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A Project Study Report On

Advertisement Effectiveness

Submitted in partial fulfillment for the Award of degree of Master of Business Administration

Submitted By: Mukesh Kumar Yadav MBAPart 2nd year

Submitted To:Mrs. Suhasini Varma HOD MBA


Rajasthan Institute of Engineering & Technology, Bhakrota Jaipur


Acknowledgement I express my sincere thanks to my project guide Dr. Suhasini Varma, HOD MBA., for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thank the supporting staff Mrs. Monika Shekhawat Department, for their help and cooperation throughout our project.

Mukesh Kumar Yadav

Executive Summary

1. Introduction to the Industry 2. Introduction to the Organization 3. Research Methodology 3.1 Title of the Study 3.2 Duration of the Project 3.3 Objective of Study 3.4 Type of Research 3.5 Sample Size and method of selecting sample 3.6 Scope of Study 3.7 Limitation of Study 4. Facts and Findings 5. Analysis and Interpretation 6. SWOT 7. Conclusion 8. Recommendation and Suggestions 9. Appendix

10. Bibliography

Introduction to the Industry

Indian advertising industry is talking business today and has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in a short span of time has carved a niche for itself and placed itself on the global map. Indian advertising Industry which has an estimated value of Rs.13, 200-crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds of the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of advertising. In the year 2009 the industries attrition rate is as high as 20-25 % which was sober in that sense. According to industry executives the attrition rate is below 5 %, implying that most had to stay put and deliver on their briefs in their respective agencies. The ads shown to us are sometimes innovative and sometimes they really get on your nerves, especially when they are repeated time and again and especially when they are repeated twice. This happens when there is something sponsored by them say a tennis match or an award ceremony, etc. Advertisements usually amaze people with their creativity and presentation whereas some are really horrible in the depiction of their ideas. Most of the times however we find quite interesting and appealing ads. The Indian ad agencies have some of the most creative and talented people around which is attested by the fact that global companies are approaching Indian ad agencies to handle their media campaigns.

Market capitalization
At the last Cannes Awards, the president of the Jury was Piyush Pandey, Group President and National Creative Director of Ogilvy and Mather conveyed that India is quickly becoming a viable online advertising center. There is expectation that the online advertising market in India to heat up. As Lionel Lim, Sun's VP and MD (Asia South), recently stated, "Over the next three to four years, we want to help create up to 100 dot-com companies in India, each with a market cap of around $10 billion. That is, perhaps, the biggest investment we can make in this country.

Size of the industry

The size of Indian Advertising Industry depends on the following factors and industries. Television Current size: Rs 148 billion Projected size by 2010: Rs 427 billion; CAGR: 24% Filmed entertainment: Current size: Rs 68 Billion: Projected size by 2010: Rs 153 billion; CAGR: 18% Print Media: Current size: Rs 109 Billion: Projected size by 2010: Rs 195 billion; CAGR: 12% Radio: Current size: Rs 3 billion: Projected size by 2010: Rs 12 billion; CAGR: 32%. Music Current size: Rs 7,000 million crore projected size by 2010: Rs 7,400 million; CAGR: 1%. Live entertainment: Current size: Rs 8,000 million, Projected size by 2010: Rs 18,000 million; CAGR: 18% Out-of-home Advertising: Current size: 9000 million, Projected size by 2010: 17,500 million; CAGR: 14%. Internet Advertising: Current size: Rs 1.6 Billion, Projected size by 2010: Rs 7.5 billion; CAGR: 50%.

Total contribution to the economy/ sales

The turnover of Indian Advertising Industry is less than 1% of the national GDP of the country as compared to 2.3% of share of US to the GDP which indicates the tremendous growth potential for India. The Indian advertising industry is expected to grow by 13 %in 2010 to Rs 21,145 crore. According to the PITCH-Madison Media Advertising Outlook 2010 analysis, the Indian advertising pie is expected to be worth about Rs 21,145 crore this year, a 13 % increase over the previous one. The Indian media and advertising industry clocked a size of Rs 18,670 crore in 2009 and that saw a dramatic drop of 10 percentage points compared to 2008, where the industry was worth Rs 20,717 crore. Total advertising market grew 17% in 2008 and is projected to increase.

