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DECLARATION

I hereby declare that the research work embodied in this dissertation


entitled “A study on Impact of Advertising Strategies of Nokia
Cellular Phones” has been carried out by me under the guidance and
supervision of Mr.SRINIVASAN, Professor (Internal Guide), M.P.Birla
Institute of Management, Bangalore.
I also declare that this dissertation has not been submitted to any
other university/ Institution for the award of any other Degree/Diploma.

Place: Bangalore
Date: 17th June 2005

(VIJAYA KUMAR N C)
Reg No: 03XQCM6118
Certificate
I hereby certify that this dissertation is an offshoot of the research work
undertaken and completed by Mr.Vijaya Kumar N C under the guidance
and supervision of Mr. B.Srinivasan, Professor, (Internal Guide) MPBIM,
Associate Bharatiya Vidya Bhavan, Bangalore.

Place: Bangalore
Date: (Dr. N.S. Malavalli)

Principal MPBIM,
Bangalore
ACKNOWLEDGEMENT
I sincerely thank Dr. Nagesh Malavalli (Principal), M.P.Birla Institute of
Management, Bangalore for granting me the permission to do this
Research Project. I would like to express my immense gratitude to
Mr.B.Srinivasan, Professor, (Internal Guide), M.P.Birla Institute of
Management, Associate Bharatiya Vidya Bhavan, Bangalore for his
guidance, continuous encouragement and valuable suggestions at
every stage of the project.
I would like to express my indebtedness to Prof. Santhanam (Professor),
M.P.Birla Institute of Management, Associate Bharatiya Vidya Bhavan,
Bangalore for his valuable suggestions and encouragement which are
imperative for the completion of this project.
I extend my deep sense of gratitude to all my family and friends who
have directly or indirectly encouraged and helped me to complete my
project successfully.
I would like to extend my thanks to all the unseen hands that have
made this project possible.
Place: Bangalore
Date: 17th June 2005 (Vijaya Kumar N C)
EXECUTIVE SUMMARY
This report titled “IMPACT OF ADVERTISING STRATEGIES OF NOKIA
CELLULAR PHONES” is submitted in partial fulfillment of the
requirements for the degree of Master of Business Administration of
Bangalore University.
This study is an attempt to understand the impact of advertising of
Nokia Cellular Phones. It also tries to evaluate the advertising
effectiveness in establishing brand patronage among the viewers.
The objective of this study is To analyze the advertising effectiveness
on consumers of Nokia Cellular Phones, to analyze the different
medium through which the advertisement reaches maximum number
of people in the market, to analyze the strategies that the company
should adopt such that the viewers turn into consumers, to know the
present status of the competitors of Nokia Cellular Phones in terms of
advertisement. The survey was conducted among the college students
because the market for cellular phones is huge. Questionnaire were
prepared and distributed to get the suggestions about the
effectiveness of advertisement of Nokia Cellular Phones. By the survey,
we came to know about the various media that has to be used greater
number of people in the market and the strategies that has to be used
for making the advertisement more effective when compared to its
competitors.
From the conclusion of this study we can come to the know what
strategies can be adopted such that the advertisement of Nokia
Cellular phones can be made more efficient when compared to their
competitors. The medium of advertisement that has to hire through
which we can reach maximum number of people. The style, word and
tone that has to be used in the advertisement that attracts more
number of people. The type of feeling that is created by the
advertisement and the strategies to adopt that attract the people
toward those feelings.
STATEMENT OF THE PROBLEM

“TO STUDY THE IMPACT OF THE ADVERTISEMENT STRATEGIES


OF NOKIA CELLULAR PHONES.”

In this market which is full of competitors, we would like to know the


strategies that help us to beat our competitors. This study helps us to
know how we can over come our competitors with regard to
advertisement.

OBJECTIVES OF THE STUDY:

1. To analyze the advertising effectiveness on consumers of Nokia


Cellular Phones.
2. To analyze the different medium through which the advertisement
reaches maximum number of people in the market.
3. To analyze the strategies that the company should adopt to turn
viewers into consumers.
4. To know the present status of the competitors of Nokia Cellular
Phones in terms of advertisement.
5. To analyze what the viewers expect from the advertisement in
present generation.

SCOPE OF THE STUDY:

The study is conducted with respect to Nokia Cellular Phones. Due to


time and resource constraints, this study is focused on College
Students. This study helps us to know how we can over come our
competitors with regard to advertisement.

OPERATIONAL DEFINITIONS:
The definitions committee of the American Marketing Association has
defined advertising as, “Any paid form of non-personal presentation of
idea, goods or service by an identified sponsor.”

