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ADVERTISEMENTS ON
CONSUMERS
SUBMITTED BY:
ACKNOWLEDGEMENT
We sincerely thank all the faculty members of KIIT School of Management (our Alma
matter), Bhubaneswar for encouraging us to carry out some creative work.
Our special thanks to Dr Rabi N Subudhi, a person whom we would treasure all our life for
instilling a sense of responsibility in us and for being a best faculty and patiently listening to
our unending ideas.
We extend our deep sense of gratitude to all our family members and everyone, those who
have directly or indirectly encouraged and helped us to complete our project successfully.
We would like to extend our thanks to all the unseen hands that have made this project
possible. Thank you God!
Place: Bhubaneswar
Date: 24th April 2011
Avik Sarkar
Bimla Acharya
Abhirup Chakraborty
CERTIFICATE
EXECUTIVE SUMMARY:
This report titled “IMPACT OF ADVERTISEMENTS ON CONSUMERS” is a
research paper in which statistical data are used according to the results drawn on a
survey. This study is an attempt to understand the impact of advertisement on
consumers. It also tries to evaluate the advertising effectiveness in establishing brand
Patronage among the respondents.
The objective of this study is to analyse the advertising effectiveness on consumers,
to analyse the different medium through which the advertisement reaches maximum
number of people in the market, to analyse the strategies that the Company should
adopt such that the viewers turn into consumers. The survey was conducted among
the college students because they are most affected by the advertisement shown on
television and are the biggest viewers of television. Questionnaire were prepared and
distributed to get the suggestions about the effectiveness of advertisement. By the
survey, we came to know about that TV is the most effective media than any other
media to affect the lifestyle of people. From the conclusion of this study we can come
to the know what strategies can be adopted such that the TV advertisement can be
made more efficient .Like the creativity factor and humour attracts more viewers .The
medium of advertisement that has to hire through which we can reach maximum
number of people. And TV is one of the most efficient medium. The style, word and
tone that has to be used in the advertisement that attracts more number of people. The
type of feeling that is created by the advertisement and the strategies to adopt that
attract the people toward those feelings.
In research project the case study approach was taken. The products were carefully
hand picked after countless discussions with professionals from the advertising
fraternity.
Chapter 2
INTRODUCTION
• To know whether TV ads are more `liked or not liked' than any other media.
• To know whether TV ads influence buyer to purchase, affect their lifestyle and
increase materialism.
• To know the best time to put the TV ads to get the maximum reach.
• To infer whether TV ads are able to convey the message they are intended to.
• To infer whether the information given in TV ads are reliable or not.
• To infer whether the advertisement play an important role in buyer’s purchase
decision of any product.
The study was conducted to know impact on consumers of advertisements. Due to time and
resource constraints, this study is focused on college students. This study helps us to know
what are the consumer expectations towards advertising and their subsequent consumer
behaviour in response to the advertisements.
Chapter 3
Advertising is any paid form of non-personal presentation and promotion of ideas, Goods or
services by an identified sponsor. It is paid communication because the advertiser has to pay
for the space or time in which his advertisement appears.
"Advertising is the ability to sense, interpret . . . to put the very heart throbs of a business
into type, paper and ink."
-Leo Burnett, quoted by Joan Kufrin, Leo Burnett: Star Reacher(1995), Chicago, IL: Leo
Burnett Company, Inc., p. 54.
"Advertising may be described as the science of arresting the human intelligence long
enough to get money from it."
-Stephen Butler Leacock, quoted in Michael Jackman, Crown's Book of Political Quotations,
1982, New York: Crown Publishing Inc., p. 1.
Advertisers include business firms but also museums, charitable organizations, and
government agencies that advertise to various target publics. Advertisements are a cost
effective way to disseminate messages, whether to build brand preference or to educate a
nation’s people. Organizations handle their advertising in different ways. In small
companies, someone handles advertising in the sales or marketing departments, who works
with an advertising agency. A large company will often set up its own advertising
department, whose manager reports to the Vice President of marketing. The advertising
departments job is to develop the total budget, and handle direct-mail advertising, dealer
displays and other forms of advertising not ordinarily performed by the agency. Most
companies use an outside advertising agency to help them create advertising campaigns and
to select and purchase media. Global companies that use a large number of ad agencies
located in different countries and serving different divisions have suffered from
uncoordinated advertising and image diffusion. Advertising agencies need to redefine
themselves as communication companies and assist clients in improving their overall
communication effectiveness.
