1. http://www.allprojectreports.com/index.htm
Project Report on Advertising Effectiveness [Advertising/Sales
Promotion/Sales Management]
ADVERTISING EFFECTIVENESS
CONCEPTUAL STUDY OF PROMOTION MIX
People no longer buy shoes to keep there feet warm and dry. They buy them
because of the way the shoes make them feel masculine, feminine, rugged,
different, sophisticated, young, glamorous, "in" buying shoes has become an
emotional experience . Our business now is selling excitement rather than
shoes. - Francis C. Rooney
Modern Marketing Trends : Modern marketing calls for more than
developing a good product it attractively and making it accessible to target
customers. Companies must also communicate with their present and potential
customers. Every company is inevitably cast into the role of communicator and
promoter.
What is communicated, however should not be left to change. To communicate
effectively; companies hire advertising agencies to develop effective ads; sales
promotion specialists to design sales incentive programmes and public relations
firms to develop the corporate image. They train their sales people to be
friendly and knowledgeable. For most companies, the question is not whether
to communicate but rather what to say, to whom.
Promotion Technique :Promotion influences demand by communicating
product and company message to the market. A promotion Techniques involves
the co-ordination of all communication efforts aimed at a specific audience;
consumer and shareholder. The most critical promotional question is the proper
mix of advertising, personal selling, sales promotion and publicity. The
promotion mix is usually co-ordinated on a campaign basis, taking the
campaign may efforts include a total campaign with one unified theme. All
promotion messages tie in to this theme in one way or the the, rather than
conflicting with it.
ADVERTISING

2. What is Advertising :The word ‘Advertising’ has its origin from a Latin
word ‘Adventure’ which means to turn to. The dictionary meaning of the
word is ‘to announce publicity or to give public concerned to a specific thing
which has been announced by the advertiser publicity in order to inform and
influence them with the ideas which the advertisement carries. In business
world the terms in mainly used with reference to selling the product of the
concern.
The advertising, as Jones defines it is "a sort of machine made mass production
method of selling which supplements the voice and personality of the
individual salesman, such as manufacturing the machine supplements the hands
of the craftsman." It is thus a process of buying/sponsor/identified media space
or time in order to promote a product or an idea. From a careful scrutiny of the
above definition, the following points emerge :
Advertising is a paid form and hence commercial in nature. This any sponsored
communication designed to influence buyer behaviour advertising.
Advertising is non-personal. Unlike personal selling, advertising is done in a
non-personal manner through intermediaries or media whatever the form of
advertisement (Spoken, written or visual). It is directed at a mass audience and
not directed at the individual as in personal selling.
Advertising promotes idea, goods and services. Although most advertising is
designed to help sell goods, it is being used increasingly to further public
interest goals.
Advertising is identifiable with its sponsoring authority and advertiser. It
discloses or identifies the source of opinions and ideas.
Advertising thus is :
1. Impersonal
2. A communication of ideas.
3. Aimed at mass audience
4. By a paying sponsor.
The two forms of mass communication that are something confused with
advertising are publicity and propaganda. If we eliminate the elements of the

