Research at KFC Literature on advertisement


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Research at KFC Literature on advertisement

  1. 1. Research Objectives: Following are specific research objectives To critically examine the impact of advertisements of different media on KFC Halifax store‟s customers To vitally observe the impact of internet advertisings, commercial advertisings, and print media advertisings on KFC Halifax store‟s customers regarding different segments including gender, age, permanent customers etc. To make recommendations to the company as to how effective utilization of internet advertisings, commercial advertisings, and print media advertisings can leave positive effect on mind of its customers 1) Which type of advertising media of a KFC store in Halifax are people aware of? 2) Which type of advertising are customers in Halifax are more likely to respond to? 3) Is age, a factor affecting response to advertising for KFC in Halifax? 4) Is gender, a factor affecting response to advertising for KFC in Halifax? 5) Are there any other factors affecting response to advertising for KFC in Halifax? Background: Advertising is one of the most important aspects of marketing or promotion. Marketing on the whole have many tasks to accomplish and advertising is one of it. (Shah & D‟Souza, 2009). The subject marketing is too vast to write about in this small project. Advertising is being selected and impacts of it will be analyzed after the research. According to Deepa, (2013)advertising is the communication between the buyer and seller. It just doesn‟t give information about the product or brand, it influence the buyer and attract him to buy that product or brand. The word „advertising‟ came from Latin and it means „to attract attention to‟. This helps to understand the meaning and aim of advertising. According to Shah and D‟Souza (2009), “any paid form of non-personal
  2. 2. presentation and promotion of ideas or products by an identified sponsor is called advertisement.” If this general definition is analyzed the characteristics will be that advertisement is always paid content, „non-personal‟ comes to the point that it is not about any personalized or individually presented, „Promotion‟ is indicated to the fact that promotion is the aim and objective of advertisement and lastly, „Identified Sponsor‟ again identifies that it is not personal, it will be about some brand about which the promotion is being done. The objectives of advertisement are „inform, Persuade, Remind and Reinforce‟. To understand it better; inform is to let the people know about the product, Persuade is induce people to buy, old products are reminded back and last is reinforce, in this current customers are convinced that they have chosen the right thing. The advantages of advertisement are informs, persuades, remind and reinforce mass audience about a product and builds the identity of a brand. On the other hand, the disadvantages are, it is very expensive and it is within cluttered media with a high noise level (Shah & D‟Souza. 2009). According to Kumar (2011) some other advantages of advertisements in customer‟s context could be: These advertisements update the customers about the quality of the product and price as well. In most of the advertisements the prices of products are already announced, that‟s why there is not any chance for consumers to be over charged. If the customers will be attracted to the different brands by the advertisement. This will increase the competition between different organizations and they will try to make their products better to convince the buyer. Advertisements help the customers to save their important time. They will directly buy the product because they knew the quality and features of the product and price as well. They knew that they can afford it or nor before going shopping. This helps to increase the standard of living in people. It continuously providesinformation about the new designs of the cargos to customers and thus customers use those products and increase their living standard.
  3. 3. The promotional needs in the world are increasing day-by-day. According to the study done by Shah & D‟Souza (2009) there is increase in the advertising budget of the whole world with the ratio of approx. 5% every year. There is different type of media being used for advertisement. According to Tellis et al (2000) TV is one of the most convenient methods of advertising. Cho, (2003) added online banners and internet as advertisement tool. Naik and Raman (2003) said that there are traditional and non-traditional methods of advertising which includes radio, T.V, social media, billboards and printed ads. Fortin and Dholakia, (2005) stated that print media is one of the most effective method of advertising. The response of advertisements on print media is highly demonstrative. Grier et al. (2007) explained that advertising for fast food using all types of media including print, online, billboards, radio, newspapers and store promotions. As compared to the traditional means of advertisement, online advertisement is more attractive. Internet advertisement didn‟t even exist some 20 years before but now it is most important aspect of advertisement (Hua et al, 2011).According to Laroche et al (2013) the advertising on the internet is a popular way to advertise now-a-days. The age segment which is attracted by the online advertisement is youth segment. But this isn‟t true that youth is the only segment attracted by internet, people of other age groups are also attracted by online advertisement. Glenday (2012) claims that KFC online advertisement especially on social media like Facebook, Twitter and also on YouTube is running successfully and proved useful to attract and connect with customers. KFC have 830,000 fans on its page on Facebook. KFC is also using paid advertisement on Facebook for promotion of its products. This is one example of using social media by KFC for advertisement. KFC is using all available media for promotion. They are doing a multimillion campaign which includes, online, TV, radio, billboards and print media. Cartere (2009) described there is different type of media which is becoming popular day-by-day, but TV advertisement are still the most effective and convenient way to advertise. The advantages and disadvantages of different medium of advertisement could be different. Some important of them will be discussed below:
