“The impact of advertisement of consumer’s goods on customer’s brand preference”


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“The impact of advertisement of consumer’s goods on customer’s brand preference”

  1. 1. Project ThesisOn“The impact of advertisement ofconsumer’s goods on customer’s brandpreference”1
  2. 2. Report on“The impact of advertisement ofconsumer’s goods on customer’s brandpreference”Supervised BYMs. Mustari AlamAssistant Professor, Department of businessAdministration Stamford University BangladeshSubmitted ByMithun kumar basakMasters of business Administration(MBA)2
  3. 3. Stamford University BangladeshLetter of TransmittalDate: 8.8.2011ToMs. Mustari AlamAssistant Professor, Department of business AdministrationStamford University, Bangladesh.Sub: The Impact of Advertisement of consumer goods on customer brandpreference.Dear Madam,It is my great pleasure to submit you this kind of report. I’m givingspecial thanks to you for your much cooperation to prepare this kind ofreport. It is a great enjoyable and challenging experience for me. Igathered a lot of experience doing the report. I also observed the practicalimplementation of the different types of advertisement of consumergoods on customer brand preference. In my whole M.BA session I wasknown about the theory about the impact of advertisement of consumergoods on customer brand preference in an advertisement and now I haveexperienced from my practical experience while asking different types ofquestions to different level of consumer about their attention to theadvertisement. And finally I have gathered vast information aboutconsumer choices in an advertisement through questionnairesI again give thanks to my honorable advisor for her cooperation.Sincerely yours,Mithun kumar basak3
  4. 4. Id: MBA 044 12157Program: M B.A (Marketing)Letter of AuthorizationThis is to certify that Mithun kumar basak. ID MBA 044 12157. Alongwith the Batch 44th, department of MBA Stamford University Bangladeshhas successfully completed his study with a full length research report on“The Impact of Advertisement of consumer goods on customer brandpreference”.During this period he acquired practical knowledge about “The impact ofadvertisement of consumer goods on customer brand preference”.His overall performances were quite satisfactory.I wish him every success in life.………………..Ms. Mustari AlamAssistant Professor, Department of business AdministrationStamford University Bangladesh4
  5. 5. AcknowledgementThis is my great opportunity to prepare this project thesis as therequirement of the master of business administration of StamfordUniversity Bangladesh. First of all I am very grateful God. I wouldlike to think my parents for encourage me to prepare this report.At first I would like to give special thank to my honorable madam Ms.Mustari Alam. who has given me the proper guidance to prepare thisreport on the impact of advertisement of consumer goods on customerbrand preference For her great cooperation I was able to make this repotproperly.Secondly, I would like to give the special acknowledgement to therespondents. If they did not respond then it was not possible to make thisreport. They helped me in filling the questionnaires.5
  8. 8. ABSTRACTAdvertising is a form of communication used to help sell products andservices. Typically it communicates a message including the name of theproduct or service and how that product or service could potentiallybenefit the consumer. However, Advertising does typically attempt topersuade potential customers to purchase or to consume more of aparticular brand of product or service. Modern advertising developed with8
  9. 9. the rise of mass production in the late 19th and early 20th centuries. Thecrescendo of celebrities endorsing brands has been steadily increasingover the past 20 years or so. Marketers overtly acknowledge the power ofcelebrity in influencing buyers purchase decision. They have firm believethat likeability or a favorable attitude towards a brand is created by theuse of a celebrity. The crore of rupees spent per year on celebrityendorsement contracts show that celebrities like Amitabh Bachchan,Sharukh khan and Sachin Tendulkar play an important role for theadvertising industry. It is an established fact that celebrity endorsementcan bestow unique features or special attributes upon a product that itmay have lacked otherwise.My thesis deals with the impact advertisement creates on a customer’spreference of a brand. In other words, how does an ad in a television,radio, newspaper ,hoardings and banners lure a customer to go andpurchase the product. Does he purchase because of the benefits orbecause he liked the advertisement which has created a positive impacton him.INTRODUCTIONAdvertising is the means of informing as well as influencing the generalpublic to buy products or services through visual or oral messages. Aproduct or service is advertised to create awareness in the minds ofpotential buyers. Some of the commonly used media for advertising areT.V., radio, websites, newspapers, magazines, bill-boards, hoardings etc.As a result of economic liberalization and the changing social trendsadvertising industry has shown rapid growth in the last decade.9
  10. 10. Advertising is one of the aspects of mass communication. Advertising isactually brand-building through effective communication and isessentially a service industry. It helps to forms the basis of marketing.Advertising plays a significant role in todays highly competitive world.A career in advertisement is quite glamorous and at the same timechallenging with more and more agencies opening up every day. Whetherits brands, companies, personalities or even voluntary or religiousorganizations, all of them use some form of advertising in order to be ableto communicate with the target audience. The salary structure inadvertising is quite high and if you have the knack for it one can reach thetop. It is an ideal profession for a creative individual who can handlework-pressure. Today, new areas are emerging within advertising likeevent management, image management, internet marketing etc. Eventmanagement wherein events are marketed, Image management wherein aa particular profile of an individual or an organization is projected.Internet marketing has also brought about a lot of changes in advertisingas Internet means that one is catering to a select group of audience ratherthan a mass audience .Today Celebrity Endorsement has attractedimmense debate on whether it really contributes to the brand buildingprocess or whether it is just another lazy tool to make the brand morevisible in the minds of the consumers.Although it has been observed that the presence of a well-knownpersonality helps in solving the problem of over-communication that isbecoming more prominent these days, there are few undesirable impactsof this practice on the brand. The issue of matching the values of thecelebrity with the brand values is also very important, i.e. getting the rightcelebrity to endorse the right brand. Consumers perceive the brand ashaving superior quality because it has been endorsed by a credible source.This makes endorsement as one of the indictors of quality for any brand.10
  11. 11. Corporate credibility along with endorser credibility plays a significantrole in the attitude of the consumer towards the brand and theadvertisement respectively. On the other hand, the over popularity of thecelebrity sometimes overshadows the brand.OBJECTIVES:1) A study on the impact of electronic media on brand preference.2) A study on the impact of print media on brand preference.3) A study on the impact of other media on brand preference.RESEARCH METHODOLOGY AND RESEARCH DESIGN:Primary data:- Through questionnaire.Secondary data:- Through internetSample Procedure : Random sampling11
  12. 12. Research design: the primary data and secondary data will be studied andanalyzed appropriately and interpreted to extract certain facts. Whenevernecessary statistical tools and financial tools like tabulation, graphs etcwill be used to present the findings effectively.SCOPE OF THE STUDYThis project helps in projecting the impact of advertisement oncustomer’s brand preference. It also shows how celebrity endorsementimpact customers.LIMITATIONS1. An in depth study might not be done because of time constraints.2. The study will be conducted in Dhaka city only.LITERATURE REVIEWAdvertising, sales promotion and public relations are mass-communication tools available to marketers. As its name suggests, masscommunication uses the same message for everyone in an audience. Themass communication tools trade off the advantage of personal selling, theopportunity to tailor a message to each prospect, for the advantage ofreaching many people at a lower cost per person (Etzel et al., 1997).Today, definitions of advertising abound. We might define it ascommunication process, a marketing process, an economic and socialprocess, a public relations process or information and persuasion process(Arens, 1996). Dunn et al. (1978) viewed advertising from its functionalperspectives, hence they define it as a paid, non-personal communicationthrough various media by business firms, non-profit organization, andindividuals who are in some way identified in the advertising messageand who hope to inform or persuade members of a particular audience.Morden (1991) is of the opinion that advertising is used to establish a12
  13. 13. basic awareness of the product or service in the mind of the potentialcustomer and to build up knowledge about it. Kotler (1988) seesadvertising as one of the four major tools companies use to directpersuasive communications to target buyers and public noting that “itconsists of non-personal forms of communication conducted through paidmedia under clear sponsorship”. According to him, the purpose ofadvertising is to enhance potential buyers’ responses to the organizationand its offering, emphasizing that “it seeks to do this providinginformation, by channeling desire, and by supplying reasons forpreferring a particular organization’s offer. While writing on advertisingnature and scope, Etzel et al. (1997) succinctly.Capture all advertising as having four features:(i) A verbal and or visual message(ii) A sponsor who is identified(iii) Delivery through one or more media(iv) Payment by the sponsor to the media carrying the message.Summarizing the above, they conclude that “advertising then consist ofall the activities involved in presenting to an audience a nonpersonal,sponsor- identified, paid-for message about a product or organization”.Those views of Etzel et al. (1997) coincide with the simple but all-embracing definitions of Davies (1998) and Arens (1996). For instance,while Davies states that “advertising is any paid form of non-personalmedia presentation promoting ideas/concepts, good s or services by anidentified sponsor. Arens expressing almost the same view describesadvertising as “the personal communication of information usually paidfor and usually persuasive in nature about products (goods and services)or ideas by identified sponsors through various media”. From theforegoing, it could be concluded that the purpose of advertising is tocerate awareness of the advertised product and provide information that13
