PRESENTATION

SUBJECT: COMMUNICATION SKILLS

TOPIC: EFFECTS OF ADVERTISING ON CONSUMER

BEHAVIOUR

PRESENTED BY:

NABEEL RIASAT S2F18BSEN0029

AZEEM SHOUKAT S2F18BSEN0025

SHEHARYAR YOUSUF S2F18BSEN0007

SHAN ALI S2F18BSEN0008

AFAQ AHMAD

PRESENTED TO: WAQAS MIRZA

Introduction:

• Marketers need to understand the buying behavior of

consumers while designing their advertisements for the desired
impact.
• Advertisements play an essential role in increasing an image of
a product in the minds of consumers.
• Advertisements must be catchy and communicates relevant
information to consumers.
What Is Advertisement:
• Advertisement is a way of communication.
• Persuade customers to purchase a particular brand of a
product. For example, to make a burger look tasty in
advertising, it may be painted with brown food colours,
sprayed with waterproofing to prevent it from going soggy and
sesame seeds may be super-glued in place. Advertising can
bring new customers and more sales for the business. It can be
expensive but can help make a business make more money.
• The advertiser know more people will eager to buy the product
after watching the advertisemet, so that they get more profit.
• Commercial ads often seek to generate increased consumption
of their products or services through "branding", which
associates a product name or image with certain qualities in
the minds of consumers.
Advertising is a marketing communication that employs an openly
sponsored, non-personal message to promote or sell a product,
service or idea. Sponsors of advertising are typically businesses
wishing to promote their products or services. Advertising is
differentiated from public relations in that an advertiser pays for
and has control over the message.
Purpose Of Advertisement:
 Advertisements help to increase the sale of goods. provide basic
information such as your contact details and website address.
Advetising increase sales by telling potential customers about
your product or service. It prompt specific action - perhaps
getting customers to visit your premises or website, or use a
discount voucher by a specified time. help to create or develop
a distinctive brand for your business to help you stand out
from your competitors.
 Producers can sale goods at reasonable prices. Consumers
and producers interact with each other in a market to buy and
sellgoods and services. Each product has a price and
consumers pay its price in order to buy it. Producers set
their prices to make a profit. Consumers and producersmay
derive a surplus from the purchase and sale of products.
 The purpose of advertising is to inform the consumers about
their product. The purpose of advertising is to inform the
consumers about their product and convince customers
that a company's services or products are the best, enhance the
image of the company, point out and create a need
for products or services, demonstrate new uses for
established products, announce new product.
  Advertisements create awareness:

One of the most widely accepted purpose of advertisements is to increase

the recognition of a brand name or product, or to communicate
information about the availability of the product to the public. This is an
important objective from many point of view.
First, when a new product enters the market, it does not easily gain the
favor of the buyers unless they are well informed about it. That is, an
awareness about the product must exist before a favorable attitude
toward the brand can be developed. An awareness about the brand is all
the more important when several brands compete with each other.

 Reminding buyers to use the product:

For discretionary items having an irregular or unusual

pattern, an appropriate advertising policy must aim at
stimulating the primary demand. To attain this objective, the
buyers must be reminded not only to use the product but also
to restock it.

 Advertising to change belief about brand:

If an attribute is already considered important, buyer will

examine the relative strength of different brands with respect
to that attribute. Accordingly, thepurposes of
advertisements are to improve the buyer’s rating with regard
to the product advertised vis-a-vis the other competing brands.
 When the attribute of a product is not peculiar, advertisements
are floated to establish the superiority of product over other
competing brands.

 General purpose of an advertisement is to market a

product:

The manufacturer extensively use advertisement for this purpose.

Through advertisement, they try to familiarize the customers with their
products and tend to promote a favorable attitude toward them before
buyers are approached by salesman. That is why, when a salesman
approaches a customer, it is relatively easy for him to sell the product.

For example, companies producing machine tools advertise their goods

in those trade magazines which are read by their customers. Such
advertisements may induce potential customers to purchase the product.
At any rate, they create a favorable attitude toward the product so that
the salesman may find it easy to canvass support for it.

Some companies assist retailers in arranging window displays and store

decorations. This serves a dual purpose: it creates consumer interest and
facilitates a favorable reception of the product by the retailer.

