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CHAPTER
NO.
CONTENTS PAGE
NO.
1. INTRODUCTION
· Justification of the study
· Objectives of the study
· Delimitations of the study
· Hypotheses of the study
1
2.
REVIEW OF LITERATURE
· Theoretical
review
· Empirical
studies
9
3.
METHODOLOGY
· Research
design.
· Variables and schematic diagram
· Operational
definitions.
· Sampling size and sampling procedure
· Selection and construction of the tool
· Data
collection
· Data
analysis
40
4.
FINDINGS AND DISCUSSION
· Background information of the child
· Hours of exposure to television advertisement and
Awareness regarding television advertisements about
various among children
· The influence of family members and child on the
purchases made for the child
· Pester powered purchases made; pester powered
behavior adopted and the reactions shown by the
children after viewing television advertisement
· Stimulus used in the advertisements for various
products
· Testing of hypotheses
· Development of educational film
52
5.
SUMMARY, CONCLUSION, IMPLICATIONS AND
RECOMMENDATIONS
· Summary
· Conclusion
· Implications
· Recommendations
119
LIST OF TABLES
Sr.
No.
Title Page
No.
1.
Distribution of children according to their age in years.
53
2.
Distribution of the children according to their gender.
54
3.
Distribution of the children according to their educational level
55
4.
Distribution of the children according to their type of family
56
5
Distribution of children according to the education of their mothers.
58
6 Distribution of the children according to the occupation of their
mothers.
59
7
Distribution of children according to the occupation of their head of
the family.
60
8 Distribution of children according to the hours of exposure to
television during weekdays and weekends.
62
9 Distribution of the children according to the awareness regarding
television advertisement on health drinks.
64
10. Distribution of the children according to the awareness regarding
television advertisement on milk products
64
11 Distribution of the children according to the awareness regarding
television advertisement on biscuits
65
12 Distribution of the children according to the awareness regarding
television advertisement on chocolates
66
13 Distribution of the children according to the awareness regarding
television advertisement on games
66
14 Distribution of the children according to the awareness regarding
television advertisement on toiletries
67
15 Distribution of the children according to the awareness regarding
television advertisement on miscellaneous products
68
16
Distribution of the families according to the purchases made related to
health drinks.
71
17 Distribution of the families according to the purchases made related to
milk products
71
Sr.
No.
Title Page
No.
18
Distribution of the families according to the purchases made related to
biscuits.
72
19
Distribution of the families according to the purchases made related to
chocolates
72
20
Distribution of the families according to the purchases made related to
games
73
21
Distribution of the families according to the purchases made related to
toiletries
74
22
Distribution of the families according to the purchases made related to
miscellaneous products
74
23 Distribution of the families according to the general and pester
powered purchases of health drinks in the family
77
24 Distribution of the families general and pester powered purchases
made in the family for milk products
78
25 Distribution of the families general and pester powered purchases
made in the family for biscuits
79
26 Distribution of the families general and pester powered purchases
made in the family for chocolates
80
27 Distribution of the families general and pester powered purchases
made in the family for games
82
28 Distribution of the families general and pester powered purchases
made in the family for toiletries
83
29 Distribution of the families according to the general and pester
powered purchases of miscellaneous products in the family.
84
30
Summated mean square for the advertised products on television.
85
31 Distribution of the families according to the influences on the
purchase of health drinks made for the child in the family.
87
32 Distribution of the families according to the influences on the
purchase of milk products made for the child in the family.
88
33 Distribution of the families according to the influences on the
purchase of biscuits made for the child in the family.
89
Sr.
No.
Title Page
No.
34 Distribution of the families according to the influences on the
purchase of chocolates made for the child in the family.
90
35 Distribution of the families according to the influences on the
purchase of games made for the child in the family.
91
36 Distribution of the families according to the influences on the
purchase of toiletries made for the child in the family.
92
37 Distribution of the families according to the influences on the
purchase of miscellaneous products made for the child in the family.
93
38
Distribution of the respondents according to the degree of impact of
television advertisements
94
39 Distribution of families according to the degree of pester power
purchases
94
40
Distribution of families according to the degree of general purchases
95
41 Distribution of the children according to the pester powered
purchases made, tantrums adopted for pestering for the products and
reaction shown while watching television advertisements related to
health drinks.
98
42 Distribution of the children according to the pester powered
purchases made, tantrums adopted for pestering for the products and
reaction shown while watching television advertisements related to
milk products.
99
43 Distribution of the children according to the pester powered
purchases made, tantrums adopted for pestering for the products and
reaction shown while watching television advertisements related to
biscuits.
100
44 Distribution of the children according to the pester powered
purchases made, tantrums adopted for pestering for the products and
reaction shown while watching television advertisements related to
chocolates.
101
45 Distribution of the children according to the pester powered
purchases made, tantrums adopted for pestering for the products and
reaction shown while watching television advertisements related to
games.
102
Sr.
No.
Title Page
No.
46 Distribution of the children according to the pester powered
purchases made, tantrums adopted for pestering for the products and
reaction shown while watching television advertisements related to
toiletries.
103
47 Distribution of the children according to the pester powered
purchases made, tantrums adopted for pestering for the products and
reaction shown while watching television advertisements related to
miscellaneous products.
104
48 Distribution of the children according to the stimulus in the
advertisement of health drinks which induces demand/request for the
product
108
49 Distribution of the children according to the stimulus in the
advertisement of milk products which induces demand/request for the
product
108
50 Distribution of the children according to the stimulus in the
advertisement of biscuits which induces demand/request for the
product
109
51 Distribution of the children according to the stimulus in the
advertisement of chocolates which induces demand/request for the
product
110
52 Distribution of the children according to the stimulus in the
advertisement of games which induces demand/request for the
product
111
53 Distribution of the children according to the stimulus in the
advertisement of toiletries which induces demand/request for the
product
112
54 Distribution of the children according to the stimulus in the
advertisement of miscellaneous products which induces
demand/request for the product
113
55
:`t' values for the age, gender and educational level of the respondent,
type of family, occupation of head of family with the pester powered
made for the child in the family
114
56
`t' values for the age, gender and educational level of the respondent,
type of family, occupation of head of family with the general
purchases made for the child in the family
115
Sr.
