CLASS ADVERTISING [EDocFind.info]

A

Grand Project

On

CLASS ADVERTISING

In partial fulfillment of the requirement of two years full time

Masters of Business Administration (MBA) Programme (2008-2010)

Of Gujarat University, Ahmedabad

UNDER GUIDANCE OF: PREPARED BY: Juhi Shah Chetan Pandya Professor ROLL NO. 8066, MBA (2008-2010)

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N.R INSTITUTE OF BUSINESS MANAGEMENTGLS CAMPUS, AHMEDABAD

GUJARAT UNIVERSITY

CERTIFICATE

This is to certify that Mr. CHETAN PANDYA , ROLL NO : 8066, student of

NAVNITLAL RANCHODLAL INSTITUTE OF BUSINESS MANAGEMENT (GLS-

MBA) has successfully completed his grand project on “CLASS ADVERTISING ” in

partial fulfilment of the MBA program of GUJARAT UNIVERSITY. This is his original

work and has not been submitted elsewhere.

__________________ __________________

Dr.Hitesh Ruparel Juhi Shah (Director) Professor and Project guide

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PREFACE

As a part of the course curriculum, the MBA students are required to prepare a grand

project in their final semester. The objective behind the preparation of this report is to relate

the Managerial concepts and theories taught in the classroom to the practical application, to

develop the presentation skills and to learn how to make effective reports.

The topic of my project was “CLASS ADVERTISING”. Here I studied the exposure of

different socio economic classes to various media.

This report is entirely prepared for the academic purpose and in spite of my best efforts

there may be errors for which I take the responsibility.

GLS – NRIBM CHETAN PANDYA

Ahmedabad.

MBA (2008-10)

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ACKNOWLEDGEMENT

In the earnest attempt to prepare this report, Prof. Juhi Shah has played a pivotal role and

has provided constant motivation as a guide. I am truly obliged and indebted to her for the

time and focus she provided.

Further, I would like to extend my acknowledgement to Dr. Hitesh Ruparel for providing

the environment and infrastructure needed to accomplish this task. As a Director in Charge

of the institute, he has thoroughly helped and counseled at each step of this process.

Above all I am also very thankful to all people who directly or indirectly have proved to be

beneficial in completing the project.

Last but not the least, I am grateful to our institute, NR Institute of Business Management

and Gujarat Law Society including all their members and participants for providing such

excellent infrastructure equipped with ultra modern facilities which served as a great source

of convenience and information.

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CONTENTSPART I

Acknowlegement………………………………………………………..i

Executive Summary…………………………………………………….ii

The Indian Media & Entertainment Industry

An Overview……………………………………………………….1

Categories and Growth………………………………………….4

Advertising Industry

An Overview………………………………………………………10

As a part of IE&M…………………………………………….....12

New Trends……………………………………………………....16

Scope of Ad Industry in India………………………………....17

PART II

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Mass V/S Class Advertising…………………………………………..18

Shift from Mass to Class………………………………………………23

Class Advertising: Meaning…………………………………………..26

SEC: A debate…………………………………………………………...34

SEC: Understanding Class

Demographics……………………………………..………39

Media………………………………………………………..44

Understanding target and media selection…………..48

SEC: Media Preference

Research Study……………………………………………………

Findings……………………………………………………………..

PART III

Conclusion………………………………………………………..

Bibliography……………………………………………………...

Webography………………………………………………………

Glossary……………………………………………………………

Annexure

Questionnaire……………………………………………..

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EXECUTIVE SUMMARYWith a view to cater to the need of the advertiser and know the insights of the

advertising industry, the project report covers one of the main aspects that has

been one of the much talked about area of consumer segmentation: Socio-

Economic Classification.

The project report covers the overview of Indian Entertainment & Media industry. It

is one of the fastest growing sectors of the Indian Economy. Further, the Indian

advertising industry as a part of IE&M industry forms 38%, estimated at roughly

around Rs. 17000 crores at present.

With the advent of many media reaching to the bottom of the pyramid, it is very

essential for an advertiser to choose the right media that reaches right people at

right time. However it is not an easy thing to predict as to what would be the best

medium. For this purpose, a new concept was developed The SEC classification,

which was created in 1988, ratified by Market Research Society of India (MRSI)

and is used by most media researchers and brand managers to understand the

Indian consuming class

SEC, the classification of Indian consumers, is based on two parameters:

Occupation and Education (Urban and Rural). For years, marketers followed mass

advertising but then with the increasing competition and rapid media development

and consumer shift in preference, there is a shift from mass advertising to class

advertising. Despite a debate over the reliability of the SEC, it continues to be the

top rated choice of the advertiser for the classification of the Indian consumer

market.

Class advertising requires lot of insights into the area to know the preference of the

person belonging to a particular class. For one such purpose, the project report

shows a survey conducted on the basis of SEC showing the overall media selection

or the inclination of the mass of the class and thereby making it easier for the

advertiser to select the media for advertising. Also the comparative preference

model, that calculates the overall preference of the people based on four

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parameters Reliability, Effectiveness, Penetration and Preference of class from A1

to E2 (Urban) helps the advertiser to select the medium to advertise based on his

target class and also with the Inter-class and Intra-class media comparision with

the weighted score.

The project is concluded with the brief strategies/ suggestions and the survey

reports that would be of immense help to identify and choose the right media for the

advertiser based on SEC.

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Research Methodology

OBJECTIVE: To study and provide an insight into advertising with respect to the media

preference based on Socio-Economic Classification. To highlight the shift in focus from mass advertising to class advertising. To arrive at the commonest medium preferred by each SE class by

application of research techniques like measurement and scaling, data interpretation, evaluation, strategy formulation for the advertisers to choose the right medium to attract specific class customers based on my primary survey.

To help advertisers choose the right medium to attract specific class customers based on the primary survey. By providing strategic solution to tap the untapped potential markets

SCOPE:

The project will cover an overview of Indian entertainment and media industry and detailed study about Indian advertising industry. The main area of focus will be on socio-economic classification (SEC) i.e, Urban and rural, of the consumers. A primary survey will be done by collecting primary information thorough questionnaire. Further data analysis and data presentation would be done in order to arrive at the common preference of SEC class for particular advertising media out of Print, TV, Radio, Out of Home (OOH), internet based on weighted average preference model.

LIMITATIONS: Time limit Cost constraint Inability of covering all the aspects related to the Indian Media and

Entertainment sector as well as advertising industry due to its wide scope

PROJECT DETAILS:

AREA OF STUDY

Indian Entertainment Industry: Origin and History Growth Drivers

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Indian Advertising Industry: Introduction Size of the industry Shift of focus from Mass to Class SEC: Demographic study SEC: Media preference through research study Research Findings Strategic Solution

RESEARCH METHODOLOGY

RESEARCH DESIGN: Exploratory ResearchRESEARCH DATA SOURCE: Primary Source: Questionnaires

Secondary Source: Internet, publication, journals, newspapers, magazines, Business Review, Periodicals, etc.

RESEARCH INSTRUMENT: QuestionnaireSAMPLE METHOD: Stratified Random Sampling, Judgment sampling, Convenience samplingSAMPLE SIZE: 30 for each class (8 classes) = 240

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An overview

Changing consumption patterns, rising aspiration levels and increase in the number

of middle-income and upper-income households has led to growth in non-

discretionary sectors like retail, telecom, and hotels among other sectors. Media

sector is no exception to the trend.

The Indian media and entertainment sector is one of the fastest growing sectors of

the country and is expected to grow at an annual rate of 18% till the year 2011. It

has seen many changes in terms of economic, demographic, technological,

liberalization and others in the past decade which has led to the higher chances of

growth to the industry.

The Economic influence: The Indian Entertainment and Media (E&M) industry

has out-performed the Indian economy and is one of the fastest growing sectors in

India. The E&M industry generally tends to grow faster when the economy is

expanding. The Indian economy has been growing at a fast clip over the last few

years, and the income levels too have been experiencing a high growth rate. The

increasing rate of urbanization, the penetration of television and radio industry in

the rural areas with the help of the technology and the rising levels of incomes of

the people in India has facilitated the growth rate of Media and Entertainment

industry in India.

Over the past few years, India has registered the fastest growth among major

democracies. It represents the fourth largest economy in terms of ''purchasing

power parity''. Thus, E&M industry is also expected to significantly benefit from this

fast economic growth

The Demographic Influence: Over the years, spending power has steadily

increased in India. Lifestyle changes brought about by changes in economic activity

are also spurring growth of the Indian E&M industry. In urban areas of India, the

consumer mindset is changing due to increased exposure to global influences via

media, and other interactions leading to higher aspirations. The Indian rural market

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with its vast size of nearly three times of urban India, also offers a huge opportunity

that has remained largely untapped due to reasons of accessibility and affordability.

Liberalizing Foreign Investment: Today India has probably one of the most

liberal investment regimes amongst the emerging economies with a conducive FDI

environment. The E&M industry has significantly benefited from this liberal regime.

In 2005, FDI was permitted in two important sectors - print media and radio. Films,

television and other segments are already open to foreign investment. In the print

media segment, 100% FDI is now allowed for non-news publications and 26% FDI

is allowed for news publications. Printings of facsimile editions of foreign journals

are now also allowed in India. This policy is helping foreign journals save on the

cost of distribution while servicing the Indian market audiences more effectively.

The FM radio sector too was opened for foreign investment with 20% FDI being

allowed.

The Technological Influence: India is witnessing a revolution in this sector with

the emergence of new technologies. The IEM has moved from the growth phase to

the inflection phase. This growth is led by better technologies, higher quality

content, higher penetration and suitable regulations. Exciting new developments in

the technologies used in Media and Entertainment industry are taking place.

The change is already being witnessed from AM radio to FM radio, single screen

theatres to multiplexes, and basic cable analog to broadband internet. Going

forward, DTH, IP-TV, mobile marketing, gaming zones, and interactive television

are going to hit the markets thereby changing the media scenario.

