THE MOST EFFECTIVE AND EFFICIENT MEDIUM IN ADVERTISEMENT IN BUSINESS

A Library Research Report

Submitted to

Professor Elizabeth De Asis-Kapulong

University of Santo Tomas-AMV-College of Accountancy

In Partial Fulfillment

of the Requirements for the Course

English 3 (Academic Writing)

Enthusiastic Maidens & Co.Parreñas, Christiane Justine

Radores, Dessie JoyTan, Hannah Elise

Tangcangco, Mary HazelredTecson, Marionne Kim

2A3

November 10, 2014

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TABLE OF CONTENTSTABLE OF CONTENTS..................................................................................................................i

I. Introduction.................................................................................................................................1

Background of the Study............................................................................................................1

Statement of the Problem..........................................................................................................2

Significance of the Study...........................................................................................................2

II. Review of Related Literature and Studies.................................................................................3

IV. Discussion of Results.............................................................................................................20

V. Conclusions and Recommendations.......................................................................................21

Conclusion...............................................................................................................................21

Recommendations...................................................................................................................22

References..................................................................................................................................24

Appendices..................................................................................................................................26

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ACKNOWLEDGEMENT

First of all, the researchers would like to thank Professor Elizabeth De-Asis Kapulong for

her diligence and devotion with helping them understand research in general, as well its specific

topics and requirements, and ultimately with the making of their very own research paper. The

researchers would also want to give appreciation to Professor Elizabeth for her patience with

their inquiries.

Secondly, the researchers would like to thank Janna Belandres for being able to help us

look for the perfect person to interview about our research topic, and for being able to confer

with the interviewee about their requests and inquiries.

Thirdly, the researchers would like to thank Mr. Mario Angeles, their interviewee, for ac-

cepting the request made, and for making time to answer the interview questions thoroughly

and concisely.

Fourthly, the researchers would like to thank each member’s cooperation. This research

paper would not be possible without their cooperation and determination to finish the tough task

at hand.

Lastly, the researchers would like to thank God, for giving them the knowledge and

strength they needed for the pressuring tasks expected from them, especially with the responsi-

bilities to be maintained not only in this course but in the other courses as well. Not only did the

Lord provide these researchers with aid, but they were also given the determination to finish and

do well in the research paper. Without God, being able to do the research paper would be an

impossible task.

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I. Introduction

Background of the Study

Most often than not, Advertising is perceived by many as an effort of a business to

convince consumers to avail a good or service. Advertising may be also defined as a mean of a

business to promote a product or service. Aside from these definitions, Advertising can also be

seen as a mean of communication used by a business to introduce a product to the market or to

present a better image of itself. In a nut shell, Advertising can be stated as “a paid form of

communication intended to inform, persuade, and remind an audience to take some kind of

action” (Kaser, p. 4).

When and how Advertising started can be traced back to the early ages. Egyptians

inscribed advertisements on tombs, Greeks on stones, and Romans on walls. Even in the early

times, Advertisements’ essential purpose is to entice people to purchase merchants’ goods and

services. In the 18th century, Ben Franklin created a milestone in Advertising history as he

introduced several other means of advertising such as headlines, illustrations, and pictures.

During the Industrial Revolution in the 19th century, as the market prospered so did Advertising.

It was also during this time when P. T Barnum contributed to the development of outdoor

Advertising through the banners he made for his museum and traveling circus. Advertising

continued to develop until the 20th century. The way advertisements were delivered to the public

was more innovative and creative. It triggered higher consumption from consumers. As

Advertising entered the 21sit century, it became centered on its visual aspects and focused on

being more youthful in terms of presentation. It is also in the 21st century that advertisements

became electronic due to the presence of technology and the internet (Kaser, p. 5-6).

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Advertising in the present continues to evolve as it continually tries to cater the needs of both

the business and the consumer as well as adjust to the “sign of the times”

Statement of the Problem

This study then aims to identify which medium of Advertisement is most effective and

efficient in business. Effective defined as the medium which creates the most impact to

consumers. While, efficient pertains to the medium whose benefits override its cost.

The objectives of this study are as follows:

1. To help businesses, particularly business owners, choose which medium of advertising

would market their products or services best.

2. To assist business owners in choosing which medium of advertising should they invest

money into and would yield less cost due to efficiency.

Significance of the Study

As Advertising continually develops, different forms also come to being. From online ads

down to prints, advertisements are almost everywhere. Due to such fact, it is important for

businesses to identify which medium of Advertising is most suiting to use to promote their

products and/or services to consumers. However, that would only be possible if businesses

know exactly how each available medium affect consumers.