• It is much less effective than personal selling and sales promotion at later stages in
the buying process, e.g.: in convincing and securing action.
• It is less flexible than personal communication. It cannot answer objections raised by
prospects.
• It is essentially one-way means of communication. It cannot obtain quick and
accurate feedback in order to evaluate message effectiveness.
• It is most efficient communication (very low cost per prospect) but it is least effective
as a tool of a communication.
• It is unable to reach prospects when they are in a buying mood. Hence advertisements
have to be repeated and repetition involves additional cost.
• Advertising, many a time lacks credibility and trustworthiness.
• To create widespread visibility in the market and access those pockets which are not
approachable by the sales force. Quoting a customer, “Make the customers come to
you rather than trying to approach all the potential customers.”
• As a symbol of sound financial position of the company and also to make the
statement that the company is here to stay.
• To aid in easy brand recall and also create a top of mind awareness of the brand.
• To make maximum potential customers aware of the new offerings and schemes of
the company and initiate enquiries about the same.
• To establish a strong brand image in the market so as to give the company an edge
over its competitors.
The media planner has to know the capacity of the major media types to deliver reach,
frequency , and impact. Media planners make their choice among media categories by
considering the following variables:
• Target-Audience Media habits: for example radio and television are the most
effective media for reaching teenagers.
• Product Characteristics: Media types have different potentials for demonstration,
visualization, explanation, believability and color. Women’s dresses are best shown
in color magazines, and Polaroid cameras are best demonstrated on television.
• Message characteristics: Timeliness and information content will influence media
choice. A message announcing a major sale tomorrow will require specialized
magazines or mailings.
• Cost: Television is very expensive, whereas newspaper advertising is relatively
inexpensive. What counts is the cost-per-thousand exposures.
Indian Advertising starts with the hawkers calling out their wares right from the days when
cities and markets first began
• Shop front signages.
• From street side sellers to press ads
• The first trademarks
• Handbills distributed separately from the products
18th Century:
Concrete advertising history begins with classified advertising. Ads appear for the first time
in print in Hickey's Bengal Gazette. India's first newspaper (weekly). Studios mark the
beginning of advertising created in India (as opposed to imported from England) Studios set
up for bold type, ornate fonts, more fancy, larger ads. Newspaper studios train the first
generation of visualizers & illustrators. Ads appear in newspapers in the form of lists of the
latest merchandise from England.
Since 1980, advertising in India has demonstrated phenomenal growth – growth in size,
quality, and range of services, in the total expenditure in advertising per year. In 1950
advertising expenditure was hardly Rs. 5 Crores. By 1988, it rose to Rs. 900 Crores. It may
be around by Rs. 2200 Crores by 2001 A.D.
There are now over 400 advertising Agencies as against just 100 advertising agencies around
1970. In the Indian market, we have more than 11,000 branded products extensively
advertised in all languages. Press advertisement account for about 50 percent and account for
about 18 percent of the total advertising costs. In the media sector we have at present 20
intense competition, e.g., TV / Radio, Newspaper each attempting an increasing market
share. In the press segment we are witnessing regular media war. In the case of the press,
competition is total. However, media owners are expected to adopt now customer-oriented
approach to get rid of such unhealthy competition.
A good advertisement must have the right message communicated through a right media. It
must reach the right people and prospects and that too at a right time and at the right cost.
Right timing of an advertisement needs no emphasis. It should fulfill its sole purpose, viz.,
gain sale or action from the prospects and the cost of communication should be reasonable.
The task assigned to the advertisement can be successfully fulfilled when:
• It is seen by the desired prospects.
• It is read by them with interest.
• It is properly understood by them exactly as the advertiser wants.
• It is believed by them and it wins their confidence and trust and above all
It succeeds in igniting their desire to purchase the product or service offered or sale. An
effective advertisement takes the prospect near about the point of closing the sale so that
actual sale may be easily completed by the sales force. Each advertisement must be a unique
selling proposition, invoking maximum force of persuasion to convert a prospect into a
customer.
ATTENTION
It can be viewed as an information filter – a screening mechanism that controls the quantity
and nature of information any individual receives. Getting a consumer’s attention is not easy.
An individual, overtly or accidentally, avoids exposure to stimuli. The advertising
environment is truly “cluttered”; most major magazines have almost one - half of their pages
carrying advertisements, the other half carrying editorial matter. Although 21 all this
advertising, it is not easy to create an advertisement that stands out enough to get noticed,
processed, and remembered. The effectiveness of ads is reduced not only by the higher levels
of clutter in general, but even more significantly by the proximity of ads for competing
brands from the same product category.
