The Effect of Internet and Television Advertising An Economic Analysis
The proposal is based on the foundation that markets and industries are on the rise as a result of globalization and the introduction of new technologies. Conventionally, marketing is being done with traditional media print, television, and radio. Traditional marketing includes the magnitude, permanence, control, low-cost and mass market research (SRI International, 2001). The geographic focal point was partial on a national scale (SRI International, 2001). However, because of the fact that everything changes, marketing along with management has changed and grown by a long way over the years. In this era, the focal point has shifted to flexible specialization, strategic alliances, outsourcing and project teams (SRI International, 2001). Furthermore, the key requirements are now centered in the magnitude, speed-to-market, elasticity, modernization, networks, customer service and customization (SRI International, 2001). The long-established economy has been replaced by modern ways of marketing and management. As Castells (2000) stated, this new economy is fundamentally distinct from the traditional model, in that success now depends upon the effective use of information, the implementation of global concepts, and the creation of networks among economic agents. This involves familiarity, production prearranged on an international scale, and communication among various business networks.
With that in mind, should a quicker, cheaper medium with the capabilities to reach a larger target population such as the Internet replace television Popular brands such as McDonalds, Insurance Companies like All State, FedEx just to name a few are advertising on the internet and even more have been doing so in the past. This allows the companies to combine different types of advertisements, and they also have the option of placing banner advertisements on other websites. It is shown though that these companies still use television advertisements, this leads us to conclude that both medium are important tools for marketing. So what is the difference between the two The basis of this study is to review the differences and similarities between internet and television advertisement and to conclude their economic impact on organizations and which is advantageous and generally favored by companies.
BACKGROUND OF THE STUDY
Advertising can be defined as an act of gaining the attention of the public to a product or business, for example by paid announcements in various media types. Another definition deems it as a way to impart information about products which consumers use to make brand choices (Frith, 1997). Numerous businesses, whether it be a profit or non-profit, open or classified, use or create their own styles of commercials for any function they wish to accomplish. Leiss (1972, 122) states that, advertising has been recognized as a major vehicle of social communication in modern Western society. Another characteristic of advertising is that it can target the specific direct needs of persons and appeal to them. Frith (1997) stated Embedded in advertisings messages about goods and services are the cultural roles and cultural values that define our everyday life. The products we consume express who we are, they are cultural signifiers (p.3).
Advertising is now being seen as a menace because it is being misleading, and as such tends to infringe on more than a few consumer rights, causing the consumer to become a casualty. They hoax consumers by including claims in that are not completely true and place the rest in the fine print or just go on to make statements that are unproven and not supported by any anybody. (Maine Attorney General, 2004). They sometimes tell customers about discounts that are not true or about free items that are not actually free, things you have to sign up for and pay for before you get your free item. (Maine Attorney General, 2004).
This type of deception tends to be minimal in television advertisements because the television stations operate by set regulations whereas anyone can get on the internet get a websites and say whatever they want to say.
A business can use various means of advertisements through printed paper (newspapers or magazines), radio, television, outdoor advertising, billboards, cinemas and direct mail (Ford-Hutchinson and Rothwell, 2002 Hofstrand, 2005). Those were once the most widespread types of advertisings, however, over the past few years there has been an increase in the use of the internet, and as such an increase in advertising through this medium. It is said by Ford-Hutchinson (2002) that television advertising still remains the dominant medium for organizations.
Television advertising remains the most established type of advertising in use. (Ford-Hutchinson and Rothwell, 2002). According to Katz (2003), almost every household in America has at least one television set, and two-thirds (75) have two or more. Also, the total TV consumption hours have grown, with the average household was projected to spend 1826 hours watching TV in 2005 (IBM Institute for Business Value, 2006).
Katz (2003) has said that the advantages of television advertisement include the opportunity to use sight, sound, color, and motion in commercials. However, it has its disadvantages as everything else, these include high costs brief exposure time the cluttering of spots in the airwaves and the difficulty to find a good spot or schedule time.
Internet advertising is at times called web advertising and is a type of advertising where a person can organize or tailor the information according to hisher interest with the use of internet (Ming-Yi, 2001). This medium provides immediate interface and association to the patrons since the buyers or the audiences are the ones who come to a decision on what ad to view which is favorable to the field of their curiosity. Using internet advertising the consumers are given the power to control the opportunity in establishing an on-line participation through the use of internet (Ming-Yi, 2001). They do not have to see advertisements for products or services they know they are not interested in.