NOKIA
From its inception, Nokia was in the communications business as a
manufacturer of paper- the original communications medium. Then
came technology with the founding of the Finnish Rubber Works at the
turn of the 20th century.
Rubber and Associated Chemicals were leading edge technologies at
that time. Another major technological change was the expansion of
electricity into homes and factories which led to the establishment of
the Finnish Cable Works in 1912 and, quite naturally, to the
manufacture of Cables for the telegraph industry and to support that
new fagled device – the telephone.
After operating for 50 years, an Electronics Department was set up at
the Cable Works in 1960 and this paved the way for a new era in
telecommunications. Nokia Corporation was formed in 1967 by the
merger of Nokia company – the original paper – making business – with
the Finnish Rubber Works and Finnish Cable Works.
Design has always been important at Nokia and today’s mobile phones
are regarded as a benchmark for others to follow. Take, for example,
multi-coloured, clip-on facias which turned mobiles into a fashion item
overnight.
But Nokia has always thought like that and back in the fashion
conscious 1960’s when one branch of the corporation was a major
rubber manufacturer, it hit on the idea of making brightly coloured
rubber boots at a time when boots followed the Henry Ford principle –
you could have any colour, so long as it was black!
The 60’s, however, were more important as the start of Nokia’s entry
into the telecommunications market. A radio telephone was developed
in 1963 followed, in 1965, by data modems – long before such items
were even heard of by the general public.
In the 1980’s, everyone looked to micro computers as t he next ‘big
thing’ and Nokia was no exception as a major producer of computers,
monitors and T.V. sets. In those days, the prospect of High Definition
T.V., Satellite Connections and text services fuelled the imagination of
the fashion conscious homeowner.
In the background, however, changes were afoot. The world’s first
international cellular mobile telephone network, NMT, was introduced
in Scandinavia in1981 and Nokia made the first car phones for it. True
enough, there were ‘transportable’ mobile phones at the start of the
80’s but they were heavy and huge. Nokia produced the original hand
portable in 1987 and phones have continued to shrink in inverse
proportion to the growth of the market ever since.
It took a technological breakthrough and a change in the political
climate to create the wire-free world people are increasingly
demanding today. The technology was the digital standard, GSM, which
could carry data in addition to high quality voice. In 1987, the political
goal was set to adopt GSM throughout Europe on July 1st 1991. Finland
met the deadline, thanks to Nokia and the operators.
Politics and technology have continued to shape the industry. The 80’s
and 90’s saw widespread deregulation which stimulated competition
and customer expectations. Nokia changed too and in 1992 Jorma
Ollila, then President of Nokia Mobile Phones, was appointed to head
the entire Nokia group. The Corporation divested the non-core
operations and focused on telecommunications in the Digital Age. Few
people in the early 90’s would have thought that ‘going digital’ would
change things so much.
2001 and into the Future
Nokia is harnessing its experience in mobility and networks to generate
a startling vision of the future. Meeting rooms, offices and homes will
be ‘smart’ enough to recognize their human visitors and give them
whatever they want by listening to their requests.
Nokia welcomes change and improvement and can embrace new ideas
at great speed. Such characteristics will never change but, as to the
rest, the story has only just began!
During the past few years Nokia has been actively acquiring companies
with interesting new technologies and competencies, including also
investments in minority positions. All of these acquisitions and
investments were targeted to enhance Nokia’s ability to help create
the mobile world.
During the past few years Nokia has been divesting businesses which
have not been a critical component to our vision of the Mobile World.
This strategy has enabled Nokia to focus on shareholder value by
concentrating on the core competencies and business areas where we
see the most value added and the best growth opportunities.
NOKIA FIRST IN TELECOMMUNICATIONS
The world’s first international cellular mobile telephone network NMT
was opened in Scandinavia in 1981 with Nokia introducing the first car
phones for the network. The world’s first NMT hand portable, the Nokia
cityman was launched in 1987.