No.
Title Page
No.
57
Analysis of variance for the family variable (family income monthly in
rupees, occupation of mother, education of mother) and situational
variable (hours of exposure to television per week) with the pester
power purchases made for the child in the family.
116
58 Analysis of variance for the family income in rupees, occupation of
mother, and education of mother and hours of exposure to television
advertisement with the general purchases made for the child in the
family.
117
59
The co-efficient of correlation showing relationship between impact of
television advertisement and the pester power purchases made for
the child in the family
118
LIST OF FIGURES
Sr.
no.
Title Page
No.
1.
Effects of Advertisement on children
32
2. Selection
of
sample
45
3.
Age of the children in years.
53
4.
Gender of the children.
54
5.
Educational level of the children.
55
6.
Distribution of the children according to their type of family.
56
7.
Distribution on of the children according to their monthly income of
the family in rupees.
57
8.
Distribution on of the children according to the education of their
mothers.
58
9.
Occupation of the mothers of children.
59
10
Occupation of the head of child's family
60
11
Distribution of the children according to the hours of exposure to
television for week days (Monday to Friday) per week
61
12.
Distribution of the respondents according to the hours of exposure
of children to television per week
63
Chapter - I
INTRODUCTION
The basic task of marketing is the delivery of product(s) to the family as
consumers so that their needs are fulfilled and organizational objectives are also
achieved. Marketing mix is the process of designing and integrating various
elements of marketing in such a way as to ensure the achievement of enterprise
objective of persuading consumers. The elements of marketing mix are classified
under seven heads as product, price, place promotion, people, process and physical
evidence. Thus, marketing mix is said to be a combination of 7 P's. Decisions
relating to the product include product designing, packaging and labeling and
varieties of a tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units. The price is the
amount a family pays for the product which is determined by a number of factors
including market share, competition, material costs, product identity and the family's
perceived value of the product. Place represents the location where a product can be
purchased. It is often referred to as the distribution channel that includes any
physical store as well as virtual stores on the Internet. Place is nothing but how the
product takes place or create image in the mind of customers. People refer to the
family as customers, employees, management and everybody else involved in it. It is
essential for the family to realize that the reputation of the brand that is involved with
is in the people's hands. The success of any marketing strategy depends on the
extent the families are persuaded towards the product and service which is only
successfully possible through effective promotion. Process refers to the methods and
process of providing a service. Hence it is essential to have a thorough knowledge
on whether the services are helpful to the customers, whether they are provided in
time, or informed in hand about the services. Physical evidence refers to the
experience of using a product or service. When a service goes out to the customer, it
is essential to help them see what they are buying or not. Brochures, pamphlets
serve the purpose of physical evidence.
Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion refers to using methods of communication with two
objectives firstly, informing the existing and potential consumers about a product,
and secondly, to persuade consumers to buy the product. It is a most important
element of marketing mix. In the absence of communication, consumers may not be
aware of the product and its potential to satisfy their needs and desires. Various
tools of communication form part of promotion mix. Companies decide which tool(s)
can be used for the relative importance attached to the various methods and also
while concentrating on the element of `promotion' in marketing mix. The four
components of promotion-mix are advertising, personal selling, sales promotion and
public relations amongst which advertising specifically in audio visual form, proved to
be the most effective ones(TOI, 2010).
1
Television advertisement: as an effective tool for family purchases
The term advertising is derived from the original Latin word `advertere' which means
`to turn' the attention. Every piece of advertising turns the attention of the reader,
listeners, viewers or the onlookers towards a product, service or an idea. Advertising
is an impersonal form of communication for which the seller pays in order to promote
a physical product or service. It may be in print forms like newspapers and
magazines, in audio form as on the radio and other similar methods, in audio-visual
forms such as the Television, cinema screen. Virtually any medium can be used for
advertising but one of the most effective forms of advertisement is television
advertisement which is generally considered the most effective mass-market
advertising format. It is reflected by the high prices TV networks charge for
commercial airtime during popular television events.
The audio visual aid i.e. advertisements has become a trend these days for
promoting the product or any service. It plays a vital role in forming an image in mind
of family members because they are the means with which the manufacturer
indirectly communicates with the family and provides necessary information to them.
Advertising has become so integral part of our life & society that we cannot imagine
any event, newspaper, magazine, TV serial, Cinema etc. without it. The
advertisements are focused on the audience which mainly may either be persuaded
by them or watch and pay attention to this medium. Television is an ideal way for
advertisers to reach children as it is so omnipresent in homes around the world. In
more than a third of the homes of American preschool children the television is on
most of the time, whether or not anyone is watching. By the time they get to first
grade American children will have "spent the equivalent of three school years in the
tutelage of the family television set" and by the time they finish high school they will
have spent more time watching television than they spent in class for their entire
schooling (B e d e r , 2 0 0 9 ).
The studies have revealed that major audiences of the advertisements are children
and the homemakers. Calvert 2008 has reported that children view approximately
40,000 advertisements each year. The influence of the media on the psychosocial
development of children is profound. According to Nawathe, Gawande, Dethi, 2007
around 78 per cent of the children watch cartoon channels, so they are more
exposed to the characters shown there and the products endorsed by these cartoon
characters which may imbibe bad food habits in children as most of the
advertisements projected are fast food and cold drink related and not about healthy
diet and an average Indian child watches 14 hrs of Television each week. It was a
vital marketing tool to appeal to the parents earlier but now they appeal directly the
children who do not have the emotional or cognitive tools to evaluate what's being
sold to them. Prior children used to play outdoor games, magazines, and comics but
now most time is spent in watching television and with the increase in the trend of
dual responsibilities of parents, they pay very less attention on the watching habits of
2
their children. In addition to this the marketers use various stimulus in television
commercials that includes repetition, branded characters, catchy and interesting
production features, celebrity endorsements, and premiums free merchandise that
accompanies a product.
Thus, it is important for the parents to know their child's exposure to media and to
provide guidance on age-appropriate use of all media, including television, radio,
music, video games and the internet.
