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A

SUMMER TRAINING REPORT

ON

"EFFECT OF ADVERTISEMENT ON CUSTOMER OF MARUTI SUZUKI IN

SURAT CITY"

AT

"KATARIA AUTO MOBILE LTD"

SUBMITTED FOR THE PARTIAL FULFILLMENT OF

THE REQUIREMENT FOR THE

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

GUJARAT TECHNOLOGICAL UNIVERSITY, AHMEDABAD

SUBMITTED BY

Mr. DOBARIYA SANDIP

(Enrollment No.137060592006)

C. K. PITHAWALLA INSTITUTE OF MANAGEMENT

SURAT - 395007

20132015


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C. K. Pithawalla Institute of Management, Surat

Institute Certificate

This is to certify that Mr. DOBARIYA SANDIP has prepared the project report entitled A

STUDY ON EFFECT OF ADVERTISEMENT ON CUSTOMER OF MARUTI SUZUKI IN

SURAT CITYunder my guidance.

The project embodies the result of hiswork & is of the standard expected of a candidate for the

successful completion of master of business administration degree.

Name of Faculty

(Assistant Professor)

The project is forwarded for further evaluation to Gujarat Technological University, Ahmadabad.

Place: Surat

Date: Signature

(Director)


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STUDENT DECLARATION

I MR.DOBARIYA SANDIP hereby declare that the project entitled A STUDY ON EFFECT

OF ADVERTISEMENT ON CUSTOMER OF MARUTI SUZUKI IN SURAT CITY

undertaken at KATARIA AUTOMOBILE under the guidance of DR.FARZANA is submitted

for partial fulfillment for award of the degree of master of business administration to Gujarat

technological university Ahmadabad, is my original work carried out during 6 weeks and not

submitted for the award of any other degree of other similar titles or any other organization or

university by any person.

Date:

Place: signature of student


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ACKNOWLEDGEMENT

It is a great pleasure to have this opportunity to express my wholehearted sense of

gratitude to DR.FARZANA for their valuable guidance for the preparation of this

dissertation. It is due to his encouragement and practical suggestion this dissertation

work should be finished within due period.

I take an opportunity to acknowledge Hon. Director of C.K.PITHAWALLA

INSTITUTE OF MANAGEMENT and all staff of college for making me available all

facilities in fulfilling the requirement for the project work.

I would like to extent my deep sense of gratitude to those entire Respondents who have

filled my questionnaire.

Last but not least I would like to extent my deep sense of gratitude to my friends and all

those who directly or indirectly help me during the project work.

MR. RAJESH MANGUKIYA


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INDEX

SR NO. TOPIC PAGE NO.

1. Company Certificate

2. Institute Certificate

3. Student Declaration

4. Acknowledgement

5. Executive summery

6. Industry Profile

7. Company profile

8. Conceptual Framework

9. Literature Reviews

10. Research Methodology

11. Data Analysis & Findings

12. Recommendations & Conclusion

13. Bibliography

14. Annexure


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INDUSTRY PROFILE

Global:

Automobile industry history: in the year 1769, a French engineer by the name of Nicolas j. could

not invented the first automobiles to run on road. This automobile, in fact was a self-powered,

three-wheeled, military tractor that made the use of a steam engine. The range of the automobile,

however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In

addition, these automobiles were not fit for the roads as the roads as the steam engines made

them very heavy and large, and required ample starting time. Oliver evans was the first to design

a steam engine driven automobile in the U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and

1839. However, Thomas davenport of the U.S.A. and Scotsman Robert Davidson were amongst

the first. To invent more applicable automobiles, making use of non-rechargeable electric

batteries in 1842. Development of road made travelling comfortable and as a result, the short

ranged, electric battery driven automobiles were no more the best option for travelling over

longer distance. The automobile industry finally came of age with henry ford in 1914 for the bulk

production of cars. This lead to the development of the industry and it first begun in the assembly

line of his car factory. The several methods adopted by ford, made the new invention (that is, the

car) popular amongst the rich as well as the masses.

According the history of automobiles industry U.S., dominated the automobiles markets around

the globe with no notable competitors. However, after the end of the Second World War in 1945,

the automobile industry of other technologically advanced nations such as Japan and certain


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European nations gained momentum and within a very short period, beginning in the early

1980s, the U.S. automobile industry was flooded with foreign automobile companies, especially

those of Japan and Germany. The current trends of the global automobile industry revel that in

the developed countries the automobile industries are stagnating as a result of the drooping car

markets, whereas the automobiles industry in the developing nations, such as, India and Brazil,

have been consistently registering higher growth rates every passing year for their flourishing

domestic automobiles market.

The automotive industry designs, develops, manufactures, market, and sells the worlds motor

vehicles. In 2008, more than 70 million motor vehicles, including cars and commercial vehicles

were produced worldwide.

In 2011, a total of 79.9 million new automobiles were sold worldwide: 22.9 million in Europe,

21.4 million in Asia-pacific 19.4 million in USA and Canada, 4.4 million in Latin American, 2.4

million in the Middle East and 1.4 million in Africa. The market in North America and Japan

were stagnant, while those in South America and other part of Asia grew strongly. Of the major

market, china, Russia, Brazil, and India saw the most rapid growth.

About 250 million vehicles are in use in the United States. Around the world, there were about

806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of

gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in china. In the

opinion of some, urban transport systems based around the car have proved unsustainable,

consuming excessive energy, affecting the health of populations, and declining level of service

despite increasing investments. Many of these negative impacts fall disproportionately on those

social groups who are also least likely to own and drive cars.


