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Republic of the Philippines SURIGAO DEL SUR STATE UNIVERSITY Tandag City, Main Campus COLLEGE OF BUSINESS AND MANAGEMENT EFFECTIVENESS OF RADIO ADVERTISING AS A MARKETING TOOL IN TANDAG CITY An Undergraduate Research Proposal Presented to The Faculty of the College of Business and Management Surigao del Sur State University Tandag, Surigao del Sur As a Requirement for the Degree Bachelor of Science in Business Administration Major in Financial Management Rodriguez, Zaida B. Rosil, Eliakim L. Solis, Janice M.

Effectiveness of radio advertising as a marketingtool in tandag city

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Page 1: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

EFFECTIVENESS OF RADIO ADVERTISING AS A MARKETING TOOL IN TANDAG CITY

An Undergraduate Research ProposalPresented to

The Faculty of the College of Business and ManagementSurigao del Sur State University

Tandag, Surigao del Sur

As a Requirement for the Degree Bachelor of Sciencein Business Administration

Major in Financial Management

Rodriguez, Zaida B.Rosil, Eliakim L.Solis, Janice M.

October 2012

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Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

CHAPTER I

THE PROBLEM AND ITS SETTING

Introduction

Radio stations today generally run their advertising in clusters or sets, scattered

throughout the broadcasting hour. Studies show that the first or second commercial to

air during a commercial break has higher recall than those airing later in the set. Most

radio stations and advertising agencies subscribe to this paid service, because ratings

are keys in the broadcast industry. Ad agencies generally purchase radio ad based on a

target demographic. For example, their client may want to reach men between 18 and

49 years old. The ratings enable advertisers to select a specific segment of the listening

audience and purchase airtime accordingly. Ratings are also referred to as numbers in

the business.

Advertising is a form of communication used to encourage or persuade the

listeners, sometimes a specific group of people, to continue or take some new action.

The purpose of advertising may also be to measure attitudes that a company is viable

or successful.

Radio is an ideal media for marketing fast moving consumer goods because it

can reach wide targeted listener demographics in urban habitat. A large number of

people listen to radio while commuting in urban areas and responding to the broadcast

of various commercial messages. This study aims at analyzing the impact of radio

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Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

advertisements on urban commuters towards buying behavior in retail stores and

attempts to determine the role of radio advertising on dissemination of information on

the sales promotions. The impact of radio advertisements on the store choice and

buying preferences will be analyzed based on empirical investigation. The study reveals

that shopping behavior of urban consumer at retail stores in response to radio

advertisements is highly influenced by the physical, cognitive and economic variables.

Radio commercials hold a marginal share among the main media categories, for

example newspaper and television. However, it is still regarded as an important and

useful medium in marketing and advertising in large cities and metropolitans. The

broadcast of commercials on radio needs real feel orientation and voice is the single

major determinant that draws the attention of listeners. Programs on sales and market

news are the principal preferences of urban commuters for large metro radio stations

(Parker, 1993). The majority of short and informative advertisements for consumer

products in an urban setting use radio advertising with communication appeal related to

the efficacy of products and psychosocial enhancement of consumers at retail outlets.

Promotional efforts by manufacturing and retailing companies appear to focus on

positive emotional appeal to influence consumers through radio advertisements (Yusuff

and Yusuf, 2009).

Radio advertising is one of the tools of advertising which is effectively used for

communication and positioning. It is one of the foundations for effective and successful

advertising. Radio can be used effectively for advertisement since it can target the large

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Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

audience and because of its high reach. Radio is good at increasing awareness about

the brand and business and helping to bridge the brand image.

FM radio is a new entity altogether and has to deal with new market dynamics.

Media owners dealing with new markets will virtually have to draw up their strategies as

they go along, create programming that is new, innovative and grab away eyeballs from

TV sets and make them tune into their radio sets. It is a whole new challenge and

competition is never far away. Ad revenues will also not be easy to come by, as

advertisers will expect media players to put their money where their speakers are before

they commit large sums of money towards radio advertising. The other challenge for

radio in attracting advertisers is the nature of the medium-radio. It has always been

considered as being a reminder medium. The involvement of listeners to radio is low,

vis a vis television or print media.

Theoretical Framework

The radio commercials in the test reels consist of several different spot lengths,

ranging from 15 to 60 seconds. The longest commercial played on the radio just for 120

seconds. Those however are rare. In theory, one could assume that the longer a spot,

the better it will be remembered or at least, the greater the chance that it will be heard.