Animations, multiplexes, new distribution channels, the use of Internet and

personalized communication with the help of the same, are redefining the media

and entertainment industry. All these factors will favour the growth of Media and

Entertainment industry in India. Many companies are taking initiatives to set up

their business all over with the help of such technology. One such company is city

based Net Hot Zone Media Pvt. Limited which has come up with first of its kind

concept of personalized communication with the customers providing them free

internet service while offering part of screen space on computer to the advertisers

by setting up the kiosks at various places in the city.

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Thus given the high rate of economic growth and technological developments,

Indian Media and Entertainment industry is poised to register a tremendous growth

in the coming years.

Low Media Penetration in Lower SECs: Though media penetration is poor in

lower socio-economic classes, the absolute numbers are much higher for these

classes. Hence, efforts to increase the penetration even slightly in these lower

socio-economic classes are likely to deliver much higher results, simply due to the

higher base.

Low Ad Spends: Indian advertising spends 0.34% of GDP, which is very low as

compared to other developed and developing countries. Advertising revenues are

vital for the growth of this industry. While today the low ad spends may seem like a

challenge before the E&M industry, it also throws open immense potential for

growth. This potential can be estimated by the fact that even if India was to reach

the global average, advertising revenues would at least double the current

revenues.

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Categories and Growth

The Indian

Entertainment

and Media

Industry has

recorded a

growth of 17

per cent in 2007, over 2006. In the last four years

(2004-2007), the industry recorded a cumulative

growth of 18% on an overall basis. However

though Indian Entertainment and Media (IEM) is

one of the fastest growing sectors in the

economy, it is just 0.7% of the global US$ 1.4

trillion media industry

The IEM is divided into different segment like Television, print, films, radio, music

and internet. Out of home advertising (OOH) and live entertainment are too gaining

importance.

As per PwC, India will be one of the key drivers in pushing the global entertainment

and media industry. As mentioned above, it is expected to grow at a CAGR of 18%

till 2011 to touch Rs 1 trillion from Rs 436 b in 2006.

The expected growth for the year 2008-2011 can be known from the following chart:

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The IE&M Industry is expected to grow at a CAGR of 18% till 2011 to touch Rs 1 trillion from Rs 436 b in 2006.

Given below is the breakup of the revenues among the various segments and the

expected growth rate till 2011. Television and print would continue to remain the

largest segments. Internet, radio and OOH would also witness high growth rates.

However, Internet penetration would take time to mature.

Present and projected growth in E&M industry* (in Rs crore)

2006 2007 2008 2009 2010 2011 CAGR

Television 19,120 21,900 26,600 33,100 43,100 51,900 22%

Print Media 12,790 14,400 16,200 18,200 20,600 23,200 13%

Film Entertainment 8,450 9,600 11,200 12,600 14,600 17,500 16%

Radio 500 600 800 1,100 1,400 1,700 28%

Music 720 740 750 760 800 870 4%

OHH Advertising 1,000 1,200 1,400 1,600 1,900 2,150 17%

Live Entertainment 900 1,100 1,300 1,600 1,800 1,900 16%

Internet 160 270 420 600 820 950 43.00%

Total* 43,640 49810 58,670 69,560 8,5020 100,170 18%

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Source: Industry estimates & PwC analysis

*Note: The figures taken above include only the legitimate revenues in each segment. Revenues from the Animation and Gaming segments have not been included in the industry size as these are traditionally included in the Indian IT and Software Revenues

Television Industry

Amongst the segments of the industry, the television industry will continue to

contribute the largest share. Subscription revenues are projected to be the key

growth driver and will increase both from the number of pay TV homes as well as

increased subscription rates. New distribution platforms like DTH and IPTV will only

increase the subscriber base and push up subscription revenues.

Print Media Industry

The print media industry, comprising of newspaper and magazine publishing, is

projected to grow at 13% (CAGR) from year 2006-2011. A booming Indian

economy, growing need for content and government initiatives that have opened up

the sector to foreign investment are driving growth in print media. With the literate

population on the rise, more people in rural and urban areas are reading

newspapers and magazines today. Also, there is more interest in India amongst the

global investor community. This leads to the demand for more Indian content from

India.

Film Entertainment

The Indian film entertainment industry is projected to grow from the present size of

Rs 9600 crores to Rs. 17500 crores. Advancements in technology are helping the

Indian film industry in all the spheres-film production, film exhibition and marketing.

The industry is getting increasingly corporative.

Radio

The radio industry, fuelled by the positive FM-II Radio Policy, is projected to grow

with the highest CAGR till the year 2011. In 2005, the government opened up the

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sector to foreign investment along with migration to a revenue-share scheme.

These factors along with privatization of a large number of frequencies as part of

the FM II Radio Policy will drive growth. New concepts like satellite radio, visual

radio and community radio have also begun to hit the market.

Music

While physical sales in the music industry continue to be hampered by piracy and

falling prices, digital music has witnessed a surge that will propel this industry in the

next five years. The total music industry is currently estimated to be worth around

Rs 740 crore and is expected to grow at a CAGR of 4% in the next five years.

Out Of Home

Globally, outdoor advertising is very popular as corporations abroad have

recognized the outdoor media as a very popular medium of advertising. But in India

in spite of OOH being very effective and very economical in comparison to

newspapers and television it has not gained momentum as compared to other

segments. However, OOH advertising is expected to be the fourth largest segment

of IEM industry by the year 2011.

Live entertainment

Live entertainment is a huge source of revenue for the global Media and

Entertainment industry. Live entertainment - sometimes also called event

management- is growing at a fast and steady rate. The number of corporate

awards, television, films, and sports events are increasing rapidly, helping the

sector grow at a fast rate. The current live entertainment segment of the Media and

Entertainment industry comprises a small number of large event management

companies and a large number of smaller companies.

Internet

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Internet advertising spending is set to grow several folds, especially in India’s

entertainment sector. While internet advertising comprises nearly 0.5% of

advertising at present, it is expected to be 4% by the year 2010. Until such time, the

projected yearly growth rate of the ad industry is to stabilize at 11%. The growth of

online ad industry is estimated to shoot up to 43% by the year 2011. However,

even though India is ranked eighth in the world in terms of number of internet

users, the country is not ranked amongst the top 10 countries in terms of average

monthly hours online per unique visitor which may hamper the growth of internet

advertising as compared to others media types.

Others

Amongst the other segments, the animation and gaming industry is expected to

show the maximum growth, albeit from a small base. The animation and gaming

industry is projected to grow from the present size of Rs 11 b to Rs 29 b by 2011,

implying a 22% cumulative annual growth over the next five years.

The following is the comparative chart of the different sectors’ percentage revenue

in the Indian Entertainment and the Media industry in the year 2007 and that of

expected in 2011.

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Thus, the estimate says that TV sector will continue growing while the share of print

and film entertainment will increase in absolute numbers but at a decreasing rate

while the rest of the sectors will have more or less the same share.

Thus The Indian entertainment and media industry today has everything going for it

- be it regulations that allow foreign investment, the impetus from the economy, the

digital lifestyle and spending habits of the consumers and the opportunities thrown

open by the advancements in technology. All it has to do is to cash in on the growth

potential and the opportunities. The government, on its part, needs to play a more

active role in sorting out policy-related impediments to growth. The industry needs

to fight all roadblocks- such as piracy- in a concerted manner, while churning out

high-quality, world class end products. The entertainment and media industry has

all that it takes to be a star performer of the Indian economy.

ADVERTISING INDUSTRY

The concept of advertising existed long before we had a term for it. Advertising is

defined as the art of positioning and creating brands and persuading

consumers to buy them through messages in mass media or personalized

media that is gaining much attention these days.

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It is also the means of informing as well as influencing the general public to buy

products or services through visual or oral messages. A product or service is

advertised to create awareness in the minds of potential buyers. Some of the

commonly used media for advertising are T.V., radio, websites, newspapers,

magazines, bill-boards, hoardings etc. As a result of economic liberalization and the

changing social trends advertising industry has shown rapid growth in the last

decade.

Advertising is one of the aspects of mass communication. Advertising is actually

brand-building through effective communication and is essentially a service

industry. It helps to create demand, promote marketing system and boost

economic growth. Thus advertising forms the basis of marketing.

Advertising plays a significant role in today's highly competitive world. A career in

advertisement is quite glamorous and at the same time challenging with more and

more agencies opening up every day. Whether its brands, companies, personalities

or even voluntary or religious organizations, all of them use some form of

advertising in order to be able to communicate with the target audience. The salary

structure in advertising is quite high and if you have the knack for it one can reach

the top. It is an ideal profession for a creative individual who can handle work-

pressure.

Today, new areas are emerging within advertising like event management, image

management, internet marketing etc. Event management is wherein events are

marketed; Image management is wherein a particular profile of an individual or an

organization is projected. Internet marketing has also brought about a lot of

changes in advertising as Internet means that one is catering to a select group of

audience rather than a mass audience.

Overview of Advertising Industry in India

The structure of the advertising industry in Asia Pacific has been affected by

globalization and international alignments creating a smaller number of very large

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agencies and the growth of independent major media buying houses. Very

sophisticated software optimization and planning systems are now integral to the

industry, enabling agencies to offer a unique positioning in the marketplace to

attract new business.

Global companies are discovering the appeal of marketing their products in India.

With a population of more than one billion, and a middle class that's larger than the

total population of the United States, there's definitely money to be made.

Television, movie, video and radio jingles, newspaper and magazine advertising

and neon-lit billboards in the cities are fueling a revolution in consumer products

and spawning new styles of living - changing food habits, fashions and home

décor. This new advertising is pleasing the growing middle class, one of the largest

target populations in the world, but it is drawing criticism from Indians concerned

that it could sharpen social tensions in a country with so many poor people.

