PROJECT REPORT ON
IMPACT OF TV COMMERCIAL ON CONSUMER BEHAVIOUR
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CHAPTER 1 1.1 ABSTRACT Advertising is a form of communication used to help sell products and services. Typically it communicates a message including the name of the product or service and how that product or service could potentially benefit the consumer. However, Advertising does typically attempt to persuade potential customers to purchase or to consume more of a particular brand of product or service. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. The crescendo of celebrities endorsing brands has been steadily increasing over the past 20 years or so. Marketers overtly acknowledge the power of celebrity in influencing buyer's purchase decision. They have firm believe that likeability or a favorable attitude towards a brand is created by the use of a celebrity. The crore of rupees spent per year on celebrity endorsement contrac contracts ts show show that that celebr celebriti ities es like like Amitab Amitabh h Bachch Bachchan, an, Sharuk Sharukh h khan and Sachin Sachin Tendulkar play an important role for for the advertising industry. industry. It is an established established fact that celebrity endorsement can bestow unique features or special attributes upon a product that it may have lacked otherwise.
My project deals with impact advertisement that creates on a consumer behavior towards a brand. In other words, how does an television advertisement lure a customer to go and purchase the product. Does he purchase because of the benefits or because he liked the advertisement which has created a positive impact on him.
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1.2 SYNOPSIS The influence of advertising on our lives, for both children and adults, has changed over the years. In the early days, advertising for toys and other products for children was primarily targeted targeted toward parents and their message was direct. direct. Today however, things have changed changed.. Market Marketing ing messag messages es are more more sophis sophisti ticat cated, ed, more more pervas pervasive ive,, and are aimed directly at "hooking" kids at a very early age.
There have always been advertisers who market to all audience. Clearly products such as toys and sugary cereals have been around since before our grandparents were small. Just as today, those who made such products developed ad campaigns to promote them to an interested audience. Many years ago however, it was a bit easier to recognize what was an advertisement and what wasn't. Advertisements were limited to displays in a store, a newspaper ad, or a brief spot on TV or radio. The influence of advertising is increasingly far reaching.
Today, ads are much more pervasive and less recognizable as a sales pitch. pitch. For instance, while eating at a favorite child oriented fast food restaurant, a child may receive a toy. That toy may also be tied to a movie, a cartoon, a video game, or to a website that offers additional games, toys, and related products. Books, clothing, accessory items, backpacks, cell phones, scooters and more are all tied to the same theme. These ads targeted toward adults, create a need where none existed previously. They also hook children, and subsequently their parents, into an endless loop of buying more and more products.
Adverti Advertisin sing g is no longer longer limite limited d to store store displa displays, ys, radio and TV commer commercia cials, ls, and newspaper ads. Movies, cartoons, video games and more are also developed for the purpose purpose of marketing additional additional products. products. As we are bombarded with ads from every every direction, even as adults these games, movies, children's meals, websites etc. are seldom
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recognized as the mere marketing methods that they are. With increased prevalence and subtlety, the influence of advertising has grown enormously.
1.3 ABOUT THE STUDY 1.3.1 Need of the study:
Advertisements in television plays very critical role in promoting any particular brand. It creates impact on consumer which further triggers consumer behavior. Particularly, good advertisement creates very strong brand impact and long lasting recall for e.g. recent TV commercial of Kit kat have created very positive impact. However, the prime important is that TV commercial should not only create an impact but also triggers change in consumer behavior. When a commercial can make change in consumer behavior, than only we can say that a commercial is good and has helped in increasing sales. Only brand recall would not suffice organization vision and mission. Thus this is where I felt to study that what kind of impact TV commercials make and try to understand that is there any change in consumer behaviour
1.3.2 Objective of the study: •
To study basics of consumer behavior and advertising as a concept
•
To understand TV commercials, study past records and determine the impact made by these commercial on buyer behaviour
•
To analyze five recent commercials and to study that does this commercials have made change in consumer behaviour
1.3.3 Scope of the study:
The project encompasses understanding of theory with respect to consumer behavior and advertising as a concept. The study is spread across five chapters wherein each chapter tries to understand various facets of TV commercials and
it’s impact on
consumer behavior.
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1.3.4 Data collection:
Data is collected with the help of primary as well as secondary sources. Primary sources includes on field survey with the help of questionnaire and secondary sources includes books, magazines, journals etc
1.3.5 Limitation: •
Advertisement covers various forms like radio, outdoor etc. The project aims to
understand change in consumer behavior with the help of television media only •
Primary data is collected pertaining to recent five televisions commercial only due
to time and geographic constraint
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CHAPTER 2
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2.1 INTRODUCTION TO ADVERTISEMENT 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.
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.
Dunnetal. 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 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: (i) A verbal and or visual message (ii) A sponsor who is identified
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(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 non--personal, sponsor-identified, paid-for
message about a product or organization”. Those views of Etzeletal. (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 spo nsors 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 towards the product, may speed the individual buyers through the purchase decision process. Individual purchasers will filter out unfavorable or un-known brands and the continued purchase of the branded product will reinforce the brand loyal behaviour. Without brands, consumer couldn’t differentiate one product from another and advertising then would be nearly impossible.
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2.2 ORIGIN AND DEVELOPMENT OF ADVERTISING It has been wrongly assumed that the advertising function is of recent origin. Evidences suggest that the Romans practiced advertising; but the earliest indication of its use in this country dates back to the middle Ages, when the use of the surname indicated a man’s occupation. The next stage in the evolution of advertising was the use of signs as a visual expression of the tradesman’s function and a means of locating the source of goods. This method is still in common use. The seller in primitive times relied upon his loud voice to attract attention and inform consumers of the availability of his services. If there were many competitors, he relied upon his own personal magnetism to attract attention to his merchandise. Often it became necessary for him to resort to persuasion to pinpoint the advantages of his products. Thus, the seller was doing the complete promotion job himself. Development of retail stores,
made
concerned
the
about
traders
to
attracting
be
more
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
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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.
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2.3 UNDERSTANDING ADVERTISNG
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 to an advertising message may not be within the marketer’s target market, and thus, may be an inefficient use of promotional funds. However, this is changing as new advertising technologies and the emergence of new media outlets offer more options for targeted advertising. Advertising also has a history of being considered a one-way form of marketing communication where the message receiver (i.e., target market) is not in position to immediately respond to the message (e.g., seek more information). This too is changing. For example, in the next few years technologies will be readily available to enable a television viewer to click a button to request more details on a product seen on their favorite TV program. In fact, it is expected that over the next 10-20 years advertising will move away from a one-way communication model and become one that is highly interactive. Another characteristic that may change as advertising evolves is the view that advertising does not stimulate 11
immediate demand for the product advertised. That is, customers cannot quickly purchase a product they see advertised. But as more media outlets allow customers to interact with the messages being delivered the ability of advertising to quickly stimulate demand will improve.
INFORM
PERSUADE
UNAWARE
AWARENES
REMIND INTENT
PURCHASE
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.
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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.
2.3.1 What Advertisement Is?
Advertisement is a mass communicating of information intended to persuade buyers to buy products with a view to maximizing a company’s profits. The elements of advertising are:
It is a mass communication reaching a large group of consumers.
It makes mass production possible.
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.
2.3.2 Advertising Objectives
Each advertisement is a specific communication that must be effective, not just for one customer, but for many target buyers. This means that specific objectives should be set for each particular advertisement campaign. Advertising is a form of promotion and like a promotion; the objectives of advertising should be specific. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. The objectives of advertising were traditionally stated in terms of direct sales. Now, it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. Advertising seeks to condition the consumer so that he/she may have a favorable reaction to the promotional message. Advertising
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objectives serve as guidelines for the planning and implementation of the entire advertising programme.