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National:

An embryonic automotive industry emerged in India in the 1940s. Following the independence,

in 1953, the Government of India and the private sector lunched efforts to create an automotive

component manufacturing industry to supply to the automobile industry. However, the growth

was relatively slow in the 1950s and 1960s due to nationalization and the license raj which

hampered the Indian private sector. After 1970, the automotive industry started to grow, but the

growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major

luxury Japanese manufacturers entered the Indian market ultimately leading to the establishment

of MarutiUdyog. A number of foreign firms initiated joint-ventures for building motorcycles and

light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its

joint-venture to manufacture small cars. Following the economic liberalization in 1991 and the

gradual weakening of the license raj, a number of Indian and multi -national car companies

launched operations. Since then, automotive component and automobile manufacturing growth

has accelerated to meet domestic and export demands.

Indian automobile industry has growth leaps and bounds since 1898, a time when a car had

touched the Indian streets for the first time. At present it holds a promising tenth position in the

entire world with being in two wheelers and in commercial vehicles. Withstanding a growth rate

of 18% per annum and an annual production of more than 2 million unites it may not be an

exaggeration to say that industry in coming years will soon touch a figure of 10 million units per

year. The automobile industry has strong backward and forward linkages and hence provides

employment to a large section of the population. Thus the role of automobile industry cannot be

overlooked in Indian economy. All kinds of vehicles are produced by the automobile industry.


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State:

Gujarat automobile industry has growth continuously increasing. Low cost, low risk and high

efficiency Auto cars and car component units set its pace in Gujarat. The Nano Car, Sanand and

CEAT Companys new radial tyre plant in Halol are evident to fact that the Automobile sector is

bound to emerge as significant contributor to massive employment generation. Even, General

Motors Car manufacturing unit at Halol indicates Auto Hub Growth Sector.

Nano car manufacture plant of Tata Motors is situated here. By 2014 American automobile

company Fordand French auto giant Peugeot will also start manufacturing at Sanand. Maruti is

also scouting for land to set up its manufacturing facility in Sanand. Similarly Hero and Bajaj

have hinted their intentions to set up manufacturing facilities in Sanand.

Rajkot is the hub of the automobile parts manufacturing industry. Rajkot based Atul Auto is

leading manufacturers of 3 wheeler commercial vehicles, goods carriers, passenger carrier,

pickup vehicle. Asia Motor Works (AMW) has heavy duty truck manufacturing plant near

bhuj.AdanisMundra port has Auto export terminal.Thousands of Maruti Suzuki cars have been

already exported from India through this facility. Gujarat has leveraged its location advantages,

with relatively low transaction costs for accessing markets in the western and northern India.

Good rail connectivity is slated to improve significantly with the opening of the dedicated freight

corridors to Dahej and NhavaSheva passing through large parts of Gujarat.

There are several reasons why Gujarats emergence as an auto hub is a positive for Indias

economy. First, the auto sector is a mother industry and for every direct job in the OE, minimum

5-7 indirect jobs are created in tier I, II and III, not including jobs for drivers, service station

attendants and mechanics that form a well paying proposition for many relatively less skilled, but

aspirational Indians.

Secondly, importance of transport equipment, which includes all types of motorised vehicles, in

Indias trade has been increasing. Its share in Indias exports rose from 2.3% in 2000 -01 to 7.8%


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in April-February 2010-11; while the corresponding share for imports soar from 1.4% to 2.5%.

The emergence of Gujarat as an auto hub is expected to assist in Indias external trade in

transport equipment as exports are likely to constitute a significant proportion of auto sectors

output from Gujarat.


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Current trends

BOOM IN INDIAN AUTOMOBILE INDUSTRY

Today, vehicles are in great demand between all segments of society. With huge demand of

vehicles, automobile industry is the fastest growing industry all over the world. Automobile

industries play a vital role in economic development of any country.

Every week a new model of car or bike has been launching to accomplish the requirement of

buyers. Various automobile manufacturing companies are in the market, which provide a lot of

vehicle according to the requirements of different segment of peoples. Automobile companies are

offering various products according to users budget. Gone are the days, when one had to wait

for their dream vehicles. Today, it is not difficult to buy a dream vehicle because of various

financial institutions. Many banks are providing loan and converting your dream into reality.

Buyer needs to pay some extra money as interest rate for that finance amount. This amount

depends on various factors such as buyers credit past, finance amount, loan period and the term

and conditions of financial institution.

If consider the Indian automobile industry, there are various companies, which are offering all

type of vehicles in the market. Automobile manufacturing companies are offering different cars,

two wheelers, three wheelers, commercial vehicles, sport vehicles and other utility vehicles

according to the users requirement. As we all know, cars have become a need for todays world.

Automobile companies are offering various premium cars to entry-level cars of the customers.

There are various car-manufacturing companies in Indian market. Some giants in manufacturing

of cars are Audi, Ford, Fiat, Honda, Hyundai, Skoda, Maruti, BMW, Mercedes, Mahindra &

Mahindra, Hindustan Motors and General Motors. Some awaited car models, which are about to

launch in the year 2008 are Fiesta 1.4 SXiDuratorq, Opel GT, Aveo U -VA, Getz Next

Generation, Logan, Rhino Rover, Audi Q7, Montero, Outlander, Grandis, Santa Fe and

Roomster. Tata motors also working to produce their low budget car till the July 2008. All the

companies are offering various attractive models in different colour and designs. In two -wheeler


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industries, Hero Honda, Bajaj Auto, TVS Motors, Yamaha, Honda, Suzuki and kinetic motors are

offering various motorcycles, scooters and scooterettes to the market. One can choose among the

various models according to his need and budget.

