You are on page 1of 88

1

EFFECT OF ADVERTISEMENT ON CONSUMER


BUYING BEHAVIOR

Submitted for partial fulfillment of award for

Post Graduate Diploma in Management (PGDM)

Under the supervision of: Submitted by:

Prof. VINITA SRIVASTAVA DEEPAK KUMAR SINGH


Mr.SAHANAWAZ(B.D.M,COLORS)
Ms.NAVIDITA (HR HEAD,COLORS) PGDM(2009-11)

Institute of Technology & Science


Mohan Nagar, Ghaziabad
(Approved by AICTE)
2

ACKNOWLEDGEMENT

This report is an outcome of research in areas of Ghaziabad and Delhi.

The training intends to facilitate interaction of the concept of management with the practice of
the same PGDM course is a professional one; the worth of which is proved in the ability and skill
of student’s decision for talking problems. In the real managerial situation, this calls for not only
the acquisition of knowledge. It is rightly said; that management is science and art both.

The student learns the science of management in the institute premises through classroom and
discussions and the art of management are learned through such studies as presented here. I
personally find myself lucky enough for getting the admission in ITS, Ghaziabad.

As all we know that “NOT A SINGLE GRAM CAN BREAK THE WHOLE VESSEL “same
my mentor’s has supported me in accomplishing my project report as I am very deeply grateful
to my faculty guide Prof. VINITA SRIVASTAVA for her co-operation and advice in
completing this report and also my sincere thanks to my Industry guide Mr.SAHANAWAZ
(A.S.M) and Ms NAVIDITA (HR HEAD) for his valuable guidance and direction at every
stage of my research.

DEEPAK KUMAR SINGH

Institute of Technology and science


(Ghaziabad)
3

DECLARATION

I Mr. DEEPAK KUMAR SINGH do hereby declare that the project report titled “EFFECT
OF ADVERTISEMENT ON CONSUMER BUYING BEHAVIOR” is a genuine research
work undertaken by me and it has not been published anywhere earlier.

The above satement is true to the best of my knowledge.

DEEPAK KUMAR SINGH

Institute of Technology and science


(Ghaziabad)
4
5

CERTIFICATE OF

This is to certify that the project work entitled


“EFFECT OF ADVERTISMENT ON CONSUMER
BUYING BEHAVIOUR” conducted at COLORS MOBILE
DELHI is based on the original work done by DEEPAK KUMAR
SINGH (Regno2009049) of second semester student of “POST
GRADUATE DIPLOMA IN MANAGEMENT”(PGDM),
INSTITUTE OF TECHNOLOGY AND SCIENCE GHAZIABAD.
Further I assured that no part of the training report has preciously
before form the bases for the award of any degree, diploma,
associate ship, fellowship or any other similar titles.

Place:……………….
Date:………………...

Ms. Vinita Srivastava


Professor
ITS Mohan Nagar
Ghaziabad
6

EFFECT
OF
ADVERTISEMENT
ON
CONSUMER
BUYING
BEHAVIOR

SUBMITTED
BY:-
DEEPAK KUMAR
SINGH
(PGDM)
7

CONTENTS:-
 Introduction of report - 8
 Objective of study - 12
 COMPANY PROFILE -
14
 MISSION AND VISION -
16
 SERVICES OF COMPANY -
17
 AVAILABLE HANDSHET -
19
 BRIEF REPORT -
25
 RESEARCH METHODOLOGY -
56
 DATA ANALYSIS AND
INTERPRETATION -
59
8

 FINDINGS -
72
 SUGGESTION -
75
 CONCLUSION -
78
 BIBLiOGRAPHY -
81
 QUESTIONAIRE -
83

INTRODUCTION OF THE
REPORT
9

Consumer behavior research is very important aspect to understand what factors


influence the buyer behavior and how they make purchase decisions to satisfy their
needs and wants. It is also most important for implementing the marketing
strategies or to use marketing mix. This study is on Indian consumer behavior is
aimed at helping businessmen to get better understanding of the Indian rural,
middle class, higher middle class and rich class market place thus enabling them
to get on selected strategies to effectively reach the consumer. Indian consumers
are indifferent in choosing the mobile handset, because lot of substitutes or
competitors is available in the market. In this modern era mobiles phones have
became a basic need of the human beings. Many companies are launching new
mobiles phones day by day with new technology and at a low price to attract the
consumers.

India is a big country with 28 states over one billion population and 120 languages.
In India 70% population with 56% of the national income, 64% of total
expenditure and 1/3 of total savings are living in 6,27,000 villages or rural areas,
(NCAER 2005). So for a marketer, it is a very difficult task to tap the market, but
10

most of the companies are trying to tap this market because there is a lot of
potential for growing. Low priced products can be more successful in rural market.

There are many factors driving handset manufacturers and operators to the market.
Though India is emerging as one of the biggest telecom markets, metros and tier-2
cities are already reaching saturation point. Hence, companies have no option but
to explore newer markets to sustain the growth. As of now, India is adding around
8 mn subscribers a month, and in July 2008 the country added 9 mn subscribers.
Falling handset prices along with services available at extremely competitive
prices have made mobility accessible to the lower strata of the society, which has
mostly remained untapped. Handsets are available for as less as Rs 1,000, and
affordable prepaid packages are making mobility very tempting for the mass
market.

Another driver for this market is that the Department of Telecom is planning to
launch the second phase of mobile phone expansion covering around 2 lakh
villages. About 11,000 additional towers will be installed under the scheme to
cover habitats with population of 500. The details of the scheme are being worked
out and locations of the towers are being identified.

Possibly, the most crucial element in catering to the market is pricing. The market
is believed to be extremely price conscious. Thus, affordability is a major plank for
handset manufacturers, most of whom believe that pricing is going to be crucial to
tap first-time buyers in the rural segment. "Affordability is one of the key factors,
and our effort will be in the direction of making our products more accessible to
consumers, be it easier finance or pricing itself," says Sunil Dutt, country head,
Samsung Mobile Business.
11

Though many players say that pricing is just one of the factors, the prices of the
handsets are continuously falling, making mobility more appealing. Moreover, the
customers are looking at total cost of ownership. "Handset manufacturers have to
come out with features which are specific to the needs of the rural consumer.
Basically, affordability, access, and availability are going to play a key role," says
Naresh Priyadarshi, head of Synovate Business Consulting India.

Spice recently introduced a handset priced at just Rs 800. LG has the Bullet series
phones targeted at this segment. LG has also recently launched the KP106B
catering the rural segment. This basic phone is targeted at high capacity users with
high talktime requirements, and also supports the best-in-class battery.

Colors launched their mobile phones few months back and almost going to cover
the market very soon, targeting poor, middle class upper middle class by launching
the mobile phones in different range.

Motorola, on the other hand, has its Motoyuva series, Moto flip W220, Moto flip
W375, and Motorola W218. The company has come out with features targeted at
the rural segment like Hinglish predictive text input, Hindu calendar, Indian
wallpaper, Hindi texting, phonebook storage, and vernacular languages, which it
believes are likely to appeal to the rustic part of the country.
12

OBJECTIVES OF RESEARCH
13

 To know the awareness of the customers about


the colors mobile in the market.