A study that was done on the use of the internet, conducted by Brown (2003), found that Internet use was growing, specifically in Europe at the time of the study. They concluded that Internet penetration was almost 50 of the total populace in the United Kingdom and Germany, and nearing 40 in France, Spain and Italy (Brown, 2003).
Advertising and Economic Growth of an Organization
Advertising can be said to have two aspects, a positive and a negative, both of which have an impact on the economy. A good example can be the Economic Document Systems Foundations (2005) report that the advertising industry would generate 5.2 trillion in direct and indirect spending in the United States alone, or 20.5 of U.S. economic activity in 2005. A study done by Yankelovich Partners and Harris Interactive, found that advertising during a lethargic economy creates a gung ho advantage, with a preponderance of executives supporting that bearing in mind a company advertise throughout slower times makes them feel extra positive about the companys pledge to its products and services (LeClaire, 2006). Fundamentally, the study shows that the use of any advertisement for the duration of any economy can create customer faithfulness and a long-term aggressive advantage (LeClaire, 2006).
STATEMENT OF THE PROBLEM
The problem that is to be looked at in the study is the comparison of economic impacts of the two advertising medium television and internet. The purpose of the study is to answer the following research questions.
1. What are the similarities and differences of TV and Internet advertising
2. What are the pros and cons of TV and Internet advertising
3. How does advertising affect the economic growth and success of an organization Which is more effective
4. What is the most fitting type of advertising policy that a business organization should apply
OBJECTIVE OF THE STUDY
The intent of the study is to determine which advertising medium is economically better for an organization television or internet. The following are the specific objectives that will be addressed
1. Identification of the characteristics of the modern types of advertising in relation to economic growth and success of an organization.
2. Identification of the pros and cons of TV and Internet advertising in affecting the association model of customers and business.
3. To investigate how TV and Internet can help triumph over the obstacles of opposition, thus add to the achievement of the organization.
4. To study the most fitting means of advertising for sustaining the economic achievement of a business.
SIGNIFICANCE OF THE STUDY
The need to recognize the most efficient way to advertise an item for consumptionservice or business itself is one of the most fundamental practicalities in acquiring a reputation. Advertising entails towering sales guarantee that can be delivered by means of well-organized advertising philosophy and applications. Realization of competent advertising strategies and its apt choice in type is critical in ensuring economic achievement in the organization. As such, this research study gives an appreciation of the distinctiveness of TV and Internet advertising as one of the most accepted techniques used by many businesses. The assessment of its efficacy in the economic presentation of the organization is presented. In the same way, the study clarifies how TV and Internet advertising strategies provide pros and cons to both the organization and consumers. What is more, the significance and noteworthy functions of TV and Internet advertising are highlighted that allow them to meet the principles and strain of the consumer marketplace. As such, the conclusion of this paper will provide understanding of the concepts obtainable so as to produce statistics and information that every business could use in order to come up with campaigns and designs that will deliberately position them in the extremely competitive, varied, and multifaceted business atmosphere that is practiced at present.
SCOPE AND LIMITATION
This research proposal in particular is evocative and investigative in approach. The investigative purpose of this plan is absorbed on the individuality of TV and Internet advertising mainly their advantages and disadvantages as well as the direct and indirect effect and power in the economic enlargement and achievement of the organization. As such, it is essential to place a boundary on the scope of the study for upcoming researchers ease in using this study as a reference in their expected educational actions that this study at length or in part answers.
METHODS AND PROCEDURES
Primary and secondary studies will be conducted. In primary research, the study will review customers and organizations asking bout television and internet advertising. A structured questionnaire will be created and will be utilized as the study tool. It is intended that the questionnaire will have a 5 point Likert Scale. The data collected will be compared and analyzed using Statistical Package for the Social Sciences (SPSS).
A secondary study will also be conducted. The sources used possibly will comprise previous research reports, newspaper, magazine and journal content, organization statistics, just to name a few. Now and then secondary research is necessary in the introductory stages of research so as to settle on what is known and what new data are requisite if any, or to notify research design. In this paper, obtainable conclusions on journals and existing information on books will be used as secondary research. The conclusions from the journals and books will be analyzed. Types of research journals selected are all connected to issues in advertisements, exclusively television and internet advertising. On the whole, understanding will be conducted which can be qualitative in nature.