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ADVERTISEMENTS
Presented By
Name: Anshu Maheshwari
Department: Bachelor of Business Administration
College: Dezyne E’cole College
Project report on
Advertisements
Submitted To
Dezyne E’cole College
Towards
The Partial Fulfillment
Of 2nd Year, Bachelor of Business Administration
By
Anshu Maheshwari
Dezyne E’cole College
106/10, Civil Line Ajmer
www.dezyneecole.com
SYNOPSIS
This project report on Advertisements has been write down by me, during my study of
functional management in BBA 3rd
semester.
In this project I have discussed why advertising is needed to aware the customer about the
product and also discussed the different types of media and what types of media is actually
affect the consumer behavior. I have been included in my project the purpose of advertising
and different aims of advertising with the examples.
Further I paid attention to the consumer behavior of a particular product. I even paid
attention in the different types of behavior of consumers and different factor that influence
the consumer behavior with example.
Finally I give the conclusion of these topic.
I request you to kindly go through my project pages. I will try to bring out the best of my
knowledge gained at Dezyne E’cole college.
Acknowledgement
I am Anshu Maheshwari student of department Bachelor of Business
Administration of Dezyne E’cole College would like to express my
gratitude to each and every person who has contributed in stimulating
suggestions and encouragement which really helped me to coordinate
my project.
I also thank Dezyne E’cole College who provided insight and expertise
that greatly assisted the project. Also, special thanks to my teachers,
parents and colleagues who have supported me at every step. Not to
forget the almighty who blessed me with good health because of
which I worked more efficiently and better.
Content
1. Introduction
2. Meaning of advertising
3. purpose of advertising
4. Features of advertising
5. Advantages of Advertising
6. 5M’s of advertising
7. Different aims of Advertising
8. Media of advertising
9. Stage of Advertising strategy
10.Case study
11.Consumer behavior
12.Factor influencing consumer behavior
13.Types of buying decision behavior
14.Conclusion
INTRODUCTION
Advertising is a psychological game that one can hate or love but cannot ignore. It is a process
of communication between the seller and the prospective buyer. Advertising are usually
found in magazine, newspaper, on television, radio and billboards, and even now on the
internet. Advertising don’t just have to be about selling something. They can also persuade
the public to change their behavior. Successful advertisements usually adhere to the following
structure, known as the ALDA theory.
ATTENSTION
INTEREST
DESIRE
ACTION
Advertisement must catch the public’s ATTENTION
• A successful advertisements will have something about it that attracts the attention
of the public. Successful ways to catch attention include a jingle, a logo or slogan.
Advertisements must maintain the public’s INTEREST
• After catching their attention, maintaining interest is the hardest part. Need to apple
to the public in some way so that what you are saying seems relevant to their lives.
• You can apple to their emotions- happiness, fear, anger.
• You can apple to their weaknesses- jealousy, vanity, selfishness.
• You can apple to their problem- time poor, work issue, global conflict.
Your advertising must create the public’s DESIRE
Most people need or want something and many people need or want same thing. You could
stimulate.
• Their need to belong
• Their desire to get ahead in life
• Their need for peace
• Their desire to feel good about themselves
• Their desire to protect their families.
Your advertising must have call for ACTION
A successful advertising will invite the public to take specific action. There might be a phone
number to ring, a behavior they can change, an internal address, or a group to join.
1Chapter
Advertisi
ng is
technique
of succes
creative
process
A non-
personal
communic
ation
Marketing
technique
Execution
of creative
thinking
media
dependent
paid
communic
ation
give information Attract Attention
Create Awareness
Influence buying
behaviour of consumer
What is advertising?
The word advertising is derive from the Latin word “advert ere” which literally means “to
turn the mind of…towards.”
Purpose of advertising
It is medium of mass communication. Manufacturers supply information about new product
through it. The fact that companies spend millions of dollars on it through TV, radio, the
internet, newspaper, indicates its benefits in sales promotion.
The main purpose of advertising is to
Features of advertising
1. Provide information
Advertising’s primary purpose is to provide information about products and services
to prospective buyers. The details of products such as features, uses, price, benefits,
manufacture’s name, so on; are in the advertisements. The key message and brand
name are also there. The information supplied educate and guide consumers and
Facilitate them to make a correct choice while buying a product.
2. Paid communication
Advertising is a form of paid communication. The advertisers pays to the media for
giving publicity to his AD message. He also decide the size, slogan, etc. give in the
advertising.
3. Non-personal presentation
Advertising is non-personal in character against salesmanship, which is a personal or
face to face communication. Here, the message is given to all and not to one specific
individual. This rule applicable to all media including the press. However, even in it,
target consumers or target market can be selected marketing an AD appeal.
4. Publicity
Advertising publicizes goods, services, ideas and events. It is primary of different
types. It offers new ideas to customers as its contents are meaningful. The aim is to
make the popularize ideas and there by promote sales.
5. Primary for persuasion
Advertising aims at the persuasion of potential customers. It attract attention
towards a particulars products, create a desire to have it, and finally induces
consumers to visit the market and purchase the same. It has a psychological impact
on consumers. It influence their buying decision.
6. Target oriented
Advertising becomes effective and result oriented when it is target oriented. A
targeted advertisements intensively focuses on a specific market a particular group
of customer (like teenagers, housewife, infants, children, etc.) here, the selection of
a particular market is called a target market.
7. Art, science and profession
Advertising is art and science and profession, and this is now universally accepted. It
is an art it is needs creativity for raising its effectiveness. It is a science as its
principles or rules. It is also a professional as it has a code of conduct for its member
and operates within a standards set by its organized bodies.
8. Creativity
Advertising is a method of presenting a product in an artistic, attractive and
agreeable manner. The creative people (professionals) introduce creativity in
advertisements. Without it, the ads won’t be succeed. Therefore, creativity is called
the ‘Essence of advertising.’
Advantages of Advertising
The advertising benefits two main groups, namely
1. Manufacturers
2. Consumers
The advantages of advertising for manufacturers:
1. Large-scale production and marketing
Advertising is useful as a sales promotion technique. It give information to
consumers and encourages them to purchase more. Manufacturers expand their
production base due a higher market demand created through advertisements.
2. Introducing new products
Advertising facilitates the introduction of new products. Due to it, information about
new product is given to the people. A demand generates because of this, and the
manufacturer can sell new products along with the existing ones.
3. Creates new demand
Advertising spreads information and encourage consumers to purchase new
products. It creates a new demand. Customers are offered various concessions in the
initial period. It generates positive responses from them, and soon new customer
also respond. Thus, advertisements create new demand from non-user.
4. Effective personal selling
Advertising create a proper background for personal selling. It gives advance
information to the prospects. They visit the shop in order to purchase a particular
product that they know through advertisements in media. The job of a sales man
becomes easy as consumers develop an affinity for advertised products. In brief, it
supports and supplements personal selling.
5. Builds brand image
Advertising build brand image and this develops consumer loyalty towards a specific
brand. Manufacturers introduce branding to popularize their products with a distinct
personality. Brands get popular through advertisements. As a result, buyers develop
loyalty toward a specific brand.
6. Reduces cost of production
Advertising creates demand and promotes sales. It enables a manufacturer to
conduct production on a large scale. It leads to a reduction in the cost of production
and distribution. As a result, the profit margin of the manufacturer increases.
