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Essay, 18 pages (4500 words)

Effectiveness of television advertising for shampoos in pakistan marketing essay

Marketing is very important in order to create awareness of the product or service amongst the consumers. Marketing is very necessary in today’s world to compete with other brands in the market . Advertising is a major part of marketing that enable the marketer to communicate with the consumer. There are many mediums for advertising amongst which television is the most popular one. Televison advertising is one way to increase the sales and revenues. This research is conducted to find out the major variables that affect the effectiveness of television advertising for shampoo in Pakistan. For that questionnaire were circulated to get the responses of the consumers and experts. Also literature was reviewed to get the information from the pervious researches made. Data collected showed that message, promotion mix, marketing mix and consumer exposures are major variables.

ABSTRACT

Advertising is one of the major components of the marketing and television is one of the most important medium for advertising. In other words, television advertising is very important and effective way to communicate to mass audience. It is a very good way for creating awareness amongst the target market. Sales of shampoos are largely dependent on effective television advertisements as there is intense competition in the market. This research shows that how different variables affect the effectiveness of television advertising for shampoos in Pakistan. This will help the marketers to better understand the factors and variables that are import to make an effective advertisement. As variables like message, promotion mix, marketing mix and consumer behavior are mostly associated with advertisement. This research shows how much these variables are more important to make television adverting more effective. The results shows that consumer exposure is does not affect the effectiveness of the television advertising. This research is important for the marketer to identify which variable is more useful to make an advertisement more meaningful for the consumers.

ACKNOWLEDGMENT

First of all I am thankful to Allah Almighty for providing me the opportunity to study in such a prestigious university and reaping knowledge . I would like to thank my instructors Ms. Mehr Afzal without her guidance and assistance it would be very difficult to conduct this research. I am also grateful to my parents and sibling for their support and love, which kept me working hard. I am obliged to my friends and colleagues for their help. Finally, I would like to thank all my respondents for sharing their time and knowledge that has helped me in completing my research.

Table of Content

Introduction:

Marketing:

Marketing is one of the internal function of the firms and due importance is given to this function. Marketing is the most important factor that helps to increase the sales and bring in revenues. It also helps to increase the customers and market share it brings awareness about the product to the public . Today’s , marketing is a key factor to make a product successful as there is a lot of competition for every product or service in the market.

Marketing Mix:

Marketing mix comprise of mainly on four factors also called the 4P’s. that are product, price, placement and promotion. These are important factors that help to identify the target market, and also help in positioning the product in the mind of the targeted consumers.

Product:

Product is any tangible things that hold value for the consumers. Product itself, which has to be marketed, is important. The features, attributes, quality and packing of the product increase its importance in the mind of the consumers. The product should hold some value and worth for the consumers, otherwise marketing of the product will be of no use. Also in marketing product plays an important role as it differentiate itself from other similar products available in the market.

Promotion:

This is an important instrument after product that help marketing the product . Promotion is a way in which the product awareness is created. There are two main activities done for promotion they are, above the line and below are the line. Above the line activities includes TV advertisements, mobile advertisements, radio advertisements, internet advertisements, newspaper advertisements etc. Where as, below the line activities includes sales promotion, public relations, sponsorship , personnel selling etc.

Advertising:

This is one of the tools of promotion. Advertising is a way of creating awareness of the product or service amongst the target market. It is the way of linking the buyers and sellers. It helps creating relationship between the product and brand with the customer. It helps to increase the number of consumers and also retaining the customers. It can be done through various mediums and TV is one of them.

TV advertising:

Television advertisement is one of the ways to communicate the mass market. It was started in 1940’s . In today’s time everyone has access to television, so it is an effective way to bring the message to the larger part of the consumers. This is a way in which marketers can bring about the features and attributes of the product to the consumers. It is effective because as it has all the properties like sight, sound and motion. And these qualities make it different from other mediums. TV is an effective medium because generally people spend much of there time in front of the it. But with this, the competition in products is rising and so re the numbers of channels. To make an effective advertisement the on air time and channel selection is important.

Shampoo brands:

With the increasing number of shampoo brands in the market it has become difficult to make image in the mind of the consumer . With the growing needs and wants of the consumers, shampoo brands have started bring in new variants and ways of advertising. Also they have started using intensive marketing to create awareness of the products and its benefits. It is important for the shampoos brands to know what factors will be helpful to retain their customers and make new ones. If companies are allocating huge amount for an advertisement they should know how consumers are responding to their brand . Is the sale is increasing because of the advertisement, they are making or should they include and consider other factors in the advertisement to make it more effective.

