Vous êtes sur la page 1sur 152

ACKNOWLEDGEMENT

It gives me an immense pleasure and privilege to acknowledge my deepest sense of gratitude towards all those who helped me in the successful execution of this project.

I extend my kudos and complacency towards Chairman Sir, Mr. Suresh Jain, Vice Chairman Sir Mr. Manish Jain, Executive Director Mr. A.K. Garg & Director Mr. Hariom Agarwal for their able guidance. I also extend my gratitude towards the H.O.D. Mr. M.P. Singh and my course co-ordinator Dr. Mayank Sharma who entrusted me for the completion of this project. I am highly indebted to my project guide, Mr. Himanshu Upadhaya whose constructive counseling and able guidance helped me immensely in bringing out this project in the present form. And lastly all the faculty members and Mr. Sanjeev (Librarian) & all the lab staff for providing me this opportunity and expose me to industrial culture.

The acknowledgement would be incomplete without thanking my family & friends who were a big support throughout.

PARVINDER KAUR B.B.A. VI Sem Roll No.: 871301

PREFACE
This report presents the research,findings and recommendations resulting from the project HOW ADVERTISEMENT EFFECT CONSUMER BUYING BEHAVIOUR. Advertising is arguably the most interesting of all business fields.It requires a range of human skills that are both creative and practical and,when successful can have a strong effect on business performance.How does advertising work? Despite its importance, this question get limited attention in many textbooks of marketing communications,the choice of media,advertising case, business and legal constraints etc, but the evidence for the effects of advertising and the processes involved in producing these effects are usually given little space. This is a pity explaining how advertising work is difficult but both students and practioners want to know about the methods of research, the debates and uncertainities , and the more solid conclusion mnow available about the effects of advertising and we certainly have some findings to report.

CONTENTS

1- INTRODUCTION 2- AIMS AND OBJECTIVES 3- ADVERTISMENT AND CONSUMER BEHAVIOUR 4- RESEARCH METHODOLOGY 5- DATA COLLECTION, FINDINGS AND INTERPRETATION 6- CONCLUSION 7- RECOMMENDATIONS AND SUGGESTIONS 8- LIMITATIONS 9- ANNEXURE BIBLIOGRAPHY

ADVERTISEMENT

INTRODUCTION
The word Advertising has its origin from a Latin word Adventure which means to turn to. The dictionary meaning of the word is to announce publicity or to give public concerned to a specific thing which has been announced by the advertiser publicity in order to inform and influence them with the ideas which the advertisement carries. In business world the terms in
mainly used with reference to selling the product of the concern. The advertising, as Jones defines it is "a sort of machine made mass production method of selling which supplements the voice and personality of the individual salesman, such as manufacturing the machine supplements the hands of the craftsman." It is thus a process of buying/sponsor/identified media space or time in order to promote a product or an idea. From a careful scrutiny of the above definition, the following points emerge:

Advertising is a paid form and hence commercial in nature. This any sponsored communication designed to influence buyer behaviour advertising. Advertising is non-personal. Unlike personal selling, advertising is done in a non-personal manner through intermediaries or media whatever the form of advertisement (Spoken, written or visual). It is directed at a mass audience and not directed at the individual as in personal selling. Advertising promotes idea, goods and services. Although most advertising is designed to help sell goods, it is being used increasingly to further public interest goals.

Advertising is identifiable with its sponsoring authority and advertiser. It discloses or identifies the source of opinions and ideas. Advertising thus is: 1. Impersonal 2. A communication of ideas. 3. Aimed at mass audience 4. by a paying sponsor. The two forms of mass communication that are something confused with advertising are publicity and propaganda. If we eliminate the elements of the "paying sponsor" (The paid requirement) we would have the element of publicity left. For publicity in technically speaking, is advertisement without payment. In a similar manner if, we eliminate the requirement of an "identified sponsor", the resulting communication is propagandistic. It is important for us to emphasize that advertising may involve the communication of ideas or goods of service. We are all aware that advertising attempts to sell goods and services. But we may overlook the more important fact that it often sells ideas. Advertising may persuade with information; it may persuade with emotion: more frequently, it endeavors to persuade with some mixture of both.

Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to take some action. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers to purchase or to consume that particular brand. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries.

Commercial advertisers often seek to generate increased consumption of their products or services through

branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages. Advertising may be placed by an advertising agency on behalf of a company or other organization.

Non-commercial advertisers that spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement. In 2007, spending on advertising was estimated at more than $150 billion in the United States and $385 billion worldwide.

Aims and Objectives


The aims and objectives of this project report can be described with following aspects:

To study about the market potential and scope of advertisement now a days.

To study the preference of people towards various media of advertisement. To study the advantages of advertisement for people and their occupation.

To know satisfaction level of people (customers).

To study the effect of advertisement on consumer buying behaviour.

To study influence of quality of prices over buying decision

To study the reason for the delay between purchase decision and actual decision. One of the objective is to determine the effect of advertisement over the demand for the product.

History

Edo period advertising flyer from 1806 for a traditional medicine called Kinseitan

Egyptians used Papyrus to make sales messages and wall posters. Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and found advertising on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC. History tells us that Outof-home advertising and billboards are the oldest forms of advertising. As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of

carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts for the convenience of the customers. As education became an apparent need and reading, as well as printing, developed advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote books and newspapers, which became increasingly affordable with advances in the printing press; and medicines, which were increasingly sought after as disease ravaged Europe. However, false advertising and so-called "quack" advertisements became a problem, which ushered in the regulation of advertising content. As the economy expanded during the 19th century, advertising grew alongside. In the United States, the success of this advertising format eventually led to the growth of mail-order advertising. In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. Around 1840, Volney Palmer established a predecessor to advertising agencies in Boston. Around the same time, in France, Charles-Louis Haves extended the services of his news agency, Haves to include advertisement brokerage, making it the first French group to organize. At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son was the first full-service agency to assume responsibility for advertising content. N.W. Ayer opened in 1869, and was located in Philadelphia.

An 1895 advertisement for a weight gain product.

At the turn of the century, there were few career choices for women in business; however, advertising was one of the few. Since women were responsible for most of the purchasing done in their household, advertisers and agencies recognized the value of women's insight during the creative process. In fact, the first American advertising to use a sexual sell was created by a woman for a soap product. Although tame by today's standards, the advertisement featured a couple with the message "The skin you love to touch". In the early 1920s, the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools,

clubs and civic groups. When the practice of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows. However, radio station owners soon realized they could earn more money by selling sponsorship rights in small time allocations to multiple businesses throughout their radio station's broadcasts, rather than selling the sponsorship rights to single businesses per show.

A print advertisement for the 1913 issue of the Encyclopedia Britannica

This practice was carried over to television in the late 1940s and early 1950s. A fierce battle was fought between those seeking to commercialize the radio and people who argued that the radio spectrum should be considered a part of the commons to be used only non-commercially and for the public good. The United Kingdom pursued a public funding model for the BBC, originally a private company, the British Broadcasting Company, but incorporated as a public body by Royal Charter in 1927. In Canada, advocates like Graham Spry were likewise able to persuade the federal government to adopt a public funding model, creating the Canadian Broadcasting Corporation. However, in the United States, the capitalist model prevailed with the passage of the Communications Act of 1934 which created the Federal Communications Commission. To placate the socialists, the U.S. Congress did require commercial broadcasters to operate in the

"public interest, convenience, and necessity". Public broadcasting now exists in the United States due to the 1967 Public Broadcasting Act which led to the Public Broadcasting Service and National Public Radio. In the early 1950s, the Dumont Television Network began the modern practice of selling advertisement time to multiple sponsors. Previously, Dumont had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. This eventually became the standard for the commercial television industry in the United States. However, it was still a common practice to have single sponsor shows, such as The United States Steel Hour. In some instances the sponsors exercised great control over the content of the showup to and including having one's advertising agency actually writing the show. The single sponsor model is much less prevalent now, a notable exception being the Hallmark Hall of Fame. The 1960s saw advertising transform into a modern approach in which creativity was allowed to shine, producing unexpected messages that made advertisements more tempting to consumers' eyes. The Volkswagen ad campaignfeaturing such headlines as "Think Small" and "Lemon" (which were used to describe the appearance of the car)ushered in the era of modern advertising by promoting a "position" or "unique selling proposition" designed to associate each brand with a specific idea in the reader or viewer's mind. This period of American advertising is called the Creative Revolution and its archetype was William Bern Bach who helped create the revolutionary Volkswagen ads among others. Some of the most creative and long-standing American advertising dates to this period. The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered

in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a by-product or afterthought. As cable and satellite television became increasingly prevalent, specialty channels emerged, including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and Shop TV Canada. Marketing through the Internet opened new frontiers for advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising. The share of advertising spending relative to GDP has changed little across large changes in media. For example, in the US in 1925, the main advertising media were newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2.9 percent. By 1998, television and radio had become major advertising media. Nonetheless, advertising spending as a share of GDP was slightly lowerabout 2.4 percent. A recent advertising innovation is "guerrilla marketing", which involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. Guerrilla advertising is becoming increasing more popular with a lot of companies. This type of advertising is unpredictable and innovative, which causes consumers to buy the product or idea. This reflects an

increasing trend of interactive and "embedded" ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social network services such as MySpace.

Public service advertising


The same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about noncommercial issues, such as HIV/AIDS, political ideology, energy conservation and deforestation. Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences. "Advertising justifies its existence when used in the public interestit is much too powerful a tool to use solely for commercial purposes." Attributed to Howard Goss age by David Ogilvy. Public service advertising, non-commercial advertising, public interest advertising, cause marketing, and social marketing are different terms for (or aspects of) the use of sophisticated (generally advertising associated and with marketing commercial

communications

techniques

enterprise) on behalf of non-commercial, public interest issues and initiatives. In the United States, the granting of television and radio licenses by the FCC is contingent upon the station broadcasting a certain amount of public service advertising. To meet these requirements, many broadcast stations in America air the bulk of their required public service announcements during the late night or early morning when the smallest percentage of viewers are watching, leaving more day and prime time commercial slots available for high-paying advertisers.

MEDIA OF ADVERTISEMENT

Paying people to hold signs is one of the oldest forms of advertising, as with this Human directional pictured above

A bus with an advertisement for GAP in Singapore. Buses and other vehicles are popular mediums for advertisers.

A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station

Virtually any medium can be used for advertising. Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popup, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes ("logo jets"), inflight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

Television
The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3 million (as of 2009). The majority of television commercials features a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank

backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none exist in real-life. This technique is especially used in televised sporting events Virtual product placement is also possible.

Infomercials
An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" is a portmanteau of the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.

Radio advertising
Radio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcasted as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the obvious limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage.

Press advertising
Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from

media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service.

Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.

Billboard advertising
Billboards are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls

or office buildings, and in stadiums.

Mobile billboard advertising

The Redeye newspaper advertised to its target market at North Avenue Beach with a sailboat billboard on Lake Michigan.

Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially-equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including:

Target advertising One-day, and long-term campaigns Conventions Sporting events

Store openings and similar promotional events Big advertisements from smaller companies Others

In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters, eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.

Covert advertising
Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderson owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgaria logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Space balls also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most

obvious product placement; the whole film stops to show a Coca-Cola billboard.

Celebrities
This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products, for example, when celebrities share their favorite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. The use of celebrities to endorse a brand can have its downsides, however. One mistake by a celebrity can be detrimental to the public relations of a brand. For example, following his performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to associate with him after he was photographed smoking marijuana.

Media and advertising approaches


Increasingly, other media are overtaking many of the "traditional" media such as television, radio and newspaper because of a shift toward consumer's usage of the Internet for news and music as well as devices like digital video recorders (DVRs) such as TiVo. Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives.

Digital signage is poised to become a major mass media because of its ability to reach larger audiences for less money. Digital signage also offers the unique ability to see the target audience where they are reached by the medium. Technology advances has also made it possible to control the message on digital signage with much precision, enabling the messages to be relevant to the target audience at any given time and location which in turn, gets more response from the advertising. Digital signage is being successfully employed in supermarkets. Another successful use of digital signage is in hospitality locations such as restaurants. and malls. E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "e-mail spam". Spam has been a problem for email users for many years. Some companies have proposed placing messages or corporate logos on the side of booster rockets and the International Space Station. Controversy exists on the effectiveness of subliminal advertising (see mind control), and the pervasiveness of mass messages (see propaganda). Unpaid advertising (also called "publicity advertising"), can provide good exposure at minimal cost. Personal recommendations ("bring a friend", "sell it"), spreading buzz, or achieving the feat of equating a brand with a common noun (in the United States, "Xerox" = "photocopier", "Kleenex" = tissue, "Vaseline" = petroleum jelly, "Hoover" = vacuum cleaner, "Nintendo" (often used by those exposed to many video games) = video games, and "Band-Aid" = adhesive bandage) these can be seen as the pinnacle of any advertising campaign. However, some companies oppose the use of their brand name to label an object. Equating a brand with a common noun also risks turning that brand into a genericized trademark - turning it

into a generic term which means that its legal protection as a trademark is lost. As the mobile phone became a new mass media in 1998 when the first paid downloadable content appeared on mobile phones in Finland, it was only a matter of time until mobile advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile advertising had reached $2.2 billion and providers such as Ad mob delivered billions of mobile ads. More advanced mobile ads include banner ads, coupons, Multimedia Messaging Service picture and video messages, averages and various engagement marketing campaigns. A particular feature driving mobile ads is the 2D Barcode, which replaces the need to do any typing of web addresses, and uses the camera feature of modern phones to gain immediate access to web content. 83 percent of Japanese mobile phone users already are active users of 2D barcodes. A new form of advertising that is growing rapidly is social network advertising. It is online advertising with a focus on social networking sites. This is a relatively immature market, but it has shown a lot of promises as advertisers are able to take advantage of the demographic information the user has provided to the social networking site. Friendertising is a more precise advertising term in which people are able to direct advertisements toward others directly using social network service. From time to time, The CW Television Network airs short programming breaks called "Content Wraps," to advertise one company's product during an entire commercial break. The CW pioneered "content wraps" and some products featured were Herbal Essences, Crest, Guitar Hero II, Cover Girl, and recently Toyota.

Criticism of advertising
While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers.[19] Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. [20] In addition, advertising frequently uses psychological pressure (for example, appealing to feelings of inadequacy) on the intended consumer, which may be harmful.