2.3.3 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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2.4 ADVERTISING DEFINITION AND CLASSIFICATION 2.4.1 Definition of advertising
The word advertising originates from a Latin word advertise, which means to turn to. The dictionary meaning of the term is “to give public notice or to announce publicly” .Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. The American Marketing Association, Chicago, has defined advertising as “any form of non-personal presentation or promotion of ideas, goods or services, by an identified sponsor.”
Print Media Print media is a very commonly used medium of advertising by businessman. It includes
advertising through newspaper, magazines, journals, etc. and is also called press advertising. a) Newspapers You must have read Newspapers. In our country newspapers are published in English, Hindi, Tamil and various other languages. These are the sources of news, opinions and
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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.
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 every day.
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 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,
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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.
Electronic Media
This is a very popular form of advertising in the modern day marketing. This includes Radio, television and Internet.
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.
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It is also useful to illiterates, who can not read and write.
There are places where newspapers reading may not possible, but you can hear radio.
For example, you can hear radio while traveling on road or working at home; but you can not read newspaper. Similarly, while driving you can hear a radio but cannot read a newspaper.
Limitations
A regular listener may remember what he has heard. But, occasional listeners tend to forget what they have heard in Radio.
The message that any advertisement wants to communicate may not be proper as there is no chance to hear it again immediately. There may be some other disturbances that distort communication.
In comparison to Television, Radio is less effective as it lacks visual impact.
Television Advertising
With rapid growth of information technology and electronic media, television has topped the list among the media of advertising. TV has the most effective impact as it appeals to both eye and the ear.
Advantages
It is most effective as it has an audio-visual impact.
With catchy slogans, song and dance sequences, famous personalities exhibiting products, TV advertising has a lasting impact.
With varieties of channels and programmes advertisers have a lot of choice to select the channel and time to advertise.
With regional channels coming up any person even illiterates can watch the advertisements and understand it by seeing and hearing.
Limitations
TV advertisements are usually expensive to prepare as well as to telecast.
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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 a t the doorsteps.
User can see the advertisement at their own time and as per their requirement.
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
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While moving on roads you must have seen large hoardings placed on iron frames or roof tops or walls. These are normally boards on which advertisements are painted or electronically designed so that they are visible during day or night. The advertisers have to pay an amount to the owners of the space, where the hoardings are placed. Posters
Poster are printed and posted on walls, buildings, bridges etc to attract the attention of customers. Posters of films which are screened on cinema halls are a common sight in our country.
Vehicular displays
You must have seen advertisements on the public transport like buses, trains, etc. Unlike hoardings these vehicles give mobility to advertisements and cover a large number of people.
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2.5 ADVERTISING PLANNING & FRAMEWORK Plans are nothing, planning is everything - Dwight D. Eisenhower The advertising management is mainly concerned with planning and decision making. The advertising manager will be involved in the development, implementation, and overall management of an advertising plan. The development of an advertising plan essentially requires the generation and specification of alternatives. Decision making involves choosing from among the alternatives. The alternatives can be various levels of expenditure, different kinds of objectives or strategy possibilities, and kinds of options with copy creation and media choices. Thus, the essence of planning is to find out the feasible alternatives and reduce them to decisions. An advertising plan reflects the planning and decision –making process and the decisions that have been arrived at in a particular product and market situation.
2.5.1 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:
Objectives and Target Selection Objectives in advertising can be understood in many ways. An important part of the objective is the development of a precise, disciplined description of the target audience. It is often tempting to direct advertising at a broad audience; but everyone is a potential customer. It is best to consider directing the advertising to more selected groups to develop stimulating copy. It is quite possible to develop several campaigns, each directed at different segments of the market, or to develop one campaign based on multiple objectives.
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Message Strategy and Tactics Messages strategy must decide what the advertising is meant to communicate – by way of benefits, feelings, brand personality, or action content. Once the content of the campaign has been decided, decisions must be made on the best-most effective-ways of communicating that content. The decisions, such as the choice of a spokesperson, the use of humor or fear or other tones, and the selection of particular copy, visuals, and layout, are what we call “message tactics”
Media Strategy and Tactics 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
The external factors in the planning framework are environmental, social and legal considerations. To a considerable extent, these exist as constraints on the development of an advertising plan and decision making. In developing specific advertisement, there are certain legal constraints that must be considered. Deceptive advertising is forbidden by law. What is deceptive is often difficult, because different people can have different perceptions of the same advertisements. Thus, an advertiser who attempts to provide specific, relevant information must be well aware of what constitutes deception in a legal and ethical sense and of other aspects of advertising regulation.
Even more difficult consideration for people involved in the advertising effort is broad social and economic issues as stated below.
Does advertising raise prices or inhibit competition?
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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.
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2.6 CONSUMER BEHAVIOUR Possibly the most challenging concept in the marketing is to deal with understanding the buyer behaviour. The attitude of Indian consumers has undergone a major transformation over the last few years. The Indian consumer today wants to lead a life full of luxury and comfort. He wants to live in present and does not believe in savings for the future. An important and recent development in India’s consumerism is the emergence of the rural market for several basic consumer goods. The Indian middle class has provided a big boost to the consumer culture during the recent past and it is hoped that their buying behaviour will continue to change in the coming future. Due to fast growth of the services sector per capita income of people of India is also increasing. The number of middle class is increasing due to another fact that people are fast shifting from agriculture to the services and industry sector where growth prospects are reasonably high as compared to the agriculture sector which is showing slow growth.
The consumption pattern of a country depends on liberalization of economic policies, buying habits of the younger generation, financial independence at a young age, increase in number of nuclear families and increase in media exposure of the people. The tastes and preferences of the current generation are changing rapidly. The current generation does not mind paying extra for better facilities and ambience. Another major factor that has led to increased consumerism is the growth of credit culture in India. The Indian consumer does not feel shy to purchase products on credit and pay tomorrow for what they use or buy today. This tendency has led to a tremendous increase in purchase of homes, cars, two-wheelers and consumer goods. The market for luxury products in India is also climbing at an astonishing rate as compared to a decade ago when it was almost negligible. The reason behind this is that the purchasing power of people of India is rising very steeply. The Indian consumer today is highly aware about the product, price, quality and the options available with him. The purchasing is done by keeping all these factors in
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mind. Today, price is not the only consideration as it was a few years back when prices played a major role in purchasing. Marketers are trying hard to capture this ever increasing Indian middle class as they form the b ulk of Indian consumers. 2.6.1 Why study consumer behavior?