  14. 14. will assist the consumer to make purchase decision, the relevance ofadvertising as a promotional strategy, therefore, depends on its ability toinfluence consumer not only to purchase but to continue to repurchaseand eventually develop-brand loyalty. Consequently, many organizationsexpend a huge amount of money on advertising and brand management.A brand is a name given by a manufacturer to one (or a number) of itsproducts or services. Brands are used to differentiate products from theircompetitors. They facilitate recognition and where customers have builtup favorable attitude towards the product, may speed the individualbuyers through the purchase decision process. Individual purchasers willfilter out un favorable or un-known brands and the continued purchase ofthe branded product will reinforce the brand loyal behavior. Withoutbrands, consumer couldn’t tell one product from another and advertisingthen would be nearly impossible14
  15. 15. Advertising is a non-personal form of promotion that is delivered throughselected media outlets that, under most circumstances, require themarketer to pay for message placement. Advertising has long beenviewed as a method of mass promotion in that a single message can reacha large number of people. But, this mass promotion approach presentsproblems since many exposed to an advertising message may not bewithin the marketer’s target market, and thus, may be an inefficient useof promotional funds. However, this is changing as new advertisingtechnologies and the emergence of new media outlets offer more optionsfor targeted advertising. Advertising also has a history of beingconsidered a one-way form of marketing communication where themessage receiver (i.e., target market) is not in position to immediacyrespond to the message (e.g., seek more information). This too ischanging.For example, in the next few years technologies will be readily availableto enable a television viewer to click a button to request more details on aproduct seen on their favorite TV program. In fact, it is expected that overthe next 10-20 years advertising will move away from a one-waycommunication model and become one that is highly interactive. Another15
  16. 16. characteristic that may change as advertising evolves is the view thatadvertising does not stimulate immediate demand for the productadvertised.That is, customers cannot quickly purchase a product they seeadvertised. But as more media outlets allow customers to interact with themessages being delivered the ability of advertising to quickly stimulatedemand will improve.Advertising is only one element of the promotion mix, but it oftenconsidered prominent in the overall marketing mix design. Its highvisibility and pervasiveness made it as an important social and encomiatopic in Indian society. Promotion may be defined as “the co-ordinationof all seller initiated efforts to set up channels of information andpersuasion to facilitate the scale of a good or service” promotion is mostoften intended to be a supporting component in a marketing mixpromotion decision must be integrated and co-ordinate with the rest of themarketing mix, particularly marketing mix strategy. The promotion mixconsists of four basic elements.They are- Advertising Personal selling16
  17. 17.  Sales promotion, and PublicityAdvertising is the dissemination of information by non-personal meansthrough paid media where the source is the sponsoring organization. A personal selling is the between audience and employees of thesponsoring organization. The source of information is thesponsoring organization. Sales promotion is the dissemination of information through awide variety of activities other than personal selling, advertisingand publicity. Which stimulate consumer purchasing and dealereffectiveness. Publicity is the disseminating of information by personal or non-personal means and is not directly paid by the organization and theorganization is not source.DEFINITION OF ADVERTISINGThe word advertising originates from a Latin wordadvertise, which means to turn to. The dictionary meaning of the term is“to give public notice or to announce publicly” .Advertising may be17
  18. 18. defined as the process of buying sponsor-identified media space or timein order to promote a product or an idea.The American Marketing Association, Chicago, has defined advertisingas “any form of non-personal presentation or promotion of ideas, goodsor services, by an identified sponsor.”ORIGIN AND DEVELOPMENT OF ADVERTISINGIt has been wrongly assumed that the advertising function is of recentorigin. Evidences suggest that the Romans practiced advertising; but theearliest indication of its use in this country dates back to the middle Ages,when the use of the surname indicated a man’s occupation. The nextstage in the evolution of advertising was the use of signs as a visualexpression of the tradesman’s function and a means of locating the sourceof goods. This method is still in common use. The seller in primitivetimes relied upon his loud voice to attract attention and inform consumersof the availability of his services. If there were many competitors, herelied upon his own personal magnetism to attract attention to hismerchandise. Often it became necessary for him to resort to persuasion topinpoint the advantages of this products. Thus, the seller was doing thecomplete promotion job himself. Development of retail stores, made thetraders to be more concerned about attracting business. Informingcustomers of the availability of supplies was highly important. Sometypes of outside promotion were necessary. Signs on stores and inprominent places around the city and notices in printed matters weresometimes used When customers were finally attracted to the store andsatisfied with the service at least once, they were still subjected tocompetitive influences; therefore, the merchant’s signs andadvertisements reminded customers of the continuing availability of hisservices. Sometimes traders would talk to present and former customers18
  19. 19. in the streets, or join social organizations in order to have continuingcontacts with present and potential customers.As the markets grew larger and the number of customers increased, theimportance of attracting them also grew. Increasing reliance was placedon advertising methods of informing about the availability of theproducts. These advertising methods were more economical in reachinglarge numbers of consumers. While these advertising methods wereuseful for informing and reminding, they could not do the wholepromotional job. They were used only to reach each consumer personally.The merchant still used personal persuasion once the customers wereattracted to his store. The invention of hand press increased thepotentialities of advertising. By Shakespeare’s times, posters had madetheir appearance, and assumed the function of fostering demand forexisting products. Another important event was the emergence of thepamphlet as an advertising medium. The early examples of thesepamphlets disclose their sponsorship by companies want to generategoodwill for their activities. The low cost of posters and handbillsencouraged a number of publishers to experiment with other methods.Media of AdvertisingPrint Media Electronic Media other Media1.Newspaper 1.Radio 1.Hoardings2.Periodicals 2.Television 2.PostersPrint Media19
  20. 20. Print media is a very commonly used medium ofadvertising by businessman. It includes advertising through newspaper,magazines, journals, etc. and is also called press advertising.a) NewspapersYou must have read Newspapers. In our country newspapers arepublished in English, Sinhala and Tamil. These are the sources of news,opinions and current events. In addition, Newspapers are also a verycommon medium of advertising. The advertiser communicates hismessage through newspaper which reaches to millions of people.Advantages• Newspaper normally have wide circulation and a singleadvertisement in the newspaper can quickly reach to a largenumber of people.• The cost of advertising is relatively low because of widepublication. Generally newspapers are published daily. Thus, thesame advertisement can be repeated frequently and remind readereveryday The matter of advertisement can be given to newspaper ata very short notice. Are even last minute change in the content isalso possible .this makes advertising quite flexible.Limitations• Newspaper are read soon after they are received and then are keptgenerally in some corner of the houses after 24 hours we get a freshnewspaper and this makes the life of the newspaper short.• People read newspaper mainly for news and pay casual attention toadvertisement.20
  21. 21. • Illiterate persons can not read and thus, newspaper advertising doesnot benefit them.b) PeriodicalsPeriodicals are publications which come out regularly but not on a dailybasis. These may be published on a weekly, fortnightly, monthly,bimonthly, quarterly or even yearly basis. For example you must havecome across magazines and journals like India Today, Femina, etc. Allthese periodicals have a large number of readers and thus, advertisementspublished in them reach a number of people.Advantages• Periodicals have a selected readership and so advertisers can knowabout their target customers and accordingly selectiveadvertisements are given.Limitations• Advertising in periodicals is costlier.• The numbers of people to whom the advertisement reach are smallin comparison to newspaper.• The advertisement materials are given much in advance hence lastminute change is not possible. This reduces flexibilityElectronic MediaThis is a very popular form of advertising in the modern daymarketing. This includes Radio, television and Internet.Radio Advertising21
  22. 22. All of us are aware about a radio and must have heard advertisement forvarious products in.it. In radio there are short breaks during transmissionof any programmed which is filled by advertisements of products andservices. There are also popular programmers sponsored by advertisers.Advantages• It is more effective as people hear it on a regular basis.• It is also useful to illiterates, who can not read and write.• There are places where newspapers reading may not possible, butyou can hear radio.For example, you can hear radio while traveling on road or working athome; but you can not read newspaper. Similarly, while driving you canhear a radio but cannot read a newspaper.LimitationsA regular listener may remember what he has heard. But, occasionallisteners tend to forget what they have heard in Radio.The message that any advertisement wants to communicate may notbe proper as there is no chance to hear it again immediately. There maybe some other disturbances that distort communication.In comparison to Television, Radio is less effective as it lacks visualimpact.Television AdvertisingWith rapid growth of information technology and electronicmedia, television has topped the list among the media of advertising. TVhas the most effective impact as it appeals to both eye and the ear.22
  23. 23. AdvantagesIt is most effective as it has an audio-visual impact.With catchy slogans, song and dance sequences, famous personalitiesexhibiting products, TV advertising has a lasting impact.With varieties of channels and programmes advertisers have a lot ofchoice to select the channel and time to advertise.With regional channels coming up any person even illiterates canwatch the advertisements and understood it by seeing and hearing.LimitationsTV advertisements are usually expensive to prepare as well as totelecast.With almost every manufacturer trying to communicate their messagethrough TV advertising the impact among the viewers is also reducing.Now-a-days people are switching on channels whenever there is acommercial break.InternetIt is the latest method of communication and gathering information.If youhave a computer and with an access to internet you can have informationfrom all over the world within a fraction of second. Through internet youcan go to the website of any manufacturer or service provider and gatherinformation. Sometimes when you do not have website addresses youtake help of search engines or portals.AdvantagesInformation from all over the world is made available at thedoorsteps.User can see the advertisement at their own time and as per theirrequirement.LimitationsIt is not accessible without a computer.It is not very suitable for general public.23
