Professional Documents
Culture Documents
THESIS ON
THESIS SUBMITTED TO
SUBMITTED BY
CHANDRIMA DUTTA
ABSTRACT
1
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 endorsement
contracts show that celebrities like Amitabh Bachchan, Sharukh khan and
Sachin Tendulkar play an important role for the advertising industry. It is an
established fact that celebrity endorsement can bestow unique features or
special attributes upon a product that it may have lacked otherwise.
INTRODUCTION
2
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 its brands,
companies, personalities or even voluntary or religious organizations, all of
them use some form of advertising in order to be able to communicate with
the target audience. The salary structure in advertising is quite high and if
you have the knack for it one can reach the top. It is an ideal profession for
a creative individual who can handle work-pressure. Today, new areas are
emerging within advertising like event management, image management,
internet marketing etc. Event management wherein events are marketed,
Image management wherein a a particular profile of an individual or an
organization is projected. Internet marketing has also brought about a lot of
changes in advertising as Internet means that one is catering to a select
group of audience rather than a mass audience .Today 'Celebrity
Endorsement' has attracted immense debate on whether it really
contributes to the brand building process or whether it is just another lazy
tool to make the brand more visible in the minds of the consumers.
3
Although it has been observed that the presence of a well-known
personality helps in solving the problem of over-communication that is
becoming more prominent these days, there are few undesirable impacts of
this practice on the brand. The issue of matching the values of the celebrity
with the brand values is also very important, i.e. getting the right celebrity to
endorse the right brand. Consumers perceive the brand as having superior
quality because it has been endorsed by a credible source. This makes
endorsement as one of the indictors of quality for any brand. Corporate
credibility along with endorser credibility plays a significant role in the
attitude of the consumer towards the brand and the advertisement
respectively. On the other hand, the over popularity of the celebrity
sometimes overshadows the brand.
OBJECTIVES:
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1) A study on the impact of electronic media on brand preference.
Primary data:
-Through questionnaire.
Secondary data:
- Through internet
Research design: the primary data and secondary data will be studied and
analyzed appropriately and interpreted to extract certain facts. Whenever
necessary statistical tools and financial tools like tabulation, graphs etc will
be used to present the findings effectively
LIMITATIONS
LITERATURE REVIEW
5
Advertising, sales promotion and public relations are mass-communication
tools available to marketers. As its name suggests, mass communication
uses the same message for everyone in an audience. The mass
communication tools trade off the advantage of personal selling, the
opportunity to tailor a message to each prospect, for the advantage of
reaching many people at a lower cost per person (Etzel et al., 1997).
Today, definitions of advertising abound. We might define it as
communication process, a marketing process, an economic and social
process, a public relations process or information and persuasion process
(Arens, 1996).
Dunn et al. (1978) viewed advertising from its functional perspectives,
hence they define it as a paid, non-personal communication through
various media by business firms, non-profit organization, and individuals
who are in some way identified in the advertising message and who hope
to inform or persuade members of a particular audience. Morden (1991) is
of the opinion that advertising is used to establish a basic awareness of
the product or service in the mind of the potential customer and to build up
knowledge about it. Kotler (1988) sees advertising as one of the four major
tools companies use to direct persuasive communications to target buyers
and public noting that “it consists of non-personal forms of communication
conducted through paid media under clear sponsorship”. According to him,
the purpose of advertising is to enhance potential buyers’ responses to the
organization and its offering, emphasizing that “it seeks to do this providing
information, by channeling desire, and by supplying reasons for preferring a
particular organization’s offer.
While writing on advertising nature and scope, Etzel et al. (1997) succinctly
capture all advertising as having four features:
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(i) A verbal and or visual message
(ii) A sponsor who is identified
(iii) Delivery through one or more media
(iv) Payment by the sponsor to the media carrying the message.
Summarizing the above, they conclude that “advertising then consist of all
the activities involved in presenting to an audience a nonpersonal, sponsor-
identified, paid-for message about a product or organization”.
Those views of Etzel et al. (1997) coincide with the simple but all-
embracing definitions of Davies (1998) and Arens (1996). For instance,
while
Davies states that “advertising is any paid form of non-personal media
presentation promoting ideas/concepts, good s or services by an identified
sponsor. Arens expressing almost the same view describes advertising as
“the personal communication of information usually paid for and usually
persuasive in nature about products (goods and services) or ideas by
identified sponsors through various media”.
From the foregoing, it could be concluded that the purpose of advertising is
to cerate awareness of the advertised product 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. Consequently, many organizations
expend a huge amount of money on advertising and brand management.
A brand is a name given by a manufacturer to one (or a number) of its
products or services.
Brands are used to differentiate products from their competitors. They
facilitate recognition and where customers have built up favorable attitude
7
towards the product, may speed the individual buyers through the purchase
decision process.
