A

RESEARCH REPORT
ON

SUBMITTED TO: SUBMITTED BY:

PROF. (DR.) DEVESH KISHORE SHIPRA TYAGI
Dean, SJMC, IMS, Noida MJMC (4th Sem)
Roll No. 9197021

INSTITUTE OF MANAGEMENT STUDIES

NOIDA
[AFFILIATED TO C.C.S. UNIVERSITY, MEERUT]

1
 ACKNOWLEDGEMENT

Completing a task is never a one man’s effort. It is often the result of direct
or indirect invaluable contribution of a number of individuals.

It is indeed a great pleasure to take the opportunity to extend my sincere

thanks to all those whose help and guidance made this endeavor a
successful one.

I am sincerely thankful to Prof. (Dr.) Devesh Kishore, Dean, SJMC, IMS,

Noida for giving me an opportunity to write my research report under his
guidance and supervision and for all the help and support which led me
complete the project.

Last but not the least the information contained in this project is true and
correct to the best of my knowledge and belief.

SHIPRA TYAGI
MJMC (4th Sem)
Roll No.
9197021

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 PREFACE

Many companies believe they know how the Internet works after reading
an Internet book. This is not possible. The Internet requires learning by
doing. The best advice is, get online and get a feeling of what is happening
on the Internet. That is the first step to becoming a successful advertiser
on the Internet.

This dissertation is written for advertisers, advertising executives and

marketers with the aim of helping them to understand the Internet’s
potential as an advertising medium. After experimenting the Internet and
reading this dissertation the reader should have a general knowledge of
interactive advertising strategies and be able to make effective persuasive
and profitable Internet advertising.

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4
 Contents

 Introduction

 Elements of Communication

 Objective of the Research

 Concept & Nature of Promotion

 Promotion Mix {Method of Promotion}

 Promotional Planning

 Factors Affecting Promotion Mix

 Advertising World

 History of Advertising

 The Indian Advertising

 Concept of Advertising

 The Advertising Decision

 Features of Advertising

 Objective of advertising

 Significance of Advertising

 Benefit to Customers

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 Types of Advertising

 Media of Advertising

 Triangle of Advertising

 Research Methodology

 Analysis of Data

 Interpretation

 Limitation

 Conclusion

 Suggestions

 Bibliography

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 INTRODUCTION:
PR & ADVERTISING IN THE PROMOTION MIX

Here, we are concerned with the nature of the promotion mix and the relative importance
of advertising in the mix. As a marketer we are interested in the right mix or the
combination of the advertising, publicity, personal selling, personal relations and sales
promotion. An appropriate mix of all these five elements helps to achieve the specific
marketing objectives. The activities of the sales force, advertising and the publicity
programmed and all the promotional efforts should be properly co-coordinated for the
marketing success of the product.

COMMUNICATION
Effective communication is the essence of promotion. In the age of information,
marketing is incomplete without effective communication with the prospective buyers
about the right product at the right price that is available at the right place. Marketers
must communicate the product, its features, etc. to the right target customers by
formulating right message in the language that is understood by them. Proper
communication requires advertising, sales promotion, personal selling, direct marketing,
and public relations. Thus, marketer has to use complex marketing communication to
convey the message to the target group of customers. Communication is the responsibility
of manufacturers, distributor, wholesaler, retailer or all in the channel.

CONCEPT AND ELEMENTS OF COMMUNICATION

The term ‘communication’ is derived from the Latin word ‘communis’ which means
common. That means if a person communicates with another, he establishes a common
ground of understanding. In the words of Newman, Summer and Warren,
‘Communication is an exchange of facts, ideas, opinions or emotions by two or more
persons.”
According to Keith Davis, “Communication is the process of passing information and
understanding from one person to another.” Communication does not mean merely
sending or receiving message. It involves understanding the message also. It is
appropriate too quote Louis A. Allen, “Communication is the sum of all the things one
person does when he wants to create understanding in the minds of others." It is a
bridge of meaning. It involves a systematic and continuous process of telling, listening
and understanding.

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 Communication is an attempt to share understanding by two or more persons. It is
a two-way process and is complete when there is some response from the receiver of
information. It has two basic objectives

(i) To transmit message, ideas, or opinions; and

(ii) To create an impression or understanding in the mind of the receiver of
information.

NATURE OF COMMUNICATION

The characteristics of communication are as follows:

(i) Communication involves at least two persons-one who sends the

message and the other who receives the message.
(ii) Communication is a two-way traffic. The process of communication is
not complete until the message has been understood by the receiver.
Understanding is an essential part of communication, but it does not
imply agreement.
(iii) The basic purpose of communication is t o create an understanding in the
mind of the receiver of information.
(iv) Communication may take several forms, e.g., instruction, report,
suggestion, grievance, observation, etc. The message may be conveyed
through words spoken or written, or gestures.

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 ELEMENTS OF COMMUNICATION
The process of communication consists of the following components:

(1) Communicator: The person who conveys the message is known as communicator or
sender. By initiating the message, the communicator attempts to achieve
understanding and change in the behavior of the receiver.

(2) Message: It is the subject-matter of any communication; it may involve any

fact, idea or information. It must exist in the mind of the Communicator if
communication is to take place.

(3) Communication Symbol: The sender of information organizes his idea into a
series of symbols (words, signs, etc.) which he feels, will communicate to the
intended receiver. Communication may also take place through physical
gestures.

(4) Communication Channel: The communicator has to choose the channel for
sending the information. Communication channel is the medium through which the
message passes. It may be either formal or informal.

(5) Receiver: The person who receives the message is called receiver.

The communication process is incomplete without the existence of the receiver of the
message. It is the receiver who receives and tries to understand the message.

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 THE ROLE COMMUNICATION IN MARKETING:

Communication is a process involving interchange of facts, viewpoints and ideas

between two or more persons or organizations.

As shown in figure, the communication process starts when the sender or

communicator has an idea or message to communicate to another person known as
receiver. Communication will be completed when the following steps are completed:
(i) The sender formulates the message, which he wants to convey to others.
(ii) The sender will translate the message into words, symbols or some other form
which he feels will make the receiver understand his message: This is
known as encoding of message.
(iii) The encoded message is transmitted to the receiver with the help of certain
media. The sender may use spoken or written words for this purpose.
(iv) The message is communicated to the receiver.
(v) The receiver of the message decodes the message and draws meanings from the
message.
(vi) The receiver will take the necessary action and will send his response to the
sender of the message. This is also known as feedback information. When the feedback is
received by the communicator, the communication process is said to be c

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 OBJECTIVE OF THE RESEARCH

The objective of the research on “Advertising is a necessary evil” is to study and find
out the contribution and vices of advertising.

It is the market research supported by secondary data that aims to prove that advertising
is a necessary evil i.e. it is both a boon and a bane. This research covers various aspects
of advertising and studies various pros and cons of advertising to the customers,
manufactures and society.

It is a descriptive research that deals with the significance and necessity of advertisement
in today’s scenario where it’s regarded as a social waste.

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 CONCEPT AND NATURE OF PROMOTION
Promotion is an important part of the marketing-mix of a business enterprise. It is the
spark plug of the marketing-mix. Promotion is a process of communication involving
information, persuasion, and influence. It includes all types of personal or impersonal
communication with customers as well as middlemen in distribution. The purpose of
promotion is to inform, persuade and influence the prospective customers. Personal
selling, advertising, publicity and sales promotion are widely used to inform the people
about the availability of products and create among them the desire to buy the
products.

Promotion is communication from sellers to buyers in the market in as much as it tries to

instill into consumer's minds images (through advertising, personal selling, sales
promotion and publicity) that make them buy the product. Thus, the promotion message
(i.e., information, advice or request) by the sender (i.e., marketer) to the receiver (i.e.,
consumer) must accomplish three tasks to be effective:

(a) It must gain the attention of the receiver.

(b) It must be understood by the receiver.
(c) It must stimulate the needs of the receiver and suggest an appropriate
method of satisfying these needs.

The three tasks are related to the AIDA (attention-interest-desire-action) concept

proposed by EX Strong. As an explanation of the steps an individual must go through
before making a purchase decision. First of all, the potential consumer's attention must be
gained. Once this is accomplished, the promotional message seeks to arouse interest in
the product or service. If interest is aroused, the next stage is to stimulate consumer desire
by convincing the prospective buyer of the product's ability to satisfy his or her needs.
Finally, the sales presentation or advertisement must attempt to produce action in the
form of a purchase or a more favorable attitude that may lead to future purchases.

Marketing Communication and Promotion

Promotion is marketing communication. Communication influences the rate of promotion
in marketing. If there is no product promotion, there will be no-gathering of customer
attention, awareness or exposure to the product. In such cases, customer might be able to
know about the product, its benefits, features by point-of-purchase 'displays, or from
packaging. But who is to inform, what is available, where it is available and at what
price. In the world of fast changing technologies and information, how can one... Think
of telemarketing, internet marketing, or direct marketing without product, promotional
efforts.
Marketing is mutually beneficial relationship and the role of promotion is to encourage
such an exchange by joining communications and the product adoption processes.
Motivating consumers to positives respond requires the marketers to understand the
complete consumer buying process. To conceptualize the consumer buying process,

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several models have been developed. These are shown in Fig. 2. Marketing
Communication objective depends upon the stage at which the target consumer is found.

At cognitive stage (Learn), the marketer wants to put something in consumer's

mind i.e., get his attention/make him * aware and knowledgeable/or expose the consumer
with the communication for easy reception and recognition. At the affective stage (Feel),
the marketer tries to create consumer interest and desire, or liking, preference and
conviction, or interest and evaluation, or change consumer's attitude and intention. At the
behavioral stage (Do), consumer is expected to take action, purchase, or go for trial and
adoption.