The situation is made worse in the broadcast media, especially television. Viewers have
always had the freedom to do things while a program is being shown; including leaving the
room mentally and physically, but the use of remote control devices has made channel
switching endemic. Television advertisers today have to cope with the phenomena of
zapping and zipping.
The attention filter operates at various levels of effort and consciousness. At one extreme is
the process of active search wherein a receiver actually seeks information. He or she might
solicit opinions of friends or search through magazines not normally read. Another level
could be termed passive search. A receiver searches for information only from sources to
which he or she is exposed during the normal course of events. The final level might be
called passive attention. Here a receiver has little immediate need for the information and
makes no conscious effort to obtain it, but some information may nevertheless enter the
system. At all three levels, it is appropriate to discuss why a person obtains information so
that ads can be designed to maximize attention. There are, of course, as many reasons as
there are situations and individuals. However, it is instructive to examine four general
motives for attending to informative stimuli.
A first motive is to obtain information that will have a high level of utility for a person. In an
advertising context, an individual will obtain product information that will help make better
22 purchase decisions. Second, people may be motivated to expose themselves to
information that supports their opinions- supportive exposure-and to avoid discrepant
information. Third, there is a desire to be exposed to information that stimulates. Finally,
people are motivated to find stimuli that are interesting to them. These motives will be
examined in turn.
Strategy provides the link between advertising objectives and plans and paves the ground for
their implementation. It can be instrumental in prioritizing various objectives, taking into
account the attitudinal framework as well as corporate and marketing goals, and the market
situations and characteristics. Advertising strategy is based on consideration such as the
following:
• Advertising objectives.
• Advertising budgets.
• Selection of target audiences.
• Advertising message.
• Media decision.
• Media space decisions.
• Company’s standing and it s strength and weaknesses.
• Product history and its life cycle stage.
• Positioning of the product as indicated by perceptual mapping.
• Existing and anticipated competition.
Most of the time, an advertisers (seller) tries to build a brand privilege or patronage for his
products or service. A seller has a brand privilege if buyers exhibit brand insistence, brand
loyalty, or brand preference towards his product or service. By means of advertising or
persuasive mass communication, seller tries to move prospective buyers and existing buyer
from lower level to higher level of brand attitude of customers – from brand ignorance to
brand awareness, or from brand acceptance to brand Preference, loyalty, and insistence.
Chapter 4
RESEARCH METHODOLOGY
The research for this study is a Descriptive Research. A Descriptive Research is a type of
conclusive research, which has its major objective. As the description or something, usually
market characteristics or functions. It is preplanned and structured.
Under this approach a cross-sectional study is conducted in which one sample of respondents
is drawn from the target population and information is obtained from this sample one. This
study is based on descriptive research approach comprises the following methods;
1. Secondary Data:
Secondary data refers to that which is compiled by some other than the other researcher for
purpose not directly related to the research. These are readily available for processing. This
type of data relate to past period.
The sources used for such data types are as follows:
• Published materials such as periodicals and books like business periodicals, marketing
journals, general business and trade magazines, 4ps, pitch etc.
• Computerized databases such as internet databases and off-line databases (information
available on diskettes and CD-ROM disks).
2. Primary Data:
Primary data refers to the data gathered for a specific purpose or for a specific research
project. These data gives latest information. This type of data is obtained from original
sources. In this study, primary data is collected through Questionnaire Method.
The approved questionnaire is the main tool used for data collection in this study. The
questionnaire consists of structured and unstructured questions.
The questionnaire tool is mainly used because:
• Both qualitative and quantitative information can be gathered.
• Factual survey can be done.
• Opinion survey in order to secure personal opinions or on a particular matter can be done
effectively. This tool is administered through personal interview with the target population.
1. Sampling Unit –
The sampling unit consists of college students for analyzing the advertising effectiveness on
consumers.
2. Sampling Procedure –
How should the respondents be chosen?
The sampling technique chosen are Simple Random Sampling and Stratified Random
Sampling, in which a sample is drawn probabilistically from each group.
3. Sample Size –
How many respondents to be surveyed?
Due to time and other constraints, the size is 150 respondents. These samples of respondents
are chosen randomly.
A probability sampling technique in which each element in the population has a known and
equal probability of selection. Every element is selected independently of every other
element and the sample is drawn by a random procedure from sampling frame.
