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Advertising Efficiency And The Choice Of Media Mix Marketing Essay

Advertising is one of the most important feature of any company’s marketing plan. The major chuck of their marketing budget goes in to advertising. We all know that fact but most of know still doesn’t know the importance of advertising efficiency because without a tool to measure the actual fruitfulness of advertising it is a wastage of money and resources. So in this research I have tried too jotted down factors that affect advertising and its effectiveness and then done an analysis among those variables signifying whether they carry a significant relationship or not. This research is aimed at the importance of advertising efficiency and also the importance of media mix choices in telecom sector and it will help our understanding of advertising efficiency and choices of medias. This research is a part of growing study that will provide guidelines to all the telecom industries about how they can improve their advertising efficiency.

Chapter 1: Introduction

1.1 Overview:

1.1.1 Advertising:

Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. A working definition for advertising can be “Advertising is the art and science of building brands through persuasive communication and positioning in the consumer’s perception with a constant vigil on the market situation and consumer expectation” (Advertising Management by Kumar, N. page 2)

Advertising is done to let consumer know about certain product or service and through this message consumer comes to know who that particular service will be beneficial for him or her.

These advertising messages are mostly paid by the sponsor. In these advertising messages certain attributes are associated with the product being advertise, this is done to distinguish the product among different competitors and also to give it a separate brand identity in the market.

1.1.2 Media for advertising

There are certain mediums through which a company can forward its message to its potential consumers. These various media are non-personal communication channels that people have invented and using continually. The different medias include newspapers, magazines (Print), radio, television, posters, cards, transit, skywriting sandwich panels, posters, anything that helps communicating a idea of a person or group to another person or group. Each media type has its own features and carries some advantages as well as disadvantages.

1.1.2.1 Bill Boards:

Billboards are the large hoardings that are placed near roads. Billboards are a good way to advertise to your consumers through catchy messages and well written message because due to their large size they grab attention of almost every vehicle that pass by The problem with this medium is that it is very expensive and also it is no surety that the huge money spent on these will reap the same benefits or not. Moreover the messages on the billboards should be small and precise because consumers have only have a fraction of second to see your message. Moreover these are extensively used medium by the telecom sector in Pakistan because it serves the purpose of brand reminding very well.

1.1.2.2 Television:

Television is the most widely used medium in advertising due to its outreach and also due to its effectiveness. It is also very expensive to place a TV commercial on different channels specially in peak hours but due to its large audience reach the average cost of reaching each consumer once become small. Telecom sector in Pakistan heavily advertise on Television because most of their potential consumer are regularly see Television programs. Also to reap the maximum benefit company should they place their ad at a peak hours when most people are watching television.

1.1.2.3 Radio:

It is also an affective medium of advertising. It is much cheaper then Television but has almost the same range as television. The major advantage in using Radio is that it reach maximum audience at negligible cost, but a major disadvantage it faces is its lack of visual consumer only listen to your offer and can’t really see your message so some time he/she cannot able to relate with the advertisement.

1.1.2.4 Print media:

Print media has one of the largest outreach due to its distribution and also known to be the most reliable one. The print media advertising is considered to be cheap as related to other mediums. One major advantage is of print media is that it is considered to be most reliable one and also it have a high reach with loyal readers.

1.1.2.4.1 Newspapers:

Newspapers have been a popular advertising medium for many years. Most local businesses use newspapers to advertise their goods and services, so do the big industrial giants. Most ads are cheap and low cost. One major downside with newspaper is that it has very short life spawn usually one day for most metropolitan.

1.1.2.4.2 Magazines:

Magazines ads can reach large audience with relatively cheap cost the cost is greater than newspaper cost and company have to book their ads months before. As all the magazines are specialty publication aimed at certain group of people they reap good benefit both in reaching and affecting costumers. One major advantage with magazines is that they have more life spawn then newspaper.