Background problem:

In Pakistan a lot of shampoo brands are operating . Some are local and other are international. To increase their sales, each company is advertising in almost every type of medium. To create their image and to position their brand in the mind of the consumer almost every company is advertising through television, as television is one of the most effective medium. To create long term affect of their products the companies need to bring about creative and innovative ideas that will also help them to stand out of clutter. They need to do effective advertising in order to achieve, brand loyalty, goodwill and brand image. The problem is that the management wants to create better image and reputation as compared to their competitors in order to attract more consumers. The purpose of this research is to find out what factors are more important. Which variable is affecting, other factors? And also to know the responses of the customer by measuring the sales and this will help to evaluate the effectiveness of the advertisement.

Significance of the study:

The significance of this study is to help marketers understand what factors are majorly affecting the effectiveness of advertising for shampoos in Pakistan. This research is also important as competition is increasing and more investment is done in advertisement. So it is crucial for the marketers to know whether the investment done is fulfilling the required objectives. The shampoos brands are spending a lot to make effective advertisements for large their massive target market and to make their position in the mind of the consumers. So it is important for them to know what factors and variables are creating positive image of the brand in the mind of the consumers. This research is important because it will help marketer know the responses and behaviors of their consumers. And also what is the opinion of the advertising agencies. This will help the management to learn more about their target market and their responses and also to make lower their cost by using appropriate variables.

Study objectives:

To determine how important message is in TV advertisement.

To determine that how promotion mix makes an advertisement effective.

Does the brand loyalty and exposure of consumers about the brand affect their purchase?

To determine what elements of marketing mix helps in making a TV advertisement more effective.

Literature Review:

1. Modeling the Micro effects of Television Advertising: Which Ad Works, When, Where, for How Long and Why?

Tellis et. al (2005) conducted a research on the factors of Television advertising that effects the sales and market share. The research is based on a model that was divided into tow stages. The data used in the model was call history of toll-free numbers and also the billing invoices from different vehicles that give information about which ad went on air on what time and also how much was the cost of the advertisement. The model has two stages as also mentioned above. The first stage measured effectiveness of different ads in the market and the second stage measured the factors of the ad that creates difference in the responses. Result shows that ad decay over time and also the time of the day in which ad has been brought on air is important. It is suggested to advertise in the beginning on a week that may be a schedule from Saturday to Tuesday or Monday to Wednesday. Also to make an ad successful and effective the selection of TV channels is also curial. The impact is also created from the creative cues that include the source used, the appeal made, and message content. These all factors together make an ad effective and bring about changes in the purchase behavior of consumers. The variables used in this research are creative cues, timing, and placement and cost of Ads. This model can help marketers and managers to make more appropriate decision while making ads. This is also informative for the students who need to know the basic things and factors that make an ad more effective . Advertising agencies should also keep in consideration the timing of the ad that is to be brought with regard to the target market. Overall it is a good article and it is easy to understand.

2. The Effects of Advertising on High and Low Loyalty Consumer Segments.

Raj, S. P. (1982) conducted research on the consumer behavior of purchase in relation to the level brand loyalty they have with various brands and products. The data used in the research are types AdTel consumer panel diary which has been taken from split cable TV system. The test plane Included 411 families and 418 families were in the control. The methodology used had two classifications. The first one was procedures of loyalty that are High and low loyalty and the second one was effect of advertising on the consumers brand choice. The finding of the model shows that increasing rate of advertising do effect the loyalty of consumer for that brand and the purchase of that brand rise but does not decrease the purchase of competing brand. The research also included data form secondary sources. The variables used in the study were product type, ads content and customer choice. It was also discussed in the paper that mood of the ad is also important to increase the loyalty amongst the consumers and informational content is important if the brand is new . This article is important for all the marketers and advertising agency as this article is giving information about the way consumer react . this will help the marketer in increasing their market share. Also this article was able to convey the message that consumer loyalty is important factor.