7. Facing promotion
Advertising aids a manufacturer to deal with market competition effectively. It helps
him to promote and popularize his products. He can remove misunderstanding
among consumers about his products through appropriate advertisements.
8. Sales promotion
a manufacturer can make his sales promotion campaign successful by using the
support of advertising. He can prepare a proper background for the success of such
an ad-campaign as it facilitates direct communication with consumers.
9. Goodwill builder
A manufacturer can build up goodwill in the business world and also among the
group of customers through advertising. The social welfare programs and
community service activities can get wide publicity through advertisements. The
public can notice even the progress of the organization through it.
The benefits of advertising for consumers
1. Information and guide
Consumers get information and guidance advertising. They can study the
advertisements of competitors and selected the appropriate products that are best
suited and profitable to them. It helps to avoid their cheating and exploitation at the
hands of middlemen.
2. Acts as a reminder
Advertising act as a reminder to consumer and alerts them about the urgent product
they need to purchase.
3. Attracts customers
Advertising leads to competition among manufacturers and retailers. They have to
offer something special in order to attract buyers. Such attraction offers benefits to
consumers. For example, manufacturers have to bring down the price in order to
attract customers. They have to supply quality goods in order to attract them more.
All this is beneficial to consumers in terms of price and quality of goods.
4. Raises living standards
Advertising raises the standard of living of people by supplying information about
goods and services, which can offer convenience and pleasure to them. It guides
consumers in the selection of most suitable products for their daily life. Thus, it
provide a higher standard of living to consumers as social group.
5. Efficient product use
Consumers get information about uses or benefits of different products through
advertising. They also get guidance as regards the right manner of using the product
and helps to avoid any possible damage from the use of a purchased product. The
information supplied through advertisements helps to know how to use a product in
different ways.
6. Removes misunderstanding
Advertising helps most consumers in removing their misunderstanding about certain
products. They change their attitudes towards products and services due to it.
Five M's
1. mission 2.money 3. message 4. media 5. measurement
5M of Advertising
The decision making in advertising is a five-step process. It called ‘five M’s of advertising.’ It
consist of:
1. Mission:
• Mission refers to the purpose or objective of advertising.
• These goals vary in character and mainly include:
o Sales promotion
o Information and guidance to consumers
o Developing brand loyalty
o Market goodwill
o Facing market competition effective
o Making the products popular or successful
o The introduction of a new product in the market.
• The decision in regard to mission or objective is a basic one, and all other decisions
get adjusted according to it. For consumer product like chocolate, toothpaste,
soap, etc., the mission or objective including facing market competitions, sales
promotion and to make a product successful in the market.
2. Money:
• Money refers to the financial provided for advertising purpose. It makes an AD
budget. It means the budget allocation made by the company for running the
entire operation of ad campaign. Money provided is a limiting factor because the
effectiveness of advertising, media used, coverage of advertising, etc. are all
related to the funds provide for running advertisements. Advertising is a costly
affair, companies have to spend millions of dollars on it. It should always be within
the limits of funds provided. Naturally, decisions is selecting in advertising package
should be properly adjusted to the allocated AD budget.
• Consumer’s products like toothpastes or chocolates are highly competitive with
many substitutes readily available in the market. Naturally, extensive advertising
on TV, newspaper, radio etc. is required. These media are costly. So, the
manufacturing or marketing company will have to provide huge money for
advertising purpose.
3. Message:
• The message gets delivered through the text of an advertisements. It is passed
through written words, picture, slogans, and signs. It is for the information,
guidance and motivation of prospective buyers. Attractive and meaningful
message give positive result-oriented. For this, the services of creative writers,
artists, etc. are used to give an appealing message to the consumers.
• Here, the advertiser has to decide:
o How to deliver the message?
o Which media is used to communicating the message?
o What would be the extend of creativity?
o Which specific customer group be targeted with the message, so on.
• The AD message related to the decisions taken in regards to the mission, and
money provided for the purpose of advertising.
• For advertising consumer product like chocolate, the message is important for its
success. Chocolate is favored mainly by children and teenagers. The message
should be such that it is beneficial and appealing to the younger minds. It must
have a promise of a taste pleasure and satisfaction as expected by the younger
generation. The AD message should be simply and easily understandable with the
help of a picture or slogan. It should also be attractive and agreeable to the
younger generation. The pictures or slogan used should be short and impressive.
4. Media:
• The advertiser has to take a crucial decision about selecting a proper media for an
advertising purpose. Media differ as regards to cost, coverage, effectiveness or
impact, etc. the selection of media depends of the budget provided, products
getting advertised, and features of prospective buyers, so on. A wrong decision on
media may make entire advertising ineffective and money spent on it will be
wasted. Therefore, a media should be properly selected, and decision in this
regard is essential and critical.
• For advertising popular and extensively used consumer item like chocolate, the
media should be selected properly. Cartoon TV channels, comic book, newspaper
supplement meant for kids, etc., should be preferred.
5. Measurement:
• Measure related to the effectiveness of advertising. An advertiser will like to
evaluate advertisement in order to have to measure judge its effectiveness. If an
advertising is not effective, it will be modified or withdrawn. It is necessary to
avoiding expenditure on the advertisements that is not purposeful or is not likely
to give any positive results. An advertiser has to measure the effectiveness of his
ad program or campaign and take suitable decisions. The decision making as
regards effectiveness of advertisements is equally important and essential.
• For measuring effectiveness of chocolate advertiser, the post advertising sales is
one major condition. Demand creation in new market segments or new age group
is another factor in the measurement of an add effectiveness. Even the success of
a sales promotion program is useful for measuring the effectiveness of an
advertisements.
In brief, like other areas of marketing management decision-making is necessary for
advertising. It relates to the M’s – Mission, Money, Message, Media, and Measurement.
Different aims of Advertising
1. Informative Advertising:
Often used to launch a new product or to reach a new group of customer gives
people basis information like what a product dose, how someone might use it,
where they can find it and what the price point is. The objective is to capture
interest, raise awareness, leave a positive impression, and motivate people to take
the next step, like making a purchases or requesting more information.
EXAMPLE- pepsi Co’s “7up” lemon
2. Persuasive advertising:
It generally aims to increase demand, influence people to change brands, motivate
people to make a purchases. It might show the benefits a product offer or company
key features against a leading competitor.
EXAMPLE- Subhiksha
3. Reminder advertising:
Reminder advertising reassures people who already know and potentially like a
brand with a goal of keeping the product and services top of mind for future
purchases. It may include customer testimonials.
EXAMPLE- Coca Cola
4. Reinforcement advertising:
Its aims to convince current purchases that they made the right choice.
EXAMPLE- volkswagon
5. Defensive advertising:
It is one in which marketers advertise to offset or lesson the effect of a competitor’s
promotional program.
EXAMPLE- Ayurveda ads against patanjali.
6. Local advertising:
It used by the firms wants to restrict itself to the local area in the beginning.
EXAMPLE: Nirma
7. Global advertising:
It used by the multinational firm who treat the world as their market.
EXAMPLE- Samsung
8. Service advertising:
It used by the firms who provide services to the customer.