Local retailers in apparel, food, watches and jewelry have all increased their

average ad spending by almost 50% in the past two years. Coupled with many

other local players big retailing brands are spending to the tune of Rs 12,000 crores

annually on advertising and promotional activities. This figure, according to industry

estimates, was less than Rs 400 crores about 2-3 years ago which means the

growth has been a whopping 40%. The local firms are using all the available

advertising tools from electronic to print, outdoor advertising and even models. The

advertising and promotional spending by local brands is substantial during the

festival season and almost 70% of the spending is done between Septembers to

January. The advertising industry in India is growing at an average rate of 10-12%

per annum. Over 80% of the business is from Mumbai and Delhi followed by

Bangalore and Chennai from the rest of the other major cities in the country.

A once-flagging advertising industry is booming in India. It has become fiercely

competitive and one of the country's fastest-growing economic sectors. But the

boom in advertising has touched off a debate on whether the industry has

developed too quickly without preparing consumers adequately.

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Advertising: As a part of Indian entertainment and media

industry.

The advertising industry is one the most important part of the entire Indian

Entertainment and Media industry. The advertising industry contributed a share of

38 percent in the overall IE&M industry revenue of 2007, up from 37 percent in

2006. The advertising industry itself recorded a growth of 22 percent over the

previous year contributing an estimated Rs 19,600 crore in 2007 as compared with

Rs 16,100 crore in 2006. In the last four years, the advertising industry recorded a

cumulative growth of 20 percent on an overall basis.

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On the basis of the estimation made by various agencies around the world, the

advertisement industry in India is estimated to reach approximately Rs. 36371

crores by the year 2010, the major chunk of which will be contributed by the print

media of nearly 50%. the reason of that could be the literacy levels rising to 551

million people in India. And more people in rural and urban areas are reading

newspapers and magazines today. Print media is also the favourite segment for

global investors with maximum foreign investment in this segment. The print media

industry still has the potential to grow as 236 million literate people in India are still

not tapped by any publication.

At present, the print media is the highest contributor to the advertisement revenue

followed by television and outdoor advertising respectively. In spite of the increase

in the global internet usage, the total number of people using internet in our country

is far less than other countries. Thus the present share of internet media in

advertising is nearly 0.5-1% which is estimated to be 4% by the year 2011.

The following chart shows the figures of the ad spend from the year 2004-2007 and

the estimated ad spend for the year 2008 against 2010.1

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TOTAL AD SPEND

010002000300040005000

6000700080009000

10000

2004 2005 2006 2007

YEAR

AD

SP

EN

D(

Rs.

Cro

res)

PRINT TV 00H RADIO INTERNET CINEMA

YEAR

MEDIA

PRINT TV OOH RADIO INTERNET CINEMA TOTAL

2004 5464 4872 847 220 58 139 11600

2005 6323 5412 897 317 106 145 13200

2006 6946 6200 945 133 155 131 14510

2007 8591 6766 391 215 215 194 16372

Thus for that past 5 years, print media has been the largest contributor to the ad

industry followed by TV. However with the emergence of various media like radio

and internet which is gaining much attention these days are expected to rise at a

very high rate taking up the share of print and TV. In spite of all these, internet as a

media and advertising is the fastest growing and is expected to have nearly 4- 5%

ad spend share by the year 2010.

Ad market share percentage of various media year 2008 and 2010

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2008

PRINT47%

TV40%

OOH7%

RADIO3%

CINEMA1%

INTERNET2%

2010

PRINT46%

TV36%

RADIO5%

OOH8%

CINEMA1% INTERNET

4%

Advertising Market Stats/Projections: YEAR 2008

The overall advertising and media industry is expected to close at Rs 21,314

crore in revenues in 2008, riding a 20 per cent growth rate

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Television advertising market is projected at Rs 8,674 crore in 2008

The print industry stands at nearly Rs 10,000 crore.

The cinema medium will corner around 0.7 per cent of the total advertising

budget in 2008.

Outdoor media industry will grow at 14 per cent to touch Rs 1,454 crore,

Radio is likely to record a 40 per cent growth in 2008 to touch Rs 672 crore

Internet advertising will constitute only 1.7 per cent of the overall advertising

spends in 2008, up from the current 1.4 per cent.

The decline in share of print and TV is not only because of the upcoming media but

also because the market itself is expanding.

New trends in ad industry

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Ad industry is one of the fastest growing sectors in the country. With the

development of the economy the development in the industry has also gained

momentum.

It is gaining momentum as a source of information and stream of revenue. All the

recent developments have helped in opening new doors for the development in the

industry. For the past so many years; the ad industry had been concentrating on

mass media. Increasingly, other media are overtaking television and other

traditional media because of a shift towards consumer's change in perception.

Thus, it has become necessary for the advertisers to constantly find newer ideas to

attract the attention of the consumers.

The advertisers are now opting for personalized communication than mass

communication. It has become extremely necessary for the advertisers to

understand the needs of the customers on the individual basis. Thus the shift that is

seen in the Indian ad industry is from mass advertising to class advertising.

The latest buzz in the industry is of online marketing. Mass media like newspapers,

magazines, radio and television are no doubt hugely effective media for commercial

advertisements, but internet is completely different from them in many respects in

terms of achieving the objective of an ad. According to statistics, online ad spend

by the year 2010 is expected to grow at the rate of 43%.

Within online advertising there are many options available to the advertiser. Among

that e-mail marketing tops since it is also a good option for personalized

communication which is preferred by most of the advertisers nowadays. Also, blogs

is an emerging way of communicating to the people.

Another upcoming phenomenon is mobile marketing. With the increase in number

of people having the cell phone especially India, which stands second in the

highest number of mobile users, mobile marketing is gaining attention of many

advertisers.

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One type of mobile ad is based on SMS (Short Message Service) text messages.

The benefit of SMS text messages is people can respond where they are, right

now, stuck in traffic, sitting on the metro.

A new form of advertising that is growing rapidly is Social network advertising. It is

online advertising with a focus on social networking sites. This is a relatively

immature market, but it has shown a lot of promises as advertisers are able to take

advantage of the demographic information the user has provided to the social

networking site.

Scope of Advertising Industry in India

The advertising industry in India has several competitive advantages:

India has a rich pool of strategic planning, creative and media services

personnel: Indeed, Indian advertising industry has been exporting senior-

level talent to many countries, particularly to the Gulf, South-East Asia,

China, the UK and the US. Indian talent is recognized and respected in

global agency networks.

No other country has access to so many trained management graduates

who can provide strategic inputs for brand and media planning.

Indians are multicultural: we learn at least two languages and that gives us

a head start in understanding cultural diversity.

Most of the top 20 agencies in India have a global partner or owner,

which should provide an immediate link to global markets.

Our production standards in TV and print have improved: With a vibrant

animation software industry, we have access to this area of TV

production.

India's advanced IT capabilities can be used to develop Web-based

communication packages for global clients.

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MASS V/S CLASS ADVERTISING

What is mass

To understand what is mass marketing/advertising, it is important to know what

exactly mass refers to. From the viewpoint of marketing, mass is the group of

consumers who occupy the overwhelming mass of a bell curve for common

household products, i.e. they could be tagged as being "average". Yet, this group

consists of such a wide variety of people; their desires towards a certain product

may be totally different from each other. Often competition to supply the mass

market is fierce, but relatively easy to enter because of the large amount of

consumer pool available.

Mass marketing/advertising

Mass advertising is one of the most widely used traditional methods in advertising.

Mass advertising that refers to the approach to advertising that attempts to reach

every consumer, rather than targeting a particular market segment.

It is a type of marketing (or attempting to sell through persuasion) of a product to a

wide audience. The idea is to broadcast a message that will reach the largest

number of people possible. Traditionally mass marketing has focused on radio,

television and newspapers as the medium used to reach this broad audience. By

reaching the largest audience possible exposure to the product is maximized. In

theory this would directly correlate with a larger number of sales or buy in to the

product.

Mass market advertising is usually more expensive than direct marketing, because

they are priced according to the number of consumers who will be reached, and

must generate a larger return in order to justify the expense.

The trend of mass media has seen many ups and downs. These trends are due to

corresponding upswings in mass media, the parent of mass marketing. For most of

the twentieth century, major consumer-products companies held fast to mass

marketing- mass producing, mass distributing and mass promoting about the same

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product in about the same way to all consumers. Mass marketing creates the

largest potential market, which leads to the lowest costs in terms of long term

investment.

How mass media markets?

The mass media are capable of facilitating short-term, intermediate-term, and long-

term effects on audiences. Short-term objectives include exposing audiences to

different concepts; creating awareness and knowledge (e.g. right to information);

altering outdated or incorrect knowledge (AIDS campaign, Coke and Pepsi for

clearing doubts in the pesticides case); and enhancing audience recall of particular

advertisements(e.g. Fevicol, Raymond’s) or public service announcements (PSAs),

promotions(Dominos Pizza), or program names. Intermediate-term objectives

include all of the above, as well as changes in attitudes, behaviours, and

perceptions of social norms. Finally, long-term objectives incorporate all of the

aforementioned tasks, in addition to focused restructuring of perceived social

norms, and maintenance of behavior change. Evidence of achieving these three

tiers of objectives is useful in evaluating the effectiveness of mass media.

Types of mass media

Television

Radio

Print

OOH

Internet

Television is a powerful medium for appealing to mass audiences—it reaches

people regardless of age, sex, income, or educational level. In addition, television

offers sight and sound, and it makes dramatic and lifelike representations of people

and products. Television ads have a different impact of it on the people’s mind is

most remembered. Call it the power of television or power of sound and image

together, television has become one of the most preferred choices to attract the

30

masses. Also the penetration and the reach of television has increased incredibly

that it is beneficial for the companies to advertise on television to gain benefit over

a long period of time in spite of it being expensive. Lots of ads targeting masses are

seen more on television than any other media. E.g. soaps, shampoos, water

purifiers, automobiles, etc.