 TO study how advertisement influences the


customer in buying the product.

 To identify the information source which


influences the customer to purchase the mobile?

 To study the factors influencing choice of mobile


handset.
14

COMPANY
PROFILE
15

Colors TeleTech Pvt. Ltd” a newly launched organization under the


stimulus of Lucky Group, which comprises of numerous industries, trading and
wholesale outlets of various products on sole agency dealership as a motto to
commit and bring the notion of brand building to a whole new platform. Fueled by
its directors' uncompromising vision to provide quality services, the group today
has the ability to shoot brands and companies into the top spectrum of their
respective markets.
16

COLORS Teletech Pvt. Ltd Profile: 


A latest addition to the organizational umbrella of Lucky Group, “Colors TeleTech
Pvt. Ltd.” is established to cater to the rapidly growing Telecommunication and IT
sector in India by developing and marketing communication devices. The firm
operates through a number of distributor and retailer base across the country. The
strong supply chain network of the company has enabled Colors TeleTech Pvt. Ltd
to venture into GSM and CDMA mobile handset market with launch of
“COLORS” Brand in the country.

Colors TeleTech Pvt. Ltd. enjoys strong business association with exclusive list of
supplier for the development of mobile handsets and accessories for India
market.

Colors-Mobile Colors TeleTech Pvt. Ltd. is also looking forward in working with
CDMA and GSM telecom operators in India to explore potential business
opportunities and provide the operators with inputs to bolster the industry and keep
pace with the international technology.

COMPANY VISION

Company's vision is to offer quality product and service for telecom and IT sector
and to be the premier mobile handset player (both GSM & CDMA) in the country.

We are committed in providing technologically advanced and contemporary


handsets to our customers with a dedicated interest in after sales service.
17

Products & Services


 Colors(mobile,cdm
a) Colors (mobile,cdma)
 Colors Mobile
 Colors
Mobile(Cdma)
 Colors Mobile
(gsm,Cdma)
 Colors Mobile
(Gsm Dual Sim)
 Colors Mobile (gsm
Quran Enabled)
 Colors Mobile
(Gsm Single Sim)

FINANCIAL STATUS
Sales volume : 9 Crore P.M

Net profit : RS.72, 00,000

A company earning 7% - 8% profit as per of the price of mobile in a


single handset.

Not even this a company making 10% of profit on its Advertisement.


(FOR AWARENESS)

And now the company is running in BREAK EVEN POINT (i.e. no


profit and no loss)

A latest addition to the organizational umbrella of Lucky Group, Colors TeleTech


Pvt. Ltd. is established to cater to the rapidly growing Telecommunication and IT
sector in India by developing and marketing communication devices. The firm
18

operates through a number of distributor and retailer base across the country. The
strong supply chain network of the company has enabled Colors TeleTech Pvt. Ltd
to venture into GSM and CDMA mobile handset market with launch of COLORS?

Colors TeleTech Pvt. Ltd. enjoys strong business association with exclusive list of
supplier for the development of mobile handsets and accessories for India market.
Fact Sheet
Nature of : Whole seller, Trader
Business

Major Markets : Indian Subcontinent, East Asia, Middle East and South
East Asia

Contact Details

Company Colors Teletech Pvt. Ltd.


Name:

Contact Mr. Summit Kithania


Person:
Telephone: +(91)-(11)-41408030
Fax No: +(91)-(11)-41408031
Address: A-264, Okhla Industrial Area - Phase I, New Delhi, Delhi -
110020 (India)

Head Office:
Colors TeleTech Pvt. Ltd.
A264, 2nd Floor
Okhla Industrial Area Phase 1
New Delhi 11002
19

AVAILABLLE HANDSETS(PRODUCTS)

From research to presentation, everything about your business, now on the go. 

For the highly mobile professionals, the Colors Q Series keeps you in sync with the
office without losing touch with the rest of the world. Offering true efficiency,
flexibility and control, this mobile is made for those who are passionate about
balancing business with pleasure. Whether it's business or social, colors Q1 helps
you keep in touch with life with Dual SIM Feature.

>Q1
20

>Q5

>Q7 >W1

Go beyond entertainment with the new series of Multimedia Phones. Enjoy a non-
stop supply of entertainment, songs, Videos, FM, High Resolution Camera, and
many more Exciting features; so that your world of entertainment is right there in
your pockets.
21

> G-206

> G-215

> CG-111

HANDSET FEATURES

MODEL Q-1
 Full qwerty keypad
22

 Dual sim
 Wide screen
 GPRS
 BluetoothA2DP
 Long battery
 2.0 Mega pixel camera
 Expandable memory upto 4GB
 MP3/MP4 Player
 Games
 1500mah Battery

MODEL Q-7

 Full qwerty keypad


 Display 2.0
 Digital camera
 Video player
23

 Mp3
 GPRS
 BlutoothA2DP
 Dual sim
 2GB Memory support

G-206
 FM Radio
 MP3/MP4 player
 2.0 Mega pixel camera
 Steel finish panel
 Bluetooth A2DP
 SLIM Design
 4GB Memory support
 GPRS
 Torch light
 Games
24

G-215

 Privacy lock
 Touch screen
 30 days Battery back up
 1.3 Megapixel camera
 High quality video recorder
 GPRS
 4GB Memory support
 Dual sim
 Radio
25

BRIEF REPORT
26

BRIEF REPORT
Black Box Model:

ENVIRONMENTAL BUYER'S BLACK BOX


FACTORS BUYER'S
RESPONSE
Buyer
Marketing Environmen
Characterist Decision Process
Stimuli tal Stimuli
ics

Economic Product choice


Attitudes Problem recognition
Technologica Brand choice
Product Motivation Information search
l Dealer choice
Price Perceptions Alternative evaluation
Political Purchase
Place Personality Purchase
Cultural timing
Promotion Lifestyle decision/purchase
Demographic Purchase
Knowledge Post-purchase behavior
Natural amount

The black box model shows the interaction of stimuli, consumer characteristics,
decision process and consumer responses. It can be distinguished between
interpersonal stimuli (between people) or intrapersonal stimuli (within
people). The black box model is related to the black box theory of behaviorism,
where the focus is not set on the processes inside a consumer, but
the relation between the stimuli and the response of the consumer.
The marketing stimuli are planned and processed by the companies, whereas the
environmental stimulus is given by social factors, based on the economical,
political and cultural circumstances of a society. The buyer’s black box contains
27

the buyer characteristics and the decision process, which determines the buyer’s
response.

The black box model considers the buyers response as a result of a conscious,
rational decision process, in which it is assumed that the buyer has recognized the
problem. However, in reality many decisions are not made in awareness of a
determined problem by the consumer.

Process of Buying Decision

There are several stages through which the consumer exhibit before deciding to
purchase goods or services. The process includes following six stages:-

Problem Information Search Evaluation of


Recognition Alternative

Post purchase Purchase Purchase Decision


evaluation

Problem recognition: purchase decision making process begins when a buyer


becomes aware of an unsatisfied need or problem. This is the vital stage in buying
decision process, because without recognizing need or want, an individual would
not seek to buy goods or service. There are several situations that can cause
problem recognition, these include:-

a) Reduction of stock
b) Dissatisfaction with goods in stock
c) Environmental changes
28

d) Change in financial situation


e) Marketer initiated activities.