Hyper-commercialism and the commercial tidal wave


Criticism of advertising is closely linked with criticism of media and often interchangeable. They can refer to its audio-visual aspects (e. g. cluttering of public spaces and airwaves), environmental aspects (e. g. pollution, oversize packaging, increasing consumption), political aspects (e. g. media dependency, free speech, censorship), financial aspects (costs),

ethical/moral/social aspects (e. g. sub-conscious influencing, invasion of privacy, increasing consumption and waste, target groups, certain products, honesty) and, of course, a mix thereof. Some aspects can be subdivided further and some can cover more than one category. As advertising has become increasingly prevalent in modern Western societies, it is also increasingly being criticized. A person can hardly move in the public sphere or use a medium without being subject to advertising. Advertising occupies public space and more and more invades the private sphere of people, many of which consider it a nuisance. It is becoming harder to escape from advertising and the media. Public space is

increasingly turning into a gigantic billboard for products of all kind. The aesthetical and political consequences cannot yet be foreseen. Hanno Rauterberg in the German newspaper Die Zeit calls advertising a new kind of dictatorship that cannot be escaped. Ad creep: "There are ads in schools, airport lounges, doctors offices, movie theaters, hospitals, gas stations, elevators, convenience stores, on the Internet, on fruit, on ATMs, on garbage cans and countless other places. There are ads on beach sand and restroom walls.. One of the ironies of advertising in our times is that as commercialism increases, it makes it that much more difficult for any particular advertiser to succeed, hence pushing the advertiser to even greater efforts. Within a decade advertising in radios climbed to nearly 18 or 19 minutes per hour; on prime-time television the standard until 1982 was no more than 9.5 minutes of advertising per hour, today its between 14 and 17 minutes. With the introduction of the shorter 15-second-spot the total amount of ads increased even more dramatically. Ads are not only placed in breaks but e. g. also into baseball telecasts during the game itself. They flood the internet, a market growing in leaps and bounds. Other growing markets are product placements in entertainment programming and in movies where it has become standard practice and virtual advertising where products get placed retroactively into rerun shows. Product billboards are virtually inserted into Major League Baseball broadcasts and in the same manner, virtual street banners or logos are projected on an entry canopy or sidewalks, for example during the arrival of celebrities at the 2001 Grammy Awards. Advertising precedes the showing of films at cinemas including lavish film shorts produced by companies such as Microsoft or DaimlerChrysler. The largest advertising agencies have begun working aggressively to co-produce programming in conjunction

with the largest media firms creating Infomercials resembling entertainment programming. Opponents equate the growing amount of advertising with a tidal wave and restrictions with damming the flood. Kalle Lasn, one of the most outspoken critics of advertising on the international stage, considers advertising the most prevalent and toxic of the mental pollutants. From the moment your radio alarm sounds in the morning to the wee hours of latenight TV micro jolts of commercial pollution flood into your brain at the rate of around 3,000 marketing messages per day. Every day an estimated twelve billion display ads, 3 million radio commercials and more than 200,000 television commercials are dumped into North Americas collective unconscious In the course of his life the average American watches three years of advertising on television. More recent developments are video games incorporating products into their content, special commercial patient channels in hospitals and public figures sporting temporary tattoos. A method unrecognisable as advertising is socalled guerrilla marketing which is spreading buzz about a new product in target audiences. Cash-strapped U.S. cities do not shrink back from offering police cars for advertising. A trend, especially in Germany, is companies buying the names of sports stadiums. The Hamburg soccer Volkspark stadium first became the AOL Arena and then the HSH Nordbank Arena. The Stuttgart Neckarstadion became the Mercedes-Benz Arena, the Dortmund Westfalenstadion now is the Signal Iduna Park. The former SkyDome in Toronto was renamed Rogers Centre. Other recent developments are, for example, that whole subway stations in Berlin are redesigned into product halls and exclusively leased to a company. Dsseldorf even has multi-sensorial adventure transit stops equipped with loudspeakers and systems that spread the smell of a detergent. Swatch used

beamers to project messages on the Berlin TV-tower and Victory column, which was fined because it was done without a permit. The illegality was part of the scheme and added promotion. Its standard business management knowledge that advertising is a pillar, if not the pillar of the growthorientated free capitalist economy. Advertising is part of the bone marrow of corporate capitalism. Contemporary capitalism could not function and global production networks could not exist as they do without advertising. For communication scientist and media economist Manfred Knoche at the University of Salzburg, Austria, advertising isnt just simply a necessary evil but a necessary elixir of life for the media business, the economy and capitalism as a whole. Advertising and mass media economic interests create ideology. Knoche describes advertising for products and brands as the producers weapons in the competition for customers and trade advertising, e. g. by the automotive industry, as a means to collectively represent their interests against other groups, such as the train companies. In his view editorial articles and programmes in the media, promoting consumption in general, provide a cost free service to producers and sponsoring for a much used means of payment in advertising. Christopher Lasch argues that advertising leads to an overall increase in consumption in society; "Advertising serves not so much to advertise products as to promote consumption as a way of life."

Advertising and constitutional rights


Advertising is equated with constitutionally guaranteed freedom of opinion and speech. Therefore criticizing advertising or any attempt to restrict or ban advertising is almost always considered to be an attack on fundamental rights (First Amendment in the US) and meets the combined and concentrated resistance of the business and especially the advertising community. Currently or in the near future, any number of cases are and will be working their way through the court system that would seek to prohibit any government regulation of ... commercial speech (e.g. advertising or food labelling) on the grounds that such regulation would violate citizens and corporations First Amendment rights to free speech or free press. An example for this debate is advertising for tobacco or alcohol but also advertising by mail or fliers (clogged mail boxes), advertising on the phone, in the internet and advertising for children. Various legal restrictions concerning spamming, advertising on mobile phones, addressing children, tobacco, alcohol have been introduced by the US, the EU and various other countries. Not only the business community resists restrictions of advertising. Advertising as a means of free expression has firmly established itself in western society .McChesney argues, that the government deserves constant vigilance when it comes to such regulations, but that it is certainly not the only antidemocratic force in our society. ...corporations and the wealthy enjoy a power every bit as immense as that enjoyed by the lords and royalty of feudal times and markets are not value-free or neutral; they not only tend to work to the advantage of those with the most money, but they also by their very nature emphasize profit over all else.Hence, today the debate is over whether advertising or food labelling, or campaign contributions are speech...if the rights to be protected by the First Amendment can only be effectively employed by a fraction of the citizenry,

and their exercise of these rights gives them undue political power and undermines the ability of the balance of the citizenry to exercise the same rights and/or constitutional rights, then it is not necessarily legitimately protected by the First Amendment. In addition, those with the capacity to engage in free press are in a position to determine who can speak to the great mass of citizens and who cannot. Critics in turn argue, that advertising invades privacy which is a constitutional right. For, on the one hand, advertising physically invades privacy, on the other, it increasingly uses relevant, information-based communication with private data assembled without the knowledge or consent of consumers or target groups. For Georg Franck at Vienna University of Technology advertising is part of what he calls mental capitalism, taking up a term (mental) which has been used by groups concerned with the mental environment, such as Adbusters. Franck blends the Economy of Attention with Christopher Laschs culture of narcissm into the mental capitalism: In his essay Advertising at the Edge of the Apocalypse, Sut Jhally writes: 20. century advertising is the most powerful and sustained system of propaganda in human history and its cumulative cultural effects, unless quickly checked, will be responsible for destroying the world as we know it.

The price of attention and hidden costs


Advertising has developed into a billion-dollar business on which many depend. In 2006 391 billion US dollars were spent worldwide for advertising. In Germany, for example, the advertising industry contributes 1.5% of the gross national income; the figures for other developed countries are similar. Thus, advertising and growth are directly and causally linked. As far as a growth based economy can be blamed for the harmful human lifestyle (affluent society) advertising has to be considered in this aspect

concerning its negative impact, because its main purpose is to raise consumption. The industry is accused of being one of the engines powering a convoluted economic mass production system which promotes consumption. Attention and attentiveness have become a new commodity for which a market developed. The amount of attention that is absorbed by the media and redistributed in the competition for quotas and reach is not identical with the amount of attention, that is available in society. The total amount circulating in society is made up of the attention exchanged among the people themselves and the attention given to media information. Only the latter is homogenised by quantitative measuring and only the latter takes on the character of an anonymous currency. According to Franck, any surface of presentation that can guarantee a certain degree of attentiveness works as magnet for attention, e. g. media which are actually meant for information and entertainment, culture and the arts, public space etc. It is this attraction which is sold to the advertising business. The German Advertising Association stated that in 2007 30.78 billion Euros were spent on advertising in Germany, 26% in newspapers, 21% on television, 15% by mail and 15% in magazines. In 2002 there were 360.000 people employed in the advertising business. The internet revenues for advertising doubled to almost 1 billion Euros from 2006 to 2007, giving it the highest growth rates. Spiegel-Online reported that in the US in 2008 for the first time more money was spent for advertising on internet (105.3 billion US dollars) than on television (98.5 billion US dollars). The largest amount in 2008 was still spent in the print media (147 billion US dollars). For that same year, WeltOnline reported that the US pharmaceutical industry spent almost double the amount on advertising (57.7 billion dollars) than it did on research (31.5 billion dollars). But Marc-Andr Gagnon und Joel Lexchin of York

University, Toronto, estimate that the actual expenses for advertising are higher yet, because not all entries are recorded by the research institutions. Not included are indirect advertising campaigns such as sales, rebates and price reductions. Few consumers are aware of the fact that they are the ones paying for every cent spent for public relations, advertisements, rebates, packaging etc. since they ordinarily get included in the price calculation.

Influencing and conditioning

Advertising for McDonald's on the Via di Propaganda, Rome, Italy

The most important element of advertising is not information but suggestion more or less making use of associations, emotions (appeal to emotion) and drives dormant in the sub-conscience of people, such as sex drive, herd instinct, of desires, such as happiness, health, fitness, appearance, selfesteem, reputation, belonging, social status, identity, adventure, distraction, reward, of fears (appeal to fear), such as illness, weaknesses, loneliness, need, uncertainty, security or of prejudices, learned opinions and comforts. All human needs, relationships, and fears the deepest recesses of the human psyche become mere means for the expansion of the commodity universe under the force of modern marketing. With the rise to prominence of modern marketing, commercialism the translation of human relations into commodity relations although a phenomenon intrinsic to capitalism, has expanded exponentially..Cause-related marketing in which advertisers link their product to some worthy social cause has boomed over the past decade.

Advertising exploits the model role of celebrities or popular figures and makes deliberate use of humour as well as of associations with colour, tunes, certain names and terms. Altogether, these are factors of how one perceives himself and ones self-worth. In his description of mental capitalism Franck says, the promise of consumption making someone irresistible is the ideal way of objects and symbols into a persons subjective experience. Evidently, in a society in which revenue of attention moves to the fore, consumption is drawn by ones self-esteem. As a result, consumption becomes work on a persons attraction. From the subjective point of view, this work opens fields of unexpected dimensions for advertising. Advertising takes on the role of a life councillor in matters of attraction. () The cult around ones own attraction is what Christopher Lasch described as Culture of Narcissism. For advertising critics another serious problem is that the long standing notion of separation between advertising and editorial/creative sides of media is rapidly crumbling and advertising is increasingly hard to tell apart from news, information or entertainment. The boundaries between advertising and programming are becoming blurred. According to the media firms all this commercial involvement has no influence over actual media content, but, as McChesney puts it, this claim fails to pass even the most basic giggle test, it is so preposterous. Advertising draws heavily on psychological theories about how to create subjects, enabling advertising and marketing to take on a more clearly psychological tinge (Miller and Rose, 1997, cited in Thrift, 1999, p. 67). Increasingly, the emphasis in advertising has switched from providing factual information to the symbolic connotations of commodities, since the crucial cultural premise of advertising is that the material object being sold is never in itself enough. Even those commodities providing for the most

mundane necessities of daily life must be imbued with symbolic qualities and culturally endowed meanings via the magic system (Williams, 1980) of advertising. In this way and by altering the context in which advertisements appear, things can be made to mean "just about anything" (McFall, 2002, p.162) and the same things can be endowed with different intended meanings for different individuals and groups of people, thereby offering mass produced visions of individualism. Before advertising is done, market research institutions need to know and describe the target group to exactly plan and implement the advertising campaign and to achieve the best possible results. A whole array of sciences directly deal with advertising and marketing or is used to improve its effects. Focus groups, psychologists and cultural anthropologists are de rigueur in marketing research. Vast amounts of data on persons and their shopping habits are collected, accumulated, aggregated and analysed with the aid of credit cards, bonus cards, raffles and internet surveying. With increasing accuracy this supplies a picture of behaviour, wishes and weaknesses of certain sections of a population with which advertisement can be employed more selectively and effectively. The efficiency of advertising is improved through advertising research. Universities, of course supported by business and in co-operation with other disciplines (s. above), mainly Psychiatry, Anthropology, Neurology and behavioural sciences, are constantly in search for ever more refined, sophisticated, subtle and crafty methods to make advertising more effective. Neuromarketing is a controversial new field of marketing which uses medical technologies such as functional Magnetic Resonance Imaging (fMRI) -- not to heal, but to sell products. Advertising and marketing firms have long used the insights and research methods of psychology in order to sell products, of course. But today these practices are reaching epidemic levels, and with a complicity on the part of the

psychological profession that exceeds that of the past. The result is an enormous advertising and marketing onslaught that comprises, arguably, the largest single psychological project ever undertaken. Yet, this great undertaking remains largely ignored by the American Psychological Association.. Robert McChesney calls it "the greatest concerted attempt at psychological manipulation in all of human history."

Dependency of the media and corporate censorship


Almost all mass media are advertising media and many of them are exclusively advertising media and, with the exception of public service broadcasting are privately owned. Their income is predominantly generated through advertising; in the case of newspapers and magazines from 50 to 80%. Public service broadcasting in some countries can also heavily depend on advertising as a source of income (up to 40%). In the view of critics no media that spreads advertisements can be independent and the higher the proportion of advertising, the higher the dependency. This dependency has distinct implications for the nature of media content. In the business press, the media are often referred to in exactly the way they present themselves in their candid moments: as a branch of the advertising industry. In addition, the private media are increasingly subject to mergers and concentration with property situations often becoming entangled and opaque. This development, which Henry A. Giroux calls an ongoing threat to democratic culture, by itself should suffice to sound all alarms in a democracy. Five or six advertising agencies dominate this 400 billion U.S. dollar global industry. Journalists have long faced pressure to shape stories to suit advertisers and owners . the vast majority of TV station executives found their news

departments cooperative in shaping the news to assist in non-traditional revenue development. Negative and undesired reporting can be prevented or influenced when advertisers threaten to cancel orders or simply when there is a danger of such a cancellation. Media dependency and such a threat becomes very real when there is only one dominant or very few large advertisers. The influence of advertisers is not only in regard to news or information on their own products or services but expands to articles or shows not directly linked to them. In order to secure their advertising revenues the media has to create the best possible advertising environment. Another problem considered censorship by critics is the refusal of media to accept advertisements that are not in their interest. A striking example of this is the refusal of TV stations to broadcast ads by Adbusters. Groups try to place advertisements and are refused by networks. It is principally the viewing rates which decide upon the programme in the private radio and television business. Their business is to absorb as much attention as possible. The viewing rate measures the attention the media trades for the information offered. The service of this attraction is sold to the advertising business and the viewing rates determine the price that can be demanded for advertising. Advertising companies determining the contents of shows has been part of daily life in the USA since 1933. Procter & Gamble (P&G) . offered a radio station a history-making trade (today know as bartering): the company would produce an own show for free and save the radio station the high expenses for producing contents. Therefore the company would want its commercials spread and, of course, its products placed in the show. Thus, the series Ma Perkins was created, which P&G skilfully used to promote Oxydol, the leading detergent brand in those years and the Soap opera was born

While critics basically worry about the subtle influence of the economy on the media, there are also examples of blunt exertion of influence. The US company Chrysler, before it merged with Daimler Benz had its agency, PentaCom, send out a letter to numerous magazines, demanding them to send, an overview of all the topics before the next issue is published to avoid potential conflict. Chrysler most of all wanted to know, if there would be articles with sexual, political or social content or which could be seen as provocative or offensive. PentaCom executive David Martin said: Our reasoning is, that anyone looking at a 22.000 $ product would want it surrounded by positive things. There is nothing positive about an article on child pornography. In another example, the USA Network held top-level off-the-record meetings with advertisers in 2000 to let them tell the network what type of programming content they wanted in order for USA to get their advertising.Television shows are created to accommodate the needs for advertising, e.g. splitting them up in suitable sections. Their dramaturgy is typically designed to end in suspense or leave an unanswered question in order to keep the viewer attached. The movie system, at one time outside the direct influence of the broader marketing system, is now fully integrated into it through the strategies of licensing, tie-ins and product placements. The prime function of many Hollywood films today is to aid in the selling of the immense collection of commodities.The press called the 2002 Bond film Die Another Day featuring 24 major promotional partners an ad-venture and noted that James Bond now has been licensed to sell As it has become standard practise to place products in motion pictures, it has self-evident implications for what types of films will attract product placements and what types of films will therefore be more likely to get made.

