CHAPTER I

1.1 INTRODUCTION

Advertising has become increasingly important to business enterprises both large and small to
achieve society oriented objectives. Advertising performs an informative and educative task
that makes it extremely indispensable in the functioning of the modern Indian society. The
host of new products marketed, the expenses and the risks involved in launching them have
placed a heavy responsibility on the advertising industry. Advertising helps to increase mass
marketing by aiding the consumer to choose from amongst the variety of products offered for
his selection.

Advertising is the business of the people for the people and by the people. It is
multidimensional. It is a form of mass communication, a powerful marketing tool, a
component of the economic system, a means of financing the mass media, the social institution
in art form, an instrument of business management, a field of employment and a profession.

According to standton W.J. “Advertising consists of all the activities involved in presenting to
a group a non-personal, oral or visual, openly sponsored message, regarding a product, service
or idea; this message, called an advertisement is disseminated through one or more media and
is paid for by the identified sponsor.” New Encyclopedia Britannica has defined Advertising
as “Advertising is a form of communication intended to promote the sale of the product or
service to influence public opinion, to gain political support or to advance a particular cause.”

Advertising is a paid form of non-personal presentation of ideas, goods and services. It is paid
for by the sponsor who wants to communicate about his products or services to his customers.
Thus advertising is a means of reaching the public and also a means of disseminating product
information. Advertisement has become a part of our social, cultural and business
environment. It mirrors the environment as well as brings about subtle changes in the economy
and behaviour of the public who use it.

ADVERTISING MEDIA

The term media embraces each and every method that the advertiser has at his command to
carry his message to the public. Media has a vital role in the process of advertising
communication. Effective advertising is possible only if suitable media are available.

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According to Brennen, advertising media may be defined as “The physical means whereby a
manufacturer of goods or utilities or a service provider tells the consumer about his product or
services”.

An advertising medium is actually a message carrier. The advertised message travels from the
producer to the consumer through carriers which provide a vital link between the advertisers
and the target audience. This link is the medium. Each medium is made up of number of sub-
carriers called vehicles. So many vehicles that carry messages make a medium. Over the years,
new media and media vehicles are discovered as the old system paves the way for new ones.

Advertisements in the olden days were more passive and extremely limited in scope. The
earliest media used for advertising were through sign boards and writing on the walls of
prominent buildings. The evaluation of printing machinery revolutionized the art of
advertising. The latest technique used for advertising is the electronic media which includes
advertising through radios, televisions and internet.

Media are the means by which the advertisers reach their prospective and existing customers
with advertising message. The different media of advertising serve the public by
communicating the message of advertiser to masses. The advertisers select the media which is
most suitable to them in various economic and social considerations. In the broadcast media,
radio and television play a unique role.

Newspapers

Almost half of a newspaper is made up of ads. Local papers have ads of local companies,
but nationwide newspapers also advertise products that are sold all over the country. Most
papers are published daily so new ads , like products on saleor movie openings can
be placed every day. Newspapers sell advertising space in all sections of their paper. In
most casesads of products will be put in the section they are related to.

Magazines

Magazines mostly appear all over the country and are used by national advertisers. In contrast
tonewspapers they are read when people have more time. They are kept for a few weeks or
even months. Better printing quality and colour ads are among the advantages of magazines.

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Many special magazines are made for groups of people. The ads that appear there
are especially for these groups. A computer magazine, for instance , may have
many ads related to computers, printers or scanners.

Direct Mail

Direct mail consists of leaflets, brochures , catalogs or letters, that are mailed directly to
people. Mail-order companies profit from this kind of advertising. Some mailing lists send
information to all the people others only have special lists according to the jobs that people
have or their age or income. Direct mail costs a lot of money, but advertising companies can
be sure that they will reach the people.

Radio

Local advertisers place about 70 per cent of advertising on the radio. An advantage of radio
is that people listen to programs while doing other things. In some cases radios are on the whole
day. Commercials last about 30 seconds. Radio stations are more specialized in what
theybroadcast. One radio station offers pop music and has a younger listening audience; the
other may broadcast classical music with older listeners. The ads can be chosen according to
the group of people who listen.

Outdoor signs

Large colourful outdoor signs can easily catch the attention of by-passers. But these ads must
be short and simple because viewers see them only for a few seconds. The main signs are
posters, billboards and electronic displays. Billboards are owned by local companies
that rent them to advertisers.

Television

Television combines sound and moving images. It is one of the most expensive forms of
advertising, but on the other hand it reaches a very wide audience. Advertisers buy time from
TV stations to broadcast their commercials. This time is cheaper at times when fewer people
watch TV, as in the early morning hours and gets very expensive during prime time evening
shows. Sometimes advertisers pay a lot of money to get their ads on TV during special
programmes, like the Olympic Games or the Super Bowl.