Example: Its when a person recognizes that she cannot make a call from her
mobile phone that’s when she recognizes that her phone has been damaged i.e.
the phone has hardware problems and needs to be repaired or buying a new
mobile.

Information search: after the consumer has recognized the need, he /she will try
to find the means to solve that need. First, he/she will recall how he used to solve
such kind of a problem in the past, this is called nominal decision making.
Secondly, a consumer will try to solve the problem by asking a friend or goes to
the market to seek advice for which product will best serve his need, this is called
limited decision making.

Sources of information include:-

a) Personal sources
b) Commercial sources
c) Public sources
d) Personal sources.

Example: The user of the phone after recognizing that her phone is damaged,
she will eventually try to find out how she can repair her phone. If she cannot
repair it herself she will ask a friend to help out, if the friend cannot solve the
problem she will go to mobile repair shop, if they also can’t repair it then she
will try to find which mobile phone is good and that can serve her need. In this
process of information collection it will yield awareness of set of brands of
mobile phones she can buy.
29

Evaluation of Alternative: consumers evaluates criteria refers to various


dimensions; features, characteristics and benefits that a consumer desires to solve a
certain problem. Product features and its benefit is what influence consumer to
prefer that particular product to buy from a set of alternative products depending
on each unique features that the product offers and the benefit he/she can get out of
that feature.

Example: when that user got enough information concerning the different brands
of mobile phones available in the market, she will decide which kind of mobile
phone and brand she’s going to purchase depending upon her need for that
particular mobile, either a mobile for multimedia and entertainment, smart phone
or classic phone.

Purchase decision: Once the alternatives have been evaluated, the consumer is
ready to make a purchase decision. Sometimes purchase intention does not result in
an actual purchase. The marketing organization must facilitate the consumer to act
on their purchase intention. The provision of credit or payment terms may
encourage purchase, or a sales promotion such as the opportunity to receive a
premium or enter a competition may provide an incentive to buy now. The relevant
internal psychological process that is associated with purchase decision is
integration.

Example: After selecting brand of the phone and model from different alternatives
of mobile phones, she will make a final decision of where to buying that phone.

Purchase: This stage involves selection of brand and the retail outlet to purchase
such a product. Retail outlet image and its location are important. Consumer
usually prefers a nearby retail outlet for minor shopping and they can willingly go
to a far away store when they purchase items which are of higher values and which
30

involve higher sensitive purchase decision. After selecting where to buy and what
to buy, the consumer completes the final step of transaction by either cash or
credit.

Example: After taking a decision to purchase the mobile phone she make the final
transaction procedures.

Post purchase evaluation: Consumer favorable post- purchase evaluation leads to


satisfaction. Satisfaction with the purchase is basically a function of the initial
performance level expectation and perceived performance relative to those
expectations. Consumer tends to evaluate their wisdom on the purchase of that
particular product. This can result to consumer experiencing post purchase
dissatisfaction. If the consumer’s perceived performance level is below expectation
and fail to meet satisfaction this will eventually cause dissatisfaction, and so the
brand and/or outlet will not be considered by the consumer in the future purchases.
This might cause the consumer to initiate complaint behavior and spread negative
word of-mouth concerning that particular product.

Example: if she decided to buy a multimedia phone she will try to compare the
quality of music it provides and pictures taken if they meet her expectation. If she
will find that her expectations are meet, she will be satisfied, if she found that there
are more additional features that she did not expect this mobile phone to have, she
will be delighted, otherwise she will be dissatisfied.
31

Why company needs to analyze the factors, influence the buying Behavior of
the consumers:

 To know the Buyer’s reactions to a firm’s marketing strategy has a great


impact on the firm’s success.
 The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyze the
what, where, when and how consumers buy.
 Marketers can better predict how consumers will respond to marketing
strategies.

Keywords: Buying Behavior, Mobile Handset, Rural Indian market, Process of


consumer Buying Decision, potential in rural market.

Advertising is basically a type of communication. It attempts to persuade


potential customers to purchase or consume a product or service. It is designed
in such a way that it creates and reinforces brand image and brand loyalty.

Advertising is a non-personal form of communication intended to persuade an


audience (viewers, readers or listeners) to purchase or take some action upon
products, ideals, or services. It includes the name of a product or service and how
that product or service could benefit the consumer, to persuade a target market to
purchase or to consume that particular brand. These brands are usually paid for or
identified through sponsors and viewed via various media. Advertising can also
serve to communicate an idea to a mass amount of people in an attempt to
convince them to take a certain action, such as encouraging 'environmentally
friendly' behaviors, and even unhealthy behaviors through food consumption,
video game and television viewing promotion, and a "lazy man" routine through a
32

loss of exercise . Modern advertising developed with the rise of mass production in
the late 19th and early 20th centuries. Mass media can be defined as any media
meant to reach a mass amount of people. Several types of mass media are
television, internet, radio, news programs, and published pictures and articles.[1]

Commercial advertisers often seek to generate increased consumption of their


products or services through branding, which involves the repetition of an image or
product name in an effort to associate related qualities with the brand in the minds
of consumers. Different types of media can be used to deliver these messages,
including traditional media such as newspapers, magazines, television, radio,
outdoor or direct mail; or new media such as websites and text messages.
Advertising may be placed by an advertising agency on behalf of a company or
other organization.

Non-commercial advertisers that spend money to advertise items other than a


consumer product or service include political parties, interest groups, religious
organizations and governmental agencies. Nonprofit organizations may rely on
free modes of persuasion, such as a public service announcement.

In 2007, spending on advertising was estimated at more than $150 billion in the
United State and $385 billion worldwide.

ADVERTISING AND
33

CONSUMER BEHAVIOUR

Introduction
The role of advertising in determining consumer behaviour has been under the
microscope for several years. However, some of the arguments, assumptions and
policy options proposed – for example in relation recently to food advertising - are
not based on an in-depth understanding of the way advertising works with
consumers and its influence on markets. The misconceptions seem to be based on
an entirely understandable intuitive reaction: how can advertisers claim that
advertising does not increase consumption and sales and still spend so much
money on it?
Towards a theoretical explanation
In the academic literature on the effects of advertising on consumer behaviour
there are broadly two schools:
1) Advertising as a strongly persuasive force (Barry 1987, Shankar 1999)
This is the intuitive view, ingrained in the collective mind, despite being criticised
for the last three decades by other eminent academics (Ehrenberg, 1997, Ambler
2000).
Proponents of this view are invariably critical of advertising. They contend that
accurate knowledge about consumers – how they buy, why they buy and where
they buy – is unnecessary as it is possible to manipulate hapless buyers into parting
with their money in return for products that they do not want.
These types of models have survived despite various empirical studies showing

that the view of advertising as a strongly persuasive force is largely unfounded.1


