"MAJOR RESEARCH PROJECT ON“Impact of TV Advertisements on ConsumerBuying Behaviour” PREFACE Advertisements, as part of communication strategies for marketing, are used to drawconsumer?s attention and influence their decision to purchase the advertised products andservices. Television advertisements are the most authoritative, influential and persuasiveadvertising medium as compared with other media such as Radio, Newspapers, Magazinesand Internet. Television advertisements tend to use well-known presenters, persuasivemessages and audio-visual effects in perfect combination for lively display of products andservices. TV ads impact viewers due to various factors which have multiple dimensions. Inthis concept how the relevance factor leads effectiveness of television ads on consumerpurchase decision.iCONTENTS Pg No.1. Introduction 1-72. Reviewof Literature8-113. Rationale of the study124. Objectives of the study 135. Research Methodology 146. Data & Interpretations15-287. Findings29 8. Suggestions30 9. Conclusion 31 10. Limitations 3211. References 33-3412. Appendix35-37ii INTRODUCTIONAdvertising is the non-personal communication of the information usually paid for andpersuasive in nature about products, services or ideas by identified sponsors through thevarious media. The advertiser intends to spread his ideas about the products and offeringsamong the prospects. Popularization of the products is thus, the basic aim of advertising. Themajority of the marketers use mass media for their marketing communications. The choice ofmedia is dependent upon the nature of the message and the intended target audience.Television advertising is the bestselling and economical media ever invented. It has apotential advertising impact unmatched by any other media. The advantage of television overthe other mediums is that it is perceived as a combination of audio and video features; itprovides products with instant validity and prominence and offers the greatest possibility forcreative advertising.Television is considered as a popular and powerful medium of information and entertainmentto reach the audiences. Television advertising has been a popular medium for advertisers eversince the first began to appear in living rooms with the arrival of cable television, productioncosts and the opportunity to reach smaller and more targeted markets, making it a medium forsmall to medium - size business programmes like songs, news, interviews, comedy andinformation attracts the largest audience than any other medium. Due to the technicaldevelopment, opportunities to advertise on TV have increased over the past years. Audiencesare exposed to hundreds and thousands of commercial messages a day. The willingness towatch commercials in TV is decreasing because of various reasons. All the ads are notnoticed by the audiences as well as not all the ads are skipped by them, ads which have someentertainment value are liked, watched and remembered by audience which is a welcomeresponse for the ad makers. The basic idea of advertising is to inform, educate and motivatepotential buyers. In this era, the media of advertisement matters a lot. In the present era, TVseems to be the most popular and potent media as people are greatly influenced by what theysee and see repeatedly. In urban areas especially the TV is the most effective medium ofadvertisement in persuading the viewer that it has become the most reliable channel ofpromoting products, both existing and newly launched ones.Advertising is a marketing concept which aims to influence the buying behavior ofcustomers. Whereas consumer behavior is the process and activity by which people select,purchase, evaluate and consume the product or service to satisfy the need or want. In oldentimes marketers used different signs and symbols to market their products and also to createawareness for the customers. With the advancement and technology development noworganizations focus to use print and electronic media excessively. Use of different marketingpromotional strategies has been identified as an effective tool of creating awareness amongthe consumer population. Among them is popular celebrity attachment with the particularbrand. In developing countries where majority of the population live in remote areas; theeffects of Television (TV) advertisement are very much high. 1 Celebrity attachment is one of the factors that heavily influence the buyer of the product.Advertising plus famous celebrity involvement promotes and raises the awareness of yourproduct in the minds of the potential customers and also definitely influences the purchases ofyour product. No doubt that today most of the organizations spend huge amount of dollars tocreate marketing messages just to place their products and services. Here the question arisesthat which medium should we use to address the market; newspapers, social networkingwebsites, billboards, brochures or television. If we use television as a medium by incurringhigh then it would be worthwhile or not and how people would perceive it? But there is onething that must be remembered that your advertisement must be effective as well. As aneffective advertisement can only meet your objectives and can boost up your sales. And forthis purpose