Individual purchasers will filter out unfavourable or un-known brands and
the continued purchase of the branded product will reinforce the brandloyal
behaviour. Without brands, consumer couldn’t tell one product from another
and advertising then would be nearly impossible
TABLE OF CONTENTS
8
5 SCOPE OF STUDY
6 LIMITATIONS
7 LITERATURE REVIEW
8 ADVERTISING 1
i. DEFINITION
ii. ORIGIN AND DEVELOPMENT OF
ADVERTISING
iii. MEDIA ADVERTISING
9 ADVERTISING OBJECTIVES 15
10 ADVERTISING PLANNING FRAMEWORK 17
i. THE ADVERTISING PLAN
ii. THE EXTERNAL FACTORS
11 ADVERTISING INDUSTRY 20
i. ADVERTISING AGENCY
ii. ADVANTAGES AND DISADVANTAGES
iii. ADVERTISING BUDGET
12 MEDIA BRIEF 23
i. DIFFICULTIES IN SELECTION OF MEDIA
TYPES
13 BRAND 29
i. DEFINITION
ii. SIX LEVELS OF MEANING
iii. BRAND-FROM CONSUMER’S POINT OF VIEW
iv. BRAND- FROM MANUFACTURER’S POINT OF
VIEW
v. BRAND AWARENESS
vi. BRAND KNOWLEDGE
vii. BRAND RECOGNITION
viii. BRAND IMAGE
14 BRAND PREFERENCE 40
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
9
15 INFLUENCE OF ADVERTISING ON CUSTOMER’S 52
BRAND PREFERENCE
16 ADVERTISING RESEARCH 56
i. IMPORTANCE OF ADVERTISING RESEARCH
ii. MEDIA RESEARCH
17 IMPACT OF COLOUR ON CUSTOMER’S BRAND 61
PREFERENCE
18 IMPACT OF PACKAGING 63
i. FORMS OF PACKAGING
ii. SIGNIFICANCE OF A TRADE MARK
18 ANALYTICAL INTERPRETATION
i. TABLES
ii. CHARTS
19 FINDINGS
20 SUGGESTIONS
21 CONCLUSIONS
22 APPENDIX
REFERENCES
10
Advertising is a non-personal
form of promotion that is delivered through selected media outlets that,
under most circumstances, require the marketer to pay for message
placement. Advertising has long been viewed as a method of mass
promotion in that a single message can reach a large number of people.
But, this mass promotion approach presents problems since many exposed
11
also has a history of being considered a one-way form of marketing
12
Advertising is only one element of the promotion mix, but it often
considered prominent in the overall marketing mix design. Its high visibility
and pervasiveness made it as an important social and encomia topic in
Indian society. Promotion may be defined as “the co-ordination of all seller
initiated efforts to set up channels of information and persuasion to facilitate
the scale of a good or service.” Promotion is most often intended to be a
supporting component in a marketing mix. Promotion decision must be
integrated and co-ordinate with the rest of the marketing mix, particularly
product/brand decisions, so that it may effectively support an entire
marketing mix strategy. The promotion mix consists of four basic elements.
They are:-
Advertising
Personal Selling
Sales Promotion, and
Publicity
Advertising is the dissemination of information by non-personal
means through paid media where the source is the sponsoring
organization.
Personal selling is the dissemination of information by non-
personal methods, like face-to-face, contacts between
audience and employees of the sponsoring organization. The
source of information is the sponsoring organization.
Sales promotion is the dissemination of information through a
wide variety of activities other than personal selling, advertising
and publicity which stimulate consumer purchasing and dealer
effectiveness.
13
Publicity is the disseminating of information by personal or non-
personal means and is not directly paid by the organization and
the organization is not the source.
14
traders to be more concerned about attracting business. Informing
customers of the availability of supplies was highly important. Some types
of outside promotion were necessary. Signs on stores and in prominent
places around the city and notices in printed matters were sometimes used.
When customers were finally attracted to the store and satisfied with the
service at least once, they were still subjected to competitive influences;
therefore, the merchant’s signs and advertisements reminded customers of
the continuing availability of his services. Sometimes traders would talk to
present and former customers in the streets, or join social organizations in
order to have continuing contacts with present and potential customers.
As the markets grew larger and the number of customers increased, the
importance of attracting them also grew. Increasing reliance was placed on
advertising methods of informing about the availability of the products.
These advertising methods were more economical in reaching large
numbers of consumers. While these advertising methods were useful for
informing and reminding, they could not do the whole promotional job. They
were used only to reach each consumer personally. The merchant still used
personal persuasion once the customers were attracted to his store. The
invention of hand press increased the potentialities of advertising. By
Shakespeare’s times, posters had made their appearance, and assumed
the function of fostering demand for existing products. Another important
event was the emergence of the pamphlet as an advertising medium. The
early examples of these pamphlets disclose their sponsorship by
companies want to generate goodwill for their activities. The low cost of
posters and handbills encouraged a number of publishers to experiment
with other methods.
15
DEFINITION OF ADVERTISING
16
Print Media
a) Newspapers
You must have read Newspapers. In our country newspapers are published
in English, Sinhala and Tamil. These are the sources of news, opinions and
current events. In addition, Newspapers are also a very common medium
of advertising. The advertiser communicates his message through
newspaper which reaches to millions of people.
