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Impact of Advertisement
Impact of Advertisement
On
The impact of advertisement
of consumers goods on
customers brand preference
Report on
The impact of advertisement
of consumers goods on
customers brand preference
Supervised BY
Ms. Mustari Alam
Assistant Professor, Department of
business Administration Stamford
University Bangladesh
Submitted By
Mithun kumar basak
2
Masters of business
Administration(MBA)
Letter of Authorization
This is to certify that Mithun kumar basak. ID MBA 044 12157. Along
with the Batch 44th, department of MBA Stamford University Bangladesh
has successfully completed his study with a full length research report on
The Impact of Advertisement of consumer goods on customer brand
preference.
During this period he acquired practical knowledge about The impact of
advertisement of consumer goods on customer brand preference.
..
Ms. Mustari Alam
Assistant Professor, Department of business Administration
Stamford University Bangladesh
Acknowledgement
This is my great opportunity to prepare this project thesis as the
requirement of the master of business administration of Stamford
University Bangladesh. First of all I am very grateful God. I would
like to think my parents for encourage me to prepare this report.
TABLE OF CONTENTS
CHAPTERS
PARTICULARS
1
2
3
4
5
6
7
8
ABSTRACT
INTRODUCTION
OBJECTIVE
RESEARCH METHODOLOGY
SCOPE OF STUDY
LIMITATIONS
LITERATURE REVIEW
ADVERTISING
i. DEFINITION
ii. ORIGIN AND DEVELOPMENT OF
ADVERTISING
iii. MEDIA ADVERTISING
ADVERTISING OBJECTIVES
ADVERTISING PLANNING FRAMEWORK
i. THE ADVERTISING PLAN
ii. THE EXTERNAL FACTORS
9
10
11
12
ADVERTISING INDUSTRY
i. ADVERTISING AGENCY
ii. ADVANTAGES AND DISADVANTAGES
iii. ADVERTISING BUDGET
MEDIA BRIEF
PAGE
NO
9
10
11
12
12
14
18
20
27
28
29
30
31-32
33
34
13
14
15
i. DIFFICULTIES IN SELECTION OF
MEDIA
TYPES
BRAND
i. DEFINITION
ii. SIX LEVELS OF MEANING
iii. BRAND-FROM CONSUMERS POINT
OF VIEW
iv. BRAND- FROM MANUFACTURERS
POINT OF
VIEW
v. BRAND AWARENESS
vi. BRAND KNOWLEDGE
vii. BRAND RECOGNITION
viii. BRAND IMAGE
BRAND PREFERENCE
i. ABOUT BRAND PREFERENCE
ii. IMPORTANCE OF BRAND
PREFERENCE
iii. BASIC COMMUNICATION MODE
iv. BRAND PREFERENCE CHOICE
CRITERIA
v. BRAND ENDORSEMENT BY
CELEBRITIES
vi. SCOPE OF CELEBTITY ON BRAND
PREFERENCE
vii. SUCCESSFUL CELEBRITY
ENDORSEMENTS
viii. ADVANTAGES AND
DISADVANTAGES OF
CELEBRITY ENDORSEMENTS
ix. NEED FOR CELEBRITY
ENDORSEMENTS
INFLUENCE OF ADVERTISING ON
35
43
47
50
16
17
18
18
19
20
21
CUSTOMERS
BRAND PREFERENCE
ADVERTISING RESEARCH
i. IMPORTANCE OF ADVERTISING
RESEARCH
ii. MEDIA RESEARCH
IMPACT OF COLOUR ON CUSTOMERS
BRAND
PREFERENCE
IMPACT OF PACKAGING
i.
FORMS OF PACKAGING
ii.
ii. SIGNIFICANCE OF A TRADE
MARK
ANALYTICAL INTERPRETATION
i. TABLES
ii. CHARTS
FINDINGS
SUGGESTIONS
CONCLUSIONS
REFERENCES
61
65
67
69-94
95
97
98
ABSTRACT
Advertising is a form of communication used to help sell products and
services. Typically it communicates a message including the name of the
product or service and how that product or service could potentially
benefit the consumer. However, Advertising does typically attempt to
persuade potential customers to purchase or to consume more of a
particular brand of product or service. Modern advertising developed with
the rise of mass production in the late 19th and early 20th centuries. The
crescendo of celebrities endorsing brands has been steadily increasing
over the past 20 years or so. Marketers overtly acknowledge the power of
celebrity in influencing buyer's purchase decision. They have firm believe
that likeability or a favorable attitude towards a brand is created by the
use of a celebrity. The crore of rupees spent per year on celebrity
9
INTRODUCTION
Advertising is the means of informing as well as influencing the general
public to buy products or services through visual or oral messages. A
product or service is advertised to create awareness in the minds of
potential buyers. Some of the commonly used media for advertising are
T.V., radio, websites, newspapers, magazines, bill-boards, hoardings etc.