Top leading Companies

Ogilvy and Mather J Walter Thompson India Mudra Communication Pvt. Ltd FCB-Ulka Advertising Ltd Reinfusion-DY&R McCann-Erickson India Ltd RK Swami/BBDO Advertising Ltd Grey Worldwide (I) Pvt. Ltd Leo Burnett India Pvt. Ltd

Contract Advertising India Ltd Employment opportunities There are tremendous opportunities in Indian Advertising Industries in the country and abroad. The opportunities include that of account planner, executive, copywriter, visualizer, creative art director, animator, multimedia expert, photographer, printer, TV producer, media planner, web developer jobs, web planner, and marketing professional. Candidates qualified in Commercial Art have great opportunities. MBAs can also play a significant role in client servicing. However, individual creativity and ability for innovation are more important than academic degrees. The advertising industry always has a perennial demand of talent.

Latest developments
The global Advertising Industry as far as scale of operations and scope is concerned the turnover is close to USD 450 billion annually. Indian Advertising Industry contributes less than 1.5% which is next to China and Russia. The Global Ad Industry is expected to reach a growth rate of 2% in 2010 which is better than 2009 while Indian Ad Industry in contrast estimates to reach the growth rate of 10% figuring about Rs.23700 crores. The reasons are because of the IPL, Foot ball World Cup and the Commonwealth Games. India contributes to 17 % of the world population but is only 0.7% of the world advertising market so it has huge potential to grow in future. Experts reveal that total advertisement spending by the political parties would be around Rs 800 crore. The Congress and the BJP alone could spend over Rs 400 crore on ads on television, radio and newspapers. Most of the ads appear on going to general entertainment and regional TV channels and hardly a small proportion in News channels.

Worldwide Partne rInc are the Ninth largest global network of more than 90 marketing and communication agencies in about 50 countries which has recently tied up with Indian Pressman Advertising and Marketing Ltd following repeated enquires about India.

Introduction to the Organization

Hindustan Unilever Limited (HUL) in Mumbai, (BSE: 500696) It is is India's largest consumer British-Dutch

goods company based



by the

company Unilever which controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and personal care products. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 16,500 employees and contributes to indirect employment of over 65,000 people. The company was renamed in June 2007 as Hindustan Unilever Limited. Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG) Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.

HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. Eighteen of HULs brands featured in

the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2012). The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands. Its brands include: Food brands:

Annapurna salt and atta Bru coffee Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea Kissan squashes, ketchups, juices and jams Lipton tea Knorr soups & meal makers and soupy noodles Kwality Wall's frozen dessert Modern Bread, ready to eat chapattis and other bakery items

Homecare Brands

Active Wheel detergent Cif Cream Cleaner Comfort fabric softeners Domex disinfectant/toilet cleaner Rin detergents and bleach

Sunlight detergent and colour care Surf Excel detergent and gentle wash Vim dish wash Magic Water Saver

Personal Care Brands:

Aviance Beauty Solutions Axe deodorant and after shaving lotion and soap LEVER Ayush Therapy ayurvedic health care and personal care products Breeze beauty soap Clear anti-dandruff hair products Clinic Plus shampoo and oil Close Up toothpaste Dove skin cleansing & hair care range: bar, lotions, creams and anti-per spirant deodorants Denim shaving products Fair & Lovely skin-lightening products Hamam Lakme beauty products and salons Lifebuoy soaps and hand wash range Liril 2000 soap Lux soap, body wash and deodorant Pears soap Pepsodent toothpaste Pond's talcs and creams

Rexona soap Sunsilk shampoo Sure anti-per spirant Vaseline petroleum jelly, skin care lotions TRESemm

Water Purifier Brand:

Pureit Water Purifier Leadership

HUL has produced many business leaders for corporate India, including Harish Manwani the non-executive chairman of HUL and currently the Chief Operating Officer of Unilever. He is also a member of Unilever Leadership Executive team (ULE), which comprises the companys top management and is responsible for managing Unilevers profit and loss and delivering growth across its regions, categories and functions. Nitin Paranjpe has been the Managing Director and Chief Executive Officer of the company since April 2008. He is also Executive Vice President, South Asia, and Unilever and is also the executive head of the South Asia cluster for Unilever. HUL's leadership-building potential was recognized when it was ranked 4th in

the Hewitt Global Leadership Survey 2007 with only GE, P&G and Nokia ranking ahead of HUL in the ability to produce leaders with such regularity A study conducted by Aon Hewitt, The RBL Group and Fortune in 2011, ranked the company number six in the list of Top Companies for Leaders 2011 Study Results The company was awarded the CII- Prize for Leadership in HR Excellence at the 2nd CII National HR Conclave 2011 held on October 2011.