Year 2003:
Nokia announce that the world’s first CDMA 2000® 1xEV-DV high
speed packet data phone call was completed at Nokia’s CDMA Product
Creation Centre in San Diego. The call, achieving a peak data rate of
3.09 Mbps, was made between a test set based on a commercially
available Nokia 2285 handset upgraded with a Nokia 1xEV-DV chipset
and a Racal Instruments, Wireless Solutions Group, 1xEV-DV base
station emulator. This chipset is the world’s first to support complete
1xEV-DV Release C functionality.
Year 2004:
Using Nokia’s CDMA Dual -Stack handset, Nokia demonstrated the
Industry’s first Mobile IPv6 call at the 3G World Congress Convention
and Exhibition in November. The demonstration highlighted real-time
streaming video with seamless hand off between two CDMA access
networks using Mobile IPv6.
Nokia announced the Nokia NFC (Near Field Communication) shell, the
latest step in the development of innovative products for mobile
communications, in November. With the Nokia NFC shell on their
phone, consumers will be able to easily access a variety of services
and conveniently exchange information with a sample touch gesture
utilizing NFC technology.
In October Nokia and Telia Sonera Finland successfully conducted the
world’s first EDGE-WCDMA 3G packet data handover in a commercial
network. Achieving a first for the Asia-Pacific region, Nokia, Media Corp
Technologies, M1 and the Media Development Authority of Singapore
jointly showcased a live end-to-end mobile phone TV broadcast over a
DVB-H (Digital Video Broadcast – Handheld) network at the Nokia
Connection event in Singapore.
Nokia and Texas Instruments Incorporated introduced the first pre-
integrated and validated series 60 Reference Implementation based on
TI’s OMAP (TM) processor - powered reference design in February. The
reference implementation is available immediately to series 60
licenses.
Year 2005:
The Nokia 6630 imaging smart phone has as the first device in the
world achieved global GCF 3G WDCMA certification. The certification
was achieved based on the requirements defined by Global
Certification Forum (GCF), an independent industry body which
provides network compliancy requirements and testing for GSM /
WCDMA mobile devices.
SBS Finland’s Kiss FM became the first radio station in the world to
begin Visual Radio Broadcasts. The unique new concept developed by
Nokia offers the listeners the possibility to give feedback and to
participate in programs easier than ever before. Nokia introduced a
new product for secure mobile contactless payments and ticketing. The
world’s first Near Field Communications (NFC) product for payment and
ticketing will be an enhanced version of the already announced Nokia
NFC shell for Nokia 3220 phone.
CELLULAR
A type of wireless communication that is most familiar to mobile
phones users. It’s called ‘Cellular’ because the system uses many base
stations to divide a service area into multiple ‘Cells’. Cellular cells are
transferred from base station to base station as a user travels from cell
to cell.
The basic concept of cellular phones began in 1947, when researchers
looked at crude mobile (Car) phones and realized that by using small
cells (range of service area) with frequency reuse they could increase
the traffic capacity of mobile phones substantially. However at that
time, the technology to do so was nonexistent.
Anything to do with broadcasting and sending a radio or television
message out over the airwaves comes under Federal Communications
Commission (FCC) regulation. A cell phone is a type of two-way radio.
In 1947, AT & T proposed that the FCC allocate a large number of radio
spectrum frequencies so that widespread mobile telephone service
would become feasible and AT & T would have an incentive to research
the new technology. We can partially blame the FCC for the gap
between the initial concept of Cellular Service and its availability to the
public. The FCC decided to limit the amount of frequencies available in
1947, the limits made only twenty-three phones conversations possible
simultaneously in the same service area – not a market incentive for
research. The FCC reconsidered its position in 1968, stating “if the
technology to build a better mobile service works, we will increase the
frequencies allocation, freeing the airwaves for more mobile phones.”
AT & T and BELL labs proposed a cellular system to the FCC of many
small, low-powered, broadcast towers, each covering a ‘Cell’ a few
miles in radius and collectively covering a larger area. Each tower
would use only a few of the total frequencies allocated to the system.
As the phones traveled across the area, cells would be passed from
tower to tower.