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Internet

Internet advertising is becoming more and more important. Especially young people spend less
time watching TV and more time on the Internet. The Internet has the advantage of
being available to people around the world at all times.

Importance of Advertising

Advertising plays a very important role in today’s age of competition. Advertising is one thing
which has become a necessity for everybody in today’s day to day life, be it the producer, the
traders, or the customer. Advertising is an important part. Lets have a look on how and where
is advertising important:

Advertising is important for the customers

Just imagine television or a newspaper or a radio channel without an advertisement! No, no

one can any day imagine this. Advertising plays a very important role in customers life.
Customers are the people who buy the product only after they are made aware of the products
available in the market. If the product is not advertised, no customer will come to know what
products are available and will not buy the product even if the product was for their benefit.

Definition of Advertising Effectiveness

Advertising effectiveness pertains to how well a company's advertising accomplishes the

intended. Small companies use many different statistics or metrics to measure their advertising
effectiveness.

These measurements can be used for all types of advertising, including television, radio, direct
mail, Internet and even billboard advertising. A company's advertising effectiveness usually
increases over time with many messages or exposures. But certain advertising objectives can
be realized almost immediately

Objectives of Advertising

Four main Objectives of advertising are:

i. Trial

ii. Continuity

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iii. Brand switch

iv. Switching back

Let’s take a look on these various types of objectives.

1.Trial: the companies which are in their introduction stage generally work for this objective.
The trial objective is the one which involves convincing the customers to buy the new product
introduced in the market. Here, the advertisers use flashy and attractive ads to make customers
take a look on the products and purchase for trials.

2.Continuity: this objective is concerned about keeping the existing customers to stick on to
the product. The advertisers here generally keep on bringing something new in the product and
the advertisement so that the existing customers keep buying their products.

3.Brand switch: this objective is basically for those companies who want to attract the
customers of the competitors. Here, the advertisers try to convince the customers to switch
from the existing brand they are using to their product.

4.Switching back: this objective is for the companies who want their previous customers back,
who have switched to their competitors. The advertisers use different ways to attract the
customers back like discount sale, new advertise, some reworking done on packaging, etc.
Basically, advertising is a very artistic way of communicating with the customers. The main
characteristics one should have to get on their objectives are great communication skills and
very good convincing power.

Importance of advertising effectiveness

Reach

One metric for advertising effectiveness is reach. This measurement pertains to the number of
people who actually saw a company's advertising. Small business owners usually know how
many people can potentially see their ads. Local television stations report the number of
viewers for certain shows. Similarly, magazines report circulation figures. But not all of these
viewers or readers notice the ads. That is why small business owners often use market research
surveys to measure reach. For example, 10 percent of a local restaurant's viewing audience may
recall seeing their latest television ad. Advertising should be designed to attract attention, build
interest and prompt action, according to the experts at "Mind Tools" online.

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Sales and Profits

One of the most important objectives of advertising is to increase sales and profits. A profitable
ad is an effective one. The best way to build sales and profits is by reaching the right target
audience. In other words, small business owners must make sure their advertising reaches the
people who are most likely to purchase their products. Companies often develop customer
profiles from warranty cards or marketing research to gather this information.

Target audience variables or demographics can include age, gender, income and education. For
example, a high-end women's clothing retailer may effectively drive sales and profits by
targeting women with higher incomes.

Brand Awareness

Brand awareness is another metric of advertising effectiveness. Brand awareness is the

percentage of people who recognize a company's brand of products. It usually takes many years
and lots of ad exposures to build high brand awareness.

1.2 INDUSTRY PROFILE

Automotive industry

The Automotive industry is the key driver of any growing economy. A sound transportation
system plays a pivotal role in a country’s rapid economic and industrial development. The well-
developed Indian automotive industry ably fulfils this catalytic role by producing a wide variety
of vehicles. The automobile industry comprises automobile and auto component sectors. It
includes passenger cars; light, medium and heavy commercial vehicles; multi-utility vehicles
such as jeeps, scooters, motorcycles, three-wheelers and tractors; and auto components like
engine parts, drive and transmission parts, suspension and braking parts, and electrical, body
and chassis parts.

GDP growth

India’s automotive industry GDP growth is now worth $34 billion and expected to grow
$145billion in another ten years. The Indian automotive industry is growing at a very high rate
with sales of more than one million passenger vehicles per annum.

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The overall growth rate is 10-15 per cent annually. India is the world’s second largest
manufacturer of two-wheelers, fifth largest manufacturers of commercial vehicles as well as
largest manufacturer of tractors. It is the fourth largest passenger car market in Asia and home
to the largest motorcycle manufacturer.

