INTRODUCTION
Advertising is the nonpersonal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media. Advertising is targeted messages that communicate information from a company to individual and groups of consumers. This medium allows companies to draw consumers to the company's goods and services. It can also influence consumer buying behavior, which helps companies increase sales revenue. Advertising can help companies develop consumers' awareness to an unmet need or introduce a product that consumers may see as valuable. This influence is often present when new products enter the market. Customer awareness is often low for these items until companies promote them and attempt to drive customer demand through advertising. Companies may also need to use advertising to stave off the popularity of a competitor's products in the economic market. This will result in advertisements that will influence consumers to change their buying behavior and switch products for specific reasons, such as cost or quality. Only the advertising for Mercedes-Benz had a positive influence on its customer equity. If $16 billion of advertising expenditure does not affect the long-term profitability of customers then the industry needs to re-examine its marketing strategy. Mercedes-Benz raised ad spending 39.8% in 2008 vs. 2007. Its U.S. market share is up from 1.6% at the end of 2007 to 1.8% through April this year.
Increase in the advertisement expenses results in increase in the market share which means advertising has influence the customer in the buying behavior. That is the reason for which I took this topic as my research project.
EXECUTIVE SUMMARY
Promotion plays a very important role for the sale of the product. Mercedes Benz is one of the mist successful company in the world because of its promotional activities. MercedesBenz India has been delighting customers with strong brands and a wide range of products equipped with the latest in automotive technology. The company has been the pioneer of the luxury car segment in India with its inception way back in 1995. It is the only luxury car maker in India to have such a wide range of cars. The different ranges available today are the S-Class, E-Class, C-Class, M-Class, CLS-Class, SLK-Class, CL-Class, GL-Class and the Maybach. We have also already introduced our high performance AMG cars in India off late. The depth of choices within these ranges is also extensive with different petrol and diesel engines. The time difference between the global and Indian launch of its latest models is constantly optimized. As Mercedes Benz is into niche market, they mainly target high income customer as they produce luxury cars. For promotion the company should have a unique feature with they can assure to the public. Mercedes Benz has certain unique features which they come up with innovations. Some of them are as follows. Safety cage construction with front and rear crumple zones: Possibly the most important innovation in automobile construction from a safety standpoint, this is now used in nearly all cars and trucks. It was first developed by Mercedes-Benz in 1951. A
reinforced structure surrounds the passenger cabin, and the structure of the front and rear parts of the car is designed to deform in a controlled way to lessen impact forces transmitted to that central structure and further protect occupants. Anti-lock brakes were first used in Mercedes-Benz cars in 1978. They have been standard equipment on all Mercedes-Benz cars since model year 1989. The acronym ``ABS'', coined in 1972, did not originally stand for ``Anti-lock Braking System'' as one might expect, but ``Anti-Blocking System.'' Traction control: Introduced in 1986 to reduce wheel slip in wet or icy conditions. Brake Assist: Now used by many other manufacturers, this uses sensors in the brake system to determine if the driver intends to stop quickly, and, if that is the situation and the brake pedal is not being pressed hard enough for maximum effect, boosts braking force. The ABS system prevents wheel lockup. It was first used by Mercedes-Benz in the 1997 model year. Mercedes Benz promotes their cars by advertisement through print media and electronic media. One of the most noticing thing they come up with in the year 2009 was 0 % interest on the installment for 36 months. That is they are not charging any interest for installment payment.
RESEARCH OBJECTIVES
? ? ? To know how the advertising of Mercedes Benz result in the sale of the product. To find out what additional strategies can be adopted to promote the product. To know the need of advertising for successful brand like Mercedes Benz.
HYPOTHESIS AND TESTING
1. Does the lifestyle appeal in the advertisement of the Mercedes Benz influence buying behavior of the customer in Nariman Point, Mumbai? H0: The lifestyle appeal in the advertisement of Mercedes Benz does influence the buying behavior of the customer in Nariman Point, Mumbai. H1: The lifestyle appeal in the advertisement of Mercedes Benz doesn’t influence the buying behavior of the customer in Nariman Point, Mumbai.
