Walia MBA (Marketing and Sales) Amity Business School, NoidaChapter 1 Introduction“The business that considers itself immune to the necessity for 6
  7. 7. advertising sooner or later finds itself immune to business.” Derby Brown (Ries and Ries, p. XII.)The need for advertising can not be denied by any business because every businessneeds to reach out to its people in a positive manner so as to build a group of loyalcustomers to their brand who can further bring profits to their brand. Advertising providesthe platform to the business to interact with their customer, increase their visibility, buildtheir brand and developing relations with their customers. Need for advertising can in noway be denied, because if there is business, there ought to be customers and if thereare customers. Communication is evident. This communication is advertising.Advertising being an investment to company future and like every investment, a lotdepends on advertising, as well, in terms of people, profit, longevity of business,sustainability etc. Thus, After a company, has come to realize the need of advertising forits business, prime questions it faces are • Where are my target buyers? • What is the best medium to reach them? • Which medium can allow us maximum reach in minimum possible investment?These our some of the questions on top of the mind of every business once theyhave decided to go for advertising. With advent of technology, changing consumer’spreferences etc, A lot has changed in the way we should advertise.Why does most business advertising fail to yield expected return on investment. That isbecause of some of our wrong decisions, we make while advertising.And one of the major decision is, “What should be the right medium to adverise?”Thus the aim of our study is to understand business needs and correlate it withadvertising basics and hence formulating a comparative study for understanding theeffectiveness of various mediums of advertising according to business needs andexpectations. To help business maximize their reach, public acceptance,personalization, cost effectiveness by selecting the right medium to advertise. 7
  8. 8. The questions to everyone’s mind now would be, Is selecting advertising mediumsbefore advertising such an important and crucial decision before anything. Yes, It is. Letsunderstand how.There are various mediums for advertising like newspapers, magazines, radio,television, cinema, outdoor, mobile internet, direct mailer etc. Every medium follows itsown set of customers, cost and advantages. Differentiating between different mediumsbecomes essential to get the maximum advantages of Communication, reach, publicacceptance, cost advantage, building brand image, switching abilities, acceptance andcost, effectiveness and quality of add, compatibility of ad with the medium, compatabilitywith time, shelf life, personalization of message, shortcomings etc. Every mediums ratesdifferently on the scale for above things and thus being different on the basis of needsand priority of business. Thus our first objective of the study is to understand all theavailable mediums of advertising on the above said aspects.After understanding different available mediums of advertising, It needs to becomprehended with business needs to deicide the suitability of medium according tobusiness needs, which varies extensively from the stage the company is in to customersit is targeting to the budgets it wants to spend. The various questions which everycompany should ask before choosing an advertising medium are • What are the long term advertising objectives of the company • What respective benefits are they expecting from there advertisements. • Are they aware of there target buyers. Whether they are keeping it in mind, before going in for a particular choice of advertising medium. • What prompts them to a particular advertising medium for there company / Product. Whether it depends on some outside agency or internal decisions.Once, we have understood the needs of advertising by various businesses. There wouldbe a comparative study for you to understand which advertising medium is suitable towhat needs and which business can make the most effective use of the said medium. 8
  9. 9. Nothings satisfies man than an intelligent reason or a logic. Once we have actuallyunderstood, which medium could be best for your business. Our prime concern would beto know were these choices justified. Thus our next step would be to correlate thecorrelate the effectiveness of various advertisements with respect to the medium usedi.e How successful a particular medium is to add on to an advertisement meeting itsobjectives.Having understood all, not leaving any scope for a “what if” situation. The study nextaims to comparatively analyze different advertisement campaigns of different ompaniesunder same industry using different mediums for advertising their productsAfter understanding all the above knowledge on advertising and choice of advertisingmedium, the study would be incomplete without understanding the consumers responseto advertising on different mediums. Thus the study next aims to studying the attitude ofpeople to advertising on various mediums and understanding which respective segmentof people are effected more by which medium of advertising.Chapter 2 Literature Review2.1 Advertising 9
  10. 10. Advertising is, according to Belch and Belch (2004), any paid form of nonpersonalcommunication about an organization, product, service, or idea by an identified sponsor.Wells, Burnett, and Moriarty (2000) claim that advertising is nonpersonal since it is aform of mass communication and defines advertising as nonpersonal communicationfrom an identified sponsor using mass media to persuade or influence an audience.Belch and Belch (2004) suggest that advertising is the best known promotional tool sinceit is persuasive. It is also a very important tool for companies whose products andservices are aiming to satisfy mass consumer markets.Advertising is according to Tellis (2004) an enormous industry and the growth inexpenditures indicates that the importance of advertising is not declining. The totalexpenditures in the United States on all media advertising in the 2002 were nearly $240billion (Armstrong & Kotler, 2005, Belch & Belch, 2004, Tellis, 2004). This could becompared to the total expenditure of $53 billion in 1980. Promotional expenditures ininternational markets have grown as well. Advertising expenditures outside the UnitedStates increased from $55 billion in 1980 to nearly $214 billion by 2002. However, thereis no nation that could be compared to the U.S. where companies collectively arespending more than $1500 per capita a year on every man, woman, and child in thecountry – nearly 50 percent more per capita than in any other nation (Belch & Belch,2004).Advertising can be, in some cases be the sole reason for the growth of the company orthe product.“ The effectiveness of advertising depends on the selection of right media for conveyingthe said message to the target audience”Before discussing the limitations with advertising it is important to note the difficultieswith evaluating the effectiveness of advertising. The effectiveness of advertising isaccording to Tellis (2004) a highly complex phenomenon and depends fundamentally onhuman response to communication and how it is communicated. It involves attention,processing, recall, and response to appeal. This leads to one potential drawback notedby Armstrong and Kotler (2005) who claim that advertising is a kind of one-way 10
  11. 11. communication. Smith and Taylor (2002) emphasize the need for advertisers to thinkoutside the box and engage in a more dynamic and creative methods of advertising viadirect mail, telesales, Internet, television Radio etc. Tellis (2004) emphasize that only afew advertising campaigns are successful and only a few ads are able to reach over thelevel of noise and seize attention. This could be explained by inattention to advertising,resistance to persuasion, miscomprehension of ad message, and imitation of effectivetechniques.Clutter is according to Duncan (2002) another major limitation of advertising. Thefact that advertising is everywhere results in criticism from people and reinforces theresistance towards it. Belch and Belch (2004) also acknowledge the problem with clutterand define it as “the amount of advertising in a medium”.2.2 The Advertising campaignWhile it is the purpose of all advertising to create market recognition andpenetration (leads), the ads themselves often fail to produce profits greater than the costof the ad. In fact, most companies are satisfied if their ads only return their cost inincreased gross sales. They must count on multiple ads and repeat business to show aprofit. This is the major drawback of maintenance or flat response advertising.To draw a common analogy: It is like trying to harvest a crop the same day you plant theseeds in your garden. The alternative to flat response advertising is cumulative responseadvertising or, as it is commonly known, an advertising campaign. To continue thegarden analogy, cumulative response advertising first uses research to select anappropriate site with fertile soil (market determination), plants the seeds (foundationadvertising), and then weeds, waters and fertilizes (developmental advertising) until thegarden begins to flourish. Only after the garden has begun to mature do you harvest thecrop (maintenance advertising). The effectiveness of this approach is measured by thecumulative response ratio.Before starting a campaign, the cost of a qualified response to a maintenance ad my runbetween $100 and $350 for an industrial equipment purchaser. After the campaign has 11