Radio. Radio also reaches mass and diverse audiences. The specialization of

radio stations by listener age, taste, and even gender permits more selectivity in

reaching audience segments. Many radio stations have come up in the past 5

years and it’s still increasing. In Ahmedabad itself there are five radio stations and

since placement and production costs are less for radio than for TV, radio is able to

convey messages in greater detail. Thus, radio is sometimes considered to be

more efficient. The main benefit for the same can be that it is the best means if the

target is local. Radio Mirchi, My FM, Red FM, Radio City and many others have

their stations in many other cities. Thus, it can target mass audience on local level.

However radio requires somewhat greater audience involvement than television,

creating the need for more mental imagery. Because of this, radio can reinforce

complementary messages portrayed in parallel fashion on TV.

Print Newspapers are available in daily and weekly formats, and local, regional,

and national publications exist. In addition, there are numerous special audience

newspapers (e.g., various ethnic groups, women, Geography – specific). National

dailies in India have highest penetration amongst all media of advertising.

Classifieds in that is the commonest form of advertisements. However the biggest

disadvantage is that there are chances of it being overlooked.

Among other print media, magazines are also preferred by the advertisers

especially the mass is divided.

Other Print Media Pamphlets, brochures, and posters constitute other print media

used to disseminate health messages. These print media were developed with the

assistance of target audiences, and few contained varied messages, were culturally

tailored, or employed readability and face validity techniques. The extent to which

persons read, re-read, and keep these devices—or circulate them to other readers

—is not well evaluated. Thus, their permanence is unknown.

31

Outdoor media. Outdoor media include billboards and signs, placards inside and

outside of commercial transportation modes, flying billboards (e.g., signs in tow of

airplanes), blimps, and skywriting. Commercial advertisers such as Rado, Rolex,

Pepsi, Vodafone and Kingfisher all make extensive use of their logo-bearing blimps

around sports stadiums especially any cricket match in India. For persons who

regularly pass by billboards or use public transportation, these media may provide

repeated exposure to messages. Pro-health messages displayed on urban public

transportation may suffer, however, from the image problems that afflict urban

buses and subways. In addition, the effectiveness of such postings wears out

quickly as audiences grow tired of their sameness.

Internet The advent of the World Wide Web and the massive increase in Internet

users offers enormous opportunities and challenges. The Internet places users in

firmer autonomous control of which messages are accessed and when they are

accessed. It is possible to put virtually anything on-line and disseminate it to any

location having Internet access, but the user has little control over quality and

accuracy. Internet search engines can direct users to tens of thousands of web

sites after the user's introduction of one or more keywords. But unlike TV or radio,

which are available in nearly all households; Internet access requires some

technical skill, as well as the resources to purchase hardware and Internet

subscription services. The most important benefit is that It can attract masses all

over the world unlike TV and Radio. Also internet is such a medium which can be

termed as a personalized media too.

32

What can be marketed on mass basis?

A mass market strategy is effective for products that appeal to a broad cross-

section of consumers and used to effect attitude change to as wide an audience as

possible like aspirin or orange juice. It is not appropriate for products with limited

appeal like toothpaste. Toothpaste isn't made especially for one consumer and it is

sold in huge quantities. A company or individual who manufactures toothpaste

wishes to get more people to buy their particular brand over another. The goal is

when a consumer has the option to select a tube of toothpaste that the consumer

would remember the product which was marketed. Mass marketing is the opposite

of niche marketing, where a product is made especially for one person or a group

of persons.

Other products of mass marketing are furniture, artwork, automobiles, residential

communities, fizzy drinks and personal computers. Typically, things which are

perceived to be necessary/essential to the consumer are subject to mass

marketing.

However, even in the products which were earlier thought of being marketed on the

mass basis are nowadays marketed on the basis of customization. Like furniture is

now made as per the demand of the customer. Or the best example can be that of

personal computer. Dell, an American company, sells its computer as per the

requirements of the customer. Thus everywhere there is shift from mass advertising

to class advertising.

33

SHIFT FROM MASS TO CLASS

The Evolution from Mass Marketing

The successes of mass marketers led to the appearance of an alternate approach

to marketing. Potential competitors wanting a share of the large market had two

options. One was to replicate the organization, promotion, and distribution systems

of the company that had created the mass market. The other was to go after a part

of the market that had unique needs by developing products specifically for them.

For nearly all of the challengers, building an operation to parallel that of an

entrenched industry giant was not profitable or realistic. As a result, most of them

gravitated to the more attractive market-segmentation approach. General Motors, in

the US used market segmentation as early as the 1920s when it produced different

models for different groups of customers to compete with Ford. Pepsi made a

series of attempts, beginning in the 1990s, to crack into Coca-Cola's market share

through changes in product and targeted promotion strategy in India making it a

youth drink. Also that that time, television provided a powerful tool for both new and

old companies to reach segmented markets. By the late 90s, market segmentation

had surpassed mass marketing as the primary approach.

Mass Marketing Now and in the Future

In spite of the shift to market segmentation, mass marketing continues to be used

in many situations and has potential for others. Products with broad appeal and few

distinguishing characteristics— such as household cleaners, potato chips, and pain

relievers— lend themselves to mass marketing just as they always have. At the

same time, businesses that use mass marketing for their goods and services

continue to look for ways to enlarge their markets by designing different appeals for

non-customers. Chewing gum, for example, is presented as an alternative to

smoking. Utilities and credit cards offer special rates to entice potential high-volume

customers. And discount retailers, such as Big-Bazaar, match their mix of mass-

marketed products to local customer bases.

34

Any current or future product that has mass-marketable attributes will likely be

marketed by some form of the approach. In addition, the Internet provides a new

medium for mass-marketing initiatives, and newly opened international markets

offer a possible arena for mass-marketing opportunities. But as rightly said, change

is the only thing that is permanent, even the changes are expected in terms of the

ways of marketing and targeting the customers on personalized basis. Especially

with the companies becoming global and audience becoming conscious of what

they want, companies are more concentrating on offering customers a more

personalized touch. Also segmentation on the basis of classes is one of the most

emerging concepts. India being known for it’s extremities of people in terms of

income, education, work and social classes, companies have started opting this

class advertising approach to attract the targeted audience that’s fits into segment

of probable buyers of the products or services offered by the advertisers. For that

new methods of marketing have been put into practice in this race of attracting

customers. Old model is being replaced by new model of customerization.

35

Given below is the difference showing the difference in old and new model.

Old model- Old model- traditionaltraditional

New model-customerizationNew model-customerization

Relationship with the

customer

Passive participant Active co-producer

Customer Needs Articulated Articulated and Unarticulated

Segmentation Mass market and Target

segments

Customized segments

Pricing Fixed pricing &

discounting

Value based pricing model.

Customer determined

Communication Advertising and PR IMC & interactive

Distribution Traditional retailing and

direct marketing

Online distribution channels or third

party logistics

Branding Traditional branding and

co-branding

The customer’s name as brands

Basis of competitive

advantage

Marketing power Marketing finesse and “capturing” the

customer as “partner”

Product and service

offerings

Line extensions

modification, customizes

products, services, and

marketing. Marketing and

R&D drive new product

Customer interactions drive new

product development.

36

CLASS ADVERTISING

Understanding the Indian Consumer

India's economic growth has accelerated significantly over the last two decades,

along with the spending power of its citizens. Real average household disposable

income has roughly doubled since late 80s. With rising incomes, household

consumption has increased, and a new Indian middle class has emerged.

As Indian incomes rise, the shape of the country's income pyramid will also change

dramatically. More than 291 million people will move from desperate poverty to a

more sustainable life, adding a number of first-time consumers to the market. While

much of this new wealth and consumption will be created in urban areas, rural

households will also benefit.

The Need for Targeting Specific Class/ Group

Two words sum up today’s consumer market: unlimited choice. Over the past

decade, companies have rushed to steal market share by creating an unending

stream of new products to meet the desires of consumers. At the same time, media

outlets have proliferated and different concepts have emerged to woo the

customers from customization to interactive media advertising. Marketers are faced

with the challenge of getting their message heard by consumers who are hard to

find and even harder to influence.

But the question is how can companies create awareness of their products? One

thing is certain: Mass marketing no longer works. Marketers are no longer able to

reach a “mass market.” Even if they could, there is no longer a “one-product-fits-all”

mentality that would appeal to consumers.

Thus marketing concept calls for understanding customers and satisfying their

needs better than the competition. But different customers have different needs,

and it rarely is possible to satisfy all customers by treating them alike. While

37

Mass advertising refers to treatment of the market as a homogenous group and

offering the same marketing mix to all customers and economies of scale to be

realized through mass production, mass distribution, and mass communication.

Target advertising on the other hand recognizes the diversity of customers and

does not try to please all of them with the same offering. The first step in target

marketing is to identify different market segments and their needs.

The drawback of mass marketing is that customer needs and preferences differ

and the same offering is unlikely to be viewed as optimal by all customers. If firms

ignored the differing customer needs, another firm likely would enter the market

with a product that serves a specific group, and the incumbent firms would lose

those customers.

Thus, marketers have found the need to concentrate on a specific group than

mass. But how to group people and on what basis is one of the most challenging

question for the marketers. Earlier the basis for segmentation was on four major

categories, which mostly depends on the marketer to decide.

Geographic

Demographic

Psychographic

Behavioral

However, a common classification that is used by marketers to describe the Indian

population is the Socio Economic Classification thus giving rise to an entirely new

concept of CLASS MARKETING.

