CHAPTER-1

INTRODUCTION OF MARKETING,AND ADVERTISING, LIMITATION OF RESEARCH COMPANY PROFILE OBJECTIVES OF THE STUDY, REVIEW OF LITERATURE, METHODOLOGY,HYPOTHESIS OF THE STUDY

(1) INTRODUCTION OF MARKETING

In the 21st Century, marketing promotion principles could certainly benefit for the organization, the consumer and change the socio-economic and environmental system. Marketing is the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling . Marketing promotion is a communication tool used by a firm to carry out the promotion process and to communicate directly with the target market. These communication tools include advertising, the Internet, direct marketing and ECommerce, sales promotion, event sponsorships, point of purchase, display, support communication, public relation and personal selling.1 Recent approaches in marketing include relationship marketing with focus on the customer, business marketing or industrial marketing with focus on an organization or institution and social marketing with focus on benefits to society.2 New forms of marketing also use the internet and are therefore called internet marketing or more generally e-marketing, online marketing, search engine marketing, desktop advertising or affiliate marketing. It attempts to perfect the segmentation strategy used in traditional marketing. It targets its audience more precisely, and is sometimes called personalized marketing or one-to-one marketing. Internet marketing is sometimes considered to be broad in scope, because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media.

Richard J. Semerik : Production and Integrated Marketing Communication,P.g-78 Frankilin S. Roger: New approaches in marketing,p.g-56 2

NEW APPROACHS IN MARKETING Western Orientation Profit driver European Description timeframe Relationship marketing / Relationship management Building and keeping good 1960s to present day Emphasis is placed on the whole relationship between suppliers and customers. The aim is to provide the best possible customer service and build customer loyalty. In this context, marketing takes place between Business marketing / Industrial marketing Building and keeping businesses or organizations. The product focus 1980s to lies on industrial goods or capital goods rather than consumer products or end products. Different forms of marketing activities, such as promotion, advertising and communication to the customer are used. Similar characteristics as marketing orientation Social marketing] Benefit society to 1990s to but with the added proviso that there will be a present day curtailment of any harmful activities to society, in either product, production, or selling methods. 1980s to Branding Brand value present day In this context, "branding" is the main company considered philosophy. philosophy an and marketing of is

customer ] relations

relationships present between organizations day

instrument

branding

(a)CONSUMER ORIENTATION A firm in the market economy survives by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. Many companies today have a customer focus (or market orientation). This implies that the company focuses its activities and products on consumer demands. Generally, there are three ways of 3

doing this: the customer-driven approach, the market change identification approach and the product innovation approach. In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no reason to spend R&D funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthrough.3 A formal approach to this customer-focused marketing is known as SIVA (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer-centric alternative to the well-known 4Ps supply side model (product, price, placement, promotion) of marketing management4.

Product

Solution

Promotion Information

Price

Value

Place

Access

If any of the 4Ps were problematic or were not in the marketing factor of the business, the business could be in trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its products will decrease. However, in recent years service marketing has widened the domains to be

Simmon and David .j.:Changes in technology and its impact on Advertising,2006,p.g.-32 4 Phillip Kottler , Principle of marketing ,2003,p.g-23 4

considered, contributing to the 7P's of marketing in total. The other 3P's of service marketing are: process, physical environment and people. Some qualifications or caveats for customer focus exist. They do not invalidate or contradict the principle of customer focus; rather, they simply add extra dimensions of awareness and caution to it. The work of Christensen and colleagues on disruptive technology has produced a theoretical framework that explains the failure of firms not because they were technologically inept (often quite the opposite), but because the value networks in which they profitably operated included customers who could not value a disruptive innovation at the time and capability state of its emergence and thus actively dissuaded the firms from developing it.

Taking customer focus with a grain of salt, treating it as only a subset of one's corporate strategy rather than the sole driving factor. This means looking beyond current-state customer focus to predict what customers will be demanding some years in the future, even if they themselves discount the prediction. Pursuing new markets (thus new value networks) when they are still in a commercially inferior or unattractive state, simply because their potential to grow and intersect with established markets and value networks looks like a likely bet. This may involve buying stakes in the stock of smaller firms, acquiring them outright, or incubating small, financially distinct units within one's organization to compete against them.

Other caveats of customer focus are:

The extent to which what customers say they want does not match their purchasing decisions. Thus surveys of customers might claim that 70% of a restaurant's customers want healthier choices on the menu, but only 10% of them actually buy the new items once they are offered.5 This might be acceptable except for the extent to which those items are money-losing propositions for the business, bleeding red ink. A lesson from this type of situation is to be smarter about the true test validity of instruments like surveys. A corollary argument is

A Report on customers satisfaction and their behavior,2006,p.g-78 5

that "truly understanding customers sometimes means understanding them better than they understand themselves." Thus one could argue that the principle of customer focus, or being close to the customers, is not violated herejust expanded upon.