RESEARCH METHODOLOGY
A research methodology is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. On the basis of fundamental objectives of the research we can classify research design into two general types: 1) EXPLORATORY RESEARCH Exploratory research is one type of research design, which has its primary objective the provision of insights into, and comprehension of, the problem situation confronting the researcher. 2) CONCLUSIVE RESEARCH Conclusive research is designed to assist the decision maker in determining evaluating and selecting the best course of action to take in a given situation. Conclusive research can be further divided into two types:a. Descriptive b. Experimental
SAMPLING TYPES METHODS & DATA SOURCES
rimary Data
Primary data is that data which is collected for the first time. It is original in nature in the shape of raw material. For the purpose of collection of primary data, a well structured questionnaire was framed which was filled by the respondents. The questionnaire comprises of close ended as well as open ended questions. In close ended questions dichotomous, ranking, checklist questions and multiple choice questions are used.
Secondary Data
Secondary data is the data which is already collected by someone. They are secondary in nature and are in shape of finished product. Secondary data was collected so as to have accurate results. Required data was collected from various books, magazines, journals and internet.
Sample size
Sample size is the size of sample drawn from the population which is the true representative of the research. The number of respondents included in the study is 15 for convenience in evaluating and analyzing the data and because of time constraint.
Statistical tools used
The main statistical tools used for the collection and analyses of data in this project are: • • Questionnaire Pie Charts
•
Bar Diagrammes
LITERATURE REVIEW
To highlight some of the differences in the strategic insights gleaned from using the traditional versus the new approach, we present a case study for the U.S. automobile industry. The automobile industry is one of the most competitive in the United States, with very heavy marketing expenditure. In 2002, the automobile industry was the world leader in advertising expenditure, with over $16 billion in the United States alone. In addition, several billion dollars were spent on discounts in the form of cash rebates and the like. Some reports suggest that in 2003, U.S. automakers spent as much as $3,310 on each vehicle in the form of cash rebates and below-market loans. A recent study examined the U.S. luxury passenger car market to determine how marketing efforts influence sales (the traditional metric) versus customer profitability (the customer metric). The study examined nine brands (Acura, Audi, BMW, Cadillac, Infiniti, Lexus, Lincoln, Mercedes-Benz, and Volvo) from January 1999 to June 2002. The data covered 26 regional submarkets, representing over 70% of the U.S. market. Results for advertising were also different when viewed from the traditional versus the new lens. For example, while the advertising for BMW had a positive short-term effect on its sales, it did not have any significant impact on its customer equity. Advertising for Acura increased its sales in the long run but not its customer equity. Only the advertising for Mercedes-Benz had a positive influence on its customer equity. If $16 billion of advertising expenditure does not affect the long-term profitability of customers. This article in the journal shows how advertising results in the sale of the product. Advertising has a great impact on luxury products. More they spend on advertising more they generate revenue which means that advertising influence the buying behavior of the customer. (http://knowledge.wharton.upenn.edu, the online research and business analysis journal of the Wharton School of the University of Pennsylvania)
Importance of the advertising: Now, we have agreed on the point that advertising, either consciously or subconsciously, advertising has a tremendous effect on our lives. E.g. Volkswagen was in red by the end of the Second World War. However, within 10 years after that, the cars were best selling in the world. The reason was obviously the advertising. “Marlboro Man Campaign” is also considered as one of the most successful campaign of 20th century. It was started in 1995,
and still smokers associate the cowboy image with it. That’s how advertising has created the brand image in the minds of the customers. Advertising has the power of not only change the buying decision of the customer but also has the power to change the mindset and the attitude of people. E.g. a person who makes a purchase of Mercedes Benz E class will come out of the showroom with lot of attitude and pride. The same way, a college student will feel pleasant and comfortable inviting his friends and family in McDonald’s for a party. Advertising can also be used as an effective tool for a special cause. A literacy ad campaign says,” It takes just 10 paisa and one special person to spread literacy. You!” Advertising can be instrumental in bringing a commendable change in society by generating awareness among the population about the social causes. A recent