1.1.2.5 Online advertising:

Online advertising is becoming the most growing medium to advertise on. As the new generation spent most of their time on internet, using this medium is very important. In this medium ads are placed on popular websites which have most traffic (no of visitors). Most of the telecom industry is using this medium to advertise the major websites holding cellular companies include Facebook, Google and Youtube.

1.1.3 Advertising-efficiency:

The main thing in calculating a successful advertising campaign is to see whether it is able to fulfill it set communication goal or not, because at the end of the day it is all about sales and the profit margins that come from that sales. The main goal of every advertising campaign is to provoke costumers to go and buy the product it is advertising. The advertising efficiency is measured to find out whether an ad campaign has succeeded or not. Advertising efficiency can be determined from sales, market share and relationship alterations towards the brand. The success and failure can be calculated from things like brand recognition and brand image ad campaign created in consumer mind.

1.1.3.1 Factors affecting the effectiveness of advertising:

There are many factors that affect advertising efficiency but the most important one can pin point is the choice of mediums for a particular advertising campaign, because if company unable to find the right medium to chose their advertising message will get distorted and eventually result in unsuccessful advertising campaign. Moreover one learns from mistakes so if a firm have an unsuccessful advertising campaign it can learns from its mistake and take measure in to account which will increase it s overall advertising efficiency of future campaigns.

1.2 Managerial Concern:

Advertising, as you all know, is a fundamental tool for selling anything to the market in the world today. If the ad meets the expectations of people watching it that means it attracts them. Also if a person likes the particular ad it creates a brand image of that particular brand in consumer’s mind, if an advertisement can do that we can say that advertising is very efficient. The choice of media mix is also important when it comes to advertising effectiveness advertising carried out by all companies. The competition in the telecom market (only cellular service) is fierce and every company is fighting for the market share. They all are investing heavily in to advertising so that they can attract more and more customers to use their services. As the telecom sector is one of the most booming sector in Pakistan that is the reason everyone wants to have a bite of it, Pakistan have almost 3 to 5 billion cell phone users which is a huge market to cater if you are a cellular service provider. The companies in Pakistan are both local and multinationals and have major players like Mobilink, Warid, U-fone, Telenor and Zong.

Now the question arises whether the advertising is doing its job of attracting consumer and ultimately rising sales? Is it cost effective for the company? Is it doing a proper job of differentiating the brand from the competition? All these questions can be answered only if we know that whether the advertising is efficient or not, because if the advertising is efficient then it would probably increase revenue and would make a good impression of the product, but if not then the money was spent on advertising is useless. So, to make an ad campaign successful it should both be effective and efficient and the efficiency of advertising is connected to the choices of the media mix that a company is making. If a company has an optimal media mix, carrying clear message with attractive and creative visuals then the advertisement will definitely do its job of capturing and retaining customers.

So, the study focuses on the advertising efficiency of firms and the choices of media mix that they made and also how Telecom industry as a whole can take necessary steps to increase the advertising efficiency.

1.3: Statements of Study Objectives

In the guidance of previous studies conducted we are able to know that choosing right kind of media mix is vital for higher advertisement efficiently. In turn efficient advertisement results in more customer turnover which will in turn increase sales of the company. So in this lime light we make the following study objectives

To determine what is the optimal choice of media mix for a telecom industry.

To determine how advertising efficiency effect consumer buying behavior.

To understand how advertising efficiency and choice of media mix plays a vital role in the success of a company.

To determine what are the main factors that affect both choice of media mix and efficiency of advertising.

To recommend how companies can improve their advertising efficiency.

1.4: Related operational definitions

S.No

Variable

Constitutive Definition

Operational Definition

1

Product Quality

Product quality is the ongoing process of building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied needs regarding a specific product.

Question 11

2

Customer Satisfaction

Customer satisfaction defines the degree to which a consumer's expectations are fulfilled or surpassed by a product.

Question 9

3

Brand Equity

Brand's power derived from the goodwill and name recognition it has earned over time.

Question 10

4

Buying behavior

Process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants.