The extent to which customers are currently ignorant of what one might argue they should wantwhich is dicey because whether it can be acted upon affordably depends on whether or how soon the customers will learn, or be convinced, otherwise. IT hardware and software capabilities and automobile features are examples. Customers who in 1997 said that they would not place any value on internet browsing capability on a mobile phone, or 6% better fuel efficiency in their vehicle, might say something different today, because the value proposition of those opportunities has changed. (b)ORGANISATIONAL ORIENTATION In this sense, a firm's marketing department is often seen as of prime importance

within the functional level of an organization. Information from an organization's marketing department would be used to guide the actions of other departments within the firm. As an example, a marketing department could ascertain (via marketing research) that consumers desired a new type of product, or a new usage for an existing product. With this in mind, the marketing department would inform the R&D department to create a prototype of a product/service based on consumers' new desires. The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm's finance department would be consulted, with respect to securing appropriate funding for the development, production and promotion of the product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization.

(C)HERD BEHAVIOUR Herd behaviour in marketing is used to explain the dependencies of customers' mutual behaviour. The Economist reported a recent conference in Pune on the subject of the simulation of adaptive human behaviour. It shared mechanisms to increase impulse buying and get people "to buy more by playing on the herd instinct." The basic idea is that people will buy more of products that are seen to be popular, and several feedback mechanisms to get product popularity information to consumers are mentioned, including smart card technology and the use of Radio Frequency Identification Tag technology. A "swarm-moves" model was introduced by a Florida Institute of Technology researcher, which is appealing to supermarkets because it can "increase sales without the need to give people discounts." Other recent studies on the "power of social influence" include an "artificial music market in which some 19,000 people downloaded previously unknown songs"6)Japanese chain of convenience stores which orders its products based on "sales data from department stores and research companies;" a Massachusetts company exploiting knowledge of social networking to improve sales; and online retailers who are increasingly informing consumers about "which products are popular with like-minded consumers" (e.g., Amazon, eBay). (d)FURTHER ORIENTATION

An emerging area of study and practice concerns internal marketing, or how employees are trained and managed to deliver the brand in a way that positively impacts the acquisition and retention of customers, see also employer branding.

Diffusion of innovations research explores how and why people adopt new products, services, and ideas.

With consumers' eroding attention span and willingness to give time to advertising messages, marketers are turning to forms of permission marketing such as branded content, custom media and reality marketing.

BUSINESS PROFIT(Columbia University, New York);2OO9

Modern marketing is the management of four Ps Product, Price, Promotion and Place or distribution channel. In a sense the entire marketing process has a large content of communication or there is communication between the buyer and the seller. Advertisement is the business of people, for the people and by the people. Today, the word advertisement is a very common term known to us. We see it on television, in the sky, on the match box, in the newspapers, on the trash containers, in the magazines, one our mail, on the vehicles; we hear it on radio, in the stores. It is a part of our daily life and everyone is conscious of it. Yet we have failed to trace the exact meaning of the term advertisement. The term advertisement is derived from the original Latin word advertere which means to turn the attention. Every piece of advertising turns the attention of the listeners or the viewers or the onlookers towards a product or a service or an idea. Therefore, it can be said that anything that turns the attention to an article or a service or an idea might well be called as advertising. Advertising is the nonpersonal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media."7 Now let's take this statement apart and see what it means. (1)NON-PERSONAL There are two basic ways to sell anything: personally and nonpersonally. Personal selling requires the seller and the buyer to get together. There are advantages and disadvantages to this. The first advantage is time: the seller has time to discuss in detail everything about the product. The buyer has time to ask questions, get answers, examine evidence for or against purchase. A second advantage of personal selling is that the seller can see you. The person selling can see your face, see how the sales message is getting across. If your eyes shift away, you're obviously bored, and the seller can change approach. He can also see if you're hooked, see what features or benefits have your attention, and emphasize them to close the sale.

Bovee.S., Advertising and Marketing Mix,2003,p.g-45 8

Finally, the seller can easily locate potential buyers. If you enter a store, you probably have an interest in something that store sells. Street vendors and door-todoor sellers can simply shout at possibilities, like the Hyde Park (London) vendors who call out, "I say there, Guv'nor, can you use a set of these dishes?", or knock at the door and start their spiel with an attention grabber. From there on they fit their message to the individual customer, taking all the time a customer is willing to give them. Disadvantages do exist. Personal selling is, naturally enough, expensive, since it is labor-intensive and deals with only one buyer at a time. Just imagine trying to sell chewing gum or guitar picks one-on-one; it would cost a dollar a stick or pick. In addition, its advantage of time is also a disadvantage. Personal selling is time-consuming. Selling a stereo or a car can take days, and major computer and airplane sales can take years. Nonetheless, although personal selling results in more rejections than sales, and can be nerve-racking, frustrating and ego destroying for the salesperson, when the salesperson is good it is more directed and successful than advertising. From the above, it appears that personal selling is much better than advertising, which is nonpersonal. This is true. Advertising has none of the advantages of personal selling: there is very little time in which to present the sales message, there is no way to know just who the customer is or how he is responding to the message, the message cannot be changed in mid-course to suit the customer's reactions. Then why bother with advertising? Because its advantages exactly replace the disadvantages of personal selling, and can emulate some of the advantages. First let's look at the latter. First, advertising has, comparatively speaking, all the time in the world. Unlike personal selling, the sales message and its presentation does not have to be created on the spot with the customer watching. It can be created in as many ways as the writer can conceive, be rewritten, tested, modified, injected with every trick and appeal known to affect consumers.

