PROJECT REPORT ON

IMPACT OF TV COMMERCIAL ON
CONSUMER BEHAVIOUR

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 CHAPTER 1

1.1 ABSTRACT
Advertising is a form of communication used to help sell products and services. Typically
it communicates a message including the name of the product or service and how that
product or service could potentially benefit the consumer. However, Advertising does
typically attempt to persuade potential customers to purchase or to consume more of a
particular brand of product or service. Modern advertising developed with the rise of
mass production in the late 19th and early 20th centuries. The crescendo of celebrities
endorsing brands has been steadily increasing over the past 20 years or so. Marketers
overtly acknowledge the power of celebrity in influencing buyer's purchase decision.
They have firm believe that likeability or a favorable attitude towards a brand is created
by the use of a celebrity. The crore of rupees spent per year on celebrity endorsement
contracts show that celebrities like Amitabh Bachchan, Sharukh khan and Sachin
Tendulkar play an important role for the advertising industry. It is an established fact that
celebrity endorsement can bestow unique features or special attributes upon a product
that it may have lacked otherwise.

My project deals with impact advertisement that creates on a consumer behavior towards
a brand. In other words, how does an television advertisement lure a customer to go and
purchase the product. Does he purchase because of the benefits or because he liked the
advertisement which has created a positive impact on him.

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1.2 SYNOPSIS

The influence of advertising on our lives, for both children and adults, has changed over
the years. In the early days, advertising for toys and other products for children was
primarily targeted toward parents and their message was direct. Today however, things
have changed. Marketing messages are more sophisticated, more pervasive, and are
aimed directly at "hooking" kids at a very early age.

There have always been advertisers who market to all audience. Clearly products such as
toys and sugary cereals have been around since before our grandparents were small. Just
as today, those who made such products developed ad campaigns to promote them to an
interested audience. Many years ago however, it was a bit easier to recognize what was
an advertisement and what wasn't. Advertisements were limited to displays in a store, a
newspaper ad, or a brief spot on TV or radio. The influence of advertising is increasingly
far reaching.

Today, ads are much more pervasive and less recognizable as a sales pitch. For instance,
while eating at a favorite child oriented fast food restaurant, a child may receive a toy.
That toy may also be tied to a movie, a cartoon, a video game, or to a website that offers
additional games, toys, and related products. Books, clothing, accessory items,
backpacks, cell phones, scooters and more are all tied to the same theme. These ads
targeted toward adults, create a need where none existed previously. They also hook
children, and subsequently their parents, into an endless loop of buying more and more
products.

Advertising is no longer limited to store displays, radio and TV commercials, and

newspaper ads. Movies, cartoons, video games and more are also developed for the
purpose of marketing additional products. As we are bombarded with ads from every
direction, even as adults these games, movies, children's meals, websites etc. are seldom

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recognized as the mere marketing methods that they are. With increased prevalence and
subtlety, the influence of advertising has grown enormously.

1.3 ABOUT THE STUDY

1.3.1 Need of the study:
Advertisements in television plays very critical role in promoting any particular brand. It
creates impact on consumer which further triggers consumer behavior. Particularly, good
advertisement creates very strong brand impact and long lasting recall for e.g. recent TV
commercial of Kit kat have created very positive impact. However, the prime important
is that TV commercial should not only create an impact but also triggers change in
consumer behavior. When a commercial can make change in consumer behavior, than
only we can say that a commercial is good and has helped in increasing sales. Only brand
recall would not suffice organization vision and mission. Thus this is where I felt to study
that what kind of impact TV commercials make and try to understand that is there any
change in consumer behaviour

1.3.2 Objective of the study:

• To study basics of consumer behavior and advertising as a concept
• To understand TV commercials, study past records and determine the impact made by
these commercial on buyer behaviour
• To analyze five recent commercials and to study that does this commercials have
made change in consumer behaviour

1.3.3 Scope of the study:

The project encompasses understanding of theory with respect to consumer behavior
and advertising as a concept. The study is spread across five chapters wherein each
chapter tries to understand various facets of TV commercials and it’s impact on
consumer behavior.

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1.3.4 Data collection:
Data is collected with the help of primary as well as secondary sources. Primary sources
includes on field survey with the help of questionnaire and secondary sources includes
books, magazines, journals etc

1.3.5 Limitation:
• Advertisement covers various forms like radio, outdoor etc. The project aims to
understand change in consumer behavior with the help of television media only
• Primary data is collected pertaining to recent five televisions commercial only due
to time and geographic constraint

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CHAPTER 2

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2.1 INTRODUCTION TO ADVERTISEMENT
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. The mass communication tools trade off the
advantage of personal selling, the opportunity to tailor a message to each prospect, for the
advantage of reaching many people at a lower cost per person.

Today, definitions of advertising abound. We might define it as communication process,

a marketing process, an economic and social process, a public relations process or
information and persuasion process.

Dunnetal. 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 a particular audience. Morden 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. Kotler (1988) sees
advertising as one of the four major tools companies use to direct persuasive
communications to target buyers and public noting that “it consists of non-personal forms
of communication conducted through paid media under clear sponsorship”. According to
him, the purpose of advertising is to enhance potential buyers’ responses to the
organization and its offering, emphasizing that “it seeks to do this providing
information, by channeling desire, and by supplying reasons for preferring a particular
organization’s offer.

While writing on advertising nature and scope, Etzel et al. (1997) succinctly capture all
advertising as having four features:
(i) A verbal and or visual message
(ii) A sponsor who is identified

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(iii) Delivery through one or more media
(iv) Payment by the sponsor to the media carrying the message.

Summarizing the above, they conclude that “advertising then consist of all the activities
involved in presenting to an audience a non--personal, sponsor-identified, paid-for
message about a product or organization”. Those views of Etzeletal. (1997) coincide
with the simple but all-embracing definitions of Davies (1998) and Arens (1996). For
instance, while Davies states that “advertising is any paid form of non-personal media
presentation promoting ideas/concepts, good s or services by an identified sponsor.
Arens expressing almost the same view describes advertising as “the personal
communication of information usually paid for and usually persuasive in nature about
products (goods and services) or ideas by identified sponsors through various media”.

From the foregoing, it could be concluded that the purpose of advertising is to cerate
awareness of the advertised product and provide information that will assist the
consumer to make purchase decision, the relevance of advertising as a promotional
strategy, therefore, depends on its ability to influence consumer not only to purchase but
to continue to repurchase and eventually develop-brand loyalty. Consequently, many
organizations expend a huge amount of money on advertising and brand management. A
brand is a name given by a manufacturer to one (or a number) of its products or services.
Brands are used to differentiate products from their competitors. They facilitate
recognition and where customers have built up favorable attitude towards the product,
may speed the individual buyers through the purchase decision process. Individual
purchasers will filter out unfavorable or un-known brands and the continued purchase of
the branded product will reinforce the brand loyal behaviour. Without brands, consumer
couldn’t differentiate one product from another and advertising then would be nearly
impossible.

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2.2 ORIGIN AND DEVELOPMENT OF ADVERTISING
It has been wrongly assumed that the advertising function is of recent origin. Evidences
suggest that the Romans practiced advertising; but the earliest indication of its use in this
country dates back to the middle Ages, when the use of the surname indicated a man’s
occupation. The next stage in the evolution of advertising was the use of signs as a visual
expression of the tradesman’s function and a means of locating the source of goods.
This method is still in common use. The seller in primitive times relied upon his loud
voice to attract attention and inform consumers of the availability of his services. If
there were many competitors, he relied upon his own personal magnetism to attract
attention to his merchandise. Often it became
necessary for him to resort to persuasion to
pinpoint the advantages of his products.
Thus, the seller was doing the complete
promotion job himself. Development of retail
stores, made the traders to be more
concerned about attracting business.
Informing customers of the availability of
supplies was highly important. Some types of outside promotion were necessary. Signs
on stores and in prominent places around the city and notices in printed matters were
sometimes used. When customers were finally attracted to the store and satisfied with the
service at least once, they were still subjected to competitive influences; therefore, the
merchant’s signs and advertisements reminded customers of the continuing availability of
his services. Sometimes traders would talk to present and former customers in the streets,
or join social organizations in order to have continuing contacts with present and
potential customers.
As the markets grew larger and the number of customers increased, the importance of
attracting them also grew. Increasing reliance was placed on advertising methods of
informing about the availability of the products. These advertising methods were more

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economical in reaching large numbers of consumers. While these advertising methods
were useful for informing and reminding, they could not do the whole promotional job.
They were used only to reach each consumer personally. The merchant still used personal
persuasion once the customers were attracted to his store. The invention of hand press
increased the potentialities of advertising. By Shakespeare’s times, posters had made
their appearance, and assumed the function of fostering demand for existing products.
Another important event was the emergence of the pamphlet as an advertising medium.
The early examples of these pamphlets disclose their sponsorship by companies want to
generate goodwill for their activities. The low cost of posters and handbills encouraged a
number of publishers to experiment with other methods.