WHY do some companies perform more profitably than others, even though they compete for the same customers, have to pay the same wages, and are subject to the same regulations? One major reason commonly advanced is that some companies are better than others at developing products and services in which their customers see a high value relative to competing products and relative to the price. Developing products in which customers will see a high value requires, in turn, a good understanding of customers what they want, how they buy, what determines whether they will be satisfied with a product or service. A company that continuously tries to understand its customers and uses that knowledge in developing products and services is also said to be market oriented. It has been shown that companies that are more market oriented are generally more profitable. The customers that companies deal with vary widely in nature. Often, customers are other manufacturing companies, as when a manufacturer of lamps sells them to Volkswagen, which builds them into its cars. In many other cases, the customer is a trading company, as when a Swedish furniture producer sells to an import company on the German market or when a manufacturer of frozen vegetables sells to a large supermarket chain. A few manufacturing companies also sell directly to consumersfor example, by mail order or via the Internet. Even though most companies do not have consumers as their immediate customers, the analysis of consumer behaviour is a major topic in marketing. The reason is that most products eventually end up in private households, even though they may pass various steps on their way from the producer to the consumer. Volkswagen sells its automobiles to consumers, including the lamps it received from its supplier; the German importer sells the Swedish furniture to a furniture retailer, who sells it to consumers, and the supermarket chain sells the frozen vegetables to consumers. Producers and traders form
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vertical chains or networks, also called value chains, and the consumer appears as an ‘end-user’the one who eventually uses or consumes the products and services. Understanding consumer behavior is, therefore, important not only for those who sell to consumers directly, like retail companies, but also for all factors preceding the retailer in the value chain. The value that the consumer perceives in a product sets the limit for what all others in the value chain can get out of their activities Many producers have learnt the importance of understanding consumer behaviour the hard way. In the 1960s a number of industrial bakeries in Denmark started to export a product that became known as Danish Butter Cookies-small cookies in colourful tin boxes featuring pictures of the Little Mermaid, the Danish Royal Guard, and the like. The product was an immediate success in markets such as Germany and the UK, because consumers perceived it as a high-value product that could be used, amongst other things, as a gift. Initially, the product was sold from the Danish producers to importers on the export markets, who then resold it to retailers. Later, the Danish producers thought that it might be more profitable to sell the product directly to a retailer, and found amongst others the German discount chain Aldi as a customer. In the ensuing price war, prices dropped and consumer perception of the product changed from a high-value product to a cheap discount item. The Danish producers have repeatedly tried to develop new products to repeat the earlier success, but little has come out of that. Today, producing butter cookies is a problematic business in Denmark, even
though the whole world
knows the product. How could that happen? Part of the explanation is that the producers thought mainly in terms of their immediate customers and not in terms of the end-usersthe consumers who end up munching the cookies. Producers did not understand that finding a retail customer is not only a question of getting good deals with high volume, but also a question of positioning the product in the minds of the consumer. And when they tried to develop new products to replace the declining one, they found that they did not know very much about what consumers want when they buy cookies. 2.6.2 Customers versus Consumers
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The term ‘customer’ is specific in terms of brand, company, or shop. It refers to person who customarily or regularly purchases particular brand, purchases particular company’s product, or purchases from particular shop. Thus a person who shops at Bata Stores or who uses Raymonds clothing is a customer of these firms. Whereas the ‘consumer’ is a person who generally engages in the activities - search, select, use and dispose of products, services, experience, or ideas.
2.6.3 Consumer Motives
Consumer has a motive for purchasing a particular product. Motive is a strong feeling, urge, instinct, desire or emotion that makes the buyer to make a decision to buy. Buying motives thus are defined as ‘those influences or considerations which provide the impulse to buy, induce action or determine choice in the purchase of goods or service. These motives are generally controlled by economic, social, psychological influences etc. Consumer behaviour reflects the totality of consumers decisions with respect to the acquisition, consumption and disposition of goods, services, activities and ideas by human decision making units. Consumer behaviour means more than just how a person buys tangible products such as bath soap, digital music players and automobiles. It also includes consumer s use of services, activities and ideas such as going to the doctor, ‟
visiting a theme park, etc.
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2.7 FACTORS AFFECTING CONSUMER BEHAVIOUR Consumer behavior is affected by a lot of variables, ranging from personal motivations, needs, attitudes and values, personality characteristics, socio-economic and cultural background, age, sex, professional status to social influences of various kinds exerted by family, friends, colleagues and society as a whole. The combinations of these various factors produce a different impact on each one of us as manifested in our different behaviour as consumers. The various factors that affect buying behaviour of in rural India are:
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Environment of the consumer - The environment or the surroundings, within which the
consumer lives, has a very strong influence on the buyer behaviour, exampless. Electrification, water supply affects demand for durables.
Geographic influences - The geographic location in which the consumer is located also
speaks about the thought process of the consumer. For instance, villages in South India accept technology quicker than in other parts of India. Thus, HMT sells more winding watches in the north while they sell more quartz watches down south.
Place of purchase - (60% prefer HAATS due to better quality, variety & price)
Companies need to assess the influence of retailers on both consumers at village shops and at haats.
Creative use of product – Example- Godrej hair dye being used as a paint to colour
horns of oxen, Washing machine being used for churning lassi. The study of product end provides indicators to the company on the need for education and also for new product ideas.
2.8 CULTURAL FACTORS INFLUENCING CB Cultural factors exert the broadest and deepest influence on consumer behaviour. The marketer needs to understand the role played by the buyer's culture. Culture is the most basic element that shapes persons wants and behaviour. In India, there are so many different cultures, which only goes on to make the marketer's job tougher. Some of the few cultural factors that influence buyer behaviour are:
Product (colour, size, design, and shape): There are many examples that support this
point. For example, the Tata Sumo, which was launched in rural India in a white colour, was not well accepted. But however, when the same Sumo was re-launched as Spacio (a different name) and in a bright yellow colour, with a larger seating capacity and ability to transport good, the acceptance was higher. Another good example would be Philips 29
audio systems. Urban India looks at technology with the viewpoint of the smaller the better. However, in rural India, the viewpoint is totally opposite. That is the main reason for the large acceptance of big audio systems. Thus Philips makes audio systems, which are big in size and get accepted in rural India by their sheer size.
Social practices : There are so many different cultures, and each culture exhibits different
social practices. For example, in a few villages they have common bath areas. Villagers used to buy one Lifebuoy cake and cut it into smaller bars. This helped lifebuoy to introduce smaller 75-gram soap bars, which could be used individually.
Decision-making by male head : The male in Indian culture has always been given the
designation of key decision maker. For example, the Mukhiyas opinion (Head of the village), in most cases, is shared with the rest of the village. Even in a house the male head is the final decision maker. In rural areas, this trend is very prominent.
Changes in saving and investment patterns: From Gold, Land, to Tractors, VCR s, ‟
LCD TVs etc.
2.9 CHANGES IN MARKETING STTRATEGY With change in consumer buying behaviour the companies also made necessary changes in their marketing strategies. The changes include: •
Launching of premium products by companies to fulfil requirements of high class consumers
•
Since purchasing power of rural India has increased, the companies have started shifting their focus towards rural India to capture untapped rural market. This has reaped huge benefits for companies like in cases of PepsiCo, Coca Cola India and other FMCG companies.
•
Companies not only aim to sell their products but also aim to provide better after sales services to its consumers. For example companies have provisions to send their technicians to repair the cars struck at highways or other outer locations due to
30
technical failure or in case of a mishap. This improves the company s credibility and ‟
helps to build its customer base. Example: Ch eviot. •
Companies design their products on the basis of market segmentation so that they have products to suit every pocket and requirement.
•
Due to sharp growth in the communication sector, companies are providing many schemes and plans to attract customers. For example mobile service providers provide lifetime option and free calls to other mobile users under a specific plan of the company.
•
Due to fierce competition in the electronics market and people s willingness to ‟
purchase hi-tech products the rates of LCD and plasma TVs have been slashed by 25%-30%. Through this strategy electronic companies received very good response from the consumers in the recent past and were able to build a considerable market for their products. •
Indian consumers have developed a liking for foreign tours and holidays. This has led to development of many travel agencies that provide a planned foreign tour at a reasonable price. What is even more interesting is that the customer does not have to pay the amount in lump sum; instead, he has the facility to make the payment in monthly instalments according to his convenience.
•
Consumers of India have developed a tendency to save travel time. For such consumers low fare carriers are available that provide air travel facility at a very affordable price.
•
Consumers of India want better housing facilities. The construction companies are fulfilling this requirement of consumers by providing them luxurious houses, exquisite interiors, round the clock water and electricity supply, full time security, club house, gymnasium, etc. within the premises.
•
Indian consumers are increasingly becoming aware of the importance of health and hygiene. Hence companies are making products to suit their health like low calorie, low fat food. As far as hygiene is concerned companies have fully mechanized their plants to maintain hygiene and pack the food in such a way that it remains fresh for longer period of time and does not lose its nutritive value before consumption.
31
•
The need for internet is fast growing. To fulfill this need of consumers, mobile manufacturing companies are providing internet access facility on mobile phones. This has revolutionized the communication sector and provided a means of communication that was never ever in anybody’s dreams till a few years back.