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Advantages
Newspapers 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 newspapers at a very
short notice. An even last minute change in the content is also
possible. This makes advertising quite flexible.
Newspapers are published from different regions and in different
languages. Hence, they provide greater choice to advertisers to
approach the desired market, region and readers through local or
regional language
Limitations
Newspapers 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 newspapers mainly for news and pay casual attention to
advertisement.
Illiterate persons can not read and thus, newspaper advertising does
not benefit them.
b) Periodicals
18
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 much longer life than newspapers. These are
preserved for a long period to be referred in future or read at leisure
or read again, whenever required.
Periodicals have a selected readership and so advertisers can know
about their target customers and accordingly selective
advertisements are given.
Limitations
Advertising in periodicals is costlier.
The numbers of people to whom the advertisements reach are small
in comparison to newspapers.
The advertisement materials are given much in advance; hence last
minute change is not possible. This reduces flexibility.
19
Electronic Media
Radio Advertising
All of us are aware about a radio and must have heard advertisements for
various products in it.
In radio there are short breaks during transmission of any programme
which is filled by advertisements of products and services. There are also
popular programmes sponsored by advertisers.
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.
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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
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.
21
With varieties of channels and programmes advertisers have a lot of
choice to select the channel and time to advertise.
With regional channels coming up any person even illiterates can
watch the advertisements and understood it by seeing and hearing.
Limitations
TV advertisements are usually expensive to prepare as well as to
telecast.
With almost every manufacturer trying to communicate their message
through TV advertising the impact among the viewers is also
reducing. Now-a-days people are switching on channels whenever
there is a commercial break.
Internet
It is the latest method of communication and gathering information.If you
have a computer and with an access to internet you can have information
from all over the world within a fraction of second. Through internet you can
go to the website of any manufacturer or service provider and gather
information. Sometimes when you do not have website addresses you take
help of search engines or portals. In almost all the search engines or
portals different manufactures or service providers advertise their products.
Advantages
Information from all over the world is made available at the
doorsteps.
User can see the advertisement at their own time and as per their
requirement.
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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
Posters
Vehicular displays
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It is non-personal communication, for it is not delivered by an actual
person, nor is it addressed to a specific person.
It is a commercial communication because it is used to help assure
the advertiser of a long business life with profitable sales.
Advertising can be economical, for it reaches large groups of people.
This keeps the cost per message low.
The communication is speedy, permitting an advertiser to speak to
millions of buyers in a matter of a few hours.
Advertising is identified communication. The advertiser signs his
name to his advertisement for the purpose of publicizing his identity.
Advertising Objectives
25
The basic objectives of an advertising programme may be listed as
below:
To stimulate sales amongst present, former and future consumers. It
involves a decision regarding the media, e.g., TV rather than print ;
To communicate with consumers. This involves decision regarding
copy;
To retain the loyalty of present and former consumers. Advertising
may be used to reassure buyers that they have made the best
purchase, thus building loyalty to the brand name or the firm.
To increase support. Advertising impliedly bolsters the morale of the
sales force and of distributors, wholesalers, and retailers, ; it thus
contributes to enthusiasts and confidence attitude in the
organization. :
To project an image. Advertising is used to promote an overall image
of respect and trust for an organization. This message is aimed not
only at consumers, but also at the government, shareholders, and the
general public.
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ADVERTISING PLANNING FRAMEWORK
Plans are nothing, planning is everything.
- Dwight D. Eisenhower
27
The Advertising Plan
As pointed out earlier, advertising plan and decision making focus on three
crucial areas; objectives and target selection, message strategy and
tactics, and media strategy and tactics. Let us elaborate on these points:
1. Objectives and Target Selection
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Message strategy is concerned with decisions about how
much is to be allocated to create and test advertising copy, media strategy
concerns decisions on how many media rupees to spend on an advertising
campaign. Media tactics comprise the decisions on which specific media
(television, radio magazines, etc.) or media vehicles (Reader’s Digest, etc.)
to spend these dollars.
EXTERNAL FACTORS
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Is the use of sex or fear appeals is appropriate? Women and minority
groups are exploited in advertising by casting them in highly
stereotyped roles.
Is it more irritating than entertaining?
Is an intrusion into an already excessively polluted environment?
Advertising directed at children.
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.
The advertising agency provides for the client a minimum of:
Media information, such as the availability of time and space
Creative skills, such as “campaign planning” and “appeal planning”
and
Research capabilities, such as providing brand preference data.
30
An advertising agency is an independent organization set up to render
specialized services in advertising in particular and in marketing in general.
Advertising agencies started as space brokers for the handling of the
advertisements placed in newspapers. Over the years, the function of the
agencies has changed.
Their main job today is not to aid media but to serve advertisers.
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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
are complicated by several major difficulties as follows:
The effects of external variables such as population, or income,
changes on economics conditions and competitive behavior;
Variations in the quality of advertising;
Uncertainly as to the time-lag effect of advertising; and
The effect of the firm’s other marketing activities, such as product
improvement and stepped-up personal selling. The above
complexities make the companies resort to more than one method of
determining the size of their advertising budget. Advertising Budget
involves the allocation of a portion of the total marketing resources to
the advertising function in a firm. The size of the budget allocation
should be based on the potential contribution that advertising can
make. Advertising budgeting should be based on a careful analysis of
the opportunity for using advertising.
