Project report On

ADVERTISEMENT EFFECTIVENESS
In the Partial Fulfill ent of the Ma!ter of "u!ine!! A# ini!tration Pro$ra %M"A& %'())*'()'&

Depart ent of Mana$e ent Stu#ie! Shrinathji In!titute of "io*Technolo$+ an# Mana$e ent ,pli O#en- Natha#.ara/

Supervised By Dhawal Bhatt

Submitted By: Rishabh Gorwa

DECLARATION

I, Rishabh Gorwa here by declare that this Final report is completely done by me and the project has not been submitted anywhere by anyone else for any purpose I declare that the study conducted durin! this project is valid and true to my "nowled!e

AC0NO12ED3MENT

I believe that no success is possible without teamwor" #any people have made valuable contribution in ma"in! this project a success I would li"e to than" my God, #y parents and the e%ecution of the project I owe the successful completion of this project !uide Dhawal Bhatt for their personal attention and e%pert !uidance provided to me durin! the e%ecution of the entire project, which enable me to complete this challen!in! assi!nment I sincerely e%press my !ratitude to Dr D&&'(I B)*RG*+ ,)-D, SI#., for !ratin! me the opportunity to be associate with such a hi!h repute )e always had been a !reat support (he cooperation, "nowled!e and insi!ht provided by him for the project have been enormous (his project would not have been possible without him the entire staff of SI#, $athdwara and my all friends for their support and cooperation e%tends to me durin!

TABLE OF CONTENTS

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Chapter*) INTROD,CTION
A#7erti!in$ Effecti7ene!!8
*dvertisin! objectives of all business are to ma"es profits and a merchandisin! concern can do that by increasin! its sales at remunerative prices (his is possible, if the product is widely polished to be audience the final consumers, channel members and industrial users and throu!h convincin! ar!uments it is persuaded to buy it 'ublicity ma"es a thin! or an idea "nown to people It is a !eneral term indicatin! efforts at mass appeal *s personal stimulation of demand for a product service or business unit by plantin! commercially si!nificant news about it in a published medium or obtainin! favorable presentation of it upon video television or sta!e that is not paid for by the sponsor -n the other hand, advertisin! denotes a specific attempt to populari5e a specific product or service at a certain cost It is a method of publicity It always intentional openly sponsored by the sponsor and involves certain cost and hence is paid for It is a common form of non6 personal communication about an or!ani5ation and or its products idea service etc that is transmitted to tar!et audiences throu!h a mass medium In common parlance the term publicity and advertisin! are used synonymously

1hat i! a#7erti!in$8
(he word advertisin! is derived from the 2atin word vi5, 7advertero7 7ad7 meanin! towards and 7verto7 meetin! towards and 7verto7 meanin! 7I turn7 literally specific thin!7 Simply stated advertisin! is the art 7says !reen 7 *dvertisin! is a !eneral term for and all forms of publicity, from the cry of the street boy sellin! newspapers to the most celebrate attention attracts device (he object always is to brin! to public notice

some articles or service, to create a demand to stimulate buyin! and in !eneral to brin! lo!ethel the man with somethin! to sell and the man who has means or desires to buy7 *dvertisin! has been defined by different e%perts Some of the 8uoted definition is: *merican mar"etin! association has defined advertisin! as 7any paid form of non personal presentation and promotion of ideas, !oods or services by an identified sponsor (he medium used are print broad cast and direct Stanton deserves that 7*dvertisin! consists of all the activities involved in presentin! to a !roup a non6 personal, oral or visual openly, sponsored messa!e re!ardin! a product, service, or idea (his messa!e called an advertisement is disseminated throu!h one or more media and is paid for by the identified sponsor *dvertisin! is any paid form of non 9 personal paid of presentation of ideas !oods or services by an identified sponsor *dvertisin! is a 7non6 personal paid messa!e of commercial si!nificance about a product, service or company made to a mar"et by an identified sponsor In developin! an advertisin! pro!ramme, one must always start by identifyin! the mar"et needs and buyer motives and must ma"e five major decisions commonly referred as :# ,mission, money messa!e, media and measurement. of advertisin! (he advertisin! industry, as a whole, has the poorest 8uality6assurance systems and turns out the most inconsistent product ,their ads and commercials. of any industry in the world (his mi!ht seem li"e an overly harsh assessment, but it is based on testin! thousands of ads over several decades In our e%perience, only about half of all commercials actually wor"; that is, have any positive effects on consumers< purchasin! behavior or brand choice #oreover, a small share of ads actually appear to have ne!ative effects on sales )ow could these assertions possibly be true= Don<t advertisin! a!encies want to produce !reat ads= Don<t clients want !reat advertisin!= 3es, yes, they do, but they face formidable barriers

/nli"e most of the business world, which is !overned by numerous feedbac" loops, the advertisin! industry receives little objective, reliable feedbac" on its advertisin! First, few ads and commercials are ever tested amon! consumers ,less than one percent, accordin! to some estimates. So, no one>not a!ency or client>"nows if the advertisin! is any !ood If no one "nows when a commercial is !ood or bad, or why, how can the ne%t commercial be any better= Second, once the advertisin! !oes on air, sales response ,a potential feedbac" loop. is a notoriously poor indicator of advertisin! effectiveness because there is always so much ?noise@ in sales data ,competitive activity, out6of6stoc"s, weather, economic trends, promotional influences, pricin! variation, etc . (hird, some of the feedbac" is confusin! and misleadin!: a!ency and client preferences and biases, the opinions of the client<s wife, feedbac" from dealers and franchisees, complaints from the lunatic frin!e, and so on

"a!ic Feature! of A#7erti!in$

-n the basis of various definitions it has certain basic features such as: A B C D : It is a mass non6personal communication It is a matter of record It persuades buyers to purchase the !oods advertised It is a mass paid communication (he communication media is diverse such as print ,newspapers and ma!a5ines. It is also called printed salesmanship because information is spread by means

E
it

of the written and printed wor" and pictures so that people may be induced to act upon

Function! of A#7erti!in$
For many firms advertisin! is the dominant element of the promotional mi% 9 particulars for those manufacturers who produce convenience !oods such as deter!ent, non 9 prescription dru!s, cosmetics, soft drin"s and !rocery products

*dvertisin! is also used e%tensively by maters of automobiles, home appliances, etc, to introduce new product and new product features its uses its attributes, pt availability etc *dvertisin! can also help to convince potential buyers that a firms product or service is superior to competitors product in ma"e in 8uality, in price etc it can create brand ima!e and reduce the li"elihood of brand switchin! even when competitors lower their prices or offer some attractive incentives *dvertisin! is particularly effective in certain other spheres too such as: A 1hen consumer awareness of products or service is at a minimum B 1hen sales are increasin! for all terms in an industry C 1hen a product is new and incorporates technolo!ical advance not stron! and D 1hen primary buyin! motive e%ists : It performance the followin! functions: i. ii. iii. iv. v. 'romotion of sales Introduction of new product awareness #ass production facilitation 0arry out research &ducation of people

T9PES OF ADVERTISIN3
Broadly spea"in!, advertisin! may be classified into two cate!ories vi5 , product and institutional advertisin!

a&

Pro#uct A#7erti!in$8*

(he main purpose of such advertisin! is to inform and stimulate the mar"et about the advertisers products of services and to sell these (hus type of advertisin! usually promote specific, trended products in such a manner as to ma"e the brands seam more desirable It is used by business !overnment or!ani5ation and private non6 business or!ani5ations to promote the uses features, ima!es and benefits of their services and products 'roduct advertisin! is sub6divided into direct action and indirect action advertisin!, Direct action product advertisin! wa!es the buyer to ta"e action at once, ice he see"s a 8uic" response to the advertisement which may be to order the product by mail, or mailin! a coupon, or he may promptly purchase in a retail store in response to prince reduction durin! clearance sale 'roduct advertisin! is sub6divided into direct F indirect action advertisin! F product advertisin! aims at informin! persons about what a products is what it does, how it is used and where it can be purchased -n the other hand selective advertisin! is made to meet the selective demand for a particular brand or type is product

:&

In!titutional A#7erti!in$ 8
It is desi!ned to create a proper attitude towards the sellers to build company

ima!e or !oodwill rather than to sell specific product or service Its purpose is to create a frame of mind and to implant feelin! favourable to the advertisers company Its assi!nment is to ma"e friends for the institution or or!ani5ation It is sub6divided into three cate!ories : patrona!e, public, relations and public service institutional advertisin! I In patrona!e institutional advertisin! the manufacturer tells his prospects and customer about himself his policies and lives personnel (he appeals to the patrona!e motivation of buyers If successful, he convince buyers that his operation entitles him to the money spent by them II 'ublic relations institutional advertisin! is used to create a favourable ima!e of the firm amon! employees, stoc"6holders or the !eneral public

III I+ +

'ublic service institutional advertisin! wa!es public support -ther (ypes : (he other types are as follows : i. ii. iii. iv. 0onsumer advertisin! 0omparative advertisin! Reminder advertisin! Reinforcement advertisin!