•
Indian consumer s liking for credit is also increasing rapidly. Hence many financial ‟
institutions have come into existence in India and are flourishing. Banks have also become liberal in their loan and credit policies.
2.10 FUTURE TRENDS IN CONSUMER BEHAVIOUR Some emerging future trends of buying behaviour of Indian consumers are: •
The new generation will prefer brands that are launched during their growing up years. They will not prefer brands that are very old in the market. This will make it easier for new brands to cement their place in the market and run successfully.
•
The new generation will possess more risk taking capability and their previous generations. They will be willing to try out new careers, new ideas and new ways of doing things.
•
Indian consumers will be more logical in their thinking and foreign brands will not only be considered as the standard of quality. Each brand, be it Indian or foreign, will be judged on its merit.
•
The middle and lower class consumers buying behaviour will change and they may behave as if they are rich.
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•
The contribution of women in decision making will increase with growing number of nuclear families, educated women and working women. The number of middle class working women will rise sharply. This will lead to introduction of women oriented products that may range from insurance products to vocational education.
•
Tomorrow’s consumer will focus more on technology and credit purchase.
•
Number of nuclear families will increase.
•
Health care will become very important in the coming years.
CHAPTER 3 33
3.1 TELEVISION ADVERTISEMENT A television advertisement or television commercial–often just commercial or TV ad (US), or advert, commercial, advertisement or simply just ad (UK/US), or ad-film (India)–is a span of television programming produced and paid for by an organization that conveys a message. Advertisement revenue provides a significant portion of the funding for most privately owned television networks. The vast majority of television advertisements today consist of brief advertising spots, ranging in length from a few seconds to several minutes. Advertisements of this sort have been used to promote a wide variety of goods, services and ideas since the dawn of television. The effect of commercial advertisements upon the viewing public has been so successful and so pervasive that in some countries, the United States in particular, it is considered impossible for a politician to wage a successful election campaign without the purchase
34
of television advertising. In other countries, such as France, political advertising in television is heavily restricted, and some, like Norway, completely ban it 3.1.1 Characteristics
Many television advertisements feature catchy jingles (songs or melodies) or catchphrases (slogan) that generate sustained ideas, which may remain in the minds of television viewers long after the span of the advertising campaign. Some of these ad jingles or catch-phrases may take on lives of their own, spawning gags or "riffs" that may appear in other forms of hens, such as comedy movies or television variety shows, or in written media, such as magazine comics or literature. These long-lasting advertising elements may be said to have taken a place in the pop culture history of the demographic to whom they appeared. Advertising agencies often use humor as a tool in their creative marketing campaigns. In fact, many psychological studies have attempted to demonstrate the effects of humour and their relationship to empowering advertising persuasion.
3.1.2 An animated TV advertisement
Animation is often used in advertisements. The pictures can vary from hand-drawn traditional animation to computer animation. By using animated characters, an advertisement may have a certain appeal that is difficult to achieve with actors or mere product displays. Animation also proofs the advertisement from changes in fashion that would date it. For this reason, an animated advertisement (or a series of such advertisements) can be very long-running, several decades in many instances. Notable examples are the series of advertisements for Kellogg's cereals, starring Snap, Crackle and Pop and also Tony the Tiger. The animation is often combined with real actors. Animated advertisements can achieve lasting popularity. In any popular vote for the most memorable television advertisements in the UK the top positions in the list invariably include animations, such as the classic Smash and Creature Comforts advertisements.
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Other long-running ad campaigns catch people by surprise, or even tricking the viewer, such as the Energizer Bunny advertisement series. It started in the late 1980s as a simple comparison advertisement, where a room full of battery-operated bunnies was seen pounding their drums, all slowing down...except one, with the Energizer battery. Years later, a revised version of this seminal advertisement had the Energizer bunny escaping the stage and moving on (according to the announcer, he "keeps going and going and going..."). This was followed by what appeared to be another advertisement: viewers were oblivious to the fact that the following "advertisement" was actually a parody of other well-known advertisements until the Energizer bunny suddenly intrudes on the situation, with the announcer saying "Still going..." (the Energizer Battery Company's way of emphasizing that their battery lasts longer than other leading batteries). This ad campaign lasted for nearly fifteen years.
3.2 THE PAST IN INDIA India witnessed its first television clipping 50 years ago. Since then, rest is history. Today India is amongst the world’s biggest television markets. Approximately half of all Indian households own a television today. From a single television channel, over 300 satellite TV channels are broadcasted today. 3.2.1 Beginning
Doordarshan had a modest beginning with the experimental telecast starting in Delhi on 15 September 1959 with a small transmitter and a makeshift studio. The regular daily transmission started in 1965 as a part of All India Radio. The television service was extended to Bombay and Amritsar in 1972. Till 1975, seven Indian cities had television service and Doordarshan remained the only television channel. Television services were separated from radio in 1976. Each office of All India Radio and Doordarshan were
36
placed under the management of two separate Director Generals in New Delhi. Finally Doordarshan as a National Broadcaster came into existence. National telecasts were introduced in 1982. In the same year, color TV was introduced in the Indian market with the live telecast of the Independence Day speech
by then PM Indira Gandhi on 15
August 1982, followed by the 1982 Asian Games. 3.2.2 TV Programs
The 80s was the era of Doordarshan with shows like Hum Log (1984), Buniyaad (198687) and comedy shows like Yeh Jo Hai Zindagi (1984), Mythological dramas like Ramayan (1987-88) and Mahabharat (1989-90) glued millions to Doordarshan and later on Bharat Ek Khoj, The Sword of Tipu Sultan and Chandrakanta. Hindi film songs based programs like Chitrahaar, Rangoli, Superhit Muqabla crime thrillers like Karamchand, Byomkesh Bakshi. Shows targeted at children include Dada Dadi ki Kahaniyan, Vikram Betal, Malgudi Days, Tenali Rama.
3.2.3 Post Liberalisation Television
The central government launched a series of economic and social reforms in 1991 under PM Narasimha Rao. Under the new policies the government allowed private and foreign broadcasters to engage in limited operations in India. Foreign channels like CNN, Star TV and domestic channels such as Zee TV and Sun TV started satellite broadcasts. 3.2.4 Cable television
The cable TV industry exploded in the early 1990s when the broadcast industry was liberalized, and saw the entry of many foreign players like Rupert Murdoch's Star TV Network in 1991, MTV, and others. Sun TV (India) was launched in 1992 as the first private channel in South India. Today it has 20 television channels in the four South Indian languages. Five new channels belonging to the Hong Kong based STAR TV gave Indians a fresh breath of life. MTV, STAR Plus, BBC, Prime Sports and STAR Chinese
37
Channel were the 5 channels. Zee TV was the first private owned Indian channel to broadcast over cable. A few years later, CNN, Discovery Channel, National Geographic Channel made its foray into India. Star expanded its bouquet introducing STAR World, STAR Sports, ESPN and STAR Gold. Regional channels flourished along with a multitude of Hindi channels and a few English channels. By 2001 HBO and History Channel were the other international channels to enter India. By 2001–2003, other international channels such as Nickelodeon, Cartoon Network, VH1, Disney and Toon Disney came into foray. In 2003 news channels started to boom. Today, India has over 130 million homes with television sets, of which nearly 71 million have access to cable TV. The overall Cable TV market is growing at a robust 8-10%.