Awards and Recognition

As per the latest Nielsen Campus Track-Business School Survey released in February 2013, Hindustan Unilever Limited has emerged as the No.1 employer of choice for B-School students who will graduate in 2013, across functions. HUL also retained the 'Dream Employer' status for the 4th year running and continues to be the top company considered for application by BSchool student in India. In 2012, HUL was recognized as one of the world's most innovative companies by Forbes. With a ranking of number 6, it was the highest ranked FMCG Company Hindustan Unilever Limited (HUL) won the first prize at FICCI Water Awards 2012 under the category of community initiatives by industry for Gundar Basin Project, a water conservation initiative. Hindustan Unilever Limited won 13 awards at the Emvies 2012 Media Awards organized by the Advertising Club Bombay in September 2012. The company bagged four awards at the Spikes Asia Awards 2012, held in September. The awards included one Grand Prix one Gold Award and two Silver Awards. HULs Chhindwara Unit won the National Safety Award for outstanding performance in Industrial Safety. These awards were instituted by the Union Ministry of Labour and Employment in 1965. HUL was one of the eight Indian companies to be featured on the Forbes list of Worlds Most Reputed companies in 2007. In July, 2012 Hindustan Unilever Limited won the Golden Peacock Occupational Health and Safety Award for 2012 in the FMCG category for its safety and health initiatives and continuous improvement on key metrics Ponds Talcum Powders packaging innovation has bagged a Silver Award at the prestigious 24th DuPont Global Packaging Award, in May 2012.The brand was recognized for cost and waste reduction. In May 2012, HUL & Star Bazaar bagged the silver award for Creating Consumer Value through Joint Promotional and Event Forecasting at the 13th ECR Efficient Consumer

Response Asia Pacific Conference. In 2011, HUL was named the most innovative company in India by Forbes and ranked 6th in the top 10 list of most innovative companies in the world. Hindustan Unilever Ltd received the National Award for Excellence in Corporate Governance 2011 of the Institute of Company Secretaries of India (ICSI) for excellence in corporate governance in 2012; Hindustan Unilever emerged as the No. 1 employer of choice for BSchool students who will graduate in 2012. In addition, HUL also retained the 'Dream Employer' status for the 3rd year running Hindustan Unilever ranked No. 2 in Fortune India's Most Admired Companies list, which was released by Fortune India in partnership with the Hay Group. The company received the highest scores for endurance and financial soundness HUL was ranked 39th in The Brand Trust Report (2011) published by Trust Research Advisory. Seven HUL brands also featured in the list: Lux, Ponds, Dove, Lakme, Axe, Sunsilk and Pepsodent. HUL emerged as the top Dream Employer as well as the top company considered for application in the annual B-School Survey conducted by Nielsen in November 2010. This was the second successive year that HUL has been rated as the top Dream Employer in India. HUL has also emerged as the top employer of choice among the top six Indian Institutes of Management (IIM C, A, B, L, K and I). HUL won three awards at the 'CNBC Awaaz Storyboard Consumer Awards in 2011 - Most Recommended FMCG Company of the Year; Most Consumer Conscious Company of the Year and Digital Marketer of the Year. The company was felicitated in April 2010 for receiving the highest number of patents in the year 2009 at Annual Intellectual Property Awards 2010. In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Businessworld, one of Indias leading business magazines. The rating was based on a compilation of the magazine's annual survey of Indias most reputed companies over the

past 25 years. HUL is one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India.

Research facilities
The Hindustan Unilever Research Centre (HURC) was set up in 1967 in Mumbai, and Unilever Research India in Bangalore in 1997. Staff at these centres developed many innovations in products and manufacturing processes. In 2006, the company's research facilities were brought together at a single site in Bangalore.

