A RESEARCH PROJECT REPORT On

ADVERTISING EFFECTIVENESS AND ITS IMPACT ON CONSUMER BUYING BEHAVIOUR w.e.f.to COLD-DRINKS

SUBMITTED FOR THE PARTIAL FULLFILLMENT OF THE REQUIREMENT DEGREE OF MASTERS OF BUSINESS ADMINISTRATION (MBA) (SESSION 20012-2014)

SUBMITTED TO KURUKSHETRA UNIVERSITY KURUKSHETRA

SUBMITTED BY SHALINI TANWAR MBA ROLL NO 2012031

DECLARATION
I Shalini Tanwar declare that the research project on ADVERTISING EFFECTIVENESS AND ITS IMPACT ON CONSUMER BUYING BEHAVIOUR OF COLD-DRINKS assigned to me for the partial fulfillment of Master of Business Administration Degree fron Kurukshetra University, Kurukshetra . It is the Original work done by me & the information provided in the study is authenticated to the best of my knowledge.

This Project Report has not been submitted to any other institution or university for the award of any other degree.

SHALINI TANWAR

ACKNOWLEDGEMENT
With immense pleasure I acknowledgement my gratitude to all persons whose support and guidance have helped me in carrying out this project work. I take this opportunity to express my profound sense of sincere and deep gratitude to MS Anuja (HOD) his constant supervision and above all extraordinary encouragement during the entire course of the project. It is my proud privilege to express my profound gratitude to the head of department MR.VIKAS MISHRA and the entire faculty of department of management, Seth jai parkash mukand lal institute of management and technology and teachers of the department for providing me with the opportunity to avail the excellent facilities and infrastructure. The knowledge and values inculcated have proved to be of immense help at the very start of my career.

I would like to express my gratitude to all my friends for their invaluable support and cooperation during the course of the project.

Last but not the least I would express my gratitude to all the members of JMIT from whom I got all the necessary help whenever required.

SHALINI TANWAR

PREFACE
Advertising is a subset of marketing, a form of communication intended to persuade people to purchase or take any action with respect to the products or the services. In today's world, firms don't hold back in spending millions of dollars on advertising and marketing. The obvious reason being that the competition is very high and every firm wants to sell its product and make it a brand. Effective advertising techniques used in advertisements make a world of difference in sales prospects of a product. Advertising effectiveness is measured by the role the advertisement has played in making the product a real success and how well it has connected with the customers. For print media it is very important to see how well it is doing in communicating itself to the customers. Ad effectiveness helps the advertiser to understand it gives way to make appropriate steps thereby enhancing the effectiveness of the print media. The research paper deals with the study of effectiveness of print media ads .This has been evaluated on the basis of a few brands of a consumer durable. The study is significant to advertisement. The analysis shows significant difference between the various brands of a specific consumer durable with respect to personal variables .The finding suggests that there occurs significant difference at a given level of significance. Advertising can be utilized for creating awareness and promoting one of the services or for services of all the departments. A thorough analysis is required to decide about the objectives of a particular advertising campaign. Television is the major medium of advertisements. When a firm wants to throw its point or product to the public, this is the most effective means of doing it. Secondly press ads seem to be effective among people who look for certified ads. The newspapers provide certified ads and it depends on the presentation of the ads i.e. its captions and color effects should impress the customers. Radio ads must be clear and audible. These are all means for motivating factors for influencing customer buying behavior. Know your customers and give them what they want is the fundamental principle of marketing. Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behavior. Initially the consumer tries to find what commodities they would like to consume, then they select only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which they can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities they should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. In this attempt has been made to learn customers preferences among the various modes of advertisements and to study ADVERTISING EFFECTIVENESS AND ITS IMPACT ON CONSUMER BUYING BEHAVIOUR OF COLD-DRINKS. Both primary data and secondary data have been collected for the study.

Introduction
Almost every one grows up in the world which is flooded with the mass media e.g. television, advertising, films, videos, billboards, magazines, movies, music, newspapers, and internet (Latif & Abideen, 2011). Of all marketing weapons, advertising is renowned for its long lasting impact on viewers mind, as its exposure is much broader (Katke, 2007). Advertising is a subset of promotion mix which is one of the 4Ps in the marketing mix i.e. product, price, place and promotion. As a promotional strategy, advertising serve as a major tool increasing product awareness in the mind of a potential consumer to take eventual purchase decision. Advertising, sales promotion and public relations are mass communication tools available to marketers. Advertising through all mediums influence audiences, but television is one of the strongest medium of advertising and due to its mass reach; it can influence not only the individuals attitude, behavior, life style, exposure and in the long run, even the culture of the country. The evolution of advertisement dates back into the ancient times. Societies used symbols, and pictorial signs to attract their product users. Over centuries, these elements were used for promotion of products. In the early ages, these were handmade and were produced at limited scale for promotions. Later on this phenomenon used and gained strength more intensively for promotional purposes. Todays modern environment, advertisements have become one of the major sources of communication tool between the manufacturer and the user of the product. A company cannot make dream to be a well known brand until they invests in their promotional activities, for which consumer market have been dominating through advertisements(Husain et al.,2008).As the primary mission of advertiser is to reach prospective customers and influence their awareness, attitudes and buying behavior. They spend a lot of money to keep individuals interest in their products. They need to understand what makes potential customers behave the way they would like It also appears that advertising may have the potential to contribute to brand choice among consumers (Latif et al.,2011). The major aim of advertising is to impact on buying behavior; however ,this impact about brand is changed or strengthened frequently in peoples memories. Memories about the brand consist of those associations that are related to brand name in consumer mind. These brand cognition influence consideration, evaluation, and finally purchases (Romaniuk and Sharp, 2003)The principal aim of consumer behavior analysis is to explain why consumers act in particular ways under certain circumstances. It tries to determine the factors that influence consumer behavior, especially the economic, social and psychological aspects (Ayanwale et al.2005). When young people choose advertising information and characters as their role models, they may not only identify with them but also intend to copy them in terms of how they dress and what they are going to buy Latif et al., 2011)Traditional hierarchy of effects models of advertising state that advertising exposure leads to cognitions, such as memory about the advertisement the brand; which in turn leads to attitudes, Product liking and attitude toward purchase; which in the end leads to behaviors, like buying the advertised product (Mendelson and Bolls, 2002).As the market is surplus with several products or services so many companies make similar functional claim; so, it has become extremely difficult for companies to differentiate their products or services based on functional attributes alone Differentiations based

