Boots-PLC Financial Report Case Study Example | Topics and Well Written Essays - 2000 words

Boots-PLC Financial Report - Case Study Example 53). The net profit was 501.7 m in 2005 and 550.1 m in 2004 (Boots Group PLC Annual Report 2005, p. 46). The net profit margin has changed from 0.103 (2004) to 0.092 (2005). The following graph supports the information on the changes of group turnover, net profit, and net profit margin throughout the last 5 years. It is important to notice that while the group turnover is increasing (more goods are sold), the net profit are decreasing (non-operating costs are rising), and the profitability of the company is falling. Nevertheless it is high enough in compare with the main competitors: Alliance UniChem had the same net profit margin of 0.022 over two years (Alliance UniChem Key Financial Data, 2005); and J Sainsbury has decreased its net profit margin from 0.031 in 2004 to 0.020 in 2005 (J Sainsbury Financials, 2005). More detailed comparison is available in Appendix 1. Current assets of Boots PLC in 2005 were 1575.8 m, while the current liabilities were 1074.1 m (Boots Group PLC Annual Report 2005, p. 47). Therefore current liquidity ratio for 2005 is 1.47, which means that a company can meet its short-term obligations without serious troubles. The current liquidity ratio for the year 2004 was 1.52, which means the ratio of current assets to current liabilities has decreased - definitely, not a good sign for the company. Looking at the cash flow statement of the Boots PLC one can see that cash inflow from operating activities has significantly decreased from 637.8 m in 2004 to 514.7 m in 2005 (Boots Group PLC Annual Report 2005, p. 48) due to lower operating profit and larger increase in working capital. Still the main cash inflow comes from operating, which is a sign of financial health of a company. Also the company has increased its debt significantly by 668 m (Boots Group PLC Annual Report 2005, p. 64) returning funds to shareholders to make the balance sheet more efficient. Therefore overall closing net debt in 2005 was 594.1 m comparatively to 148.5 m in 2004 (Boots Group PLC Annual Report 2005, p. 48). Long-term debt/equity ratio=long-term debt/shareholders' equity Long-term liabilities of Boots PLC are 588.7 m (Boots Group PLC Annual Report 2005, p. 47). Equity shareholder's funds are equal to 1,609.4 m (Boots Group PLC Annual Report 2005, p. 47). Therefore debt-to-equity ratio is 0.37, which is a low number indicating that a capital structure of a company can be shifted more towards using debt. The high liquidity ratio shows that it is possible to use debt furthermore. 1b. Currently the company's use of retained earnings for financing its operations is low in compare to its use of debt. Nevertheless, high liquidity allows further use debt for financing. The capital structure of Boots PLC is not optimal; the company should take the opportunity of increasing its debt for financing. The other ways of financing operations of Boots PLC can be achieved through the use common or premium stock. 2a. I. 'Dividends

Giving economic circumstances over the last five years of how Tesco, Literature review - 1

Giving economic circumstances over the last five years of how Tesco, Sainsbury and Morrisons have coped - Literature review Example I will analyze those data along with the theoretical aspects of that. This part will contain the consumer behaviour towards the retail chains for the last five years, brand loyalty of them. The companies’ strategy for maintain the loyal base of customer will also be analyzed as well as analyzing the impact of the strategies on the customers. The recession witnessed from the year 2008 to 2011 had a greater impact on the UK chain and retail market in general. Consequently, leading players in the retail market such as Tesco, Sainsbury and Morrison’s were equally affected. The general impact was occasioned by public (consumer) response to the imminent financial and economical changes. The global recession was characterized by increased prices due to inflation, higher oil prices from exporting countries in Asia and North Africa. Due to the overall changes, the consumers have become value based in terms of key commodities they value with view to the available disposable income (Gbadamosi and Nwankwo 2010). The implication of this change in behavior is that consumers are willing to pay higher prices for valuable commodities if they meet the required standards of quality. Further, the consumers seek to find alternative products which are affordable where quality is not their main concern. The chain stores have been forced to respond to this change in consumer behavior which is actively evident in their promotional strategies. Retail companies carry promotion with the view of convincing the consumer of the intended quality at low cost. Such is the need that Tesco announced an investment of  £500m to facilitate price cuts, Sainsbury has been forced to change from their long term slogan of trying something new to living well at low cost with the view of maintaining customer loyalty. There is low consumer confidence in the UK economy which is expected to fall further. This offers a great challenge to retail stores especially, Tesco,