Sustainable Living
Unilever launched Sustainable Living Plan in on November 15, 2010

at London, Rotterdam, New York and New Delhi simultaneously The Unilever Sustainable Living Plan has three major goals, which Unilever aims to achieve by 2020:

Help more than one billion people improve their health and well-being Halve the environmental impact of their products Source 100% of their agricultural raw materials sustainably

The plan also sets out over 50 social, economic and environmental targets. In 2012 Hindustan Unilever featured in BSE's Greenex - India's first environmental friendly equity index the first environmental friendly equity index, which will enable investors take more informed decisions in the green theme of India] Water The company has reduced water usage in manufacturing operations by 10.1% when compared with 2010 and by 21.5% compared to 2008 baseline. Rainwater harvesting has

been implemented in more than 50% of units. More than 75% of the companys manufacturing sites are zero discharge. HUL has also been working for more than a decade in the area of water conservation in locations which face acute water shortage. By 2015, the Company expects hundred billion liters of water to be harvested through the projects they have undertaken. One million people in 180 villages across India will benefit. Most projects are expected to see a 50% rise in crop production. India Water Body In May 2011, the company launched the India Water Body, an initiative aimed to address the challenge of water scarcity in India. HUL has been working in the area of water conversation for more than a decade and has initiated projects in several states across India with the aim to create capacity towards conserving more than 50 billion liters of water in the next four years (by 2015).Water conservation has been a focus area for the company across its value chain. The company has not only reduced water consumption in its operations but also developed product innovations such as Surf Excel quick-wash that helps consumers use less water while washing clothes. Plastic Recycling Project In July 2011, HUL and Bharti Retail started a three month campaign called Go Recycle to promote plastic recycling among consumers in the National Capital Region (NCR) in 2011. Consumers were encouraged to bring empty plastic bottles and pouches, for which they were given discount coupons in return.

Creating financial inclusion The company joined forces with the State Bank of India (SBI) to introduce banking services to people from low-income groups in rural areas.] The project was piloted in the states of Maharashtra and Karnataka. HUL also renders services to the community, focusing on health & hygiene education, empowerment of women, and water management. It is also involved in education and rehabilitation of underprivileged children, care for the destitute and HIV-positive, and rural development. HUL has also responded to national calamities, for instance with relief and rehabilitation after the 2004 tsunami caused devastation in South India. Health and Hygiene Lifebuoy took hand washing messages to remote areas, reaching out to 30million people directly in 201011 through HUL's rural outreach programme, Khushiyon Ki Doli (Caravan of Happiness). The Company entered into a partnership with UNICEF and Department of Rural Development, Government of Madhya Pradesh, to implement hygiene awareness

programmers in over 5,000schools in 2012. This will further strengthen the Lifebuoy hand wash programme in India and contribute to the global target of reaching one billion consumers by 2015 across Asia, Africa and Latin America. As many as 30 million people in India have gained access to safe drinking water from Pureit, in-home purifier which provides water as safe as boiled water, without needing electricity, or running water. Pureit is affordable with an upfront cost starting at Rs. 900, and an ongoing cost that provides approximately four liters of safe drinking water for about one rupee. Globally, Unilever aims to reach 500 million people through Pureit by 2020

Nutrition The companys food and beverage brand labels carry information on energy, protein carbohydrate, sugars, fat, and where relevant, on saturated fat, fiber and sodium. HUL also participates in The Choices Programme. It is a front-of-pack labeling programme aimed to help consumers make a healthier choice. Around 60% of our major food and beverage brands comply with the guidelines as against the global target of 100% by 2015. Greenhouse Gases The Company is on track to meet the global 2012 target, which is to reformulate the products to reduce GHG emissions by 15%. The process of reformulating products started in 2009. A significant reduction has been achieved with the reduction in detergent powders of Sodium Tri Poly Phosphate, an ingredient that neutralizes the impact of water hardness. In 2011, the Company reduced C02 emissions per tonne of production in India by 9.9% compared to 2010 and by 14.7% compared to the 2008 baseline. This was achieved due to the installation of biomass boilers to reduce CO2 emissions at Chiplun, Puducherry, Goa, Nasik and Mysore factories. The biggest challenge was to deliver reduction in CO2 emissions from transport despite significant volume increase. In 2011, the Company delivered 17.8% improvement in CO2 efficiency in logistics over 2010. Sustainable Sourcing In 2011, 60% of tomatoes used in Kissan Ketchup in India were from sustainable sources. The Company is working with a select group of tomato farmers to help reduce water usage through drip irrigation and at the same time reduce the use of fertilizer and pesticides while improving yields.