  12. 12. been executed, the cost can drop to as low as $10 to $35 or achieve a 10:1 cumulativeresponse ratio for the identical maintenance ad. At this advertising cost, it becomeseasier to show a net profit on the initial sale.Laying out your GardenThe first step in preparing an advertising campaign is to target the right market andselect the media which offers access to that market.The next step is to create and place foundation advertising which announces to thegreatest number of people that your product exists and what place it occupies in themarket. Is it the biggest?, the best?, the least expensive? This becomes the productspositioning statement and your selling proposition.Planting the SeedsThe next phase of cumulative response advertising is the preparation and placement ofdevelopmental or sales builder advertising. Rather that stating the selling proposition,these ads target on key decision makers, relate to their needs or key buying motivationsand offer the features and benefits of your products to satisfy those needs.For targets where the key buying motivation is broad based, the ads are usually large,four color process. In situations where the target is less than 10% of audience, optimumspace (1/2 or 1/3 page) black and white ads are used. While the level of response issomewhat higher from developmental advertising than foundation advertising, theprimary purpose is long-term recognition of product benefits within the target audience.The response can again be used to further refine and target the next phase ofadvertising; Maintenance Advertising.Harvesting your CropBy the time your advertising strategy enters the maintenance phase, your the productwill have developed real and potential markets. All that is required to turn an individualfrom the real market into a customer is the information necessary to make a purchasedecision. This is information such as application, price or availability. Since the realmarket already has a requirement for your product, there is no need to run a full page ador run color. In fact, a quarter page black and white will draw your real market 75% aswell as a four color process two page spread at 20% of the cost for space and color.Frequency and coverage are the elements for success in maintenance advertising. It isimportant to cover your markets horizontally and vertically in all industry, product, special 12
  13. 13. interest, consumer and key decision maker media which will reach a portion of yourmarket.Monitoring the costs and response ratios in each market segment will enable you toevaluate the effectiveness of your advertising strategy6 and plan additional advertisingto strengthen in weak markets or budget reductions in areas of excessive demand.Disparity between maintenance response and sales also permits manufacturers tomeasure dealer sales effectiveness in geographic markets. Helping businessesimplement their marketing plans through advertising, planting the seeds of information intheir markets and spreading enough fertilizer to ensure a bountiful harvest is thebusiness of advertising and the commitment that WS&A.offers its clients. It is notenough, however, for your planning organization alone to understand the concepts anddevelopment of campaigns. We hope that by sharing the process, you will be betterprepared to capitalize on the opportunities it affords to maximize profits and exploit newbusiness.2.3 Need for reviewing advertising performanceConsumers in todays marketplace have the opportunity to choose between severalavailable alternatives in almost every product category. The willingness of consumers toexercise this option is demonstrated in two significant ways—the large market sharedifferences among competitors within product categories and the high failure rate of newproduct introductions. An indication of the failure rate is refiected in the statistic thatabout one out of 540 new product ideas ultimately becomes a successful product.Consequently the marketer is literally forced to devote a very considerable amount ofmoney and effort to planning and executing the advertising program that will, hopefully,yield the greatest financial reward.Various sources suggest that the sum of money spent to communicate a desiredmessage to the consumer is approaching $17 billion in the United States alone, an all-time high. Furthermore, this figure will in all probability continue to rise in the years tocome. To put this sum into the proper perspective, it may be noted that the averagefamily of four is reportedly exposed to more than 1,500 separate advertising messagesduring the course of a single day. And this too may be rising. Within this context, it issurprising that a large number of advertisers make no attempt to measure the 13
  14. 14. effectiveness of their advertising investment. In fact, a recent National IndustrialConference Board study indicated that a large portion of current advertising efforts arenothing more than “. . . Untested advertising that small groups of agency or companyexecutives believed would be effective.”Sound management practice dictates that all phases and operations of the company besubject to systematic review in order to achieve a maximum level of performance. Thisshould include advertising.The short-term and long-term benefits of systematicallyreviewing a firms advertising efforts are overwhelming. For example:—Management will be forced to define specifically what each element of its program isintended to accomplish, in advance of actual advertising exposure.—An accurate feedback system could be provided to management, assisting them inuncovering what the advertising program—working in conjunction with other marketingforces—is actually accomplishing in the marketplace.—Management would be able to use and to learn from experience (both successes andfailures) in order to create more effective communications in the future.2.4 Information flow from advertiser to consumer and a realisticprogram to measure advertising effectivenessInformation from various impersonal sources is communicated to the consumer, eitherdirectly or by another person.^ This message is affected by many subtle yet meaningfulvariables over which the advertiser has little control. For example, several studies haveillustrated that the type of message presentation, the attitudes of the audience to thetransmitter (whether it is media or human), the order of presentation, and the emotionalset of the audience" all serve to influence the effectiveness of information, that is, allinformation supplied by a variety of sources and affected by many different factors,eventually results in a product-related message of some kind being perceived by theconsumer.The reception of information directed to the consumer is merely the beginning of thecommunications process. Furthermore, there is no certainty that even this initial step ofthe advertising communications process will be successful. An advertising message will 14
  15. 15. be received by the consumer only if it is transmitted through appropriate media. Amessage which theoretically communicates well (for example, in a test situation it isremembered and understood; it is successful in changing or confirming attitudes,opinions, and preferences) could easily be ineffective when presented by inappropriatemedia.Even if appropriate media are used and the consumer does become exposed to themessage, it is still unrealistic to expect that he will buy the product at the firstopportunity. The message must first attract the consumers attention in some way(either consciously or subconsciously). Otherwise, no matter how well-constructed andhow well-transmitted, the message would be ineffective as an advertising vehicle. Thefact that consumers retain only a .small portion of what they are actually exposedto—either because of an inability to retain all messages or a lack of desire to do so—suggests that considerable attention should be given to this problem.Assuming the sales message is received by the consumer, and attracts his attention, themarketer should still not expect changes in purchase behavior. The message must firstinfluence changes in preference by altering or strengthening key attitudes and imagesabout the product. Both in-theatre and questionnaire research tests have demonstratedthe possibility that a consumer may be exposed to a message with no resultant changein any image or attitude about the product, much less a change in preference. The keyissue here is the true saliency of the product message from the consumers point ofview, ratherthan the effectiveness with which the advertiser communicated the product message hejudged to be important to consumers. Some experimenters have recently suggested thatconsumers may alter their behavior without any prior changes in attitude or preference.However, analysis of their findings suggests that perhaps their definition of attitude maybe incorrect, casting doubt on their "findings" of no relationship between attitudes andbehavior."Realistic Program for the Measurement of Advertising EffectivenessIt is within the preceding framework that one can proceed with the development of asystematic method of measuring advertising effectiveness. By understanding how 15
