AN IMPACT OF ADVERTISING ON

CONSUMER BUYING BEHAVIOUR

Submitted By:
Name: AKANKSHA DIXIT
Class: BBA SEM-6
Enrollment No: A7006415033
Specialization: MARKETING

Under Guidance Of:

Faculty Guide:
MS. KOMAL MALLIK
Designation:
ASST. PROFESSOR
ABS, LUCKNOW
(MAJOR .PROJECT REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME BACHLORS
IN BUSINESS ADMINISTRATION (2015-18)

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

1
 STUDENT CERTIFICATE

I AKANKSHA DIXIT student of Bachelors of Business Administration from Amity

University, Uttar Pradesh hereby declare that I have completed my MAJOR PROJECT on
“EFFECT OF ADVERTISING ON CONSUMER BUYING BEHAVIOUR” under the
guidance of MS. KOMAL MALLIK, in partial fulfilment of the requirement for award of
degree of BBA.

I also declare that the contents of this report are true to the best of my knowledge.

Signature: Signature: Signature:

AKANKSHA DIXIT MS.KOMAL MALIK DR.HARSH VARDHAN

Student Asst. Professor Director (ABS)

2
 STUDENT DECLARATION

Title of project report-“EFFECT OF ADVERTISING ON CONSUMER BUYING BEHAVIOUR”

I understand what plagiarism is and am aware of the University’s policy in this regard

I declare that:-

• The work submitted by me in partial fulfillment of the requirement for the award of degree
Bachelor of Business Administration assessment is my own; it has not previously been
presented for another assessment.
• I declare that this Dissertation is my original work. Wherever work from other source has
been used, all debts (for words data, arguments and ideas) have been appropriately
acknowledged and referenced in accordance with the requirements of NTCC Regulations
and Guidelines.
• I have not used work previously produced by another student or any other person to submit
it as my own.
• I have not permitted, and will not permit, anybody to copy my work with the purpose of
passing it off as his or her own work.
• The work conforms to the guidelines for layout, content and style as set out in the
Regulations and Guidelines.

Date: AKANKSHA DIXIT

A7006415033

BBA-SEM 6

3
 FACULTY CERTIFICATE

I hereby certify that

 AKANKSHA DIXIT, A7006415074, student of BBA (2015-2018) at AMITY

BUSINESS SCHOOL, Amity University Uttar Pradesh has completed the Project
Report on “EFFECT OF ADVERTISING ON CONSUMER BUYING
BEHAVIOUR” during 6th Semester under my supervision.

• The presented work embodies original research work carried out by the student as per the
guidelines give in University Regulations.
• The research and writing embodied in the thesis are those of the candidate except where
due reference is made in the text.
• I am satisfied that the above candidate’s prima facie, is worthy of examination both in term
of its content and its technical presentations relative to the standards recognized by the
university as appropriate for examination.
• I certify that in accordance with NTCC guidelines, the report does not exceed the
prescribed maximum word limit; or Prior approval has been sought to go beyond the word
limit.
• Wherever work form other source has been used, all debts (for words, data, arguments and
ideas) have been appropriately acknowledged and referenced in accordance with the
requirements of NTCC Regulations and Guidelines.

MS. KOMAL MALIK

Asst. Professor

4
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my

faculty guide MS. KOMAL MALLIK who gave me the golden opportunity to do
this wonderful project on the topic “EFFECT OF ADVERTISING ON CONSUMER
BUYING BEHAVIOUR”, which made me do lot of research and help me learn many
new things.

Secondly, I would like to thank my parents and friends who

helped me a lot in finishing this project with success.

AKANKSHA DIXIT

5
 TABLE OF CONTENTS

SL.NO PARTICULARS PAGE

NO.

1. • ABSTRACT 8-9

2.  INTRODUCTION 10-17

3.  LITERATURE REIVEW 18-34

4. 35-38
 COMPANY PROFILE

5. • RESEARCH METHODOLOGY
39-40

6. • DATA ANALYSIS AND INTERPRETATION 41-50

51-54
7. • FINDING , SUGGESTION AND CONCLUSION

6
8.  BIBLIOGRAPHY 55-57

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 CHAPTER 1
INTRODUCTION

THE ROLE OF ADVERTISING

LDCs and socialist/communist countries, emphasizing production and distribution

efficiency, usually attack advertising as a wasteful practice whose primary purpose is to create

unnecessary wants. Yet advertising serves a very useful purpose-consumers everywhere,

irrespective of their countries political systems and level of economic development, need

useful product information. Since the 1950s China has prohibited foreigners from advertising

there because advertising was considered politically inappropriate. In the 1980s, however,

China changed its policy in order that the Chinese population could be informed of products

available, just as in a modern industrial society. Virtually all media are how available for

advertising billboards, department stores display cases, telephone books, newspapers,

magazines, and journals. Even radio and TV time is available and can be purchased. TV

advertising is quite a bargain, since a sixty-sexily-second spot for the nationally broadcast

China Central Television I network costs only 55,000. Chinese viewers generally enjoy

watching the commercials shown.