on functional attributes, which are shown in advertisement, are never long lasting as the competitors could copy the same (Hussainy et al.2008). Therefore, the marketers give the concept of brand image. Like by creating the character of the caring mother, the marketer injects emotion into the consumers learning and process of advertisements (Jalees, 2006). Doing so advertiser creates those types of advertisements, which carry emotional bond with consumer. Therefore, that consumer is more likely to associate with advertisements of those brands, which have emotional values and messages. Because, positive emotional appeals also provide a strong brand cue and stimulate category-based processing (Abideen and Latif, 2011). If the categorization process is successful, then the affect and beliefs associated with this category in memory are transferred to the object itself. Consumers are not only at first confused and disordered in mind, but they also try to categorize the brand association with their existing memory, when thousands of products are faced by them, and they might reposition memories to outline a brand image and perception / concept toward new products. They can categorize latest information into particular brand or product group label and store them accordingly. This procedure is not only associated to consumers familiarity and information, but also attachment and preference of brand. It is also suggested that consumer can disregard or prevail over the dissonance from brand extension (Abideen and Latif, 2011).In todays dynamic world, it is almost impossible for advertisers to deliver advertising message and information to buyers without use of advertising. Certainly, this may be because of the globalization and accessibility of hundreds of channels for the viewers of this modern era. Now a day, due to globalized economy, which made available a bulk of marketing stimuli to the modern consumers. More often consumerism describes the way of equating personal happiness, with purchasing material possessions and consumption in excess of ones need .

Advertising and consumer behavior

Advertisers primary objective is to reach Prospective customers and influence their awareness, attitudes and buying behavior. They spends lot of money to keep individuals (markets)Interested in their products. To succeed, they need to understand what makes potential customers behave the way they do. The advertisers Goals is to get enough relevant market data to Develop accurate profiles of buyers to find the common group (and symbols) for communications This involves the study of consumers behavior: The mental and emotional processes and the Physical activities of people who purchase and Use goods and services to satisfy particular needs And wants (arens, 1996).Proctor et al. (1982) noted that the principal aim of consumer behavior analysis is to explain why consumers act in particular ways under certain circumstances. It tries to determine the factors that influence consumer behavior ,especially the economic, social and psychological aspects that can indicate the most favored marketing mix that management should select. Consumer behavior analysis helps to determine the direction that consumer behavior is likely to make and to give preferred trends in product development and attributes of alternatives communication method etc. Consumer behaviors analysis views the consumer as another variable in the marketing sequence, a variable that cannot be-controlled and that will interpret the product or service not only in terms of the physical characteristics, but in the context of this image according to the social and psychological makeup of that individual consumer (or group of Consumers).Economic theory has sought to establish relationships between selling prices, sales achieved and consumer come similarly advertising expenditure is frequently compared with sales. On other occasions financial accounting principles maybe applied to analyze profit and loss. Management ratios, net profit before tax, liquidity and solvency ratios can all be investigated. Under the situations the importance of the consumers motivations, perceptions, attitudes and beliefs are largely ignored. The consumer is assumed to be rational that is, to react in the direction that would be suggested by economic theory and financial principles. However, it is often apparent that consumer behaviors do not fall neatly into these expected patterns. It is for these reason that consumer behavior analysis is conducted as yet another tool to assess the complexities of marketing operations(Adeolu et al., 2005)

LiteratureReview
Advertising, sales promotion and public relations are mass-communication tools available to marketers. As its name suggests, mass communication uses the same message for everyone in an audience. Today, definitions of advertising abound. (Arens, 1996) -define it as communication process, a marketing process, an economic and social process, a public relations process or information and persuasion process. (Dunn et al. 1978)- viewed advertising from its functional perspectives, hence they define it as a paid, non-personal communication through various media by business firms, non -profit organization, and individuals who are in some way identified in the advertising message and who hope to inform or persuade members of particular audience. Morden (1991) -is of the opinion that advertising is used to establish a basic awareness of the product or service in the mind of the potential customer and to build up knowledge about it. (Newell & Merier, 2007; Kondo& Nakahara, 2007)- Technology advancement had not given us new products and services, but they had changed the meaning of many words. With increase in mass media, advertising effectiveness, as more traditional mass media, had reduced. Now advertiser is looking for new and presumably less cluttered media. The current age of digital media had given consumer choices to opt in and opt out of marketing messages and advertising. Consumers are getting more control of what they want and when they want. All these things are moving toward the interactive marketing. (Ayanwale et al2005and Adelaar et al.2003)-As a promotional strategy, advertising provides a major tool in creating product awareness and condition the mind of a potential consumer to take final purchase decision. As advertisers primary mission is to reach potential customers and influence their awareness, attitudes and buying behavior Ayanwale et al (2005) -conducted research on advertisement of Bourn vita, he found as advertising has a major influence on consumers likeness for Bourn vita food drink. Similar researches have already been conducted for the quality of Bourn vita. Adelaar et al. (2003)- conducted study on online compact discs (CDs)shopping behavior of consumer through emotional advertising. Advertising is a non-personal and paid form where ideas, concept products or services and information, are promotedthrough media(visual, verbal, and text)by an identified sponsor to persuade or influence behavior . (Ayanwale et al.2005andBovee et el. 1995)-Television advertising is a form of advertising in which goods, services, organizations, ideas, etc., are promoted via the medium of television. Through television, advertisers can reach a wide variety of consumers