Impact of Advertisements on Children
In the last 20 years impact of TV advertisements on children memory and behavior is
the major topic of debate in countries open for market competition (Boddewyn,
1984).Till 1988 advertising expense of TV program raised up to $500 million
approximately (Leccese, 1989).While looking at the children responses to TV
advertisement a research experiment revealed that children's food choices specially
in snacks are based on their exposure to TV commercials. Gorn and Goldberg,
(1982), Atkin, (1981) also confirmed these findings in his experimental study and
found that the children with heavy exposure to TV advertisements are more likely to
recall those brands while shopping in the market with their parents. Those children
demand advertised food products and toys while moving in market with their parents.
Children ranging between 6 to 11 years of age watch TV commercials 3 hours a day
and it is estimated that over the period of a year average child see about 20,000
advertisements (Adler, Lesser, Meringoff, Robertson, Rossiter and Ward, 1980).
Most of the research in consumer behavior and especially on advertisement impact
on children has focused two major points. Firstly, Impact of TV commercials in
shaping behavior and its positive or negative influence on children life and habits.
Secondly, the role of TV commercials on the development and growth mental as well
as physical of the children's (Donohue, Meyer and Henke, 1978).
Ward, Wackman (1972) found age as a main factor in perception and learning from
the advertisement and the behavioral change is more likely to occur in older children
as compared to younger one. While focusing on the TV commercials and responses
from the consumer in almost 500 commercials responses were recorded by the Leo
Burnett Advertising Agency and they found seven different types of responses to TV
advertisement. Those responses include entertainment, confusion, relevant news,
brand reinforcement, empathy, familiarity, and alienation (Schlinger, 1979).
Galst and White, 1976 proposed a cause and effect relationship and found strong
correlations between TV advertisement exposure of children and their purchase
preferences as well as amount of purchase while shopping with their parents.
Results of a two method study on snacks and sugar foods revealed that effectively
designed message in TV advertisements can generate action and effectively
persuasion in children for purchase of the product (Goldberg, Gorn and Gibson,
3
1978). According to Nawathe, Gawande, Dethi, 2007 the kids buy a particular
product mostly because he has seen it on TV or some of his friend has it.
Children as consumers: Consumer Socialization
Children move through various cognitive and social phases on their journey from
birth to adolescence and adulthood. Consumer socialization (which is only a part of a
child's general socialization) is described as "the processes by which young people
acquire skills, knowledge, and attitudes relevant to their functioning as consumers in
the marketplace" (Ward, 1974).
McNeal (1993) states that children pass through the following five-stage shopping
learning process in their development as consumers:
The first stage is known as observing in which child's initial interaction with the
marketplace. Mothers usually take their infants to shopping malls and stores where
they make sensory contact with the shopping environment. The second stage is
making requests, during this phase, (which corresponds partly with John's
perceptual stage), children make requests (by pointing, gesturing and even making
statements) to parents when they see something if they want in the store. In the
latter part of this phase they make requests for specific products at home, probably
because of the stimulation by television .When children start walking (3-4 years of
age - partly in John's perceptual stage), they experience their first physical contact
as consumers by choosing an article and taking it from the shelf, this is referred to as
the stage of making selection. Almost from birth, children regularly witness their
parents and other shoppers giving money in exchange for goods. These scenes give
meaning to the money children receive from their parents or grandparents. During
this stage (the latter part of John's perceptual stage and the early part of the
analytical stage, 7-11 years) children start spending money on their own. This
contributes to the child's understanding that the store owns the goods and money is
the medium of exchange and is characterized as making assisted purchases. The
fifth and final step in the development of consumer behavior is performing
independent purchases without parental assistance (John's reflective stage, 11-16
years). There is usually a significant time lag between a child's first purchase with
parents and an independent purchase (McNeal & Yeh, 1993).
Pester power of children
The power children have, by repeated nagging, of influencing their parents to buy
advertised or fashionable items is called as Pester power. The influence that the kids
wield over purchase decisions in a household along with the nagging effect that they
have on their parents is growing day by day. Since family structures are undergoing
a metamorphosis and the Indian society is also witnessing an increase in the number
of single parent and dual career families. With the increase in the trend of dual
responsibilities of parents, the guilt which they feel for inability to give time to their
4
children, they are then forced to fulfill all the demands made by them and thus
heighten the pestering power. It is though important to keep the track to the child's
exposure to media, and to give guidance regarding analytical assessment of
advertisements.
Even in families where women do not work, children are observed to
share buyer's role with their mothers. Children enjoy greater discretion not only in
making routine consumption decisions for the family but also in pestering their
parents to buy other products desired by them. According to Singh (1998), Halan
(2002); recent researchers expressed that children constitute a major consumer
market, with direct purchasing power for snacks and sweets, and indirect purchase
influence while shopping for big-ticket items. Children constitute three primary
, the
influencer, and the future
market. Certain products are simply children's products for
which they are the primary users/buyers. They sometimes either different markets:
the purchase a product themselves or select the product before it is purchased by
the parents. For other products, such as ones which are used by the entire family
unit, they may influence purchases made by the parents. There are some products
where children wield direct influence or pester power by overtly specifying their
preferences and voicing them aloud. For other products, parents' buying patterns are
affected by prior knowledge of the tastes and preferences of their children. This
'passive dictation' of choice is prevalent for a wide variety of daily consumed product
items as well as products for household consumption. Also, decision making in
households is seen to change with the mere presence of children. The nature of joint
decisions in couple decision making units and family decision making units is seen to
be different (Filiatrault and Ritchie, 1980). It is also observed that children are
socialized by their parents to act as rational consumers. After years of direct or
indirect observation of parental behavior in the marketplace, they gradually acquire
relevant consumer skills from their parents.
Justification of the study
Today the physical activities of the family have been replaced by indoor games,
computers or television watching specially for the children in the modern homes. The
telecasted advertisements targeting the children as consumers however influence
them to an extent that renders an impact forcing the family in buying the products for
them, resorting to any means. In the present study the children as consumers
belonged to the "analytical stage", characterized by "perceptual boundness".