In the initial years after independence Indian automobile industry was plagued by unfavourable

government policies. All it had to offer in the passenger car segment was a 1940s Morris model

called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile

sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the

1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of

tariffs on imports, and refining the banking policies played a vital role in turning around the

Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a

handful of local companies. However, after the sector opened to foreign direct investment in

1996, global majors moved in. Automobile industry in India also received an unintended boost

from stringent government auto emission regulations over the past few years. This ensured that

vehicles produced in India conformed to the standards of the developed world.

Indian automobile industry has matured in last few years and offers differentiated products for

different segments of the society. It is currently making inroads into the rural middle class market

after its inroads into the urban markets and rural rich. In the recent years Indian automobile

sector has witnessed a slew of investments. India is on every major global automobile player's

radar. Indian automobile industry is also fast becoming an outsourcing hub for automobile

companies worldwide, as indicated by the zooming automobile exports from the country. Today,

Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their manufacturing bases in

India. Due to rapid economic growth and higher disposable income it is believed that the success

story of the Indian automobile industry is not going to end soon.

Some of the major characteristics of Indian automobile sector are:

Second largest four-wheeler market in the world.


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Fourth largest commercial car market in the world.

11th largest passenger car market in the world expected to become the world's third largest

automobile market by 2030, behind only China and the US.

COMPETITIEVE FACTORS OF AUTOMOBILE INDUSTRY OF INDIA

The automotive sector is one of Indias largest and fastest growing manufacturing sectors.

It is ranked the 11th largest passenger car producer in the world. In the category of motorcycles

and scooters, India is ranked 1st and 2nd respectively. With Indian increasingly liberalizing its

market place, many new joint ventures evolved, resulting in close to 24 global auto

manufacturers setting up their shop in India.

Competition in India

As a result, competition in Indias automobile had been heating up in the recent years. Many

global players in the automobile have already set up presence in India. Most of them are through

tie-ups with dominant local players, while some are done entirely on their own.

In the absence of strong competition in the past, the local car manufacturer MarutiUdyog Ltd

(MUL) has virtually dominated the Indian automotive market in the passenger segments since

the 1980s. As the automotive manufacturing sector rapidly evolved through the dynamics of

open market and deregulation, many new joint ventures (both technical and financial) were

formed between local players with leading global manufacturers. In 1982, MUL, then a wholly

government-owned company, signed up a collaboration agreement with Suzuki of Japan to

establish the volume production of contemporary models. Subsequently, the licensing regime

was scrapped in 1993 paving way for 17 new ventures, of which 16 are now manufacturing cars.

Since then; there has also been an emergence of new competition for higher value segments of

the passenger car market. Hence, local players like MUL also began to face competition from

new foreign carmakers. Ford entered the mid-range market with the icon model in April 1998, a


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move which was followed by Honda, Mitsubishi, Hyundai, and Daewoo. Other players, Hyundai

and Daewoo, have since improved their share of the passenger car market with new models for

the 4-wheelers segment; MUL/Suzuki dominates the automotive landscape holding a 33% share

of the passenger car market in 2004-05. In the second place is Tata Motors, a local company,

commanding 26% share, while Hyundai Motorranked third with 15% share and the rest split

amongst close to 2 dozen other manufacturers.

For the 2-wheelers segment, it remains quite a local dominant game but global players also have

obvious presence in the market. Major players in this segment include Bajaj Auto, TVS Suzuki,

LML Limited, Hero-Honda Motors, Yamaha Motor India, Kinetic Engineering, Maharashtra

Scooters Majestic Auto, Kinetic-Honda Motors, Royal Enfield (India), Scooters (India), Greaves

Ltd. Foreign manufacturers also have presence in India through their 100% owned subsidiaries,

e.g. Honda Motorcycle, Scooter India Pvt. Ltd. M/s Honda Motors co., Japan, Yamaha Motors

Japan. The largest player is Hero Honda Motors, accounting for 40% of market share, followed

by Bajaj Auto and TVS Motor, which account for 27% and 18% respectively.

Competition in the International Market

Besides on the competition observed amongst all global players in the domestic Indian market,

India as an automotive manufacturing country is also pitting against other competitors in the

international market. In terms of exports of automobile, India is ranked 29 th, while chine, the

other huge automotive factory ranked 17th. For exports of auto parts, India was 26 th, while China

came in 11th. The top country for exports of automobile and auto parts was Germany.

History of Maruti Suzuki India LTD

Maruti Suzuki India Limited, formerly MarutiUdyog Limited, is engaged in the business of

manufacturing, purchase and sale of motor vehicles and spare parts (automobiles). The other

activities of the Company include facilitation of pre-owned car sales, fleet management and car

financing. The Company has four plants, three located in Palam Gurgaon Road, Gurgaon,

Haryana and one located at Manesar Industrial Town, Gurgaon, Haryana. During the fiscal year


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Right from inception, Maruti brought to India, a very simple yet powerful Japanese philosophy

'smaller, fewer, lighter, shorter and neater'

From the Japanese work culture we imbibed simple practices like an open office, a common

uniform and common canteen for everyone from the Managing Director to the workman, daily

morning exercise, and quality circle teams.

On 14th December, 1983, first Maruti 800, India's iconic car rolled-off the assembly line at

company's Gurgaon plant. Late Mrs. Indira Gandhi, the then Prime Minister of India, handed

over keys for this car to the first Maruti customer. Since then, Maruti Suzuki has produced and

sold around 75 lakh (7.5 million) cars to address the needs of customers across segments.

Maruti's current efforts mirror the government's vision to put India in the international map for

producing compact small cars. All over the world, Suzuki is acknowledged for its know-how in

producing small cars. The governments renewed focus on promoting small cars, offers a major

opportunity for Maruti Suzuki.