What criticisms can be made of Margaret Thatcher's policies as Prime Essay

What criticisms can be made of Margaret Thatcher's policies as Prime Minister - Essay Example Thatcher's policies which include the reduction of taxes, reduction of inflation through the manipulation of money supply, privatization of public industries, suppressing trade union powers through introduction of laws, reduction of the role played by the government in the economy.According to Young (1993), Margaret Thatcher was the first female to become a prime minister in the UK. She was the leader of the Conservative Party and was in office for three consecutive terms. She is known to be the longest serving prime minister as she governed office from 1979 up to 1990. In most cases, she is referred to as the most divisive prime minister of the century. She was greatly reverence but also hated by the divided members of the public particularly because of her reaction towards the trade unions. Margaret Thatcher rule has been criticized as lacking proper and unified policies. Together with her government, she has been associated with several practices and ideals referred to as Thatcher ism (Evans, 2004). Critics have argued that Thatcherism is well known for its rhetoric and not what it achieved. It is viewed as being contradictory and that Thatcher’s rule was differentiated by its strategic purpose. In considering its challenges to the states existing features, Thatcherism is considered as a radical force. The presumptions and priorities which had been established in the prior years were criticized and then discarded. In 1979 when Margaret Thatcher came to power as the first prime minister in the UK,... She established several policies which included; reduction of inflation through the manipulation of money supply. She focused on the idea of monetarism and the free market economics. The conservative administration’s first policies were to handle the inflation and the budget deficit. The monetarism belief indicated that money supply had to be controlled in order to successfully control the inflation. The entire government deficit had to be reduced in order to be able to control money supply. This led to the implementation of deflationary policies. There was increase in tax rates and reduction on government spending. The policies which were intended to reduce inflation in return led to increase in the interest rates. It was possible to reduce inflation through the deflationary policies of both monetary and fiscal nature. This could be attained at the cost of reduced aggregate demand and reduced economic growth. The government continued to pursue deflationary policies regardless of the economy going down to full scale recession, and unemployment being on the rise. It led to several criticisms and a number of economists in the country signed a letter addressing the government to bring the recession to an end and to change the economic policy. Thatcher was greatly criticized by different individuals including those from her own party. According to critics, the reduction of inflation could have been performed with minimal impact. It caused unexpected level of unemployment, while seeking to attain bogus money supply. The unemployment affected individuals in different ways in that it resulted in personal and several social problems. The different riots that came up in Britain in 1981 were attributed to the high rate

Global Business in Emerging Regions Essay Example | Topics and Well Written Essays - 3500 words

Global Business in Emerging Regions - Essay Example Vodafone plans to enter yet another market in order to expand their reach in the world. This time the plan is to enter the market of Thailand and provide them with their award winning services. The reason for choosing this country is because in spite of confronting various political tests, Thailand has made extraordinary advancement in social and monetary issues. Thusly, Thailand has been one of the incredible improvement examples of overcoming adversity, with maintained solid development and amazing destitution lessening. In the decade that finished in 1995, the Thai economy was one of the planet's quickest developing at a normal rate of 8-9% for every year. In the wake of recouping from the "Asian Crisis" of 1997-1998, the Thai economy took off once more. From 2002-2007, Thailand's development found the middle value of at around 5%. Thailand's budgetary development reduced in view of worldwide financial conditions and political lack of determination in 2009 and once more, in 2011, from the destroying surges. Notwithstanding, Thailand's monetary movement is continuously coming back to typical, with quarterly budgetary development rates now closer to the levels regularly seen before the worldwide fiscal emergency started in 2008. The GDP bounced back from the surges at 6.4% in 2012 and is anticipated to keep developing at 5.0% in 2013. Most development turned purchaser merchandise brands and retailers are mindful of the enormous business chances that lie in rising markets. Their thick populaces talk volumes: in China there are 1.3 billion individuals, accompanied nearly by India at 1.2 billion. Different crowded nations right now being eyed-up as hot focuses by the industry incorporate Indonesia (238 million) and Brazil (194 million). Joined, these four biggest rising markets hold a stunning three billion potential clients. Constantly, seizing chances of this scale is a not exactly direct process for purchaser merchandise organizations and obliges acclimating m arketing and operations to an entire have of unpredictable elements. The potential changes required may identify, for example, to dialect, society, purchasing propensities, inventory network modernity, administrative situations, and accessible transport base and value affectability inside each one market. Here, innovation can assume a pivotal part in empowering firms to adjust their methods. Case in point, enormous information dissection instruments might be utilized to mine divided information from sources, for example, social media, centering assets on the most lucrative micro-markets and controlling market section methodologies. (Dunning, 1993) To overcome poor logistics foundations and regularly quite divided supply chains, the utilization of remote track-and-follow results can permit producers and retailers to accompany their merchandise all around the inventory network. And additionally guarding against misfortune and burglary, this can likewise guarantee provenance, screen th e state of perishable and delicate merchandise and enhance stock arranging. In nations, for example, India and Nigeria – where little shops record for 97% of the retail market, its likewise essential