WIRELESS STANDARDS
ANALOG SERVICE:
A method of modulating radio signals so that they can carry
information such as voice or data. Analog cellular phones work like a
FM radio. The receiver and transmitter are tuned to the same
frequency, and the voice transmitted is varied within a small band to
create a pattern that the receiver reconstructs, amplifies and sends to
a speaker. The drawback of analog is the limitation on the number of
channels that can be used.
DIGITAL SERVICE:
A method of encoding information using a binary code of 0’s and 1’s.
Most newer wireless phones and networks use digital technology. In
digital, the analog voice signal is converted into binary code and
transmitted as a series of on and off transmissions. One of digitals
drawbacks is that there are three digital wireless technologies, CDMA,
TDMA, and GSM. Phones that work with one technology may not work
on another.
TDMA IS-136 (TIME DIVISION MULTIPLE ACCESS)
It is an update to TDMA IS-54, also called Digital AMPS or D-AMPS.
Released in 1994, TDMA IS-136 uses the frequency bands available to
the wireless network and divides them into time slots with each phone
user having access to one time slot at regular intervals. TDMA IS-136
exists in North America at both the 800 MHz and 1900 MHz bands.
Major US carriers using TDMA and AT & T wireless services, BELL
SOUTH and SOUTH WESTERN BELL.
CDMA IS-95 (CODE DIVISION MULTIPLE ACCESS):
It is based on a form of spread spectrum technology that separates
voice signals by assigning them digital codes within the same broad
spectrum. CDMA type technology was used in military communication
systems because it was resistant to interface from enemy signals.
The Qualcomm Corporation began developing a CDMA wireless system
in the late 1980’s that was accepted as a s tandard in 1993 and went
into a operation by 1996. CDMA also exists at both the 800 MHz and
1900 MHz bands. The major US carriers using CDMA are AIR TOUCH,
BELL ATLANTIC / NYNEX, GTE, PRIMECO and SPRINT PCS.
GSM (GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS):
It is based on an improved version of TDMA technology. In 1982, the
conference of European posts and Telecommunications (CEPT) began
the process of creating a digital cellular standard that would allow
users to roam from country to country in Europe. By 1987, the GSM
standard was created based on a hybrid of FDMA (Analog) and TDMA
(Digital) technologies. GSM engineers decided to use wider 200 KHz
channels instead of the 30 KHz channels that TDMA used, and instead
of having only 3 slots like TDMA, SM channels had 8 slots. This allowed
for fast bit rates and more natural-sounding voice- compression
algorithms. GSM is currently the only one of the three technologies that
provides data services such as email, fax, internet browsing, and
intranet / LAN wireless access, and it’s also the only service that
permits users to place a call from either North America or Europe. The
GSM standard was accepted in the US in 1995. GSM-1900 cellular
systems have been operating in the US since 1996, with the first
network being in the Washington D.C. area. Major carriers of GSM 1900
include omni point, Pacific Bell, Bell South, Sprint Spectrum, Microcell,
Western Wireless, Powertel and Aerial.

