Vivek FInal Project Report

SIMS “Point of Purchase”
CONTENTS
CHAPTER I Page No.
INTRODUCTION TO ADVERTISING
ADVERTISING AGENCY
CHAPTER II
MAGNUMN INTREGRAFIKS
CHAPTER III
POINT OF PURCHASE
CHAPTER IV
RESEARCH DESIGN
Objectives of the study

Methodology
Limitations of the study
CHAPTER V
DATA ANALYSIS
Statistical test
CHAPTER VI
CONCLUSION
RECOMMENDATION AND SUGGESTION
CHAPTER VII
BIBLIOGRAPHY
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ANNEXURE I
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LIST OF TABLES
Table No Description Page No.
Table no 0.01 Major advertising mediums 6

Table no 0.02 Typical work flow in agency 10
Table No.0.03 Merchandising Audits: Design 52
Table No.1.01 Age Group of respondents 60
Table No.1.02 The type of store preferred by the customers 61
Table No.1.03 The factors most considered by customers to 62
make purchase
Table No.1.04 The highest influencing factor to make 63
purchase
Table No.1.05 Decision criteria to purchase 64
Table No.1.06 Initiator to purchase the product 65
Table No.1.07 Basis to take purchase decision. 66
Table No.1.08 The things observed by customer before 69
making purchase
Table No.1.09 Promotional activities influences purchase 70
Table No.1.10 Feature of the store liked by the customer and 71
that influences purchase.
Table No.1.11 Whether POP influences purchase or not 72
Table No.1.12 Whether children are influenced by POP and 73

that can be an influence for purchase
Table No.1.13 The product which attracts more while making 74
Purchase
Table No.1.14 Attractive POP Displays can be replacement for 75
a sales person” Do u agree this statement
Table No.1.15 Evaluation of influence of POP to make 76
purchase with respect to the age group of the
consumer
Table No.1.16 CHI-SQUARE TEST 77

Table No.1.17 CHI-SQUARE TEST 78
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LIST OF CHARTS
Chart No Description Page No.
Chart no 0.01 Communication in advertising 14

Chart no 0.02 Organization chart of ad agency 17
Chart no 0.03 Types of POP 39
Chart no 0.03 Quality assurance 53
Chart No.2.01 Age Group of respondents 60
Chart No.2.02 The type of store preferred by the customers 61
Chart No.2.03 The factors most considered by customers to make 62
purchase
Chart No.2.04 The highest influencing factor to make purchase 63
Chart No.2.05 Decision criteria to purchase 64

Chart No.2.06 Initiator to purchase the product 65
Chart No.2.07 Basis to take purchase decision. 67
Chart No.2.08 The things observed by customer before making 69
purchase
Chart No.2.09 Promotional activities influences purchase 70
Chart No.1.10 Feature of the store liked by the customer and that 71
influences purchase.
Chart No.2.11 Whether POP influences purchase or not. 72
Chart No.2.12 Whether children are influenced by POP and that can be 73
an influence for purchase
Chart No.2.13 The product which attracts more while making Purchase 74
Chart No.2.14 Attractive POP Displays can be replacement for a sales 75

person” Do u agree this statement
Chart No.2.15 Evaluation of influence of POP to make purchase with 76
respect to the age group of the consumer
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Introduction to Advertising
Advertising, generally speaking, is the promotion of goods, services,
companies and ideas, usually performed by an identified sponsor. Marketers see
advertising as part of an overall promotional strategy. Other components of the
promotional mix include publicity, public relations, personal selling, and sales
promotion.
Advertising involves the process where in a massage is designed so as to promote a

product, a thought, an idea or even a service. The concept of advertising has assumed a
dynamic form with the use of the various mediums of communication. From the newspaper,
magazines, posters, neon and fluorescent signboards, billboards to the commercial on TV,
laser shows to inflated high-rise figures and objects, advertising has come a long way. The
work is formidable as it spearheads a process intended to attract, modify, change and
influences public opinion.
From the local business to multinational firm and all need to advertise. While
politicians, social organizations, government special groups need to advertise their motto,
national airlines, auto mobile manufactures, food and consumer goods manufacturers have to
reach the consumer. Specialist products and services are often advertised through trade
magazines and exhibitions. Lately mail-shots, handbill circulation, special offers have become
very popular. There are still other ways of advertising. There are window displays, display on
telephone directories, transit sign on buses, lamp posters, banners, etc. Advertising through
the electronic media has been perhaps the most popular medium.
Advertising, as an effective medium, uses a variety of techniques to create effective

advertisements. A basic appeal is at the heart of advertising. Slogans and product characters
are created to catch the attention of the viewers. Most winning advertisements would
encompass factual information with emotional appeal. The advertising industry has three
major sectors.
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Business or organization which wishes to advertise,

Media which provides the medium for advertising and
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Ad-agency which creates the ad to suit the need of the firm.
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Ad agencies vary in the size and turnover. Nevertheless the process of creating an ad
remains the same. The annual expenditure on the advertising has been to the tune of Rs 8000
crores and the figure could be higher. USA has projected media spending on advertising on
the net to approximately $7700 by the turn of the century. The scope for advertising
professionals certainly shows an upward trend.
Industry Snapshot
According the Advertising Age's 2002 Agency Report, the world's six largest
advertising agencies accounted for over 65 percent of $39.28 billion spent on advertising
worldwide in 2001. But the advertising industry has suffered during the first years of the
2000s. The economy decline prior to and exacerbated by the terrorist attacks of September
11, 2001 has been sustained by the ongoing conflict with Iraq. As an indicator of the softened
demand for advertising services, advertising agency employment fell to just over 180,000 in
December 2002, down from an average employment of 194,400 in 2001 and 182,400 in 2002,
representing the largest decline since 1991.
Advertising agencies are primarily responsible for two functions. The first is the
production of advertising materials in the form of written copy, art, graphics, audio, and
video. The second is the strategic placement of the finished creative product in various media
outlets, such as periodicals, newspapers, radio, and television.
Advertising agencies can be found throughout the United States, with the greatest
percentage located in large cities. Many have headquarters in New York and field offices in
Chicago, Los Angeles, San Francisco, Atlanta, Detroit, and other major areas of commerce in
order to be close to clients.
Although the larger agencies are more frequently mentioned in the media and in trade
publications, the industry is actually predominately comprised of smaller agencies, many with
only one or two principals. Industry observers credit lower overhead, diversified services,
willingness to accommodate change, and an entrepreneurial attitude for the success of
smaller, boutique agencies.
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As many clients have begun to focus on a variety of forms of marketing

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communications, advertising agencies have had to look beyond conventional media-based
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advertising. Advertising budgets reflect this shift, with additional dollars being earmarked for
point-of-sale promotions, public relations, and a major entry into the media mix—the
Internet. Changing demographics and a savvy American consumer were the driving forces
behind these alternative forms of marketing communications.
Some industry leaders have projected that advertising agencies will need to augment
their primary line of work and change their longstanding compensation system based on
commissions. Realizing the need for "integrated marketing services," many agencies have
responded by offering public relations, direct mail, promotional, and Internet services.
Nature of the Industry
Firms in the advertising and public relations services industry prepare

advertisements for other companies and organizations and design campaigns to promote the
interests and image of their clients. This industry also includes media representatives—firms
that sell advertising space for publications, radio, television, and the Internet; display
advertisers—businesses engaged in creating and designing public display ads for use in
shopping malls, on billboards, or in similar media; and direct mail advertisers. A firm that
purchases advertising time (or space) from media outlets, thereafter reselling it to advertising
agencies or individual companies directly, is considered a media buying agency. Divisions of
companies that produce and place their own advertising are not considered part of this
industry.
Most advertising firms specialize in a particular market niche. Some companies

produce and solicit outdoor advertising, such as billboards and electric displays. Others place
ads in buses, subways, taxis, airports, and bus terminals. A small number of firms produce
aerial advertising, while others distribute circulars, handbills, and free samples.
Groups within agencies have been created to serve their clients’ electronic advertising
needs on the Internet. Online advertisements link users to a company’s or product’s Web site,
where information such as new product announcements, contests, and product catalogs
appears, and from which purchases may be made.
Some firms are not involved in the creation of ads at all; instead, they sell advertising
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time or space on radio and television stations or in publications. Because these firms do not
produce advertising, their staffs are mostly sales workers.
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Companies often look to advertising as a way of boosting sales by increasing the

public’s exposure to a product or service. Most companies do not have the staff with the
necessary skills or experience to create effective advertisements; furthermore, many
advertising campaigns are temporary, so employers would have difficulty maintaining their
own advertising staff. Instead, companies commonly solicit bids from ad agencies to develop
advertising for them. Next, ad agencies offering their services to the company often make
presentations. After winning an account, various departments within an agency—such as
creative, production, media, and research—work together to meet the client’s goal of
increasing sales.
Widespread public relations services firms can influence how businesses,

governments, and institutions make decisions. Often working behind the scenes, these firms
have a variety of functions. In general, firms in public relations services advise and implement
public exposure strategies. Firms in public relations services offer one or more resources that
clients cannot provide themselves. Usually this resource is expertise in the form of
knowledge, experience, special skills, or creativity; but sometimes the resource is time or
personnel that the client cannot spare. Clients of public relations firms include all types of
businesses, institutions, trades, and public interest groups, and even high-profile individuals.
Clients are large and small for-profit firms in the private sector; State, local, or Federal
Governments; hospitals, universities, unions, and trade groups; and foreign governments or
businesses.
In an effort to attract and maintain clients, advertising and public relations services
agencies are diversifying their services, offering advertising as well as public relations, sales,
marketing, and interactive media services. Advertising and public relations service firms have
found that highly creative work is particularly suitable for their services, resulting in a better
product and increasing their clients' profitability.
Media
Commercial advertising media can include wall paintings, billboards , street

furniture components, printed flyers, radio, cinema and television ads, web banners,
web popups, skywriting, bus stop benches, magazines, newspapers, town criers, sides
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of buses, taxicab doors and roof mounts, musical stage shows, subway platforms and
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trains, elastic bands on disposable diapers, stickers on apples in supermarkets, the
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opening section of streaming audio and video, and the backs of event tickets and
supermarket receipts. Any place an "identified" sponsor pays to deliver their message
through a medium is advertising.
Covert advertising embedded in other entertainment media is known as

product placement. A more recent version of this is advertising in film, by having a
main character use an item or other of a definite brand - an example is in the movie
Minority Report, where Tom Cruise's character Tom Anderton owns a computer with
the Nokia logo clearly written in the top corner, or his watch engraved with the
Bulgari logo.
The TV commercial is generally considered the most effective mass-market

advertising format and this is reflected by the high prices TV networks charge for
commercial airtime during popular TV events.
Virtual advertisements may be inserted into regular television programming

through computer graphics. It is typically inserted into otherwise blank backdrops or
used to replace local billboards that are not relevant to the remote broadcast
audience. More controversially, virtual billboards may be inserted into the
background where none existing in real-life. Virtual product placement is also
possible. Increasingly, other mediums such as those discussed below are overtaking
television due to a shift towards consumer's usage of the Internet.
Advertising on the World Wide Web is a recent phenomenon. Prices of Web-

based advertising space are dependent on the "relevance" of the surrounding web
content and the traffic that the website receives. E-mail advertising is another recent
phenomenon. Unsolicited bulk E-mail advertising is known as "spam"
Major advertising mediums
MEDIUM ADVANTAGES LIMITATIONS
Newspapers Flexibility; timeliness; good local Short life; poor reproduction