Research on television commercials proved that this theory holds true for the medium

television: a doubling or tripling in spot seconds results in duplication in recall.

The spots for advertisement can be for 10 sec, 20 sec, 30 sec and 60 sec. In

general,

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Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

10 second spot should contain 25 words

20 second spot should contain 45 words

30 second spot should contain 65 words

60 second spot should contain 125 words

If one has never written a spot, 30 seconds sounds like an impossibly short

time to get ones message across. But if one takes a stop watch and times some spots

on the air; one will see that quite a lot can be accomplished in a short time. In fact, one

may find that 60s, unless very well written and well produced, sometimes seem a bit too

long.

A 60 does allow one more variety in music, sound effects, and voice and can be

useful for political message, announcement of a new or little-understood service, or

other sports with information/education content.

Thirty is usually 70 to 80 words long, and a; 60, around 150 to 160 words. The

cost of a: 30 is usually about 60% to 75%.

Some stations no longer charge a separate rate for: 30s and: 60s. Instead, they

charge a unit rate. In other words, a: 30 costs the same as a: 60. Obviously, this is one

case where one might want to use a: 60 to take advantage of the “free” air time. One

should check the rate cards of the stations; one is interested in, or ask one’s sales

representative.

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Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

Conceptual Framework

The schematic diagram shows and explains the continuous flow of the study. The

input, process and output are presented by three geometric boxes.

The input box represents the effects of radio advertising to the respondent in

terms of sales and popularity. As illustrated in the second box, the process presents the

satisfaction of the advertisers in terms of services, and the problems encountered by

indulging radio advertisement in terms of costs and customer’s loyalty.

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COLLEGE OF BUSINESS AND MANAGEMENT

Figure1.Schematic diagram

Figure 1 shows the schematic diagram which explains the sequential flow of the

study to be conducted.

Effects of Radio Advertising to the Respondents in terms of:

Sales Popularity

Problems encountered of indulging radio

advertisement in terms of:

Cost Customer’s loyalty

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Statement of the Problem

This study intends to evaluate the effectiveness of radio advertising as a

marketing tool.

Specifically, it will seek to answer the following questions:

1. What are the effects of radio advertising to the respondents in terms of:

1.1 Sales

1.2 Popularity

2. What are the problems encountered in indulging radio advertisement in terms of:

2.1 cost

2.2 customer’s loyalty

3. Are the respondents satisfied with services of the radio stations?

4. What recommendations may be proposed as an output of the study?

8

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Significance of the Study

This study is of great importance and benefits to the following people.

Business owners. They are the first to benefit this study because it will help

them to get ideas on how to solve the problems encountered. It will also help them

become more hard-working, idealistic and ready to handle such responsibilities and

become aware in what kind of marketing tool would be use and what would be the best

thing to do.

Radio Stations. These are the second to benefit from this study because it will

help them improve their services through advertising products.

Future Researchers. They will find practical ideas to improve practices or may

find ideas worth investigating to get some information as basis or guide to their paper

works.

Scope and Limitations of the study

The scope of this study focuses on the effects of radio advertising as a marketing

tool in Tandag City, Surigao del Sur. The coverage of the study is from June to October

2012. The respondents of the study are limited only to the advertisers in the said city.

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Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

Definition of terms

To have better understanding of this study, the terms are defined conceptually

and operationally.

Advertising. According to the Funk and Wagnall’s Standard Desk Dictionary, the

term is defined as an advertisements collectively; the business of writing and publicizing

advertisements. In this study the term is used on a particular product or services that

promote and give publicity through radio broadcasting.

Effective. According to the Funk and Wagnall’s Standard Desk Dictionary, the

term is defined as the producing or adapted to produce the proper result; being in force,

as a law; producing a striking impression as a speaker. In this study the term is used as

a productive of producing a result.

Management. According to Merriam Webster Dictionary, the term is defined as

conducting and supervising of something (as a business); specially the executive

function of planning, organizing, coordinating, directing, controlling and supervising any

industrial or business product or activity with responsibility for the result. In this study

the term is used in management of a radio station.

Marketing. The activity set of institutions and processes for creating,

communicating, delivering, and exchanging offerings that have value for customers,

client, partners, and society at large (http://dictionary.com).

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Popularity. According to the Funk and Wagnall’s Standard Desk Dictionary, the

term is defined as the as the condition of being popular. In this study the term is used in

popularity of the advertised product.