More than 16% of the tea sourced from India for Unilevers brands was from sus tainable sources in 2011 About 800 smallholder farmers in India are growing gherkins for Unilevers Amora and Maille brands using drip irrigation. Trials have produced average water saving of 40%. Unilever now aims to help up to 1,000 gherkin farmers tran sition to drip irrigation by 2015.Unilever also focuses on helping farmers use composting to cut water use. By 2020, we will source 100% of the raw materials sustainably. Enhancing Livelihoods Project Shakti, a unique initiative by the Company to build and support a network of women entrepreneurs in small villages was strengthened in 2010-11 with the Shaktimaan initiative, under which men from Shakti households were given a bicycle to cover a cluster of villages in their vicinity. There are now 30,000 Shaktimaans across India. The companys Kwality Walls mobile vending operations provide entrepreneurship opportunities to over 6,500 migrant laborers across India. Marketing Initiatives Khushiyon Ki Doli The company launched a multi-brand rural marketing initiative called Khushiyon Ki Doli in 2010 in three states Uttar Pradesh, Andhra Pradesh and Maharashtra. Through this initiative more than 10 million consumers were contacted directly in more than 28,000 villages across these three states. Through this initiative, the company also reached out to 170,000 retailers in these villages. Through this initiative HUL engaged with 25 million rural consumers in media dark areas in 2011.

In 2011, HUL extended this initiative to cover five states West Bengal, Bihar, Maharashtra, Andhra Pradesh and Uttar Pradesh, covering over fifty thousand villages across these five states. In 2012, Khushiyon Ki Doli has been extended to Karnataka to cover a total of six States: Maharashtra, UP, Bihar, West Bengal, Andhra Pradesh and Karnataka. The initiative aims to cover over Fifty five thousand villages in 2012. Various personal care and home care brands of HUL have participated in this initiative including: Wheel, Surf Excel, FAL, Sunsilk, Vim, Lifebuoy and Close-up. The module follows a three-step process, starting with awareness, moving on to consumer engagement and finally retail contact. The first step of spreading awareness is achieved through a team of promoters who head to each village and invite the villages to what is known as Mohall as to make them aware of the company and its products. In every village, there are about 4-5 teams that conduct these events in local language for small focused groups so that it allows for greater engagement and involvement for the consumers. During this activity, brands are introduced with the help of TVCs that are played continuously. And the promoters by way of live demonstrations bring alive the hygiene benefits of using such brands and improving the quality of daily life. To increase the fun element and enhance involvement, promoters also conduct simple quizzes and games around the brands and daily hygiene habits. As part of this activation, the company offers schemes both for the participating consumers and also local retailers for generating trial among consumers as well enhancing availability at retail. Post the mohalla activity, the promotes go home to home and conduct consumer home visits to generate trial where they offer attractive promotions to the consumers Similarly, there is another team which visits all the shops in the village which ensures improved availability and visibility of HUL brands. Technology has been used to highlight the benefits of HULs brands in

a simple and engaging manner. At the same time, traditional symbols have also been used to create more acceptances. For example, the brand films and hygiene messages are shown to the consumers through the use of Palki Lessons in Marketing Excellence The company tied up with CNBC TV18 in 2009 to launch a television show titled, Lessons in Marketing Excellence, a marketing case-study competition for management students in India. Some of the participating institutes include: IIM Calcutta, IIM Ahmadabad, IIM Bangalore, IIM Lucknow, Faculty of Management Studies, University of Delhi, IIM Indore, XLRI,Symbiosis Center for Management and Human Resource Development, Jamnalal Bajaj Institute of Management Studies, SP Jain Institute of Management and Research and National Institute of Industrial Engineering. The show has completed three seasons and the fourth season will be on air soon. http://www.limeonline.in/about_the_show.asp Perfect Stores The Perfect Stores initiative was launched by HUL in May 2010 with the aim to improve the availability and visibility of its products in retail stores across the country In May 2010, four thousand HUL employees from across functions launched the initiative through Project Bushfire and created 16,000 Perfect Stores in 130 towns in India in a span of 6 days. The employees not only laid out various products on the stores shelves but also dusted them, thereby transforming the whole look of the stores. The company is constantly increasing the number of stores it covers under the Perfect Stores programme. Technology has played a key role in this initiative. The companys salesmen have been provided with a hand held terminal called iQ, which gives customized recommendations for each store which products to sell, when to sell them and in what quantity. The salesman just has to sync the IQ device when