Children of this stage focus on single dimensions of objects and events, thereby
limiting their decision-making skills as informed consumers. During the analytical
stage, children gain the ability to analyze products according to more than one
dimension at a time and their knowledge of advertiser techniques and brands
becomes much more sophisticated. Using this as strategy marketers have targeted
children for decades, the trends have increased the marketer's interest in child
consumers more for the two last decades. The purchases in the family because of
the impact of television advertisements have increased over a period of time. The
reason being that children and their power to influence parent purchases have
5
increased over time. Moreover as the enormous increase in the number of available
television channels has led to smaller audiences for each channel, digital interactive
technologies have simultaneously opened new routes to narrow cast to children,
thereby creating a growing media space just for children and children's products.
The products which are introduced targeting at children create willingness among the
children. The influence of the peer group, the changes in the trends and needs of the
children create a more willing stimulus among them to buy those television
advertised products.
The review of literature has highlighted that there were studies conducted outside
India on "Parents and television advertisements as consumer socialization agents for
adolescents" (North and Kootz, 2001), "Children's understanding of television
advertising: effect of age, gender and parental influence"; "Children's influence of on
family decision making" (Martensen and Gronholdt, 2008).
The review of literature further highlighted that the focus of Indian research studies
were on "Impact of television advertising on child's health and family spending"
(Kathke, 2007), "Impact of advertisements on children's health" (Nawathe
,
Gawande,
Dethi, 2007), "Evaluation of advertisements on children" (Patel,2007), influence of
advertising media on teenagers purchasing decisions (Vyas, 2000).
The awareness regarding advertisements, influences on the purchases made for the
child, extent of tantrums adopted for pester power, extent of reactions shown while
watching Television and the most forceful stimulus used in the advertisements were
not found to be studied together in the researches received by the researcher. Since
the locale of the studies conducted in the area highlighted that children belonging to
analytical stage in vadodara is also not yet been studied till date. This became the
premise to conceptualize the present study.
The, content analysis of advertising, marketing practices in children's media; effect of
advertisement on children's mindset and their influence on purchases made for them
and the researches that have been conducted in the area becomes an area of
concern for the present research study.
The present study is considered to be helpful for the families as it can give them
insight into the advertising tactics adopted by the marketers and thus can take
appropriate measures so as to avoid the exploitation of children through misleading
advertisement .It will also be helpful to the schools authorities as they can keep a
check on the various advertising media like sponsorship done at school level and
develop attitude and skills as a responsible consumer.
The study can be used by the academicians to develop such curriculum that enable
the child to analyze the advertisements rationally, It would help the government in
making policies for the unethical advertisements' and the consumer forum can also
6
make policies for keeping a check on the advertising agencies by building a
regulatory mechanism for such agencies.
Since consumer is a major course of the curriculum of the department, the findings
of the present study, would add a new dimension of area of interest about the
children as consumers and the impact of television advertisements on them.
Moreover it would serve as a feedback for the reputed advertisers who wish to
upgrade their television advertisements targeted for the child consumers.
Objectives
Statement of problem: To explore the impact of television advertisement on
children's pester power and the purchases made for them in the family.
In order to study the major objective following sub objectives were formulated:
Specific objectives:
1. To know awareness of children belonging to the analytical stage (i.e. seven to
eleven years) regarding the selected television advertisements for various
products.
2. To determine influences of advertisements on the purchases made for the
children in the family.
3. To identify the stimulus utilized in advertisements enforcing the purchases
made for the child into the family.
4. To ascertain the impact of advertisements on the pester powered purchases
and purchases made for the child in the family.
Hypotheses of the study
1. The pester powered purchases and the general purchase made for the child
in the family will vary with their personal variable (age, gender,educational
level of the child) family variables (type of family, monthly income of the family
of the child, education and occupation of the mothers, occupation of the head
of the family of the child) and situational variable (hours of exposure of
children to television per week).
2. There exists a relationship between the impact of television advertisements
and the pester powered purchase of the children.
Delimitations of the study
1. The present research was limited to children belonging to the analytical stage
with the age group of 7 to11 years only.
7
2. The study was limited to the television advertisement for selected products
telecasted for the children for last the months i.e. August 2010 to January
2011
3. The study was limited to the purchase made for the child in the family based
only on the telecasted advertisements on television for selected products.
4. The advertisements in the study were limited to those which are telecasted on
selected cartoon channels like pogo, cartoon network, nickelodeon, hungama,
Disney channel.
8
CHAPTER - II
REVIEW OF LITERATURE
Review of literature is an important part of any scientific study. It prepares the
researcher to formulate a researchable problem as well as helps in avoiding any
duplication of work done earlier. A careful review of literature enables the researcher
to collect and synthesize prior studies related to the present study. It also gives
insight regarding the possible methods which can be persuaded for the undertaking
of similar investigation.
This chapter presents the literature relevant to the topic. The chapter is divided into
the following sections:
Section: 1 Theoretical orientation
2.1.1. Evolution of advertising
2.1.2. Definition, meaning of advertising
2.1.3. Objectives of advertising
2.1.4. Functions and benefits of advertising
2.1.5. Types of advertising
2.1.6. Different Media of Advertising
2.1.7. Stimulus used in advertisements
2.1.8. Development of children as consumers
2.1.9.
Theoretical approaches for studying children's understanding of
advertisements
2.1.10 Effect of television advertisement on children
2.1.11. The information approach to advertising research
2.1.12. Children and their pester power
Section: 2 Empirical studies
2.2.1.
Studies conducted outside India
2.2.2. Studies
conducted
in
India
9
Section 1
2.1 Theoretical orientation
This section includes information regarding the evolution of advertising,
definition, meaning of advertising, objectives of advertising, functions and benefits of
advertising, types of advertising, different media of advertising, stimulus used in
advertisements, development of children as consumers, theoretical approaches for
studying children's understanding of advertisements, effect of television
advertisement on children, the information approach to advertising research, children
and their pester power.
2.1.1 Evolution of advertising:
The history of advertising is divided into four stages. The first stage is the "Age of
Prints". Advertisements were primarily classified in format and print media carried
them. The combination of this age was the development of the newspaper.