3. Consumer Responses to Advertising: The Effects of Ad Content, Emotions and Attitude towards the Ad on viewing time.

Olney et al. (1991) in there research measured the effect of advertising on the viewing time and the zipping zapping habits of the consumers. The authors conducted study to measure this, for which they took 50MBA students who watched TV commercials’ videotape in zipping way and 52 MBA students watched the TV commercials in zapping way. 146 Ads were used s sample in two videotapes. The variables used in this article were ad content, viewing time, attitudes and emotions . The result of the study shows that ads which is based on emotional content act as positive factor on viewing time. The hierarchy model of advertising has also been discussed in this article. Other tests were also conduced that were regarding the attitudes. The data collected for the research was from primary and as well as secondary sources and references are mention in the paper. It is mention in research paper that ad content is one of the important factors to make an effective ad . The limitation of the study was that it analyzed the behavior of only limited individuals . overall the information given ion the article is of some value. Further studies can be done on this topic, in order to better understand the way an effect the viewing behavior of consumers.

4. Recognition versus Recall as Measure of Television Commercial Forgetting.

Singh et al. (1988) in there research conducted a study on the importance of recognition as factor of learning and forgetting with regard to the commercials on television. As sample they took 205 undergraduate students, who were allotted 12 experimental cells to watch videotapes that were already prepared. These tapes were shown 6’3 or 1 week before they tend to test the memory of the respondents. The study was a comparison of recall and recognition, on ads shown to them. It was performed to find out whether the recognition decline over time with regard to the commercials . The result showed that recognition does not depend on the length of the ad but it do decline over time and it is sensitive. The article is curial in terms of knowing the behavior of a consumer. The article focused in the literature on the psychology of consumer. This is also discussed in the article that recognition works for the low involvement product where consumer do not have to think much whereas the recall factor is important in high involvement product where decision making is done with much consideration. The variables used in the article are knowledge (awareness) of product, brand, claims made and also memory. Overall it is a well written article and it is useful in for the marketer to make ads in accordance with the product type.

5. A New Approach to Measuring Advertising Effectiveness.

Hall , B. F.(2001) in his research focused on the measurement of effectiveness of the advertising. This paper is based on a study that it explained through various references and also he explained it through general knowledge . Observation is also used to support the article and references. AIDA model has been discussed to bring good understanding for mangers to get a know how of how advertising works. The author has also mentioned the consumer perception of towards advertising. Pre experience exposure is the important level to be understood by the marketer as this is the stage where brand image of new brand has to be made. The author has provided relevant information that is useful for not only the students but also for mangers. The managers can use this knowledge to make managerial decision and will also help them to achieve their goals. The author talks about the connection between advertising and consumer response . The main variables used in this article are pre-exposure and post -exposure. Other variables are accuracy and sensitivity which according to author is also vital . The paper is overall written in a nice manner, but further research should be made on this article as no proper study has been done.

6. Advertising Effects and Effectiveness.

Bendixen, M. T. (1933) in his research focused on the advertising effectiveness . This article is based on two models that are important to understand the marketing process. Also this model explains the responses and decision making process of consumers with regard to advertising. As such no experiment has been done in the article but the study is conducted in the light of observation and references. The first model which has been talked about is the hierarchy model that is based on how consumers go about making a purchase decision. The second and main model is the advertising effectiveness model that states there are four important factors which are used by consumer in making purchase decision . These factors are informative, affective, habitual and satisfaction. The result showed that there are three stages in which ads work, current effect that is important for high involvement products purchase, carryover that is important for medium level product and brand loyalty that required for low involvement of products. These concepts are curial for the managers of marketing to know and on these bases they can make an interesting ad that caters to right target market . the variables use in the articles are awareness, brand loyalty and consumer choice.

7. The Effect of Length, Content and repetition on TV commercial Effectiveness.

Singh et al. (1993) researched on the required length of commercials. The study is based on informational and emotional appeal that helps in learning message with regard to commercials length. The time mentioned for commercials is: 15 sec and: 30 sec. The sample for the study was 138 undergraduate students and that were given two video tapes containing two news program. There were commercials in between the program. They had to watch these video tapes for two consecutive days and for half an hour . The result of the study showed that: 30 sec emotional ads are more effective than: 15 sec emotional ads. Whereas: 15 sec informational ads are more effective than: 30 sec informational ads. This article is useful for the advertisers as it provides knowledge about how and for how long an ad should appear in order to covey its message in an effective way. Also this will help them budget properly keeping in view the length. This article also defines what an emotional and informational content in the ad is; this type of basic information will be useful for the students. The variable in this article are length, appeal and repetition of message in advertisement. The factors this article has enlightened are of significant value, so more research should be done on this to further increase the knowledge of the students as well as the marketers. Because theses are the factor that help make an ad more effective and if the marketers have the technical know how they can make effective ads at low cost. This will also help them achieve there goal and in making profit.