EXAMPLE- kingfisher Airlines
Media of advertising
1) Print Advertising
2) Radio(audio) Advertising
3) Television(video) advertising
4) Mobile Advertising
5) Digital Advertising
1. Print Advertising:
One of the oldest way to promote things, print advertising includes a number of
different formats, from flyer to other printed promotional material.
Most often when people refer to print advertising, they are referring to one of three
types of ads Newspaper, Magazine. This kind of advertising can be cost effective
and, while circulation number may be one the decline, can still be a very effective
way to promote a brand.
• Planning a print advertising budget:
The budget for a print advertising companies will be guided by several factors, which
may include:
 Distribution, with the option to include your ad in one or more edition.
 The size of your ad.
 Frequency in the publication, like having your ad on the fourth page.
 Whether you choose to print your ad in colours.
2. Radio (Audio) Advertising:
Like print media, radio has a reputation for being past its prime and there’s no doubt
it’s an industry that has to adopt. But radio in many ways, is still thriving: a study by
Edison research into listing habit found that Americans, on average, tune in for four
hours five minutes to audio a day, and more than half that time is spent listening to
broadcast Radio.
Broadcast radio include long standing AM/FM stations, internet radio and even TV
music channels
Radio advertising often offers rates that are competitive with other types of
advertising and it can be a great way to literally get inside your audience’s head and
add personality to your brand. Local radio can be particularly effective way to reach
an audience with a specific geographic region.
• Planning a radio advertising budget
The price of a radio companies is dictated in part, by the size of a radio station’s
market as well as their rating. The factor you will negotiate over include.
 Frequency, or how other your ad will be aired.
 The timing of when your ad will air- for example morning or afternoon “rush hour” is
often consider peak airtime.
 The length of your ad, which can range from a brief mention to a 60 second rang.
3. Television (video) Advertising:
Television advertising is generally the most costly to produce and place. Television
ads are engaging, with the benefit of audio and radio to grab someone’s attention
and get your message across in seconds.
Television ads also work well as part of multi – channel companies, building
momentum and reinforcement a brand message through tie-ins to social and digital
activities.
Planning a television advertising budget
Like radio advertising, the cost of television advertising is shaped, in part, by both
the size of a station’s market and its ratings.
It is also influence by the programing your ad is connected to television ads are most
commonly sold in 30 second spots, and the cost is driver by the number of people
expected to the watching.
4. Mobile Advertising: Mobile advertising is still a work in progress, but it is growing
fast. In many ways, mobile advertising mirrors digital advertising can use display ads,
video, social and search advertising to promote a bran, product and services.
The promise of mobile advertising is in the things desktop can’t do.
• Location based targeting, which uses services to deliver ads when someone is a
define geographic range.
About half of search are done to find local information.
• Mobile rich media ads, like “click to call” and linking into a smartphone’s mapping
capabilities.
• In app advertising, which can include everything from static banner ads, to
interactive part of the app experience (ex. Product placement)
• App extension, which encourage people to download an app through search or
display network advertising.
• Push notifications, technically possible for promotions, ae not allowed to be used for
advertising on either iOS or android.
There are also some very successful types of promotion that just don’t work on mobile
device. Pop-up ads, for example, can be a very effective way to convert web visitors or
mobile devices however, they just get in the way.
5. Digital Advertising: Digital advertising is the newest and fastest growing advertising
category. In 2014, more than one- quarter of ad spending went to digital advertising,
according to a report from remarketer
There are a different types of digital ads
a) Display advertising, other to as “banner ads” which can use text or image be
interactive, or include video.
b) Video advertising, which can include video used in display advertising. However, it
generally refer to ads that are place on video channels to rim before, during or after
the main video.
c) Social advertising, refers to paid advertising option on social networking like
Facebook, twitter, Instagram.
d) Search advertising, refers to the paid text based ads that are shown beside
“organize” search result on Google.
Stage in Advertising Company
Several Steps Are Required To Developed An Advertising Companies The Number Of Stages
Are Exact Order In Which They Are Carried Out May Key According To An Organization
Resources, The Nature Of Its Product And The Types Of Audience To Be Reached. The Major
Stages Are Given Below:
1. Identifying And Analyzing The Advertising:
Under This Step It Is To Decide As To Whom Is The Firm Trying To Reach With The
Message. The Advertising Target Is The Group Of People Toward Which Advertisement
Are Aimed To For This Purpose Complete Information About The Target Market. I. E.
The Location And Geographic Location Of The People, The Distribution Of Age, Income
Sex, Education Level, And Consumer Attitudes Regarding Purchase And Use Both Of
The Advertising Product And Competing Products In Needed With Better Knowledge
Of Target Market, Effective Adverting Companies Can Be Developed On The Other
Hand. If The Advertising Target Is Not Properly Identified And Analyzed The Companies
Is Dose Likely To Be Effective.
2. Determine The Advertising Objective:
The Objective Of Advertisement Must Be Specifically And Clearly Define In
Measureable Term Such As “To Communicate Specific Quality About A Particular
Product To Gain A Certain Degree Of Penetration In A Definite Audience Of A Given
Size During A Given Period Of Time”.
The Goal Of Advertising May Be To:
1).Create A Favorable Company Image by Acquainting the Public with the Service
Offered Available to the Employees and Its Achievements.
2). Create Consumer Or Distributer Awareness By Encouraging Request Providing
Information About The Type Of Product Sold, And Indicating How Product Or Services
Can Be Used.
3).Encourage Immediate Sales By Encouraging Potential Purchases Through Special
Sale Contests, Getting Recommendation Of Professional People About Company
Products Etc.
4). It Secure Action By The Reader Through Associating Ideas, Repetition Of The Same
Name In Different Contexts, Immediately Action Appeal.
3. Create The Advertising Platform:
An Advertising Platform Consist of The Basic Issues or Selling Point That Advertiser
Wishes To Include In The Advertising Companies. A Single Advertisement In An
Advertising Companies May Contain One Or More Issues In The Platform.
4. Determine The Advertising Appropriation:
The Advertising Appropriation Is The Total Amount Of Money Which Marketer
Allocates For Advertising For A Specific Period. Determining The Companies Budget
Involve Estimating Now Much It Will Cost To Achieve The Companies Objectives. If The
Company’s Objectives Are Profit related and stated Quantitatively, Then The Amount
Of The Company Budget Is Determined By Estimating The Purposed Company’s
Effectiveness in Attaining Them. If Companies Object Is To Build A Particular Type Of
Company Image, Then There Is Little Basis For Predicting Either The Companies
Effectiveness Or Determining The Budget Required.
5. Selecting The Media:
Media Selection Is An Important Since It Cost Time Space And Money Various Factors
And Influence This Selection, The Most Fundamental Being The Nature Of Target
Market Segment, The Type Of The Product And Cost Involved.
Media From
Direct mail Circular, catalogues, booklets, folders
Broadcast or radio and T.V. Spot, sectional or national trade cost
House to house Sampling, free gifts, novelties
outdoor Poster and bills on walls
6. Creating the Advertising Message:
This Is an Important Stage of Advertising Company. The Content Of The Message Has
To Be Very Carefully Drafted In The Advertisements. Features Of Person In The
Advertising Target Influence The Message Content And Form. An Advertising Must Us
Words, Symbols And Illustration That Are Meaningful, Familiar And Attractive To
Those Persons.