Question 8

5

Advertising efficiency

Ratio of the cost of advertising to the number of targeted audience reached (it measures the productivity of advertising)

Question 5

6

Choice of Media

Combination of advertising channels employed in meeting the promotional objectives of a marketing plan or campaign.

Question 6

Question 7

Chapter 2: Literature Review

2.1 Advertising efficiency and the choice of media mix: a case of beer

The article states that, in principle, the advertising agency of efficiency is very important in the beverage industry, but the fact that a number of companies do not pay much attention to their advertising effectiveness and the choice of media mix, but also that the advertising is more important to the success of an enterprise than production. The investigation is independent of the literature on the performance of these companies on their ability to translate into advertising sales assessment. The main variables in the building were solid success, profit maximization and managerial decision on the choice of the media mix. The article argues that economic efficiency is closely related to business success and industry competition. The model used for this study contains substantially all sales of beer and three media inputs (in terms of expenditure): print, television, radio. The main findings are as considerable uncertainty about the expected benefits of an advertising campaign in a particular medium have, companies cannot always be the optimal total quantity or the optimal media mix of advertising is a different matter that the index of overall cost-effectiveness of advertising is very low for most companies. The study does not focus on the production side and just trying to show that a company is advertising efficiency as important as the production side for the company success. The article provides valuable insights into the media mix strategies and their implants, which are very useful in further study on the subject.

2.2 The effects of marketing efficiency, brand equity and customer satisfaction on firm performance.

This research focuses its attention on supporting empirical and not specifically the impact of marketing activities, brand value and customer satisfaction for business success. Moreover, this study will fill the hole of marketing efficiency effect on long-term gains. By methodology consisted of three phases, two of the econometric models and one with DEA, the authors empirical support for the marketing of the company value. First, the results supported the first phase, the impact of marketing assets in the short term performance. Secondly, the efficiency in marketing shows that companies that have better skills to the results in terms of marketing activities to maximize. Finally, some lines of future research are considered. In terms of scientific relevance, this study did on empirical data to support marketing metrics in a global context. A relevant aspect is the connection between effectiveness and efficiency of marketing Studies of marketing efficiency evaluate the maximization of sales in terms of advertising. Studies of efficiency focus on measuring the efficiency score and then treat this score as an independent variable. This study measures the efficiency of the guests and then used them as explanatory variables. Consequently, the effective on-site, but are based with an efficient use of inputs and works managers in terms of relevance, this research not only on the board say that marketing contributes to the company, but also to assist them in marketing effectiveness in financial terms. On the other hand, the use of data (DEA), an evaluative technique is useful, because managers to measure their effectiveness based on multiple inputs and outputs. The main findings of this research are in the first place there is a significant impact an ad has on customer satisfaction and brand value in the short term performance.

2.3 Advertising market structure and performance

This paper presents an empirical analysis of the role of advertising in the consumer goods industry. The main result is that advertising has a statistically significant and quantitatively important effects on the rates of profit, which is a measure of market performance and make the existence of market power. This result is robust, and multivariate equations estimated that half of the inter-industry variance of profit rates. The article goes as follows. He first describes the conceptual framework used. Then it examines the relationships that exist between the probable product differentiation, advertising and market entry barriers. Finally, author presents the empirical results that the core of this work. A sample of 41 companies was taken for this analysis, revealed 29 ephemeral consumer goods and the remaining 12 commodities produced. The analysis was done by a simple correlation and regression principle can be said that statistical analysis is done. Based on the empirical findings, it is clear that in sectors where products are differentiated, investment in advertising is a very lucrative business. Industries with high advertising expenditures on average earn a profit rate that exceeds that of other industries by almost four percentage points. This difference represents a 50 percent increase in profits. It is likely, moreover, that accounts for much of the gains made by interest rate differentials for the barriers to entry through advertising spending and the resulting success of market power.