The Indian car market had stagnated at a volume of 30,000 or 40,000 cars a year for the decade

ending 1983. In 1993, this figure reached a number of 1, 96,820. Maruti's figures are a different

story altogether. Maruti reached a total production of one million motorcars in March 1994,

becoming the first Indian company to cross this milestone and crossed the two million mark in

1997.For the year ended 1997-98, Maruti posted a turnover of US$ 2.1 billion and a profit before

Tax of US$ 244 million. During the year, Maruti produced over 350,000 vehicles, out of which

26,000 were exported. Through the years Maruti has provided world -class Japanese technology,

suitably adapted to Indian conditions and Indian car users.

The Maruti models on road now are :

Maruti 1000: Launched 1990.

1. Maruti Zen: Launched 1993 with a facelift in 2003.Production ended in 2006.

2. Maruti Esteem: Launched 1994 MarutiWagon-R:Launched 1999 Modified 2006.


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3. MarutiBaleno: Launched 1999. Production ended late 2006/early 2007.

4. Maruti Alto: Launched 2000. Currently the largest selling car in India.

5. Maruti Grand Vitara: Launched 2003.

6.

Maruti Grand Vitara XL-7.

7. Maruti Versa: Launched 2003.

8. Maruti Swift: Launched 2005.

9. Maruti Zen Estilo Launched in 2006.

10. Maruti Swift Diesel Launched in 2007.

11. Maruti Suzuki SX4 Launched in May 2007.

12.

Maruti Grand Vitara Sports Utility Vehicle Launched in July 2007.

13. Maruti Ritz launched in 2009.

14. Maruti Suzuki Ertiga CNG 2013.

15. Maruti Suzuki swift sport 2013.

16. Maruti Suzuki XA Alpha 2014.

COMPANY PROFILE

About company

Kataria automobiles Ltd.

GENERAL INFORMATION

The KATARIA GROUP was founded by Mr. ShobhagmaljiKataria in the year 1956 and has

grown to become one of the biggest Transport Operators in India, having 60 branches. The

Katarina group has since expanded its wings, by way of expansion and diversification in various

sectors, the first being in 1984 with dealerships of LML 2 wheelers. It further expanded its


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wings to become one of the Most Trusted Brand for Maruti Car Dealership in 1996. Not stopping

at its unclenched Automobile Growth, it further.

(An Authorized Dealer of Maruti Suzuki)

The KATARIA GROUP was founded by Mr. ShobhagmalKataria in the year 1956 and has grown

to become one of the biggest Transport Operators in India, having 60 branches. The Kataria

group has since expanded its wings, by way of expansion and diversificationin various sectors,

the first being in 1984 with dealerships of LML 2 wheelers. It further expanded its wings to

become one of the Most Trusted Brand for Maruti Car Dealership in 1996. Not stopping at itsunflinched Automobile Growth, it further acquired the dealership of TVS Two Wheelers in 2003

Today Kataria Automobiles, is one of the most trusted brands in the Automobile Dealership

of MarutiSuzukiwith Showrooms in Ahmedabad, Surat, Navsari and Vapi Today the Kataria

Group is proud to have a family of 2000 dedicated, satisfied and committed work force. The

Group further has a satisfied customer base of more than 2, 00,000 happy families.

Kataria group has introduced, as one of the diversified business enterprise, with the operation in

the spanning field, from transport to the telecom industry. Kataria started its operation and makes

a name with the transport business and very soon become one of the largest fleet in the industry.


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Than after Kataria group has take entry in automobiles industry, with a two-wheeler dealership in

1983. After that we were developed our business with four-wheelers dealership of Maruti Suzuki

Ltd at DariapurDarwaja in Ahmedabad and it is the head -office of Kataria Automobiles Ltd. The

last decade has been us growing and to be one of the largest dealer of Maruti Suzuki in India.

Now-a-days Kataria Automobiles has opened number of branches and Workshops as below

given table.

CITY

NUMBER OF

SHOWROOMS

NUMBER OF

OUTLATES

NUMBER OF

WORKSHOPS

Ahemdabad 3 4 3

Surat 3 - 3

Bardoli 1 - -

Navasari 1 - 1

Palanpur 1 - -

Anand 1 - 1

Vapi 1 - 1

Mahesana 1 - -

Valsad 1 - 1

Nadiad 1 - -

We are ISO certified company with Quality system-ISO-9001-2000.


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We are one of the Maruti dealer in Gujarat during course of time we have grown as a

company and having 2 Maruti Showroom. Two full-fledged workshop at Surat One at Varachha

and another at Parle point and shortly we are opening third at piplod.

J. D. Power Survey has rated us as No. 1 in CUSTOMER SATISFACTION amongst all

India Maruti dealers.

We have been awarded a prestigious PLANTIUM DEALERSHIP award for continuously

three years.

Name Post

Rohan Kataria DIRECTOR

R.K. Kataria CHAIRMAN

Ankur Jain C.E.O.

Tejas Patel GM

Bhavana Chauhan SM

Rakesh Mishra INSO.MANAGER

Navneet Sharma HR MANAGER

SHOWROOM ADDRESSES

1. KatariAutomobiles Ltd.

Opp Apparel Park, Nr Khokra

Bridge, Maninagar,

Ahmadabad.

2. Kataria Automobiles Ltd.

OppRajhans Theatre,


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Dumas Road, Piplod,

Surat.


Plot No. 891,

Opp. Hari Om Pava Mill,

Near Ganesh SisodraChokdi,

N.H.No. 8, Ganesh Sisodra, Navsari.


C-29, G.I.D.C,

Vapi.