 Advertisement as a tool to promote direct sales:

In some cases, advertising is used for the purpose of persuading the

customer to place an order for the product. Mail order houses
through leaflets and catalogs, advertise their products in such a
manner that customers are convinced of their value and are tempted
to write to the institution to get the product without going to a
shopping mall or without going into further details about the
product.

Products like books, ready-to-wear garments, slimming machines,

toys and sports goods can be profitably sold by direct mail
advertisements. Through such advertisements, the company lays
stress on price appeal, and uses such slogans as “direct from factory
to you.”
 Advertisements builds Company’s Image:

The general purpose of advertisements is to build a company’s image.

Practically all companies try to build their image through
advertisements. Some consider it as the primary objective of
advertisement.

For example, Godrej, Lakme, Vimal, VIP have built up an image

through advertisement. It is largely assumed that if the company has
some image or reputation in the market, it will be easy to sell its product.
For example, Vimal’s clothing is very costly; yet it has good sales because
of its image.

Selection of Advertising Media:

Advertising is a vehicle through which advertisers communicate
their messages to customers to induce them to buy the products or
services advertised by them. The following principal advertising
media helps to achieve the key purposes of advertisements:

 Press Media;

 Direct mail media;

 Outdoor media;

 Social media;

 Other media;

Though a wide variety of advertising media are available to achieve

the above purposes of advertisements, yet selection and use of an
appropriate medium of advertisement pose a variety of problems,
which cannot be altogether solved by the management media
specialist or even by an advertising agency.

Types Of Advertisements:
• Outdoor advertising

• Broadcast advertising (on radio, television and internet)

• Surrogate advertisement

• Celebrity advertisement

• Mobile advertisement

What are Consumers:

• The study of how people buy, what they buy, why they buy
and when they buy.
 • It attempts to understand the buyer decision making
process, both individually and in groups.
• The study of consumer behaviour is concerned with all
aspects of purchasing behavior.

Types of consumers:

 Those who buy the product.

 Those who use the product.

Factors Affecting Consumer Behaviour:

 Culture

 Social class

 Reference groups

 Age

 Family

 Demographics

 Geography

 Attitudes

 Lifestyles

 Culture:
 Essentially, culture is the share of each company and is the
major cause of the person who wants and behavior. The
influence of culture on the purchasing behavior varies from
country to country, therefore sellers have to be very careful in
the analysis of the culture of different groups, regions or even
countries.

 Social Class:
Every society has some kind of social class is important for
marketing because the buying behavior of people in a
particular social class is similar. Thus marketing activities
could be adapted to different social classes. Here we should
note that social class is not only determined by income, but
there are several other factors such as wealth, education,
occupation etc.

Social class determined by the factors like income, wealth,

education, occupation, family prestige, value of home, and
neighborhood. It is assumed that people in one class buy the
different products than any other class for different reasons.
For example; Walls icecream vs Movepinck icecream.

 Reference Groups:
Collection of people used as a guide for behavior in specific
situations.

Reference have three functions:

• They provide information

• They serve as comparison.

• They offer guidance.

 Age:
It is undoubtedly an essential factor. The reaction, as a
consumer, of an 18-year-old teenager has nothing to do with
that of a 68-year-old veteran. The needs are also different.
With regard to the latter, there is a curious phenomenon. At
the moment we are born, our requirements are usually very
basic (food, care, etc.). As we reach adulthood and enter into it,
our life becomes more complex and with it our needs become
more complex. In recent years, however, old age brings us
back to more fundamental demands, such as those of our
childhood.

 Family:
Family consists of two or more people who are related by
blood, marriage or adoption and live in the same household.
Family helps to develop a lifestyle (how you spend time and
money and the kinds of activities you value).

 Demographics:
Are statistical, personal, social annd economic characteristics
of a population including;

• Age

• Gender

• Education

• Income

• Occupation
 • Race/ethnicity.

 Geography:
Difference in buying behavior exixts between different regions.
Buying behavior also differs urban areas and rural areas.

 Attitudes:
There are needs and needs, and to each their own. It has
nothing to do with buying paper towels or having a cup of
coffee with buying an anniversary present or a home. Some
purchases are routinary, almost thoughtless, as a habit, but
people can spend days or even weeks trying to decide about
others. The attitude with which your potential customers
approach your products or services will depend on what they
are. Think about this when planning what you want to offer
and how you want to do it.

 Lifestyle:
Lifestyle refers to the way consumers live and spend their time
and money. Lifestyle of a person is typically influenced by
his/her needs, wants and motivations and also by external
factors such as culture, family, reference group and social
class.