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 OBJECTIVES OF PROMOTION
Marketers undertake promotional activities to ultimately achieve the following
objectives:

(1) To provide information: The main purpose of promotional activities is to inform the
prospective customer about the availability, characteristics, and main use and
alternative uses of particular product.

(2) To stimulate demand: Promotional activities create awareness and build consumer
interest in new products and new technology.

(3) To differentiate the product: Promotion helps in differentiating a particular product

of the firm from the competing products of other firms. A business firm can supply
data revealing how its product compares with other products.

(4) To highlight the utility of product: Promotion helps in letting the people
know the utility of the new product. It also tells them how the concerned product
will be helpful in satisfying their specific demands.

(5) To counter competition and stabilize sales: In the modern age of competition it
is an important purpose of promotional activities to fight competition by
reassuring the customers about the quality and price of the product. This is also
intended to stabilise'sales volume in the long-run. It is possible that, a customer
using a particular brand of a product may buy another one next time because the
other brand is advertised heavily.

(6) To build image: Promotional activities such as public' relations, advertising-and

sale promotion may be used to build a favorable public image of the firm.

The objectives of promotion are summarized in the table:

Initial and Ultimate Promotional Objectives

Examples Ultimate Objectives

Initial Objectives
1. To Inform :
Nature & type of product, Unique Pepsi (Yeh hi hai right Inform the prospective
benefits, Uses and features choice Baby!) customers and differentiate
Offered price, Availability, Voltas Mega offer.
Special offer. Laundrette (Yeh Ho
Nahi Sakta!)
Maggi Sauces (It’s

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 different)
2. To Persuade : Surf (Sasti cheez aur
To Receive Sales Calls, achhi cheez main faraq
To Purchase now, hota hai). Stimulate demand
Encourage switching to your Onida (Neighbour’s
brand, envy, owner’s Pride).
Build brand preference, Change
perception, attitude, belief about
product/brand/co. image
3. To Remind : Lux (Film star’s soap).
Need and availability of product Colgate (Ring of Stabilities demand and stay
Where to buy, confidence). in competition.
Keeping top of mind slot, Complan (Will the
Showing presence during off Complan mothers
seasons stand-up).
4. To Counter Competition : BPL Mobile office, Product utility and
Better product, HP-DJ-200colour superiority, and Product
Unique product, printer, differentiation.
Better availability, HP Copier, printer and
Multiple uses Fax
Mahindra Classic
Jeep (Admit it; You’ve
always been crazy
about topless models).
Allwyn Duracool
Refrigerators
‘For extra space
without extra cost’
(Allwyn’s heart felt
condolences to all 165
liter refrigerators).

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 PROMOTION-MIX (Methods of Promotion)
The term 'Promotion-mix' is used to refer to the combination of different kinds of
promotional tools used by a firm to advertise and sell its products. The main
promotional tools or activities which make-up the promotion-mix is personal selling,
advertising, public relations and publicity and sales promotion. These are also
known as elements of promotion-mix. .

The modern business cannot depend upon a single promotional tool. They have to make
use of all the promotional tools in different degrees depending upon the nature of
product, nature of competition and kinds of customers. The marketing manager is
supposed to decide about the use of various promotional activities and allocate budget for
them. While taking a decision about promotional-mix, two factors need adequate
consideration. Firstly, a combination of promotional activities is to be used because any
promotional tool, used alone, may not prove fully effective. Secondly, all promotional
tools are not of equal importance and their importance mar change with the.
Change in business environment.

ELEMENTS OF PROMOTION-MIX (METHODS OF PROMOTION):

Product promotion can take place in many ways: Advertising, Sales Promotion,
Personal Selling, Direct Marketing, and Public Relations and Publicity. Similarly,
promotional tools may have many mixes. First, various methods of promotion are
discussed. Next, a review of their mixes has been considered. Finally, factors that
affect promotion have been listed for developing right promotional strategies.

Advertising:

It is impersonal form of promotion that is directed towards masses and is paid for,
with the clear identification of the sponsorers. Advertising is the most visible form of all
promotional tools. The media include Wass media (TV, Radio and Newspaper),
Magazines, point-or-purchase displays, packaging, sponsorship, billboards, banners,
etc. The recent trend is towards sponsorships like,

(i) Pepsi -The Independence Cup `97

(ii) Videocon - 4th National Games '97

(iii) Colgate - Pados6n Ki Pasand (DD-metro)

(iv) Philips - Philips Top 10 (Zee-TV)

(v) Kodak - Kodak Klick-Klick (Zee-TV)

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 Promotional Tools

Sales Promotion:

It consists of short-term and temporary incentives to purchase or induce trials. The tool includes
arranging contests, games, premium packs, gifts, off-season discounts, sampling, rebates, Trade-in
allowances, exchange offer, etc. The recent trend is to go for freebies:

(i) RPG Numeric Paper with purchase of HCL computer, Liberty Shoes etc.
(ii) Allwyn 100 liter bedroom refrigerator free with every 360 liter frost free refrigerator.
(iii) Motorola Micro TAC International 8200 Lightweight cellular phone with gift of fully
automatic, auto focus Kodak camera, or exchange offers.
(i) LML for the grand exchange offer for scooter of any make, and
(ii) Phillishave for exchange of your old electric shaver.

Personal Selling:

It is the personal direct presentation of product to the customer or prospective

customer for the purpose of making sales. The tools include techniques like sales
presentations, meetings, incentive programmers, and samples.

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DIRECT MARKETING:

It is the use of non-personal contact tools to solicit a trial or purchase. The tool includes
catalogue selling, mail-order, Tele-marketing, WWW marketing, TV shopping, etc.

Public Relations and Publicity:

It encompasses wide variety of communication efforts to contribute a generally favorable

attitude towards the organization and its products. Publicity is not paid for. The tool
includes press conferences, speeches, annual reports, events, publications, donations for
public cause and sponsorships. Sponsorship is covered here to include that part which is not
paid for. For example. Pepsi paid for the sponsorship of the Independence Cup, 1997. But
it generated news items in Newspaper, studio, Television, Sports magazines, etc. First
part is advertising and the, second part is publicity.

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 PROMOTIONAL PLANNING
These promotional tools are part of the overall marketing-mix strategy as shown in
Fig.

Thus, a company prepares an offer-mix of products, services, and prices, and utilizing mix
of sales promotion, advertising, sales force, public relations, direct mail and tele-
marketing to reach the distribution channels and the target consumers.

Companies constantly search for substitutes of one promotional tool with another because
the tool has become less effective. Fir example, Phoenix shoes have been heard to be on
sale for over a year now. This cuts doubt on the use of the product for consumers. But,
Raymonds has opened its Raymond's Seconds shops as a substitute for sale. This has
improved the company's image.

The issue becomes more complex when one promotional tool is necessary to promote
another promotional tool. For example Philishave has issued advertisements (one

19
promotional tool) to inform the public that it has offered for exchange of old electric
shavers (sale promotion tool).

FACTORS AFFECTING PROMOTION-MIX

There is no tailor-made promotional-mix for a firm. Every firm has to design its own
promotional-mix, i.e., to determine the various promotional tools to be used for
promoting the sale of its products. The most striking feature of the promotional tools is
their cross-substitutability.

They represent alternative ways to influence buyers. This substitutability calls for
treating various promotional tools in a joint decision framework. Promotional strategy is
determined by the product-market strategy and over all marketing strategy. Various
combinations, types and degrees of personal selling, advertising and other forms of
promotional tools are brought together into a promotional-mix to develop the promotional
strategy. For each component of the promotional mix, management has to set objectives,
determine policies and formulate strategies. The managerial decision about the
promotional-mix of a firm is influenced by the following factors:

Product Considerations

Nature of Product:
The type of promotional-mix will differ depending upon the nature of the product. In
case of sale of consumer's products, advertising, publicity and sales promotion are
necessary in addition to personal selling. But in order to push up industrial goods,
personal selling is much more effective because its market is easily identifiable,
products are often made to specifications and a great deal of pre-sale and after-sale
services are required to sell and install the product.

PRICES AND PROMOTIONS TOOLS

Examples Advertising and
Price Sales Publicity Personal
Pro Sell
moti ing
on
Low Colgate gel, Heavy to Supplemental to Low
Rotomac Ball- medium sales promotion
point Pens
Medium Acqua Guard Medium to low Heavy Low to
water purifier, Medium
Phillips audio
system

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 High Mercedes-Benz; Low Sophisticated Heavy
BPL-frost free
refrigerators
with three doors;
HCL computers

Packaging:

Packaging performs the self-promotional function in addition to protecting the

product. By incorporating creativity in its design, a package can add the `pick-me-up'
appeal to the product. It also helps to communicate the product features, applications,
and benefits more positively. For example, Coke in can, Frooti in Tetrapacks, and Dalda
in Handle Bar plastic bottles.

Degree of Customization:
The product, whether standardized or adapted to the customer's special needs, is
responsible for the type of promotional efforts that might be adopted. Table 4 guides the
broad dimensions of promotional efforts that could be designed depending upon the
degree of customization. For example, generally, the more the standardization
would attract need for more advertising and sales promotional activities and least
personal selling efforts because the product (in such case) bas-to satisfy more general
needs of the customers.

Thus, advertising and sales promotion are less and less required as the product moves
from more standard to less standardized (more tailored to individual needs),
while personal selling has mostly negative relation to the mass vs. personalized
marketing.

2. Pricing Policy
The pricing of product can broadly decide the type of promotional-mix. - Generally
the following Table 5 has its uses

3. Distribution
Again the promotional tools are affected by the type of distribution followed:
( See Table)

The Intensively of Distribution and Promotion

Sales Advertising & Personal Examples

Type Promotion Publicity Selling
Most Heavy Least Coca-Cola,
Intensive Tata salt

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 Selective Medium Heavy Medium Bata shoes,
Liberty shoes,
DCM clothes
Exclusive Least Medium Most Raymonrs,
Bajaj Auto
scooters,
Maruti cars

Thus, intensively distributed products generally require heavy advertising and sales
promotion efforts so those products will be pulled through the distribution system.
For example, advertising can accurately target the customers and locate , there in
segmented (e.g., Coca Cola) and undifferentiated markets (e.g., salt).