3.2.5 Latest Technologies
Conditional access system (CAS) is a digital mode of transmitting TV channels through a set-top box (STB). The transmission signals are encrypted and viewers need to buy a settop box to receive and decrypt the signal. The STB is required to watch only pay channels. Direct to Home (DTH) is defined as the reception of satellite programs with a personal dish in an individual home. Internet Protocol TV launched only in some cities around 2006-2007 by MYNL/BSNL later Expands to many urban areas and still expanding. Private Broadband provider Bharti Airtel also starts its IPTV service in Delhi, NCR region. 3.2.6 TV Industry
Today, the Indian TV Industry is running parallel to the big screen. With the mushroom growth of daily sops the entire TV viewing is revolutionized. The serials like Amanat, Kyuki Saas Bhi Kabhi Bahu Thi, Tara, Kasauti Zindagi Ki, Kahani Ghar Ghar Ki, Ghar Ek Mandir redefined the saga of tele viewing. Then comes the age of reality TV, the programs like Kaun Banega Carorepati, MTV Rodies, Spiltsvilla, Fear Factor, Big Boss, Is Jungle Se Mujhe Bachao, Sach Ka Samna and Rakhi Ka Swamvar. These programs have witnessed the highest TRPs and even stormed a lot of controversies. A total
38
estimation of the TV industry annual budget is over 1 lack crores. Since 2002 News channels have grown exponentially. Today the news channels have become a significant market and their no is catching the entertainment channels fast. They have become a super package where they not only show the news bulletins but have the entire list of programs where they have special hours for Talk shows, debates, Exit Polls, Film critics, Program clippings and masala news packages like Sansani, Vishesh, Kaal Kapal Mahakal etc. A no. of Sports channels have also come up and Channels like Movie on Demand and Music on demand are also favorites amongst the viewers.
3.2.7 TV Advertisements
We all know those beautiful ads of Nirma, Surf and Bajaj. But now, the TV commercial industry has moved through leaps and bounds. With the advent of latest technologies and huge customer markets, almost everything is being advertised today by big names of the Bollywood industry. It has estimated that TV commercial industry is about 400-500 crores. Starting with 41 sets in 1962 and one channel (Audience Research unit, 1991) at present TV in India covers more than 70 million homes giving a viewing population more than 400 million individuals through more than 100 channels. A large relatively untapped market, easy accessibility of relevant technology and a variety of programs are the main reasons for rapid expansion of Television in India. The Indian TV has crossed a 50 year mark and instead of getting old and mature it is still young and immature. Sometimes, there is a need of a censor board as the contents go too vulgar and even un-regularized. The Indian TV needs to hold the responsibility of showing good content which should be a value added for the society and acts as the responsible medium for the betterment of the society.
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3.3 IMPORTANCE OF TV COMMERCIAL Doordarshan now relies heavily on commercials for revenue. Commercial breaks occurred every ten or twelve minutes during broadcasting. Popular serials or programmes like Chandrakanta were heavily sponsored. For example, a few of the sponsors that would be shown at the start of the programme and during commercial breaks included products by Hindustan-Lever, Proctor and Gamble, Colgate-Palmolive and Cadburys. The names of products along with the sponsor flash up on the screen, before, during and after each episode. The hour long serial often had around five commercial breaks – mainly for the products of the sponsoring companies. McDowell (158) maintains that 40
colour televisions were introduced into India because they were considered to have greater commercial appeal. It was also surprising to see how many commercials used clothing styles and contexts that would be very familiar in Britain. Women were shown wearing short dresses or skirts and were depicted as having boyfriends. Western music is also often used, e.g. one advertisement for the soap Nirma (Hindustan-Lever) used a Roy Orbison song Pretty woman, though Hinglish is more commonly used – a mixture of Hindi and English. Another advertisement for Heineken portrays football fans who are transfixed watching football and drinking bottles of Heineken.
These commercials are often attractive and parents turned on the television before a programme started in order to watch commercials. Many people we lived with liked the television commercials and avidly watched them. Some people thought they were better than the programmes. A schoolchild observed that.
Television commercials are better made and of better quality than the state programmes. They are more innovative and interesting and give you food for thought. The standard of advertisements on television has improved a lot o ver the past few years.’
Everyone likes to watch the advertisements as they provide people with information, and television shows us what products are available. It makes us aware of things to buy. The poorer people in this village who are not literate enjoy watching television as they can understand it. They especially like to see advertisements but they cannot afford to buy many of the things that are shown. Television commercials give you the correct price for things and benefit us a lot.’
Everyone sees the advertisements on television and they can try to search out what is good from the advertisements. We can determine what can be used for our betterment from advertisements. You can learn how to behave and act from such things.’
Hence television commercials were used to decide not only what products to buy, but how to behave. People in even the remotest areas could see what was appropriate and
41
acceptable. Hence, people were taking on board some aspects such as dressing in a similar manner to people in the commercials, whilst also maintaining some aspects of Indian culture.
3.4 IMPACT OF TV AD The impact of television is vital because of its enormous potential as an audio-visual communicator. Television (T.V.) enables the creative man to communicate by combining motion, sounds, words, color, personality and stage setting to express and demonstrate ideas to large and widely distributed audience.
T.V. advertisements usually play a role in either introducing a product reinforcing the familiarity to the product and also convincing to purchase the product. Advertisements
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are among the most visible of the marketing strategy and have been the subject of a great deal of attention in the last ten to fifteen years. Advertisement cannot only change emotions but give subliminal message. Advertising today seems to be everywhere and ever present exerting a far reaching influence on the daily lives of people. Advertisements develop self-concepts in order to induce purchase decisions. Television advertising employs attention grabbing trick such as catchy and pleasing music, lyrics, Jingles, humor and repeated messages. The impact of the advertisements is more on television than the print media or radio.
A study on T.V. advertisements has expressed that among the media, the impact of television advertisement on social behavior, including purchasing behavior was the greatest. The reason being that television has charm, instantaneous transmission capability and universality of appeal. Television advertising can have a powerful influence on consumption and behavior. Advertising seen is measured by looking at ‘impacts.’ Impacts provide a measure of advertising exposure. One impact is equivalent to one member of the target audience viewing one commercial spot. Around one in five of all of the T.V. advertisement seen is for a core category product. Having realized the stupendous effect T.V. advertising has not only on the purchasing pattern but also on the total lifestyle was felt to be changes as a impact of T.V. advertisements.
3.4.1 Advertising causing an alarming change in Indian milieu
One revolution that advertisements have brought about in India is certainly that of reengineering the mindset. In a postmodern era, which also is a sort of post-god era as well, advertisement agencies are redefining the laws of living for Indians. They are quick to assess that a society that has long lost its sense of direction owing much to the loss of leadership at the top, are promptly replacing the heroes of the past – the ones who now appear boring to the modern generation – with their own versions of heroism. Obviously it is the star either of the celluloid or of the cricketing ground that befittingly fulfills the
43
prerequisites of the hero for a society whose sense of destiny seems to be dwindling at a fast pace.
There is no surprise therefore that in place of Gandhi, Vivekanand or Mother Teresa – or all those who gave away their lives for a higher, nobler cause – it is Amitabh, the millennium star, Sharukh, the king khan , or Sachin, the cricketing genius who suggest that the word hero is only metaphorical and people should not expect anything real from their heroes.
Naturally for an anxiety ridden and stress driven society, the TV screen spells a soothing escape from their own inadequacies and a harried existence and what they want is something simply entertaining or duly sensational to drown their own frustrations in the shadowy reality of the world. Therefore, rather than engaging people in a meaningful discussion, the idiot box is busy in enticing their viewers in seeing a world that arises essentially out of their make-believe assumptions.
Thus, we see the millennium star dancing in comic exuberance and suggesting “Kucch Meetha Ho Jaye” to his audience for it is the time to celebrate the success of Pappu – the quintessential, middle aged, balding nincompoop, who finally has managed to pass his matriculation.
Since our millennium star does not mind suggesting that Cadbury
Chocolate is as good as Meetha – normally some sweets in typical Indian context – people are led to believe that they can as well celebrate their festivals and success with chocolate. Hence it is through advertisements that the good-old sweets are getting replaced by chocolates.