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market coverage; broad quality; small pass along

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acceptance; high believability. audience.
Television Combines sight, sound and motion; High absolute cost, high clutter,
appealing to the senses; high fleeting exposure, less
attention; high reach. audience selectivity
Direct mail Audience selectivity, flexibility, Relatively high cost, junk mail
no ad competition within the image.
same medium, personalization.
Radio Mass use, high geographical and Audio presentation only; lower
demographic selectivity; low cost. attention than television; non
standardized rate structure;
fleeting exposure.
Magazines High geographical and demographic Long ad purchase lead time;

selectivity; credibility and prestige; some waste circulation; no
high quality reproduction, long life; guarantee of position.
good pass-along readership.
Outdoor Flexibility; high repeat exposure; Limited audience selectivity;

low cost; low competition. creative limitation.
Broachers Flexibility; full control; can Overproduction could lead to

dramatize message. run away costs.
Table No. 0.01
In-film advertising
In-film advertising used to mean a couple of product billboards placed behind
the hero's car, Till Taal came along. That's the film that put Coke — and product
placements — firmly in the plot.
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In-film advertising has only gathered more fans since. It's not just the colas,
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brands like Hero Honda, Bru, and Fair & Lovely have got into the act. It has become a
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well-thought out and legitimate part of a brand's marketing plan, and as the film
industry gets more corporatised, it's likely to get more popular.
This season's got a blockbuster hitting the screen, with all the attendant song,
dance and scandal. Kaante stars Amitabh Bachchan, Sanjay Dutt, Sunil Shetty, Kumar
Gaurav, Lucky Ali and Mahesh Manjrekar — and Thums Up. Coke's paid Sanjay Gupta,
the film's producer, to feature the cola in some scenes — rumours put the figure at Rs
4 crore, but Coca-Cola, as well as the producer, say it isn't so — and it's also airing
promos for the film that incorporate the Thums Up brand.
Leo Entertainment, the film marketing division of Leo Burnett, is working with
White Feather Productions in their marketing efforts.
Advertising Agency
Getting the best out of advertising is a highly skilled job. It requires the inputs of
experts in many different fields like writers, artists, photographers, designers, television
production crews and many others. Even the biggest advertisers cannot afford to employ all
these experts. Almost all advertising is therefore arranged through an advertising agency
which provides the necessary skill to turn the message into a memorable and effective
advertisement. Advertising has not only come to reflect pop culture but has also become an
important element of economic growth. Today, every person connected with the Indian
economy or public should be fully aware what advertising really is and why effective
advertising campaigns can be performed by full-service advertising agencies.
Advertising agency is one of the most important components of advertising industry. It has
played a significant role in the development of modern advertising. The advertising agency
has evolved to provide the specialized knowledge, skills and experience needed to produce
effective advertising campaigns. It provides a quality range of service greater than any single
advertiser could afford or would need to employ. An advertising agency is a firm that
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specializes in the creation, design and placement of advertisements, and in the planning and
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execution of promotional campaigns for products and services of their clients.
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The Association of Advertising Agencies of America (AAAA) defines advertising

agency as “An independent business organization composed of creative and business people who
develop, prepare and place advertising media for sellers seeking to find customers for their
goods and services.”
The glamour, the unlimited expense accounts, and the exhilarating lifestyle - all these
popular portraits of life in the big-time advertising agency are misleading. Advertising is
demanding, challenging, hard work. It is also interesting and fulfilling. Advertising requires a
mix of personal abilities, considerable business skills, and an ability to work under pressure
to meet deadlines. Compared to larger industries, there are never many entry-level positions
open in advertising agencies (dozens rather than hundreds). And competition is stiff. The
industry, however, is constantly on the look out for skilled, bright, articulate, creative and
personable men and women with a well-rounded education and a good business sense.
An advertising agency or ad agency is a service business dedicated to creating,

planning and handling advertising (and sometimes other forms of promotion) for their
clients. An ad agency is independent from the client and provides an outside point of view to
the effort of selling the client's products or services. An agency can also handle overall
marketing and branding strategies and sales promotions for its clients. Typical ad agency
clients include businesses and corporations, non-profit organizations and government
agencies. Agencies may be hired to produce single ads or, more commonly, ongoing series of
related ads, called an advertising campaign.
Advertising Process
When preparing your search proposal, you should take into account that the “lead-in”
time needed to place an ad can vary anywhere from days to months depending on the
publication. You should plan to have your ad approved and an estimate of the cost done at
least one month prior to the date when you want the ad to be published. The advertising
process for professional staff and faculty positions involves five basic steps:
1. Writing an Ad
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2. Getting Approval for the Text of the Ad

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3. Estimating the Cost of the Ad
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4. Placing Ads & Posting Announcements

5. Paying for Ads
Typical work flow in agency

STAGE WORK PERFORMED AT STAGE
• Briefing from the client

Briefing Stage
• Internal briefing to the creative and media
• Any research briefing if required
• Ad campaign and media plan development
Creation Stage
• Internal review and finalization
• Presentation to client and approvals
• Any pre-testing if required
• Budget and estimate approvals

Production Stage
• Production of film, press ads, collaterals
• Media Scheduling and media booking
• All release approvals for creative & media
• Material dispatch to media

Post Production Stage
• Media release monitoring
• Any post-testing if required
• Billing and collection
Table No.0.02
Types of advertising agencies

Ad agencies come in all sizes, from small one- or two-person shops to large
multi-national, multi-agency conglomerates such as Omnicom Group, WPP Group,
Interpublic Group of Companies and Havas.
Some agencies specialize in particular types of advertising, such as print ads

or television commercials. Other agencies, especially larger ones, produce work for
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many types of media. Lately, Search Engine Marketing (SEM) and Search Engine
Optimization (SEO) firms have been classified by some as 'agencies' due to the fact
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that they are creating media and implementing media purchases of text based (or
image based in some instances of search marketing) ads. This relatively young
industry has been slow to adopt the term 'agency' however with the creation of ads
(either text or image) and media purchases they do qualify technically as an
'advertising agency' as well as recent studies suggest that both SEO and SEM are set to
outpace magazine spending in the next 3-5 years.
Not all advertising is created by agencies. Companies that create and plan their
own advertising are said to do their work in house. Today selection of ad-agency is
very difficult. The advertiser should make list of all possible agencies that can serve
his purpose and the agency best qualified to provide required and effective services
are selected. Some advertiser may select more than one advertising agency to handle
effectively the various product lines.
Following are major types of advertising agencies that are currently serving
the advertising industry.
Full Service Agencies

A full service ad agency is one that provides a range of marketing services. A full services
agency provides services that are directly related to advertising such as copywriting, artwork,
production of ads, media planning etc. It also provides such services in respect of pricing,
distribution, packaging, product design etc.
Modular agencies
A modular agency is a full service agency that sells its services on a piece meal basis. Thus
an advertiser may commission an agency’s creative department to develop an ad campaign
while obtaining other agency services elsewhere. Or, an advertiser may hire an agencies
media department to plan and execute a program for advertising that another agency has
developed. Fees are charged for actual work undertaken.
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In House agencies
Those companies, which prefer to have closer control over advertising, have their own
in-house agency. This type is owned completely by the advertiser. It performs almost all
functions that an outside advertising agency would perform and that’s why some people refer
to it as full-service advertising department of the advertiser. However, the difference between
an in-house agency and an advertising department is that the in-house agency can undertake
to serve several other clients, if the owner so desires, but an advertising department solely
undertakes that work of its owner and not of outside clients. Secondly an advertising
department may not be equipped the personnel and facilities, which an in-house agency
would posses. In-house agency not only provides control over advertising schedule and costs,
but also offers convenience for its owner, because it is just available in the same building as
that of the head office of advertiser.
Such in-house agency also benefits the owner as it can bring revenue through agency
commission that are offered by the media and by way of fees that are collected from outside
parties for undertaking their advertising work. Such revenue increases the funds and profits
of the company. There is another version of in-house agency whereby advertiser handles the
total agency functions by buying service unit to buy time, space and place the ads. Such an In-
house agency is an administrative center (under the direction of an advertising director) that
gathers and directs varying outside for its operation.
Creative Boutiques
These are shop agencies that provides only creative functions and not full-service. The
specialized creative functions include copy writing, artwork and production of ads, they
charge a fee or percentage of full service agencies, and as such most of them convert into a full
service agency or merge with other agencies to provide a wide range of services.
Mega agencies
A significant of 1980’s is the development of mega agency. Agencies worldwide merge with
each other serve their clients in much better way. It was in 1986, Saachi & Saachi, a London
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based agency who started the movement and at present it is the third largest agency network
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in the world.
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The Specialists Agency

There are some agencies who undertake advertising work only in certain areas. there are
agencies that specialize only in financial services or only in publicity or only in point-of-
purchase material etc. for instance Soubhagya advertising agency concentrate on
specialized in financial advertising.
The functions of an advertising agency
To accelerate economic growth and create public awareness
To provide a total, professional, experienced service which is very

personal in its nature
To take the advertiser's message and convert it into an effective and

memorable communication
The Benefits of Using an Advertising Agency
Added Expertise
Media Knowledge and Unbiased Advice
Easier Administration
Media Buying
Quality Control
Information
Fending off the media
And when things go wrong
Cost Saving
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Time Saving
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Advertising Agency's Role

Suppose you are a company with a product. It may be a totally new product. As a company
with a product or service to sell, designing and making that item is only part of the battle.
People are not going to beat a path to your door. You have to seek a channel of
communication.
Ad agency need to consider, for example:
For whom is the product or service designed?