4. Target Market Characteristics

Promotion is greatly influenced by the target market characteristics such as level of
competition, geographic coverage, and buyer readiness stage:

Level of Competition:
The type of competition existing in the market is one of the factors which can affect the
penetration of the. Product/brand into the market. The promotional efforts must match the
level of competition and there is generally tendency to go for high advertising, sales
promotion and personal selling, when there is highly competitive marketing
environment.

Geographic Coverage:

In case of wide market coverage, advertising and sales promotion are desirable. For
example, to inform that the Colgate toothpaste is widely available at competitive
prices, high promotional campaign is launched by Colgate Palmolive Company.
However, if the product is available in local area, personal selling becomes more
important. This can be seen from the promotional efforts of small and very small
manufacturers who produce their product in their residential premises. The brand dames
of such products are not widely known.

Buyer Readiness Stage:

The promotional mix becomes a tool to prompt the buyer to prepare and accept the
product being offered. The type of Promotional efforts required would depend upon
the buyer's own readiness stage. A bird's eye view at these stages and the
promotion desired is given ' below (See Table)

Table: Promotional Efforts and Buyer Readiness Stage

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 Stage of Buyer Advertising
Sales Promotion Personal Selling
Readiness & Publicity

Awareness Low Very Low Very High

Comprehension Low Low High
Conviction Medium High Medium
Ordering Very High Very High Low
High Very High Medium
Reordering

For example, customer conviction is mostly influenced by personal selling and less
by advertising and sales promotion. Further, advertising and publicity are most
effective at the early stages of buyer decision process, and sales promotion and
personal selling dare most effective in closing the sale and reordering.

Promotional Budget:

The allocation of funds by the op management for the promotional activities must
be kept in mind by the marketing manager while determining the promotional-
mix. A firm with huge promotional budget can spend on all promotional activities.
But a marketer with financial constraints will be selective in the use of promotional
activities. Personal selling is cheaper and more effective in the short-run. Advertising
in reputed magazines and journals is very costly, but can attract the status
conscious customers towards the product.

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24
 ADVERTISING WORLD

Advertising is multidimensional. It is a form of mass communication, a powerful

marketing tool, a component of the economic system, a means of financing the mass
media, a social institution, and an art form, an instrument of business management, a field
of employment and a profession.

Above all advertising is a big business. It is bigger in the developed rich countries of
west. In India the advertising has seen phenomenal growth. The mood in advertising
circles, on the threshold of 2005, is upbeat, to put it mildly. Consider the aces up the
industry's sleeve: Telecom ad spends are going through the roof, FMCG biggies are once
again loosening purse strings with indications of a sect oral revival, and the big guys in
retailing are getting their act together with the government giving the green signal to FDI.

No wonder the Rs 10,000-crore industry is projecting 13-14 per cent growth in 2005,
against 9-10 per cent in 2004. "Industry sentiment is optimistic. Success will go to those
advertisers who think differently," said Sam Balsara, CMD, Madison. Revival of FMCG
spends is being seen as a huge trump card in the advertising pie, with players realizing
that brand-building can only happen through above-the-line advertising. Said Arvind
Sharma, chairman & CEO, Leo Burnett: "While telecom, insurance, auto and durables
will continue as big advertisers, FMCG spends will pick up. Retail and finance will join
the big league."

Spends by cell phone firms in 2004 were up 167 per cent over previous year, and firms
say this will continue. Cross-media reshuffling of ad spends is expected to continue. TV
advertising will remain favorite for FMCG, but experimentation with newer media is here
to stay with mass media costs increasing. Also, print, which overtook TV in 2004, will
remain in the big league.

According to TAM Adex, while TV advertising grew 13 per cent in 2004 over previous
year, print spends were up 14.7 per cent. Explained Atul Phadnis, V-P, TAM India:
"Elections, IPO’s, coaching centers, retail stores, all contributed to print."

Today we are exposed to a large number of commercial messages than anytime in the
past. Newspapers and magazines are full of ads. Not only has the quantity increased, even
the quality of advertising has improved considerably over the past couple of years. Other
means of advertising such as the radio, television, the cinema and billboards, etc have
also amply contributed to the growth of this industry. Advertising, which has became a
marketing force helping mass selling and distribution, is also the object of much
criticism, some justified some not. It ha been claimed that much adverting is false,
deceptive and misleading and that it conceals information, which should be revealed and
omits limitations and comparative disadvantage of the items advertised.

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 HISTORY OF ADVERTISING
Modern advertising is largely a product of the twentieth century. However
communication has been the part of the selling process for almost as long as there
has been the need to exchange goods from one person to another. The
development of technology and research ahs led to increased sophistication in
advertising in recent decades. During ancient and medieval times advertising was
crude if measured by present day standards. However the basic reason for using
advertising was the same then as it is now.

Institutions come into existence only when a need for them develops. A variety of
external forces support and nourish the growth and development of an institution.
To survive, the institution must be dynamic, flexible and adaptable to meet the
needs in the changing conditions of the environment.

The recorded history of advertising covers the period of about 5000 years
including the modern satellite and internet age. Our knowledge of advertising in
ancient times is fragment. Nevertheless, it seems that the urge to advertise has
been a part of human nature ever since ancient times. The diggings of
archeologists in the countries rimming the Mediterranean sea has unearthened a
Babylonian clay tablets about 3000 B.C, bearing inscription for an ointment
dealer, a scribe and a shoemaker. Romans and their predecessors knew that “it
pays to advertise.” Papyri found in the ruins of Thebes (Egypt) show
announcements offering rewards for the return of runaway slaves (about 3000
BC).
Before the invention of printing from movable type (about 1438 AD) by John
Gutenberg, there were three forms of advertising:

• Trademarks:
Craftsmen in early times wanted to be identified for their skills and placed
their individual marks on goods they crafted. This led to the reputation
building f particular artisans by word of mouth. Buyers learnt to look for the
distinctive mark just as we look today for the brand names and trademarks on
the products.

• Signs:
Phoenicians and other traders painted commercial messages on prominent
rocks along trade routes that they used. These messages highly praised the
products that were for sale. This is an example of ancient outdoor advertising.
Archeologists have revealed from excavations of Pompeii that little shops had
inscriptions on walls near the entrance to inform the passerby whether the
shops sold pottery, wine, bread or any other goods.

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• Town Criers:

This system of town cries was perhaps present in all developed

civilizations of ancient world. In Greece during the golden age, town criers
were paid to go around spreading news and making announcements in the
streets of Athens. Epics and history books about ancient India reveal that the
rulers in India to inform the public of various public interest matters used the
system of town criers. In rural India, town criers were used till 1950s.

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 THE INDIAN ADVERTISING

Indian advertising has grown to its maturity and became very professional. We have
advertising clubs in each of the major metropolitan cities and have as many as about 2
hundred advertising agencies vying with each other in wooing large accounts. The
advertising club of Bombay in the Mecca of Indian advertising, contributing about 60%
of the total billing of the advertising industry.

Advertising in India has played vital role in the development process by creating a
demand for consumer goods and raising the living standards of millions. It is not
irrelevant or luxury-oriented, as it has been made out to be. A substantial amount of
advertising expenses are utilized on advertisements of capital goods, intermediaries,
consumer durables and services, most of which promote investment, production and
employment. Further, advertising has a definite role to play in rural development; and
Indian advertising has made some progress in this direction as well. In this connection,
the advertisement film of Hindustan Lever on cattle feed are noteworthy. Many other
consumer goods manufacturers have successfully reached rural markets through
appropriate advertising.

Indian advertising has no doubt registered a rapid growth and has acquired a certain
amount of professional character. But, by and large, it still appears to be in shambles,
unable to attract best managerial talents, apart from being administratively weak and
unable to devise a self-regulatory mechanism which is necessary if it has to register
professional growth and play a useful role in the Scio-economic development of the
country.

ADVERTISING IN 21ST CENTURY

The past decade has witnessed a remarkable impact on advertising due to rapid strides in
technology. It is difficult to determine exactly what the next decade will bring. However,
what looks certain is that there will be much greater consumer involvement and control
and some degree of two way communication.

Further progress in artificial intelligence will add a totally new dimension to advertising
and its planning. There will be major career opportunities to talented people in electronic
media. There will be a number of challenges unique to the coming generation and with
these challenges there will be opportunities, responsibilities and rewards that advertisers
of the past could not have imagined.

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 CONCEPTS OF ADVERTISING

Advertising is an important tool of promotion. It is a non-personal presentation of an idea

or a product. Advertising has acquired a great importance in the modern India
characterized by tough competition in the market and fast changes in technology and
fashion and taste of customers.

Advertising is used for communicating business information to the present and

prospective customers. It usually provides information about the advertising firm, its
product qualities, place of availability of the product, etc. Advertising is indispensable for
both the sellers and the buyers. However it is more important for the seller. In modern
age of large-scale production, producers can’t think of pushing sales of the product
without advertising them. It is basically the link between the sellers and the buyers. It
does not simply provide information about product and services but is an active attempt
at influencing people to action by an overt appeal to reason or emotion.

In other words, advertising does not end with the flow of information about the seller to
the buyer; it goes further to influence and persuades people to action or belief. This is
however, only the communication point of view of advertising function. There is another
way of viewing advertising function; and that is the marketing point of view.

Each organization has a marketing objective and a marketing plan to achieve them. An
organization also identifies the segment of the market it intends to serve. In the process of
achieving its marketing objectives, the organization uses several marketing tools. In the
study of marketing management, four variables are identified, which are well within
controllable limits by the individual organization. They are popularly known as 4Ps-
Product, Place, Price and Promotion.