7. Evaluating The Effectiveness An Advertising:
The Effectiveness Of Advertising Is Measured For A Variety Of Reasons.
a) To Determine Whether A Company Accomplished Its Advertising Objects.
b) To Evaluate The Relative Effectiveness Of Several Advertisements.
c) To Determine The Strengths And Weakness Of Various Media And Media Plans.
In other words, measuring advertising is needed to determine whether proposed
advertisement should be used and if they will be might be improved; and whether going
company should be stopped, continued, or changed.
2CHAPTER
Customer’s buying behavior
Consumers around the world vary tremendously in age, income, education level, and tastes.
They also buy an incredible variety or goods and services. How these diverse consumer’s
connected with each other and with other elements of the world around them impacts their
choices among various product, services, and companies.
Factor influencing consumer behavior
1. Purchasing power
Purchasing power of a consumer plays an important role in influencing the consumer
behavior. The consumer generally analyze their purchasing capacity before making a
decision to buy a product and services. The product may be excellent, but if it is fail to
meet the buyer purchasing ability, it will have high impact on it sales. Segmenting
consumers based on their buying capacity would help in determining eligible
consumers to achieve better result. Understanding, analyzing and keeping track of
consumer behavior is very critical for a marketing department to retain their position
successfully in the market place.
Let’s assume $ 1bought 1.50 gallons of gas in 1987. Today, $1 buys about half a gallon.
This is the example of the change in the purchasing power of the American dollar.
2. Group influence
Group influence is also seen to affect the decisions made by a consumer. The primary
influential group consisting of family members, classmates, immediate relatives and
secondary influential group consisting of neighbors and acquaintances are seen have
greater influence on the purchasing decisions of a consumer.
Say for instance, the mass liking for fast food over home cooked food or the craze for
the SUV’s against small utility vehicle are glaring examples of the same.
3. Personal preference
At the personal level, consumer behavior is influence by various shades of likes, dislike,
priorities, morals and values. In certain dynamic industrial such as fashion, food and
personal care, the personal view and opinion of the consumer pertaining to style and
fun can become the dominant influencing factor. Though advertisements can help in
influencing these factor to some extent, the personal consumer like and dislikes exert
greater influencing on the end purchase made by a consumer.
4. Economic conditions
Consumer spending decisions are known to be greatly influenced by the economic
situation prevailing in the market. This hold true especially for purchases made of
vehicles, house and other household appliances. A positive economic environment is
known to make consumers more confident and willing to their personal financial
liabilities.
5. Marketing campaigns
Advertisements plays a greater role in influencing the purchasing decisions made by
the consumers. They are even known to bring about a great shift in market share of
competitive industries by influencing the consumer purchase decision to such an
extent that they may opt for one brand over another or indulge in indulgent or
frivolous shopping. Marketing campaigns if undertake regular intervals even help to
remind consumer to shop for not so exciting products such as health products or
insurance policies.
Types of buying decision behavior
There are a four types of buying decision behavior such as
1. COMPLEX BUYING BEHAVIOUR: Consumer undertake complex buying behavior when
they are highly involved in a purchase and perceive significant differences among
brands. Consumer may be highly involved when the product is expensive, risky,
purchased infrequently, and highly self-expressive. EXAMPLE purchase of a new home
or a personal computer.
2. DISSONANCE-REDUCING BUYING BEHAVIOR: It occur when consumer are highly
involved with an expensive, infrequent, or risky purchase, but see little different
among brands. EXAMPLE home loan.
3. HABITUAL BUYING-BEHAVIOUR: It occur under conditions of low consumers
involvement and little significant brand difference. EXAMPLE lighter or match box,
milk, bread.
4. VARITY-SEEKING BUYING BEHAVIOUR: Consumer undertake it in situations
characterized by low consumer involvement but significant perceived brand
differences. In such a cases, consumer often do a lot of brand switching. EXAMPLE
chips, soaps, ice-cream etc.
Question?
1. What types of advertising actually affect a consumer’s decision to
purchases?
In order to answer this question, hyperfine media conducted a survey asking 1000
people across the UK ‘where did you see the last advert that made you buy a product?
Although almost half of the respondents (48.7%) couldn’t remember the last time they
bought a product that was influenced by an adverted, there are a clear channels where
adverts have resulted in a purchase.
Unsurprisingly television advertising is still a top of the list with 16.5% of responses,
but online advertising is starting to catch up. 12.3% of respondents accredited their
purchase to adverts they had seen on their desktop, and 7.5% from adverts they had
seen on their mobile.
Television – 83%
Magazines – 50%
Online – 47%
Newspaper – 44%
Radio – 32%
Billboards/outdoor advertising – 13%
Case Study
Companies use advertising to establish a basic awareness of the product and services in the
mind of the potential customer and to build up knowledge about it (modern, 1991). The use
of advertising to influence the consumers is increases year by year. Marketers believe that
advertising create or augments the perceived degree of differentiation among brands. This
will increase brand “loyalty” which in turn, will reduce the demand elasticities, increase
markups of price over marginal cost, increase barriers to entry and reduce customer welfare
(Bain, 1956; coma nor and Wilson, 199) The specialty of advertising is that it is capable of
generating the need for a product which otherwise may not be felt by the consumers.
Research indicated that the consumer’ attitude toward advertisements and their attitudes
towards brand may shape their purchase intentions (De Pelsmacker and van den bergh, 1996;
Maackenzie et al, 1986; Mitchell and olson, 1981; percy and Rossiter 1992; shimp, 1981).
Further it is indicate that the attitudes and purchases intensions (Mitchell and olson, 1981;
shimp, 1981; Lutz et al, 1983; Lutz, 1985Mackenzie and Lutz, 1989). It is show that advertising
are essay to show process, the effect of consumer’s associations depend on their
favorableness: positive associations have a positive effect and negative associations have a
negative effect on brand attitude (Sandra Praxmarer and HeribertGierl, 2009). The level of
extra version and openness directly affect responses to advertisements as measured with
attitude towards the advertisements (lain et al, 2010). The opinion how to create impact on
consumers’ purchase behavior through advertisements is not universally the same. For
example, Holbrook (1987) argues that advertising must reflect consumer values because
otherwise consumers will not accept the counter-cultural values presented. Pollay (1986,
1987) disagrees, arguing that advertising cannot reflect values of society’s culture as a whole.
He say that advertising instead reflects only specific values or lifestyles within the broader
value structure. It indicates from the review of literature that there are positive as well as
negative influences on consumer from advertisements.
Conclusion
The most important step in deciding what your advertising should say and whom it should
say it. All you need to do is to decided who buys and uses your products and why. In order to
spend your media dollars wisely, you must know what they read or watch so that they will
see your ads. The effective way to creating advertising can inject new life into a maturing
brand. The companies not only encourage new buyers it was also instrumental changing their
buying habits. Advertising is essentially a part of the service industry that involves
communication of information and ideas to and on behalf of others by using various medium
like newspaper, magazine, poster, website, internet etc. the advertising industry plays an
important role in economic development.