  24. 24. It is not suitable for illiterate and those having no knowledgeabout the operation of Internet.Other MediaAll the media of advertising discussed above are mostly used byconsumers while they are at home or inside any room, except radio andnewspapers or magazines to some extent. Moreover in all these media,the consumer has also to spend some money to access the advertisement.However, there are other media available, where the consumer has tospend nothing and he can see such advertisements while moving outside.Some of such advertising are hoardings, posters, vehicular displays, giftitems, etc.HoardingsWhile moving on roads you must have seen largehoardings placed on iron frames or roof tops or walls. These are normallyboards on which advertisements are painted or electronically designed sothat they are visible during day or night. The advertisers have to pay anamount to the owners of the space, where the hoardings are placed.PostersPoster are printed and posted on walls, buildings, bridgesetc to attract the attention of customers. Posters of films which arescreened on cinema halls are a common sight in our country.Vehicular displays24
  25. 25. You must have seen advertisements on the publictransport like buses, trains, etc. Unlike hoardings these vehicles givemobility to advertisements and cover a large number of people.What Advertisement Is?Advertisement is a mass communicating of informationintended to persuade buyers to by products with a view to maximizing acompany’s profits.The elements of advertising are:25
  26. 26. It is a mass communication reaching a large group of consumers.It makes mass production possible.It is non-personal communication, for it is not delivered by an actualperson, nor is it addressed to a specific person.It is a commercial communication because it is used to help assurethe advertiser of a long business life with profitable sales.Advertising can be economical, for it reaches large groups of people.This keeps the cost per message low.The communication is speedy, permitting an advertiser to speak tomillions of buyers in a matter of a few hours.Advertising is identified communication. The advertiser signs hisname to his advertisement for the purpose of publicizing his identity.Advertising ObjectivesEach advertisement is a specific communication that mustbe effective, not just for one customer, but for many target buyers. Thismeans that specific objectives should be set for each particularadvertisement campaign. Advertising is a form of promotion and like apromotion; the objectives of advertising should be specific. This requires26
  27. 27. that the target consumers should be specifically identified and that theeffect which advertising is intended to have upon the consumer should beclearly indicated. The objectives of advertising were traditionally statedin terms of direct sales. Now, it is to view advertising as havingcommunication objectives that seek to inform persuade and remindpotential customers of the worth of the product. Advertising seeks tocondition the consumer so that he/she may have a favorable reaction tothe promotional message. Advertising objectives serve as guidelines forthe planning and implementation of the entire advertising programme.The basic objectives of an advertising programme may belisted as below:To stimulate sales amongst present, former and future consumers. Itinvolves a decision regarding the media, e.g., TV rather than print ;To communicate with consumers. This involves decision regardingcopy;To retain the loyalty of present and former consumers. Advertisingmay be used to reassure buyers that they have made the best purchase,thus building loyalty to the brand name or the firm. To increase support. Advertising impliedly bolsters the morale of thesales force and of distributors, wholesalers, and retailers, ; it thuscontributes to enthusiasts and confidence attitude in the organization. :ADVERTISING PLANNING FRAMEWORKPlans are nothing, planning is everything.The advertising management is mainly concerned withplanning and decision making. The advertising manager will be involvedin the development, implementation, and overall management of an27
  28. 28. advertising plan. The development of an advertising plan essentiallyrequires the generation and specification of alternatives. Decision makinginvolves choosing from among the alternatives. The alternatives can bevarious levels of expenditure, different kinds of objectives or strategypossibilities, and kinds of options with copy creation and media choices.Thus, the essence of planning is to find out the feasible alternatives andreduce them to decisions. An advertising plan reflects the planning anddecision – making process and the decisions that have been arrived at in aparticular product and market situation.The Advertising PlanAs pointed out earlier, advertising plan and decision making focus onthree crucial areas; objectives and target selection, message strategy andtactics, and media strategy and tactics. Let us elaborate on these points:1. Objectives and Target Selection28
  29. 29. Objectives in advertising can be understood in many ways.An important part of the objective is the development of a precise,disciplined description of the target audience. It is often tempting to directadvertising at a broad audience; but everyone is a potential customer. It isbest to consider directing the advertising to more selected groups todevelop stimulating copy. It is quite possible to develop severalcampaigns, each directed at different segments of the market, or todevelop one campaign based on multiple objectives.2. Message Strategy and TacticsMessages strategy must decide what the advertising is meant tocommunicate – by way of benefits, feelings, brand personality, or actioncontent. Once the content of the campaign has been decided, decisionsmust be made on the best-most effective-ways of communicating thatcontent. The decisions, such as the choice of a spokesperson, the use ofhumor or fear or other tones, and the selection of particular copy, visuals,and layout, are what we call “message tactics”3. Media Strategy and TacticsMessage strategy is concerned with decisions about howmuch is to be allocated to create and test advertising copy, media strategyconcerns decisions on how many media rupees to spend on an advertisingcampaign. Media tactics comprise the decisions on which specific media(television, radio magazines, etc.) or media vehicles (Reader’s Digest,etc.) to spend these dollars.EXTERNAL FACTORS29
  30. 30. The external factors in the planning framework areenvironmental, social and legal considerations. To a considerable extent,these exist as constraints on the development of an advertising plan anddecision making. In developing specific advertisement, there are certainlegal constraints that must be considered. Deceptive advertising isforbidden by law. What is deceptive is often difficult, because differentpeople can have different perceptions of the same advertisements. Thus,an advertiser who attempts to provide specific, relevant information mustbe well aware of what constitutes deception in a legal and ethical senseand of other aspects of advertising regulation.Even more difficult consideration for people involved in the advertisingeffort is broad social and economic issues as stated below.Does advertising raise prices or inhibit competition?Is the use of sex or fear appeals is appropriate? Women and minoritygroups are exploited in advertising by casting them in highly stereotypedroles.Is it more irritating than entertaining?Is an intrusion into an already excessively polluted environment?Advertising directed at children.Advertising IndustryThe advertising industry consists of three principal groups:Sponsors;Media; and30
  31. 31. Advertising agencies or advertising departments.Advertising agencies are of two basic types, viz., Independent; andHouse. An independent agency is a business that is free to compete forand select its clients. A house agency is owned by its major client. Ahouse agency is not completely free to serve other clients. The advertisingdepartment an integral part of the organization it serves.The advertising agency provides for the client a minimumof:Media information, such as the availability of time and spaceCreative skills, such as “campaign planning” and “appeal planning”Research capabilities, such as providing brand preference data.What is an Advertising Agency?An advertising agency is an independent organization set up to renderspecialized services in advertising in particular and in marketing ingeneral. Advertising agencies started as space brokers for the handling ofthe advertisements placed in newspapers. Over the years, the function ofthe agencies has changed. Their main job today is not to aid media but toserve advertisers.Advantage of Using AgenciesThe marketer gains a number of benefits by employing agencies. Anagency generally has an invaluable experience in dealing with variousadvertising and marketing issues.The lessons which agency learned in working with other clients areuseful inputs for the marketer.31
  32. 32. An agency may employ specialists in the various areas of preparationand implementation of advertising plans and strategies.The personnel are not members of the marketer’s management team.They bring objective and unbiased viewpoints to the solution ofadvertising and other marketing problems.The discounts that the media offer to agencies are also available toadvertisers. This is a strong stimulus to them to use an agency, for themedia cost is not much affected thereby. The company normally does not have as many types of specialists asalarge or medium-sized advertising agency has because an agency canspread the costs or its staff over many clients. It can do more for the sameamount of money.The company can also get an objective, outside viewpoint from anagency, assuming that the agency representatives are not acting as “Yesman” in order to keep the advertiser’s account.A related point is that the company can benefit from the agency’sexperience with many other products and clients.Another advantage is that agency feels a greater pressure than thecompany’s own department to produce effective results. The relationsbetween an agency and a client are very easy to terminate; but it isdifficult to get rid of an ineffective advertising department.32
  33. 33. The manner in which agencies are compensated, the use of anagency may not cost the advertiser a single paisa.ADVERTISING BUDGETThe size of the advertising budget can have an impactupon the composition of the advertising mix. In general, a limitedpromotion budget may impel the management to use types of promotionthat would not be employed otherwise, even though they are less effectivethan the others.Industrial firms generally invest a larger proportion of their budgets inpersonal selling than in advertising, while the reverse is true of mostproducers of consumer goods. Organizations with small budgets may beforced to use types of advertising that are less effective than others.Some marketers find it necessary to restrict their efforts primarily topersonal selling and publicity. There are organizations with smallpromotion budget which take the opposite course of action. Theyconcentrate on advertising and sales promotion, and neglect othermethods. Some marketers advertise in expensive ways (through classifiedadvertisement in newspapers and magazines) and spend virtually nothingon personal selling. There is universal difficulty of relating advertisingexpenditures to sales and profit results. Determining the results ofadvertising and consequently the amount of money to be allocated inadvertising budget.Are complicated by several major difficulties as follows:33