DIFFERENT TECHNOLOGY
BLUETOOTH TECHNOLOGY
It is a technology for wireless communication between devices. It’s
based on a lowcost short-range radio link. Every decorator knows that
cables and wires are unsightly and confusing. Bluetooth connections
allow wireless communication between devices within a range of about
30 feet (10 metres). Unlike infrared, you don’t have to point devices
directly at each other, or even have both devices in the same room.
Blue tooth can initiate connections automatically with paired devices,
so you don’t even have to think about it. And no, you don’t have to pay
for a Bluetooth connection, no matter how much data you transfer.
When two devices share information, there are a few things that have
to be worked out: firstly, how they will physically connect through how
many wires? Or none at all? – And then what are the agreed commands
that will make sense to both devices? Bluetooth is an industry standard
that solves both of these issues cheaply, and using very little battery
power.
GPRS TECHNOLOGY:
General Packet Radio Service is a technology that allows your phone to
transfer data at moderate speeds. GPRS lets you send data faster than
over a GSM data network, and it’s also a lot more efficient. But “data”
sounds pretty vague.
To use GPRS, you need a phone that supports it, a subscription from
your network operator that supports GPRS, and the proper settings.
GPRS does what it says: it sends “packets” of data over a radio wave
(on GSM network). Packet switching works like a jigsaw puzzle: your
data is split into many pieces, then sent over the network and
reassembled at the other end. GPRS is just one of the ways to
transport these jigsaw puzzles.
EDGE TECHNOLOGY:
Enhanced Data rates for Global Evolution (EDGE) enables data
connections three times faster than GPRS within the same multi slot
class. Like GPRS, you’re billed for the data you transfer, not for the
time you spend connected.
EDGE opens up a lot of possibilities for connecting to data networks on
your mobile phone, making it far less frustrating to stream video and
download larger files. To use EDGE, you need a phone that supports it,
a subscription from your network operator that supports EDGE, and the
proper settings. EDGE is based on General Packet Radio Service, which
sends “packets” of data over a radio wave. Packet Switching works like
a jigsaw puzzle: your data is split into many pieces, then sent over the
network and reassembled at the other end. GPRS is just one of the
ways to transport these jigsaw puzzles.
JAVA TECHNOLOGY:
JAVA is both a programming language and a software platform, and its
used to create and run applications for Nokia phones. With JAVA
applications, your phone can do more of the things you’d like it to do.
Downloading and installing applications is a relatively simple process
(as is uninstalling them), and there is a wide range of applications
available.
JAVA was originally developed by Sun Microsystems. Enhancements
and standardization of the JAVA platforms are conducted by the JAVA
Community Process (JCP), in which Nokia takes on active role together
with sun and other members. There are two parts to JAVA technology: a
programming language, and an environment in which those commands
can be executed. You need an environment where the language means
something, so JAVA brings its own environment along. JAVA enabled
Nokia phones – most Nokia models on the market now-contain a JAVA
Virtual Machine, which is ready to run applications written in JAVA. This
makes using new applications easy, because you usually don’t have to
configure, load, or install anything else.
MMS TECHNOLOGY:
MMS stands for Multimedia Messaging Service, a technology that
allows you to create, send and receive text messages that also include
an image, audio, and / or video clips. MMS messages are sent from
one mobile phone to another, or to an email address. Multimedia
Messaging enriches your mobile messages in much the same way as
inserting photos or changing fonts and colours does in email – it’s both
useful and expressive.
MMS messages are sometimes considered equivalent to so –called
“Picture Messaging”, popularized by the recent imaging phones boom,
but other uses of the technology do exist.
You don’t need to have an imaging phone to send and receive MMS
messages, just an MMS-enabled mobile phone, an operator
management that supports the service, and the correct settings on
your handset. Of course, an imaging phone gives you the option of
creating and passing on your original images.
An MMS message is a multimedia presentation in a single entry, unlike
an email with attachments, making it easier to create and simpler to
deliver than an email with attachments. MMS is a scalable technology,
which means it’s suitable for most types of mobile phones. And MMS is
compatible with fixed email addresses, so it is possible to criss-cross
back and forth over the mobile-PC border.
MOBILE BROWSING TECHNOLOGY:
A mobile browser is simply any program that lets you access and read
content on a network from a mobile device – usually the Internet or
some other mobile network service. As more phones on the market
boast high network connection speeds and colour screens, mobile
browsing is becoming more common (and a lot better looking).
Many new Nokia models come with an integrated XHTML or even HTML
mobile browser, giving you the chance to surf without being chained to
a desktop computer. Today’s mobile browsers give you richer colours
and faster browsing than the original mobile browsers, and most
importantly, a way to access the web at your finger tips. Considering
the no-frills WAP sites that started off mobile browsing, the technology
has come a long way.
In order to browse with a mobile phone, you need to have a phone with
a browser (either one that’s built in or downloaded), a subscription
from your network operator to a data service (GSM data, GPRS, EDGE,
WCDMA, etc) and the correct settings on your phone. Then its up to
other companies and individuals to build the sites and services you can
browse.
MOBILE VIDEO TECHNOLOGY:
Mobile video means both creating your own video clips and watching
content created by others. There are two types of mobile video content
services: downloadable and streaming. You can download, store and
play back videos on your mobile device. Or, you can stream video
content, which is a better option for viewing longer clips because data
isn’t stored on your phone. You can also tune in to live video feeds
using streaming. We can
− Use a phone equipped with a camera to record your own clips, then
send them (by email, MMS or over a wireless connection using
Bluetooth technology or infrared).
− Watch streamed news, sports, music videos, or movie trailers.
− Watch live camera views such as road conditions, concerts, parties,
etc.
− Subscribe to MMS videos and download short video content such as
daily news, weather or cartoons.
− Store your favorite videos on a Multimedia Card (MMC) card – longer
clips can fit on a MMC card as long as it has enough capacity.
Unless the video you want to watch is already stored on an MMC card,
your phone must be able to connect to the internet in order to access
to video files. This means you need a phone with a GPRS, EDGE,
WCDMA or other network connection, and the correct settings. If you’re
interested in streaming video, look for a phone that supports EDGE or
CDMA.