One study of our developing countries found that singaporeans, probably the most

economically advanced among the group, had more negative feelings than those in other

countries. They were least likely to see advertising as being economically beneficial, and they

8
were also most critical of the social impact of advertising. Interesting, Russian consumers

were found to exhibit more variable attitudes toward advertising in general, whereas

American respondents felt that advertising resulted in greater negative social effects.2

A correlation has been shown to exist between advertising expenditures and a

country's GNP and level of economic development. As a country becomes more

industrialized, the level of advertising expenditure tends to increase as well. the United States

is highest in per capita advertising at $499 per person. In the case of japan, Canada, Germany,

and France, the figures are $298, $196, and $154, respectively.3 Regarding the

Commonwealth of Independent States (CIS), foreign companies are responsible for about half

of the advertising done there. The advertising expenditures in the CIS, at about $30 million,

are quite tiny and represent only the amount for a small advertising account in the United

States. Proctor and Gamble, the world's advertising leader, annually spends $2.3 billion

worldwide to promote its products.

Many of the largest advertisers in the United States also advertise heavily overseas.

Proctor and Gamble and General Motors, for example, are among the largest advertising

spenders in France and Canada. Local firms in markets outside the United States often view

this kind of expenditure as an unfair trade practice. They fear that American firms could easily

overwhelm local firms in terms of advertising dollars.

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ADVERTISING AND REGULATIONS:

Advertising can be affected in several ways by local regulations. The availability of

media (or the lack of it) is one example. When and how much media time and space are made

available, if at all, is determined by local authorities. Belgium prohibits the use of electricity

for advertising purposes between midnight and 8:00 A.M. German was regulate TV

advertising contents and limit advertising on the national TV channels to twenty minutes a

day, forcing advertisers to switch from state-run TV to private channels. Greece and South

Korea ban the erection of new signs. Furthermore, nationalism may int rude in the form of a

ban on the use of foreign languages nd materials in advertising.

The advertising industry may have a local self-regulatory organization which regulates

the styles and contents of promotional activities. As in the case of England, broadcast

advertisements to be legal, decent, honest and truthful. For instance, no medium can be used

to advertise alcoholic drinks if more than 25 percent of the audience is under eighteen years.

Children mu,st not be encouraged to eat or drink at bedtime or to replace main meals with

confectionery or snack foods. Regarding motor vehicles, speed or acceleration should not be

the predominant message, and cars on public roads must not be shown to exceed speed limits.

10
Those selling treatment of minor addictions and bad habits must acknowledge the vital role

of willpower.

The legitimacy of comparative advertising has not been fully settled in many countries.

The Draft Directive of the EEC Commission on Misleading and Unfair Advertising has

proposed that comparative advertising shall be allowed, as long as it compares material and

verifiable details and is neither misleading nor unfair. In effect, this directive would require

Austria, Belgium, France, Itals, and Luxembourg to remove present bans. Certain products

are banned altogether from certain media or from advertising in certain countries.

According to the World Health Organization, nations with complete bans on cigarette

advertising are Norway. Finland, Italy, Iceland, Mozambique, Algeria, Joudan, Sudan,

Bulgaria, Czechoslovakia, Hungary, Poland, Romania, Russia, Yugoslavia, Singapore, and

French Polynesia. Those with partial bans include Senegal,Bolivia, Cyhprus, Canada, Egypt,

Belgium, Denmark, France, Germany, Ireland, Sweden, Great Britain, Australia, New

Zealand, and the United States.

Interpreting the law creatively, R./J. Reymnolds attempted to circumvent Norway's

ban on cigarette advertising by advertising "Camel boots" instead. The advertisement used

the same model, trademark, and the lettering in the Word Camel as those used in Camel's

cigarette advertisements. After a protest, the advertisement swas eventcually withdrawn.

Advertisements in France are limited to a pricture of a cigarette package with no "Seductive

imagery". To overcome this restriction, cigarette makers create products such as Marboro

cigasrette lighters and Pall Mall matches that are purposefully made to resemble cigarette

11
packages becau,se there is no restriction on how such products can be advertised. In Sudan,

Philip Morris advertised by having the Marlboro cowboy hold a Marlboro ligher.

ADVERTISING MEDIA:

International advertising is the practice of advertising in foreign or international media

when the advertising campaign is planned, directly or indirectly, by an advertiser from another

country. To advertise overseas, a company must determine the availability (or unavailability)

of advertising media. Media may not be readily available in all countries or in certain areas

within the countries. Furthermore, the techniques used in media overseas can be vastly

different from the ones employed in the United States.

TELEVISION:

For Americans, television is taken for granted because it is available every where and

in color. Outsidde of the United States, even in other advanced nations, it is a different story

altogether. This difference may explain why U.S. advertisers spend $ 20 billion each yeasr

on TV commercials, four times the amount European advertisers spend.

In most countries, television is not available on a nationwide basis because of the lack

of TV stations, relay stations, and cable. TV. Color television, for the poor, is a rarity.

12
Nevertheless, the viewing habits of people of lower income should not be underestimated

because of the "group viewing" factor. For example, a TV set in a village hall can attrract a

large number of viewers, resulting in a great deal of interaction among the villagers in terms

of conversation about the advertised products.