.
Media Brief
33
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.
Audience Measurement:
The media sell circulation or the opportunity to develop circulation. There is
a gross aspect to circulation (how many products were bought last month)
and a net aspect (how many of those purchasers are prospects for the
product saw the advertisement in the broadcast media). Measurement of
the same is not as easy as advertisers would think.
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slight a market that a medium such as the radio would not be
indicated for use.
Selectivity: Some ideas demand visual presentation and others
demand oral presentation. The radio cannot accommodate stories
requiring a physical form, and outdoor advertising cannot
accommodate long stories.
Competition: is a matter which the advertiser cannot ignore. A
company may select media types not used by its competitors, based
on distinctiveness and domination.
35
Selection of Individual Media
Selection of individual media to carry advertising requires the consideration
of the points like circulation; the quality and quantity of a medium’s
circulation, Prestige, Influence, Readership, etc.
.
Duplication
Frequency
36
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:-
Determines the size of the advertising fund,
Decides the numbers of individual media to be used, and
Decides the number of advertisements to appear during the
advertising period.
The purpose of the advertisement may be the strongest influence in
determining its size; a large space is used to announce, a small space is
used to remain. The amount of copy, the number of products included in
one advertisement and the illustration needs of the advertisement all help
to determine size. Salesmen and dealers may also decide how large
advertisements should be.
Colour
37
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
38
rand
positioning.
41
Brands identify the source or maker of a product and allow consumers to
assign responsibility to a particular manufacturer.
From an economic perspective, brands allow consumers to lower search
costs for products both internally and externally.
Consumers offer their trust and loyalty with the implicit understanding
that the brand will behave in certain ways and provide them utility
through consistent product performance and appropriate pricing,
promotion, and distribution programs and actions. Brands can serve
as symbolic devices, allowing consumers to project their self-image.
Certain brads are associated with being used by certain types of
people and thus reflect different values or traits. Researched have
classified products and their associated attributes into three major
Final Assignment Brand Management categories: search goods,
experience goods and credence goods.
There is difficulty in assessing and interpreting product attributes and
benefits so with experience and credence goods, brands may be
particularly important signals of quality. Brands can reduce the risk in
product decisions. These risks involve functional, physical, financial, social
psychological and time risk.
42
Brands help manufacturers to organize inventory and accounting records. A
brand also offers the firm legal protection for unique features of the product.
A brand can retain intellectual property rights, giving legal title to the brand
owner. Brands can signal a certain level of quality so that satisfied buyers
can easily choose the product again. This brand loyalty provides
predictability and security of demand for the firm and creates barriers of
entry that make it difficult for other firms to enter the market.
BRAND AWARENESS
43
Whether it is a serial in a regional satellite channel or a One
Day International cricket match, there is a non-stop stream of
advertisements, which clutter the commercial break. Well-established
brands attempt to sustain brand recall while new ones try appealing to
prospective consumers to get into their `consideration’ set. There are ads
for children, housewives and youth. With advertising expenditure in the
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
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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), in
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The Brand Knowledge Pyramid
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). In
ads), you should expose one group to one version of the target
stimulus and another group to the other version of the target stimulus.
However, to make the task more realistic, both groups should also be
exposed to other 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).
47
Brand Image
48
Brand preference
their preference set. These are the four or five up market brands
the consumer will consider when making a purchase. When building
preference, the goal is to first get on the consumer’s preference sets, and
then to move up the set’s hierarchy to become the brand consumers prefer
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to deliver on their value proposition, as well as dislodge someone
else from the consumer's existing preference set.
Preference is a scale, and brands move up, down and even off that scale
with and without a vigilant brand management strategy. Pricing,
promotional deals and product availability all have tremendous impact on
the position of our brand in the consumer’s preference set. If all things are
51
Basic communications model for development of brand preference
52
compelling message (feedback). Stored experiences in our long-term
memory are connected through a series of nodes and networks.
Consumer prefer particular brand because they find it easier to interpret
what benefits brand offers feel more confident of it and get more
satisfaction from using it . Because of such consumer preference, the
brand can charge a higher price, command more loyalty, and run more
efficient marketing programmes .The brand preference therefore command
a higher asset value.
53
Brand Endorsement by Celebrities
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Celebrity endorsements are impelled by virtue of the following motives: -
55
Successful Celebrity Endorsements for a Brand - An Indian
Perspective
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
56
recognition, association and emotional unity with the target group. Similarly,
when S. Kumar's used Hrithik Roshan, then the hottest advertising icon for
their launch advertising for Tamarind, they reckoned they spent 40-50 per
cent less on media due to the sheer impact of using Hrithik. Ad recall was
as high Witness the spectacular rise of Sania Mirza and Irfan Pathan in
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Higher Degree of Recall: People tend to commensurate the personalities
of the celebrity with the brand, thereby, increasing the recall value.