Second, although advertisers may not see the individual customer, nor be able to modify the sales message according to that individual's reactions at the time, it does have research about customers. The research can identify potential customers, find what message elements might influence them, and figure out how best to get that message to them. Although the research is meaningless when applied to any particular individual, it is effective when applied to large groups of customers. Third, and perhaps of most importance, advertising can be far cheaper per potential customer than personal selling. Personal selling is extremely labor-intensive, dealing with one customer at a time. Advertising deals with hundreds, thousands, or millions of customers at a time, reducing the cost per customer to mere pennies8. In fact, advertising costs are determined in part using a formula to determine, not cost per potential customer, but cost per thousand potential customers. Thus, it appears that advertising is a good idea as a sales tool. For small ticket items, such as chewing gum and guitar picks, advertising is cost effective to do the entire selling job. For large ticket items, such as cars and computers, advertising can do a large part of the selling job, and personal selling is used to complete and close the sale. Advertising is nonpersonal, but effective.

(2) COMMUNICATION Communication means not only speech or pictures, but any way one person can pass information, ideas or feelings to another. Thus communication uses all of the senses: smell, touch, taste, sound and sight. Of the five, only two are really useful in advertising -- sound and sight. (a) SMELL Smell is an extremely strong form of communication. However, when it comes to advertising, it is not very useful. A smell can immediately evoke memories. Remember times when you've smelled something and what memories came to your mind. The smell could be a perfume or aftershave that reminds you of Sheila or
8

M.W.Delozier,The Marketing Communication Process ,p.g-67 10

George. It could be popcorn, newly mown grass, char-broiling steak, or roses. Any smell can conjure up a memory for you. However, that is smell's greatest problem for advertising. Although a smell can evoke a memory, everyone's memories are different. For example, the smell of hay in a cow barn always reminds me of my grandfather's farm in Indiana and the fun I had there as a child. To others, however, that same smell makes them think a cow had an accident in the living room, not at all the same response as mine. If an advertiser wanted to make me nostalgic about farms and grandparents, the smell would be perfect. To others the smell might evoke ideas of cow accidents or the pain of having to buck bales on a hot summer day, neither image of much use in making a product appealing.9 The point is, the effect of using smell in advertising cannot be controlled by the advertiser. Although many people smell the same things, what they associate with those smells varies with each person. Without some control, smell is a very weak form of communication for advertising. (b) TOUCH Touch has a limitation that makes it of little use to advertising -- the customer has to come in actual contact with the item to be touched. Thus the item must actually exist and be put in a medium that can carry it. This puts touch more in the realm of personal selling than advertising. It is possible to use touch for a limited number of products. For example, samples of cloth or paper can be bound into magazines. The potential customer can thus feel percale or the texture of corduroy, tell through touch the difference between slick magazine stock, embossing, Classic Laid or 100% rag paper. However, for the majority of products touch is useless for advertising.

Rustam S. Dabur, Advertising and salesman,2007.p.g-67 11

(c) TASTE Taste is probably the least useful communication channel available to advertising. Like touch, taste requires the potential customer to come in actual physical contact with the product. However, taste is even more limited than touch. There are few products other than food for which taste is a major selling point, and there is virtually no medium in which an ad can be placed that people are likely to lick; I'm sure few people are going to lick a magazine page or the TV screen, nor get much sense of what the product tastes like from them. It is possible to use direct mail, sending samples to homes, but that is an expensive way to advertise. Thus, taste is much more effective in personal selling, such as sampling foods in supermarkets or in door-to-door sales. The remaining two senses, sound and sight, are the most effective and easily used channels of communication available to advertising. For these reasons virtually all advertising relies on them. (d) SOUND Sound is extremely useful for advertising. It can be used in a variety of media, from radio and television to the new technology of binding micro-sound chips in magazines to present 20-second sales messages. It is also capable of presenting words and "theatre of the mind." 10 Words, the method by which humans communicate their ideas and feelings, are presented by sound, by speaking aloud. Through the use of words it is possible to deliver logical arguments, discuss pros and cons, and evoke emotions. More, through the use of sound it is possible to create what is called "the theatre of the mind." What this means is that sound can conjure in the listener's mind images and actions that don't necessarily exist. For example, if you want to create before the mind's eye the image of a party, you need merely use the sound effects of people talking and laughing, the tinkle of glasses and ice, perhaps music in the

10

Mohummed Amanutula ,Principle of Modern Marketing,2006,p.g-56 12

background. Even easier, tape record a party and play it back. To evoke images of a soft spring day the sounds of a breeze rustling leaves, the chirrup of insects, the soft call of birds is sufficient. The listener's mind will take those sounds, combine them, make sense of them, and create an image suited to their individual taste. For example, a beer commercial may play the sounds of a bar in the background, and the listener may imagine themselves in their own favorite bar, and perhaps ordering that brand of beer. Thus sound, in the forms of words and effects, are quite useful to the advertiser in affecting a listener. (e) SIGHT Sight is arguably the most useful of the communication channels available to the advertiser. Through sight it is possible to use both words and images effectively. Words do not have to be spoken to be understood. They can be printed, as well. Although it is difficult to put in written words the emotional impact possible in spoken words, with their inflections and subtle sound cues, nevertheless written words are unsurpassed for getting across and explaining complex ideas or arguments. There is an additional factor in sight that makes it excellent for advertising. The old clich, "A picture is worth a thousand words," is correct.11 Think how long it takes to describe something as opposed to showing a picture of it. No matter how many words you use, some details will be left out that are visible at a glance. Thus sight can quickly and concisely show a customer what the advertiser wants her to see, be it a product or how buying the product can benefit her. In addition, the mind does not have to consciously recognize what the eye sees for it to have an effect on the subconscious. An advertiser can put many inconspicuous details into a picture that will affect a customer on the subconscious level. For example, a drop of water on a rose petal may not consciously register ("I see there's a drop of water on this rose"), but will unconsciously leave an impression of freshness and delicacy. A small child looking upward into the camera, unsmiling
11