Advertising and information are increasingly hard to distinguish from each other. The borders between advertising and media . become more and more blurred. What August Fischer, chairman of the board of Axel Springer publishing company considers to be a proven partnership between the media and advertising business critics regard as nothing but the infiltration of journalistic duties and freedoms. According to RTL Group former executive Helmut Thoma private stations shall not and cannot serve any mission but only the goal of the company which is the acceptance by the advertising business and the viewer. The setting of priorities in this order actually says everything about the design of the programmes by private television. Patrick Le Lay, former managing director of TF1, a private French television channel with a market share of 25 to 35%, said: "There are many ways to talk about television. But from the business point of view, lets be realistic: basically, the job of TF1 is, e. g. to help Coca Cola sell its product. () For an advertising message to be perceived the brain of the viewer must be at our disposal. The job of our programmes is to make it available, that is to say, to distract it, to relax it and get it ready between two messages. It is disposable human brain time that we sell to Coca Cola. Because of these dependencies a widespread and fundamental public debate about advertising and its influence on information and freedom of speech is difficult to obtain, at least through the usual media channels; otherwise these would saw off the branch they are sitting on. The notion that the commercial basis of media, journalism, and communication could have troubling implications for democracy is excluded from the range of legitimate debate just as capitalism is off-limits as a topic of legitimate debate in US political culture. An early critic of the structural basis of US journalism was Upton Sinclair with his novel The Brass Check in which he stresses the influence of owners,

advertisers, public relations, and economic interests on the media. In his book Our Master's Voice Advertising the social ecologist James Rorty (18901973) wrote: "The gargoyles mouth is a loudspeaker, powered by the vested interest of a two-billion dollar industry, and back of that the vested interests of business as a whole, of industry, of finance. It is never silent, it drowns out all other voices, and it suffers no rebuke, for it is not the voice of America? That is its claim and to some extent it is a just claim... It has taught us how to live, what to be afraid of, what to be proud of, how to be beautiful, how to be loved, how to be envied, how to be successful.. Is it any wonder that the American population tends increasingly to speak, think, feel in terms of this jabberwocky? That the stimuli of art, science, religion are progressively expelled to the periphery of American life to become marginal values, cultivated by marginal people on marginal time? The commercialisation of culture and sports Performances, exhibitions, shows, concerts, conventions and most other events can hardly take place without sponsoring The increasing lack arts and culture they buy the service of attraction. Artists are graded and paid according to their arts value for commercial purposes. Corporations promote renown artists, therefore getting exclusive rights in global advertising campaigns. Broadway shows, like La Bohme featured commercial props in its set. Advertising itself is extensively considered to be a contribution to culture. Advertising is integrated into fashion. On many pieces of clothing the company logo is the only design or is an important part of it. There is only little room left outside the consumption economy, in which culture and art can develop independently and where alternative values can be expressed. A

last important sphere, the universities, is under strong pressure to open up for business and its interests.

Inflatable billboard in front of a sports stadium

Competitive sports have become unthinkable without sponsoring and there is a mutual dependency. High income with advertising is only possible with a comparable number of spectators or viewers. On the other hand, the poor performance of a team or a sportsman results in less advertising revenues. Jrgen Hther and Hans-Jrg Stiehler talk about a Sports/Media Complex which is a complicated mix of media, agencies, managers, sports promoters, advertising etc. with partially common and partially diverging interests but in any case with common commercial interests. The media presumably is at centre stage because it can supply the other parties involved with a rare commodity, namely (potential) public attention. In sports the media are able to generate enormous sales in both circulation and advertising. Sports sponsorship is acknowledged by the tobacco industry to be valuable advertising. A Tobacco Industry journal in 1994 described the Formula One car as The most powerful advertising space in the world. . In a cohort study carried out in 22 secondary schools in England in 1994 and 1995 boys whose favourite television sport was motor racing had a 12.8% risk of

becoming regular smokers compared to 7.0% of boys who did not follow motor racing. Not the sale of tickets but transmission rights, sponsoring and merchandising in the meantime make up the largest part of sports associations and sports clubs revenues with the IOC (International Olympic Committee) taking the lead. The influence of the media brought many changes in sports including the admittance of new trend sports into the Olympic Games, the alteration of competition distances, changes of rules, animation of spectators, changes of sports facilities, the cult of sports heroes who quickly establish themselves in the advertising and entertaining business because of their media value and last but not least, the naming and renaming of sport stadiums after big companies. In sports adjustment into the logic of the media can contribute to the erosion of values such as equal chances or fairness, to excessive demands on athletes through public pressure and multiple exploitation or to deceit (doping, manipulation of results ). It is in the very interest of the media and sports to counter this danger because media sports can only work as long as sport exists.

Occupation and commercialisation of public space


Every visually perceptible place has potential for advertising. Especially urban areas with their structures but also landscapes in sight of through fares are more and more turning into media for advertisements. Signs, posters, billboards, flags have become decisive factors in the urban appearance and their numbers are still on the increase. Outdoor advertising has become unavoidable. Traditional billboards and transit shelters have cleared the way for more pervasive methods such as wrapped vehicles, sides of buildings, electronic signs, kiosks, taxis, posters, sides of buses, and more. Digital technologies are used on buildings to sport urban wall displays. In urban

areas commercial content is placed in our sight and into our consciousness every moment we are in public space. The German Newspaper Zeit called it a new kind of dictatorship that one cannot escape. Over time, this domination of the surroundings has become the natural state. Through long-term commercial saturation, it has become implicitly understood by the public that advertising has the right to own, occupy and control every inch of available space. The steady normalization of invasive advertising dulls the publics perception of their surroundings, re-enforcing a general attitude of powerlessness toward creativity and change, thus a cycle develops enabling advertisers to slowly and consistently increase the saturation of advertising with little or no public outcry. The massive optical orientation toward advertising changes the function of public spaces which are utilised by brands. Urban landmarks are turned into trademarks. The highest pressure is exerted on renown and highly frequented public spaces which are also important for the identity of a city (e.g. Piccadilly Circus, Times Square, Alexanderplatz). Urban spaces are public commodities and in this capacity they are subject to aesthetical environment protection, mainly through building regulations, heritage protection and landscape protection. It is in this capacity that these spaces are now being privatised. They are peppered with billboards and signs, they are remodelled into media for advertising.

Socio-cultural aspects: sexism, discrimination and stereotyping


Advertising has an agenda setting function which is the ability, with huge sums of money, to put consumption as the only item on the agenda. In the battle for a share of the public conscience this amounts to non-treatment (ignorance) of whatever is not commercial and whatever is not advertised for. Advertising should be reflection of society norms and give clear picture

of target market. Spheres without commerce and advertising serving the muses and relaxation remain without respect. With increasing force advertising makes itself comfortable in the private sphere so that the voice of commerce becomes the dominant way of expression in society. Advertising critics see advertising as the leading light in our culture. Sut Jhally and James Twitchell go beyond considering advertising as kind of religion and that advertising even replaces religion as a key institution. "Corporate advertising (or commercial media) is the largest single psychological project ever undertaken by the human race. Yet for all of that, its impact on us remains unknown and largely ignored. When I think of the medias influence over years, over decades, I think of those brainwashing experiments conducted by Dr. Ewen Cameron in a Montreal psychiatric hospital in the 1950s (see MKULTRA). The idea of the CIA-sponsored "depatterning" experiments was to outfit conscious, unconscious or semiconscious subjects with headphones, and flood their brains with thousands of repetitive "driving" messages that would alter their behaviour over time.Advertising aims to do the same thing."[ Advertising is especially aimed at young people and children and it increasingly reduces young people to consumers. For Sut Jhally it is not surprising that something this central and with so much being expended on it should become an important presence in social life. Indeed, commercial interests intent on maximizing the consumption of the immense collection of commodities have colonized more and more of the spaces of our culture. For instance, almost the entire media system (television and print) has been developed as a delivery system for marketers its prime function is to produce audiences for sale to advertisers. Both the advertisements it carries, as well as the editorial matter that acts as a support for it, celebrate the consumer society. The movie system, at one time outside the direct influence of the

broader marketing system, is now fully integrated into it through the strategies of licensing, tie-ins and product placements. The prime function of many Hollywood films today is to aid in the selling of the immense collection of commodities. As public funds are drained from the noncommercial cultural sector, art galleries, museums and symphonies bid for corporate sponsorship. In the same way effected is the education system and advertising is increasingly penetrating schools and universities. Cities, such as New York, accept sponsors for public playgrounds. Even the pope has been commercialized The popes 4-day visit to Mexico in 1999 was sponsored by Frito-Lay and PepsiCo. The industry is accused of being one of the engines powering a convoluted economic mass production system which promotes consumption. As far as social effects are concerned it does not matter whether advertising fuels consumption but which values, patterns of behaviour and assignments of meaning it propagates. Advertising is accused of hijacking the language and means of pop culture, of protest movements and even of subversive criticism and does not shy away from scandalizing and breaking taboos (e.g. Benneton). This in turn incites counter action, what Kalle Lasn in 2001 called Jamming the Jam of the Jammers. Anything goes. It is a central social-scientific question what people can be made to do by suitable design of conditions and of great practical importance. For example, from a great number of experimental psychological experiments it can be assumed, that people can be made to do anything they are capable of, when the according social condition can be created. Advertising often uses stereotype gender specific roles of men and women reinforcing existing clichs and it has been criticized as inadvertently or even intentionally promoting sexism, racism, and ageism At very least, advertising often reinforces stereotypes by drawing on recognizable "types"

in order to tell stories in a single image or 30 second time frame. Activities are depicted as typical male or female (stereotyping). In addition people are reduced to their sexuality or equated with commodities and gender specific qualities are exaggerated. Sexualized female bodies, but increasingly also males, serve as eye-catchers. In advertising it is usually a woman being depicted as

servants of men and children that react to the demands and complaints of their loved ones with a bad conscience and the promise for immediate improvement (wash, food)

a sexual or emotional play toy for the self-affirmation of men a technically totally clueless being (almost always male) that can only manage a childproof operation

female expert, but stereotype from the fields of fashion, cosmetics, food or at the most, medicine

as ultra thin, slim, and very skinny. doing ground-work for others, e.g. serving coffee while a journalist interviews a politician

A large portion of advertising deals with promotion of products that pertain to the "ideal body image." This is mainly targeted toward women, and, in the past, this type of advertising was aimed nearly exclusively at women. Women in advertisements are generally portrayed as good-looking women who are in good health. This, however, is not the case of the average woman. Consequently, they give a negative message of body image to the average woman. Because of the media, girls and women who are overweight, and otherwise "normal" feel almost obligated to take care of themselves and stay fit. They feel under high pressure to maintain an acceptable bodyweight and take care of their health. Consequences of this are low self-esteem,eating disorders, self mutilations, and beauty operations for those women that just

cannot bring themselves eat right or get the motivation to go to the gym. The EU parliament passed a resolution in 2008 that advertising may not be discriminating and degrading. This shows that politicians are increasingly concerned about the negative impacts of advertising. However, the benefits of promoting overall health and fitness are often overlooked. Men are also negatively portrayed as incompetent and the butt of every joke in advertising.

Children and adolescents as target groups


The childrens market, where resistance to advertising is weakest, is the pioneer for ad creep. Kids are among the most sophisticated observers of ads. They can sing the jingles and identify the logos, and they often have strong feelings about products. What they generally don't understand, however, are the issues that underlie how advertising works. Mass media are used not only to sell goods but also ideas: how we should behave, what rules are important, who we should respect and what we should value.[73] Youth is increasingly reduced to the role of a consumer. Not only the makers of toys, sweets, ice cream, breakfast food and sport articles prefer to aim their promotion at children and adolescents. For example, an ad for a breakfast cereal on a channel aimed at adults will have music that is a soft ballad, whereas on a channel aimed at children, the same ad will use a catchy rock jingle of the same song to aim at kids. Advertising for other products preferably uses media with which they can also reach the next generation of consumers. Key advertising messages exploit the emerging independence of young people. Cigarettes, for example, are used as a fashion accessory and appeal to young women. Other influences on young people include the linking of sporting heroes and smoking through sports sponsorship, the use of cigarettes by popular characters in television programmes and cigarette

promotions. Research suggests that young people are aware of the most heavily advertised cigarette brands. Product placements show up everywhere, and children aren't exempt. Far from it. The animated film, Foodfight, had thousands of products and character icons from the familiar (items) in a grocery store. Children's books also feature branded items and characters, and millions of them have snack foods as lead characters. Business is interested in children and adolescents because of their buying power and because of their influence on the shopping habits of their parents. As they are easier to influence they are especially targeted by the advertising business. The marketing industry is facing increased pressure over claimed links between exposure to food advertising and a range of social problems, especially growing obesity levels.. In 2001, childrens programming accounted for over 20% of all US television watching. The global market for childrens licensed products was some 132 billion US dollars in 2002. Advertisers target children because, e.g. in Canada, they represent three distinct markets: 1. Primary Purchasers ($2.9 billion annually) 2. Future Consumers (Brand-loyal adults) 3. Purchase Influencers ($20 billion annually) Kids will carry forward brand expectations, whether positive, negative, or indifferent. Kids are already accustomed to being catered to as consumers. The long term prize: Loyalty of the kid translates into a brand loyal adult customer The average Canadian child sees 350,000 TV commercials before graduating from high school, spends nearly as much time watching TV as attending classes. In 1980 the Canadian province of Qubec banned advertising for

children under age 13. In upholding the consititutional validity of the Quebec Consumer Protection Act restrictions on advertising to children under age 13 (in the case of a challenge by a toy company) the Court held: ...advertising directed at young children is per se manipulative. Such advertising aims to promote products by convincing those who will always believe. Norway (ads directed at children under age 12), and Sweden (television ads aimed at children under age 12) also have legislated broad bans on advertising to children, during child programmes any kind of advertising is forbidden in Sweden, Denmark, Austria and Flemish Belgium. In Greece there is no advertising for kids products from 7 to 22 h. An attempt to restrict advertising directed at children in the US failed with reference to the First Amendment. In Spain bans are also considered undemocratic.