2.4 Planning Marketing-Mix Strategies in the Presence of Interaction Effects

In this study, the author emphasizes that companies spend millions of dollars on advertising to promote brand image and simultaneously spend millions of dollars of incentives, many believe, draws attention to price and erodes brand equity. Moreover, it is outdated, the need for both advertising and sales promotion, to compete in dynamic markets. Author focuses on the role of brand managers, they need to take account of the interaction between marketing activities and interactions among competing brands. By acknowledging that interactions between activities, managers can interactivity compromises in planning the marketing mix strategies should be considered. On the other hand, recognizing interactions with competitors Manager Strategic Foresight in their planning, they look forward and reason backward to integrate the best decisions required. We look forward means that each brand manager anticipates how other competing brands as such to future decisions, and then concluded by the reasoning behind their own optimal decisions in response to the best decisions are taken by all other brands. Together, the interactions and explorations in the marketing mix strategies is a challenging and unsolved problem of marketing. This paper investigates the problem of planning the marketing mix in dynamic markets and the guidelines of this dual approach complements the decision-making toolkit for managers, allowing them to set realistic marketing problems in dynamic oligopolistic markets to address. The article clearly states that advertising and promotion not only the brand equity, but also to carry out interactions, is any activity that strengthens or weakens the effectiveness of other activities. In the article I found that the big brands and advertising under a lot of money on advertising, while small brands to advertise and promote, which is a unique feature.

2.5 Order of Entry as a Moderator of the Effect of the Marketing Mix on Market Share

According to the article order of entry showed that a significant impact on market share. The writer said that the market share advantage of pioneers often was treated as one of the main effect of the automatic regularity won. Treating order-of-entry as a main effect implies that there is no penalty on the effectiveness of a brand's marketing instruments for late entry and that a late entrant can compensate for being late by dedicating sufficient marketing resources to their product. In this study the authors investigated the influence of order of entry into a market on the effectiveness of marketing mix decisions of a company. That is, there is an asymmetry in the effectiveness of brand marketing mix variables on his behalf in relation to market access, or as previously thought that a rule like this is to strictly prevent the entry of a major effect. An asymmetry is present, for example, if the market reaction to the other advertising for the first participant from the second or the third party. Asymmetry exists even when the effects of, say, a price change by the first participant to the second party other than the impact on third-party providers. Writers to develop a market share attraction model in which the parameters vary depending on the order of entry. Therefore differs from previous research, we explain why inherent order of entry effects. This paper provides a sufficient knowledge about the development of market share models and the effectiveness of marketing mix variables to study. Author suggests that the effects of date do not necessarily lead to a lower level, but to overcome these effects is not without significant cost to the latecomer. The result in the article supports previous research has shown that early entry advantages. Moreover, writers guidelines for late entrants as they should also compete to discuss later, take a competitor uses tend to reduce price sensitivity, which suggests that they do not result in a price war with former participants in order to share win. To achieve the same effect on the market later entrants a greater change in the quality and we have to spend more on promotion. This article gives insight about how to differentiate and compete with your competitors on different turfs and conditions.

2.6 Trends in Media Use

This article focuses on American youth and their impact on media strategies. Writer said that a child of the American television in their bedrooms, personal computers, in their family rooms and digital music players and mobile phones in their backpacks. They spend more time with media than any single activity other than sleeping, every day the average American eight to eighteen years reported more than six hours of media. Authors examine how both media use and media coverage is dependent on demographic factors such as age, race and ethnicity, household socioeconomic status and psychosocial variables, such as academic achievement and personal adjustment. They note that media exposure begins early, increases until children to school, runs short, and then rises again to almost eight hours per day between eleven and twelve years peak. Television and video exposure is particularly high among African American youth. Media coverage is negatively related to indicators of socioeconomic status, but the relationship may disappear. Media coverage was positive for risky behavior and negative personal attitudes together. The authors examine how the recent advent of digital media, such as personal computers, game consoles and portable music players, and the media multitasking phenomenon to facilitate, an increase in youth exposure to media reports, while the media use time largely unchanged. Newer media, they point out, not supplant, but old media will be shared with them. The authors note that young people more or less likely to use multiple media simultaneously and the media are more or less likely to be combined with various other media. "The article enough medium for demographics and the new medium of advertising, the bee will be used by young people is aloe tells us that, as the choice of media mix continues to evolve and change over time.