3. "paying sponsor" (The paid requirement) we would have the element of
publicity left : For publicity is technically speaking, advertisement without
payment. In a similar manner. If we eliminate the requirement of an "identified
sponsor", the resulting communication is propagandistic.
It is important for us to emphasize that advertising may involve the
communication of ideas or goods of service. We are all aware that advertising
attempts to sell goods and services. But we may overlook the more important
fact that it often sells ideas. Advertising may persuade with information; it may
persuade with emotion: more frequently, it endeavours to persuade with some
mixture of both.
(1) Electronic Media
Advertisers use two types of media to reach target consumers over the
airwaves; radio or T.V.
(A) Radio :
Advertisers using the medium of radio may also be classified as National or
Local advertisers. The radio is a prominent vehicle of advertising in our
country and accounts for a large sum of the total advertising budget.
The radio serves principally local rather than national or large regional markets.
Many small advertisers use the radio. So do some large organizations.
When T.V. became a factor in the advertising scene, some industry observers
felt that radio advertising might become insignificant or even disappear. This
has not been so, for radio operators have responded to the challenge by offering
programmes that features music etc. which appeal to local audience consumers
have responded very favourably to this approach. Moreover TV does not have
much coverage in our country.
(B) Television :
T.V. - Advertising Media :Late in India, a growing class of advertising media
has been the TV. In our country, commercial advertising on TV is severely
limited because broadcast timings are only in the evenings. The TV is a unique
combination timing of sight and sound and achieves a deeper impact than the
other media do. This is particularly advantageous for advertisers whose product
require demonstration. TV advertising offers advantage of impact, mass
coverage, repetition, flexibility and prestigious. In our country not everyone has

4. a TV set; therefore it does not reach everyone. Moreover, in rural India where
76.31% of our population lives. There are hardly any TV sets, except at the
community centres where electricity is available. Moreover, TV programmes in
our country do not offer much selectivity. The translation is limited, any centers
do not have TV towers.
TV appeals to both the senses of sound and of sight . As a result is combines
the two to produce high-impact commercials. Finally, the fact that product or
service is promoted on TV may build a prestigious image of the product and its
sponsor. The pleasure derived from watching TV is at least potentially
transferable to the advertising message delivered through the medium.
(ii) Print Media
The print media carry their massages entirely through the visual mode. These
media consist of newspapers, magazines and direct mail.
(A) Newspaper :
A sizable share of the total advertising budget is spent on advertising in
newspapers. Newspapers in our country virtually reach most of the homes in
the cities. Since newspapers are local, marketers can easily use them to reach
particular markets. This selectivity is easily rigorous. Some are in the twelve-
hour range. From the viewpoint of the advertiser, newspaper offers several
advantage, they are local in content and appeal and provide opportunity for
direct communication between a product and its local dealers or distributors.
Because newspapers supply news, they offer an atmosphere of factual
information and of currency that may be favourable for some advertising
situations. Advertisers can reach a very broad audience through newspapers
which offer great flexibility. The advertisers may choose the specific area to be
covered and the advertisement can be placed in newspapers at very short notice
as compared with other media.
(B) Magazines :
Magazines are also mean of reaching different market, both original and
matinal and of general and specific interest. An organisation may approach
national markets through such publication as Business India, Famina,
Sportsweek, India Today, Business World and Filmfare. Some marketers divide
their market on the basis of such variable as age, educational level and interest
magazines. Magazines are divided into those parts that serve business,
industrial consumers, ladies, sports etc. The diversity of magazines is

5. tremendous. Some offer news or together "General Interest" content to huge
audience. Others are highly specialised, technical or even exotic. In general,
magazines offer advertiser the opportunity to reach highly selective audience.
The primary advantage of magazine advertising are selectivity of market
targets; quantity reproduction long life; the prestige associated with some
magazines; and the extra service offered by many publications. The quality of
magazines reproduction is usually high. Consumers sometime keep individual
copies for long period of time; reread them or pass them on to other. Some
magazines have prestige value. The marketer can cover national or large
regional markets at a low cost per contract (per individual reached). Magazines
generally offer high-quality printing of advertisement.
(iii) OUTDOOR AND TRANSIT MEDIA
(A) Outdoor Advertising :
Outdoor Advertising :Outdoor advertising involves the use of sign and bill-
boards, posters or displays (such as those that appear on a building’s wall) and
electric spectacular (large, illuminated, sometime animated sign and display).
The marketers may purchase billboards on the basis of showings. A showing
indicates the percentage of the total population of a particular geographic area
that will be exposed to it during one month period. The highest showing is 100.
Here the number of billboards is would attract approximately 50% of the local
population about 20 times during a month. Sings are usually smaller than
billboards and are erected and maintained by the marketer rather than by the
advertising media.
This form of advertising has the advantage of communication quick and simply
ideas of repetition and of the ability to promote products that are available for
sales. Outdoor advertising is particularly effective in metropolitan and other
can use this medium to bring the products to the attention of consumers or to
remaining them of the product, while they are on shopping trips or area
disposed towards shopping. Advertisers may utilize this medium to
economically reach a large mass of people or small local markets.
(B) Transport Advertising :
Transport advertising appears on the inside or outside of taxis, buses, railways
and other modes of passenger transportation. Marketers may use transit
advertisement to attain high exposure to particular groups consumers on theory
way to and from work and tourists. Repeat exposure is possible for a majority