  34. 34. The effects of external variables such as population, or income,changes on economics conditions and competitive behavior;Variations in the quality of advertising;Uncertainly as to the time-lag effect of advertising; andThe effect of the firm’s other marketing activities, such as productimprovement and stepped-up personal selling. The above complexitiesmake the companies resort to more than one method of determining thesize of their advertising budget. Advertising Budget involves theallocation of a portion of the total marketing resources to the advertisingfunction in a firm. The size of the budget allocation should be based onthe potential contribution that advertising can make. Advertisingbudgeting should be based on a careful analysis of the opportunity forusing advertising.Media BriefEach medium has its merits and its handicaps. Thesuitability and profitability of any one type varies from manufacturer tomanufacturer and may vary for a single manufacturer too. Changes arethe only rule. The buyers constitute his market; they are to receive hisadvertising coverage consists of the advertiser’s reaching the maximumnumber of these buyers include both his current and prospectivecustomers. The advertiser has to determine how many there are andwhere they are. Then the selection process involves how to send aneffective advertising message economically to the group of buyers, thelength of the campaign period and the cost which he can afford-at a figurewhich will make the advertising effort profitable.Difficulties in Selection of Media Types34
  35. 35. Audience Measurement:The media sell circulation or the opportunity to develop circulation.There is a gross aspect to circulation (how many products were boughtlast month) and a net aspect (how many of those purchasers are prospectsfor the product saw the advertisement in the broadcast media).Measurement of the same is not as easy as advertisers would think.Reliance on a Particular type of Medium:How much of his promotion effort should a manufacturer place inmagazines and how much on TV, how much in outdoor or point ofpurchase? Which should be dominant and which are supplementary?These factors play a key role in selection of a particular type of media.Media costs, the costs of space and time, are the largest single expenseitem in most advertising budgets. The selection of media types to be usedin an undertaking, therefore, deserves and even demands, the very bestthought and judgment of on the part of the top management. The points tobe considered are:Availability: Regional markets may be so limited that nationalcirculation of gazines should not be used. A product may have so slight amarket that a medium such as the radio would not be indicated for use.Se l e c t iv i t y: Some ideas demand visual presentation and othersdemand oral presentation. The radio cannot accommodate storiesrequiring a physical form, and outdoor advertising cannot accommodatelong stories.Co mp et i t io n: is a matter which the advertiser cannot ignore.Acompany may select media types not used by its competitors, based ondistinctiveness and domination.35
  36. 36. Selection of Individual MediaSelection of individual media to carry advertising requires theconsideration of the points like circulation; the quality and quantity of amedium’s circulation, Prestige, Influence, Readership, etc.DuplicationAn advertiser must have coverage or else his messagewill not reach as many buyers as he must reach. As an advertiser addsmagazine after magazine to his list to increase his coverage; he findsduplication inevitable. One way of averting duplication is to use only oneof the magazines; another is to run a different advertisement. Theduplication limits an advertiser’s coverage. The points in favour ofduplication are repetition and frequency.FrequencyThe term frequency refers to the number of advertisements of thesame size appearing in an individual medium for a given period such asper day, per week, per month, or per campaign. There is no formula todetermine the ideal frequency. The two factors are the size of theadvertising fund and the size of the advertisement to be run. If these areknown, frequency can be derived. The two other factors are the numberof media and the advertising period. As the number of media increases,36
  37. 37. there is pressure for a lower frequency, or to shorten the advertisingperiod. The other possibilities are to enlarge the fund, or to reduce thesize of the advertisement. Manufacturers cannot ignore the fact that whatthe competitors are doing in respect of frequency. The more often amessage is repeated, the greater the proportion of it the consumerremembers.Size of advertisementThe size of advertisement influences the frequency. The size of anadvertisement can be derived if the advertiser:- Determines the size of the advertising fund,Decides the numbers of individual media to be used, andDecides the number of advertisements to appear during theadvertising period.The purpose of the advertisement may be the strongest influence indetermining its size; a large space is used to announce, a small space isused to remain. The amount of copy, the number of products included inone advertisement and the illustration needs of the advertisement all helpto determine size. Salesmen and dealers may also decide how largeadvertisements should be.ColourColour is a factor which influences frequency. Colourinfluences the size of the advertisement and size in turn determinesfrequency. Colour commands a premium price.Re-run on Advertisement37
  38. 38. Repetition has a considerable effect on advertising costs, and itsfrequency. Re-run is considered unless it has performed well on its firstappearance. It is most common in mail order business and advertising thatuses small space. It is not common for large advertisements. Indirectaction advertisements should be re-run. The reinforcement of consumermemory is another benefit of a re-run. There are savings on a re-run. Newreaders are added whenever and advertisement is re-run.PositioningIt involves the development of a marketing strategy for aparticular segment of the market. It is primarily applicable to productsthat are not leaders in the field. These products are more successful ifthey concentrate on specific market segments than if they attack dominantbrands. It is best accomplished through an advertising strategy, or theme,which positions advertisements in specified market segments To project an image. Advertising is used to promote an overall imageof respect and trust for an organization. This message is aimed not only atconsumers, but also at the government, shareholders, and the generalpublic..38
  39. 39. Perhaps the most distinctive skill of professional marketers istheir ability to create, maintain, protect, and enhance brands. TheAmerican Marketing Association defines a brand as follows: “A Brand isa name, term, sign, symbol, or design, or a combination of them, intendedto identify the goods or services of one seller or group of sellers and thedifferentiate them from those of competitors”. In essence, a brandidentifies the seller or marker. It can be name, trademark, logo, or othersymbol.Under trademark law, the seller is granted exclusive rights to the use ofthe brand name in perpetuity. Brands differ from other assets such aspatents and copyrights, which have expiration dates. A brand isessentially a seller’s promise to deliver a specific set of features, benefits,and services consistently to the buyers. The best brands convey awarranty of quality. But a brand is an even more complex symbol. It canconvey up to six levels of meaning:Attributes: a brand brings to mind certain attributes.Mercedes suggest expensive, well-built, well-engineered, durable, high-prestige .Benefits: attributes must be translated into functional and39
  40. 40. emotional benefits. The attribute “durable” could translate into thefunctional benefit. The attribute “expensive” translates into the emotionalbenefit.Culture: the brand may represent a certain culture. TheMercedes represents German culture: organized, efficient, high quality.Personality: the brand can project a certain personality.Mercedes may suggest a no-nonsense boss (person), a reigning lion(animal), or an austere palace (object)User: the brand suggests the kind if consumer who buys oruses the product. We would expect to see a 55-year-old top executivebehind the wheel of Mercedes, not a 20-year- old secretary. If a companytreats a brand only a name, it misses the point. The branding challenge isto develop a deep set of positive associations of the brand. Marketersmust decide at which level(s) to anchor the brands identity. One mistakewould be to promote only attributes. First, the buyer is not as interested inattributes as in benefits. Second, competitors can easily copy attributes.Third, the current attributes may become less desirable later.Promoting the brand only on one benefit can also be risky. SupposeMercedes touts its main benefit as “high performance”. Then several40
  41. 41. competitive brands emerge with high performance as compared to otherbenefits. Mercedes needs the freedom to maneuver into a new benefitpositioning.From consumer’s point of view:Identification of source of productAssignment of responsibility to product makerRisk reducerSearch cost reducerPromise, bond, or pact with maker of productSymbolic deviceSignal of qualityBrands identify the source or maker of a product and allow consumers toassign responsibility to a particular manufacturer. From an economicperspective, brands allow consumers to lower search costs for productsboth internally and externally.Consumers offer their trust and loyalty with the implicit understandingthat the brand will behave in certain ways and provide them utilitythrough consistent product performance and appropriate pricing,promotion, and distribution programs and actions. Brands can serve assymbolic devices, allowing consumers to project their self-image.Certain brads are associated with being used by certain types of peopleand thus reflect different values or traits. Researched have classifiedproducts and their associated attributes into three major Final Assignment41
  42. 42. Brand Management categories: search goods, experience goods andcredence goods. There is difficulty in assessing and interpreting productattributes and benefits so with experience and credence goods, brandsmay be particularly important signals of quality. Brands can reduce therisk in product decisions. These risks involve functional, physical,financial, social psychological and time risk.From manufacturer’s point of view:Means of identification to simplify handlingMeans of legally protecting unique featuresSignal of quality level to satisfied customersMeans of endowing products with unique associationsSource of competitive advantageSource of financial returnsBrands help manufacturers to organize inventory and accounting records.A brand also offers the firm legal protection for unique features of theproduct. A brand can retain intellectual property rights, giving legal titleto the brand owner. Brands can signal a certain level of quality so thatsatisfied buyers can easily choose the product again. This brand loyaltyprovides predictability and security of demand for the firm and createsbarriers of entry that make it difficult for other firms to enter the market.BRAND AWARENESSWhether it is a serial in a regional satellite channel or aOne Day International cricket match, there is a non-stop stream ofadvertisements, which clutter the commercial break. Well-established42