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2.3 UNDERSTANDING ADVERTISNG

Advertising is a non-personal form of promotion that is delivered through selected media

outlets that, under most circumstances, require the marketer to pay for message
placement. Advertising has long been viewed as a method of mass promotion in that a
single message can reach a large number of people. But, this mass promotion approach
presents problems since many exposed to an advertising message may not be within the
marketer’s target market, and thus, may be an inefficient use of promotional funds.
However, this is changing as new advertising technologies and the emergence of new
media outlets offer more options for targeted advertising. Advertising also has a history
of being considered a one-way form of marketing communication where the message
receiver (i.e., target market) is not in position to immediately respond to the message
(e.g., seek more information). This too is changing. For example, in the next few years
technologies will be readily available to enable a television viewer to click a button to
request more details on a product seen on their favorite TV program. In fact, it is
expected that over the next 10-20 years advertising will move away from a one-way
communication model and become one that is highly interactive. Another characteristic
that may change as advertising evolves is the view that advertising does not stimulate

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 immediate demand for the product advertised. That is, customers cannot quickly purchase
a product they see advertised. But as more media outlets allow customers to interact with
the messages being delivered the ability of advertising to quickly stimulate demand will
improve.

INFORM PERSUADE REMIND

UNAWARE AWARENES INTENT PURCHASE

SS

Advertising is only one element of the promotion mix, but it often considered prominent
in the overall marketing mix design. Its high visibility and pervasiveness made it as an
important social and encomia topic in Indian society. Promotion may be defined as “the
co-ordination of all seller initiated efforts to set up channels of information and
persuasion to facilitate the scale of a good or service.” Promotion is most often intended
to be a supporting component in a marketing mix. Promotion decision must be integrated
and co-ordinate with the rest of the marketing mix, particularly product/brand decisions,
so that it may effectively support an entire marketing mix strategy. The promotion mix
consists of four basic elements. They are:-
 Advertising
 Personal Selling
 Sales Promotion, and
 Publicity
 Advertising is the dissemination of information by non-personal means
through paid media where the source is the sponsoring organization.
 Personal selling is the dissemination of information by non-personal methods,
like face-to-face, contacts between audience and employees of the sponsoring
organization. The source of information is the sponsoring organization.
 Sales promotion is the dissemination of information through a wide variety of
activities other than personal selling, advertising and publicity which
stimulate consumer purchasing and dealer effectiveness.

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  Publicity is the disseminating of information by personal or non-personal
means and is not directly paid by the organization and the organization is not
the source.
2.3.1 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 is identified communication. The advertiser signs his name to his
advertisement for the purpose of publicizing his identity.

2.3.2 Advertising Objectives

Each advertisement is a specific communication that must be effective, not just for one
customer, but for many target buyers. This means that specific objectives should be set
for each particular advertisement campaign. Advertising is a form of promotion and like a
promotion; the objectives of advertising should be specific. This requires that the target
consumers should be specifically identified and that the effect which advertising is
intended to have upon the consumer should be clearly indicated. The objectives of
advertising were traditionally stated in terms of direct sales. Now, it is to view advertising
as having communication objectives that seek to inform persuade and remind potential
customers of the worth of the product. Advertising seeks to condition the consumer so
that he/she may have a favorable reaction to the promotional message. Advertising

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objectives serve as guidelines for the planning and implementation of the entire
advertising programme.

2.3.3 The basic objectives of an advertising programme may be listed as below:

 To stimulate sales amongst present, former and future consumers. It involves a
decision regarding the media, e.g., TV rather than print ;
 To communicate with consumers. This involves decision regarding copy;
 To retain the loyalty of present and former consumers. Advertising may be used
to reassure buyers that they have made the best purchase, thus building loyalty to
the brand name or the firm.
 To increase support. Advertising impliedly bolsters the morale of the sales force
and of distributors, wholesalers, and retailers, ; it thus contributes to enthusiasts
and confidence attitude in the organization. :
 To project an image. Advertising is used to promote an overall image of respect
and trust for an organization. This message is aimed not only at consumers, but
also at the government, shareholders, and the general public.

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2.4 ADVERTISING DEFINITION AND CLASSIFICATION
2.4.1 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” .Advertising may be defined as the process of buying sponsor-identified media
space or time in order to promote a product or an idea. 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.”

Print Media
Print media is a very commonly used medium of advertising by businessman. It includes
advertising through newspaper, magazines, journals, etc. and is also called press
advertising.
a) Newspapers
You must have read Newspapers. In our country newspapers are published in English,
Hindi, Tamil and various other languages. These are the sources of news, opinions and

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current events. In addition, Newspapers are also a very common medium of advertising.
The advertiser communicates his message through newspaper which reaches to millions
of people.

Advantages
 Newspapers normally have wide circulation and a single advertisement in the
newspaper can quickly reach to a large number of people.
 The cost of advertising is relatively low because of wide publication.
 Generally newspapers are published daily. Thus, the same advertisement can be
repeated frequently and remind reader every day.
 The matter of advertisement can be given to newspapers at a very short notice. An
even last minute change in the content is also possible. This makes advertising
quite flexible.
 Newspapers are published from different regions and in different languages.
Hence, they provide greater choice to advertisers to approach the desired market,
region and readers through local or regional language

Limitations
 Newspapers are read soon after they are received and then are kept generally in
some corner of the houses. After 24 hours we get a fresh newspaper and this
makes the life of the newspaper short.
 People read newspapers mainly for news and pay casual attention to
advertisement.
 Illiterate persons can not read and thus, newspaper advertising does not benefit
them.

b) Periodicals
Periodicals are publications which come out regularly but not on a daily basis. These may
be published on a weekly, fortnightly, monthly, bimonthly, quarterly or even yearly basis.
For example you must have come across magazines and journals like India Today,

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Femina, etc. All these periodicals have a large number of readers and thus,
advertisements published in them reach a number of people.

Advantages
 Periodicals have a much longer life than newspapers. These are preserved for a
long period to be referred in future or read at leisure or read again, whenever
required.
 Periodicals have a selected readership and so advertisers can know about their
target customers and accordingly selective advertisements are given.
Limitations
 Advertising in periodicals is costlier.
 The numbers of people to whom the advertisements reach are small in comparison
to newspapers.
 The advertisement materials are given much in advance; hence last minute change
is not possible. This reduces flexibility.

Electronic Media
This is a very popular form of advertising in the modern day marketing. This includes
Radio, television and Internet.

Radio Advertising
All of us are aware about a radio and must have heard advertisements for various
products in it.
In radio there are short breaks during transmission of any programme which is filled by
advertisements of products and services. There are also popular programmes sponsored
by advertisers.

Advantages
 It is more effective as people hear it on a regular basis.

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  It is also useful to illiterates, who can not read and write.
 There are places where newspapers reading may not possible, but you can hear
radio.
For example, you can hear radio while traveling on road or working at home; but you
can not read newspaper. Similarly, while driving you can hear a radio but cannot read a
newspaper.

Limitations
 A regular listener may remember what he has heard. But, occasional listeners
tend to forget what they have heard in Radio.
 The message that any advertisement wants to communicate may not be proper as
there is no chance to hear it again immediately. There may be some other
disturbances that distort communication.
 In comparison to Television, Radio is less effective as it lacks visual impact.

Television Advertising
With rapid growth of information technology and electronic media, television has topped
the list among the media of advertising. TV has the most effective impact as it appeals to
both eye and the ear.

Advantages
 It is most effective as it has an audio-visual impact.
 With catchy slogans, song and dance sequences, famous personalities exhibiting
products, TV advertising has a lasting impact.
 With varieties of channels and programmes advertisers have a lot of choice to
select the channel and time to advertise.
 With regional channels coming up any person even illiterates can watch the
advertisements and understand it by seeing and hearing.
Limitations
 TV advertisements are usually expensive to prepare as well as to telecast.

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  With almost every manufacturer trying to communicate their message through TV
advertising the impact among the viewers is also reducing. Now-a-days people are
switching on channels whenever there is a commercial break.

Internet
It is the latest method of communication and gathering information. If you have a
computer and with an access to internet you can have information from all over the world
within a fraction of second. Through internet you can go to the website of any
manufacturer or service provider and gather information. Sometimes when you do not
have website addresses you take help of search engines or portals. In almost all the search
engines or portals different manufactures or service providers advertise their products.

Advantages
 Information from all over the world is made available at the doorsteps.
 User can see the advertisement at their own time and as per their requirement.

Limitations
 It is not accessible without a computer.
 It is not very suitable for general public.
 It is not suitable for illiterate and those having no knowledge about the operation
of Internet.

Other Media
All the media of advertising discussed above are mostly used by consumers while they
are at home or inside any room, except radio and newspapers or magazines to some
extent. Moreover in all these media, the consumer has also to spend some money to
access the advertisement. However, there are other media available, where the consumer
has to spend nothing and he can see such advertisements while moving outside. Some of
such advertising are hoardings, posters, vehicular displays, gift items, etc.

Hoardings

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While moving on roads you must have seen large hoardings placed on iron frames or roof
tops or walls. These are normally boards on which advertisements are painted or
electronically designed so that they are visible during day or night. The advertisers have
to pay an amount to the owners of the space, where the hoardings are placed.
Posters
Poster are printed and posted on walls, buildings, bridges etc to attract the attention of
customers. Posters of films which are screened on cinema halls are a common sight in our
country.

Vehicular displays
You must have seen advertisements on the public transport like buses, trains, etc. Unlike
hoardings these vehicles give mobility to advertisements and cover a large number of
people.

