A Study on Effect of Advertisement

on
Consumers
 Presented by:
Pankaj Dogra-21
Pankhuri Sharma-22
Pardeep Puri-23
Prashant Malhotra-24
Preeti Jamwal-25
Introduction
DEFINITION OF ADVERTISING
The word advertising originates from a Latin word
advertise, which means to turn to. The dictionary
meaning of the term is “to give public notice or to
announce publicly”.
The American Marketing Association, Chicago, has
defined advertising as “any form of non-personal
presentation or promotion of ideas, goods or services,
by an identified sponsor.”
What Advertisement Is?
 Advertisement is a mass communicating of information intended to
persuade buyers to buy products with a view to maximizing a
company’s profits.
 The elements of advertising are:
 It is a mass communication reaching a large group of consumers.
 It makes mass production possible.
 It is non-personal communication, for it is not delivered by an
actual person, nor is it addressed to a specific person.
 It is a commercial communication because it is used to help assure
the advertiser of a long business life with profitable sales.
 Advertising can be economical, for it reaches large groups of
people. This keeps the cost per message low.
 The communication is speedy, permitting an advertiser to speak to
millions of buyers in a matter of a few hours.
Advertising includes the following forms of
messages: The messages carried in-
Newspapers and magazines;
On radio and television broadcasts;
Circular of all kinds, (whether distributed by mail, by
person, through tradesmen, or by inserts in packages);
Dealer help materials,
Window display and counter – display materials and
efforts;
Store signs, motion pictures used for advertising,
Novelties bearing advertising messages and Signature of
the advertiser and Label stags
 IMPACT OF ADVERTISEMENT
Advertising has an important effect on a country’s
economy, society, culture, and political system.

 Economic Impact
Social Impact
Cultural Impact
Political Impact
 ECONOMIC IMPACT
Most economists believe that advertising has a positive
impact on the economy because it stimulates demand
for products and services, strengthening the economy
by promoting the sale of goods and services.
Manufacturers know that advertising can help sell a
new product quickly, enabling them to recoup the costs
of developing new products. By stimulating the
development of new products, advertising helps
increase competition. Many economists believe that
increased competition leads to lower prices, thereby
benefiting consumers and the economy as a whole.
SOCIAL IMPACT
Advertising can have wide-ranging repercussions on a
society. Some critics suggest that advertising promotes
a materialistic way of life by leading people to believe
that happiness is achieved by purchasing products.
They argue that advertising creates a consumer culture
in which buying exciting new products becomes the
foundation of the society's values, pleasures, and
goals.
POLITICAL IMPACT
Advertising is now a major component of political
campaigns and therefore has a big influence on the
democratic process itself. In 1998 more than $467
million was spent on election campaigns in the United
States. That amount of spending placed political
advertising in the ranks of the country’s 30 leading
advertisers that year.
CULTURAL IMPACT
Advertising can affect cultural values. Some
advertising messages, for example, encourage
aggressive individualism, which may clash with the
traditional cultural values of a country where the
collective or group is emphasized over the individual
or humility or modesty is preferred to aggressiveness.
With the globalization of the world economy,
multinational corporations often use the same
advertising to sell to consumers around the world.
 RESEARCH OBJECTIVES
To study types of advertisements.
To study effectiveness of advertisements i.e. on sales,
profitability.
To study the perception of consumers towards the
product due to advertisement.
To find the ways to make it more effective.
 INSTRUMENTATION DEVELOPMENT AND
SCALING
Questionnaire
1. From where do you get information about the new product?
a. Television [ ]
b. Newspapers [ ]
c. Magazines [ ]
d. Internet [ ]
e. Peers (friends/family) [ ]

2. Which form of advertisement do you like more?

a. Still image (Magazines / Newspapers) [ ]
b. Moving image (Television / Internet) [ ]
3. For you advertisement is a source of
a. Information [ ]
b. Entertainment [ ]

4. Does an entertaining advertisement influences your

opinion about the product?
a. Yes [ ]
b. No [ ]

5. Does information provided in advertisement affects

your opinion about the product?
a. Yes [ ]
b. No [ ]
6. Does language used in advertisement affects your opinion about the
product?
a. Yes [ ]
b. No [ ]