  43. 43. brands attempt to sustain brand recall while new ones try appealing toprospective consumers to get into their `consideration’ set. There are adsfor children, housewives and youth. With advertising expenditure in theorder of Rs. 8000 Crores per annum in the recent times and theproliferation of brands across categories, there is a strong need toconsider the effectiveness of these advertisements. The idea is not tocease advertising but to consider how considering decisions wouldhave to be considered with non-advertising alternatives. These non-advertising alternatives may also enable a brand to create and sustainconsistent associations, which may be desirable in terms of long-termimplications. A contemporary approach that creates a synergy betweenvarious aspects of a promotional mix (advertising included) provides arefreshing approach towards marketing communications. There may beseveral objectives of advertising and a promotional mix could be used inan innovative manner to address each of these objectives depending onthe product category and target segment.Brand KnowledgeBrand knowledge refers to brand awareness (whether and whenconsumers know the brand) and brand image (what associations43
  44. 44. consumers have with the brand). The different dimensions of brandknowledge can be classified in a pyramid (adapted from Keller 2001).which each lower-level element provides the foundations ofthe higher-level element. In other words, brand attachment stems fromrational and emotional brand evaluations, which derive from functionaland emotional brand associations, which require brand awareness. Brandknowledge measures are sometimes called “customer mindset” measuresbecause they capture how the brand is perceived in the customer’s mind.The Brand Knowledge Pyramid44
  45. 45. Brand awareness measures the accessibility of the brand in memory.Brand awareness can be measured through brand recall or brandrecognition. Brand recall reflects the ability of consumers to retrieve thebrand from memory when given the product category, the needs fulfilledby the category, or some other type of probe as a cue.Brand RecognitionBrand recognition reflects the ability of consumers to confirm priorexposure to the brand (i.e., recognize that it is an “old” brand that theyhave seen before and not a “new” brand that they are seeing for the firsttime).Ina recognition task, consumers see a stimulus (e.g., an ad forthe brand, a brand name) and must say whether they have seen it before(e.g., last night on television, in magazine X, etc.).It is important to make the task as realistic as possible by allowing only ashort amount of time to answer the recognition question and by usingrealistic stimuli and context. If you want to use recognition as a measureof the performance of different marketing decisions (say, different logosor ads), you should expose one group to one version of the target stimulus45
  46. 46. and another group to the other version of the target stimulus. However, tomake the task more realistic, both groups should also be exposed to otherstimuli (e.g., competitors brands). In a second step, people see the “old”stimuli again, along with completely new ones, and are asked to decide ifeach stimulus is “old” or “new” (i.e., if they have seen them before ornot).Brand ImageBrand image is defined as consumer perceptions of a brandand is measured as the brand associations held in consumers’ memory. Tomeasure brand image, you can either use and adapt an existing list ofbrand associations or start from scratch by eliciting brand associationsand then measuring the strength of these associations. The outcome ofthis exercise is usually a short list of the positive and negativeassociations consumers have with the brand, ranked by strength. Forcomparison purposes, it is useful to report the average strength of eachassociation with the brand and the strength of the association withcompeting brands, and to do this for each target segment (e.g., brandusers and users of competing brands).Brand preference46
  47. 47. People begin to develop preferences at a very early age.Within any product category, most consumers have a group of brands thatcomprise their preference set. These are the four or five up market brandsthe consumer will consider when making a purchase. When buildingpreference, the goal is to first get on the consumer’s preference sets, andthen to move up the set’s hierarchy to become the brand consumers preferthe most – their up market brand. Gaining and maintaining consumerpreference is a battle that is never really won. In every product category,consumers have more choices, more information and higher expectationsthan ever before. To move consumers from trial to preference, brandsneed to deliver on their value proposition, as well as dislodgesomeone else from the consumers existing preference set.Preference is a scale, and brands move up, down and even off that scalewith and without a vigilant brand management strategy. Pricing,promotional deals and product availability all have tremendous impact onthe position of our brand in the consumer’s preference set. If all things are47
  48. 48. equal, the best defense is to make us more relevant toconsumers than the competition. The brands potential can only befulfilled by continually reinforcing its perceived quality, up marketidentity and relevance to the consumer. The same branding activities thatdrive awareness also drive preference. And, while awareness alone willnot sustain preference, it will improve the brand’s potential for buildingand maintaining preference. With a great story and a large enoughinvestment, awareness can be attained rather quickly. It takes time,however, and constant revaluation to build brand preference. Aristotleprofessed, “We are what we repeatedly do. Excellence then is not an actbut a habit.” Attaining and sustaining preference is an important step onthe road to gaining brand loyalty. The ability to generate more revenue,gain greater market share and beat off the competition is the reward givenby consumer toward particular brand.Brand preference is the Selective demand for a companys brand ratherthan a product; the degree to which consumers prefer one brand overanother. In an attempt to build brand preference advertising, theadvertising must persuade a target audience to consider the advantages ofa brand, often by building its reputation as a long-established and trustedname in the industry. If the advertising is successful, the target customerwill choose the particular brand over other brands in any category.This brings us to the question of why people prefer onebrand over another. Some people like smoking Marlboro, while othersprefer Camel or Winston. Is this because they have tried all cigarettebrands before they chose one for them?48
  49. 49. The reality is that different kinds of products have differentimages appealing to different people.Other than the addition of television and the Internet as highly effectivemedia, there have been few changes in advertising since its birth. Yet themysteries about what is “good” or “bad” advertising prevail. The truth isthat if your ads do not change brand preference, they are not doing theirjob.If they do change brand preference, people will be three timesmore likely to purchase your product. The point to reiterate is that simplygetting someone to remember your ad will not change whether or not theybuy your product.Basic communications model for development ofbrand preference49
  50. 50. To better understand the process of brand preference, lets first look at abasic communications model. The five components of this model aresender, medium, filter, receiver, and feedback. On a daily basis, we areexposed to messages (sender/medium) via our radio, television,billboards, Internet, mail, and word-of-mouth. Although these messagesare pervasive, we continually screen out (perceptual screen) or ignorecontent that has little or no relevance to us. All messages are codedpatterns and sensations – colours, sounds, odours, shapes, etc. Thosemessages deemed recognizable, or a basis for a relationship, are decodedand stored in our memory (filter/screen).A successful convergence between sender and receiverwill result in some type of response to a brands compelling message(feedback). Stored experiences in our long-term memory are connectedthrough a series of nodes and networks. Consumer prefer particular brand50
  51. 51. because they find it easier to interpret what benefits brand offers feelmore confident of it and get more satisfaction from using it . Because ofsuch consumer preference, the brand can charge a higher price, commandmore loyalty, and run more efficient marketing programmers .The brandpreference therefore command a higher asset value.Brand Preference choice criteriaThere are six criteria choose brand preference. The first three elementcategorized as “Brand building” in terms of how brand preference can bebuilt up. And last three elements are known as “defensive” because itpreserved in the face of different opportunity or different brands availablein market.Memorable: How easily particular brand are recalled?Meaningful: To what extent particular brand prefer incorrespondingcategory? Does it suggest something about a product ingredient orthe type of person who might use the brand?Likeability: How aesthetically appealing do customer finds thebrandelement? Is it inherently likeable visually, verbally and in other ways?Transferable: Can the brand element be used to introduce in newproduct in the same or different categories?Adaptable: How adaptable and updatable is the brand element?Protectable: How legally protectable is the brand element? Howcomparatively protectable?Brand Endorsement by Celebrities51
  52. 52. The motif behind total branding may be decocted as anattempt to amalgamate diverse activities to win customer preference. Thecrescendo of celebrities endorsing brands has been steadily increasingover the past years. Marketers overtly acknowledge the power ofcelebrities in influencing consumer-purchasing decisions. It is aubiquitously accepted fact that celebrity endorsement can bestow upon aproduct special attributes it might not otherwise have. But everything isnot honky- dory; celebrities are after all mere mortals made of flesh andblood like us. If a celebrity can aggrandize the merits of a brand, he orshe can also exacerbate the image of a brand.If I may take the liberty of rephrasing Aristotle’s quote on anger, "Anybrand can get a celebrity. That is easy. But getting a celebrity consistentwith the right brand, to the right degree, at the right time, for the rightpurpose and in the right way... that is not easy." Celebrity endorsementsare impelled by virtue of the following motives: -Instant Brand Awareness and RecallCelebrity values define, and refresh the brand image52