  4. 4. Newspapers: Some advantages of ads on newspapers are: 1. The newspapers allow the advertisement to reach a huge people in a special area. (Wakolbinger et al, 2009) 2. The ad size and design of ad and also the placement of ad have a big flexibility in publishing in a newspaper (burns et al, 2006) 3. The advertisement could be as long as desired by the organization. 4. The exposure to ad is not restricted; readers can go back to your message again and again if so desired (Kumar, 2011) 5. The speed of advertisement publishing is very high. If you decide for an ad today. It could be in customers‟ hands in one or two days after that (Gallacher et al, 2001) Some disadvantages of ads in newspapers are: 1. The Ad space in newspaper can be expensive and it also depends on the size of ad. Sometimes price made ad a bit small than usual (burns et al, (2006) 2. The advertisement has to contest against the clutter of other advertisers, including the giants ads run by supermarkets and department stores as well as the ads of your competitors (Leong, 1998) 3. The Poor photo replica limits creativity of your ad (Wakolbinger et al, 2009) 4. The ad in newspaper has a very short life time because the newspapers are usually read once and then wasted (Wu et al, 2003) 5. The increasing attractiveness of the Internet also has an impact on the readership of printed newspapers. A large number of people now read newspapers online and mostly they get news from other online media and don‟t read newspapers (Kumar, 2011)
  5. 5. Radio: Some of the advantages of radio advertisements are: 1. Radio is a universal medium and people listen to the radio at home or work or during travel. It can access a large number of people (Leong, 1998) 2. The enormous range of radio formats offers to effectively target to your desired segment of the population (Hackley, 2005). 3. It helps to create your brand name by different campaigns (Gallacher et al, 2001). 4. The creative help is mostly freely available in the radio station. 5. The price of ads could be negotiated, as there are very few people involved in this process (Wu et al, 2003) Some disadvantages of radio advertisements are: 1. There is a possibility that the advertiser have to advertise on different channels at the same time because the listeners are spread on many channels and to attract them advertise needs to advertise on different channels (Burns et al. 2006) 2. Newspapers can be read again but if the ad is gone on the radio you cannot rewind it. 3. “Ads are an interruption in the entertainment. Because of this, a radio ad may require multiple exposure to break through the listener's "tune-out" factor and ensure message retention” (Kumar, 2011). 4. “Radio is a background medium. Most listeners are doing something else while listening, which means that your ad has to work hard to get their attention” (Kumar, 2011). Television: Some of the advantages of television could be:
  6. 6. 1. The television advertisement reaches to a large numbers of people on international, national or regional level in a very short period of time (Carterre, 2009) 2. The new cable and Independent stations offer new chances to local audiences (Carterre, 2009) 3. Television as an image-building and visual medium offers the ability to deliver your message with sight, sound and motion (Kumar, 2011) Some of the disadvantages of television advertisement could be: 2. The preferred prime time ads are usually sold out far in advance. 1. Limited length of advertisement decreases the desired anount of information communication. 2. “Relatively expensive in terms of creative, production and airtime costs.” (Kumar, 2011) 3. The advertisement on TV is temporary. There is a chance that the viewer needs to watch it more than once to get understanding. Basically, the advertisement needs many exposures to rise above clutter (Scully et al, 2008) Internet: Internet is broader than any other medium of advertisement. The advantages of online advertisements are: 1. The usage of internet is growing day-by-day. (Vurro, 2009) 2. The appreciation of online advertisement is 5.2% higher as compared to other mediums of advertisement (Vurro, 2009). 3. The advertisement on internet is mostly for the young segment of population. (Chi et al, 2012)
  7. 7. Some of the disadvantages of internet advertising are: 1. “Advertising delivery onsites deemed not appropriate for brandadvertising due to objectionable contentconsidered to be in violation of brand safety.” (Vurro, 2009) 2. Cookies are used mostly for the ads, and mostly cookies are deleted by most of the internet users, this decreases the viewership of ads and there is large number of errors in measuring viewership (Flossi et al, 2013) 3. It is not necessary that the viewer will click the ad and will see the full advertisement. (Chi et al, 2012) Now-s-days TV is the most convenient way to reach the large number of people as described by Tellis et al (2000). On the TV advertisement, the fast food companies try to attract the young customers. Malik, (2012) said that fast food companies deliberately make the ads to attract young people and specially children watching TV. This reason for this advertisement is that this segment of market is become very important for fast food makers (McNeal, 1998). A large