Marketplace and Quality Assurance Presentation - Vincent Chirchir
KFC Advertising Research in Halifax
1. Research Objectives:
Following are specific research objectives
To critically examine the impact of advertisements of different media on KFC
Halifax store‟s customers
To vitally observe the impact of internet advertisings, commercial advertisings,
and print media advertisings on KFC Halifax store‟s customers regarding
different segments including gender, age, permanent customers etc.
To make recommendations to the company as to how effective utilization of
internet advertisings, commercial advertisings, and print media advertisings can
leave positive effect on mind of its customers
1)
Which type of advertising media of a KFC store in Halifax are people aware of?
2)
Which type of advertising are customers in Halifax are more likely to respond to?
3)
Is age, a factor affecting response to advertising for KFC in Halifax?
4)
Is gender, a factor affecting response to advertising for KFC in Halifax?
5)
Are there any other factors affecting response to advertising for KFC in Halifax?
Background:
Advertising is one of the most important aspects of marketing or promotion. Marketing
on the whole have many tasks to accomplish and advertising is one of it. (Shah &
D‟Souza, 2009). The subject marketing is too vast to write about in this small project.
Advertising is being selected and impacts of it will be analyzed after the research.
According to Deepa, (2013)advertising is the communication between the buyer and
seller. It just doesn‟t give information about the product or brand, it influence the buyer
and attract him to buy that product or brand. The word „advertising‟ came from Latin and
it means „to attract attention to‟. This helps to understand the meaning and aim of
advertising. According to Shah and D‟Souza (2009), “any paid form of non-personal
2. presentation and promotion of ideas or products by an identified sponsor is called
advertisement.” If this general definition is analyzed the characteristics will be that
advertisement is always paid content, „non-personal‟ comes to the point that it is not
about any personalized or individually presented, „Promotion‟ is indicated to the fact that
promotion is the aim and objective of advertisement and lastly, „Identified Sponsor‟
again identifies that it is not personal, it will be about some brand about which the
promotion is being done.
The objectives of advertisement are „inform, Persuade, Remind and Reinforce‟. To
understand it better; inform is to let the people know about the product, Persuade is
induce people to buy, old products are reminded back and last is reinforce, in this
current customers are convinced that they have chosen the right thing. The advantages
of advertisement are informs, persuades, remind and reinforce mass audience about a
product and builds the identity of a brand. On the other hand, the disadvantages are, it
is very expensive and it is within cluttered media with a high noise level (Shah &
D‟Souza. 2009). According to Kumar (2011) some other advantages of advertisements
in customer‟s context could be:
These advertisements update the customers about the quality of the product and
price as well.
In most of the advertisements the prices of products are already announced,
that‟s why there is not any chance for consumers to be over charged.
If the customers will be attracted to the different brands by the advertisement.
This will increase the competition between different organizations and they will
try to make their products better to convince the buyer.
Advertisements help the customers to save their important time. They will directly
buy the product because they knew the quality and features of the product and
price as well. They knew that they can afford it or nor before going shopping.
This helps to increase the standard of living in people. It continuously
providesinformation about the new designs of the cargos to customers and thus
customers use those products and increase their living standard.
3. The promotional needs in the world are increasing day-by-day. According to the study
done by Shah & D‟Souza (2009) there is increase in the advertising budget of the whole
world with the ratio of approx. 5% every year.
There is different type of media being used for advertisement. According to Tellis et al
(2000) TV is one of the most convenient methods of advertising. Cho, (2003) added
online banners and internet as advertisement tool. Naik and Raman (2003) said that
there are traditional and non-traditional methods of advertising which includes radio,
T.V, social media, billboards and printed ads. Fortin and Dholakia, (2005) stated that
print media is one of the most effective method of advertising. The response of
advertisements on print media is highly demonstrative. Grier et al. (2007) explained
that advertising for fast food using all types of media including print, online, billboards,
radio, newspapers and store promotions.