Major players in this sector include Tata, Mahindra, Daewoo Motor India, Hyundai Motors
India and General Motors India, Maruti, Ashok Leyland, Bajaj, Hero Honda, Ford, Fiat and
few other players.The Indian auto components industry is worth $10 billion. Indigenous firms
like Bharat Forge, Sundaram Fasteners, Minda Industries and Gabrial India Ltd. are in the
limelight. There is a boom in the auto components segment because of strong demand and
robust economy. Indian companies are very optimistic.

The Auto Components Manufacturers Association (ACMA) along with McKinsey has pegged
domestic demand for components at $20-25 billion in 2015 from $1.4 billion in 2004-05. This
would take the overall industry size to $40-45 billion by 2015 in India.

Market trend

Demand for auto parts is driven by new bike sales, which are strongly affected by interest rates,
and by the replacement market. Company profitability depends partly on the difficulty of
manufacturing products and partly on demand volume, since many costs are fixed. Small
companies can compete successfully by focusing on a small number of products or some highly
technical ones.

➢ Fuel economy and demand for greater fuel efficiency is a major factor that affects
consumer purchase decision that will bring leading companies across two-wheeler and
four-wheeler segment to focus on delivering performance-oriented products.

➢ Increased affordability, heightened demand in the small bike segment and the surging
income of the Indian population

➢ India is the third largest investor base in the world

➢ The Government technology modernization fund is concentrating on establishing India

as an auto-manufacturing hub.

➢ Availability of inexpensive skilled workers

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 ➢ Industry is perusing to elevate sales by knocking on doors of women, youth, rural and
luxury segments

➢ Market segmentation and product innovation

Market size

There are a wide range of jobs available in the automobile industry in 2016. With the number
of vehicles available on the road today, the need and requirement for people who can fix these
machines is fast increasing.

Careers like automobile technician, bike or bike mechanics are a great option. Becoming a
diesel mechanic is also a significant alternative. Diesel mechanics are responsible for repairing
and servicing diesel engines. As they are also required to repair engines of trucks and buses,
other than bikes, they are provided with hefty wages.

If communication with people instead of repairing bikes is what interests you, then you have
the opportunity of becoming a salesperson or sales manager in an automobile company. Career
opportunities in automobile design, paint specialists, job on the assembly line and insurance of
vehicles is also available.

Market share

As the auto-shows starts in February 2016, the industry promised a blend of technology and
automotives. With the recession trend breaking its leashes form the past two years, 2016 is
expected to get back on track with the sales of automobiles in the country.

➢ Almost Self-governing bikes are predicted to be on the streets by 2020

➢ More than half the bikes on the streets are going to be powered by diesel by 2020

The Indian automobile industry has a prominent future in India. Apart from meeting the
advancing domestic demands, it is penetrating the international market too. Favored with
various benefits such as globally competitive auto-ancillary industry; production of steel at
lowest cost; inexpensive and high skill manpower; entrenched testing and R & D centers etc.,
the industry provide immense investment and employment opportunities. Two-wheeler spare
parts are as follows.

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Major key players

The amount of cumulative foreign direct investment (FDI) inflow into the automobile industry
during April 2000 to November 2012 was worth US$ 7,518 million, amounting to 4 per cent
of the total FDI inflows (in terms of US$), as per data published by Department of Industrial
Policy and Promotion (DIPP), Ministry of Commerce. India’s scooter and motorcycle
manufacturers have registered 4 per cent growth during April-November 2012, according to
the recent data released by the Society of Indian Automobile Manufacturers (SIAM).
Moreover, the passenger vehicles segment grew at 9.71 per cent during April-June 2012, while
overall commercial vehicle segment registered an expansion of 6.06 per cent year-on-year (y-
o-y).

The Indian small and light commercial vehicle segment is expected to more than double by
2015-16 and to grow at 18.5 per cent compound annual growth rate (CAGR) for the next five
years, according to a report titled, 'Strategic Assessment of Small and Light Commercial
Vehicles Market in India' by Frost & Sullivan

➢ Largest three wheeler market in the world

➢ 2nd largest two wheeler market in the world

➢ 7th largest passenger car market in Asia & 10th Largest in the world

➢ 4th largest tractor market in the world

➢ 5th largest commercial vehicle market in the world

The automotive aftermarket for parts in India is a large and growing market that spans
manufacturers, distributors, retailers, service providers and garages. Currently worth INR
19,000 crore to INK 24,000 crore, the market has been growing at 11 per cent, and is estimated
to reach INR 39,000 crore to INR 44,000 crore by 2015. This growth will primarily be fuelled
by the increasing number of vehicles on the road, as well as the aggressive expansion of
independent and foreign players. While current margins for the industry remain attractive,
players across the value chain may see margins reducing to the lower levels observed in
developed economies. Therefore, to sustain profitability, it is imperative that players evaluate
additional ways of capturing value, including expanding service networks, developing branded
generic parts, forward integrating and building scale. Looking ahead, revenue pools remain

9
large across the value chain; hence, if players are able to pursue appropriate strategies,
significant profits can be made in this sector.