  16. 16. information about a product is transmitted from the advertiser to the consumer and thecomplex paths it sometimes takes, an evaluative program can be designed. Thisprogram must, however, have one basic methodological objective. It must utilize validand reliable research instruments. There can be no elements of the program which arebased upon magic formulas and unfounded assumptions. This section describes suchan evaluative system.A. An important element of the program is to measure consumer exposure to all mediain the advertisers target market segments. The data may be valuable in defining thespecific media to which consumers have recently been exposed, and the frequency ofsuch exposure.For example, one could carefully itemize the specific magazines read,television shows seen, or radio shows heard. Such data would help to determine (1) ifthe target market segment was exposed to the sales messages in the past, and (2) whatmedia selections should be made to insure optimum exposure per dollarspent in the future.B. It is also important to measure retention of the advertising and other "messages"received by the consumer. Information should be collected for the product underinvestigation, as well as for all competitors in the appropriate product category. Specificinformation could be obtained about retention of the individual elements of a salesmessage and also consumers explanations and interpretations of what an advertiser iscommunicating about his product.C. The level of consumer preference, both for the advertised product and for itscompetitors, can be developed. Consumers can be categorized into several intensities ofpreference. For example, the first and lowest level of preference could be a completelack of awareness for the product. Next might be a general state of product awareness(either with a negative feeling or with no observable preference). A third, and moreintense level of preference, could be an evaluation by the consumer that the product iswithin a group of products toward which he has some level of favorable feeling. Finally,the highest level of preference could be the single product that is most preferred. (Theconcept behind these preference levels has application in most product categories.However, many studies of advertising effectiveness suggest that the number and 16
  17. 17. definition of the various levels of preference may vary among different productcategories.)D. Salient images and attitudes toward the product under investigation, as well as for allof its competitors, can also be measured. Knowing a consumers level of preference, aswell as his specific attitudes, enables the correlation of attitudinal factors with preferencefor all products in the category of interest.E. Recent actual marketing behavior of the consumer should be investigated.Informationsought might include such factors as product brand, size and amount usually purchased,various uses and methods of usage, as well as the consumers current product inventoryon hand.F. The type of data described above can be used only to measure what the advertisingfor a product is accomplishing relative to its competition. However, it cannot tell themarketer the economic value of his current advertising strategy. As noted earlier, thereare a large number of variables which must be accounted for and controlled in order toprovide this type of information. The actual experience of several manufacturers"suggests that it is possible to provide management with a series of objective indicatorsof advertisings economic value. These observations may then be examined in light ofcurrent market conditions, government actions, competitive activities, and so on, in orderto gain insight into a measure of advertisings economic value.2.5 Generalizations about advertising effectiveness in market (GERARD J. TELLIS, Marshall School of Business University of Southern California Journal of advertising research, June 2009 )Based on over 260 estimates, the mean elasticity of sales or market share to 17
  18. 18. advertising is 0.1 percent. Another 450 field experiments suggest that changes inmedia, product, target segments, advertising scheduling, and advertising content aremore likely to yield changes in sales than do changes in advertising weight. Numerousother studies suggest that advertising wear-in does not exist or occurs quite rapidly whileadvertising wear-out occurs more slowly. Details of and differences in these results bycondition are discussed in this article.FIELD RESEARCH ON ADVERTISINGA) RESEARCH ON ADVERTISING ELASTICITY"Advertising elasticity" is the percentage change in sales of a brand for a 1 percentchange in the level of advertising. It is free of any units. Studies in this area try toestimate the statistical relationship by which sales respond to advertising. To do so, thestudies define a model with sales as the dependent variable and advertising as theindependerit variable. As far as possible thestudies try to control for the effect of Other independent variables such as price, quality,distribution, promotion, or brand name. There are more than 260 estimates ofadvertising elasticity carried out in numerous studies using a variety of models and dataacross many countries, product categories, brands and time periods. There also are twotypes of elasticities, current and carry-over. The current elasticity is the percentagechange in sales for a 1 percent change in advertising in the concurrent time period.Carry-over elasticity, alternatively, refers to the percentage change in sales for a 1percent increase in advertising in subsequent time periods, after or beyond theconcurrent one.Generalizations from elasticity study:About current effect• If advertising changes by 1 percent, sales or market share will change by about 0.1percent. In other words: advertising elasticity is 0.1. 18
  19. 19. • The advertising elasticity is lower in models that incorporate disaggregate data,advertising carryover, quality, and promotion relative to those that do not.About carryover effect• The carryover elasticity of advertising seems twice as large as that of the current effect.• The estimates of the carryover effect of advertising decrease with the interval of thedata used to estimate the carryover.Implications:These results suggest the following four implications. First, advertising is not the variableof choice for increasing sales. Second, there are distinct circumstances when advertisingis effective in increasing sales. Third, researchers need to be cautious about modelingadvertising response. They need to properly controlfor independent variables, carryover effects, and multiplicative models. Fourth,researchers need to use data at the unit exposure time and correct for estimates ofelasticity if they use more aggregate data (Tellis and Franses, 2006B) RESEARCH ON ADVERTISING WEIGHT"Weight" refers to the level or intensity of the advertising budget. Typically, the studies inthis group examine the effect of differences in advertising budget across time periods orregions. The main focus of such studies is to determine whether an increase in weighttranslates into a proportional or profitable increase in sales of the advertised product.Researchers have carried out more than 450 market or field experiments to assess theeffectiveness of advertising. In such experiments, researchers compare two or moresimilar markets, each of which differs by a particular advertising weight. In most cases,the experiments last for several time periods to enable the researchers to get baselinesales before the change in advertising weight and assess carryover sales after thechange has been made. These experiments varied widely in time period, markets,product contexts, advertised brands, and changes in weight (Tellis, 2004, 2007).Generalizations from advertising-weight studiesResearch from weight studies leads to the following six important and surprisingfindings: 19
  20. 20. • Even if advertisers make a big increase or decrease in weight, sales do not increase ordecrease by much.• If advertisers make cuts in weight, sales do not immediately decrease.• If advertising is effective, its effects are visible early in the life of a campaign.• Conversely, if early advertising is ineffective, then repetition will not create or enhanceits effectiveness.• If advertisers make changes in media, product, target segments, scheduling, andespecially content of the advertising, they are more likely to cause changes in sales thanif they merely change weight.• Where profitability of the advertising has been assessed, advertising seems to beprofitable less than half the time.ImplicationsThese results suggest three implications. First, firms could be over-advertising, not onlyin the amount of advertising they do, but also in using the same content, positionings,product, media, and schedule too long. Second, advertising may have carryover orpermanent effects, so that continued advertising at the same level is not alwaysnecessary. If the carryover effect is present, however, it starts to occur immediately anddoes not build up over time. Third, a firms budget increase or original budget itself ismore fruitfully enhanced by changes in media, content, target segments, product, orschedule rather than on weight alone. In other words, variety in advertising is likely toyield better results than increases in weight.C) RESEARCH ON ADVERTISING FREQUENCYA firms advertising budget normally affects consumers through the exposure ofconsumers to advertisements through the media. "Frequency," in this context, refers tothe number of advertising exposures each consumer receives in a particular time period.The advertising budget in a time period ultimately translates into a sequence ofindividual exposures targeted to one or more consumers. Similarly, sales is anaggregate of "brand choice"—consumers choices of brands. Research on frequencynormally examines the effect of advertising frequency on consumer choice (Deighton,Henderson, and Neslin, 1994; Gibson, 1996; Jones, 1995; McDonald, 1971; Pedrick andZufryden, 199(1; Tellis, 1988a). Such research provides a more fine-grained and 20