As a result of economic liberalization and the changing social trends
advertising industry has shown rapid growth in the last decade.
Advertising is one of the aspects of mass communication. Advertising is
actually brand-building through effective communication and is
essentially a service industry. It helps to forms the basis of marketing.
Advertising plays a significant role in today's highly competitive world. A
career in advertisement is quite glamorous and at the same time
challenging with more and more agencies opening up every day. Whether
10
11
OBJECTIVES:
1) A study on the impact of electronic media on brand preference.
2) A study on the impact of print media on brand preference.
3) A study on the impact of other media on brand preference.
12
LIMITATIONS
1. An in depth study might not be done because of time constraints.
2. The study will be conducted in Dhaka city only.
LITERATURE REVIEW
Advertising,
sales
promotion
and
public
relations
are
mass-
15
For example, in the next few years technologies will be readily available
to enable a television viewer to click a button to request more details on a
product seen on their favorite TV program. In fact, it is expected that over
the next 10-20 years advertising will move away from a one-way
communication model and become one that is highly interactive. Another
characteristic that may change as advertising evolves is the view that
advertising does not stimulate immediate demand for the product
advertised.
16
Personal selling
Sales promotion, and
Publicity
17
DEFINITION OF ADVERTISING
18
Media of Advertising
Print Media
Electronic Media
1.Newspaper
2.Periodicals
1.Radio
2.Television
other Media
1.Hoardings
2.Posters
Print Media
20
Advantages
Newspaper normally have wide circulation and a single
advertisement in the newspaper can quickly reach to a large
number of people.
The cost of advertising is relatively low because of wide
publication. Generally newspapers are published daily. Thus, the
same advertisement can be repeated frequently and remind reader
everyday The matter of advertisement can be given to newspaper at
a very short notice. Are even last minute change in the content is
also possible .this makes advertising quite flexible.
Limitations
Newspaper are read soon after they are received and then are kept
generally in some corner of the houses after 24 hours we get a fresh
newspaper and this makes the life of the newspaper short.
People read newspaper mainly for news and pay casual attention to
advertisement.
Illiterate persons can not read and thus, newspaper advertising does
not benefit them.
21
b) Periodicals
Periodicals are publications which come out regularly but not on a daily
basis. These may be published on a weekly, fortnightly, monthly,
bimonthly, quarterly or even yearly basis. For example you must have
come across magazines and journals like India Today, Femina, etc. All
these periodicals have a large number of readers and thus, advertisements
published in them reach a number of people.
Advantages
Periodicals have a selected readership and so advertisers can know
about
their
target
customers
and
accordingly
selective
Electronic Media
Radio Advertising
All of us are aware about a radio and must have heard advertisement for
various products in.it. In radio there are short breaks during transmission
22
Advantages
It is more effective as people hear it on a regular basis.
It is also useful to illiterates, who can not read and write.
There are places where newspapers reading may not possible, but
you can hear radio.
For example, you can hear radio while traveling on road or working at
home; but you can not read newspaper. Similarly, while driving you can
hear a radio but cannot read a newspaper.
Limitations
A regular listener may remember what he has heard. But, occasional
listeners tend to forget what they have heard in Radio.
The message that any advertisement wants to communicate may not
be proper as there is no chance to hear it again immediately. There may
be some other disturbances that distort communication.
In comparison to Television, Radio is less effective as it lacks visual
impact.
Television Advertising
23
Advantages
It is most effective as it has an audio-visual impact.
With catchy slogans, song and dance sequences, famous personalities
exhibiting products, TV advertising has a lasting impact.
With varieties of channels and programmes advertisers have a lot of
choice to select the channel and time to advertise.
Advantages
24
Limitations
It is not accessible without a computer.
It is not very suitable for general public.
It is not suitable for illiterate and those having no knowledge
about the operation of Internet.