visiting the distributor and download data from the centre to retrieve information on the market. To strengthen this initiative, HUL launched POPeye - an initiative that puts the power of IQ in the hands of the employees. When an HUL employee visits an outlet and finds the companys product out of stock, he can log stock calls either by logging on to the POPeye site, or report the information by phone or email.

Hindustan Unilevers corporate headquarters is located at Andheri (E), Mumbai. The campus is spread over 12.5 acres of land and houses over 1600 employees. Some of the facilities available for the employees include a convenience store, a food court, an occupational health centre, a gym, sports & recreation centre and a day care centre. The campus uses green and energy efficient building features such as rainwater harvesting, optimal use of glass and use of zero-waste water recycling concepts. The campus received a certification from LEED(Leadership in Energy and Environmental Design Gold in New Construction category, by Indian Green Building Council (IGBC), Hyderabad, under license from the United States Green Building Council (USGBC) The companys previous headquarters was located at Back Bay Reclamation, Mu mbai at the Lever House, where it was housed for over 46 years

Direct Selling Division

HUL also runs Hindustan Unilever Network (HULN), a direct selling business arm. Under HULN, health products are marketed by Ayush Therapy in collaboration with Arya Vaidya Pharmacy, Coimbatore; beauty products by Aviance; home products by Lever Home; and male grooming by D.I.Y. There are also premium products for beauty salons and others.

Mercury pollution In 2001 a thermometer factory in Kodaikanal run by Hindustan Unilever was accused of dumping glass contaminated with mercury in municipal dumps, or selling it on to scrap merchants unable to deal with it appropriately. Skin lightening creams Hindustan Unilever's "Fair and Lovely" is the leading skin-lightening cream for women in India. The company was forced to withdraw television advertisements for the product in 2007. Advertisements depicted depressed, dark-complexioned women, who had been ignored by employers and men, suddenly finding new boyfriends and glamorous careers after the cream had lightened their skin In 2008 Hindustan Unilever made former Miss World Priyanka Chopra a brand ambassador for Pond's and she then appeared in a mini-series of television commercials for another skin lightening product, White Beauty, alongside Saif Ali Khan and Neha Dhupia; these advertisements, showing Priyanka's face with a clearly darker complexion against the visibly fairer Neha Dhupia, were widely criticized for perpetuating racism.

Introduction to Advertisement
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.







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.

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 non-commercial 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 advertising and marketing communications techniques (generally associated with commercial 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 highpaying advertisers.


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"), in-flight 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.


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 majorities of television commercials feature 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.


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.


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 generalized 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 unrecognizable as advertising is so-called 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 MercedesBenz Arena; the Dortmund Westfalenstadion now is the Signal Iduna Park. The former Sky Dome 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

growth-orientated 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 labeling) 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 has the business community resisted restrictions of advertising. Advertising as a means of free expression has firmly established itself in western society .Machesney 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 labeling, 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 w ith 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 has 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 homogenized 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, Welt-Online 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 Leaching 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 subconscience of people, such as sex drive, herd instinct, of desires, such as happiness, health, fitness, appearance, self-esteem, 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 humor 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 councilor 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 Machesney 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 deals 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 analyzed 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 behavioral 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 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 Machesney calls it "the greatest concerted attempt at psychological manipulation in all of human history."

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, Food fight, 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 dolla rs 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 constitutional 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 hyper-commercialization 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 in tegrity 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 ci ties. 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-thetop 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 Publicities in France, where also media critic Jean Baudrillard is a renowned author. The Anti Advertising Agency works with parody and humor to raise awareness about advertising. And Commercial Alert campaigns for the protection of children, family values, community, environmental integrity and democracy. Media literacy organizations 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 education medias 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, and 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 Munch right. 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 pr imarily 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.

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, maximizing 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 maximized. 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.

With the dawn of the Internet came many new advertising opportunities. Popup, Flash, banner, Pounder, averaging, 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.