The second stage "The Industrial "Revolution and Emergence of Consumer
Society," a period when advertising grew in importance and size because of
numerous social and technological developments. The purpose of advertising was to
devise an effective, efficient communication system that could sell products to a
widely dispersed marketplace. National media developed as the country's
transportation system grew.
"Modern Advertising: Agencies, Science and Creativity" is the third stage in the
evolution of advertising. The advertising industry grew to a remarkable $500 million
in media billing and as a result, attached the development of organizations
specializing in advertising (agencies, established research techniques) and moves to
an era of more creativity.
Starting in the early 1970's, the "Accountability Era" began. Clients wanted
advertisements that produced sales and implemented technology, so they hired
experts that could produce such results. In the early 1990s the advertising industry
recognized that its fate was linked to the global business environment. Advertising
had to learn to pay on its own way.
2.1.2. Definition, meaning of advertising
The standard definition of advertising has six elements. First, advertising is a
paid form of communication, although some forms of advertising, such as public
service announcements (PSAs), use donated space and time. Second, not only is
the message paid for, but the sponsor is identified. Third, most advertising tries to
persuade or influence the consumer to do something, although in some cases the
point of the message is simply to make consumers aware of the product or company.
Fourth, the message is conveyed through many different kinds of mass media, and
10
fifth, advertising reaches a large audience of potential consumers. Finally, because
advertising is a form of mass communication, it is also no personal.
Many early attempts have been made to formulate a definition of advertising. One
such attempt led to the following definition of advertising
According to Mohan (1932)
"The dissemination of information concerning an idea,
service or product to compel action in accordance with the
intent of the advertiser."
In 1963, the American Marketing Association (AMA) proposed the following definition
of advertising:
"Advertising is any paid form of non-personal presentation
and promotion of ideas, goals and services by an identified
sponsor."
Wright, Winter and Zeigler (1983), have recommended another definition for
advertising. According to them
"Advertising is controlled, identifiable information and
persuasion by means of mass communication media."
According to Burnett (1998),
"Advertising is the non-personal communication of
marketing-related information to a target audience usually
paid for by the advertiser, and delivered through mass media
in order to reach the specific objectives of the sponsor."
Russell and Lane (1996) have also defined advertising in the following words
"Advertising is a message paid for the identified sponsor and
delivered through some medium of mass communication.
Advertising is persuasive communication. It is not neutral, it
is unbiased; it says; `I am going to sell you a product or an
idea."
According to Madan, Mittal& Verma, 2010
The word "advertising" is originated from a Latin term
"advertire" which means "to turn to". The dictionary meaning
of the term is "To give public notice or to announce publicly."
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Advertising has gained much attention because it is the best known and most widely
discussed form of promotion and a very important promotional tool. There are
several reasons for this. First and foremost, it can be very cost effective method to
reach a large audience. It can also be used to create images and build symbolic
meanings for a company or brand.
2.1.3. Objectives of advertising
Mathews, Buzzell, Levitt and Frank (2010) have listed the following specific,
objectives of advertising
1.
To make an immediate sale.
2.
To build primary demand.
3.
To introduce a price deal.
4.
To inform about a product availability.
5.
To build brand recognition or brand insistence.
6.
To help salesman by building an awareness of a product among retailers.
7.
To create a reputation for service, reliability or research strength;
8.
To increase market share.
9.
To modify existing product appeals and buying motives.
10.
To inform about new product's availability or features or price.
11.
To increase the frequency of use of a product.
12.
To increase the number or quality of retail outlets.
13.
To build overall company image.
14.
To effect immediate buying action.
15.
To reach new areas or new segments of population within existing areas.
16.
To develop overseas market.
The objectives are divided into three major objectives
a) Inform
1. New product introduction
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2. Build company image
3. Suggest new uses of the product
4. Inform the changes in marketing mix, e.g. , price
5. Explain how the product works
b) Persuade
1. Persuade to purchase now
2. Aid to sales force
3. Persuasion through demonstration
4. Build brand preference
5. Attempt to offset competitors' advertising
c) Remind
1. Keep the awareness intact
2. Maintain product and company image when salesperson is not available.
3. Reminding users when to buy the product
4. Remind users that the product will be needed in the near future
5. Maintain image during off seasons (Madan, Mittal& Verma, 2010).
According to Mittal (2008) advertising has following objectives
1.
To create a demand for new products by explaining its utility.
2.
To announce a new product or service.
3.
To increase its sales by attracting new customers
4.
To create brand preferences
5.
To expand the market for new buyers
6.
To assist the salesman in their selling efforts
7.
To warn the public against imitation of the product of the firm
8.
To prepare ground for new products
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9.
Barring new entrance
10.
To make special offers through sales promotion
11.
To neutralize competitors advertising
12.
To enhance goodwill of the firm.
2.1.4. Functions and benefits of advertising
In most advertising situations, it is unrealistic to expect that an advertisement
would directly produce sales. Advertising is known to facilitate sales rather than
accomplish the complete selling function. This helps in making certain important
assumptions.
· Most advertisements help in producing psychological effects and can help in
changing only mental states of audiences and predispose them towards the
purchase of the advertised product or service.
· Advertising is essential a form of communication and its basic responsibility is
to deliver desired information to the targeted audience.
2.1.4.1. Functions of advertising
In its role as a form of mass communication, advertising delivers relevant
messages to target audiences and, by changing mental states, it can perform a
number of functions.
Sheth, 1974 has suggested a broader framework for advertising functions. He
has described four primary functions
1. Precipitation
2. Persuasion
3. Reinforcement
4. Reminder
The advertisements perform "precipitation" function by stimulating needs and wants
and creating a general awareness. This is accomplished by educating consumers
about the new product or service and attempting to convince that a product now
exists that actually is capable of meeting their need more effectively. Advertisements
generally stress what the product or service can do, offer, or provide that could not
have been done, offered, or provided by any product before. The aim of some
advertisements, such as comparative advertising, is "persuasion". The consumer
knows what the product or service is how it can be used. Persuasive advertising may
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often lead consumers to purchase. The purchase may result in a short or long period
because of many reasons; however, this is the ultimate goal of all product or service
advertising. The route to persuasion may be the outcome emotional or rational
appeals such as humor, love, fear, shame, economy, quality, etc. Advertisements
also are designed to reassure consumers that they have made the wise decision by
buying a product or service. This makes consumers feel good and serves the
function of "reinforcement". Many advertisements show consumers reports or other
testimonials confirming the fuel economy and performance of two-wheeler autos, or
a well-known personality is shown using a certain brand. The aim of "reminder"
advertisements is to keep the company or brand name always fresh in the target
audience's memory. A good number of advertisements are repeated frequently to
accomplish this function.