Who would use it?
Who is the "target group"?
What's special about the product? In what way is it distinct? Unique?
What's its "position" in relation to other similar products?
What do you want to convey to the public about your product?
How should your company contact the public?
What medium should it use? Radio? TV? Newspapers? Magazines?
How extensive a region should your company try to cover?
How often?
Communication and marketing decisions involve specialized expertise. Many companies
that design and produce products or offer services lack these specific capabilities. This is
where advertising agencies fit in. Advertising agencies exist to help companies to
communicate with the public, Market the company's product.
Company with a Ad Agency Media Public

product or service
Chart No.0.01
The process of advertising involves considerable specialized knowledge and expertise
• about people - their interests, preferences, needs, wants, lifestyles, expectations

• about media - their reach, their effectiveness, their specific appeal
• about the company and its product – and about competing companies and their products
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Services offered by ad agency

Total Advertising Services
Strategic planning, creative development and media services for advertising,
particularly in television, newspapers, magazines and radio; providing the best creative
designed to capture the imagination of consumers
Marketing Services
Provision of a number of advertising related services, including sales promotion,
market research, PR and event marketing.
e-Solution Services
e-solution services, including system integration services, e-business consulting and
customer relationship management (CRM), Search Engine Marketing (SEM) and Seaerch
Engine Optimization (SEO) and e-promotions using the Internet and mobile.
Content Business
Sales of sponsorship, broadcasting and other rights, and the production and
marketing of such media / content as sporting events, films, TV programs, animated content,
music and other forms of entertainment.
Integrated Media Services

Bringing value to both clients and media-related companies by offering a wide range
of media solution services
Sales Promotion
Providing comprehensive sales promotion planning designed to complement mass
media and other activities
Event Marketing
Assisting clients by providing dynamic vehicles for their messages in the form of on-
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the-spot interactive communications

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Integrated Branding Services

Assuring clients the highest quality of branding services for their communication needs
Organization Structure
The activities within an advertising agency are typically divided into 4 broad
groups: account management, the creative department, media buying, and research.
These divisions are usually physically separated, although all four areas work closely
together to produce an advertising campaign in its entirety.
Account managers usually have daily interaction with a counterpart at the

client's office and coordinate the activities of the other departments according to the
client's wishes. The creative department designs original themes or concepts for ads,
while the media department places finished ads within the media in which they will
receive the most exposure to a target audience. The research department provides
data about consumers to help the agency and the client make informed advertising
decisions.
Recently added to advertising agencies' roster of services are public relations,

direct marketing, and promotional services. Other activities that used to be completed
by outside vendors, such as photography and high-tech print work, have been brought
in-house in many agencies.
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ORGANIZATION CHART
Board of Directors
Managing Director
Client Services Creative

Director Director
Servicing Group Creative Groups
Media Audio Visual
Research
Language
Studio
Production
Finance / Secretarial /
Accounts Legal Personnel
Branches
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Chart No.0.02
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Departments & Personnel

Account Services / Account Management
The other major department in ad
agencies is account services or account
management. Account service employees work
directly with clients and potential clients,
soliciting business for the ad agency and
determining what clients need and want the
agency to do for them. They are also charged
with understanding the client’s business
situation and representing those needs within
the agency, so that ads can be brought to bear
on the correct problem.
Account planner / Director
The Account Planner is the main planning
executive who works in partnership with the client on long-term account planning. He knows
what is happening in the market place, the attitude of the consumer towards the client’s as
well as the competitor’s brands.
Account Planner Deals with senior members of the client organization. He is

responsible for agency performance as a whole with limited involvement in routine agency
projects. The Account Director is responsible for forward, long-term planning, deployment of
agency personnel and overall account profitability.
The account planner was originally employed to "represent the consumer" in the
advertising i.e., find the best way to pitch the clients products to people by better
understanding them, what they want and how to talk to them. Planning's role has expanded
considerably since it was originally introduced. Planners are now also brand strategists and,
to a certain extent, media strategists - using consumer insights to understand where and how
people are most receptive to certain messages. In many agencies, there is a dedicated media
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department and there are also some large and small agencies that exclusively handle media
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strategy and media buying.
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Account Supervisor
A middle management position: he or she manages the account within a medium term
perspective. This includes strategic planning, market analysis, competitive activity analysis, as
well as recognizing and capitalizing on business building opportunities.
Account executives
Account executives represent their ad agency to their clients. They understand sales
and advertising problems of the client and address the client’s need to the advertising
approach. In advertising ‘The account’ is the client. The business of each client with the
agency is referred to as an account. An ad agency handles assignments of a number of clients.
A client’s business is assigned to a team of people from the ad agency with the Account
Executive at the head of team. An account executive may be handling the business of number
of non-competing clients at the same time. The Account Executive supervises his team of
people drawn from all departments while planning, scheduling and executing the assignment.
Before a campaign is launched research on the client’s business methods, the product
to be advertised is made. With this background information there is a meeting of the creative
media and marketing division along with members of the client’s team. The objective of this
meeting is to define the nature and use of the product, and the target users as well as other
competing brands. After all the information is assigned the agency team prepares a draft brief
with recommendations. These are presented to the client by the Account Executive. The brief
and budget are discussed and after finalization of work. The Account Executive motivates
guides and coordinates the activities so that deadlines are met and the client’s expectations
become a reality. He spends a lot of time keeping the client updated on the progress. The
Agency’s Director too has to be kept informed. This is done directly in smaller firms but in
larger firms there may be an Account Planner or Director. The chief role of account executive
is to extract the best possible work from the other departments of the agency. They are in
daily touch with clients
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Creative department
The creative department is the
people who create the actual ads - form
the core of an advertising agency. Modern
advertising agencies usually form their
copywriters and art directors into
creative teams. Creative teams may be
permanent partnerships or formed on a
project-by-project basis. The art director
and copywriter report to a creative
director, usually a creative employee with
several years of experience. Although
copywriters have the word "write" in their
job title, and art directors have the word
"art", one does not necessarily write the
words and the other draw the pictures;
they both generate creative ideas to
represent the proposition (the
advertisement or campaign's key
message). Creative’s frequently work with
outside design or production studios to develop and implement their ideas. Creative
department consist of two key personnel i.e. art director and copywriters. These
positions and ad agency is explained below.
Art Directors
Art Directors in Advertising aren't necessarily the head of an Art Department although
the title may suggest it. They typically work in teams with a copywriter. Together the team
works on a concept and design for commercials, print advertisements, and any other
advertising medium. The art director is mostly responsible for the visual look and feel of
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the creative product as well as the concept. The Art Director ensures that the end product
has the same look and feel as the original concept. The copywriter has ultimate responsibility
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for the product's verbal and textual content, and both are responsible for coming up with big,
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effective and persuasive ideas. Depending on the competencies of each, they may share tasks
that are traditionally designated for one or the other, for instance, an art director may suggest
certain wording and a copywriter may suggest a certain aesthetic for a project.
Art directors may also oversee a team of junior designers, image developers
and production artists. In a smaller organization the art director may fill these roles as
well. In a larger organization, art directors may oversee other art directors in a
senior/junior art director relationship.
Copywriter
A copywriter is a person who writes text, or copy, for clients. Most copywriters work
in advertising or marketing, producing copy that's intended to persuade a reader to buy a
product or service or otherwise take action. Copywriting involves providing words, which are
read or heard in advertisements. This may include slogans or jingles or detailed text for
catalogues, brochures, leaflets and journals. Copywriting also takes the form of script for
television and film commercial advertisement.
Copywriters can contribute words and ideas to print ads, catalogs, billboards,
commercials, brochures, postcards, online sites, e-mail, letters and other advertising
media. Ultimately, the kinds of ads and media a copywriter will work in depend on his
or her own inclination and what clients ask for.
A copywriter often works as part of an advertising team. Agencies and

advertising departments partner copywriters with art directors. The copywriter has
ultimate responsibility for their ads verbal and textual content, the art director has
ultimate responsibility for the visual look and appeal, and both are responsible for
coming up with big, effective, persuasive ideas.
Copywriter and visual art work go hand in hand and this is the work which goes on in
the agency’s creative department. Briefs from the Account Executive outlining the target
group for the advertisement and information about the product, followed by discussions with
the account planner, along with research material, and perhaps a meeting with client put the
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The essential skill of the Copywriter lies in interpreting and understanding the mind and
needs of the target audience and the characteristics of the product. They must identify what it
is that would make people want or need the product being promoted. The Art Director and
the Copywriter together then work on an idea that should catch the attention of the public
and put the selling point of the product across; many ads are discarded, reincarnated and
created. The final product is a team effort of the Copywriter and Art director with each other
having suggested alterations to the other.
The more successful creations are then shown to the creative director who in turn
may suggest further modifications. Final drawings are then produced and shown to the client.
Once the client accepts the concept and layout is modified and the details filled in. The design
and copy is sent to the production team for typesetting, photographs and drawings for
printed advertisements or filming for television commercials.
Giants in the copywriting field include David Ogilvy, William Bernbach, Robert W. Bly and
Leo Burnett. Many creative artists spent some of their career as copywriters before becoming
famous for other things, including Dorothy L. Sayers, Joseph Heller, Terry Gilliam, Salman
Rushdie, and Don DeLillo.
Creative Department people need following attributes for this back-breaking job.
A good psychologist.
Willing and able to set high standards.
An efficient administrator & Research minded
Capable of strategic thinking – ‘positioning’ and all that.
Equally good at package goods and other kinds of accounts
Well versed in graphics and photography
A hard worker and fast
Slow to quarrel
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Prepared to share credit for good work, and accept blame for bad work
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A good presenter & good recruiter
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Media Department
Size and scale of the advertising is not

important. What's in the mind is important. The big
bucks are not being spent on production, they are being
spent on broadcasting. The Media Department of an
advertising agency is responsible for the planning and
placement of advertising time and space. It is a function
that in recent years has undergone considerable
change. The proliferation of media forms and the
escalating cost of media time have brought a new focus
to the Agency Media Department.
Marketing Research Department
Marketing research is three things:
1. The identification of information needs (i.e. defining the problem)
2. The systematic gathering, recording, analyzing and interpreting of

data about problems relating to the marketing of goods and
services (i.e. providing a solution to the problem)
3. The analysis and evaluation of action taken on the basis of

information (i.e. monitoring and modifying the initial solution).
The single most important reason then for doing marketing

research is to guide the marketer in the analysis, planning,
implementation and control of marketing and communications programs to satisfy both
customer needs and organizational goals. It does this by providing decision-makers with
information necessary to choose between alternative courses of action. While marketing
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research information can never eliminate all risk from decision making, good research can
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and should substantially reduce the odds of failure. In short, the essence of marketing
research is "problem-solving".
Creative Services Department
The creative services department may not be so well known, but its employees
are the people who have contacts with the suppliers of various creative media.
For example, they will be able to advise upon and negotiate with printers if an agency
is producing flyers for a client. However, when dealing with the major media
(broadcast media, outdoor, and the press), this work is usually outsourced to a media
agency which can advise on media planning and is normally large enough to negotiate
prices down further than a single agency or client can.
In small agencies, employees may do both creative and account service work.
Larger agencies attract people who specialize in one or the other, and indeed include
a number of people in specialized positions: production work, [Internet] advertising,
or research, for example.
Event Management and Promotion department
These are marketing support services which coordinate with external

suppliers and use internal resources to implement the client's plans. The work here is
coordination, with specific responsibilities being more specialized. Event
management, an industry that is just taking off in India, plans, organizes and executes
live events, which could include a brand/product launch, an exhibition, a concert or
even a conference.
Radio & TV Broadcast Production Department