A probability sampling technique that uses a two-step process to partition the population into
sub populations, or strata. Elements are selected from each stratum by a random procedure.
ULTIMATE CONSUMER:
Ultimate Consumers refers to those individuals who buy goods and services for final use or
consumption.
DATA ANALYSIS:
The data collected are tabulated and classified as required. Statistical techniques such as
frequency distribution, central tendency, percentages, etc., are used for analysis of primary
data. Conclusions are drawn based on the analysis and findings of primary data.
• Due to time and resource constraints, only college students are selected for the study for
making an analysis for the advertising strategies.
• Due to resource and time constraints, a randomly selected sample has been chosen
respondents for making an analysis of advertising effectiveness on consumers.
Chapter 5
1. Advertisements on which media grab your attention the most? Highest=1, Lowest=4
Newspape Hoarding
Media TV Radio r s
Averag
e 1.30 2.70 2.30 2.64
Interpretation: From the perceptual map we can say that the media which grbas most of the
attention is Television advertisements.
Interpretation: From the perceptual map that FMCG advertisement the customers do come
across frequently.
Valid Cumulative
Frequency Percent Percent Percent
Valid YES 53 60.2 79.1 79.1
NO 14 15.9 20.9 100.0
Total 67 76.1 100.0
Missing System 21 23.9
Total 88 100.0
Interpretation: From the above results and pie-chart we can say that use of popular songs in
advertisements grabs the customer’s attention which can very well affect sales of a company.
q5
6. Which product will you choose, Company A, practicing CSR, and Company B, not
practicing CSR?
q6
Frequenc
y Percent
Missin YES 63 71.6
g NO 4 4.5
System 21 23.9
Total 88 100.0
8. Which kind of media do you consider as more believable for different categories of
products?
q8.1a
q8.1b
q8.1c
Frequenc Valid Cumulative
y Percent Percent Percent
Valid No 46 52.3 100.0 100.0
Missin YES 21 23.9
g System 21 23.9
Total 42 47.7
Total 88 100.0
q8.1d
q8.1e
q8.1f
q8.1g
Interpretation: From the above result it can be said that in auto mobile sector TV is the
most trusted media.
q8.2a
q8.2b
q8.2c
q8.2d
q8.2e
q8.2f
q8.2g
Interpretation: From the above result it can be said that in FMCG sector TV is the most
trusted media.
q8.3a
q8.3b
q8.3c
q8.3d
q8.3e
q8.3f
q8.3g
Interpretation: From the above result it can be said that in Insurance sector Newspaper is
the most trusted media.
q8.4a
q8.4b
q8.4c
q8.4d
q8.4e
q8.4f
q8.4g
Interpretation: From the above result it can be said that in Electronics sector TV is the most
trusted media.
Interpretation: From the above results and pie-chart we can say that FMCG
advertisements influences the consumers the most.
Thums
Brands Coca-cola Pepsi -up Sprite Slice
Averag
e 2.86 2.91 2.46 3.09 3.68
Interpretation: From the above results and pie-chart we can say that Thumps-Up is the
popular brand.
11. Which factor influence you most in your preferred soft drink brand to go for it?
Taste Advertisements Retailers Flavors
1.3 2.9 3.61 2.18
Interpretation: From the above results and pie-chart we can say that consumers get
influenced by the taste of the soft drink, followed by advertisements.
Interpretation: From the above results and pie-chart we can say that Axe is the most
popular deodorant brand among consumers.
13. Which attribute you like most about it?
Fragrance Advertisements Price
1.36 2.52 2.1
Interpretation: From the above results and pie-chart we can say that Axe is popular
due to its fragrance followed by its price.
Interpretation: From the above results and pie-chart we can say that most of the
consumers prefer shopping at Big Bazaar.
15. What makes you to go for the mentioned superstore?
Variet Advertisemen Ambienc
Price y ts e
1.82 2 3.16 2.88
Interpretation: From the above results and pie-chart we can say that consumers shop
at Big Bazaar, due to its pricing strategy, which is always displayed in hoardings and
T.V. advertisements.
16. How satisfiable and reliable were the claims made in the advertisement?
q16
Interpretation: From the above results and pie-chart we can say that most of the
consumers are satisfied with the claims shown in TV advertisements.
Interpretation: From the above results and pie-chart we can say that consumers’
lifestyle get affected by the advertisements they come across daily.