A common classification that is used by marketers to describe the Indian population

is the Socio Economic Classification (SEC). SEC is the classification of Indian

consumers on the basis of two parameters: Occupation and Education of the chief

wage earner (Head) of the households. The SEC classification, created in 1988,

was ratified by Market Research Society of India (MRSI), is used by most media

researchers and brand managers to understand the Indian consuming class. SEC

38

is made to understand the purchase behavior and the consumption pattern of the

households. This classification is more stable than one based on income alone and

being reflective of lifestyle is more relevant to the examination of consumption

behavior which will be presented in brief in the next section.

The basic reasons for developing a SEC system were the following:

1. Income can discriminate between consumers and non-consumers for certain

products, but not for others.

2. Income is not stable over time whereas SEC is, i.e., the cut-offs of high and low

income will vary quite rapidly over time.

3. Income is often understated.

The Urban Sector is divided into SEC A1, A2, B1, B2, C, D, E1, E2

(Calculated as a function of Educational qualifications of the CWE* and his

occupation)

The Rural Sector is divided into SEC R1, R2, R3, R4

(Calculated as a function of Educational Qualifications of the CWE* and the type of

the household he stays in – Pucca, Semi Pucca or Kaccha)

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Table below shows the socioeconomic classification of urban Indian households.

OCCUPATION EDUCATION 

Illiterate

< 4 yrs in

school

5-9 yrs of

school

School certificat

eSome

college GraduatePost

graduateSkilled

workers E2 E1 D C C B2 B2Unskilled workers E2 E2 E1 D D D D

Shop owner D D C B2 B2 A2 A2

Petty trader E2 D D C C B2 B2Employer of

> 10 persons B1 B1 A2 A2 A1 A1 A1

< 10 persons C B2 B2 B1 A2 A1 A1

None D C B2 B1 A2 A1 A1

Others

Clerk D D D C B2 B1 B1

Supervisor D D C C B2 B1 A2

Professional D D D B2 B1 A2 A1Senior

executive B1 B1 B1 B1 A2 A1 A1Junior

executive C C C B2 B1 A2 A2

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There are eight levels — from A1 to E2The level wise classification can be known

from the following table:

LEVEL OCCUPATION EDUCATION

A1 Employer of

>10 Persons College/Graduate/Post Graduate

<10 Persons Graduate/Post Graduate

none Graduate/Post Graduate

Professional Post Graduate

Senior Executive Graduate/Post Graduate

A2 Shop Owner Graduate/Post Graduate

Employer of>10 Persons 5-9years of school/School Certificate<10 Persons Some College

none Some CollegeSupervisor Post GraduateProfessional Graduate

Senior Executive Some College

Junior Executive Graduate/Post Graduate

B1 Employer of>10 Persons Illiterate/Less than 4 years in school<10 Persons School Certificate

none School CertificateClerk Graduate/Post GraduateSupervisor GraduateProfessional Some College

Senior ExecutiveIlliterate/Less than 4 years in school/ 5-9 years of school/School Certificates

Junior Executive Some CollegeB2 Skilled worker Graduate/Post Graduate

Shop Owner School Certificate/ Some collegePetty Trader Graduate/Post GraduateEmployer of

>10 PersonsLess than 4 years in school/ 5-9 years of school

none 5-9 years of schoolClerk Some CollegeSupervisor Some CollegeProfessional School CertificateJunior Executive School Certificate

41

LEVEL OCCUPATION EDUCATION

C Skilled Workers School Certificate/ Some college

Shop Owners 5-9years of school

Petty Traders School Certificate/ Some college

Employer of

<10 Persons Illiterate

none Less than 4 years in schoolClerk school CertificateSupervisor 5-9years of school/school Certificate

Junior ExecutiveIlliterate/Less than 4 years in school/ 5-9 years of school

D Skilled Workers 5-9 years of schoolUnskilled workers School Certificate/ Some collegeShop Owners Illiterate/Less than 4 years in school

Petty TradersLess than 4 years in school/ 5-9 years of school

Employer of

none Illiterate

ClerkIlliterate/Less than 4 years in school/ 5-9 years of school

Supervisor Illiterate/Less than 4 years in school

ProfessionalIlliterate/Less than 4 years in school/ 5-9 years of school

E1 Skilled Workers Less than 4 years in schoolUnskilled workers 5-9 years of school

E2 Skilled Workers IlliterateUnskilled workers Illiterate/ Less than 4 years in schoolPetty Traders Illiterate

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Table below shows the socioeconomic classification of Rural Indian household.

Education of chief wage earner Type of House

  PuccaSemi-pucca Kuchcha

Professional degree R1 R2 R3Graduation/ PG R1 R2 R3

College R1 R2 R3SSC/HSC R2 R3 R3

Class 4-Class 9 R3 R3 R4Up to class 4 R3 R3 R4Self-learning R3 R4 R4

Illiterate R4 R4 R4

Level Education Type of House

R1 ProfessionalDegree/Graduation/PG/College Pucca

R2 SSC/HSC Pucca

  ProfessionalDegree/Graduation/PG/College Semi-pucca

R3 ProfessionalDegree/Graduation/PG/College Kuchcha

  SSC/HSC Semi-pucca/kuchcha

  Class 4- Class 9/Up to class 4 Pucca/Semi-pucca

  Self-Learning Pucca

R4 Class 4- Class 9/Up to class 4 Kuchcha

  Self-Learning Semi-pucca/kuchcha

  Illiterate Pucca/Semi-pucca/Kuchcha

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Urban & Rural Classification

According to the Census of India 1991, the following criteria were adopted for

treating a place as urban:

1. All statutory towns, i.e., all places with a municipality, corporation, cantonment

board or notified town area committee, etc.

2. All other places which satisfied the following criteria:

- A minimum population of 5000

- At least 75% of the male working population engaged in non-agricultural

pursuits, and

- A density of population of at least 400 per sq km

3. Apart from these, the outgrowths of cities and towns have also been treated as

urban

All areas not identified as Urban, are classified as Rural.

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SEC: A debate

Over the years, marketers have always targeted customers on the basis of their

income and predicted their requirements on the same basis. For example, only the

richer section were targeted for cars till late 80s until the focus shifted towards the

‘new emerging – Middle class’ which gained maximum attention of the marketer

then after. Other examples could be expensive furniture, suiting and other lifestyle

products and services which solely concentrated on the Elite class.

However, with the increase in the trend of being ‘IN’ thing not only are the people

opting for those goods and services which was earlier meant to target other specific

classes or on mass basis but also the spending is more dependent on the socio

economic status than just income. Thus, an executive who is not so rich by income

may have the needs for high-end products like luxurious car, far-away traveling,

branded clothes, etc. The need arises from his status as an executive though he

may not afford it, and would have surely bought if he belonged to higher class.

Other argument is that, demand for certain products like newspaper arises not out

of income. Even a lower income person can afford the subscription of newspaper,

Gujarati, Hindi or English, which nearly costs same. But a person who is not

educated and whose requirement of profession does not allow him to buy an

English newspaper, naturally he would not go for an English one. Also almost

everyone now spends not looking at their income but the status and to cope up with

that, consumers today do not hesitate to spend their income lavishly leaving only a

mere amount to savings. Also, awareness around the power of information

technology to solve problems, create employment and improve lives has trickled

down to the lowest socio-economic class. Mobiles are the best examples. The

gadget which was earlier a status symbol is now a requirement and is being used

by everyone around the corner.

Created in 1988, the SEC divided Indian households on the basis of the chief wage

earner’s education and occupation, SEC A1 to R4, covering all urban and rural

areas. The direct correlation between a higher SEC and education was a result of

the belief that a better educated person would have greater (organized)

employment opportunities and thus higher income.

45

This classification is pertinent as compared to an income-level based classification,

since lifestyle reflects the consumption patterns more closely than the income

levels.

The basic reasons for developing a SEC system were the following:

1. Income can discriminate between consumers and non-consumers for certain

products, but not for others.

2. Income is not stable over time whereas SEC is, i.e., the cut-offs of high and low

income will vary quite rapidly over time.

3. Income is often understated.

The last has been proved by large-scale studies that compared household

expenses with claimed income. Over 80 percent of upper income respondents were

found to have regular monthly expenses well in excess of their stated monthly

household income (MHI), and this proportion was not much lower among lower

income respondents too.

The second of the three reasons is also beyond dispute. Salary levels in India have

undergone a huge change in the 1990s; annual incomes of 1 million-plus rupees

are earned by thousands of families today, but were the privilege of the very rich a

decade ago.

Now let us examine the first reason stated in the context of a few product

categories. The method used is that of a selectivity index, which compares the

extent to which target audience definitions using surrogate variables SEC and

monthly household income (MHI) match with the actual target audience as

measured by very large-scale studies — specifically the Indian Readership Survey.

However, in spite of there being many arguments in favour of SEC, there are many

questions that have been raised on it. Consumers are now breaking class barriers.

Not only common man but celebrities are under a questionable situation too. Take

Sachin Tendulkar for an example. He owns a Ferrari, and his million-dollar

endorsement deals are a matter of widespread national interest. As a brand

46

ambassador, he is a marketer’s delight who has helped reviving the flagging

fortunes of several brands.

But many brands that he has endorsed in his 18-year career were never meant to

be used by him. Tendulkar, who hasn’t completed his graduate studies, would fall

into what most Indian marketers recognize as socio economic classification (SEC)

B — a category that is distinctly middle-class. The two-decade-old demographic

classification SEC is past its sell by date —is indeed a question on everyone’s mind

and certainly on marketers’.

The uni-dimensional way of looking at demographics is a key limitation of SECs.

Several layers of consumer segmentation need to be added on like

psychographics, cultural clusters, and life stages to make a compelling basis for

defining consumer segments.

Today, ‘Swift’ competes outside its so-called category with bigger cars such as

Esteem and Ikon. The consumer is willing to pay more for a smaller but better

designed product. People are using brands to express themselves more than ever

before. The size-price equation doesn’t hold good here.