Opposition and campaigns against advertising

Billboard in Lund, Sweden, saying "One Night Stand?" (2005)

According to critics, the total commercialization of all fields of society, the privatization of public space, the acceleration of consumption and waste of resources including the negative influence on lifestyles and on the

environment has not been noticed to the necessary extent. The hypercommercialization of the culture is recognized and roundly detested by the citizenry, although the topic scarcely receives a whiff of attention in the media or political culture. The greatest damage done by advertising is precisely that it incessantly demonstrates the prostitution of men and women who lend their intellects, their voices, their artistic skills to purposes in which they themselves do not believe, and . that it helps to shatter and ultimately destroy our most precious non-material possessions: the confidence in the existence of meaningful purposes of human activity and respect for the integrity of man. The struggle against advertising is therefore essential if we are to overcome the pervasive alienation from all genuine human needs that currently plays such a corrosive role in our society. But in resisting this type of hyper-commercialism we should not be under any illusions. Advertising may seem at times to be an almost trivial of omnipresent aspect of our economic system. Yet, as economist A. C. Pigou pointed out, it could only be removed altogether if conditions of monopolistic competition inherent to corporate capitalism were removed. To resist it is to resist the inner logic of capitalism itself, of which it is the pure expression. Visual pollution, much of it in the form of advertising, is an issue in all the world's large cities. But what is pollution to some is a vibrant part of a city's fabric to others. New York City without Times Square's huge digital billboards or Tokyo without the Ginza's commercial panorama is unthinkable. Piccadilly Circus would be just a London roundabout without its signage. Still, other cities, like Moscow, have reached their limit and have begun to crack down on over-the-top outdoor advertising.. Many communities have chosen to regulate billboards to protect and enhance their scenic character. The following is by no means a complete list of such

communities, but it does give a good idea of the geographic diversity of cities, counties and states that prohibit new construction of billboards. Scenic America estimates the nationwide total of cities and communities prohibiting the construction of new billboards to be at least 1500. A number of States in the US prohibit all billboards:

Vermont - Removed all billboards in 1970s Hawaii - Removed all billboards in 1920s Maine - Removed all billboards in 1970s and early 80s Alaska - State referendum passed in 1998 prohibits billboards Almost two years ago the city of So Paulo, Brazil, ordered the downsizing or removal of all billboards and most other forms of commercial advertising in the city.

Technical appliances, such as Spam filters, TV-Zappers, Ad-Blockers for TVs and stickers on mail boxes: No Advertising and an increasing number of court cases indicate a growing interest of people to restrict or rid themselves of unwelcome advertising. Consumer protection associations, environment protection groups,

globalization opponents, consumption critics, sociologists, media critics, scientists and many others deal with the negative aspects of advertising. Antipub in France, subvertising, culture jamming and adbusting have become established terms in the anti-advertising community. On the international level globalization critics such as Naomi Klein and Noam Chomsky are also renowned media and advertising critics. These groups criticize the complete occupation of public spaces, surfaces, the airwaves, the media, schools etc. and the constant exposure of almost all senses to advertising messages, the invasion of privacy, and that only few consumers are aware that they themselves are bearing the costs for this to the very last

penny. Some of these groups, such as the The Billboard Liberation Front Creative Group in San Francisco or Adbusters in Vancouver, Canada, have manifestos. Grassroots organizations campaign against advertising or certain aspects of it in various forms and strategies and quite often have different roots. Adbusters, for example contests and challenges the intended meanings of advertising by subverting them and creating unintended meanings instead. Other groups, like Illegal Signs Canada try to stem the flood of billboards by detecting and reporting ones that have been put up without permit. Examples for various groups and organizations in different countries are L'association Rsistance l'Agression Publicitaire in France, where also media critic Jean Baudrillard is a renowned author. The Anti Advertising Agency works with parody and humour to raise awareness about advertising. and Commercial Alert campaigns for the protection of children, family values, community, environmental integrity and democracy. Media literacy organisations aim at training people, especially children in the workings of the media and advertising in their programmes. In the US, for example, the Media Education Foundation produces and distributes documentary films and other educational resources MediaWatch, a Canadian non-profit women's organization works to educate consumers about how they can register their concerns with advertisers and regulators. The Canadian Media Awareness Network/Rseau ducation mdias offers one of the worlds most comprehensive collections of media education and Internet literacy resources. Its member organizations represent the public, non-profit but also private sectors. Although it stresses its independence it accepts financial support from Bell Canada, CTVGlobeMedia, CanWest, TELUS and S-VOX. To counter the increasing criticism of advertising aiming at children media literacy organizations are also initiated and funded by corporations and the

advertising business themselves. In the US The Advertising Educational Foundation was created in 1983 supported by ad agencies, advertisers and media companies. It is the advertising industry's provider and distributor of educational content to enrich the understanding of advertising and its role in culture, society and the economy sponsored for example by American Airlines, Anheuser-Busch, Campbell Soup, Coca-Cola, Colgate-Palmolive, Walt Disney, Ford, General Foods, General Mills, Gillette, Heinz, Johnson & Johnson, Kellogg, Kraft, Nestle, Philip Morris, Quaker Oats, Nabisco, Schering, Sterling, Unilever, Warner Lambert, advertising agencies like Saatchi & Saatchi Compton and media companies like American Broadcasting Companies, CBS, Capital Cities Communications, Cox Enterprises, Forbes, Hearst, Meredith, The New York Times, RCA/NBC, Readers Digest, Time, Washington Post, just to mention a few. Canadian businesses established Concerned Children's Advertisers in 1990 to instill confidence in all relevant publics by actively demonstrating our commitment, concern, responsibility and respect for children. Members are CanWest, Corus, CTV, General Mills, Hasbro, Hersheys, Kelloggs, Loblaw, Kraft, Mattel, McDonalds, Nestle, Pepsi, Walt Disney, Weston as well as almost 50 private broadcast partners and others. Concerned Children's Advertisers was example for similar organizations in other countries like Media smart in the United Kingdom with offspring in Germany, France, the Netherlands and Sweden. New Zealand has a similar business-funded programme called Willie Munchright. While such interventions are claimed to be designed to encourage children to be critical of commercial messages in general, critics of the marketing industry suggest that the motivation is simply to be seen to address a problem created by the industry itself, that is, the negative social impacts to which marketing activity has contributed. By contributing media literacy education resources, the marketing industry is positioning itself as being part of the

solution to these problems, thereby seeking to avoid wide restrictions or outright bans on marketing communication, particularly for food products deemed to have little nutritional value directed at children. The need to be seen to be taking positive action primarily to avert potential restrictions on advertising is openly acknowledged by some sectors of the industry itself. Furthermore, Hobbs (1998) suggests that such programs are also in the interest of media organizations that support the interventions to reduce criticism of the potential negative effects of the media themselves.

Taxation as revenue and control


Public interest groups suggest that access to the mental space targeted by advertisers should be taxed, in that at the present moment that space is being freely taken advantage of by advertisers with no compensation paid to the members of the public who are thus being intruded upon. This kind of tax would be a Pigovian tax in that it would act to reduce what is now increasingly seen as a public nuisance. Efforts to that end are gathering more momentum, with Arkansas and Maine considering bills to implement such a taxation. Florida enacted such a tax in 1987 but was forced to repeal it after six months, as a result of a concerted effort by national commercial interests, which withdrew planned conventions, causing major losses to the tourism industry, and cancelled advertising, causing a loss of 12 million dollars to the broadcast industry alone. In the US, for example, advertising is tax deductible and suggestions for possible limits to the advertising tax deduction are met with fierce opposition from the business sector, not to mention suggestions for a special taxation. In other countries, advertising at least is taxed in the same manner services are taxed and in some advertising is subject to special taxation although on a very low level. In many cases the taxation refers especially to media with advertising (e.g. Austria, Italy, Greece, Netherlands, Turkey, Estonia). Tax on advertising in European countries

Belgium:

Advertising or billboard

tax

(taxe d'affichage or

aanplakkingstaks) on public posters depending on size and kind of paper as well as on neon signs

France: Tax on television commercials (taxe sur la publicit tlvise) based on the cost of the advertising unit

Italy: Municipal tax on acoustic and visual kinds of advertisements within the municipality (imposta communale sulla publicit) and municipal tax on signs, posters and other kinds of advertisements (diritti sulle pubbliche offisioni), the tariffs of which are under the jurisdiction of the municipalities

Netherlands: Advertising tax (reclamebelastingen) with varying tariffs on certain advertising measures (excluding ads in newspapers and magazines) which can be levied by municipalities depending on the kind of advertising (billboards, neon signs etc.)

Austria: Municipal announcement levies on advertising through writing, pictures or lights in public areas or publicly accessible areas with varying tariffs depending on the fee, the surface or the duration of the advertising measure as well as advertising tariffs on paid ads in printed media of usually 10% of the fee.

Sweden: Advertising tax (reklamskatt) on ads and other kinds of advertising (billboards, film, television, advertising at fairs and exhibitions, flyers) in the range of 4% for ads in newspapers and 11% in all other cases. In the case of flyers the tariffs are based on the production costs, else on the fee

Spain: Municipalities can tax advertising measures in their territory with a rather unimportant taxes and fees of various kinds.

In his book When Corporations Rule the World US author and globalization critic David Korten even advocates a 50% tax on advertising to counterattack what he calls "an active propaganda machinery controlled by the world's largest corporations which constantly reassures us that consumerism is the path to happiness, governmental restraint of market excess is the cause of our distress, and economic globalization is both a historical inevitability and a boon to the human species."

Regulation
In the US many communities believe that many forms of outdoor advertising blight the public realm. As long ago as the 1960s in the US there were attempts to ban billboard advertising in the open countryside. Cities such as So Paulo have introduced an outright ban with London also having specific legislation to control unlawful displays. There have been increasing efforts to protect the public interest by regulating the content and the influence of advertising. Some examples are: the ban on television tobacco advertising imposed in many countries, and the total ban of advertising to children under 12 imposed by the Swedish government in 1991. Though that regulation continues in effect for broadcasts originating within the country, it has been weakened by the European Court of Justice, which had found that Sweden was obliged to accept foreign programming, including those from neighboring countries or via satellite. In Europe and elsewhere, there is a vigorous debate on whether (or how much) advertising to children should be regulated. This debate was exacerbated by a report released by the Kaiser Family Foundation in February 2004 which suggested fast food advertising that targets children was an important factor in the epidemic of childhood obesity in the United States. In New Zealand, South Africa, Canada, and many European countries, the advertising industry operates a system of self-regulation. Advertisers, advertising agencies and the media agree on a code of advertising standards that they attempt to uphold. The general aim of such codes is to ensure that any advertising is 'legal, decent, honest and truthful'. Some self-regulatory organizations are funded by the industry, but remain independent, with the

intent of upholding the standards or codes like the Advertising Standards Authority in the UK. In the UK most forms of outdoor advertising such as the display of billboards is regulated by the UK Town and County Planning system. Currently the display of an advertisement without consent from the Planning Authority is a criminal offense liable to a fine of 2,500 per offence. All of the major outdoor billboard companies in the UK have convictions of this nature. Naturally, many advertisers view governmental regulation or even selfregulation as intrusion of their freedom of speech or a necessary evil. Therefore, they employ a wide-variety of linguistic devices to bypass regulatory laws (e.g. printing English words in bold and French translations in fine print to deal with the Article 120 of the 1994 Toubon Law limiting the use of English in French advertising). The advertisement of controversial products such as cigarettes and condoms are subject to government regulation in many countries. For instance, the tobacco industry is required by law in most countries to display warnings cautioning consumers about the health hazards of their products. Linguistic variation is often used by advertisers as a creative device to reduce the impact of such requirements.

Future
Global advertising Advertising has gone through five major stages of development: domestic, export, international, multi-national, and global. For global advertisers, there are four, potentially competing, business objectives that must be balanced when developing worldwide advertising: building a brand while speaking with one voice, developing economies of scale in the creative process,

maximising local effectiveness of ads, and increasing the companys speed of implementation. Born from the evolutionary stages of global marketing are the three primary and fundamentally different approaches to the development of global advertising executions: exporting executions, producing local executions, and importing ideas that travel. Advertising research is key to determining the success of an ad in any country or region. The ability to identify which elements and/or moments of an ad that contributes to its success is how economies of scale are maximised. Once one knows what works in an ad, that idea or ideas can be imported by any other market. Market research measures, such as Flow of Attention, Flow of Emotion and branding moments provide insight into what is working in an ad in any country or region because the measures are based on the visual, not verbal, elements of the ad. Trends With the dawn of the Internet came many new advertising opportunities. Popup, Flash, banner, Popunder, advergaming, and email advertisements (the last often being a form of spam) are now commonplace. In the last three quarters of 2009 mobile and internet advertising grew by 18.1% and 9.2% respectively. Older media advertising saw declines: -10.1% (TV), -11.7% (radio), -14.8% (magazines) and -18.7% (newspapers ). The ability to record shows on digital video recorders (such as TiVo) allow users to record the programs for later viewing, enabling them to fast forward through commercials. Additionally, as more seasons of pre-recorded box sets are offered for sale of television programs; fewer people watch the shows on TV. However, the fact that these sets are sold, means the company will receive additional profits from the sales of these sets. To counter this effect,

many advertisers have opted for product placement on TV shows like Survivor. Particularly since the rise of "entertaining" advertising, some people may like an advertisement enough to wish to watch it later or show a friend. In general, the advertising community has not yet made this easy, although some have used the Internet to widely distribute their ads to anyone willing to see or hear them. Another significant trend regarding future of advertising is the growing importance of the niche market using niche or targeted ads. Also brought about by the Internet and the theory of The Long Tail, advertisers will have an increasing ability to reach specific audiences. In the past, the most efficient way to deliver a message was to blanket the largest mass market audience possible. However, usage tracking, customer profiles and the growing popularity of niche content brought about by everything from blogs to social networking sites, provide advertisers with audiences that are smaller but much better defined, leading to ads that are more relevant to viewers and more effective for companies' marketing products. Among others, Comcast Spotlight is one such advertiser employing this method in their video on demand menus. These advertisements are targeted to a specific group and can be viewed by anyone wishing to find out more about a particular business or practice at any time, right from their home. This causes the viewer to become proactive and actually choose what advertisements they want to view. In the realm of advertising agencies, continued industry diversification has seen observers note that big global clients don't need big global agencies any more. This trend is reflected by the growth of non-traditional agencies

in various global markets, such as Canadian business TAXI and SMART in Australia and has been referred to as "a revolution in the ad world". In freelance advertising, companies hold public competitions to create ads for their product, the best one of which is chosen for widespread distribution with a prize given to the winner(s). During the 2007 Super Bowl, PepsiCo held such a contest for the creation of a 30-second television ad for the Doritos brand of chips, offering a cash prize to the winner. Chevrolet held a similar competition for their Tahoe line of SUVs. This type of advertising, however, is still in its infancy. It may ultimately decrease the importance of advertising agencies by creating a niche for independent freelancers. Advertising education has become widely popular with bachelor, master and doctorate degrees becoming available in the emphasis. A surge in advertising interest is typically attributed to the strong relationship advertising plays in cultural and technological changes, such as the advance of online social networking. A unique model for teaching advertising is the student-run advertising agency, where advertising students create campaigns for real companies. Organizations such as American Advertising Federation and AdU Network partner established companies with students to create these campaigns.