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2.5 ADVERTISING PLANNING & FRAMEWORK
Plans are nothing, planning is everything
- Dwight D. Eisenhower
The advertising management is mainly concerned with planning and decision making.
The advertising manager will be involved in the development, implementation, and
overall management of an advertising plan. The development of an advertising plan
essentially requires the generation and specification of alternatives. Decision making
involves choosing from among the alternatives. The alternatives can be various levels of
expenditure, different kinds of objectives or strategy possibilities, and kinds of options
with copy creation and media choices. Thus, the essence of planning is to find out the
feasible alternatives and reduce them to decisions. An advertising plan reflects the
planning and decision –making process and the decisions that have been arrived at in a
particular product and market situation.

2.5.1 The Advertising Plan

As pointed out earlier, advertising plan and decision making focus on three crucial areas;
objectives and target selection, message strategy and tactics, and media strategy and
tactics. Let us elaborate on these points:

Objectives and Target Selection

Objectives in advertising can be understood in many ways. An important part of the
objective is the development of a precise, disciplined description of the target audience. It
is often tempting to direct advertising at a broad audience; but everyone is a potential
customer. It is best to consider directing the advertising to more selected groups to
develop stimulating copy. It is quite possible to develop several campaigns, each directed
at different segments of the market, or to develop one campaign based on multiple
objectives.

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Message Strategy and Tactics
Messages strategy must decide what the advertising is meant to communicate – by way
of benefits, feelings, brand personality, or action content. Once the content of the
campaign has been decided, decisions must be made on the best-most effective-ways of
communicating that content. The decisions, such as the choice of a spokesperson, the use
of humor or fear or other tones, and the selection of particular copy, visuals, and layout,
are what we call “message tactics”

Media Strategy and Tactics

Message strategy is concerned with decisions about how much is to be allocated to create
and test advertising copy, media strategy concerns decisions on how many media rupees
to spend on an advertising campaign. Media tactics comprise the decisions on which
specific media (television, radio magazines, etc.) or media vehicles (Reader’s Digest,
etc.) to spend these dollars.

External factors
The external factors in the planning framework are environmental, social and legal
considerations. To a considerable extent, these exist as constraints on the development of
an advertising plan and decision making. In developing specific advertisement, there are
certain legal constraints that must be considered. Deceptive advertising is forbidden by
law. What is deceptive is often difficult, because different people can have different
perceptions of the same advertisements. Thus, an advertiser who attempts to provide
specific, relevant information must be well aware of what constitutes deception in a legal
and ethical sense and of other aspects of advertising regulation.

Even more difficult consideration for people involved in the advertising effort is broad
social and economic issues as stated below.
 Does advertising raise prices or inhibit competition?

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 Is the use of sex or fear appeals is appropriate? Women and minority groups are
exploited in advertising by casting them in highly stereotyped roles.
 Is it more irritating than entertaining?
 Is an intrusion into an already excessively polluted environment?
 Advertising directed at children.

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2.6 CONSUMER BEHAVIOUR
Possibly the most challenging concept in the marketing is to deal with understanding the
buyer behaviour. The attitude of Indian consumers has undergone a major transformation
over the last few years. The Indian consumer today wants to lead a life full of luxury and
comfort. He wants to live in present and does not believe in savings for the future. An
important and recent development in India’s consumerism is the emergence of the rural
market for several basic consumer goods. The Indian middle class has provided a big
boost to the consumer culture during the recent past and it is hoped that their buying
behaviour will continue to change in the coming future. Due to fast growth of the services
sector per capita income of people of India is also increasing. The number of middle
class is increasing due to another fact that people are fast shifting from agriculture to the
services and industry sector where growth prospects are reasonably high as compared to
the agriculture sector which is showing slow growth.

The consumption pattern of a country depends on liberalization of economic policies,

buying habits of the younger generation, financial independence at a young age, increase
in number of nuclear families and increase in media exposure of the people. The tastes
and preferences of the current generation are changing rapidly. The current generation
does not mind paying extra for better facilities and ambience. Another major factor that
has led to increased consumerism is the growth of credit culture in India. The Indian
consumer does not feel shy to purchase products on credit and pay tomorrow for what
they use or buy today. This tendency has led to a tremendous increase in purchase of
homes, cars, two-wheelers and consumer goods. The market for luxury products in India
is also climbing at an astonishing rate as compared to a decade ago when it was almost
negligible. The reason behind this is that the purchasing power of people of India is rising
very steeply. The Indian consumer today is highly aware about the product, price, quality
and the options available with him. The purchasing is done by keeping all these factors in

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mind. Today, price is not the only consideration as it was a few years back when prices
played a major role in purchasing. Marketers are trying hard to capture this ever
increasing Indian middle class as they form the bulk of Indian consumers.
2.6.1 Why study consumer behavior?
WHY do some companies perform more profitably than others, even though they
compete for the same customers, have to pay the same wages, and are subject to the same
regulations? One major reason commonly advanced is that some companies are better
than others at developing products and services in which their customers see a high value
relative to competing products and relative to the price. Developing products in which
customers will see a high value requires, in turn, a good understanding of customers—
what they want, how they buy, what determines whether they will be satisfied with a
product or service. A company that continuously tries to understand its customers and
uses that knowledge in developing products and services is also said to be market
oriented. It has been shown that companies that are more market oriented are generally
more profitable.

The customers that companies deal with vary widely in nature. Often, customers are other
manufacturing companies, as when a manufacturer of lamps sells them to Volkswagen,
which builds them into its cars. In many other cases, the customer is a trading company,
as when a Swedish furniture producer sells to an import company on the German market
or when a manufacturer of frozen vegetables sells to a large supermarket chain. A few
manufacturing companies also sell directly to consumers—for example, by mail order or
via the Internet.

Even though most companies do not have consumers as their immediate customers, the
analysis of consumer behaviour is a major topic in marketing. The reason is that most
products eventually end up in private households, even though they may pass various
steps on their way from the producer to the consumer. Volkswagen sells its automobiles
to consumers, including the lamps it received from its supplier; the German importer sells
the Swedish furniture to a furniture retailer, who sells it to consumers, and the
supermarket chain sells the frozen vegetables to consumers. Producers and traders form

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vertical chains or networks, also called value chains, and the consumer appears as an
‘end-user’—the one who eventually uses or consumes the products and services.

Understanding consumer behavior is, therefore, important not only for those who sell to
consumers directly, like retail companies, but also for all factors preceding the retailer in
the value chain. The value that the consumer perceives in a product sets the limit for what
all others in the value chain can get out of their activities

Many producers have learnt the importance of understanding consumer behaviour the
hard way. In the 1960s a number of industrial bakeries in Denmark started to export a
product that became known as Danish Butter Cookies-small cookies in colourful tin
boxes featuring pictures of the Little Mermaid, the Danish Royal Guard, and the like. The
product was an immediate success in markets such as Germany and the UK, because
consumers perceived it as a high-value product that could be used, amongst other things,
as a gift. Initially, the product was sold from the Danish producers to importers on the
export markets, who then resold it to retailers. Later, the Danish producers thought that it
might be more profitable to sell the product directly to a retailer, and found amongst
others the German discount chain Aldi as a customer. In the ensuing price war, prices
dropped and consumer perception of the product changed from a high-value product to a
cheap discount item. The Danish producers have repeatedly tried to develop new
products to repeat the earlier success, but little has come out of that. Today, producing
butter cookies is a problematic business in Denmark, even though the whole world
knows the product.

How could that happen? Part of the explanation is that the producers thought mainly in
terms of their immediate customers and not in terms of the end-users—the consumers
who end up munching the cookies. Producers did not understand that finding a retail
customer is not only a question of getting good deals with high volume, but also a
question of positioning the product in the minds of the consumer. And when they tried to
develop new products to replace the declining one, they found that they did not know
very much about what consumers want when they buy cookies.

2.6.2 Customers versus Consumers

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The term ‘customer’ is specific in terms of brand, company, or shop. It refers to person
who customarily or regularly purchases particular brand, purchases particular company’s
product, or purchases from particular shop. Thus a person who shops at Bata Stores or
who uses Raymonds clothing is a customer of these firms. Whereas the ‘consumer’ is a
person who generally engages in the activities - search, select, use and dispose of
products, services, experience, or ideas.

2.6.3 Consumer Motives

Consumer has a motive for purchasing a particular product. Motive is a strong feeling,
urge, instinct, desire or emotion that makes the buyer to make a decision to buy. Buying
motives thus are defined as ‘those influences or considerations which provide the impulse
to buy, induce action or determine choice in the purchase of goods or service. These
motives are generally controlled by economic, social, psychological influences etc.
Consumer behaviour reflects the totality of consumers decisions with respect to the
acquisition, consumption and disposition of goods, services, activities and ideas by
human decision making units. Consumer behaviour means more than just how a person
buys tangible products such as bath soap, digital music players and automobiles. It also
includes consumer‟s use of services, activities and ideas such as going to the doctor,
visiting a theme park, etc.