Advertisements are playing a crucial role in defining not only the patterns of understanding but they are focused also on changing the reactions such perception arouses in people. Good at reading the pulse of the masses, they are replacing the good old passions with new found obsessions. Hitting right at the adolescent adrenaline comes the advertisement announcing : “Nayee Umang Nayee Tarang, Krish Ke Sang”. Now we all know that Krish is a famous movie that is ardently watched by young boys and girls.
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The Krish referred to here in the advertisement however is a Pan Masala. By selecting a name familiar to people being the title of the movie, the advertiser is able to strike home the affinity of the product with the masses. Since they know that it is mostly kids and youngsters who are charmed by such movies, it seems they are trying to bewitch them. However, since it is not lawful to sell intoxicating substance to youngsters, they write on the border of the advertisement the instruction “Not for Minors”.
Quite deftly hence the advertisement is able to mesmerize the present as well as the prospective customers for their product.
Branding their product after a popular movie,
they successfully strike a cord of familiarity with their present as well as prospective customers. However, as they are supposed to play safe legally, they leave a footnote which renders their ploy safe and smart.
Once more they target the soft minds – those who either are ignorant of the games played on them – or the ones whose sensibilities are plaint enough to be moulded to any formative construction. Somehow becoming a celebrity is seen as everyone’s catch these days. And in this make-believe world of ours, being with a celebrity is also looked up as being a celebrity in itself. Here again, the growing boys and girls display a rather strong zeal to be with the celebrities. Therefore, the advertisement for Tata Indicom lures them to be with celebrities from the celluloid and suggests coolly : Ajay, Kajol Aur Aap. Since it is now known to most of us – thanks especially to television again where the breaking news usually is who is marrying whom – that Ajay and Kajol are a family now, this invitation has the lure to take the reader into the cozy private comfort of a family fold. This advertisement does not fascinate only the youngsters but many grown-ups too might feel like sharing with a family of celebrities receive you, suggestions being that the buyer of Tata Indocom is no less than a celebrity himself.
Advertisements are not only suggestive of an alternative life in action, they are attempting also to convert the very ethos and concept of a society which now ostensibly manifests the tendencies and attitudes that are capitalistic in tone and tenor.
They
therefore focus not on what does good but what looks and feels good physically and
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sensually. Consequently the idea of living big as propagated by the Infinity Club is centered on Winning in the Pool against Mr Sharma, followed by Cocktail Celebration in the Lounge Bar . It is not all that Infinity Club offers – it has other, may be infinite, lucrative offers which includes sharing Some Special Moments with Some Special Friends at a Multi - cuisine Restaurant, - something that again spells sensuality for the reader.
If nothing of these works, they end their message hammering a stupendous idea in the mind : Zindagi Milti Hey Ek Bar, Jiyo Shan Se … Live Big . Obviously, the idea of living big is confined to sheer physicality as the advertiser shares proudly the belief of not believing in anything else but the physical and temporal with the reader. It is because of this ideological shift, which refuses to recognize the world of emotion, or intellect that all efforts are made to satisfy only the sensuous and the sensual urges for that is all that we are supposed to be having with us.
However, since being a human means not just existing like any other creature, but providing a meaningful construct to the existence such defined, living big physically or materially becomes an alternative method of appending meaningful assumptions to our otherwise meaningless, trite and drab existence. This strategy stems from a belief that life comes once and not forever, living it with metaphors of eternity and infinity is something that can give to it the connotations of meaningful existence. The advertisements today therefore are not just confining themselves to promoting the sale of a product; they are forcing a paradigm shift in the thinking patterns of the people. Hence a bold suggestion that since it is no longer possible to attain salvation through mind and soul let us achieve infinity by living big may be just at a physical level. 3.4.1 Controversy
Much of the controversy over advertising stems from the ways many companies use it as a selling tool and form its impact on society’s tastes, values and lifestyles. Critics argue that children are especially vulnerable to advertising because they lack the experience and knowledge to understand and evaluate critically the purpose of persuasive advertising
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appeals. However the concern over advertising and other forms of promotion directed at children is also receiving greater attention due to the increasing viewing options children have as a result of the growth of cable television. Research has also shown that children do not perceive the selling intent of commercials, and cannot distinguish between reality and fantasy. A heated debate has ensued, since some of the critics charge that advertising to them is inherently unfair and deceptive and should be banned or severely restricted.
This issue received a great deal of attention in 1979 in America. And as an outcome of this FTC report recommended banning all TV advertising for any product directed to or seen by audiences composed largely of children under age eight because they are too young to understand the selling intent of the advertising. It was debated intensely. Some favored regulations because of kids’ inability to evaluate advertising messages and make purchase decisions. The others opposed regulation because members of that group believed many self- regulatory mechanisms already existed and the appropriate places for restricting advertising to children was in the home. The group that holds the opinion that advertisers have a special responsibility to protect children from their own susceptibilities; says that advertisers should not stimulate unreasonable expectations of product or performance directly or indirectly by advertising. They must communicate accurately and truthfully knowing that children may learn practices from advertising that can affect their health or well-being. Moreover, they should bank on the positive aspects of life such as friendship, honesty, kindness, respect etc.
Though some feel that the government is responsible for protecting children from the potentially harmful effects of advertising and other forms of promotion, we should stop bothering ourselves about regulations, since it comes under the domain of government. But we can always hold and maintain the other aspect of it very strongly that we being parents are ultimately responsible for teaching our kids what to see and how to interpret.
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3.5 TVC – JAN – SEPT 10 ANALYSIS Key findings:
TV ad volumes have seen growth of 24 per cent during Jan-Sep '10 over Jan-Sep '09.
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•
High advertising share of Food & Beverages sector on TV during Jan-Sep '10.
•
Toilet Soaps was the top category on TV during Jan-Sep '10.
Hindustan Unilever Ltd occupied the top position in the top 10 advertisers list on TV during Jan-Sep '10. F&B •
During Jan-Sep '10, TV advertising of Food & Beverages sector has seen growth of 18 per cent compared to Jan-Sep '09.
•
Aerated soft drinks category has the maximum share of overall Food & Beverages sector on TV ad pie during Jan-Sep '10.
•
Coca Cola India Ltd was the top advertiser under Food & Beverages sector advertising on TV during Jan-Sep '10.
Personal Care/Personal Hygiene
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•
48 per cent growth in TV ad volumes of Personal Care/Personal Hygiene sector during Jan-Sep '10 compared to Jan-Sep '09.
•
Toilet Toilet soaps soaps was the most most advert advertise ised d categor category y under under Person Personal al Care/P Care/Pers ersona onall Hygiene sector on TV during Jan-Sep '10.
HUL was the number one advertiser of Personal Care/Personal Hygiene brands advertised on TV during Jan-Sep '10 Services •
TV adver adverti tisi sing ng of serv servic ices es sect sector or grew grew by 30 per per cent cent duri during ng JanJan-Se Sep p '10 '10 compared to same period in 2009.
•
DTH service providers occupied the first position in the list of Top 10 categories of services sector on TV during Jan-Sep '10.
Tata Sky Ltd topped the advertisers ad vertisers list of services sector on TV during Jan-Sep '10.
Snippets of Top 3 sectors on TV
Volume growth of F&B sector on TV during Jan-Sep '10
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TV advertising of Food & Beverages sector has recorded growth of 18 per cent during Jan-Sep '10 compared to Jan-Sep '09.
Share of F&B categories on TV during du ring Jan-Sep '10
51
•
During Jan-Sep '10, top 3 categories of Food & Beverages sector on TV were aerated soft drink, milk beverages and chocolates.
•
Top 10 categories accounted for 71 per cent share of overall Food & Beverages sector TV ad pie during Jan-Sep '10.
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Top advertisers of F&B sector on TV during Jan-Sep '10
•
Coca Cola India Ltd, Cadburys India Ltd and Pepsi Co occupied the top 3 position in the Top 10 advertisers list of Food & Beverages sector on TV during Jan-Sep '10.