2.7 Mastering the Mix: Do Advertising, Promotion, and Sales Force Activities Lead to Differentiation

The authors consider the impact of marketing activities in three non-product-based differentiations. In particular, they examine whether advertising, marketing and promotional activities of a company's ability to enhance differentiation and thereby protect themselves from future price competition. It has been suggested that the own price elasticity is a measure of differentiation and examines the impact of marketing activities on their own price elasticity for a company. Author makes some predictions about the future performance of the differentiation of the expected ambiguity of the communication message. The results obtained are consistent with their premise that through a unique and positive messages. According to the forecast of a company from future price competition may be less negative price elasticity future witness to isolate. Conversely, the results show that there are no clear messages can continue to differentiate, such as pricing actions for companies that reduce the price above the industry average of more negative future price elasticity. This article is about what happens in the media mix of effective and less costly.

2.8 Inter brand choice, media mix and market performance

The document outlines a framework for modeling the cross-product of the observed variation pattern and level of the product information. Author explains that one implication of differing information across product markets is that the mix of advertising media utilized by sellers will vary from industry to industry. He argues that this variation significant impact on market performance, and has tested this hypothesis in the article. The researcher has used empirical data to support his thesis; he took a sample of 39 of the 42 consumer goods and run multiple regressions on the data on their advertising spend. This type of analysis is central to the political decision as taking the results of this study, a total change in policy in a company or even an entire industry. The main findings of this study are, first, that the increase in market power through advertising mainly on the size of the advertising expenditure for the network television and magazines, especially the first. Secondly, the equilibrium in the information markets that determines sellers' proportional outlays on the various advertising media is central to industry performance, because the results suggest that the media have asymmetrical implications for market power. The main constraints in this special paper, some of the media was not available, but these were included representing the vast majority of the estimated total cost of media spending.

2.9 The Measurement of Marketing Efficiency in the Presence of Spillovers: Theory and Evidence

In this article the author develops a model of marketing efficiency based on a specific distance function that provides marketing spillovers. They use a parametric model is used to test for spillovers from rivals and from a marketing company that the activities of its other products. Article tells how this information is then integrated into a non-parametric model and estimate of market inefficiency. Authors are brand level data from the U.S. brewing industry, the non-parametric model to the effectiveness of television, radio and print advertising to be determined. Writer discovered that advertising spillovers are important in brewing and show that the efficiency inaccurate estimates when spillover effects are ignored. The results in the article also state that marketing efficiency key to the success of the company to understand.

2.10 Advertising, competition and entry in media Industries

This paper presents a model of media competition with free entry, if media platforms, both financed by advertising revenue and customer subscriptions. Author presents a relationship between the equilibrium prices, advertising and wants the welfare levels and advertising technology to maximize. Scale According to the article under constant or increasing returns in the size of the audience, there is an excessive level of entry and insufficient advertising. Author explains his views on several dimensions, the price as a strategic variable in the market for advertising, free media and media platforms, the quality dimension.

Chapter 3: Methodology & Analytical Choice

3.1: Research Type

The research is conducted with Applied Research Techniques. This type of research is more practical as compared to common research techniques because the purpose of this research is to apply them on future studies.

3.2: Data Type & Research Period

The data used in this research is primary and it will give new insights to problem in hand as the data is primary there is advantage because the result will give a new outcome which will be used in the future analysis.

Primary data will be used as the key method for data gathering because it will allow us to gather new and exact data which has been out dated and irrelevant in the case of secondary data. The time period for research will consist of last 5 years 2005-2010.

3.2.1 Population

Population for the study consists of all the people that are connected with the telecom industry, (while the working population only includes cellular companies out of telecom industry) working and living in Lahore. The Working population will be identified on the basis of their demographics which include education and income levels.