  53. 53. Celebrity adds new dimensions to the brand imageInstant credibility or aspiration PR coverageLack of ideasConvincing clientsSuccessful Celebrity Endorsements for a Brand - An IndianPerspectiveThe latter part of the 80s saw the burgeoning of a new trendin India - brands started being endorsed by celebrities. Hindi film and TVstars as well as sports-persons were roped in to endorse prominent brands.Advertisements featuring stars like Tabassum (Prestige Pressure Cooker),Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and SunilGavaskar (Dinesh Suitings) became common. Of course, probably thefirst ad to cash in on star power in a strategic, long-term, missionstatement kind of way was for Lux soap, a brand which has, perhaps as aresult of this, been among the top three in the country for much of itslife-time. We had the Shah Rukh-Santro campaign with the objective ofmitigating the impediment that an unknown Korean brand faced in theIndian market. The objective was to garner faster brand recognition,association and emotional unity with the target group. Similarly,53
  54. 54. when S. Kumars used Hrithik Roshan, then the hottestadvertising icon for their launch advertising for Tamarind, they reckonedthey spent 40-50 per cent less on media due to the sheer impact of usingHrithik. Ad recall was as high Witness the spectacular rise of Sania Mirzaand Irfan Pathan in endorsements in a matter of a few months.Advantages of a Celebrity Endorsing a BrandEstablishment of Credibility: Approval of a brand by a star fostersasense of trust for that brand among the target audience - this is especiallytrue in case of new productsEnsured Attention: Celebrities ensure attention of the target groupbybreaking the clutter of advertisements and making the ad and the brandmore noticeable.PR Coverage : This is another reason for using celebrities. Managersperceive celebrities as topical, which create high PR coverage.Higher Degree of Recall: People tend to commensurate the54
  55. 55. personalities of the celebrity with the brand, thereby, increasing the recallvalue.Associative Benefit: A celebrity’s preference for abrand gives out a persuasive message - because the celebrity is benefitingfrom the brand, the consumer will also benefit.Mitigating a Tarnished Image : Cadbury India wanted to restore theconsumers confidence in its chocolate brands following the high-pitchworms’ controversy; so the company appointed Amitabh Bachchan forthe job. It helps to reform the company’s image..Psychographic Connect: Celebrities are loved andadored by their fans and advertisers use stars to capitalise on thesefeelings to sway the fans towards their brand.Demographic Connect: Different stars appeal differently to variousdemographic segments (age, gender, class, geography, etc.).Mass Appeal: Some stars have a universal appeal and, therefore,prove to be a good bet to generate interest among the masses.Rejuvenating a Stagnant Brand: With the objective of infusingfresh life into a stagnant brand celebrities are used.Disadvantages of a Celebrity Endorsing a BrandThe celebrity approach has a few serious risks: -55
  56. 56. Reputation of the Celebrity may Derogate afterhe/she has endorsed the Product: The behaviour of the celebritiesreflect on the brand, celebrity endorsers may at times become liabilities tothe brands they endorse.The Vampire Effect: This terminology pertains to the issue ofa celebrity overshadowing the brand. If there is no congruency betweenthe celebrity and the brand, then the audience will remember the celebrityand not the brand.Inconsistency in the Professional Popularity of theCelebrity: The celebrity may lose his or her popularity due to some lapsein professional performances.Multi Brand Endorsements by the Same Celebritywould Lead to Over-exposure: The novelty of a celebrity endorsementgets diluted if he does too many advertisements. This maybe termed ascommoditization of celebrities, who are willing to endorse anything forbig bucks.Mismatch between the Celebrity and the Image of theBrand: Celebrities manifest a certain persona for the audience. It is of56
  57. 57. paramount importance that there is an egalitarian congruency between thepersona of the celebrity and the image of the brand. Each celebritypotrays a broad range of meanings, involving a specific personality andlifestyle Despite the obvious economic advantage of using relativelyunknown personalities as endorsers in advertising campaigns, the choiceof celebrities to fulfill that role has become common practice for brandscompeting in todays cluttered media environment.Influence of advertising on consumer’s brand preferenceThe essence of being in business by any business outfits isto produce for sales and profits. In order to remain in business anorganization must generate enough sales from its products to coveroperating costs and post reasonable profits. For many organizations, salesestimate is the starting point in budgeting or profit planning.It is so because it must be determined, in most cases, beforeproduction units could be arrived at while production units will in turnaffect material purchases. However, taking decision on sales is the mostdifficult tasks facing many business executives.This is because it is difficult to predict, estimate or determinewith accuracy, potential customers’ demands as they are uncontrollable57
  58. 58. factors external to an organization. Considering, therefore, the importanceof sales on business survival and the connection between customers andsales, it is expedient for organizations to engage in programmes that caninfluence consumers’ decision to purchase its products. This is whereadvertising and brand management are relevant. Advertising is a subset ofpromotion mix which is one of the 4ps in the marketing mix i.e product,price, place and promotion. As a promotional strategy, advertising serveas a major tool in creating product awareness and condition the mind of apotential consumer to take eventual purchase decision. When competitionis keen and the consumers are faced with brand choice in the market, itbecomes imperative for the manufacturers to understand the major factorsthat can attract the attention of buyers to his own brand.Major tools companies use to direct persuasive communications to targetbuyers and public noting that “it consists of non- personal forms ofcommunication conducted through paid media under clear sponsorship”.According to him, the purpose of advertising is toenhance potential buyers’ responses to the organization and its offering,emphasizing that “it seeks to do this providing information, bychanneling desire, and by supplying reasons for preferring a particularorganization’s offer. From the foregoing, it could be concluded that thepurpose of advertising is to cerate awareness of the advertised productand provide information that will assist the consumer to make purchasedecision, the relevance of advertising as a promotional strategy, therefore,depends on its ability to influence consumer not only to purchase but tocontinue to repurchase and eventually develop-brand loyalty.58
  59. 59. Consequently, many organizations expend a huge amount of money onadvertising and brand management. A brand is a name given by amanufacturer to one (or a number) of its products or services. Brands areused to differentiate products from their competitors. They facilitaterecognition and where customers have built up favorable attitude towardsthe product, may speed the individual buyers through the purchasedecision process. Individual purchasers will filter out unfavorable or un-known brands and the continued purchase of the branded product willreinforce the brand loyal behaviour. Without brands, consumer couldn’ttell one product from another and advertising then would be nearlyimpossible. Advertiser’s primary mission is to reach prospectivecustomers and influence their awareness, attitudes and buying behaviour.They spend a lot of money to keep individuals (markets) interested intheir products.To succeed, they need to understand what makes potentialcustomers behave the way they do. The advertisers goals is to get enoughrelevant market data to develop accurate profiles of buyers-to-find thecommon group (and symbols) for communications this involves the studyof consumers behaviour: the mental and emotional processes and thephysical activities of people who purchase and use goods and servicestosatisfy particular needs and wants.It tries to determine the factors that influence consumerbehaviour, especially the economic, social and psychological aspectswhich can indicate the most favoured marketing mix that management59
  60. 60. should select. Consumer behaviour analysis helps to determine thedirection that consumer behaviour is likely to make and to give preferredtrends in product development, attributes of the alternativecommunication method etc.Consumer behaviours analysis views the consumer as anothervariable in the marketing sequence, a variable that cannot be controlledand that will interprete the product or service not only in terms of thephysical characteristics, but in the context of this image according to thesocial and psychological makeup of that individual consumer (or group ofconsumers). Advertising helps in projecting product quality and valuebefore the consumers. Advertising has a major influence on consumers’preference and it has, in no small measure, contributed to its success. Thesame thing goes for its quality. The stage a product is in its life cycle isvery important to a marketer as it help in determining the type ofmarketing strategies to be embarked upon in respect of the said product.ADVERTISING RESEARCHAdvertising research is a branch of marketing research, and is both a sortof insurance to avoid wasting money on in effective advertising and ameans of monitoring the effectiveness of a campaign while it is runningand after the campaign has ended. It is also possible and advantageous to60
  61. 61. ling advertising research with other forms of marketing research whichthe company is undertaking. Today the advertisers have the benefits ofmany sorts of research, and they are usually recommended andcommissioned by an advertising agency. In fact, in its own interest agood advertising agency may insist on the use of research to ensure that itproduces and conducts successful advertising.“The advertising research is applications of marketing research aimed atthe measurement of advertising effectiveness and improves advertisingefficiency. The primary aim of advertising is to sell an idea, goods orservices whereas the ultimate goal of research is to measure the impact ofadvertising on sales of that idea, good or service.”Research is not confined to testing creativity. There is a wealth ofindependently researched statistical information on sales, readership andaudience figures regarding all the principle media so that the mosteconomic media can be used. In addition to this it is possible to controlthe duration of appearance of an advertisement by assessing when enoughpeople have had the opportunity to see the advertisement a sufficientnumber of times. This is in line with the IPA definition of advertisingwhich refers to presenting “the most persuasive selling message to theright prospects for the product or service at the lowest possible cost.”Importance of advertising researchAdvertising deals with many imponderables. Its aim is toinfluence the minds and emotions of millions of prospective buyers. It is61