ADVERTISIN3 O";ECTIVES8*
(he lon! term objectives of advertisin! are broad and !eneral, and concern the contribution advertisin! should ma"e to the achievement of overall company objectives #ost companies re!ard advertisin! main objective as hat of provin! support to personal sellin! and other forms of promotion But advertisin! is a hi!hly versatile communications tools and may therefore by used for achievin! various short and lon! term objectives

A on$ the!e o:jecti7e! are the follo.in$ 8

A (o do the entire sellin! job ,as in mail order mar"etin!. B (o introduce a new product ,by buildin! brand awareness amon! potential buyers. C (o force middlemen to handle the product ,pull strate!y. D (o build brand preference Gby ma"in! it more difficult for middleman to sell substitutes. : (o remind users to buy the product ,retentive strate!y. E (o publici5e some chan!e in mar"etin! strate!y ,e ! , a price chan!e, a new model or an improvement in the product.

H (o provide rationali5ation ,i e Socially acceptable e%cuses. I (o combat or neutrali5e competitors advertisin! G (o improve the moral of dealers andJor sales people ,by showin! that the company is doin! its share of promotion. AK (o ac8uaint buyers and prospects with the new uses of the product ,to e%tend the '20.

The function! of a#7erti!e ent- an# that purpo!e it! ethic!a+ :e #i!cu!!ion :elo. 8
A It leads to cheaper prices 7$o advertiser could live in the hi!hly competitive arena of modern business if his methods of sellin! were more costly than those of his rivals 7 B It ac8uaints the public with the features of the !oods and advanta!es which buyers will enjoy C It increases demand for commodities and this results in increased production *dvertisin! : a 0reates and stimulates demand opens and e%pands the mar"ets; b 0reates !oodwill which loads to an increase in sales volume; c Reduces mar"etin! costs, particularly product sellin! costs d Satisfied consumer demands by placin! in the mar"et what he needs D It reduces distribution e%penses in as much as it plays the part of thousands of salesman at a home Information on a mass scale relieves the necessity of e%penditure on sales promotion staff, and 8uic"er and wider distribution leads to diminishin! of the distribution costs : It ensures the consumers better 8uality of !oods * !ood name is the breath of the life to an advertiser E By payin! the way for lar!e scale production and increased industriali5ation, advertisin! contributes its 8uota to the profit of the companies the prosperity of

the shareholder the uplifts of the wa!e earners and the solution of he unemployment problem H It raises the standard of livin! of the !eneral public by impellin! it to use to articles of modern types which may add to his material well bein! 7#odern advertisin! has made the lu%uries of yesterday the necessities of today I It is a positive creative force in business It ma"es two blades of !rass !row in the business world where one !rew before G It establishes the !oodwill of the concern for the test articles produced by it and in course of time they sell li"e not ca"es consumer search for satisfaction of their needs when they purchase !oods what they want from its beauty, superiority, economy, comfort, approval, popularity, power, safety, convenience, se%ual !ratification and so on (he manufactures therefore tries to improve this !oodwill and reputation by "nowin! the buyer behavior AK (o sum up it may be said that advertisin! aims at committin! the producers, educatin! the consumer, supplementin! the salesman convertin! the producer and the dealer to eliminate the competitor, but above all it is a lin" between the produce and the consumer

1<9 = 1<EN TO ADVERTISE

*dvertisin! as a tool to mar"etin! not only reaches those who buy , but also those whose opinions or authority is counted for e%ample a manufacturer of marble tiles and buildin! boards advertises not only to people who intend to build houses but also to architect and en!ineers 1hile the manufacturers of pharmaceuticals products advertise to doctors as well as to the !eneral public *t time it is necessary for a manufacturer or a concern to advertise thin!s which it does not sell but which when sold stimulates the sales of its own product (here are concerns li"e electric heaters, iron etc because the use of these increases the demand for their products *dvertisin! should be used only when it promises to brin! !ood result more economically and efficiently as compared to other means of sellin! (here are !oods

for which much time and efforts are re8uired in creatin! a demand by sendin! salesman to prospective buyers than by simply advertisin! them In the early days of the cash re!ister in *merica it was sold by specially trained salesman who called on the prospective users and had the difficult tas" of convincin! them that they could no lon!er carry on with the old methods, and that they ur!ently needed a cash re!ister In our country certain publishers have found it less costly to sell their boo"s by sendin! salesman from house to house amon! prospective buyers than to advertise them In these two e%amples the cost of creatin! demand would be too hi!h if attempted by advertisin! alone under such circumstances advertisin! is used to ma"e the salesman acceptable to the people they call upon to increase the confidence of the public in the house $aturals when there are !ood profits competitors will be attracted and they should be "ic"ed out as and when sufficient capital is available by advertisin! on a lar!e scale Immediate result may not justify the increased e%penditure but it will no doubt secure future sales

DESI3NIN3 ADVERTISIN3 CAMPAI3N 8

*n advertisin! is an or!ani5ed series of advertisin! messa!es It has been defined as 7a planned, co6ordinate series of promotional efforts built around a central theme and desi!ned to reach a specified !oals 7 In other words, it is an orderly planned effort consistin! of related but self 9 contained and independent advertisements (he campai!n may appear in one more media it has sin!le theme or "eynote idea and a sin!le objective or !oal (hus, 7a unified theme of content provides psycholo!ical continuity throu!hout the campai!n while visual and oral similarity provide physical continuity In short run, all campai!n want pre6determined psycholo!ical reaction in the lon! run, practically all campai!ns have sales !oal (he series of advertisements used in the campai!n must be inte!rated with the sales promotional efforts and with the activities of the sales force 0ampai!n vary in len!th some may run only for a few days, other for wee"s, yet other for a season or the entire year /sually a ran!e of C to E months includes many

campai!ns #any factors influences campai!n len!th such as competitors advertisin! media, policies, seasonal falls curves of the product involved, the si5e of the advertisin! funds, campai!n objectives and the nature of the advertisers mar"etin! pro!ramme

O";ECTIVES OF CAMPAI3N
(he advertisin! campai!n, especially those connected with the consumers aims at achievin! these objectives: i. ii. iii. iv. v. vi. vii. II (o announce a new product or improve product (o hold consumers patrona!e a!ainst intensified campai!n use (o inform consumers about a new product use (o teach consumers how to use product (o promote a contest or a premium offer (o establish a new trade re!ional, and (o help solve a coca re!ional problem

(he institutional advertisin! campai!n on the other hand, have these objectives i. ii. iii. iv. v. vi. (o create a corporate personality or ima!e (o build a company presti!e (o "eep the company name before the public (o emphasi5e company services and facilities (o enable company salesman to see top e%ecutive consistently when ma"in! sales calls, and (o increase friendliness and !oodwill towards the company

Developin! the campai!n pro!rammers (he advertisin! campai!ns are prepared by the advertisin! a!encies, which wor" an behalf of their clients who manufacture product or service enterprises, which have services to sell (he word campai!n is used because advertisin! a!encies approach their tas" with a sum Blanca of military fanfare

in which one fre8uently hears words li"e tar!et audience lo!istics, 5ero in and tactics and strate!y etc (he account e%ecutive co6ordinates the wor" in a campai!n (he creation of an advertisin! campai!n starts with an e%ploration of consumers habits and psycholo!y in relation to the product (his re8uires the services of statistical trained in survey techni8ues and of others trained in social psycholo!y Statisticians select samples for survey which are done by trained interviewers who visits individuals, included in the sample and as" 8uestion to find out about their taste and habits (his en8uiry often leads to a chan!e in a familiar product For instance bathin! soap may come in several new colours or ci!arette in a new pac"et or talcum powder in another si5e Such interviews are often 8uite essential to find out the appeal of advertisin! messa!e for a product that would be most effective with consumers David -!ilvy describes a consumers survey to find out the most meanin!ful benefit in which women are interested when they buy a face cream (he lar!est preference as !iven to 70leans deep into pores7 followed in order of importance by prevent dryness, 7is a complete beauty treatment, recommended by s"in doctors7 ma"es s"in loo" youn!erL contains estro!enic hormones, pasteuri5ed for purity, prevent s"in form a!in!, smooth our wrin"les o!ilvy concludes, form this votin! come one of )elena RubinsteinLs most successful face creams 1e christened it deep cleanser, thus, buildin! the winnin! form into name of the product *fter !ettin! the data the account e%ecutive puts to!ether the essential elements of his clients brief, interprets the research findin!s and draws up what he calls the 7advertisin! strate!y7