Radio Stations. According to the Funk and Wagnall’s Standard Desk Dictionary,

the term is defined as the as an installation of all the equipment needed for effective

radio broadcasting, esp. when used for commercial or educational purposes and

licensed to employ an assigned frequency and power.

Sale. According to the Webster’s Dictionary, the term is defined as the act of

selling; the exchange of anything for money; a selling of goods more cheaply than

usual. In this study the term is used as an act of completion of a commercial activity.

Satisfaction. According to the Funk and Wagnall’s Standard Desk Dictionary,

the term is defined as the act of satisfying or the state of being satisfied; gratification;

the making of amends, reparation, or payment, as of a claim or obligation. In this study it

refers to the satisfaction of the business owner of a product advertised.

Services. According to the Webster’s Dictionary, the term is defined as the work

of a servant or employee; the time spent in the forces. In this study, it refers to the

services offered by the radio stations.

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CHAPTER II

LITERATURE REVIEW AND STUDIES

This chapter presents the related literature and studies from which the present

study is anchored.

Related Literature

Foreign

Great advertising is memorable. Advertising can use a variety of techniques to

make an ad memorable. A few of those approaches includes originality,

provocativeness, intelligence, entertainment, or revealing product or consumer insights.

One thing worth nothing is that a memorable ad in and of itself is not enough. The

consumer must remember the product or brand. There are plenty of ads that are

memorable, but consumers don’t remember who or what they were advertising.

Advertising cannot be great if people don’t remember the brand or the product (Moriarty,

Mitchell and Wells, 2009).

Back in the 1890’s, advertising was thought of as “news about products and

services”. Advertising often gives consumers news: news about the new car models,

news of the grand opening of a supermarket or bank, or news about a clearance of

summer furniture at a department store. But advertising is more than just news, and a

famous advertising writer, John E. Kennedy, revolutionized the advertising business in

1904 when he unveiled his own definition. “Advertising”, he said, “is salesmanship in

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print”. Nobody had looked at advertising this way before, and Kennedy’s statement

astounded business people. But there was truth in Kennedy’s definition. Advertising is a

form of selling, for its job is to persuade the consumer to take some action favorable to

the advertiser: to buy the product, use the service, or accept an idea about a company

or an industry. John E. Kennedy’s Definition was good for advertising because it

influenced advertising writers to concentrate on the persuasive aspect of advertising,

and it was good for Kennedy because it made him rich. But it is not good enough for

advertising today. We now define advertising as follows: Advertising is a sales

message, directed at a mass audience that seeks through persuasion to sell goods,

services, or ideas on behalf of the paying sponsor (Burke, 1980).

Every great ad implements a sound strategy. The advertiser develops the ad to

meet specific objectives, carefully directs it to a certain audience, creates its message to

speak to that audience’s most important concerns, and runs it in media ( print,

broadcast, radio or internet, for instance) that will reach its audience most effectively.

Retail advertising is local and focuses on the store where a variety of products can be

purchased or where a service is offered. The message announces products that are

available locally, stimulates store traffic, and tries to create a distinctive image for the

store. Retail Advertising emphasizes price, availability, location and hours of operation.

Marketing is the process a business uses to satisfy consumer needs and wants through

goods and services. The particular consumers at whom the company directs its

marketing effort constitute the target market. The tools available to marketing include

the product, its price and the means used to deliver the product, or the place. Marketing

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also includes a method for communicating this information to the consumer called

marketing communication, or promotion (Wells, Burnett & Moriarty, 2001).

Local

Advertising is communicating your key brand messages to your potential

customers. It makes people aware of your product, and the benefits the products offer.

Advertising also aims to convince other brands offering similar benefits. Advertising also

encourages the customers to try your product as early as possible, and as regularly as

possible. An effective advertising campaign is the end result of a combination of a

myriad of data, policies, objectives, Strategies. In fact, the advertising plan, from which

every ad campaign emanates, is a part of a more comprehensive plan called the annual

marketing plan (Villanueva, Jr., 2000).