The Indian market is valued at INR 19,000 crore to INR 24,000 crore, of which roughly 30 per
cent comprises spurious parts. CV, which include multi-axle vehicles, LCVs, buses and trailers
account for roughly 22 per cent of this market (INR 4,500-5,500 crore), with Maharashtra,
Tamil Nadu, Gujarat and Kerala accounting for over 40 per cent. The car market is estimated
at INR 6,000-7,000 crore (34 per cent of the market) with Maharashtra, Andhra Pradesh, Delhi
and Tamil Nadu cumulatively accounting for about 40 per cent of the share.

The two - wheeler market is the largest at INR 10,000 crore to INR 11,000 crore, or 44 percent
of the market, and Tamil Nadu, Maharashtra, Gujarat and Uttar Pradesh constitute close to 45
per cent of the market.

1.3 COMPANY PROFILE

Lakshmi Machine Works Limited is India's largest textile machinery and CNC Machine Tool
manufacturers, based in Coimbatore founded by Dr. G.K. Devarajulu. In mid 1980's the
company bought over its Coimbatore based long time rival and an older Textile & Engineering
giant Textool. The company is promoted and owned by the Lakshmi Mills family.

LMW has 60% market share in the domestic Textile Spinning Machinery Industry. LMW
diversified into CNC Machine Tools and is a brand leader in manufacturing customized
products. LMW's Global presence has grown over the years, with a market presence not
only in developing countries, but also in Europe.

Its Textile Machinery Division was awarded the Confederation of Indian Industry Most
Innovative Company of the Year for 2020. It started its operation in 1962
in Periyanaickenpalayam in Coimbatore city with technical collaboration with Swiss-based
textile machinery manufacturer Rieter for textile machines and German based Steel &
Ammunition major Krupp.

Lakshmi Machine Works Limited (LMW), a leading Textile Machinery Manufacturer in India
and one among the three in the world to produce the entire range of Spinning Machinery. In
1962, LMW was founded to provide Indian textile mills with the latest Spinning Technology.
It caters to the domestic market as well as exports products to the Asian and Oceanic regions.

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Vision

“To enhance customer satisfaction and our image globally and achieve exponential growth to
leadership through world class products and service.”

Mission

“To deliver greater value to our customers by providing complete competitive solutions
through technological leadership and manufacturing excellence that are responsive to dynamic
market needs.”

Values

➢ Excellence

➢ Integrity

➢ Learning and sharing

➢ Contribution to industry and society

Division

➢ Machine tool division

➢ Textile machinery division
➢ Foundry division
➢ Advanced technology centre
Machine tool division

The company is a recognized name in the CNC machine space offering the entire range of CNC
lathes and machining centres to leading corporate in India.

Textile machinery division

Established as a provider of spinning technology to Indian textile mills, the company is a

leading textile machinery manufacturer in India and one among the few in the world to offer
complete spinning solution to the customers.

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Foundry division

This division caters to original equipment manufacturers (OEM) in the global & domestic
market with niche products.

Advanced technology centre

The company leverages its engineering expertise to develop components for the highly
complex aerospace sector.

History

1962 - The company was incorporated on 14th September, at Chennai. It manufactures textile
machinery.

1963 - Shares subscribed for in cash by promoters, Directors, their friends and associates.

1968 - 30,133 shares allotted to technical collaborators (384 in 1965, 16,265 in 1966, 5,000 in
1967 and 5,021 in 1968). 1971 - Further 10,000 shares issued to the technical collaborators
during 1971-72. 1979 - 60 forfeited shares reissued at market price.

1971 - Further 10,000 shares issued to the technical collaborators during 1971-72.

1981 - 1,52,394 bonus shares issued in prop. 3:5.

1984 - A letter of intent was received for the manufacture of 200 metal cutting and printing
machines at Unit II at Kariyur village.

1989 - The Company was concentrating on the replacement market as most of the machinery
supplied by the company in the earlier years were due for replacement. - The machine tool
division introduced into the market CNC machines viz. MV-Junior and SL-3 models. The
manufacture of other models was also being taken up. - The Company entered into a
collaboration agreement for advance technology in the manufacture of open end rotors spinning
machines with M/s. Schubert & Salzer, Ingolstadf, West Germany. This project was under
implementation. - 2,03,192 bonus shares issued in prop. 1:2.

1990 - Government's approval was received for the Company's investment in the equity capital
of Pugoda Textiles Lanka Ltd., Sri Lanka.

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1993 - The Company established a modern foundry division at Arasur for manufacture of Grey
Iron Castings of grade 20, 25 and 30 using chemical bonded process for captive requirement
and also to meet the fast growing engineering sector in India and abroad.

1995 - The company had entered into a long-term partnership with Mikron of Switzerland for
manufacture of the universal milling and boring Mikron machines for their world market.