  21. 21. insightful analysis of advertising response than comparable studies on advertisingelasticity or advertising weight.Generalizations from advertising-frequency studiesResearch on advertising frequency leads to the following five findings:  The effects of advertising exposure are less prominent and immediate and more fragile than those for price or promotion on brand choice.  In general, increasing frequency of exposures increases probability of brand choice at a decreasing rate.  For mature, frequently purchased products, the optimum level of exposure is relatively small, ranging from one to three exposures a week.  Brand loyalty moderates response to advertising exposures, in that established brands have an earlier and lower peak response to advertising exposures than newer brands.  Brand choice is more responsive to the number of consumers the advertisement reaches than to frequency with which it is repeated.ImplicationsThese findings suggest two implications: First, advertisers need to target loyal buyersand nonbuyers of their products with differing levels of exposures. Second, consistentwith findings from prior sections, heavier exposures need to be reserved for newconsumers and brands.D) RESEARCH ON ADVERTISING CONTENT"Content" refers to what is in an advertisement as opposed to such externalcharacteristics as weight or frequency. Aspects of content include the appeal (argument,emotion, and endorsement), the duration or length of the advertisement, the use of color,sound, or video, the amount/type of text, etc. While a vast number of theater and labstudies have examined the effectiveness of various aspects of advertising content, only 21
  22. 22. a few market studies have done so (Chandy, Tellis, Maclnnis, and Thaivanich, 2001;Maclnnis, Rao, and Weiss, 2002). Thus, generalizations of findings in this area need tobe made cautiously.Generalizations about advertising contentResearch on advertising content seems to suggest the following preliminary findings:• Changes in the creative, medium, target segment, or product itself sometimes lead tochanges in sales, even though increases in the level of advertising by itself does not.• Informative appeals are more important early than late in the products lifecycle.• Conversely, emotional appeals are more effective late rather than early in a productslife cycle.ImplicationsThese findings have two important implications for advertisers. First, to increaseeffectiveness, advertisers should modify content more than increasing weight orfrequency. Second, advertisers need to test and typically vary the content of theiradvertising within the life stage of the product.2.6 References Books • Marketing Management by Philip Kotler • Advertising Management by Rajiv Batra, John G. Myers. 22
  23. 23. Research papers • Gerard J. Tellis, Marshall School of Business, University of Southern California, Journal of advertising research, June 2009 • The Role of PR, Jönköping June 2005 • Elizabeth Marting, New Products, New Profits (New York: American Management Association, 1964) • Roger H. Bolin, cited in Russel H. Colley, Defining Advertising Goals for Measured Advertising Results (New York: Association of National Advertisers, 1961), Foreword.) • Journal of Marketing. Vol. 33, 1969).Chapter 3 Introduction to different mediums ofAdvertisingThe promise of media advertising is great. It’s an opportunity for a brand to tell its storydirectly to the ultimate consumer. It’s an opportunity to build awareness and project apowerful brand image. It’s an opportunity to create and build brand equity. It’s anopportunity to bypass the trade, an opportunity to circumvent competitors. In actual 23
  24. 24. practice, however, the promise of media advertising I seldom realized. In fact, theopposite is true. Media advertising is probably the most inefficient, least productiveexpenditure in the typical company’s marketing budget.3.1 Television AdvertisingTelevision advertising provides a very powerful vehicle for delivering a message aboutyour product or service to the widest audience possible. The visual impact of videosimply has a great ability to capture and hold the audience—more so than the morestatic mediums of print or audio media. Although it may seem like a daunting task, youcan write and produce your own commercial at a television studio, or at a local college orhigh school that has an audio-visual department. The costs of producing a fifteen-,thirty-, or sixty-second television spot will vary depending upon the sets, special effects,talent, equipment, and crew necessary to pull off your concept.The cost for placing a television ad depends upon the type of station, the time of dayyour ad airs, and the ad run frequency. Station types, in order of expense, include UHF,VHF, and local cable access. When determining which time slot to place your ads in,consider any documentaries, features, or sporting events with local content that caterspecifically to an audience that would be interested in your product or service.Remember that the frequency of your ads is as important as the time of day they air.Running your commercial once or twice a week, for example, is unlikely to generate anyresponse at allThe effect of TV commercials, or any other form of advertising, can and has beenmeasured on a variety of criteria. Advertising recall, message comprehension, productawareness and knowledge, attitude toward and intentions to buy the advertised productare some of the more frequently used commercial and product-related measures ofadvertising effectiveness. These measures, being non purchase in nature, should ideallybe related to the theoretically "optimal" criterion of advertising effectiveness—thepresent value of the relative profitability of advertising alternatives. Unfortunately, thereis no sound theoretical (or even an empirical) basis for selecting any one measure as thesingle "best" criterion. This may suggest the need for advertising evaluation tests whichutilize a number of relevant commercial and product related criteria. Yet, most current 24
  25. 25. commercial testing procedures, including those that are consistent with the Dagmarapproach, determine the effectiveness of a given commercial based on its performanceon a single criterion.3.2 Newspaper AdvertisingEvery advertising medium has characteristics that give it natural advantages andlimitations. As you look through your newspaper(s), youll notice some businesses thatadvertise regularly. Observe who they are and how they advertise their products andservices. More than likely, their advertising investment is working if its selling!Some Advantages in Newspaper AdvertisingAlmost every home receives a newspaper, either by newsstand or home delivery.Reading the newspaper is a habit for most families. And, there is something foreverybody: sports, comics, crosswords, news, classifieds, etc. You can reach certaintypes of people by placing your ad in different sections of the paper. People expectadvertising in the newspaper. In fact, many people buy the paper just to read the adsfrom the supermarket, movies or department stores.Unlike advertising on TV and radio, advertising in the newspaper can be examined atyour leisure. A newspaper ad can contain details, such as prices and telephone numbersor coupons.There are many advantages to advertising in the newspaper. From the advertiserspoint-of-view, newspaper advertising can be convenient because production changescan be made quickly, if necessary, and you can often insert a new advertisement onshort notice. Another advantage is the large variety of ad sizes newspaper advertisingoffers. Even though you may not have a lot of money in your budget, you can still placea series of small ads, without making a sacrifice.Some Disadvantages with Newspaper Advertising • Newspapers usually are read once and stay in the house for just a day. • The print quality of newspapers isnt always the best, especially for photographs. So use simple artwork and line drawings for best results. 25
  26. 26. • The page size of a newspaper is fairly large and small ads can look minuscule. Your ad has to compete with other ads for the readers attention.3.3 Magazines advertisingMany of the same "print" type principles which apply to newspaper advertising also applyto magazine advertising. The biggest differences are: Magazines are usually weekly ormonthly publications instead of daily. Advertising messages are more image-orientedand less price-oriented. The quality of the pictures and paper are superior to newsprint.Advertisements involve color more often. The general rule that you can run the same ad3-5 times within a campaign period before its appeal lessens applies to magazineadvertising as well, even with a monthly publication. So it makes sense to spend extratime and money to prepare a worthwhile ad that can be successfully repeated. Over longterms such as these, however, be aware that the client (you) often tires of the ad beforethe audience does. Because ads in magazines are not immediate, they take moreplanning. Often, an ad for a monthly magazine must be prepared at least a month inadvance of publication, so ads detailing prices and items have to be carefully crafted toinsure accuracy..There are two categories of magazines: trade magazines and consumer magazines.Trade magazines are publications that go to certain types of businesses, services andindustries. Consumer magazines are generally the kind you find on the average newsstand. Investigate which type would do your business the most good. An agency canalso purchase the magazine space for you, often at no charge, because the magazinepays the agency a commission directly. If you wish to purchase the advertising yourself,contact the magazine directly and ask for an "Ad Kit" or "Media Package." They will sendyou a folder that includes demographic information, reach information, a current ratecard and a sample of the publication.Although most magazines are national in nature, many have regional advertisingsections that allow your business to look like it purchased a national ad when it onlywent to a certain geographical area. This can be especially useful if your product orservice is regional in nature as well and could not benefit from the magazine’s completereadership. Each magazine does this differently, so contact the one(s) you are interested 26