In the current age of globalization , new media technology so far, are the most influential
which shape consumer’s tastes, choices, and life in general. So, studies of creative products
and services in new trend production world. As people increasingly turn to new media as a
source for communication, knowledge and business, advertisers and marketers need to tailor
their strategies and tactics in creative and innovation ways to meet the needs of the new
generations.
Bibliography
1) www.upwork.com
2) www.slideshare.net
3) www.iresearchservices.com
4) www.Marketingwit.com
5) www.ukessays.com
6) www.Sixpixels.mirumangency.com
7) www.tandfonnline.com

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Anshu Maheshwari , BBA , Dezyne E'cole College

  • 1. ADVERTISEMENTS Presented By Name: Anshu Maheshwari Department: Bachelor of Business Administration College: Dezyne E’cole College
  • 2. Project report on Advertisements Submitted To Dezyne E’cole College Towards The Partial Fulfillment Of 2nd Year, Bachelor of Business Administration By Anshu Maheshwari Dezyne E’cole College 106/10, Civil Line Ajmer www.dezyneecole.com
  • 3. SYNOPSIS This project report on Advertisements has been write down by me, during my study of functional management in BBA 3rd semester. In this project I have discussed why advertising is needed to aware the customer about the product and also discussed the different types of media and what types of media is actually affect the consumer behavior. I have been included in my project the purpose of advertising and different aims of advertising with the examples. Further I paid attention to the consumer behavior of a particular product. I even paid attention in the different types of behavior of consumers and different factor that influence the consumer behavior with example. Finally I give the conclusion of these topic. I request you to kindly go through my project pages. I will try to bring out the best of my knowledge gained at Dezyne E’cole college.
  • 4. Acknowledgement I am Anshu Maheshwari student of department Bachelor of Business Administration of Dezyne E’cole College would like to express my gratitude to each and every person who has contributed in stimulating suggestions and encouragement which really helped me to coordinate my project. I also thank Dezyne E’cole College who provided insight and expertise that greatly assisted the project. Also, special thanks to my teachers, parents and colleagues who have supported me at every step. Not to forget the almighty who blessed me with good health because of which I worked more efficiently and better.
  • 5. Content 1. Introduction 2. Meaning of advertising 3. purpose of advertising 4. Features of advertising 5. Advantages of Advertising 6. 5M’s of advertising 7. Different aims of Advertising 8. Media of advertising 9. Stage of Advertising strategy 10.Case study 11.Consumer behavior 12.Factor influencing consumer behavior 13.Types of buying decision behavior 14.Conclusion
  • 6. INTRODUCTION Advertising is a psychological game that one can hate or love but cannot ignore. It is a process of communication between the seller and the prospective buyer. Advertising are usually found in magazine, newspaper, on television, radio and billboards, and even now on the internet. Advertising don’t just have to be about selling something. They can also persuade the public to change their behavior. Successful advertisements usually adhere to the following structure, known as the ALDA theory. ATTENSTION INTEREST DESIRE ACTION Advertisement must catch the public’s ATTENTION • A successful advertisements will have something about it that attracts the attention of the public. Successful ways to catch attention include a jingle, a logo or slogan. Advertisements must maintain the public’s INTEREST • After catching their attention, maintaining interest is the hardest part. Need to apple to the public in some way so that what you are saying seems relevant to their lives. • You can apple to their emotions- happiness, fear, anger. • You can apple to their weaknesses- jealousy, vanity, selfishness. • You can apple to their problem- time poor, work issue, global conflict. Your advertising must create the public’s DESIRE Most people need or want something and many people need or want same thing. You could stimulate. • Their need to belong • Their desire to get ahead in life • Their need for peace • Their desire to feel good about themselves • Their desire to protect their families. Your advertising must have call for ACTION A successful advertising will invite the public to take specific action. There might be a phone number to ring, a behavior they can change, an internal address, or a group to join. 1Chapter
  • 7. Advertisi ng is technique of succes creative process A non- personal communic ation Marketing technique Execution of creative thinking media dependent paid communic ation give information Attract Attention Create Awareness Influence buying behaviour of consumer What is advertising? The word advertising is derive from the Latin word “advert ere” which literally means “to turn the mind of…towards.” Purpose of advertising It is medium of mass communication. Manufacturers supply information about new product through it. The fact that companies spend millions of dollars on it through TV, radio, the internet, newspaper, indicates its benefits in sales promotion. The main purpose of advertising is to
  • 8. Features of advertising 1. Provide information Advertising’s primary purpose is to provide information about products and services to prospective buyers. The details of products such as features, uses, price, benefits, manufacture’s name, so on; are in the advertisements. The key message and brand name are also there. The information supplied educate and guide consumers and Facilitate them to make a correct choice while buying a product. 2. Paid communication Advertising is a form of paid communication. The advertisers pays to the media for giving publicity to his AD message. He also decide the size, slogan, etc. give in the advertising. 3. Non-personal presentation Advertising is non-personal in character against salesmanship, which is a personal or face to face communication. Here, the message is given to all and not to one specific individual. This rule applicable to all media including the press. However, even in it, target consumers or target market can be selected marketing an AD appeal. 4. Publicity Advertising publicizes goods, services, ideas and events. It is primary of different types. It offers new ideas to customers as its contents are meaningful. The aim is to make the popularize ideas and there by promote sales. 5. Primary for persuasion Advertising aims at the persuasion of potential customers. It attract attention towards a particulars products, create a desire to have it, and finally induces consumers to visit the market and purchase the same. It has a psychological impact on consumers. It influence their buying decision. 6. Target oriented Advertising becomes effective and result oriented when it is target oriented. A targeted advertisements intensively focuses on a specific market a particular group of customer (like teenagers, housewife, infants, children, etc.) here, the selection of a particular market is called a target market. 7. Art, science and profession Advertising is art and science and profession, and this is now universally accepted. It is an art it is needs creativity for raising its effectiveness. It is a science as its principles or rules. It is also a professional as it has a code of conduct for its member and operates within a standards set by its organized bodies. 8. Creativity Advertising is a method of presenting a product in an artistic, attractive and agreeable manner. The creative people (professionals) introduce creativity in advertisements. Without it, the ads won’t be succeed. Therefore, creativity is called the ‘Essence of advertising.’
  • 9. Advantages of Advertising The advertising benefits two main groups, namely 1. Manufacturers 2. Consumers The advantages of advertising for manufacturers: 1. Large-scale production and marketing Advertising is useful as a sales promotion technique. It give information to consumers and encourages them to purchase more. Manufacturers expand their production base due a higher market demand created through advertisements. 2. Introducing new products Advertising facilitates the introduction of new products. Due to it, information about new product is given to the people. A demand generates because of this, and the manufacturer can sell new products along with the existing ones. 3. Creates new demand Advertising spreads information and encourage consumers to purchase new products. It creates a new demand. Customers are offered various concessions in the initial period. It generates positive responses from them, and soon new customer also respond. Thus, advertisements create new demand from non-user. 4. Effective personal selling Advertising create a proper background for personal selling. It gives advance information to the prospects. They visit the shop in order to purchase a particular product that they know through advertisements in media. The job of a sales man becomes easy as consumers develop an affinity for advertised products. In brief, it supports and supplements personal selling. 5. Builds brand image Advertising build brand image and this develops consumer loyalty towards a specific brand. Manufacturers introduce branding to popularize their products with a distinct personality. Brands get popular through advertisements. As a result, buyers develop loyalty toward a specific brand. 6. Reduces cost of production Advertising creates demand and promotes sales. It enables a manufacturer to conduct production on a large scale. It leads to a reduction in the cost of production and distribution. As a result, the profit margin of the manufacturer increases. 7. Facing promotion Advertising aids a manufacturer to deal with market competition effectively. It helps him to promote and popularize his products. He can remove misunderstanding among consumers about his products through appropriate advertisements. 8. Sales promotion a manufacturer can make his sales promotion campaign successful by using the support of advertising. He can prepare a proper background for the success of such an ad-campaign as it facilitates direct communication with consumers.