A very important function of advertising is to increase the perceived value of a brand
by giving it a symbolic meaning that makes it more valuable to the consumers.
According to this thinking, a consumer will choose a brand of sports shoe for its
ability to communicate fitness, or purchase an expensive car because it symbolizes
status and wealth.
The various functions of advertising can thus be listed as below:
1. Stimulates
demand: By informing consumers about the availability of a
product in the market, advertising stimulates latent needs and reinforces the aroused
needs. There is general agreement that advertising has some effect on aggregate
consumption.
2.
Strengthens other promotion mix elements: Advertising does the pre-
selling of the product and makes the job of sales people easier. It reaches a
relatively large audience and makes them favorably predisposed. Advertisements
carry sales promotional messages and often produce quick sales response.
3. Develops
brand
preference: Consistent and persuasive advertising often
induces brand trial or purchase. When the product delivers the promised quality,
service and value, it creates satisfied customers who become instrumental in
spreading a favorable word-of-mouth. Satisfied customers also develop brand
preference which gets reinforced by repeated advertisements. Products with strong
brand franchise offer some protection against competition. Brand loyal customers
are an important asset for the company and are less likely to be influenced by
competitive motives.
4. Cuts
costs: Advertising may be instrumental in cutting down production and
selling costs. Increasing unit sales decreases unit costs. Selling costs also may
decrease because there would be fewer wasted calls and less strain on sales
people.
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5. Lower
prices: In any market based and competitive economy, when unit cost
of a product goes down, there are external and internal pressures which compel
companies to lower prices to the advantage of consumers. This often leads to
deeper market penetration.
2.1.4.2. Benefits of advertising
With the aid of advertising, consumers find and buy necessary products
without waste of time. The benefits of advertising are narrated as follows:
1.
Benefits to Manufacturers
1.
It increases the sales volume. On the one hand, it reduces the cost of
production and, on the other, increases profits.
2.
It helps easy introduction of products into the markets.
3.
It helps to create an image and reputation not only of the product but
also of the advertiser.
4.
Retail price maintenance is possible.
5.
It helps to establish a direct contact between manufacturers and
consumers.
2.
Benefits to wholesalers and retailers
1.
Easy sale of the products is possible since consumers are aware of the
product and its quality.
2.
It increases the rate of the turnover of stock.
3.
It supplements the selling activities.
4.
The reputation created is shared by the wholesalers and retailers alike.
5.
It enables them to have product information.
6.
It ensures more economical selling.
3.
Benefits to consumers
1.
Advertising stresses quality and prices. This forms an indirect
guarantee to the consumers. Furthermore, Large scale production
assured by advertising enables the seller to sell the product at a lower
cost.
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2.
It helps them know where and when the products are available. This
reduces their shopping time.
3.
It provides an opportunity to the customers to compare the merits and
demerits of various substitute products.
4.
This is perhaps he only medium through which consumers could know
the varied and new uses of products.
5.
Modern advertisements are highly informative.
4.
Benefits to sales person
1.
Introducing the products made easy.
2.
Advertising prepares necessary ground for a salesperson to egin his
work. Hence sales efforts are reduced.
3.
The contact established with the customer y a salesperson is made
durable through advertising.
4.
The salesperson can weigh the effectiveness of advertising when he
makes a direct contact with the customer.
5.
Benefits to the community
1.
Advertising in general, is educative in nature. In the words of the late
President Roosevelt of the USA, "Advertising brings to the greater
number of people actual knowledge concerning useful things; it is
essentially a form of education-and the progress of civilization depends
on education."
2.
Advertising leads to large-scale production creating more employment
opportunities.
3.
It initiates a process-of creating more wants and their satisfaction
resulting in a higher standard of living.
4.
Newspapers would not have become so popularly and so cheap if
there had been no advertisements. The cheap production of
newspapers is possible only through the publication of advertisements.
5.
It assures employment opportunities for the professional artists.
(Madan, Mittal, Verma,2010, Kazmi, Batra,2004)
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2.1.5. Types of advertising
2.1.5.1 Product Advertising: Normal characteristic of advertising is to create primary
demand for a product category rather than for a specific brand. In short, where the
company tries to sell its product or services through advertising, it may be referred to
as product advertising.
2.1.5.2 .Institutional advertising: where the objective of advertising is to project the
image of a company or its services, it is called institutional advertising. These
advertisements are not always directed only to consumers. Instead, it may be aimed
at many of the various stakeholders (shareholders, creditors etc.).
2.1.5.3. Primary Demand Advertising: It is intended to stimulate primary demand for
a new product or product category. It is heavily utilized during the introduction stage
of the product life cycle.
2.1.5.4 .Selective and Competitive Advertising: When a product enters growth stage
of product life cycle and when competition begins, advertising becomes competitive
or selective. Here the goal of advertising is to influence demand for a specific brand.
Advertising may begin to stress subtle differences in brands, with heavy emphasis
on `brand name recall'.
2.1.5.5 .Comparative advertising: Such types of advertising stress on comparative
features of two or more specific brand in terms of product/ service attributes. This
method is adopted in the maturity stage when similar products firstly appearing in the
market constitute a stiff competition. Comparative advertising "delivers information
not previously available to consumers". When comparative advertising appears, it
reveals the intensity of competition in the market.