In many countries, TV stations are state controlled and government operated because

of military requirements. As such, the stations are managed with the public welfasre rasther

than a commercial objective in mind. The programming and advertising asre thus closely

controlled. The programs shown may vary widely and are usually dubbed in the local

languages. European governments particularly abhor the U.S. Private-broadcast model with

its degenerate mass programming. More recently, however, European restrictions have been

reduced on featuring films with freaquent interruptions from advertisements. This reduction

is due in part to an attempt by European countries such as France to end t he government

monopoly on media and to privatize the broadcast business by making available private

broadcasting franchises.

There are at least two tactices an advertiser can employ to overcome the problem of

lack of broadcast time for advertising. One is to use shorter commercials. In the United States,

61 percent of TV spots are thirty-second commercials, and 35 percent are fifteen-second

commercials. In Japan, 79 percent of TV spots are fifteen-second commercials. Not

surprisingly, clutter is worse in Japan; there are sixteen commercials per hour in the United

Stastes but thirty commercials per hour in Japan.

13
 Although disputed in the United States, fifteen-second spots have become the norm in

some countries. Spots shorter than thirty seconds are an overwhelming majority in France (71

percent), JHapan (79 percent), and Spain (90 percent). As a matter of fact, the Japanese even

have eight-second spots that function almost like billboards on TV nd yet are graphically

compelling.

Another tactic is to purchase TV time well in advance. With a waiting list of 100

companies, TV advertising time in the Netherlands must be booked with a year's notice. Those

advertisers able to get air time still face other advertising hurdles. For example, commercial

interruptions can be long and frequent, creating a severe problem of clutter.

Advertisers sometimes use television station in one country to reach consumers in-

another country. Canada is a prime example. More than 75 percent of Canadians are clustered

within 100 miles of the U.S. border, and 95 percent are within 200 miles. Thus, nearly all

canadians are within the broadcast range of U.S. Stations. U.S.advertisers often use U.S. TV

stations to communicate with Canadian consumers. In fasct, canadian advertisers themselves

make it a prasctice of using U.S. stations at the border (e.g. Detroit, Spokane, and Buffalo)

cto air commercials aimed primarily at the Canadian market. Reasons forx this practice are

that American TV stations have higher program ratings than Canadian stations, and that the

Canadian audience in total spends some twenty-six billion hours a week viewing U.S. shows-

the equivalent of 78 percent of the total hours spent watching Canadian English-language TV

programs.

14
 New techn ology may allow advertisers to solve some of the problems related to TV

time and government regultion (e.g. a ban on the advertising of certain products or to certain

groups). Cable TV is now available in Western Europe Commercial programs, for example,

can be beamed from the United kingdom to cable networks in Norway, Finland, and

Switzerland. Retransmitting the signal, however, is still illegal in Norway.

Satellite TV may present another solution and is gaining wider acceptance. Mc-

Donald's and Mars have begun to funnel some advertising dollars to the Sky Channel satellite

network. McDonald's has used special commercials promoting safety in order to placate those

Eurxopean countries that restrict product advertising aimed at children.

RADIO:

Radio is no longer king of the media in the United States, but it retains its status in

many countries as they only truly national medium. In Mexico for example, radio provides

coverage for 83 percent of the country. It is popular for several reasons. A radio set is

inexpensive and affordable-even among poor people. It is virtually a free medium for

listeners; the programs are free and the costs of operating and maintaining a radio set are

almost negligible. Furthermore, illiteracy poses no problem for this advertising medium. As

a communicastion medium, radio is entertaining, up-to-date, and portable. The medium

penetrates from the highest to the lowest socioeconomic levels, with FM stations being

15
preferred by high-income and better-educated listeners. Not surprxisingly, radio commands

the largest portion of advertising expenditures in a great number of makrets.

In order for radio stations in the United States to survive and counter the threat of

television, they have adopted txhe "magazine" format by specializing in a parrticular type of

programming. Advertisers must not assume that stations have adopted this same approach

abroad. In many countries, radio stations have not become specialized in a particular program

format and see no need to be selective in order to attract the listening audience. Radio stations

commonly vary their programming format throughout the day, sometimes as often as every

half hour. An audience shift should thus be expected, and a consequence of this practice ins

that it may not be easy to reach the target market effectively.

Unlike U.S. stations, which do their own programming and hire theirx own announcers

or disc jockeys, overseas stations are quite liberal in selling air time outside operators. This is

true in spite of the fact t hat for security reasons most overseas stations are owned, controlled,

nd operated by the government. Once the air time h as been sold, the program format is

determined by the sponsor or independent discjokey. A certain disc jockey might even buy

air time to broadcast from a number of stations, promoting his or her identity by frequently

mentioning his or her name or titxle of show, by playing a particulasr theme song to begin

and end the program, and by soliciting calls and letters from the audience. Thus, listeners

loyalty is not so much to the station but to the dis jockey who may roam from one station to

another throughout the day.

16
NEWSPAPERS:

In virtually all urban areas of the world, the population has access to daily newspapers.

In fact the problem for the advertiser is not one of having too few newspapers but rather one

of having too many of them. In the United States, large cities can rarely support more than

two dailies. In other countries, a city may have numerous newspapers dividing the readership

market. Lebanon, with a population of 1.5 million, has some 200 daily and weekly

newspapers, with the average circulation per paper of only 3,500.

Newspapers in communist countries are controlled by the government and are thus

used for propaganda purposes. China's newspapers, for example, txend to casrry news items

thast the government deems to express some moral and social value.