As compared to the traditional means of advertisement, online advertisement is more
attractive. Internet advertisement didn‟t even exist some 20 years before but now it is
most important aspect of advertisement (Hua et al, 2011).According to Laroche et al
(2013) the advertising on the internet is a popular way to advertise now-a-days. The age
segment which is attracted by the online advertisement is youth segment. But this isn‟t
true that youth is the only segment attracted by internet, people of other age groups are
also attracted by online advertisement. Glenday (2012) claims that KFC online
advertisement especially on social media like Facebook, Twitter and also on YouTube is
running successfully and proved useful to attract and connect with customers. KFC
have 830,000 fans on its page on Facebook. KFC is also using paid advertisement on
Facebook for promotion of its products. This is one example of using social media by
KFC for advertisement. KFC is using all available media for promotion. They are doing a
multimillion campaign which includes, online, TV, radio, billboards and print media.
Cartere (2009) described there is different type of media which is becoming popular
day-by-day, but TV advertisement are still the most effective and convenient way to
advertise. The advantages and disadvantages of different medium of advertisement
could be different. Some important of them will be discussed below:
4. Newspapers:
Some advantages of ads on newspapers are:
1. The newspapers allow the advertisement to reach a huge people in
a special area. (Wakolbinger et al, 2009)
2. The ad size and design of ad and also the placement of ad have a
big flexibility in publishing in a newspaper (burns et al, 2006)
3. The advertisement could be as long as desired by the organization.
4. The exposure to ad is not restricted; readers can go back to your
message again and again if so desired (Kumar, 2011)
5. The speed of advertisement publishing is very high. If you decide
for an ad today. It could be in customers‟ hands in one or two days
after that (Gallacher et al, 2001)
Some disadvantages of ads in newspapers are:
1. The Ad space in newspaper can be expensive and it also depends
on the size of ad. Sometimes price made ad a bit small than usual
(burns et al, (2006)
2. The advertisement has to contest against the clutter of other
advertisers, including the giants ads run by supermarkets and
department stores as well as the ads of your competitors (Leong,
1998)
3. The Poor photo replica limits creativity of your ad (Wakolbinger et
al, 2009)
4. The ad in newspaper has a very short life time because the
newspapers are usually read once and then wasted (Wu et al,
2003)
5. The increasing attractiveness of the Internet also has an impact on
the readership of printed newspapers. A large number of people
now read newspapers online and mostly they get news from other
online media and don‟t read newspapers (Kumar, 2011)
5. Radio:
Some of the advantages of radio advertisements are:
1. Radio is a universal medium and people listen to the radio at home
or work or during travel. It can access a large number of people
(Leong, 1998)
2. The enormous range of radio formats offers to effectively target to
your desired segment of the population (Hackley, 2005).
3. It helps to create your brand name by different campaigns
(Gallacher et al, 2001).
4. The creative help is mostly freely available in the radio station.
5. The price of ads could be negotiated, as there are very few people
involved in this process (Wu et al, 2003)
Some disadvantages of radio advertisements are:
1. There is a possibility that the advertiser have to advertise on
different channels at the same time because the listeners are
spread on many channels and to attract them advertise needs to
advertise on different channels (Burns et al. 2006)
2. Newspapers can be read again but if the ad is gone on the radio
you cannot rewind it.
3. “Ads are an interruption in the entertainment. Because of this, a
radio ad may require multiple exposure to break through the
listener's "tune-out" factor and ensure message retention” (Kumar,
2011).
4. “Radio is a background medium. Most listeners are doing
something else while listening, which means that your ad has to
work hard to get their attention” (Kumar, 2011).
Television:
Some of the advantages of television could be:
6. 1. The television advertisement reaches to a large numbers of people
on international, national or regional level in a very short period of
time (Carterre, 2009)
2. The new cable and Independent stations offer new chances to local
audiences (Carterre, 2009)
3. Television as an image-building and visual medium offers the ability
to deliver your message with sight, sound and motion (Kumar,
2011)
Some of the disadvantages of television advertisement could be:
2. The preferred prime time ads are usually sold out far in
advance.
1. Limited length of advertisement decreases the desired anount of
information communication.
2. “Relatively expensive in terms of creative, production and airtime
costs.” (Kumar, 2011)
3. The advertisement on TV is temporary. There is a chance that the
viewer needs to watch it more than once to get understanding.
Basically, the advertisement needs many exposures to rise above
clutter (Scully et al, 2008)
Internet:
Internet is broader than any other medium of advertisement. The
advantages of online advertisements are:
1. The usage of internet is growing day-by-day. (Vurro, 2009)
2. The appreciation of online advertisement is 5.2% higher as
compared to other mediums of advertisement (Vurro, 2009).