3.2.2 Sampling Frame

Research will be carried on all the leading cellular network companies which include Mobilink., Warid, Telenor, Ufone and Zong . Further, samples will be drawn from these respective companies and their departments. Marketing department will be considered as the primary function for both the company because advertising functions and effectiveness are directly related to marketing department. So it will be helpful and convenient to consult them.

3.2.3 Sampling Procedure and Size of Sample

The total population for the research will encompass city of Lahore. 50 respondents will constitute the sample size from total population. Quota Sampling techniques will be used for data gathering.

3.3: Research Hypothesis

Ho: Product quality does not have a significant effect on advertising efficiency.

H1: Product quality has a significant effect on advertising efficiency.

Ho: Customer Satisfaction does not have a significant effect on advertising efficiency.

H1: Customer Satisfaction has a significant effect on advertising efficiency.

Ho: Brand equity does not have a significant effect on advertising efficiency.

H1: Brand equity has a significant effect on advertising efficiency.

Ho: Buying behavior does not have a significant effect on advertising efficiency.

H1: Buying behavior has a significant effect on advertising efficiency.

Ho: Choice of Media Mix has an insignificant effect on advertising efficiency.

H1: Choice of Media Mix has a significant effect on advertising efficiency.

(H 0: β 1 = 0)

(H 0: β 1 ≠ 0)

3.4: Theoretical Framework & Variable under Consideration

3.4.1: Reference List of Variables under Consideration

Order of Entry as a Moderator of the Effect of the Marketing Mix on Market ShareDouglas Bowman , Hubert Gatignon Marketing Science, Vol. 15, No. 3 (1996), pp. 222-242 (Source: Jstor)

The effects of marketing efficiency, brand equity and customer satisfaction on firm performance Luis Fernando Angulo Autonomous University of Barcelona

Mastering the Mix: Do Advertising, Promotion, and Sales Force Activities Lead to Differentiation William Boulding, Eunkyu Lee, and Richard Staelin (Source: Jstor)

Advertising market structure and performance Comanor and Wilson University of Toronto (Source: Jstor)

Planning Marketing-Mix Strategies in the Presence of Interaction Effects Prasad A. Naik, Kalyan Raman, Russell S. Winer (Jstor)

3.4.2: Theoretical Justification

The research is aimed at the impact of different variables on advertising efficiency in order to measure the impact of these variables on the advertising efficiency of the cellular companies operating in Pakistan. On the outcome of this research we can conclude that which are factors which are most affecting advertising efficiency of Pakistan’s cellular services companies.

These variables which according to the articles can have a significant impact on advertising efficiency include Brand Equity, Buying Behavior, Choice of Media Mix, Product Quality and Customer Satisfaction.

All of these said to influence Advertising efficiency in a positive way, because with the increase of each the advertising efficiency said to increase. For instance if Choice of Media Mix is really good then the advertising message will be clearly delivered to the target audience, which in result will increase the advertising efficiency.

3.5: Information Gathering Procedure

3.5.1: Variable title, their definitions and sources of data

The research is set to examine the degree of influence dependent variable like Brand Equity, Buying Behavior, Choice of Media Mix, Product Quality and Customer Satisfaction on Independent Variable which is advertising efficiency. The articles and definitions are taken from the reliable sources like Jstor.

3.5.2: Data reliability and sources of potential bias

As the research will be based on primary data collection methods, in this regard different telecom companies will be visited for in depth interviews, field research, journals, articles and publications. The data is reliable because only the qualified personals are chosen for the collection of data.

3.6: Data Analysis Tools & Techniques

We will be using regression analysis once we get the data we required to know the result. We will be using SPSS which is statistical software and we will interpret the data using regression analysis and cross tabulation. Further analysis and explanation will be done through graphs and tables using Microsoft EXCEL and MSWORD.