Believing that sensational news attracts readership, most non U.S. new3spapers in the

free world are set up in a sensational news format. It is a rule rather than the exception for

these newspapers to concentrate on murders, robberies, scandals, and rapes. Even the United

Kingdom, where the citizens are known for their reserved manner, is not exempt from this

practice. World news and nonscandalous political news often take a back seat to the more

sensational news. As a result, non U.S. news papers look more like such weekly U.S. tabloids

as the National Enquirer and Star. A newspaper that concentrate on news of substance and

qualaity (i.e. unsensational news) must pay for this in terms of low readership.

Many countries have English-language newspapers in addition to the local language

newspapers. The English-language newspapers are patterned more like the traditional

17
American paper, with an emphasis on world, government, and txhe business news. This

vehicle would be appropriate for an advertiser to reach government and business leaders,

educated readers, upper-class people and those with affluence and influence. The aim of the

Asiam Wall Streetx Journal is to supply economic information in English to influential

businesspersons, politicians, top government officials and intellectuals. It was not designed

to be a newspaper for mass readers. Exhibit shows a number of English-language newspapers

in Asia, each carrying World Paper, an internastional news supplement.

Some countries have nationally distributed newspapers. But it is difficult to find a true

national newspaper because almost every newspaper tries to be momewhat local in nature.

Even in the United States, before USA Today, the closest thing to a national newspaper was

perhaps the New York TXimes, with the Washington Post in second place. Clearly, it is even

more difficult to have an international newspaper. Those papers distributed internationally

include The International Herald Tribune and such financial news papers as The Wall Street

Journal (with the Asian Wall Street Journal for Asian countries) and the United Kingdom's

Financial Times. As might be expected, these newspapers are not available everywhere, and

the circulation is low. Financial Times, a century-old daily covering British business,

sinternational business, and economic and political news, has a worldwide circulation of

about 230,000, with only 6,000 sold in the United States and Canada. Still, the Financial

TXimes offers U.S. advertisers access to upscale readers in Europe and other parts of the

world.

18
 There are several problems associated with advertising in foreign newspapers. The

purchase of space is a monumental problem. The general unavailability of space is the result

of overseas newspapers having a fixed and small number of pages for each edition, including

the sunday paper. This may seem strange to American advertisers, who asre used to getting

newspaper space at anytime with just a few days notice. American advertisers are often

puzzled about why overseas publishers do not add more pages to accommodate

advertisements that would bring in revenue. The answer is that equipment is limited and so is

paper. Japanese newspapers, which experience these production complicastions, are limited

to only sixtxeen-to-twenty pages a day. Because newspapers may have to ration and turn away

advertisers, marketers may need special arrangements to buy space on short notice.

American advertisers are accustomed to having separate editorial sections in American

newspapers and are often frustrated by foreign papers. A twenty-page newspaper may still

have sections for sports, entertainment, fashion, business, and science, but each section may

be only one page. Thus, it becomes difficult for an advertiser to match the product to the

proper section or environment (e.g. tire and automotive products in the sports section) in a

local newspaper.

MAGAZINES:

Nowshere else in the world are there so many and varied types of consumer magazines

as there are in the United States. Because U.S. magazines segment the reading market in every

19
conceivable manner, there are magazines for the masses as well as for the few and select. This

makes it possible for advertisers to direct their campaigns to obtain reach (the total number of

unduplicasted individuals exposed to a particular media vehicle at least once during a

specified time period) or frequency (the intensity or the number of times within a specified

period that a prospect is exposed to the message) orx both. Foreign magazines are generally

not highly developed in terms of a pasrticulr audience. They do not segment their readers as

narrowly as U.S. magazines do, and they do not have the same degree of accurate information

about reader characteristics. In Brazil, there are very few magazines, and people read all three

of four of them. This results in duplicastion which can be a waste of promotional effort unless

frequency is the objective.

Marketers of international products have the option of using international magazines

that have regional editions (e.g. Time, Business Week, Newsweek and Life). In the case of

Reader's Digest, local-language editions are distributed. Allen-Edmonds, a shoe company,

was able to increase its foreign sales by advertising its shoes in the internastional editions of

such magazines. For technical and industrial products, magazines can be quite effective.

Technical business publications tend to be international in their coverage. These publications

range from individual industries (e.g. construction, beverages, textiles, etc) to world wide

industrial magazines coverxing many industries. A trade magazine about China, for example,

is a suitable vehicle for all types of industrial products of interest to the Chinese goverxnment.

In Europe, the number of business publications is seven times as high as that in the United

States. There are more than 1,000 technical and trade journals in Scandinavia. Canada in

20
contrast, usually has only one trade magazine for each market segment, making it easier to

cover the entire Canadian market.

Local (i.e. national) business magazines are a good vehicle to reach well-de-fined

target audiences. Nikkei Business is one such magazine in Japan.