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The Broadcast Production department is responsible for making television and radio
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commercials to be aired across the country. Each project is different and the job demands
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both creative and administrative ability. The most successful people in Broadcast Production
have strong aptitudes in both creative and administrative areas. This means that they should
be active in creative spheres. They must also have a very high organizational ability as there
are a myriad of details to attend to in any production.
There are two basic classifications of jobs in Broadcast Production:
Producer
Production Co-ordinator and/or Traffic Co-ordinator
The production team's main function is to purchase the services of the correct film or
videotape Production Company and to administer and produce the TV commercial production
on behalf of the advertising agency and the client.
Famous advertising agencies in world
• BBH (Bartle, Bogle & Hegarty) -- famous for Audi, Levi's, Johnnie Walker, British Airways.
• Crispin Porter + Bogusky --famous for Subservient Chicken, works with Burger King, Virgin
Atlantic Airways, Volkswagen
• Wieden + Kennedy -- famous for remaining an independent agency; as well as Nike "Just Do
It", ESPN "This Is Sports center", Coke, EA, Starbucks, ESPN, Honda UK.
• JWT (formerly J. Walter. Thompson) -- works with Kelloggs, Unilever, Diageo.
• Leo Burnett -- works with Procter & Gamble, Kelloggs, McDonald's, Marlboro, Hallmark,
Heinz. Famous for creating characters such as Tony the Tiger, Snap Crackle & Pop, the Jolly
Green Giant, the Marlboro Man, and Charlie the Tuna.
• The Martin Agency -- UPS, GEICO, NASCAR, Miller (Lite, MGD), Hanes, and others
• N.W. Ayer & Son -- the first ad agency in the United States, coined "When it rains it pours"
(Morton Salt), "A diamond is forever" (De Beers), "Reach out and touch someone" (AT&T), "Be
all you can be" (United States Army), and others
• Ogilvy & Mather -- famous for the Rolls-Royce print ad with the headline "At 60 miles an
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hour the loudest noise in this new Rolls-Royce comes from the electric clock", among other
ads
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• Saatchi and Saatchi -- most famous for working with the Conservative Party especially
during the 1979 general election (Maurice and Charles Saatchi later left and set-up M&C
Saatchi)
• TBWA\Chiat\Day -- works with Apple Computer (including the "Think Different" campaign),
adidas, and Sony Play station. Responsible for creating the fcuk brand and (in the UK)
Wonderbra advertising.
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MAGNUM INRERGRAFIKS
Most businesses that begin in small towns and cities stay small. They suffer from ‘location
hazard’. They define their business even before staring the business and stay within those
boundaries. Being initiators they may be lucky and stay ahead of competition within the
defined parameters. But magnum was different. It established itself at a different level beyond
the limits set by the local competition and built a market around itself by creating value for
the customer.
From the beginning Magnum Intergrafiks (MI) believed in innovation. MI was the first agency
in Mangalore that invested in the latest technology whether it was a fax machine or
computers. MI was the first agency to provide the customers complete communication
solution under one roof. It was the first agency to have a customer focus rather than an
agency focus. MI provided its employees a totally flexible organizational climate and
empowered them to try out new ideas. In Mangalore IM established benchmarks for others to
follow right from initiation. It set its target on growing beyond the boundaries rather than
staying a single office, one town agency. It became a leader rather than a follower.
The genesis
Magnum began with a speed capital of Rs.10000/- in the basement shed of a apartment
building. Once, way back in 1988, while perusing through the Planning Commission document
on the five year plans, the current chairman, who is one of the founders of the firm,
understood there would be a boom in the service sector in the near future. His search for ideal
business too him to U.S in 1989. Having studied the type and scale of businesses in the U.S, he
identified four suitable ones that had a large potential in India thet he could possibly start.
They were (1) credit card services, (2) general insurance, (3) television channels and (4)
Advertising Agency. He realized that he could start an ad agency and provide other related
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services with the least investment compared to other businesses. Keeping this in mind he
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wants about looking for people with a lot of drive and initiative. In 1992 computers were a
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reality in the advertising and a lot depended on personal service. A company called Magnum
Advertising and Marketing Services was formed with a team of five, including a receptionist
and an errand boy. The business began with a fax machine when no other agency used one.
This enabled the firm to service its first assignment, which was the daily release of single
number lottery results in a regional newspaper, “Udayavani”.
Ad agency business typically requires large amount of creative input. Due to this a firm
Intergraficks which was known for its creative work became outsourcing unit for Magnum. In
1993, Magnum and Intergraficks decided to join together to provide better integrated
services to the customer. As a result a firm called Magnum Intergrafiks Pvt. Ltd was born.
What began in 1992 was a seed capital of Rs.10,000/-, a team of five and a Rs.17.77lakhs
(Rs.1.8 million) turnover at the end of t he year, now has 14 branches across India, one in
Sharjah , almost 200 employees and a turn over of Rs.60.53 crores (Rs.605 million) in 2007. It
has set a target turnover of Rs.100 crores for the year 2008.when average industry growth
has been 10% to 20%, MI has grown 37% from 2004 to 2005, 64% from 2005 to 2006 and
67% from 2006 to 2007. It is the No. 1 Ad Agency in Mangalore, Mysore, North Karnataka and
Goa and is ranked among the top 40 agencies in India during the last two years.
During the late 80s and the early 90s, Mangalore was still a sleepy town with businesses that
were mostly small in size and family owned. Media was also in its nascent stage with
newspapers dominating the scene. Most advertisements were black and white and the
creative requirements of the customers were not much. Way back in 1992 there were abut 15
ad agencies in Mangalore but the top 4 held 80% of the business. Again, only one agency had
accreditation from the Indian Newspaper Society.
When Magnum opened in 1992 they applied for INS accreditation immediately. Initially the
firm received provisional accreditation, which was followed by permanent accreditation in
1995. This benefited the firm greatly because now it could target corporate clients and also
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avail a 60 day credit with any publication in India. During the year 1992 -93 most business
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came from newspaper ads and a small part came from design and printing. In the second year
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most part of the business came from design and printing and Magnum became a name to
recon with due to its superior quality of work. Being a part of Advertising Agencies
Association of India and the Audit Bureau of Circulation helped MI to work out a good
strategy for the customers. These credentials also helped in getting larger and corporate
clients.
Right from the time it started, Magnum gave customers an entire package, a 360 degree
communication approach unlike other agencies. Magnum sold the concept of building a brand
to its customers rather than providing what their customers asked for. This was an innovative
idea at the time and also magnum’s unique selling proposition. It became a one stop shop for
all who required varied services. In fact, many clients who were not aware of their
communication requirements gained exposure to these through their interactions with
Magnum.
Crisis and Learning
Initially when MI began in Mangalore, it built its portfolio around the real estate business.
During the mid nineties the real estate business fell upon bad times and MI suffered heavy
losses due to default in payments. There was recession in the economy and the real estate
sector collapsed during the year 96 – 2000 Magnum went through a financial crisis. It was a
period of learning for the organization and a lot happened during this time. The organization
performed a SWOT analysis and realized that innovative practices and a shift in the mind set
could help it overcome the current problem and grow into a much larger company.
The company first concentrated on collection of defaulted payments slowly yet steadily.
Although the cash inflow was slow it eventually stabilized. This problem helped the company
to develop a more efficient system of account receivable collection. Yet another lesson the
company learnt was diversity. Magnum found new customers among banks, educational
institutions, hospitals, hotels and so on.
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The growth of the company was gradual. After facing a crisis during 1996, Magnum realized
the importance of expansion. Along with geographical expansion, they also initiated lateral
expansion wit existing customers. They began providing services like event management,
publicity and brand building. Since the focus was customer, once his needs were identified, it
was easy to expand laterally. This made competition irrelevant.
One unique experience of the company is that even during the crisis period, the company had
the good will of all its customers and the media because, while customers failed to pay, the
company borrowed money and met its financial commitments. There were no payments due
to media. A few employees left the company thinking that the future would be bleak. The
board of Directors successfully steered the company from the brink of failure to the path of a
global company with the logic of value innovation.
The company has put the systems in place for establishing a global company. Being influenced
by Thomas Friedman’s ‘The Lexus and Olive Tree’ and Bill Gates’’ business @ the speed of
thought’, the management wants to take the company global. They have developed a vision on
the inspiration of these books and realized that this company can also tread the global path
with the help of technology like a lot of other multinational companies. They realized that the
influence of technology is such that one cannot stay small, but one can hold on to his roots and
build a larger entity. That is exactly what MI is up to these days. There is no location hazard as
it has employed technology to overcome this limitation.
On the contrary, its location in a small city like Mangalore seems to be a distinct advantage.
Dude to this, its overheads are much lower than the larger agencies located in metropolitan
cities and the investment requirements are also smaller. Again being a city like Mangalore it
has access to a large pool of highly skilled labor. This has enabled MI to position itself
competitively and provide international quality service e to the customer at a cheaper cost.
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Today the capabilities of MI are much better. MI has the resources and the inputs. They
continuously analyze the trends in the industry and cater to all kinds of businesses. MI is
capable of providing a proposition to any business of any size anywhere in India. The range
of customers is high and hence the business cycle doesn’t really affect the business of MI.
In the year 1995 Magnum opened its office in Bangalore, and in 1998 in Hubli and Mumbai.
Expansion into new geographical areas would reduce its exposure to a single geographical
area and thus minimize its risk. Opening of new branches assured the employees that the firm
was on the growth track and kept them exited and something to look forward to. Again
Magnum’s plan was to expand into tire II and tire III cities where it could create a new
paradigm of competition and also have a presence in the metros. The smaller cities like
Mangalore had ad agencies that had limited focus. They identified gaps left by the smaller
agencies and the bigger firms and cashed in on them. The bigger firms are concentrated in the
metros and the smaller firms have restricted focus. It was easier to create a niche for itself
because it was able to provide what the customer needed quickly and efficiently. It was a big
agency for a small town and yet more approachable from the customers point of view.
Retail Boom
Ever since the retail boom began in the 1990’s it has benefited Magnum tremendously. Due to
Magnum’s presence in different geographical areas, it has been able to cash in on this
development. Again the retail boom in India has taken place largely in tire II and tire III cities
and towns. The large agencies do not have much of a presence in these cities and the smaller
agencies are unable to provide world class services that too at minimum cost. This is the niche
that magnum has created for itself. For instance, Sony brand of televisions wanted to have
advertisements, events and road shows of the same kind all over Karnataka. Who best could
do it but Magnum due to its presence in five locations in the state i.e., Mangalore, Mysore,
Hubli, Bangalore and Belgaum. Recently Corporation Bank wanted hundreds of banners of the
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same kind with the same message displayed in prominent cities all over India on the same
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day. With Magnum have in 14 owned branches across India the job was done within a day.
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The design for the banner was made in Mangalore and sent to all the branches
instantaneously. The delivery mechanism is expeditious due to the presence of internet and
intranet services. A clear case of business at the speed of thought!
National level presence
Any business that requires national level publicity could approach Magnum because of their
national presence and in-house capabilities. With their presence in metros and tire II and tire
III cities, it is ideal for small, medium and large business houses. Due to Magnum’s national
presence, today they understand local communication needs.
Adoption of Technology
Technology was never a deterrent for MI. A company like Magnum harnessed new technology
to ride the wave of globalization. When most people thought that globalization was going to
destroy them, Magnum saw an occasion to grow. When globalization brought in competition
it also brought new customers from different locations. As technology advanced in the
advertising field, Magnum seized the opportunity and capitalized on it.
When computers fist made inroads during the early 90’s Magnum was the first one to invest
in a computer, required software’s and a printer and scanner for the purpose of creative
work. Computers facilitate speed and ability to deal with a wide variety of complex activities.
Prior to computers every ad design had to be done manually. If the customer wanted a
different color combination they had to make a fresh design with a different color scheme all
together. This was tedious and time consuming. With the computer and design software the
creative work is done much more easily and faster. One could keep changing the designs on
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the computer until the customer is satisfied. What took hours earlier would take minutes
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now. The computers have enabled people to achieve higher levels of productivity than
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otherwise. This helped the company to increase their turnover by about 4 times. Then there
was no looking back.
The turning point of the business was when the organization developed customized
accounting software in the year 2000 to manage its accounts and also that of its branches.
Initially the accounting software was introduced in order to reduce the burden of accounting
work on the existing staff. But this software helped in building an efficient Management
Information System in the organization and augmented the business to an extent the
management hadn’t thought of. The software cost the company Rs.40 lakhs. A large
investment of this kind i.e., about 6.5 times the size of the operating profits for the previous
year 1998-99 of Rs.6,09,000, at the time appeared too substantial to many. Yet the
management went ahead with it, taking a risk, and it opened the doors to the company to go
global. The foundations for large scale operations had been laid.
During 1998 a lot of positive changes occurred in the Indian economy. Communication
became much cheaper than it was before. Telephone calls became cheaper, internet was
introduced and computers became cheaper. All these factors enabled Magnum to perform its
activities more effectively and efficiently. It boosted the confidence of the organization and
increased the speed of service. Adopting the latest technology much faster than other
agencies helped Magnum develop a clear edge over them in providing additional and speedy
services. Embracing technology was another innovation and it helped the organization grow
to a much larger size. It also helped the management to develop a vision of building a global
company from this sleepy little town of Mangalore. Expansion became and managing
branches wasn’t difficult once internet became the order of the day.
In 1998, internet first became popular in Mangalore. This is when Global Trust Bank
(presently taken over by the Oriental Bank of Commerce) first introduced ‘anywhere
banking’. Being passionate about technology, Magnum became one of the firs customers of the
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bank to use this facility. This helped Magnum to speed up their float time, reduce their
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transaction costs and improve the security of transactions. For example, if Magnum had to
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pay a certain amount of money to their Mumbai branch, it did not require purchasing of DD’s
now. It could deposit the money in Mangalore branch of Global Trust Bank into the account of
its Mumbai branch and within a few minutes the money would be credited to the respective
branch account. Again information about the crediting and debiting of accounts was available
immediately. The bank account could be operated from Mangalore and the cheques could be
issued at pat to any place in India.
Later, between the years 2002 to 2005 the company put an enterprise Resource Planning
Software in place. This helped the company network because the branches were better
connected now. Broadband services were available in Mangalore from 2005 onwards. This
enabled the company to develop its intranet facility across its branches and helped speeding
up business for Magnum. With the introduction of broadband the ERP software that Magnum
had developed could be used better. Knowledge software which was the prerogative of a few
earlier became available to everyone at the time of being launched itself. One didn’t have to
wait for years or months now. Graphical and photographic design software like Adobe
Photoshop was available easily to everyone without discrimination.
When the organization grows to a larger size accounts have to be prepared i9n minute detail.
Again there is growth in the media sector with the introduction of newer newspapers and
television channels. Rates of media change from day to day, edition to edition, between
editions, between suppliers and between channels. The accounts department had to work out
combination rates since the advertisement release orders for 8 to 10 advertisements are
given at the same time in different media, in different supplement, in different editions and so
on. But to bill the customer has to be split and this involves tedious work. The ERP software
enables the media planning and accounts departments to work out the combination and
splitting of bills easily. The availability of so many varieties of media including niche
magazines, has given rise to a specialist job called the media planning department which is
yet another innovation.
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POINT OF PURCHASE
(POP)
The presentation of your product and merchandise is almost as important as the
product itself. You have only one chance to make a first impression and you want it to be a
good one. Point of Purchase displays, also called Point of Purchase presentations or POP
displays, can be anything from stock corrugated floor stand or counter displays to acrylic or
corrugated ballot boxes to elaborate custom die-cut & printed stand up displays.
The term Point –Of –Purchase, or POP, refers to the promotional graphics focused on
influencing consumer behavior at the moment of purchasing decision.
Point –of –Purchase displays are driving a retail revolution. They are enabling true
dynamic selling.
In recent years, the point of purchase for products and services has become an
important focus for marketers, because consumers tend to make purchasing decisions on
very high-margin products or services at these strategic locations. Points of purchase may be
real, as in the case of a "brick and mortar" store, or virtual, as in the case of an electronic
retailer that sells goods and services over the internet.
A place where sales are made. On a macro-level, a point of purchase may be a mall,
market or city. On a micro-level, retailers consider a point of purchase to be the area
surrounding the counter where customers pay. Also known as "point of sale".
Most purchase decisions are made at the shelf during just a few critical seconds. The
ability for a product to attract shoppers’ visual attention has a strong influence on the choices
they make – products that are unseen are often unsold
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Some startling results were obtained by research commissioned by the Point of