3. The advertisement on internet is mostly for the young segment of
population. (Chi et al, 2012)
7. Some of the disadvantages of internet advertising are:
1. “Advertising
delivery
onsites
deemed
not
appropriate
for
brandadvertising due to objectionable contentconsidered to be in
violation of brand safety.” (Vurro, 2009)
2. Cookies are used mostly for the ads, and mostly cookies are
deleted by most of the internet users, this decreases the viewership
of ads and there is large number of errors in measuring viewership
(Flossi et al, 2013)
3. It is not necessary that the viewer will click the ad and will see the
full advertisement. (Chi et al, 2012)
Now-s-days TV is the most convenient way to reach the large number of people as
described by Tellis et al (2000). On the TV advertisement, the fast food companies try to
attract the young customers. Malik, (2012) said that fast food companies deliberately
make the ads to attract young people and specially children watching TV. This reason
for this advertisement is that this segment of market is become very important for fast
food makers (McNeal, 1998). A large number of fast food organizations are spending
millions of dollars to attract this segment of consumers (Jardine and Wentz, 2005). The
youngsters‟ market has developed considerably important to marketers (McNeal, 1998).
To stop the bad impact of advertisement in Europe, most of the organizations have
established Self-regulatory measures to stop advertising junk food and helping to deal
with child obesity (Wentz, 2006).
The main focus of advertisement should be the effectiveness of that advertisement
campaign (Yo et al, 2004). The effectiveness could be measured by the increase of
sales (Tellis et all, 2000). Briggs et al, (2005) gave one more way of measuring the
success and stated that the brand awareness is one of the important measures of
success of an advertisement campaign. Fast food organizations are using multiple
media to advertise their products. Naik & Raman (2003) stated that the effectiveness of
the advertisement could be increased by using both traditional and non-traditional
8. means of advertisement. Chang and Thorson (2004) said that when more than one
medium of advertisement are used the effectiveness of that advertisement is increased.
There is a significant relationship between a well-planned media strategy and success
of advertisement of product. According to Deepa, (2013) if the advertisement of the
campaign is not made after complete research and planning there are more chances of
failure. It is very important to search the market first and then target the right segment in
the advertisement campaign. Hackley (2005) argue that:„The central task of the
advertising media planner is to select, negotiate and buy media exposure for the
campaign, to ensure that the ads will reach the largest number of desired consumers
possible within the media budget‟.
According to Market watch (2008), the fast food companies are attracting the customers
with different advertisement which usually includes that the food is very tasty and cost
effective. This approach is increasing day by day and companies are advertising on the
basis of taste. The quality is still a big concern for the customers. Tellis (2004)
described that fast food companies attract people by advertising through convenience,
ready to eat and readily available options.
Consumers do response to advertisements of fast food on different media. Glenday
(2012) claim that people response to online advertisements and it can be seen as in
2012 the numbers of Twitter followers of KFC were around 79,000 and on Facebook it
got around 3.9m likes. The study of Scully etal (2008) shows a direct relationship
between commercial television viewing and fast food consumption. The survey results
done by Scully etal (2008) shows that, the respondents who spend three (3) hours per
day viewing television are more likely to buy fast food once in a week as compared to
respondents who spend one (1) hour per day watching TV.
According to Bauer etal (2008), „eating at fast-food restaurants is common among
adolescents. National data indicate that on any given day nearly 40 % of high-schoolaged adolescents report consuming food from a fast-food restaurant‟ (p: 1767).
Most of the consumers face problems in balancing there work life and private life.
According to Market Watch (2008) most of the consumers struggle to have a balance in
9. their private and work lives and they use fast food to save time. Fast food is available
very quickly and people can just eat that in office or on the way to office. This shows
that the reason for increasing use of fast food product could be bust schedule of people
in life.
“Advertising has been criticized for promoting materialism, persuading individuals to Buy
things they do not need and providing false or misleading information” (Pollay and
Mittal, 1993). The commercial promotion of unhealthy and unsafe products is a big
concern for the policy makers (Austin &Nach-Ferguson, 1995). It is recommended that
the promotion of fast food should have restrictions to advertise (Mosher, 1994;
Signorielli&Lears, 1992).
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