DEFINITION:
It is the dissemination of information concerning an ides, product or service to introduce
action in accordance with the intent of the advertiser.

American Marketing Association has defined advertising as “Any

Any paid form of non-
personal presentation and promotion of ideas, goods and services of an identified
sponsor”.
sponsor”.

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 THE ADVERTISING DECISION

Advertising can be used to build-up a long-term image for a product or trigger quick
sales. Advertising can efficiently reach geographically dispersed buyers. Certain forms of
advertisements like TV commercials can require a large budget, whereas other forms like
newspaper advertising can be done on a small budget. Advertising might have an effect
on sales simply through its presence. Customers might believe that a heavily advertised
brand must offer “good value”.

In today’s advertising three media are noticeable, namely:

1. Advertorials are print ads that contain editorial content and may be hard to
distinguish from a newspaper or magazines content.

2. Infomercials are TV commercials that appear to be 30-minutes television

shows demonstrating or discussing a product. Viewers can phone and order the
product; hence the information produce directly measurable results like the
Asian Sky Shop and Tele Brand products advertising programs.

3. Banners are small signs on web pages advertising an offer or company that can
be reached by clicking on the banner.

In developing an advertising program, managers must always start by identifying the

target market and buyer motives. There they have to take five major decisions in
developing an advertising program known as 5Ms of advertising:

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 Mission

The mission of advertising aims at defining advertising objectives that set an

advertising goal, which is a specific communication task and achievement level to
be accomplished with a specific audience in a specific period of time.

Money

It aims at deciding on advertising budget. Advertisements have a carryover affect

that last beyond the current period. Although advertising is treated as a current
expense, part of it is really an investment that builds up an intangible asset called
Brand Equity.

Message

Choosing the advertising message is a very important and integral part of

advertisements, where advertising campaigns vary in their creativity. Advertisers
mainly go through four steps to develop a creative strategy:

a. Message Generation
b. Message Evaluation and Selection
c. Message Execution
d. Social Responsibility Review

1. Message Generation:

The product “benefit” message should be decided as a part of developing the

product concept but marketer may change the message, especially if
consumers seek new or different benefit from the product.

Creative people use several methods to generate possible advertising

appeals. Many use Inductive framework by talking to consumers, dealers,
experts and competitors.
Some use Deductive framework for generating message based on buyer’s
expectations from the product that can be of four types:

1. Rational
2. Sensory
3. Social

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 4. Ego satisfaction.

In today’s world the company do it through it various ad agencies that can compose many
alternative ads in a short time by drawing from computer files containing still and video
images, type sets and so on.

2. Message Evaluation and Selection:

A good ad normally focuses on one core-selling proposition while it can be rated on

the three main factors:

3. Desirability
4. Exclusiveness
5. Believability

Hence advertisers conduct market research to determine which appeal work for its
target audience.

3. Message Execution:

The message impact depends not only upon what is said but also
on how it is said. Some ads aim for Rational positioning where ads mainly show the
product utility and others for Emotional positioning where ads connects product with
something that effects customer’s perception by stirring them emotionally.

Creative people also find a cohesive Style that is related to the presentation of the
message theme, Tone that can be positive or humorous depending on the ads
desirability, Words that can be catchy or memorable and Format that stresses on size,
color and illustration that affects ad’s impact as well as cost, for executing the
message.

4. Social Responsibility Review:

It’s done by advertisers and their agencies to be sure that their creative advertising
doesn’t overstep social and legal norms.

Media

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 It involves finding most cost effective media to deliver the desired number of
exposures to the target audience.

The main steps here are as follows:

1. Deciding on desired Reach, Frequency and Impact:

Reach that is the number of different persons or households exposed to a

particular media schedule at least once during a specific time period.
Frequency is the number of times within the specified time period that an
average person or household is exposed to a message.
And Impact is the qualitative value of an exposure through a given medium.

2. Choosing among major media types:

The media planner must know the capacity of the major media types to deliver
reach, frequency and impact. The major advertising media along with their
costs, advantages and limitations are as given below and the media planners
make a choice among them based on its target audience media habits,
product, cost and the type of message that is to be delivered.

3. Selecting specific Media Vehicle:

The media planner must search for the most cost effective media vehicle
within each chosen media type. The planner has to rely on media
measurement services that provide estimates of audience size, composition
and media cost. Audience size has several possible measures that include
Circulation, Audience, Effective Audience, and Effective Ad Exposed
Audience.

i) Circulation is number of physical units carrying the advertisement.

a. Audience is the number of people exposed to the vehicle.

b. Effective Audience that includes the number of people with target

audience characteristics exposed to the audience.

c.Effective Ad Exposed Audience is the number of people with target

audience characteristic that actually saw the ad.

4. Deciding on Media Timing:

33
 The advertisers in deciding the appropriate timing for placing the ad once
media is chosen faces two kinds of problems:

a. Macro scheduling problem involves scheduling the advertising in relation

to seasons and the business cycle.

b. Micro scheduling problem calls for allocating advertising expenditures

within a short period to obtain maximum impact.

But the most effective pattern depends upon the communication objectives in relation to
nature of the product, target customers, distribution channels, and the other marketing
factors.

5. Deciding on Geographical media Allocation:

A company has to allocate its advertising budget over space as well as over time. The
company makes “National buys”, when it places ads on national TV networks or
nationally circulated magazines.
It makes “Spot buys “, when it buys TV time in just a few markets or in regional
editions of magazines likewise the company makes “Local buys”, when it advertises in
local newspaper, radio or outdoor sites.

Measurement

It involves evaluating advertisement effectiveness. Today advertisers try to

measure the communication effect of an ad that is its potential, effect on
awareness, knowledge or preference.

These can be measured mainly by two-research technique:

1. Communication-Effect Research that seeks to determine whether an ad is
communicating effectively.
2. Sales-Effect Research seeks to determine the sales that have been generated by
the ads. This is generally harder to measure than its communication effect.

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 FEATURES OF ADVERTISING

1. It is a paid form of communication:

Advertising appears in newspapers, magazines, TV and cinema screens because the

advertising has purchased some space or times to communicate information to the
perspective customer.

2. It is a non-personal presentation of the message:

There is no face-to-face direct contact with the customer. That is why it is described
as non-personal salesmanship. It is the non-personal form of presenting products and
promoting ideas. It’s complementary to personal selling. It simplifies the task of
sales-force by creating awareness in the minds of the potential customers.

3. The purpose of advertising is to promote idea about the product and services
of a business:

It is directed towards increasing the sale of the products and services of the business
unit.

4. Advertising is issued by an identified sponsor:

Non-disclosure of the name of the sponsor in propaganda may lead to distortion,

deception and manipulation. Advertising should disclose or identify the source of
opinions and ideas it presents.

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 OBJECTIVES OF ADVERTISING

The fundamental purpose of advertising is to sell something- a product, a service or an

idea. In addition to this general objective, advertising is also used by the modern business
enterprises for certain specific objectives, which are listed below:

1. To introduce a new product by creating interest for it among the prospective

customer.
2. To support personal selling programmed.
For example advertising may be used to open customer’s doors for salesman done by
Eureka Forbes.
3. To reach people inaccessible to salesman.
4. To enter a new market or attract a new group of customer.
5. To fight competition in the market and to increase the sales as seen in the fierce
competition between ‘Coke’ and ‘Pepsi.’
6. To enhance the goodwill of the enterprise by promising better quality products
and services.
7. To improve dealers relations. Advertising supports the dealers in selling the
product. Dealers are attracted towards the product, which is advertised effectively.
8. To warn the public against initiation of an enterprise’s product.

The most general objective of advertising is to increase the sales volume and profit. This
is also the objective of the marketing function as a whole. However, to be more specific,
the objective of advertising is to achieve the following desired response:

1. To stimulate consumers ATTENTION to the advertised product;

2. To influence favourly the consumers PERCEPTION of the advertised brand;

3. To facilitate CONSUMER RETENTION of the advertised brand;

4. To gain CONVICTION (create favorable attitudes) towards the advertised brand;

5. To generate favorable ACTION (e.g., search and purchase behavior) towards the
advertised brand;

6. To EFFECT a favorable purchase behavior (e.g., reduction in post-purchase dissonance

behavior) towards the advertised brand.

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In short, this is called the AIDA process of arousing response, where attention, interest,
desire and actions are the main “ingredients”.

37
 FUNCTIONS OF ADVERTISING

Advertising has become an essential marketing activity in the modern era of large-scale
production and serves competition in the market. It performs the following functions:

1. Promotion of Sales:

It promotes the sale of goods and services by informing and persuading the people to
buy them. A good advertising campaign helps in winning new customer both in the
national as well as in the international market.

2. Introduction of New Product:

It helps in the introduction of new products in the market. A business enterprise can
introduce itself and its product to public through advertising. A new enterprise can’t
make an impact on perspective customer without the help of advertising. Advertising
enables quick publicity in the market.

3. Creation of Good Public Image:

It builds up the reputation of the advertisers. Advertising enables a business firm to

communicate its achievement in an effort to satisfy the customer’s needs. This
increases the goodwill and reputation of the firm, which is necessary to fight against
competition in the market.

4. Mass Production:

Advertising facilitates large-scale production. Advertising encourages production of

goods in large-scale because the business firms knows that it will be able to sell on
large-scale with the help of advertising. Mass production reduces the cost of
production per unit by the economical use of various factors of production.

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5. Research:

Advertising stimulates research and development activities. Advertising has become a

competitive marketing activity. Every firm tries to differentiate its products from the
substitutes available in the market through advertising. This compels every business
firm to do more and more research to find new products and their new uses. If a firm
does not engage in research and development activities, it will be out of market in the
near future.