number of fast food organizations are spending millions of dollars to attract this segment of consumers (Jardine and Wentz, 2005). The youngsters‟ market has developed considerably important to marketers (McNeal, 1998). To stop the bad impact of advertisement in Europe, most of the organizations have established Self-regulatory measures to stop advertising junk food and helping to deal with child obesity (Wentz, 2006). The main focus of advertisement should be the effectiveness of that advertisement campaign (Yo et al, 2004). The effectiveness could be measured by the increase of sales (Tellis et all, 2000). Briggs et al, (2005) gave one more way of measuring the success and stated that the brand awareness is one of the important measures of success of an advertisement campaign. Fast food organizations are using multiple media to advertise their products. Naik & Raman (2003) stated that the effectiveness of the advertisement could be increased by using both traditional and non-traditional
  8. 8. means of advertisement. Chang and Thorson (2004) said that when more than one medium of advertisement are used the effectiveness of that advertisement is increased. There is a significant relationship between a well-planned media strategy and success of advertisement of product. According to Deepa, (2013) if the advertisement of the campaign is not made after complete research and planning there are more chances of failure. It is very important to search the market first and then target the right segment in the advertisement campaign. Hackley (2005) argue that:„The central task of the advertising media planner is to select, negotiate and buy media exposure for the campaign, to ensure that the ads will reach the largest number of desired consumers possible within the media budget‟. According to Market watch (2008), the fast food companies are attracting the customers with different advertisement which usually includes that the food is very tasty and cost effective. This approach is increasing day by day and companies are advertising on the basis of taste. The quality is still a big concern for the customers. Tellis (2004) described that fast food companies attract people by advertising through convenience, ready to eat and readily available options. Consumers do response to advertisements of fast food on different media. Glenday (2012) claim that people response to online advertisements and it can be seen as in 2012 the numbers of Twitter followers of KFC were around 79,000 and on Facebook it got around 3.9m likes. The study of Scully etal (2008) shows a direct relationship between commercial television viewing and fast food consumption. The survey results done by Scully etal (2008) shows that, the respondents who spend three (3) hours per day viewing television are more likely to buy fast food once in a week as compared to respondents who spend one (1) hour per day watching TV. According to Bauer etal (2008), „eating at fast-food restaurants is common among adolescents. National data indicate that on any given day nearly 40 % of high-schoolaged adolescents report consuming food from a fast-food restaurant‟ (p: 1767). Most of the consumers face problems in balancing there work life and private life. According to Market Watch (2008) most of the consumers struggle to have a balance in
  9. 9. their private and work lives and they use fast food to save time. Fast food is available very quickly and people can just eat that in office or on the way to office. This shows that the reason for increasing use of fast food product could be bust schedule of people in life. “Advertising has been criticized for promoting materialism, persuading individuals to Buy things they do not need and providing false or misleading information” (Pollay and Mittal, 1993). The commercial promotion of unhealthy and unsafe products is a big concern for the policy makers (Austin &Nach-Ferguson, 1995). It is recommended that the promotion of fast food should have restrictions to advertise (Mosher, 1994; Signorielli&Lears, 1992). Brigg.R., Krishnan. R and Borin. N., (2005) “Integrated Multichannel Communication Strategies: Evaluating the Return on Marketing Objectives—the Case of the 2004 Ford F-150 Launch.” Journal of Interactive Marketing Chang, Y., and E. ThorSon.(2004) “Television and Web Advertising Synergies.”Journal of Advertising Cho, C. h., (2003) “The Effectiveness of Banner Advertisements: Involvement and Clickthrough.” Journalism & Mass Communication Quarterly80 Deepa. I. R., (2013),Impact of Advertisements on Purchase Decision of Youth with reference to Consumer Goods, Advances in Management. Fortin, D. r., and r. r. Dholakia., (2005) “Interactivity And Vividness Effects on Social Presence and Involvement with a Web-Based Advertisement.” Journal of Business Research Jardine A and Wentz L (2005), “It‟s a Fat World After All”, Advertising Age,March Issue. Laroche. M, Kiani. I, Economakis, N. and Richard, M. (2013) “Effects of Multi-Channel Marketing on Consumers‟ Online Search Behavior The Power of Multiple Points of Connection, Journal of Advertising Research Malik. G., (2012), The Unethical Practices of Food Advertisements Targeted at Children:A Parental Viewpoint, The IUP Journal of Marketing Management
  10. 10. Market watch (2008), KFC: Focusing on Convenience instead of Overstating Health, datamonitor, [Available online at] McNeal J U (1998), “Tapping the Three Kids‟ Markets”, American Demographics, Vol. 20, pp. 36-41. Naik, P. A., and K. Raman., (2003) “Understanding the Impact of Synergy in Multimedia Communications.” Journal of Marketing Research Wentz L (2006), “Pop Stops Kids‟ Marketing in Europe”, Advertising Age, January 30, [available at] Yoo, C. Y., Kim. K,andStout. P. A., (2004) “Assessing the Effects of Animation in Online Banner Advertising: Hierarchy of Effects Model.” Journal of Interactive Advertising