1998 - The new product range introduced by LMW comprises the high-speed CNC machines
in the Pilatus range, high-power CNC lathe in the Rigi range, vertical machining centres in the
Kodi range, Ooty 40, which is the all-new horizontal machining centre and a mould-making
machine, Kodi Mould 50.

2000 - The Company has launched two CNC machines -- Smarturn and Smash directly in the
market.

2003 -Board approves for the acquisition of wholly owned subsidiaries of the company - LMW
Investments Ltd and Deejay Leasing Company Ltd. -LTE Industries acquires 12000 shares
amounting to .984% of LMW Ltd. -Stocks appreciated by about 65%. -Charges Rs.8.3 crs for
the dimunition in the value of investments. Offers 1:200 swap ratio or cash option of Rs.10 for
each Textool share for its merger with the company. -Board of Industrial Finance and
Reconstruction approves for the merger of Textool Company with LMW Ltd.

2005 -K. Duraisami was appointed as Company Secretary & Compliance Officer of the
Company -Lakshmi Machine has recommended a Dividend of Rs 150 per Equity Share of
Rs.100/-each.

2009 -LMW introduces new LR9 series of ring frames that are built with 1,632 spindles.

2010 -Lakshmi Machine Works forays into China 2011 -The company has recommended a
Dividend of Rs. 30/- per Equity Shares of Rs. 10 each

2012 -Lakshmi Machine was awarded by EEPC INDIA Export for highest growth in exports.
The company has recommended dividend of Rs. 25/- per equity share & Rs. 10/- each and a
Golden Jubilee dividend of Rs. 25/- per share. In the aggregate Rs. 50/- per share is
recommended.

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2015 -LMW's participation at ITMA 2015, Milan, Italy -LMW's participation at Shanghaitex
2015, Shanghai, China -LMW was the first to launch WorldÂ’s fastest comber LK69
.Ergonomically designed Drawframe LDAZ equipped with Duo digital .

Its training centre specializes in technical training on Spinning machines for Machine
Operators, Fitters, Spinning Managers and for the middle management team. The training is
imparted by experienced faculty members using scientific methods and tools.

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 CHAPTER II

REVIEW OF LITERATURE

S. Shyam Prasad (2023), Vishwajeet Singh Rathore Volume 9, Issue 5.

S. Shyam Prasad(2023), In their research they found that, study was undertaken during April
- July 2023 in order to understand the brand positioning of cement brands and consumer
behaviour in buying cement in Rajasthan, India. The present literature has very few papers on
the topic of cement brands. From an initial set of 15 brands, a set of nine brands were chosen
for analysis after an exploratory survey. The brands selected for analysis were Ambuja,
UltraTech, Shree, JK, Binani, Nirmax, Wonder, Birla, and Coromandel cement brands.

Ducoffe (2023), Vishwajeet Singh Rathore ,An Exploratory Study of Positioning of

Cement Brands in Rajasthan. Indian Journal of Marketing. Volume 49, Issue 2.

Ducoffe (2023), In their research they found that, advertisement management is 'a subjective
evaluation of the relative worth or utility of advertising to consumers'. Ducoffe, in his study,
suggested media mix has an important role to play in advertising effectiveness. In his research,
the respondents were asked to rank different media in terms of their role in advertising.
Consumers ranked television the top labelling it the most valuable source, followed by print
media, direct mail and radio; web was placed at bottom.

Jagdish N. Sethi (2023),“Advertising value and advertising processing”, Journal of

Marketing Communications, Volume 9, Issue 2

Jagdish N. Sethi (2023), In their research they found that,"Measurement of Advertising

management Effectiveness: Some Theoretical Considerations" examines three different
aspects of effectiveness of advertising communication. The paper discusses the distortion of
advertising communication in consumer mind that explains further explains how advertising
communication generate a stimulus in consumer mind and how it influences the consumer
choice process. It also discusses the linkage between the four mechanisms of advertising
effectiveness. It varies stimulus as coded with respect to three dimensions in consumer mind
which includes magnitude of cognitive distortion, descriptive beliefs and evaluative beliefs of
product attributes in an advertising campaign. The paper states two distinct mechanisms of
measuring impact of advertising relating directly with consumer consumption patterns.

15
Moingeon et.al (2022), “Measurement of Advertising Effectiveness: Some Theoretical
Considerations”, Journal of Advertising, Volume 9, Issue 3

Moingeon et.al (2022), In their research they found that ,Sociological analysis focuses on the
community, considered as a system governed by rules and social norms, and on the social
behavior. The role of advertising management and consumption in the society change is a very
fertile topic. Sociology has examined how advertising influences opinions, attitudes and
behaviors of individuals and social groups. There are two opposite sociological perspectives to
the advertising management and function in contemporary society. The first maintains a
positive approach to advertising. It is believed that the role advertising is to better organize
economic and social relations, to harmonize social behaviors, to make people adhere to
common values and to help them to better live together without problems.