Chapter 4: Estimation, Analysis & Conclusion

4.1: Estimation of Results

4.1.1: Test of Significance of Regression, Parameters &Regression Equation

R-squared = 78.8772 percent

R-squared (adjusted for d.f.) = 76.4769 percent

The above model shows the relationship between dependent variable advertising efficiency and the other five independent variables which include Brand Equity, Buying Behavior, Choice of Media Mix, Customer Satisfaction and Product Quality. The regression equation for this model comes out to be

Advertising Efficiency = 0.879974+ 0.128641 β1+0.522521 β2 + 0.333481 β3+0.164531 β4 + 0.411235 β5

β1=Brand Equity

β2=Buying Behavior

β3 =Choice of Media Mix

β4 =Customer Satisfaction

β5 =Product quality

The equation clearly indicated a positive relation between the dependent variable that is advertising efficiency and all the five independent variables.

The R-Square comes out to be 78.8772 percent which indicated that 78% of the changes in the dependent variable cause by the dependent variables while the other 22% came from unexplainable factors.

4.2: Analysis of Findings

4.2.1 Hypothesis Testing

The hypothesis testing is based upon the T-test and P-Value analysis. Two tallied testing has been used in the all five hypothesis for T-test. First of all we have to determine T-Critical for this model checking T-table at 90% confidence level and 44 degree of freedom the T-Critical comes out to be 1.68 so in order for us to reject all null hypothesis the T-stats values should be greater them this T-Critical value.

On other hand if we take P-value testing we have to take in account at what level of confidence we are working at, which in our scenario is 90% so in order to reject null hypothesis our P-value must be less than 10%.

4.2.1.1 Hypothesis 1

Ho: Brand equity does not have a significant effect on advertising efficiency.

H1: Brand equity has a significant effect on advertising efficiency

The T-stats value for Brand equity comes out to be 1.96567 in order to reject null hypothesis this value should be greater than T-critical. The T-Critical value as mentioned before is equal to 1.68 so T-stats > T-Critical so we will reject null hypothesis.

Similarly if we take in account P-value testing, In order for us to reject null hypothesis our P-value should be less than 0.01 which in the case of Brand equity is 0.0557 which is less than 0.01 so we will reject our null hypothesis and conclude that Brand Equity and Advertising Efficiency have a significant relationship among themselves.

4.2.1.2 Hypothesis 2

Ho: Buying behavior does not have a significant effect on advertising efficiency.

H1: Buying behavior has a significant effect on advertising efficiency.

The T-stats value for Buying behavior comes out to be 4.02244 in order to reject null hypothesis this value should be greater than T-critical. The T-Critical value as mentioned before is equal to 1.68 so T-stats > T-Critical so we will reject null hypothesis.

Similarly if we take in account P-value testing, In order for us to reject null hypothesis our P-value should be less than 0.01 which in the case of Buying behavior is 0.0002 which is less than 0.01 so we will reject our null hypothesis and conclude that Buying behavior and Advertising Efficiency have a significant relationship among themselves.

4.2.1.3 Hypothesis 3

Ho: Choice of Media Mix does not have a significant effect on advertising efficiency.

H1: Choice of Media Mix has a significant effect on advertising efficiency.

The T-stats value for Choice of Media Mix comes out to be 3.07702 in order to reject null hypothesis this value should be greater than T-critical. The T-Critical value as mentioned before is equal to 1.68 so T-stats > T-Critical so we will reject null hypothesis.

Similarly if we take in account P-value testing, In order for us to reject null hypothesis our P-value should be less than 0.01 which in the case of Choice of Media Mix is 0.0036 which is less than 0.01 so we will reject our null hypothesis and conclude that Choice of Media Mix and Advertising Efficiency have a significant relationship among themselves.

4.2.1.4 Hypothesis 4

Ho: Customer Satisfaction does not have a significant effect on advertising efficiency.

H1: Customer Satisfaction has a significant effect on advertising efficiency.

The T-stats value for Customer Satisfaction comes out to be 2.08612 in order to reject null hypothesis this value should be greater than T-critical. The T-Critical value as mentioned before is equal to 1.68 so T-stats > T-Critical so we will reject null hypothesis.