Other Media
All the media of advertising discussed above are mostly used by
consumers while they are at home or inside any room, except radio and
newspapers or magazines to some extent. Moreover in all these media,
the consumer has also to spend some money to access the advertisement.
However, there are other media available, where the consumer has to
spend nothing and he can see such advertisements while moving outside.
Some of such advertising are hoardings, posters, vehicular displays, gift
items, etc.
Hoardings
25
Posters
Vehicular displays
26
27
Advertising Objectives
28
29
EXTERNAL FACTORS
31
Advertising Industry
The advertising industry consists of three principal groups:
Sponsors;
Media; and
Advertising agencies or advertising departments.
Advertising agencies are of two basic types, viz., Independent; and
House. An independent agency is a business that is free to compete for
and select its clients. A house agency is owned by its major client. A
house agency is not completely free to serve other clients. The advertising
department an integral part of the organization it serves.
32
33
ADVERTISING BUDGET
34
that would not be employed otherwise, even though they are less effective
than the others.
Industrial firms generally invest a larger proportion of their budgets in
personal selling than in advertising, while the reverse is true of most
producers of consumer goods. Organizations with small budgets may be
forced to use types of advertising that are less effective than others.
Some marketers find it necessary to restrict their efforts primarily to
personal selling and publicity. There are organizations with small
promotion budget which take the opposite course of action. They
concentrate on advertising and sales promotion, and neglect other
methods. Some marketers advertise in expensive ways (through classified
advertisement in newspapers and magazines) and spend virtually nothing
on personal selling. There is universal difficulty of relating advertising
expenditures to sales and profit results. Determining the results of
advertising and consequently the amount of money to be allocated in
advertising budget.
Media Brief
Each medium has its merits and its handicaps. The
suitability and profitability of any one type varies from manufacturer to
manufacturer and may vary for a single manufacturer too. Changes are
the only rule. The buyers constitute his market; they are to receive his
advertising coverage consists of the advertisers reaching the maximum
number of these buyers include both his current and prospective
customers. The advertiser has to determine how many there are and
where they are. Then the selection process involves how to send an
effective advertising message economically to the group of buyers, the
length of the campaign period and the cost which he can afford-at a figure
which will make the advertising effort profitable.
Acompany may select media types not used by its competitors, based on
distinctiveness and domination.
Duplication
37
Frequency
The term frequency refers to the number of advertisements of the
same size appearing in an individual medium for a given period such as
per day, per week, per month, or per campaign. There is no formula to
determine the ideal frequency. The two factors are the size of the
advertising fund and the size of the advertisement to be run. If these are
known, frequency can be derived. The two other factors are the number
of media and the advertising period. As the number of media increases,
there is pressure for a lower frequency, or to shorten the advertising
period. The other possibilities are to enlarge the fund, or to reduce the
size of the advertisement. Manufacturers cannot ignore the fact that what
the competitors are doing in respect of frequency. The more often a
message is repeated, the greater the proportion of it the consumer
remembers.
Size of advertisement
The size of advertisement influences the frequency. The size of an
advertisement can be derived if the advertiser:-
38
Colour
Re-run on Advertisement
Repetition has a considerable effect on advertising costs, and its
frequency. Re-run is considered unless it has performed well on its first
appearance. It is most common in mail order business and advertising that
uses small space. It is not common for large advertisements. Indirect
action advertisements should be re-run. The reinforcement of consumer
memory is another benefit of a re-run. There are savings on a re-run. New
readers are added whenever and advertisement is re-run.
Positioning
39
Under trademark law, the seller is granted exclusive rights to the use of
the brand name in perpetuity. Brands differ from other assets such as
patents and copyrights, which have expiration dates. A brand is
essentially a sellers promise to deliver a specific set of features, benefits,
and services consistently to the buyers. The best brands convey a
warranty of quality. But a brand is an even more complex symbol. It can
convey up to six levels of meaning:
Attributes:
Benefits:
41
desirable later.
Promoting the brand only on one benefit can also be risky. Suppose
Mercedes touts its main benefit as high performance. Then several
competitive brands emerge with high performance as compared to other
benefits. Mercedes needs the freedom to maneuver into a new benefit
positioning.