SALES PROMOTION
According to the American Marketing Association, Sales Promotion consists of those marketing activities other than personal advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays shows and expositions, demonstration and various non-recurrent selling efforts not in the ordinary routine. Sales promotion activities are impersonal and usually non-recurring and are directed at the ultimate consumers, industrial consumers and middlemen. These activities tend to supplement the advertising and personal selling efforts. Examples of sales promotion are free product samples, trading stamps, store displays, premiums, coupons and trade shows. For many organisations, including the marketers of food, toys and clothing, store displays are an important sales promotion device. Display exposes the promotion messages to consumers at the time and place of purchase. Such exposure is especially important for items that are bought on impulse. Numerous consumers products are purchased in stores that use self-service selling method's. Marketers of such items need effective display in order to distinguish their products from those of their rivals.

PUBLICITY
Publicity is a means of promoting the mass market and is similar to advertising, except that it is free, is found in the editorial portion of news media and pertains to newsworthy events. The most common type of publicity are news release (also know as press release), photographs and feature stories. Marketers have less control over the nature of the publicity that their organisation and products receive than they have over their advertising, personal selling and sales promotions messages. Upon receiving

a news release, for instance, the editor or broadcast station programme director may choose to throw the release in the waste paper basket, change the hording, or print or broadcast it in the original form. The disposition of the news release is entirely in the hands of the media and cannot be dictated by the marketer. Publicity may be negative as well as positive. Some products and brands have received bad publicity; for example cigarettes, wings, artificial sweeteners have been branded unsafe or unhealthy in the publicity which they would rather have done without. Many a companies and trade association officials attempt to develop favourable working relationships, with the media in order to minimise bad publicity. They realize that such communications to the public may have every adverse impact upon the image of the organisation.

PERSONAL SELLING
Personal selling consists of persons to communication between the sales persons and their prospects. Unlike advertising, it involves personal interactions between the sources and the destination. Advertising aims at grouping the shotgun approach, while personal selling aims at individuals the right approach. Sales persons are in the position to tailor their messages according to the unique characteristics of each prospect. Further, by observing and listening, sales persons receive immediate feedback on the extent to which their messages are getting across. If feedback indicates that the message is not getting across, the sales person may quickly adjust it or the method of its presentation. Personal selling may be a very intense means of promotion. Consumers can easily leave the room-during a TV commercial, ignore a store display. The most effective method of promotion probably is to have sales person provided that the organisation has sufficient funds. The most effective

method of promotion probably is to have sales person call upon every target consumers, for many institutions, especially those that appeal to the mass market, this would be terribly inefficient. As a result, they employ mass marketing techniques such as advertising, personal selling is very important in industrial marketing.

PUBLIC RELATIONS
Marketers engage in public relations in order to develop a favourable image of their organisation and products join the eyes of the public. They direct this activity to parties other than target consumers. These "other" include the public at large labour unions, the press and environmental groups. Public relations activities include sponsoring, lobbying and using promotion message to persuade members of the public to take up a desired position. The term public relations refers to a firm's communication and relationships with the various sections of the public. These sections include the organisation customers, suppliers, share holders, employees, the government, the general public and the society in which the organisation operates. Public relations programme may higher be formal or informal. The critical point is that every organisation, whether or not it has a formalized (organised, programme, should be concerned about its public relations.

INTRODUCTION TO CUSTOMER SATISFACTION


Todays companies are facing their toughest competition ever. These companies can outdo their competition if they can move from product and sales philosophy to a marketing philosophy. We spell out in detail how companies can go about winning customers and outperforming competitors. The answer lies in doing a better job of meeting and satisfying customers needs. Only customer-centered companies are adept at building customers, not just building product. They are skilled in market engineering, not just product engineering. Too many companies think that it is the marketing/sales departments job to procure customers. If that department cannot, the company draws the conclusion that its marketing people arent very good . but in fact, marketing is only one factor in attracting and keeping customers. The best marketing department in the world cannot spell products that are poorly made or fail to meet anyones need. The marketing department can be effective only in companies whose various departments and employees have designed and implemented a competitively superior customer value-delivery system. Although the customer oriented firms seek to create high customer satisfaction, its main goal is to maximize customer satisfaction ,first the company can increase customer satisfaction by lowering its prices, but

results may be lower profits second the company might be able to increase prices. Third the company has many stake-holders including employees, dealers, suppliers and stock holders spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other partner. Estimate the company must operate on the philosophy that it is trying to deliver a high level of satisfaction to the other stake-holder within the constrains of its resources. From the past studies of last three decades we observed that the companys first task is to create and satisfy customers. But todays customers face a vast array of product and brand choice prices and suppliers. It is generally believed that customers estimate which offer will deliver the most value customers are like value maximizes, within the bounds of search costs and limited knowledge, mobility income, they form an expectation of value and act on it, whether or not the offer lives up to the value expectations affects customers satisfaction and their repurchase probability.

CUSTOMER VALUE
Customer delivered value is the difference between the total customer value and total consumer cost. Consumer value is the bundle of benefits customers expect from a given product or service. Total consumer cost it the

bundle of costs consumer expect to incur in evaluating, obtaining and using the product. That two customers can report being highly satisfied for different reasons. one may be easily satisfied most of the time and other might be hard to please but was pleased on this occasion. Companies should also note that managers and salespeople can manipulate their ratings on customer satisfaction. They can be especially nice just before the survey. They can also try to exclude unhappy customers from the survey. Another danger is that if customers will know that the company will go out of its way to please customers, some customers may express high dissatisfaction (even if satisfied) in order to receive more concession. DELIVERING CUSTOMER VALUE AND SATISFACTION: The value chain is a tool for identifying ways to create more customer value. every firm is a collection of activities that are performed to design, produce, market, deliver and support its product. The value chain identifies nine strategically relevant activities that create value and cost in a specific business. These nine value-creating activities consist of five primary activities and four support activities.

INTERNAL RECORD SYSTEM


Marketing managers rely on internal reports on orders, sales, prices, cost, inventory levels, receivables, payables, and so on. By analyzing this information, they can spot important opportunities and problems. THE MARKETING INTELLIGENCE SYSTEM A marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment. Marketing managers collect marketing intelligence by reading books, newspapers and trade publications; talking to customers, suppliers and distributors; meeting with other company mangers. First, it can train and motivate the sales force to spot and report new developments. Sales representatives are positioned to pick up information missed by other means. Second, the company can motivate the distributors, retailers, and other intermediaries to pass along important intelligence. Third, companies can collect competitive intelligence by purchasing competitors products; attending open houses and trade shows; reading competitors publishing reports; attending stockholders meeting; talking to employees, dealers, distributors, suppliers, and freight agents; collecting

competitors ads; and looking up news stories about competitors on the internet. SOURCES OF INTERNAL DATA Sources of internal data are of two types: 1. 2. Internal or primary data External or secondary data.

Internal Sources
Company profit-loss statements, balance sheets, sales figures, sales call reports, invoices, inventory reports and prior research reports.

External Sources
A) Government publications B) Periodicals and books

C) Commercial data

Consumer Behaviour
The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and how marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. Understanding these issues helps in adapting strategies by taking the consumer into consideration. For example, by understanding that a number of different messages compete for our potential customers attention, one learns that to be effective, advertisements must usually be repeated extensively. It is also learnt that consumers will sometimes be persuaded more by logical arguments, but at other times will be persuaded more by emotional or symbolic appeals. By understanding the consumer, the

company will be able to make a more informed decision as to which strategy to employ. The "official" definition of consumer behavior given in the text is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest. Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy. There are four main applications of consumer behavior: The most obvious is for marketing strategyi.e., for making better marketing campaigns. For example, by understanding that consumers are

more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers brand choices. As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. There are several units in the market that can be analyzed.

CONSUMER BUYING BEHAVIOUR


INTRODUCTION

Understanding the buying behavior of the target market for its company products is the essential task for the marketing dept. The job of the marketers is to think customer and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, profits to customer and benefits to the stakeholders.The job of marketer is to meet and satisfy target customers needs and wants but knowing customer" is not a simple task. Marketers must study the customer taste, preferences, wants, shopping and buying behavior because such study provides the clues for developing the new products, price, product changes, messages and other marketing mix elements. In understand the concept of buying we have the some of the key questions. They are: Why does the market buying? Who does the market buying? What does the market buying? When does the market buying? Where does the market buying? How does the market buying? Objective Organization Objects Occasions Outlets Operations

Along with that there are two more questions that are also related with above. They are: How do the buyers characteristics influence the buying behavior? How does the buyer make purchasing decisions? These are some of questions that solutions help to predict the buying behaviour.

WAYS OF BUYING BEHAVIOUR


The computer processor company divides its buying behavior in both way i.e. Consumer and Business. The both of term have same meaning as to define in the chapter of buying behavior. The both consumer and business are divided further as SMB Small Medium Big - to identify the type of client according to their sales and SMB have their own group of clients.

1. CONSUMER BUYING BEHAVIOR:It includes all those person who are the direct user of the computers and their processors or for their employees and family member use. They are not indulging in the sale activity of the computer and other Products. i.e. home users, companies for their employees.

2. BUSINESS BUYING BEHAVIOR: It includes all those person who are not the direct user of the computers and their processors or for their employees and family member use. They are indulging in the sale activity of the computer and other Products. They can also be authorized from companies i.e. Intel. i.e. hp, HCL, Assemlers.

ROLES IN BUYING BEHAVIOUR In the buying behavior there are different roles played in each of consumer and business. * CONSUMER BUYING ROLES In the consumer buying there are different buying roles; i.e. Initiator: -- A Person who first suggest the idea of buying. Influencer: - A Person who influence the buying decision. Decider: - A Person who takes decisions regarding buying Buyer: - A Person who actually buys the products. User: - A Person who is the user of the product.

* BUSINESS BUYING ROLES In the business buying there are different buying roles; i.e. Approver: -- A Person who approves the idea of buying. Influencer: -- A Person who influence the buying decision. Decider: -- A Person who takes decisions regarding buying Buyer: -- A Person who actually buys the products. User: -- A Person who is the user of the product.

TYPES OF BUYING BEHAVIOUR


There is a great difference between the purchasing of a computer and a car. Buying decisions making varies with the type of buying decision. The types of buying behavior divided are separately divided as per of consumer and business buying. TYPES OF CONSUMER BUYING BEHAVIOUR This is to be extensively divided in four types: 1. Complex Buying Behavior: -- when the consumer are highly involved in the purchase and aware of significant differences among brands. 2. Dissonance Reducing Buying Behavior: -- when the consumer are highly involved in the purchase but sees little differences among brands. 3. Habitual Buying Behavior: -- when the consumer are low involved in the purchase but sees absence of aware of differences among brands. 4. Variety Seeking Buying Behavior: -- when the consumer are low involved in the purchase but sees significant of differences among brands.

TYPES OF BUSINESS BUYING BEHAVIOUR This is to be extensively divided in four types: 1. Straight Rebuy: -- In this buyer approves the purchasing on the basis of the past buying records and satisfaction with suppliers.

2. Modified Rebuy: -- where the buyer wants to modify product specifications. Prices, delivery requirements. 3. New Task: -- when the buyer approves the purchasing of product for the first time by consisting of the good and efficient salesperson. So, that its the types of the buying behavior of consumer as well as business buyer.

FACTOR AFFECTING THE BUYING BEHAVIOR


There are various factors that affect the buying behavior on both consumer as well as business buying.

FACTOR AFFECTING CONSUMER BUYING BEHAVIOR Cultural Factors Culture Personal factors Age Sub Culture Occupation Group Life Styles Social Class Personality Family Perception BUYER Motivation Social Factors References Psychological

Learning Roles Statues and

FACTOR AFFECTING BUSINESS BUYING BEHAVIOR

Environmental Economic Political Personal Policies Cost of Money Procedures Competition Structure Technological Authority Status Empathy Individual Age Education Income BUSINESS BUYER Organizational Objective Inter

So, these are the factors that affect the consumer as well as business buying behaviour.
BUYING DECISION MAKING

Consumers make the decision on the different brands available in the market. They will give the choice over the different brands. So there is a model that describes how the consumers make the choice and preferences over the different brands. The Following is the model of buying decision-making: 1. Total Set: - In this they used to maintain the list of the all-leading brand to those particular products, that are available in the market.

2. Awareness Set: - After that they used to make the list of those selected brands with that they are something knows and aware about their products. 3. Consideration Set: - After that they used to make the list from the list of known brands, about those they know something better than other brands. 4. Choice Set: - After the consideration of some brands, a list of choice brands those having the greater chances of acceptance over others. 5. Decision Set: - After the all of the process in last most preferred, most acceptable during the buying decision process. So that its a process, which defines that, how a buying decisions are made among the number of brands available In the market. So that its all about the general buying behavior of cons, and business buying according to marketing concept, because to understand and making study over buying behavior first its necessary to aware with concept of buying behaviour.

BUYING BEHAVIOUR
INTRODUCTION
Understanding the buying behavior of the target market for its company products is the essential task for the marketing dept. The job of the marketers is to think customer and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, profits to customer and benefits to the stakeholders. The computer processor company divides its buying behavior in both way i.e. Consumer and Business. The both of term have same meaning as to define in the chapter of buying behavior. The both consumer and business are divided further as SMB Small Medium Big - to identify the type of client according to their sales and SMB have their own group of clients. CONSUMER BUYING BEHAVIOR:It includes all those person who are the direct user of the computers and their processors or for their employees and family member use. They are not indulging in the sale activity of the computer and other Products. i.e. home users, companies for their employees. BUSINESS BUYING BEHAVIOR: It includes all those person who are not the direct user of the computers and their processors or for their employees and family member use. They are

indulging in the sale activity of the computer and other Products. They can also be authorized from companies i.e. Intel. i.e. hp, HCL, Assemblers.

There is model of the both of behavior as suggested by companies with the dividing in the SMB, the both of the buying behavior. The models are below for both behaviors: CONSUMER BUYING SMB SMALL Home PC users Doctors Chemists Shop Keepers Software Comp. And Self-Employed Scientists MODEL OF CONSUMER BUYING BEHAVIOUR MEDIUM Departmental Stores Small Industries Laptop Users Small Software Companies Big Industries BIG Banks, Insurance

BUSINESS BUYING SMB SMALL Retailers Small Traders Small Assemblers MEDIUM Whole Sellers Big Assemblers Intel Agents BIG Auth. Assemblers e.g. HP, HCL, ACER Super Store Retailers

MODEL OF BUSINESS BUYING BEHAVIOUR So thats all about the category of computer processors buying behavior as to each divided in SMB as to their use and sales point. Now we will be discuss with the concept of the from the point our study and discuss how these companies make it possible.

PROBLEM FORMULATION In this report we are making a study report for the buying behavior of Processors in order to know the position of different sets Processors brands of different companies in the market. So that we divide the problem in sub parts to make the good and result oriented study report.

Problem defined as: What is the Position of the computer processors all companies in the

Indian market? Different players in the processor market. Perception of dealers and consumer about these companies. Physical distribution of these companies competing with others. Taste and preferences of dealer and consumer towards computer. Price effect over consumer and dealer between competitions. Marketing and sales promotion activity of these companies. Competition in terms of price, technology and after sale service. Find out the consumer and business target groups. So as to study the buying behavior we divide the problem overstated parts, so that it can be easily formulate and solved.

SIGNIFICANCE OF PROBLEM
Every one knows the time of manual working and now we have different set of machines for the different work, it makes our work very easy and fast. In these machines computer is one and buying of a computes is not a simple task. In that buying behavior for the computer processors has Its own significance. For that we divide the problem as stated in above sect and each problem has its own significance to answer the following questions: Why, When, How, What, where and who is buying the Computer? Why, When, How, What, where and who is buying processors and which one? Why, When, How, What, where and who is buying only INTEL processors? Why, When, How, What, where and who is buying other than INTEL processors?