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2.7 FACTORS AFFECTING CONSUMER BEHAVIOUR

Consumer behavior is affected by a lot of variables, ranging from personal motivations,

needs, attitudes and values, personality characteristics, socio-economic and cultural
background, age, sex, professional status to social influences of various kinds exerted by
family, friends, colleagues and society as a whole. The combinations of these various
factors produce a different impact on each one of us as manifested in our different
behaviour as consumers. The various factors that affect buying behaviour of in rural
India are:

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Environment of the consumer - The environment or the surroundings, within which the
consumer lives, has a very strong influence on the buyer behaviour, exampless.
Electrification, water supply affects demand for durables.

Geographic influences - The geographic location in which the consumer is located also
speaks about the thought process of the consumer. For instance, villages in South India
accept technology quicker than in other parts of India. Thus, HMT sells more winding
watches in the north while they sell more quartz watches down south.

Place of purchase - (60% prefer HAATS due to better quality, variety & price)
Companies need to assess the influence of retailers on both consumers at village shops
and at haats.

Creative use of product – Example- Godrej hair dye being used as a paint to colour
horns of oxen, Washing machine being used for churning lassi. The study of product end
provides indicators to the company on the need for education and also for new product
ideas.

2.8 CULTURAL FACTORS INFLUENCING CB

Cultural factors exert the broadest and deepest influence on consumer behaviour. The
marketer needs to understand the role played by the buyer's culture. Culture is the most
basic element that shapes persons wants and behaviour. In India, there are so many
different cultures, which only goes on to make the marketer's job tougher. Some of the
few cultural factors that influence buyer behaviour are:

Product (colour, size, design, and shape): There are many examples that support this
point. For example, the Tata Sumo, which was launched in rural India in a white colour,
was not well accepted. But however, when the same Sumo was re-launched as Spacio (a
different name) and in a bright yellow colour, with a larger seating capacity and ability
to transport good, the acceptance was higher. Another good example would be Philips

29
audio systems. Urban India looks at technology with the viewpoint of the smaller the
better. However, in rural India, the viewpoint is totally opposite. That is the main reason
for the large acceptance of big audio systems. Thus Philips makes audio systems, which
are big in size and get accepted in rural India by their sheer size.

Social practices: There are so many different cultures, and each culture exhibits different
social practices. For example, in a few villages they have common bath areas. Villagers
used to buy one Lifebuoy cake and cut it into smaller bars. This helped lifebuoy to
introduce smaller 75-gram soap bars, which could be used individually.

Decision-making by male head: The male in Indian culture has always been given the
designation of key decision maker. For example, the Mukhiyas opinion (Head of the
village), in most cases, is shared with the rest of the village. Even in a house the male
head is the final decision maker. In rural areas, this trend is very prominent.

Changes in saving and investment patterns: From Gold, Land, to Tractors, VCR‟s,
LCD TVs etc.

2.9 CHANGES IN MARKETING STTRATEGY

With change in consumer buying behaviour the companies also made necessary changes
in their marketing strategies. The changes include:
• Launching of premium products by companies to fulfil requirements of high class
consumers
• Since purchasing power of rural India has increased, the companies have started
shifting their focus towards rural India to capture untapped rural market. This has
reaped huge benefits for companies like in cases of PepsiCo, Coca Cola India and
other FMCG companies.
• Companies not only aim to sell their products but also aim to provide better after
sales services to its consumers. For example companies have provisions to send their
technicians to repair the cars struck at highways or other outer locations due to

30
 technical failure or in case of a mishap. This improves the company‟s credibility and
helps to build its customer base. Example: Cheviot.
• Companies design their products on the basis of market segmentation so that they
have products to suit every pocket and requirement.
• Due to sharp growth in the communication sector, companies are providing many
schemes and plans to attract customers. For example mobile service providers
provide lifetime option and free calls to other mobile users under a specific plan of
the company.
• Due to fierce competition in the electronics market and people‟s willingness to
purchase hi-tech products the rates of LCD and plasma TVs have been slashed by
25%-30%. Through this strategy electronic companies received very good response
from the consumers in the recent past and were able to build a considerable market
for their products.
• Indian consumers have developed a liking for foreign tours and holidays. This has led
to development of many travel agencies that provide a planned foreign tour at a
reasonable price. What is even more interesting is that the customer does not have to
pay the amount in lump sum; instead, he has the facility to make the payment in
monthly instalments according to his convenience.
• Consumers of India have developed a tendency to save travel time. For such
consumers low fare carriers are available that provide air travel facility at a very
affordable price.
• Consumers of India want better housing facilities. The construction companies are
fulfilling this requirement of consumers by providing them luxurious houses,
exquisite interiors, round the clock water and electricity supply, full time security,
club house, gymnasium, etc. within the premises.
• Indian consumers are increasingly becoming aware of the importance of health and
hygiene. Hence companies are making products to suit their health like low calorie,
low fat food. As far as hygiene is concerned companies have fully mechanized their
plants to maintain hygiene and pack the food in such a way that it remains fresh for
longer period of time and does not lose its nutritive value before consumption.

31
• The need for internet is fast growing. To fulfill this need of consumers, mobile
manufacturing companies are providing internet access facility on mobile phones.
This has revolutionized the communication sector and provided a means of
communication that was never ever in anybody’s dreams till a few years back.
• Indian consumer‟s liking for credit is also increasing rapidly. Hence many financial
institutions have come into existence in India and are flourishing. Banks have also
become liberal in their loan and credit policies.

2.10 FUTURE TRENDS IN CONSUMER BEHAVIOUR

Some emerging future trends of buying behaviour of Indian consumers are:
• The new generation will prefer brands that are launched during their growing up
years. They will not prefer brands that are very old in the market. This will make it
easier for new brands to cement their place in the market and run successfully.
• The new generation will possess more risk taking capability and their previous
generations. They will be willing to try out new careers, new ideas and new ways of
doing things.
• Indian consumers will be more logical in their thinking and foreign brands will not
only be considered as the standard of quality. Each brand, be it Indian or foreign, will
be judged on its merit.
• The middle and lower class consumers buying behaviour will change and they may
behave as if they are rich.

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• The contribution of women in decision making will increase with growing number of
nuclear families, educated women and working women. The number of middle class
working women will rise sharply. This will lead to introduction of women oriented
products that may range from insurance products to vocational education.
• Tomorrow’s consumer will focus more on technology and credit purchase.
• Number of nuclear families will increase.
• Health care will become very important in the coming years.

CHAPTER 3

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3.1 TELEVISION ADVERTISEMENT
A television advertisement or television commercial–often just commercial or TV ad
(US), or advert, commercial, advertisement or simply just ad (UK/US), or ad-film
(India)–is a span of television programming produced and paid for by an organization
that conveys a message. Advertisement revenue provides a significant portion of the
funding for most privately owned television networks. The vast majority of television
advertisements today consist of brief advertising spots, ranging in length from a few
seconds to several minutes. Advertisements of this sort have been used to promote a wide
variety of goods, services and ideas since the dawn of television.

The effect of commercial advertisements upon the viewing public has been so successful
and so pervasive that in some countries, the United States in particular, it is considered
impossible for a politician to wage a successful election campaign without the purchase

34
of television advertising. In other countries, such as France, political advertising in
television is heavily restricted, and some, like Norway, completely ban it

3.1.1 Characteristics

Many television advertisements feature catchy jingles (songs or melodies) or catch-

phrases (slogan) that generate sustained ideas, which may remain in the minds of
television viewers long after the span of the advertising campaign. Some of these ad
jingles or catch-phrases may take on lives of their own, spawning gags or "riffs" that may
appear in other forms of hens, such as comedy movies or television variety shows, or in
written media, such as magazine comics or literature. These long-lasting advertising
elements may be said to have taken a place in the pop culture history of the demographic
to whom they appeared. Advertising agencies often use humor as a tool in their creative
marketing campaigns. In fact, many psychological studies have attempted to demonstrate
the effects of humour and their relationship to empowering advertising persuasion.

3.1.2 An animated TV advertisement

Animation is often used in advertisements. The pictures can vary from hand-drawn
traditional animation to computer animation. By using animated characters, an
advertisement may have a certain appeal that is difficult to achieve with actors or mere
product displays. Animation also proofs the advertisement from changes in fashion that
would date it. For this reason, an animated advertisement (or a series of such
advertisements) can be very long-running, several decades in many instances. Notable
examples are the series of advertisements for Kellogg's cereals, starring Snap, Crackle
and Pop and also Tony the Tiger. The animation is often combined with real actors.
Animated advertisements can achieve lasting popularity. In any popular vote for the most
memorable television advertisements in the UK the top positions in the list invariably
include animations, such as the classic Smash and Creature Comforts advertisements.

35
Other long-running ad campaigns catch people by surprise, or even tricking the viewer,
such as the Energizer Bunny advertisement series. It started in the late 1980s as a simple
comparison advertisement, where a room full of battery-operated bunnies was seen
pounding their drums, all slowing down...except one, with the Energizer battery. Years
later, a revised version of this seminal advertisement had the Energizer bunny escaping
the stage and moving on (according to the announcer, he "keeps going and going and
going..."). This was followed by what appeared to be another advertisement: viewers
were oblivious to the fact that the following "advertisement" was actually a parody of
other well-known advertisements until the Energizer bunny suddenly intrudes on the
situation, with the announcer saying "Still going..." (the Energizer Battery Company's
way of emphasizing that their battery lasts longer than other leading batteries). This ad
campaign lasted for nearly fifteen years.