34

2) Advertising as a tool of competition


For almost thirty years, a considerable number of academics have asserted that the
‘strong force’ theory does not apply in all market sectors. These scholars suggest
that when it comes to marketing of frequently purchased goods (such as food) in
mature markets volumes of advertising merely reflect an attempt to maintain a
market share in highly competitive but fragmented markets, the total volume of

advertising does not affect total market size.2


The simple, yet highly complex reality is that advertising works in different ways
and to different effects depending on many intrinsic and extrinsic variables.
Why do advertisers advertise?
Primarily to develop consumer value in their brands. The overwhelming majority
of ads are for brands, with the obvious exceptions of political, public service and
charity advertising. Brands deliver choice, innovation, confidence and consumer
value. The value of most businesses does not reflect their tangible assets, but their
brand assets and therefore leads to business success being very largely driven by
the ability of a company’s brands delivering a higher level of consumer satisfaction
than competing brands.
Advertising is principally a tool of brand competition and it is brand competition
that puts consumers in charge and renders businesses entirely vulnerable to the
consumer - in effect a continuous, real time election.
35

The role of advertising


Advertising fulfils a number of tasks usually in the context of brands.
Advertising:

- Awareness creates

- communicates attributes and benefits (rational and emotional)

- reminds and refreshes to ensure top of mind awareness and that a brand is
in consumers consideration set

- repeat purchase therefore generates

- and over time contributes to loyalty and the franchise of a brand

… it does not persuade consumers against their will to do things they do not
wish to do, or to purchase things they do not wish to purchase.
36

ADVERTISEMENT OF MOBILE PHONES IN PUBLIC


PLACES
37
38
39

Effects Of Advertising On Society

Every time we open a newspaper or we turn on the TV, we see sellers of almost
identical products spending huge amounts of money in order to convince us to buy
40

their brands. Every year, each typical American watches 1550 hours of TV, listens
1160 hours on radio, and spends 290 hours reading newspapers and magazines. So
every day, each American watches 100 TV advertisements, 100 to 300 ads through
other mass media, and in one single year receives 216 pieces of direct mail
advertising, and almost 50 phone calls from telemarketers 2). All these, because
sellers of everything, from computers to detergents, believe that advertising is
essential to the product. The critics state that advertising is really beneficial to the
consumers: They believe that advertising “creates” consumers that are better
informed about the characteristics of the commodities, and that it does not alter the
way in which the companies evaluate their products. Also, they believe that
advertising creates price sensitivity for the consumers that buy the best products
for their value. Finally, they think that with advertisement, entries for new brands
are much easier because of the communication with the potential consumers that
commercials offer. Advertising, collective term for public announcements
designed to promote the sale of specific commodities or services. Advertising is a
form of mass selling, employed when the use of direct, person-to-person selling is
impractical, impossible, or simply inefficient. It is to be distinguished from other
activities intended to persuade the public, such as propaganda, publicity, and
public relations.

Argument: How Advertising has Changed and


its Current Social Implications
Advertising has changed in its culture, largely due to the switch from
informational to a more expressive conceptual way to communicate with
consumers. This switch has offered the audience less cognition about products
41

and more sensory orientated heuristics about positions and branding of


companies. Previous to the 1970s consumers were exposed to informative ads
that helped them make decisions by exploring the positives of products and the
negatives of competitors. Post seventies, informational ads were not as
effective, as consumers were becoming more aware of deception in the
government due to the Watergate scandal and the Vietnam war, they then
associated that deception with media and advertising, forcing advertisers to
change tactics. With change of the types of ads came emotion and heuristically
approached messages. This style of advertising carried through the nineties and
into the two-thousands, with the introduction of the Internet, mediums mixed,
video became easily available with interaction, this changed the strict lines
between informational and emotional advertising. The internet allows for users
to experience traditional informative advertising in many different forms, while
encouraging interaction with consumers by click-through sites and links. The
internet encourages a gateway in which consumers can go beyond the depth of
the emotional and contextual advertisement to dive into a world of information
and rhetoric. These gateways include banner ads, pop up ads, text messaging
advertisements, and online video ads. Each of these methods of advertisements
offer a different way for a consumer to become more involved in the marketing
process.
The foremost aim of this project is to develop a framework for an analysis of
new media advertising that focuses on its current implications and its switch
from a pure contextual aspect to hybrid between informational and conceptual
as a way to persuade consumers. This assessment will perform analyses of this
form of new media advertising and how this bridge between types of
informational and emotional advertising has changed the way consumers make
decisions about products and services.
42

In attempt to convey proper meaning to readers, we would like to define terms


and provide examples to help clarify any confusion.

Informational Advertising: This type of advertising exhibits a more central


processing route which induces cognitive evaluation of the aspects in the
advertisements. Many ads of this type are longer in length, or in the case of
print advertising, use a lot more text including facts, diagrams, or anything used
to elaborate a message.

Scope of Advertising/ Marketing Skills

The scope of advertising has a lot of future to go because in present life the
technology has been increased that much. The scope of advertising management
mainly depends on the change in technology,for example now-a-days advertising
can make a blender by increase the sale of onething to many people by publicity
such publicity can create along sale and services towards the product used by them.

Public service advertising

The same advertising techniques used to promote commercial goods and services
can be used to inform, educate and motivate the public about non-commercial
issues, such as HIV/AIDS, political ideology, energy conservation and
deforestation.
43

Advertising, in its non-commercial guise, is a powerful educational tool capable of


reaching and motivating large audiences. "Advertising justifies its existence when
used in the public interest—it is much too powerful a tool to use solely for
commercial purposes." Attributed to Howard Gossage by David Ogilvy.

Public service advertising, non-commercial advertising, public interest advertising,


cause marketing, and social marketing are different terms for (or aspects of) the
use of sophisticated advertising and marketing communications techniques
(generally associated with commercial enterprise) on behalf of non-commercial,
public interest issues and initiatives.

Marketing Mix

The marketing mix has been the key concept to advertising. The marketing mix
was suggested by Jeremy McCarthy, professor at Harvard Business School, in the
1960’s. The marketing mix consists of four basic elements called the four P’s
Product is the first P representing the actual product. Price represents the process
of determining the value of a product. Place represents the variables of getting the
product to the consumer like distribution channels, market coverage and movement
organization. The last P stands for Promotion which is the process of reaching the
target market and convincing them to go out and buy the product.Geana, Mugur
Valentin. [9]

Types of advertising
44

Paying people to hold signs is one of the oldest forms of advertising, as with this
Human directional pictured above

A bus with an advertisement for GAP in Singapore. Buses and other vehicles are
popular mediums for advertisers.

A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station

Virtually any medium can be used for advertising. Commercial advertising media
can include wall paintings, billboards, street furniture components, printed flyers
and rack cards, radio, cinema and television adverts, web banners, mobile
telephone screens, shopping carts, web popup, skywriting, bus stop benches,
human billboards, magazines, newspapers, town criers, sides of buses, banners
45

attached to or sides of airplanes in-flight advertisements on seatback tray tables or


overhead storage bins, taxicab doors, roof mounts and passenger screens, musical
stage shows, subway platforms and trains, elastic bands on disposable diapers,
doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles
(grabertising), the opening section of streaming audio and video, posters, and the
backs of event tickets and supermarket receipts. Any place an "identified" sponsor
pays to deliver their message through a medium is advertising.