REVIEW OF LITERATURE

ADVERTISING:
Advertising is any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified sponsor. It is
paid communication because the advertiser has to pay for the space or
time in which his advertisement appears.
Advertisers include business firms but also museums, charitable
organizations, and government agencies that advertise to various
target publics. Advertisements are a cost effective way to disseminate
messages, whether to build brand preference or to educate a nation’s
people.
Organizations handle their advertising in different ways. In small
companies, someone handles advertising in the sales or marketing
departments, who works with an advertising agency. A large company
will often set up its own advertising department, whose manager
reports to the Vice President of marketing. The advertising
department’s job is to develop the total budget, and handle direct-mail
advertising, dealer displays and other forms of advertising not
ordinarily performed by the agency. Most companies use an outside
advertising agency to help them create advertising campaigns and to
select and purchase media. Global companies that use a large number
of ad agencies located in different countries and serving different
divisions have suffered from uncoordinated advertising and image
diffusion. Advertising agencies need to redefine themselves as
communication companies and assist clients in improving their overall
communication effectiveness.

Five M’s of Advertising


MISSION : What are the advertising objectives?
MONEY : How much can be spent?
MESSAGE : What message should be sent?
MEDIA : What media should be used?
MEASUREMENT : How should the results be evaluated?

Strengths of Advertising as a promotional tool


1. It offers planned and controlled message.
2. It can contact and influence numerous people simultaneously,
quickly, and at a low cost per prospect. Hence, it is called Mass Means
of Communication.
3. It has the ability to deliver messages to audiences with particular
demographic and socio-economic features.
4. It can deliver the same message consistently in a variety of
contexts.
5. It can reach prospects that cannot be approached by sales man.
6. It helps to presell goods and pull the buyers to retailers.
7. It offers a wide choice of channels for transmission of messages
such as visual (by sights), aural, (by ear) aural and visual.
8. It is very useful to create maximum interest and offer adequate
knowledge of the new product when the innovation is being introduced
in the market.

Weakness of Advertising as a promotional tool


1. It is much less effective than personal selling and sales promotion at
later stages in the buying process, e.g.: in convincing and securing
action.
2. It is less flexible than personal communication. It cannot answer
objections raised by prospects.
3. It is essentially one-way means of communication. It cannot obtain
quick and accurate feedback in order to evaluate message
effectiveness.
4. It is most efficient communication (very low cost per prospect) but it
is least effective as a tool of a communication.
5. It is unable to reach prospects when they are in a buying mood.
Hence advertisements have to be repeated and repetition involves
additional cost.
6. Advertising, many a time lacks credibility and trustworthiness.

Importance of Advertising
1. To create widespread visibility in the market and access those
pockets which are not approachable by the sales force. Quoting a
customer, “Make the customers come to you rather than trying to
approach all the potential customers.”
2. As a symbol of sound financial position of the company and also to
make the statement that the company is here to stay!
3. To aid in easy brand recall and also create a top of mind awareness
of the brand.
4. To make maximum potential customers aware of the new offerings
and schemes of the company and initiate enquiries about the same.
5. To establish a strong brand image in the market so as to give the
company an edge over its competitors.

Communication goals of Advertising


Advertising should concentrate on clear and measurable
communication objectives known as DAGMAR (Defining Advertising
Goals, Measuring Advertising Results). Advertising objectives must be
oriented around the process of communication.
Communication tasks are,
1. Developing brand awareness.
2. Changing consumer attitudes.
3. Associating desirable themes with products, and
4. Informing consumers about product attributes.
The ultimate purpose of most advertising is to help the probability of
the sale of the product or a service. Advertising as a mode of
promotion increases propensity to purchase-moving the prospect
steadily, inch-by-inch, closer to a purchase decision. Of course,
advertising is only one of several communication forces. It moves the
consumer through successive levels such as unawareness, awareness,
comprehension or recognition, conviction (intention to buy) and action
purchase.
Advertising goals may be divided into four stages of commercial
communication as follows:
Awareness: the prospects must become aware of the existence of the
brand or company. Awareness is the bare minimum goal of advertising.
Comprehension: the prospect must understand what the product is
and what it will do for him. Comprehension level indicates that people
are not only aware of the brand or company that they know the brand
name and can recognize the package or trade market. But they are not
yet convinced that they must want to buy.
Conviction: the prospect must be mentally convinced to buy the brand
or the product. The conviction level shows brand preference and
intention to buy the product in the near future.
Action: the prospect takes meaningful action. Purchase decision is duly
taken.

Choosing among major media types:


The media planner has to know the capacity of the major media types
to deliver reach, frequency, and impact. Media planners make their
choice among media categories by considering the following variables:
Target-Audience Media habits: for example radio and television are the
most effective media for reaching teenagers.
Product Characteristics: Media types have different potentials for
demonstration, visualization, explanation, believability and color.
Women’s dresses are best shown in color magazines, and Polaroid
cameras are best demonstrated on television.
Message characteristics: timeliness and information content will
influence media choice. A message announcing a major sale tomorrow
will require specialized magazines or mailings.
Cost: Television is very expensive, whereas newspaper advertising is
relatively inexpensive. What counts is the cost-per-thousand
exposures.