CONSUMER BUYING BEHAVIOUR PROCESS


What influences consumers to purchase products or services? The Consumer Buying process is a complex matter as many internal and external factors have an impact on the buying decisions of the consumer. When purchasing a product there several processes, which consumers go through. These will be discussed below.

1. Problem/Need Recognition How do you decide you want to buy a particular product or service? It could be that your DVD player stops working and you now have to look for a new one, all those DVD films you purchased you can no longer play! So you have a problem or a new need. For high value items like a DVD player or a car or other low frequency purchased products this is the process we would take. However, for impulse low frequency purchases e.g. confectionery the process is different.

2. Information search So we have a problem, our DVD player no longer works and we need to buy a new one. Whats the solution? Yes go out and purchase a new one, but which brand? Shall we buy the same brand as the one that blew up? Or stay clear of that? Consumer often go on some form of information search to help them through their purchase decision. Sources of information could be family, friends, neighbours who may have the product you have in mind, alternatively you may ask the sales people, or dealers, or read specialist

magazines like What DVD? to help with their purchase decision. You may even actually examine the product before you decide to purchase it.

3. Evaluation of different purchase options. So what DVD player do we purchase? Shall it be Sony, Toshiba or Bush? Consumers allocate attribute factors to certain products, almost like a point scoring system which they work out in their mind over which brand to purchase. This means that consumers know what features from the rivals will benefit them and they attach different degrees of importance to each attribute. For example sound maybe better on the Sony product and picture on the Toshiba , but picture clarity is more important to you then sound. Consumers usually have some sort of brand preference with companies as they may have had a good history with a particular brand or their friends may have had a reliable history with one, but if the decision falls between the Sony DVD or Toshiba then which one shall it be? It could be that the a review the consumer reads on the particular Toshiba product may have tipped the balance and that they will purchase that brand. 4. Purchase decision Through the evaluation process discussed above consumers will reach their final purchase decision and they reach the final process of going through the purchase action e.g. The process of going to the shop to buy the product, which for some consumers can be as just as rewarding as actually purchasing the product. Purchase of the product can either be through the store, the web, or over the phone. Post Purchase behaviour Ever have doubts about the product after you purchased it? This simply is post purchase behaviour and research shows that it is a common trait

amongst purchasers of products. Manufacturers of products clearly want recent consumers to feel proud of their purchase, it is therefore just as important for manufacturers to advertise for the sake of their recent purchaser so consumers feel comfortable that they own a product from a strong and reputable organisation. This limits post purchase. behaviour i.e. You feel reassured that you own the latest advertised product.

Factors influencing the behaviour of buyers.

Consumer behaviour is affected by many uncontrollable factors. Just think, what influences you before you buy a product or service? Your friends, your upbringing, your culture, the media, a role model or influences from certain groups? Culture is one factor that influences behaviour. Simply culture is defined as our attitudes s. But how are these attitudes and beliefs developed? As an individual growing up, a child is influenced by their parents, brothers, sister and other family member who may teach them what is wrong or right. They learn about their religion and culture, which helps them develop these opinions, attitudes and beliefs (AIO) . These factors will influence their purchase. Behaviour however other factors like groups of friends, or people they look up to may influence their choices of purchasing a particular product or service. Reference groups are particular groups of people some people may look up towards to that have an impact on Consumer behaviour. So they can be simply a band like the Spice Girls or your immediate family members. Opinion leaders are those people that you look up to because your respect their views and judgements and these views may influence Consumer decisions. So it maybe a friend who works with the IT trade who may influence your decision on what computer to buy. The economical environment also has an impact on Consumer behaviour; do consumers have a secure job and a regular income to spend on goods? Marketing and advertising obviously influence consumers in trying to evoke them to purchase a particular product or service. Peoples social status will also impact their behaviour. What is their role within society? Are they Actors? Doctors? Office worker? and mothers and

fathers also? Clearly being parents affects your buying habits depending on the age of the children, the type of job may mean you need to purchase formal clothes, the income which is earned has an impact. The lifestyle of someone who earns Rs.250000 would clearly be different from someone who earns Rs.25000. Also characters have an influence on buying decision. Whether the person is extrovert (out going and spends on entertainment) or introvert (keeps to themselves and purchases via online or mail order) again has an impact on the types of purchases made.

Types of buying Behaviour


There are four typical types of buying Behaviour based on the type of products that intends to be purchased. Complex buying Behaviour is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. Habitual buying Behaviour is where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt. Variety seeking buying Behaviour is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings! Dissonance reducing buying Behaviour is when buyer are highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers.

ADVERTISING EFFECTIVENESS Advertising is an art not a science. Effectiveness of which cannot be measured with a mathematical or empirical formula some advertisers argue that advertising efforts go to waste, but every advertiser is keenly interested in measuring or in evaluation of ad. effectiveness. Testing for the effectiveness of ad. will lead advertisement testing must be done either before or after the ad has done in the media. It is of two types, pretesting which is done before the ad. has been launched and one is referred to as cost testing which is done before the ad. has been launched and one is referred to as cost testing which is done after launching the advertising campaign. The basic purpose of advertising effectiveness is to avoid costly mistakes, to predict the relative strength of alternative strength of alternative advertising strategies and to increase their efficiency. In measurement of ad. effectiveness feed back is always useful even if it costs some extra expenditure to the advertiser. Sales-Effect : Communication-effect advertising research helps advertisers assess

advertising's communication effects but reveals little about its sales impact. What sales are generated by an ad that increases brand awareness by 20% and brand preference by 10%? Advertising's sales effect is generally harder to measure than its communication effect. Sales are influenced by many factors besides advertising, such as the product's features, price, availability and competitors' actions. The fewer or more controllable these other factors are, the easier it is to measure advertising's effect on sales. The sales impact is easiest to measure in direct-marketing's effect on sales. The sales impact is

easiest it is to measure in direct-marketing situations and hardest measure in brand or corporate-image-building advertising. PROGRESS TESTS These assess the various stages of buyer awareness, preference, buying intention and the actual purchase in relation to ad. effort. They are called sales effect tests. Measuring Sales Response to Advertising : Though increase in sales in the true measure of advertising effectiveness, in reality it is difficult to measure the increase that is due to a particular advertisement. It is rather difficult to correlate the response in sales with the advertising programme. However, a few methods have ben discalled in the following paragraphs which are generally used to measure the sales response to advertising. The Netapps Method : The term Netapps has been framed from the term net-ad-produce-purchases. This method, which has been developed by Daniel Starch and Staff company, requires the measurement of both readers and non-readers who purchased and who did not purchase the brand under investigation. The netapps method is useful in the relative measurement of the saleseffectiveness of various advertising approaches. But the method is subject to a high level of false reporting and open to interviewer bias. Moreover, we have considered advertising influence as the only factor which results in a purchase. There may be, and often are, other variables which affect purchases.

Sales Results Tests : The additional sales generated by the ads are recorded, taking several routes. Past Sales before the ad and sales after the ad are noted. The difference is attributed to ad impact. Controlled Experiment : In experimental market, any one element of marketing mix is changed. It is compared with the sales of another similar market. The element's presence observance is a reason for difference in sales. Instead of two markets, the experiment can be carried on the two groups of consumers. The inventory audit is dealers inventory before and after the ad is run. Attitude Tests This is an indirect measurement of the post-testing effects of ads on attitudes towards the advertised product or brands. The change in attitude as a result of advertising is assessed. The assumption is that favourable attitude towards the product may lead to purchases. Most ads are designed to either reinforce or change existing attitudes. An attitude is a favourable or unfavourable feeling about a product.

Influencing people: Myths and Mechanisms Why is it so difficult to introspect on advertising and how it influences us? Because we look for major effects, thats why! Too often, we look for the ability of an ad to persuade us. We look for a major effect rather than more subtle, minor effects. Big and immediate effects of advertising do occur when the advertiser has something new to say. Then it is easy for us to introspect on its effect. But most effects of advertising fall well short of persuasion. These minor effects are not obvious but they are more characteristic of the way advertising works. To understand advertising we have to understand and measure these effects. When our kids are growing up we dont notice their physical growth each day but from time to time we become aware that they have grown. Determining how much a child has grown in the last 24 hours is like evaluating the effect of being exposed to a single commercial. In both cases, the changes are too small for us to notice. But even small effects of advertising can influence which brand we choose especially when all other factors are equal and when alternative brands are much the same.

Weighing the alternatives: Evaluation It is easiest to understand this with lowinvolvement buying situations. The situation is like a beam-balance in which each brand weighs the same. With one brand on each side, the scale is balanced. However, it takes Low involvement: only a feather added to one side of the Deciding between 2 virtually identical balance to tip it in favor of the brand on that alternatives. side. The brands consumers have to choose from are often very similar. Which one will the buying balance tip towards? When we look for advertising effects we are looking for feathers rather than heavy weights. The buying of cars, appliances, vacations and other high-priced items are examples of high-involvement decision- making. This high level of involvement contrasts with the low level brought to bear on the purchase of products like shampoo or soft drink or margarine. For most of us, the buying of these smaller items is no big deal. We have better things to do with our time than agonize over which brand to choose every time we buy something. The fact is that in many low-involvement product categories, the alternative brands are extremely similar and in some cases almost identical. Most consumers don't really care which one they buy and could substitute easily if their brand ceased to exist. It is in these low-involvement categories that the effects of advertising can be greatest and yet hardest to introspect upon.

Even with high involvement products the beam balance analogy is relevant because very different alternatives can weigh-up equal. We often have to weigh up complex things like average quality at a moderate High involvement price against premium quality at a higher decisions: Very different price. Often we find ourselves in a state of alternatives indecision between the alternatives. When the can weigh equal. choice weighs equal in our mind, whether it be low involvement products or high involvement products, it can take just a feather to swing that balance. With high involvement decisions we are more concerned about the outcome of the weighing up process, so we think more about how much weight to give to each feature (quality, size or power)? How many extra dollars is it worth paying for a feature? Automotive writers for example can reach very different opinions. The more complex a products features the more complex this assessment because there are usually both positive and negative perspectives. For example, a compact car is positive in regard to both fuel economy and maneuverability but negative in regard to leg-room and comfort. So which way should we see it? What weight should we give to a particular feature in our minds? When, advertising emphasizes points that favor a brand, it doesnt have to persuade us - merely raise our awareness of the positive perspectives. Chances are we will notice confirmatory evidence more easily as a result. When we subsequently read a newspaper or consumer report or talk with friends, research shows that we are prone to interpret such information slightly more favorably. This effect is a long way from heavyweight persuasion. Rather it is a gentle, mental biasing of our subsequent perceptions, and we see in Chapter 2 how perspective can

influence our interpretation. It is not so much persuasion as a shifting of the mental spotlight...playing the focal beam of attention on one perspective rather than another. Repetition As with the amount by which our kids grow in a day, we are just not aware of the small differences advertising can make. Even though these imperceptibly small changes in time add up to significant effects, individual Small cumulative increments: We dont notice a childs growth in 24 hours. increments are too small for us to notice. They are just below the just noticeable difference (JND). Through the process of repetition these small increments can produce major perceived differences between brands, but we are rarely aware of the process taking place. The cumulative effects of changes in brand image become starkly noticeable only in rare cases: for instance, when we return home after a long absence and find that an old brand is now seen by people in a different light that in the intervening period the brand has acquired a different image. Registering a claim in our minds (e.g. taste the difference or good to the last drop) does not necessarily mean we believe it. However, it makes us aware that there are claimed differences between brands. This is a proposition (a feather, if you will) that, when everything else is equal may tip the balance of brand selection, even if only to prompt us to find out if it is true.

Repetition increases our familiarity with a claim. In the absence of evidence to the contrary, a feeling of greater likelihood that the claim is true begins to accompany the growing familiarity. This effect of repetition is known as the truth effect. We tend to think that if something is not true somehow it would somehow be challenged. If it is repeated constantly and not challenged, our minds seem to regard this as prima facie evidence that perhaps it is true. The effect of repetition is to produce small but cumulative increments in this truth inference. It is hardly rational but we dont really think about it. We dont go out of our way to think about it because low involvement, by definition means we dont care much anyway. Such claims are feathers. In summary, the reasons we are unable to introspect on advertisings effects especially in low-involvement situations are:
o o

the effect of each single ad exposure is small; with repetition, even imperceptibly small effects can build into larger perceived differences between brands;

if something gets repeated constantly without challenge, our minds seem to regard this as prima facie evidence that maybe, just maybe, it is true (the truth effect);

often it is no big deal to us which of the alternative brands we choose, anyway. If you have ever wondered why advertisers seem to persist in repeating the same ad if you have ever wondered why they think this could possibly influence sane people like us then here is the answer. Much of advertising creates only marginal differences, but small differences can build into larger

differences. Even small differences can tip the balance in favor of the advertised brand. This is especially true of image advertising.

Image advertising The effect of image advertising is easier to see in relation to highinvolvement products, so let us start with a high-involvement example Volvo cars. Between 1970 and 1990, Volvo focused its image advertising on safety. Through repetition, it built up a strong image for the Volvo as a safe car. On a scale of 1 to 10 for safety, most people would rate Volvo higher than almost any other car. Safety is now an integral part of our perception of this brand. (The fact that the car actually delivers on this promise has of course been a very important ingredient in the success of the safety campaign -but that is another story.) One effect of image advertising, then, is to produce gradual shifts in our perceptions of a brand with regard to a particular attribute in Volvos case, safety (in other words, to effect marginal changes in our mental rating of the brand on that attribute). This is often not perceptible after just one exposure because the change, if it occurs, is too small for us to notice. Now lets take a low-involvement product category-hair spray and examine its history of brand image advertising. The first brands of hair spray originally fought for market share on the basis of the attribute of hair holding. That is, each brand claimed to hold hair. To the extent that they all claimed the same thing, they were what we call metoo brands.

To break out of this, one brand began to claim that it holds hair longer. Just as Volvo claimed that it was safer, and thereby moved Volvo up higher up the perceived safety scale, so this brand of hair spray made people aware that some brands of hair spray might hold hair longer than others. It then attempted to shift perception of itself on this attribute and marginally increase the mental rating consumers would give it on length of hold. The next brand of hair spray to enter the market, instead of tackling that brand head-on, cleverly avoided doing battle on length of hold. The new brand claimed that it was long holding, but also that it brushes out easier a dual benefit. In doing so it successfully capitalized on the fact that hair sprays that hold longer are harder to brush out (or were until then). Many years later, came Vidal Sassoon Hairspray the attribute of flexible hold. ad hold claiming flexible These examples of image advertising for hair spray and cars illustrate how one effect of

advertising is to alter our perceptions of a brand. Advertising can marginally change our image of a brand by leading us to associate it with a particular attribute (like longer holding or brushes out easily), and to associate the brands in our minds with that attribute more than we associate it with any other competitive brand. Gauging the effects image advertising has on us is made even more complex because these effects may not operate directly on the image of the brand itself. Image advertising may produce small, incremental differences in the image of a brand, as in the case of Volvo but sometimes it is aimed at

changing not so much the image of the brand itself but who we see in our minds eye as the typical user of that brand.