  27. 27. in and ask them about their geographic editions. Some sophisticated magazines evenhave demographic editions available, which might also be advantageous.Also, Magazine and television work in different ways Magazine and television advertisingwork in different ways and in assessing advertising effectiveness these differencesshould be taken into account. The measures developed for television are not necessarilyappropriate for magazines.Moreover, exposure to a magazine ad is under the reader’s control, whereas exposureto a TV commercial is not in the viewer’s control. Television and magazineadvertisements are stored in memory in different ways. A TV commercial tends to beheld in the mind as a ‘story’. With magazine advertisements a higher proportion ofmemories are stored as information about the product rather than about the ad itself.Consequently, as a criterion of the advertising efficiency of magazines, measuringtheabsorption of product messages is more relevant than ad awareness. Unliketelevision, magazines offer repeat exposures to the advertising. The typical reader looksat an average page on more than two occasions.3.4 Cinema AdvertisingCinema advertising is a dynamic medium offering advertisers the opportunity to reachtheir target consumers in a distraction-free, compelling environment. Advertisersshowcase their brands on an entertainment backdrop and access the star power thatdrives consumers to theatres. Cinema advertising is becoming a more essential,strategic part of the media plan, for many brand categories. Consumers are more likelyto consider and choose a brand when in-cinema advertising is part of the overall mediamix. Moviegoers who saw in-theatre advertising are 44% more likely to remember the adthan consumers who saw it on TV. Cinema advertising has longevity. Up to one weekafter seeing commercial at the movies, nearly half of consumers could name the specificbrands they saw advertised. In terms of reach, it is lower than TV but in terms of impactit is around 5 times higher. There is better ROI on Cinema as a medium when comparedwith television.Cinema attendance worldwide has increased rapidly in recent years and this growthinttendance has seen a parallel increase in the utilization of cinema as an advertisingmedium (Val Morgan Cinema Advertising, personal communication 1996). 27
  28. 28. In addition to the increasing reach of cinema, some researchers have argued thatcinema possesses a number of advantages which make it a more attractive mediumthan has hitherto been recognized (see Johnson 1981). In the only major study toexplore cinema advertising, Johnson identified the high quality, high resolutionpresentation offered by cinema; the "social" aspect of movie going which, he suggested,ensures decision-makers view advertising in the company of purchase influencers; thecaptive environment of cinema, and the lack of clutter affecting the medium, as reasonsfor its increasing popularity. He acknowledged some disadvantages, especially thedifficulty of building frequency (although this is easily addressed through the use of othermedia within a specific schedule); the lower reach when compared to traditionalbroadcast media, and booking constraints. However, despite these problems, Johnsonconcluded that cinema was an under-utilized medium.3.5 Radio AdvertisingSince its inception, radio has become an integral part of our culture. In some way, ittouches the lives of almost everyone, every day. Radio, as a medium, offers a form ofentertainment that attracts listeners while they are working, traveling, relaxing or doingalmost anything. A farmer, for example, may listen to the radio while he is havingbreakfast or plowing his field. People driving to work often listen to the radio. Radiooffers information such as: news, weather reports, traffic conditions, advertising andmusic for your listening pleasure.Radio is a relatively inexpensive way of reaching people. It has often been called the"theater of the mind" because voices or sounds can be used to create moods or imagesthat if crested by visual effects would be impossible to afford.You can also negotiate rates for your commercials, or even barter. Stations are oftenlooking for prizes they can give away to listeners, so its possible to get full commercialcredit for the product or service you offer.Advantages to radio advertising include: • The ability to easily change and update scripts are paramount to radio broadcasting, since news stories can and often do happen live. 28
  29. 29. • Radio is a personal advertising medium. Station personalities have a good rapport with their listeners. If a radio personality announces your commercial, its almost an implied endorsement. • Radio is also a way to support your printed advertising. You can say in your commercial, "See our ad in the Sunday Times," which makes your message twice as effective. • Radio advertising is not without its disadvantages too, such as: • You cant review a radio commercial. Once it plays, it’s gone. If you didnt catch all the message, you cant go back and hear it again.Since there are a lot of radio stations, the total listening audience for any one station isjust a piece of a much larger whole. Thats why its important to know what stations yourcustomers and prospects probably listen to. Therefore, most of the time, youll have tobuy time on several radio stations to reach the market you are after.People dont listen to the radio all the time...only during certain times of day. So, itsimportant to know when your customers or prospects are listening. For example, if youwant to reach a large portion of your audience by advertising during the morning farmreport, youll have to specify that time period to the radio station when you buy the time.Radio as a broadcasting medium, can effectively sell an image...or one or two ideas atthe most. It is not, however, a detailed medium...and is a poor place for prices andtelephone numbers.Radio listeners increase in the spring and summer, contrary to television audienceswhich increase in the fall and winter and decrease in the summer. This is an importantaspect to consider when you are choosing advertising media.3.6 Mobile Advertising:The high penetration rate of mobile phones has resulted in the increasing use ofhandheld devices to deliver advertisements for products and services. Short MessagingService (SMS), in particular, has been very successful. A series of surveys conducted byA.T. Kearney indicates that the use of mobile information services and SMS hasincreased dramatically since 2001 [20]. More than 100 billion SMS messages were sent 29
  30. 30. worldwide in a single year. More than half of the 19–34 age group in Taiwan use SMS atleast once a day. The rising popularity of SMS has created a new channel foradvertising, called mobile advertising. Ads are rendered as short textual messages andsent to mobile phones3.7 Outdoor AdvertisingOut-Of-Home (OOH) or Outdoor Advertising is defined as “any type of advertising thatreaches the consumer while he or she is outside the home (or office). This is in contrastto broadcast, print, or internet advertising, which may be delivered to viewers out-of-home (e.g. via tradeshow, newsstand, hotel lobby room), but are more-often viewed inthe home or office.”2OOH advertising falls into one of four formats3:• Billboards – Standardized large format advertising displays intended for viewing fromextended distances, generally more than 50 feet (including digital billboards)• Street furniture – Advertising displays, many that provide a public amenity, positionedin close proximity to pedestrians and shoppers for eye-level viewing, or at curbside toinfluence vehicular traffic (including traffic barriers, benches, bollards, post boxes, phoneboxes, street lamps, street lighting, traffic lights, traffic signs, grit bins, public lavatories,fountains and memorials, and waste receptacles)• Transit – Advertising displays affixed to moving vehicles or positioned in the commonareas of transit stations, terminals and airports (including buses, commuter trains, trucks,taxicabs, and mobile billboards)• Alternative – new media advertising different from billboards, street furnitures, andtransit. This include mobile projections, cinema, place-based advertising (such as inmalls, golf courses, parking garages, stadiums and arenas, rest areas and resorts),postcards, vending carts, and place-based digital networks (also called digital displays)OOH advertising has emerged as a new frontier for what has traditionally beendominated by TV, radio and print. With a projected growth of 28% in 2007, OOHadvertising is now slowly being regarded as a co-equal of traditional media.Need of OOH Advertising 30
  31. 31. According to recent studies cited by the Outdoor Advertising Association of America(OAAA), people are spending more time out of home than in-home9. This is widelyinfluenced by two key factors:• Increasing mobility of consumers as they spend more time on the road whilecommuting to and from places of work and relaxation, in spite of the increasing cost offuel• Increasing number of working individuals per family, itself influenced by an increasingcost of living and lifestyleFurthermore, consumers are increasingly exerting control of their purchase andconsumption habits, demanding the ad content that they want to see when they want tosee it. The increasing clutter of home-based advertising from a burgeoning number ofTV and radio channels, and a widening option of print media from magazines tonewspapers, has made it difficult to make purchase decisions at home. As a result, mostconsumers are now making such decisions out-of-home, at that moment in timeimmediately before the point of purchase.3.8 Direct MailWhat makes "direct" mail different than regular mail? Nothing. Its just a way theadvertising world describes a promotional message that circumvents traditional media(newspaper, radio, TV) and appeals directly to an individual consumer. Usually throughthe mail, but other carriers also participate.Direct mail may be used more than you think. Studies indicate that it is the third largestmedia expenditure behind television and newspaper.Rules to Remember 1. Define your audience. Figure out who you want to reach before developing your direct mail program. This allows you to specifically target your message to fit common needs. It is the best advertising medium for "tailoring" your appeal. 2. Locate the right mailing list. You can either build a "house list" by doing the research yourself and compiling the information on a computer - or you can purchase an "outside list" from a list house or mailing organization already pre- prepared and ready to go. 31