Advertising in India
Indian Advertising starts with the hawkers calling out their wares right
from the days when cities and markets first began
Shop front signage’s
From street side sellers to press ads
The first trademarks
Handbills distributed separately from the products

18th Century:
Concrete advertising history begins with classified advertising. Ads
appear for the first time in print in Hickey's Bengal Gazette. India's fisrt
newspaper (weekly). Studios mark the beginning of advertising created
in India (as opposed to imported from England) Studios set up for bold
type, ornate fonts, more fancy, larger ads. Newspaper studios train the
first generation of visualisers & illustrators. Ads appear in newspapers
in the form of lists of the latest merchandise from England Since 1980,
advertising in India has demonstrated phenomenal growth – growth in
size, quality, and range of services, in the total expenditure in
advertising per year. In 1950 advertising expenditure was hardly Rs. 5
Crores. By 1988, it rose to Rs. 900 Crores. It may be around by Rs.
2200 Crores by 2001 A.D.
There are now over 400 advertising Agencies as against just 100
advertising agencies around 1970. In the Indian market, we have more
than 11,000 branded products extensively advertised in all languages.
Press advertisement account for about 50 percent and TV account for
about 18 percent of the total advertising costs.
In the media sector we have at present intense competition, e.g., TV /
Radio, Newspaper each attempting an increasing market share. In the
press segment we are witnessing regular media war. In the case of the
Press, competition is total. However, media owners are expected to
adopt now customer-oriented approach to get rid of such unhealthy
competition.
Essentials of good Advertisement
A good advertisement must have the right message communicated
through a right media. It must reach the right people and prospects
and that too at a right time and at the right cost. Right timing of an
advertisement needs no emphasis. It should fulfill its sole purpose, viz.,
gain sale or action from the prospects and the cost of communication
should be reasonable.
The task assigned to the advertisement can be successfully fulfilled
when:
1. It is seen by the desired prospects.
2. It is read by them with interest.
3. It is properly understood by them exactly as the advertiser wants.
4. It is believed by them and it wins their confidence and trust and
above all it succeeds in igniting their desire to purchase the product or
service offered or sale.
Effective advertisements take the prospect near about the point of
closing the sale so that actual sale may be easily completed by the
sales force. Each advertisement must be a unique selling proposition,
invoking maximum force of persuasion to convert a prospect into a
customer.
In the light of the above information, t he author conducted a research
study on the advertising strategies of two leading garment
manufacturers in Bangalore City.

ATTENTION
It can be viewed as an information filter – a screening mechanism that
controls the quantity and nature of information any individual receives.
Getting a consumer’s attention is not easy. An individual, overtly or
accidentally, avoids exposure to stimuli.
The advertising environment is truly “cluttered”; most major
magazines have almost one-half of their pages carrying
advertisements, the other half carrying editorial matter. Amid all this
advertising, it is not easy to create an advertisement that stands out
enough to get noticed, processed, and remembered. The effectiveness
of ads is reduced not only by the higher levels of clutter in general, but
even more significantly by the proximity of ads for competing brands
from the same product category.
The situation is made worse in the broadcast media, especially
television. Viewers have always had the freedom to do things while a
program is being shown; including leaving the room mentally and
physically, but the use of remote control devices has made channel-
switching endemic. Television advertisers today have to cope with the
phenomena of zapping and zipping.

CREATING ADVERTIEMENTS THAT ATTRACTS ATTENTION


The attention filter operates at various levels of effort and
consciousness. At one extreme is the process of active search wherein
a receiver actually seeks information. He or she might solicit opinions
of friends or search through magazines not normally read.
Another level could be termed passive search. A receiver searches for
information only from sources to which he or she is exposed during the
normal course of events. The final level might be called passive
attention. Here a receiver has little immediate need for the information
and makes no conscious effort to obtain it, but some information may
nevertheless enter the system. At all three levels, it is appropriate to
discuss why a person obtains information so that ads can be designed
to maximize attention. There are, of course, as many reasons as there
are situations and individuals. However, it is instructive to examine
four general motives for attending to informative stimuli.
A first motive is to obtain information that will have a high level of
utility for a person. In an advertising context, an individual will obtain
product information that will help make better purchase decisions.
Second, people may be motivated to expose themselves to information
that supports their opinions- supportive exposure-and to avoid
discrepant information. Third, there is a desire to be exposed to
information that stimulates. Finally, people are motivated to find
stimuli that are interesting to them. These motives will be examined in
turn.

