Literature, Importance And Scope Of Advertising

2.1 INTRODUCTION

This chapter deals in Review of Literature, Significance, Importance, and Scope

In a descriptive form. 2.2 LITERATURE

In Jerome D. Scott 's (1943) opinion the effects on advertising outlays upon profit and liquidity are important considerations in setting outer limits for advertising. He also describes that normally a time lag occurs between advertising outlay and sale results. In his opinion the firm 's resources set a real limit on advertising outlay.

Analyzing the maximum extent up to which a firm can spend on advertising, Joel Dean (1951) observes that the advertising expenditures for each product should be pushed to the point where the additional outlay equals the profit from the added sales caused by the

I. Sathyasundaram (2001) observes that advertising industry in India concentrates mainly on consumer durables. Because of, the current stress on globalization, liberalization and privatization, competition has become severe and advertisements too have become aggressive. He also observes that good advertising stimulates aspirations and wants, which in turn induces mass marketing of products and devices. In his opinion advertising on the Internet is expected to grow rapidly and India 's on-line advertising revenues are expected to increase from $ 2.5 million in 1999 to $ 150 million by the end of 2003.

Ruchi Bhatia (2001) observes that both television and print media have proved to be the media suitable for communication objectives in different stages of product life cycle. In her view, India, with 70 million TV-owning households and an equal number with the potential to own one and cable penetration at over 30 million homes, TV has the most eyeball power. She also opines that advertisers rely on print media for exposure, while the electronic media for

2.3 THEORIES OF ADVERTISING

In the literature, instead of ' one proven theory, there are at least four distinct, alternative theoretical formulations of how advertising produces its effect. Weilbacher (1984) summaries these four theories:-

a) Pressure- Response Theories of advertising assume that advertising effects are a function of the advertising dollars spent or messages received. It also assumes that stable relations exist between advertising pressure and advertising effect. This theory tends to ignore the quality of advertising creative work in causing advertising effects.

b) Active Learning Theories of advertising assume that advertising conveys information that leads to attitude change and, in turn, to changes in market place behavior .

Low Involvement Theories of advertising assume, at least in some advertising situations, that the information content of advertising is not of importance to the consumer and that it tends to be passively stored rather than actively evaluated in relation to consumer reactions to products and companies. In this conception, advertising effects cumulatively increase brand relevance or salience, result in changed purchase behavior, and lead to revised attitudes only after the brand has been