"arrier! to 3reat A#7erti!in$

*dvertisin! testin! could provide a reliable feedbac" loop and lead to much better advertisin!, but many obstacles stand in the way (he first !reat barrier to better advertisin! is self6delusion #ost of us believe, in our heart6of6hearts, that we "now

what !ood advertisin! is and that there is no need for any "ind of independent, objective evaluation *!encies and clients ali"e often thin" that they "now how to create and jud!e !ood advertisin! Besides, once a!encies and clients start to fall in love with the new creative, they 8uic"ly lose interest in any objective evaluation $o need for advertisin! testin! 0ase closed Stran!ely, after DK years of testin! advertisin!, we cannot tell you if a commercial is any !ood or not, just by viewin! it Sure, we have opinions, but they are almost always wron! In our e%perience, advertisin! a!encies and their clients are just as inept at jud!in! advertisin! as we are It seems that none of us is smart enou!h to see advertisin! throu!h the eyes of the tar!et audience, based purely on our own jud!ment * second barrier to better advertisin! is the belief that sales performance will tell if the advertisin! is wor"in! /nless the sales response to the advertisin! is immediate and overwhelmin!, it is almost impossible to use sales data to jud!e the effectiveness of the advertisin! So many variables are beyond our control, as noted, that it<s impossible to isolate the effects of media advertisin! alone #oreover, some advertisin! wor"s in a few wee"s, while other advertisin! mi!ht ta"e many months to show positive effects, and this delayed response can confound our efforts to read the sales data *lso, advertisin! often has short6term effects that sales data mi!ht reflect, and lon!6term ,years later. effects that most of us mi!ht easily overloo" in subse8uent sales data Because of these limitations, sales data tends to be confusin! and unreliable as an indicator of advertisin! effectiveness Sophisticated mar"etin! mi% modelin! is one way to measure these advertisin! effects on sales, but it often ta"es millions of dollars and years of effort, and re8uires the buildin! of pristine databases of sales information alon! with all of the mar"etin! input variables Few companies have the bud!et, the patience, the accurate databases, and the technical "nowled!e necessary to succeed at mar"etin! mi% modelin! &ven so, mar"etin! mi% modelin! does not help us evaluate the contribution of a sin!le commercial but rather the cumulative effects of many different commercials over a lon! period of time *lso, mar"etin! mi% modelin! does not tell us why the advertisin! wor"ed, or failed to wor" 1as it messa!e, or media wei!ht, or media mi% that made

the advertisin! effective= Generally, mar"etin! mi% modelin! cannot answer these types of 8uestions So, a!ain, sales data is of limited value when you ma"e critical decisions about your advertisin! * third barrier to better advertisin! is a pervasive tendency of many ,but not all. advertisin! a!encies to delay, undermine, and thwart efforts to objectively test their creative ?babies @ 1ho wants a report card on the 8uality of their wor"= It<s very threatenin! (he results can upset the creative fol"s (he results can upset clients (he a!ency can lose control *!encies can be 8uite creative in comin! up with reasons to avoid copy testin! Some of our favorites:

(here<s no time 1e have to be on air in five days, so we<ll just have to s"ip the testin! (hese ads are built on emotion and feelin!s, and you can<t measure such delicate, artful, subtleties 1e<ve already tested the ads with a focus !roup durin! the development process (hese are ima!e ads, and you can<t test ima!ery with standard advertisin! testin! techni8ues 1e have so much e8uity in this campai!n that it doesn<t matter what the testin! results are 1e can<t afford to chan!e 1e<re in favor of testin!, but let<s remove those 8uestions about purchase intent and persuasion from the 8uestionnaire 1e are in a new a!e, with new media and new messa!es, and none of the old copy testin! measures apply any more

(he fourth barrier to more effective advertisin! is the bi! creative e!o (he belief that only the 7creative<s7 in the a!ency can create advertisin!>and the conviction that creativity is their e%clusive domain>constitute a major barrier Great advertisin! tends to evolve over time, with lots of hard wor", fine6tunin!, and tin"erin!>based on objective feedbac" from tar!et consumers Bi! creative e!os tend to resist such evolutionary improvements 1e have seen !reat campai!ns abandoned because

a!encies would not accept minor twea"s to the advertisin! (o be fair, bi! e!os are not limited to advertisin! a!encies Bi! client e!os can also be a barrier to !ood advertisin! Research firm e!os are yet another problem Bi! e!os create barriers because emotion is drivin! advertisin! decision ma"in! instead of lo!ic, reason, and consumer feedbac" Bi! e!os lead to bad advertisin! * fifth barrier to better advertisin! is the widespread belief that one<s major competitors "now what they are doin! So, just copy the advertisin! approaches of the competition, and success will surely follow 1e recently had a client who was about to copy the advertisin! strate!y of a major competitor, but we were able to persuade the client to test all major competitive commercials as a precaution before blindly copyin! the competitor<s advertisin! approach (his competitor was the industry leader in mar"et share and profitability -ur testin! 8uic"ly revealed that this industry leader was the industry leader in spite of its bad advertisin! (he testin! also revealed that another competitor, in contrast, had !reat advertisin! $eedless to say, the client<s desire to copy the industry leader 8uic"ly vanished (he si%th barrier to better advertisin! is lac" of strate!y, or havin! a poor strate!y (he client is most often at fault here (he client has not done his homewor", has not thou!ht deeply about his brand and its future, and has not developed and tested strate!y alternatives (he client tells the a!ency to !o forth and create !reat advertisin!, without providin! any strate!y !uidelines (he a!ency is left to !uess and speculate about strate!y Great advertisin! is rarely created in a strate!y vacuum If the client cannot define a sound strate!y, the a!ency cannot create !reat advertisin! *!ain, the responsibility for strate!y falls s8uarely on the client * seventh barrier to better advertisin! is client ineptness Some clients< processes, policies, and people tend to discoura!e the creation of !reat advertisin! *rro!ance, ambi!uity, impatience, i!norance, ris" aversion, and inconsistency tend to be the hallmar"s of these ?a!ency "iller@ clients Bad clients rarely stimulate or tolerate !reat advertisin! (he ei!hth and last barrier to better advertisin! is poor copy testin! by research companies #any advertisin! testin! systems are limited to a few mar"ets ,and cannot

provide representative samples. Some systems are so e%pensive that the cost of testin! e%ceeds the value of the results Research companies have been !uilty of relyin! on one or two simplistic measures of advertisin! effectiveness, while completely i!norin! many other very important variables For instance, for several years research companies ar!ued publicly over which was more important, persuasion measures or recall measures= (he truth is that both are important, but of !reater import is the fact that neither of these measures alone, or in combination, measures advertisin! effectiveness (o jud!e the effectiveness of an ad, many different variables must be measured and considered simultaneously

Creatin$ "etter A#7erti!in$

Given all of these barriers to better advertisin!, how can client, a!ency, and research company wor" to!ether to create more effective advertisin!= )/ (he client must craft a sound strate!y for its brand, based on facts, not wishful thin"in! and self6delusion (he client must carefully define the role of advertisin! in the mar"etin! plan and set precise communication objectives for the advertisin! 1hat e%actly does the client want the advertisin! to convey, to accomplish= *!encies are too often as"ed to create advertisin! in an informational vacuum *!encies are not miracle wor"ers -nce strate!y and positionin! alternatives are identified and tested, the strate!y should be loc"ed downMand rarely chan!ed thereafter

'/ *s creative e%ecutions are developed a!ainst the strate!y, each e%ecution should be pretested amon! members of the tar!et audience ,pretestin! refers to testin! advertisin! before it is aired, andJor before final production 1hen the

term ?testin!@ is used in this article, it is a shorthand term for ?pretestin! @. (he !reater the number of e%ecutions pretested, the more li"ely it is that !reat advertisin! will emer!e (estin! the creative provides a reliable feedbac" loop that helps a!ency and client ali"e become smarter over time -nce a conceptual family of commercials is identified as the optimal campai!n of the future, then the campai!n should be loc"ed down 2on!6term continuity of advertisin! messa!e is essential to ma%imi5in! effectiveness

4/ /se the same pretestin! system consistently (here is no perfect advertisin! pretestin! system Some are better than others, but any system will help improve your advertisin! (he secret is to use one system over and over, so that everyone ,client, a!ency, and researchers. learns how to interpret the pretestin! results for the cate!ory and the specific brand

5/ If bud!et permits, test the advertisin! at an early sta!e in the creative process ,i e , the ?storyboard@ or ?animatic@ sta!e. and also test at the finished commercial sta!e &arly6sta!e testin! allows rou!h commercials to be twea"ed and fine6tuned before you spend the bi! dollars on final production &arly6sta!e testin! tends to be hi!hly predictive of finished commercial scores, but not always (estin! the finished commercials !ives you e%tra assurance that your advertisin! is ?on strate!y@ and wor"in!

6/ Build your own ?action standards@ over time *s you test every e%ecution, you will be!in to learn what wor"s and what doesn<t wor" (hin" of the pretestin! company<s norms as very crude, rou!h indicators to help you !et started with a testin! pro!ram But, as 8uic"ly as possible, develop your own norms for your cate!ory and your brand ,yes, all of the advertisin! effectiveness measures vary by product cate!ory and brand. 1hat you are searchin! for, lon!6term, are not norms, but action standards ,that is, the "nowled!e that certain advertisin! testin! scores will translate into actual sales increases.