User image In advertising for Levis, Revlon, Coca-Cola, Calvin Klein, Dior or Gap, the focus is often on people who use the brand. What changes is not so much our perception, or image, of the product as our perception of the user-stereotype the kind of person who typically uses the brand, or the situation in which the brand is typically used. When these brands are advertised, the focus is very much on image but often with this important, subtle difference. The advertising aims to change not how we see the brand itself-the brand imagebut how we see:
o

the stereotypical user of the brand -the user image;

the stereotypical situation in which the brand is used.

Jim Beam ad reinforcing the stereotypical user

image - young, single If the user image of a brand resembles us, or the males. type of person we aspire to be, what happens when we come to buy that product category? The user image acts as a feather on one side of the beam balance. If everything else is equal it can tip the scale (but note, only if everything else is about equal).

User, or situational, image changes usually fall short of the kinds of rational, heavyweight reasons that make perfect sense of any choice. But they can nevertheless tilt the balance in favor of one brand. Minor effects such as these constitute much of the impact of advertising. Yet they are usually much more difficult for us as consumers to analyze introspectively, and we tend to discount them because they clearly fall well short of persuasion.

Persuasion is the exception We have been told so often that the role of advertising is to persuade that we seem to have come to believe it. How often do we hear the comment, It wouldnt make me run out and buy it. This is common in market research when participants are asked to analyze introspectively how they react to an ad -especially if it is an image ad. It demonstrates the myth of how advertising is supposed to have its influence. No-one really believes that any ad will make them run out and buy the advertised product. Nothing has that kind of persuasive or coercive power. So why do people say, It wouldnt make me run out and buy it? Because they cant think of any other way the ad could work. The effect of advertising is not to make us run out and buy. This is especially true with low-involvement products and especially true with image advertising. It is beam-balance stuff. High involvement High-involvement buying contrasts with low-involvement, low-cost purchases. When people are parting with substantial sums of money to buy a TV, a car or a vacation, they do not take the decision lightly. These are high-

involvement decisions for most consumers. Before making them, we actively hunt down information, talk with friends and generally find out all we can about our prospective purchase. Furthermore, the alternative brands available will usually have many more differences. They are unlikely to be almost identical, as is the case with many low-involvement products. Advertising is one influence in high-involvement buying decisions, but it is only one among many. Often it is a relatively weak influence, especially in comparison with other influences like word-of-mouth, previous experience and recommendations by experts. In the case of high-involvement products, much of advertisings effect is not so much on the final decision as on whether a brand gets considered whether we include it in the set of alternatives that we are prepared to spend time weighing up. This is one of the ways that advertising influences our thinking indirectly. For example, there are hundreds of brands and types of cars, far too many for us to consider individually in the same detail. We seriously consider only those that make it onto our short list. But what determines which cars make it on to our short list? This is where advertising comes into play. If we are unlikely to be in the market for a new car, refrigerator or wall unit for several years, the advertising we see and hear for these products falls on low-involved ears. However, if our old car or appliance unexpectedly breaks down today, we may find ourselves propelled into the market for a new one. Suddenly, the ads we saw yesterday or last week or last month under lowinvolvement conditions become more relevant. One test of their effectiveness will be whether they have left enough impact to get their brand onto our short list.

A lot of advertising, even for high-priced items, thus has its effect in a lowinvolvement way. Again we see that, in looking for the effects of advertising, we need to look for subtle effects. It is a case of feathers rather than persuasion feathers that influence what alternatives get weighed-up as well as feathers that add their weight to one side of the weighing-up process.

Two mental processes in decision-making There are fundamentally different mental processes at work in choice decisions. We have already considered the most obvious one, the weighing up of alternatives. But there is another process that consumers and advertisers tend to be less conscious of. Weighing up the alternatives is one thing. Which alternatives get weighed up is another! Which alternatives get weighed up? What determines the alternatives that are actually considered? Think about a consumer decision that you probably make every day. Its getting on for noon, you are feeling hungry and you ask yourself, What am I going to have for lunch today? Your mind starts to generate alternatives and evaluate each alternative as you think of it. The process goes something like this:
o

Will I have a salad? No, I had a salad yesterday.

A sandwich? No, the sandwich store is too far away and besides, its raining. I could drive to McDonalds. Yes . . . Ill do that. There are two things to note here. First, what the mind does is produce alternatives, one at a time. This mental agenda of alternatives is ordered like this:

Second, the order in which the alternatives are arranged is the order in which they are elicited by the mind. This order can influence your final choice. You may enjoy Pizza Hut more than McDonalds. But in the example, you didnt go to Pizza Hut, you went to McDonalds. Had you continued your thought process instead of stopping at the third alternative (McDonalds), you would probably have gone to Pizza Hut. But if Pizza Hut is only fifth on your mental agenda of lunch alternatives, it is unlikely to get much of your business. You didnt get to Pizza Hut because you didnt think of it before you hit on a satisfactory solution McDonalds. You didnt get there physically because you never got there mentally. Even if we like or prefer something, if it is not reasonably high on our mental agenda it is likely to miss out. How many times have you found yourself doing something and realised too late that there was something else you would rather have been doing but didnt think about in time? The most preferred alternatives are not necessarily the ones you think of first. (Anyone who has ever left an important person off an invitation list will appreciate this.) Next time you go out for dinner and are trying to decide which restaurant to go to, observe

your thought pattern. There are two separate processes at work. One is generation of alternatives. The other is evaluation of the alternatives. To affect the outcome of buying decisions, advertisers can try to influence:
o o o

the order in which the alternatives are evoked; the evaluation of a particular alternative; or both. When we think of advertisings effects we almost invariably think of how advertising influences our evaluation of a brand. Yet much of advertisings influence is not on our evaluations of a brand but on the order in which alternative brands are evoked.

Agenda-setting effect Influencing the order of alternatives has its basis in what is known as the agenda-setting theory of mass communications. This says: The mass media dont tell us what to think. But they do tell us what to think about! They set the mental agenda. The agenda-setting theory was originally developed to explain the influence of the mass media in determining which political issues become important in elections. Adroit committee members and politicians claim that if you can control the agenda you can control the meeting. It was not until 1981 that the relevance of this to advertising was recognized. When we reach into our minds to generate any of these agendas, the items do not all come to mind at once. They are elicited one at a time and in an order.

The items on top of the mental agenda are the most salient and the ones we are most likely to remember first. Its the same with choosing which restaurant to go to or which department store to visit or which supermarket to shop at this week. It is the same with the decision about which cars or refrigerators to short-list and which dealers to visit. The order in which we retrieve the items from our memories seems almost inconsequential to us but may be critically important in determining the chances of our going to a McDonalds versus Pizza Hut. This effect also occurs if we have a list of the alternatives or a display of them such as in the supermarket. Even here, where the brands are all set out in front of us, all of them do not get noticed simultaneously. In fact they do not all get noticed. Think about the process. We stand there at the display. We notice first one brand, then another and then another. It happens rapidly, but in sequence. So despite the fact that the brands are all displayed, they are not necessarily all equal in terms of the probability that they will come to mind or be noticed. Supermarkets today carry more than 30,000 items, up from 17,500 a decade ago.[8] This raises a question. At supermarket displays, what makes a brand stand out? To use the marketing term, what makes it break through the clutter of all the alternative packs and get noticed? What makes one brand get noticed more quickly than others at the supermarket display? This introduces the concept of salience, which is formally defined in the next section. In this context we ask how a brand can be moved up from fifth, to fourth to third, to second, to become the first one noticed. The higher up it is in this order, the better the chance it has of being considered, and consequently, the better the chance of its being purchased.

The brands physical prominence, the amount of shelf space it occupies and its position in the display are very important. But advertising can influence choice when other factors (like shelf space or position) are otherwise equal. Advertising can help tip the balance. Asking what makes one brand more salient more likely to come to mind or get noticed than another is like asking what influences Pizza Huts position on our mental lunch agenda. In the supermarket, instead of having to recall all the alternatives by ourselves, we are prompted by the display. However, the brands we notice and the order in which we notice them can be influenced by more than just the display. Salience We think much more often about people and things that are important to us than about those that are not. The psychological term for this prominence in our thoughts is salience. Advertisers would like us to think of their brands as more important but they will settle for more often.[9] In other words, they would like their brands to be more salient for us. Our definition of salience is the probability that something will be in the conscious mind at any given moment. One way advertising can increase this probability is through repetition. We have all had the experience of being unable to rid our minds of a song we have heard a lot. The repetition of the song has increased its salience; it has increased its probability of being in the conscious mind at any moment. Repetition of an advertisement, especially a jingle, can have a similar effect. Through repetition of the ad, the salience of the brand - the star of the ad - is increased in our minds. Another way that advertising influences what we think about and notice is through cueing. To explain this, answer a few questions.

o o

Whats the first thing you think of when you see: "Just Do It." Whats the first thing you think of when someone says: "Don't leave home without it."

What comes to mind if you are asked: "Where do you want to go today? Whats the first thing you think of when someone says: "Cross your heart? When you see the word "Always ...., what do you think of? What's the first thing you think of when someone asks "Where's the beef? in America or "Which bank? in Australia? Words or expressions such as these come up naturally in everyday conversation. When a brand is linked to them through repetition, they become cues that help increase the salience of the brand. An actor in a play takes his cue from a line or some other happening or event. The human mind takes its cue from its intentions and its immediate environment. Such cues can influence what we think about next. Thats how we go to sleep at night. We turn off the cues. We turn off the light and the radio. We try to reduce distractions or cues so that things wont keep popping into our minds. One way advertising can use cues is by tying a brand to something that frequently recurs in the ordinary environment. There are many common words, expressions, symbols or tunes that can be developed by means of repetition into mnemonic devices that trigger recollection of the brand.

o o

FACTORS THAT HAVE AN IMPACT ON CONSUMER DECISION MAKING


* Culture

Culture is part of the external influences that impact the consumer. That is, culture represents influences that are imposed on the consumer by other individuals. The definition of culture offered in the text is "That complex whole which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by man person as a member of society." From this definition, one can make the following observations: Culture, as a "complex whole," is a system of interdependent components. Knowledge and beliefs are important parts. Other issues are relevant. Art, for example, may be reflected in the rather arbitrary practice of wearing ties in some countries and wearing turbans in others. . Cultural rules can be categorized into three types. Formal rules carry relatively explicit standards as to how one should behave, and violations often carry severe sanctions. Informal rules, on the other hand, are less explicit and may not carry sanctions for violation. Finally, technical cultural rules involve implicit standards as to what constitutes a good product. Language is an important element of culture. It should be realized that regional differences may be subtle.

Some cultures tend to adopt new products more quickly than others, based on several factors: Modernity: The extent to which the culture is receptive to new things.

In some countries, such as Britain and Saudi Arabia, tradition is greatly valuedthus, new products often dont fare too well. The United States, in contrast, tends to value progress. Homophily: The more similar to each other that members of a culture

are, the more likely an innovation is to spreadpeople are more likely to imitate similar than different models. The two most rapidly adopting countries in the World are the U.S. and Japan. While the U.S. interestingly scores very low, Japan scores high. Physical distance: The greater the distance between people, the less

likely innovation is to spread. Opinion leadership: The more opinion leaders are valued and

respected, the more likely an innovation is to spread. The style of opinion leaders moderates this influence, however. In less innovative countries, opinion leaders tend to be more conservative, i.e., to reflect the local norms of resistance.

* Family Decision Making

Individual members of families often serve different roles in decisions that ultimately draw on shared family resources. Some individuals are information gatherers/holders, who seek out information about products of relevance. These individuals often have a great deal of power because they may selectively pass on information that favors their chosen alternatives. Influencers do not ultimately have the power decide between alternatives, but they may make their wishes known by asking for specific products or

causing embarrassing situations if their demands are not met. The decision maker(s) have the power to determine issues such as: whether to buy; which product to buy (pick-up or passenger car?); which brand to buy; where to buy it; and when to buy. One is bargainingone member will give up something in return for someone else. strategy is reasoningtrying to get the other person(s) to accept ones view through logical argumentation.

* Group Influences Humans are inherently social animals, and individuals greatly influence each other. A useful framework of analysis of group influence on the individual is the so called reference groupthe term comes about because an individual uses a relevant group as a standard of reference against which oneself is compared. Reference groups come in several different forms. The aspirational reference group refers to those others against whom one would like to compare oneself. Associative reference groups include people who more realistically represent the individuals current equals or near-equals e.g., coworkers, neighbors, or members of churches, clubs, and organizations. Finally, the dissociative reference group includes people that the individual would not like to be like.

* Diffusion of Innovation The diffusion of innovation refers to the tendency of new products, practices, or ideas to spread among people. Usually, when new products or ideas come about, they are only adopted by a small group of people initially; later, many

innovations spread to other people. The saturation point is the maximum proportion of consumers likely to adopt . Several forces often work against innovation. One is risk, which can be either social or financial. Another risk is being perceived by others as being weird for trying a "fringe" product or idea. Other sources of resistance include the initial effort needed to learn to use new products (e.g., it takes time to learn to meditate or to learn how to use a computer) and concerns about compatibility with the existing culture or technology. Innovations come in different degrees. A continuous innovation includes slight improvements over time. A dynamically continuous innovation involves some change in technology, although the product is used much the same way that its predecessors were usede.g., jet vs. propeller aircraft. A discontinous innovation involves a product that fundamentally changes the way that things are donee.g., the fax and photocopiers.

* Perception Background. Our perception is an approximation of reality. Our brain attempts to make sense out of the stimuli to which we are exposed. Factors in percpetion. Several sequential factors influence our perception. Exposure involves the extent to which we encounter a stimulus. Most of this exposure is randomwe dont plan to seek it out. Exposure is not enough to significantly impact the individualat least not based on a single trial In order for stimuli to be consciously processed, attention is needed. Interpretation involves making sense out of the stimulus. Webers Law suggests that consumers ability to detect changes in stimulus intensity appear to be strongly related to the intensity of that stimulus to begin with. Several factors influence the extent to which stimuli will be noticed. One obvious issue is relevance. Consumers, when they have a choice, are also more likely to attend to pleasant stimuli (but when the consumer cant

escape, very unpleasant stimuli are also likely to get attentionthus, many very irritating advertisements are remarkably effective). Surprising stimuli are likely to get more attentionsurvival instinct requires us to give more attention to something unknown that may require action. A greater contrast (difference between the stimulus and its surroundings) as well as greater prominence (e.g., greater size, center placement) also tend to increase likelihood of processing. * Learning and Memory Learning involves "a change in the content or organization of long term memory and/or behavior." The first part of the definition focuses on what we know (and can thus put to use) while the second focuses on concrete behavior. Several factors influence the effectiveness of learning. In general, the closer in time the consequences are to the behavior, the more effective the learning. However, it is not necessary to reward a behavior every time for learning to occur. Even if a behavior is only rewarded some of the time, the behavior may be learned. Memory. There are two kinds of memory. When you see an ad on TV for a mail order product you might like to buy, you only keep the phone number in memory until you have dialed it. This is known as short term memory. In order for something to enter into long term memory, which is more permanent, you must usually "rehearse" it several times. A special issue in memory are so called "scripts," or procedures we remember for doing things. Scripts involve a series of steps for doing various things (e.g., how to send a package). * Motivation, Personality, and Emotion Perspectives on Consumer Behavior and Motivation: People considered several perspectives on behavior as a way to understand what motivates the

consumer. Each of these perspectives suggests different things as to what the marketer should do and what can (and cannot) be controlled. The Hard Core Behavioral perspective suggest that consumers must learn from their own experiences rather than merely observing other people who overeat and get sick. The Social Learning Perspective, in contrast, allows for vicarious learning-i.e., learning obtained by watching others getting good or bad consequences for behavior The Cognitive approach emphasizes consumer thinking rather than mere behavior.Here, the emphasis is on how people reason themselves to the consequences of their behavior. The Biological approach suggests that most behavior is determined by genetics or other biological bases. By this perspective, it is suggested that consumers eat the foods they eat in large part because the body craves these foods. The main implication of biological determinism is that the marketer must adapt--for example, food advertisements are more likely to be effective when people are hungry, and thus they might better be run in the late afternoon rather than in the late morning. The Rational Expectations perspective is based on an economic way of looking at the World.