Synder K.c. Foundation of Advertising New Delhi,2005 13

and eyes wide, gives an impression of sadness and vulnerability, not shortness. The five forms of human communication can be used to send any message to potential customers. However, not all five are equal. Smell, touch and taste are of little use, but sound and sight are of great value and effectiveness. (3) INFORMATION Information is defined as knowledge, facts or news. However, you should bear in mind that one person's information is another person's scam, particularly when advertisers talk about their products. Information comes in many forms. It can be complete or incomplete. It can be biased or deceptive. Complete information is telling someone everything there is to know about something: what it is, what it looks like, how it works, what its benefits and drawbacks are. However, to provide complete information about anything is time consuming and difficult. For example, to tell all about a car would require its appearance, manufacture and manufacturer, what percentage of parts are made in which countries, cost of upkeep, mileage (city and highway), cost (basic and with any and all combination of options), sales and excise taxes per state, preparation costs, insurance costs per state and locale, ride characteristics (noise by db interior and exterior, ergs required for steering and braking, relative comfort of seats, length of reach required to use controls, degrees of lean when cornering), acceleration, braking distance at many different speeds, etc.. All of this would require a documentary, not a commercial. Complete information is impossible to provide in an ad. Thus, for advertising, information must of necessity be incomplete, not discussing everything there is to know about the subject. In advertising, what appears is everything the writer thinks the customer needs to know about the product in order to make a decision about the product. That information will generally be about how the product can benefit the customer. There is, of course, the concept of affirmative disclosure. This concept requires an advertiser to provide customers with any information that could materially affect their purchase decision. "Sometimes the consumer is provided not with information he wants but only with the information the seller wants him to have. Sellers, for instance, 14

are not inclined to advertise negative aspects their products even though those aspects may be of primary concern to the consumer, particularly if they involve considerations of health or safety . . . 12 The Federal Trade Commission deals with such omissions by demanding affirmative disclosure of such information, and backs up their demands with the force of law. Bias is being partial towards something, feeling that something is better or worse than other things. Biased information about a product is that which emphasizes what is good and ignores what is bad about it. In advertising this is not only normal, but necessary. Of course an advertiser is biased toward her own product and against the competition: selling her product is the way he makes money, and competition's sales reduces that income. Thus any advertising will use words and images that show how good product is and/or how poor competition's is. This is biased information, but recognized and accepted by industry, regulators and consumers -- it is called puffery, the legitimate exaggeration of advertising claims to overcome natural consumer skepticism. However, sometimes the biased information goes beyond legitimate puffery and slips into deception, the deliberate use of misleading words and images. In other words, deceptive information is lying to the customer about the qualities of a product. Such deception is illegal, and the FTC requires the advertiser to cease and desist and, in some instance, to do corrective advertising to repair any damage. (4)PAID FOR ". . . paid for . . . " is pretty straightforward. If an ad is created and placed in the media, the costs of creation and time or space in the media must be paid for. This is a major area in which advertising departs from public relations. PR seeks to place information about companies and/or products in the media without having to pay for the time or space. PR creates news releases and sends them to news media in hopes they will be run. Often PR departments produce events that
12

Levies D. john .The concept of advertising, p.g-34 15

will be covered by news media and thus receive space or time. There is no guarantee that the media will run any of the PR material. Advertising doesn't have that problem. If time or space is bought in the media, the ads (as long as they follow the guidelines set down for good taste, legal products and services, etc.) will appear. The drawback is that ads are clearly designed to extol the virtues of products and companies, and any ad is perceived by consumers as at least partly puffery. PR pieces are usually not so perceived. (5) PERSUASIVE "Persuasive" stands to reason as part of the definition of advertising. The basic purpose of advertising is to identify and differentiate one product from another in order to persuade the consumer to buy that product in preference to another. (6) PRODUCTS, SERVICES OR IDEAS Products, services or ideas are the things that advertisers want consumers to buy (in the case of ideas, "buy" means accept or agree with as well as lay out hard, cold cash). However, there is more involved in products or services than simply items for purchase. During the following discussion, "products" will mean products, services and ideas unless otherwise noted. A product is not merely its function. It is actually a bundle of values, what the product means to the consumer. That bundle may contain the product's function, but also the social, psychological, economic or whatever other values are important to the consumer. For example, let's look at a car. If the function of a car, transportation, is all that is important, then manufacturers would need only build motorized boxes on wheels, and consumers would be happy with them. Such is obviously not the case: the number of models and types of cars is huge, and if consumers didn't demand the variety it wouldn't exist. Consumers must find factors other than mere transportation just as, if not more important.