58
Disadvantages of a Celebrity Endorsing a Brand
The celebrity approach has a few serious risks: -
59
commoditization of celebrities, who are willing to endorse anything for big
bucks.
60
Influence of advertising on consumer’s brand preference
61
promotion mix which is one of the 4ps in the marketing mix i.e product,
63
satisfy particular needs and wants .The principal aim of consumer
behaviour analysis is to explain why consumers act in particular ways
under certain circumstances. It tries to determine the factors that influence
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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
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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.”
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MEDIA RESEARCH
Media selection is finding the most cost effective media to deliver the
desired number and type of exposures to the target audience. The media
planner has to know the capacity of the major media types to deliver reach,
frequency and impact. The major media types are T.V., newspaper, radio,
magazines or journals etc.
PRINT MEDIA
For many years advertisers have not been satisfied with circulation data as
the sole yardstick for buying advertising media. It has been clearly
demonstrated that the number of readers of a given copy of a publication
not only significantly exceeds circulation but also varies from gross
circulation figures as between various publications. An increasing amount
of research has been applied in resent years to the measurement of actual
reading audiences. Techniques for measuring reading audiences are now
sufficiently perfected so that these data are generally accepted and widely
employed. Newspapers and magazines are the most common types of
print media. As the media circulation increases so, does the attractiveness
of a newspaper or magazine to an advertiser, and the medium may raise
the advertising rates. The best way to measure a publications’ is through
measuring its readership or total audience. Media buyers need to know the
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accurate circulation and readership figures to compare costs among
various publications that reach similar audiences.
BROADCAST MEDIA
The most extensive research in connection with broadcasting media is the
measurement of listening and viewing audiences. The following methods
are commonly employed.
The recall method:
The recall method obtains its data through listener surveys in which the
respondent is asked to report the television and radio programs he heard
during a specified period of time previous to the interview.
The diary method:
In the coincidental diary method a form listing broadcasting stations and
time periods is left with the respondent, who makes notations of programs
received. The diaries are usually designed so that they can be attached to
the radio or television set for convenient recording.
The chief advantage of this method is that the respondent records his
listening or viewing at the time, thus eliminating the burden on memory. It
also has the advantage of making it possible to obtain classification data
regarding the listener or viewer.
The primary weakness of this method is inaccuracies of reporting because
there is a constant tendency to neglect to make entries at the time the set
is actually in use.
The coincidental method:
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In this method investigators call telephone subscribers according to a
predetermined sampling pattern. It provides more accurate data than other
survey methods, since it eliminates the necessity for memory or entries in a
diary. Also it is based on a report of actual viewing or listening rather than
mechanical evidence that the radio set was operating.
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photographs are commonly used in ads because they are thought to have
superior attention getting properties. For this reason, it is extremely
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and experiences. For example, the color “Blue” is soothing and associated
with wealth, trust, and security, whereas “Red”
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Meet legal requirements for product and Packaging
Point of difference in service and supply of Product.
For a perfect product, perfect colour.
Forms of packaging
Significance of a trademark
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1. Age group of respondents.
20-25 50
26-30 42
31-35 22
36-40 29
41-45 7
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Figure 1. Survey Report
Inference:
The survey conducted shows that most of the respondents were of the age group of 20-
25 years and the least respondents were of 41-45 years.
MALE 86
FEMALE 64
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Figure 2.Survey Report
Inference :
This chart shows that mostly the male are more interested in branded products than the
female category.
LEVIS 40
PEPE JEANS 13
WEST SIDE 12
SAMSUNG 10
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ADIDAS 28
NIKE 16
SONY 16
REEBOK 15
Inference:
In this chart it is clear that the most liked brand is Levis followed by Adidas which are
both apparel companies.
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PREFERENCE CRITERIA NO. OF RESPONDENTS
QUALITY 62
COMFORTABLE 42
STYLISH 23
RELIABLE 16
FEATURES 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 and comfortable which has a
percentage of 28.The brands are even liked because they are stylish,reliable and
because of its features.
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5. From where you get the information about these brands?
NEWSPAPERS 32
TELEVISION 66
RADIO 6
INTERNET 10
HOARDINGS 11
WORD OF MOUTH 25
Inference:
The respondents said that they got the information of vthese brands from different
media like television,newspaper,radio,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 atelevision creates more impact on customers .
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6. If you are searching for information of a brand which media will you look for?
PRINT MEDIA 25
ELECTRONIC MEDIA 79
OTHER MEDIA 17
WORD OF MOUTH 29
Inference
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 newspapers,magazines 19% said
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that they go with wordof mouth from friends,family,relatives,etc. and 11% choose other
media.
YES 58
NO 24
SOMETIMES 56
RARELY 12
Figure7.Survey Report
Inference
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The respondents were asked whether they believe on advertisements.39% said that
they rely on advertisements and utilize the information given,16% said that they do not
believe,37% said that they sometmes believe if they find the information rational,and 8%
rarely believe.