Also there are many big names have completely junked the SEC segmentation,

and prospered nonetheless. The first name is The Future Group. The company has

gone with its own market definition for all of their retail formats.

“We have been maintaining that the SEC classification is not a true representation

of Indian consumers for three-four years now,” says Future Chairman Kishore

Biyani.

The group has worked out a system where the entire set of Indian consumers is

divided into three broad categories: India One or the consuming class, India Two or

the serving class and India Three or the deprived class. Biyani’s philosophy is

simple.

India One consists of the ‘consuming class’ that makes up 16-18% of the

consumers but account for 95% of the buyers. That is the core target audience that

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he is trying to capture. Also on Biyani’s radar is a part of India Two, the group that

serves India One, for instance, servants, watchmen and small grocers.

Later, in 2002, Unilever devised its proprietary Living Standard Measurement

(LSM) index as an alternative to SEC, which segments consumers into 18 LSM

clusters on the basis of 25 parameters such as income, education, durables

ownership, media consumption, entertainment preferences et al.

However, even though many big companies going against SEC, there are still

many big marketers who think along those lines. They’re using the (SEC)

classification data, because it’s the only data that they have. They use it along with

additional data like ownership and consumption but there is no alternative to

demographic data.

Owing to this, a temporary solution was formed by splitting SEC A into two

categories, A1 and A2. This led to a further division, as affluence rose in SEC A1 to

an A1+, which was formed with a threshold of Rs 10,000 as monthly income. Yet,

this has become dated, with nearly a decade since the idea of SEC A1+ was

mooted. In fact, it’s been a decade since any serious changes were made to

classify consumers. But what is considered as the biggest drawback of this SEC is

that, it considers the occupation and education of CWE Chief Wage Earner which

may not be always influential as far as purchase decisions are considered.

Further refinement

No matter what debate it takes, market research in India has been evolving rapidly

to tackle the increasing needs of marketers operating in a complex environment.

48

One of the key evolutions was the development of a socio-economic system of

classifying consumers around a decade ago. While SEC is an improvement on

income, data from large-scale studies show that further refinement is now called

for.

One possible solution is to introduce further levels in the SEC system. This is being

done by combining SEC with household expenses to see if a combined system

yields better results. The appropriate questions are now being put on to large-scale

surveys.

Understanding Class: Demographics

Indian Socio economic structure is constantly changing. The main reason for which

are:

49

Growing Economy

Consumption Boom

Rising Income levels

Rise in Working Population

Increasing Nuclear Families

Changing Food Behaviour

Profusion of Brands

The demographic representation of population according to SEC can be known from the following chart:

Social Class Total Male Female  Value % Value % Value %

A1 21228 3 11681 3 9547 3B2 37351 5 20237 6 17114 4C 46195 6 24718 6 21477 6D 61573 7 27589 7 23984 7E3 64305 8 33063 8 31242 9R1 19671 3 10180 3 9491 3R2 56491 8 29268 8 27223 8R3 199061 27 104834 27 94167 26R4 243749 33 122424 32 121325 34

         Group 14 (A-E) 220652 30 117288 31 103364 29

Group 25 (R1-R4) 578972 70 266766 69 252206 71

Source: IRS(2005)

A = high/intermediate managers/well educated/ businessmen with large organizations

B = intermediate managers/ good education/ businessmen/ self employed with small organizations

C = petty traders/shop owners/clerks/salesman/ supervisors with some education D = poorly educated petty traders/shop owners/clerks/salesman E = skilled/unskilled workers R1 = well educated, living in good houses R2 = good education, living in not very good houses R3 = some education, living in huts and temporary sheltersR4 = uneducated, living in temporary shelters1 Consists of the two Groups A1 and A2:

Male A1 = 4,018 (1%); Female A1 = 3,386(1%); Total A1 = 7,404 (1%); Male A2 = 7,663 (2%); Female A2 = 6,161 (2%); Total A2 = 13,824 (2%); (All in ‘000)

2 Consists of the two Groups B1 and B2:

50

Male B1 = 9,988 (3%); Female B1 = 8,452 (2%); Total B1 = 18,440 (2%); Male B2 = 10,249 (3%); Female B2 = 8,662 (2%); Total B2 = 18,911 (3%); (All in ‘000)

3 Consists of the two Groups E1 and E2: Male E1 = 12,510 (3%); Female E1 = 11,516 (3%); Total E1 = 24,026 (3%); Male E2 = 20,553 (5%); Female E2 = 19,726 (6%); Total E2 = 40,729 (5%);

(All in ‘000)4 A-E, total urban5 R1-R4, total rural

URBAN

As mentioned earlier, urban population has eight levels of classes starting from A1

to E2. Urban population forms nearly 30% of total population. Going on the lines of

this fact, the population stratification would be as follows:

CHART:

URBAN SEC POPULATION

A10%

B18%

C21%

D24%

E27%

As per the above given data, Sections A & B refer to High-class- constitutes over a

quarter of urban population

Sec C refers to Middle-class-- constitutes nearly 20% of the urban population

Sections D & E refer to Low-class-- constitutes over half the urban population.

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RURAL

Rural population forms 70% of the total population and SEC Rural has four levels

on the basis of occupation and type of house ___ Pucca, Semi-Pucca and Kaccha.

As per the above given data, Section R1 is closer to B2 of urban population and

forms 3% while Section R2 and R3 are closer to D and E1 of urban classification

respectively forming 8% and 27%. The bottom Section R4 constitutes 33% of total

population of ending up being closer to the last section of urban classification E2.

Now the question might arise, how the classes are termed as high income, middle

income and low income group since the classification does not involve income

altogether. The answer is HPI i.e., Household Potential Index.

HPI uses consumption / ownership of a whole host of durables, packaged goods,

services and demographics, to construct a simple aggregate index of how much

purchasing power a household exhibits.

The concept underlying the index is simple - households owning or using a low

penetration item or having a less popular demographic characteristic (like high

education levels) get a higher score for that. The scores are then aggregated

across all items and a HPI score arrived at for the household. Thus in place of

income, we have a sort of "consumption" / "ownership" / "characteristics" based

index which is a measure of purchasing power. Again, the score for any category is

simply done, eliminating all judgement. It is the reciprocal of the penetration of the

category in the total universe. Thus if 70% have a television, then television

ownership in a household generates a lower score on power / potential (1/70), but if

only 10% have an air conditioner, then air conditioner ownership in a household

gets a higher score (1 / 10). The raw scores aggregated across all items included in

this index are then normalized on a 1 to 1000 scale. Further, within a broad

category, premium versions of it are treated differently - example, a black and white

TV, a colour TV and a flat screen TV.

Based on this HPI score, the relative purchasing power of each SEC is as below

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Source: survey conducted by Hansa Research for the Media Research Users Council, MRUC.

For the first time, on a sensible common scale the rural SECs and the urban SECs

have been compared. This eliminates the differences in how they think about

income (since these types of income surveys measure respondent's perception of

their own income, without any cross checks).

The R1 social class, the top end of rural is between B2 and C of urban, closer to

B2. therefore, we would say that there is one top band of purchasing power in

India, Urban A1A2, comprising about a little over 6 million households; Then there

is the next band, which we believe would qualify for the 'middle class India" label,

comprising B1R1B2C, between them, harbouring 30 million households; The

ABCR1 target group which would form the broadest possible target group for most

consumer goods is about 35.4 million households, and 132 million individuals over

the age of 12. This target group grew 26.9% between the years 2000 and 2005.

Then there is the lower middle, comprising DE1R2 which is about 37 million

households, where we believe that most Bottom of the Pyramid activities should

begin. The lowest income, are the E2R3R4. These households form the bottom

60% of the population by income, but account for an income share of 30%.

Perhaps there is fortune, after all, at the bottom of the pyramid!

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However the conclusion given here is on the overall basis, where the categorization

may differ for different products.

To understand, consider an example: A trader whose monthly household income

(MHI) is more than that of a person in section A cannot be included in this SEC

because his educational qualification or occupation does not qualify him for

inclusion. However, there always exists a debate if this bifurcation really shows the

true picture. Because if a person belonging to Section A1 has high income then it

may not be true for the person who belongs to section B2, though they both are

categorized as high income group. Thus even in high income group, the income

variation and status differs which marketers don’t notice before selecting media for

advertising their product.

SEC is an indicator or a pointer towards the “likely to consume” set but often

defies the reality of not pointing clearly towards the “consuming class”, which is

the purpose of any targeting by any marketer. The drawback of using Monthly

Household Income (MHI) lies in the difficulty of capturing the correct data, as the

respondents are hesitant to disclose the correct MHI.

Thus, with nothing as an exception to the drawbacks is acceptable too to most of

the marketers.

Understanding Class: Media

As discussed earlier, the focus is now shifting from mass to class concept.

However, in spite of that, there are many media which though trying hard to focus

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on class have yet not been able to penetrate as an effective medium to attract the

classes. Undoubtedly, with an increase in awareness among the marketers, there

have come up few media that have been successful in attracting ‘classes’

especially in television that attracts elite class like NDTV good times and Zoom.

Whereas the magazines like Femina, She, etc, are of the commonest choice of

magazines among higher middle class and higher classes.

Special focus on class media not only helps marketers to make a deep impact on

the consumers mind but also to capture the ‘top of the mind’ state which has

become very essential in this one of the fastest growing sector.

Apart from this, there is also need of understanding consumers’ needs or

requirements as well as the standard of living, thought it is very difficult to judge

every consumer’s needs, a class is a good representation on collective basis.

Marketers in India have traditionally focused their attention and marketing effort on

the higher socioeconomic classes (otherwise called SEC A&B). Both they and their

advertising agencies have found these segments easier to understand and identify

with. It has been believed that they are more easily targeted through the traditional

mass media. The language and tone of voice used to communicate with this

segment has a more familiar and comfortable ring to it. But it is now perhaps time

to examine the relevance of mid and low socioeconomic classes ( SEC C, D&E)

who, over the last decade, have slowly but surely grown in economic power and

today contribute significant volumes to a number of product categories.