6. Education of People:

Advertising educates the customer about new products and their uses. Advertising
message about the utility of the product enable the people to widen their knowledge.
It is advantage, which has helped people in adopting new ways of life and giving up
old habits. For example ‘Gits’, ‘Kellogg’s’, ‘Maggie’, etc are thriving upon the new
life-style of the Indian consumer. It has contributed a lot to the betterment of the
standard of living of the society.

7. Support to Press:

Advertising provides an important source of revenue to publishers and magazines. It

enables to increase the circulation of their publications by selling them at lower rates.
People are also benefited because they get publications at cheaper rates. Advertising
is also a source of revenue for TV networks.
For instance, Doordarshan, Star TV, Sony and Zee TV inserts ads before, in between
and after various programmers and earn millions of rupees through advertising. Such
income could be used for increasing the quality of various programmers and
extending coverage.

39
 SIGNIFICANCE OF ADVERTISING

Advertising helps in spreading information about the advertising firm, its products,
qualities and place of availability of its products and so on. It helps to create a non-
personal link between the advertisers and the receivers of the message.

The significance of advertising has increased in the modern era of the large-scale
production and tough competition in the market. Advertising is needed not only by
manufacturers and traders but also for the customers and the society.

The benefits of advertising to different parties are discussed as following:

BENEFITS TO MANUFACTURERS AND TRADERS

1. Advertising helps in introducing new products. A business enterprise can
introduce itself and its products to the public through advertising.

2. It can create new taste among the public and stimulate them to purchase the new
products through effective advertising.

3. Advertising assists to increase the sale of existing products by entering into new
markets and attracting new customers.

4. Advertising helps create steady demand of the products. For instance, a drink may
be advertised during the summer as a product necessary to fight tiredness caused by
heat and during winter as an essential thing to resist cold.

5. Advertising helps in meeting the forces of competition in the market place. If a

product is not advertised continuously, the competitors may snatch its market through
increased advertising. Therefore, in certain cases, advertising is a necessity to remain
in the market and remind the customer as done by the soft drink company.

6. Advertising increases the morale of the employees of the firm. The salesman feels
happier because their task becomes easier if the product is advertised and known to
the public.

7. Advertising facilitates mass production of goods, which enables the manufacturer

to achieve.

40
 BENEFITS TO CUSTOMERS

Advertising offers the following advantage to customers:

1. Advertising helps the customers to know about the existence of various products and
their prices. They can choose from the various brands to satisfy their wants. Thus, the
sellers cannot exploit them.

2. Advertising educates the people about new products and their diverse uses.

3. Advertising increased the utility of the existing products for many people adds to the
amount of satisfaction which they are already enjoying.

4. Advertising induces the manufacturer to improve the quality of their products through
research and development. This ensures supply of the products of the better quality to
the customers.

BENEFITS TO THE SOCIETY

The society at large is also benefited because of advertising:

1. Advertising provides employment to the persons engaged in writing, designing and

issuing advertising. It increases advertising that brings additional income with the
people, which stimulates more demand. Employment is further generated to meet the
increasing demand.

2. Advertising promotes standard of living of the people by increasing the variety and
quality in consumption as a result of sustained research and development activities by
the manufacturers.

3. Advertising educates the people at the various uses of different products and this
increase in their knowledge. Advertising also helps in finding customers in the
international market, which is essential for learning foreign exchange.

4. Advertising sustains the press, and other media. It provides an important source of
income to the press, radio and TV networks. The customers are also benefited
because they get newspapers and magazines at cheaper rates because of increased
circulation of their publications.
5. Lastly, advertising also encourages commercial art.

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 TYPES OF ADVERTISING
Advertising can be classified according to types. The principle means of classification
are:

a) By geographical spread such as national, regional and local.

b) By target group, such as consumer advertising, industrial advertising or trade

advertising.

c) By type of impact such as:

i) Primary demand or selective demand advertising

ii) Direct or indirect action advertising
iii) Institutional advertising.

Other Special advertising.

Geographical Spread based Advertising:

On the basis of geographical spread, advertising can be classified as follows:

National Advertising:

Some manufacturers may think that their target is the entire country. They select
media with a countryside base. Generally large firms belong to this category. Among
them are Hindustan Lever, Brooke Bond, Escorts, etc.

Local Advertising:

Small firms may like to restrict their business to state or regional level. Some firms
first localize their marketing efforts and once success has been achieved, they spread
out to wider horizons. A classic example is Nirma Washing Powder, which initially
was sold only in Gujrat and subsequently entered the other markets.

Sometimes large firms may also go in for local advertising for example when they
undertake pre-testing of the product, especially consumer product in selected areas
before embarking promotional campaign on a national level.

Global Advertising:

Multinational firms treat the world as their market. Firms such as National, IBM, LG
advertise globally, for example in periodicals like Times, Reader’s Digest, etc. these
firms use their universal appeals.

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 MEDIA OF ADVERTISEMENT

A manufacturer or a trader can make use of the following advertising media to spread
his message to the people : (i) Press advertising, (ii) Outdoor advertising, (iii) Film
advertising, (iv) Radio advertising (v) Television advertising, (vi) Direct mail advertising,
. (vii) Display advertising, and (viii) Specialty advertising. The merits and demerits of
these media are discussed below.

Press Advertising or, Print Media

Newspaper Advertising.

Magazine Advertising.

Outdoor Advertising

Film Advertising

Television Advertising

Direct Mail Advertising

Window Display

Specialty Advertising

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 CHOICE OF ADVERTISING MEDIA
For the purpose of choosing the appropriate medium or media or advertisement,
following factors should be taken into consideration:

(i) Nature of Product. Nature of the product to be advertised has an important

'bearing on the medium of advertisement. Products should be classified into two broad
categories, namely, consumer goods and industrial goods. Consumer goods can be
advertised in newspapers, magazines, radio and television and through outdoor
displays. But industrial goods can be advertised profitably in the specialized trade,
technical and professional journals.

(ii) Nature of Market. Nature and extent of market can be determined by various
factors like geographical region, size of population and purchasing power of the
population. The market may be either local or national. Film advertising and outdoor
advertising are more suitable for local products. Newspapers are the most suitable for
advertising products which can be sold throughout the country.

(iii) Objectives of Advertising. The objective of the advertising programmed is very

important to determine the choice of advertising media. The objectives may be introduction
of new product, to increase demand of an existing product, or to avoid competition by the
rivals. If advertising is not to be carried on a mass scale to have big impact in the
short and long run, a combination of various advertising media may be chosen.
Sometimes advertisements are inserted in the newspapers and magazines to complement
the - readers in order to enhance the goodwill of the advertiser.

(iv) Circulation of Media. If the media have greater circulation, the message of
the .advertiser will reach a larger number of people. It may be mentioned that
newspapers have the widest circulation, but other media have limited and selective
circulation.

44
 (v) Financial Consideration. The cost of advertising media is an important
consideration and it should be considered in relation to (a) the amount of funds
available, and (b) the circulation of the media. In the first instance, the amount of funds
available may dictate the choice of a medium or a combination of media of advertisement,
and secondly, the advertiser should try to develop some relationship between the co 4 of
the medium and its circulation. The cost-benefit analysis will enable the advertiser to take
right decision in regard to selection of the advertising media.

(vi) Type of Audience. If the message is to be conveyed to illiterate or less

literate people, radio, television and cinema advertisement will serve the purpose in a
better way. Newspapers, magazines, displays and direct mail may be used to convey
the message to the educated people since different languages are popular in
different regions, advertisements in different languages may be given to popularize the
product.

(vii) Life of Advertisement. Outdoor display and magazines and direct mail have
sufficiently longer life but the life of newspaper, radio and television advertisements is very
short unless they are repeated regularly. Therefore, the advertiser should also take into
consideration the duration for which he wants to create the impression in the minds of life
prospective customers.

(viii) Media used by Competitors. The choice of advertising media also depends upon the
media used by the competitors. If a product is being advertised in a newspaper, the
producers of its substitutes will find it better to advertise them in the same newspaper.
This practice has become more common these days in order to fight competition in the
market.

Advertising is heavily skewed towards newspapers and television which are relatively
much larger businesses in India. A combination of various data sources generates the
following from India's total Rs95 billion (US$ 2.1 billion) advertising expenditure:

45
In a number of categories, the split is erring towards television with major companies
such as IBM for example switching $5 million, a substantial chunk of its India
advertising budget, into the increasingly competitive and business oriented TV sector

46
 TRIANGLE OF ADVERTISING
The process of advertising communication may be succinctly expressed in the form of a
diagram, the eternal triangle of communication.
The advertiser’s objective is to communicate with the audience in order to obtain the
desired results arising from the responses of the audience.

REACH

MEDIA

MESSAGE EXPOSURE

Opportunity to see-outs
Creativity

ADVERTISER AUDIENCE
RESPONSE

DISTRACTION
RESOUCES
Research

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 The Advertisers:
• The Audience:
• Media:
• Dynamic Concept:
• Choice and Competition:
• Advertising Agencies:
• Matching Message with the Media:
• Distraction for the Audience:

Resource Constraint:
Completing the cycle of communication, it is obvious that advertisers have their own
resource constraints, both of funds as well as time. They can only afford to spend a
certain amount of money on advertising in accordance with their marketing and
advertising appropriation- the preparation of advertisements needs time. Finally, the
feedback from the audience is an important input for the advertisers.

ACTIVE PARTICIPANTS IN ADVERTISING:

There are three active participants (called the three sides) in advertising- the advertiser,
the advertising agency and the media. A fourth side is PR because PR and advertising
operate in harmony. All these four sides are supported by fifth side ancillary services and
sixth side is free-lance services.

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 The six sides of advertising are discussed below:
• The Advertisers:
He can be a manufacturer, a retailer, a distributor. The advertiser may be a public
sector undertaking or a popular government. It could be government department or
official. It can also be a voluntary organization.

• The Advertising Agencies:

These agencies accept the brief from the advertiser, and do a campaign on his behalf.
They render useful services like MR, TV film production, positioning, launching of
products, packaging, branding, etc.

