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THE EFFECT OF ADVERTISMENT ON SUCCESS OF ORGANIZATION

WHAT IS THE EFFECT OF ADVERTISMENT ON SUCCESS OF


ORGANIZATION

Abstract:
The advertising activity has an important role in the introduction of a new product. We
tackle the problem of determining the advertising plan for preparing the product
introduction, having the objectives of maximizing the product image at the launch time,
minimizing the campaign length and minimizing the total advertising expenditure, within
a fixed time interval. After formulating the new product introduction problem, we study
and solve two special cases of it, namely the minimum time and the advertising cost
problems.

Key words:
Marketing,
Goodwill,
New product introduction,

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Introduction:
Previous researches about advertising made success business or organization this proposal
we use the search about car industries and used the theory of objective method or
quantitative method is used. The firm must plan carefully the different marketing actions
which it has to take to introduce a new product in the market. Such coordinated actions
must be performed before the sales start as well as after it. The firm communication has
an important role to play, as one can observe for instance in the car industry, where
awareness advertising campaign usually precedes the distribution of a new car model.
Here we formulate and discuss the problem of determining the advertising policy to
prepare the introduction of a new product into a market. We assume that the firm has two
objectives: to maximize the product image (goodwill) at the launch time, to minimize the
launch time, to minimize the total discounted advertising cost. The firm must determine
the launch (or market entry) time, at which the introduction of the product will begin, and
plan the launch advertising campaign on the interval. We formulation optimal control
problem in which the goodwill evolves depending on the firm advertising policy, as in the
so-called ‘‘capital stocks generated by advertising’’ models. On the other hand, we do not
take into account directly the sales, as they only begin after the launch time, when the
launch advertising policy stops. In fact, we assume that the launch advertising policy is a
first part of a more complex advertising process: a second part of it starts at time and
pursues a different sales dependent objective. We focus only on the first part of the
process that is restricted to the pre-launch interval up to time. We also use the method of
theory is objective.
Nerlove-Arrow’s one.

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THE EFFECT OF ADVERTISMENT ON SUCCESS OF ORGANIZATION

Primary objective:
The main objective to maximizing the goodwill at the launch time is motivated by the
firm taking into account the ‘‘communication effects of advertising’’ on the consumer
behavior. On the other hand, the effects of the advertising policy until the time on the
sales, which will occur later, depend on the goodwill value at Time: the greater the
goodwill value at the higher the following sale rate, no matter which advertising policy
will be chosen after.
Secondary objective:
The second objective of minimizing the launch time reflects the importance of reducing
the product time to market. Time plays a crucial role in the product introduction
problem, especially for the ‘‘fast cycle’’ industries products, or for those products which
are new both to the market and to the company, namely the ‘‘new product innovation’’
type, or the ‘‘new-to-the-world’’ type, as some competitor could launch a similar product
in advance. Yet, also for those types of products which are new only for the company,
delaying the introduction entails the risk of losing revenues, as customers may prefer to
buy a competitor’s product instead of waiting too much the announced one.

Purpose statement of study:


The main purpose of the advertising statement to introduced and promotes the business
and increase success full organization. When we start any business before start it we also
introduced it to our customers. It is the main need to introduce the customers. Before
starting any business we also introduced his business to the customers and end users.

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THE EFFECT OF ADVERTISMENT ON SUCCESS OF ORGANIZATION

Specific Aims:

• To know the effect of advertising to satisfy the customer.


• To explain the goodwill level of business or organization after influencing
advertisement aspect.
• To establish the basis for creating good organization performance through
advertisement.
• To know the overall communication effects of advertising’’ on the consumer
behavior.
• To develop the success organization by advertisement.

Significance of the Research:


The significance of advertisement influencing to success Organization.Can ultimately
decide the success or failure of an organization.
 This will add literature in existing literature.
 Through the findings of this research, customer can easily understand the
importance of advertisement in achieving success organizational.
 This study will help the policy makes and of advertisement to success
organizational.
 Advertisement will make goodwill to success organizational.
 This study will help to increase the knowledge.