18. Did you ever want to try something because you saw its commercial on TV?
q18
Valid Cumulative
Frequency Percent Percent Percent
Valid YES 45 51.1 67.2 67.2
NO 22 25.0 32.8
Total 67 76.1 100.0
Missin System
21 23.9
g
Total 88 100.0
Interpretation: From the above results and pie-chart we can say that people try to imitate
whatever is shown in TV advertisements or in any other media.
19. Did a product with a good advertisement, but poor quality, ever disappoint you?
q19
CONCLUSION
In today's marketing concept the focus is on the consumer, his needs and requirements, rather
than on the product. Naturally all media of advertisements begin with the customer and ends
with the consumer. In order to sell a product persuasive and pervasive communication is
essential. Basically through television advertisements there is a promotion of information
which influences people. An advertisement gives the message about the product in a very
natural way. This research was conducted to see the impact of advertisements on the young
generation. From the survey conducted, it was clearly found that television advertisements
create a very strong impression on the youth. The advertisements, which are being flashed in
the television very often, are effective. Through the frequent flashing of advertisements, the
advertiser keeps in touch with consumers. The viewers also remember the product and buy
them.
The quality of advertisements and its social acceptance are the two sides of the same coin.
Advertising has to reflect social norms, values and aspirations or else it will be irrelevant and
wasteful. Imposition of such discipline is preferable. Another problem television advertisers
confront is the tendency of viewers to switch channels, called `zapping' or leave the room
during commercial breaks. Because of television viewers' strong patterns of commercial
avoidance, commercials have to be intriguing, intrusive and likable. Television advertising
professionals in developing countries have to be fully aware of the challenges and the
responsibility thrust upon them by virtue of a vast unexploited potential, on one hand, and
the resistance they encounter from various quarters on the other. This requires their looking
beyond their own narrow areas of operation. A great deal of cooperative endeavour is
required in order to put advertising on a sound footing. This has to be backed by research, the
lack of which is a major draw back for advertising.
Advertisers should understand that improperly prepared advertisements can cause physical,
mental or moral harm to the consumers. They should not exploit the credulity and lack of
experience of consumers for a mere profit. In addition, parents must educate youngsters to
become responsible and informed consumers' says the American Academy of Paediatrics.
As more and more parents spend more time producing income and less time tending their
children, the burden of responsibility falls increasingly on the advertiser. Parents and
teachers have a responsibility to teach youth about the realities of a commercial world, just
as they teach how to cross a road safely.
On the other hand, effective television commercials can achieve audience acceptance if they
are well done and they can minimize viewers' patterns of avoidance if they are intriguing as
well as intrusive. In short, youngsters are, without doubt, attracted to advertisements. So the
onus is on the advertisers, not to produce any advertisement which will mislead the
uninformed. Knowing the considerable impact of advertisements on youth, the advertisers
must create advertisements which are both realistic and moral.
Chapter 7
ANNEXURE
1.1Questionnaire:
➢ Name:
1. Advertisements on which media grab your attention the most? Highest=1, Lowest=4
Media Ranks
TV
Radio
Newspaper
Hoardings
8. Which kind of media do you consider as more believable for different categories of
products?
T Newspape Magazin Radi Interne Billboard Friend
V r e o t s s
Automobile
s
FMCG
Insurance
Electronics
9. Which product category advertisement influences you the most? Rank them
according to their impact, Highest=1, Lowest=4.
Goods
FMCG
Automobiles
Apparels
Electronics
10. Which soft drink brand do you always prefer? Highest=1, Lowest=7.
Brands Ranks
Coca-cola
Pepsi
Thumps Up
Sprite
Slice
Others, please specify
11. Which factor influence you most in your preferred soft drink brand to go for it?
Highest=1, Lowest=4.
Preferences Ranks
Taste
Advertisements
Retailers
Flavours
15. Which superstore you always prefer over others? Tick any one
Malls
Big Bazaar
WestSide
Vishal Megamart
Shoppers’ Stop
Globus Lifestyle
17. How satisfiable and reliable were the claims made in the advertisement?
Highly satisfactory
Satisfactory
Dissatisfactory
Highly dissatisfactory
19. Did you ever want to try something because you saw its commercial on TV?
YES
NO
20. Did a product with a good advertisement, but poor quality, ever disappoint you?
YES
NO
BOOKS:
ON THE WEB:
www.google.co.in
www.wikipedia.com
www.Med.umich.edu
www.tmadvertisment.com
www.wacc.org.ok