the medium of TV is considered as the most effective as it can reach themaximum audience with efficient cost.MAJOR ADVERTISEMENT MEANS1. PRINTADVERTISING-NEWSPAPERS,MAGAZINES,BROCHURES, FLIERSPrint media has always been a popular advertising option. Advertising products vianewspapers or magazines is a common practice. In addition to this, the print media also offersoptions like promotional brochures and fliers for advertising purposes. Often, newspapers andmagazines sell the advertising space according to the area occupied by the ad, its position inthe publication (front page/middle page, above/below the fold), as well as the readership ofthe publication.For instance, an advertisement in a relatively new and less popular newspaper will cost farless than an advertisement in an established newspaper that has a high readership. The priceof print ads may also depend upon quality of the paper and the supplement in which theyappear. For example, an advertisement in the glossy (and popular) supplement of anewspaper will cost more than one in a supplement which uses mediocre quality paper.2. RADIO ADVERTISINGRadio advertising is one of the oldest forms of advertising. In the early 20th century, as radiobegan to take centre stage in a lot of American homes, businesses realized that they could usethis medium to reach a huge audience for their products, and not merely rely on print mediasuch as newspapers and pamphlets.3. BILLBOARDS, KIOSKS, TRADE-SHOWS AND EVENTSAdvertising makes use of several tools and techniques to attract the customers outdoors. Themost common examples of outdoor advertising are billboards, kiosks, and also events andtrade-shows organized by a company. Billboard advertising is very popular. However, it hasto be really terse and catchy, in order to grab the attention of passers-by. Kiosks not onlyprovide an easy outlet for the company's products, but also make for an effective advertisingtool to promote the company's products.Organizing special events or sponsoring those makes for an excellent advertising opportunityand strategy. A company can organize trade fairs, or even exhibitions for advertising theirproducts. If not this, the company can organize several events that are closely associated withtheir field. For instance, a company that manufactures sports utilities can sponsor sometournament to advertise its products.2 4. TELEVISION ADVERTISINGThe holy grail of advertising for more than 50 years, television advertising remains themost sought-after mode of advertising even in the 21st century. It reaches the maximumnumber of target customers, and has a variety of programming schedules which can beeffectively used for the insertion of ad content.This is an expensive type of advertising, as reflected by the high price for ad spots duringsporting events such as the Super Bowl. There is also a trend of placing banners in thebackground while a program is playing, to increase the visibility of ads. MODERN TYPES OF ADVERTISING? ONLINE ADVERTISINGBroadcast advertising is a very popular advertising medium that constitutes several brancheslike television, radio, or the Internet. Television advertisements have been very popular eversince they were introduced. The cost of television advertising often depends upon theduration of the ad, the time of broadcast (prime time/lull time), sometimes the show on whichit will be broadcast, and of course, the popularity of the television channel itself. The radiomight have lost its charm owing to new-age media; however, it remains the choice of small- scale advertisers. Radio jingles has been very a popular advertising medium, and has a largeimpact on the audience, which is evident in the fact that many people still remember andenjoy old popular radio jingles.? COVERT ADVERTISING - ADVERTISING IN MOVIESCovert advertising is a unique kind of advertising, in which a product or a particular brand isincorporated in some entertainment and media channels like movies, television shows, oreven sports. There is no commercial advertising as such in the entertainment, but the brand orthe product is subtly (or sometimes evidently) showcased in the entertainment show. Some ofthe famous examples for this sort of advertising have to be the appearance of brand Nokiawhich is displayed on Tom Cruise's phone in the movie Minority Report, or the use ofCadillac cars in the movie Matrix Reloaded. Pay attention next time, you're sure to comeacross a lot of such examples.? SURROGATE ADVERTISING - ADVERTISING INDIRECTLYSurrogate advertising is prominently seen in cases where advertising a particular product isbanned by law. Advertisements for products like cigarettes or alcohol, which are injurious tohealth, are prohibited by law in several countries. Hence, these companies come up withseveral other products that have the same brand name, and indirectly remind people of thecigarettes or alcohol of the same brand, by advertising the other products. Common examplesinclude Fosters and Kingfisher beer brands, which are often seen to promote their brand withthe help of surrogate advertising.3 ? PUBLIC SERVICE ADVERTISING - ADVERTISING FORSOCIAL CAUSESPublic service advertising is a technique that makes use of advertising as an effectivecommunication medium, to