8. Effects of Brand Awareness on Choice for a Common, Repeat Purchase Product.

Hoyer et al. (1990) made a resrech on consumer purchase behavior with respect to their awareness level. The author conducted an experiment to gather information for that he took 173 students of Freshman College . They were tested for butter peanut and they were selected on the term that non of them have ever used any such product. The second group was consisted of 62 individual who were went through blind test to response to the quality of the product . For the first experiment the respondent were provided with three brands of peanut butter product. For those who have never used this product, brand choice for them was difficult . Whereas for those who have used this product , brand choice was easy as they selected that brands about which they were aware and they have used that before, though they even if have founded to be not of good in taste. This experiment was done five times and each time the response were recorded . the result showed that consumers likely to re purchase those products which they are aware of or have used before. They tend to buy known brands even if its quality is lower as compared to the other brands offer similar products. The major variables used in this article are brand awareness and product quality. The article is meaningful for the marketers, as well as for the higher management who are responsible to increase the sales by making consumer aware of there brand. And this they do with the help of advertisement and other promotional activities. So this is a very good article as it providing great understanding of consumer behavior.

9. The Effects of Television Commercial Repetition on cognitive Response and Message Acceptance.

Belch, G. E. (1982) in his resrech paper discussed the effect of exposure frequency of Television commercials on the cognitive responses of consumer and the level of acceptance of the message. The variables used are the commercial repetition frequency, message acceptance and the attitudes. The sample used for the study was 260 people from Church group. They were allotted with the data for 10 evening for two weeks . they had to watch the TV programs and between which commercials were shown. 260 individuals were given one to three exposure conditions. Whereas 60 subjects were allocated with five time exposure. Semantic sale is later used to measure their response of people with whom the experiment was taking place. The result showed that negative thought are rise for those ads that many time in one hour program. This is a very useful research because some marketers have this wrong perception that if there ad will appear more on screen the sales will raise. But they need to know there should be a moderate way to ad exposure that will bring a positive response . Further resrech should be made to give a more clears picture, so that the effectiveness of the ad increases.

10. The Moderating Effects of Message Framing and Source Credibility on the Price-Perceived Risk Relationship.

Grewal et al. (1994) conducted research on consumer purchase behavior regarding new products or new barns in accordance with the risk involved in their performance and monetary risk. The research includes references and studies done previously on this topic. The variables sued in the reach are the message framing, sources credulity and price of product. The subjects of the study were 131 students . This was done by giving them print ads of two brand of VCR and then they had to evaluate them on the message content, source credulity and price factor. The result showed that when the credulity source in an ad is not high performance risk of the new brand is considered high and the consumer will not likely to pay. So when the credulity source is not there and message framing is negative that will control the purchase behavior as price risk will be high. More resrech is required in this topic . the marketers should keep this point in view while making effect ads . Overall this is a knowledgeable article and is easily understandable.

Identification of dependent and independent variables:

Dependent variable:

Effectiveness of television advertising

Independent variables:

Message

Marketing mix

Consumer exposure

Promotion mix

Operational definitions:

Message:

Message is an independent variable on which advertising is very much dependent. Ads can be very effective is if the message content and appeal is rightly used. The sourced used in the message also make a great difference in making an ad successful. Moreover the creative cues and overall theme of the message make an effective advertisement.

Consumer Exposure

Exposure is the second independent variable on which advertising is dependent. Exposure of consumer of the brand and brand’s product that has been advertised make an ad effective. Consumer who are well aware of the brand will buy that product and brand loyalty is also an other factor that which effect the sale of the product been advertised.

Marketing Mix

Marketing mix is also n other independent variable. This also includes the worth of the product to be advertised which will make an ad effective. The target market of the product which has to be advertised is also a factor that affects ads effectiveness.

Promotion Mix

The fourth independent variable is the advertising strategy that is knowing the target market and the competitor will help to make an effective advertisement. Also the medium, budget, culture of the country, viewing time, channels all sum up to make an effective advertisement.

Target market

Advertising agency

Budget

Medium

Consumer Exposure

Message

Source

Creative cues

Appeal

Repetition

Length

Brand loyalty

Consumer choice

Awareness

Competitors

Product

Price

Placement

Promotion

Marketing Mix

Promotion Mix

Effectiveness of television advertising for shampoo in Pakistan

Theoretical frame work

Research question:

What is the relationship between effectiveness television advertising and the importance of message?