>/ /se a mathematical model to derive an overall score for each e%ecution It doesn<t matter that an ad has !reat persuasion if it does not re!ister the brand name It doesn<t matter that an ad re!isters the brand name if no one will notice the commercial itself It doesn<t matter that an ad increases short6term purchase interest if it will dama!e the brand<s 8uality reputation over time So, all of the "ey variables must be put to!ether intelli!ently to come up with a composite or overall measure of advertisin! effectiveness

?/ /se the pretestin! results as a !uide, as an indicator, but do not become a slave to the mathematical model Read all of the open6ended 8uestions carefully #a"e sure you really understand the underlyin! reasons Base your decisions on this comprehensive assessment of the results, and leave yourself some wi!!le room $o model or system can anticipate every mar"etin! situation, or !ive a AKKN perfect solution every time Informed human jud!ment remains important

@/ 0lient and a!ency need to accept that ?continuous improvement@ of the advertisin! is an important !oal (his means that every e%ecution is tested and twea"ed based on scientific evidence from the tar!et audience 1e are not tal"in! about chan!in! the strate!y or chan!in! the campai!n, but ma"in! sure that every e%ecution is ?on strate!y@ and wor"in! as hard as possible A/ (he ultimate !oal of testin! is an advertisin! success formula that wor"s (hat is, the !oal of advertisin! creative development, and the !oal of advertisin! testin!, is to identify the elementsJideas essential to advertisin! effectiveness, and then to ma"e sure that those elementsJideas are consistently communicated by all advertisin! e%ecutions

The Po.er of A#7erti!in$

1e believe in the power of advertisin!, based on thousands of studies in our archives *dvertisin! has the power to persuade, the power to influence the mind and shape destiny It has the power to chan!e mar"ets and improve profit mar!ins *dvertisin! has short6term power ,conveyin! new information, buildin! awareness, enhancin! credibility, etc . and lon!6term power ,conveyin! brand ima!e, attachin! emotional values to the brand, buildin! positive reputation, etc . (he !reat power of advertisin! is seldom achieved in practice, but we can<t !ive up (he potential and the promise are too !reat (he companies that master the creative !uidance and the testin! systems to consistently develop and deploy !reat advertisin! will own the future and the fortunes that !o with it Great advertisin! is a cloa" of invincibility

STA3E IN ADVERTISIN3 CAMPAI3N

Several steps are re8uired to developed an advertisin! campai!n the number of sta!es and e%act order in which they are carried out may vary accordin! to an or!ani5ations resources, the nature of its product and the types of audiences to be reached The ajor !ta$e!B!tep are 8

A Identifyin! and analy5in! the advertisin! B Definin! advertisin! objects C 0reatin! the advertisin! platform D Determinin! the advertisin! appropriation : Selection media plan E 0reatin! the advertisin! messa!e H &valuatin! the effectiveness of advertisin! I -r!ani5in! of advertisin! campai!n

)/

I#entif+in$ = Anal+Cin$ the A#7erti!in$ tar$et 8

/nder this step it is to decided as to whom is the firm tryin! to reach with the messa!e (he advertisin! tar!et is the !roup of people towards which advertisements are aimed at four this purpose complete information about the mar"et tar!et i e the location and !eo!raphical location of the people, the distribution of a!e, income, se%, educational level, and consumer<s attitudes

Deter inin$ the a#7erti!in$ o:jecti7e!8 (he objectives of advertisement must be specifically and clearly defined in measurable terms such as 7to communicate specific 8ualities about a particulars product to !ain a certain de!ree of penetration in a definite audience of a !iven si5e durin! a !iven period of time7, increase sales by a certain percenta!e or increase the firm<s mar"et shares 7 (he !oals of advertisin! may be to: a 0reate a favorable company ima!e by ac8uaintin! the public with the services offered available to the employees and its achievements b 0reate consumers or distributor awareness by encoura!in! re8uests providin! information about the types of products sold; providin! information about the benefits to be !ained from use of the companyLs products or services; and indicatin! how product ,or services. can be used;

'/

Creatin$ the A#7erti!in$ platfor

*n advertisin! platform consists of the basic issues or sellin! points that an advertiser wishes to include in the advertisin! campai!n * sin!le advertisement in an advertisin! campai!n may contain one or more issues in the platform * motorcycle producers advertisin! platform should contain issues which are of importance to

consumers fillin! and such issues also be those which the competitive product do not posses

4/

Deter inin$ the A#7erti!in$ Appropriation8

(he advertisin! appropriation is the total amount of money which mar"eter allocates For advertisin! for a specific time period Determinin! the campai!n bud!et involves estimatin! now much it will cost to achieve the campai!ns objectives If the campai!n objectives are profit relatin! and stated 8uantitatively, then the amount of the campai!n bud!et is determined by estimatin! the proposed campai!ns effectiveness in attainin! them If campai!ns object is to build a particular type of company ima!e, then there is little basis for predictin! either the campai!ns effectiveness or determinin! the bud!et re8uired

5/

Selectin$ the Me#ia 8 #edia selection is an important since it costs time space and money various

factors influence this selection, the most fundamental bein! the nature of the tar!et mar"et se!ment, the type of the product and the cost involved (he distinctive characteristics of various media are also important (herefore mana!ement should focus its attention on media compatibility with advertisin! objective A i. #edia 'ress *dvertisin! or 'rint $ewspapers Form 0ity, Small town, Sundays, Daily, wee"ly, financial ii. #a!a5ines Fortni!htly, and 8uarterlies, &n!lish, annuals,

vernacular or re!ional lan!ua!es General or special, illustrated or otherwise, &n!lish, )indi, Re!ional

iii.

lan!ua!e (rade F (echnical Oournals, Industrial 0irculated all over the country and year boo"s, commercial, directories, amon! the industrialist and business telephone, Directories, references ma!nates

boo"s F annuals B Direct #ail 0irculars, brochures, printed material catalo!ues, boo"lets, leaflets, folders,

colanders, blotters, diaries F other

6/

Creatin$ the A#7erti!in$ Me!!a$e! 8 (his is an important sta!e of advertisin! campai!n (he contents of the

messa!e has to be very carefully drafted in the advertisement 0haracteristics of person in the advertisin! tar!et influence the messa!e content and form *n advertisers must use words, symbols and illustration that are meanin!ful, familiar and attractive to those persons (he type of media also influence the content and form of the messa!e

>/

E7aluatin$ the Effecti7ene!! of A#7erti!in$ 8

(he effectiveness of advertisin! is measured for a variety of reasons: I II III (o determine whether a campai!n accomplished its advertisin! objects (o evaluate the relative effectiveness of several advertisements to ascertain which copy, illustrations or layout is best (o determine the stren!ths and wea"nesses of various media and media plans In other words, measurin! advertisin! effectiveness is needed to determine whether proposed advertisement should be used and if they will be now they mi!ht be improved; and whether !oin! campai!n should be stopped, continued or chan!ed In accomplishin! these purposes, pretests and post test are conducted (he former tests before e%posin! tar!et consumers to advertisements and the letter after consumers

have been e%posed to advertisements and the letter after consumers have been e%posed to advertisements

Chapter ' REVIE1 OF 2ITERAT,RE

B)*R*( $ *$*$D
Harvard Business School Boston, MA 02163 banandPhbs.edu *dvertisin! e%penditures by television networ"s are substantial In AGG:, for e%ample, the three major networ"s spent appro%imately AEN of their revenues on tune6in advertisements,A more than twice as much as firms in other industries (he networ"s also ran" amon! the top ten firms in the economy in terms of dollars of advertisin!

e%penditures B (his raises an obvious 8uestion: are networ"s spendin! too much on advertisin!=C Indeed, one may suspect that networ"s underestimate their advertisin! costs, since these are mostly opportunity costs; conse8uently, advertisin! e%penditures mi!ht e%ceed the optimal amount *nswerin! this 8uestion re8uires an understandin! of the effects of tune6ins on individuals< viewin! choices, since advertisin! revenues are a function of show ratin!s, which are a!!re!ations of individual viewin! decisions In this study, we estimate these effects usin! a new and uni8ue micro6level panel dataset on the television viewin! decisions of a lar!e sample of individuals, matched with data on show tune6ins (he second 8uestion that we address in this paper is of more !eneral interest: what is the informational value of advertisin!= * spirited debate on whether advertisin! is QQinformative<< or QQpersuasive<< has !one on for some time D /nderstandin! the relative importance of informin! and persuadin! has both positive and normative implications )owever, distin!uishin! these effects empirically is difficult 1e base our solution to this identification problem on the followin! lo!ic: if advertisin! has information content, then the effects of tune6ins on viewin! decisions should differ across shows accordin! to individuals< prior information about each show For e%ample, individuals may possess very little information about the timin! and attributes of shows that are aired once>, specials. compared to shows that are aired fre8uently , regulars. : 1e estimate the differential effects of tune6ins on viewin! decisions for these two A QQ(une6in<< usually refers to an advertisement for a television show *dvertisements for (+ shows represent a cost for the networ"s, and other advertisements supply their revenues (he ads we focus on in this paper are of the first type B (he networ"s usually air AB minutes of commercials durin! each hour of pro!rammin! In AGG:, they used about B of these AB minutes on tune6ins for their shows Since advertisin! revenues represent almost all of the networ"s< revenues, and tune6ins represent most of their advertisement effort, we pro%y the share of revenues spent on advertisements as AEN 1e then estimate their spendin! on advertisin! in dollars, usin! these numbers and data on networ"s< revenues C Roberts and Samuelson ,AGII. use a different approach than ours to answer a similar 8uestion in the conte%t of the tobacco industry D &arly wor" on this can be traced to Galbraith ,AGEH. and Solow ,AGEH.; (irole ,AGIG, pp BIGR BGK. labels these as the QQpartial<< view versus the QQadverse<< view of advertisin! For models dealin! e%plicitly with the informational effects of advertisin!, see Butters ,AGHH. and Grossman and Shapiro ,AGID. : (his is similar to the oft6cited distinction between QQsearch<< !oods and QQe%perience<< !oods, althou!h not identical, since re!ular shows have features common to both types of !ood

'/ The Data!et!