convey socially relevant messages about important matters andsocial causes like AIDS, energy conservation, political integrity, deforestation, illiteracy,poverty, and so on. David Ogilvy, who is considered to be one of the pioneers of advertisingand marketing concepts, had reportedly encouraged the use of the advertising field for asocial cause. Ogilvy once said, "Advertising justifies its existence when used in the publicinterest - it is much too powerful a tool to use solely for commercial purposes." Today, publicservice advertising has been increasingly used in a non-commercial fashion in severalcountries across the world in order to promote various social causes.? CELEBRITY ADVERTISINGAlthough the audience is getting smarter and smarter, and the modern-day consumer isgetting immune to the exaggerated claims made in a majority of ads, there exists a section ofadvertisers that still bank upon celebrities and their popularity for advertising their products.Using celebrities for advertising involves signing up celebrities for campaigns, which consistof all sorts of advertising including television or even print ads. How effective these ads are,is something that each consumer himself can determine.? IN-STORE ADVERTISINGThis is also a popular advertising method for large malls and departmental stores, popularizedby stores such as Wal-Mart. Also known as 'point of purchase advertising', the products areusually displayed prominently at checkout counters and packaged attractively. They aim toinfluence the customer to make an impulse purchase, rather than actively create a need for theproduct. Other forms of in-store advertising can be placing the product where the customercan easily see them, and banners inside the store announcing price cuts or new launches.? COFFEE CUP ADVERTISINGA relatively new form of mass advertising is the placement of small ads or promotionalmaterial on paper cups for coffees or onto the table tops of the diner or cafe. Its origins can betraced to Australian companies, and is now gaining popularity in Asia and the Americas.? DIGITAL OUT OF HOME ADVERTISINGThis is a new type of advertising, which is gaining in popularity and effectiveness as a quickway to get the customers' attention. Digital out of home advertising can take many forms, butis essentially a systematic arrangement of media at different venues across a geographiclocation, where there is a lot of foot traffic such as cafes, bars, gyms, gas stations, and manyothers. The advent of digital video recorders such as TiVo has enabled viewers to skipthrough ads shown on television causing advertisers and sponsors significant loss in revenue.This is being tackled by using digital broadcast systems in outdoor public places. Kiosksequipped with LCD screens and customized software can be found in public locations likeparks, subways, and gas stations, along with digital televisions. This has also been integratedwith Point of Purchase advertising, with many stores having LCD equipped stand-alonesystems, where the customer can gain product information and even make a purchase usinghis credit card.4 TELEVISION ADVERTISEMENTTelevision advertising is the sending of promotional messages or media content to one ormore potential program viewers. The viewers are influenced by the messages which results inactions that benefit the advertiser. Advertisers desire to provide messages to people who are interested in their products orservices. Advertisers pay media companies (such as broadcasters) to send their promotionalmessages. Advertisers coordinate the selection of broadcasters and transmission of theirpromotional messages using advertising campaigns.Broadcasters operate systems that gather, organize, and provide people with content that theywant to see. The broadcaster may purchase license rights for content they send through theirsystems or create new (original) programming.Viewers select programs they want to view and some of these programs contain promotionalmessages which motivate some of them to take actions that satisfy advertiser?s businessobjectivesWHAT ARE THE ADVANTAGES OF ADVERTISING ON TV?Advertising on TV offers a number of benefits to businesses by incorporating sound, imagesand movement to make the whole package interesting for consumers. Ads that capture theattention of the audience can start consumers talking, effectively reaffirming the advertisingmessage.? REACHOne of the benefits of TV advertising is its ability to communicate with a very largeaudience. Considered a form of mass media, TV ads work well to attract attention, generateawareness and establish preference for products and services, says Lin Grensing-Pophal,author of "Marketing with the End in Mind." Because of the broad audience they target-- particularly through major TV networks--TV ads tend to provide general, rather than veryspecific, messages.? GROWING ABILITY TO DIFFERENTIATEDespite the large audience reach of television, it's important to note that the ability to targetmarket segments has grown significantly over the years, says Grensing-Pophal. Even networkTV offers a wide range of programming options where ads are most likely to be viewed byspecific target audience segments. With cable television advertising, advertisers