* Attitudes Consumer attitudes are a composite of a consumers (1) beliefs about, (2) feelings about, (3) and behavioral intentions toward some object within the context of marketing, usually a brand or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumer will react to the object. Beliefs. The first component is beliefs. A consumer may hold both positive beliefs toward an object (e.g., coffee tastes good) as well as negative beliefs

(e.g., coffee is easily spilled and stains papers). In addition, some beliefs may be neutral. Affect. Consumers also hold certain feelings toward brands or other objects. Sometimes these feelings are based on the beliefs (e.g., a person feels nauseated when thinking about a hamburger because of the tremendous amount of fat it contains), but there may also be feelings which are relatively independent of beliefs. Behavioral intention. The behavioral intention is what the consumer plans to do with respect to the object (e.g., buy or not buy the brand). As with affect, this is sometimes a logical consequence of beliefs (or affect), but may sometimes reflect other circumstances. Changing affect. One approach is to try to change affect, which may or may not involve getting consumers to change their beliefs. One strategy uses the approach of classical conditioning try to "pair" the product with a liked stimulus. Finally, products which are better known, through the mere exposure effect, tend to be better liked--that is, the more a product is advertised and seen in stores, the more it will generally be liked, even if consumers to do not develop any specific beliefs about the product. Changing behavior. People like to believe that their behavior is rational; thus, once they use our products, chances are that they will continue unless someone is able to get them to switch. ----One way to get people to switch to one brand is to use temporary price discounts and coupons; however, when consumers buy a product on deal, they may justify the purchase based on that deal (i.e., the low price) and may then switch to other brands on deal later. A better way to get people to switch to our brand is to at least temporarily obtain better shelf space so that the product is more convenient. Consumers are less likely to use this availability as a rationale for their purchase and may continue to buy the product even when the product is less

conveniently located. (Notice, by the way, that this represents a case of shaping). Changing beliefs. Although attempting to change beliefs is the obvious way to attempt attitude change, particularly when consumers hold unfavorable or inaccurate ones, this is often difficult to achieve because consumers tend to resist. Several approaches to belief change exist: Change currently held beliefs. It is generally very difficult to attempt to

change beliefs that people hold, particularly those that are strongly held, even if they are inaccurate. Change the importance of beliefs. Add beliefs. Consumers are less likely to resist the addition of beliefs so

long as they do not conflict with existing beliefs. Change ideal. It usually difficult, and very risky, to attempt to change

ideals, and only few firms succeed.

* The Elaboration Likelihood Model (ELM) and Celebrity Endorsements. The ELM suggests that consumers will scrutinize claims more in important situations than in unimportant ones. The ELM suggests that for "unimportant" products, elaboration will be low. However, for products which are either expensive or important for some other reason elaboration is likely to be more extensive, and the endorser is expected to be "congruent," or compatible, with the product. Appeal approaches. Several approaches to appeal may be used. The use of affect to induce empathy with advertising characters may increase attraction to a product, but may backfire if consumers believe that peoples feelings are being exploited. Fear appeals appear to work only if (1) an optimal level of fear is evoked--not so much that people tune it out, but enough to scare people into action and (2) a way to avoid the feared stimulus is explicitly indicated. Humor appears to be effective in gaining attention, but does not

appear to increase persuasion in practice. In addition, a more favorable attitude toward the advertisement may be created by humorous advertising, which may in turn result in increased sales. Comparative advertising, which is illegal in many countries, often increases sales for the sponsoring brand, but may backfire in certain cultures.

Self-Concept, Situational Influences, and Lifestyle The self-concept. The consumer faces several possible selves. The actual self reflects how the individual actually is, although the consumer may not be aware of that reality In contrast, the ideal self reflects a self that a person would like to have, but does not in fact have. The private self is one that is not intentionally exposed to others. The key here is to keep in mind which kind of self one is trying to reach in promotional messages. Individuals will often seek to augment and enhance their self concepts, and it may be possible to market products that help achieve this goal. Lifestyles. Self-concept often translates into a persons lifestyle, or the way that he or she lives his or her life. Attempts have been made to classify consumers into various segments based on their lifestyles. For example, both "Achievers" and "Strivers" want public recognition, but only the Achievers have the resources to bring this about. A global analogue is the Global Scan. Situational influences. Specific circumstances often influence consumer behavior. Consumers whose attention is demanded elsewhere are likely to disregard commercial messages.

Advertising Research
Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. It entails numerous forms of research which employ different methodologies. Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaignspre-testing is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the inmarket impact of the ad or campaign on the consumer. Continuous ad tracking and the Communicus System are competing examples of posttesting advertising research types.

RESEARCH METHODOLOGY
DEFINITION OF RESEARCH
The term research is also used to describe an entire collection of information about a particular subject. Research is defined as human activity based on intellectual application in the investigation of matter. The primary purpose for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so. Historical research is embodied in the historical method.

TYPES OF RESEARCH Quantitative research:- Quantitative research is descriptive and


provides hard data on the numbers of people exhibiting certain behaviours, attitudes, etc. It provides information in breadth and allows you to sample large numbers of the population.

Qualitative research:- Qualitative research allows you to explore


perceptions, attitudes and motivations and to understand how they are formed. It provides depth of information which can be used in its own right

or to determine what attributes will subsequently be measured in quantitative studies. Verbatim quotes are used in reports to illustrate points and this brings the subject to life for the reader.

Secondary or desk research:- The collating and analysis of secondary


data is called desk research. Secondary data is data that already exists and may be found within your own organisation or is published by another party and readily available.

RESEARCH DESIGN
Plan outlining how information is to be gathered for an assessment or evaluation that includes identifying the data gathering method(s) , the instruments to be used/created, how the instruments will be administered, and how the information will be organized and analyzed.

TYPES OF RESEARCH DESIGN

1. Philosophical/discursive
This may cover a variety of approaches, but will draw primarily on existing literature, rather than new empirical data. A discursive study could examine a particular issue, perhaps from an alternative perspective (eg feminist). Alternatively, it might put forward a particular argument or examine a methodological issue.

2. Literature review
This may be an attempt to summarise or comment on what is already known about a particular topic. By collecting different sources together, synthesising and analysing critically, it essentially creates new knowledge or perspectives. There are a number of different forms a literature review might take.

3. Case study
This will involve collecting empirical data, generally from only one or a small number of cases. It usually provides rich detail about those cases, of a predominantly qualitative nature. There are a number of different

approaches to case study work (eg ethnographic, hermeneutic, ethogenic, etc) and the principles and methods followed should be made clear.

4. Survey
Where an empirical study involves collecting information from a larger number of cases, perhaps using questionnaires, it is usually described as a survey. Alternatively, a survey might make use of already available data, collected for another purpose. A survey may be cross-sectional (data

collected at one time) or longitudinal (collected over a period). Because of

the larger number of cases, a survey will generally involve some quantitative analysis.

5. Evaluation
This might be an evaluation of a curriculum innovation or organisational change. An evaluation can be formative (designed to inform the process of development) or summative (to judge the effects). Often an evaluation will have elements of both. If an evaluation relates to a situation in which the researcher is also a participant it may be described as action research. Evaluations will often make use of case study and survey methods and a summative evaluation will ideally also use experimental methods.

6. Experiment
This involves the deliberate manipulation of an intervention in order to determine its effects. The intervention might involve individual pupils,

teachers, schools or some other unit. Again, if the researcher is also a participant (e.g. a teacher) this could be described as action research.

DATA COLLECTION
Data collection is a term used to describe a process of preparing and collecting data - for example as part of a process improvement or similar project. A method of data collection in which the situation of interest is watched and the relevant facts, actions and behaviors are recorded.

PRIMARY DATA COLLECTION METHODS


In primary data collection, you collect the data yourself using methods such as interviews and questionnaires. The key point here is that the data you collect is unique to you and your research and, until you publish, no one else has access to it.

SECONDARY DATA COLLECTION METHODS


All methods of data collection can supply quantitative data (numbers, statistics or financial) or qualitative data (usually words or text). Quantitative data may often be presented in tabular or graphical form. Secondary data is data that has already been collected by someone else for a different purpose to yours. For example, this could mean using:

HYPOTHESIS
When a prediction or a hyposthesis relationship is to be tested by scientific methods it is termed as research hypothesis. The research hypothesis is a predicted statement that related to the independent variable to a dependent variable, which are not to be adjective verified or the relationship that are assumed but not to be tested are termed as research hypothesis.

Null Hypothesis
According to my research report, there is positive impact of advertisement on consumer buying behaviour.

Alternative Hypothesis
According to my research report, there is negative impact of advertisement on consumer buying behaviour.

Sample unit (customers) Sample size (50) Sample technique (random sampling)
RESEARCH INSTRUMENT
Quesstionaire

FINDINGS AND ANALYSIS


1. Do you watch advertisement? (a) Yes (b) No 45 05

No. of Persons

2. Does advertisement affect your purchase decision? (a) Yes (b) No 30 20

No. of Persons

3. Are you brand loyal? (a) Yes (b) No 35 15

No. of Persons

4. Does advertisement shifts you from brand loyalty? (a) Yes (b) No 40 10

No. of Persons

5. From which source your buying decision is affected? (a) T.V. (b) Newspaper (c) Hoardings (d) By own choice 35 10 03 02

No. of Persons

6. Which type of advertisement you prefer? (a) Traditional Advertisement (b) Multimedia Advertisement 18 32

No. of Persons

7. Is there Influence of Price on purchase decision? (a) Agree (b) Disagree 42 08

No. of Persons

8. According to you, which media of advertisement is best: (a) T.V. (b) Newspaper (c) Hoarding (d) Magazine 30 09 06 05

No. of Persons

9. Does advertisement are effective in influencing consumers? (a) Yes (b) No 39 11

No. of Persons

10. Do you think advertisement convert non users into users? (a) Yes (b) No 45 05

No. of Persons

11. Do you think advertisement works as a catalyst to increase competition? (a) Yes (b) No 50 0

No. of Persons

12. Do you agree advertisement increases the demand for the product? (a) Agree (b) Disagree (c) Strongly agree (d) Cant say 30 06 10 05

No. of Persons

13. Is there influence of quality on purchase decision? (a) Agree (b) Disagree (c) Strongly agree (d) Strongly disagree 36 04 10 0

No. of Persons

14. Do you think advertisement is an effective tool for sales performance? (a) Yes (b) No 48 02

No. of Persons

15. What you think the cost of advertisement increases the cost of product? (a) Yes (b) No 33 17

No. of Persons

16. What is the reason for the delay between purchase decision and the actual purchase? (a) Financial Constraints (b) Waiting for more innovative product (c) Waiting for market response 6 2 42

No. of Persons

FINDINGS
After the analysis of data collection in Moradabad city following conclusions were drawn: Customers are price sensitive 50% customers are affected by advertisement. 70% of the consumers are affected by T.V., 20% Newspaper,4% through their own choice & wish,6% through hoardings. Traditional advertising is about to over now i.e. 64% people likes multimedia advertisement and 36% traditional advertisement. Almost all the respondents said that advertisement increases the cost of product i.e. 70%. 84% of people said that they wait for market responses and that is the reason for delay between their purchase decision and actual purchase.

RECOMMENDATIONS

Ads should be such that the buyers must be satisfied for what they are paying after influencing from these ads. More emphasis should be done on multimedia advertising. Most of the ads should be given on t.v as t.v is the popular media of advertising. Adevertisements should be eye catching so that customers(viewers)easily get attracted towards advertisement. Advertisements should be of good taste and not of bad taste.

LIMITATIONS
This study might be suffering from limitation. Since it was a study for educational purpose and time & resources were limited. Sample size of 50 was small since it may not represent whole of India, the limitation of the study are: Lack of time Now a days every person is so busy, that they do not spend their time in providing information because the questionnaire was lengthy. Limitations of skills- There are so many respondents who dont understand the sense of the questions that is why inadequate information is observed. Restricted geographical area: Survey was conducted In

Moradabad where awareness of people is not too much. But this might not be the case in whole India covering metro cities and Rural and urban areas. An error may have been due to sample taken not confirming to the actual population. This is because the sample is random sample. There are some other limitations which affect the result like incorrect information is provided by the consumer.

BIBLIOGRAPHY

BIBLIOGRAPHY
I have referred the following books and website as the source of my information for completing this report. Books: Research Methodology Marketing Management Consumer behaviour : : : Kothari C.R Philip Kotler L.M Prasad

WEBLIOGRAPGY

WEBLIOGRAPGY
www.ask.com www.scribd.com www.yahoo.com www.mbaguys.com

QUESTIONNAIRE
Dear Respondent, I am student of BBA, conducting a survey on Advertisement Effect on Consumer Buying Behaviour kindly spare few minutes to fill up this questionnaire. I would be highly thankful to you. 1. Do you watch advertisement? (a) Yes (b) No

2. Does advertisement affect your purchase decision? (a) Yes 3. Are you brand loyal? (a) Yes (b) No (b) No

4. Does advertisement shifts you from brand loyalty? (a) Yes (b) No

5. From which source your buying decision is affected? (a) T.V. (c) Hoardings (b) Newspaper (d) By own choice

6. Which type of advertisement you prefer? (a) Traditional Advertisement (b) Multimedia Advertisement

7. Is there Influence of Price on purchase decision? (a) Agree (b) Disagree

8. According to you, which media of advertisement is best ? (a) T.V. (b) Newspaper (c) Hoarding (d) Magazine

9. Does advertisement are effective in influencing consumers? (a) Yes (b) No

10. Do you think advertisement convert non users into users? (a) Yes (b) No

11. Do you think advertisement works as a catalyst to increase competition? (a) Yes (b) No

12. Do you agree advertisement increases the demand for the product? (a) Agree (c) Strongly agree (b) Disagree (d) Cant say

13. Is there influence of quality on purchase decision? (a) Agree (c) Strongly agree (b) Disagree (d) Strongly Disagree

14. Do you think advertisement is an effective tool for sales promotion? (a) Yes (b) No

15. What you think the cost of advertisement increases the cost of product? (a) Yes (b) No

16. What is the reason for the delay between purchase decision and the actual purchase? (a) Financial Constraints (c) Waiting for market response (b) Waiting for more innovative product

Respondent Profile: Name Age group : : ............................................................................................. 15-20 ( ) 30-35 ( ) Sex Occupation : : Male ( ) Student ( ) Married ( ) 20-25 ( ) 35-40 ( ) Female ( ) Teacher ( ) Unmarried ( ) Business ( ) 25-30 ( ) 40 above ( )

Marital Status : Address :

............................................................................................. .............................................................................................
: .............................................................................................

Phone Number:
E-Mail, if any