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 organizations, 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 selfservice selling methods. Marketers of such items need effective display in order to distinguish their products from those of their rivals.

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 known as press release), photographs and feature stories. Marketers have less control over the nature of the publicity that their organization 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 favorable working relationships, with the media in order to minimize bad publicity. They realize that such communications to the public may have every adverse impact upon the image of the organization.


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 organization 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.

Marketers engage in public relations in order to develop a favorable image of their organization 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 refer to a firm's communication and relationships with the various sections of the public. These sections include the organization customers, suppliers, share holders, employees, the government, the general public and the society in which the organization operates. Public relations programme may higher be formal or informal. The critical point is that every organization, whether or not it has a formalized (organized, programme, should be concerned about its public relations.


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?


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.


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.



It includes that entire person who is 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.


In the buying behavior there are different roles played in each of consumer and business.


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.


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.


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.


This is to be extensively divided in four types: -

1. Complex Buying Behavior: -- when the consumer is 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 is low involved in the purchase but sees absence of aware of differences among brands.

4. Variety Seeking Buying Behavior: -- when the consumer is low involved in the purchase but sees significant of differences among brands.


This is to be extensively divided in four types: -

1. Straight Rebury: -- In this buyer approves the purchasing on the basis of the past buying records and satisfaction with suppliers.

2. Modified Rebury: -- 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.


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


Cultural Factors Culture Personal factors Age Social Factors References Psychological

Sub Culture




Life Styles

Social Class





Roles Statues

and Learning


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

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


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.


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 goes on some form of information search to help them through their purchase decision. Sources of information could be family, friends, neighbors who may have the product you have in mind, and 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 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 organization. This limits post purchase. Behaviour i.e. you feel reassured that you own the latest advertised product.

Factors influencing the behavior 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 too 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 judgments 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 is 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 diamond ring, there is perceived little difference between existing manufacturers.

buying a diamond brand

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 are 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 feedback is always useful even if it costs some extra expenditure to the advertiser.

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 directmarketing situations and hardest measure in brand or corporate-image-building advertising.

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 been discalced in the following paragraphs which are generally used to measure the sales response to advertising.

The Neaps 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 an 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 favorable attitude towards the product may lead to purchases.

Most ads are designed to either reinforce or change existing attitudes. An attitude is a favorable or unfavorable 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 low-involvement 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 only a feather added to one side of the balance to tip it in favor of the brand on that 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. Low involvement:

Deciding between 2 virtually identical alternatives.

The buying of cars, appliances, vacations and other high-priced items are examples of highinvolvement 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 lowinvolvement 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 price against premium High involvement decisions: Very different alternatives quality at a higher price. Often we find ourselves in a state of indecision between the alternatives. When the choice weighs equal in our mind, whether it is low involvement products or high involvement products, it can take just a feather to swing that balance.

can weigh equal.

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.

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 increments are too small for us to notice. They are just below the just noticeable Small cumulative increments: difference (JND). We dont notice a childs Through the process of repetition these small increments growth in 24 hours. 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 high-involvement 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 margina l 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 me-too 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 the attribute of flexible hold.

Vidal Sassoon Hairspray 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 image-but how we see:

o o

the stereotypical user of the brand -the user image; The stereotypical situation in which the brand is used.

If the user image of a brand resembles us, or the type of person we

Jim Beam ad reinforcing the stereotypical user image young, single males.

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.

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: 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.

o o o

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 realized 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 influ ences 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 age nda. 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.


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 se ttle 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. 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?

o o o o o o

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.


* 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 valued thus, new products often dont fare too well. The United States, in contrast, tends to value progress.

Homophile: 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 group the 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 inspirational 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-equalse.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 used e.g., jet vs. propeller aircraft. A discontinuous 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 perception. Several sequential factors influence our perception. Exposure involves the extent to which we encounter a stimulus. Most of this exposure is random we dont plan to seek it out. Exposure is not enough to significantly impact the individual at 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 is 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 suggests 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 in-market impact of the ad or campaign on the consumer. Continuous ad tracking and the Communiqus System are competing examples of post-testing advertising research types.

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.

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 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 objectives is to determine the effect of advertisement over the demand for the product.