1e use three datasets in this study (he first includes data on the viewin! choices of about AH,KKK individuals durin! one wee" in $ovember AGG: (he second describes the attributes of the shows offered to these individuals by the four leadin! networ"s durin! this wee" (he number of tune6ins for each show and the time of their airin! constitute the third data set $ielsen #edia Research maintains a sample of over :KKK households nationwide by installin! a $ielsen 'eople #eter ,$'#. for each television set in the household /sin! AGGK 0ensus data, the sample is desi!ned to reflect the demo!raphic composition of viewers nationwide (he sample is revised re!ularly, ensurin!, in particular, that no sin!le household remains in the sample for more than two years (he $'# uses a special remote control to record arrivals and departures of individual viewers, as well as the channel bein! watched on each television set *lthou!h the $'# is calibrated for measurements each minute, the data set available to $ielsen clients provides a record of whether or not each viewer tuned into each of the alternatives durin! each 8uarter hour (he raw dataset records whether or not an individual was watchin! television in each 8uarter hour, and if so, her choice of networ" *n individual who was watchin! television, but did not choose any networ", is coded as watchin! a nonnetwor" channel (his mi!ht be a cable channel, 'BS, or a local independent channel &ach 8uarter hour is defined as a time slot

;err+ 1/ Tho a!- Deci!ion Anal+!t

JerrThe advertising industry, as a whole, has the poorest quality-assurance systems and turns out the most inconsistent product (their ads and commercials) of any industry in the world. This might seem like an overly harsh assessment, but it is based on testing thousands of ads over several decades.
. Thomas, Decision Analyst

Barriers to Great Advertising

*dvertisin! testin! could provide a reliable feedbac" loop and lead to much better advertisin!, but many obstacles stand in the way The fir!t $reat :arrier to better advertisin! is self delusion #ost of us believe, in our heart6of6hearts, that we "now what !ood advertisin! is and that there is no need for any "ind of independent, objective &valuation *!encies and clients ali"e often thin" that they "now how to create and jud!e !ood advertisin! Besides, once a!encies and clients start to fall in love with the new creative, they 8uic"ly lose interest in any objective evaluation $o need for advertisin! testin! 0ase closed Stran!ely, after DK years of testin! advertisin!, we cannot tell you if a commercial is any !ood or not just by viewin! it

Sure, we have opinions, but they are almost always wron! In our e%perience, advertisin! a!encies and their clients are just as inept at jud!in! advertisin! as we are It seems that none of us is smart enou!h to see advertisin! throu!h the eyes of the tar!et audience, based purely on our own jud!ment A !econ# :arrier to better advertisin! is the belief that !ale! perfor ance .ill tell if the a#7erti!in$ i! .orDin$ /nless the sales response to the advertisin! is immediate and overwhelmin!, it is almost impossible to use sales data to jud!e the effectiveness of the advertisin! So many variables are beyond our control, as noted, that it<s impossible to isolate the effects of media advertisin! alone #oreover, some advertisin! wor"s in a few wee"s, while other advertisin! mi!ht ta"e many months to show positive effects, and this delayed response can confound our efforts to read the sales data *lso, advertisin! often has short6term effects that sales data mi!ht reflect, and lon!6term ,years later. effects that most of us mi!ht easily overloo" in subse8uent sales data Because of these limitations, sales data tend to be confusin! and unreliable as an indicator of advertisin! effectiveness A thir# :arrier to better advertisin! is a pervasive tendency of many ,but not all. advertisin! a!encies to delay,undermine, and thwart efforts to objectively test their creative ?babies @ 1ho wants a report card on the 8uality of their wor"= It<s very threatenin! (he results can upset the creative fol"s (he results can upset clients (he a!ency can lose control *!encies can be 8uite creative in comin! up with reasons to avoid copy testin! Some of our favorites: (here<s no time 1e have to be on air in five days, so we<ll just have to s"ip the testin! (hese ads are built on emotion and feelin!s, and you can<t measure such delicate, artful subtleties 1e<ve already tested the ads with a focus !roup durin! the development process (hese are ima!e ads, and you can<t test ima!ery with standard advertisin! testin! techni8ues 1e have so much e8uity in this campai!n that it doesn<t matter what the testin! results are 1e can<t afford to chan!e 1e<re in favor of testin!, but let<s remove those 8uestions about purchase intent and persuasion from the 8uestionnaire 1e are in a new a!e, with new media and new messa!es, and none of the old copy6testin! measures apply any more

The fourth :arrier to more effective advertisin! is the :i$ creati7e e$o (he belief that only the ?creatives@ in the a!ency can create advertisin!>and the conviction that creativity is their e%clusive domain>constitute a major barrier Great advertisin! tends to evolve over time, with lots of hard wor", fine6tunin!, and tin"erin!>based on objective feedbac" from tar!et consumers Bi! creative e!os tend to resist such

evolutionary improvements 1e have seen !reat campai!ns abandoned because a!encies would not accept minor twea"s to the advertisin! (o be fair, bi! e!os are not limited to advertisin! a!encies Bi! client e!os can also be a barrier to !ood advertisin! Research firm e!os are yet another problem Bi! e!os create barriers because emotion is drivin! advertisin! decision6ma"in!, instead of lo!ic, reason, and consumer feedbac" Bi! e!os lead to bad advertisin! A fifth :arrier to better advertisin! is the widespread belief that one<s ajor co petitor! Dno. .hat the+ are #oin$ So, just copy the advertisin! approaches of the competition,and success will surely follow 1e recently had a client who was about to copy the advertisin! strate!y of a major competitor, but we were able to persuade the client to test all major competitive commercials as a precaution before blindly copyin! the competitor<s advertisin! approach (his competitor was the industry leader in mar"et share and profitability -ur testin! 8uic"ly revealed that this industry leader was the industry leader in spite of its bad advertisin! (he testin! also revealed that another competitor, in contrast,had !reat advertisin! $eedless to say, the client<s desire to copy the industry leader 8uic"ly vanished (he si%th barrier to better advertisin! is lacD of !trate$+-or ha7in$ a poor !trate$+ (he client is most often at fault

Creating Better Advertising

Given all of these barriers to better advertisin!, how can client, a!ency, and research company wor" to!ether to create more effective advertisin!= )/ The client u!t craft a !oun# !trate$+ for it! :ran#- :a!e# on fact! , not wishful thin"in! and self6delusion (he client must carefully define the role of advertisin! in the mar"etin! plan and set precise communication objectivesfor the advertisin! 1hat e%actly does the client want the advertisin! to convey, to accomplish= *!encies are too often as"ed to create advertisin! in an informational vacuum *!encies are not miracle wor"ers -nce strate!y and positionin! alternatives are identified and tested, the strate!y should be loc"ed downMand rarely chan!ed thereafter 2. As creative executions are developed against the strategy, each execution should be pretested among members of the target audience ,pretestin! refers to testin! advertisin! before it is aired, andJor before final production 1hen the term ?testin!@ is used in this article, it is a shorthand term for ?pretestin! @. (he !reater the number of e%ecutions pretested, the more li"ely it is that !reat advertisin! will emer!e (estin! the creative provides a reliable feedbac" loop that helps a!ency and client ali"e become smarter over time -nce a conceptual family of commercials is identified as the optimal campai!n of the future, then the campai!n should be loc"ed down 2on!6 term continuity of advertisin! messa!e is essential to ma%imi5in! effectiveness 3. Use the same pretesting system consistently (here is no perfect advertisin! pretestin! system Some are betterthan others, but any system will help improve your advertisin! (he secret is to use one system over and over, so that everyone ,client,

a!ency, and researchers. learns how to interpret the pretestin! results for the cate!ory and the specific brand 4. If budget permits, test the advertising at an early stage in the creative process ,i e , the ?storyboard@ or ?animatic@ sta!e. and also test at the finished commercial Sta!e &arly6sta!e testin! allows rou!h commercials to be twea"ed and fine6tuned before you spend the bi! dollars on final production &arly sta!e testin! tends to be hi!hly predictive of finished commercial scores, but not always (estin! the finished commercials !ives you e%tra assurance that your advertisin! is ?on strate!y@ and wor"in! 5. uild your o!n "action standards# over time *s you test every e%ecution, you will be!in to learn what wor"s and what doesn<t wor" (hin" of the pretestin! company<s norms as very crude, rou!h indicators to help you !et started with a testin! pro!ram But, as 8uic"ly as possible

Chapter*4 RESEARC< MET<ODO2O39

MEANIN3 OF RESEARC<8*

Research is an art of scientific investi!ation Research is a common parlance refers to a search for "nowled!e Research means ?a careful investi!ation or in8uiry especially throu!h search for new facts in any branch of "nowled!e @ Some people consider research as a movement, a movement from the "nown to the un"nown It is actually a voya!e of discovery 1e all possess the vital instinct of in8uisitiveness for, when the un"nown confronts us, we wonder and our in8uisitiveness ma"es us probe and attain full and fuller understandin! of the un"nown (his in8uisitiveness is the mother of all the "nowled!e and the method, which man employs for obtainin! the "nowled!e of whatever the un"nown, can be termed as research