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Perhaps the value is social. The type of car a person drives is often indicative of that person's social status. A clunker shows a lower status than a Rolls Royce. A sports car shows that a person is (or wishes to be perceived as) more socially active and fun-loving than a person in a sedan or station wagon. The type of car can even indicate which social grouping a person wants to be considered a part of: in the 1980s Volvos and BMWs were the car for Yuppies. Perhaps the value is psychological. Some cars may make a person feel safer, or sexier, or give them self-esteem or enjoyment. Since the purpose of this book is to discuss psychological values and how to appeal to them, I'll go no further at this point. Perhaps the value is economic. Some cars may be cheaper to run, give better mileage, carry more people or cargo, cause less damage to the environment. The above four values, functional, social, psychological and economic, can stand alone. However, for most consumers, the values are bundled together in varying proportions. How closely a product approximates an individual's proportion of values will often determine whether he will buy that product or not. Companies, through research, try to determine what values consumers want in their products, and then advertise to show how their product satisfies the customers' bundle of values better than competitors' products. To do this, the company must differentiate their product from competitors. There are three basic differentiations: perceptible, imperceptible, and induced. (a) PERCEPTIBLE Perceptible differences are those that actually exist that make one product obviously different from others of the same kind. The difference may in color or size or shape or brand name or some other way. In any case, the consumer can easily see that this car or couch or camera is different from other cars or couches or cameras. Perceptible differences allow a person to make an instant identification of one product as opposed to another.

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(b) IMPERCEPTIBLE Imperceptible differences are those that actually exist between one product and others, but are not obvious. For example, there are imperceptible but profound differences between CP/M, MS-DOS and Apple and MacIntosh computers. You can't simply look at a computer and tell which it is; machines can and usually do look alike. And yet buying either precludes being able to use software designed for the other. The same applied to Beta and VHS format VCRs. Although both are designed to do the same thing, there are differences between them that are imperceptible on the surface but preclude using the same tapes in both. There are other differences besides the size of the cassette: the machines use totally different ways of recording and playing back tapes. Beta records and plays back diagonally across the tape, VHS records vertically. Such a difference may seem small, but it means that anything recorded on Beta cannot be played back on VHS, and vice versa. Also, Beta's system used more tape per instant and thus had an advantage in the amount of information per inch of tape, meaning a better sound and picture but less available time. However, VHS overcomes its deficit by improved electronics and better processing of what information it gets per inch of tape. In addition, VHS (read RCA) managed to corner the market on rental tapes of movies (a major use of VCRs) and VHS has virtually killed off Beta (read Sony). All the differences between Beta and VHS are imperceptible: they are also crucial. (c) INDUCED For many products, there is no actual substantive difference between one and another. For many brands of cigarettes, beer, cleansers and soaps, rice, over-thecounter health products, etc., etc., ad nauseam, there is essentially no difference between one brand and another. These products are called parity products. For these products, the only way to differentiate one from another is to induce that difference, to persuade people that there actually is some difference, and that difference is important to them.

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That there is no real difference between one brand of cigarette and another is beside the point. The point is, if you want the image you must use the product. Parity products have the greatest difficulty differentiating one from another. They must rely on creating a trivial or even nonexistent difference in the bundle of values their target audience might find important to their purchase decision. However, if and once that difference is firmly established in the target audience's perception, a company can often rely on habit, brand loyalty and/or cognitive dissonance to get repeat business. (7) IDENTIFIED SPONSORS Identified sponsors means whoever is putting out the ad tells the audience who they are. There are two reasons for this: first, it's a legal requirement, and second, it makes good sense. Legally, a sponsor must identify as the sponsor of an ad. This prevents the audience from getting a misleading idea about the ad or its contents. For example, many ads that appear in newspapers look like news articles: same typeface, appearance, use of columns, etc.. If the ad is not identified as such, the audience could perceive it as news about a product, rather than an attempt to persuade the audience to buy it. Case in point: what looks like a news article discusses a weight-loss plan. In journalistic style it talks about the safety, efficacy, and reasonable price of the product. A reasonable person might perceive the "article" as having been written by a reporter who had investigated weight-loss programs and decided to objectively discuss this particular one. Such a perception is misleading, and illegal. Since it is an ad, somewhere on it there must appear the word "advertisement" to ensure the audience does not think it is an objective reporting of news. Second, it makes good sense for a sponsor to identify in the ad. If the sponsor doesn't, it is possible for the audience to believe the ad is for a competitor's product, thus wasting all the time, creativity and money that went into making and placing the ad.

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(8) VARIOUS MEDIA The various media are the non-personal channels of communication that people have invented and used and continue to use. These include newspapers, magazines, radio, television, billboards, transit cards, sandwich boards, skywriting, posters, anything that aids communicating in a non-personal way ideas from one person or group to another person or group. They do not include people talking to each other: first, talking is personal and advertising is non-personal; and second, there is no way to use people talking to each other for advertising--word-of-mouth is not an advertising medium, since you can't control what is said. (The best you could do is start a rumor, which will undoubtedly distort the message in the telling, and is more the province of the PR department.) "Advertising is the nonpersonal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media."
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It is the power-packed process pertaining to

the dissemination of information concerning an idea, service or a product to impel an action in line with the intension of an advertiser. Advertising is salesmanship in print. It is the magnate that motivates the world of business. It is the main stay of human civilization and the corner-stone of culture. It is a tantalizing technique of popularizing a product. It is that magic force which turns an instinct into acquisition, a desire into demand and dream into reality by influencing the consumption, directing the production, diverting the distribution and affecting the very course of exchange. Sales-promotion represents marketing activities that stimulate the consumer purchasing and dealer effectiveness such as displays, shows and exhibitions, demonstrations and variety of non-recurring selling efforts. Though these activities appear to similar to those of advertising, the difference can be at least in the following respects. 1.Advertising aims at developing a favorable consumer attitude towards the product and moving the consumer to the point of purchase while, sales promotion starts funding by promoting a specific inducement. In other words, sales-promotion starts where advertising ends.
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Philip Kotler,Principles of Marketing,2009,p.g-12 20