5.

VISION & MISSION

VISION :

Reliable service with sophisticated technology, to meet and exceed the customer requires.

To be at the distribution service by prompt, quiche and ments.

To be recognized as the most specialized group of professionals providing business

service like marketing, supply chain and warehouse management services based on execellent

reputation in quality, cost effectiveness and dependability

MISSION :

To help our client win by providing value added.Cost effective and comprehensive

services in marketing, warehouse, supply chain, human resources and talent development arena

worldwide.

Be a globally preferred provider of India-centric supply chain services and solutions, and

a leader in the India.

Delight customer with quality service by setting new trends through innovation and

technology


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Create service excellence in all business

CORPORATEGOAL AND OBJECTIVES :

Production of fuel-efficient vehicles to conserve scarce resources.

Production of large number of motor vehicles which was necessary for economic growth

Maruti created history by going into production in a record 13 months.

On 14 December 1983, the then Prime Minister of India, Mrs. Indira Gandhi,

released the first vehicle for sale by handing over the keys of a Maruti 800 to Mr.

Harpal Singh of Delhi.


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INTRODUCTION

Advertising is a favorable representation of product to make consumer, customers and general

public aware of product. It let the potential buyers, general public and end users to be aware and

familiar with the brands and their goods and services. Before going on the importance of

advertising, we would have an introduction to advertising first.

Advertising can be define as a paid form of non professional but encouraging, complimenting

and positively favorable presentation of goods and services to a group of people by an identified

sponsor. It does not include distribution of free samples or offering bonuses, these are sales

promotion. In simplest words advertising is introduction, to consumers and general public, of

services and goods.

Advertising is a form ofcommunication intended topersuade an audience (viewers, readers or

listeners) to purchase or take some action upon products, ideas, or services. It includes the name

of a product or service and how that product or service could benefit the consumer, to persuade a

target market to purchase or to consume that particularbrand.These messages are usually paid

for by sponsors and viewed via various media. Advertising can also serve to communicate an

idea to a large number of people in an attempt to convince them to take a certain action.
http://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Communication


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IMPORTANCE OF ADVERTISING

Effect of Advertising in Business

From the business point of view, advertising not just optimizes sales and product promotion but

the goodwill of the specific brand that is earned is an important asset. A well known brand not

only has a good customer base but it is a great ground to introduce new products under the same

banner. In such a case, there is a very high probability that people are going to purchase the new

product out of curiosity. It is often said that reputation gained and maintained due to advertising

helps out the business throughout the life time. The logic behind that is simple. When advertising

creates awareness, people know about the product and when they known about the product, they

pay attention to its newer advertisements and the probability that the person will buy the product

will increase. To conclude the paragraph it can be said that advertising helps business gain loyal

customers as well as a good platform in the entire market.

Importance of Advertising in Marketing

Apart from gaining a loyal customer base, advertising is often successful in marketing the brand

and conveying financial details about the brand to the consumers. The pricing details often

generate an interest and the process of money planning, starts ticking in the person's mind.

Offers such a buy 2 get 1 free or discounts are introduced to the consumers successfully through

advertising. Such offers result into a spurt of sales and are quite instrumental for clearance sales,

new introduction sales, re-release sales, etc. Advertising thus, plays quite a comprehensive role

in marking policies.
http://www.buzzle.com/articles/marketing/http://www.buzzle.com/articles/pricing/http://www.buzzle.com/articles/pricing/http://www.buzzle.com/articles/marketing/


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MERITS & DEMERITS OF ADVERTISING

Merits:

It increases the sales of the company.

It makes the customers aware about the image of the company.

It attracts new customers and creates brand loyalty in the previous customers.

If a company introduces a new product in the market then the company can use

advertising strategy to inform the customers.

Demerits:

It requires a lot of budget.

It can create issues of under demand and under supply for the company and dislocates

the demand and supply equilibrium for the company.

It can also distort the mission of the company and the image of the company in the

market through wrong concept in advertisements.

Over advertisement of a company can create a fuss among the customers.


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According to the traditional attitude theory consumer, behavior is predicted from

consumer attitude when consumers buy the brand, which they like the most. An attitude

may be defined as acquire behavioral disposition (Smith & Swinyard, 1983).

Another component of effective advertisement that creates emotional response is the

consumer ability to recall the brand ad (Goldsmith & Lafferty, 2002). Thus, the relative

importance of brand recall will depend on the extent to which consumer makes product

related decisions, which leads to the brand awareness (Keller, 2006)

Brand knowledge through advertisement helps in influencing brand salience in a way that

the quantity and sparkle of the memories about the brand thought to be in buying

situation that creates emotional response towards ads (Holden & Lutz, 1992).

Individuals uses cue in different buying situation for recalling the brand ad and greater

chance of brand to be retrieved of any buyer, when different attributes are attached to the

brand, which creates brand association (Romaniuk & Sharp, 2004).

http://international.abhinavjournal.com/images/Management%26_Technology/Mar13/19.pdf

Verdon etal (1968) while studying the relationship between advertising and aggregate

demand found that advertising have a positive relation with aggregate demand.

http://www.iiuedu.eu/press/journals/sds/sds1_july_2008/08_SECC_04.pdf

The term advertising is defined as a paid non-personal communication from anidentified sponsor using mass media to persuade or influence an audience (Wells,Burnett & Moriarty, 2003, p.10).