42
BRAND AWARENESS
44
order of Rs. 8000 Crores per annum in the recent times and the
proliferation of brands across categories, there is a strong need to
consider the effectiveness of these advertisements. The idea is not to
cease advertising but to consider how considering decisions would
have to be considered with non-advertising alternatives. These nonadvertising alternatives may also enable a brand to create and sustain
consistent associations, which may be desirable in terms of long-term
implications. A contemporary approach that creates a synergy between
various aspects of a promotional mix (advertising included) provides a
refreshing approach towards marketing communications. There may be
several objectives of advertising and a promotional mix could be used in
an innovative manner to address each of these objectives depending on
the product category and target segment.
Brand Knowledge
Brand knowledge refers to brand awareness (whether and when
consumers know the brand) and brand image (what associations
consumers have with the brand). The different dimensions of brand
knowledge can be classified in a pyramid (adapted from Keller 2001).
45
46
Brand Recognition
Brand recognition reflects the ability of consumers to confirm prior
exposure to the brand (i.e., recognize that it is an old brand that they
have seen before and not a new brand that they are seeing for the first
time).
47
stimuli (e.g., competitors' brands). In a second step, people see the old
stimuli again, along with completely new ones, and are asked to decide if
each stimulus is old or new (i.e., if they have seen them before or
not).
Brand Image
Brand preference
48
49
50
that if your ads do not change brand preference, they are not doing their
job.
51
52
built up. And last three elements are known as defensive because it
preserved in the face of different opportunity or different brands available
in market.
comparatively protectable?
53
54
The latter part of the '80s saw the burgeoning of a new trend
in India - brands started being endorsed by celebrities. Hindi film and TV
stars as well as sports-persons were roped in to endorse prominent brands.
Advertisements featuring stars like Tabassum (Prestige Pressure Cooker),
Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil
Gavaskar (Dinesh Suitings) became common. Of course, probably the
first ad to cash in on star power in a strategic, long-term, mission
statement kind of way was for Lux soap, a brand which has, perhaps as a
result of this, been among the top three in the country for much of its
life-time. We had the Shah Rukh-Santro campaign with the objective of
mitigating the impediment that an unknown Korean brand faced in the
Indian market. The objective was to garner faster brand recognition,
association and emotional unity with the target group. Similarly,
55
Hrithik. Ad recall was as high Witness the spectacular rise of Sania Mirza
and Irfan Pathan in endorsements in a matter of a few months.
56
57
58
59
and provide information that will assist the consumer to make purchase
decision, the relevance of advertising as a promotional strategy, therefore,
depends on its ability to influence consumer not only to purchase but to
continue
to
repurchase
and
eventually
develop-brand
loyalty.
61
in
product
development,
attributes
of
the
alternative
62
ADVERTISING RESEARCH
Advertising research is a branch of marketing research, and is both a sort
of insurance to avoid wasting money on in effective advertising and a
means of monitoring the effectiveness of a campaign while it is running
and after the campaign has ended. It is also possible and advantageous to
ling advertising research with other forms of marketing research which
the company is undertaking. Today the advertisers have the benefits of
many sorts of research, and they are usually recommended and
commissioned by an advertising agency. In fact, in its own interest a good
advertising agency may insist on the use of research to ensure that it
produces and conducts successful advertising.
The advertising research is applications of marketing research aimed at
the measurement of advertising effectiveness and improves advertising
efficiency. The primary aim of advertising is to sell an idea, goods or
services whereas the ultimate goal of research is to measure the impact of
advertising on sales of that idea, good or service.
Research is not confined to testing creativity. There is a wealth of
independently researched statistical information on sales, readership and
audience figures regarding all the principle media so that the most
economic media can be used. In addition to this it is possible to control
the duration of appearance of an advertisement by assessing when enough
people have had the opportunity to see the advertisement a sufficient
number of times. This is in line with the IPA definition of advertising
which refers to presenting the most persuasive selling message to the
right prospects for the product or service at the lowest possible cost.
63
65
66
Significance of a trademark
Distinguishes one company's goods from those of
another
Serves as advertisement for quality
Protects both consumers and manufacturers
Used in displays and advertising campaigns
70
NO. OF RESPONDENTS
50
42
22
29
7
71
NO. OF RESPONDENTS
86
64
72
NO. OF RESPONDENTS
40
13
12
ADIDAS
NIKE
SONY
REEBOK
28
16
16
15
In this chart it is clear that the most liked brand is Levis followed by
Adidas which are both apparel companies.