3.2 THE PAST IN INDIA

India witnessed its first television clipping 50 years ago. Since then, rest is history. Today
India is amongst the world’s biggest television markets. Approximately half of all Indian
households own a television today. From a single television channel, over 300 satellite
TV channels are broadcasted today.

3.2.1 Beginning

Doordarshan had a modest beginning with the experimental telecast starting in Delhi on
15 September 1959 with a small transmitter and a makeshift studio. The regular daily
transmission started in 1965 as a part of All India Radio. The television service was
extended to Bombay and Amritsar in 1972. Till 1975, seven Indian cities had television
service and Doordarshan remained the only television channel. Television services were
separated from radio in 1976. Each office of All India Radio and Doordarshan were

36
placed under the management of two separate Director Generals in New Delhi. Finally
Doordarshan as a National Broadcaster came into existence. National telecasts were
introduced in 1982. In the same year, color TV was introduced in the Indian market with
the live telecast of the Independence Day speech by then PM Indira Gandhi on 15
August 1982, followed by the 1982 Asian Games.

3.2.2 TV Programs

The 80s was the era of Doordarshan with shows like Hum Log (1984), Buniyaad (1986-
87) and comedy shows like Yeh Jo Hai Zindagi (1984), Mythological dramas like
Ramayan (1987-88) and Mahabharat (1989-90) glued millions to Doordarshan and later
on Bharat Ek Khoj, The Sword of Tipu Sultan and Chandrakanta. Hindi film songs based
programs like Chitrahaar, Rangoli, Superhit Muqabla crime thrillers like Karamchand,
Byomkesh Bakshi. Shows targeted at children include Dada Dadi ki Kahaniyan, Vikram
Betal, Malgudi Days, Tenali Rama.

3.2.3 Post Liberalisation Television

The central government launched a series of economic and social reforms in 1991 under
PM Narasimha Rao. Under the new policies the government allowed private and foreign
broadcasters to engage in limited operations in India. Foreign channels like CNN, Star
TV and domestic channels such as Zee TV and Sun TV started satellite broadcasts.

3.2.4 Cable television

The cable TV industry exploded in the early 1990s when the broadcast industry was
liberalized, and saw the entry of many foreign players like Rupert Murdoch's Star TV
Network in 1991, MTV, and others. Sun TV (India) was launched in 1992 as the first
private channel in South India. Today it has 20 television channels in the four South
Indian languages. Five new channels belonging to the Hong Kong based STAR TV gave
Indians a fresh breath of life. MTV, STAR Plus, BBC, Prime Sports and STAR Chinese

37
Channel were the 5 channels. Zee TV was the first private owned Indian channel to
broadcast over cable. A few years later, CNN, Discovery Channel, National Geographic
Channel made its foray into India. Star expanded its bouquet introducing STAR World,
STAR Sports, ESPN and STAR Gold. Regional channels flourished along with a
multitude of Hindi channels and a few English channels. By 2001 HBO and History
Channel were the other international channels to enter India. By 2001–2003, other
international channels such as Nickelodeon, Cartoon Network, VH1, Disney and Toon
Disney came into foray. In 2003 news channels started to boom. Today, India has over
130 million homes with television sets, of which nearly 71 million have access to cable
TV. The overall Cable TV market is growing at a robust 8-10%.

3.2.5 Latest Technologies

Conditional access system (CAS) is a digital mode of transmitting TV channels through a

set-top box (STB). The transmission signals are encrypted and viewers need to buy a set-
top box to receive and decrypt the signal. The STB is required to watch only pay
channels. Direct to Home (DTH) is defined as the reception of satellite programs with a
personal dish in an individual home. Internet Protocol TV launched only in some cities
around 2006-2007 by MYNL/BSNL later Expands to many urban areas and still
expanding. Private Broadband provider Bharti Airtel also starts its IPTV service in Delhi,
NCR region.

3.2.6 TV Industry

Today, the Indian TV Industry is running parallel to the big screen. With the mushroom
growth of daily sops the entire TV viewing is revolutionized. The serials like Amanat,
Kyuki Saas Bhi Kabhi Bahu Thi, Tara, Kasauti Zindagi Ki, Kahani Ghar Ghar Ki, Ghar
Ek Mandir redefined the saga of tele viewing. Then comes the age of reality TV, the
programs like Kaun Banega Carorepati, MTV Rodies, Spiltsvilla, Fear Factor, Big Boss,
Is Jungle Se Mujhe Bachao, Sach Ka Samna and Rakhi Ka Swamvar. These programs
have witnessed the highest TRPs and even stormed a lot of controversies. A total

38
estimation of the TV industry annual budget is over 1 lack crores. Since 2002 News
channels have grown exponentially. Today the news channels have become a significant
market and their no is catching the entertainment channels fast. They have become a
super package where they not only show the news bulletins but have the entire list of
programs where they have special hours for Talk shows, debates, Exit Polls, Film critics,
Program clippings and masala news packages like Sansani, Vishesh, Kaal Kapal Mahakal
etc. A no. of Sports channels have also come up and Channels like Movie on Demand
and Music on demand are also favorites amongst the viewers.

3.2.7 TV Advertisements

We all know those beautiful ads of Nirma, Surf and Bajaj. But now, the TV commercial
industry has moved through leaps and bounds. With the advent of latest technologies and
huge customer markets, almost everything is being advertised today by big names of the
Bollywood industry. It has estimated that TV commercial industry is about 400-500
crores. Starting with 41 sets in 1962 and one channel (Audience Research unit, 1991) at
present TV in India covers more than 70 million homes giving a viewing population more
than 400 million individuals through more than 100 channels. A large relatively untapped
market, easy accessibility of relevant technology and a variety of programs are the main
reasons for rapid expansion of Television in India. The Indian TV has crossed a 50 year
mark and instead of getting old and mature it is still young and immature. Sometimes,
there is a need of a censor board as the contents go too vulgar and even un-regularized.

The Indian TV needs to hold the responsibility of showing good content which should be
a value added for the society and acts as the responsible medium for the betterment of the
society.

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3.3 IMPORTANCE OF TV COMMERCIAL
Doordarshan now relies heavily on commercials for revenue. Commercial breaks
occurred every ten or twelve minutes during broadcasting. Popular serials or programmes
like Chandrakanta were heavily sponsored. For example, a few of the sponsors that
would be shown at the start of the programme and during commercial breaks included
products by Hindustan-Lever, Proctor and Gamble, Colgate-Palmolive and Cadburys.
The names of products along with the sponsor flash up on the screen, before, during and
after each episode. The hour long serial often had around five commercial breaks –
mainly for the products of the sponsoring companies. McDowell (158) maintains that

40
colour televisions were introduced into India because they were considered to have
greater commercial appeal. It was also surprising to see how many commercials used
clothing styles and contexts that would be very familiar in Britain. Women were shown
wearing short dresses or skirts and were depicted as having boyfriends. Western music is
also often used, e.g. one advertisement for the soap Nirma (Hindustan-Lever) used a Roy
Orbison song Pretty woman, though Hinglish is more commonly used – a mixture of
Hindi and English. Another advertisement for Heineken portrays football fans who are
transfixed watching football and drinking bottles of Heineken.

These commercials are often attractive and parents turned on the television before a
programme started in order to watch commercials. Many people we lived with liked the
television commercials and avidly watched them. Some people thought they were better
than the programmes. A schoolchild observed that.

Television commercials are better made and of better quality than the state programmes.
They are more innovative and interesting and give you food for thought. The standard of
advertisements on television has improved a lot over the past few years.’

Everyone likes to watch the advertisements as they provide people with information, and
television shows us what products are available. It makes us aware of things to buy. The
poorer people in this village who are not literate enjoy watching television as they can
understand it. They especially like to see advertisements but they cannot afford to buy
many of the things that are shown. Television commercials give you the correct price for
things and benefit us a lot.’

Everyone sees the advertisements on television and they can try to search out what is
good from the advertisements. We can determine what can be used for our betterment
from advertisements. You can learn how to behave and act from such things.’

Hence television commercials were used to decide not only what products to buy, but
how to behave. People in even the remotest areas could see what was appropriate and

41
acceptable. Hence, people were taking on board some aspects such as dressing in a
similar manner to people in the commercials, whilst also maintaining some aspects of
Indian culture.

3.4 IMPACT OF TV AD
The impact of television is vital because of its enormous potential as an audio-visual
communicator. Television (T.V.) enables the creative man to communicate by combining
motion, sounds, words, color, personality and stage setting to express and demonstrate
ideas to large and widely distributed audience.

T.V. advertisements usually play a role in either introducing a product reinforcing the
familiarity to the product and also convincing to purchase the product. Advertisements

42
are among the most visible of the marketing strategy and have been the subject of a great
deal of attention in the last ten to fifteen years. Advertisement cannot only change
emotions but give subliminal message. Advertising today seems to be everywhere and
ever present exerting a far reaching influence on the daily lives of people. Advertisements
develop self-concepts in order to induce purchase decisions. Television advertising
employs attention grabbing trick such as catchy and pleasing music, lyrics, Jingles,
humor and repeated messages. The impact of the advertisements is more on television
than the print media or radio.