(Abideen et al., 2011)-Over a number of years in the past, many models and constructs have been discussed in the marketing and advertising literature, each having the objective of trying t o understand the processes used by consumers to make brand or product evaluations when they are exposed to advertisements. (Muehling et al., 1993)-These works have investigated relationships among cognitive responses directed towards the brand, advertisement, brand attitudes, and finally, purchase intentions and behavior. A review of the literature states that, involving attitude towards advertisement influence brand attitudes and supports the advertisement brand attitude relationship across different media and product types. (Muehling et al., 1988)-Mass media and advertising also make available information about consumption and the value of material goods (Abideen et al., 2011).OGuinn and Faber (1989) -explained that once buying behavior is developed, the individual face great difficulty in controlling buying even after its detrimental effects are recognized.

INTRODUCTION- AN ADVERTISING

Consumers are exposed to hundreds of marketing stimuli each day, everywhere and anywhere they go. This large number of marketing stimuli makes it difficult to compete with other marketing stimuli and stand out. Thus, it is important for marketers to know how to construct effective advertisements that will attract the consumers attention and make the consumer want to purchase the product or service being promoted. The objectives of all business are to makes profits and a merchandising concern can do that by increasing its sales at remunerative prices. This is possible, if the product is widely polished to be audience the final consumers, channel members and industrial users and through convincing arguments it is persuaded to buy it. Publicity makes a thing or an idea known to people. It is a general term indicating efforts at mass appeal. As personal stimulation of demand for a product service or business unit by planting commercially significant news about it in a published medium or obtaining favorable presentation of it upon video television or stage that is not paid for by the sponsor. On the other hand, advertising denotes a specific attempt to popularize a specific product or service at a certain cost. It is a method of publicity. It always intentional openly sponsored by the sponsor and involves certain cost and hence is paid for. It is a common form of non- personal communication about an organization and or its products idea service etc. that is transmitted to a target audiences through a mass medium. In common parlance the term publicity and advertising are used synonymously.

What is Advertising

The word advertising is derived from the Latin word viz, "advertero" "ad" meaning towards and "verto" meeting towards and "verto" meaning. "I turn" literally specific thing". Simply stated advertising is the art "says green." Advertising is a general term for and all forms of publicity, from the cry of the street boy selling newspapers to the most celebrate attention attracts device. The object always is to bring to public notice some articles or service, to create a demand to stimulate buying and in general to bring together the man with something to sell and the man who has means or desires to buy".

Advertising has been defined by different experts. Some of the quoted definition are : American marketing association has defined advertising as "any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. The medium used are print broad cast and direct. Stanton deserves that "Advertising consists of all the activities involved in presenting to a group a non- personal, oral or visual openly, sponsored message regarding a product, service, or idea. This message called an advertisement is disseminated through one or more media and is paid for by the identified sponsor. Advertising is any paid form of non personal paid of presentation of ideas goods or services by an identified sponsor. Advertising is a "non- personal paid message of commercial significance about a product, service or company made to a market by an identified sponsor. In developing an advertising programmed, one must always start by identifying the market needs and buyer motives and must make five major decisions commonly referred as 5M (mission, money message, media and measurement) of advertising.

Basic Features of Advertising

On the basis of various definitions it has certain basic features such as : 1. It is a mass non-personal communication. 2. It is a matter of record. 3. It persuades buyers to purchase the goods advertised. 4. It is a mass paid communication. 5. The communication media is diverse such as print (newspapers and magazines) 6. It is also called printed salesmanship because information is spread by means of the written and printed work and pictures so that people may be induced to act upon it.

Functions of Advertising
For many firms advertising is the dominant element of the promotional mix particulars for those manufacturers who produce convenience goods such as detergent, non prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by maters of automobiles, home appliances, etc, to introduce new product and new product features its uses its attributes, pt availability etc. Advertising can also help to convince potential buyers that a firms product or service is superior to competitors product in make in quality, in price etc. it can create brand image and reduce the likelihood of brand switching even when competitors lower their prices or offer some attractive incentives.

Advertising is particularly effective in certain other spheres too such as : i) When consumer awareness of products or service is at a minimum. ii) When sales are increasing for all terms in an industry. iii) When a product is new and incorporates technological advance not strong and. iv) When primary buying motive exists.

It performance the following functions : i) Promotion of sales ii) Introduction of new product awareness. iii) Mass production facilitation iv) Carry out research v) Education of people.