Purchase Advertising Institute (POPAI) which should force marketers to re-evaluate their
strategic thinking and re-allocate their promotional budgets quite drastically.
The studies on consumer shopping behaviour showed that a high proportion of all
purchases in supermarkets, chemist shops and other retail outlets are totally unplanned. In a
general sense, this means that many product - and brand decisions are made in-store at point
of purchase rather than as pre-planned purchases beforehand. Which has major implications
in your consideration of point of purchase materials, packaging and promotions. It is patently
clear from these studies that these play a role - perhaps the major role - in influencing
unplanned purchasing and increasing sales.
The 1995 POPAI consumer habits study, compared shoppers planned purchases obtained
during entry interviews and actual purchases during exit interviews and it was possible to
classify every brand purchase into one of four types of consumer behaviors:
1. Those specifically planned, where the customer had indicated an intention to buy. 30% in
supermarkets and 26% in mass merchandise stores
2. Generally planned where there was intent to buy a specific product but with no brand in
mind. - 6% in supermarkets and 18% in mass merchandise stores
3. Substitute purchases where the product or brand indicated was not purchased ( pure brand
switching) - 4% supermarkets 3% mass merchandising stores
4. Unplanned purchases where there was no prior purchase intent - 60% in super markets and
53% in mass merchandising stores
The results show a 70% in-store decision rate in supermarkets and 74% in mass
merchandising stores. Which means your advertising investment in building brand awareness
and brand equity is only responsible for filling 30% of a consumers shopping trolley the rest
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Benefits of using POPs
Delivering a rapid return on investment.

POP give retailers a new, simple and effective way to put product
information in front of their customers and sell to them whilst
reducing their cost of sale.
Research shows that the critical battlefield for winning sales is when
the customer is faced with the product.
This is the point of purchase where the decision to buy is made.
It is here that retailers must convince customers that the product is
the one that they should buy.
It is at this point of purchase the POP displays make maximum impact.
The Growing Market for POP
I.T Strategies, an US based analyst firm, in its report estimated the

wide format POP display signage to be a $ 7.6 billion market.
The POP advertising Institute predicts that in-store advertising
accounts for 53 –60 % of consumer purchase.
P.O.P buyers report issued by P.O.P magazine states that annual P.O.P
spending is estimated at over $ 17 billion.
Additionally they predict P.O.P advertising to grow nearly 20% over
the next five years.
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Types of POP
Types of POP
Intended for longer Permanent POP
than nine months Displays Signs
Short Term –Less than Temporar€y
Six Months Displays sings
1 day to 2 months constructed

In store Sign
of relatively disposable
materials
Chart No.0.03
Materials used to construct POPs
POPs has got short lifetime usually one will use cost effective products to prepare
such displays, many materials like:
–Corrugated board,
–Cloth,
–Plastics sheets,
–Glass, Food
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Mass Merchandiser (incl. Wal-Mart & Target)

Hardware/Home Centers/Lawn & Garden
Department & Appliance Stores
Optical
Wine/Liquor
Bars/Restaurants
Video Stores
Other
Sales Tracking: Execution
Decades of custom sales tracking experience enables us to track sales in nearly any retail or
service environment. Integrated Research will:
Design appropriate research methodology

Obtain trade cooperation
Develop sample
Secure data/conduct sales audits
Shop-Alongs
Provides in-depth learning from qualified category shoppers while in the act of shopping
These one-on-one in-depth interviews generate true insight into the

shopper’s psyche by exploring their perceptions, opinions, beliefs and
attitudes in the proper context of a real-
–Metal, etc
ü Most versatile and cost effective material is corrugated board.
ü
Corrugated for P.O.P Display –Benefits
Corrugated board provides unlimited options for P.O.P displays.
One can have large format
One can print high quality graphics.

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Digital printing possible.

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P.O.P can also be used as shipper.
It can be send in knockdown condition to retailers.
It is very lightweight.
One needs only self adhesive tape, glue and paper cutter for carrying
out any repair or modification on site.
It can be easily disposed by retailer after use.
It is environmental friendly.
One can use coated white top paper for striking print quality.
Large quantity of Products can be displayed.
One can overcoat with UV for enhanced graphics
Types of P.O.P Display
Pallet Packs Multipurpose pallet display
Pallet display contains multiple products from different manufacturers

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Ø Merchandising different products, creating a one stop center.

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Ø It is designed to fit on a standard pallet.

Ø Can be moved with forklifts and hand trucks.
Dump Bin Standee
Dump tray Flore displays
Flore display is designed to create a cost effective.