A study on T.V. advertisements has expressed that among the media, the impact of
television advertisement on social behavior, including purchasing behavior was the
greatest. The reason being that television has charm, instantaneous transmission
capability and universality of appeal. Television advertising can have a powerful
influence on consumption and behavior. Advertising seen is measured by looking at
‘impacts.’ Impacts provide a measure of advertising exposure. One impact is equivalent
to one member of the target audience viewing one commercial spot. Around one in five
of all of the T.V. advertisement seen is for a core category product. Having realized the
stupendous effect T.V. advertising has not only on the purchasing pattern but also on the
total lifestyle was felt to be changes as a impact of T.V. advertisements.

3.4.1 Advertising causing an alarming change in Indian milieu

One revolution that advertisements have brought about in India is certainly that of
reengineering the mindset. In a postmodern era, which also is a sort of post-god era as
well, advertisement agencies are redefining the laws of living for Indians. They are quick
to assess that a society that has long lost its sense of direction owing much to the loss of
leadership at the top, are promptly replacing the heroes of the past – the ones who now
appear boring to the modern generation – with their own versions of heroism. Obviously
it is the star either of the celluloid or of the cricketing ground that befittingly fulfills the

43
prerequisites of the hero for a society whose sense of destiny seems to be dwindling at a
fast pace.

There is no surprise therefore that in place of Gandhi, Vivekanand or Mother Teresa – or

all those who gave away their lives for a higher, nobler cause – it is Amitabh, the
millennium star, Sharukh, the king khan , or Sachin, the cricketing genius who suggest
that the word hero is only metaphorical and people should not expect anything real from
their heroes.

Naturally for an anxiety ridden and stress driven society, the TV screen spells a soothing
escape from their own inadequacies and a harried existence and what they want is
something simply entertaining or duly sensational to drown their own frustrations in the
shadowy reality of the world. Therefore, rather than engaging people in a meaningful
discussion, the idiot box is busy in enticing their viewers in seeing a world that arises
essentially out of their make-believe assumptions.

Thus, we see the millennium star dancing in comic exuberance and suggesting “Kucch
Meetha Ho Jaye” to his audience for it is the time to celebrate the success of Pappu – the
quintessential, middle aged, balding nincompoop, who finally has managed to pass his
matriculation. Since our millennium star does not mind suggesting that Cadbury
Chocolate is as good as Meetha – normally some sweets in typical Indian context –
people are led to believe that they can as well celebrate their festivals and success with
chocolate. Hence it is through advertisements that the good-old sweets are getting
replaced by chocolates.

Advertisements are playing a crucial role in defining not only the patterns of
understanding but they are focused also on changing the reactions such perception
arouses in people. Good at reading the pulse of the masses, they are replacing the good
old passions with new found obsessions. Hitting right at the adolescent adrenaline comes
the advertisement announcing : “Nayee Umang Nayee Tarang, Krish Ke Sang”. Now we
all know that Krish is a famous movie that is ardently watched by young boys and girls.

44
The Krish referred to here in the advertisement however is a Pan Masala. By selecting a
name familiar to people being the title of the movie, the advertiser is able to strike home
the affinity of the product with the masses. Since they know that it is mostly kids and
youngsters who are charmed by such movies, it seems they are trying to bewitch them.
However, since it is not lawful to sell intoxicating substance to youngsters, they write on
the border of the advertisement the instruction “Not for Minors”.

Quite deftly hence the advertisement is able to mesmerize the present as well as the
prospective customers for their product. Branding their product after a popular movie,
they successfully strike a cord of familiarity with their present as well as prospective
customers. However, as they are supposed to play safe legally, they leave a footnote
which renders their ploy safe and smart.

Once more they target the soft minds – those who either are ignorant of the games played
on them – or the ones whose sensibilities are plaint enough to be moulded to any
formative construction. Somehow becoming a celebrity is seen as everyone’s catch these
days. And in this make-believe world of ours, being with a celebrity is also looked up as
being a celebrity in itself. Here again, the growing boys and girls display a rather strong
zeal to be with the celebrities. Therefore, the advertisement for Tata Indicom lures them
to be with celebrities from the celluloid and suggests coolly : Ajay, Kajol Aur Aap. Since
it is now known to most of us – thanks especially to television again where the breaking
news usually is who is marrying whom – that Ajay and Kajol are a family now, this
invitation has the lure to take the reader into the cozy private comfort of a family fold.
This advertisement does not fascinate only the youngsters but many grown-ups too
might feel like sharing with a family of celebrities receive you, suggestions being that the
buyer of Tata Indocom is no less than a celebrity himself.

Advertisements are not only suggestive of an alternative life in action, they are
attempting also to convert the very ethos and concept of a society which now ostensibly
manifests the tendencies and attitudes that are capitalistic in tone and tenor. They
therefore focus not on what does good but what looks and feels good physically and

45
sensually. Consequently the idea of living big as propagated by the Infinity Club is
centered on Winning in the Pool against Mr Sharma, followed by Cocktail Celebration
in the Lounge Bar. It is not all that Infinity Club offers – it has other, may be infinite,
lucrative offers which includes sharing Some Special Moments with Some Special
Friends at a Multi - cuisine Restaurant, - something that again spells sensuality for the
reader.

If nothing of these works, they end their message hammering a stupendous idea in the
mind : Zindagi Milti Hey Ek Bar, Jiyo Shan Se … Live Big. Obviously, the idea of living
big is confined to sheer physicality as the advertiser shares proudly the belief of not
believing in anything else but the physical and temporal with the reader. It is because of
this ideological shift, which refuses to recognize the world of emotion, or intellect that all
efforts are made to satisfy only the sensuous and the sensual urges for that is all that we
are supposed to be having with us.

However, since being a human means not just existing like any other creature, but
providing a meaningful construct to the existence such defined, living big physically or
materially becomes an alternative method of appending meaningful assumptions to our
otherwise meaningless, trite and drab existence. This strategy stems from a belief that
life comes once and not forever, living it with metaphors of eternity and infinity is
something that can give to it the connotations of meaningful existence. The
advertisements today therefore are not just confining themselves to promoting the sale of
a product; they are forcing a paradigm shift in the thinking patterns of the people. Hence
a bold suggestion that since it is no longer possible to attain salvation through mind and
soul let us achieve infinity by living big may be just at a physical level.

3.4.1 Controversy
Much of the controversy over advertising stems from the ways many companies use it as
a selling tool and form its impact on society’s tastes, values and lifestyles. Critics argue
that children are especially vulnerable to advertising because they lack the experience and
knowledge to understand and evaluate critically the purpose of persuasive advertising

46
appeals. However the concern over advertising and other forms of promotion directed at
children is also receiving greater attention due to the increasing viewing options children
have as a result of the growth of cable television. Research has also shown that children
do not perceive the selling intent of commercials, and cannot distinguish between reality
and fantasy. A heated debate has ensued, since some of the critics charge that advertising
to them is inherently unfair and deceptive and should be banned or severely restricted.

This issue received a great deal of attention in 1979 in America. And as an outcome of
this FTC report recommended banning all TV advertising for any product directed to or
seen by audiences composed largely of children under age eight because they are too
young to understand the selling intent of the advertising. It was debated intensely. Some
favored regulations because of kids’ inability to evaluate advertising messages and make
purchase decisions. The others opposed regulation because members of that group
believed many self- regulatory mechanisms already existed and the appropriate places for
restricting advertising to children was in the home. The group that holds the opinion that
advertisers have a special responsibility to protect children from their own
susceptibilities; says that advertisers should not stimulate unreasonable expectations of
product or performance directly or indirectly by advertising. They must communicate
accurately and truthfully knowing that children may learn practices from advertising that
can affect their health or well-being. Moreover, they should bank on the positive aspects
of life such as friendship, honesty, kindness, respect etc.

Though some feel that the government is responsible for protecting children from the
potentially harmful effects of advertising and other forms of promotion, we should stop
bothering ourselves about regulations, since it comes under the domain of government.
But we can always hold and maintain the other aspect of it very strongly that we being
parents are ultimately responsible for teaching our kids what to see and how to interpret.

47
3.5 TVC – JAN – SEPT 10 ANALYSIS

Key findings:

TV ad volumes have seen growth of 24 per cent during Jan-Sep '10 over Jan-Sep '09.

48
 • High advertising share of Food & Beverages sector on TV during Jan-Sep '10.
• Toilet Soaps was the top category on TV during Jan-Sep '10.

Hindustan Unilever Ltd occupied the top position in the top 10 advertisers list on TV
during Jan-Sep '10.

F&B

• During Jan-Sep '10, TV advertising of Food & Beverages sector has seen growth
of 18 per cent compared to Jan-Sep '09.
• Aerated soft drinks category has the maximum share of overall Food & Beverages
sector on TV ad pie during Jan-Sep '10.
• Coca Cola India Ltd was the top advertiser under Food & Beverages sector
advertising on TV during Jan-Sep '10.

Personal Care/Personal Hygiene

49
 • 48 per cent growth in TV ad volumes of Personal Care/Personal Hygiene sector
during Jan-Sep '10 compared to Jan-Sep '09.
• Toilet soaps was the most advertised category under Personal Care/Personal
Hygiene sector on TV during Jan-Sep '10.

HUL was the number one advertiser of Personal Care/Personal Hygiene brands
advertised on TV during Jan-Sep '10

Services

• TV advertising of services sector grew by 30 per cent during Jan-Sep '10

compared to same period in 2009.
• DTH service providers occupied the first position in the list of Top 10 categories
of services sector on TV during Jan-Sep '10.