YES 21
NO 52
SOMETIMES 59
RARELY 18
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Figure 8.Survey Report
Inference
In this chart the respondents were asked if they change they thinking about a product
after seeing yhe advertisement.14% respondents said that they change their perception
of a product after seeing the advertisement,35% said that they do not change,39% said
that sometimes they change and 12% said that it is rarely that they change their
perception after seeing an advertisement.
ALWAYS NECESSARY 36
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SOMETIMES NECESSARY 88
NOT NECESSARY 26
Inference
In the survey the respondents were asked how much they feel advertisement is
necessary in their decision making.24% said that it is always necessary in decision
making,59% said that advertisement sometimes plays a necessary part when they take
a decision,and 17% said that advertisemnet is not necessary in decision making .
10. What are the factors which influence your decision making process?
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DECISION MAKING PROCESS
PRODUCT FEATURES 55
ADVERTISEMENT 29
COST 37
OPINION OF FRIENDS 20
OTHERS 9
Inference
This chart shows what are the factors considering which a respondent will be influenced
to decide to buy a product.37% said that the features of the product will influence
them,19% said that advertisemnet will influence them to decide as they will get lots of
information about the product,25% said that the cost of the product makes tham decide
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to buy a product,13% said that they will go by the opinion of friends and rest 6% said
that there may be othrer factors which will influence them to decide
PRICE 59
BENEFITS 32
BRAND ENDORSERS 20
OFFERS 18
QUALITY 21
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Figure 11.Survey Report
Inference
In the survey the respondents were asked what are the apspect that they see in an
ad..40% said that thay see the price,21% said that they see that benefits shown in tha
ad.,13% see the brand endorsers,12% see the offers given and 14% see the quality tpof
the product shown in the ad..This shows that in larger amount customers see the price
aspect when they see an ad ,
12. Do you purchase a product just because your favourite celebrity is endorsing it?
YES 72
NO 50
SOMETIMES 28
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Figure12. Survey Report
Inference
In this chart the question asked to the respondents was if they purchase a product only
because their favourite celebrity is endorsing a particular product. For this 48% said that
they purchase only because their celebruty is endirsing it,33% said that they do not
purchase because of the celebrity and 19 % said that sometimes they purchase it since
their favourite celebrity is endorsing it.This is clear that celebrity endirsement plays a
great part in the brand preference.
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DO YOU PURCHASE BY NO. OF RESPONDENTS
GETTING ATTRACTED TO
THE PRODUCT
YES 45
NO 29
SOMETIMES 60
RARELY 16
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 attraced they buy the product and 11% said that rarely the get
attracted and purchase a product.
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14. What are the factors in an advertisement which will make you change your brand
loyalty?
BENEFITS 35
NEW FEATURES 28
DISCOUNT 19
WORD OF MOUTH 18
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Figure 14.Survey Report
Inference
The respondents were asked what are the reasons which will make them change their
brand loyalty.23% said that the benefits of another product may make them change their
brand loyalty,33% said that the value for money may make them change,19% said that
new features in another prduct may compel them,13% said discounts offered by another
brands may make tham swirtchers,and last word of mouth from friends and family may
make them like another brand.Through this survey it is clear that in comparison to other
factors valur foe money plays a great role for customers to change the brand
preference.
15. If you hear the name of a brand through advertisement what do you recall?
MUSIC 56
TAG LINE 27
ENDORSERS 21
PRODUCT 26
BENEFITS 20
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Figure 15.Survey Report
Inference
The respondents were asked what they can recall after they see or hear an ad..38% of
the respondents said that they can recall the music which was played in the ad.,18%
can remember the tag line,14% they remember the brand endorser, 17% can recall only
the product and 13 % they recall the benefits that were shown in the ad..This makes it
clearly evident that music in an ad. makes it possible for consumers to recall the
particular brand.
BENEFITS 35
TAG LINE 45
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BRAND NAME 26
COMPANY NAME 18
ENDORSERS 12
PRODUCT FEATURES 14
Inference
Through this chart it is shown what are the things that should be given more priorty in
an ad..23% of the respondents said that the benefits of a product should be
highlighted,30% said that the tag line should be highlighted so that the customers can
recall and their brand preference will increase,17% said that tha brand name should be
highlighted,12% said that company name should be given more priority,8% said that
endorsers should be brought in the lime light,and rest 10% said that the features of the
product should be highlighted.From this survey we can say that ,tag line of a brand
should be brought in lime light so that brand preference of that particular prouct will
increase.
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17. If a product is misinterpreted by your friend would you believe him or go on with your
own view?
BELIEVE MY FRIEND 39
GO WITH MY VIEW 63
REFER ADVERISEMENT 29
REFER INTERNET 19
Inference
The respondents were asked if their friend mis interprets a product what they will
do.26% said that they will believe their friend and go with the product,42% said that they
will analyse and go with their own view,19% said that they will refert advertisement and
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rest 13% will refer internet to get the correct information.This shows that customers are
very conscious about a product and they will evaluate themselves and buy a product .