DIRECT MAIL:

Confusion usually arises when such terms as direct mail, direct advertising, direct

marketing, and mail order are discussed. It is important to understand that direct marketing is

a broad term that encompasses the other related terms. According to the Direct Marketing

Associastion (DMA), direct marketing is the total of activities by which products and services

are offered to market segments in one or more media for informational purposes or to solicit

a direct response from a prxesent or prospective customer of contributor by mail, telephone,

or personal visit. This is a more than $1 billion businessx in the United States. As a system,

direct marketing has two distinct components:

1. Promotion

2. Orddering/delivery

Direct marketers can promote their products through all advertising media. They can

solicit orders by making announcements on television or in magazines (usually with coupons

or order forms). Television home shopping is a form of direct marketing. Some cable TV

21
channels (e.g. the Home Shopping Network in the United States and the Canadian Home

Shopping Network) asre designed specially for this purpose. In any case, local regulations

must be followed. In France, advertisers cannot show direct sales telephone numbers on

screen. Viewers must call the number on screen to obtain a second number for placing orders.

In Canada, until recently, home shopping services were restricted to using still images on TV.

Stasrting in 1995, the Canadian Radio-Television and Telecommunications Commission h as

made it possible for marketers to use full-motion video in electronic retailing services. Also,

infomercials now can be aired throughout the day not just midnight to 6 A.M.

Frequently, marketers rely on direct advertising in media created for that purpose.

These media consist of direct mailings and all forms of print advertisements distributed

directly to prospects through a variety of methods (i.e. advertising materials distributed door

to door, on the street, or inside the store or those placed inside shopping bags and on auto

windshields). Direct mail is thus only one kind of direct advertising medium, which is in turn

a part of general-advertising media or the promotional methods or direct marketing. Of

course, the use of direct mail is not limited to just direct marketing. The Direct Marketing

Association annually publishes a break-down of direct-marketing expenditxures by media in

selected countries.

With regard to ordsering, buyers can place orders by telephone (often with a toll free

number), through a personal visit, or by mail. An order that is sent in by mail and fulfilled by

mail delivery is called a mail order. Thus, mail order is not a medium; rather it is just one of

22
several means that can be used to place and handle orders. An orderxing method consists of

one of the two components of the direct marketing system.

For this discussion, direct mail and direct marketing are considered together. There are

several rxesons for doing so. Direct mail generally accounts for a major portion of direct

marketing advertising expenditures. Also, many reports on direct marketing campaigns do

not provide a detailed breakdown of the advertising dollar accounted for by media other than

direct mail.

Directc mail is lasrgely undeveloped in many countries. This is especially true where

labor is cheap and abundant and where it is just as easy to use a salesperson to make sales

calls. Furthermore, for countries with high illiteracy, this medium is not suitable for promoting

consumer products.

Without doubt, the United States in the most developed masrket for the advertising

medium of direct mail. Foreign masrketers as wsell as American marketers have a wide

slection of buyer lists that permit them to contact the intended tasrget audience with minimum

waste.

OUTDOOR:

23
 Outdoor advertising includes posters, billboards, painted bulletins, roadside and store

signs, and electric spectaculars (large illuminted, electric signs with special lighting and

animated effects). Given the great impact and impressiveness of size and color, outdoor

advertising serves well as reminder prxomotion for well-known products.

Outdoor advertising is frequently used overseas because of the low cost of medium,

because an advertiser can simply place its posters on any available wall bus-stop, shelter, tree,

or fence without paying for it. The prasctice also encourages one advertiser to replace other

advertisers posters with one of its own.

Unlike most media, outdoor advertising is one medium in which the United States

seems to lag behind other countries in terms of per-capita advertising expenditures and

sophistication. This is an advanced and dominant medium in Eurxope and Canada. Outdoor

advertising is also very important in countries without commercial TV (e.g.Belgium). In

Saudi ASrabia outdoor and transit posters account for more than a quarter of all media

sepnding, roughly ten tximes the U.S. percentage.

Outdoor advertising does not have to be uniteresting. One advertiser changes its

outdoor illustration and message frequently-with the model removing an item of clothing each

time the poster board is changed. Another advertiser made it appear that the billboard was

gradually being eaten away by termites.

New technologies have added such design options as backlighting, projection, Day-

Glo paints, three-dimensionals, extensions, reflective disks, bows, and cutouts. Fiber optics

24
may eventually replace neon because fiber optics are much more energy efficient and weightx

less than neon glass tubing. Some advertisers have turned to video billboards that can show a

twenty-second commercial repeatedly.

When using outdoor advertising, certain rules should be followed. Illustrations should

be larege, and words should be kept to a minimum. A rule of thumb is to say "What must be

said" and not "Whgat can be said". Simple, contrasting colors should be used; white on black

or red seems to work well. The right typeface is critical; certain typefaces are difficult to read.

Having all letters in capitals can be equally as difficult and should be avoided.

25
 Chapter II

Role of Advertising:

I. Manufacturers and Advertising:

Manufacturers and producers, who intend to make available goods to the
people at profit, do take full advantage of advertising as a major weapon to
popularise their products and services.

The specific benefits that accrue to the manufacturers are:

1. It increases and stabilizes the sales turnover:

Even the best product cannot be sold on its own, though it is said “good wine
needs no bush”. People should know that the product is the best. In a highly
sensitive and competitive mechanism, profits of the firm cannot be
maximised by mere reducing the costs but by multiplying the sales-turnover.

Advertising does this, by changing the consumer attitude favourably. Further,

the sales turnover rate so attained should be maximised and maintained at any
rate. Advertising does this by repeat sales. A regular, effective and frequent
advertising helps in building more loyal class of customers at all times.