•
68 per cent share contributed by the Top 10 advertisers of Food & Beverages sector on TV during Jan-Sep '10.
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Volume growth of personal care/personal hygiene sector on TV
TV ad volumes of personal care/personal hygiene sector have seen growth of 48 per cent during Jan-Sep '10 compared to Jan-Sep '09.
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Share of personal care/personal hygiene categories on TV during Jan-Sep '10
•
More than 90 per cent share contributed by the Top 10 personal care/personal hygiene categories on TV during Jan-Sep '10.
Toilet soaps category with 36 per cent share led the advertising of personal care/personal hygiene sector on TV during Jan-Sep '10. Tooth Pastes and Fairness Creams with 15 per cent and 13 per cent share were at second and third place respectively in the list of Top 10 personal care/personal hygiene categories on TV during Jan-Sep '10.
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Top advertisers of personal care/personal hygiene sector on TV
•
HUL has the highest share i.e. 30 per cent of overall advertising of personal care/personal hygiene sector on TV, followed by Reckitt Benckiser (India) Ltd and Colgate Palmolive India Ltd each with 15 per cent share during Jan-Sep '10.
•
Top 10 advertiser advertiserss contribute contributed d for 86 per cent share of overall personal care/personal hygiene sector TV ad pie during Jan-Sep '10.
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Volume growth of services sector on TV during Jan-Sep '10
Compared to Jan-Sep '09, TV ad volumes of services sector has observed growth of 30 per cent during Jan-Sep '10.
57
Share of categories under services sector on TV during Jan-Sep'10
•
Top 3 categories of services sector i.e. DTH Service Providers, Properties/Real Estate and Internet Services General together contributed for 56 per cent share during Jan-Sep '10.
•
86 per cent share was contributed by the Top 10 categories of services sector on TV during Jan-Sep '10.
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Top advertisers of services sector on TV
•
Tata Sky Ltd, Sun Direct TV Pvt Ltd and Dish TV India Ltd were the top 3 advertisers of services sector on TV during Jan-Sep '10.
Top 10 advertisers share aggregates to 38 per cent of overall Services sector TV ad pie during Jan-Sep '10.
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3.6 RECENT TELEVISION CAMPAIGNS Storyboard: Fastrack Agency: Lowe Lintas Category: Apparel | Fashion and Lifestyle
The TVC opens with a long A bouncer stops a couple queue outside a discotheque from entering
The girl, a little irritated goes back in the car
She turns on the music
Picks up her shades and ...
Starts dancing with her friend outside the disc.
Soon the rest of the crowd joins in.
All wearing trendy sunglasses.
VO: Hip hop sun glasses from fastrack
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Storyboard: Cadbury Celebrations Agency: Ogilvy India Category: Confections | Snacks | Foods
The TVC opens with a young She quietly tiptoes her way girl packing her clothes in a out hurry and sobbing.
But slows down and stops when she sees a picture of her parents.
She looks at it for a few seconds and then rushes out
And with a sad face says ‘let’s go’
She sits in her boyfriend's car
The boy looking at the back As she turns, she gets seat tells her "yeh kuch kehna astonished to see her family chahte hain" sitting there
Her father politely says "shubh kaam karne ja rahi ho, kuch meetha nahi khaogi. Kaam acha hoga"
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The TVC opens with a young She quietly tiptoes her way girl packing her clothes in a out hurry and sobbing.
But slows down and stops when she sees a picture of her parents.
VO: Shubh arambh kuch meetha ho jae.
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Storyboard: Boroplus Agency: Everest Brand Solutions Category: Cosmetics | Toiletries | Personal care
The TVC opens with a shot of a mirror with a mountain range in the background
A man appears in the mirror In the next shot a Rajasthan applying a white 'teeka' on native applies white teeka on his face his face
The man says "desh ke 50 Crore log Boroplus People from different walks antiseptic cream ka safed of life with prominent teeka lagate hain, taki landmarks of India in the twacha ko sardi ki nazar na background also do the same lage". Super : Boroplus
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Storyboard: SpiceJet Agency: Contract Advertising Category: Travel | Tourism
The TVC opens with a pressure cooker whistle waking up a woman.
She prepares dough and Half asleep, she prepares a chops onions in the middle of hot meal for her husband. the night.
Her husband comes home from a long flight.
His wife angrily keeps the He sits at the dining table and plate on the table and leaves smells the food. without saying a word.
Super: Garma garma bharatiya khana Ab Spice Jet pe uplabdh
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Storyboard: Videocon d2h Agency: McCann Erickson Category: Consumer Durables
The TVC opens with a man in a showroom gazing at a television
But gets distracted when a A salesman comes and starts young lady enters the explaining its features showroom.
He leaves the man and attends to the lady.
The man just stares at the television and stays there.
He searches for his mobile Looking at the television he but realizes he is not carrying gets an idea one.
He mistakenly gets locked in the showroom.
He brings together all the boxes and makes a sofa out of it.
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The TVC opens with a man in a showroom gazing at a television
But gets distracted when a A salesman comes and starts young lady enters the explaining its features showroom.
And spends the night exploring the television.
In the morning when the salesman opens the showroom...
The man, instead of getting angry at the salesman, thanks him for opening his eyes
And continues by explaining to the audience... "Videocon Satellite TV, No need of a set top box" Super: Videocon d2h
Storyboard: Spice Mobiles Agency: Ogilvy India Category: Services
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The TVC opens with a girl sitting on a train.
She is engrossed in watching When suddenly her phone a thriller movie on her rings and she gets scared. mobile.
She picks up the phone and gets annoyed to hear the voice of a telesales person.
VO: Pesh hai Spice video phone, big battery ke sath. Ab picture dekhiye bina rukavat.
She continues watching the movie when a fellow passengers arm almost falls on her, scaring her again.
Storyboard: Idea Cellular Agency: Lowe Lintas Category: Telecom
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The TVC opens with four friends sitting at a tea stall, they are all quiet and look sad.
The vendor, a mute man asks He tells them that all four of his little help the reason for them have got new jobs. their silence.
He continues by saying that they're all going away, "a ...And that they are worried, Marathi is going to Kolkata, a as they don't know the On hearing this, the vendor Bengali to Kerala, Malayali language of the places they gets an idea. to Haryana and a Haryanavi are going to. to Mumbai"
Then we see all four friends one by one reach their respective destinations.
With an idea from a mute They are shown speaking to man their problems are each other taking assistance solved and they go back to and getting their way around. thank the vendor.
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The TVC opens with four friends sitting at a tea stall, they are all quiet and look sad.
The vendor, a mute man asks He tells them that all four of his little help the reason for them have got new jobs. their silence.
The vendor through sign language tells them "to speak you don't need to know a language".
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Storyboard: Videocon Agency: MWG TAG Ideation Category: Telecom
TVC opens with a nerd engrossed in his mobile phone.
His dad is sleeping in the Then we see a shot of his same room, thinking the son mobile displaying pictures of is studying. He tells him to women... sleep.
But the boy tells him "bus papa ek lagan hai ander se" ...
Suddenly his balance turns nil ... and waits for a picture on and his mobile starts flashing his mobile to download Zero balance.
VO: Taki aapka signal kabhi The boy hallucinates about a break na ho, isiliye pesh hai girl on his mobile saying unlimited internet plans. "Signal main break plan leke Videocon Mobile services. dekh" Pakdo life ka har signal
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CHAPTER 4
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4.1 RESEARCH & ANALYSIS 4.1.1 Research Objectives
To understand impact on TV advertisements on consumers
4.1.2 Scope of Study
The scope of study is confined to know impact of TV advertisements on consumer
4.1.3 Time
The time duration of the project has been as follows: Secondary data collection was started from 19th sept to 27th sept 2010.