7. Does presence of any celebrity in the advertisement affects your

opinion about the product?
a. Yes [ ]
b. No [ ]

8. Does intensity of the advertisement affects your opinion about the

product?
a. Yes [ ]
b. No [ ]
9. Does presence of social issues in the advertisement affects your opinion
about the product?
a. Yes [ ]
b. No [ ]

10. Do you think advertisement helps in increasing sales of any product?

a. Yes [ ]
b. No [ ]

11.Which type of advertisement influences you more?

a. National advertisement [ ]
b. Local advertisement [ ]
 Plan of action
A) DATA COLLECTION
B) SAMPLING
C) PLAN OF ANALYSIS
 DATA COLLECTION
 SOURCES OF DATA COLLECTION 
 Primary Data
 Secondary Data

PRIMARY DATA COLLECTION

The primary data was collected through questionnaires and was
collected personally.

SECONDARY DATA COLLECTION

The secondary data was collected through books, magazines,
company website and other websites.
 SAMPLING UNIT

Sampling Unit is the total number of samples differed in different

locality.
We have considered 100 as sample size.
 PLAN OF ANALYSIS

The data collected is tabulated according to the

respondents using percentages,aggregates which are
essential for the study which help in proper analysis of
data.
 Analysis of data is a link between data collection and
data interpretation.
 It helps us to draw inference which makes response
more meaningful.
 1. From where do you get information about the new product?

Interpretation:
A large size of population is influenced by Television and Newspapers.
2. Which form of advertisement do you like more?

Interpretation:
People are more affected by advertisement with moving image.
3. For you advertisement is a source of :

Interpretation:
More number of people consider advertisement as a source of information rather
than a source of entertainment.
 4. Does entertaining advertisement affect your opinion about
the product?

Interpretation:
Entertaining advertisement does not affect the opinion of customer about the product
5. Does information provided in advertisement affects your
opinion about the product?

Interpretation:
Information provided in the advertisement affect very much on the opinion of
consumers about the product.
 6. Does language used in advertisement affects your opinion
about the product?

Interpretation:
Language used in the advertisement affects a lot on the opinion of consumers about
the product
7. Does presence of any celebrity in the advertisement affects
your opinion about the product?

Interpretation:
Presence of any celebrity affects on the opinion of consumers about the product.
8. Does intensity of the advertisement affects your opinion
about the product?

Interpretation:
The effect of intensity is very powerful on the opinion of consumers about the
product.
9. Does presence of social issues in the advertisement affects
your opinion about the product?

Interpretation:
Presence of social issues in advertisements affects very much on the opinion of
consumers about the product.
10.Do you think advertisement helps in increasing sales of any
product?

Interpretation:
Advertisement helps very much in increasing the sales of any product.
11.Which type of advertisement influences you more?

Interpretation:
National advertisements affect people’s opinion more than the local advertisements.
 Limitations
Sample size restricted to 100 only which was very less
according to total population.
The responses given by respondents were not always
accurate because the respondents gave the response
according to their understanding.
Survey is a time consuming process but the time to
collect the data for research was very less.
Sometimes the respondents are not willing to fill the
questionnaire and hence the resultant may not be
correct.
 CONCLUSION
In order to measure the effectiveness of advertising, which
approach (communication effectiveness or sales
effectiveness), is more suitable? Two factors are to be
considered in deciding the approach. They are

1. Relevance of advertising objectives on the overall

performance objectives:
Generally advertising managers would like to know the
role of advertisements on the overall performance of the
business firm i.e., return on investment and on
profitability. A sale is a determining factor of company
performance.
 2. Difficulty and cost of obtaining data needed to
evaluate effectiveness:
Generally communication measures are easy to follow than
sales effectiveness measures.
If the measures of advertising are more relevant they will be
difficult and costly. If it is less difficult and cheap the
measures will not be more relevant. Therefore, the
advertising manager has to make a balance between these
two approaches.
 SUGGESTIONS
Advertisement should be made with keeping the
determinants of effectiveness in mind.
Advertisement should be according to the product and its
suitability with different age groups.
To make advertisement more effective all the determinants
of effectiveness should be taken care of.
Investment in advertisement should be made with great care
of media of advertisement and type of advertisement.
 Advertisers should develop new and more effective ways of
advertisement.
THANK YOU