2. It maintains the existing market and explores the new:

A forward looking company always has its eyes on the future business
prospects though it cannot lose sight of the current position. A company’s
success is reflected not only in creating market but its maintenance and
extension.

26
It is a natural feeling that when advertising campaign decreases, the products
are not measured up to, the consumer expectations. Further, current business
situations warrant a forceful entry into new markets. In such newly exposed
markets, advertising does spade-work for the sponsor to sow the seeds of
prosperity.

3. It controls product prices:

Through advertising, it is possible to control the product prices with profit,
particularly the retail prices. Very often the greedy retailers exploit the needy
consumers by charging higher prices.

If this consumer exploitation is not bridled, both the producers and

consumers are to suffer for no fault of theirs. The manufacturer can help him
and help consumers by printing the consumer prices on the product packages.
Today, product package protects not only the contents of it but also the
consumer interest.

II. Middlemen and Advertising:

In the chain of distribution, middlemen act as the essential links between the
producers and the consumers. Their existence is justified by the functions
they perform and the services they render.

Here, benefits of advertising are seen from angle of retailer a last link in
the chain of distribution:
1. It guarantees quick sales:
Every retailer holding the stocks of different producers is interested in quick
turnover. Advertising, by bringing these whole ranges of products to the
notice of consumers, quickens the pace of sales.

27
Faster sales imply the specific advantages such as reduced capital lock-up,
loss of stock, and increased profits. Advertising gives him much leeway and
freedom to better serve the needs of consumers. Therefore, he earns better by
serving better.

2. It acts as salesman:
Advertising has been rightly described as salesmanship in print. What a
travelling salesman does for the selling house is done by advertising at least
cost. That is why; most retail organizations do not employ large army of
travelling salesmen.

Instead, they are willing to spend on advertising which attracts consumers to

the stores where the counter salesmen cater to their needs. In fact, advertising
has been heralded as a boon to retailers who are freed from the problems of
sales management. In fact, goods are sold in advance by advertising.

3. It makes retail price maintenance possible:

The consumers are very keen on getting quality products at stable price over
a longer period of time. Each consumer has his or her own family budget
which he or she strives hard to match the expenditure to the disposable
income for a socially acceptable decent living.

If the prices go on changing abruptly, those individual budgets are likely to

be distorted to such an extent that the consumers have to think of substitutes
for the products they are enjoying at present.

The budget tally may involve even the shift in the brand preference.
Consumers behave a sigh of relief because; the advertised products publish

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the retail prices that are likely to be in force at least for three to six months
and in some cases over a year.

III. Sales-Force and Advertising:

Sales of the selling house are the result of the efforts put in by both direct and
indirect approached. Personal selling is the direct method of selling, while
advertising is indirect. Both are important in the scheme of successful
marketing. Both are to be dovetailed for the best results.

The sales-force stands benefitted as under:

1. It creates colourful background:
A good salesman is nothing less than an actor who by his skill in selling wins
the hearts of consumers and sells the company products and services. All
such sales acumen has value and the glamour only when he has a matching
back-drop.

He may be agile, tactful, versatile salesman but the extent of his success is
resting heavily on the colourful back-ground created by the advertising.
Salesmanship without advertising is like a song without music or a whisky
without water. Advertising creates stage for him for his acting to stage effects
to magnify his performance.

2. It reduces his burden of job:

In case salesman alone is called upon to accept the challenge of selling, it
goes much difficult. In absence of advertising, he is forced to play a double
role the role of advertising and that of salesmanship both rolled into one.

Advertising provokes public interest, wins the confidence, and promotes

conviction. With such ready background, salesman can capitalise easily to
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sell well. As advertising sells between the calls, the work of salesman is
rendered easier and cosier.

3. It instills self-confidence:
The victory of a selling house is conditioned by the nature or quality of sales-
force rather than its quantity or number. A sales-force that is self-confident
and drive-packed is an asset than the army needing a big push without self-
start.

Advertising, by educating sales-force, acts a creative force as it instills self-

confidence, initiative and drive in them. Advertising gears the salesmen to the
top by making them self- confident and self-starting.

IV. Consumers and Advertising:

The final aim of all marketing efforts is to satisfy the needs of consumers by
transmitting the benefits of productive efficiency to the final users.

Advertising is an essential concomitant of modern marketing mechanism

that helps consumers in three ways:
1. It is a driving-force in decision-making:
The present-day complex world of industry has been able to provide with the
largest possible varieties of products to such an extent that the consumers are
at loss to decide. Further, each producer claims that his own products are the
best.

In such situation, it is advertising that comes to the rescue of a consumer to

select the best by providing him with comparative account of each in terms of
features, prices, utility, quality, durability, convenience and the like, the
consumer finds it easy to decide with such ready information.
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2. It ensures better quality products at reasonable prices:
Advertising stimulates the sales of a good product and accelerates the
destruction of bad product or products by imprinting the image of the product
on the minds of the consumers and earn a long standing reputation for the
manufacturing house.

It is the work of branding to build the image because; every brand stands for
quality, value, guarantee, price and service. This means that a rupee paid has
definite value received. Maintenance of quality and price of a product is
important not only as an objective but as a bench-mark for quality
improvement and price reduction.

3. It saves good deal of time:

The modern gracious living has made the members of the family to put forth
their best to make both the ends to meet. In the past, the things were cheaper
and the requirements were limited.