IMPORTANCE OF ADVERTISING
Generally, advertising is a relatively low cost method of conveying selling messages to numerous prospective customers. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. It can force middlemen to stock the product by building consumer interest. It can help train dealers salesmen in product uses and applications. It can build dealer and consumer confidence in the company and its products by building familiarity. Advertising is to stimulate market demand. While sometimes advertising alone may succeed in achieving buyer acceptance, preference, or even demand for the product, it is seldom solely relied upon. Advertising is efficiently used with at least one other sales method, such as personal selling or point of purchase display, to directly move customers to buying action. Advertising has become increasingly important to business enterprises both large and small. Outlay on advertising certainly is the voucher. Non business enterprises have also recognized the importance of advertising. The attempt by army recruitment is bases on a substantial advertising campaign, stressing the advantages of a military career. The health department popularizes family planning through advertising Labor organizations have also used advertising to make their viewpoints known to the public at large. Advertising assumes real economic importance too. Advertising strategies that increase the number of units sold stimulate economies in the production process. The production cost per unit of output is lowered. It in turn leads to lower prices. Lower consumer prices then allow these products to become available to more people .Similarly, the price of newspapers, professional sports, radio and TV programmed, and the like might be prohibitive without advertising. In short, advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life. Advertising has become an important factor in the campaigns to achieve such societal oriented objectives such as the discontinuance of smoking, family planning, physical fitness, and the elimination of drug abuse. Though in India, advertising was accepted as a potent and recognized means of promotion only 25 years ago, its growing productive capacity and output necessitates the finding of consumers and advertising plays an important role in this process. Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection. In India, advertising as a profession is in its infancy. Because of this fact, there is a tremendous scope for development so that it may be productively used for the benefit of producers, traders, consumers, and the countrys economy. Everyday consumers are exposed to thousands of voices and images in magazines, newspapers, and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction of a persons time to inform him or her of the amazing and different attributes of the product at hand. The challenge of the marketer is to find a hook that will hold the subjects attention. In helping to achieve this, use of celebrity endorsers is a widely used marketing strategy.

TYPES OF ADVERTISING
Broadly speaking, advertising may be classified into two categories viz., product and institutional advertising. a)Product Advertising -The main purpose of such advertising is to inform and stimulate the market about the advertisers products of services and to sell these. Thus type of advertising usually promote specific, trended products in such a manner as to make the brands seam more desirable. It is used by business government organization and private non-business organizations to promote the uses features, images and benefits of their services and products. Product advertising is sub-divided into direct action and indirect action advertising, Direct action product advertising wages the buyer to take action at once, ice he seeks a quick response to the advertisement which may be to order the product by mail, or mailing a coupon, or he may promptly purchase in a retail store in response to prince reduction during clearance sale. Product advertising is sub-divided into direct & indirect action advertising & product advertising aims at informing persons about what a products is what it does, how it is used and where it can be purchased. On the other hand selective advertising is made to meet the selective demand for a particular brand or type is product. b)Institutional Advertising :-It is designed to create a proper attitude towards the sellers to build company image or goodwill rather than to sell specific product or service. Its purpose is to create a frame of mind and to implant feeling favorable to the advertisers company. Its assignment is to make friends for the institution or organization. It is sub-divided into three categories : patronage, public, relations and public service institutional advertising. i) In patronage institutional advertising the manufacturer tells his prospects and customer about himself his policies and lives personnel. The appeals to the patronage motivation of buyers. If successful, he convince buyers that his operation entitles him to the money spent by them. ii) Public relations institutional advertising is used to create a favorable image of the firm among employees, stock-holders or the general public. iii) Public service institutional advertising wages public support. c)Other Types : The other types are as follows : i) Consumer advertising ii) Comparative advertising iii) Reminder advertising iv) Reinforcement advertising

ADVERTISING OBJECTIVES
The long term objectives of advertising are broad and general, and concern the contribution advertising should make to the achievement of overall company objectives. Most companies regard advertising main objective as hat of proving support to personal selling and other forms of promotion. But advertising is a highly versatile communications tools and may therefore by used for achieving various short and long term objectives. Among these objectives are the following :

1. To do the entire selling job (as in mail order marketing). 2. To introduce a new product (by building brand awareness among potential buyers). 3. To force middlemen to handle the product (pull strategy). 4. To build brand preference by making it more difficult for middleman to sell substitutes). 5. To remind users to buy the product (retentive strategy). 6. To publicize some change in marketing strategy (e.g., a price change, a new model or an improvement in the product). 7. To provide rationalization (i.e. Socially acceptable excuses). 8. To combat or neutralize competitors advertising. 9. To improve the moral of dealers and/or sales people (by showing that the company is doing its share of promotion). 10. To acquaint buyers and prospects with the new uses of the product (to extend the PLC).

BENEFITS The functions of advertisement, and that purpose its ethics, may be discussion below : 1.It leads to cheaper prices. "No advertiser could live in the highly competitive arena of modern business if his methods of selling were more costly than those of his rivals." 2. It acquaints the public with the features of the goods and advantages which buyers will enjoy. 3. It increases demand for commodities and this results in increased production. Advertising : a) Creates and stimulates demand opens and expands the markets; b) Creates goodwill which loads to an increase in sales volume; c) Reduces marketing costs, particularly product selling costs. d) Satisfied consumer demands by placing in the market what he needs. 4. It reduces distribution expenses in as much as it plays the part of thousands of salesman at a home. Information on a mass scale relieves the necessity of expenditure on sales promotion staff, and quicker and wider distribution leads to diminishing of the distribution costs. 5. It ensures the consumers better quality of goods. A good name is the breath of the life to an advertiser. 6. By paying the way for large scale production and increased industrialization, advertising contributes its quota to the profit of the companies the prosperity of the shareholder the uplifts of the wage earners and the solution of he unemployment problem. 7.It raises the standard of living of the general public by impelling it to use to articles of modern types which may add to his material well being. "Modern advertising has made the luxuries of yesterday the necessities of today It is a positive creative force in business. It makes two blades of grass grow in the business world where one grew before. 8 It establishes the goodwill of the concern for the test articles produced by it and in course of time they sell like not cakes consumer search for satisfaction of their needs when they purchase goods what they want from its beauty, superiority, economy, comfort, approval, popularity, power, safety, convenience, sexual gratification and so on. The manufactures therefore tries to improve this goodwill and reputation by knowing the buyer behavior. To sum up it may be said that advertising aims at committing the producers, educating the consumer, supplementing the salesman converting the producer and the dealer to eliminate the competitor, but above all it is a link between the produce and the consumer.