Television

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


advertising format, as is reflected by the high prices TV networks charge for
commercial airtime during popular TV events. The annual Super Bowl football
game in the United States is known as the most prominent advertising event on
television. The average cost of a single thirty-second TV spot during this game has
reached US$3 million (as of 2009).

The majorities of television commercials feature a song or jingle that listeners soon
relate to the product.

Radio advertising

Radio advertising is a form of advertising via the medium of radio.


46

Radio advertisements are broadcasted as radio waves to the air from a transmitter
to an antenna and a thus to a receiving device. Airtime is purchased from a station
or network in exchange for airing the commercials. While radio has the obvious
limitation of being restricted to sound, proponents of radio advertising often cite
this as an advantage.

Press advertising

Press advertising describes advertising in a printed medium such as a newspaper,


magazine, or trade journal. This encompasses everything from media with a very
broad readership base, such as a major national newspaper or magazine, to more
narrowly targeted media such as local newspapers and trade journals on very
specialized topics. A form of press advertising is classified advertising, which
allows private individuals or companies to purchase a small, narrowly targeted ad
for a low fee advertising a product or service. There are several tips on making a
print ad stand out more. ]

Online advertising:-Online advertising is a form of promotion that uses the


Internet and World Wide Web for the expressed purpose of delivering marketing
messages to attract customers. Examples of online advertising include contextual
ads that appear on search engine results pages, banner ads, in text ads, Rich Media
Ads, Social network advertising, online classified advertising, advertising networks
and e-mail marketing, including e-mail spam.

In-store advertising
47

In-store advertising is any advertisement placed in a retail store. It includes


placement of a product in visible locations in a store, such as at eye level, at the
ends of aisles and near checkout counters, eye-catching displays promoting a
specific product, and advertisements in such places as shopping carts and in-store
video displays.

Celebrities

: Celebrity branding

This type of advertising focuses upon using celebrity power, fame, money,
popularity to gain recognition for their products and promote specific stores or
products. Advertisers often advertise their products, for example, when celebrities
share their favorite products or wear clothes by specific brands or designers.
Celebrities are often involved in advertising campaigns such as television or print
adverts to advertise specific or general products.

The use of celebrities to endorse a brand can have its downsides, however. One
mistake by a celebrity can be detrimental to the public relations of a brand. For
example, following his performance of eight gold medals at the 2008 Olympic
Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was
terminated, as Kellogg's did not want to associate with him after he was
photographed smoking marijuana.

Sales Promotions
48

Sales promotions are another way to advertise. Sales promotions are double
purposed because they are used to gather information about what type of customers
you draw in and where they are, and to jumpstart sales. Sales promotions include
things like contests and games, sweepstakes, product giveaways, samples coupons,
loyalty programs, and discounts. The ultimate goal of sales promotions is to
stimulate potential customers to action. [17]

Media and advertising approaches

Increasingly, other media are overtaking many of the "traditional" media such as
television, radio and newspaper because of a shift toward consumer's usage of the
Internet for news and music as well as devices like digital video recorders (DVRs).

Digital signage is poised to become a major mass media because of its ability to
reach larger audiences for less money. Digital signage also offer the unique ability
to see the target audience where they are reached by the medium. Technology
advances has also made it possible to control the message on digital signage with
much precision, enabling the messages to be relevant to the target audience at any
given time and location which in turn, gets more response from the advertising.
Digital signage is being successfully employed in supermarkets. Another
successful use of digital signage is in hospitality locations such as restaurants. and
mall]

Niche Marketing
49

Another significant trend regarding future of advertising is the growing importance


of the niche market using niche or targeted ads. Also brought about by the Internet
and the theory of The Long Tail, advertisers will have an increasing ability to reach
specific audiences. In the past, the most efficient way to deliver a message was to
blanket the largest mass market audience possible. However, usage tracking,
customer profiles and the growing popularity of niche content brought about by
everything from blogs to social networking sites, provide advertisers with
audiences that are smaller but much better defined, leading to ads that are more
relevant to viewers and more effective for companies' marketing products. Among
others, Comcast Spotlight is one such advertiser employing this method in their
video on demand menus. These advertisements are targeted to a specific group and
can be viewed by anyone wishing to find out more about a particular business or
practice at any time, right from their home. This causes the viewer to become
proactive and actually choose what advertisements they want to view.]

Criticism of advertising

While advertising can be seen as necessary for economic growth, it is not without
social costs. Unsolicited Commercial Email and other forms of spam have become
so prevalent as to have become a major nuisance to users of these services, as well
as being a financial burden on internet service providers.[26] Advertising is
increasingly invading public spaces, such as schools, which some critics argue is a
form of child exploitation.[27] In addition, advertising frequently uses psychological
pressure (for example, appealing to feelings of inadequacy) on the intended
consumer, which may be harmful.
50

Hyper-commercialism and the commercial tidal wave

Criticism of advertising is closely linked with criticism of media and often


interchangeable. They can refer to its audio-visual aspects (e. g. cluttering of public
spaces and airwaves), environmental aspects (e. g. pollution, oversize packaging,
increasing consumption), political aspects (e. g. media dependency, free speech,
censorship), financial aspects (costs), ethical/moral/social aspects (e. g. sub-
conscious influencing, invasion of privacy, increasing consumption and waste,
target groups, certain products, honesty) and, of course, a mix thereof. Some
aspects can be subdivided further and some can cover more than one category.

Industry Future

Global Advertising

Advertising has gone through five major stages of development: domestic, export,
international, multi-national, and global. For global advertisers, there are four,
potentially competing, business objectives that must be balanced when developing
worldwide advertising: building a brand while speaking with one voice, developing
economies of scale in the creative process, maximising local effectiveness of ads,
and increasing the company’s speed of implementation. Born from the
evolutionary stages of global marketing are the three primary and fundamentally
different approaches to the development of global advertising executions:
exporting executions, producing local executions, and importing ideas that travel.

Advertising research is key to determining the success of an ad in any country or


region. The ability to identify which elements and/or moments of an ad that
contributes to its success is how economies of scale are maximized. Once one
51

knows what works in an ad, that idea or ideas can be imported by any other
market. Market research measures, such as Flow of Attention, Flow of Emotion
and branding moments provide insight into what is working in an ad in any country
or region because the measures are based on the visual, not verbal, elements of the
add.

Advertising Education

Advertising education has become widely popular with bachelor, master and
doctorate degrees becoming available in the emphasis. A surge in advertising
interest is typically attributed to the strong relationship advertising plays in cultural
and technological changes, such as the advance of online social networking. A
unique model for teaching advertising is the student-run advertising agency, where
advertising students create campaigns for real companies.[119] Organizations such as
American Advertising Federation and AdU Network partner established companies
with students to create these campaigns.