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II. Review of Related Literature and Studies

Different Mediums of Advertisement in Business

I. Traditional Forms of Advertising Media

In business, a firm will not flourish without using disparate ways of advertising. A sub-

stantial facet to consider in advertising is which means one should use in disseminating impor-

tant commodity information to achieve effectivity. Some of the conventional means used include

the television, paraphernalia, radio and outdoor media. In choosing which media to utilize, it is

important to consider the business' objectives. One needs to look and ponder on whether this

media would suit their objectives or the other way around. In doing so, the business would most

likely achieve its goals.

Television Advertising

According to studies, an average American is exposed to 61 minutes of promotions

daily. This goes to show how influential TV advertisements could be. Ever since TV was in-

vented, businesses have elevated and have had an enormous success. Infomercials and com-

mercials are some of the television advertising forms via cable, network, independent stations

and satellite TVs.

Television advertising brings about different advantages. Utilizing TV gives the promot-

ers the capacity to convey their message through visuals, sounds, and motion pictures. It pro-

vides the advertisers many opportunities to show their creativities and the chance to move their

audience by the way they advertise. Emotional impact is usually the root cause of TV Advertis-

ing success because it encourages the viewers to buy due to the molded connection with the

merchandise or service. TV advertising also reaches a lot making the cost per view a less ex-

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pensive. However, it also has disadvantages. Although the cost per view may be cheaper, the

overall cost is relatively high. The advertisers will have to pay a lot for the commercials to hap-

pen and they also have to pay for the networks and stations to air their commercial. The price

will also depend on the network's ratings and the length of the advertisement. Television adver-

tising may also sometimes be ineffective because there is a time limit and it is not enough for

the product's overall information to be disseminated. Some people may also surf and shift chan-

nels whenever commercials transpire making TV advertising a little ineffective (Kaser, 2013).

Radio Advertising

Radio advertising can be effective. An advertiser may choose which stations to pick as

their promoters. They can be pragmatic and strategic by picking the right station for them. They

will just have to categorize the stations based on their listeners and choose among them by an-

alyzing which station will help them reach their target markets. Catchy jingles and sounds may

also be used to capture and captivate the listeners. Unfortunately, the biggest disadvantage of

radio advertising is that the product cannot be seen. The impact of the commodity will then be

less compared to TV advertisements. Listeners can also easily tune out because they usually

look for stations more inclined to playing music and not ads (Kaser, 2013). Radio as a factor of

advertising is accessible on a local and national basis through numerous independent local ra-

dio stations, and etc (Burton & Ryan, 1890).

Print Advertising

Print advertising is one of the most effective ways in promoting a business and its mer-

chandise. However, it requires a greater effort in terms of creativity to catch the consumer's at-

tention. One will have to produce visually-appealing headlines and images. Print advertising in-

cludes newspapers, magazines, direct mail, flyers, and brochures (Kaser, 2013).

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Newspapers

Newspaper advertising has a lot of advantages. It can reach a large number of people

making advertising very effective. It is also inexpensive requiring firms to allot little budget for

this. This is the most effective print advertising because aside from its cheapness, it is very

common and it has been routinary for people to buy one. Another advantage is that putting an

ad is a fairly quick process making it as good means for time-sensitive materials. However, it

also has tons of disadvantages. It may reach a large number of people but some of them will be

outside the target market of the firm. Another is that advertisements in newspapers would not

last long because newspapers are published daily. Another, as more people makeshift the inter-

net as their source for news, the need for newspapers becomes less (Kaser, 2013). As circula-

tion and readership figures are commonly available, newspapers allow you to convey a detailed

message on a given day as a group, and at short notice, to a media audience whose size and

composition are normally known. Space is usually sold by the single-column centimeter, and in

multiple thereof. A wide variety of special positions is usually available, as is classified o semi-

display advertising (Burton & Ryan, 1890).

Magazines

Usage of magazine to advertise is another popular form. One of the biggest advantages

of advertising thru magazines is that it gets to aim and pick the specific market it wants. Say K-

Zone, the firm will directly advertise its products to young lads addicted to this magazine. An-

other example is Family Circle which targets people with families who are trying to juggle their

duties and responsibilities in their homes and works. Unlike newspapers, magazines have a

longer life span because consumers usually keep them in their repositories and read through

them again once in a while making the ads last. On the downside, it is more expensive than

newspaper advertising and takes more time in producing and placing ads (Kaser, 2013). Maga-

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zines grant you the probability of delivering an accurate message. For there is a vast variety in

magazine format, size, number of pages, printing quality, color availability and advertising facili-

ties, the actual manner of delivery can differ widely. Space is ordinarily sold by the page, and in

fractions thereof, and by a range of special positions, e.g. inside front cover or facing matter

may be available (Burton & Ryan, 1890).