4.1.4 Geography
The geographical scope of the offline data collection was restricted to Mumbai city
4.1.5 Research methodology
Research is an art of scientific investigation. It is defined as “A careful investigation or enquiry especially through search for new facts in any branch of knowledge”. Research is a movement from the known to the unknown. It is actually a voyage of discovery. Research refers to the systematic method consisting of enunciating the problem, collecting the facts or data, analyzing the facts and reaching certain conclusions in the form of solutions towards the concerned problem.
4.1.6 Research design
A research design specifies the methods and procedures for conducting a particular study. Broadly speaking, there are 3 categories of research design – exploratory, descriptive and casual research.
An exploratory research focuses on the discovery of ideas and is generally based on secondary data. A descriptive study is undertaken when the researcher wants to know the characteristics of certain groups such as age, educational level, income, occupation, etc.
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A casual research is undertaken when the researcher is interested in knowing the cause and effect relationship between two or more variables.
The type of research used in this study is descriptive research. The study was structured and was rigid and its approach remained the same throughout the study. Research design is the blue print of the action for this study.
4.1.7 Following method was adopted during study •
Review of literature and take data from distributor to understand recent development
in the field. •
Defining objective of the study
•
Formation of questionnaire to capture primary data
•
Analysis and interpretation of primary data
•
Conclusion out of primary and secondary data
4.1.8 Primary data
Primary data consists of original information gathered for specific purposes at hand. These are gathered for a specific purpose or for a specific research project. Primary data was collected online and offline. Offline data collection was done from students as well as from general public.
4.1.9 Sampling technique adopted
The sampling technique used for offline survey was convenience sampling.
4.1.10 Tools and techniques adopted
Data was collected with the help of questionnaire. The questionnaire is of structured nondisguised type. The questions are of mixed type. The contact method used in the offline survey was personal interview method. The duration of each interview was 15 minutes. The researcher went to the students personally and asked the questions from the prepared questionnaire and the answers were noted down on the questionnaire.
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4.1.11 Sample size:
For offline survey sample size was 100
4.1.12 Limitations •
The study was based on perceptions, ideas and preferences of the respondents,
which are complex in nature and depends on the subjectivity of the individual •
The project Report was to be completed within a time period and this was another
constraint for the study
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4.1.13 Findings & analysis Demographics 58
60 50 40
42
30
In %
20 10 0 Male
Female
Out of the total surveyed, 42% respondents were male and 58% respondents were female Age group 60 52
50 40 30
24
In %
21
20 10
3 0 20-30
30-40
40-50
Above 50
The above figures show that 52% respondents were of age group 30-40 where as 24% respondents were of age group 20-30 and 21 % respondents were of age group 40-50
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How many hours do you watch TV in a day?
69
70 60 50 40 30 20
21
In %
10
6
0 1 hr
2 hr
4 hr
4 More than 4 hr
The survey reveals that 69% respondent watch television 2 hours in a day where as 21% respondent watch television 1 hour in a day
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During what time you watch television? 70
64
60 50 40 In %
30 20 10
18 12 6
0 Morning Afternoon
Evening
Night
64 % respondent watch television at evening time where as 18% respondent watch television in morning time. 12% respondent watch television at night
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How often do you come across advertisement? 100 90 80 70 60 50 40 30 20 10 0
98
In % 1
1
Once in aTwice in day a day
More than twice in a day
98 % respondents come across advertisement more than twice in a day
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Do you rely on television advertisement? 60
54
50 40 32 30
In %
20
14
10 0 Yes
No
Sometime
54 % respondent sometime rely on TV advertisement where as 32% respondent rely totally on TV advertisement
Do you change your perception of a product by just seeing TV advertisement?
79
60 52 50 40 28
30 20
20
In %
10 0 Yes
No
Some time
52 % respondent change their perception of a product by just seeing TV advertisement, whereas 28 % respondent change it some time
Do you think advertisement is necessary for your decision making?
80
45 40 35 30 25 20 15 10 5 0
41 32 27 In %
Always Sometime necessary necessary
Not always
In the survey the respondents were asked how much they feel advertisement is necessary in their decision making. 27% said that it is always necessary in decision making, 32% said that advertisement sometimes plays a necessary part when they take a decision,and 41% said that advertisemnet is not necessary in decision making .
What are the factors which influence your decision making process?
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2 17
Product features 46
Advertisement Cost Friends opinion
35
This chart shows what are the factors considering which a respondent will be influenced to decide to buy a product.46% said that the features of the product will influence them, 35% said that advertisemnet will influence them to decide as they will get lots of information about the product, 17% said that the cost of the product makes tham decide to buy a product and 2% said that they will go by the opinion of friends
What do you look for in an advertisement?
82
6 1 Price
22
41
Benefits Celebrity Offers Quality
30
In the survey the respondents were asked what are the apspect that they see in an ad..41% said that thay see the price, 30% said that they see that benefits shown in tha ad., 22% see the brand endorsers, 6% see the offers given and 1% see the quality of the product shown in the ad..This shows that in larger amount customers see the price aspect when they see an ad
Do you purchase a product just because advertisement is made good?
83
34 Yes No 66
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 66% said that they purchase only because their celebruty is endorsing it, 34% said that they do not purchase This is clear that celebrity endirsement plays a great part in the brand preference.
What are the factors in an advertisement which will make you change your brand loyalty?
84
10
5
Benefits Value for money 33
New features 52
Discount
The respondents were asked what are the reasons which will make them change their brand loyalty. 5% said that the benefits of another product may make them change their brand loyalty, 52% said that the value for money may make them change, 33% said that new features in another prduct may compel them, 10% said discounts offered by another brands may make tham swirtchersThrough this survey it is clear that in comparison to other factors valur for money plays a great role for customers to change the brand preference.
If you hear the name of a brand through advertisement what do you recall?
85
8
1
Music 42
Tagline endorsers
39
product benefits 10
The respondents were asked what they can recall after they see or hear an ad.. 41% of the respondents said that they can recall the music which was played in the ad., 10% can remember the tag line, 39% they remember the brand endorser, 8% can recall only the product and 1% 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.
4.1.14 Critical observations
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•
Consumer acquires information about their brands from television.
•
Consumers rely on advertisement which shows that advertisement is important.
•
Consumers sometimes change their perception of a brand by seeing an
advertisement. •
Consumers said that product features influence their decision making process.
•
Consumers look for the price of a product in an advertisement.
•
Consumers purchase a product because their favourite celebrity is endorsing it.
•
Consumers look value for money shown in an ad makes them change their brand
loyalty. •
When it was asked what they recall after seeing or hearing an ad. Consumers said
music. •
Consumers said that music is very important in an advertisement.
4.1.15 Findings •
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
•
The customers like branded products because of the quality it possesses.
•
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.
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4.1.16 Suggestions
Companies should research continuously for quality improvement.
Develop more effective advertising campaigns
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’.
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CHAPTER 5
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5.1 CONCLUSION Television and advertising together present a lethal combination and has become an integral part of modern society .It is the most convenient route to reach not only adult consumers but also the adolescents. Adolescents are manipulated by advertisement promise that the product will do something special for them which will transform their life. The results of the study revealed that the girls viewed T.V. advertisements with interest and found them entertaining and informative. The main reasons for liking an advertisement was the information it provided regarding the discount, special gifts attached, brands and quality of the product. The non-informative factors like celebrities, Catchy slogans, visual effects funny advertisements, good music and action were also the reasons for liking an advertisement, in order of priority. The influence of the media and the advertising through it is extremely profound on the psychosocial development. If consumers are exposed to these media, they may have the deleterious effects as it has the potential to influence eating habits, exercise habits, buying habits and mental health. It would not be an exaggeration to say that advertising shapes the consciousness. Consumers minds do not understand persuasive intent in advertising, they are easy targets for commercial persuasion
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