18. Do you prefer going to any store just by seeing the offers on hoardings and banners?
YES 75
NO 22
SOMETIMES 38
RARELY 15
Inference
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The respondents were asked if the go to stores by seeing the hoardings and
banners.50% of the respondents said that the see the banners and hoardings and go to
shop,15% said that they do not shop by seeing the banners and hoardings,255 said
sometimes they do,and 105 said that it rarely happens that they see and thaen go to
shop.Through this we come to know that banners and hoardings showing that product
with its other facets creates brand awareness and also induces brand preference .
19. After you experience any product do you convey the message to others
(positive\negative)?
YES 79
NO 26
SOMETIMES 33
RARELY 12
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Inference
The respondents were asked if they convey word of mouth after they experience a
product whether it be positive or negative.53% of the respondents said that they convey
word of mouth to their friends and family after they use a product,17% said that they do
not do so,22% said that sometimes they do it if the product has some problem and 8%
said that they rarely s[read word of mouth to any one.
YES 68
NO 27
GET IRRITATED 36
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Figure 20. Survey Report
Inference
In this question the respondents were asked to give a feed back about repeated
ads. which are shown in different media especially electronic media.45% of the
respondents said that they do not have any problem ,18% said that they do not
like that every moment ads are shown,24% said that they get irritated and rest
13% said that they change the channel when repeated ads of the same product
comes.
VERY IMPORTANT 79
SOMETIMES IMPORTANT 38
98
NOT IMPORTANT 30
Inference
In this survey the respondents were asked how much they feel is music important in an
ad..54% of the respondents said that music plays an important role in
advertisemnets,26% said that sometimes its important and 20% said that music is not
important in ads..This survey proves that music in an ad boosts the quality of an ad.
and also it creates a positive impact on brand prference.
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22. Do you refer Google search before making purchasing decision?
YES 82
NO 25
ALWAYS 27
RARELY 16
Inference
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In the survey the respondents were asked do they refer google search before
purchasing a product.54% said that they refer google search to find about the product
before purchasing it.This also brings in light that now a days people are technologically
aware and do search before they buy.17% said that they do not go for google
search,18% said that always what ever be the product they refer internet before they
purchase, and 11% of the respondents rarely do that if the product is of very
importance.
23. What are the aspects you look for in internet for information on your preferred
brands?
PRODUCT FEATURES 75
DEALER NETWORK 29
PRICE 32
DELIVERY 14
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Figure 23.Survey Report
Inference
The respondents who refer internet werev asked what aspect thay look for in ainternet
about a brand or a product.50% of the respondents said that the refer internet to know
about the product features,19% said they look for dealer network
24. Does the internet advertisement in the website create brand awareness?
YES 78
NO 22
SOMETIMES 35
RARELY 15
102
Figure 24.Survey Report
Inference
In this survey 52% of the respondents said that internet creates brand awareness,15%
said that it does not create brand awareness,23% said that it sometimes creates brand
awareness,10% said that rarely it does so.This shows that internet really creates brand
awareness
YES 82
NO 41
103
SOMETIMES 27
Inference
55% said that internet is a very reliable source.this means that customer’s believe in
internet advertisemnet which will help in creating good brand preference .
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SHOPPING
YES 77
NO 35
SOMETIMES 24
RARELY 14
Inference
52% have said that they have done on line shopping.This means that customer’s rely on
internet information about the products and also they do on line shopping .
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27. Did you visit company’s website before purchasing?
YES 61
NO 89
Inference
The respondents were asked if they visit company’s website before they purchase.41%
said that they visit company’s website before they purchase and 59% said that they do
not visit. This shows that though they do not visit company’s website they visit other
search engines to know about the product.
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FINDINGS
79 respondents said that they would prefer electronic media than any
other media to get information about a brand.
59 respondents out of 150 said that they look for the price of a product in
an advertisement.
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50 respondents said that value for money shown in an ad makes them
change their brand loyalty.
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CONCLUSION
According to this study, it has found out that people notice advertisements
and the awareness level of the brand is good only because of
advertisements.
Based on this study I would say television advertisements have more reach
to the people.Customers prefer television in comparison to other media
since they get both the audio and visual effects .This also proves that
customer’s rely on advertisements shown in media
For an advertisement to be effective the price, the music and the tag line
should be highlighted. These three aspects create a great impact in brand
preference.
Hoardings and banners also create brand awareness of a product and are
important to increase brand preference.
The customer’s also spread word of mouth after they use a product.
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Suggestions
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Advertising messages should both be persuasive and reminder-oriented. .
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’.
Appendix
Name:
Contact No.:
Address:
Gender:
Age :
1. Which are your favourite
brands……………………………………………………………...................................
2. Why do you prefer these
brands……………………………………………………………………………………………..