Accor#in$ to Cliffor# 1oo#+8 *

?Research comprises definin! and redefinin! problems, formulatin!, hypothesis or su!!ested solutions, collectin!, or!ani5in! and evaluatin! data, ma"in! deductions and reachin! conclusions and at last carefully testin! the conclusions to determine whether they fit the formulatin! hypothesis @ Research means the systematic method consistin! of enunciatin! the problem, formulatin! a hypothesis, collectin! the facts or data, analy5in! the facts and reachin! certain conclusions either in form of solutions towards the concerned problem or in certain !enerali5ation for some theoretical formulation

Meanin$ of Re!earch Metho#olo$+ *8

Research methodolo!y is a way to systematically solve the research problem It may be understood as a science of studyin! how research is done scientifically In it we study the various steps that are !enerally adopted by a research in studyin! his research problem alon! with the lo!ic behind them Research not only need to "now how to develop certain indices or test, how to calculate 28 the mean, the mode, the medium or the standard deviation or chi6s8uare, how to apply particular research techni8ues, but they also need to "now which of these method or techni8ues, are relevant and what would they mean and indicate and why

O:jecti7e! of Re!earch *8

(he main aim of research is to find out the truth which is hidden and which has not been discovered yet Some main objectives of research are as follows 6: A. EEplorator+ or for ulate re!earch !tu#ie! *F (o !ain familiarity with a phenomenon or to achieve new insi!ht into it, studies with their object in view are termed as e%ploratory or formulate research studies B. De!cripti7e re!earch !tu#ie! *F (o portray accurately the characteristics of a particular individual, situation or a !roup, studies with this object in view are "nown as descriptive research studies C. Dia$no!tic re!earch !tu#ie! *F (o determine the fre8uency with which somethin! occurs or with which it is associated with somethin! else, studies with object in view are "nown as dia!nostic research studies

4) <+pothe!i! te!tin$ re!earch !tu#ie! *F

(o test a hypothesis of casual relationship be Research wor"s involve a systematic process (here must be well6defined procedure for each and every research wor", which always need a set of methodolo!ies (he methodolo!y for any research wor" constitutes the selection of representative sample from the whole of the universe ,or population. and also, applyin! appropriate tools and techni8ues of research

ADVERTISIN3 EFFECTIVENESS RESEARC<8*

Briefin! notes for newspapers *dvertisin! &ffectiveness Study )/ "acD$roun# to thi! !tu#+

1orld6wide research into advertisin! effectiveness shows that newspapers are indeed an effective advertisin! medium, 'articularly when used in combination with other media But despite the evidence,

!lobal advertisers and a!encies need to be convinced to thin" newspapers (his was the result of the first sta!e of an ambitious new strate!y commissioned by 1*$, to

increase the newspaper Industry<s share of !lobal advertisin! revenues Sey reasons for launchin! this study are outlined below:6 Circulation Anal+!i! If we analy5e the !lobal advertisin! and circulation data over the past : years, it becomes obvious that newspaper public6shares cannot afford to be complacent In the last : years, the overall number of copies ,dailies F non dailies. has fallen by K HN from CB: : million to CBC C million (he daily mar"et has performed behind the total mar"et with decreases ofCN, whilst the non daily mar"et has performed well with increases of AH CN In BC out of the CG countries measured circulations have fallen

A#7erti!in$ Anal+!i! In terms of advertisin! revenue, Tenith #edia have estimated that worldwide advertisin! e%penditure was up IN in BKKK, to a value of UCCB billion (his !rowth is e%pected to continue over the ne%t few years, althou!h at a sli!htly slower rate 'redictions for advertisin! !rowth are as follows:6 *lthou!h at face value this appears to be optimistic, when we analy5e press share of advertisin! revenues, it indicates that we as publishers cannot afford to be complacent In AGGG, press share of advertisin! revenue stood at CE BN, a fall of B : percenta!e points on : years previously 2oo"in! ahead to BKKB, this is predicted to fall a!ain to a level of C: B In BE out of the CG countri e! anal+Ce#- !hare! of a#7erti!in$ re7enue ha7e continue# to fall !ince )AA6/

'/ Project Specification (he advertisin! effectiveness research study is desi!ned to offer publishers across the !lobe a standard template from which to wor", to enable valid case studies to be built up in local mar"ets, as to the benefits of newspaper advertisin! Due to the comple%ities and differences of local mar"ets, we feel that this template should be

used purely as a !uide, and should be customi5ed accordin! to local mar"et conditions In order to ensure the s statistical validity of the research, it is imperative that the research partners cover a complete 0ross section of both newspaper type and advertiser sector to ensure that the case studies are relevant to as wide an audience as possible &ach partner will obviously have in6depth local "nowled!e of both the media and advertiser structure, and therefore involvement and commitment is imperative from the outset

Metho#olo$+ )/ Re!earch De!i$n8 (he research desi!n is the blueprint for the fulfillment of objectives and answerin! 8uestions It is a master plan specifyin! the method and procedures for collectin! and analy5in! needed information o Descriptive Research is used in this study as the main aim is to describe characteristics of the phenomenon or a situation

Sale! of Coca Cola Col# #rinD! Coca Cola Col# #rinD! 0oca 0ola 1eeDl+ %in caret!& :BK Monthl+ %in caret!& AIDK 9earl+ %in caret!& BBDKK

Fanta (hums6up 2imca #aa5a (etra Sprite #aa5a

B:K C:K CIK IK HK ABK

AKCK AC:K ABAK CIK BIK EGK

ABGKK AI:KK AECKK EBKK :KKK AKKKK

%Pri ar+ #ata& There i! ore con!u ption of Coca Cola an# ha! ?(G arDet !hare in the 9a unana$ar cit+ an# Coca Cola i! ha7in$ aEi u con!u ption an# after that Thu p!*up an# after it 2i ca col# #rinD in the arDet an# all the pro#uct! ha! $oo# !ale :ut le!! than the!e/ "ran#! of Pep!i

Sale! of Pep!i Col# #rinD! Pep!i 1eeDl+ Col# #rinD! %in caret!& Pep!i 54( Mirin#a 2e on 4A( Mirin#a Oran$e '56 Pep!i So#a )'>

Monthl+ %in caret!& )?6( ))@( )((( 5?(

9earl+ %in caret!& ')>(( )65(( )4>(( >(((

Pep!i Apple

)'(

5((

6(((

%Pri ar+ Data& The con!u ption of Pep!i cola- after thi! !ale of Mirin#a 2e on i! there an# after it Mirin#a Oran$e i! there an# the arDet !hare i! le!! of Pep!i in co pari!on of Coca Cola/

RESPONDENTHS C2ASSIFICATION ACCORDIN3 TO A3E A$e %in +ear!& No/ of re!pon#ent! Percenta$e ))*'( '' 55 ')*5( '6 6( 5)*>( 4 > Total 6( )((

!ho.! that 55G of the re!pon#ent! are in the a$e $roup of ))*'(- 6(G are in the a$e $roup of ')*5( an# >G are in the a$e $roup of 5)*>(/

RESPONDENTHS C2ASSIFICATION ACCORDIN3 TO SEI SeE No/ of re!pon#ent! Percenta$e Male 4( >( Fe ale '( 5( Total 6( )(( !ho.! that >(G of the re!pon#ent! are ale! an# 5(G of the are fe ale!

RESPONDENTHS J,A2IFICATION Jualification Illiterate "elo. Matric Matric 3ra#uate Po!t $ra#uate Total

C2ASSIFICATION

ACCORDIN3

TO

ED,CATIONA2

No/ of re!pon#ent! * * 6 'A )> 6(

Percenta$e * * )( 6@ 4' )((

re7eal! that out of 6( re!pon#ent! 6 are re!t of the )> are po!t $ra#uate/

atriculate an# 'A are 3ra#uate an#

DRIN0IN3 OF CO2D DRIN0 Do +ou taDe col# #rinD! No/ of re!pon#ent! 9e! 6( No * Total 6(

Percenta$e )(( * )((

re7eal! that all the re!pon#ent! are #rinDin$ col# #rinD!/

FREJ,ENC9 OF TA0IN3 CO2D DRIN0S <O1 FREJ,ENT29 No/ of re!pon#ent! 9O, DRIN0 Once a #a+ )6 T.ice a #a+ ' More than t.ice ) Not re$ular #runDer 4' Total 6(

Percenta$e 4( 5 ' >5 )((

re7eal! that 4(G of the re!pon#ent! #rinD it once a #a+- 5G t.ice a #a+- 'G ore than t.ice an# 4'G #rinD it no re$ularl+/

PREFERENCE OF CO2D DRIN0 1hich col# #rinD +ou No/ of re!pon#ent! liDe o!t Coca cola )' Pep!i )' Fanta ) 2i ca ? Mirin#a ) Thu !*up )( Cana#a #r+ 5

Percenta$e '5 '5 ' )5 ' '( @

MaaCa De. Total

4 * 6(

> * )((

in#icate that out of 6( re!pon#ent! )' liDe Coca cola- )' liDe Pep!i- ? liDe 2i ca- ) liDe Fanta- ) liDe Mirin#a- )( liDe Thu !*up- 5 liDe Cana#a #r+ an# 4 liDe MaaCa/

F2AVO,RS OF CO2D DRIN0S Fla7our! No/ of re!pon#ent! Cola 4( 2e on ? Oran$e ? Man$o ' Other! 5 Total 6(