  62. 62. a mass demand creation device, so its message must be standardized.Furthermore, conditions in the market are constantly changing. It is alsoexpensive and highly competitive. In view of the many difficult problemswhich overwhelmed advertising a great deal of attention is devoted to thedevelopment of research techniques to provide better knowledge onwhich to base advertising decisions. The two areas are embracing themost pressing problems are those of advertising copy and advertisingmedia. The ethics and effectiveness of advertising are highlycontroversial subjects. Measuring of advertising effectiveness posesmany challenging questions to those who create, sell and utilizeadvertisements. It is a widely accepted fact that advertising is a greatforce linking the producer and the consumer. The need of research inadvertising is also significant because a tremendously large number ofpeople are dependent for their earnings from this area.MEDIA RESEARCHMedia selection is finding the most cost effective media to deliver thedesired number and type of exposures to the target audience. The mediaplanner has to know the capacity of the major media types to deliverreach, frequency and impact. The major media types are T.V., newspaper,radio, magazines or journals etc.PRINT MEDIAFor many years advertisers have not been satisfied with circulation dataas the sole yardstick for buying advertising media. It has been clearlydemonstrated that the number of readers of a given copy of a publicationnot only significantly exceeds circulation but also varies from grosscirculation figures as between various publications. An increasing amountof research has been applied in resent years to the measurement of actualreading audiences. Techniques for measuring reading audiences are nowsufficiently perfected so that these data are generally accepted and widelyemployed. Newspapers and magazines are the most common types of62
  63. 63. print media. As the media circulation increases so, does the attractivenessof a newspaper or magazine to an advertiser, and the medium may raisethe advertising rates. The best way to measure a publications’ is throughmeasuring its readership or total audience. Media buyers need to knowthe accurate circulation and readership figures to compare costs amongvarious publications that reach similar audiences.BROADCAST MEDIAThe most extensive research in connection with broadcasting media is themeasurement of listening and viewing audiences. The following methodsare commonly employed.The recall method:The recall method obtains its data through listener surveys in which therespondent is asked to report the television and radio programs he heardduring a specified period of time previous to the interview.The diary method:In the coincidental diary method a form listing broadcasting stations andtime periods is left with the respondent, who makes notations ofprograms received. The diaries are usually designed so that they can beattached to the radio or television set for convenient recording. The chiefadvantage of this method is that the respondent records his listening orviewing at the time, thus eliminating the burden on memory. It also hasthe advantage of making it possible to obtain classification data regardingthe listener or viewer.The coincidental method:In this method investigators call telephone subscribers according to apredetermined sampling pattern. It provides more accurate data than othersurvey methods, since it eliminates the necessity for memory or entries in63
  64. 64. a diary. Also it is based on a report of actual viewing or listening ratherthan mechanical evidence that the radio set was operating.The audiometer method:The audiometer is attached to TV or radio sets at random in the homes ofpotential consumers. The device maintains on a magnetic tape acontinuous record of the set in usage channel on and the station channelto which tuned. Its advantage is that with the aid of audiometer one canaccurately measure the set in use from a valid sample. Its disadvantage isthat it does not indicate who is watching the set or listening to a radio set.It only records whether the set is tuned on to a particular channel orstation. It tells nothing about the audience presence and their behavior.Advertising research is not conducted much in India. This is becauseIndian companies are not much aware of the techniques of its researchand the benefit they can get out of this activity. Of late, they are nowspending huge amount on advertisements released in various media. Butthey do not initiate to find whether expenditure made by them is bringingsome worthwhile results in the form of increased sales and profits. If yes,to what extent the increase in sales is due to advertising. Because theincrease in sales is due to other factors operating in the market place.Therefore, it is the high time that the Indian business organizationsunderstand the importance of advertising and measure its effectiveness.For any firm incurring expenditure on advertising, it is essential thatsome percentage of the advertising budget should be embarked for theadvertising research .Impact of colour on customer’s brand preference64
  65. 65. Color is part of our dailylives. People use colors to express themselves and their emotions, toadapt to weather conditions (e.g., dark colors are used in winter to absorbthe heat better while light colors are used in the summer to stay fresh),and also to simply help themselves feel confident with their bodies andappearance.Research indicates that over 80% of visual information is related tocolor: i.e., color conveys information. It identifies a product or acompany, as well as the quality of the merchandise and much more .Color can influence consumers’ purchase decisions, how they see things,their emotions, and thus it is integral to marketing. Color photographs arecommonly used in ads because they are thought to have superior attentiongetting properties.For this reason, it is extremely important to understandhow color affects attitudes, beliefs, and feelings. Marketers can then65
  66. 66. apply such knowledge to develop effective promotional strategies andtactics.For instance, a package can be designed to appear talleror shorter: e.g., light-colored packaging may make a package appearlarger, whereas darker colors may minimize the perceived size . The rightcolors communicate meaning and please the eye, whereas the wrongcolors can be unpleasant and even unsettling. As a marketing tool, colorcan also be a subliminally persuasive force.As a functional component of human vision, color cancapture attention, relax or irritate the eyes, and affect the legibility of text.All things considered, the right colors empower and contribute to thesuccess of an advertising campaign, a product, a service, or even aninterior space.In contrast, using the wrong colors can be a costly mistake.Colors can also influence customers’ emotions, positively or negatively.Previous research has shown a consistent association of colors withcertain feelingsImpact of Packaging Requirements of good packagingFunctional - effectively contain and protect the contentsProvide convenience during distribution, sale, opening, use, reuse,be environmentally responsible66
  67. 67. Be cost effectiveAppropriately designed for target marketEye-catching (particularly for retail/consumer Sales)Communicate attributes and recommended use of the product andpackageCompliant with retailers requirementsPromotes image of enterpriseDistinguishable from competitors productsMeet legal requirements for product and PackagingPoint of difference in service and supply of Product.For a perfect product, perfect colour.Forms of packagingSpecialty packaging — emphasizes the elegant character of theproductPackaging for double-useCombination packaging two or more products packaged in theKaleidoscopic packaging — packaging changes continually toreflect a series or particular themePackaging for immediate consumption — to be thrown away afterusePackaging for resale — packed, into appropriate quantities, for theretailer or wholesaler.TrademarksSignificance of a trademark67
  68. 68. Distinguishes one companys goods from those of anotherServes as advertisement for qualityProtects both consumers and manufacturersUsed in displays and advertising campaignsAge group of respondents.AGE GROUP OFRESPONDENTSNO. OF RESPONDENTS20-25 5026-30 4231-35 2236-40 2941-45 768
  69. 69. Figure 1. Survey ReportInference:The survey conducted shows that most of the respondents were of the agegroup of 20-25 years and the least respondents were of 41-45 years.1. Respondents of different gender.RESPONDENTS NO. OF RESPONDENTSMALE 86FEMALE 6469
  70. 70. Figure 2.Survey ReportInference :This chart shows that mostly the male are more interested in brandedproducts than the female category.3. Which are the favourite brands?FAVOURITE BRANDS NO. OF RESPONDENTSLEVIS 40PEPE JEANS 13WEST SIDE 12ADIDAS 2870
  71. 71. NIKE 16SONY 16REEBOK 15Figure 3.Survey ReportInference:In this chart it is clear that the most liked brand is Levis followed byAdidas which are both apparel companies.4. Why the brands are preferred by the respondents?PREFERENCE CRITERIA NO. OF RESPONDENTSQUALITY 62COMFORTABLE 42STYLISH 23RELIABLE 16FEATURES 771
  72. 72. Figure 4.Survey ReportInference:The brands like Levis and Adidas and many more are liked by therespondents because of the good quality which shows a percentage of 41and comfortable which has a percentage of 28.The brands are even likedbecause they are stylish, reliable and because of its features.5. From where you get the information about these brands?INFORMATION SOURCE NO. OF RESPONDENTSNEWSPAPERS 32TELEVISION 66RADIO 6INTERNET 10HOARDINGS 11WORD OF MOUTH 2572
  73. 73. Figure 5.Survey ReportInference:The respondents said that they got the information of these brands fromdifferent media like television, newspaper, radio and word of mouth etc.according to the survey television has given information to 44%respondents, newspaper to 215, through word of mouth to 17%respondents, from radio to 4% internet 7% and last hoardings to 7% ofrespondents. This shows that a television creates more impact oncustomer.6. If you are searching for information of a brand whichmedia will you look for?MEDIA PREFERENCE NO. OF RESPONDENTSPRINT MEDIA 25ELECTRONIC MEDIA 79OTHER MEDIA 17WORD OF MOUTH 2973
  74. 74. Figure 6.Survey ReportInferenceIn this chart the respondents have said about their preference of media toget information about their brands 53% have said that they preferelectronic media like television, internet 17% have voted for print medialike newspaper, magazines 19% said that they go with word of mouthfrom friends, family, relatives, etc. and 11% choose other media.7. Do you rely on advertisement?DO YOU RELY ONADVERTISEMENTNO. OF RESPONDENTSYES 58NO 24SOMETIMES 56RARELY 1274
  75. 75. Figure7.Survey ReportInferenceThe respondents were asked whether they believe on advertisements.39%said that they rely on advertisements and utilize theinformationgiven,16%said that they do not believe,37% said that they sometmes believe if theyfind the information rational, and 8% rarely believe.8. Do you change your perception of a product by just seeingthe advertisement?CHANGE OF PERCEPTIONDUE TO ADVERTISEMENTNO. OF RESPONDENTSYES 21NO 52SOMETIMES 59RARELY 1875
  76. 76. Figure 8.Survey ReportInferenceIn this chart respondents were asked if they change they thinking about aproduct after seeing advertisement 14% said that it is rarely that changetheir perception after seeing an advertisement.9. Do you think advertisement is necessary for your decisionmaking?NECESSITY OFADVERTISEMENT INDECISION MAKINGNO. OF RESPONDENTSALWAYS NECESSARY 36SOMETIMES NECESSARY 88NOT NECESSARY 2676