  32. 32. 3. There are many ways to purchase lists. You can buy them demographically (by age, profession, habits or business), or geographically (by location, or zip code). Or you can by a list with both qualities. More than likely, there is a mailing list company in your area that would happy to consult with you on your needs. If not, there are a number of national mailing lists available. 4. For assembly, addressing and mailing your project, you also have the choice of doing it yourself or locating a mailing service company to do it for you. As the numbers of your direct mail pieces increase, the more practical it is for you to enlist such an organization for assistance. They also are very good at getting you the lowest postal rates. 5. Consider using a self-addressed reply card or envelope to strengthen return. Use a Business Reply Postage Number on the envelope and youll only pay for the cards which are sent back to you.The blessing (or curse) of direct mail is that there are no set rules for form or content.The task of deciding what your mailing should have as content, its design and itsmessage(s) is up to you. However, remember to attract the readers attention with colorand creativity. Use clear, comfortable writing and make your appeal easy to respond.And of course, coordinate the mailing with other advertising media if you are also usingthem in the same campaign. It can significantly increase the potential return.3.9 Specialty Advertising"Giveaways" -- the pencils, pens, buttons, calendars and refrigerator magnets you seeeveryday -- are called "Specialty Advertising" in the advertising business.Chances are, you have some specialty advertising items right at your desk. Businessesimprint their name on items and give them away (or sometimes sell them at very lowcost) in order that:You notice their name enough times on the item to build "top-of-the-mind" awareness.So when you need a restaurant, for instance, you think of their name first. 32
  33. 33. You appreciate the goodwill of the company giving you the item and eventually returnthe favor by giving them some business.These are both long-term advertising investments that can take months or years to turninto actual sales.First, select the best item that would tell your story most effectively. While an accountantcan give away an inexpensive calculator, the same item may not be ideal for ahairdresser. A comb or brush might be more appropriate in that case.Second, decide what you are going to say on the item. A company slogan? Addressdirections? Since you have a relatively small area, you must be very concise and direct.Third, figure out your method of distribution. Are you going to send them to eachcustomer through the mail? If so, how much will that cost? Will you have them in a bigbowl that says "take one"? Distribution is just as important to consider as buying theitem.Just as there are many reputable specialty advertising professionals in your area, theindustry is notorious with a lot of high-pressure telephone and mail solicitors who oftengive specialty advertising a bad name. Dont buy specialty advertising through the mailwithout checking the quality and prices with trusted local representatives first. And,buying specialty advertising over the telephone is not recommended at all.Specialty advertising is a unique way to generate goodwill and put your name on itemsthat people remember. But dont do it unless you have an item and distribution plan thatwill benefit your business.Chapter 4 Research Methodology4.1 Need of the Study 33
  34. 34. Consumer, in today’s marketplace has the opportunity to choose between severalavailable alternatives in almost every product category. With increasing competition,changing consumer behavior advancement of technology, The need for advertising isgrowing even more for the organizations to reach out to its customers in the bestpossible way and build the long term relations with them. Advertising today is animportant item on the top management agenda. The foremost reason, of course, is theincrease in size of advertising expenditures. In many cases, advertising has become thethird, second, and in a few cases, the largest item in the corporate budget. Keenercompetition, together with expanded plant capacity, has forced a greater reliance onadvertising to maintain or increase volume and profit.Every business invests huge amount of time and money on its advertising but theproblem arises when it fails to deliver result. Some of the reason for it could be Peoplenever accessed or viewed the advertisement, It did`nt left the impact it ought to, It wastoo costly for the results achieved or message was no clear etc. Many of the problemarises because of the wrong selection of the medium of advertising. Every medium hasits different communication style, reach, public acceptance, cost advantage, shelf lifeetc. So as to understand that which characteristic of a particular medium suits bestaccording to the needs of the respective company.The consumers have very definite ideas about the media and their advertising content.They believe for example that newspapers are the best source of shopping information,the best source of information about sources of entertainment and that they contain themost useful advertisements of the four media included in this study. They also feel thatnewspaper advertisements are the most truthful and informative, and would be leastwilling to give up the advertising content of the newspaper when compared to the othermedia.When it comes to television People indicates that it spends the greatest amount of itsmedia time with television, and that television is their first choice for entertainment andfor world and national news. While people feels that television advertising is the mostannoying, insulting, misleading and most in need of government regulation, they alsofeel it is the most entertaining and the best source of new product news. 34
  35. 35. Radio and magazines appear to hold a very secondary position in the mind of theconsumer vis-à-vis television and newspapers. While people indicates that magazinesare the medium they spend the least amount of time with, and the medium they could"do without," they are also the medium which provides the best source of information ondurable goods in their opinion.Thus, the goal of the study is to understand how the right choice of media can actuallyhelp in getting maximum possible benefits from advertising. Every medium of advertisingcarries its own respective benefit, its own set of loyal audience and its own different chiefcharacteristics. Thus, at some point of times companies have no available criteria, tojudge, which medium would be most effective to solve their required purpose thanbudget as a consideration. The particular study aims to understand every aspect of thedifferent medium and correlate it with various needs of the business.4.2 Objectives of the StudyThe research is done from two perspectives that are from the company perspective aswell as the consumer perspective.The prime objective of the study from the business perspective are stated as follow 1) To understand advertising for businesses. 2) To understand and explore different available mediums of advertising for businesses. 3) To understand the primary objectives and needs for advertising of various businesses (w.r.t. select industries). 4) To understand the Suitability of various Advertising mediums for different Product and industry levels. 5) To correlate the effectiveness of various advertisements with the choice of medium used. 35
  36. 36. Besides the above objectives, the second part of the research involved on gettingacquainted with the consumer behavior with respect to various mediums of advertising.The objectives are stated as follow: 1) Attitude of people to advertising on various mediums in northern region of India. 2) To understand which respective segment of people is affected more by which medium of marketing.4.3 Research MethodologyResearch methods are used to provide a systematic approach to research and helps inordering the data collected in order to be to analyze it and conclude whether it answereda particular question or not. There are basically, two types of researches, Primaryresearch and secondary research. We have used both the researches in our study. Ourprimary research supports the knowledge and curiosity behind our secondary research. A) Secondary Research: Secondary research was needed in the study, so as to understand all the previous researches, studies, and derivation in the above field of media comparisons for advertising. In our secondary research, we studied various research papers of multiple authors and publications to get the larger picture of the situation. Our secondary research is cited in various places in the research paper. The basic purpose of the secondary research is to back up the actions behind the primary research with the knowledge. B) Primary Research: Primary research was carried out using various research tools. Primary research carried various interviews, and questionnaires. It was basically taken from two perspectives, One was the company perspective and the other was the consumer perspective.4.4 Research Method: Company Perspective 36