  • 10. 9. Goodwill builder A manufacturer can build up goodwill in the business world and also among the group of customers through advertising. The social welfare programs and community service activities can get wide publicity through advertisements. The public can notice even the progress of the organization through it. The benefits of advertising for consumers 1. Information and guide Consumers get information and guidance advertising. They can study the advertisements of competitors and selected the appropriate products that are best suited and profitable to them. It helps to avoid their cheating and exploitation at the hands of middlemen. 2. Acts as a reminder Advertising act as a reminder to consumer and alerts them about the urgent product they need to purchase. 3. Attracts customers Advertising leads to competition among manufacturers and retailers. They have to offer something special in order to attract buyers. Such attraction offers benefits to consumers. For example, manufacturers have to bring down the price in order to attract customers. They have to supply quality goods in order to attract them more. All this is beneficial to consumers in terms of price and quality of goods. 4. Raises living standards Advertising raises the standard of living of people by supplying information about goods and services, which can offer convenience and pleasure to them. It guides consumers in the selection of most suitable products for their daily life. Thus, it provide a higher standard of living to consumers as social group. 5. Efficient product use Consumers get information about uses or benefits of different products through advertising. They also get guidance as regards the right manner of using the product and helps to avoid any possible damage from the use of a purchased product. The information supplied through advertisements helps to know how to use a product in different ways. 6. Removes misunderstanding Advertising helps most consumers in removing their misunderstanding about certain products. They change their attitudes towards products and services due to it.
  • 11. Five M's 1. mission 2.money 3. message 4. media 5. measurement 5M of Advertising The decision making in advertising is a five-step process. It called ‘five M’s of advertising.’ It consist of: 1. Mission: • Mission refers to the purpose or objective of advertising. • These goals vary in character and mainly include: o Sales promotion o Information and guidance to consumers o Developing brand loyalty o Market goodwill o Facing market competition effective o Making the products popular or successful o The introduction of a new product in the market. • The decision in regard to mission or objective is a basic one, and all other decisions get adjusted according to it. For consumer product like chocolate, toothpaste, soap, etc., the mission or objective including facing market competitions, sales promotion and to make a product successful in the market. 2. Money: • Money refers to the financial provided for advertising purpose. It makes an AD budget. It means the budget allocation made by the company for running the entire operation of ad campaign. Money provided is a limiting factor because the effectiveness of advertising, media used, coverage of advertising, etc. are all related to the funds provide for running advertisements. Advertising is a costly affair, companies have to spend millions of dollars on it. It should always be within the limits of funds provided. Naturally, decisions is selecting in advertising package should be properly adjusted to the allocated AD budget. • Consumer’s products like toothpastes or chocolates are highly competitive with many substitutes readily available in the market. Naturally, extensive advertising on TV, newspaper, radio etc. is required. These media are costly. So, the manufacturing or marketing company will have to provide huge money for advertising purpose. 3. Message: • The message gets delivered through the text of an advertisements. It is passed through written words, picture, slogans, and signs. It is for the information,
  • 12. guidance and motivation of prospective buyers. Attractive and meaningful message give positive result-oriented. For this, the services of creative writers, artists, etc. are used to give an appealing message to the consumers. • Here, the advertiser has to decide: o How to deliver the message? o Which media is used to communicating the message? o What would be the extend of creativity? o Which specific customer group be targeted with the message, so on. • The AD message related to the decisions taken in regards to the mission, and money provided for the purpose of advertising. • For advertising consumer product like chocolate, the message is important for its success. Chocolate is favored mainly by children and teenagers. The message should be such that it is beneficial and appealing to the younger minds. It must have a promise of a taste pleasure and satisfaction as expected by the younger generation. The AD message should be simply and easily understandable with the help of a picture or slogan. It should also be attractive and agreeable to the younger generation. The pictures or slogan used should be short and impressive. 4. Media: • The advertiser has to take a crucial decision about selecting a proper media for an advertising purpose. Media differ as regards to cost, coverage, effectiveness or impact, etc. the selection of media depends of the budget provided, products getting advertised, and features of prospective buyers, so on. A wrong decision on media may make entire advertising ineffective and money spent on it will be wasted. Therefore, a media should be properly selected, and decision in this regard is essential and critical. • For advertising popular and extensively used consumer item like chocolate, the media should be selected properly. Cartoon TV channels, comic book, newspaper supplement meant for kids, etc., should be preferred. 5. Measurement: • Measure related to the effectiveness of advertising. An advertiser will like to evaluate advertisement in order to have to measure judge its effectiveness. If an advertising is not effective, it will be modified or withdrawn. It is necessary to avoiding expenditure on the advertisements that is not purposeful or is not likely to give any positive results. An advertiser has to measure the effectiveness of his ad program or campaign and take suitable decisions. The decision making as regards effectiveness of advertisements is equally important and essential. • For measuring effectiveness of chocolate advertiser, the post advertising sales is one major condition. Demand creation in new market segments or new age group is another factor in the measurement of an add effectiveness. Even the success of a sales promotion program is useful for measuring the effectiveness of an advertisements. In brief, like other areas of marketing management decision-making is necessary for advertising. It relates to the M’s – Mission, Money, Message, Media, and Measurement.