Flore display attracts customers and allows easy access to the product on all
4 sides.
The display holds a large quantity of product is easily refillable and sits on a
small footprint.
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The display is screen Printed 4color plus Clear UV on E-flute Corrugated, shipped flat for easy
assembly at Retail destination
Examples of Corrugated P.O.P Displays
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Point-of-Purchase Interviews
Point-of-Purchase Interviews capture the mindset of the customer where and when the
purchase decision is actually made.
The point-of-purchase is where important buying decisions are made, and is possibly THE
most important marketing opportunity manufacturers and retailers having available. As a
result, it's the only place to obtain a true understanding of the consumer: how they shop; what
motivates their purchase decision or, conversely, leads to a rejection of a brand or category;
how they feel about specific brands, products, packages, or promotional/merchandising
initiatives and devices. Point-of-Purchase observations and interviews provide a unique
opportunity to understand customer's thoughts, feelings and motivations when they are
actually occurring and are fresh in mind.
Integrated Research has executed thousands of in-store/on-site point-of-purchase

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observations and interviews across a wide range of outlets. All projects are custom designed
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with the unique objectives of our client in mind…with the utmost attention given to providing
insight and actionable results.
Typical measures and areas of questioning can include:
Time Spent In Aisle

Record "Grab & Go" vs. "Contemplative" Behavior
Brand/Type/Size Of Products Purchased
Impulse vs. Planned Purchase
Purchase Motivations/Reason For Rejection
Shopping Attribute Importance Ratings
Retailer Performance Ratings
Package/POG/Display Evaluation
Impulse vs. Planned Purchase
Segmentation Issues
Integration With In-Store Test Results
Category/Shelf Shopability
Point-of-Purchase Interviews: Design
The importance of Point-of-Purchase interviewing has been demonstrated by its popularity

and significant growth over the past few years. This is primarily due to the fact that it is
increasingly difficult to reach a truly representative sample of consumers via other methods,
be it phone, internet, or mail. Further, data insights gained from point-of-purchase surveys
are actual, true, top-of-mind thinking, which simply isn't obtainable via other methods.
Integrated Research has specialized in this form of attitudinal research for nearly two
decades, and possesses the expertise to properly design, execute and analyze studies to truly
fulfill its clients' learning needs and objectives.
Results are obtained using one of the following techniques based primarily on the learning
objectives.
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1.In-Aisle/On-Site Intercept Interviews
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Conducted in-aisle or on-site/on-premise immediately after the customer has made their
purchase decision
2.Exit Interviews
Conducted after or just prior to shoppers/patrons going through the checkouts Post-Purchase
Surveys Provides timely feedback from purchasers related to attitudes, usage and repurchase
intent.
Feedback following the purchase of your products, particularly those products that are new
or are being tested, can provide valuable insight into the purchase decision process, usage,
likes/dislikes and the likelihood or barriers for repurchase. The fact that this feedback is from
actual customers that made a conscious decision to purchase, versus respondents that are
actively recruited and provided the product, means that the usage data is richer and more
telling.
Post-Purchase Surveys: Applications
Feedback on new or test products

Build/refine a customer database or focus group panel
Usage ratings
Validation of concept research (BASES Test)
Evaluate repurchase intent and potential hurdles
Post-Purchase Surveys: Design
Results are obtained using one of the following techniques based primarily on the sales
velocity of the product in question.
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1.Purchase Call-Backs
Call-backs are conducted in conjunction with Point-of-Purchase Interviews. Permission for

call-back survey is obtained during in-store interview with the call-back survey completed
within a few days of the initial intercept.
On-Pack or In-Pack Surveys Custom on-pack or in-pack surveys are produced by Integrated
Research specifically for the product being researched. Depending on the product
characteristics (package size, velocity, distribution, etc.), one of the following alternatives is
typically utilized to solicit feedback from purchasers:
Survey Check
Purchasers receive an actual check as part of an on-pack or in-pack questionnaire which
becomes cashable once the survey is completed.
Response Incentive
On-pack or in-pack cards prompt purchasers to complete an online and/or phone survey
(utilizing Interactive Voice Response - IVR) in exchange for cash, shopping gift cards or entry
into a sweepstakes drawing.
Post-Purchase Surveys: Execution
Utilizing its extensive field network (either interviewers and/or merchandisers), Integrated
Research can provide survey coverage or on-pack placement in any outlet or market. With
either technique, it is assured that feedback is obtained from the product purchasers and
users within a relatively short time period.
Integrated Research would take the lead in all aspects of the project's execution, including:
Purchaser Call-Backs
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Developing in-store screener/questionnaire and call-back surveys

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Executing surveys
Generating tabulated reports
Analyzing results & generating executive summary
On-Pack or In-Pack Surveys

Developing & producing surveys
Placing on-pack “peel here” sticker
Fulfilling respondent incentives
Generating tabulated reports
Analyzing results & generating executive summary
Sales Tracking
Provides sale and share data utilizing scanner and/or manual methodologies customized by
Product, Category, Outlet Type(s), Time Period or Geography.
Integrated Research has the ability to track volume across a wide variety of trade channels
utilizing either electronic Point-of-Sale data, manual sales audit or some combination of the
two. Our research expertise, field coverage and retail access allow us to develop custom
panels that address any of your sales data needs.
Point-of-Sale Data - Obtained through retailer scanning systems

Manual Audits - Combination of store inventory counts and delivery records to determine
retail sales
Delivery Audits - Wholesaler or warehouse deliveries
Applications
Advertising evaluation test

Sales barometer
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Pilferage/Shrinkage analysis
Outlet Types
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Integrated Research has conducted these audits across a wide range of trade channels and
accounts, including:
world retail environment. Customers don't make purchase decisions in a vacuum or, for that
matter, with a group of strangers in a conference room in front of a one-way mirror. Allowing
customers to provide feedback about a category, brand, concept or retailer as they are
browsing the relevant section or store puts them in a position to provide truly meaningful
insight.
Shop-Alongs: Applications
Shop-Alongs, much like focus groups, are often utilized to

obtain qualitative learning related to a product, concept or
marketing initiative. However, the retail environment in
which a Shop-Along takes place allows you to go much
further and address issues and obtain feedback from
qualified customers where the purchases and purchase
decisions take place. The context of the surveys allow Shop-Alongs to have a distinct
advantage over more traditional research methods in the following areas:
Ideation & Opportunity Exploration

Concept Development
Concept Screening & Retail Copy Pre-Testing
Shop-Along: Design
Shop-Along are accompanied shopping trips that involve in-depth surveys conducted by
experienced moderators with qualified consumers through the use of:
Pre-Recruitment
A pool of category or brand shoppers is identified in the geography surrounding the
participating retail location and recruited for participation in the study.
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On-Site Screening
Shoppers are screened the day of the survey as they enter the store to determine if they are
qualified for the shop alongs. Screening typically involves the purpose of that day's shopping
trip, category purchase frequency, brand or segment loyalty and demographics.
Shop-Along: Execution
Shop-Along are typically conducted over a two to three day period by an experienced
moderator using a discussion guide to facilitate an open dialogue about a particular category,
brand or retailer issue. Integrated Research has experience in conducting such projects across
all of the major retail outlets, including:
Food
C-Store/"Mom & Pop"
Drug
Club Stores
Other
Merchandising Audits
Provides an accurate snapshot of the retail environment
The presence, location and overall quality of your shelf

distribution and the execution of your retail marketing and
promotional initiatives are the most fundamental piece to your
brand’s success and often the most overlooked. Monitoring these
conditions and the compliance of retail events ensures that your
brand is getting its fair share and that the programs that have been sold into an account or
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outlet are being properly executed.

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Integrated Research has conducted thousands of merchandising audits (also known as

observational studies or distribution checks) across a wide range of retail outlets. Each
project is designed and executed specifically for each client, which helps to ensure that the
results are both accurate and actionable. These measures can include any observable
condition, including:
Out-of-Stock
Facings
Share of Shelf/Linear Feet
Retail Price
Location
Adjacencies
Merchandising Activity (Displays, special prices, etc)
Marketing Activity (In-store TV or Radio, signage,
Shelf Position
shelftalk, floor ads, etc)
Distribution
Merchandising Audits: Design
Unlike syndicated suppliers, we custom design every facet of the study to meet the client’s
specifications, including:
Products Time Period
Any brand or category Conducted at any time or frequency
• Complete category • Monthly, Quarterly, Annually or One-

• Selected brands or SKUs Time
• Weekend or Weekday
Measures Sample
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Any observable condition Designed to represent any universe
• Distribution & Out-of-Stocks • Key Account or Trade Class

• Facings & Linear Shelf Space • Sales Territory or Census Region
• Retail Price (Regular/Promo) • ScanTrack Panel
• Location & Adjacencies • InfoScan Panel
• Merchandising & Marketing Activity
Table No.0.03
Points of Differentiation vs. Syndicated Suppliers
• To improve accuracy, Integrated Research audits are not conducted for multiple clients
and/or categories
• Unlimited measures tailored to meet specific client objectives
• Store locations can be identified
Merchandising Audits: Execution
With field coverage in over 150 U.S. and Canadian markets, Integrated Research can conduct
these audits to represent any geography, retail channel or chain. Integrated Research ensures
data quality and comprehensive results by sweating the details at every phase of the project.
Quality Assurance
DESIGN FIELD EXECUTION REPORTING
• Kick-off • Comprehensiv • Manual review

meeting with client e field briefing of individual audit
• Develop • Toll-free help forms/files
detailed instructions line to address • Discrepant
& samples questions in field data screening
• Field test • Review of utilizing multiple
form in local stores completed forms by queries
market supervisors & • Two-phase
conduct store revisits report checking
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Chart No 0.04
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Outlets & Accounts
Integrated Research has conducted merchandising audits across a wide range of trade
channels and accounts, including:
Food
C-Store/“Mom & Pop”
Drug
Hardware/Home Centers/Lawn & Garden
Department & Appliance Stores
Optical
Wine/Liquor
Bars/Restaurants
Video Stores
Other
Merchandising Audits: Reporting
As with all of our projects, Integrated Research custom designs the final report data to meet
the needs and preferences of the client. This typically involves a tabulated report and, based
on the client's preference, a key findings summary in a PowerPoint file format.
All these are some deferent methods used by the researcher to so the point of purchase
survey.
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RESEARCH DESIGN
Indian retail sector have emerged as a most dynamic and fast pace industries with
immense completion .Retail organization are aggressively adopting innovative
marketing Strategy to attract the customer. Many Players are trying to recreate the
ambience and experience of foreign shopping malls and are providing wide product
range, quality and value for money to create a memorable shopping experience. Retail
organization using various means of communication tools and investing a huge
amount of profit in advertising, displaying their products through different means.
The service offered at these outlets promoted through the print, electronics and
outdoor. However, it is still to find out at what extend the Indian consumer are
accepting this innovation and what they perceive about it.
Point of Purchase materials surely effect on consumers buying behavior in one or
the other way. But the effectiveness when compared to the spending on POP displays
by the retailers, it will be a questionable aspect. There are several points discussed in
this research report which will put light on some of such aspects.
Thus this study was conducted at organized retail outlets which were in mangalore
region to find out the consumer credibility perception and behavior towards various
means of display materials and what influence them in making purchase decision
from a particular outlet.