advertising of Surf Excel claims that by using this product, you can save two buckets of water. Unilever featured actress turned social worker Shabana Azmi to promote this cause. Critics say, it really created an impact on the minds of the customers. Advertising communicates in a very friendly way with the customers which make them realize that the product belongs to them. This one way communication of the advertising can not only share the information of the product, but also the ideas and feelings related with that product too. That is the reason, when a person goes to McDonald’s he associates his feelings and family emotions with it. Many times we purchase Lux soap because we remember our mother using the same. Thus advertising builds an image in the minds in very young age only. It is not just the product, but the sound of the jingle of advertisement, the colors portrayed in it, everything plays a vital role. E.g. kids love McDonald’s because they like the way they advertise it and the tricks played by Ronald McDonald. This strategy of advertisers is so successful that it captures the young minds so easily. And they always know, these young minds only will grow and turn into adults and these adults will give rise to young ones. Thus this cycle will never stop. So, advertising is a cyclical process which never stops! (Sangeeta S, Raghuvir S, Advertising Planning and Implementation,2006, Prentice Hall of India Pvt.Ltd, New Delhi). Mercedes-Benz division has launched a global marketing campaign in 2010 including a new advertising slogan—"The best or nothing"—and a redesigned version of its threepointed star brand symbol. Mercedes-Benz sales chief Joachim Schmidt told reporters that campaign will be financed from Daimler's existing marketing budget, which accounts for
about 2% of the German auto maker's annual revenue, but declined to provide a specific figure. TV advertising will account for around 40% of the campaign, print media for around 45% and online media for 15%. Mr. Schmidt reiterated that the Stuttgart-based company targets a car sales rise of at least 7% year-on-year in 2010, compared with a rise of the overall market of between 3% and 4%. Growth is expected to be driven this year by rising demand, particularly in the U.S. and in China. Daimler Chief Executive Officer Dieter Zetsche said the Mercedes-Benz brand alone is to achieve annual sales of 1.5 million vehicles by 2015, compared with 974,700 in 2009, with the Smart minicar brand set to contribute additional sales volume after its future has been secured through the partnership with Renault SA and Nissan Motor Co. After launching new advertising slogan there was an increase in sale from 14% to 18%.There return on first quarter has been increased by 20%. Here advertising plays a key role in increase in the revenue and sales which in turn result in increasing the profit. (http://online.wsj.com/article/SB10001424052748704312104575298271412947044.htm l. Article on Wall Street Journal By CHRISTOPH RAUWALD in the month of June,2010)
Introduction to advertising: Advertising is known to each one of us. This is so because right from morning till night we come across number of advertisements in newspapers, in magazines, on the roads as hoardings, in shops, posters, in films and on TV. In fact we are now surrounded with the advertisements. Now the question comes in the mind that what purpose they serve in our lives? Do they really influence our buying decisions? Do they really convince us and create an impact on our minds making “brand image”? Even nursery going children these days are aware of brands like McDonld’s. Though it is very difficult to precisely define advertising, we can say definitely that advertising is “a commercial force which has created markets for many industries and the products” (S.A.Chunawalla , Advertising an introductory text, first edition 2003, Himalaya Publications). Advertising is a physiological process of drawing attention, creating interest, arousing desire, giving convincing reasons so as to lead a consumer to action of buying or make him inclined to buy. So, advertising tells well in order to sell.
It is so obvious that right from the birth of a product till its death, at every stage, advertising plays a very important role in reminding the customers about the product. It makes us realize that a certain product has taken birth in the market. It tells us how well the new born product is performing. It creates a market for the same product. It turns the product into a brand. It earns millions and billions of dollars for the producer of the product. When the product gets old, it helps it revive and the product comes in a new package and again advertising comes and tells us that this old product has revived back. Advertising not only has created an impact on the adult consumers but it has a deep impact on the kids too. It has become the most important department of every company. That is the reasons; every company is dedicating a big fat budget for the advertising thing. In short, advertising has proved itself a very important from consumer’s point of view as well as producer’s point of view too. (Advertising an introductory text, S.A.Chunawalla, first edition 2003, Himalaya Publishing House).