To assess the effectiveness of advertisements, there have been two streams of research

(Jeong, 2004). One stream of research focuses on the psychological aspects of advertising

impact and the other focuses on the sales and market response aspects of advertising

effects. These two different areas of advertising effectiveness research are

discussed in the next sections.
http://international.abhinavjournal.com/images/Management%26_Technology/Mar13/19.pdfhttp://www.iiuedu.eu/press/journals/sds/sds1_july_2008/08_SECC_04.pdfhttp://www.iiuedu.eu/press/journals/sds/sds1_july_2008/08_SECC_04.pdfhttp://international.abhinavjournal.com/images/Management%26_Technology/Mar13/19.pdf


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The sales effect refers to the assessment of the capability of advertising to affect the sales

volume and/or the market share, regardless of the possible influence of other variables.

For Batra et al. (1995), the effectiveness of advertising should be considered for its effecton sales in the short term. This advertising performance measurement is based on the

marginal theory (Chamberlin, 1948). The advertising is therefore regarded as an

independent variable that can be combined with other marketing variables to have a

certain effect on the dependent variable, i.e. sales. The aim is to seek the best

combination of the determinants of the sales increase.

http://www.gcbe.us/10th_GCBE/data/Elisabetta%20Corvi,%20Michelle%20Bonera.doc

Music theory. The idea that music has the potential to enhance attention (stimulate

awareness) and memory (recall) has been widely speculated and researched (Adorno

1941, 1976; Bartlett & Snelus, 1980; Bower & Bolton, 1969; Galizio & Hendrick, 1972;

Hecker, 1984; Macklin, 1988; Rothschild, 1987; Rubin, 1977; Schulkind et al., 1999;

Wallace, 1994).

Macklin (1988) found that messages that were sung in a produced, original jingle that

sounded like a nursery rhyme produced the same recall from children as spoken

messages. Bartlett and Snelus (1980) found that cued recall of lyrics of popular songs

from 1921 (When Francis Dances With Me) to 1974 (Morning Has Broken) was

higher in response to melodies than in response to titles. Schulkind, Hennis, and Rubin

(1999) observed a correlation between music, emotion and autobiographical, long-term

memory of older adults and songs from their youth when testing the Top 20 from 1935

(On Treasure Island) to 1994 (Thats The Way Love Goes). Some researchers have

also observed the enhancement of recall by music. Rubin (1977) found that recall ofinformation is improved when cued with the melody of a well known song (Star

Spangled Banner). Wallace (1994) found that the melody of a song (using three ballads

from The Frank C. Brown Collection of North Carolina Folklore) could facilitate recall

of text by providing it with musical structure for learning and remembering. Serafine,

Crowder, and Repp (1984), Serafine, Davidson, Crowder, and Repp (1986), and

Crowder, Serafine and Repp (1990) suggested an integration effect where the melody or
http://www.gcbe.us/10th_GCBE/data/Elisabetta%20Corvi,%20Michelle%20Bonera.dochttp://www.gcbe.us/10th_GCBE/data/Elisabetta%20Corvi,%20Michelle%20Bonera.doc


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text of a song (using folksongs from Erdei) is better recalled with original text than with

different text. These results suggest that music in ads has the potential to stimulate

emotion, attention and recall but not all studies support this theory. Galizio and Hendrick

(1972) did not observe that memory for verbal information was enhanced by presenting

the information in the form of a song (the musical accompaniment of a guitar).

Shimp (1981) argued that attitude toward the ad (ATTA) is an important mediator when a

consumer makes a choice. Since then, musics potential to affect the consumers ad

attitude has received some attention with conflicting results. The presence of music was

shown to affect how a viewer feels when looking at print ads (Morris & Boone, 1998).

Musical fit resulted in a better attitude toward the ad (North et al., 2004; Shen & Chen,

2006). Brooker and Wheatley (1994), however, reported no effect of music placement on

attitude toward the ad. Likewise, Macklin (1988) reported no effect of music presence on

attitude toward the ad with children.

Recall of the brand is obviously a primary consideration in the evaluation of the

effectiveness of music in advertising. When the music fit, the message processing of the

ad was enhanced (MacInnis & Park, 1991; North et al., 2004). Different music treatments

(original and altered vocals, instrumentals, jingles, silence) did affect recall differently

under varied conditions (Allan, 2006a; Olsen, 1995: Roehm, 2001; Wallace, 1991, 1994;

Yalch, 1991). The presence or absence of music was shown to be both attention-getting

(Park & Young, 1988) and distracting (Wheatley & Brooker, 1994). The placement

(Brooker & Wheatley, 1994) or the presence of music (Macklin, 1988) was not observed

to affect recall. Musical fit, however, was shown to stimulate better recall of brands

(North et al., 2004; Shen et al., 2006).

http://www.calstatela.edu/faculty/sfischo/sound%20advertising.html.doc
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Target population for my research would be consumer of kataria auto mobile

Sample size is 300.

For this project, I have hypothetically assumed that the proper sample size would be around

(250-350), that is way I have taken the sample size of 300.

Time and space boundaries [when and where]

The time duration for the completion of the project was 6 weeks.

The location covered were Athwagate, Katargam, Varachha, Citylight, Udhna, etc in Surat city

DATA COLLECTION TOOLS

Primary data collection:

The main source of data for my research is questionnaire.

Secondary data collection:

The secondary data collected from the various sources are:

Internet

Websites

Catalogs and broachers of company

DATA ANAYSIS TOOLS

Software used for analysis:

SPSS

Microsoft excel


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LIMITATIONS OF THE STUDY

According to me following limitations can be prevailing in my report:

Respondents might have felt hesitation in providing information related to their income;

so, there can be some data that might questionable because of unwillingness of

respondents to give right information.

Sample selected may not represent whole population, as sample size selected is very

small in proportion to population due to time and cost constraints.

Even many of the respondents may give bias answer.