WHY ADVERTISE ?
A man wakes up in the morning after sleeping on an advertised bed, in advertised pajamas. He will bathe in an advertised tub, wash with advertised soap, shave with advertised shaving cream, eat a breakfast of advertised juice, cereal, and toast that was toasted in an advertised toaster. He will put on advertised clothes, glance at his advertised wrist-watch, and then ride to his office in his advertised car. At the office he will sit at his advertised desk, in his advertised chair, and write with his advertised pen. Yet this man hesitates to advertise, saying that advertising doesnt pay. Finally when his business fails, he will advertise it for sale.

WHY & WHEN TO ADVERTISE

Advertising as a tool to marketing not only reaches those who buy , but also those whose opinions or authority is counted for example a manufacturer of marble tiles and building boards advertises not only to people who intend to build houses but also to architect and engineers. While the manufacturers of pharmaceuticals products advertise to doctors as well as to the general public. At time it is necessary for a manufacturer or a concern to advertise things which it does not sell but which when sold stimulates the sales of its own product. There are concerns like electric heaters, iron etc. because the use of these increases the demand for their products. Advertising should be used only when it promises to bring good result more economically and efficiently as compared to other means of selling. There are goods for which much time and efforts are required in creating a demand by sending salesman to prospective buyers than by simply advertising them. In the early days of the cash register in America it was sold by specially trained salesman who called on the prospective users and had the difficult task of convincing them that they could no longer carry on with the old methods, and that they urgently needed a cash register. In our country certain publishers have found it less costly to sell their books by sending salesman from house to house among prospective buyers than to advertise them. In these two examples the cost of creating demand would be too high if attempted by advertising alone under such circumstances advertising is used to make the salesman acceptable to the people they call upon to increase the confidence of the public in the house. Naturals when there are good profits competitors will be attracted and they should be kicked out as and when sufficient capital is available by advertising on a large scale. Immediate result may not justify the increased expenditure but it will no doubt secure future sales.

REASON TO ADVERTISE
Produce leads Educate prospects about the benefits you offer Expand into new markets Influence the people who influence others (the trendsetters) Make your name known to people who have never heard of you Pre-sell your offering (prior to the sales persons call) Expand upon a public relations story Tell the story of your company Add authority to your message (by putting it into print, people equate advertising with success) Build your corporate identity Build confidence in your product/services Dispel an ugly rumor Keep your name in the forefront of your customers minds Head off competitors Go after competitors business Prove your quality with success stories Make your stockholders happy Assert your leadership Maintain a constant public presence Help your direct mail pay off Announce the existence of your product Gain credibility Become a brand name Establish a niche Highlight testimonials from satisfied customers Test something Create a desire to buy Make sales Obtain names for your prospect or customer mailing list Inform many people at the same time Motivate people to call or e-mail or send coupon Engage in research by studying the profiles of respondents Prove your superiority to earn a profit

PROS AND CONS OF ADVERTISNMENTS

Advertising - Good or Bad?"Advertising - Good or Bad" In today s society, one must consider Is there any advantage of advertising? In many cases it is only disadvantage An annoying hindrance in our daily lives. It gets on our nerves, distorts the truth, and adds to the cost of the product. Advertising is designed for one purpose - to sell. To achieve this goal, advertises are willing to stretch and distort the truth, just to convincing people to buy their product. For example, an advertiser may convince buyers to purchase their product by stating that has been tested and found superior. In reality, the product is not likely to be better than any other - the tests themselves doubtlessly conducted by the promoting company - conducted to ensure at least something is superior about the product, even if it is only the color. These advertisements are worded carefully so that they are telling the "literal truth"- the truth is exactly what the words say, although people misinterprets the message by using conversational logic as something different some thing better. By using ingenious tactics like these, the populace is deceived into buying a product that may not do what is required, or a product which a buyer may have never really needed. This is why advertising is a bad thing, for our society. ADVANTAGES Attracts a large audience Gain pass along readership Low cost per contact Many alternatives available Control over message content Standardized message Editorial content Self service operations DIS-ADVANTAGES Lack of flexibility Large investments Limited geographic flexibility Long lead time High throwaway rate Less detailed information

DESIGNING ADVERTISING CAMPAIGN :

An advertising is an organized series of advertising messages. It has been defined as "a planned, co-ordinate series of promotional efforts built around a central theme and designed to reach a specified goals." In other words, it is an orderly planned effort consisting of related but self contained and independent advertisements. The campaign may appear in one more media . it has single theme or keynote idea and a single objective or goal. Thus, "a unified theme of content provides psychological continuity throughout the campaign while visual and oral similarity provide physical continuity. In short run, all campaign want pre-determined psychological reaction in the long run, practically all campaigns have sales goal. The series of advertisements used in the campaign must be integrated with the sales promotional efforts and with the activities of the sales force. Campaign vary in length some may run only for a few days, other for weeks, yet other for a season or the entire year. Usually a range of 3 to 6 months includes many campaigns. Many factors influences campaign length such as competitors advertising media, policies, seasonal falls curves of the product involved, the size of the advertising funds, campaign objectives and the nature of the advertisers marketing program.