ADVERTISING EFFECTIVENESS:
Advertising effectiveness consists in the degree of achievement of the
objectives set by an advertiser in consultation with advertising agency
working on the account. It may also take the form of an increase in the
sales of market share or penetration into a new market segment.
ADVERTISING STRATEGIES:
Strategy provides the link between advertising objectives and plans
and paves the ground for their implementation. It can be instrumental
in prioritizing various objectives, taking into account the attitudinal
framework as well as corporate and marketing goals, and the market
situations and characteristics.
Advertising strategy is based on consideration such as the following:
• Advertising objectives.
• Advertising budgets.
• Selection of target audiences.
• Advertising message.
• Media decision.
• Media space decisions.
• Company’s standing and it s strength and weaknesses.
• Product history and its life cycle stage.
• Positioning of the product as indicated by perceptual mapping.
• Existing and anticipated competition.

BRAND PATRONAGE:
Most of the time, an advertisers (seller) tries to build a brand privilege
or patronage for his products or service. A seller has a brand privilege
if buyers exhibit brand insistence, brand loyalty, or brand preference
towards his product or service. By means of advertising or persuasive
mass communication, seller tries to move prospective buyers and
existing buyer from lower level to higher level of brand attitude of
customers – from brand ignorance to brand awareness, or from brand
acceptance to brand preference, loyalty, and insistence

RESEARCH METHODOLOGY
RESEARCH APPROACH
The research for this study is a Descriptive Research.
A Descriptive Research is a type of conclusive research, which has
its major objective as the description or something, usually market
characteristics or functions. It is preplanned and structured.
Under this approach a Cross-Sectional study is conducted in which one
sample of respondents is drawn from the target population and
information is obtained from this sample one.
This study is based on Descriptive Research approach comprises the
following methods;
1. Secondary Data:
Secondary Data refers to that which is compiled by some other than
the other researcher for purpose not directly related to the research.
These are readily available for processing. This type of data relate to
past period. The two main types of secondary data are Internal and
External data.
The sources used for such data types are as follows:
a. Internal: the sources include company annual reports bulletins,
research reports, etc.
b. External: the sources include:
• Published materials such as periodicals and books like business
periodicals, marketing journals, general business and trade magazines,
etc.
• Computerized databases such as internet databases and off-line
databases (information available on Diskettes and CD-ROM disks).
2. Primary Data:
Primary Data refers to the data gathered for a specific purpose or for a
specific research project. These data gives latest information. This type
of data is obtained from original sources. In this study, primary data is
collected through Questionnaire Method.

TOOLS FOR DATA COLLECTION:


The approved questionnaire is the main tool used for data collection in
this study. The questionnaire consists of structured and unstructured
questions.
The questionnaire tool is mainly used because:
• Both qualitative and Quantitative information can be gathered.
• Factual survey can be done.
• Opinion survey in order to secure personal opinions or on a particular
matter can be done effectively. This tool is administered through
Personal Interview with the target population.

SAMPLING PLAN:
1. Sampling Unit – Who is to be surveyed:
The sampling unit consists of college students owning Nokia Cellular
Phones for analyzing the advertising effectiveness on consumers.
2. Sampling Procedure – How should the respondents be chosen:
The sampling technique chosen are Simple Random Sampling and
Stratified Random Sampling , in which a sample is drawn
probabilistically from each group or strata i.e. College Students owing
Nokia Cellular Phones.
3. Sample Size – How many respondents to be surveyed:
Due to time and other constraints, the size is 100 respondents. These
samples of respondents are chosen randomly.

CROSS SECTIONAL STUDY:


A Cross Sectional Study is a type of research design involving the
collection of information from any given sample of population elements
only once.
SIMPLE RANDOM SAMPLING:
A probability sampling technique in which each element in the
population has a known and equal probability of selection. Every
element is selected independently of every other element and the
sample is drawn by a random procedure from sampling frame.
STRATIFIED RANDOM SAMPLING:
A probability sampling technique that uses a two-step process to
partition the population into sub populations, or strata. Elements are
selected from each stratum by a random procedure.
ULTIMATE CONSUMER:
Ultimate Consumers refers to those individuals who buy goods and
services for final use or consumption.
DATA ANALYSIS:
The data collected are tabulated and classified as required. Statistical
techniques such as Frequency Distribution, Central Tendency,
Percentages, etc., are used for analysis of primary data. Conclusions
are drawn based on the analysis and findings of primary data.

DURATION OF THE STUDY:


The duration of the study is six weeks.

LIMITATIONS OF THE STUDY:


• Due to time and resource constraints, only college students are
selected for the study for making an analysis for the advertising
strategies.
• Due to resource and time constraints, a randomly selected sample
has been chosen respondents for making an analysis of advertising
effectiveness on consumers.

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