  37. 37. The purpose of the research was to understand the advertising needs of differentcompanies like what are there expectations from advertising, do they understand theimportance of selecting the right medium for advertising etc. So that after advertisingneeds of the businesses are known, on the basis of our secondary research and theprimary research with consumers, the suitability of advertising medium could beanalyzed with respective need of the company. As in, Every business is at a differentphase of growth from start up to growth to maturity and thus be having differentadvertising needs like ROI or image building etc.To understand which respective need ismet by which particular medium of advertising4.4.1 Sample FrameThe diverse set of 8 to 10 companies was interviewed from different industrial sector forthe said research. Companies from different phases of growth from start-up to growingto mature organisations were interviewed for the research. Companies having diversebusiness needs from sales, ROI, relationship building, brand building, InformationProviding etc so as to get the clear picture as to what are the needs of the diverse set oforganisations.4.4.2 Method of ResearchThere are generally two types of research methods, quantitative and qualitative. Thesemethods can be used together or separately, one should choose the method mostappropriate to the purpose of the thesis (Cantzler, 1992). The two approaches mainlydiffer in how to collect and analyze data. Quantitative method is focusing on statisticalinstruments and how to prove relations between different variables Furthermore, it ischaracterized by a large sample which is examined via forms, statistical methods andanalysis of the data. An advantage of quantitative research is the high degree ofobjectivity and due to the large scope of observations it is possible to makegeneralizations. Qualitative method on the other hand, means research that generatesdescriptive data (Taylor & Bogdan, 1984). It is said that the qualitative method reflectsupon something and that the data collection in this method is focusing on so called “soft”data. The purpose of the thesis is to get industry opinions and analyze them, ThusQuantitative method was used. 37
  38. 38. Following Research methods were used • Questionnaires: The questionnaire was very important aspect of research work. The questionnaire was constructed for the industry and company people, to get their opinions, which could further be analyzed and could help further in findings The type of questions used in the questionnaire were - Demographic Question - Multiple choice question with single choice - Multiple choice question with multiple choice - Single text box open ended questionnaire • Interviews: Interviews are chosen to gather information, a good way for us to get informed about the current situation. The interview help collecting data leading to solve the purpose of the research In order to obtain a thorough understanding of the organizations perspective of advertising in different medium, the authors decided to interview one of the co-founders of the company. It is not simple to define a qualitative research, as stated by Lekvall and Wahlbin (2001). A qualitative approach should be focusing on relatively small samples and the interviews should be low structured and be analyzed with verbal reasoning.4.4.3 Research methodologyThe questions to be asked from the industry people were keenly designed keeping inmind all the possible situations and probability. These are stated as follow: • To understand, whether the industry people actually realize the need of advertising in their business. Whether it exists or no. • To understand, how do they see advertising as a function of business. Whether it is long term, image building or short term, profit driven. 38
  39. 39. • To understand, which phase of growth businesses are in like start up, growth, maturity etc. So as to further correlate it with various other generalizations • To understand, how much target specific businesses are in their approach towards advertising. • What medium of advertising is employed by the business according to their needs and expectations? How apt that medium is in meeting the needs of the business. • How do they think, the required medium is helping businesses achieve their target set of customers and are they satisfied with their current choice of medium. • Who prompts them to a particular medium of advertising? Whether it is a higher management decision or marketing department decided or it was some outside agency.4.5 Research Method: Consumer PerspectiveThe research with consumers was extremely important for this study. The relevance ofaudience criteria to media comparisons hinges on the assumption that mediaeffectiveness is a function of the extent to which audiences possess characteristicspredictive of the future purchase of advertised items. Which further has various aspectsto it like likeliness towards a particular medium of entertainment, what builds more trustinside a consumer, or what is most action focused etc. Thus a research was carried outto study the behavioral aspects of consumers in context of their responses to variousmedium of advertising.4.5.1 Method of ResearchThe method used for the research was Questionnaires. For the purpose of saidresearch, three different questionnaires were designed having different objectives each.The questions used in the questionnaire were • Demographic Questions 39
  40. 40. • Multiple choice questions with one answer • Multiple choice question with multiple answeres • Rating scales • Open ended, single textbox questions4.5.2 Sample Frame:The Sample frame for each questionnaire was 30. While getting the questionnaire filled,keen interest was laid on maintaining the variability in the demographics of thepopulation, so as to get diverse opinion on the topic.4.5.3 Research Methodology:The research methodology for all the three questionnaires is stated as below:Questionnaire 1:The purpose of questionnaire 1 was to first understand which medium of entertainmentis most used by the people so as to get the information about, where the large chunk ofpeople could be located.Secondly to get the direct consumer opinion on the choice of the following mediums ofadvertising: • Television • Newspaper and Magazine • Outdoor Advertising • Radio • Direct mail advertising • Internet advertisingThe consumer’s opinion on the above said, mediums of advertising were analyzed onfollowing factors: • Enjoyment and Entertainment 40
  41. 41. • Informational • Action • Trust • Attitude • Irritability •Questionnaire 2:The said Questionnaire was used to get people’s opinions on different aspects ofadvertising in different mediums, a little more in detail than the previous questionnaire.Grilling them more on their opinions on the different mediums.Questionnaire 3:The aim of questionnaire 3 was to get the opinions of people on television as themedium of advertising and the brand , That gets an edge over others on adverting ontelevision. As television is still the mass media of advertising in India.Chapter 5 Analysis and Interpretations 41
  42. 42. 5.1 Consumer Research AnalysisConsumer research analysis carries the analysis of all the research done uponconsumers, to get their opinions and map their behaviours with respect to advertisingand the different medium of advertisins. Every question asked had a purpose in mind,which will be expleined in the analysis part with the results5.1.1 Questionnaire 1 : Behavioural testing of consumers on different Advertising MediumsTelevesion was the most viewed medium of entertainment for people, according tothem, followed by radio, newspaper, magazine and travelling.In this survey, The study was conducted on all the following Advertising mediums: • Television • Newspaper • Outdoor • Radio • Direct Mail • InternetIn the study, the consumers were asked to rank these mediums on following factors on a5 point likert scale • Entertaining • Informational • Reference to purchase and Trustworthy • Most Irritating.The results of the people are shown and discussed as follows A. Television Advertising 42
  43. 43. Strongly Agree Neither Disagree Strongly Rating Agree agree nor Disagree Average disagreeEntertaining 30% 30% 20% 10% 10% 2.40Informational 5% 55% 20% 20% 0% 2.55Reference to 0% 10% 45% 40% 5% 3.40PurchaseandTrustworthyIrritating 10% 30% 35% 25% 0% 2.75 Interpretations: • According to people, as rating average of entertaining in television advertising is minimum i.e. 2.40. Thus people find television to be most entertaining from amongst everything • Secondly, People find television advertising to be informational, i.e. they get their information from television because it has got rating average of 2.55. • After entertaining and informational, Television advertising was found to be Irritational because it got the rating avg of 2.75. • Lastly fourth rank was given to Advertising as a refernce to purchase.The above opinion shown says, People may found Television advertising to beentertaining or informational. But they still don`t consider it as an reference to purchase.Thus, From above opinions, It could be said that Television advertising should be keptby the company in its marketing campaign to keep the people interested in the brand notto make people purchase any productAs in the Polling of most favoured medium of entertainment, television tops the charts.Thus, both research says Company should advetise in television to create a good brandimage, but should not expect much sales from it. B. Newspaper and Magazine 43