OBJECTIVES OF CAMPAIGN
The advertising campaign, especially those connected with the consumers aims at achieving these objectives : i) To announce a new product or improve product. ii) To hold consumers patronage against intensified campaign use. iii) To inform consumers about a new product use. iv) To teach consumers how to use product. v) To promote a contest or a premium offer. vi) To establish a new trade regional, and vii) To help solve a coca regional problem.

The institutional advertising campaign on the other hand, have these objectives. i) To create a corporate personality or image. ii) To build a company prestige. iii) To keep the company name before the public. iv) To emphasize company services and facilities. v) To enable company salesman to see top executive consistently when making sales calls, and vi) To increase friendliness and goodwill towards the company.

STAGE IN ADVERTISING CAMPAIGN Several steps are required to developed an advertising campaign the number of stages and exact order in which they are carried out may vary according to an organizations resources, the nature of its product and the types of audiences to be reached. The major stages/step are : 1. Identifying and analyzing the advertising. 2. Defining advertising objects. 3. Creating the advertising platform. 4. Determining the advertising appropriation. 5. Selection media plan. 6. Creating the advertising message. 7. Evaluating the effectiveness of advertising. 8. Organizing of advertising campaign.

ADVERTISNMENTS INFLUENCE THE BUYING BEHAVIOUR OF CONSUMERS

According to Warlop and Wedel(2002), advertisement able to influence the consumer behavior because advertisement able to attract attention from the public. While attention increases towards a product, they will have a certain perception and will build belief on their particular product. If the belief and the perception were positive, the consumer will likely get more information and adopt the product. If the perception and belief is negative, the potential customer will declare any information about the product and will not adopt the product. Due to the previous case that based on the consumer behavior, there are there elements that will affect the consumer buying decision when they purchase. And an external influence, internal influences and also the marketing influences is found according to advertising, product promotion and pricing technique. And due to the research, the marketing activity like advertisement which is definitely affects both internal and external behavior of the consumer. Normally, consumers perception will influence by the colorful or exposure things such as looking at an advertisement that is attract them. And this shows that the consumers will recognize the advertisement that attracts them. Awareness will be create if the advertisement involves sense of humor, and what will keeps or stay in the consumers mind is retention (Chen and Lee 2005). Besides that, advertisement will also affect the knowledge through giving information, personality, and attitude, lifestyle of the consumers and also the culture of the

consumer. The concept of the advertising is totally can let the consumers involves, and which also greatly affect the decision of buying of the consumers.

METHODS OF MEASURING ADVERTISING EFFECTIVENESS

There may be two types measures of advertising effectiveness namely;

Direct measures and, Indirect measures.

Direct Measures of Advertising Effectiveness Under direct measures, a relationship between advertising and sales is established. A comparison of sales of two periods or two periods or two markets may be done and the corresponding changes may be noted. The following are some of the methods that are generally used in measuring that advertising effects. i. Historical Sales Method Some insights into the effectiveness of past advertising may be obtained by measuring the relationship between the advertising expenditure and the total sales of the product. A multiple regression analysis of advertising expenditure and sales over several time periods may be calculated. It would show how the changes in advertising expenditure have corresponding changes in sales volume. This technique estimates the contribution that advertising has made to explaining in a co relational manner rather than a casual sales, the variation in sales over the time periods covered in the study ii. Experimental Control The other measure of advertising effectiveness is the method of experimental control where a casual relationship between advertising and sales is established. This method is quite expensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs. Media schedules expenditure levels or some combination of these advertising decision areas. One experimental approach to measuring the sales effectiveness of advertising is test marketing.

Before-after with Control Group Design: This classic design uses several test and control cities in this design two types of cities are selected. Cities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities. First of all, the normal sales level is calculated for both type of cities prior to advertising campaign, and then the advertising campaign is presented to the test cities and not the central cities. The effect of advertising campaign, can then, be measured by subtracting the amount of post campaign figure of sale from the pre campaign sale figures in test cities Multivariable Experimental Designs: While the experimental design discussed above yields a reasonably accurate estimate of the effects of the advertising on sales, it is not successful in explaining the success or failure of the campaign itself. Multivariable designs Produce these explanations and are, therefore used by some very large firm

because of their diagnostic value. The power of this multivariable factorial design is explained by G.H .Brown, former Fords Director of Marketing Research. For any single medium, eight possible geographic areas have been exposed and eight have not been exposed. Thus, in this experimental model it is possible to evaluate how each individual medium behaves alone and in all possible to evaluate how each individual medium behaves alone and in all possible combinations with other media. Indirect Measures of Advertising Effectiveness As it is very difficult to measure the direct effect of advertising on companys profi ts or sales, most firms rely heavily on indirect measures. These measures do not evaluate the effects of advertisements directing on sales or profits but all other factors such as customer awareness or attitude or customer recall of advertising message affect the sales or profits or goals of the business indirectly. Despite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results, there is no other alternative but to use indirect measures. The most commonly used measures are;