2. Advertising may have long-term or short-term respective, while salespromotion always has short-term objective while immediate action or shortterm one. 3. The media of advertising are broadly classed as indoor, outdoor, direct and display, but sales-promotion has media like contests, premiums, prizes and display, but sales-promotion had media liked contests, premiums, prizes, sampling, special schemes and the like. 4. Though both are media communication, advertising is more pronounced in pre and post transaction phases. While sales-promotion is the transaction phase itself .That is, sales-promotion is closest to selling proper than advertising. 5. Since the impact of advertising is long-term and cumulative, it is both repetitive and frequent, while sales-promotion is not repetitive and frequent as the impact is short-term and non-cumulative.

(2) LIMITATION OF RESEARCH-

This research work is related to Advertising Technique of cocacola company in India.And its role and impact in Indian market. The research area is the whole Indian market and Ranchi District in Jharkhand.

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(3)COMPANY PROFILE

HISTORY OF COCACOLA The Early Days Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, who sold the syrup mixed with fountain water as a potion for mental and physical disorders. The formula changed hands three more times before Asa D. Candler added carbonation and by2003, Coca-Cola was the worlds largest manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with more than 400 widely recognized beverage brands in its portfolio. With the bubbles making the difference, Coca-Cola was registered as a trademark in 1887and by 1895, was being sold in every state and territory in the United States. In 1899, it franchised its bottling operations in the U.S., growing quickly to reach 370 franchisees by1910.10Headquartered in Atlanta with divisions and local operations in over 200 countries worldwide, Coca-Cola generated more than 70% of its income outside the United States .

COCACOLA IN INDIA Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveal its formula to the government and reduce its equity stake as required under the Foreign Coca-Cola India no. 1-00854Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Cokes acquisition of local popular Indian brands including Thums Up (the mosttrusted brand in India21), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also strong consumer preference.

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This combination of local and global brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes while also tapping into traditional domestic markets. Leading Indian brands joined the Company's international family of brands, including CocaCola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched the Kinley water brand and in 2001, Shock energy drink and the powdered concentrate Sunfill hit the market. From 1993 to 2009, Coca-Cola invested more than US$1 billion in India, making it one of the countrys top international investors.22By 2009, Coca-Cola India had won the prestigious Woodruf Cup from among 22 divisions of the Company based on three broad parameters of volume, profitability, and quality. Coca-Cola India achieved 39% volume growth in 2009 while the industry grew 23% nationally and the Company reached breakeven profitability in the region for the first time.23Encouraged by its 2008 performance, Coca-Cola India announced plans to double its capacity at an investment of $125 million(Rs. 750 crore) between September 2009 and March 2010 .Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven wholly-owned bottling operations supplemented by seventeen franchisee-owned bottling operations and a network of twenty-nine contract-packers to manufacture a range of products for the company. The complete manufacturing process had a documented quality control and assurance program including over 400 tests performed throughout the process .The complexity of the consumer soft drink market demanded a distribution process to support 700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay three wheelers, and trademarked tricycles and pushcarts that were used to navigate the narrowalley ways of the cities.25 In addition to its own employees, Coke indirectly created employment for another 125,000 Indians through its procurement, supply, and distribution networks.

THE INDIAN BEVERAGE MARKET Indias one billion people, growing middle class, and low per capita consumption of soft drinks made it a highly contested prize in the global CSD market in the early twenty-first century. Ten percent of the countrys population lived in urban areas or large cities and drank ten bottles of soda per year while the vast remainder lived in rural areas, villages, and small towns where annual per capita consumption was less than four bottles. Coke and Pepsi dominated the market and together had a 23

consolidated market share above 95%. While soft drinks were once considered products only for the affluent, by 2003 91% of sales were made to the lower, middle and upper middle classes. Soft drink sales in India grew 76%between 1998 and 2002, from 5,670 million bottles to over 10,000 million (See Exhibit 6) and were expected to grow at least 10% per year through 2012. In spite of this growth, annual per capita consumption was only 6 bottles versus 17 in Pakistan, 73 in Thailand, 173in the Philippines and 800 in the United States29With its large population and low consumption, the rural market represented a significant opportunity for penetration and a critical battleground for market dominance. In 2001,Coca-Cola recognized that to compete with traditional refreshments including lemon water,green coconut water, fruit juices, tea, and lassi, competitive pricing was essential. In response, Coke launched a smaller bottle priced at almost 50% of the traditional package.

Market share of Coca-cola and Pepsi and others.