Institutions of advertising: While we go through the journey of advertising of a product, it becomes very important to understand the institutions involved in it. Critics say, there are four major institutions involved as follows: 1. The Advertiser 2. The Advertising Agency 3. The Media 4. The Research Suppliers In most cases, an advertising agency actually creates the advertising and makes the media allocation decisions. Modern advertising management is heavily involved with research and a sizeable industry of research supplier firms has grown up to serve the needs of advertisers, agencies, and the media. Today over $1 billion is spent annually on marketing and advertising research and specialized services associated with each of the major media. Since the 1900s, hundreds of books on advertising have been published, most of which can be categorized into different writing traditions. Some are historical and others descriptive in their orientations, still others represent the perspectives of economist, social philosophers, managers, behavioral scientist and quantitative model builders.
Advertising is not just a simple thing to perform. It is a systematic and complicated process which need lots of study from different angles and it involves lot of money. Advertising must be made after the proper research, it will create a positive impact and earn a business for the producer. Else, it may fail and create a negative impact of the product on the customers. Keeping this thing under the considerations, the institutions of the advertising perform their functions carefully. (Rajeev B, John G, David A, Advertising Management, Third Edition1996, Pearson education, New Delhi ).
LIMITATIONS
It’s very difficult to get proper response from the customers as they are very busy people. There are changes in promotional strategy they adopted. It’s been changed many times in a particular year. Website does not provide the advertising strategy, hence become difficult to collect the data.
CONCLUSION
Advertising plays a very important role for the sale of the product. This project helps me to know various promotional strategies adopted by the Mercedes Benz and how it affects the sale during the year 2009 in India. It made me understand promotion plays important role whether its strong brand or week brand. It creates awareness in the mind of customers which may or may not result in sale. Advertising creates awareness in the mind of customers.
doc_417317133.doc
Advertising is the nonpersonal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media. Advertising is targeted messages that communicate information from a company to individual and groups of consumers. This medium allows companies to draw consumers to the company's goods and services. It can also influence consumer buying behavior, which helps companies increase sales revenue. Advertising can help companies develop consumers' awareness to an unmet need or introduce a product that consumers may see as valuable. This influence is often present when new products enter the market. Customer awareness is often low for these items until companies promote them and attempt to drive customer demand through advertising. Companies may also need to use advertising to stave off the popularity of a competitor's products in the economic market. This will result in advertisements that will influence consumers to change their buying behavior and switch products for specific reasons, such as cost or quality. Only the advertising for Mercedes-Benz had a positive influence on its customer equity. If $16 billion of advertising expenditure does not affect the long-term profitability of customers then the industry needs to re-examine its marketing strategy. Mercedes-Benz raised ad spending 39.8% in 2008 vs. 2007. Its U.S. market share is up from 1.6% at the end of 2007 to 1.8% through April this year.
Increase in the advertisement expenses results in increase in the market share which means advertising has influence the customer in the buying behavior. That is the reason for which I took this topic as my research project.