Advertising research

Advertising research is a specialized form of research that works to improve the


effectiveness and efficiency of advertising. It entails numerous forms of research
which employ different methodologies. Advertising research includes pre-testing
(also known as copy testing) and post-testing of ads and/or campaigns—pre-testing
is done before an ad airs to gauge how well it will perform and post-testing is done
after an ad airs to determine the in-market impact of the ad or campaign on the
consumer Continuous ad tracking and competing examples of post-testing
advertising research types.
52

 Emergence of Advertising in America, 9,000 advertising items and


publications dating from 1850 to 1920, illustrating the rise of
consumer culture and the birth of a professionalized advertising
industry in the United States.
 Advertising is paid, nonpersonal communication that is designed to
communicate in a creative manner, through the use of mass or
information-directed media, the nature of products, services, and
ideas. It is a form of persuasive communication that offers
information about products, ideas, and services that serves the
objectives determined by the advertiser. Advertising may influence
consumers in many different ways, but the primary goal of advertising
is to increase the probability that consumers exposed to an
advertisement will behave or believe as the advertiser wishes. Thus,
the ultimate objective of advertising is to sell things persuasively and
creatively. Advertising is used by commercial firms trying to sell
products and services; by politicians and political interest groups to
sell ideas or persuade voters; by not-for-profit organizations to raise
funds, solicit volunteers, or influence the actions of viewers; and by
governments seeking to encourage or discourage particular activities,
such a wearing seatbelts, participating in the census, or ceasing to
smoke. The forms that advertising takes and the media in which
advertisements appear are as varied as the advertisers themselves and
the messages that they wish to deliver.

The Functions of Advertising


53

 Although the primary objective of advertising is to persuade, it may achieve


this objective in many different ways. An important function of advertising
is the identification function, that is, to identify a product and differentiate it
from others; this creates an awareness of the product and provides a basis for
consumers to choose the advertised product over other products The
identification function of advertising includes the ability of advertising to
differentiate a product so that it has its own unique identity or personality.
One famous example of this is found in the long-running advertising for
Ivory Soap. In the late 1800s, a soap maker at Procter and Gamble left his
machine running during his lunch period and returned to find a whipped
soap that, when made into bars, floated. The company decided to capitalize
on this mistake by advertising Ivory Soap with the phrase “It Floats.” This
characteristic of Ivory Soap served to uniquely identify it and differentiate it
from other bars of soap.
 The information function of advertising can also be found in advertising for
Ivory Soap. For more than one hundred years, advertisements for Ivory Soap
have focused on such product characteristics as purity of ingredients, child
care, and soft skin. These characteristics, in turn, were often related to key
benefits that could be obtained from using Ivory Soap. Thus, various
advertisements emphasized “That Ivory Look,” which focused on the
relationships between product characteristics and the benefits of obtaining a
fresh and healthy appearance.
 The third and most important function of advertising, persuasion, is also
evident in the long-running Ivory Soap advertising campaigns. The
advertiser, Procter and Gamble, has linked Ivory Soap with obtaining
benefits that are important to customers: a fresh and healthy appearance for
women, a mild, nonirritating method for bathing babies, and a novelty for
54

children in the tub (since it floats). The benefits of the product suggest
reasons to buy and use Ivory Soap and thus provide a basis for persuading
consumers. Different benefits are important to different customers. Thus, to
realize its full potential as a persuasive tool, advertising must often be
tailored to emphasize those benefits that are important and meaningful for a
particular type of customer or a particular use of the product.
 Advertising has a very long history. It existed in ancient times in the form of
signs that advertised wares in markets. In Europe and colonial America,
criers were often employed by shopkeepers to shout a message throughout a
town. Medicine shows, in which there was a combination of entertainment
and an effort to sell a product, usually a patent medicine or elixir, presaged
modern advertising by creating an entertainment context in which
advertising was embedded. Advertising became especially important in the
second half of the nineteenth century as retailers began to advertise products
and prices that would bring customers to their stores. Advertising for patent
medicines also played a prominent role in the development of advertising,
and by the end of the nineteenth century, the firms that would become
advertising agencies had already begun to form.
 Advertising and Psychology
 Although advertising has a very long history, serious study of advertising
and its effects on consumers did not begin until early in the twentieth
century. Psychologists began to recognize that advertising was an important
form of communication and began to apply the theories and methods of
psychology to its study. Individuals such as Harlow Gale began to conduct
experiments designed to determine the power of individual advertisements to
attract attention and persuade consumers to buy. Walter Dill Scott of
Northwestern University wrote the book The Theory of Advertising (1903),
55

which sought to build a theoretical understanding of advertising based on the


principals of psychological science..
 The application of psychological theories to advertising provides an
understanding of how consumers process advertising messages and make
purchase decisions. Theories of attention, information processing, attitude
formation, and decision making all have relevance to understanding how
advertising affects consumers. Another important application of
psychological principals is to develop an understanding of consumer needs
so that products can be developed, designed, and communicated in a manner
that reflects the relevant and important needs of consumers.
 How Advertising Works
 Advertising is a form of communication. Like all forms of communication,
it has many different effects and these effects are often related to one
another. The message in an advertisement, no matter how strong and
persuasive, will have no effect if the consumer does not see the
advertisement or pay attention to it. One useful framework for understanding
these multiple effects and their interrelationships is called the hierarchy of
effects model. The hierarchy of effects model identifies different stages in
the communication process. Effective communication must begin by
obtaining the attention of the consumer. Then, the consumer must process
the information carried in the advertisement. Such processing of information
may be followed by an evaluation of the information, the source of the
information, and ultimately the desirability of any actions suggested by the
communication. This evaluation process may, in turn, give rise to the
formation of attitudes, the development of intentions for future action, and,
eventually, an action. Different characteristics of an advertisement have
effects at different points in this hierarchy.
56

 Getting Attention
 In the context of advertising, the first hurdle for an advertiser is to obtain the
attention of the consumer. This involves two important actions. First, it is
important for the advertiser to know where a communication should be place
to increase the odds of reaching a particular type of consumer; this is the
media decision. Careful analysis of the consumer use of various media (e.g.,
what television shows they watch, what route they take to work, and what
magazines they read) allows the advertisers to identify those media to which
target consumers are most likely to be exposed. Placing an advertisement in
a place where relevant consumers are unlikely to see it assures that the
advertising will be ineffective. However, just because a consumer happens
to view a television show or read a magazine in which an advertisement is
placed does not a guarantee that the consumer will see the advertisement.
 Processing Information
 Consumers may attend to advertisements for a variety of reasons. Attention
alone is not sufficient to make the advertising successful. Advertisements
that are interesting, entertaining, and even irritating can attract attention;
however, such advertisements may not result in the consumer attending to or
understanding the intended message of the advertiser. Assuring that
consumers attend to and understand the intended message rather than
peripheral characteristics (such as a joke or song) requires careful crafting of
the advertising message. Advertising research has demonstrated that the
message must be clear and meaningful to the consumer; if the consumer
does not comprehend the message, it will not have the desired effect. Thus,
it is important when creating the advertisement to understand how
consumers think about products and product benefits and to use language
57

that the consumer will understand. It is also important that the product and
the product message be the focal point of the advertisement.
 Information Evaluation
 After a consumer has processed information, there is a need to evaluate it.
The consumers will need to determine how believable the information is and
how relevant it is to their individual situation in life and to their behavior as
consumers. This evaluation phase poses significant problems for advertisers.
Most consumers tend to discount the information in advertising because they
understand that the purpose of the advertising is to persuade. Making an
advertising message believable is not easy; though often it is sufficient to
make the consumer curious enough to try the product. Such curiosity is often
referred to as interested disbelief. Advertisers use a variety of devices to
increase the believability of their advertising: celebrities or experts who are
the spokespersons for the product, user testimonials, product
demonstrations, research results, and endorsements.
58

Research Methodology
59

To fulfill the objectives of the research, various techniques been used to collect the
Data. Primary data was collected through an unstructured interview with the
people and a structured questionnaire will be given to fill by the
respondents..Secondary data will be collected through various journals, periodicals
research reports and online data. The questionnaire will be based on the price,
looks, quality and on the advertisement. The respondent’s demographic profile will
be categorized on the basis of age, gender, income, education and profession. The
researcher will be focused only effect of advertisement on consumer buying
behavior, For this research, researcher will be used different tools like, sampling
size, Filling of questionnaire through people, Making proper use of excel sheet for
framing pie and Bar graph.