5%

35% 65%

Coca-cola Pepsi Other

Source-cocacola annual report-2009 Latest Update Coca-Cola net revenue up 5%,July 2010 India sales jump 22%,July 2010 Net revenue of $8.26 billion July,2010

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Business in India Coca-Cola is a leading player in the Indian beverage market with a 65 per cent share in the carbonated soft drinks segment, 36 per cent share in fruit drinks segment and33 per cent share in the packaged water segment.

Coca Cola Business In India

Share%

60 50 40 30 20 10 0
Carbonated Fruit drinks Packaged Soft drinks Drinking Water

Drinks Segment
Source-cocacola annual report-2009 MARKETING OF COCACOLA IN INDIA The post-liberalization period in India saw the comeback of cola but Pepsi had already beaten Coca-Cola to the punch, creatively entering the market in the 1980s in advance of liberalization by way of a joint venture. As early as 1985, Pepsi tried to gain entry into India and finally succeeded with the Pepsi Foods Limited Project in 1988, as a JV of PepsiCo,Punjab government-owned Punjab Agro Industrial 25

Corporation (PAIC), and Voltas India Limited. Pepsi was marketed and sold as Lehar Pepsi until 1991 when the use of foreign brands was allowed under the new economic policy and Pepsi ultimately bought out its partners, becoming a fully-owned subsidiary and ending the JV relationship in 1994.30While the joint venture was only marginally successful in its own right, it allowed Pepsi to gain precious early experience with the Indian market and also served as an introduction of the Pepsi brand to the Indian consumer such that it was well-poised to reap the benefits when liberalization came. Though Coke benefited from Pepsi creating demand and developing the market, Pepsis head-start gave Coke a disadvantage in the mind of the consumer. Pepsis appeal focused on youth and when Coke entered India in 1993 and approached the market selling an American way of life, it failed to resonate as expected

Coca-Cola is one of the most persistent and well-loved brands in history. It is one of the longest surviving brands, and thus considered among the most successful companies ever. The reason in part of this, is their strong advertising and marketing. Coca-Cola has always relied in advertising to promote and market their brand, and this is why they are always on top of their game, after having been in the market for more than a century! Coca-Cola advertising has indeed greatly affected American pop culture, and even the whole world.

ANALYSIS OF MARKETING STRATEGY OF COCA COLA AND (COCA COLA & PEPSI) At the core of the beverage industry is the carbonated soft-drink category. Soft drink holds51% (majority of market share) of the total beverage market. Soft drink can be further divided into carbonated drinks (Coca-cola, Pepsi, Thumbs up, Diet coke, Diet Pepsi etc.)and non-carbonated drinks (Orange, Cloudy lime, Clear lime and Mango). The dominant players in soft drink market are Coca Cola and Pepsi, which own virtually all of the North American markets most widely distributed and bestknown brands.

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COCACOLA IN JHARKHAND AND BIHAR

When Coca- Cola re-entered the Indian market The Hindustan Coca-Cola Beverages Pvt. Ltd. of Patna, Bihar onlease for 20 years in 1997- 98 started its operation. The first product launched by Hindustan Coca-Cola Beverages Pvt. Ltd.of Patna was Coca-Cola and after that all the remaining products came in the Bihar market.The soft drink market in India is quite wide. The production of soft drink in Bihar was stated on27th with March 1967with installation of a Coca-Cola bottling plant in Jamshedpur (NOW IN JHARKHAND) under the auspicious guidance of late industrialist Mr.Dharma Chad Kumari which was named as Steel city Beverages Pvt. Ltd. The company controlled the lions share in the soft drink market for nearly 10 years. Parle also entered this field in Bihar with the installation of bottling unit in collaboration with Mr. Rajendra Poddar in the name of Orient Beverage Pvt. Ltd. In 1997 with the advent of Janta Party Government, it created trouble for Coca-Cola which led to withdraw its operation from India.After the withdraw of Coca-Cola from India the Parle monopolized the soft drink market in Bihar and took a lions share of the beverages product from the industry even after Mc. Dowell pure drinks and local drinks entered into the market.They would not complete with Parle. Once again with the liberalization of economy in 1991. Pepsi Food Ltd. Entered inthe India market. It shared its bottling of products in Bihar by Steel city Beverages Company on 24th March 1991 ownedby Kamani's collaboration with Birla Group which was once the bottling plant for Coca-Cola. After the re-entry of Coke in1993 the market scenario of Bihar also changed dramatically. Coca-Cola establishes its bottling plant in Jamshedpur(Now in Jharkhand) and Patna to counter its archrival Pepsi. A soft drink is a non-alcoholic beverage. It is artificially flavored and content no fruit juice or pulp. The invent of soft drink is really a classic example of today's marketing theory which says The real marketing spirit of marketing man lies behind the fact of identifying a need, a real need of consumer and providing him the product to fulfill his need.

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(4)OBJECTIVES OF THE STUDY The basic objectives of study are:1. To analyses the different advertising techniques of cocacola in Indian market 2.To throw a light on marketing promotion Activity specially Advertising to the related consumer goods. 3.To explain the different promotional strategy of cocacola. 4.To explain the importance of Advertising to the cocacola company. This include How Advertising is helpful in marketing of consumer goods and an attempt will also be made How advertising effect the rate of growth in sale of consumer goods.