The response given by respondents was not always accurate because the respondents

gave the response according to their understanding.

Survey is time consuming process but the time to collect the data for research was very

less.

Sometimes the respondents are not willing to fill the questionnaire and hence the

resultant may not be correct.

Marketing researchers studies the behaviour that is rational. Very often, they do notexpress their feeling correctly what they think. In such cases their habitual, practice,

preferences cannot be assessed correctly.


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Gender

Particular Response Percentage

Male 283 94.33%

Female 17 5.67%


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Age


Below 20 4 1.33%

20-30 221 73.67%

31-40 64 21.33%

Above 40 11 3.67%

0

20

40

60

80

100

Male Female

Gender


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Monthly Income


< 20000 17 5.67%

20000-40000 194 64.66%

40000 > 89 29.67%

1.33

73.67

21.33

3.67

Below 20 20-30 31-40 Above 40

Age


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Do you see advertisement of kataria automobile ?


010

20

30

40

50

60

70

< 20000 20000-40000 40000 >

Monthly Income


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Yes 300 100%

No 0 0%

Interpretation:

From the above diagram we can say that 100% of respondents are seeing the advertisement of

kataria automobilecar. Advertising is to create understanding, liking, and selection of product or

services. Every company provides similar kind of car but lack of effective advertisement

decrease the selling of firm. kataria automobile gives advertisement in television, newspaper,

print media, internet, radio etc for increasing the awareness and likeness so increasing the selling

of the firm.

0

20

40

60

80

100

120

Yes No

See the advertisement of kataria automobile


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How frequently you see advertisement?


Once a day 66 22%

Twice a day 21 7%

More than twice 17 5.67%

Not regular 196 65.33%

Interpretation:

From the above diagram we can say that 65.33 % respondents are not seeing the regular

advertisement and 22 % respondents are seeing the advertisement once a day but 5.67 %respondents are seeing the advertisement more than twice in a day and 7 % respondents are

seeing the advertisement twice a day. It means 196 customers are not seeing the regular

advertisement out of 300. So company need to know the reason behind this and convert from not

regular to once a day.

Once a day22%

Twice aday7%

More thantwice

6%

Not regular65%

Frequency


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In advertisement of kataria automobile, which factors attract you most?


Music 65 21.67%

Celebrity 7 2.33%

Price 24 8%

Discount 13 4.33%

Information 149 49.67%

Slogan 42 14%

Interpretation:

From the above diagram we can say that 49.67 % respondents are attracting because of

information while 2.33 % respondents are attract because of celebrity. Nowadays consumer is

not easily swayed by a celebrity in an advertisement but he/she needs full fledge information

about the product also.Advertisements being endorsed by celebrities are less attractive and that

the use of celebrities may not change the buying behavior of consumers significantly. And 21.67

% respondents are attracting because of music, 14 % respondents are attracting because of slogan

21.67

2.33

84.33

49.67

14

Factors


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used in the advertisement, 8 % respondents are attracting because of price and 4.33 %

respondents are attracting because of discount.

Does repetition of the advertisement affects your opinion about the buying

car?


Yes 7 2.33%

No 293 97.67%

Interpretation:

From the above diagram we can say that 97.67 % respondents are said repetition of the

advertisement does not affect his/her opinion about the buying car because he/she has full

2.33

97.67

Yes No

Repetition of the advertisement affects your

opinion about the buying car


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information about the car they want to purchase. While 2.33 % respondents are said repetition of

the advertisement affects his/her opinion about the buying car.

Which media you like most for the advertisement of kataria automobile?


Television 95 31.67%

Newspaper 91 30.33%

Magazine 12 4%

Radio 14 4.66%

Hoardings 29 9.67%

Print media 23 7.67%

Internet 36 12%

Television32%

Newspaper30%

Magazine4%

Radio4%

Hoardings10%

Print media8%

Internet12%

Media you like most for the advertisement


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Interpretation:

From the above diagram we can say that 31.67 % respondents are like television for the

advertisement because most of people get their news and information primarily from television.And 30.33 % respondents are like newspaper for the advertisement of kataria automobile 12 %

respondents are like internet because use of internet is increase day by day while remaining

respondents like hoardings, print media, radio and magazine. So we can say that the television

medium is the most attractive and important place to advertise.

From where do you get information about the new car?


Television 124 41.34%

Newspaper 67 22.33%

Magazine 7 2.33%

Internet 36 12%

Peers(friends/family) 33 11%

Hoardings 19 6.33%

Radio 14 4.67%


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Yes 287 95.67%

No 13 4.33%

Interpretation:

From the above diagram we can say that 95.67 % respondents are said advertisement of maruti

suzuki car is necessary for his /her, purchase because it is to create understanding, liking, and

selection of product or services and also provide the full information regarding the

product/services. While 4.33 % respondents are said advertisement of maruti suzuki car is not

necessary for his/her, purchase.

0

20

4060

80

100

Yes No

Advertisement is necessary for you to

purchase


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What comes in your mind when you see the advertisement of kataria

automobile?


Colour 37 12.33%

Slogan 107 35.67%

Information 33 11%

Theme 89 29.67%

Music 34 11.33%

Interpretation:

From the above diagram we can say that 35.67 % respondents are said slogan comes in their

mind when they see advertisement of kataria automobile while 29.67 % respondents are saidtheme comes in their mind when they see advertisement of Chevrolet and 11.33 % respondents

are said music comes in their mind when they see advertisement because company gives

advertisement in television for increasing the liking and awareness about the new product so they

are doing focus on slogan, theme and music. And 12.33 % respondents are said colour comes in

their mind when they see advertisement because company use red, white and silver colour for the

most of advertisement and 11.33 % respondents are said information comes in their mind when

Colour12%

Slogan36%

Information11%

Theme30%

Music11%

What comes in your mind


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they see advertisement of kataria automobile because company provide little information in the

advertisement.