1) DATA SOURCES: This study is mainly based on primary data from people
living in Delhi and Ghaziabad.
2) RESEARCH APPROACH: Survey research
3) SAMPLING SIZE: 100 people.
4) RESEARCH INSTRUMENT: Structured questionnaire in English.
5) SAMPLING UNIT: Respondents visits the cell phone communication.
6) RESEARCH DESIGN: Descriptive Research

Research Design
60

Exploratory Reseach Conclusive Research

Descriptive Research Causal Research


As the Survey done in Delhi and Ghaziabad Region with the help of
Questionnaire by taking the views and opinion of different people about
the Advertisement of colors mobile and how much impact it posses on
Buying Decision.

The sample size is 100

The research been design is the Descriptive one.

A Descriptive research is the research which


describes the characteristics of relevant groups, such as consumers,
salespeople, organization, or market areas. For example we could
develop a profile of the heavy users of prestigious department stores.

To estimate the percentage of units in a specified population exhibiting a


certain behavior.

To determine the perception of product characteristics.

To determine the degree to which marketing variable is associated.


61

Data Analysis
And
Interpretation
62

Q1. Age (yrs) :- below 20 20-30 30-40 40-50


above 50

10% 15%

20% below 20
20-30
30-40
40-50
above 50
35%

20%

Below 20 respondent 15%

20-30 respondent 35%

30-40 respondent 20%

40-50 respondent 20%

Above 50 respondent 10%


63

Q2.Sex:- Male Female

27%

MALE
FEMALE

73%

Male respondent 73%

Female respondent 27%

Q3.Educational Qualification:
Below 12th under graduate, graduate
post graduate
64

10%
23%

23% BELOW 12
UNDERGRADUATE
GARADUATE
POST GRADUATE

44%

Below 12th responded 10%

Under graduate responded 23%

Graduate responded 44%

Post graduate responded 23%

Q4.Profession /Occupation
Agriculture service Business
labor class

Other______________
65

3% 8% 8%

AGRICULTURE
SERVICE
35% BUSINESS
LABOUR
OTHERS

46%

Agriculture prefer 8%

Service prefer 35%

Business prefer 46%

Labor prefer 3%

Others 8%

Q5.Self income/Family income (p.m.)


Below Rs. 5,000 Rs.5, 000-10,000
Rs.10, 000-15,000 Above Rs. 15,000
if other, specify___________________
66

8%
22%

BELOW 5000
27% 5000-10000
10000-15000
ABOVE 15000
IF ANY OTHER SPECIFY

43%

Below 5000 prefer 8%

5000-10000 prefer 27%

10000-15000 prefer 43%

Above 15000 prefer 22%

Q.6 Do you have mobile phone?


Yes No
67

15%

YES
NO

85%

85% responded yes

15% responded no

Q.7 Are you aware of colors mobile in the market?


Yes NO
68

32%
yes
no
68%

32% people respondent yes

68% people respondent no

Q8. Have you seen the advertisement of colors mobile?


Yes No
69

32%

Yes
No

68%

68% Respondent Yes


32% Respondent No

Q.9 what motivates you to purchase the mobile phone after seeing
the advertisement?

Features Design Colors Price


70

Models

15%
25%

Features
Design
Colors
33% 17% Price
Models

10%

About features responded 25%


About design responded 17%
About colors responded 10%
About price responded 33%
And about models 15% responded

Q.10 which mobile phones do you have?

Nokia Sony Samsung Motorola


71

LG
11% Reliance
NOKIA
Micromax
15% 39% SONY
SAMSUNG
MOTOROLA Colors
LG
2% RELIANCE
4% MICROMAX Others
COLORS
3% OTHERS
21% 6%

Nokia prefer
by 39% Sony prefer by 6%

Samsung prefer by 21% Motorola prefer by 3%

LG prefer by 4% Reliance by 2%

Micromax 14% Colors 11%

Q.11 which source of information influence you to purchase the mobile


phone?

News paper TV Internet Mobile phone retailer

Magazine Radio Friends


others_______________
72

2% 3%
5%

14% NEWSPAPER
37% T.V
INTERNET
MOBILE PHONE RETAILER
MAGZINE
RADIO
13% FRIEND
OTHER Newspaper
influence 37%
26% TV influence
26%

Internet influence 13% mobile phone retailer influence 14%

Magazine influence 5% radio influence 2%

Friend influence 3%

Q.12 who helped you for making a decision to purchase the mobile phone?

Self decision Friends Family Mobile phone


retailer
Advertisement
73

7%

25%
15%
SELF DECISION
FRIENDS
FAMILY
MOBILE PHONE RETAILERS
Advertisement
18%

35%

Self decision25%
Friends suggests 35%
Family suggests 18%
Mobile phone retailer suggests 15%
Advertisement 7%
74

FINDINGS

Findings
CUSTOMER PROSPECTIVE
75

 Awareness of the colors mobile is very low.


 In the survey it was found people more believe in seeing the
advertisement in television.
 Newspaper ads of colors mobile gave a positive impact on 37% of
the customer that the customer directly visit to store and ask for the
color handset.
 The advertisement not only makes the product aware but also
makes it differentiate with other product also.
 In the survey it was also found that male awareness and
purchasing preferences are more in comparison to female.
 Survey also focus on the income group, the people who is having
the income of 10000-15000 they purchase more of the cell phones.
 Distributions of pamphlet work as a “EYE CATCHING” things
in the mindset of the customer.

RETAILER’S PROSPECTIVE (CELL PHONE


COMMUNICATION)

 The retailer does not have to focus more on the product as


customer known about it through advertisement.
 The customer who search for the user friendly handset and he was
not aware of the colors handset, at that time retailer creates
awareness about the product through “word of mouth”.
76

 The retailer for the promotion of the colors handset they hire
PROMOTER’S to make the awareness to those customer who
haven’t seen the advertisement.
 T-shirts of colors mobile distributed by the company to the retail
outlet employees for promotions.
 Along with the colors mobile handset the free gifts such as
Memory card, Sim card or mobile cover was been provided by the
retailer personally.
 Small Banners of colors mobile been placed by the retailer in and
outside of the outlet store.