Direct Mail

Direct mailing is very effective because business could personalize everything producing

a positive response from the people. In this manner, a connection is built between the con-

sumers and owners encouraging the buyers to embrace the firm's products. This is also advan-

tageous because it is hidden from the competitors leading to a slow response from the enemies.

However, direct mailing's biggest disadvantage is that people may consider it as a junk mail

without reading it or even glancing at all. Aside from that, it can also be quite expensive (Kaser,

2013).

Flyers and Brochures

Flyers are used in every way possible. They can be distributed, placed in a car, or can

come hand-in-hand with different things. It can be used to promote events, activities, products

and services to a large crowd due to its inexpensiveness. Brochures, on the other hand, are

more colorful and informative for it contains more details compared to flyers. They are also both

cost-effective forms of advertising. However, both are often misplaced and ignored by people

without interest. People become more inclined to internet leading to the less usefulness of flyers

and brochures (Kaser, 2013).

Outdoor Advertising

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Outdoor advertising is also another media in advertising. It can be in the form of bill-

boards, tarpaulins, or ads on the buses. It can be signs in malls, arenas, on buildings and the

like. This is very effective because it reaches a broad market and it lasts longer than most of the

media. It provides a wide exposure thus garnering more consumers. One must always consider

the location in outdoor advertising so that it could make a greater impact to the business (Kaser,

2013).

II. Alternative Forms of Advertising Media

Transit Advertising

This kind of advertising is meant for individuals or consumers who are “exposed to

commercial facilities” (Belch & Belch, 2004, p. 440). It involves ads placed in the interior or

exterior of transportation automobiles. This kind of advertising is associated with billboard

advertising. There are two sorts of transit advertising: digital signage and vehicle wrap. Some

automobiles use digital signage. Digital signage enables a vehicle to change its message so the

cost of advertising can be minimized. Vehicle wraps, on the other hand, are ads that cover or

enclose the entire vehicle. This kind of advertisement is most effective when the products to be

marketed are aimed to the people living in cities. The downside of transit advertising is that ads

can be disregarded since people are often too busy to look at them. Companies and advertisers

must think of a way for their ads to be striking and brief (Kaser, 2013). According to Belch and

Belch (2004), there are three types of transit advertising: inside cards, outside posters, and

terminal posters (p. 441).

Aerial Advertising

Ever saw of a plane swirling and “writing messages” in the sky? Or a banner hooked

onto planes? That is called aerial advertising. Stadiums, beaches, and leisure places are the

most common venues in which this kind of advertisement is found. Its main purpose is to

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capture the interest of its target market (Kaser, 2013). Generally, aerial advertising is a kind of

outdoor advertising. It is not costly and efficient in promoting their products to their prospective

customers (Belch & Belch, 2004).

Cinema Advertising

Before the movie starts in theaters, there are commercials which run on the big screen.

This kind of advertising is called cinema advertising. Advertisers generally distinguish their

target market based on a film’s rating (Kaser, 2013). Miranda (1987) stated that advertisements

that are placed on the big screen “have the advantage of having captive audiences” (p. 175).

The moviegoers have no choice but to watch the advertisements played on the screen.

Product Placement Advertising

When a business’ product is shown or mentioned in a specific television show, movie,

drama, or other forms of entertainment, the type of advertising used is called product

placement. This is also known as brand placement advertising because particular brands are

being promoted. To decrease the brand ignorance, companies pay for this type of advertisement

on famous television shows or movies (Kaser, 2013). This type of advertisement is aimed at the

viewers who tend to ignore commercials (Belch & Belch, 2004).

Directory Advertising

The kind of advertisement that uses telephone directories is called directory advertising.

Directories also known as yellow pages are a collection of records of businesses’ and their

respective contact numbers (Kaser, 2013). It is a medium that consumers use to find for goods

or services. Businesses’ goods and services are organized in directories and are useful for

customers who are seeking for different product options (Miranda, 1987).

Online Advertising

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This is a type of advertisement that uses World Wide Web to convey messages to its

target customers: In Email Advertising, companies collect e-mail information from their

customers and possible customers so that their business can easily promote their products by

sending prospective customers messages by e-mail. However e-mail advertisement gets a bad

reputation because of spam messages – mass sending of redundant online messages. Banner

and Pop-up Advertising is also referred as display ads. On the other hand, pop-up

advertisements are also boxes that come out from nowhere and are said to be bothersome ads.

In Search Engine Advertising, an advertiser pays a search engine to position advertisements

close to the search results that are relevant to their product. Websites wherein and individual or

a business publishes different kinds of posts/entries that are meant to be read by the public are

called blogs. The different kinds of posts include opinion on varied topics, criticisms or ratings

about a product and reviews. Businesses also use social media - websites where people share

and get information - to advertise their products. Social media sites include Facebook, YouTube,

Twitter, and etc. Through social media, companies can reach out to their potential target

markets (Kaser, 2013).