Percenta$e >( )5 )5 5 @ )((

!ho.! that out of >(G of the re!pon#ent! liDe the cola fla7our of col# #rinD- )5G liDe the 2e on fla7our an# !a e percenta$e of re!pon#ent! liDe the oran$e fla7our of col# #rinD/

,SERS OF ADVERTISEMENT EFFECTIVENESS T<E ,SE ST,D9 OF No/ of re!pon#ent! EFFECTIVENESS IS FOR 1<OMK For co pan+ 45 For e plo+ee! ) For cu!to er! )6 None of the!e * Total 6( Percenta$e

>@ ' 4( * )((

in#icate! that >@G of the re!pon#ent! are of the 7ie. that the !tu#+ of effecti7ene!! i! eant for co pan+ .hile 4(G !a+ that it i! eant for cu!to er!/

Chapter*5 ANA29SIS AND INTERPRETATION

FINDIN3S *fter !oin! throu!h all the project and the collected data, I found that:

IDN of the respondents said that (+ is the most effective media of advertisement EKN of the respondents said that they li"e the advertisement of cold drin"s because of its theme whereas, ADN said that they li"e celebrities in advertisement

Some CBN of the respondents said that< yeh dil maan!e more< is the most popular slo!an whereas BIN of the respondents said that Q yara da tashan< is the popular slo!an

#ajority of respondents are of the view that advertisement is very necessary for cold drin" #ajority of respondents sees the advertisement of the cold drin" they li"e most #ajority of the respondents li"e cola flavor of cold drin" &8ual number of respondents li"e the brand of 0oca 0ola and 'epsi

S,33ESTIONS 1e reached some su!!estions : *dvertisement should not be too e%pensive, because the advertisement leads and increase the pri5e of the product #edia should be selected accordin! to the choice of customers In rural areas media should be accordin! to the choice of the people (o !ive more attention in ma"in! the advertisement to ma"e it effective for the sale of cold drin" 'rice should be decreased so as to attract the consumers to use product more (o !ive attention on the wea" media of advertisement so that the consumers comes to "now about the product It should be attractive one so that people are attracted toward the advertisement 2IMITATIONS

(he project relied mainly on the primary data 0onsumer !ive very unclear picture 1e have a limited time (he study is based on limited sample It be!in my first attempt to underta"e such a study, thus the ine%perience is also a obstacle to accomplish the project in a proper way It was also difficult to !et proper information from the people because they were indul!in! in some other activities

MEAS,RIN3 ADVERTISIN3 EFFECTIVENESSL* 1<9 MEAS,RE IT

*void costly mista"es &valuate alternative strate!ies Increase the efficiency of *dvertisin!

COMMON REASONS FOR NOT MEAS,RIN3 IT

0ost of doin! research -bjections

TESTIN3 PROCESS
Rou!h *rt, 0opy, and 0ommercial (estin! Results are hi!hly correlated with those done on finished ads

Prete!tin$ Fini!he# A#!

'ortfolio tests ,print. Readability tests ,print. Dummy advertisin! vehicles ,print. (heater tests ,broadcast. -n6air tests 9 sin!le source ad research 'hysiolo!ical 9 pupillometrics, &SG, eye trac"in!, brain wave research

POST*TESTIN3 OF PRINT ADS

In8uiry tests 9 measure ad effectiveness on the basis of in8uiries !enerated Recall (ests Reco!nition (ests

POST*TESTIN3
Reco!nition tests 9 Starch $oted: N of readers of an issue who remembered seein! the ad in the issue *ssociated: N of readers who saw part of the ad that clearly indicates the brand or advertiser Read #ost: N of readers who read :KN or more of the material in the ad $oted: DGN *ssociated: CDN Read #ost: AG

POST*TESTS OF "ROADCAST COMMERCIA2S

*ttentiveness 9 how en!a!ed you are in a pro!ram

I*G Research with GKK,KKK panelists on the internet #easure Impact and not just &%posure )i!hest show attentiveness scores: ?Scrubs@, ?Desperate (rac"in! studies #easure the effect of advertisin! on awareness, recall, interest, and attitudes toward the ad, brand, and purchase intention Sin!le source trac"in! studies (rac"in! behavior of consumers from the (+ set to the supermar"et chec"out counter Behavior Scannin!

Rich Me#ia A#7erti!in$

1eb display advertisin! with video, audio, animation, interactive features, !ames and more ,e ! Flash, Dart #otif. Desi!ned to entertain, en!a!e, educate, and encoura!e sales online http:JJwww doubleclic" com

Succe!! Metric! of Rich Me#ia

*udience en!a!ement Interaction rate N of audience that en!a!es with the ad #ouse6over, involvement with content Interaction time (ime users spend en!a!in! with the ad ,e ! !ames. *vera!e video view timeJDisplay time +ideo pauses, rewinds

0ommon Brand &ffectiveness

Co

on :ran# effecti7ene!! Metri!

-nline ad awareness 9 ad recall /naided or aided brand awareness Brand favorability #essa!e association 'urchase Intent /sers complete a survey ,&%perimental Desi!n.

"e!t Practice!
Brand *wareness 2o!o should be prominent in ad and animation Be careful of ?annoyance factor@ #essa!e *ssociation S I S S ,Seep it Simple, Stupid. Interactivity

Online Vi#eo
#ore than recycled (+ spots Inte!rate video into creative concepts ,demo a product.

A#7er$a e!
#a"e a !ood !ame (ar!et women, but with different !ame types ,8ui55es and pu55les vs shooter !ames and racin!. '*0( 9 'ositionin! *dvertisin! 0opy (estin! 'rinciples developed by the lar!est ad a!encies for conductin! appropriate effectiveness studies &stablish communications objectives

/se a consumer response model /se both pre and posttests /se multiple measures

Chapter*6 Su ar+-Conclu!ion = Reco en#ation

CONC2,SIONS = RECOMMENDATIONS
(he advertisin! bud!et increased considerably from BKKE 9 up CHN, with most of the

additional spendin! bein! in the 0hica!o mar"et and the inclusion of 2ouisville (hou!h spendin! in 0hica!o increased, awareness actually decreased (his is unusual as increased spendin! traditionally leads to increased awareness )owever, S#*RI has developed benchmar"s to determine the level of awareness destinations can anticipate based on spendin! and population of the tar!et mar"et /sin! this calculation, D:N awareness in 0hica!o is what would be anticipated (he :BN recorded in BKKE was unusually hi!h (hou!h over B E million trips were ta"en to the state by households in the seven tar!et mar"ets, nearly HAC,KKK of those are a result of Indiana<s paid mar"etin! efforts -ver AKK,KKK additional trips are attributable to public relations and direct mar"etin! (he economic impact of the Indiana -ffice of (ourism<s paid advertisin! is up over VAD B million in the state<s tar!et mar"ets )owever, increased spendin! actually reduced the return on investment, resultin! in an R-I of VDAA for every VA the state spends in advertisin! *nd thou!h it declined, the R-I remains one of the hi!hest for any state tourism or!ani5ation with which S#*RI wor"s -ther states with re!ional mar"etin! efforts re!ularly see an R-I of well under VAKK -verall awareness decreased sli!htly with the drop attributable to fewer consumers aware of print elements of the campai!n For its first year in use, BAN awareness of the online advertisin! is 8uite impressive awareness of online ads under A:N (he cost to create an aware household rose sli!htly to VK BG; this is well below the national avera!e S#*RI has found of VK GB (he Restart 3our &n!ines campai!n is havin! a positive impact on the state<s ima!e, far Destination mar"etin! or!ani5ations often see

more than the predecessor campai!n, &njoy Indiana (hose who were aware of the current campai!n rated the state far more favorable than those who were aware of the &njoy Indiana campai!n in its final year &specially encoura!in! is the impact it is havin! on attributes considered to be travel motivators such as fun, elco!ing and refreshing Future creative elements of the campai!n should hi!hli!ht other attributes that are hi!hly motivatin! 9 full of places to discover, beautiful and rela%in! Because the economic impact of this report is based on the level of incremental travel 9 that is the difference in the rate of travel between aware and unaware consumers 9 it is encoura!in! that the overall increment increased to BBN (he campai!n had the most impact in the Indianapolis mar"et, followed by 0hica!o Because a hi!her percenta!e of unaware consumers in the Grand Rapids mar"et visited Indiana than aware, there is no incremental travel 9 and therefore economic impact 9 for that mar"et 0ompared to other #idwestern trips, Indiana receives a hi!her percenta!e of daytrips )owever, CIN of all visitors are stayin! overni!ht in paid accommodations Indiana trips more often include children, which accounts for a hi!her percenta!e visitin! 5oos and children6oriented attractions (he bi!!est difference in Indiana trips is the number of Strate!ic #ar"etin! F Research, Inc BC consumers who prefer !amblin! (his position uni8ue to the mar"etplace should be monitored as surroundin! states e%plore implementin! state6sanctioned !amin! *s the state loo"s to ma"e decisions about future media and mar"ets, S#*RI recommends continued distribution amon! the e%istin! mediums with a reallocation of mar"ets (hou!h Grand Rapids had the lowest R-I in BKKE, it was recommended to remain in the mar"et in order to establish the state in the consideration set )owever, !iven the rate of travel in BKKH by unaware consumers, it certainly appears Indiana is part of that set already *nd while it was 0incinnati that had the lowest R-I in BKKH, the mar"et with the lowest economic impact was 0hampai!n Because this mar"et is so

small, it is difficult to have a positive impact In loo"in! for new mar"ets to enter, S#*RI recommends the Indiana -ffice of (ourism Development consider St 2ouis (his is a mar"et in which the Indianapolis 0onvention and +isitors *ssociation is already spendin! dollars, and the population of the mar"et would li"ely result in more impact than spendin! in two smaller mar"ets such as Grand Rapids and 0hampai!n