TYPES OF RESEARCH Quantitative research: - Quantitative research is descriptive and provides hard data on
the numbers of people exhibiting certain behaviors, 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 organization or is published by another party and readily available.

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.


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 (e.g. feminist). Alternatively, it might put forward a particular argument or examine a methodological issue.

2. Literature review

This may be an attempt to summaries or comment on what is already known about a particular topic. By collecting different sources together, synthesizing and analyzing 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 (e.g. ethnographic, hermeneutic, estrogenic, 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 crosssectional (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 organizational change.


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 b e 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.


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:

When a prediction or a hypothesis 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)




This study shows the Market advertisement position of the company. This study tries to focus on Market and Brand Image. This study also tries to focus enhance the goodwill of the company. This project study also focuses on importance of market survey and data analyzing. In this project study, I try to develop overall idea of marketing Concept.

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.

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, and 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.


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

No. of Persons

45 45 40 35 30 25 20 15 10 5 0 YES a) NO b)

2. Does advertisement affect your purchase decision? (a) Yes 30

(b) No


No. of Persons

35 30 25 20 15 10 5 0 YES a) NO b)

3. Are you branding loyal? (a) Yes 35

(b) No


No. of Persons

35 30 25 20 15 10 5 0 YES a) NO b)

4. Does advertisement shifts you from brand loyalty?

(a) Yes (b) No

40 10

No. of Persons

40 35 30 25 20 15 10 5 0 YES a) NO b) Series1

5. From which source your buying decision is affected? (a) T.V. 35

(b) Newspaper (c) Hoardings (d) By own choice

10 03 02

No. of Persons

40 35 30 25 20 15 10 5 0 T.V. a) Hoardings b) Newspaper c) By own choice d) Series1

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

(b) Multimedia Advertisement


No. of Persons

35 30 25 20 15 10 5 0 Traditional Advertising Multimedia Advertising

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

(b) Disagree


No. of Persons
45 40 35 30 25 20 15 10 5 0 Agree Disagree

8. According to you, which media of advertisement is best: (a) T.V. 30

(b) Newspaper (c) Hoarding (d) Magazine

09 06 05

No. of Persons
35 30 25 20 15 10 5 0 (a) T.V. (b) Newspaper (c) Hoarding (d) Magazine %

9. Does advertisement are effective in influencing consumers? (a) Yes 39

(b) No


No. of Persons

45 40 35 30 25 20 15 10 5 0 YES NO

10. Do you think advertisement convert non users into users? (a) Yes 45

(b) No


No. of Persons

50 45 40 35 30 25 20 15 10 5 0 YES NO

11. Do you think advertisement works as a catalyst to increase competition? (a) Yes 50

(b) No

No. of Persons

50 45 40 35 30 25 20 15 10 5 0 YES NO


12. Do you agree advertisement increases the demand for the product? (a) Agree 30

(b) Disagree (c) Strongly agree (d) Cant say

06 10 05

No. of Persons

30 25 20 15 10 5 0 (a) Agree (b) Disagree (c) Strongly agree (d) Cant say

13. Is there influence of quality on purchase decision? (a) Agree 36

(b) Disagree (c) Strongly agree (d) Strongly disagree

04 10 0

No. of Persons

40 35 30 25 20 15 10 5 0 (a) Agree (b) Disagree (c) Strongly agree (d) Strongly Disagree

14. Do you think advertisement is an effective tool for sales performance? (a) Yes 48

(b) No


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

35 30 25 20 15 10 5 0 YES NO

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 2


No. of Persons

45 40 35 30 25 20 15 10 5 0 (a) Financial Constraints (b) Waiting for more innovative product (c) Waiting for market response


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 TV as TV is the popular media of advertising. Advertisements should be eye catching so that customers (viewers) easily get attracted towards advertisement.

Advertisements should be of good taste and not of bad taste.


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


I have referred the following books and website as the source of my information for completing this report.


Research Methodology

Kothari C.R

Marketing Management

Philip Kotler

Consumer behaviour

L.M Prasad


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 branding 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 : Male ( ) ) 20-25 ( ) 35-40 ( ) Female ( ) 25-30 ( ) 40 above ( )

Occupation : Marital Status Address: Phone Number:

Student ( ) : Married ( )

Teacher ( )

Business ( )

Unmarried ( )

E-Mail, if any: