CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES

The following studies and literature lent meaning to what the researchers hoped to describe and define the effects of billboard advertisements of TM to the buying behavior of students of Universidad de Manila when it comes to their preferred network provider. So far, no studies have been made yet on this particular problem. However, researchers elsewhere had conducted studies which are closely related to the present study. RELATED STUDIES LOCAL STUDIES According to Branzuela, Cherrylyn P., et.al conduct a study entitled, Effectiveness of selected male-title magazines as advertising medium as perceived by senior marketing students of Adamson University for the year 2005. Descriptive method was used for the research design. The design was intended to produce accurate descriptions of variables relevant to the study. This technique was conducted for the purpose of collecting facts and getting additional information about male-title magazines as an effective advertising medium. The students of Adamson University were their respondents, located at 900 San Marcelino Street, Ermita Manila. They are 18-23 years of age taking up Business Administration Major in Marketing. The researchers use a multiple-choice questionnaire as their main instrument. The researchers used only one set of questionnaire. This set is used to know the students' point of view towards the effectiveness selected of male-title magazines such as FHM, TOYZ and PUMP as an advertising medium.

Informal Interview a useful tool for gathering the accessory data on opinions, suggestions, activities and comments which are used aside from the observation. Observation a data gathering used by the researchers to study the buying behavior of the consumers giving an analytical approach to point out the effectiveness of male-title magazines as advertising medium. The researchers have arrived at the conclusion that these selected male-title magazines are considered as effective advertising medium. Most of the respondents are reading these kinds of magazines for the primary reasons of being updated with product lines advertised and featured events in the magazines. Readers are merely entertained with the featured constants in the magazines. Readers are affected positively and negatively. Some viewed these male-title magazines as effective advertising medium and entertainment because of the contents featured in. however, some readers find it obscene due to the sexual articles and confessions written. There are different points of views raised based on our primary and secondary sources of data. According to Aquino, Louie Angelo S., et. al conduct a study entitled, Effects of non-class print Advertising in Promoting Philip Morris Products as Perceived by the Residents of Barangay 369 Zone 47 District 3 in Sta. Cruz, Manila. Descriptive method was used as research design. This covers design that is intended to produce accurate description of variables relevant to the study. Their technique was conducted for the purpose of collecting facts and getting additional information about the said topics. 285 respondents that live in Barangay 369 Zone 47 Blumentritt, Manila to further the researchers knowledge about the non-class advertising Philip Morris Products. Public opinion is the very important in order to support the basis for advertising alternative in

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promoting such products and the respond to 285 individuals is much needed. The researchers gather data from published studies book, magazines related to the topic, and from the events that Philip Morris held. Internet sources have also been widely used to provide current information. Questionnaires were used as the principal instruments in the study. It help the researchers to obtain the needed on non-class advertising in promoting Philip Morris Products. It was prepared by the researchers with the help of their adviser, only relevant questions are included. Questions were based and objectives of the study and were personally distributed to the locality of the respondents. Interview is another instrument used in the research. While the researchers distributed the questionnaire they were also able to interview them, making some vague points dearer. The conclusion that can be drawn from the problem on the effects of non-class print advertising in promoting Philip Morris products, from the summary of Finding. What is the most effective medium of promotion does Philip Morris Inc. uses? It is non-class advertising. This is based on the figures indicated by the surveys result. (Posters and Billboard ranked first and newspaper and magazines ranked second). The main reason why Philip Morris came-up with non-class print and public relations is because of the regulations and restrictions implemented by the government tobacco advertising on TV and Radio. According to Basilio, April, et. al conduct a study entitled The influence of BEARBRAND CHOCO TV ADVERTISEMENT FEATURING EUGINE DOMINGO to the grade schoolers of selected public and private schools in manila.

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Descriptive method was used in this research. This method is an investigation, which describe and interprets what it is. It is concerned with conditions an relationships that exist; practices that prevail; and beliefs and process that are going on; effects that are being felt are trends that are developing (Best, !963). it involves populations or universes based on the data gathered from a sample drawn from them (Wilson, 1987). Since this research aims to gather information about present conditions, the researchers ought to use the descriptive method of resource. Under this method, the researchers used questionnaires as our measuring instrument. The questionnaire includes TV advertisements and its effectiveness towards the consumer buying behavior. It also consist of the factors like the product awareness, buying behavior product positioning and product recall that will help to determine how the TV ads affects the viewers. The researcher will use the survey method, which is under the descriptive method of research. The survey research will help the researchers to have the knowledge on how the grade schoolers perceive the TV commercial. Respondents are composed of 378 students of selected private and public elementary school in Manila, where in our basis is that these school are considered to have large population. The researchers believe that the answers of the respondents will represent the response of the grade schoolers in Manila as a whole. It is important for the researchers to know the perceptions and opinions of the grade schoolers as their target market. Questionnaires will be distributed to 378 grade schoolers which is divided based on the total population of Grades IV, V and VI is each selected schools as public and private in Manila. These questionnaires include the product endorser's effectiveness and the children's perception about drinking milk. It consists the four interrelated parts. The first

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part aims to have the demographic profile of the occupation of the parents. The second part will be used to gather relative data concerning the influences if the Bear Brand Choco TV ad., in terms of product awareness and buying behavior. The third part is to measure the effectiveness on how the TV ad., influence in terms of product awareness and buying behavior. The last part is intended to measure the effectiveness of Eugine Domingo as the new product endorser of Bear Brand Choco in terms of product awareness and buying. From the study they have conducted, the ff. Conclusions are produced: 1. Majority of the respondents are female, range from 9 to 10 years of age, family is composed of 3 to 4 siblings, mother are plain housewife and fathers are office employees. 2. In terms of product awareness, most respondents prefer chocolate drink, have already seen the bear brand choco TV advertisement liked and enjoyed the commercial, are aware of bear brand choco and rated the commercial very good. In terms of buying behavior, most respondents told their mother to buy bear brand choco after seeing the commercial and still request to buy and drink bear brand choco. 3. In terms of product awareness most respondents made them aware most respondents made them aware f bear brand choco upon seeing the 28 glasses were influenced by Ms Eugine Domingo to drink bear brand choco.In therms of buying behavior, most respondents their made to buy bear brand choco after they enjoyed watching the TV advertisement. 4. In terms of product awareness, most respondents drink bear brand choco because of the influence of the advertisement.

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In terms of buying switch from their usual chocolate drink to bear brand choco. According to Arjorado, Abegail Grace P., et. al conduct a study entitled, Effects of the Nescafe's advertising to the PLM-CME students Decriptive and qualitative description was used as research design in this study. It compares the characteristics and opinion of respondents. The descriptive method will help the researchers to interact the data and formulate generalization, especially in the buying behavior. The researcher is all about the effects of the Nescafe advertising to the PLMCME students, the descriptive method is the most appropriate method to easily explain the facts. The main subject of the study is about the effect of advertising to the PLM-CME 4th year students. In this subject, we can formulate the different affects of Nescafe to the performance of the students academically. The respondents of this study are the PLM-CME 4th year students. In this limited respondents we can identify the sufficient and information the researchers need to finish the study. Researchers made use of the questionnaire as the instrument in data gathering. It is composed of 15 questions where in most of the questions is to know the effects of the Nescafe advertising to the PLM-CME students and the benefits that the students gain in drinking Nescafe. Their questions in classified as closed questions because the answer of the respondents is limited. Most of the questions are answerable by yes or no and some have choices that the respondents should check. The researchers conclude that 79.33% of the PLM-CME students were aware of the health and wellness effects to them by drinking Nescafe.

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a. 57. 47% or more than the half of the respondents have experienced physical and mental benefits after drinking Nescafe that support the health and wellness campaign of Nescafe. b. This study therefore concludes that almost 64.45% of the 4th year PLM-CME student testified that they academically excelled and gave credits to their Nescafe consumptions. This study show that 58.10% or more than half of the respondents will not increase their consumption of Nescafe upon seeing its advertisements. Finding of the study show 31.40% of 4th year PLM-CME students said that Nescafe has outstanding facts which leaves the 69.53% of the respondents having only the satisfactory rates that implies improvement on the part of Nescafe to prevent some misconception to other rival coffee brands. After testing the hypothesis of the research they have concluded to accept their null hypothesis. Furthermore, they have found out that the advertising of Nescafe has no significant effect to the PLM-CME students even though the table shows favorable result about the effects of advertising. According to Magtang, et. al conduct a study entitled Effects of magazine

advertisement as a selected medium of bench clothing co. as perceived by the 4th year high school students of UST. The research design refers to a scheme plan of action used to meet the research objectives of the study. It is detailed plan of how the research will be conducted. In order to ensure the attainment of the specific objectives of their study, the descriptive method is selected as the appropriate and most effective method in executing

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this research. The researchers conducted surveys in order to know the opinions and perception of the selected respondents towards magazines advertising as a form of advertising medium of Bench Clothing Company. Through this, the researchers are also able to gather information that is relevant to the study and which could ascertain the facts concerning the influence of the magazine advertising to the buyers preference.The respondents of the study are the 4th year high school students of the UST high school located at Espana, Manila. Their age range from 15-18 years old. The questionnaires were prepared by researchers contain relevant questions to obtain the needed information about the perception of adolescents on magazine advertising as a medium used by Bench Clothing Company was the questionnaire. After conducting the research, the researchers concluded that magazines ads of Bench Clothing Co. have a positive effect on buyers' preference. Since all or our respondents are magazine readers, a big possibility to reach out to this specific target market is really feasible. To be entertained being the primary reason for magazine readership makes magazine a very good advertising medium because one way of another ads are indeed entertaining. The attractiveness of the magazine ads of Bench, are we may perceive, is not only because of the celebrity endorser but the image and identity of the product also matters. They may be aware of the product and attracted to the magazines ads but is not an assurance that everyone will be motivated to buy and be product users but the small percentage that these people take part is not alarming as to consider magazine ads as not an effective medium. FOREIGN STUDIES

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According to GULMEZ, KARACA, and KITAPCI, was conduct a study entitled, The Effects of Outdoor Advertisements on Consumers: A Case Study Has pointed out in their findings that, Advertisement is an instrument of announcement and presentation, which is designed in order to persuade people voluntarily to display a certain behavior; to lead people to a certain thought; to draw their attention to a certain product, service, opinion or enterprise; to inform them about these in order to change their opinion and attitude towards these products, services, opinions and enterprises; or to make them to adopt a certain opinion or attitude toward them Advertisements are exhibited in various communication tools via purchase of time or space and created against some amount of money. Advertising is feature of various communication media through the purchase of time or space and advertising campaigns are created within an overall marketing budget. Advertisement probably occupies the largest place in the marketing network. It has an important role in the process from production to introduction of product to the market. Its main purpose is to introduce products or services and make people use them. Advertisement can also be used to generate perceived value and position the brand, to create brand awareness and to contribute to its corporate image and prestige. Since advertisement is a communication phenomenon, enterprises or institutions use tools such as television, radio, outdoor advertisements, magazines, newspapers and internet to convey their message to the target group. Among these instruments, outdoor advertisement is one of the communication tools by which we are continuously exposed to messages and information. The importance of outdoor advertisements, which are liable to charges and which convey the brand and image of the company to consumers, has not yet

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been adequately comprehended by advertisers. The proportion of advertising budgets allocated for outdoor advertisements confirm this situation. Nonetheless, the attractiveness of outdoor advertisements increases through the implementation of technological tools and, in this way; they attract the attention of a great many people. In time, enterprises will allocate larger budgets for outdoor advertisements. According to the research results, the most effective outdoor advertisement tool is billboards and the most high profile sector is the clothing sector. According to the respondents, we can see that television ranks first among the most effective tools in purchasing a good or service. According to the results of the research, people generally have positive opinions about outdoor advertisements. They think that outdoor advertisements are more eye-catching and creative when compared to other advertisement types and, their physical size lends them an effective visual impact. Respondents also stated that outdoor advertisements contribute to the cityscape in terms of variety and beauty, and they do not pollute the environment. However, awareness of outdoor advertisement amongst some people is relatively low. People regard the outdoor advertisements, which they regularly encounter, as a part of the city and they do not notice that these advertisements are outdoor advertisements. This situation has been changing as people become more conscious of outdoor advertisements. Outdoor medium in terms of advertisement and communication are coming to a very important stage all over the world. Outdoor advertisements are the only advertisement tools to which the consumers are exposed without paying any charge and which have an important influence on purchasing behavior thanks to their capacity to inform consumers and their visual size and effectiveness. Considering their direct contact with the consumer

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and their large scale, it is necessary for outdoor advertisements to utilize novel and modern implementations and to be supported with good marketing ideas. Accordingly, we can state that outdoor advertisement have greater effects on consumers than they are thought to have. The important thing is that enterprises should direct their abilities towards innovations and product differentiation. The results of the study indicate that outdoor advertisements which create different ideas, which are effective in informing and persuading people and which are sensitive to the environment can be viewed positively by consumers. In particular, among consumers with higher educational and income levels, outdoor advertisements are becoming striking and their visibility is increasing. According to NIKHIL Singh, et. al was conduct a study entitled, Outdoor Advertising in India 2009 Conclude that, Generally advertising managers would like to know the role of advertisements on the overall performance of the business firm i.e., return on investment and on profitability. A sale is a determining factor of company performance. Generally communication measures are easy to follow than sales effectiveness measures. If the measures of advertising are more relevant they will be difficult and costly. If it is less difficult and cheap the measures will not be more relevant. Therefore, the advertising manager has to make a balance between these two approaches. Based on the study of Karan Malvi entitled VES College of Arts, Science & Commerce Outdoor Advertising The Future Media Tool, he state that, in today's fragmented media world, outdoor advertising is the one answer to target mass audiences effectively. People of all backgrounds and nationalities are spending more hours each day

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out of the home: commuting, working, shopping and socializing. This is particularly true of young, mobile people who are traditionally hard to reach with other forms of advertising. With brands fighting for recall advertisers are committing larger budgets to this medium each year in order to deliver high impact displays in busy town and city centers throughout the world. Research has shown that outdoor advertising is one of the most cost effective and wide-reaching forms of advertising available. Case studies have proven the effectiveness of this medium, with its high levels of viewer retention and product awareness. Outdoor advertising offers repetitive impact at a low cost. In comparison to other advertising media, outdoor advertising delivers a lower cost per thousand of viewers reached. Outdoor advertising allows customers to target or pinpoint certain areas in which to promote their products or services. Your prime marketing areas are focused upon or new markets are cultivated. There is no waste of circulation as in printed media and fringe areas of radio and TV coverage. As a matter of fact, TV, radio and newspaper companies have become huge outdoor buyers - it appears the competition has even realized the benefits of using outdoor. This trend illustrates the effectiveness of the medium in meeting a variety of communication needs. As a result, outdoor media commands an ever-growing share of all ads spend. In the study of Toni Ivanoski Skopje entitled Outdoor Advertising (Master Thesis) September 2007 Has pointed out that, The study presents the people who drive a lot of kilometers or walkthrough the cities, driving bikes, have attractive socioeconomic profiles, higher

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education and experience and high presence of children. Those who drive and others are significant consumers of out-of-home media. He passionately believes in the unlimited power, advantages and big opportunities of the outdoor media. The outdoor advertising is so powerful and it is the only truly public media. The Outdoor Advertising as the oldest form of advertising is dating more than 5000 ago. Today the out of home with the latest trends with new technology is rapidly evolving in all different kind of media and the future together with the digital and scrolling technology is indeed bright. All Outdoor advertising continuously generate and makes the most dangerously powerful media that in the right hands is achieving amazing 100 results. Whatever was advertised its important that the message was seen, read, believed, remembered and action upon by target customers. All researches, analysis, estimations, evaluations and other methods are important for the management of OA. The market structure described the state of a market with the market forms of competition. The five critical communication functions and processes were described: informing, persuading, reminding, adding value and assisting the company efforts. The expensive proposition as a need for purchasing the outdoor space is making the budgeting very important decision. Another important decision is to attain the objectives, to make the game plan or the advertising plan and strategy. They must determine the target market, their position, acceptability of the product and etc. The advertising agencies have that task and responsibility. They must develop the promotion, place the ad, carry and monitor and finally estimate the efficiency and effectiveness from the campaign. All employees working indifferent departments are obliged for their responsibilities. The outdoor media speaks, talks on every language, communicate with its hanged picture fully of pleasure.

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The people who show interest for the advertised product are potential target people. The message is communication element and must be strong with more noise or other effects, but to diminish from the others. The elements of communication process are: sender, encoder, message, channel, receiver, noise and feedback. It can be used and the other forms of nonverbal communication: facial expressions, body language, body and eye contacts, color symbolism, paralanguage and other forms. We described and the negotiation as the most useful tool in communicating. The information is crucial element for carrying out all marketing researches and analysis, planning, implementation and monitoring. Persuasion is the essence of the marketing communication. Today on the out of home spaces are available and may be seen the street furniture, transit and alternative outdoor media. Most of them are the stationary or the mobile billboards, big boards, wall panels, taxi advertising, transit adverting, mall advertising, mega lights, city lights, digital ads and other creative commercial products and advertisements. In one of the previous chapters was described and the marketing research as a form of business research that examined all aspects of business environment. The focus group is a tool of the qualitative research and may be used as a method about the customer needs and understanding the market places. How the people purchase, when they purchased, what products they might purchase and why they are purchasing is related to the customer behavior. Brain activity is another research based on the link between the peoples thinking, what they like and what their brains reveal they like. The Outdoor advertising in Macedonia is rapidly increasing, same as the increase of the brand awareness of the companies. Today the people are more out of home than staying home. This can be

analyzed from the best positioning ad, with frequency level, where the vehicle movement

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on the streets today, is more than40% than seven years ago. Different type of ads emphasis the OA in Macedonia: stationary 12m2 billboards, prizma, wallscape, rolo board, mega board, big board, mega and city lights, TV Screen, mall ads, promo people and bikes, bus and taxi advertising and other advertisements. The effects from OA can be proved when the message is read and remembered. From the pricing strategies weve seen that pricing is an important strategic issue, because it is related to product positioning. The reference prices are important to be included before setting the final price in selling the Outdoor space and the price must be adjusted through the price-adaptation strategies: geographical pricing, price discount and allowances, Based on the study of Gyandeep Kumar entitled, Study of Advertisement Effectiveness 2010. Descriptive research design is used in this research. It includes survey and fact finding inquiries of different kinds. The major purpose of descriptive research is description of the state of the affairs, as it exists at present. Stated that, in concluding part of this project it shows that advertisement is very much important for any business but advertisement alone do not account for companys success. From the above findings, we come to know that life insurance companies have very good visibility. Most of the time people are able to recall the advertisements. People notices majority of advertisement on Television followed by Newspapers. The role of other media such as Internet, Radio, etc. needs be enhanced and groomed along with T.V and Newspaper. Media such as internet, telephone and family/friends can be used with great deal in the advertisement because it has greater impact on the user due to its i In television channels, entertainment channels lead in the frequency of life insurance ads. They have also greater relative visibility in comparison of other channels therefore

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advertiser needs to identify the proper slot and timing for their advertisements according to their budget. In the content part of ads, people agrees that they understand the advertisement shown but they dont find relevancy and somewhat have not been prompted by those ad to buy the policy. Therefore, efforts should be made to make advertisements more trustworthy and innovative so that people can be persuaded to buy the policies. Each ad should speak about how their firms offers can help customers instead of telling how insurance as a whole can help you. RELATED LITERATURE LOCAL LITERATURE In her book entitled Advertising in the Philippines (its Historical, Cultural, and Social Dimensions) De La Torre (1997) provides important facts and information about Outdoor Advertising. In her book, she pointed out that Outdoor Advertising, specifically, billboards, is making a comeback. A report on the outdoor media sector during the advertising congress in 1985 indicated that the practical, low-cost outdoor or out-of-home media shall receive more share in the advertising pie. She also cited that: Outdoor reaches people in an increasingly segmented media market with an equaled frequency and at a low-cost per thousand impressions. Besides, those who see the boards are the upscale consumers independent minded, mobile, well educated with good income who are able to recall the message and remember the advertisers name twice as often as the closest media competitor. This high recall is

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attributed to the billboards precise, brief messages unmatched size and quality of the reproduction. Gomez and Arante (1998) stated that people travel. But they still have to be reached by advertising. And this is done through outdoor advertising. Billboards along highways and national roads, posters on sari-sari stores and electric posts, electric and neon signs on top of tall buildings, sky-writing techniques, and large stationary balloons are all composites of the outdoor media of advertising. Miranda, (2000) identified the outdoor advertising medium possesses some marked characteristics that are summed up as follows: 1. Outdoor Advertising is a fast inspection medium. The observers, known as circulation, walk or ride past the sign. The message must then show in a way that will insure rapid perception, observation, and recognition. 2. This medium possesses the attention elements of size, color and action. 3. It reaches nearly all of those who go out-of-doors and that are a large audience.

Based on studies made, some 76% of the human population goes out doors daily, while 60% pass outdoor advertising daily. 4. Outdoor advertising is a good reception medium. In the course of a week, many observers see a given sign several times. This repeat factor is important since it does much to drive home the message. 5. This advertising possesses a high degree of flexibility. Different signs can be used in different geographic locations changes can be made to suit season, climate, peculiarities of the market and special sectional merchandising campaigns.

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6. Finally, this medium possesses high circulation concentration. The signs are located where the people are located and where the traffic count is high. In other words, they are located in the pathway of the crowds. Pagoso, Dela Cruz, Canoy Jr. and Co (1996) pointed out in their book entitled Principles of Marketing that an adequate marketing plan begins and ends with the consumer. This is so because it is in satisfying the wants of the consumer that the marketing man finds justification for his existence. Specifically, he needs to remember that thee customers wants and needs, preference, beliefs, habits and eccentric constitute important determinant of the product which he will offer the channels he will use, the promotional efforts he will employ and the price he will charge to them. They concluded that it is therefore the responsibility of the businessman to learn anything possible about the customers and potential customers of goods he markets. In the book Business Organization and Management 4th Edition of Gutierrez, Pura, Jr, and Garcia (1981), they stated that advertising is an integral factor in modern merchandising: Its motive is to create demand for a particular product or service.

Advertising specifically strives to present the item advertised in a favorable light. Advertising is attributed to have certain specific purposes; the primary purpose is to bring the company and its products quickly and favorably to the attention of the consumers who may not be reached by the salesman in a reasonably short time; the second purpose is to pave the way for salesmen, and the third purpose, is to create goodwill toward the company. FOREIGN LITERATURE