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THE EFFECT OF ADVERTISMENT ON SUCCESS OF ORGANIZATION

Positioning against related research


Most consumer goods manufacturers spend a large share of their marketing budget on
advertising, especially on TV-advertisements, to build brand equity and to influence
customer preferences. Thus, it is not surprising that a substantial body of research has
investigated the impact of advertising on buying behavior, purchase intentions and brand
awareness among others. Our paper is closely related to the literature on advertising
competition. Papers, in this strand of literature, have modeled advertising competition in a
dynamic setting relying on differential game methods.
Most of these studies have limited or no empirical validation for the underlying model.
These methods are usually constrained by the number of competing firms the shape of the
response function and the type of general advertising behavior. Moreover, these models
do not consider equilibrium in periodic strategies where firms advertise for a few periods
and stop advertising for considerably long periods. There are the few kinds of advertising.
 TV advertising
 Radio advertising
 Online advertising
 Sign board advertising
 Flax/ paper advertising

Problem formulation:
Before introducing the model, let us briefly explain the grounds for our modeling choices.
Our main goal is to explain observed advertising patterns. In many consumer goods
industries, advertising budgets are not spent evenly across time, but they are concentrated
within certain periods. The data exhibits patterns where a relatively long period of high-
levels of advertising is also followed by a relatively long period of no advertising.

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THE EFFECT OF ADVERTISMENT ON SUCCESS OF ORGANIZATION

Literature Review

Literature flow diagram:

Introduction

Advertising
T.V

Radio

Online

News

Sine Bord

Brand
Good Will Brand Equity
Awareness

Organization
Success

Summary

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The Effect of Advertising on Product Entry and Quality:


It is difficult to determine how advertising will affect product entry in the car industries
market because the role of the car industries advertising is not known a priori. However,
critics contend that the car industries advertisements often emphasize the benefits of a
product while minimizing the information on side effects so that the product is perceived
to be safe and effective. The agency relationship between physicians and consumers also
complicates prescribing decisions, especially when the physician and patient perceive the
product’s value differently. Although informative advertising may drive patients to
physicians to request prescriptions, if these physicians are unwilling to prescribe the
requested product, then advertising would have no effect on use. A competing product’s
advertising may lead physicians to prefer it to other products if the competing product is
perceived to have better efficacy and fewer side effects. Therefore, when studying the
effect of advertising on market competition in the car industries market, advertising
activities that are targeted to physicians and consumers should be considered
simultaneously.
Only a few published papers have directly examined the effect of advertising on product
entry. All of these papers utilized sales and advertising audit data published by IMS
America, Ltd. But with different study samples, timeframes, and methods. Using data
from 51 new products introduced from 1968 to 1977, found that the car industries
advertising encouraged the entry of superior new products and may retard the entry of low
cost substitutes.
Two other papers focused on how advertising activities of brand products affected generic
entry but did not evaluate the effect on entry of other brand products in the same
therapeutic market. Compared the market activities of oral products for 29 therapeutic
markets between 1978 and 1983 and found that the number of generic entrants decreased
with the pioneer brand’s promotional outlays.
A similar research question was pursued again by using data from products that lost
patent protection from 1986 to 1991. The author used instrumental variables to correct the
possible endogeneity bias between advertising and entry, and found that advertising had
no significant effect on the number of generic entrants. Based on these findings, it appears
that advertising either encouraged or had no significant effect on new product entry.
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THE EFFECT OF ADVERTISMENT ON SUCCESS OF ORGANIZATION

In addition to the papers that examined direct effect of advertising on product entry,
several other studies suggested that favorable market conditions encourage product entry.
Using IMS data, found sales revenue had a significant and positive effect on generic
entry. Studied the vaccine market and found that policies that support reimbursement and
use of immunizations were associated with an increase in the number of vaccine clinical
trials studied the new car approved by the FDA and found that the number of new
approvals increased with potential market size.
With the exception of Loffler’s work, previous studies did not consider the effect of
advertising on the quality of new entries. With the exception of Finkelstein’s study
previous papers used the number of marketed products as the dependent variable, which
does not adequately represent the car industries firms’ research and development
activities.

The car development is a lengthy process and a risky business. On average, it took
3.8 years from synthesis to human testing, 8.6 years from human testing to regulatory
submission, and another 1.3 years for regulatory review before a product can be marketed
in the U.S. During this development process, many products fail to reach market. Before
committing to each stage of the car development, the car industries firms estimate the
expected cost of subsequent research, the likelihood of achieving market approval,
expected marketing expenses, and expected sales revenue after the product is launched.
This information allows profit-maximizing the car industries firms to estimate the net
present value of making additional investments and to decide if development should
continue.
In fact, the success rates of products progressing from development to market approval
range from only 19% to 30%. Termination happens for reasons of clinical efficacy, safety,
economics, or regulation. Because few products eventually gain market approval, we
analyze data on investigational products instead of marketed products. The former better
reflect firms’ product entry decisions.