EXECUTIVE SUMMARY
Promotion plays a very important role for the sale of the product. Mercedes Benz is one of the mist successful company in the world because of its promotional activities. MercedesBenz India has been delighting customers with strong brands and a wide range of products equipped with the latest in automotive technology. The company has been the pioneer of the luxury car segment in India with its inception way back in 1995. It is the only luxury car maker in India to have such a wide range of cars. The different ranges available today are the S-Class, E-Class, C-Class, M-Class, CLS-Class, SLK-Class, CL-Class, GL-Class and the Maybach. We have also already introduced our high performance AMG cars in India off late. The depth of choices within these ranges is also extensive with different petrol and diesel engines. The time difference between the global and Indian launch of its latest models is constantly optimized. As Mercedes Benz is into niche market, they mainly target high income customer as they produce luxury cars. For promotion the company should have a unique feature with they can assure to the public. Mercedes Benz has certain unique features which they come up with innovations. Some of them are as follows. Safety cage construction with front and rear crumple zones: Possibly the most important innovation in automobile construction from a safety standpoint, this is now used in nearly all cars and trucks. It was first developed by Mercedes-Benz in 1951. A
reinforced structure surrounds the passenger cabin, and the structure of the front and rear parts of the car is designed to deform in a controlled way to lessen impact forces transmitted to that central structure and further protect occupants. Anti-lock brakes were first used in Mercedes-Benz cars in 1978. They have been standard equipment on all Mercedes-Benz cars since model year 1989. The acronym ``ABS'', coined in 1972, did not originally stand for ``Anti-lock Braking System'' as one might expect, but ``Anti-Blocking System.'' Traction control: Introduced in 1986 to reduce wheel slip in wet or icy conditions. Brake Assist: Now used by many other manufacturers, this uses sensors in the brake system to determine if the driver intends to stop quickly, and, if that is the situation and the brake pedal is not being pressed hard enough for maximum effect, boosts braking force. The ABS system prevents wheel lockup. It was first used by Mercedes-Benz in the 1997 model year. Mercedes Benz promotes their cars by advertisement through print media and electronic media. One of the most noticing thing they come up with in the year 2009 was 0 % interest on the installment for 36 months. That is they are not charging any interest for installment payment.
RESEARCH OBJECTIVES
? ? ? To know how the advertising of Mercedes Benz result in the sale of the product. To find out what additional strategies can be adopted to promote the product. To know the need of advertising for successful brand like Mercedes Benz.
HYPOTHESIS AND TESTING
1. Does the lifestyle appeal in the advertisement of the Mercedes Benz influence buying behavior of the customer in Nariman Point, Mumbai? H0: The lifestyle appeal in the advertisement of Mercedes Benz does influence the buying behavior of the customer in Nariman Point, Mumbai. H1: The lifestyle appeal in the advertisement of Mercedes Benz doesn’t influence the buying behavior of the customer in Nariman Point, Mumbai.
RESEARCH METHODOLOGY
A research methodology is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. On the basis of fundamental objectives of the research we can classify research design into two general types: 1) EXPLORATORY RESEARCH Exploratory research is one type of research design, which has its primary objective the provision of insights into, and comprehension of, the problem situation confronting the researcher. 2) CONCLUSIVE RESEARCH Conclusive research is designed to assist the decision maker in determining evaluating and selecting the best course of action to take in a given situation. Conclusive research can be further divided into two types:a. Descriptive b. Experimental
SAMPLING TYPES METHODS & DATA SOURCES
rimary DataPrimary data is that data which is collected for the first time. It is original in nature in the shape of raw material. For the purpose of collection of primary data, a well structured questionnaire was framed which was filled by the respondents. The questionnaire comprises of close ended as well as open ended questions. In close ended questions dichotomous, ranking, checklist questions and multiple choice questions are used.
Secondary Data
Secondary data is the data which is already collected by someone. They are secondary in nature and are in shape of finished product. Secondary data was collected so as to have accurate results. Required data was collected from various books, magazines, journals and internet.
Sample size
Sample size is the size of sample drawn from the population which is the true representative of the research. The number of respondents included in the study is 15 for convenience in evaluating and analyzing the data and because of time constraint.
