Research Proposal On

A STUDY ON ROLE OF ADVERTISEMENTS ON PURCHASE OF MOBILE HANDSETS AMONG YOUTH

Submitted to LOVELY PROFESSIONAL UNIVERSITY in partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION (HONS)

Submitted by:

Supervised by:

Gargi Malhotra Regd. No. 11008651

Ms. Niharika Bajpai Lecturer in Management

DEPARTMENT OF MANAGEMENT LOVELY FACULTY OF BUSINESS & APPLIED ARTS LOVELY PROFESSIONAL UNIVERSITY 2011-12

TABLE OF CONTENT CHAPTER NAME OF CHAPTER 1 1.1 1.2 2 3 3.1 3.2 3.3 4 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 INTRODUCTION Introduction to advertisement Introduction to Mobile companies LITRATURE REVIEW SCOPE OF STUDY Scope of study Need of study Expected Study RESEARCH OBJECTIVE RESEARCH METHODLOGY Research type Research design Sources of data Population Sampling size Methods of Data collection Sample technique Statistical tool REFERENCES PAGE NO. 1-4 1-3 3-4 5-9 10-11 10 11 11 12 13-14 13 13 13 13 13 13 14 14 15-18

CHAPTER-1 A STUDY OF IMPACT OF ADVERTISING ON CUSTOMERS WITH REGARDS TO MOBILE HAND SETS

1.1 INTRODUCTION TO ADVERTISING: Advertising is the engine of modern economies, and one of the crucial factors influencing the behavior and lifestyles of modern societies. Advertisements portray men, women, and children irrespective of the product advertised. Since the Indian youth plays a dominant role in purchase activities, nowadays, many marketers are targeting youth and are increasingly portraying them in their advertisements. With the passage of time the role of Indian youth has witnessed a transformation to prime purchaser. Indian consumers have become more demanding. With the developing time in the existing scenario, an attempt has been made to understand how youth respond to advertisements and what kind of impact these advertisements have on them. This project focuses on the impact of advertisements on youth with special preference to mobile handsets. Advertising is any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertising has become an integral part of our life. It is a powerful tool in molding ones attitudes and behavior towards products, ideas and services. It is a form of mass communication. As an effective means of communication, advertising promotes the sale of goods, services and ideas through information and persuasion. Advertising, as a basic tool of marketing for stimulating demand and for influencing the level and character of the demand, has economic, social and psychological functions. Advertising is the engine of modern economies and one of the crucial factors influencing the behavior and lifestyle of modern societies. Advertisements thus provide hints to the satisfaction of needs by gaining solutions to the search for their fulfillment or sometimes stimulating a more active one. Advertising must find a way to stimulate the target groups curiosity and this happens mainly through its presentation as also through its contents.

Today we are exposed to a variety of advertisements. With increase of number of media alternatives for the advertisers, they are resorting to the use of every alternative available to advertise their products. Competition has increased enormously and very marketer is concentrating on the same set of consumers. Consumers have wide variety of options for purchase. Advertisements create an impact on consumers. The impact is seen in the case of many products. Sometimes an advertisement motivates consumers to make a purchase. Some advertisements associate confident and positive images with the usage of such products in order to make a positive impact on the minds of the consumers. Advertisements of products like personal care, soft drinks and beverages suggest that with the consumption/ usage of the product, people become confident, feel elevated and can achieve anything. This has a positive impact on the consumers who are inclined to purchase such products. Before designing an advertisement the objectives of the advertisement must be developed. The advertisement objectives must flow from prior decision on target market, market positioning and marketing mix. Advertisement can be used to build up a long term image for a product or trigger quick sales. Advertising can efficiently reach geographically dispersed buyers. Certain forms of advertising (TV advertising) can require large budget while other forms (Newspaper advertising) can be done on a small budget. Advertising might have an effect on sales simply through presence. Consumers might believe that a heavily advertised brand must offer good value or they might just believe the message send by the company through its advertisement. An advertiser wants to measure the effectiveness of advertising to evaluate the worth of spending large amount of money on advertising. It is important to determine how well the advertising campaign is working and to measure its performance against some predetermined advertising objectives. The performance measurement of advertising campaign is known as measuring advertisement effectiveness. Advertising objectives can be sales objectives or communication objectives. In the evaluation process it is established that up to what extent advertising campaign has been able to achieve its sales or communication objectives. If the advertising fails to achieve the desired results the money spent on advertising will go waste. Communication effect research seeks to determine

whether an ad is communicating effectively. It is also called copy testing. It can be done before an ad is put into media and after it is printed or broadcast. With the increasing importance of mobile handsets in the existing scenario, an attempt has been made to understand as to how young generations is

responding to TV advertisements and what kind of effect advertisements are creating on them. The project that I have taken is all about the effectiveness of advertisement. The test will reveal whether the message which was intended to send to the customers has reached them or i.e. whether they have understood the message correctly or not. For this project I have been given THE MOBILE HANDSETS. A study will be conducted for which the customer of using mobile phones especially youth will be approached to collect information on how effective the advertisement was and whether they have purchased the product after the seeing the advertisement or not. The information gathered from the survey will help us analysis consumers interest level for the advertisement, their attitude and the effectiveness of the advertisement.