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Product trial is a powerful source of product information for consumers because it leads to
the development of strong and confidently held brand beliefs and attitudes .Its power is
especially evident for experiential attributes (i.e., those for which product experience
provides direct information). Examples of experiential attributes include taste, weight, fit,
etc. No experiential attributes (i.e., those for which product experience provides little or
no direct evidence) include characteristics such as nutritional content and long-term
reliability. Kempf and Smith (1998) demonstrated that consumers process product trial
information pertaining to experiential and non experiential attributes differently. Market
Letts (2006) 17: 5–16 7 information source, to demonstrate processing differences.
According to Kempf and Smith, consumers engaging in a product trial may generate three
types of trial cognitions: (1) perceptions of the validity of the trial (the consumer’s
perceptions of whether the product trial offered a fair and valid test of the brand), (2)
subjective perceptions regarding the consumer’s own ability to judge the trial (perceived
expertise), and (3) evaluations of the overall diagnosticity of the trial (the perceived
usefulness of the product trial in evaluating the brand).
Moreover, Kempf and Smith contend that trial diagnosticity is a function of the level of
trial validity, perceived expertise, and the proportion of the salient product attributes that
are experiential (as compared to no experiential). All else being equal, a trial should be
relatively more diagnostic when a product’s salient attributes are mostly experiential and
relatively less diagnostic when a product’s salient attributes are primarily non
experiential. Trial should also be more diagnostic when perceived expertise and validity
are higher.
Corporate Advertising Pass-Through Onto The Brand 65
Kluwer Journal
@ats-ss11/data11/kluwer/journals/mark/v10n1art5 COMPOSED: 11/20/98 8:43 am.
PG.POS. 3 SESSION: 11 durable, waterproof, has extra support, fashionable, and stylish.
These product category attributes were used to design a brand ad which would contain the
retrieval cue manipulations.
Our brand name selection balanced two considerations. On the one hand, a brand for
which subjects had strong beliefs and attitudes, which are difficult to change (Crocker et

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al. 1984), would be unlikely to show pass-through. On the other hand, the moderating
hypothesis assumes subjects have some pre-existing brand knowledge. The “New
Balance” brand name met our design needs. Pretests showed that, compared with other
tested hiking shoe brands, like Nike and Timberland, subjects were moderately familiar
with New Balance, had neutral attitudes toward it, and did not know the corporate
manufacturer.
Subjects associated the brand with good quality, design and comfort, which were used as
dependent measures.
Finally, because we wanted subjects’ corporate knowledge to stem exclusively from
exposure to the corporate ad, we evaluated six fictitious company names. All had some a
priori reasonable link with the tested product category, but no expected recognition as a
corporate name. Therefore, we chose “Shenandoah” as the corporate name. Detailed
pretest results are available from the authors.

THEORETICAL FRAMEWORK MODEL:

Brand Awareness

Advertising Good Will Organization Success

T.V Brand Equity


Radio
Online
SNews

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Dependent Variables:
Organizational Success
Independent Variables:
Advertisement

Research Hypotheses:
This research study dependent and independent variables one by one. In my study I have
dependent variable which is organization success and on the other hand, I have one
independent variable which is advertising. It is hypothesized that there would be
relationship between brand awareness, goodwill, and brand equity.
Ho= There is no relationship between advertising and brand awareness
H1= There is relationship between advertising and brand awareness
Ho= There is no relationship between advertising and goodwill
H1= There is relationship between advertising and good will.
Ho= There is no relationship between advertising and brand equity
H1= There is relationship between advertising and brand equity.
Ho= There is no relationship between brand awareness and organization success.
H1= There is relationship between brand awareness and organization success.
Ho= There is no relationship between good will and organization success
H1= There is relationship between good will and organization success
Ho= There is no relationship between brand equity and organization success
H1= There is relationship between brand equity and organization success.
Ho= There is no relationship between advertising and organization success.
H1= There is relationship between advertising and organization success.