(5)SCOPE OF THE STUDY:

The role of advertising is not only used in profit motive purpose, but it is also useful in non-profit motives. The study of advertising is useful for commercial purpose and non-commercial purpose both. Non-commercial advertising may be undertaken by organizations, such as, Government Departments concerned with health, social welfare and education as well as other non-profit organizations and associations. Non-commercial advertising is mostly akin to institutional advertising when Institutional objectives are non-commercial. Another expression commonly used in this context in public service advertising. Such advertising may be undertaken by public bodies, such as, Municipal Corporation. Thus, advertising is useful in profit motive organization and non-profit organization both.

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(6)PROFILE OF RESEARCH STUDY It is indeed not an easy task for a marketer to get his value proposition right the first time around when enters an international market and targets a new set of customers. Coca Cola too faced this test when it entered India. The two most difficult of marketing mix variables to mange were the product portfolio and its Promotion. Appealing to Indian palates meant modifying existing products and adding and subtracting form existing portfolio. Taking the product to the consumers and achieving last mile connectivity through channel partner networks also wasnt easy. This Research work was intended to plug the gap in the understanding of how a beverage major navigated the Indian markets successfully with a product portfolio and a built-up Advertising Strategy. The work was focused in mapping how Coca Cola executes its daily Advertising and also the mistakes it made with its product portfolio were rectified after hitting the Indian market. Research Methodology: The study is based on information and data obtained mainly from Published Reports, related standard books available in the different libraries. This research study is basically an empirical on primary data . Information will have to be collected for statistical tests. The important sources of primary data for the study will be personal discussions, interviews, opinion-poll of the beneficiaries, verification of official documents, files and other records of the company. This study was conducted using descriptive research using the survey method of collecting data and also by engaging in exploratory interview. Most information was from the internet and databases. They are the best options to get my research data because the information is easier to get and very clear information,

In Coke's main website (www.cocacola.com), it provides very clear information, such as Coke's history, background, corporate responsibility, brands, heritage, investors, press center and careers. The most important data is in the Coke's annual report which can be downloaded from its website. Besides, by using databases and google's search engine, it is easier to find the information .

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The sources of data are Primary data was collected from channel partners and customers in Ranchi cocacola city office at Kokar. Secondary data was collected from sales data of the company and websites The sampling method followed was Retail shops- it is simple random sampling for retail shops Customers- Non Probability convenient sampling for customers

Research Instruments used Structured questionnaire both open ended and close ended was used for surveys. Depth interview was conducted with some of the sales force, channel partners, and retailers. Method of data collection Personal and online

(7)HYPOTHESIS:
1. Products have life cycles and it need advertising. 2. An increase in Advertising leads to increase in the percentage of sale. 3. Advertising cannot be said to be an economic waste.

(8)REVIEW OF LITERATURE:
In the early days of the growth of advertisement, there was wide spread interest in primitive technology and its relation to other parts of culture. The interest of advertisement, however, shifted later to description and analysis of the internal aspects of life. Most of the big business families became interested in the study of values, social structure and other internal systems. 30

A number of research project have been undertaken by different organization at the instance of the present project to study different aspects of advertisement in India. From the perusal of the available literature on the advertisement especially the research and publications sponsored by different organizations, we find that till 2005, there is no research work on this project. Mr. Rustom. S. & Davar in his article Advertising and Salesmanship has mentioned about the restructuring on advertisement but they have given emphasis on the condition of customers, whereas Mrs. S. Sakthivel Rani has beautifully discussed in his idea in his article: Trends in Advertising. There are research studies that document the transition of multinational companies into transnational companies that are highly responsive to stake holders concerns. In the past most of the multinational companies were focussed on trying to penetrate global markets with standardized products by calling it a global offer. In addition they also tried to reap the benefits of economies of scale and experience curve effects. Theodore Levitt (1984) proposed to multinational companies that they continue offering standardized products with the help of marketing strategies and not to design and sell customized or localised products. C.K Prahalad and Kenneth Lieberthal (2003) in their article The end of corporate imperialism have felt that western multinational companies could have done better by understanding the distinctive environment of emerging countries like India and China. They argued that these firms have been imposing concepts, products, ideas developed for their home country in foreign markets. They charged that these multinational firms could have targeted a smaller segment of relatively affluent customers who are at par with western consumers in terms of purchasing power and lifestyle.

Researchers have also explored the various benefits of localization that accrue to a localized brand such as larger brand equity, customer satisfaction, and customer and employee commitment to the product or brand, or to the company. Its been opined that localization strategies are very much required for value creation/addition, and hence it is termed as value-based localization instead of cost-based localization (Lalit M. Johri and Phallapa Petison, 2007). One of best theories on such localisation lines has been the integrationres ponsiveness

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For a clear picture of research articles, we are mentioning here a panorama of such work: 1. Atkin, R.L.: Advertising and Store Patronage, Journal of Advertising Research, Vol.2, Dec., 1962. 2. Boardem Neil: The Concept of Marketing Mix in George Schwartz ed., Science in Marketing, New York, 1965. 3. Chauhan. S.K. and Sharma Mona: Impact of Mass-media on Marketing, Science Tech. Enterprise, Vol.10, 1997. 4. Edward Nash: Direct Marketing, Mc Graw Hill., Inc., USA, 1994. 5. Gurmeet Singh, Harish Gautam: Advertising Effectiveness A Comparative Study of Television and Wall, Indian Marketing Journal, New Delhi, 2003.

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