Advantages and Disadvantages of the Different Mediums in Business

Television

Its ability to incorporate some of the senses such as sound, sight and to put into display

graphics and motion makes television advertising appealing and an effective medium of

advertisement. Because of the aforementioned attributes, it leaves a huge impact on the

audience especially if it is shown repetitively during tv show breaks. Another advantage is that

goods can be physically demonstrated on air allowing its function to be better understood and

ultimately making it more attractive to the viewers. With such a vast audience - given the fact

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that it’s hard to find a household without a television – the message that the advertisement

contains can be easily dispersed not only locally but also internationally.

A major drawback of TV ads is its expensiveness. Advertisers have to pay for the costly

production of the advertisements. Aside from that, they have to pay based on the ad’s time slot

and also its length. With that being said, the information that it can relay to its consumers are

only limited. Also, despite of having a large audience, it may not reach its target market and

might only be watched by uninterested individuals resulting to “waste coverage” (Quera, 1973,

p. 71).

Radio

With the radio being accessible in almost every household, the sales of the goods

marketed on air boomed. Demographics can be easily reached by segmenting them thus,

making the advertisements more effective. Example of this is using a classic rock station to

reach the older part of the population and using a pop rock station to reach the teens or young

ones. Also like online advertising, it can reach people globally through the advancement of

technology like internet radio broadcast.

The major drawback is that it only appeals to the sense of hearing and can only deliver

audio advertisements. Most of the time listeners are doing other things while in tune on the

radio, making it hard to capture their attention. Another concern is that people can easily switch

stations whenever they like to (Kaser, 2013).

Direct Mail

The advantage of direct mails lies in its selectivity wherein prospective buyers can be

reached through it. As a result of its selectivity, there’d be no waste because those who are only

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interested or only those in the target market will receive such mails. But for this kind of ad to be

truly effective, advertisers should have a reliable list of mails. Another advantage of direct mails

is its ability to be personalized. Though it is done by mass production, it can be tweaked a little

to add the name and address of the consumer and other details that would make it appealing.

Timing is also an advantage of direct mails because it can be sent on the most convenient days

where buyers are most likely in need of such goods and services. Lastly, adding “reply paid-

postcards or envelopes can stimulate replies” thus, increasing the possibility of consumer

purchase or involvement.

Direct mails also have its disadvantages. One big disadvantage is the cost for producing

and delivering it. Because it is sent to a lot people, surely it would also mean that each mail has

its own individual cost. Another disadvantage is that it can also be ignored or go unnoticed when

there are a lot of other direct mails sent to the prospective buyer. A lot of it direct mails means

competition for the consumer’s attention (Burton & Ryan, 1980, pp. 5-7).

Magazines

Its ability to connect to its niche market is one of the advantages of magazine

advertising. Different magazines such as Candy Magazine appeal to teens making it ideal to

post advertisements that aim to captivate the younger audience. Ads in magazines are also

long-lived because it is kept by people and also other businesses such as salon thus, allowing it

to be continually seen.

Disadvantages of magazine advertising would be its costly nature. It can also be easily

overlooked just like in newspapers because more advertisements mean competition for the

reader’s attention. Lastly, magazine advertisements require more time to be processed or

published (Kaser, 2013).

Transit

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A big advantage of transit advertising is its minimal cost because those who pay the

fares contribute to the total amount of placing the ads in the public transportation. Another

advantage is that due to commuters like office workers and students that take the same route

every day, they are also exposed to the same ads every day making them familiar and aware of

the brand. It should also be noted that because most people travel for quite a long time, they

feel bored and find a way to ease boredom. This allows transit advertisements to be noticed and

long rides also mean that more time for the commuters to be exposed in the said

advertisements. Lastly, the use of color captures the interest of prospective buyers.

The drawback of transit advertising is that it can’t actually focus on a specific target

market because it is available for a large audience including some uninterested individuals.

Those in other areas who are not using the kind of transits where the ads are placed are not

reached too. Because of that, it is just treated as a supplementary form of advertising and is not

chosen by most advertisers (Burton & Ryan, 1980).

Newspaper

Newspaper advertising has an advantage because it is available for all groups people –

may be it low earning or high earning individuals. Its large audience also makes the message of

the ads easily dispersed. It also has a minimal cost of producing and it is delivered daily making

it easy to modify or recreate. Also, advertisements can be organized with ease because little

amount of time is only needed to get it published and be seen for the general audience. Lastly,

connecting with geographical markets can also be attained because newspaper ads.

A drawback of newspaper advertisements is that it only has a short life span. Because

newspapers are published daily, its content changes along with the ads that it contains. Another

is although is has only minimal cost locally, national newspaper ads on the other hand can be

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expensive. There might also be a waste in the production because uninterested individuals also

take hold of the said newspaper ads. (Quera, 1973).