Arif, M. E. (2022). “The effectiveness of advertising: a literature review”, 10th Global

Conference on Business & Economics, Volume 4, Issue 2

Arif, M. E. (2022), In their research they ,said that a strong brand must have a strong position.
A strong positioning will make a brand more embedded in consumers' memories. When the
brand is increasingly embedded in consumers' memories, an image will be created in the minds
of consumers (Diallo et al., 2013). Brand image is created when a strong and unique brand is
connected in the minds of consumers because brand knowledge is seen from the perspective of
consumer memory (Dirsehan & Kurtulus, 2018). Brand image is represented by all perceptions
formed from past experiences (Arif, 2019). Therefore, perceptions formed from the past result
in a person having repurchase intentions (Suryana & Dasuki, 2013) because the brand must
make a person have a good and meaningful emotional experience (Santos & Silva, 2019).

Barthes, Durand (2019), Brand Image, and Price on Re-Purchase Intention of Airline
Customers. Journal of Applied Management, 17(2), 345–356.
https://doi.org/10.21776/ub.jam.2019.017.02.18, Volume 8, Issue 5

Barthes, Durand (2019), In their research they found that ,The semiotic analysis focuses in
the first instance, on symbols. These are identified as anything that conveys meaning, e.g.,
words, gestures, images, and dance. Semiotics studies the problem of encoding, and more
generally of the code used. The object of investigation is the message itself containing different
signs that can be interpreted according to a pre established intention, without reference to the
consumer and the influence on the consumer behavior. This approach is useful especially in

16
the context of advertising creation. Authors assess the effectiveness of advertising in reference
either to the language of the message or the graphic image of the message .

Mittelstaedt (2019), “Impact of Media Advertisements on Consumer Behaviour”, Journal

of Creative Communications, Volume 9, Issue 5

Mittelstaedt (2019), In their research they found that, Communication in general and
advertising management in particular, were treated by psychologists starting from the
motivations of recipients, which occupy a central position in the analysis. This is because of
their influence on the perception of the recipient They believe that the motivations drive
consumer behavior. So the purpose for the advertising creator, is to identify the reasons of
consumer behavior, in order to identify the most effective advertisement message or to remove
the communication barriers. With the psychological approach, other types of research and
investigation have emerged, thanks to the contribution of neuroscience. The evidence (obtained
through scientific experimentation) has become a necessary support to verify the assumptions.

Ray and Kapferer (2018),“The effectiveness of comparative advertising: a literature

review” 2nd International Scientific Conference Marketing theory challenges in
transitional societies at Zagabria, pg.1-13, Volume 3, Issue 2

Ray and Kapferer (2018), In their research they found that ,The socio-psychological approach
takes simultaneously into account the message and the recipient of the message. This approach
aims to study the effectiveness of advertising in terms of persuasiveness, observing the effects
on the formation process of attention, memory, attitude and behavior. This research
methodology considers the environment of the communication process and its actual
interactions. The experimentation is widely used. It also allows considering all hypotheses
tested together, and all the links that may exist between variables, through a pre-test, getting
an advantage in terms of validity of the research. Rather than focusing solely and exclusively
on direct effects of certain variables taken individually, that is difficult to control in reality, this
approach studies the actual contribution of these variables in explaining the evolution of the
dependent variable, sales.

Peter L. Wright (2018), “The Concept of Luxury Brands advertisements”, Journal of

Asian Finance Economics and Business, Volume 49, Issue 2

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Peter L. Wright (2018), In their research they found that, Analyzing Media Effects on
Advertising Responses analyze that the medium which advertising information is transmitted
is one of the most basic components of the communication environment. Computer models
developed to systematize media selection will continue to require inputs estimating how
particular media affect the attitudinal responses of audience members. Ideally, media, message,
and receiver variables could be integrated in such an analysis, based on empirical evidence of
the interrelationships.

Batra et al. (2017), “A Study On The Influences of Advertisement On Consumer Buying

Behavior”, Business Studies Journal, Volume 9, Issue 2

Batra et al. (2017), In their research they found that ,The sales effect refers to the assessment
of the management of advertising to affect the sales volume and/or the market share, regardless
of the possible influence of other variables. The effectiveness of advertising should be
considered for its effect on sales in the short term. This advertising performance measurement
is based on the marginal theory. 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.