can narrowlytarget specific market segments not only by placing their ads in specific programs but alsochoose specific zip-code areas for broadcasting the ads.? MULTI-SENSORY APPEALTV has always been able to appeal to multiple senses through its combination of text, images,sound and motion. While the development of effective TV spots require significant planningand the use of experienced and often expensive, production experts, the value can besignificant as well. It is its multi-sensory appeal that allows TV advertising to remain a viableoption for many advertisers.? CREATIVITY AND IMPACTThe greatest advantage of TV is the opportunity it provides for presenting the advertisingmessage. The interaction of sight and sound offers tremendous creative ?exibility and makes5 possible dramatic, life like representations of products and services. TV commercials can beused to convey a mood or image for a brand as well as to develop emotional or entertainingappeals that help make a dull product appear interesting.? SELECTIVITY AND FLEXIBILITYTelevision has often been criticized for being a non selective medium, since it is difficult toreach a precisely de?ned market segment through the use of TV advertising. But someselectivity is possible due to variations in the composition of audiences as a result of programcontent, broadcast time, and geographic coverage. For example, Saturday morning TV catersto children; Saturday and Sunday afternoon programs are geared to the sports-oriented male;and weekday daytime shows appeal heavily to homemakers.DISADVANTAGES OF TV ADVERTISEMENT? COSTSDespite the efficiency of TV in reaching large audiences, it is an expensive medium in whichto advertise. The high cost of TV stems not only from the expense of buying airtime but alsofrom the costs of producing a quality commercial.Some selectivity is available in television through variations in programs and cable TV. Butadvertisers who are seeking a very speci?c, often small, target audience find the coverage ofTV often extends beyond their market, reducing its cost effectiveness.? FLEETING MESSAGETV commercials usually last only 30 seconds or less and leave nothing tangible for theviewer to examine or consider. Commercials have become shorter and shorter as the demandfor a limited amount of broadcast time has intensified and advertisers try to get moreimpressions from their media budgets.? CLUTTERThe problems of fleeting messages and shorter commercials are compounded by the fact thatthe advertiser?s message is only one of many spots and other no programming material seenduring a commercial break, so it may have trouble being noticed. One of advertisers „greatestconcerns with TV advertising are the potential decline in effectiveness because of suchclutter.? LIMITED VIEWER ATTENTIONWhen advertisers buy time on a TV program, they are not purchasing guaranteed exposurebut rather the opportunity to communicate a message to large numbers of consumers. Butthere is increasing evidence that the size of the viewing audience shrinks during a commercialbreak. People leave the room to go to the bathroom or to get something to eat or drink, orthey are distracted in some other way during commercials. The increased presence of VCRsand remote controls has led to the problems of zipping and zapping.6 ? DISTRUST AND NEGATIVE EVALUATIONTo many critics of advertising, TV commercials personify everything that is wrong with theindustry. Critics often single out TV commercials because of their pervasiveness and theintrusive nature of the medium.Relationship between Consumer behavior and advertising Consumer behaviour and advertising are closely related because the main goal of advertisinginvolves using the behaviour of potential buyers. The art of advertising is to use visualimages and convincing copy to give consumers a sense of longing or need for products orservices. This also ties in with the study of marketing, the means by which advertising isdelivered to consumers through networking, advertisements, and other means ofcommunication.Advertising refers to ways in which marketers, retailers, and other professionalscommunicate with potential consumers or prospects. It usually involves the use of paidprinted media communications, television spots, or Internet radio ads. Marketers must have agood grasp of consumer behaviour and advertising of the way the two are connected beforean effective campaign can be implemented. Studies of past consumer behaviour and publicopinion on certain products should be performed well in advance. Advertisers mustunderstand their potential customers in order for their efforts yield a good return.The goal of any ad is to persuade consumers that they need a particular product or service. Todo this, the message of any form of advertising must appeal to the product's keydemographic, an ad must speak directly to the person most likely to need or want the productbeing sold. For instance, advertisers probably wouldn't use slang in an ad directed atinvestment brokers, nor would they use images of scantily clad women to try and sell to newmoms. In this way, advertising is heavily linked to consumer behaviour, since no ad willinfluence a person's behaviour if it seems irrelevant to his or her desires 7 "