Exposure to Advertisement: In order to be effective, the advertisement must gain exposure. The management is concerned about the number of target audiences who see or hear the organization message set in the advertisement. Without exposure, advertisement is bound to failure. Marketers or advertisers may obtain an idea of exposure generated by the medium by examining its circulation or audience data which reveal the number of copies of the magazine, newspaper or journal sold the number of persons passing the billboards or riding in transit facilities, or the number of persons living in the tele viewing or radio listening area, and the number of persons switching on their T.V. and radio sets at various points of time. This number can be estimated by interviewing the numbers of the audience for different media. Attention or Recall of Advertising Message Content: This is one of the widely used measures of advertising results. Under this measure, a recall of the message content among a specified group or groups or prospective customers is measured within 24 hours of the exposure of the advertisement. Attention value is the chief quality of the advertising copy the advertisements cannot be said to be effective unless they attract the attention of the target consumers. There are two methods for evaluating the attention getting value of the advertisements. One is pre-test and the other is post-test. In a pre-test evaluation, the consumers are asked to indicate the extent to which they recognize or recall the advertisement, they have already seen. This test is conducted in the laboratory setting. Here consumers read, hear or listen to the advertisement and then researchers ask question regarding the advertisement just to test the recall and then evaluate it. In posttest method, the consumers are asked questions about the indication of recognition or recall after the advertisement has been run. These measures assume that customers can recall or recognize what they have viewed or listened to. Various mechanical devices are being used in the western countries which provide indices of attention such as eyecamera etc. Brand Awareness: The marketers who rely heavily on advertising often appraise its effectiveness by measuring the customers awareness about the particular product or brand. The assumption of this type of measure is that there is a direct relationship

between the advertisements and the awareness. This type of measure is also subject to the same criticisms as is applicable to direct measures of effectiveness (sales measures because awareness is also not the direct result of the advertisements. It is also affected by many other factors. But, for new products, changes in awareness can often be attributed to the influence of advertising. Comprehension: Consumers generally use advertisements as a means of obtaining information about the product, brand or the manufacturer. They cannot be informed unless they comprehend the message (grasp the message mentally and understand it fully). Various tests for valuating comprehension are available. One is recall tests an indicator of comprehension because it is evident that consumers recall what they comprehend. Another measure of the variable is to ask questions about subjects how much they have comprehended a message they have recently heard or seen. One may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. One may ask typical target consumers from time to time such questions like what did you think of our new commercial? and Did it get the message across? The answers of these questions will provide sufficient insight into advertising decision making. Attitude Change: Since advertising is considered to be one way of influencing the state of the mind of the audience towards a product, service or organization, the results are very often measured in terms of attitudes among groups exposed to advertising communication. Several measures are used ranging from asking the questions about willingness to buy the likelihood of buying to the measurement of the extent to which specific attributes (such as modern or new) are associated with a product. Action: One objective of advertisement may be assumed to be to stimulate action or behavior. The action or intention to take an action may be measured on the intention to buy measuring instrument. Under this type of measure, consumers are asked to respond why they are interested in purchasing the product or brand. One type of action that advertisers attempt to induce is buying behavior. The assumption is that if an increase in sales follows a decrease in advertising expenditure, the change in sales levels are good indicators of the effectiveness of advertising. Logic suggests that measurement of sales is preferable to other measurements

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. When we talk about research methodology we not only talk of the research methods but also consider the logic behind the method we used in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. As far as this dissertation concerns my study was based on descriptive research in order to measure the ADVERTISING EFFECTIVENESS AND ITS IMPACT ON CONSUMER BUYING BEHAVIOUR OF COLD-DRINKS. Hence, for that purpose I have used Questionnaire, Personal Interview and Direct observation techniques for perfect results.

Research is voyage from known to unknown Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique which provide precise tools, specific procedure and technical rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation. Different type of research designs is available depending upon the nature of research project, availability of able manpower and circumstances Methodology. Research Design: The research design is the blueprint for the fulfillment of objectives and answering questions. It is a master plan specifying the method and procedures for collecting and analyzing needed information. o Descriptive Research is used in this study as the main aim is to describe characteristics of the phenomenon or a situation. Data Collection Methods: The source of data includes primary and secondary data sources. Primary Sources: Primary data has been collected directly from sample respondents through questionnaire and with the help of interview. Secondary Sources: Secondary data has been collected from standard textbooks, Newspapers, Magazines & Internet.

Research Instrument: Research instrument used for the primary data collection is Questionnaire. Sample Design: Sample design is definite plan determine before any data is actually obtaining for a sample from a given population. The researcher must decide the way of selecting a sample. Samples can be either probability samples or non-probability samples. Sampling Technique: Convenience Sample Size: 50 Respondents. Area of Study: Ambala.

OBJECTIVE OF THE STUDY

To find out the level of customers satisfaction regarding the cold drinks. To find out the factors that influences the customer buying decision. To know the customer preference regarding different cold brands available in the market. To know the most effective media of advertising To find out the reasons for liking the advertisements

DATA ANALYSIS AND INTERPRETATION

1.Do you take cold-drink ?

a.Yes b.no

RESPONSE YES NO

NO OF RESPONDENT
40

PERCENTAGE 80 20

10

2. How frequently you take cold-drink ? a. Once a day b. Twice a day c. More than twice d. Not regular

CONTENT ONCE A DAY TWICE A DAY MORE THAN TWICE NOT REGULAR

NO OF RESPONDENT 36 00 08 06

PERCENTAGE 72 00 16 12

3. Which cold-drink you like the most ? a. Coco-cola b. Pepsi c. Limca d. Fanta e. marza

RESPONSES COCO-COLA PEPSI LIMCA FANTA MARZA

NO OF RESPONDENT 16 24 10 00 00

PERCENTAGE 32 48 20 00 00

4. Which flavor of cold-drink you like the most ? a. cola b. lemon c. mango d. orange
RESPONSES COLA LEMON MANGO ORANGE NO OF RESPONDENT 12 22 08 08 PERCENTAGE 24 44 16 16