6. of the people in our country use public transport basis. Transport advertising is
useful in reaching consumers at an advantageous point which they are
embarking on a shopping trip. This medium is a low cost medium.
SALES PROMOTION
According to the American Marketing Association, Sales Promotion consists of
those marketing activities other than personal advertising and publicity that
stimulate consumer purchasing and dealer effectiveness, such as displays
shows and expositions, demonstration and various non-recurrent selling efforts
not in the ordinary routine.
Sales promotion activities are impersonal and usually non-recurring and are
directed at the ultimate consumers, industrial consumers and middlemen. These
activities tend to supplement the advertising and personal selling efforts.
Examples of sales promotion are free product samples, trading stamps, store
displays, premiums, coupons and trade shows. For many organisations,
including the marketers of food, toys and clothing, store displays are an
important sales promotion device. Display exposes the promotion messages to
consumers at the time and place of purchase. Such exposure is especially
important for items that are bought on impulse. Numerous consumers products
are purchased in stores that use self-service selling method's. Marketers of such
items need effective display in order to distinguish their products from those of
their rivals.
PUBLICITY
Publicity is a means of promoting the mass market and is similar to advertising,
except that it is free, is found in the editorial portion of news media and
pertains to newsworthy events. The most common type of publicity are news
release (also know as press release), photographs and feature stories. Marketers
have less control over the nature of the publicity that their organisation and
products receive than they have over their advertising, personal selling and
sales promotions messages. Upon receiving a news release, for instance, the
editor or broadcast station programme director may choose to throw the release
in the waste paper basket, change the hording, or print or broadcast it in the
original form. The disposition of the news release is entirely in the hands of the
media and cannot be dictated by the marketer. Publicity may be negative as
well as positive. Some products and brands have received bad publicity; for
example cigarettes, wings, artificial sweeteners have been branded unsafe or
unhealthy in the publicity which they would rather have done without. Many a

7. companies and trade association officials attempt to develop favourable
working relationships, with the media in order to minimise bad publicity. They
realize that such communications to the public may have every adverse impact
upon the image of the organisation.
PERSONAL SELLING
Personal selling consists of persons to communication between the sales
persons and their prospects. Unlike advertising, it involves personal
interactions between the sources and the destination. Advertising aims at
grouping the shotgun approach, while personal selling aims at individuals the
right approach. Sales persons are in the position to tailor their messages
according to the unique characteristics of each prospect. Further, by observing
and listening, sales persons receive immediate feedback on the extent to which
their messages are getting across. If feedback indicates that the message is not
getting across, the sales person may quickly adjust it or the method of its
presentation.
Personal Selling :Personal selling may be a very intense means of promotion.
Consumers can easily leave the room-during a TV commercial, ignore a store
display. The most effective method of promotion probably is to have sales
person provided that the organisation has sufficient funds. The most effective
method of promotion probably is to have sales person call upon every target
consumers, for many institutions, especially those that appeal to the mass
market, this would be terribly inefficient. As a result, they employ mass
marketing techniques such as advertising, personal selling is very important in
industrial marketing.
PUBLIC RELATIONS
Marketers engage in public relations in order to develop a favourable image of
their organisation and products join the eyes of the public. They direct this
activity to parties other than target consumers. These "other" include the public
at large labour unions, the press and environmental groups. Public relations
activities include sponsoring, lobbying and using promotion message to
persuade members of the public to take up a desired position. The term public
relations refers to a firm's communication and relationships with the various
sections of the public. These sections include the organisation customers,
suppliers, share holders, employees, the government, the general public and the
society in which the organisation operates. Public relations programme may
higher be formal or informal. The critical point is that every organisation,