More than any tool of communication, advertising has diffused information about

commodities and services, marketed them, and persuaded audiences of their important

place in their lives. However, advertising has done more than these. Advertisements

have become vignettes of social life. They portray individuals as having many social

relationships. They suggest ways of dealing with those relationships. Subtly, too,

advertisements advise a great deal about work, health, lifestyle and role in society. In

the absence of traditional authority, advertising has become a kind of social guide,

depicting us in all the myriad situations possible to a life of free choice. To some extent,

advertising describes human relationships: between one individual and another,

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between an individual and institutions. In so doing, advertising acts as more than a

guide to consumption (Miranda, 2002).

Much had been written about the advantages of radio compared to other media.

We’ve learned valuable lessons about this cost-effective medium. Needless to say,

numerous brands have gained from it many times over.

There are hundreds of reasons why marketers should advertise on radio. A radio

ad that is relevant and entertaining can build critical mass. A radio ad sang with a

catchy tune is many times even more effective than an ad that is simply verbalized and

twice as much when read (http://www.inquirer.net/20100729-283930-xml.html).

Related Studies

Foreign

Though the print and television media has taken the major share of revenue from

commercials, advertisements on radio still hold audience of large cities. However, little

research has been published on the impact of commercial broadcast by AM or FM radio

on urban consumers. Most studies did not consider radio and outdoor advertising as

principal research agenda, despite their importance in business communication,

consumer behavior and towards sale stimulation for retailers (Mulhern, 1997; Volle,

2001).This paper aims at analyzing the impact of radio advertisements on urban

commuters towards buying behavior in retail stores. The study attempts to determine

the role of radio advertising supported by outdoor advertising by retailing firms on

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situational variables on re-dissemination of information, the store choice and buying

preferences based on empirical investigation in Mexico City. The moderating role of

individual variables such a past buying behavior and psychodynamics also been

discussed in the study in the context of the radio commercials and outdoor advertising.

Accordingly, this paper contributes to the existing literature on the subject.

The differential effects of advertising campaign of leading and challenger retail

firms on expected sales of products reveal that radio advertisements produce

substantial arousal among consumers and enhance volume of sales in various outlets

of retail stores. Thus retailing firms replicate this advertising strategy in large cities and

metropolitan areas during different leisure sales seasons (Panagopoulos and Green,

2008). Commuters in metropolitan areas enjoy higher quality commercial broadcasts

differentiated by music, traffic information and news headlines. Audience in confined

place like automobiles in large cities and competitive markets benefit from higher quality

radio communication services than household audience listening radio programs at

leisure time. However, it is argued that lack of format variety causes low listenership

and consequently the competitive markets are underserved by commercial radio

stations (Halcoussis and Lowenberg, 2003). The creative strategies used in radio

commercials are different and advertising firms adjust their communication strategies in

response to the specific needs of different consumers. The Central Place theory

advocates that products with higher price and lower buying frequency influence

positively the perception of consumer on the promotional communication of stores

delivered through the radio programs and outdoor advertising (Hubbard, 1978; Yadav,

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1994). The perception of radio as an intimate medium of communication during the non-

availability of visual media profoundly affects the way people consider listening to radio

programs including commercials, perform information analysis, and make applied

decisions. Since urban commuters have easier access to radio communication, they

develop higher perceived intimacy to the broadcasts (e.g. Kuffert, 2009).

Listening to radio while travelling either by public or personal transport in

metropolitans has become a way of life which is not only used as a relaxing tool but also

as a source to seek current information and track events. Certain advertising attributes

of radio commercials trigger emotional responses and advertisements stimulate

audiences in a pleasurable way. Most radio commercials address retailing campaigns

that elicit an emotional response, especially happiness among consumers (Chaudhury

and Watt, 1995). Consumer products companies use radio for campaigns more than

television, as precision and effectiveness of message is possible by more meticulously

targeted radio advertisements than broadcast over the visual media (Overby and Barth,

2006). In developing countries the radio advertisements enhance the pleasure of

entertainment as well as serve as source of current market information. It is observed

that short-term effect of radio advertisement towards store-level promotions and store

choice is significant, though choice is mainly driven by loyalty. Broadcast of

advertisements on radio are generally loud, compressed and often music suppresses

the contents of the message. Thus, radio advertisements sometime fail to generate

shopping arousal among listeners (Volle, 2001).

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Local

Another media expert, Angelito “Boy P” Pangilinan, Managing Director of

MediaCom Philippines, cited several studies showing the effectiveness of radio as an

advertising medium. Among these is the research done by the Radio Ad Effectiveness

Lab (RAEL) and published in 2004 which suggests that radio ads work even better

when it’s added to television. Another RAEL study, according to Pangilinan, showed

that radio is about 80% as potent as TV – for a single exposure of an average spot.