CONC2,SION
In last you conclude that majority of the respondents said that (+ is the most effective media for advertisement of cold drin"s and the celebrities and the slo!ans in the advertisement effect the consumers Given the e%treme competitive nature of the 0SD industry, the slow !rowin! mar"et si5e and the shrin"in! mar!ins, a firm that is !oin! to be successful and !enerate aboveavera!e returns must have a sound and coherent strate!y In order for 'epsi and 0o"e to protect their positions, they must be wary of private label infiltration (he bi!!est threat here is 1al6#art<s Sam<s 0hoice 0SD Given the lar!e amount of 'epsi and 0o"e that is currently sold at 1al6#art, the conse8uences could be hu!e if the private label becomes accepted, and even preferred, by the consumer 'epsi should also focus on !ainin! a pricin! advanta!e -ne way this can be done by offerin! Qreverse< 8uantity discounts on new pac"a!in! ,actually reducin! the si5e of the offerin! and increasin! the effective per6 unit price. *nother strate!y would be to offer bundled products to convenience stores and restaur

"I"I2O3RAP<9
"ooD!*
(ellis, G O and D 2 1eiss 6 ;ournal of A#7erti!in$ -lney, ( , # )olbroo", and R Batra 6 ;ournal of Con!u er Re!earch #il!rom, ' and O Roberts 6 ;ournal of Political Econo + ;ournal of A#7erti!in$ Re!earch EMuili:riu Di!tri:ution! of Sale! an# A#7erti!in$ Price! ;ournal of MarDetin$ Re!earch

Artical!*
From newspapers F business ma!a5ines

1e:!ite!*
jthomasPdecision http:JJwww doubleclic" com analyst com

ANNEI,RE
NiDeN! ;u!t Do It A#7erti!in$ Ca pai$n *ccordin! to $i"e company lore, one of the most famous and easily reco!ni5ed slo!ans in advertisin! history was coined at a AGII meetin! of $i"e<s ad a!ency 1ieden and Sennedy and a !roup of $i"e employees Dan 1eiden, spea"in! admirin!ly of $i"e<s can6do attitude, reportedly said, ?3ou $i"e !uys, you just do it @ (he rest, as they say, is ,advertisin!. history *fter stumblin! badly a!ainst archrival Reebo" in the AGIKs, $i"e rose about as hi!h and fast in the QGKs as any company can It too" on a new reli!ion of brand consciousness and bro"e advertisin! sound barriers with its indelible Swoosh, ?Oust Do It@ slo!an and deified sports fi!ures $i"e mana!ed the deftest of mar"etin! tric"s: to be both anti6 establishment and mass mar"et, to the tune of VG B billion dollars in sales in AGGH >Oolie Soloman ?1hen $i"e Goes 0old@ $ewswee", #arch CK, AGGI (he $i"e brand has become so stron! as to place it in the rarified air of recession6proof consumer branded !iants, in the company of 0oca6 0ola, Gillette and 'roctor F Gamble Brand mana!ement is one of $i"e<s many stren!ths 0onsumers are willin! to pay more for brands that they jud!e to be superior in 8uality, style and reliability * stron! brand allows its owner to e%pand mar"et share, command hi!her prices and !enerate more revenue than its competitors 1ith its ?Oust Do It@ campai!n and stron! product, $i"e was able to increase its share of the domestic sport6shoe business from AI percent to DC percent, from VIHH million in worldwide sales to VG B billion in the ten years between AGII and AGGI $i"e spent VCKK million on overseas advertisin! alone; most of it centered around the ?Oust Do It@ campai!n (he success of the campai!n is that much more remar"able when one considers that an estimated IK percent of the snea"ers sold in the / S are never used for the activities for which they have been desi!ned $i"e<s mar"etin! tactics in the QIKs, and in particular its campai!n a!ainst Reebo", !ambled on the idea that the public would accept snea"ers as fashion statements $i"e later cashed in on the jo!!in!Jfitness cra5e of the mid AGIKs, durin! which its ?Oust Do It@ campai!n e%panded to attract the female and teena!e consumer, in addition to the stalwart AI 9 DK6year6old male consumer ,$i"e was losin! !round to

Reebo" durin! this time, than"s to the e%plosion of R&SC:GGKAKI B aerobics . 'hil Sni!ht, the founder and 0&- of $i"e, suffused his company and ads with the idea of the intense, inwardly focused competitor (he ads rarely focused on the product itself, but on the person wearin! the product )eroes and hero worship abound on the $i"e campus in Beaverton, -re!on (he ?Oust Do It@ campai!n seemed to capture the corporate philosophy of !rit, determination and passion, but also infused it with somethin! hitherto un"nown in $i"e ads>humor $i"e had always been "nown for its ?detached, determined, unsentimental@ attitude ?In a word, W$i"e isR cool @(he new ads retained that attitude, but several of the ori!inal AB ?Oust Do It@ ads incorporate jo"es, e%plicit and implicit, to ma"e their point (he Bo Oac"son ad stands out Oac"son is seen wor"in! out at several different activities, jo"in! while on a bi"e machine, ?$ow when is that (our de France thin!=@ and after slam dun"in! a bas"etball contemplates ?*ir Bo @ ?I li"e the sound of that,@ he says (he ?Oust Do It@ campai!n received mi%ed ratin!s, ran!in! from ?an instant classic@ to ?sociopathic @ -ne critic went so far as to say the ads were ?an impatientborderin!6 on6contemptuous e%hortation to the masses 0ool is one thin! 'overty of warmth is another @ &ventually the campai!n was credited with embracin! not just resolve and purpose, but also the ?beauty, drama and moral uplift of sport>even, every now and then, fun @ 2inDin$ the Ca pai$n to Con!u er Nee#! (hrou!h its ?Oust Do It@ campai!n, $i"e was able to tap into the fitness cra5e of the AGIKs Reebo" was sweepin! the aerobics race and !ainin! hu!e mar"et share in the snea"er business $i"e responded to that by releasin! a tou!h, ta"e6noprisoners ad campai!n that practically shamed people into e%ercisin!, and more importantly, to e%ercisin! in $i"es (he ?Oust Do It@ campai!n was also effective in reassurin! consumers that the brand they pic"ed, $i"e, was a 8uality brand (his was most effectively portrayed by celebrity sports fi!ures such as Bo Oac"son, Oohn #c&nroe and later, #ichael Oordon If #ichael Oordan can play an entire $B* season in a pair of $i"es, certainly the avera!e wee"end warrior can trust the shoes< durability 0elebrity endorsements also appealed to the consumers< sense of belon!in! and ?hipness,@ as $i"e became a self6fulfillin! ima!e prophecy: if you want to be hip, wear $i"e; if you are hip, you are probably wearin! $i"e (he ?Oust Do It@ campai!n was able to turn sweaty, pain6ridden, time6consumin! e%ercise in $i"e snea"ers into somethin! se%y

and e%citin! 'erhaps most importantly, even those who were not in fact e%ercisin! in $i"es ,the vast majority. still wanted to own them By focusin! on the aura and ima!e conveyed by the fitness culture, $i"e was able to attract those who wanted the ima!e without incurrin! the pain

2inDin$ the Ca pai$n to Strate$+ $i"e was in a tou!h spot in the late AGHK<s It was bein! swamped by Reebo"<s 8uic" initiative on desi!nin! aerobics shoes and needed to respond dramatically and forcefully It could be ar!ued that the ?Oust Do It@ campai!n was not only about snea"ers but about $i"e<s own renaissance $o lon!er content to be the choice runnin! shoe of a few thousand marathoners and e%ercise nuts, $i"e wanted to e%pand its operation to tar!et every *merican, re!ardless of a!e, !ender or physical6 fitness level ?Oust Do It@ succeeded in that it convinced *mericans that wearin! $i"es for every part of your life was smart ,the shoes are desi!ned for comfort. and hip ,everyone else is wearin! them, you too can belon! to this !roup . $i"e too" its own advice and ?Oust Did It@ by directly attac"in! Reebo" in the sport6shoe mar"et 1h+ 1a! the Ca pai$n Succe!!fulK (he timin! of this campai!n could not have been better *mericans were buyin! e%ercise e8uipment at a record pace in the mid AGIKs, and body worship was at an all time hi!h $i"e tapped into consumers< desire for a healthy lifestyle by pac"a!in! it into a pair of VIK snea"ers (he ads were often humorous, appealin! to the cynic in all of us, while implorin! consumers to ta"e char!e of their physical fitness (he ads made startin! an e%ercise re!ime seem li"e a necessity, and the way to start e%ercisin! was to buy $i"e merchandise #ore importantly, by ownin! $i"es you were instantly a member of a desirable !roup (he campai!n was easily identifiable ,to the point that $i"e eventually did not even bother to display the word ?$i"e@ in commercials>the swoosh was enou!h. and stayed true to its messa!e