  77. 77. Figure 9.Survey ReportInferenceIn the survey respondents were asked how much they feel advertisementis necessary in their decisin making 24% said that it is always necessaryin decision making, 59% said that advertisement sometimes plays anecessary part when they take a decision, and 17% said thatadvertisement is not necessary in decision making .10. What are the factors which influence your decisionmaking process?FACTORS INFLUENCEDECISION MAKING PROCESSNO. OF RESPONDENTSPRODUCT FEATURES 55ADVERTISEMENT 29COST 37OPINION OF FRIENDS 20OTHERS 977
  78. 78. Figure 10.Survey ReportInferenceThis chart shows what are the factors considering which a respondent willbe influenced to decide to buy a product.37% said that the features of theproduct will influence them,19% said that advertisement will influencethem to decide as they will get lots of formation about the product,25%said that the cost of the product makes them decide to buy a product,13%said that they will go by the opinion of friends and rest 6% said that theremay be other factors which will influence them to decide11. What do you look for in an advertisement?WHAT YOU LOOK FOR IN ANADVERTISEMENTNO. OF RESPONDENTSPRICE 59BENEFITS 32BRAND ENDORSERS 20OFFERS 18QUALITY 2178
  79. 79. Figure 11.Survey ReportInferenceIn the survey the respondents were asked what are the apspect that theysee in anad..40% said that they see the price,21% said that they see thatbenefits shown in thaad.,13% see the brand endorsers,12% see the offersgiven and 14% see the quality tp of the product shown in the ad. Thisshows that in larger amount customers see the price aspect when they seean ad .12. Do you purchase a product just because your favoritescelebrity is endorsing it?DO IT YOU PURCHASE APRODUCT BECAUSE YOURFAVOURITE CELEBRITY ISENDORSINGNO. OF RESPONDENTSYES 72NO 50SOMETIMES 2879
  80. 80. Figure12. Survey ReportInferenceIn this chart the question asked to the respondents was if they purchase aproduct because their favorite celebrity is endorsing a particular product.13. Do you purchase a product just by getting attracted tothe product?DO YOU PURCHASE BYGETTING ATTRACTED TOTHE PRODUCTNO. OF RESPONDENTSYES 45NO 29SOMETIMES 60RARELY 1680
  81. 81. Figure13.Survey ReportInferenceAccording to the survey the 30% respondent said that they buy a productby getting attracted to it,19% said that they do not buy by gettingattracted ,40% said that sometimes by getting at traced they buy theproduct and 11% said that rarely the get attracted and purchase a product.14. What are the factors in an advertisement which willmake you change your brand loyalty?FACTORS WHICH CHANGEBRAND LOYALTYNO. OF RESPONDENTSBENEFITS 35VALUE FOR MONEY 50NEW FEATURES 28DISCOUNT 19WORD OF MOUTH 1881
  82. 82. Figure 14.Survey ReportInferenceThe respondents were asked what are the reasons which will make themchange their brand loyalty.23% said that the benefits of another productmay make them change their brand loyalty,33% said that the value formoney may make them change,19% said that new features in anotherproduct may compel them,13% said discounts offered by another brandsmay make them switchers, and last word of mouth from friends andfamily may make them like another brand.15. If you hear the name of a brand through advertisementwhat do you recall?WHAT YOU RECALL FROMADVERTISEMENTNO. OF RESPONDENTSMUSIC 56TAG LINE 27ENDORSERS 21PRODUCT 2682
  83. 83. Figure 15.Survey ReportInferenceThe respondents were asked what they can recall after they see or hear anad..38% of the respondents said that they can recall the music which wasplayed in the ad.,18%can remember the tag line,14% they remember thebrand endorser, 17% can recall only the product and 13 % they recall thebenefits that were shown in the ad. This makes it clearly evident thatmusic in an ad. makes it possible for consumers to recall the particularbrand.16. What are the things that should be highlighted in anadvertisement?WHAT SHOULD BEHIGHLIGHTED IN ANADVERTYISEMENTNO. OF RESPONDENTSBENEFITS 35TAG LINE 45BRAND NAME 2683
  84. 84. COMPANY NAME 18ENDORSERS 12PRODUCT FEATURES 14Figure 16.Survey ReportInferenceThrough this chart it is shown what are the things that should be givenmore priority in an ad..23% of the respondents said that the benefits of aproduct should be highlighted,30% said that the tag line should behighlighted so that the customers can recall and their brand preferencewill increase,17% said that the a brand name should be highlighted,12%said that company name should be given more priority,8% said thatendorsers should be brought in the lime light, and rest 10% said that thefeatures of the product should be highlighted. From this survey we cansay that ,tag line of a brand should be brought in lime light so that brandpreference of that particular product will increase.84
  85. 85. 17. If a product is misinterpreted by your friend would youbelieve him or go on with your own view?WHAT YOU DO IF APRODUCT IS MISINTERPRETEDNO. OF RESPONDENTSBELIEVE MY FRIEND 39GO WITH MY VIEW 63REFER ADVERISEMENT 2985
  86. 86. REFER INTERNET 19Figure 17.Survey Report.InferenceThe respondents were asked if their friend mis interprets a product whatthey willdo.26% said that they will believe their friend and go with theproduct,42% said that they will analyze and go with their own view,19%said that they will refert advertisement and rest 13% will refer internet toget the correct information. This shows that customers are very consciousabout a product and they will evaluate themselves and buy a product.18. Do you prefer going to any store just by seeing the offerson hoardings and banners?DO YOU GO TO STORES BYSEEING HOARDINGS ANDBANNERSNO. OF RESPONDENTSYES 75NO 22SOMETIMES 38RARELY 1586
  87. 87. Figure 18.Survey ReportInferenceThe responders were asked if the go to stores by seeing the hoardings andbanners 50% of the respondents said that the see the banners andhoarding 255 said sometimes they do and 105 said that it rarely happensthat they see and go to shop. Through this we come to know that thatbanners and hoarding showing that product with its othe5r facets createbrand awareness and also induces brands preference.19. After you experience any product do you convey themessage to others (positivenegative)?DO YOU CONVEYMESSAGE AFTER YOUEXPERIENCE APRODUCTNO. OF RESPONDENTSYES 79NO 26SOMETIMES 33RARELY 1287
  88. 88. Figure 19.Survey ReportInferenceThe respondents were asked if they convey word of mouth after theyexperience a product whether it be positive or negative.53% of therespondents said that they convey word of mouth to their friends andfamily after they use a product,17% said that they do not do so,22% saidthat sometimes they do it if the product has some problem and 8%saidthat they rarely s[read word of mouth to any one.20. What is your response to repeated advertisement inTvradio?WHAT IS YOUR RESPONSETO REPEATEDADVERTISEMENTNO. OF RESPONDENTSYES 68NO 27GET IRRITATED 36CHANGE THE CHANNEL 1988
  89. 89. Figure 20. Survey ReportInferenceIn this question the respondents were asked to give a feed back aboutrepeated ads. which are shown in different media especially electronicmedia.45% of the respondents said that they do not have any problem ,18% said that they do not like that every moment ads are shown,24% saidthat they get irritated and rest 13% said that they change the channelwhen repeated ads of the same product comes.21. How important is music in advertisement?IMPORTANCE OF MUSIC INADVERTISEMENTNO. OF RESPONDENTSVERY IMPORTANT 79SOMETIMES IMPORTANT 38NOT IMPORTANT 3089
  90. 90. Figure 21.Survey ReportInferenceIn this survey the respondents were asked how much they feel is musicimportant in an ad..54% of the respondents said that music plays animportant role in advertisemnets,26% said that sometimes its importantand 20% said that music is not important in ads. This survey proves thatmusic in an ad boosts the quality of an ad. and also it creates a positiveimpact on brand preference.22. Do you refer Google search before making purchasingdecision?DO YOU REFER GOOGLESEARCH BEFOREPURCHASINGNO. OF RESPONDENTSYES 8290
  91. 91. NO 25ALWAYS 27RARELY 16Figure 22.Survey ReportInferenceIn the survey the respondents were asked do they refer google searchbefore purchasing a product.54% said that they refer google search to findabout the product before purchasing it. This also brings in light that nowa days people are technologically aware and do search before theybuy.17% said that they do not go for google search,18% said that alwayswhat ever be the product they refer internet before they purchase, and11% of the respondents rarely do that if the product is of very importance.23. Does the internet advertisement in the website createbrand awareness?DOES INTERNETADVERTISEMENT CREATEBRAND AWARENESSNO. OF RESPONDENTSYES 7891
  92. 92. NO 22SOMETIMES 35RARELY 15Figure 23.Survey ReportInferenceIn this survey 52% of the respondents said that internet creates brandawareness,15% said that it does not create brand awareness,23% said thatit sometimes creates brand awareness,10% said that rarely it does so.Thisshows that internet really creates brand awareness24. Do you think internet is the most reliable source ofinformation?IS INTERNET A RELIABLESOURCENO. OF RESPONDENTSYES 82NO 41SOMETIMES 2792
  93. 93. Figure 24.Survey ReportInference55% said that internet is a very reliable source. this means that customer’sbelieve in internet advertisement which will help in creating good brandpreference.25. Have you ever online shopping?HAVE YOU DONE ON LINESHOPPINGNO. OF RESPONDENTSYES 77NO 3593
  94. 94. SOMETIMES 24RARELY 14Figure 26.Survey ReportInference52% have said that they have done on line shopping. This means thatcustomer’s rely on internet information about the products and also theydo on line shopping.FINDINGS The most preferred brand is Levis with 48 respondents out of 150Respondents. 62 respondents prefer their brands because of its quality. 66 of the respondents acquire information about their brands fromTelevision.94
  95. 95.  79 respondents said that they would prefer electronic media thanany Other media to get information about a brand. 58 respondents said that they rely on advertisement which showsthat Advertisement is important. 59 respondents said that sometimes they change their perception ofa Brand by seeing an advertisement. 55 respondents have said that product features influence theirdecision Making process. 59 respondents out of 150 said that they look for the price of aproduct in an advertisement. 72 respondents said that they purchase a product because theirfavorite Celebrity is endorsing it. 50 respondents said that value for money shown in an ad makesthem change their brand loyalty. When it was asked what they recall after seeing or hearing an ad 56respondents said music. 45 respondents said that the tag line should be highlighted in anadvertisement. 75 respondents have said that they go to the stores by seeing thehoardings and banners. 79 respondents said that they spread word of mouth afterexperiencing a product. 79 respondents said that music is very important in anadvertisement. 82 respondents said that they refer google search before purchasinga product. 78 respondents said that internet advertisement really creates brand95
  96. 96. awareness about a product. 82 respondents said that internet is a reliable source for collectinginformation about a brand. 77 respondents said that they have done on line shopping. 89 respondents said that they do not refer company’s websitebefore purchasing.CONCLUSION According to this study, it has found out that people noticeadvertisements and the awareness level of the brand is good onlybecause of advertisements. Based on this study I would say television advertisements havemore reach to the people. Customers prefer television incomparison to other media since they get both the audio and visual96