Ray (2016), “The Impact Of Advertising On Sales Volume Of A Product”, A case study
of Starcomms Plc, Nigeria, Volume 4, Issue 2

Ray (2016), In their research they found that, The socio-psychological approach takes
simultaneously into account the message and the recipient of the message. This approach aims
to study the effectiveness of advertising in terms of persuasiveness, observing the effects on
the formation process of attention, memory, attitude and behavior. This research methodology
considers the environment of the communication process and its actual interactions. The
experimentation is widely used. It also allows considering all hypotheses tested together, and
all the links that may exist between variables, through a pre-test, getting an advantage in terms
of validity of the research. Rather than focusing solely and exclusively on direct effects of
certain variables taken individually

Tellis et.al (2015), “Web advertisement effectiveness evaluation: Attention and memory”,
Journal of Vacation Marketing, Volume 4, Issue 2

18
Tellis et.al (2015), In their research they found that ,conducted a research on the factors of
Television advertising that effects the sales and market share. The research is based on a model
that was divided into tow stages. The data used in the model was call history of toll-free
numbers and also the billing invoices from different vehicles that give information about which
ad went on air on what time and also how much was the cost of the advertisement. The model
has two stages as also mentioned above. The first stage measured effectiveness of different ads
in the market and the second stage measured the factors of the ad that creates difference in the
responses. Result shows that ad decay over time and also the time of the day in which ad has
been brought on air is important..

Hall , B.F.(2014) “The effects of joint brand advertising on tourists’ behavioral response”,
Asian Journal of Management, Volume 5, Issue 2

Hall , B.F.(20214), In this research focused on the advertising management. This paper is based
on a study that it explained through various references and also he explained it through general
knowledge .Observation is also used to support the article and references. AIDA model has
been discussed to bring good understanding for mangers to get a know how of how advertising
works. The author has also mentioned the consumer perception of towards advertising. Pre
experience exposure is the important level to be understood by the marketer as this is the stage
where brand image of new brand has to be made. The author has provided relevant information
that is useful for not only the students but also for mangers.

Oscar B.F.(2013), “The Emotional Effectiveness of Advertisement”, Frontiers in

psychology, International Journal of Commerce, Business and Management ISSN:
Volume 9, Issue 2

Oscar B.F.(2013), In their research they found that ,repurchase a product purchased in the past
(Megantara & Suryani, ). Chou and Chen define repurchase intention as a person's assessment
of buying products or services from the same brand in the future by considering the current
situation. Meanwhile, Ibzan et al. explain that repurchase is a real customer action to buy or
reuse the product. According to Putri consumer repurchase interest factors include brand
preferences, product quality, perceived value, and price. Companies must have the right price
and positioning strategy to form repurchase intention.

19
Fadli (2012), Brand Price Positioning Strategy and Sales Turnover of Food and Beverage
Manufacturing Companies In Rivers State Nigeria. In Int. J. Social Science Humanities
Research Volume 9, Issue 2

Fadli (2012), In their research they found that, The research aims to identify and analyze the
implementation of digital marketing and brand positioning on brand awareness at PT Bank
SUMUT Medan Branch. The level of brand awareness of PT Bank SUMUT Medan Branch is
at thebrand recall level and has a low rating in comparison to other conventional banksbased
on online customer reviews.

The research uses a descriptive and causality type with a quantitative approach. The methods
to analyze the data employ classical assumption tests and multiple linear regressions using
SPSS version 22. The sample in the research is the customers of PT Bank SUMUT Medan
Branch, totalling 100 people. The sample is taken by accidental sampling technique. The
research results show that the implementation of digital marketing partially has a positive effect
onbrand awareness at PT Bank SUMUT Medan Branch and brand positioning partially has a
positive effect on brand awareness at PT Bank SUMUT Medan Branch.

Bendixen, M.T. (2011), Implementation of Digital Marketing and Brand Positioning to

Build Brand Awareness at PT Bank SUMUT Medan Branch. International Journal of
Research and Review Volume 4, Issue 2

Bendixen, M.T. (2011) in this research focused on the advertising management .This article is
based on two models that are important to understand the marketing process. Also this model
explains the responses and decision making process of consumers with regard to advertising.
As such no experiment has been done in the article but the study is conducted in the light of
observation and references. The first model which has been talked about is the hierarchy model
that is based on how consumers go about making a purchase decision.

20
 CHAPTER III

RESEARCH METHODOLOGY

3.1NEED FOR THE STUDY

Manufacturers and distributors take more efforts to increase the sales. They remind the public
and to avoid them to shift from their product to their competitors. They spend huge amount for
advertisement for the above reasons. Advertisement will be effective only when it is clear,
simple and attractive.

Or otherwise it would not make any impact on sales. So the researcher is to make a study on
impact of advertisement. This study is to analyze the media of advertisement to influence, level
of awareness created by the advertisement, suitable media for advertisement, reaction of the
viewers of the advertisement and level of understanding capacity of the viewers by the
advertisement.