Tata Sky Ltd topped the advertisers list of services sector on TV during Jan-Sep '10.

Snippets of Top 3 sectors on TV

Volume growth of F&B sector on TV during Jan-Sep '10

50
TV advertising of Food & Beverages sector has recorded growth of 18 per cent during
Jan-Sep '10 compared to Jan-Sep '09.

Share of F&B categories on TV during Jan-Sep '10

51
• During Jan-Sep '10, top 3 categories of Food & Beverages sector on TV were
aerated soft drink, milk beverages and chocolates.
• Top 10 categories accounted for 71 per cent share of overall Food & Beverages
sector TV ad pie during Jan-Sep '10.

52
Top advertisers of F&B sector on TV during Jan-Sep '10

• Coca Cola India Ltd, Cadburys India Ltd and Pepsi Co occupied the top 3
position in the Top 10 advertisers list of Food & Beverages sector on TV during
Jan-Sep '10.
• 68 per cent share contributed by the Top 10 advertisers of Food & Beverages
sector on TV during Jan-Sep '10.

53
Volume growth of personal care/personal hygiene sector on TV

TV ad volumes of personal care/personal hygiene sector have seen growth of 48 per cent
during Jan-Sep '10 compared to Jan-Sep '09.

54
Share of personal care/personal hygiene categories on TV during Jan-Sep '10

• More than 90 per cent share contributed by the Top 10 personal care/personal
hygiene categories on TV during Jan-Sep '10.

Toilet soaps category with 36 per cent share led the advertising of personal care/personal
hygiene sector on TV during Jan-Sep '10. Tooth Pastes and Fairness Creams with 15 per
cent and 13 per cent share were at second and third place respectively in the list of Top
10 personal care/personal hygiene categories on TV during Jan-Sep '10.

55
Top advertisers of personal care/personal hygiene sector on TV

• HUL has the highest share i.e. 30 per cent of overall advertising of personal
care/personal hygiene sector on TV, followed by Reckitt Benckiser (India) Ltd
and Colgate Palmolive India Ltd each with 15 per cent share during Jan-Sep '10.
• Top 10 advertisers contributed for 86 per cent share of overall personal
care/personal hygiene sector TV ad pie during Jan-Sep '10.

56
Volume growth of services sector on TV during Jan-Sep '10

Compared to Jan-Sep '09, TV ad volumes of services sector has observed growth of 30

per cent during Jan-Sep '10.

57
Share of categories under services sector on TV during Jan-Sep'10

• Top 3 categories of services sector i.e. DTH Service Providers, Properties/Real

Estate and Internet Services General together contributed for 56 per cent share
during Jan-Sep '10.
• 86 per cent share was contributed by the Top 10 categories of services sector on
TV during Jan-Sep '10.

58
Top advertisers of services sector on TV

• Tata Sky Ltd, Sun Direct TV Pvt Ltd and Dish TV India Ltd were the top 3
advertisers of services sector on TV during Jan-Sep '10.

Top 10 advertisers share aggregates to 38 per cent of overall Services sector TV ad pie
during Jan-Sep '10.

59
3.6 RECENT TELEVISION CAMPAIGNS
Storyboard: Fastrack

Agency: Lowe Lintas

Category: Apparel | Fashion and Lifestyle

The TVC opens with a long A bouncer stops a couple The girl, a little irritated goes
queue outside a discotheque from entering back in the car

Starts dancing with her friend

She turns on the music Picks up her shades and ...
outside the disc.

Soon the rest of the crowd All wearing trendy VO: Hip hop sun glasses
joins in. sunglasses. from fastrack

60
Storyboard: Cadbury Celebrations

Agency: Ogilvy India

Category: Confections | Snacks | Foods

The TVC opens with a young But slows down and stops
She quietly tiptoes her way
girl packing her clothes in a when she sees a picture of her
out
hurry and sobbing. parents.

She looks at it for a few And with a sad face says

She sits in her boyfriend's car
seconds and then rushes out ‘let’s go’

Her father politely says

The boy looking at the back As she turns, she gets
"shubh kaam karne ja rahi
seat tells her "yeh kuch kehna astonished to see her family
ho, kuch meetha nahi khaogi.
chahte hain" sitting there
Kaam acha hoga"

61
The TVC opens with a young But slows down and stops
She quietly tiptoes her way
girl packing her clothes in a when she sees a picture of her
out
hurry and sobbing. parents.

VO: Shubh arambh kuch

meetha ho jae.

62
Storyboard: Boroplus

Agency: Everest Brand Solutions

Category: Cosmetics | Toiletries | Personal care

The TVC opens with a shot A man appears in the mirror In the next shot a Rajasthan
of a mirror with a mountain applying a white 'teeka' on native applies white teeka on
range in the background his face his face

The man says "desh ke 50

Crore log Boroplus
People from different walks
antiseptic cream ka safed
of life with prominent
teeka lagate hain, taki
landmarks of India in the
twacha ko sardi ki nazar na
background also do the same
lage".
Super : Boroplus

63
Storyboard: SpiceJet

Agency: Contract Advertising

Category: Travel | Tourism

The TVC opens with a She prepares dough and

Half asleep, she prepares a
pressure cooker whistle chops onions in the middle of
hot meal for her husband.
waking up a woman. the night.

His wife angrily keeps the

Her husband comes home He sits at the dining table and
plate on the table and leaves
from a long flight. smells the food.
without saying a word.

Super: Garma garma

bharatiya khana
Ab Spice Jet pe uplabdh

64
Storyboard: Videocon d2h

Agency: McCann Erickson

Category: Consumer Durables

The TVC opens with a man But gets distracted when a

A salesman comes and starts
in a showroom gazing at a young lady enters the
explaining its features
television showroom.

He leaves the man and The man just stares at the He mistakenly gets locked in
attends to the lady. television and stays there. the showroom.

He searches for his mobile He brings together all the

Looking at the television he
but realizes he is not carrying boxes and makes a sofa out of
gets an idea
one. it.

65
The TVC opens with a man But gets distracted when a
A salesman comes and starts
in a showroom gazing at a young lady enters the
explaining its features
television showroom.

In the morning when the The man, instead of getting

And spends the night
salesman opens the angry at the salesman, thanks
exploring the television.
showroom... him for opening his eyes

And continues by explaining

to the audience... "Videocon
Satellite TV, No need of a set
top box"
Super: Videocon d2h

Storyboard: Spice Mobiles

Agency: Ogilvy India

Category: Services

66
 She is engrossed in watching
The TVC opens with a girl When suddenly her phone
a thriller movie on her
sitting on a train. rings and she gets scared.
mobile.

VO: Pesh hai Spice video She continues watching the

She picks up the phone and
phone, big battery ke sath. movie when a fellow
gets annoyed to hear the
Ab picture dekhiye bina passengers arm almost falls
voice of a telesales person.
rukavat. on her, scaring her again.

Storyboard: Idea Cellular

Agency: Lowe Lintas

Category: Telecom

67
The TVC opens with four
The vendor, a mute man asks
friends sitting at a tea stall, He tells them that all four of
his little help the reason for
they are all quiet and look them have got new jobs.
their silence.
sad.

He continues by saying that

they're all going away, "a ...And that they are worried,
Marathi is going to Kolkata, a as they don't know the On hearing this, the vendor
Bengali to Kerala, Malayali language of the places they gets an idea.
to Haryana and a Haryanavi are going to.
to Mumbai"

With an idea from a mute

Then we see all four friends
one by one reach their
respective destinations.
They are shown speaking to
man their problems are
each other taking assistance
solved and they go back to
and getting their way around.
thank the vendor.

68
The TVC opens with four
The vendor, a mute man asks
friends sitting at a tea stall, He tells them that all four of
his little help the reason for
they are all quiet and look them have got new jobs.
their silence.
sad.

The vendor through sign

language tells them "to speak
you don't need to know a
language".

69
Storyboard: Videocon

Agency: MWG TAG Ideation

Category: Telecom

His dad is sleeping in the

TVC opens with a nerd Then we see a shot of his
same room, thinking the son
engrossed in his mobile mobile displaying pictures of
is studying. He tells him to
phone. women...
sleep.

But the boy tells him "bus Suddenly his balance turns nil
... and waits for a picture on
papa ek lagan hai ander and his mobile starts flashing
his mobile to download
se" ... Zero balance.

VO: Taki aapka signal kabhi

The boy hallucinates about a
break na ho, isiliye pesh hai
girl on his mobile saying
unlimited internet plans.
"Signal main break plan leke
Videocon Mobile services.
dekh"
Pakdo life ka har signal

70
CHAPTER 4

71
4.1 RESEARCH & ANALYSIS
4.1.1 Research Objectives
To understand impact on TV advertisements on consumers

4.1.2 Scope of Study

The scope of study is confined to know impact of TV advertisements on consumer

4.1.3 Time
The time duration of the project has been as follows:
Secondary data collection was started from 19th sept to 27th sept 2010.