Statistical tools used
The main statistical tools used for the collection and analyses of data in this project are: • • Questionnaire Pie Charts
•
Bar Diagrammes
LITERATURE REVIEW
To highlight some of the differences in the strategic insights gleaned from using the traditional versus the new approach, we present a case study for the U.S. automobile industry. The automobile industry is one of the most competitive in the United States, with very heavy marketing expenditure. In 2002, the automobile industry was the world leader in advertising expenditure, with over $16 billion in the United States alone. In addition, several billion dollars were spent on discounts in the form of cash rebates and the like. Some reports suggest that in 2003, U.S. automakers spent as much as $3,310 on each vehicle in the form of cash rebates and below-market loans. A recent study examined the U.S. luxury passenger car market to determine how marketing efforts influence sales (the traditional metric) versus customer profitability (the customer metric). The study examined nine brands (Acura, Audi, BMW, Cadillac, Infiniti, Lexus, Lincoln, Mercedes-Benz, and Volvo) from January 1999 to June 2002. The data covered 26 regional submarkets, representing over 70% of the U.S. market. Results for advertising were also different when viewed from the traditional versus the new lens. For example, while the advertising for BMW had a positive short-term effect on its sales, it did not have any significant impact on its customer equity. Advertising for Acura increased its sales in the long run but not its customer equity. Only the advertising for Mercedes-Benz had a positive influence on its customer equity. If $16 billion of advertising expenditure does not affect the long-term profitability of customers. This article in the journal shows how advertising results in the sale of the product. Advertising has a great impact on luxury products. More they spend on advertising more they generate revenue which means that advertising influence the buying behavior of the customer. (http://knowledge.wharton.upenn.edu, the online research and business analysis journal of the Wharton School of the University of Pennsylvania)
Importance of the advertising: Now, we have agreed on the point that advertising, either consciously or subconsciously, advertising has a tremendous effect on our lives. E.g. Volkswagen was in red by the end of the Second World War. However, within 10 years after that, the cars were best selling in the world. The reason was obviously the advertising. “Marlboro Man Campaign” is also considered as one of the most successful campaign of 20th century. It was started in 1995,
and still smokers associate the cowboy image with it. That’s how advertising has created the brand image in the minds of the customers. Advertising has the power of not only change the buying decision of the customer but also has the power to change the mindset and the attitude of people. E.g. a person who makes a purchase of Mercedes Benz E class will come out of the showroom with lot of attitude and pride. The same way, a college student will feel pleasant and comfortable inviting his friends and family in McDonald’s for a party. Advertising can also be used as an effective tool for a special cause. A literacy ad campaign says,” It takes just 10 paisa and one special person to spread literacy. You!” Advertising can be instrumental in bringing a commendable change in society by generating awareness among the population about the social causes. A recent advertising of Surf Excel claims that by using this product, you can save two buckets of water. Unilever featured actress turned social worker Shabana Azmi to promote this cause. Critics say, it really created an impact on the minds of the customers. Advertising communicates in a very friendly way with the customers which make them realize that the product belongs to them. This one way communication of the advertising can not only share the information of the product, but also the ideas and feelings related with that product too. That is the reason, when a person goes to McDonald’s he associates his feelings and family emotions with it. Many times we purchase Lux soap because we remember our mother using the same. Thus advertising builds an image in the minds in very young age only. It is not just the product, but the sound of the jingle of advertisement, the colors portrayed in it, everything plays a vital role. E.g. kids love McDonald’s because they like the way they advertise it and the tricks played by Ronald McDonald. This strategy of advertisers is so successful that it captures the young minds so easily. And they always know, these young minds only will grow and turn into adults and these adults will give rise to young ones. Thus this cycle will never stop. So, advertising is a cyclical process which never stops! (Sangeeta S, Raghuvir S, Advertising Planning and Implementation,2006, Prentice Hall of India Pvt.Ltd, New Delhi). Mercedes-Benz division has launched a global marketing campaign in 2010 including a new advertising slogan—"The best or nothing"—and a redesigned version of its threepointed star brand symbol. Mercedes-Benz sales chief Joachim Schmidt told reporters that campaign will be financed from Daimler's existing marketing budget, which accounts for