RAEL is a non-profit organization founded in 2001 dedicated to creating and

disseminating research about how radio advertising works in the United States.

Although it should be noted that these research were done in the U.S., Pangilinan said

that they could be true of the Philippines as well because of the high penetration of

radio.

Pangilinan said that another strong characteristic of radio that was borne out by

research is that listeners tend to perceive radio ads as directed personally to them,

creating a powerful advertising environment of personal relevance and connections. He

also said that several surveys have shown that the acceptance by the audience of radio

ads is better than TV or internet advertising.

Pangilinan shared his own experience with radio where a client’s low budget

forced him to turn to radio instead of television. The campaign resulted in a 28%

increase in sales over the previous year.

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According to Pangilinan, radio has a great opportunity to reinvent itself given the

positive attributes related to it. It should not be seen as competing with the digital media,

but as complementary, he said (http://www.kbp.org.ph/harnessing-the-power-of-radio).

Some advertisers use radio advertising as a medium only to “remind” consumers

about their brands’ presence. Wiser advertisers use it not just to remind consumers but

make it as primary medium. The smartest of all walks a little farther by spicing their

radio ads with bouncy melodic tunes.

An ad with a song separates the ordinary from the extraordinary, the boring from

the likable. “A radio ad without a song is like a girl on a senior’s prom that nobody wants

to ask for a dance,” says a well-known Pinoy radio jingle-maker. Is your brand becoming

a boring household item? Do people ignore it because you’re out-of-tune with marketing

strategies? Do you want to make it come alive and have a personality of its own? Don’t

just say it. Sing it.

A good jingle can bring your business to life. It can resuscitate a brand that’s on

the brink of fading into oblivion. A radio ad with a catchy melody can attract a broader

audience and rejuvenate a boring product.

In the long run, advertising on radio will give you pay back time and prove its

worth. As other media milk your advertising budgets quarterly for new campaigns and

executions, radio’s durability over the months churns in recall and awareness ratings for

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your brand (http://services.inquirer.net/mobile/10/07/29/html_output/xmlhtml/20100729-

283930-xml.html).

Synthesis

The contexts above are the related literatures from different country that

contributed ideas and learning to the study which show similarities in the effects of radio

advertisements. The literature and studies provide the background information that are

important to the better understanding of the study. It enriched the basic concepts of this

research, and has guided the researchers in conceptualizing of this paper. The various

studies also help the researchers to gain insights, concepts and ideas on the

importance of radio advertising to a certain business.

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CHAPTER III

RESEARCH METHODOLOGY

This chapter presents the research design, research locale, respondents,

research instrument, data gathering procedure and statistical treatment.

Research Design

This study will utilize the descriptive method of research. This method includes

distribution of questionnaire and conducting interviews. This method is appropriate

because it describes accurately an existing phenomenon. Data will be gathered through

the use of questionnaire and conducting interviews by the researchers within the City of

Tandag. The descriptive method was used to determine the effect and the possible

recommendation.

According to (Castillo, 2002) descriptive method is a research design wherein

events are recorded, described, interpreted, analyzed and compared. Its objective is to

describe systematically situation, condition, or area of interest factually and accurately.

Research Locale

Real transformation was finally afforded to Tandag via Republic Act 2786, an act

that created Surigaodel Sur and whose salient measure made Tandag the capital and

seat of the provincial government of Surigao del Sur.

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TANDAG falls within the latitudes of 90o - 8’ - 15” and 125o - 52’ - 00” to 126o -

12’ - 13” longitudes. It is located in the Northern part of Mindanao and at the center of

the province of Surigao del Sur. Its land area comprises 6.95% of the total land area of

the province. It is about 331 kilometers north of Davao City and about 200 kilometers

southeast of Surigao City.

It is bounded on the north by the municipalities of Cortes and Lanuza, on the

west and south by the municipality of Tago, and, on the East by the Pacific Ocean.

It consists of twenty-one (21) barangays 10, of which are coastal barangays and

the rest are located in the hinterlands.

The poblacion or the urban area consists of 6 barangays, namely: Bag-ong

Lungsod, Bongtud, Dagocdoc, Telaje, Agustin Sur and Mabua. The rural area consists

of 11 barangays: Awasian, Bioto, Buenavista, Mabuhay, Maitum, Maticdum, Pandanon,

Pangi, Quezon, Rosario, Salvacion, San Agustin Norte, San Antonio, San Isidro, and

San Jose.