1.2 OVERVEIW OF MOBILE HANDSETS INDUSTRY IN INDIA: The mobile phones industry has been considered as the most growing companies not only in India, but in the whole world. And India is considered the attractive work place for the mobile industries. It was thought in the beginning that the mobile phones in India will serve the growing communication needs in the country. Considering the growth of the industry in India, it can be said that the estimated results have been achieved beyond expectations. Apart from mobile phone manufacturers the industry has also seen the growth of mobile phone carriers, mobile phone application developers, mobile phone content providers, and so on. There are two big reasons for the rapid growth of mobile phones industry in India. First, there is a huge market for entry-level mobile phones. And second, the high-end mobile phone buyers too exist in the Indian mobile phone market. These reasons encourage the top mobile phone manufacturers to experiment their products from different categories in theIndianmarket.

While Samsung, Nokia, Sony and LG are some of the topmost companies that have successfully launched a number of mobile phone models in the country, the companies like Blackberry too are joining the league fast. Besides, there has been a recent rise in the local mobile manufacturers as well. Micromax, Karbonn and Spice are some of the local manufacturers that have started grabbing a significant share in the mobile phones industry in India. To match up the growing demands of mobile phones the mobile phone carrier services like bharti airtet, Tata tele services and reliance communications have improved their services as well. Uninor and Videocon are latest entrants in this field. Some of factors responsible for the growth the growth of industry include growing income of middle class families, popularity of mobile based services like online ticket booking and low rate mobile connection plans. The mobile handset market grew 4.2 per cent by revenue during FY 2009-10 compared to 7.9 per cent in 2008-09. The low-cost handsets may fall short on applications, functionality, user interface and experience, and, often, quality of construction, solidity and robustness.

CHAPTER-2 LITRATURE REVIEW Bovee, (1992) Advertising is non personal communication of information usually persuasive nature about producers, services, or ideas identified sponsors through various media. Draganska, Klapper Michaela, (2011), the authors in this article discussed about heterogeneity of product and availability of various substitutes high in market. A customer may go for constant brand and price coefficient things. Thus proper branding and advertisement is necessary for a brand to increase the sales and distinguish themselves from other products. Organization or company has to advertise their product in a manner to distinguish themselves from their substitute. Advertisements should be such that it creates customer attention and make increase in customer efficiency in the market for particular brand. Jin, (2003) In this article the Jin refers to the pre-exposure to publicity about advertisement affects consumer information processing and memory of subsequent advertisements using super bowl context, tested a dual processing model :(a) a repetition process and (b) a motivation process. Banner buzz, (2009) In this article the news is related to the mode advertisement through custom banners. Various banners can be depicted like of trade hold banners, outdoor banner advertisements, birthday events, school/church banner advertisements, sports event announcements. Through banner advertisements public can be attracted towards particular product .conveying the advertisements through the social networking sites also plays an important part in advertising a product now a days. Shu-chan-chu, (2010) As the author Shu-chan-chu emphasized on one of the major sources of advertisement now-a-days is social networking sites. The main advertisement sites now-a-days are orkut, twitter, facebook etc.Advtisers can send the viral advertisements through the mean of these applications. Thus engagement in social sites helps to know the psychological needs of customers. Parkin, (2009) Author thought that promotional items create a positive of organization regarding the product in the market. Promotional items always attract the customers mainly in trade shows, seminars, conferences,

conventions or exhibitions. These related events are the places where networks and contacts can be made with the prospective customers. Gifting should be something unique, valuable, useful and interesting to remember the message. Kirby, (2008) In this author Kirby, views/tells about the internet which is one of the major sources of advertising now a days and advertising through the advertisements and it should be according to the demographic area. The main focus is to be the area which is having more demand and populated area. As through internet also the organizations can cover the metro areas for the products. Dotson, (2001) Authors Dotson relates to the Sales promotions are well-suited to accomplishing various marketing objectives, such as stimulating sale force enthusiasm, invigorating sales for a mature brand, facilitating the introduction of new products, increasing on- and off-shelf merchandising space, encouraging repeat purchases, and reinforcing advertising. Marketers use price oriented promotions such as coupons, rebates and price deals to increase sales and market share, to entice trial, and to encourage brand switching. Each type of consumer-oriented sales promotion has particular benefits and effects on consumer behavior; there is no empirical evidence on how different demographic groups respond to different sales promotions. Dr. Pithadia, (1982) As in the article author dr. Pithadia related with the advertisers main motive for the advertisement is to identify the target market and to promote the target market to increase the sales in the market. The sales depend upon the communicator and communication made by them. Personal communication channels are engaging two or more persons communicating directly with each other face to face, person to audience over the phone or email. The company may hire advocates channels, expert channels and social channels. The word of mouth sources also deliver some results. The personal channels may include media, atmosphere and events. Mirabales, (1999) In this article the author strong view point regarding print media which is also one of the important modes of advertisement to attract the customers. As for the business concerns the yellow pages are of main concern for the advertisements and some small business cannot afford these advertisement.adn print media may also includes the news paper and magazine

