Almost every one grows up in the world which is flooded with the mass media e.g. television, advertising, films, videos, billboards, magazines, movies, music, newspaper, and internet. Of all marketing weapons, advertising is renowned for its long lasting impact on viewer’s mind, as its exposure is much broader. Advertising is a subset of promotion mix which is one of the 4P’s in the marketing mix i.e. product, price, place and promotion. As a promotional strategy, advertising serves as a major tool in creating product awareness in the mind of a potential consumer to take eventual purchase decision. Advertising, sales promotion and public relations are mass-communication tools available to marketers. Advertising through all mediums influence audiences, but television is one of the strongest medium of advertising and due to its mass reach; it can influence not only the individual’s attitude, behavior, life style, exposure and in the long run, even the culture of the country. The evolution of advertisement dates back into the ancient times. Societies used symbols, and pictorial signs to attract their product users. Over centuries, these elements were used for promotion of products. In the early ages, these were handmade and were produced at limited scale for promotions. Later on, this phenomenon gained strength more intensively for promotional purposes. Today’s modern environment, advertisements have become one of the major sources of communicational tool between the manufacturer and the user of the products. A company cannot make dream to be a well-known brand until they invests in their promotional activities, for which consumer market have been dominating through advertisements. As the primary mission of advertiser is to reach prospective customers and influence their awareness, attitudes and buying behavior. They spend a lot of money to keep individual’s interest in their products. They need to understand what makes potential customers behave the way they would like. It also appears that advertising may have the potential to contribute to brand choice among consumers. The major aim of advertising is to impact on buying behavior; however, this impact about brand is changed or strengthened frequently in people’s memories. Memories about the brand consist of those associations that are related to brand name in consumer mind. These brand cognition influence consideration, evaluation, and finally purchases. The principal aim of consumer behavior analysis is to explain why consumers act in particular ways under certain circumstances. It tries to determine the factors that influence consumer behavior, especially the economic, social and psychological aspects. When young people choose advertising information and characters as their role models, they may not only identify with them but also intend to copy them in terms of how they dress and what they are going to buy. Traditional hierarchy-of-effects models of advertising state that advertising exposure leads to cognitions, such as memory about the advertisement, the brand; which in turn leads to attitudes, i.e. Product liking and attitude toward purchase; which in the end leads to behaviors, like buying the advertised product. As the market is surplus with several products or services, so many companies make similar functional claim; so, it has become extremely difficult for companies to differentiate their products or services based on functional attributes alone.
Differentiations based on functional attributes, which are shown in advertisement, are never long lasting as the competitors could copy the same. Therefore, the marketers give the concept of brand image. Like by creating the character of the caring mother, the marketer injects emotion into the consumer’s learning and process of advertisements. Doing so advertiser creates those types of advertisements, which carry emotional bond with consumer. Therefore, that consumer is more likely to associate with advertisements of those brands, which have emotional values and messages. Because, positive emotional appeals also provide a strong brand cue and stimulate category-based processing. If the categorization process is successful, then the affect and beliefs associated with this category in memory are transferred to the object itself. Consumers are not only at first confused and disordered in mind, but they also try to categorize the brand association with their existing memory, when thousands of products are faced by them, and they might reposition memories to outline a brand image and perception / concept toward new products. They can categorize latest information into particular brand or product group label and store them accordingly. This procedure is not only associated to consumer’s familiarity and information, but also attachment and preference of brand. It is also suggested that consumer can disregard or prevail over the dissonance from brand extension. In today’s dynamic world, it is almost impossible for advertisers to deliver advertising message and information to buyers without use of advertising. Certainly, this may be because of the globalization and accessibility of hundreds of channels for the viewers of this modern era. Now a day, due to globalized economy, this made available a bulk of marketing stimuli to the modern consumers. More often consumerism describes the way of equating personal happiness, with purchasing material possessions and consumption in excess of one’s need.
In the latest decades, one of the essential problems of Companies is the knowledge of how the consumer will respond to various things that will be used for achieving their ultimate goal. The study of consumer behavior became a concern for marketers, as they may learn how consumers choose their goods and services required to meet multiple needs, which are the factors that are influencing their choice. For this purpose Companies now attracts towards online advertising because online advertising has grown rapidly in the last decade.
By 2000 online advertising spending in the United States reached $8.2 billion dollars (Hollis 2005). These numbers have increased to $12.7 billion as more people are connected and spend more time online. Additional devices (such as mobile phones and televisions) are able to provide further internet connectivity. The rapid technology development and the rise of new media and communication channels tremendously changed the advertisement business landscape. However, the growing dependency on internet as the ultimate source information and communication, make it a leading advertisement platform.
The beginning of online advertising was in 1994 when Hot Wire sold first Banner on the company’s own site, and later online advertising evolved to become a key factor in which companies achieve fair returns for their products and services. Online retail is attracting an increasing numbers of consumers as well as companies. Every year more businesses set up their own web sites to reach internet users. By the year 2005, revenues from just managing web sites are predicted to reach $35 billion in the US (Cimillica and Bliss, 2000). At present, Amazon.Com and CD Now are among most successful online companies as reflected by their stock market capitalizations (Zwass, 1999). On the consumer side, Travel Industry Association of America (TIA) reports that in 1998, 25% of Americans used the internet to plan their travel or a vacation versus 10% in 1996 (Kate, 1998). Overall, future internet sales forecasts are very encouraging. The Forrester Research study predicts that in the US e-commerce will grow from between $7 to $15 billion in 1998 to approximately between $40 to $80 billion by 2002 (US Department of Commerce, 1999). The National Retail Federation (1999) forecasts that internet purchases will grow by almost 400% in the next few years to 41 billion by 2002 from $11 billion in 1999 (National Retail Federation, 1999).
Online advertising refers to the type of marketing strategy that involves the use of internet for promotion of products by delivering the marketing messages to the larger consumers. It includes delivering ads to internet users via websites, e-mail, ad supported software’s text messaging and internet enabled cell phones. Philip Kotler in Marketing management Millennium Edition mention that the internet population is younger, more affluent, and better educated and they easily find their way onto the internet, the cyberspace population is becoming more mainstream and diverse. In on-line marketing, it is the consumer, not the marketer, who gives permission and controls the interaction. Internet consumers have around-the-clock access to varied information sources, making them better informed and more discerning shoppers.
1.2: Research Objectives.
1. To analyze consumer response to online advertisement and their perception of companies which advertise online
2. Determine the relationship between internet advertisement and purchase decision.
3. Business can develop more effectively through online advertisement complain.
4. Internet advertising have that fits need.
5. Determine the effectiveness of internet advertising on reach and certain of awareness.