The City covers 29,173 hectares of land or 6.95% of the total land area of the

province and about 1.65% of the total area of Caraga Administrative Region. Of the

29,173 hectares, only 5,911 hectares are classified as alienable and disposable and

23,262 hectares are forestlands.

The radio stations belong to the said city are the following: 97.5 Sure FM

managed by the acting station manager Madam Judith Suarez located in Duero Hills,

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Capitol Road, Telaje Tandag City, Surigao del Sur; 101.1 Planet Energy located on

Osmenia St. Bag-ong Lungsod Tandag City managed by Mr. Jesrel A. Derigay and 87.9

Real Radio FM with the radio station manager Belena Guellan.

Figure 2. Geographical Map of Tandag City with the Radio Stations

101.1 Planet Energy FM

89.3 Real Radio FM

97.5 Sure FM

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Research Respondents

The researchers used the universal population method. The respondents were all

an owner of the certain business that was is able to advertise their products in a

different radio stations in Tandag City. These respondents were given a researcher-

made questionnaire in the acquisition of primary data.

Table 1

Distribution of Respondents by Stations

Radio Station Number of Advertiser

97.5 Sure FM

101.1 Planet Energy

89.3 Real Radio

18

36

17

TOTAL 71

The Table I shows, the distribution of respondents by stations. First column

presents the radio stations in Tandag City; second column, are the total number of

advertisers in the said city.

Research Instrumentation

The researchers used descriptive method to determine the effects of radio

advertising as a marketing tool in Tandag City.

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The researchers conducted a pre-survey in Tandag City to determine the total

number of business owners that will serve as respondents in studying the effects of

advertising. After the survey, the researchers asked the management of the radio

stations in Tandag City to come up a questionnaire which would yield valid results.

The questionnaires have two parts. Part 1 is about the effects of radio advertising

in terms of sales and popularity. Part 2 is about the problems encountered by utilizing

radio advertisement in terms of cost and customer’s loyalty and satisfaction of the

advertisers of the services offered by the radio stations.

Data Gathering Procedure

Using the questionnaire the researchers gathered information about the effects of

radio advertising in Tandag City. However, before the questionnaire was launched, a

letter to the Dean has been given. The letter was to ask permission from the Dean. After

the administration of the questionnaire, its retrieval followed. Then, the researchers will

tabulate, interpret, and analyze the data.

Page 26: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

Statistical Treatment of Data

In treating the data, several statistical formulas were used. To determine the

effects of radio advertising in terms of sales and popularity, frequency counting and

simple percentage will be used. To determine the level of problems encountered in

terms of costs and customer’s loyalty, weighted arithmetic mean will be used. In

evaluating the effectiveness of radio advertising A-4 point linker scale will be used, to

wit;

Rate Scale Description

1 1.00 – 1.75 Very Ineffective

2 1.76 – 2.50 Ineffective

3 2.51 – 3.25 Effective

4 3.26 – 4.00 Very Effective

Page 27: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

Bibliography

Burke, J. (1980) “Advertising in the Market Place”, pp. 9-10.

Miranda, G. (2002) “Basic Marketing”, pp. 198-199.

Moriarty, Mitchell and Wells (2009) “Advertising: Principles and Practice”, Eight edition,

pp. 609-610.

Villanueva, D. (2000) “The Science of Advertising”, pp. 4-7.

Wells, Burnett and Moriarty (2001) “Advertising: Principles and Practice”, pp. 5,7-9.

http://www.answerbag.com/q_view/2045021#ixzz1ztzpuyC8

http://www.kbp.org.ph/harnessing-the-power-of-radio

http://www.inquirer.net/20100729-283930-xml.html

http://services.inquirer.net/mobile/10/07/29/html_output/xmlhtml/20100729-283930-

xml.html

Page 28: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

LETTER TO AUTHORITY

August 06, 2012

Radio Station ManagementTandag CitySurigao del Sur

Dear Madam/ Sir;

One of the requirements to pass the Research 1 subject under Mrs. Hasmenia N. Lasque, MPA is a completed research in order to develop student’s unending quest of knowledge. Furthermore, the undersigned is conducting a research study titled: EFFECTIVENESS OF RADIO ADVERTISING AS A MARKETING TOOL IN TANDAG CITY.