Outdoor

Outdoor advertising can be advantageous in a lot of ways. One of which it is usually

hard to notice in the case of outdoor ads such as billboards. Another thing is that it can be seen

even by people who are not at home or in a steady place because it can be found while

travelling, or whenever people are headed somewhere. Also, businesses that are found locally

can very much take advantage to these kinds of ads because people passing by like foreigners

will be given an insight of what they has to offer. Outdoor advertising can also be very appealing

by taking advantage of its color and its general design. Unlike most of the ads in the newspaper,

those that are displayed outdoors are colored, making it more appealing and eye-catching.

Other advantage that can be acquired from outdoor advertising is that it can be viewed

whenever and for a longer period of time.

The downside of outdoor advertising is that it is limited. Though it may occupy a lot of

space making it more visible for prospective buyers, it can only contain limited information. With

that being said, there are no sufficient details available about a certain product or service.

Outdoor advertisements are usually designed to be absorbed by people in only one look.

Advertisers have to deal with the fact that possible customers that see those ads have divided

attention. They may be driving or in a hurry which may also make it unnoticed or ignored

(Burton & Ryan, 1980).

Flyers and Brochures

An advantage of flyers and brochures is that it can be easily distributed. Also, they cost

less compared to other forms of advertisements. With appealing design and readable format,

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messages about goods and services could be communicated. Prospective consumers can also

be reached with flyers and brochures.

A disadvantage of flyers and brochures is that it also easily overlooked and can be

misplaced effortlessly. It is also hard to measure its usefulness in advertising because it can be

placed almost anywhere. Another is that target markets are less likely to be reached because

flyers and brochures are given randomly to anyone. With the use of the internet, people tend to

go there for details about good and services rather than to rely on flyers and brochures (Kaser,

2013).

Effect of Advertising on Consumer Buying Behavior

It is important to know that Advertising creates an impact to the Economy. The impact as

described by Arens, Weigold and Arens is “like a break shot in billiards or pool”. It makes a

ripple-like effect among interrelated economic aspects (p. 65). The first and primary receiver of

the impact of Advertising would be the customers as it is widely known that Advertisements are

indeed intended for consumers. Now, the matter at hand is how specifically Advertising affect

consumer buying behavior.

Advertising’s role, most often, is to put a good or service into the consumer’s awareness

especially when the product is new in the market. It is a way by which a product is introduced to

the consumer. As Advertising provides information about the good or service and as it does it

becomes the “voice of the product” (Burton and Purvis, 1987). A concrete example of this would

be Infomercials. Infomercials are usually long commercials that give the consumer various

specifics regarding the product’s features, benefits and composition (Kaser, 2013)

Eventually, these Advertisements build an image of the product’s quality to the consumer’s

perception by crafting a positive image of it. Through Advertisements, consumers are able to

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filter out which products can satisfy their self-interest, needs and wants (Kaser, 2013).

Advertisements, in a way, become references to which consumers consult to in comparing one

product to another, for example: price standards, and selecting which they deem pleases them

best.

At this point, it is apparent that Advertising can stimulate product demand from

consumers, which is related to the essential purpose of Advertising: to “increase purchases” as

according to Davis (p. 203). Advertisements may serve as reminders to existing users of the

product. Reminders are needed for two reasons. First is because “human memory is short and

frequent reminders are necessary” (Davis, p. 191). It is a way of keeping customers loyal to

patronizing the product. And second is to increase Frequency of use of the product. Frequency,

meaning the number of times the consumer utilizes the product. It is also important to take not

that constant reminders through advertisements, establishes the reputation of a product to the

consumer’s mind. It gives the consumer continuous assurance of the product’s quality and

benefits. At the same time, it can secure the consumer’s loyalty towards the business’ product.

Another effect of Advertisements is that it may encourage purchase from new users. By

disclosing all the benefits a product may give, consumers may be enticed to give the product a

try. Lastly, an advertisement may encourage purchase from competitor’s consumer. Through

Advertising, a business may persuade a customer to change his/her brand preference. (Davis,

1988)

Besides putting a product into the consumer’s awareness, Advertisements try to reach

the emotional depths of the consumers. It is also important to note that the impact that

Advertising gives the emotional aspect of the consumer greatly influences the consumer’s

buying behavior. According to the study held by The International Institute for Science,

Technology and Education (IISTE) shown in Abideen’s research, there is a strong connection

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between consumer’s emotional response with consumer’s buying behavior. It is noted that an

effective advertisement should be able to produce a positive attitude out from the consumer and

such attitude should lead the consumer to buy the product being advertised. This is possible if

the advertisement is able to influence factors that trigger emotional responses. These factors

are: the consumer’s Pleasure, Arousal, and Dominance and Recall (2011).

In general, Advertising forms the product a personality or characteristic by informing

customers about its unique and beneficial features for it to stand out from other brands in the

same field. At the same time it aims to create an emphatic relationship between the product and

the consumer by making a positive impact to the emotional depths of the consumer in order to

induce purchase and/or secure the consumer’s loyalty to the brand.

Effect of Advertising in Business Income

People may consider advertising as an added cost which might cause many to assume

that it is the reason why a product becomes so expensive, but it is not always the case.

Advertising is more of a substitute for other expenses rather than an added cost, because there

will always be the need to communicate with the consumers. Hence, if a product does not get

advertised, the business would most likely lose sales since the products are not getting known

to the consumers (White, 2000). Advertising is a cost but it is not true that when someone stops

advertising, the prices of such products will become lower, because with competition products

being advertised will still have low prices (Arens & Weigold, 2013). It would be economic suicide

to push products to have high prices, because due to competition other businesses would set

lower prices and therefore have more costumers.

As we have said earlier, advertising is a cost but if advertising was a cost that made

products more expensive, then no business would use it since it would deplete their profits. But

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since advertising is used almost all the time in the business sector, then it would be logical to

say that advertising pays back more than its cost. According to the abundance principle,

advertising serves two purposes: first is that it keeps consumers informed about the different

uses of a certain product. Second is that it helps businesses compete against each other for

income from customers (Arens & Weigold, 2013).

Advertising is done to give an added value to a product, but it does not

necessarily mean that a product being advertised is better than a product being not advertised.

There are numerous situations wherein the unadvertised product is considerably more costly

than an advertised product and vice versa. Advertising associated with a product having added

value, in a way, connotes that it would generate a positive image for that particular product. The

positive image itself is an added quality to the commodity itself. Also by making a product

known, the consumers will be able to be more enticed into buying that certain product.

Associating a product with a desirable image would also give the consumers satisfaction. Since

more consumers would be able to know about a certain product, there will be a higher

percentage of them buying a product, hence income for the business. Therefore, adding value

to a product contributes the self-interests of both the consumer and the advertiser (Arens &

Weigold, 2013).

Brand equity is how a customer or a consumer perceives a product’s brand, whether it is

a popular, high-quality brand or an infamous, poor-quality brand. How a customer perceives a

certain product’s brand is important because this is how they decide whether or not they should

buy a product (Gunelius, 2014). As David Aaker defines it, “A set of assets and liabilities linked

to a brand, its name and symbol, that adds to or subtracts from the value provided by a product

or service to a firm and/or to that firm’s customers” (1991). Advertising gives the business the

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opportunity to develop new brands or improve existing ones. Once these products are

advertised skillfully, it becomes more desirable to a consumer, which means the demand for that

product would increase. If a demand for a certain product increases, then that means there will

be an increase in sales, therefore, more income will flow into the business (Arens & Weigold,

2013).

Another aspect of advertising that would entice a customer to buy is whether or not the

advertised product’s reputation is being managed well. A solid brand reputation would precisely

affect a business’ income because customers would feel safe and secure to buy those products

(Bradley, 2014). To enhance the value of a product in a way that the customer feels secure in

buying it, data should be gathered about certain customer expectations so as to get the right

information about which they perceive as a high-quality products and those they do not (Nichols,

2013). In a way they are being given a “reason” to buy such products. Making a product more

known and enhancing its image would make that product more desirable which means more

people might be willing to buy it, hence the increased probability of business’ income increasing

as well (Shimp, 2010).

It is therefore important to be able to convey the message through an effective medium

because how the consumers respond to a business’ product is directly related to how its income

will be measured. It has also been proven that emotional responses towards advertising may

contribute to sales and revenue of a business. “By creating ads that surprise, that entertain, and

even make you cry, advertisers aim to help you remember the product, build positive

associations with the brand and ultimately drive sales” (McDuff, et al., p. 1).

III. Methodology

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A library research, taken from its name, makes it evident that information would most

likely be taken from a source. Although, before looking for a source, the researchers needed to

organize the specificities of the topics they were going to discuss in the paper to be able to look

for the right information. It is not right, or rather, a bad practice to be looking for a source before

knowing what is actually being looked for. After the researchers prepared the topics to be

discussed, the first place they went to is called the Miguel de Benavides Library located at

University of Santo Tomas, Philippines. The researchers used the Online Public Access Catalog

(OPAC). Typing the key words associated with the specific topics they had, they were able to

look for the necessary sources. Some books were being searched for without the use of the

OPAC – These books were located on the same shelves the other books, using the OPAC, were

found. The researchers picked a book with a title associated to their topic and scanned the table

of contents to know whether or not that book had the data they needed. Afterwards, they wrote

down the necessary details for the references and citation to be made for the research paper,

and had the pages photocopied for further interpretation of the data collected.

Another instrument for collecting data is the internet, and it is known to have a vast array

of information and a faster mode of researching, therefore the researchers explored for more

data needed using online sources. They validated these online sources by checking the

credibility of the authors who have provided the said data, and if the authors cited the sources

they used.

The researchers also used ‘interviewing’ as an instrument for data gathering. They wrote

a formal letter to Mr Mario Angeles, a professor in Marketing at University of Santo Tomas, with

a questionnaire attached to the letter to be able to aid him in preparing for the interview

beforehand. The researchers then had the interview on November 7, 2014 at St. Raymund’s

building that approximately started at 12nn and ended at 12:30. They used recorders to be able

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to better interpret the information Mr Angeles was trying to convey. Although recorders were

used, the researchers still took down notes during the interview.

IV. Discussion of Results

Business owners use Advertising as a way of communicating their value proposition to

the consumers. It is a form or communication by which they introduce and try to promote to

consumers their product in order to induce purchase. Business may bombard audience with

tons of advertisements in order to “push” their brand or products into the awareness of the

consumers. Or they may choose to do strategies such as “Buy 1 Take 1” in order to “pull” the

attention of the audience to the good or service being offered. Either way, the main objective of

Advertising to consumers is to trigger curiosity and to penetrate into their buying behavior in

order to encourage purchase from them.

Advertising may be both an expense and a way to increase income. It is an undeniable

part of selling expense as these advertisements truly incite costs. However, if an advertisement

is effective, the advertisement can give way to increase purchases and therefore the business’

income would increase. To be effective means, having able to give idea to the audience what

the product is and what it can do, can make an impact to the audience by convincing them that

this product is a need, and most importantly it can encourage purchase from the audience. The

effectiveness of an advertisement can be affected by a number of elements like: the endorser in

the ad, jingle, motion, colors and sounds. And if these elements are combined well, they can

contribute to the advertisement’s ability to enter and stay to the audience’s minds.

With regards to the advantages and disadvantages of the various mediums of

Advertisement, each has their corresponding benefits and drawbacks. The advantages may

outweigh the disadvantages or vice-versa depending on how a company delivers their

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advertisement to the audience. If an element such as colors is neglected, the advertisement

may turn out as an expense. But if an advertisement is for example, attractive and is able to

overcome clutter (other external distractions), it can be then be said that it has offset its

drawbacks and therefore has been a way to help increase sales.

As a result of the conducted library research and interview, it is found out that Television

and Radio are the most effective and efficient mediums. These two may be costly but their

ability to cover a wide range of audience offsets the said drawback. In addition, these two

mediums would never die out from existence. Households would continue relying on these two

technologies for information more than any other means. Therefore their inexistence is most

likely impossible. Lastly, these two mediums can be interactive. Audience’s attention is therefore

drawn to the medium thus advertisements may easily go through the audience’s awareness.

V. Conclusions and Recommendations

Conclusion

Advertising is considered as a cost, but this expense is outweighed by the benefits it

brings to the business. Although, benefits of certain advertised product might not always take

place, because it all depends on how the consumers respond to these advertisements. To be

able to effectively create a connection between the consumer and the product being advertised,

one should choose the right medium of advertisement. There are numerous mediums of

advertisement, from tiny mediums like flyers to the larger ones like billboards, each would have

their own advantages and disadvantages; but to be able to communicate the products to trigger

the increase of the demands of consumers, a business will have to choose the most effective

and efficient medium. With the right information about their consumers and the best medium,

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this will be able to satisfy their needs. Once their needs are satisfied, the demand of a certain

advertised product would increase. Therefore, this effect would increase sales, consequently

increasing income as well.

After much probing, the researchers learned that the most effective and efficient

mediums of advertisement is the Television and Radio. Television would not easily die out in the

Philippines, likewise with the radio; simply because most of the populace watch Television and

listen to the radio almost every single day. For example: the Eat Bulaga program is viewed by a

great number of impoverished Filipinos as a means of entertainment, and it is known that the

impoverished population here in the Philippines is considered as the majority. Radio is also

another form of entertainment when Television is not available. These are the most used

mediums of advertisement, therefore when businesses advertise products using these, they will

be able to effectively communicate their products with the majority of the populace. In effect, by

using an effective and efficient medium of advertising, a great number of people would become

aware of a product and since the advantages would outweigh the disadvantages, the probability

of purchasing that certain product would increase and so will business income.

Recommendations

After having conducted the study, the researchers highly recommend business owners

to advertise their brand, products, or services through Television or Radio. These two mediums

are the most effective since they cover a wide range of audience. Hence, they elicit a higher

percentage of purchase response from consumers. In terms of efficiency, despite the fact that

these two mediums are costly, their ability to reach a wider range of consumer outweighs.

To future researchers who might decide to conduct a similar study, the group recom-

mends them to find out what elements of Television and Radio contribute to the impact these

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two mediums make to consumers and how particularly these elements affect consumer pur-

chase behavior.

References

Abideen, Z.U. (2011). Effective Advertising and its Influence on Consumer Buying Behavior.

Retrieved from www.iiste.org/Journals/index.php

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Arens, W., Weigold, M., & Arens, C. (2013.) Contemporary Advertising and Integrated Marketing

Communications (14th ed.). New York, NY: McGraw-Hill/Irwin.

Belch, G. E., & Belch, M. A. (2004). Advertising and Promotion (6th ed.). New York, NY:

McGraw Hill/Irwin.

Bradley, J. C. (2014). The Impact of Advertising & Sales Promotion in Revenue. Retrieved from

http://smallbusiness.chron.com/impact-advertising-sales-promotion-revenue-59840.html

Burton, P.W., & Purvis, S. C. (1987) Which Ad Pulled Best? Licolnwood, IL: NTC Business

Books.

Burton, P.W., & Ryan, W. (1980). Advertising Fundamentals (3rd ed.). USA: Grid Publishing Inc.

Davis, M. (1981). The Effective Use of Advertising Media. London: Business Books, Ltd.

Davis, M. P. (1988). The Effective Use of Advertising (3rd ed.). London: Hutchinson Business.

Gunelius, S. (2014). Brand Equity Basics – Part 1: What Is Brand Equity? Retrieved from

https://aytm.com/blog/research-junction/brand-equity-basics-1/

Kaser, K. (2013). Advertising, Sales, and Promotion. Mason, OH: Cengage Learning.

Miranda, G. (1987). Advertising. Manila, PH: National Book Store, Inc.

Nichols, W. (2013). Advertising Analytics 2.0. Retrieved from http://hbr.org/2013/03/advertising-

analytics-20/ar/1

McDuff, D., Kaliouby, R. E., Kodra, E., & Larguinet, L. (2013). Do Emotions in Advertising Drive

Sales: Use of Facial Coding to Understand the Relationship Between Ads and Sales

Effectiveness. Retrieved from

http://web.media.mit.edu/~djmcduff/assets/publications/Mcduff_2013Emotions.pdf

O' Guinn, T. C., Allen, T. C., & Semenik, R. J. (1998). Advertising. Cincinnati, OH: Southern

Western College Publishing.

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Shimp, T. (2010). Advertising Promotion and Other Aspects of Integrated Marketing

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Appendices

Interview Questions:

1. How do you define advertising?

2. Do you regard advertising as an expense or a way to increase income/sales?

3. Do you think advertising plays an important role in consumer’s purchasing behaviour?

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4. How do you think advertising affects a business’ income?

5. In your perspective, what are the advantages & disadvantages of the following major

mediums:

a. Television

b. Radio

c. Newspaper

d. Flyers/brochures

e. Magazines

f. Online

g. Print (billboards, etc.)

6. What, then, do you consider as the most effective and efficient medium of advertisement?

Why?

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Interview Pictures

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About the Researchers:

Christiane Justine Parreñas is a second year Accounting student in Univerisity of Santo Tomas.

He is an optimistic lad. He asks for God's help when he feels down. He plays an active role in

social transformation

Dessie Joy C. Radores is a sophomore student form The University of Santo Tomas. She is

taking up BS Accountancy and is also aspiring to graduate with Latin Honors someday. She

loves reading books but admits that she finds writing especially academic writing really

challenging. Despite her many shortcomings, she still tries her best to fill the gaps in her

knowledge for she finds pleasure in learning.

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Hannah Elise S. Tan, an eighteen-year old student, began her studies for primary and

secondary education at MGC New Life Christian Academy, graduating with academic

excellence. She has not only merited in the educational aspects but in sports activities as well.

This exemplifies her skill in time management, as well as the determination and will to seek

excellence in all the facets she is involved with. At present, she is studying as a sophomore with

BS Accountancy as her course at the University of Santo Tomas.

Mary Hazelred C. Tangcangco attended her primary and secondary education at St. Mary’s

College, Quezon City. She graduated with high honors and subject excellence in various

subjects. She is currently a second year student studying Bachelor of Science in Accountancy at

the University of Santo Tomas. She hopes to be a certified public accountant by 2018.

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Marionne Kim B. Tecson is a second year student in the University of Santo Tomas. She is

currently taking up BS Accountancy as her course. Kim aspires to be a successful CPA

someday. She also dreams to have her own clothing business and make a name in the fashion

industry. Currently, Kim is residing in Quezon City with her parents and two siblings.