Hence, it was enough for a single member to earn the bread for the entire
family. However, today’s crazes for too many things and the mounting
inflation have made more members of the family to contribute to the family
income.

Each one has joined the rat race of earning more where he is racing against
the limited time. Today, the people are so busy that they pant for the arrival
of Sunday to have badly needed rest.

For such people, advertising is a great time- saver. Advertising saves time in
the sense that it sells the goods and services well in advance. That is, through

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the ads, people know about products and services they are to only contact the
selling outlets to get them.

V. Society and Advertising:

Advertising is both a business and social force and institution. As a business
and social process, it affects every-one in the society.

The society stands to benefit as under:

1. It uplifts the living standards:
Advertising nourishes the consumer power and creates wants for better
standard of living. Standard of living depends on the national income and its
distribution on one hand and the consumption pattern on the other hand with
relevance to disposable income.

Advertising gives kick to the consumption pattern making them to buy more
and more; this results in more, better and cheaper production; increased
production means more employment and more earnings and, therefore, more
spending. Thus, more, better and cheaper production will be in the easy reach
of people with low income packets even enabling them to enjoy higher
standard of living.

2. It generates gainful employment opportunities:

Advertising is capable of generating gainful employment opportunities
directly and indirectly for those who have talent and courage. Direct
employment opportunities are wide open in the varied branches of the every
growing field of advertising.

It is highly specialised and challenging area requiring the services of talented

people like artists, painters, photographers, message writers, singers,
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campers, musicians, carpenters, press men, actors and actresses, technicians,
agents and executives too.

It is these persons who handle the meticulous and delicate tasks. Indirectly, it
has given employment by supporting all those industries that supply input to
these advertising activities such as paper paints, colours and dyes, electric,
electronic, steel and other metal industries. This employment generation is of
special importance to the developing countries like India.

3. It provides new horizons of knowledge:

Advertising is a great educator. It is a form of education. Every advertiser has
something to share with the society. Thus, employer speaks of job vacancies
and an idle candidate solicits job; parents hunt brides and bride-grooms; some
announces the arrival of a baby while others the departure of old; producers
speak of their products, service or the idea that they propose to sell.

Each ad is a piece of information and has a theme behind. To convey the

theme, the advertising copy tells a story, gives a statistical profile, narrates a
history, gives enchanting illustrations that we have never heard and seen.
Thus, it is educator and entertainer.

4. It up-holds the culture of a nation:

Culture is man-made environment in which he lives along with others. It
stands for the values of life and living. These values are subject to change and
are guided by the dynamics of social, political, economic and ethical
dimensions.

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 Chapter III – Data Analysis

MEDIA MIX:

There is no one single advertising medium that is suitable for all countries and

products. The media mix has to vary from one target market to another. One study focused

on the changing media consumption of four groups of people. Hong Kong residents, long-

time Hong Kong immigrants to Canada, new Hong Kong immigrants to Canada, and English-

speaking Caucasian Canadians. While the immigrant groups did not increase their total media

consumption, their consumption across different media refl;ected both ethnic affirmation and

assimilation processes. In other words, immigrants acculturation process was influenced by

their original media consumption behaviour and language ability.

The basic principles of media selection apply in all markets. In general, an advertising

medium should be selective and cost-effective in reaching a large number of the intended

audience. It should deliver the kind of reach, frequency, and impact desired, assuming that

there are no pasrticular legal restrictions.

Tokyo Toyopet provide a good illustration of how advertising media are selected to

promote cars-in this case, Toyota casrs. Newspapers and magazines, due to their national

circulation in Japan, asre unsuitable because this division of Toyota only concentrates on the

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Tokyo market. TV time is not readily available and much too expensive. As a result, radio

advertising in the clear-cut choice.

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STANDARDIZED INTERNATIONAL ADVERTISING:

Standardized international advertising is the practice of advertising the same product

in the same way everywhere in the world. The controversy of the standardization of global

advertising centers on the appropriateness of the variation (or the lack of it) within advertising

content from country to country. The technique has generated a beated and lively debaste for

more than thirty years and has been both praised and condemned-passionately.

Doing research is difficult in this area because of the ambiguous definition of

standardization itself. Strictly speaking, a standardized advertisement is an advertisement that

is used internationally with virtually no change in its theme, copy, or illustration (other than

translation). More recently, a new breed of advocates of standardization has claimed that an

advertisement with changes in its copy or illustration (e.g. a foreign model used in an overseas

version) is still a standardized advertisement as long as the same theme is maintained. This

new and broadened definition can cloud the issue even more with the added element of

subjectivity. Because standardization is a matter of degree rather than an all-or-nothing

phenomenon, a more precise definitioon of standardized advertising, conceptually and

operationally, would go a long way toward solving the confusion created by contradictory

claims.

Dewar's advertising is a good example of how difficult it is to state with certainty

whether a certain advertisement is a standardized advertisement or not. After twenty lored to

markets around the world. The format is the same in every country, it provides biographical

information, hobbies, and philosophies to portray the successful lifestyle of an entrepreneurial

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"life-achiever" who also happens to be a txypical and famous Dewar's drinker. Previously,

Dewasr's overseas advertising used translations of American advertisements, but research

revealed that the use of local personalities would communicate a stronger message. The

localized profile advertisements used in Spain featured profiles of a Spanish author and a

twenty-nine-year-old Spanish flight instructor and former hang-gliding champion. The

Australian campaign gave Dewar's profiles of a thirty-three-year-old Melbourne

entrepreneur, a jewelry designer, and a photojournalist. In Thailand, the advertisement

featured a Bangkok architect. These campaigns were handled by the local Leo Burnett offices.