  44. 44. Strongly Agree Neither Disagree Strongly Rating Agree agree nor Disagree Average disagreeEntertaining 20% 35% 30% 15% 0 2.40Informational 20% 50% 25% 5% 0 2.15Reference to 10% 35% 25% 25% 5 2.80PurchaseandTrustworthyIrritating 0% 10% 45% 45% 0 3.35 Interpretations: • People found Newspaper and magazine advertising as the most informational advertising, as the rating average for it is lowest that is 2.15 • Followed by informational, Newspaper advertising was found to be entertaing by the people followed by the rating of 2.40 • After informational and entertaining, Newspaper and magazine advertising was also found to be a rference to purchase and trustworthy. • People found newspaper and magazine adeverting to be least irritating.Newspaper and magazine advertising have perfect composition of all the components. Itis least irritating, as consumer will only be seeing it, if he wants to. It is even found to bemost informational medium and complete information further generates trust amongstthe minds of consumers.Thus, Newspaper and magazine advertising should never be left from the comapny`sadvertising campaign as it is found to be a reference to purchase and a trustworthymedium. C. Outdoor Advertising Strongly Agree Neither Disagree Strongly Rating Agree agree nor Disagree Average 44
  45. 45. disagreeEntertaining 21.1% 63.2% 15.8% 0% 0% 1.95Informational 5.3% 42.1% 26.3% 26.3% 0% 2.74Reference to 0% 31.6% 31.6% 31.6% 5.3% 3.11PurchaseandTrustworthyIrritating 0% 5.3% 47.4% 47.4% 0% 3.42Interpretations: • Outdoor Advertising was found to be the most entertaining by the people from amongst all other characterstics, as it got the least rating average i.e. 1.95 • There after, with the rating average of 2.74, outdoor advertising was also found to be informational after entertaining • After entertainng and informational, people ranked outdoor advertising as a refernce to purchase and trustworthy, Take the example of outdoor ads of various TV serials, it motivates the trials amongst the users. • Outdoor advertising, as like newspaper and magazine advertising was found to be least irritating.Thus outdoor advertising can be used for initiating first time trials among the users. D. Radio Strongly Agree Neither Disagree Strongly Rating Agree agree nor Disagree Average disagreeEntertaining 10% 35% 15% 20% 20% 3.05Informational 5% 35% 25% 15% 20% 3.10 45
  46. 46. Reference to 0% 10% 50% 25% 15% 3.45PurchaseandTrustworthyIrritating 5% 10% 45% 25% 15% 3.35 Interpretations: • Radio advertisements from amongst all the characterstics, was found to be more entertaing with the rating average of 3.05. But if the rating average of entertainig in radio advertisements is compared with all other medium, It is highest. That shows Radio is found least entertaing, if compared to any other medium. • Follwed by entrtaining, Radio ads was found to be informational • Reference to Purchase came third in consumer opinion with the rating average of 3.45 • Lastly came irritating with the average of 3.35 Radio Ads has the highest rating average from amongst all other mediums.That shows the least popularity of radio ads from amongst alll other mediums. People like listening to the radio ads the least. E. Direct Mail Advertising Strongly Agree Neither Disagree Strongly Rating Agree agree nor Disagree Average disagreeEntertaining 25% 10% 30% 25% 10% 2.85 46
  47. 47. Informational 15% 30% 25% 25% 5% 2.75Reference to 5% 10% 40% 35% 10% 3.35PurchaseandTrustworthyIrritating 20% 15% 35 20% 10% 2.85 Interpretations: • Direct mail advertising from amongst all the characterstics was found to be most informational with rating avarage of 2.75. Direct advertising is informational as the prime purpose of iit is to provide informationa and build relations. • Followed, by informational, people found it entertaing with the rating average of 2.85 • People also find it less irritating, with the rating avarage of 3.85. As this is the only medium of advertising, accessing which is completely in your hands. F. Internet Advertising Strongly Agree Neither Disagree Strongly Rating Agree agree nor Disagree Average disagreeEntertaining 15% 25% 40% 20% 0% 2.65Informational 15% 60% 15% 10% 0% 2.20 47
  48. 48. Reference to 10% 20% 40% 20% 0% 2.80PurchaseandTrustworthyIrritating 5% 25% 50% 25% 5% 3.00Interpretations:From amongst all the characterstics, Internet advertising was found to be mostinformational, with rating average of 2.20. Followed by entertaining, It was found to beinformational with the rating average of 2.65. Thereafter as a reference to purchase andtustworthy with the rating average of 2.80. Lastly it was found to be irritational with therating average of 3.00.Summary of Questionnaire 1:Combined rating average scale for all mediums Television Newspaper Outdoor Radio Direct Mail Internet Advertising and Advertising Advertising Advertising Advertising Magazine 48
  49. 49. AdevertisingEntertaining 2.40 2.40 1.95 3.05 2.85 2.65Informational 2.55 2.15 2.74 3.10 2.75 2.20Reference to 3.40 2.80 3.11 3.45 3.35 2.80Purchase andTrustworthyIrritating 2.75 3.35 3.42 3.35 2.85 3.00 Interpretations: 1) The list of all the mediums is given, compared to be as most entertaining to least entertaining as surveyed according to the research Outdoor Advertising 1.95 ------ Most Entertaining Television Advertising 2.40 Newspaper and magazine 2.40 Advertisng Internet Advertising 2.65 Direct Mail Advertising 2.85 Radio Advertising 3.05 ------- Least Entertaining 2) The list of all the mediums is given, compared to be as most informational to least informational as surveyed according to the research Newspaper and magazine ------Most Informational Advertisng 2.15 Internet Advertising 2.20 Television 2.55 2.74 49
  50. 50. Outdoor AdvertisingDirect mail advertising 2.75 Radio Advertising 3.10 ------- Least Entertaining 3) The list of all the mediums is given, compared to be as most trustworthy to least trustworthy as surveyed according to the researchNewspaper and Magazine 2.80 ------ Most TrustworthyadvertisingInternet Advertising 2.80Outdoor Advertising 3.11Direct mail Advertising 3.35 3.40TV AdvertisingRadio Advertising 3.45 ----- Least Trustworthy 4) The list of all the mediums is given, compared to be as most irritating to least irritating as surveyed according to the researchTelevision Advertising 2.75 ------Most IrritatingDirect mail Advertising 2.85Internet Advertising 3.00Newspaper and magazine 3.35advertising 3.35Radio AdvertisingOutdoor Advertising 3.42 ------ Least Irritating5.1.2 Questionnaire 2 : Behavioural testing of consumers on different Advertising Mediums -2 50
  51. 51. The purpose of this Questionnaire was to further understand consumer behaviour withregard to different advertising medium after understanding it through questionnaire 1.Question 1 How frequently you are in your news paper or magazine readinghabits? Public Opinion 80 70 60 50 40 30 20 10 0 Read more than 2 Read 2 Read single Don`t read newspapers and newspapers and newspapers and newspapers and many magazines some magazines few magazines magazines Newspaperand Magazines Reading Habbits Public OpinionInterpretations:The above question was asked to understand the newspaper and magazine readinghabbits of people. So as to see, How much people are accessible towards, newspaperas a medium of entertainment • Very few people read more than 2 newspapers a day • Where as 20% plus people read 3 newspapers and some magazines in a day. • Larger chunk of people i.e. near to 70% people read single newspapers and few magazines in a day • Wheress there are still people who never read magazines and newspapers and that number is less than 10 % Opinion Public 70 60Question 2 Did advertisements in newspaper and magazine, grab your 50attentions? 40 Public Opinion 30 20 10 0 Yes, Pay Sometimes, If Rarely Never keen attention they are catchy 51 How sucessful are newspaper and magazine in catching attention on Ads
  52. 52. Interpretations:After understanding the reading habbits of newspapers and magazines by the peopleand understanding how much people are accessible to a particular advertising medium.It was understood that, wheteher these advertisements grab the attention of people ornot.According to the reasearch, • Near to 25% of people said yes, newspaper advertising grab their attention. • And 60 % of people said, Sometimes newspaper avertising grab their attention, if they are too catchy. Thus major part of people were on the positive side of newspaper grabbing their attentions • And very few people said that, newspaper advertising rarely or never grab their attention. That is, the number was near to 15%. Thus, On a positive note most of the newspaper advertising grab people`s attention. Besides Newspaper advertising being informational and entertaining according to the previous research. Hence, Newspaper stands a fair chance in people`s eyes. For it being taking people`s attention and also being an informational and entertaining medium of advertising.Question 3 According to you, Had your purchase decision ever depended onthe Ads you saw in the newspapers or magazines? 52
  53. 53. Public Opinion 80 70 60 50 40 Public Opinion 30 20 10 0 Yes, Always Sometimes, If Rarely Never they are catchy Had your purchase decision ever depended on Ads seen in newspaper or magazinesInterpretations:After studying the accessibility and attention grabbing of newspapers, it was studied thatwhether all this leads to purchase or not. That is whether the people’s purchase decisiondepends on the add they see in newspaper or not.The result is still on the positive sides as more than 80% of people says that Yes andsometimes their purchase decision depends on the Ads being seen by them in televisionand newspaper magazinesQuestion 4 How frequently you listen to Radio in a day? Public Opinion 80 70 60 50 40 Public Opinion 30 20 10 0 Whole day Sometimes Rarely in a Never in a day day How frequently you listen radio in a day 53

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