Similarly if we take in account P-value testing, In order for us to reject null hypothesis our P-value should be less than 0.01 which in the case Customer Satisfaction is 0.0428 which is less than 0.01 so we will reject our null hypothesis and conclude that Customer Satisfaction and Advertising Efficiency have a significant relationship among themselves.

4.2.1.5 Hypothesis 5

Ho: Product quality does not have a significant effect on advertising efficiency.

H1: Product quality has a significant effect on advertising efficiency.

The T-stats value for Product quality comes out to be 2.22842 in order to reject null hypothesis this value should be greater than T-critical. The T-Critical value as mentioned before is equal to 1.68 so T-stats > T-Critical so we will reject null hypothesis.

Similarly if we take in account P-value testing, In order for us to reject null hypothesis our P-value should be less than 0.01 which in the case : Product quality is 0.0310 which is less than 0.01 so we will reject our null hypothesis and conclude that Product quality and Advertising Efficiency have a significant relationship among themselves.

4.2.2 Cross Tabulation

Cross tabulation is used to determine certain questions like according to people which are the best medium for advertising and also which company is having the best advertisement campaign in the cellular service market.

4.2.2.1Cross Tabulation 1

Below two questions are been cross tabbed to know which company is having the best advertisement campaign at the moment. As shown by the results below U fone is having the best advertisement campaign with 16 votes from males and females followed by Telenor with 11 votes while Warid get 9 and both Mobilink and Zong stand with 7 votes each.

4.2.2.2 Cross Tabulation 2

In the next cross tabulation again two questions are taken to know which the best medium to advertise on. According to results Television got the highest preference with 33 votes followed by Print with 9 and Internet with 9 respectively, while Radio was not able to get a single vote. So according to result Television is the best medium to gain maximum advertising efficeny.

4.3: Limitations of the study

One of the major limitations in the research is that due to certain factors we can include all the possible factors which can affect advertising efficiency of Pakistan’s cellular service providers. So the study only is depended on the variables incorporated in the research.

Another major limitation in the primary research is the time constrain we have only a time period of four months to complete the whole research which is very limited time spawn to conduct a thorough research on the issue.

We have very limited resources to conduct the research the only help we can get is from our instructors because the companies themselves were unwilling to provide their data due to confidentiality issues.

Moreover the respondents were not that cooperative either at the particular companies they were very reluctant in filling the questioners and answering our questions.

4.4: Conclusion

The regression result verify that advertising efficiency is affected by other factors and they play an important part in both increasing the efficiency which in result increase the customer base of the company.

Result conclude that Brand Equity have a positive effect on advertising meaning if an advertisement makes a everlasting effect on the consumer mind it tends to remember the brand name which in turn increase the advertising efficiency of the particular company.

Also result conclude buying behavior is a key factor in measuring advertising efficiency and share a positive relation with it, because if the company’s sales are increasing it directly means that company have good advertisement campaign.

Result shows Choice of media mix also have a direct positive relation with advertisement efficiency because it plays a vital role in making an advertisement campaign successful or miserable, because if a company fails to choose the right mediums the advertisement may turn out to be a disaster which in turn decreases advertisement efficiency considerably.

Result also shows that Costumer Satisfaction and product quality also share a positive relation with advertisement means increase in either of the two will result in the increase of advertisement efficiency.

Moreover according to the research the most preferred medium to advertise upon is Television reason being it is the most watched medium out of the four and have the widest range in case of Pakistan so it gives a company maximum advertising efficiency.

Also in another Cross tabulation the result shows that in all of the cellular service providing companies, U fone have the best advertisement campaign.

4.5: Direction for Further Research

It is a well known fact that advertisement is an ongoing phenomenon in every sector and it cannot stop. Companies need advertisement to deliver their message and product to their potential costumers so there are a several areas which needs research and also as the time pass more and more areas will need research to be solved.

The further research can cover the areas like how to increase the advertisement efficiency by adopting recommended polices to adopt in order to increase the advertisement efficiency.

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