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OBJECTIVES OF THE STUDY
This study report primarily concentrates on the effectiveness of sales promotion

techniques like Point of Purchase materials. And how do the customers pursue such practices,
influences of those in the buying pattern. And to find out the overall perception on The POPs
materials and its influence on various group of customers.
And this study also includes a study of the overall functions, needs, services of
advertising agencies.
The main objectives of this particular research are listed below
Primary objectives
To know the Influence of Point of purchase materials on customers
while making purchase
To know whether POP would be a replacement for a salesperson
To know which age group is most influenced by POPs
To know the educative Strategies of POP displays
To know whether POP influences Impulse buying behavior
To know whether Influence of POP is just
To boost the sales of the store or
To draw customer into the store
Secondary Objective
To study the advertising agency, Functions, types, objectives, and
need of advertising agency in the present scenario. 66
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Methodology
The presentation of product and merchandise is almost as important as the product
itself. One will have only one chance to make a first impression and it should be a good one.
Point of Purchase displays, also called Point of Purchase presentations or POP displays.
The study mainly concentrated on the effectiveness of POP display materials, how it
influences the consumers buying behavior. And to study which age group of consumers
mostly get influenced.
The study includes two objectives where the first one is effectiveness of POP and the second
one is studying the function, need, types, and services of the advertising agencies. So The part
of data collection includes the sources like Primary and secondary . Primary data is collected
through questionnaire. And the secondary data through books magazines, Internet, and
several other secondary sources.
I. Primary data
A. Method
This survey was conducted at various super bazaars, kirana stores and malls. From that I
selected a required sample and they were presented with a questionnaire. Once all this data
was collected, it was then sorted out and statistically analyzed. A graph of each aspect
contained in the questionnaire was made so as to get an exact percentage of the findings.
Conclusions, based on the outcome, hereby obtained were drawn and decisions were taken
about the effectiveness and the influence of POP displays.
B. Population
The population for this study is consisting the peoples of Mangalore Udupi and Manipal
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region.
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C. Sample
To be certain that a fair representative of the population is selected; the sample will be
consisting of at least 100 for each cities. The method used for sampling will be the Random
Sampling Method. For such a study larger the number of sample better will be the
understanding of the costumers mind. However, one has to also look at the Cost and the time
involved in such a study. With a use of Random Sampling Method 300 people were selected
for the study.
D. Data Collection Method
I was not able to find any secondary information about the effectiveness of POP and
the influence of it with people in the city of Mangalore. Even if there is any such data
will be available it must be in a paid form. Thus with these limitations it was decided
to collect data first hand. A questionnaire with about 15 questions will be used as an
instrument of data collection. And a separate questionnaire was given to all the retail
shop owners’ to know their perception about POP display. Interaction with everyone
in the list will be by the way of Personal Interview (Both the questionnaires is shown
in the Annexure).
II. Secondary data
A. Reference books, text books magazines are helped me to complete my

project by giving relevant data’s which I was searched for.
B. Internet searching for the resent updated information about the ad-agencies
and its operations.
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LIMITATIONS OF THE STUDY
The study is done purely for the purpose of academic use. while doing this I faced lots of
difficulties to collect relevant and the recent data from the right source. And the
questionnaire part peoples are not so responsive. There are some points can be highlighted
those are listed below.
Because of time I restricted my survey only to 300 customers so the study is

not the exhaustive one.
Because of the time limit i can’t able to analyze the data in detail.
The result I obtained is only on the basic of only the customers of Super
bazaars, students, etc
The report is based on the information obtained through the questionnaire,

and its only from Mangalore, Udupi, and Manipal city.
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DATA ANALYSIS
1 Age Group of respondents
Age group No. of respondents
11 to 18 47
18 to25 106
25 to 40 80
above 40 67
Table no 1.01
The table above given explains the age group of people who visits shops to make purchase.
Frequency of visiting to the shops is more in the age group 18to 25.Here more than 35%of the
respondents are belongs to that category.
Age group
Series1
106
80
67
47
11 to 18 18 to25 25 to 40 above 40
Chart No.2.01
But when it comes to the actual sales it is very limited in case of this teenage group. Only
because of the new mall culture and the consumer orientation of shops the inflow of customer
is increased. Purchase is normally by the age old people or the elders in the family normally
.As it shown in the graph 25to40 age group people stands next in the position .The are the
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2. The type of store preferred by the customers
Store Type Preferred Respondents
Supermarket 178
Normal Kirana Shops 60
Malls 62
Table no 1.02
The table explains SUPERMARKET is preferred by most of the consumers. Perfectly true
consumers get to select the product what they want and they will get to know about the other
substitutes also. In normal shops there will be one way communication what one want that
should be asked and one will get. Consumers will not et to choose the product.
Store type
Series1
178
60 62
Supermarket Normal Kirana Shops Malls
Chart No.2.02
Malls are also gives same kinds of opportunity but those are still not so popular in the cities
like Mangalore, Udupi, Manipal. So that portion facing much less amount of consideration.
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3. The factors most considered by customers to make purchase
Factors Respondents
Nearness 103
Product availability 112
Offers 41
Ambience 37
Others 7
Table no 1.03
Product availability is very important factor considered by the consumer. Everyone will
look for the product what they want to buy. So when it comes to consider some aspect to
make purchase this factor comes first. There are several other factors like nearness, ambience
etc. which gets least importance
Store factors
Series1
112
103
41 37
Nearness Product availability Offers Ambience Others
Chart No.2.03
All the other factors considered the main factor is there .If the product which one wanted is
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available then only consumer consider the other factors like nearness, Offers, Ambiance etc.
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4. The highest influencing factor to make purchase
Influencing factor Respondents

Brand 84
Advertisement 74
Store atmosphere 38
Product display 42
Helpful sales personnel 51
Others. 11
Table no 1.04
28% is the derived result for highest influencing factor to make purchase is BRAND.
Advertisement gets the second place. People get to know about the product or brand through
advertisement so when customer considers brand as one very influencing factor influenced
by the promotional activity of the product.
The highest influencing factor

Series1
Others. 11
Helpful sales personnel 51
Product display 42
Store atmosphere 38
Advertisement 74
Brand 84
Chart No.2.04
The sales personnel and the display also have importance sometimes people needs
assistance then they look for these people. And display it helps to attract the consumer at the
product. Store atmosphere is one more factor which also influences but consideration level is
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a bit low because the other factors dominate wit this. Consumers may go for compromise
sometimes with this factor.
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5 .Decision criteria to purchase
Decision criteria Respondents
By reading 164
By asking 136
with the Sales
personnel
Table no 1.05
While making Purchase how customers take decision about the product is derived from the
table.If there is some product displayed in a store there will be some kind of information
brochure will be there ,consumers prefer to read it and understand about the product.55%of
the respondents prefer to read an get to know about the product.
Decision criteria
By reading By asking with the Sales personnel
45%
55%
Chart No.2.05
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By asking with sales persons also one more option consumer has to know about the
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product. The other portion of customer prefers to know it from the sales peoples of the shop.
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6. Initiator to purchase the product
Initiator to purchase Whether these factors initiates or not to make

purchase
Yes No
Product display 117 183
colors used 180 220
Packaging made 102 198
Offers for the 182 118
product/Freebies
Advertisement 222 78
Table no 1.06
The above table explains which factors initiate them to make purchase. Factors like Product
display, colors used, packaging style, offers, advertisements, which aspect most initiate the
purchase and how much people prefer that aspect to make purchase
Weather these factors initiates or not to make

purchase
220 Yes No 222
183 198 182
180
117 102 118
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Product display colors used Packaging made

Offers for the product/Freebies
Advertisement
Chart No.2.06
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In case of PRODUCT DISPLAY 39% of respondents considers it is important and remaining

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61% considers its not an initiator to purchase.
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COLORS AND PACKAGING attract customers a bit more towards the product but
negative answer is more than positive so consideration level is less.
OFFERS, ADVERTISEMENTS are considered as highest initiatives to make purchase.

By advertising in deferent modes product identity increases so that people get to know about
product features.
With the help of offers one can draw attention of customer towards the shop which
impulse the consumer to make purchase.
Here in the above information ADVERTISEMENT has got 74% positive response for the
initiator to purchase .And offers has got 60% positive result which gives an insight how much
people consider those promotional activities.
7. Basis to take purchase decision.
Basis Brand Price Availability Offers Color Package Display Celebrity
Rating
1 72 97 48 52 30 32 24 33
2 93 76 47 44 45 34 18 38
3 39 40 29 38 40 40 36 29
4 30 45 19 43 47 39 32 45
5 27 22 54 40 40 51 43 41
6 22 5 52 38 46 41 40 32
7 11 10 36 24 24 46 59 48
8 6 4 15 21 28 17 48 34
Table no 1.07
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The above two way table explains the ranking given by the respondents for some factors
which effects purchase decision. All are having their own ranking on the basis of their
consideration level. A table is derived after considering all such ranking.
Basis to take purchase decision
6 4 15
11 10 21 28 17
5 34
22 22 48
36 24
24 46
27 48
46 38
30 52 46 59
41
40 32
40
39 40
54 51 40
41
43
76 19 47
39 43
93 45
29 38
40 32
40 29
47 44
36
97 45 34 38
72 18
48 52
30 32 24 33
Brand Price Availability Offers Color Package Display Celebrity
Chart No.2.07
The graph drew is on the basis of the ranking given by the respondents. Here exact number
of the ranking given by the respondents is taken into consideration while analyzing the data
so the graph gives exact picture of the ranking.
While interpreting Price is consider 1 place most of the people considers it as very
important .Brand comes next in the series 31% of the respondents giving importance as
second ranking. All the other factors will get relative rankings which all clearly interpreted as
under
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4%
Brand 3% Price
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
7% 2% 24% 7% 2% 1% 33%
9%
15%
10%
13% 31% 14%

25%
Chart No.2.07a Chart No.2.07b
Availability 7%
Offers
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
12% 5% 16% 8% 17%

13% 15%
17% 16%
10% 13%
18% 6% 14% 13%
Chart No.2.07c Chart No.2.07d
9%
Color 10%
Package 11%
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
8%
15% 15% 6% 11%
15%
14%
13%
14%
13% 16% 17% 13%
Chart No.2.07e Chart No.2.07f
Display Celebrity
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
16% 8% 6% 11% 11%

12%
12% 16%
20%
14% 15% 10%
11% 11%
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13% 14%
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Chart No.2.07g Chart No.2.07h
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8. The things observed by customer before making purchase
1 2 3 4
The product which I want
to Purchase 118 83 63 36
Advertisements, display
boards, substitute 86 79 76 59
products displayed
Offers, discounts, or any
promotional activities 82 70 95 53
Check for new products 47 68 84 101
Table no 1.08
The purchase decision, how people mentally prepare for the purchase before entering the
shop. Here respondents are asked to rank their preferences which factor they mostly prefer
.and the result derived is most of them will make purchase what they want to purchase. The
factors influences their purchase is least.
4 36 59 53 101 The product which I want

to Purchase
3 63 76 95 84 Advertisements, display
boards, substitute
products displayed
2 83 79 70 68 Offers, discounts, or any
promotional activities
1 118 86 82 47 Check for new products
0% 20% 40% 60% 80% 100%
Chart No.2.08
As early stated consumer buys only that which one actually wants to purchase.39% of
overall respondents gave 1st rank for that aspect. And people who are going to check for new
product are less its 33% of overall respondents. The other factors like POP and Offers gets
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relative ranking people do consider these aspects .these will come in between relatively
average ranking these will get.
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9. Promotional activities influences purchase
Promotional activities Respondents

Offers 78
Advertisements 65
POP display 55
Celebrities 54
Kiosks 22
others 26
Table no 1.09
Promotional activities which influences purchase in the séance, promotional activities for
the product which influences the consumers to make purchase .The study concentrated on
how much those activities influences purchase. And which activity gets more shares. After
analyzing the result obtained offers for the product stands at the first place with
26%.Advertisement in the second place and POP and celebrities jointly in the third place. The
other two gets least importance.
Promotional activities influences purchase

7%
9%
26% Offers
Advertisements
18%
POP display
22% Celebrities
18%
Kiosks
others
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Chart No.2.09
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10. Feature of the store liked by the customer and that influences
purchase.
Shelf Aisle Kiosks Sales Display