3.2 OBJECTIVES OF THE STUDY

Primary objective

➢ To study on advertisement effectiveness towards Lakshmi Machine Works Limited,

Coimbatore

Secondary objectives

➢ To identify the impact of advertisement on brand awareness

➢ To analyse the effect of advertisement on purchase intention
➢ To understand the customer attitude by the effective advertisement
➢ To evaluate the effectiveness of advertisement towards brand recall
➢ To obtain suggestions from the respondents to improve the advertisement effectiveness
for the company

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3.3 SCOPE OF THE STUDY

The scope of the study is limited to Coimbatore. It is focused on the advertisement effectiveness
of Lakshmi Machine Works Limited, Coimbatore. The study is conducted with 120
respondents only. The study only taken with the customers of Lakshmi Machine Works
Limited, Coimbatore. It highlights the advertisement effectiveness in the perception of the
customers. The study restricts itself within Coimbatore. The study assumes that the information
was given by the customer without any bios. The study is done based on the opinions of the
sample taken at random, the size of which is 120. The researcher found it difficult to collect
the questionnaire, since some of the respondents did not give proper response in the sales point.
The customers did not respond properly during peak hours

3.3 RESEARCH DESIGN

“A Research Design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with the economy in
procedure”. The research design adopted for the studies is descriptive design. The researcher
has to describe the present situation in order to know the behavior of the customers. Hence
descriptive research study is used. Descriptive research can only report what has happened and
what is happening.

3.3.1 Data Collection Method

The information collected from internal sources is called “primary data”. Primary data are fresh
data collected through survey from the employees using the questionnaire. Questionnaire helps
to recognize the employee’s perception about the present analysis.

This study uses primary data. Survey method is considered the best method for data collection
of data and the tools used for data collection are Questionnaire. This method is quite popular
particularly in case of big enquires. Private individuals, research works, private and public
organizations and even government are adopting it. In this method a questionnaire is sent to
the persons concerned with a request to answer and return the questionnaire. A questionnaire
consists of a number of question involves both specific and general questions relating to
employees perception. The information gathered from outside references is called “secondary
data”. Secondary data are collected from the past records & books and various journals,
magazines etc. regarding the present study.

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3.3.2 Sampling Method

Non-probability sampling is a method used in statistics and research to select a sample from a
population where not every individual or element of the population has a known chance of
being included. In contrast to probability sampling, where each member of the population has
a quantifiable chance of being selected, non-probability sampling relies on subjective judgment
or convenience.

Convenience sampling techniques were used for the study. Convenient sampling is felt to
appropriate for the present study because convenience sampling is a strategy that uses the most
readily accessible objects or persons as subjects for the present study.

3.3.3 Respondents

Population

The aggregate elementary units in the survey are referred to as the population. Here it covers
the entire customers of Lakshmi Machine Works Limited, Coimbatore.

Sample size

The study based only on the opinion and perception of customers. Total number of sample
taken for the study is 120 respondents.

Sampling unit

Sampling unit is in Coimbatore.

STATISTICAL TOOLS USED

Statistical tools

The commonly used statistical tools for analysis of collected data are:

1. Percentage analysis

2. Chi Square

3. Correlation

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Percentage analysis

This method is used to compare two or more series of data, to describe the relationship or the
distribution of two or more series of data. Percentage analysis test is done to find out the
percentage of the response of the response of the respondent. In this tool various percentage
are identified in the analysis and they are presented by the way of Bar Diagrams in order to
have better understanding of the analysis.

Number of respondents
Percentage of respondents = ______________________ X 100
Total respondents

Chi-square test

Chi-square was done to find out one way analysis between socio demographic variable and
various dimensions of the programme.

(O – E)2
= ______
E

O – Observed value

E – Expected value

Correlation

Correlation is a statistical technique that can show whether and how strongly pairs of variables
are related. For example, height and weight are related; taller people tend to be heavier than
shorter people. The relationship isn't perfect.

There are several different correlation techniques. The Survey System's optional Statistics
Module includes the most common type, called the Pearson or product-moment correlation.
The module also includes a variation on this type called partial correlation. The latter is useful
when you want to look at the relationship between two variables while removing the effect of
one or two other variables.

Like all statistical techniques, correlation is only appropriate for certain kinds of data.
Correlation works for quantifiable data in which numbers are meaningful, usually quantities of

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some sort. It cannot be used for purely categorical data, such as gender, brands purchased, or
favorite color.

Correlation Coefficient

The main result of a correlation is called the correlation coefficient (or "r"). It ranges from -1.0
to +1.0. The closer r is to +1 or -1, the more closely the two variables are related.

If r is close to 0, it means there is no relationship between the variables. If r is positive, it means

that as one variable gets larger the other gets larger. If r is negative it means that as one gets
larger, the other gets smaller (often called an "inverse" correlation).

3.4 LIMITATIONS OF THE STUDY

➢ The study restricts itself within Coimbatore.

➢ The study assumes that the information was given by the respondents without any bios.
➢ The study is done based on the opinions of the sample taken at random, the size of
which is 120.

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