  • 13. Different aims of Advertising 1. Informative Advertising: Often used to launch a new product or to reach a new group of customer gives people basis information like what a product dose, how someone might use it, where they can find it and what the price point is. The objective is to capture interest, raise awareness, leave a positive impression, and motivate people to take the next step, like making a purchases or requesting more information. EXAMPLE- pepsi Co’s “7up” lemon 2. Persuasive advertising: It generally aims to increase demand, influence people to change brands, motivate people to make a purchases. It might show the benefits a product offer or company key features against a leading competitor. EXAMPLE- Subhiksha 3. Reminder advertising: Reminder advertising reassures people who already know and potentially like a brand with a goal of keeping the product and services top of mind for future purchases. It may include customer testimonials. EXAMPLE- Coca Cola 4. Reinforcement advertising: Its aims to convince current purchases that they made the right choice. EXAMPLE- volkswagon 5. Defensive advertising: It is one in which marketers advertise to offset or lesson the effect of a competitor’s promotional program. EXAMPLE- Ayurveda ads against patanjali. 6. Local advertising: It used by the firms wants to restrict itself to the local area in the beginning. EXAMPLE: Nirma 7. Global advertising: It used by the multinational firm who treat the world as their market. EXAMPLE- Samsung 8. Service advertising: It used by the firms who provide services to the customer. EXAMPLE- kingfisher Airlines
  • 14. Media of advertising 1) Print Advertising 2) Radio(audio) Advertising 3) Television(video) advertising 4) Mobile Advertising 5) Digital Advertising 1. Print Advertising: One of the oldest way to promote things, print advertising includes a number of different formats, from flyer to other printed promotional material. Most often when people refer to print advertising, they are referring to one of three types of ads Newspaper, Magazine. This kind of advertising can be cost effective and, while circulation number may be one the decline, can still be a very effective way to promote a brand. • Planning a print advertising budget: The budget for a print advertising companies will be guided by several factors, which may include:  Distribution, with the option to include your ad in one or more edition.  The size of your ad.  Frequency in the publication, like having your ad on the fourth page.  Whether you choose to print your ad in colours. 2. Radio (Audio) Advertising: Like print media, radio has a reputation for being past its prime and there’s no doubt it’s an industry that has to adopt. But radio in many ways, is still thriving: a study by Edison research into listing habit found that Americans, on average, tune in for four hours five minutes to audio a day, and more than half that time is spent listening to broadcast Radio. Broadcast radio include long standing AM/FM stations, internet radio and even TV music channels Radio advertising often offers rates that are competitive with other types of advertising and it can be a great way to literally get inside your audience’s head and add personality to your brand. Local radio can be particularly effective way to reach an audience with a specific geographic region. • Planning a radio advertising budget The price of a radio companies is dictated in part, by the size of a radio station’s market as well as their rating. The factor you will negotiate over include.  Frequency, or how other your ad will be aired.  The timing of when your ad will air- for example morning or afternoon “rush hour” is often consider peak airtime.  The length of your ad, which can range from a brief mention to a 60 second rang.
  • 15. 3. Television (video) Advertising: Television advertising is generally the most costly to produce and place. Television ads are engaging, with the benefit of audio and radio to grab someone’s attention and get your message across in seconds. Television ads also work well as part of multi – channel companies, building momentum and reinforcement a brand message through tie-ins to social and digital activities. Planning a television advertising budget Like radio advertising, the cost of television advertising is shaped, in part, by both the size of a station’s market and its ratings. It is also influence by the programing your ad is connected to television ads are most commonly sold in 30 second spots, and the cost is driver by the number of people expected to the watching. 4. Mobile Advertising: Mobile advertising is still a work in progress, but it is growing fast. In many ways, mobile advertising mirrors digital advertising can use display ads, video, social and search advertising to promote a bran, product and services. The promise of mobile advertising is in the things desktop can’t do. • Location based targeting, which uses services to deliver ads when someone is a define geographic range. About half of search are done to find local information. • Mobile rich media ads, like “click to call” and linking into a smartphone’s mapping capabilities. • In app advertising, which can include everything from static banner ads, to interactive part of the app experience (ex. Product placement) • App extension, which encourage people to download an app through search or display network advertising. • Push notifications, technically possible for promotions, ae not allowed to be used for advertising on either iOS or android. There are also some very successful types of promotion that just don’t work on mobile device. Pop-up ads, for example, can be a very effective way to convert web visitors or mobile devices however, they just get in the way. 5. Digital Advertising: Digital advertising is the newest and fastest growing advertising category. In 2014, more than one- quarter of ad spending went to digital advertising, according to a report from remarketer There are a different types of digital ads a) Display advertising, other to as “banner ads” which can use text or image be interactive, or include video. b) Video advertising, which can include video used in display advertising. However, it generally refer to ads that are place on video channels to rim before, during or after the main video. c) Social advertising, refers to paid advertising option on social networking like Facebook, twitter, Instagram.
  • 16. d) Search advertising, refers to the paid text based ads that are shown beside “organize” search result on Google. Stage in Advertising Company Several Steps Are Required To Developed An Advertising Companies The Number Of Stages Are Exact Order In Which They Are Carried Out May Key According To An Organization Resources, The Nature Of Its Product And The Types Of Audience To Be Reached. The Major Stages Are Given Below: 1. Identifying And Analyzing The Advertising: Under This Step It Is To Decide As To Whom Is The Firm Trying To Reach With The Message. The Advertising Target Is The Group Of People Toward Which Advertisement Are Aimed To For This Purpose Complete Information About The Target Market. I. E. The Location And Geographic Location Of The People, The Distribution Of Age, Income Sex, Education Level, And Consumer Attitudes Regarding Purchase And Use Both Of The Advertising Product And Competing Products In Needed With Better Knowledge Of Target Market, Effective Adverting Companies Can Be Developed On The Other Hand. If The Advertising Target Is Not Properly Identified And Analyzed The Companies Is Dose Likely To Be Effective. 2. Determine The Advertising Objective: The Objective Of Advertisement Must Be Specifically And Clearly Define In Measureable Term Such As “To Communicate Specific Quality About A Particular Product To Gain A Certain Degree Of Penetration In A Definite Audience Of A Given Size During A Given Period Of Time”. The Goal Of Advertising May Be To: 1).Create A Favorable Company Image by Acquainting the Public with the Service Offered Available to the Employees and Its Achievements. 2). Create Consumer Or Distributer Awareness By Encouraging Request Providing Information About The Type Of Product Sold, And Indicating How Product Or Services Can Be Used. 3).Encourage Immediate Sales By Encouraging Potential Purchases Through Special Sale Contests, Getting Recommendation Of Professional People About Company Products Etc. 4). It Secure Action By The Reader Through Associating Ideas, Repetition Of The Same Name In Different Contexts, Immediately Action Appeal. 3. Create The Advertising Platform: An Advertising Platform Consist of The Basic Issues or Selling Point That Advertiser Wishes To Include In The Advertising Companies. A Single Advertisement In An Advertising Companies May Contain One Or More Issues In The Platform.
  • 17. 4. Determine The Advertising Appropriation: The Advertising Appropriation Is The Total Amount Of Money Which Marketer Allocates For Advertising For A Specific Period. Determining The Companies Budget Involve Estimating Now Much It Will Cost To Achieve The Companies Objectives. If The Company’s Objectives Are Profit related and stated Quantitatively, Then The Amount Of The Company Budget Is Determined By Estimating The Purposed Company’s Effectiveness in Attaining Them. If Companies Object Is To Build A Particular Type Of Company Image, Then There Is Little Basis For Predicting Either The Companies Effectiveness Or Determining The Budget Required. 5. Selecting The Media: Media Selection Is An Important Since It Cost Time Space And Money Various Factors And Influence This Selection, The Most Fundamental Being The Nature Of Target Market Segment, The Type Of The Product And Cost Involved. Media From Direct mail Circular, catalogues, booklets, folders Broadcast or radio and T.V. Spot, sectional or national trade cost House to house Sampling, free gifts, novelties outdoor Poster and bills on walls 6. Creating the Advertising Message: This Is an Important Stage of Advertising Company. The Content Of The Message Has To Be Very Carefully Drafted In The Advertisements. Features Of Person In The Advertising Target Influence The Message Content And Form. An Advertising Must Us Words, Symbols And Illustration That Are Meaningful, Familiar And Attractive To Those Persons. 7. Evaluating The Effectiveness An Advertising: The Effectiveness Of Advertising Is Measured For A Variety Of Reasons. a) To Determine Whether A Company Accomplished Its Advertising Objects. b) To Evaluate The Relative Effectiveness Of Several Advertisements. c) To Determine The Strengths And Weakness Of Various Media And Media Plans. In other words, measuring advertising is needed to determine whether proposed advertisement should be used and if they will be might be improved; and whether going company should be stopped, continued, or changed.