Findings

After going through the entire project and the collected data, I found that:

100% of respondents are seeing the advertisement of maruti suzuki car. Because

advertising is create understanding, liking, and selection of product or services.

Most of respondents are not seeing the regular advertisement and 22 % respondents are

seeing the advertisement once a day.

49.67 % respondents are attracting because of information. And 21.67 % respondents are

attracting because of music.

Most of respondents are said repetition of the advertisement does not affect his/her

opinion about the buying car because he/she has full information about the car they want

to purchase.

31.67 % respondents are like television for the advertisement and 30.33 % respondents

are like newspaper for the advertisement of kataria automobile

41.34 % respondents get information about the new car from the television and other

reason is visual advertisement and also a music & jingle because it attract more than

other media.

22.33 % respondents get information about the new car from the newspaper because

people need full information about the new car so they prefer newspaper for it. And

2.33% respondents get information from the magazine because it is not easily available at

everywhere.

43 % respondents are usually seen advertisement from newspaper because people need

full information about any product or services and company provides full information

about the product/services in the newspaper.


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39.34 % respondents are usually seen advertisement from television because it is

primarily sources of information and news for the most of people and also company

increase their awareness and likeness through it.

Most of respondents are said advertisement of maruti suzuki car is necessary for his /her

purchase.

35.67 % respondents are said slogan comes in their mind when they see advertisement of

kataria automobile

Suggestions

Advertisement should be made with keeping the determinants of effectiveness in mind.

Advertisement should be according to the product and its suitability with different age

groups.

Investment in advertisement should be made with great care of media of advertisement

and type of advertisement.

Advertisers should develop new and more effective ways of advertisement.

Media should be selected according to the choice of customer.

To give more attention in making the advertisement to make it effective for the sale of

car.

To give attention on the weak media of advertisement so that the consumers comes to

know about the product.

It should be attractive one so that people are attracted toward the advertisement.

CONCLUSION

From my study of customers of Surat city, I can interpret that most of respondents

are attracting because of information while some respondents are attract because of

celebrity in this study. Nowadays consumer is not easily swayed by a celebrity in an

advertisement but he/she needs full fledge information about the product also.


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Advertisements being endorsed by celebrities are less attractive and that the use of

celebrities may not change the buying behavior of consumers significantly. And

repetition of the advertisement does not affect his/her opinion about the buying car

because he/she has full information about the car they want to purchase. And respondents

are like television for the advertisement because most of people get their news and

information primarily from television. So we can say that the television medium is the

most attractive and important place to advertise. People get information about the new car

from the newspaper because they need full information about the new car so they prefer

newspaper for it.

Bibliography

Books:

Marketing Research -Beri G.C. -TaTa Mc Graw-Hill.

Marketing Management(13th

edition)Kotler Philip - PEARSON.

Business Research (9th

edition) - S.Schindler, Donald R. Cooper & Pamela - TaTa McGraw-Hill.

Internet links and websites:

en.wikipedia.org15.6.13

www.chevrolet.co.in

http://hal-hec.archives-ouvertes.fr/hal-00786782 - 17.7.13

http://deepblue.lib.umich.edu/bitstream/handle/2027.42/1025/84827.0001.001.pdf;jsessionid=A1

E4625169E682347340FECEE25E66D3?sequence=211.7.13

Magazines and newspaper:

Advertisement express

Company:
http://www.chevrolet.co.in/http://hal-hec.archives-ouvertes.fr/hal-00786782http://deepblue.lib.umich.edu/bitstream/handle/2027.42/1025/84827.0001.001.pdf;jsessionid=A1E4625169E682347340FECEE25E66D3?sequence=2http://deepblue.lib.umich.edu/bitstream/handle/2027.42/1025/84827.0001.001.pdf;jsessionid=A1E4625169E682347340FECEE25E66D3?sequence=2http://deepblue.lib.umich.edu/bitstream/handle/2027.42/1025/84827.0001.001.pdf;jsessionid=A1E4625169E682347340FECEE25E66D3?sequence=2http://deepblue.lib.umich.edu/bitstream/handle/2027.42/1025/84827.0001.001.pdf;jsessionid=A1E4625169E682347340FECEE25E66D3?sequence=2http://hal-hec.archives-ouvertes.fr/hal-00786782http://www.chevrolet.co.in/


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3. In advertisement ofevrolet Ch, which factors attract you most?

Music Celebrity

Price Discount

Information Slogan

4. Does repetition of the advertisement affects your opinion about the buying car?

Yes No

5. Which media you like most for the advertisement of Chevrolet?

Television Newspaper

Magazine Radio

Hoardings Print media

Internet

6. From where do you get information about the new car?

Television Newspapers

Magazines Internet

Peers (friends/family) Hoardings

Radio Other_____________

7. From which media, usually you seen an advertisement for Chevrolet?

Television Newspapers

Magazines Internet

Peers (friends/family) Hoardings

Radio Other_____________

8. Is the advertisement of Chevrolet car necessary for you to purchase?

Yes No

9. What comes in your mind when you see the advertisement of Chevrolet?


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Colour Celebrity

Slogan Information

Theme Music

10.

Please give your suggestion

................................................................................................................................................

....................................................................................................................................

Personal Information

Name: __________________________________________________________________

Gender: Male Female

Age: Below 20 20-30 31-40 Above 40

Contact no.: _____________________

Monthly income: < 20,000 20,00040,000 40,000 >

Sandip Mkt

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