8. whether or not it has a formalized (organised, programme, should be concerned
about its public relations.
ADVERTISING EFFECTIVENESS
Advertising is an art not a science. Effectiveness of which cannot be measured
with a mathematical or empirical formula some advertisers argue that
advertising efforts go to waste, but every advertiser is keenly interested in
measuring or in evaluation of ad. effectiveness. Testing for the effectiveness of
ad. will lead advertisement testing must be done either before or after the ad
has done in the media. It is of two types, pretesting which is done before the ad.
has been launched and one is referred to as cost testing which is done before
the ad. has been launched and one is referred to as cost testing which is done
after launching the advertising campaign. The basic purpose of advertising
effectiveness is to avoid costly mistakes, to predict the relative strength of
alternative strength of alternative advertising strategies and to increase their
efficiency. In measurement of ad. effectiveness feed back is always useful even
if it costs some extra expenditure to the advertiser.
Sales-Effect :
Communication-effect advertising research helps advertisers assess
advertising's communication effects but reveals little about its sales impact.
What sales are generated by an ad that increases brand awareness by 20% and
brand preference by 10%?
Advertising's sales effect is generally harder to measure than its communication
effect. Sales are influenced by many factors besides advertising, such as the
product's features, price, availability and competitors' actions. The fewer or
more controllable these other factors are, the easier it is to measure
advertising's effect on sales. The sales impact is easiest to measure in direct-
marketing's effect on sales. The sales impact is easiest it is to measure in direct-
marketing situations and hardest measure in brand or corporate-image-building
advertising.
PROGRESS TESTS
These assess the various stages of buyer awareness, preference, buying
intention and the actual purchase in relation to ad. effort. They are called sales
effect tests.
Measuring Sales Response to Advertising :

9. Though increase in sales in the true measure of advertising effectiveness, in
reality it is difficult to measure the increase that is due to a particular
advertisement. It is rather difficult to correlate the response in sales with the
advertising programme. However, a few methods have ben discalled in the
following paragraphs which are generally used to measure the sales response to
advertising.
The Netapps Method :
The term Netapps has been framed from the term net-ad-produce-purchases.
This method, which has been developed by Daniel Starch and Staff company,
requires the measurement of both readers and non-readers who purchased and
who did not purchase the brand under investigation. The netapps method is
useful in the relative measurement of the sales-effectiveness of various
advertising approaches. But the method is subject to a high level of false
reporting and open to interviewer bias. Moreover, we have considered
advertising influence as the only factor which results in a purchase. There may
be, and often are, other variables which affect purchases.
Sales Results Tests :
The additional sales generated by the ads are recorded, taking several routes.
Past Sales before the ad and sales after the ad are noted. The difference is
attributed to ad impact.
Controlled Experiment : In experimental market, any one element of marketing
mix is changed. It is compared with the sales of another similar market. The
element's presence observance is a reason for difference in sales.
Instead of two markets, the experiment can be carried on the two groups of
consumers.
The inventory audit is dealers inventory before and after the ad is run.
Attitude Tests
This is an indirect measurement of the post-testing effects of ads on attitudes
towards the advertised product or brands. The change in attitude as a result of
advertising is assessed. The assumption is that favourable attitude towards the
product may lead to purchases.

10. Most ads are designed to either reinforce or change existing attitudes. An
attitude is a favourable or unfavourable feeling about a product.