  • 18. 2CHAPTER Customer’s buying behavior Consumers around the world vary tremendously in age, income, education level, and tastes. They also buy an incredible variety or goods and services. How these diverse consumer’s connected with each other and with other elements of the world around them impacts their choices among various product, services, and companies. Factor influencing consumer behavior 1. Purchasing power Purchasing power of a consumer plays an important role in influencing the consumer behavior. The consumer generally analyze their purchasing capacity before making a decision to buy a product and services. The product may be excellent, but if it is fail to meet the buyer purchasing ability, it will have high impact on it sales. Segmenting consumers based on their buying capacity would help in determining eligible consumers to achieve better result. Understanding, analyzing and keeping track of consumer behavior is very critical for a marketing department to retain their position successfully in the market place. Let’s assume $ 1bought 1.50 gallons of gas in 1987. Today, $1 buys about half a gallon. This is the example of the change in the purchasing power of the American dollar. 2. Group influence Group influence is also seen to affect the decisions made by a consumer. The primary influential group consisting of family members, classmates, immediate relatives and secondary influential group consisting of neighbors and acquaintances are seen have greater influence on the purchasing decisions of a consumer. Say for instance, the mass liking for fast food over home cooked food or the craze for the SUV’s against small utility vehicle are glaring examples of the same. 3. Personal preference At the personal level, consumer behavior is influence by various shades of likes, dislike, priorities, morals and values. In certain dynamic industrial such as fashion, food and personal care, the personal view and opinion of the consumer pertaining to style and fun can become the dominant influencing factor. Though advertisements can help in influencing these factor to some extent, the personal consumer like and dislikes exert greater influencing on the end purchase made by a consumer. 4. Economic conditions Consumer spending decisions are known to be greatly influenced by the economic situation prevailing in the market. This hold true especially for purchases made of vehicles, house and other household appliances. A positive economic environment is
  • 19. known to make consumers more confident and willing to their personal financial liabilities. 5. Marketing campaigns Advertisements plays a greater role in influencing the purchasing decisions made by the consumers. They are even known to bring about a great shift in market share of competitive industries by influencing the consumer purchase decision to such an extent that they may opt for one brand over another or indulge in indulgent or frivolous shopping. Marketing campaigns if undertake regular intervals even help to remind consumer to shop for not so exciting products such as health products or insurance policies. Types of buying decision behavior There are a four types of buying decision behavior such as 1. COMPLEX BUYING BEHAVIOUR: Consumer undertake complex buying behavior when they are highly involved in a purchase and perceive significant differences among brands. Consumer may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive. EXAMPLE purchase of a new home or a personal computer. 2. DISSONANCE-REDUCING BUYING BEHAVIOR: It occur when consumer are highly involved with an expensive, infrequent, or risky purchase, but see little different among brands. EXAMPLE home loan. 3. HABITUAL BUYING-BEHAVIOUR: It occur under conditions of low consumers involvement and little significant brand difference. EXAMPLE lighter or match box, milk, bread. 4. VARITY-SEEKING BUYING BEHAVIOUR: Consumer undertake it in situations characterized by low consumer involvement but significant perceived brand differences. In such a cases, consumer often do a lot of brand switching. EXAMPLE chips, soaps, ice-cream etc.
  • 20. Question? 1. What types of advertising actually affect a consumer’s decision to purchases? In order to answer this question, hyperfine media conducted a survey asking 1000 people across the UK ‘where did you see the last advert that made you buy a product? Although almost half of the respondents (48.7%) couldn’t remember the last time they bought a product that was influenced by an adverted, there are a clear channels where adverts have resulted in a purchase. Unsurprisingly television advertising is still a top of the list with 16.5% of responses, but online advertising is starting to catch up. 12.3% of respondents accredited their purchase to adverts they had seen on their desktop, and 7.5% from adverts they had seen on their mobile. Television – 83% Magazines – 50% Online – 47% Newspaper – 44% Radio – 32% Billboards/outdoor advertising – 13%
  • 21. Case Study Companies use advertising to establish a basic awareness of the product and services in the mind of the potential customer and to build up knowledge about it (modern, 1991). The use of advertising to influence the consumers is increases year by year. Marketers believe that advertising create or augments the perceived degree of differentiation among brands. This will increase brand “loyalty” which in turn, will reduce the demand elasticities, increase markups of price over marginal cost, increase barriers to entry and reduce customer welfare (Bain, 1956; coma nor and Wilson, 199) The specialty of advertising is that it is capable of generating the need for a product which otherwise may not be felt by the consumers. Research indicated that the consumer’ attitude toward advertisements and their attitudes towards brand may shape their purchase intentions (De Pelsmacker and van den bergh, 1996; Maackenzie et al, 1986; Mitchell and olson, 1981; percy and Rossiter 1992; shimp, 1981). Further it is indicate that the attitudes and purchases intensions (Mitchell and olson, 1981; shimp, 1981; Lutz et al, 1983; Lutz, 1985Mackenzie and Lutz, 1989). It is show that advertising are essay to show process, the effect of consumer’s associations depend on their favorableness: positive associations have a positive effect and negative associations have a negative effect on brand attitude (Sandra Praxmarer and HeribertGierl, 2009). The level of extra version and openness directly affect responses to advertisements as measured with attitude towards the advertisements (lain et al, 2010). The opinion how to create impact on consumers’ purchase behavior through advertisements is not universally the same. For example, Holbrook (1987) argues that advertising must reflect consumer values because otherwise consumers will not accept the counter-cultural values presented. Pollay (1986, 1987) disagrees, arguing that advertising cannot reflect values of society’s culture as a whole. He say that advertising instead reflects only specific values or lifestyles within the broader value structure. It indicates from the review of literature that there are positive as well as negative influences on consumer from advertisements.
  • 22. Conclusion The most important step in deciding what your advertising should say and whom it should say it. All you need to do is to decided who buys and uses your products and why. In order to spend your media dollars wisely, you must know what they read or watch so that they will see your ads. The effective way to creating advertising can inject new life into a maturing brand. The companies not only encourage new buyers it was also instrumental changing their buying habits. Advertising is essentially a part of the service industry that involves communication of information and ideas to and on behalf of others by using various medium like newspaper, magazine, poster, website, internet etc. the advertising industry plays an important role in economic development. In the current age of globalization , new media technology so far, are the most influential which shape consumer’s tastes, choices, and life in general. So, studies of creative products and services in new trend production world. As people increasingly turn to new media as a source for communication, knowledge and business, advertisers and marketers need to tailor their strategies and tactics in creative and innovation ways to meet the needs of the new generations.
  • 23. Bibliography 1) www.upwork.com 2) www.slideshare.net 3) www.iresearchservices.com 4) www.Marketingwit.com 5) www.ukessays.com 6) www.Sixpixels.mirumangency.com 7) www.tandfonnline.com