advertisements which can be afforded by the small level business for their sales. Grinstein, (2001) Here the author relates to the activities included in the business. While doing an advertisement or business it should be made according to the convenience of customers. Because the ego of the customer is at specific level of priority for the organization thus, either while selling the product or while representing it in front of customer the ego of the customer should be kept in mind that it should not get hurt. Fred K. Beard, (2011) Author relates the todays era of advertisements through mean of media is main source of exposing the product to the market and consumers. Thus, the person who is advertising the particular product should keep in mind the various aspects which should not hurt the moral values of the community and should keep in mind the offensive nature which can took place in relation with product and advertisement. Campbell, Pitt, (2011) Authors mainly says that now its the modern era and everyone is using internet to get the information and is more connected towards the sites like You Tube. The advertisements now a days should be according to the mind of consumers, so instead of putting advertisements on different sites one should make a formal advertisement inform of videos and should upload on various official sites like YouTube etc. Niazi, Ghani, vol.2,part 7,(2010) As in the article the author emphasis on emotions of customers. Emotions have a significant position throughout the span of our lives for the reason that they enhance almost all of our challenging moments with either a lovely or horrible features. Emotion is a key element that holds a strange position in advertising. It self determines its role in advertisements. Advertising should develop some emotions in order to be valuable and eye-catching. Advertising can be a constructive basis for enhancement of these emotional responses. Emotional substance in advertising is exposed as being not just a support to increase consideration and sustain message communication, but an influential communication method in its own right. Micu, Plummber, (2010) In this article the authors have a view point related with the judging of different customers. As the emotions of person towards the particular advertisements should be judged .The study is compared and

contrasted on the basis of three factors-psychological, self-report and symbolic through which the advertiser can conclude some results for his work and modify them accordingly. Dhar, Varshney, (2011) In this article the author says that advertising is considered to be the one of the most of the important thing for the product sales and demand. The advertisement must be mobile and should provide the facilities according to the area and demand of the consumers. For the particular advertisement advertiser has to develop the things according to the area under the sustained models and challenges. Location based services should be the main motive of providing advertisements. Kalro, Bharadhwaj, (2010) Authors in this mainly concerned with comparative advertisements are the major source for comparing the different product in todays world. In developed countries the two companies are directly compared so that the public is aware of products and brands available in the market. But in developing countries like India the brands are not directly compared, but the products under different brands are indirectly compared with each other in advertisements to increase the sales. Mitchell, (1986) Author Mitchell mainly concerned with the focus of an advertiser is the verbal and visual effects of advertisements on the viewers. According to the need of time with preference to product and customer effects should be provided in the advertisement. The main advertisement is to attract customers thus it should be modified according to the type of product. Wolin, (2003) Author Wolin is related with the advertising some of product gender plays an important effect on the sales of that product. Some of the products are totally gender biased, like of cosmetics products are biased in their advertisements some of these products need female role and some male role. Thus advertisement also affects the dominance of role to be enacted in particular advertisement. In todays era the competition is increasing in a great pace, thus different brands have to use the different mode of advertisements to increase their sales. Yim, Yoo, (2010) As authors are related with in-store video advertisement is one of them which are in great demand. The in store video advertisement according to research has effect over the customers visiting in stores, one,

increased

recalls

of

product,

second,recognisation,third

brand

familiarity,fourth,purchase intention. Zigmond, Stipp, (2010) Author tells that in todays world the use of increased a lot and people more rely on the internet for the specific data. As in developed countries it is more in use that after seeing the advertisements they search for full detail of particular products. And through this mode they can get full information as they expected to get from a product. Patti, Drolet, (2005) in this author is relates his article to increasing age increases the persons intelligence towards particular thing. They have more idea and knowledge about the particular product. They started comparing the products through emotional intelligence. They compare each and every aspect and take out result which is more profitable as in comparison with the young person and emotionally balance the advertisements of various products. From the above all references of different authors we came to know about the advertisements and their effect on the customers. An advertiser has to present the advertisement in such a form that the customers should have an effect of particular product and should go for the product. The company should opt for the different types of advertisements so as to increase their sales and to attract more customers. It becomes easy for the company also to launch the new product in the market because this makes population easily aware about the product launch and variety of products available in market.