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THE EFFECT OF ADVERTISMENT ON SUCCESS OF ORGANIZATION

Research Methodology

Research Design:
The main focus of this study is to know that is based on the quantitative methods
approach. And in this section we will use the questionnaires to be filled from the males
and females employees of the organization that are working.
To check out the results I will use SPSS software. In which I will use the correlation,
regression, histograms to get the relation between dependent variable and other
independent variables.

THE METHODOLOGY:
Data Collection:
The data I will be collected through questionnaire and telephonic media. This study is
about effect of advertisement to success of organization.
I will Quantitative techniques instead of Qualitative and Mixed method techniques.
Because I want to see the impact of advertisement to success of organization.

Target Population:
Data I will be collected almost fifty organization sector.

Sampling:
I will select 40 male employees and 10 female employees for collecting the data. I choose
quantitative technique that’s why I will analysis in SPSS.
Validity:
Validity is the issue of whether or not an indicator really measures the concept that it is
devised to measure.

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According to my research problem I have choose quantitative Approach so to measure the


validity of my research I will use following strategies.

Face Validity:
In face validity I will ask the experienced or expert people from the success organization
field to determine whether the study is conducted in the relative field or not.
Field work:
Data Sources
The data used in this study are from multiple sources. The data source for investigational
product entry. The car industries, a database that contains details on about 34,000
developmental products investigated since 1980. The car industries contain detailed
information on products that are under active development, their development history,
and progress to date. From this information we can determine the timing of
investigational product entry.
The primary explanatory variable of interest, the car industries advertising expenditure,
was based on the Scott-Levin Market Research Audit data that monitor product promotion
and market performance for U.S. and international the car industries firms.
Specifically, we aggregated market-level advertising expenditure data from three different
market research audits: 1) the office-based personal selling audit from physicians, 2)
physician meetings and events audit, and 3) the direct-to consumer audit.
Information about existing products was extracted from the electronic Physician Desk
Reference, US The car industries Information (USPDI), the car Facts and Comparisons
(F&C), and the electronic Orange Book.
Product patent information was obtained from the publication the car s under Patent
2002 and the Orange Book.
We analyzed data from 1995 to 2001 for products in eight therapy areas (asthma,
depression, dyslipidemia, gastric/duodenal ulcer, migraine, obesity, epilepsy and
Parkinson’s disease) on a quarterly basis. The therapy areas were limited to medical
conditions for which Scott-Levin market research audits data were available to the authors
from a The car industries firm. These therapy areas represent a wide range of disease

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areas, ranging from those that are commonly known to those that are often under-
diagnosed and under-treated, diseases that affect mostly the young and the elderly, and
diseases that are typically managed by primary care physicians to those that are managed
mostly by specialists. According to the Novartis the car industries Benefits
Report, the U.S. retail The car industries market was $204 billion in 2002. Annual total
sales revenue for the eight therapy markets included in this analysis averaged $30.2
billion over the study period. Therefore, the therapy markets analyzed in this study
represents about 15% of the national prescription the car market.

Discussion of issue of validity and reliability:


Validity refers to the issues of whether or not an indicator really measures the concept
that devised to measure. In quantitative research we will use Face validity, where measure
apparently reflects the content of the concept in question. We collect the data through
questionnaire before collection of data we make sure the question we prepare according to
the topic or not for clarity that the question is correct we check the questionnaire to the
senior researcher the question is correct or relevant to the topic after his approval we
collect the data that is called face validity.

LIMITATIONS:
Study keeps itself in limits. It is self by filling questionnaire from different people in
different organizations. Due to limited availability of resources, this study is limited to the
population size of only fifty organization sectors because I will conduct a study in Lahore.
DELIMITATIONS:
My study is limited to different organizations and not applicable to other sectors.

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THE EFFECT OF ADVERTISMENT ON SUCCESS OF ORGANIZATION

Ethical Considerations
• It would be clearly defined that it is a National Survey of Creativity in
Advertising to find out what the concerned people think about “what is
• Creative and what is not creative”.

• The participation in this study would be completely voluntary, which may


• End at any time within te survey by the refusal of the participant.

• All information provided would be held in strict confidence.

• The privacy of the participants would be protected to the maximum extent


• Allowable by law.

• The results would be shared with the participants in order to help them
• Push the boundaries of creativity in new ways.

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THE EFFECT OF ADVERTISMENT ON SUCCESS OF ORGANIZATION

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counterpart.
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