How important is the source in the message?

Is there any relationship between brand loyalty and effectiveness of television advertising?

To what extend promotion mix affect effectiveness of television advertising?

How marketing mix is affecting effectiveness of television advertising?

Research Hypothesis:

Hypothesis: 1

Message

H1: A significant relationship exists between message and effectiveness of television advertising.

Ho: A significant relationship does not exist between message and effectiveness of television advertising.

Hypothesis: 2

Marketing mix

H1: A significant relationship exists between marketing mix and effectiveness of television advertising.

Ho: A significant relationship does not exist between marketing mix and effectiveness of television advertising.

Hypothesis: 3

Consumer exposure

H1: A significant relationship exists between consumer exposure and effectiveness of television advertising.

Ho: A significant relationship does not exist between consumer exposure and effectiveness of television advertising.

Hypothesis: 4

Promotion mix

H1: A significant relationship exists between promotion mix and effectiveness of television advertising.

Ho: A significant relationship does not exist between promotion mix and effectiveness of television advertising.

40

Questionnaire

Quantitative

Consumers

Ad agencies

Literature review

Interviews

Qualitative

Convenience Sampling

Data analysis

15

Data collection

Statistical analysis

20 Males

20 FemalesMethodology:

Research methodology

Snowball sampling

For this research paper data will be collected from both primary and secondary data.

Population details:

To conduct research on “ Effectiveness of television advertising for shampoos in Pakistan”, I would be taking into account a specific segment. I will be collecting information both from the consumers and the advertising agencies, which plays a vital role in effectiveness of ads. I will be conducting qualitative and quantitative research in order to get detail information. Interviews will be conducted from the management of the advertising agencies to get their opinion and for better understanding of the subject. And in this regard literature will also be reviewed. For quantitative research questionnaires will circulated amongst the departments of the advertising agencies and also amongst the consumers that will included both males and females. Mainly youth, businessmen and housewives will be targeted for filling up the questionnaires. The target population will be mainly from the socio class A and B.

Sampling frame and sampling procedure:

The sampling frame for my research will be “ non probability sampling “ as this is most suitable for my research because shampoo is one of the fast moving consumer goods and is consumed by almost everyone. Convenience sampling and snowball sampling techniques will be used that comes under non probability sampling method. Conveniences sampling technique will be used in order to collect data from consumers, as it will be including anyone who consumes shampoos. Whereas, snowball sampling technique will be used while colleting data from the advertising agencies, because in there those will be selected who will be best suitable for my research. The scales that I will be using for designing questionnaires will include likert scale, simple attitude scale and numeric scale . These will help me to quantify data easily. Interviews questions will be formal but unstructured to get better understanding and additional knowledge.

Sampling size:

In total I will be circulating seventy questionnaires, forty will be for consumer and twenty will be for advertising agencies. Consumers will includes 20 females and 20 males . Whereas in advertising agencies, the 15 questionnaires will be divided amongst two to three advertising agencies.

Data analyses:

Data analyses will be done, once the data will be collected and organized . Statistical techniques will be used to interpret the responses. Multivariate regression will be done in order to check the relationship between more than one independent variables and a dependent variable. Cross tabs will be done to see the relationships among variables.

Multiple regressions:

From Consumers responses:

Multiple Regression Analysis

Dependent variable: effectiveness of TV ads

Standard T

Parameter Estimate Error Statistic P-Value

—————————————————————————————-

CONSTANT -2. 96722 0. 547958 -5. 41504 0. 0000

Consumer exposure 0. 115396 0. 116527 0. 990292 0. 3288

Marketing mix 0. 402179 0. 22436 1. 79256 0. 0817

Message 0. 873465 0. 274039 3. 18738 0. 0030

Promotional Mix 0. 950687 0. 203312 4. 67601 0. 0000

——————————————————————————————

Analysis of Variance

—————————————————————————–

Source Sum of Squares Df Mean Square F-Ratio P-Value

—————————————————————————–

Model 15. 8043 4 3. 95107 30. 09 0. 0000

Residual 4. 59573 35 0. 131307

—————————————————————————–

Total (Corr.) 20. 4 39

R-squared = 77. 4719 percent

R-squared (adjusted for d. f.) = 74. 8972 percent

Standard Error of Est. = 0. 362363

Mean absolute error = 0. 269886

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