CHAPTER-3 NEED AND SCOPE OF STUDY 3.1SCOPE: The main focus is to study the attitude of youth, age group between 18-28 years, towards advertisements and purchase of mobile handsets and to enumerate the usage pattern, gender-wise or age-wise, if any. Under the research I have to examine the way young people to functionality of mobile phone and their access. To have detail and document their triggers for purchase and influence at time of purchase and to investigate their awareness regarding the launch of recent mobile sets in the market. 3.2 NEED OF STUDY: Advertisement is most important strategy for any company up bring its product in market. In this era mobile phones are treated as most important part of society through which a person can communicate with each other. And the craze for the mobile sets is increasing with great pace. These mobile companies can achieve their target through the mode of advertisements, though the quality product and services also matters. The companies have to provide the advertisements in different mode to increase their sales and let people be aware of their product. This is the era of brand image and corporate image. While advertising the new mobile handsets organizations have to locate the using habits and the standard of the population for the usage of particular product. The demands and usage for different mobile handsets differentiate according to the living area and income of person. The main role of advertising is to create awareness among population and creating awareness regarding the available handsets in the society. The main motive or fulcrum we can for advertisement is to create awareness among consumers regarding different mobile handsets and are going to be launched in coming days. These advertisements can create awareness among the consumers regarding the various companies in market and increase the competition for other companies in market who are producing mobile handsets.

Advertising is non personal communication of information usually persuasive nature about producers, services, or ideas identified sponsors through various media. (Bovee, 1992). In current scenario of globalization and cut throat competition it become necessary for the different companies to provide advertisements to avoid this competition and to get the stable market position in the market. As mobile handsets are the major source of communication between population in todays world and advertisements is the system through which mobile phone information can be updated. 3.3 EXPECTED CONTRIBUTION FROM STUDY: The purpose of the topic is to find out factors responsible for the craze of mobile phone in youth and impact of advertisement in generation of more knowledge and sales of mobile handsets. The main aim of the study of this topic is know how much people are aware of mobile handsets with help of advertisements.

CHAPTER -4 OBJECTIVES OF STUDY y To study the impact of advertisements in generation of sales of mobile handsets. y To study the attitude and awareness of teenagers and youth towards launch of new cellular phones.

CHAPTER-5 RESEARCH METHODLOGY 5.1 TYPE OF RESEARCH: The type of research will be descriptive research as it includes survey and fact finding enquiries. The entire primary research will be done in the area of university. As this gives us the idea of the thinking of youth regarding the mobile handsets and the advertisements related with it. The major purpose of this research is description of state of affairs as it exists at present. The method of research in this report will be survey conducted through questionnaires. 5.2 RESEARCH DESIGN: The study should be done in descriptive manner which is mainly concerned with the thinking of the youth in relation to the advertisements of mobile handsets and the impact of these advertisements on individual or group. This study is of descriptive approach and is non-experimental. 5.3 SOURCE OF DATA: y Primary source of the data will be the students and employees of university. The age group of the students and employees exist in between 18-30. y Secondary Data: Various journal, literature available, magazines available, vedio advertisements etc. 5.4 POPULATION: Population includes mainly students, faculty and other staff member within lovely professional university, Punjab. 5.5 SAMPLE SIZE: The sample consists of 150 respondents. The sample is selected randomly. The sample used in the study is considered a simple random sampling. 5.6 METHODS OF DATA COLLECTION: This study will be utilizing self prepared questionnaire survey procedures. I will visit various students and staff members of university. Individual questionnaire will be given to each participant. I will explain the purpose of the research and will assure cooperation for the same. The participants will be requested to fill the questionnaire and give the same back.

5.7 SAMPLING TECHNIQUE: The type of sample, the items of sample and the sampling units are to be picked randomly. So the sampling technique will be random sampling technique. During the survey, I will be interacting with various students and staff of the university and get questionnaire filled by them and explaining them the purpose of project. 5.8 STATISTICAL TOOLS TO BE USED: After filling the questionnaire from various respondents which are to be filled randomly, we are taking the various tests under the random sampling like of correlation, regression, chi-square and Z-test.

ORGANISATION OF STUDY CHAPTER 1- Introduction CHAPTER 2-Review of Literature CHAPTER 3-Research methodology CHAPTER 4-Mobile phone Industry CHAPTER 5-Advertisement in Indian cellular industry CHAPTER 6-Finding and Data analysis CHAPTER 7-Summary CHAPTER 8-Conclusion and Recommendations CHAPTER 9-Implications CHAPTER10-Biblogrpahy CHAPTER11-Annexure

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