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In thee book of Arens (1999), Contemporary Advertising 7th Edition he defined advertising as the structured and composed non personal communication of information, usually paid for and usually persuasive in nature , about products (goods, services and ideas) by identified sponsors through various media. He then also explained that first; advertising is a type of communication. It is a very structed form of applied communication, employing both verbal and non verbal elements that are composed to fill predetermined space and time formats that are controlled by thee sponsor. Second, advertising is typically directed to groups of people rather than to individuals. It is therefore non personal or mass communication. And of course, most advertising is intended to be persuasive to win converts to a product, service or idea. Some ads, such as legal announcements, are intended merely to inform, not to persuade. According to Berkowitz (1999) Outdoor Advertising consists of couple of variations, namely billboards. Because of space and time exposure limitations for these media, outdoor advertising is typically viewed as a supplemental medium to support exposures in their media. Outdoor advertising is useful for its reminder appealed wherein the introduction stage of a service to generate brand name or service recognition. The major advantage of outdoor advertising is the repetition it can provide through broad exposure of the message yet its limitations are significant in terms of the degree of selectivity and the message that can be communicated. As a medium, outdoor advertising has a image problem. There are community concerns that billboards, in particular, are form of visual pollution.

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McDaniel (2009) had pointed out that outdoor or out-of-home advertising reaches a broad and diverse market and is, therefore, ideal for promoting convenience products and services as well as directing consumers to local businesses. One of outdoors main advantages over other media is that its exposure frequency is very high, yet the amount of clutter from competing ads is very low. Outdoor advertising also has the ability to be customized to local marketing needs. For these reasons, local business establishments, such as local services and amusement, retailers, public transportation, and hotels and restaurants are the leading outdoor advertisers. He also stated that Outdoor is more that just billboards! Most advertisers look to create product recognition and allegiance in the market as part of their marketing strategy. The use of a brand icon in outdoor creative has been found to make an ad 40% more memorable than an ad without a brand icon and if your goal is to turn your product or service into a brand no other medium can do this as cost effectively as outdoor can brand, create and maintain awareness, and can reach and impact your target market in a way that no other medium can. Wright, Winter Jr. and Zeigler (2001) said that among out-of-home media, the dominance of subtype is outdoor advertising, sometimes called the largest advertising medium in existence (in terms of physical structure) only in outdoor ads can be shown full size or an aspirin tablet 1000 times its actual size. Supposedly, use of the outdoor medium dates back to 3000 B.C. when Egyptians carved the names of kings on their temples. Most people think of outdoor advertising as billboards that dot commercially zoned city streets and appear along highways, advising us of manufacturers products and of the

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services of many local businesses. Early uses of this advertising were for the promotion of theatrical performances bills were placed where passersby could see them on boards, fences, or walls. Thus, the word billboards came into use with the coming of automobiles and highway systems, a natural evolutionary process brought outdoor posters to the roadside. There are different effects of advertisement according to Bovee and Arens (1992) in their book, Contemporary Advertising 6th Edition. And these are some: o Effect on the Competition The compliant is often heard that small companies or new comers to an industry cant possibly compete with the immense advertising budgets of big business. The belief seems to be that advertising restricts competition. Some say that advertising campaigns by big companies with large advertising budgets have ruined small companies. Its possible that intense competition does tend to reduce the number of businesses in an industry. It also may be that the firms eliminated through competition were those that served the customer least effectively. In many cases, advertising by big companies only has a limited affect on small businesses because no advertiser is large enough to completely dominate the whole country. In industries characterized by heavy advertising expenditures, though it is certainly true that advertising may inhibit the entry of new competitors. o Effect on Consumer Demand The question of advertisings effect on total consumer demand is extremely complex. Numerous studies show that promotional activity does some have effect on aggregate consumption, but there is no agreement as to thee extent. The effects of many

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social and economic forces, including technological advances, education levels of general populace, increases in population and is per capita income and revolutionary changes in lifestyle are more significant. At the same time, advertising has done little slow decline in popularity of such items as mens and womens hats, fur coats and manual typewriters. We might conclude, therefore, that advertising can help to get new products off the ground by stimulating demand for the product class. But is declaring markets, advertising can only hope to slow the rate of decline. We can also conclude that in growing markets, advertisers generally compete for shares of that growth. In static a declining markets, they compete for each others shares.

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