about 2% of the German auto maker's annual revenue, but declined to provide a specific figure. TV advertising will account for around 40% of the campaign, print media for around 45% and online media for 15%. Mr. Schmidt reiterated that the Stuttgart-based company targets a car sales rise of at least 7% year-on-year in 2010, compared with a rise of the overall market of between 3% and 4%. Growth is expected to be driven this year by rising demand, particularly in the U.S. and in China. Daimler Chief Executive Officer Dieter Zetsche said the Mercedes-Benz brand alone is to achieve annual sales of 1.5 million vehicles by 2015, compared with 974,700 in 2009, with the Smart minicar brand set to contribute additional sales volume after its future has been secured through the partnership with Renault SA and Nissan Motor Co. After launching new advertising slogan there was an increase in sale from 14% to 18%.There return on first quarter has been increased by 20%. Here advertising plays a key role in increase in the revenue and sales which in turn result in increasing the profit. (http://online.wsj.com/article/SB10001424052748704312104575298271412947044.htm l. Article on Wall Street Journal By CHRISTOPH RAUWALD in the month of June,2010)
Introduction to advertising: Advertising is known to each one of us. This is so because right from morning till night we come across number of advertisements in newspapers, in magazines, on the roads as hoardings, in shops, posters, in films and on TV. In fact we are now surrounded with the advertisements. Now the question comes in the mind that what purpose they serve in our lives? Do they really influence our buying decisions? Do they really convince us and create an impact on our minds making “brand image”? Even nursery going children these days are aware of brands like McDonld’s. Though it is very difficult to precisely define advertising, we can say definitely that advertising is “a commercial force which has created markets for many industries and the products” (S.A.Chunawalla , Advertising an introductory text, first edition 2003, Himalaya Publications). Advertising is a physiological process of drawing attention, creating interest, arousing desire, giving convincing reasons so as to lead a consumer to action of buying or make him inclined to buy. So, advertising tells well in order to sell.
It is so obvious that right from the birth of a product till its death, at every stage, advertising plays a very important role in reminding the customers about the product. It makes us realize that a certain product has taken birth in the market. It tells us how well the new born product is performing. It creates a market for the same product. It turns the product into a brand. It earns millions and billions of dollars for the producer of the product. When the product gets old, it helps it revive and the product comes in a new package and again advertising comes and tells us that this old product has revived back. Advertising not only has created an impact on the adult consumers but it has a deep impact on the kids too. It has become the most important department of every company. That is the reasons; every company is dedicating a big fat budget for the advertising thing. In short, advertising has proved itself a very important from consumer’s point of view as well as producer’s point of view too. (Advertising an introductory text, S.A.Chunawalla, first edition 2003, Himalaya Publishing House).
Institutions of advertising: While we go through the journey of advertising of a product, it becomes very important to understand the institutions involved in it. Critics say, there are four major institutions involved as follows: 1. The Advertiser 2. The Advertising Agency 3. The Media 4. The Research Suppliers In most cases, an advertising agency actually creates the advertising and makes the media allocation decisions. Modern advertising management is heavily involved with research and a sizeable industry of research supplier firms has grown up to serve the needs of advertisers, agencies, and the media. Today over $1 billion is spent annually on marketing and advertising research and specialized services associated with each of the major media. Since the 1900s, hundreds of books on advertising have been published, most of which can be categorized into different writing traditions. Some are historical and others descriptive in their orientations, still others represent the perspectives of economist, social philosophers, managers, behavioral scientist and quantitative model builders.
Advertising is not just a simple thing to perform. It is a systematic and complicated process which need lots of study from different angles and it involves lot of money. Advertising must be made after the proper research, it will create a positive impact and earn a business for the producer. Else, it may fail and create a negative impact of the product on the customers. Keeping this thing under the considerations, the institutions of the advertising perform their functions carefully. (Rajeev B, John G, David A, Advertising Management, Third Edition1996, Pearson education, New Delhi ).
LIMITATIONS
It’s very difficult to get proper response from the customers as they are very busy people. There are changes in promotional strategy they adopted. It’s been changed many times in a particular year. Website does not provide the advertising strategy, hence become difficult to collect the data.
CONCLUSION
Advertising plays a very important role for the sale of the product. This project helps me to know various promotional strategies adopted by the Mercedes Benz and how it affects the sale during the year 2009 in India. It made me understand promotion plays important role whether its strong brand or week brand. It creates awareness in the mind of customers which may or may not result in sale. Advertising creates awareness in the mind of customers.
doc_417317133.doc