They deal with media and collect their commission from media. The agency can be an
integrated large agency like Lintas, MICA, McCann –Erickson or a medium sized
service industry or a technical specialist agency or a ‘hot-shop’ group of experts who
engage services when needed. These agencies have formed associations.

• Media Owners:
These are the publishing houses that bring out the newspaper and magazines. They
also bring out weeklies and tabloids. There are also special magazines. There are
directories, time-tables and year-books. These all sell space. We have broadcast
media- radio, TV and films. There are outdoor and transit advertising contractors.
There are organizers of exhibitions like Trade Fair Authority of India.

• PR Consultants:
These are usually found in PR department of advertising agencies or they operate
independently. They have got an Association: Public Relations Society of India.

• Ancillary Services:

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 These are needed to produce/ create advertisements. A whole range of services like
the studio service, photographic service, printing service, gift-item producers, etc fall
into this category.

• Free Lancers:
They are generally professionals of a good track record. They may be copywriters,
jingle singers, radio announcers, artists, visualizes, technical writers, etc.

ADVERTISNG AGENCY:

Without any regard to whom or what we are, all of us are consumers. In this common role
we generally do not give much thought to the individuals and organizations involved in
the detailed and complex process that leads to the creation of clever advertising that
capture our attention and influence our choices. Some important players in the systems
are clients or advertisers, advertising agency, media organizations, marketing
communication specialist organizations and providers of collateral services.

Advertisers (clients) are the key participants in this process. They are the key participants
in this process. They are the once who want to communicate with the target audience
about products, services, ideas, or causes with persuasive intent. They also provide the
necessary funds that go into media buying and creating the advertisements. Clients have
the major responsibility of developing the marketing programmed and making the final
decisions regarding advertising and other promotional aspects. The company may handle
most of these functions through its advertising department or by setting up an in-house
advertising agency.

For most companies, advertising, planning and execution is handled by an outside

advertising agency. A has given the definition:

50
“Advertising Agency is an independent business, composed of creative and business
people who develop, prepare and place advertising media for sellers seeking to find
customers from their goods or services”.

In the present scenario, more and more advertising agencies are acting as partners with
clients and assuming more responsibilities for developing the marketing and promotional
program. Media organizations perform a vital function in the advertising communication
process by providing information or entertainment to their audiences and thereby provide
an environment for the advertiser’s message. The media must possess those attributes that
attract audiences so that the clients and their changing want to buy space or time with
them to reach their target markets with advertising message in a cost effective manner.
Another group of participants involve various service specialists and providers of
collateral services. They include direct response agencies, sales promotion agencies,
marketing research providers, package design specialists, video production houses,
printers and photographers, etc.

ADVERTISERS (client organization)

ADVERTING AGENCIES MEDIA

ORGANISATION

VARIOUS SERVICE SPECIALISTS AND COLLATERAL

SERVICES

A modern advertising agency offers specialized knowledge, skills and experience that are
required to produce an effective adverting campaign. It has writers, artists, media experts,
media experts, researchers, television producers, a/c executives, etc.

51
These specialists work together to understand fully the advertiser’s requirements of
advertisement campaign, and develop suitable adverting plans and strategies. By creating
advertisements and delivering them through appropriate media, the agencies implement
advertising plans and strategies. A modern advertising agency is the fountain-head from
which flow most of the advertisements we see and hear in the national and regional
media. An agency represents the core of the advertising profession.

CELEBRITY ADVERTISING

Cyber Media Research recently conducted celebrity research. The primary research
objective was to establish the effectiveness of using celebrities in advertisements. The
study was conducted in three stages. In the first two stages, the focus was maintained on
the four metros--Mumbai, Delhi, Kolkata and Chennai. In stage three, the research
extended to Meerut, Bardhaman, Nasik and Coimbatore.

The objective behind this was to cover four small cities in addition to the four metros and
thereby provide a holistic perspective on the subject.

In stage two, the sample size was pegged at 480 respondents across four cities -120
respondents per city. And, in stage three, the sample size was increased to 3,372 across
eight cities.

Interestingly, the study reveals that there is a clear mismatch between the way celebrities
are perceived by the advertisers and by the consumers. The advertisers look at credibility,
looks, aggression, celebrity-brand fit, cost of signing a celebrity and youthfulness.
Consumers on the other hand look for attributes like high energy levels, mannerism,
confidence, value-consciousness, politeness, smartness etc.

Let's now look at some of the interesting findings of the study:

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 ADVERTISING BUDGET

AN OVERVIEW

According to Kellogg’s North American President, Thomas Knowlton, cuts in

advertisement and promotion spending will be a short term strategy. He further said, “We
can’t afford advertisement that isn’t working. We are going to be more demanding with
our brands, and only proven ad campaigns will get full funding.” In dev the ad plan,
object setting is important and may be significantly influenced by the limitations of the
budget. irrespective of whether a company is multinational, or national, a huge company,
or a medium sized company, budget decision are critical, as the money spent on
advertisement may mean the difference between success and failure.

Budget allocated to advertisement is considered as expense cutting into profits, rather

than investment. For this reason when a firm faces rough times, the axe falls on
advertising expenditure. Advertising objects are totally separate from marketing object
and the focus is on communication objectives that contribute towards accomplishing the
marketing objectives. Communication objectives such as awareness, interest, attitude etc.
may serve as the basis of advertising programmed as these factors may lead to sales.
Advertisement is just one of the many factors that may influence sales and hence
assuming that advertisement alone determines sales, is erroneous. Besides other
marketing mix elements, environmental factors may also affect sales.

Most advertisers support one of the two models of advertisement to the sales response
function. The concave downward function means that as the amount of advertisement
increases, its incremental value decreases showing advertisement follow the micro-
economic law of diminishing returns. This explains that the customer having the greatest
buying potential will most likely act just after the initial exposures others who are less
likely to purchase the product are not predisposed to be affected by increased
advertisement because exposure to more advertisement will hardly furnish strong new
information to influence their decision. According to this model, the advertisement

55
effects start diminishing quickly. The model suggests that lessen advertised money may
be needed to produce optimal sales effect.

Many promotion managers subscribe to the S-shaped response function. According to

this model, initial expenditure on advertising has very little influence on sales. After a
certain budget level has been spend, advertising efforts start having effect and from here
on increments in advertising expenditure4s lead to the increased sales. These sales gains
continue only up to a point and after that there are little or no gains with additional
expenditures. This model suggests that very small advertising budgets are unlikely to
have any meaningful impact on sales and also huge advertising expenditure do not
necessarily means definite incremental sales.
Both these curves suggests that advertisers would attempt to operate with experience in
the area of rising curves where maximum return on monetary expenditures can be
accomplished weaknesses in these models restrict there use for the practitioners.

How Much To Spend??

Advertising expenditure decision is often arbitrary and at times merely a guess. That is
why we find gross inadequacy of funds at one extreme and wanton extravagance at the
other. For many companies, advertising is an extremely vital force in the success of their
marketing endeavors.

Not only by business, but even by business and social welfare organizations, the useful
role of advertising has been recognized. Advertising is a powerful marketing tool; but it is
highly expensive too. Companies spend huge sums of money on advertising alone.

In India, there are more than a dozen such companies whose advertising expenditure runs
into few millions. The expenditure of some MNCs runs into more than half a million
dollars. But advertising expenditure allocation and control do not appear to have become
noticeably more rational and less intuitive. Jay Forester commented way back in 1959
that there might not be another function in industry and business on which the

56
management based so much expenditure on such scanty knowledge about the returns.
More than three decades has passed since then; but this seems to be true now, as it was in
the past.

In any company, for a given marketing programmed, an adequate advertising input is

necessary. In other words, a required level of advertising support is needed. When media
choices are made, the size of the advertising expenditure available often as a limiting
factor. This is so because a major part of the expenditure in advertising is on the purchase
of media time and space. A meticulously prepared media plan can alone achieve the
advertising objective of appropriately supporting the overall marketing efforts. For this
purpose, it is essential to purchase media time and space when they are needed. This can
be achieved with ease if proper planning is done for advertising expenditure. In other
world, advertising expenditure requires good planning.

Budgeting is a form of plan; and, in the very nature of budgeting, the advertiser is
protected from unbalanced situation highlighted above, wherein he may find that he has
either spend more or less than he should have. While preparing the advertisement budget,
he is compelled to consider how much he will spend on each of his products or product-
line, each of his markets, on each of the advertising media, and on what time schedule
during the year.
Budgeting Is A Plan:

Because the advertising budget is a plan for the company’s future advertising, it can make
a useful contribution to a profitable operation. It provides a programmed of the best
assortment of types of advertising to be undertaken along with its timetable and
frequency. In addition of its planning function, the budget also serves as a control of

Advertising expenditure. Advertising expenditure is no longer expenditure; it is now

widely considered to be an investment. More and more firms are now thinking of
advertising as an investment because of the return likely to result in future from increased
sales through advertising. Like any other investment in a capital asset, an effective

57
advertising campaign may increase the future sales, though, in the concept of accounting,
it is still considered to be a business expense. Advertisement is a capital investment rather
than a current expenditure. While we often hear advertisers groaning, that they are
compelled to advertise because their competitors spend large sums on it.

They consider “Advertising is a Necessary Evil.”

Dr. David Ogilvy, a well-known expert in the profession, once said: “Every
advertisement is a long-term investment in the image of a brand.”

Advertising Budget Process:

(How to Prevent Adverting from Becoming a Bane)

Since advertising is an investment, it should be budgeted like any other investment. The
preparation of an advertising budget generally determined the size of advertising
expenditure. How much should be spend on advertising? To determine this is the purpose
of the advertising budget. However, this is grossly misleading, for there are no scientific
methods of preparing budgets. Only customary, arbitrary and conventional practices can
be followed; but these do not make the process a budgeting.