5. Have you seen the advertisement of cold-drink ? a. Yes b. No

RESPONSE YES NO

NO OF RESPONSES 46 04

PERCENTAGE 92 08

6. Through which media you have seen it ? a. Magazines b. T.v c. Newspaper d. Others

RESPONSES MAGAZINES T.V NEWSPAPERS OTHERS

NO OF RESPONDENT 12 22 08 08

PERCENTAGE 24 44 16 16

7. Why do you like the advertisement ? a. Its theme b. Because of good music c. Because of celebrities d. Other reasons
RESPONSES ITS THEME BEC OF GOOD MUSIC BEC OF CELEBRITIES OTHERS REASONS NO OF RESPONDENT 10 10 16 14 PERCENTAGE 20 20 32 28

8. Do you think advertisement has forced you to consume more products ? a. Yes b. No SATISFACTION YES NO NO OF RESPONDENT PERCENTAGE 36 14 72 28

9. Do you think that advertisement is necessary for the sale of product ? a. Yes b. No
RESPONSE YES NO NO OF RESPONSES 46 04 PERCENTAGE 92 08

10.Do you think expenditure incurred on advertisement is such effective that its adds to profit ? a. yes b .no c .cant say
SATISFACTION YES NO CANT SAY NO OF RESPONDENTS 16 22 12 PERCENTAGE 32 44 24

11.Which reason you find for the difference of advertising effectiveness ? a. education b. standard of living c. liking d. level of development

RESPONSES EDUCATION STANDARD OF LIVING LIKING LEVEL DEVELOPMENT LIFE STYLE

NO OF RESPONDENTS 10 18 08 OF 08

PERCENTAGE 20 36 16 16

06

12

12.Is advertising puts an impact on consumer decision making for choosing a product ? a. yes b. no
RESPONSES YES NO NO OF RESPONDENT 30 20 PERCENTAGE 60 40

LIMITATIONS

The project relied mainly on the primary data sources. Consumer gives very un-clear picture. Time constraint is one of the factor. Study is based on limited sample area. Difficulty in gathering proper information. The sample size in relation to total size of population is small. The results are based on data collected in ne city. The study was based entirely on individual study.

FINDINGS AND CONCLUSIONS

1. It has been concluded that advertisement is very effective as far as recall of the advertisement is concern and it is very effective way to create the awareness of the product 2. Advertisement has a good impact on the consumer.

3. Majority of the respondents said that T.V is the most effective media of advertising. 4. Majority of the respondents said that they like the advertisement of cold-drinks because of the celebrities.

5. There is an impact of the Advertisements on the consumers regarding the choice of their brand, i,e there is a significant relationship between advertisements and the choice of the product. 6. Majority of the respondents take the cold-drink once in a day. 7. Pepsi is one of the most demanded brand among other brands available in market. 8. Lemon is the most flavored brand acc to the survey. 9. 92% of the respondents are fond of watching cold-drink advertisements. 10.Advertising puts a positive impact on consumer decision-making.
11. Standard of living is one of the prominent factor influencing advertising

effectiveness.

SUGESSIONS AND RECOMMENDATIONS 1.Companies should aggressively go for Internet marketing as there is a great scope for it because youngsters are in close contact round the clock with Internet

2.Companies should come up with new and affective advertisement companies.

3.Companies should focus on creative advertisements, because people want something different, something new that will attract their attention.

4.Companies should make use different mediums of Advertisements.

5.Advertisements should be made according to the taste of people.

6.Companies should go for Sponsorships of different events.

7.Companies should select the celebrities that has greater credibility and fan following.

8.Companies should promote their product of FM Radio stations and almost every body listen to FM radio Stations on their cell phones so there is a great scope for this.

BIBLIOGRAPHY
Kothari C.R (2003): Research Methodology (II Edition), New Age International Pvt. Ltd. Khan and Martin (2003): Sales and Distribution (I Edition), Anurag Jain publishing company, New Delhi Rajan Saxena (2003): Marketing Management (II Edition), Tata McGraw - Hill publishing company Ltd., New Delhi Aaker David A. etc. advertising Management 4th ed, New Delhi, prentice Hall of India 1985.Journals: Economic Political Weekly Magazines and Newspapers:Projectsformba.blogspot.com 68

Aradhna Krishna, Imran S. Curriuun and Robert W. Shoemaker, Consumer Perceptions of Promotional Activity. Journal of Marketing, Vol.55 (April 1991), Bearden, W.O., and Etzel, M.J. (1982), Reference group influence on product and brand purchase decisions, Journal of Consumer Research, Kotler, P. (1999), Marketing Management: Analysis, Planning, Implementation and Control, 10thed. New Delhi: PrenticeHall

QUESTIONNAIRE
1. Do you take cold-drink ? 10.Yes No 2. How frequently you take cold-drink ? Once a day Twice a day More than twice Not regular 3. Which cold-drink you like the most ? Coco-cola Pepsi Limca Fanta marza

4. Which flavor of cold-drink you like the most ?

cola lemon mango orange

5. Have you seen the advertisement of cold-drink ? Yes No 6. 7. Through which media you have seen it ? T.v Magazine Newspaper Others Why do you like the advertisement ? Because of celebrities Because of good music Its theme Other reasons

8. Do you think advertisement has forced you to consume more products ? Yes No 9. Do you think that advertisement is necessary for the sale of product ? Yes No 10. Do you think expenditure incurred on advertisement is such effective that its adds to profit ? Yes No cant say 11.Which reason you find for the difference of advertising effectiveness ? education Standard of living liking level of development 12. is advertising puts an impact on consumer decision making for choosing a product ?

 yes

No