Features design design persons board and
Ranking pamphlets
1 73 64 49 87 78
2 66 34 64 71 69
3 51 59 63 54 63
4 50 77 84 34 51
5 60 66 40 54 39
Table no 1.10
This is the ranking given by the respondents about the store atmosphere. This is to know
how much customer observes in the store other than the actual purchase.
Chart No.2.08
100% 34
50 51
90% 77 84
80% 54
70% 51 63
60% 59 63
71
50% 66 69
40% 34 64
30%
20% 73 87 78
64
10% 49
0%
Shelf design Aisle design Kiosks Sales persons Display board n
pamphlets
Chart No.2.10
In this aspect sales persons gets maximum importance .People gives most importance to
them. Second rank goes to Display boards and pamphlets, these display boards and pamphlets
attract attention of the consumer and helps the customer to aware about the product.
Kiosks, shelf design and aisle design are yet other factors customers do consider those cut
not as the first two. They have their own level of importance according to the perception of
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customer.
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11. Whether POP influences purchase or not.
Yes No
143 157
Table no 1.11
Here the question asked to know whether POP influences customer to make purchase. Point
of purchase is those which are used to display the product in the store. Usually it is used to
attract the customer and to influence the impulse buying.
Whether POP influences purchase
Yes
48%
No
52%
Chart No.2.11
The result obtained from the study is 52% of respondents answered no for the question on
because POP is attractive no one is ready to purchase consumers prefer other factors also
while making purchase like price brand etc.
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12. Whether children are influenced by POP and that can be an

influence for purchase?
Yes No Not applicable
118 99 83
Table no 1.12
The most of the advertisements or any kind of promotional activities surely attract children.
Here the question is asked to the parents who do shopping with their children.
Whether children are influenced by POP and

that can be an influence for purchase
28%
39%
Yes
No
Not applicable
33%
Chart No.2.12
The result obtained from the study was favorable 39% of respondents are ready to make
purchase for their children’s. And that to children’s are attracted to the product for its
attractive pop.
There is more than 60 %market remaining that are not willing but that can’t be the majority
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because the ones who don’t have children’s and bachelors are not considered here.
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13. The product which attracts more while making Purchase.
Product displayed with Product displayed Product which I want

attractive POP without POP to purchase with or
without pop
86 38 176
Table no 1.13
Here in the above table the shown data related to what contribution does POP gives in the
total sales in an outlet. Or it can be say like this which product gets maximum sales in the
outlet.
product which attracts more while making

Purchase
176
86
38
Product displayed with Product displayed Product which I want to

attractive POP without POP purchase with or
without pop
Chart No.2.13
When this aspect comes people will purchase what they want to purchase it may be with or
without POP. More than 58%of people prefer to purchase what they want to purchase. The
next place goes to the product displayed with POP.
So it can be concluded that when necessary goods are to be purchased then preference goes
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to the loyal brand or price. But in case of comfort Goods or luxuries people consider all kind of
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attractive promotional activities.
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14. ”Attractive POP Displays can be replacement for a sales person”

Do u agree this statement.
Yes No Don’t know
77 145 78
Table no 1.14
Attractive POP cannot be replacement for the salesperson. This is the result obtained from
the survey more than 48% of people denied to agree this statement.
"Attractive POP Displays can be replacement

for a sales person"
Don’t know 78
No 145
Yes 77
0 20 40 60 80 100 120 140 160
Chart No.2.14
The result is negative because most of the people still require assistance from some of the
salesperson in an outlet. Even if it is a mall or a supermarket people do see for the assistance.
It requires lots of effort to educate the customer before going to replace POPs to salespersons.
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15. Evaluation of influence of POP to make purchase with respect to

the age group of the consumer.
Age group Of respondents Total
11 to 18 18 to 25 25 to 40 40 and above
Pop influences 24 55 31 33 143

purchase
Pop will not 23 51 49 34 157
influences
purchase
Total 47 106 80 67 300
Table no. 1.15
Influence of POP to make purchase with

respect to Age group of consumer
Pop influences purchase Pop will not influences purchase
51
49
34
23
55
31 33
24
11 to 18 18 to 25 25 to 40 40 and above
87
Chat No.2.15
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CHI-SQUARE TEST
To find out whether POP influences the purchase irrespective of the age of the
consumer
Age group Of respondents Total

11 to 18 18 to 25 25 to 40 40 and above
Pop influences 24 55 31 33 143

purchase
Pop will not 23 51 49 34 157
influences
purchase
Total 47 106 80 67 300
Table No.1.16
Hypothesis
Ho - No association between Point Of Purchase and age group with respect to the
buying behavior
H1 – There is association between point of purchase and age group with respect to
The buying behavior
By taking the hypothesis that pop will not influences the purchase behavior irrespective of
age of the respondents, both are independent factors.
Calculation of expectation
Pop influences purchase Pop will not influences purchase
Age group 11 to 18 = 143*47/300=22.403 Age group 11 to 18 = 157*47/300 = 24.60
Age group 18 to 25 = 143*106/300=50.527 Age group 18 to 25 = 157*106/300 = 55.47
Age group 25 to 40 = 143*80/300 = 38.133 Age group 25 to 40 = 157*80/300 = 41.87
Age group 40 and above = 143*67/300 = Age group 40 and above = 157*67/300 = 35.06
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Groups Observed Expected Oij-Eij (Oij-Eij)2*Eij

frequency Frequency
Oij Eij
Pop influences purchase
Age group 11 to 18 24 22.4 1.6 0.114285714
Age group 18 to 25 55 50.53 4.47 0.395426479
Age group 25 to 40 31 38.13 -7.13 1.333252033
Age group 40 and 33 31.94 1.06 0.03517846

above
Pop will not influences purchase
Age group 11 to 18 23 24.6 1.6 0.104065041
Age group 18 to 25 51 55.47 4.47 0.360210925
Age group 25 to 40 49 41.87 7.13 1.214160497
Age group 40 and 34 35.06 -1.06 0.032047918

above
Total 3.588627066
Table No.1.17
Calculation of table value
(C-1)(r-1) ( 4-1)(2-1) = 3
3 at 5% level of significance
Table value = 7.815
Calculated value 3.588627

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Calculated value of chi-square is lower than the table value .The null hypothesis stated above
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CONCLUSION
To sum up with all these analyzed data briefly I can say that still point of purchase
materials have not got that much importance in influencing buying pattern of the consumer.
At present it is just acting as a promotional method. The actual output is not obtaining still. To
make it more effective it should reach customer much effective way. And even consumers
needs to be educated to use it.
At present the influence of POP on purchase is less than the advertisements and offers
for the product.
With the result derived from the research, considering geographical area where the
research is done i can say that at present situation POP Cannot be the replacement for
salesperson.
The most influence age group by POP are 18to20
But here the statistical test applied to know whether the age group of customer directly
related with the influence pop to make purchase. The result obtained was also the same as
expected which is POP will not influence purchase irrespective of agr group of consumers.
POP do influences impulse buying pattern but to small extent only not to the large extent.
POP helps draw attention of the consumers into the stores and to make purchase .The one
who will attracted by the POP outside the store they will observe POPs inside also it can be
favorable to the seller.
POPs do have attention value but it needs very much attention towards it .frequent
maintenance, updating information etc everything should be maintained carefully.
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FINDINGS AND RECOMMENDATIONS
This study on effectiveness of point of purchase derives answer for various aspects .Some of
them are listed below
Findings of the study
Point of purchase materials attracts the younger crowd in the

population than the adults. So it helps to drag customers into the store,
but not to increase the sales volume.
People still prefer normal kirana stores than supermarket and malls,
especially in rural areas.
POP materials still not giving the expected result for purpose it was
introduced. One cannot replace POP with a sales personal. Still
customers need assistance from sales personals.
Main finding of the study the larger portion of the respondents don’t
know about POP materials and its advantages. Its just playing a
supporting roal as a promotional technique.
Recommendations
Customer education this main concept should be implemented before doing further
activity, customer should know what exactly POP is and why exactly it is using with the
particular product.
At present POP is using just as an advertising technique but its not just an
advertising technique it is the selling technique this should be effectively used and
implemented by the retailer or the shopkeepers.
Nowadays this POP is helping the retailer to drag the customer into the store but it
should convert the window shoppers into shop so proper attention should be given if so it
will become an effective tool for selling the product by itself.
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SIMS “Point of Purchase”

CHAPTER I Page No.

Objectives of the study

RECOMMENDATION AND SUGGESTION

Table no 0.01 Major advertising mediums 6

Table No.1.11 Whether POP influences purchase or not 72

Table No.1.12 Whether children are influenced by POP and 73

Table No.1.16 CHI-SQUARE TEST 77

Chart No Description Page No.

Chart no 0.01 Communication in advertising 14

Chart No.2.05 Decision criteria to purchase 64

Chart No.2.14 Attractive POP Displays can be replacement for a sales 75

Advertising involves the process where in a massage is designed so as to promote a

Advertising, as an effective medium, uses a variety of techniques to create effective

Business or organization which wishes to advertise,

Ad-agency which creates the ad to suit the need of the firm.

As many clients have begun to focus on a variety of forms of marketing

communications, advertising agencies have had to look beyond conventional media-based

Nature of the Industry

Firms in the advertising and public relations services industry prepare

Most advertising firms specialize in a particular market niche. Some companies

Companies often look to advertising as a way of boosting sales by increasing the

Widespread public relations services firms can influence how businesses,

Commercial advertising media can include wall paintings, billboards , street

trains, elastic bands on disposable diapers, stickers on apples in supermarkets, the

Covert advertising embedded in other entertainment media is known as

The TV commercial is generally considered the most effective mass-market

Virtual advertisements may be inserted into regular television programming

Advertising on the World Wide Web is a recent phenomenon. Prices of Web-

Major advertising mediums

MEDIUM ADVANTAGES LIMITATIONS

Newspapers Flexibility; timeliness; good local Short life; poor reproduction

market coverage; broad quality; small pass along

acceptance; high believability. audience.

same medium, personalization.

Magazines High geographical and demographic Long ad purchase lead time;

Outdoor Flexibility; high repeat exposure; Limited audience selectivity;

Broachers Flexibility; full control; can Overproduction could lead to

Table No. 0.01

execution of promotional campaigns for products and services of their clients.

The Association of Advertising Agencies of America (AAAA) defines advertising

An advertising agency or ad agency is a service business dedicated to creating,

2. Getting Approval for the Text of the Ad

3. Estimating the Cost of the Ad

4. Placing Ads & Posting Announcements

Typical work flow in agency

• Briefing from the client

• Budget and estimate approvals

• Material dispatch to media

Types of advertising agencies

Some agencies specialize in particular types of advertising, such as print ads

Full Service Agencies

The Specialists Agency

The functions of an advertising agency

To accelerate economic growth and create public awareness

To provide a total, professional, experienced service which is very

To take the advertiser's message and convert it into an effective and

The Benefits of Using an Advertising Agency

Advertising Agency's Role

Ad agency need to consider, for example:

For whom is the product or service designed?

Company with a Ad Agency Media Public

• about people - their interests, preferences, needs, wants, lifestyles, expectations