 Experience:
It is undoubtedly a determining factor. People have memory, and
they also use it when they are shopping. That’s why customer
experience is so important in the purchasing process. Getting the
customer to have a good memory of your products or services is as
meticulous a task as it is important. If you don’t succeed, it will be
difficult for your company to survive for a long time. If you do,
they’ll be more likely to come back to you and speak well of your
business to friends, family and acquaintances.
These are some of the factors that influence consumer behaviour.
Remember that they are free and their will is sovereign. What can
you do to make them decide to buy your products or services? A
good start is to offer excellent customer service.
There are many ways to do this, and tools that can help you, such
as Integria IMS. Integria IMS is a software that, among other
functionalities, includes an incident management system that can
help you improve customer service in your company.

Positive Effects of Advertisement:

• Educates The Consumer

• Reduction in Prices

• Knowledge of Various Products

• No fear of Exploitation

• Use of better product

• Offers to customers by advertising

• Convenience

 Educate the Consumer:

Advertising also acts as an information service and educates the
consumer. It enables him to know exactly what he wants and where
to get it. Advertising thus makes it possible for enjoyment of new
amenities and make the life of the consumer easier, more
comfortable and pleasant.

 Reduction in prices:
Advertising stimulates demand; production is on large-scale and
cost of production per unit falls. Due to fall in production cost,
price of the commodity is reduced.

 Knowledge of Various Products:

People come to know about different kinds of products by
means of advertising. Thus, the customer has a large variety of
goods to choose from. He picks up the best from among them.

 Use Of Better Product:

Well-advertised goods are generally better in quality thus
justifying advertising although it cannot be denied that certain
firms may advertise worthless goods. In the latter case,
however, the advertising expense will be wasted in the long
run.

 Offer To Customers:
Advertisements give benefits to the consumer by giving
different offers on different useful products.

 Convenience:
Advertising also makes it possible to sell direct to the consumer
by Mail Order Business. Thus, consumers in the mofussil and
out-of-the way areas can also enjoy the comforts and luxuries
available only in the cities or towns. In this way advertising
improves social welfare.

Negative Effects of Advertisement:

 Adds to Costs

 Undermines Social Values

 Confuses the Buyers

 Encourages Sale of Inferior Products

 Some Advertisement is in Bad Taste

 Add To Costs:
An organisation has to spend large amount on advertising. It
increases the cost of the products. To meet this expenditure, price
of the product is raised. No manufacturer pays for the advertising
expenses out of his pocket. Advertising, therefore, leads to
unnecessary rise in prices. In this reference it is said that
advertising costs are passed on to the consumers in the form of
high prices.

 Undermines Social Values:

Only very few products are of any use for them. The brilliance of
new products really gets on their nerves. They want to buy them
but have no resources at their command. Consequently, they start
feeling upset with their present status. Taking it as a social evil, it
can be said that advertisement undermines social values.

 Confuses The Buyers:

• Many a time distorted version of reality is shown in the
advertising. Believing in advertising, consumers buy the
product. On its use, they feel cheated.

• They come to realise later that the information given in the

advertisement was something else whereas the actual product
was quite different from it. Thus, people lose confidence in
advertising because of wrong presentation. In this reference it
is said that advertising confuses rather than helps.
 Encourages Sale of Inferior Products:
Every manufacturer projects his product as superior one in the
advertisement. Therefore, the buyer is unable to decide as to
which product is really good.

• Consequently, it is difficult to get good quality product even

after paying a handsome price for it. If a seller gets good price
for some inferior product, it becomes a habit with him. It
affects other sellers also. Therefore, it is said that
advertisement encourages the sale of inferior products.

 Some Advertisement is in Bad Taste:

• Many times, foul language and objectionable pictures are used
in advertising in order to attract a particular class. They may
be insulting to a particular class. It causes decay of social
values.

• Such kinds of advertising are generally opposed by the people

as it hurts their feelings. In this reference it is said that some
advertisements are in bad tastes.

Conclusion:
 Advertisement has significant impact on the consumer buying
behavior. This study can be helpful to the marketers to
understand what triggers a consumers intention to purchase.

 They can determine which element in advertising is most

effective and which has comparatively lower impact.

 It gives awareness towards the new and most effective brands.

 The findings of the present study are that advertisement
worldwide influences the behavior and attitude formation of
consumer not only in Pakistan but also world wide.