2.1.5.6. Shortage Advertising: When shortage in the supply of products occurs,
advertising often disappears into the background. In such kind of advertising, new
promotional objectives may be incorporated such as:
a)
Educating the user of more efficient means of utilizing the product, thus
reducing the demand;
b)
To reduce customer pressure on the sales force;
c) Improving
goodwill;
d)
Making appeal to save resources;
2.1.5.7 .Cooperative advertising: When manufacturers, wholesalers and/or retailers
jointly sponsor and share the expenditure on advertising, it takes the form of
cooperative advertising. Such advertising would carry the names of all parties
involved.
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2.1.5.8. Commercial Advertising: It is also termed as business advertising. As the
name suggests, such advertising is solely meant for effecting increase in sales.
Usually, the following forms of commercial advertising are recognized:
a)
Industrial advertising- this is exclusively used for selling industrial products.
b)
Trade advertising- advertising relating to a trade channel partners.
c)
Professional advertising- undertaken by professional people such as doctors,
accountants, etc.
d)
Farm advertising- exclusively used for selling farm products such as fertilizers,
insecticides, farm implements, etc.
2.1.5.9 .Non-Commercial Advertising: These are usually published by charitable
institutions preferably to solicit general and financial help.
2.1.5.10 Direct Action Advertising: Advertising that stresses and persuades
immediate buying of the product is known as direct action advertising. Direct mail
advertising is capable of achieving immediate action to a large extent. (Madan,
Mittal, Verma, 2010).
2.1.5.11 Brand advertising: it focuses on the development of a long-term brand
identity and image.
2.1.5.12 Retail or local advertising: It can refer to a retailer or a manufacturer or
distributor who offers products in a fairly restricted geographic area.
2.1.5.13 Political advertising: Politicians use advertising to persuade people to vote
for them or their ideas, so it is an important part of the political process in the United
States and other countries that permit candidate advertising.
2.1.5.14 Direct-Response Advertising: In this any advertising medium, including
direct mail, but the message is different from that of national or retail advertising. The
consumer can respond by telephone or mail, and the product is delivered directly to
the consumer by mail or some other carrier.
2.1.5.15 Business to business advertising: it includes only messages directed at
retailers, wholesalers, and distributors, and from industrial purchasers and
professionals such as lawyers and physicians to other businesses, but not to general
consumers.
2.1.5.16 Institutional advertising: it is also called corporate advertising. These
messages focus on establishing a corporate identity or winning the public over to the
organization's point of view.
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2.1.5.17 Nonprofit advertising: not-for profit organizations, such as charities,
foundations, association, hospitals, orchestras, museums, and religious institutions,
advertise for customers.
2.1.5.18 Public service advertising: these advertisements communicate a message
on behalf of some good cause (Wells, Moriarty, Burnett, 2006, 2005).
2.1.6. Different Media of Advertising
For any advertising, it is very important to find out a proper medium through
which it could be brought out. In general, an advertising medium should be capable
of accomplishing three objectives.
1. It must reach the largest possible number of people, (Reach);
2. It must gain their attention, (Impact);
3. It must be less expensive(Cost);
The media that are commonly used for advertising are as follows:
1. Press publicity,
2. Outdoor publicity,
3. Audio-visual methods,
4. Point of purchase advertising, and
5. Internet,
6. Viral marketing.
2.6.1 Press publicity: It takes two forms: Newspapers and magazines. Newspapers
are bought for their news value. As such they are appropriate for announcing new
products and new additions to existing products. Because of the frequency of
publications, they are also well suited to `opportunity markets'.
2.6.2 Outdoor publicity: It projects the message to a large number of people of
heterogeneous interests. These are meant for moving population and provide the
advantage of reminding the people frequently of the product.
2.6.3 Audio-visual
Methods:
a) Film
Advertising:
Advertising could be effectively carried out through the use
of motion pictures or cinema. Though it is comparatively a new medium, it has
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become one of the most popular ones. This is mainly attributable to its appealing
nature to all classes of people.
b) Radio
Advertising:
Statistics show A.I.R. servers 73.3% of the population in
India. Now-a-day, the private channels FM are very popular.
c) Television:
Television is the most rapidly growing medium of advertising. It is
very popular and effective due to combined force of picture and voice. Expansion of
electronic media and cable network has considerably widened the reach of
television. Products can be demonstrated and explained on television. Both short
commercials and sponsored programmes can be used. TV advertising has all the
merits of film advertising. The main feature of TV is that it combines the advantages
of both radio and cinema- hence it is powerful audio-visual medium.
d) Exhibitions: this is a method in which the demonstration aspect is given
importance. Further, exhibitions range from a small local level to national or even
international levels. The idea behind this medium is not new. Seasonal trade fairs
were common even in the past.
2.6.4 Point of Purchase Advertising (P.O.P.): This is a direct method because the
advertising process is undertaken by the retailer. There are various forms commonly
known as `store displays'. It is also a powerful medium. It is observed that the point
of purchase is the exact point where prospects are reminded finally about a product.
a) Window
Display: Products are displayed in front of the shop at a place
where they would be prominent so that passers-by cannot escape the display. They
are arranged most attractively. This method is often used not only to sell an article
but as a means to creative selling. The dormant desires of people to own certain
products are tickled and are brought to surface. "A window display is a combination
of a poster, newspaper advertisement, a stage act, a speech and a scarf dance."
b) Counter
Display: Here also the displayed, but inside the shop. Thus, the
attention of real buyers, who step into the shop, is directed towards the articles
displayed.
c)
Special Display and Shows: Most of the manufacturers have found that
putting special displays of several products in selected stores in a good promotional
device.
d) Showrooms: In the case of certain products, personal inspection is an
important pre-requisite.
2.6.5. Internet: Internet is a recent advertising medium that has come into
existence. Internet ads can reach highly selected audience. It permits scope of
narrow casting. Since, the medium is interactive it can involve prospects and deliver
message more effectively, and cost wise it is not an expensive option. It allows great
21
message dramatization possibilities. Unlike television, prospects here can control
media exposure. Internet's biggest drawback is its limited reach. Being a new
medium its users are not many.
2.6.6 Viral Marketing: With Internet advertising catching on India viral marketing,
too, is making progress. It relies on spreading the buzz through a self-sustaining
word of mouth strategy. Once a viral is released, it will most likely spread itself
without the marketers' constant backing (Madan, Mittal, Verma, 2010).