A “budget” is a forward plan of any activity expressed in terms of rupees, and budgeting
is the process of this planning. Therefore, the advertising budget is the translation of an
advertising plan into rupees; and this fact informs the top management of the amount of
the proposed advertising expenditures and it’s apportioned on the various advertising
activities of the company. The advertising budget thus serves as a decision making tool
for the top-management, in addition to its control function of such expenses.

The advertising budget is thus prepared by the advertising manager of the company.
However, ad agencies do help him in this planning work. Since advertising is employed
to increase sales, the budget must be compatible with the sales goals. Besides an increase

58
 in sales, advertising should be adequate enough for the new product to make a successful
entry in the chosen segment markets.
During the execution of the budget, the advertising manager has to exercise monitoring
control so that the funds that have been allocated may be spent in the most economical
manner. Moreover, whenever there are critical changes in the market, necessitating an
adjustment in the advertising support, the necessary modifications should be effected in
the advertising budget. This is why advertising budgets should be flexible and provision
made for the contingency account to face up to the critical changes in the marketing
environment. Many organizations consider advertising expenses a part of their total sales
expenses, and plan for advertising expenses accordingly, while others treat advertising a
separate corporate function, and budget for it as a separate functions in the organization.

Hence broadly advertising budget is made on the lines of the question below:

• How much would be the “advertising input” in order to achieve agreed marketing
objective?

• How much would be the “amount of money” one can afford to spend on
advertising and still achieve the agreed profit objectives?

• How much would be the apportionment of the total advertising expenses on each
individual product or product group?

• How much would be the advertising budget allocation on new products?

59
60
 ADVERTISING BUDGET

SALES PROMOTION
CONSUMER
ADVERTISNG PUBLIC RELATIONS
PRINT N RADIO
HOUSEORGAN ANNUAL
REPORT
TV
OUTDOOR POP SALES AIDS
COSUMER
MAGAZINE
PACKAGING PREMIUM
NEWSPAPER
EXHIBITS
TRADE
PAPERS
CATALOGUES, EDUCATIONAL AND
MANUALS, PUBLIC SERVICE MAIL.
ETC.

61
 RESEARCH METHODOLOGY
COLLECTION OF DATA

The research “Advertising is a necessary evil” is a market research supported by

secondary data.
The primary data is collected through market survey done through questionnaire, which
were personally given to customers and were filled by them. The secondary data is
collected from various books, journals and articles in magazines and from different
websites.

Sample:
Area covered:
The area covered under the survey is New Delhi and Ghaziabad.
Sample size:
The total sample size of customers surveyed is 206.
Sampling:
The sampling of the customers was based on Simple Random Sampling.

Instruments used:

1. Questionnaire:
A questionnaire consists of questions presented to respondents for their answers. Due
to its flexibility, it’s by far the most common instrument used to collect the primary
data. Hence in my survey, questionnaire is used to collect primary data from
customers and dealers. The questionnaire consists of dictomous as well as multiple-
choice and closed-ended questions.

62
2. Personal Interview:
The respondents were contacted and data were collected on the basis of Personal
Interview, which is the most versatile method of contact. With the help of this
method, a closer face-to-face interview and response were recorded. The form of
interview used in case of customers was intercept interview.

63
 ANALYSIS OF DATA

All the observations are based upon the primary data collected through questionnaire
filled by the customers. The customer’s questionnaire is attached with it and as we can
see it consists of 9 questions relating to the need and usefulness of advertising, last is the
personal detail area for knowing respondents particulars. The questionnaire consists
mainly of dictomous and closed-ended questions where ranking is required in two
questions.

The observations are dealth question wise from question 1 to question 9, which are as
follows:

• Question 1 is a dictomous question aims to calibrate the percentage of customers

who are advertisement savvy and take interest in them.

OBSERVATION

OPTIONS RESPONSE IN FAVOUR %AGE

YES 198 96%

NO 8 4

TOTAL 206 100

64
 NO O F CUST O M ERS T HAT LIKE
ADVERT ISEM ENT S

150%
PERCENTAGE

96%
100%

50%
4%
0%
YE S NO
OP T ION S

N O OF C U S T OM E R S T H AT L IK E
AD V E R T IS E M E N T S

4%

YE S
NO

96%

65
Question 2 is again a dictomous question that aims to find out or calibrate the
impact of advertising on customers relating to product authencity.

OBSERVATION:

OPTIONS RESPONSE IN FAVOUR %AGE

YES 91 44
NO 115 56
TOTAL 206 100

NO. OF CUST OM ERS T HAT CAN BUY

UNADVERT ISED PRODUCT
56
60
PERCENTAGE

44
40
20
0
YES NO
OPTIONS

66
N O. OF C U S TOMER S TH AT C AN B U Y
U N AD VE R TISED PR OD U C T

44% YES
56% NO

67
 BENEFITS OF ADVERTISING

Create Awareness
7%
13% Educates about New
33%
Product
Supports Purchase
Decision
20% Illustrates Brand
Image
27% Confirms Product
Quality

68
 • Question 4 is a closed-ended question asked to evaluate the extend of
effectiveness of media in building a product’s image in the market.

OBSERVATION:

OPTIONS RESPONSE IN FAVOUR %AGE

VERY MUCH 80 39
TO SOME EXTEND 97 47
NOT AT ALL 19 9
CAN'T SAY 10 5
TOTAL 206 100

R O L E O F M E D IA
47
50 39
40
PERCENTAGE

30
20 9
10 5
0
V E R Y M U C HT O S O M E N O T A T A L LC A N 'T S A Y
E X TE ND
O P T IO N S

69
 ROLE OF MEDIA

5%
9%
VERY MUCH
39%
TO SOME EXTEND
NOT AT ALL
CAN'T SAY
47%

• Question 5 is a multiple-choice question asked from customers that aims at

finding the most effective media for communicating advertisement to
customers.

OBSERVATION

OPTIONS RESPONSE IN FAVOUR %AGE

OUTDOOR 35 17
PRINT 33 16
TV 175 85
FILM 10 5
RADIO 16 8
DIRECT MAIL 6 3
WINDOW DISPLAY IN SHOPS 31 15
SPECIALITY 4 2

70
 B E S T M E D IA

85
100
50 17 16 5 8 3 15 2
PERCENTAGE

0
O U T D O PO RR IN T T V F IL M R A D IOD IR E C T W M INA ILD OS PW E C IA L IT Y
D IS P L A Y IN
SHO PS
M E D IA T Y P E S

OUTDOOR
BEST MEDIA
10%
2% PRINT
1% 11%
5%
11%
3% TV

FILM
57%

RADIO

DIRECT MAIL

71
 • Question 6 is a closed-ended question that aims at finding out customer’s
approach towards the effectiveness of celebrity advertisements as to know
what is the extend to which these kind of advertising proves useful or makes
difference in customer’s purchasing decision.

OBSERVATION

OPTIONS RESPONSE IN FAVOUR %AGE

VERY MUCH 78 38
TO SOME EXTEND 95 46
NOT AT ALL 12 6
CAN'T SAY 21 10
TOTAL 206 100

C E L E B RIT Y AD V E RT IS ING
46
50 38
PERCENTAGE

40
30
20 6 10
10
0
V E RY M UC H TO S OM E NOT A T A LL C A N'T S A Y
E X TE ND
OP T ION S

72
 C E L E B RIT Y AD V E RT IS ING

V E RY M UC H
10%
6% TO S O M E
38%
E X TE ND
NO T A T A L L

46 % C A N'T S A Y

• Question 7 is a very important dictomous question that aims at finding

customer’s opinion as to whether they also believe in the saying that
advertising is a social waste.

OBSERVATION

OPTIONS RESPONSE IN FAVOUR %AGE

YES 44 21

NO 162 79

TOTAL 206 100

73
 IS AD VER TISN G A SOC IAL W ASTE

PERCENTAGE 100 79
80
60
40 21
20
0
YES NO
O PT IONS

IS A D V E R T IS N G A S O C IA L W A S T E

21%

YE S
NO

79%

74
 D IS A D V A N T A G E O F A D V E R T IS IN G
6
5
RESPONSE IN
4
FAVOUR
3
2
1
0
M ultip lie s Inc re a s e s C re a te U nd e rm ine sC o rrup ts
N e e d s P ro d uc t B ra nd E thic a l Yo ung s te rs
C ost M o no p o ly V a lu e s
D IS A D V A N T A G E S

DISADVANTAGE OF ADVERTISING

Multiplies Needs
13%
27% Increases Product
Cost
20% Create Brand
Monopoly
Undermines Ethical
7% Values
33% Corrupts Youngsters

75
 • Question 9 is a dictomous question that is asked at last i.e. after familiarizing
the customer’s with the advantages and disadvantages of customers and
subtly know whether benefits of advertising outweighs its disadvantages and
hence advertising should be continued or not.

OBSERVATION

OPTIONS RESPONSE IN FAVOUR %AGE

YES 190 92

NO 16 8

TOTAL 206 100

SHOULD ADVERTISING BE
CONTINUED?
92
PERCENTAGE

100

50
8
0
YES NO
OPTIONS

76
 SHOULD ADVERTISING BE
CONTINUED?

8%

YES
NO
92%

PERSONAL DETAILS

• AGE

OBSERVATION

AGE RESPONSE IN FAVOUR %AGE

UPTO 18 14 7
19-25 127 62
25-35 45 22
ABOVE 35 20 9
TOTAL 206 100

77
 AGE GROUP

3%
UPTO 18
31% 19-25
50% 25-35
ABOVE 35
TOTAL
5% 11%

• SEX

OBSERVATION

SEX RESPONSE IN FAVOUR %AGE

MALES 103 50

FEMALES 103 50

TOTAL 206 100

78
 SEX

MALES
50% 50%
FEMALES

• OCCUPATION:

OBSERVATION

OCCUPATION RESPONSE IN FAVOUR %AGE

GOVERNMENT SERVICES 6 3
PRIVATE SERVICE 66 32
BUSSINESS 33 16
STUDENT 91 44
OTHERS 10 5
TOTAL 206 100

79
 OCCUPATION
GOVERNMENT
SERVICES
3% PRIVATE SERVICE
5%
32% BUSSINESS
44%
STUDENT
16%
OTHERS

80
 INTERPRETATION
• Today advertisements fill our world right from morning newspapers to night news
on Television and hence we have got used to them. The effect is that if we don’t
see any ads on TV during program, we feel that something is missing, especially
when we are in mood to buy something and want the help of different ads to make
up our mind. Hence we can say that advertisements have become a “Necessity” in
our lives which is shown by 96% of respondents who like advertisement and are
advertisement savvy. Where some of them read newspaper, magazines and
watch TV only to see them.