4.1.4 Geography
The geographical scope of the offline data collection was restricted to Mumbai city

4.1.5 Research methodology

Research is an art of scientific investigation. It is defined as “A careful investigation or
enquiry especially through search for new facts in any branch of knowledge”. Research
is a movement from the known to the unknown. It is actually a voyage of discovery.
Research refers to the systematic method consisting of enunciating the problem,
collecting the facts or data, analyzing the facts and reaching certain conclusions in the
form of solutions towards the concerned problem.

4.1.6 Research design

A research design specifies the methods and procedures for conducting a particular study.
Broadly speaking, there are 3 categories of research design – exploratory, descriptive and
casual research.

An exploratory research focuses on the discovery of ideas and is generally based on

secondary data. A descriptive study is undertaken when the researcher wants to know the
characteristics of certain groups such as age, educational level, income, occupation, etc.

72
A casual research is undertaken when the researcher is interested in knowing the cause
and effect relationship between two or more variables.

The type of research used in this study is descriptive research. The study was structured
and was rigid and its approach remained the same throughout the study.
Research design is the blue print of the action for this study.

4.1.7 Following method was adopted during study-

• Review of literature and take data from distributor to understand recent development
in the field.
• Defining objective of the study
• Formation of questionnaire to capture primary data
• Analysis and interpretation of primary data
• Conclusion out of primary and secondary data

4.1.8 Primary data

Primary data consists of original information gathered for specific purposes at hand.
These are gathered for a specific purpose or for a specific research project. Primary data
was collected online and offline. Offline data collection was done from students as well
as from general public.

4.1.9 Sampling technique adopted

The sampling technique used for offline survey was convenience sampling.

4.1.10 Tools and techniques adopted

Data was collected with the help of questionnaire. The questionnaire is of structured non-
disguised type. The questions are of mixed type. The contact method used in the offline
survey was personal interview method. The duration of each interview was 15 minutes.
The researcher went to the students personally and asked the questions from the prepared
questionnaire and the answers were noted down on the questionnaire.

73
4.1.11 Sample size:
For offline survey sample size was 100

4.1.12 Limitations
• The study was based on perceptions, ideas and preferences of the respondents,
which are complex in nature and depends on the subjectivity of the individual

• The project Report was to be completed within a time period and this was another
constraint for the study

74
4.1.13 Findings & analysis
Demographics

60 58

50
42
40

30
In %
20

10

0
Male Female

Out of the total surveyed, 42% respondents were male and 58% respondents were female

Age group

60
52
50

40

30
24
21 In %
20

10
3
0
20-30 30-40 40-50 Above
50

The above figures show that 52% respondents were of age group 30-40 where as 24%
respondents were of age group 20-30 and 21 % respondents were of age group 40-50

75
How many hours do you watch TV in a day?

70 69
60
50
40
30
21 In %
20
10 6 4
0
1 hr 2 hr 4 hr More
than 4
hr

The survey reveals that 69% respondent watch television 2 hours in a day where as 21%
respondent watch television 1 hour in a day

76
During what time you watch television?

70
64
60
50
40
30 In %

20 18
12
10 6
0
Morning Afternoon Evening Night

64 % respondent watch television at evening time where as 18% respondent watch

television in morning time. 12% respondent watch television at night

77
How often do you come across advertisement?
100 98
90
80
70
60
50
40
30
20 In %
10 1 1
0
Once in aTwice in More
day a day than
twice in
a day

98 % respondents come across advertisement more than twice in a day

78
Do you rely on television advertisement?
60
54
50

40
32
30
In %
20
14
10

0
Yes No Sometime

54 % respondent sometime rely on TV advertisement where as 32% respondent rely

totally on TV advertisement

Do you change your perception of a product by just seeing TV advertisement?

79
 60
52
50

40

30 28
In %
20
20

10

0
Yes No Some time

52 % respondent change their perception of a product by just seeing TV advertisement,

whereas 28 % respondent change it some time

Do you think advertisement is necessary for your decision making?

80
 45 41
40
35 32
30 27
25
20
In %
15
10
5
0
Always Sometime Not
necessary necessary always

In the survey the respondents were asked how much they feel advertisement is necessary
in their decision making. 27% said that it is always necessary in decision making, 32%
said that advertisement sometimes plays a necessary part when they take a decision,and
41% said that advertisemnet is not necessary in decision making .

What are the factors which influence your decision making process?

81
 2
17

Product features
46 Advertisement
Cost
Friends opinion

35

This chart shows what are the factors considering which a respondent will be influenced
to decide to buy a product.46% said that the features of the product will influence them,
35% said that advertisemnet will influence them to decide as they will get lots of
information about the product, 17% said that the cost of the product makes tham decide
to buy a product and 2% said that they will go by the opinion of friends

What do you look for in an advertisement?

82
 6 1

22 Price
41 Benefits
Celebrity
Offers
Quality

30

In the survey the respondents were asked what are the apspect that they see in an ad..41%
said that thay see the price, 30% said that they see that benefits shown in tha ad., 22% see
the brand endorsers, 6% see the offers given and 1% see the quality of the product shown
in the ad..This shows that in larger amount customers see the price aspect when they see
an ad

Do you purchase a product just because advertisement is made good?

83
 34

Yes
No

66

In this chart the question asked to the respondents was if they purchase a product only
because their favourite celebrity is endorsing a particular product. For this 66% said that
they purchase only because their celebruty is endorsing it, 34% said that they do not
purchase This is clear that celebrity endirsement plays a great part in the brand
preference.

What are the factors in an advertisement which will make you change your brand loyalty?

84
 10 5

Benefits
Value for money
33 New features
52 Discount

The respondents were asked what are the reasons which will make them change their
brand loyalty. 5% said that the benefits of another product may make them change their
brand loyalty, 52% said that the value for money may make them change, 33% said that
new features in another prduct may compel them, 10% said discounts offered by another
brands may make tham swirtchersThrough this survey it is clear that in comparison to
other factors valur for money plays a great role for customers to change the brand
preference.

If you hear the name of a brand through advertisement what do you recall?

85
 8 1

Music
42 Tagline
endorsers
39 product
benefits

10

The respondents were asked what they can recall after they see or hear an ad.. 41% of the
respondents said that they can recall the music which was played in the ad., 10% can
remember the tag line, 39% they remember the brand endorser, 8% can recall only the
product and 1% they recall the benefits that were shown in the ad..This makes it clearly
evident that music in an ad. makes it possible for consumers to recall the particular brand.

4.1.14 Critical observations

86
 • Consumer acquires information about their brands from television.
• Consumers rely on advertisement which shows that advertisement is important.

• Consumers sometimes change their perception of a brand by seeing an

advertisement.

• Consumers said that product features influence their decision making process.

• Consumers look for the price of a product in an advertisement.

• Consumers purchase a product because their favourite celebrity is endorsing it.

• Consumers look value for money shown in an ad makes them change their brand
loyalty.

• When it was asked what they recall after seeing or hearing an ad. Consumers said
music.

• Consumers said that music is very important in an advertisement.

4.1.15 Findings
• According to this study, it has found out that people notice advertisements and the
awareness level of the brand is good only because of advertisements.

• Based on this study I would say television advertisements have more reach to the
people. Customers prefer television in comparison to other media since they get both
the audio and visual effects .This also proves that customer’s rely on advertisements
shown in media

• The customers like branded products because of the quality it possesses.

• For an advertisement to be effective the price, the music and the tag line should be
highlighted. These three aspects create a great impact in brand preference.

87
4.1.16 Suggestions
 Companies should research continuously for quality improvement.
 Develop more effective advertising campaigns
 Advertising messages should both be persuasive and reminder-oriented. .
 Comparative advertising is useful in this regard.
 Television combines motion, sound, and special visual effects for which it is the most
preferred media for advertisements.
 To employ integrated advertising of their product.
 More budgets could be devoted to TV adverts in view of the consumers’.

88
CHAPTER 5

89
5.1 CONCLUSION
Television and advertising together present a lethal combination and has become an
integral part of modern society .It is the most convenient route to reach not only adult
consumers but also the adolescents. Adolescents are manipulated by advertisement
promise that the product will do something special for them which will transform their
life. The results of the study revealed that the girls viewed T.V. advertisements with
interest and found them entertaining and informative. The main reasons for liking an
advertisement was the information it provided regarding the discount, special gifts
attached, brands and quality of the product. The non-informative factors like celebrities,
Catchy slogans, visual effects funny advertisements, good music and action were also the
reasons for liking an advertisement, in order of priority. The influence of the media and
the advertising through it is extremely profound on the psychosocial development. If
consumers are exposed to these media, they may have the deleterious effects as it has the
potential to influence eating habits, exercise habits, buying habits and mental health. It
would not be an exaggeration to say that advertising shapes the consciousness.
Consumers minds do not understand persuasive intent in advertising, they are easy targets
for commercial persuasion

90
5.2 BIBLIOGRAPHY

• Ronald Berman, Advertising and Social Change (Beverly Hills)

• George Belch and Michael Belch, Advertising and Promotion (Tata McGraw Hill)
• Fer Erdogan, Michael J. Baker and Stephen Tagg, “Selecting Celebrity Endorsers:
The Practitioner’s Perspective,” Journal of Advertising Research
• www.wikipedia.com
• www.google.com
• www.ncaer.org
• edms.matrade.gov
• http://www.squidoo.com/influence-of-advertising
• http://www.indiantelevision.com
• www.docstoc.com

91