2.1.7. Stimulus used in advertisements
Advertising is a multi-billion dollar industry with one main goal: persuading
people to buy products. This is an industry that's spent an enormous amount of time
and effort to figure out the best strategies for getting you to do exactly what they
want. According to Seiter (1993), advertising to children avoids any appeal to the
rational, emphasizing instead that ads are for entertainment and "enjoyable for their
own sake" as opposed to providing any real consumer information. The most
common persuasive strategy employed in advertising to children is to associate the
product with fun and happiness, rather than to provide any factual product-related
information. Hence, children in the age category 8-10 years have a positive attitude
towards advertisements (Singh, 2006)
.
As cited
in Gunter, Oates and Blades, 2005,
according to Ross,
Campbell, Wright, Huston, Rice & Turk, (1984), there are
concerns about the way that products are presented to children. Advertisers naturally
want to present their products in the most appealing way, and this might mean, for
example, using celebrities to endorse a product. This can increase children's liking
for a product Children are targeted just as any other market, and, like adults, are
subject to particular techniques used by advertisers to enhance their brands. Young
children are trusting commercials and it is possible to accuse advertisers for being
unfair in taking advantage of this trusting outlook. The Independent Television
Commission, regulator of television advertising in the United Kingdom, specifically
mentions misleadingness in an effort to control advertisers' use of techniques that
make it difficult for children to judge the true size, action, performance, or
construction of a toy. Areas of concern include exaggeration, fantasy, particular
appeals, celebrities, use of metaphors, and special effects. Here are some of the
common techniques and strategies used by advertisers.
2.1.7.1 The Bandwagon Appeal
The bandwagon appeal is an advertising technique that makes the claim that
a product is desirable because it is being used by lots of desirable people --
therefore encouraging the consumer to "jump on the bandwagon." This appeal is
commonly used in products that are sold to children and teenagers, but "keeping up
with the Jones" snob appeals are used to sell products to adults as well, especially
cars and luxury goods.
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2.1.7.2 Celebrity Testimonial
Celebrity endorsements are the oldest trick in the book, and you would think
we know longer care what brand of underwear Michael Jordan wears or what kind of
appliances Kelly Ripa uses. Nonetheless, celebrity pitches stick in peoples minds, so
even if we know better than to buy something just because a famous person claims
to like it, we nonetheless remember the pitch and the product.
2.1.7.3. The Association Principle
Association is an advertising technique that involves drawing a mental link
between a product and desirable qualities of various kinds that may include
attractiveness, wealth, success, family, patriotism, or security. These appeals are
usually implicit, as no one jumps onto the screen and says, "You're patriotic and love
your family, don't you? If so, shop at Wal-Mart!" Instead, these ads show images and
story lines that represent these values, like a Wal-Mart ad that shows a single
mother buying Fourth of July merchandise for her adorable children.
2.1.7.4. Emotional Appeal
Emotional appeals are advertising techniques in which the advertiser tries to
play up on the emotions of the audience, often in lieu of information that might
appeal to an audience rationally. One kind of emotional appeal is the fear appeal,
where the advertiser implicitly or explicitly draws upon people's anxieties to sell a
product. For example, a security alarm company might show a scenario where the
home of a mother and her children is burglarized. Advertisers also appeal to
sentiment, often through images like babies, cute animals, and touching parent-child
interactions.
2.1.7.5. Repetition
One of the simplest techniques used by advertisers is repetition. Look closely
at any ad and you're likely to see repeated images of the product's name and logo.
In a TV or radio ad, the product's name will be stated regularly. Advertisers also
create repetition by running an ad frequently. When it comes time to make a
purchase, and the name of one of the products on the shelf has been repeated to the
consumer many times, that product might just stand out enough for the consumer to
choose it (Rajeev 2010).
2.1.7.6. Arouse Curiosity
Nothing works better than this technique. Humans, by nature are always
drawn towards the unknown or in this case something new and advanced. Arousing
curiosity with words, prints, images or visuals will definitely make an impact. On an
23
average, an individual spends less than 5 seconds to go through an entire
advertisement. If your subject does not arouse curiosity immediately, it is a lost
opportunity. A well-crafted ad should be eye-catching, and difficult to ignore.
2.1.7.7. Promise a Benefit
Most brands are associated with some pre-defined character, and they need
to be re-emphasized with every new service advertised. The headline must promise
a benefit for the consumer, because in most instances it is the headline that sells the
product more than the copy, images or the celebrity. Advertisements should also
carry general information about the service center address, phone numbers, credit
cards that the business accepts, and the name of a person to ask for when calling for
more information.
2.1.7.8. Children
In most houses, children have a say in every big or small purchase made.
Most parents just give in to the tantrums, a fact well known to the advertisers. Out of
ten commercials one sees through any medium, 8 have children featured in them
who are generally a little more perfect than the target audience. These perfect
children then go on to become role-models that have to emulated by other children.
2.1.7.9 Use of Humor
Of course, one of the most effective ways to get the audience's attention is to
be funny -- if the attempt works and doesn't misfire. Humor is one of the best ways to
break through the "noise" of all the competition advertising messages out there and
get people to pay attention to the sales pitch.
An advertisement is more like a gamble.
There is no fixed advertisement technique for it to succeed. Some ads have all the right
components, yet fail to create an impact, while some score over in their simplicity. The most,
and perhaps the only important reason an ad is made, is to generate revenue for the
company by selling products and services (Rajeev 2010).
2.1.7.10. Exaggeration
Bandyopadhyay, Kindra, & Sharp (2001) stated that general concern about
misleading tactics that advertisers employ is centered on the use of exaggeration or
puffery. Consumer protection groups and parents believe that children are largely ill
equipped to recognize such techniques and that often exaggeration is used at the
expense of brand information. Claims such as "the best," or "better than" can be
subjective and misleading; even adults may be unsure as to their meaning.
2.1.7.11. Fantasy
The use of fantasy is one of the more common techniques in advertising that
could possibly mislead a young audience. Child-oriented advertisements are more
24