The issue of advertising standardization, without doubt, has far reaching implications.

If it is a valid strategy, international business managers should definitely take advantage of

the accompanying benefits of decision simplification, cost reduction, and efficiency. On the

other hand, if the premise of this approach is false, the indiscriminate application of

standardized advertising in the marketplace will cause more harm than good since it can result

in consumers misinterpreting the intended message. Consequently, the important function of

advertising to facilitate a consumer's search process can be seriously impaired.

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RESEARCH METHODOLOGY

Research Methodology: Research is an art of scientific investigation. The Advanced Learner’s

Dictionary of Current English has given the meaning of research as “a careful investigation or

inquiry especially through search for new facts in any branch of knowledge.” Research is

considered as an endeavor to arrive at answers to intellectual and practical problems through the

application of scientific methods for knowable universe. It is the movement from known to

unknown. It simply means a search for facts. It is an organized inquiry. Research is a scientific

and systematic search for pertinent information on a specific topic. According to Clifford Woody

research comprises “defining and redefining problems, formulating hypothesis or suggested

solutions; collecting, organizing and evaluating data; making deduction and reaching conclusions;

and at last carefully testing the conclusions to determine whether they fit the formulating

hypothesis.” Research is really a method of critical thinking. Research is, thus, an original

contribution to the existing stock of knowledge making for its advancement. It utilizes both

primary and secondary data.

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 CHAPTER IV- CONCLUSIONS AND

SUGGESTIONS

SUGGESTIONS :-

FEASIBILITY AND DESIRABILITY:

For an international advertising manager, the decision is affected by his or her

perception of whether it is "feasible" and "desirable" to implement standardization. In some

cases, it may be feasible but not desirabale to use a stqandardized advertisement; in other

cases, it may be desirable but not feasible to do so. The applicability of advertising

standardization is a function of these two conditions.

The feasibility issue has to do with whether environmental restrictions or difficulties

may prohibit the use of a standardized campaign. Three common problems are literacy (for

print advertisements), local regulations, and media and agency availability.

Because illiteracy adversely affects the comprehension of advertising copy, the text

portion of an advertisement must frequently be minimized or replaced with pictures.

Nevertheless, although pictures may appear to be an effective means of communicating with

nonliterate market segments, there are problems in pictorial perception, and certain types of

39
pictures asre likely to fail to communicate with nonliterate markets in developing countries.

Therefore, international marketers should research their markets before attemping to

communicate with them through pictures.

Many countries have laws that place restrictions on the nature, content, and style of

advertising messages. The Barboro cowboy was banned in England on the grounds that

cowboy worship among children might induce them to take up smoking. So the company had

to use noncowboys driving around Masrlboro country in a Jeep.

Gerxmany's emphasis on fasir competition results in the prohibition of slander against

competitors. As a result, the advertiser must be wary of using compasratives (e.g. better,

superior)and superlatives (e.g. best, most durable). In China, Duracell battery commercials

were taken off the air because the drumming bunny's endurance claim violated the rules that

prohibit superlative claims and comparative advertising. Likew3ise, Budweiser's "King of

Beerts" slogan was found to be unacceptable.

In must be noted that the use of a single agency to handle worldwide advertising, while

resembling the standardization approach, does not necessarily mean that the approach is

purely standardization. While Colgate-Palmolive believes that there is no need to reinvent a

winning formula, the directive of IBM's Personal System Group is "do it once, replicate, and

localize".

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CONCLUSION

Degree of feasibility varies from country to country, facilitating the implementation of

standardization in some countries while creating problems in others. Furthermore, an

environment may change, permitting either more or less opportunity for standardization in

the future. Therefore, feasibility is dependent on the situation and does not offer solid support

for either of two extreme schools of thought.

Two major criteria exist to judge the degree of desirability of a standardized

advertisement. One of these is the amount of cost savings that might be achieved. Thus,

standardization is desirable only when the derived saving in production cost of this type of

advertisement is significant.

Another criterion of desirability is consumer homogeneity, a major assumption of the

uniform approach. If consumers were indeed homogeneous across countries, the debate

would be resolved, since consumers could then be motivated in exactly the same way. Are

consumers homogenous? The proponents of each school of thought have offered real-life

examples that are subjective and highly judgemental. Consumers would be better served if

the collection of empirical data were based on research designs that eliminate the effect of

confounding factors. The results of the literature review of management responses, consumer

characteristics, and consumer responses indicate that there is no theoretical or empirical

evidence to support the standardization perspective in its present form.

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BIBLIOGRAPHY

 www.google.com

 www.yahoo.com

 www.scribd.com

 https://canadabusiness.ca/managing-your-business/marketing-and-sales/promoting-

and-advertising-your-business/measuring-the-results-of-your-advertising/

 https://books.google.co.in/books/about/Advertising_Effectiveness.html?id=eUJkQg

AACAAJ&redir_esc=y&hl=en

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