On this regard, the researchers would like to ask permission from your good office to get data about the total number of business owner that can be advertised in your station.

We hope for your assistance in this matter. Thank you very much. God bless you always.

Very truly yours,

ZAIDA B. RODRIGUEZ

ELIAKIM L. ROSIL

JANICE M. SOLISNoted by:

HASMENIA N. LASQUE, MPA Adviser

Approved by:

SOLAMETA M. SERRA, MAEd CBM Dean

Page 29: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

LETTER TO RESPONDENTS

August 28, 2012

To: All Respondents

We the students of Surigao del Sur State University, presently doing a

study entitled “EFFECTIVENESS OF RADIO ADVERTISING AS A MARKETING

TOOL IN TANDAG CITY”, in partial fulfillment of the Degree Bachelor of Science in

Business Administration major in Financial Management.

In this view, we would like to ask your cooperation to please answer the

questionnaires.

We would appreciate it very much if you would grant our favor. Rest assured that

all your responses would be confidential.

Thank you and more power.

Very truly yours,

ZAIDA B. RODRIGUEZ

ELIAKIM L.ROSIL

JANICE M. SOLIS

Page 30: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

QUESTIONNAIRE

EFFECTIVENESS OF RADIO ADVERTISING AS A MARKETING TOOLIN TANDAG CITY

Name (Optional):__________________________

Address: _________________________________

This survey is conducted to evaluate the effectiveness of radio advertising as a

marketing tool. Any answer of the respondents to the questions will give the light to this

research. Rest assured that any data will be held with utmost confidentiality.

PART I: Effects of Radio Advertising as a Marketing Tool in Terms of Sales and

Popularity.

Instructions: Using the scale shown below, rate the level of effectiveness by putting a

check (√) on the box that corresponds to your answer.

POPULARITY------------------------------------ 4 3 2 1

SALES---------------------------------------------- 4 3 2 1

1Very Ineffective

2Ineffective

3Effective

4Very Effective

Page 31: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

Instruction: Please put a check (√) on the box that corresponds to your answer.

Percentage of sales from previous two years before the advertisement.

2% - 10%

11% - 20%

21% - 30%

31% - 40%

41% - 50%

51% - 60%

61% - 70%

71% - 80%

81% - 90%

91% - 99%

Sales in first year of indulging radio advertisement

2% - 10%

11% - 20%

21% - 30%

31% - 40%

41% - 50%

51% - 60%

61% - 70%

71% - 80%

81% - 90%

91% - 99%

Is there a difference between the previous two years before the radio advertisement and the first year of indulging the radio advertisement?

Yes No

Page 32: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

PART II:

Instruction: Please put a check (√) on the box that corresponds to your answer.

How much it will cost per month for your advertising?

P 100 – P 500

P 501- P 1,000

P 1,001 -P 2,000

P 2,001 – P 3, 000

P 3,001 – P 4,000

P 4,001–P 5,000

P 5,001 – P 6,000

P 6,001–P 7,000

P 7,001–P 8,000

P 8,001–P 9,000

P 9,001–P 10,000

More than P10, 000

Instruction: Rank the problems encountered in terms of customer’s loyalty.

Mis Information

Poor Radio Attentiveness

Poor Production of Commercial

Fragmented Audiences

Are you satisfied with the services of the Radio Stations?

Yes No

Thank you!

Page 33: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

Z.B.R

E.L.R

J.M.S

LETTER OF CENSOR

August 28, 2012

RAYMUNDO M. ITABLE, M.EdEnglish InstructorSurigao del Sur State UniversityMain Campus, Tandag City

Sir:

The undersigned fourth year financial management students Surigao del Sur State University – Main Campus will conduct their research study titled: EFFECTIVENESS OF RADIO ADVERTISING AS A MARKETING TOOL IN TANDAG CITY.

On this regard, may they ask your permission that you will be the editor of their research study.

Your favorable action on this request will be greatly appreciated.

Very truly yours,

ZAIDA B. RODRIGUEZ

ELIAKIM L. ROSIL

JANICE M. SOLISNoted by:

HASMENIA N. LASQUE, MPA Adviser

Approved by:

Page 34: Effectiveness of radio advertising as a marketingtool in tandag city

Republic of the PhilippinesSURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Main Campus

COLLEGE OF BUSINESS AND MANAGEMENT

RAYMUNDO M. ITABLE, M.Ed English Instructor