• When we talk about advertising effectiveness we can say that not many but
advertised products are definitely associated with Brand- quality, performance,
satisfactory services, reliability, etc. by customers and hence 56% customers do
not favor buying unadvertised product.

• Now, regarding the most common benefits felt by maximum customers is that it is
best suited for “Creating Awareness” (Ranked 1) about the product to
consumers, it helps the consumer to know how many choices it has in market
regarding that product and their prices, so that cannot be exploited by the sellers.
The next benefits felt by customers in line are that advertising “Creates
Awareness Regarding New Product” (Ranked 2); the new products that
ultimately satisfies customer’s needs by entering into the market and its
“Supports Their Purchasing Decision” (Ranked 3) by increasing the utility of
the existing product with the customer and adds to the amount of satisfaction
which they are already enjoying.

• Today media plays an important role in making and breaking the image of a
company’s product. Over the past 15 years the evaluation of media has followed
all the standard Darwinian rules: Natural Selection, the survival of the fittest and
the need to evolve for adapting to the changes in the environment. Weak media
has gotten weaker, whilst the strong ones have continued to get stronger and
bigger. But as the connected consumers of today have far more sources of
information about the products and services they want to buy, and advertising is
only one among them. Companies today are figuring out a hundred different ways
of touching their consumers and advertising is only one of them, hence 47% of
respondents believe that media plays its role in changing customer’s perception
regarding the product only to “Some Extend”.

• We all know that effective advertising is possible only if suitable media are
available and here the appropriateness of media used vis-à-vis the target audience
and reach are of critical importance. Hence the maximum customer’s i.e. 85% of
them believe that TV is the most effective media to communicate advertisement

81
 after which comes Outdoor (17%), Print (16%) and Window Display in Shops
(15%).

• now as celebrity endorsement and advertising for many products have gained
popularity and has become a culture in advertising with Big b, Shah Rukh and
pretty Priety Zinta are firing the screens and trying to charm the Indian customers,
its important to know, what maximum customers that is 46% have to say about it
and they say that its effective only to “Some Extend” while second bigger lot i.e.
38% believes it is “Very Much” effective and useful in luring purchases and
brand loyalty.

• We usually state that “Advertising Is A Social Waste” but maximum

respondents i.e. 79% do not support this concept and are of the view that
despite its drawbacks, advertising is a necessary marketing activity in the present
business environment benefiting customers, manufacturers and society as a whole,
if it follows marketing acumen that believed in spending less and earning more
and not the other way round. Hence some believe that advertising expenditure is
proportional to the company’s marketing incompetence.

• Huge percentage about 92% respondents after accentuating the advertising

effectiveness believes that despite the drawbacks of advertising which stands no
where as compared to the benefits provided by them to the manufacturer and
customers, says that advertising should be continued; as it is not a “Necessary
Evil” but it’s a “Necessary Boon” for customers who get benefited by
advertising in a big way.

82
 LIMITATION

1. The first problem I faced is in getting the co-operation of the customers. Many of
the respondents I approached did not agree to the need and utility of surveys and
hence did not agree to provide me with information.

2. The second problem faced by me was in getting the required secondary data,
sorting them, photocopying and organizing them according to my need.

3. In my stipulated duration, I was unable to do a detailed study of the project.

4. As the sample size of the survey was so small and comprise of only 206
customers, the survey may be biased, as it’s not representing the whole Delhi,
Noida and Ghaziabad.

83
 CONCLUSION
At least Rs. 50 cores are spends by marketers in India everyday to try and
communicate to the buyers. Every day not only one or two, we are exposed to at least
thousands of commercial messages in the 24 hours and we do what ignore them all
except few.

The sad and secret fact of advertising is that a very large amount of advertising is a
complete waste of money. The target audience never notices. And if it is noticed it
doesn’t care two bits. The even sadder fact is that people in the business already know
this. The space-seller does this. The advertising agencies do. Many clients always feel
this way. So all these make us believe that advertising is an evil and social wastes
with large amount almost 50% of company’s money spend on advertising. But
advertising is a capital investment rather than a current expenditure if its spend in a
planned way as it fructify like investments later in form of increased sales and brand
loyalty.

Advertising is so widely persuasive that pertinent question arises: is it really

necessary? There are equally strong opinions for and against advertising. However
here seems to be perfect agreement about the specific advertisement appearing in
classified columns (matrimonial, accommodation, employment, etc) such ads offer
awareness of a wide choices. Advertising is also necessary to communicate public
services such as promotion of family planning, fighting social evils, forest and
wildlife conservation, etc.

Advertising still has its drawbacks for the customers, like it multiplies needs of
customer and provokes impulse purchases. It costs is added to the cost of the product
increasing its prices. It further leads to monopoly of certain brands at the expense of
other good small brands. Today all advertising are not creative and hence are ignored
by them. Some are unethical as they uses indecent languages and photographs to
advertisements that are highly objectionable to the society and advertising of all types
of products like cigarettes, liquor, condoms, etc corrupts the minds of youngsters.

Hence with the help of this research I am able to conclude that despite the
disadvantage of advertising, it is necessary marketing activity in the present business
environment. It is not a social waste. It enables a manufacturer to introduce his
products in the market and sell them. Advertising helps in educating the people
regarding new uses of various products. It also strengthens the freedom of choice of
the people. It sustains the press and gives employment to people by informing them
about the availability of the products.

84
 SUGGESTIONS

• A company should never stop investing in advertising because it’s seen that
those companies that had continued to spend in advertising, even if market was down,
bounced back faster than others by their ilk and reap the benefits. Hence the
manufacturer or the advertisers should also avoid wasteful expenditure within limits.

• To reach across the country, the viable and effective option is TV. In this
context, the resurgence of Doordarshan is refreshing that has increased its revenues to
10,000 cores from mere advertising. Further the arrival of multiplexes offer new
opportunity to attract urban eyeballs. The lobbies are great spots to entertain potential
customers with product display. Consumers waiting to see movies would give their
attention and the brand recall of the product displayed in these places would be
significant. Many of markets can run integrated marketing programs on these media.

• As regard the buying decisions, women wield more power than it’s perceived.
It’s true that nothing enters the house without the lady of the house’s nod. She even
gathers support from children. The marketers should design and think a future product
from women’s prospective. The communication should be weaved around women in
a way that convinces them.

• In order to save themselves from ill-effect such as use of unethical means of

advertising the customer should satisfy themselves about the claims made by a
producer before they purchase their product according to the law of “Caveat Emptor”.

• Now, celebrity advertising may be in trend but it effects customer only to

some extend, so the company’s should make some stars ‘twinkle’ here and there ,
now and then that means, we can show some upcoming star in cricket or from
bollywood from time-to-time like Pepsi does. Celebrity endorsement or brand
ambassador doesn’t always work as it did for Dabur and it only burdens advertising
expenses. As an obvious corollary, the less differentiate company’s products, the
more company has to spend to market it. If the company is in me-too product then it
has to pay huge amounts to Sachin or Sehwag to get the ‘Janta’ use it but if the
product provides something unique then company has to spend far less.

85
 BIBLIOGRAPHY
BOOKS

• Marketing Management by Phillip Kottlar.

• Marketing Management by T.N.Chabbra.
• Foundation of Advertising; Theory and Practices by Chunawala
and Sethia. (Himalaya Publishing House)
• Advertising Management by (Aaker, David)
• Advertising Management by Manendra Mohan (TMH Publishing
Co. Ltd.)
• Marketing Research by B.C.Goel.

MAGAZINES

• Business World
• Business Today
• Pitch- The Marketing, Advertising and Media Review.

WEBSITES

• Google search . com

• Search. com
• MSN search . com
• exchange 4 media .com

86
 QUESTIONNAIRE

CUSTOMER’S QUESTIONNAIRE
------------------------------------------------------------------------------------------------------------
1) Do you like advertisements? Yes/No

2) Can you buy a product which is not much advertised? Yes/No

3) How advertising benefits you as a customer?

(Rank them)
 Create awareness
 Educate about new product & its uses.
 Supports your purchase decision
 Illustrates Company’s brand image
 Conforms product quality

4) Do different media play role in changing customer’s perception regarding

the product?
Very much/ to such extent/ Not at all/ can’t say.

5) In your opinion which is the best media to communicate advertisement?

 Outdoor (posters/bill boards/vehicle)
 Print
 TV
 Film
 Radio
 Direct mail
 Window display in shops
 Specialty(dairies/calendars)

87
 6) Do you think celebrity advertisement is working or useful?
Very much/ to such extent/ Not at all/ can’t say.

7) Do you think advertising is a social waste? Yes/No

8) What is the disadvantage of advertising in your life?

(Rank them)
 It multiplies your need
 Amount spend on advertising increases your product
 It create brand monopoly
 Most of them undermines ethical or esthetic values
 Corrupts the mind of youngsters.

Do you think advertising should be continued?

Yes/No

Personal Details:
Name:

Age (years): Upton 18/19-25/26-35/above 35.

Sex: Male/Female
Occupation: Government Service/Private Services/Business/Student/others.

88