But then marketer has to understand that the reach of media in both urban and

rural India is not the same. Thus marketers have to advertise knowing what the

best possible options for them are. Looking at the urban and rural reach, following

conclusions have been made.

Urban reach

Television has the highest reach in urban areas and reached more than 75 per cent

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of the urban population in 2007. The most significant change, in media

consumption, in the last decade has been an increase in the importance of

television in the lives of the Indian consumer. Currently more than 70% of the adult

(15+) urban population watches television all seven days a week vis-à-vis just 40%

10 years ago. On a weekday, the average viewer watches television for around two

and quarter hours. Television could slowly replace social interaction in all its

traditional roles of opinion maker, informer, entertainer and influencer. However,

the real change is the increase in the frequency with which viewers watch

television. Television seems to have moved on from being entertainment to be

indulged in on holidays to being part of the consumer’s daily routine. Now only

more than 70% of individuals belonging to the SEC D&E households and more

than 80% individuals belonging to SEC C households watch television seven days

a week in comparison to 90% individuals belonging to SEC A households.

The print medium has the second highest reach in urban areas, with 35 per cent

penetration. The percentage reach for the print medium denotes average issue

readership.

After print comes radio with 20 per cent reach and then comes cinema with close to

12 per cent penetration. The percentage of the population mentioned listened to

the radio at least three days a week and went to the cinema at least once a month.

On the basis of sex, the penetration of all media remains less for females than for

males in both urban and rural areas. In urban India, TV reaches 75 per cent of

males and 74 per cent of females. Press permeates to 46 per cent males and 27

per cent females. Radio has 24 per cent and 19 per cent reach for males and

females, respectively. Cinema reaches 10 and 3 per cent males and females and

the Internet reaches 6 per cent and 2 per cent males and females, respectively.

Looking at state wise reach in urban areas, television has the highest reach in all

the states, including Chandigarh, Delhi and Goa. All three states reveal 87 per cent

penetration. TV has the lowest reach in Bihar, with only 49 per cent penetration.

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Print has the highest penetration in Kerala and the lowest in Orissa. Reach figures

for both states are 71 per cent and 27 per cent, respectively.

Radio has the highest reach in Tamil Nadu – 40 per cent – and the lowest reach in

Punjab – 9 per cent. Cinema is most successful in Andhra Pradesh, with 20 per

cent reach, and least effective in Goa and Himachal Pradesh, with only 1 per cent

reach in each state. The Internet is most useful as a medium in Delhi and Goa, with

12 per cent reach in each state, and the least used medium in Gujarat, Madhya

Pradesh and Chhattisgarh, with just 2 per cent reach in each state.

Rural reach

The penetration of all these media is relatively different in rural India. Television

continues to be the medium with the highest reach, but penetrates only 38 per cent

of the huge rural population in the country. Radio overtakes print in rural India and

becomes the medium with the second highest reach. Radio reaches to the 18% of

the rural population. The penetration of print is 15 per cent. Cinema, like in urban

India, has the lowest reach in rural India – it reaches a mere 5 per cent of the rural

population.

Looking at the reach of the various media on the basis of sexual division, TV’s

penetration in rural areas is 39 per cent for men and 35 per cent for women. Radio

reaches 22 per cent males and 13 per cent females. Print reaches 20 per cent

males and 7 per cent females. Cinema reaches 4 per cent males and 1 per cent

females.

State wise reach is highest for television in Goa, with 83 per cent penetration; it is

the lowest in Bihar, with 11 per cent penetration. Radio, like in urban India, has the

maximum reach in Tamil Nadu (40 per cent) and the minimum reach in Andhra

Pradesh (3 per cent). Print is most effective as a medium in Kerala again, with 62

per cent reach, and least effective in Madhya Pradesh, with only 4 per cent reach.

Cinema follows the same trend in rural India as in urban India and has the highest

reach in Andhra Pradesh – 20 per cent. The medium has the lowest reach in the

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states of Bihar, Gujarat, Haryana, Chhattisgarh, Orissa, Uttar Pradesh and West

Bengal – 1 per cent penetration in each of these states.

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CLASS ADVERTISING

Understanding target and media selection

Factors to be considered for targeting class customers and

selecting media

Identification of the target class is extremely essential before offering both a

product /service as well as advertising and selecting media for the same. Thus,

understanding the product itself is an important thing. When a marketer markets a

product, seldom he markets the one which is for all the classes, other than basic

items like salt. However, though there might be many such products catering to all

the classes the ratio is too low to compare its penetration against items that targets

classes. So how can marketer decide whom to target? First, the main consideration

is affordability of the consumer because only then, the wants are converted to

demand for the product/service. Secondly, to what extent the consumer is ready to

accept. And if the results show positive response the next question arises is what

advertising media should you use to promote your business? Simple. Use the one

that is most influential and believable, and that comprehensively reaches the

highest percentage of your target audience for the lowest cost. 

Media Preference

Until last century, people had not many options as far as media is concerned. But

with the advent of new media and global competition, not many are left behind in

attracting people. However, before the selection of any media to advertise, one of

the most important things to be taken into consideration is that what consumers

prefer as far as media selection is concerned. Thus, there might rise questions like:

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What is consumer preference?

Why is it important for an advertiser to know the preference?

Where should an advertiser advertise for the products or services?

The answer is, no one can say anything for sure what a consumer prefers. It is an

everlasting ongoing process of sticking to one media at some point and switching to

other at the other point. Preference for media is thus cannot so be so easily

predicted. But when we talk about class advertising, it can be said that the overall

preference for the people belonging to the same class remains same. That is

instead of individual choices, class preference show an inclination towards certain

media that might help an advertiser to choose the media for advertising in a better

manner.

For knowing the selection patterns existing among the people, following is the

research conducted to know the class preference (restricted to Ahmedabad, Urban)

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RESEARCH STUDY

Research Problem: To know the exposure level of different media to different

socio-economic classes

Research Design: Exploratory research design

Sample Design: Stratified random, Judgment sampling, convenience sampling

Research Instrument: Questionnaire (Annexure)

Sample Size: 30 for each class (8 classes) = 240

Duration: 1 month

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RESEARCH FINDINGS

The findings below are bifurcated according to the different

classes from A1 to E2.

A1: THE AFFLUENTS

A2: THE RICH

B1: THE DREAMERS

B2: THE AMBITIOUS

C: THE CLIMBERS

D: THE STRUGGLERS

E1: THE LAGGARDS

E2: THE FORTUNE SEEKERS

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TV EXPOSURE

The results show that the classes B1,B2, C, and D have the highest Tv exposure amongst all

classes. The detaled exposure to various channels is given below.

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NEWS EXPOSURE

As the results show the classes A1,A2, and B1 have the highest expoure to news channels.

The remaining classes have almost the same exposure to news channels. For targeting the

A1,A2, and B1 classes advetisment on news channels would prove more effective as their

exposure is high.

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MUSIC CHANNEL EXPOSURE

As the results show all the classes have high expoure to music channels. The classes A1

and A2 have less exposure to music compared to the rest. For targeting all the classes

advetisment on music channels would prove more effective as their exposure is high.

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INFORMATIVE CHANNEL EXPOSURE

As the results show the classes A1,A2, and B1 have the highest expoure to informative

channels. The remaining classes have almost the same exposure to informative channels.

For targeting the A1,A2, and B1 classes advetisment on informative channels would prove

more effective as their exposure is high. Also the classes C,D,E1 and E2 have very low

exposure.

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MOVIE CHANNEL EXPOSURE

As the results show the classes A1 and E1 have the highest expoure to movie channels. The

exposure for the remaining classes varies greatly. For targeting the A1 and E1 classes

advetisment on movie channels would prove more effective as their exposure is high.

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SOPS EXPOSURE

As the results show all the classes have very high expoure. For targeting the all the classes

advetisment on news channels would prove more effective as their exposure to sops is

high.

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D.D. EXPOSURE

As the results show the classes B2,C,D,E1 and E2 have the highest expoure to D.D.

channel. The exposure for the remaining classes is not applicable. For targeting the

B2,C,D,E1 and E2 classes advetisment on sop would prove more effective as their exposure

is high.

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NEWSPAPER EXPOSURE

As the results show the classes A1,A2,B1 and B2 have the highest expoure to news papers.

The remaining classes have almost the same exposure to news papers. For targeting the

A1,A2,B1 and B2 classes advetisment on news papers would prove more effective as their

exposure is high.

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ENGLISH

As the results show the classes A1and A2 have the highest expoure to english news papers.

The exposure for the remaining classes is not applicable. For targeting the A1 and A2

classes advetisment on english news papers would prove more effective as their exposure is

high.

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LOCAL LANGUAGE

As the results show all the classes have very high expoure. For targeting the all the classes

advetisment on local language news papers would prove more effective as their exposure

is high.

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ENGLISH + LOCAL LANGUAGE

As the results show the classes A1,A2 and B1 have the highest expoure to both english and

local language news papers. The exposure for the remaining classes C,D,E1 and E2 is not

applicable. For targeting the A1,A2 and B1 classes advetisment on english and local

language news papers would prove more effective as their exposure to is high.

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CINEMA EXPOSURE

As the results show the classes A1,A2,B1,B2 and C have the highest exposure to cinema.

The remaining classes have almost the same exposure and that is very less. For targeting the

A1,A2,B1,B2 and C classes advetisment on cinema would prove more effective as their

exposure is high.

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MAGAZINE EXPOSURE

As the results show the classes A1,A2,B1and B2 have the highest expoure to magazines .

The exposure for the remaining classes C,D,E1 and E2 is not applicable. For targeting the

A1,A2,B1and B2 classes advetisment in magazines would prove more effective as their

exposure is high.