NO. OF RESPONDENTS
62
42
23
16
7
Inference:
The brands like Levis and Adidas and many more are liked by the
respondents because of the good quality which shows a percentage of 41
74
and comfortable which has a percentage of 28.The brands are even liked
because they are stylish, reliable and because of its features.
NO. OF RESPONDENTS
32
66
6
10
11
25
75
The respondents said that they got the information of these brands from
different media like television, newspaper, radio and word of mouth etc.
according to the survey television has given information to 44%
respondents, newspaper to 215, through word of mouth to 17%
respondents, from radio to 4% internet 7% and last hoardings to 7% of
respondents. This shows that a television creates more impact on
customer.
NO. OF RESPONDENTS
25
79
17
29
76
In this chart the respondents have said about their preference of media to
get information about their brands 53% have said that they prefer
electronic media like television, internet 17% have voted for print media
like newspaper, magazines 19% said that they go with word of mouth
from friends, family, relatives, etc. and 11% choose other media.
DO YOU RELY ON
ADVERTISEMENT
YES
NO
SOMETIMES
RARELY
NO. OF RESPONDENTS
58
24
56
12
77
Figure7.Survey Report
Inference
The respondents were asked whether they believe on advertisements.39%
said that they rely on advertisements and utilize theinformationgiven,16%
said that they do not believe,37% said that they sometmes believe if they
find the information rational, and 8% rarely believe.
NO. OF RESPONDENTS
YES
NO
SOMETIMES
RARELY
21
52
59
18
78
NO. OF RESPONDENTS
ALWAYS NECESSARY
36
SOMETIMES NECESSARY
NOT NECESSARY
88
26
79
FACTORS INFLUENCE
DECISION MAKING PROCESS
PRODUCT FEATURES
ADVERTISEMENT
COST
OPINION OF FRIENDS
OTHERS
NO. OF RESPONDENTS
55
29
37
20
9
80
NO. OF RESPONDENTS
59
32
20
18
21
81
NO. OF RESPONDENTS
YES
NO
SOMETIMES
72
50
28
82
NO. OF RESPONDENTS
YES
NO
SOMETIMES
RARELY
45
29
60
16
83
Figure13.Survey Report
Inference
According to the survey the 30% respondent said that they buy a product
by getting attracted to it,19% said that they do not buy by getting
attracted ,40% said that sometimes by getting at traced they buy the
product and 11% said that rarely the get attracted and purchase a product.
NO. OF RESPONDENTS
35
50
28
19
18
84
NO. OF RESPONDENTS
56
27
21
26
85
NO. OF RESPONDENTS
BRAND NAME
26
35
45
86
COMPANY NAME
ENDORSERS
PRODUCT FEATURES
18
12
14
87
NO. OF RESPONDENTS
39
63
29
88
REFER INTERNET
19
18. Do you prefer going to any store just by seeing the offers
on hoardings and banners?
DO YOU GO TO STORES BY
SEEING HOARDINGS AND
BANNERS
YES
NO
SOMETIMES
RARELY
NO. OF RESPONDENTS
75
22
38
15
89
NO. OF RESPONDENTS
79
26
33
12
90
NO. OF RESPONDENTS
68
27
36
19
91
NO. OF RESPONDENTS
NOT IMPORTANT
30
79
38
92
NO. OF RESPONDENTS
YES
82
93
NO
ALWAYS
RARELY
25
27
16
NO. OF RESPONDENTS
YES
78
94
NO
SOMETIMES
RARELY
22
35
15
NO. OF RESPONDENTS
SOMETIMES
27
82
41
95
NO. OF RESPONDENTS
YES
NO
77
35
96
SOMETIMES
RARELY
24
14
FINDINGS
The most preferred brand is Levis with 48 respondents out of 150
Respondents.
62 respondents prefer their brands because of its quality.
97
98
99
CONCLUSION
100
Suggestions
Companies should research continuously for quality improvement.
Develop more effective advertising campaigns
Advertising messages should both be persuasive and reminderoriented.
Comparative advertising is useful in this regard.
Television combines motion, sound, and special visual effects for
which it is the most preferred media for advertisements.
To employ integrated advertising of their product.
More budgets could be devoted to TV adverts in view of the
Consumers.
References
1. www.geocities.com/prof_rajagopal/labr1
2.www.krepublishers.com/...../
2.www.indiamba.com/Faculty_Column/FC706/fc706
4.www.csulb.edu/colleges/cba/honors
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102