3. From where did you get the information about these brands
o Newspapers
o Television
o Radio
o Internet
o Hoardings
o Word of Mouth
4. If you are searching for information of a brand which media will you look to
o Print media
o Electronic media
o Other media
o Word of mouth
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5. Do you rely on advertisement?
o Yes
o No
o Sometimes
o Rarely
6. Do you change your perception of a product by just seeing the advertisement?
o Yes
o No
o Sometimes
o Rarely
7. Do you think advertisement is necessary for your decision making?
o Always necessary
o Sometimes necessary
o Not necessary
8. What are the factors which influence your decision making process?
o Product features
o Advertisement
o Cost
o Opinion of friends
o Others
9. What do you look for in an advertisement?
o Price of the product
o Benefits of the product
o Brand endorsers
o Offers
o Quality of the product
10. Do you purchase a product just because your favorite celebrity is endorsing it?
o Yes
o No
o Sometimes
11. Do you purchase a product just by getting attracted to the advertisement?
o Yes
o No
o Sometimes
o Rarely
12. What are the factors in an advertisement which will make you change your brand loyalty?
o Benefits
o Value for money
o New features
o Discount
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o Word of mouth
13. If you hear the name of a brand through advertisement what do you recall?
o The music
o The tag line
o The endorsers
o The product
o The benefits
14. What are the things according to you should be highlighted in an advertisement?
o The benefits
o The tag line
o The brand name
o The company name
o The endorsers
o The product features
15. If a product is misinterpreted by your friend would you believe him or go on with your view?
o Believe my friend
o Go with my view
o Refer advertisement
o Refer internet
16. Do you prefer going to any store just by seeing the offers on hoardings and banners?
o Yes
o No
o Sometimes
o Rarely
17. After you experience any product do you convey the message to others (positive/negative opinion)?
o Yes
o No
o Sometimes
o Rarely
18. What is your response to repeated advertisement in Tv/radio?
o Yes
o No
o Get irritated
o Change the channel
19. How important is music in an advertisement?
o Very important
o Sometimes important
o Not important
20. Do you refer Google search before making purchasing decision?
o Yes
o No
o Always
o Rarely
21. What are the aspects you look for in internet for information on your preferred brands?
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o Product features
o Dealer network
o Price
o Delivery
22. Does the Internet Advertisement in the website create brand awareness?
o Yes
o No
o Sometimes
o Rarely
23. Do you think internet is the most reliable source of information?
o Yes
o No
o Sometimes
24. Have you ever done online shopping?
o Yes
o No
o Sometimes
o Rarely
25. Did you visit company’s website before purchasing?
o Yes
o No
References
1. www.geocities.com/prof_rajagopal/labr1
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2. www.scribd.com/doc/../impact of celebrity endorsement
on overall brands
3. www.krepublishers.com/...../
4. www.indiamba.com/Faculty_Column/FC706/fc706
5. www.csulb.edu/colleges/cba/honors
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GLOSSARY
Advertising
Promotion of a product, service, or message by an identified sponsor using paid-for
media.
Banner Adverts
Adverts on web pages used to build brand awareness or drive traffic to the advertisers
own website.
Brand
The set of physical attributes of a product or service, together with the beliefs and
expectations surrounding it - a unique combination which the name or logo of the
product or service should evoke in the mind of the audience.
Comparative Advertising
Advertising which compares a company's product with that of competing brands. Must
be used with caution to avoid accusations of misrepresentation from competitors.
Competitions
Sales promotions that allow the consumer the possibility of winning a prize.
Competitive Advantage
The product, proposition or benefit that puts a company ahead of its competitors.
Competitors
Companies that sell products or services in the same market place as one another
Consumer
Individual who buys and uses a product or service
Customer
A person or company who purchases goods or services (not necessarily the end ?
consumer?)
.Customer Loyalty
Feelings or attitudes that incline a customer either to return to a company, shop or outlet
to purchase there again, or else to re-purchase a particular product, service or brand.
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Customer Satisfaction
The provision of goods or services which fulfil the customer?s expectations in terms of
quality and service,
in relation to price paid
Endorsement
Affirmation, usually from a celebrity, that a product is good
Marketing
Marketing is the management process responsible for identifying, anticipating and
satisfying customer requirements profitably. CIM's official definition.
Marketing Mix
The combination of marketing inputs that affect customer motivation and behaviour.
These inputs traditionally encompass four controllable variables 'the 4 Ps': product,
price, promotion and place. The list has subsequently been extended to 7 Ps, the
additions being people, process and 'physical evidence'.
Objectives
A company's defined and measurable aims for a given period.
Packaging
Material used to protect goods; also an opportunity to present the brand and logo.
Positioning
The creation of an image for a product or service in the minds of customers, both
specifically to that item and in relation to competitive offerings.
Promotional Mix
The components of an individual promotional campaign, which are likely to include
advertising, personal selling, public relations, direct marketing, packaging, and sales
promotion.
Quantitative Research
Market research that concentrates on statistics and other numerical data, gathered
through opinion polls, customer satisfaction surveys and so on. Compare 'qualitative
research'
.
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Sampling
The use of a statistically representative subset as a proxy for an entire population, for
example in order to facilitate quantitative market research.
Sponsorship
Specialised form of sales promotion where a company will help fund an event or support
a business venture in return for publicity
Stakeholder
Word of Mouth
The spreading of information through human interaction alone.
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