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INTERNET EXPOSURE

As the results show the classes A1and A2 have the highest expoure to internet. The

exposure for the remaining classes C,D,E1 and E2 is not applicable. For targeting the

A1and A2 classes advetisment in magazines would prove more effective as their exposure

is high.

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OOH

As the results show all the classes except B1 and B2 have very high expoure. For targeting

the rest of the classes advetisment on OOH would prove more effective as their exposure

is high.

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RADIO EXPOSURE

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As the results show the classes A1and A2 have the lowest expoure to radio. The exposure

for the remaining classes B1,B2,C,D,E1 and E2 is very high. For targeting the

B1,B2,C,D,E1 and E2 classes advetisment in radio would prove more effective as their

exposure is high.

CONCLUSION

The Indian Advertising Industry being one of the fastest growing area of not only

the IE&M but also the Indian Economy, has a huge potential for further

development. The experience of knowing the insights of the Indian Entertainment

and Median Industry as well as the Indian Advertising Industry was enriching. It

gave some of the true picture of the industry with which I was totally unaware of.

The understanding of the preferences of the various classes to different media and

their exposure to it can help advertisers target the right audience using the right

media.

Thus targeting the right audience for the advertizing and choosing a specific media

can help advertisers save a lot money in advertizing.

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RECOMMENDATIONS

Extensive research by companies, advertising agencies or market research firms

can help understand the exact exposure relations of the various socio economic

classes to the various media.

Research can also be undertaken to understand the exposure level of various

classes in the rural area to various media.

Concrete findings can help companies in reducing advertising expenditure by

concentrating on the right media to reach to target audience.

Also, the companies media budget can be used wisely. Not necessarily does the

company have to cut back on its advertising expenses.

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BIBILIOGRAPY

Kotler, Philip: Marketing Management, Eleventh Edition, PHI

Kothari C. R.: Research Methodology

Bijapurkar, Rama: We Are Like That Only, Understanding the Logic of

Consumer India, Penguin Portfolio

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WEBOGRAPHY

http://www.aaai.com

http://www.iamai.com

http://www.egyankosh.com

http://www.quirks.com

http://www.mckinsey.com/mgi/publications/india_consumer_market/images/

India_Interactive1.swf

http://www.indiantelevision.com/mam/headlines/y2k2/apr/apr2.htm

http://www.magindia.com/manarch/news/man41321.html

http://www.impactonnet.com/V4_issue2.asp

http://www.ramabijapurkar.com/demanddrivers/dsds_indianconsumers2.php

http://www.exchange4media.com/e4m/media_matter/matter_130705.asp

http://www.pewsocialtrends.org/pubs/?chartid=517

http://readbetweentheps.blogspot.com/2005/09/socio-economic-

classification-are-we.html

http://www.timm.indiatimes.com/examples/timm/ecoclass.jsp

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http://www.ficci.com/media-room/speeches-presentations/2006/nov/us/

RetailFranchisingLogisticsSession/BSNagesh.pdf

http://www.martrural.com/Rural%20Opportunities%20&

%20Challenges_website.pdf

http://www.atulvaid.com/files/Atul_Vaid_-

_Overview_of_Regulatory_Framework.pdf

http://www.streamlineindia.com/economy/market.htm#Socio-Economic

%20Classification

http://www.india-seminar.com/2001/498/498%20rajiv%20inamdar%20&

%20monika%20chandra.htm

http://www.quizlet.com/set/317730/

http://www.ciadvertising.org/studies/reports/presentation/PDHCM99A/

sld008.htm

http://www.uab.edu/uasomume/cdm/media.htm

http://www.slideshare.net

http://www.scribd.com

http://www.thehindubusinessline.com

http://www.agencyfaqs.com

http://www.exchange4media.com

http://www.indiatoday.com

http://www.google.com

http://www.dogpile.com

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GLOSSARY

Advertising is one of the aspects of mass communication. Advertising is actually

brand-building through effective communication and is essentially a service

industry. It helps to create demand, promote marketing system and boost

economic growth. Thus advertising forms the basis of marketing.

Branding is a traditional advertising method used to create a response from a

target audience based on cumulative impressions and positive reinforcement.

CAGR (Compounded Annual Growth Rate) is used to describe the growth over a

period of time of some element of the business, usually revenue.

Co-branding is an arrangement that associates a single product or service with

more than one brand name, or otherwise associates a product with someone other

than the principal producer.

Community radio is a type of radio service that caters to the interests of a certain

area, broadcasting material that is popular to a local audience but is overlooked by

more powerful broadcast groups.

Direct Broadcast Satellite (DBS) is a term used to refer to satellite television

broadcasts intended for home reception.

Exploratory research is a type of research that helps determine the best research

design, data collection method and selection of subjects. It often concludes that a

perceived problem does not actually exist.

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HPI Household Potential Index uses consumption / ownership of a whole host of

durables, packaged goods, services and demographics, to construct a simple

aggregate index of how much purchasing power a household exhibits.

Interactive television represents a continuum from low interactivity to moderate

interactivity and high interactivity in which, for example, an audience member

affects the program being watched. The most obvious example of this would be any

kind of real-time voting on the screen, in which audience votes create decisions

that are reflected in how the show continues. A return path to the program provider

is not necessary to have an interactive program experience. Once a movie is

downloaded for example, controls may all be local. The link was needed to

download the program, but texts and software which can be executed locally at the

set-top box or IRD (Integrated Receiver Decoder) may occur automatically, once

the viewer enters the channel.

Internet marketing is the marketing of products or services over the Internet.

Integrated Marketing Communications (IMC), is a planning process designed to

assure that all brand contacts received by a customer or prospect for a product,

service, or organization are relevant to that person and consistent over time.

Interactive advertising is the use of interactive media to promote and influence

the buying decisions of the consumer in an online and offline environment.

IPTV (Internet Protocol Television) is a system where a digital television service

is delivered using Internet Protocol over a network infrastructure, which may

include delivery by a broadband connection.

Mobile Marketing can refer to one of two categories of marketing. First is meant to

describe marketing on or with a mobile device. Second, and a more traditional

definition, is meant to describe marketing in a moving fashion.

Out-of-home advertising (OOH) is essentially any type of advertising that reaches

the consumer while he or she is outside the home.

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Satellite radio (SR) is a digital radio signal that is broadcast by a communications

satellite, which covers a much wider geographical range than terrestrial radio

signals.

Visual radio is a generic term for adding visuals to normal audio radio broadcast.

Mass communication is the term used to describe the academic study of the

various means by which individuals and entities relay information through mass

media to large segments of the population at the same time.

Market segment is a subgroup of people or organizations sharing one or more

characteristics that cause them to have similar product needs.

Personalization is tailoring a consumer product, electronic or written medium to a

user based on personal details or characteristics they provide.

Psychographic variables are any attributes relating to personality, values,

attitudes, interests, or lifestyles.

Socio Economic Classification: Socio-economic classification (SEC) indicates

the affluence level of a household to which an individual belongs. Socio economic

classification of an urban household is defined by the education and occupation of

the chief wage earner (CWE) of a household. SEC is divided into 8 categories A1,

A2, B1, B2, C, D, E1, and E2. (In decreasing order of affluence)

Social Network Advertising is a term that is used to describe a form of Online

advertising that focuses on social networking sites. One of the major benefits of

advertising on a social networking is that advertisers can take advantage of the

users’ demographic information and target their ads appropriately.

Stratified sampling is a method of sampling from a population. Stratification is the

process of grouping members of the population into relatively homogeneous

subgroups before sampling.

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Third-party logistics provider (3PL) is a firm that provides outsourced or "third

party" logistics services to companies for part, or sometimes all of their supply

chain management functions.

ANNEXURE

Questionnaire

QUESTIONNAIRE ON MEDIA PREFERENCE (SEC)N.B.:1) Please tick () the boxes for your response and leave the others blank.2) Please rank in the order of preference wherever mentioned.3) The information collected in the survey will be kept confidential and used only for the research

purpose.

(Please select only one option under each question)1. Occupation:

( ) Skilled workers ( ) Unskilled workers ( ) Shop owner ( ) Petty trader ( ) Clerk ( ) Supervisor ( ) Professional ( ) Senior executive ( ) Junior executive( ) Employer of > 10 persons ( ) Employer of < 10 persons ( ) Employer of None

2. Education:( ) Illiterate ( ) < 4 yrs in school ( ) 5-9 yrs of school( ) School certificate ( ) Some college ( ) Graduate( ) Post graduate

3. How much radio do you listen to?( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs

4. How much TV do you watch per day?( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs

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5. How much time do you spend on watching news per day?

( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs

6. How much time do you spend on watching Music channels per day?

( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs

7. How much time do you spend on watching Informative channels (ex: discovery, national geography) per day?

( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs

8. How much time do you spend on watching Sops channels per day?

( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs

9. How much time do you spend on watching D.D. (All doordarshan channels) per day?

( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs

10.How much time do you spend reading newspapers per day?

( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs

11. In which language do you read newspapers? ( ) English ( ) Local language ( ) Both

12.Which type of newspapers do you read?( ) General ( ) Business ( ) Both

13.How many movies do you watch in a month (in theatres)?

( ) 0 ( ) 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5-10permonth14.How many magazines do you read per day?

( ) 0 ( ) 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5

15.How much time do you spend on internet per week?( ) 0-1hours ( ) 1-5hours ( ) 5-10hours ( ) 10-20hours ( ) 20-25hours

16.How much do you travel per day?

( ) 0-5kms ( ) 5-10kms ( ) 10-15kms ( ) 15-20kms ( ) 20-50kms

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This questionnaire is part of Grand Project on “Class Advertising” as a part of M.B.A studies at N.R. Institute of Business Management. Thank you for your valuable time.

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