RESEARCHER OBSERVATION

 The retailer is not fixed with one price in selling the colors
handset; it varies from customer to customer.
 As the retailer is also keeping the other Brand, so it can’t
stick to colors mobile only. (pressure from other Brand is
also there)
 A colors company is not providing any free Accessories on
the purchase of the Handset to the customers, what others do.
 Non availability of all models in the Retail outlet.
 Distribution channel is weak.
 Customer focus& Belief are more on the Advertisements .
77

SUGGESTIO
NS

 HOARDINS and BANNERS should be focus more by the


company on the public places such as Shopping malls,
Metro Stations, Airports or Park where the footfall of the
people are more.
78

Advertisement should be done in the movies during the break


time or between the pictures in the cinema halls.

SPONSERSHIP should be done by the company on the state


level matches or any fair for more awareness.
 BRAND AMBASSORDER should be made by the company
for customer faith and promotions.
 Company’s offers pack such as FREE MEMORY CARD
or a DISCOUNT OFFER or COUPONS system should be
given on the purchase of the colors mobile should made it
aware with the help of the advertisement.
 Company should go for the VIRAL MARKETING
 Company should have tie up with ELECTRONIC GIANT.
such as if the company will tie up with DELL company by
providing free handsets of color mobile on purchase of any
Dell model.
 Focus should be made on the youths, mostly collegers and
schoolers who are always willing to purchase the latest
handset, Which satisfy their needs.(so canopy should be
placed nearby school and college)

 Companies should also tie up with telecom service provider


such as AIRTEL, DOLPHIN, and VODAFONE etc
79

 The colors mobile should look to have overshadowed


STEREOTYPING the Chinese product as their competitors
such as lava, karbon mobile follow the same.
80

Conclusion

The mobile telecom services are now being widely consumed by the Indian
society. Rather these have become an essential part of their lives. Besides
communication, people now seek entertainment and other features that are
compatible to their self-image and lifestyle. The self-image and lifestyle may vary
among genders, income, profession, education and different age groups. Therefore,
the study was carried out among consumers of different age, income, profession,
and education and gender groups to understand the importance of factors that
influence their mobile handset buying. The intense competition between
manufacturers has forced them to expand their market base. The study concludes
that the users of age group of 20-30 years is a very big segment of mobile users
81

than other groups; rather they consider ‘ price, quality, brand name, discount,
camera, MP3/FM etc are more important than users of any other age groups. This
may be due to the reason that majority of Indian youth seeks excitement in the
products and also they are more exposed to new technological developments than
other age groups particularly mature ones. The mature consumers on the other
hand may have priorities for other products due to other obligations. That is why
they are more price-sensitive. Also they have less knowledge about new featured
mobile (especially in rural) and therefore, consider ‘Quality, price, brand and
discounts. Overall, people have given the least preference to the ‘two-in-one pack.
The research found out the large target segment (under the age group of 20-30
years) to focus for mobile companies. And the source which provides the
information about the mobile phones is newspapers. The research also provides the
effective strategies to focus the target segment.

 Scope of further research


The study can be extended to more number of variables such as different
income groups, different occupations, and different personality traits and
lifestyles of consumers and different locations. The future studies may
consider the some extra factors like: battery backup, torch, gaming features
and video player etc. and researcher also may increase the number of
respondents.

 Managerial Implications
82

It is very important for the marketers to understand the preferences of the


users belonging to different age and gender groups. The marketers must be
very clear about their customer base while offering the products. Different
customers value a product or a firm differently. Therefore, all products are
not meant for all customers. Therefore, the companies must translate
preferences of their target segments into the diverse models meant for
different segments. Moreover the companies may design their
communication messages according to the factors considered the most
important by the definite age group, gender, income, education, occupation
after correlating with price, quality, brand name discount etc. The companies
may add as many frills as they like, for the products (mobile phones) to be
offered to the young of 20-30 years group. But at the same time they must
consider that there can be some consumers (up to age group 20-30 years and
below this), who though may have these preferences, yet they depend upon
others (parents) for finances. In such cases, it becomes important to
understand their ability to buy independently.

BIBLIOGRAPHY
83

1) Consumer Behavior, ninth edition (Leon G. Schiff man, Leslie lazar Kanuk)
2) Foundation of advertising (S.A chunawalla & K.C sethia)
3) Colors websites(www.colors-mobile.com)
4) http://www.udel.edu/alex/chapt6.html
5) Marketing Management Text And Cases, S H H Kazmi
6) http://en.wikipedia.org/wiki/consumer_behaviour
7) http://en.wikipedia.org/wiki/buyer_decision_processes
8) Ganesh, J., Arnold, M. J. and Reynolds, K. E. (2000).Understanding the Customer
Base of Service Providers: An Examination of the Differences between Switchers and Stayers.
Journal of Marketing, 64 (3), pp. 65-87.
9) Goldsmith, R. E. (2002). Some personality traits of frequent clothing buyers. Journal of Fashion
Marketing and Management, 6 (3), pp. 303-316.
84
10) Marketing management(Philip kotler)
85

ANNEXURE

Questionnaire in English

Questionnaire
EFFECT OF ADVERTISEMENT ON CONSUMER BUYING BEHAVIOR

Institute of Technology & science, Ghaziabad


86
1. Name __________________________________

2. City_________________________________

3. Age (yrs) :- below 20 20-30 30-40 40-50 above 50

4. Sex:- Male Female

5. Educational Qualification:
Below 12th under graduate, graduate post graduate

Other______________
6. Profession /Occupation
Agriculture service Business labor class

Other______________
7. Self income/Family income(p.m.)
Below Rs. 5,000 Rs.5, 000-10,000 Rs.10, 000-15,000

Above Rs. 15,000 if other, specify___________________


8. Do you have mobile phone?
Yes No

9. Which mobile phone do you have?

Nokia Sony Samsung Motorola

LG Reliance Micromax Colors Others

10. Are you aware of colors mobile phone in the market?

Yes No

11. Have you seen the advertisement of colors mobile?

Yes No

12. What motivates you to purchase the mobile phone after seeing the advertisement?

Features Design Colors Price Models


87
13. Which source of information influences you to purchase the mobile phone?

News paper TV Internet Mobile phone retailer

Magazine Radio Friends others_______________

14.Who helped you for making a decision to purchase the mobile phone?

Self decision Friends Family Mobile phone retailer

Advertisement

15.Please indicate the importance of each of the characteristics in choosing your mobile phone.

Extremely important (5) some- what important (4) neither important nor unimportant (3)

Some-what unimportant (2) extremely unimportant (1)

5 4 3 2 1

a) Price of mobile

b) Quality of mobile

c) Style of mobile

d) Attributes/function of mobile

e) Brand mobile

16. Please specify the importance of each of the characteristics in choosing your mobile phone? (use
the instructions of same as question no. 12th ).

a) Two-in-one pack

b) Discounts

c) Camera
88

d) Mp3 player/ FM

e) Display (B/W&/Color)

17.Any other features that you would like to see in your phone which you have not seen in the
advertisement so far.(suggestion if any)

Thanks for your co-operation

You might also like