Endometrial Cance Essay Example for Free

Endometrial Cance Essay This cancer mainly has the supported information of how it happens, where it happens in the body, how can it be treated, and who to turn to when one needs help. Endometrial cancer is found in the endometrium, which is the lining of the uterus. The endometrium is found in a woman’s pelvic area and is where a fetus grows until birth. Endometrial cancer occurs when cells of the endometrium begin to grow and multiply without the control mechanisms that normally limit their growth. As the cells grow, they form a tumor. (Endometrial Cancer PubMed Health. , 2012) The exact cause of endometrial cancer is unknown, but there are many risk factors that lead to what causes it to grow rapidly, killing off thousands of women each year. Endometrial cancer is usually found in women in between the ages of 50 and 60. Women, who are obese, fifty pounds over their ideal weight, are ten times greater at risk than women that are not obese. Body fat produces estrogen and the higher level of estrogen are believed to increase the risk of cancer. This is believed because women with excess fat have higher levels of estrogen. Women that have not been pregnant are at three times higher risk. Women who have their periods before the age of twelve are at an increased risk because early puberty increases the number of years that the endometrium is exposed to higher levels of estrogens. (Endometrial Cancer PubMed Health. , 2012). A woman who goes through menopause after the age of fifty-two, which is called late menopause, actually increases the number of years that the endometrium is exposed to estrogen. To all cancers there are symptoms that may be long term or short term. In endometrial cancer, the most common symptoms are abnormal bleeding from the vagina. (Cervical Cancer, 2013). Abnormal bleeding happens during menopause, which makes it harder to determine if something is wrong. During menopause, the menstrual period should become shorter, and the frequency should become farther apart. If there were to be any uncommon bleeding, it should be reported to a physician. Pelvic pain, swelling or lumps in the pelvic area, and weight loss are symptoms that are less common and would indicate advanced cancer. The staging system that is used for endometrial cancer was developed by the international Federation of Gynecology and Obstetrics. Staging is used to classify the cancer based on how extent the disease is. In endometrial cancer, staging is mostly based on how far the main tumor has spread. There are four stages as follows: Stage I: The tumor is limited to the upper part of the uterus and has not spread to the surrounding lymph nodes or other organs. Stage IA: Tumor limited to the endometrium or less than one half of the myometrium. Stage IB: Invasion equal to or more than one half the myometrium (middle layer of the uterine wall) Stage II: Invasion of the cervical stroma but does not extend beyond the uterus (strong supportive connective tissues of the cervix) Stage IIIA: Invasion of the serosa (outermost layer of the myometrium) and/or the adnexa (the ovaries or fallopian tubes) Stage IIIB: Invasion of the vagina and/or parametrical involvement Stage IIIC1: Cancer has spread to the pelvic lymph nodes but not to distant organs Stage IIIC2: Cancer has spread to the par aortic lymph nodes with or without positive pelvic lymph nodes but not too distant organs Stage IV: The cancer has spread to the inside of the bladder or the rectum and/or to the inguinal lymph nodes and/or to the bones or distant organs outside the pelvis, such as the lungs. Stage IVA: Tumor invasion of the bladder, the bowel mucosa, or both Stage IVB: Metastasis to distant organs, including intra-abdominal metastasis, and/or inguinal lymph nodes (Endometrial Cancer PubMed Health. , 2012). There are treatments for endometrial cancer, but it depends on the stage of the cancer. There is an initial surgery that has to be done, which involves removing the entire uterus and cervix, fallopian tubes, and ovaries. After this surgery is done staging is determined. After the staging is determined, only then will there be a treatment by a physician. Surgery is the main form of treatment for endometrial cancer, but there are other options. There is radiation therapy, but this is used for stages two, three, and four. It is given to kill any cancer cells remaining in the body. Chemotherapy is another option and drugs are used to kill cancer cells. The advantage of this option is that the chemicals can attack cancer cells anywhere in the body. The disadvantage of this option is that the side effects include nausea, hair loss, fatigue, anemia, infections, and damage to organs like the kidneys. This therapy is mainly used for advanced endometrial cancer. (Endometrial Cancer PubMed Health. , 2012). The last option would be hormone therapy, which uses hormones to fight cancer cells. This is only used in advanced and metastatic endometrial cancer. If endometrial cancer is determined, there should be foods in the individual’s diet to avoid. Many w omen with this condition can improve their symptoms by just controlling their diet. When this diet is created, the main goal is to eliminate foods that increase stimulated estrogen, prostaglandins. There are ten foods to avoid following an endometriosis diet. The first food to avoid is sugar. Sugar can produce an acidic environment within the body, which produces more pain of endometriosis. Wheat should be avoided because it contains phytic acid, which aggravates symptoms. Soy products contain phytic acid and irritate the digestive system and reduce mineral absorption. Caffeine increase estrogen levels and estrogen triggers endometriosis flare ups. When you consume more than two cups of coffee a day, estrogen levels are caused to rise. Alcohol should be avoided because vitamin B from the liver is being destroyed. The liver is needed to clear out the excess estrogen to control the cancer. Dairy products, mostly milk and cheese, should be avoided because they aggravate the symptoms also. Red meat contains growth hormones that include estrogen, so this should also be avoided. Saturated fats and oils are high in fatty acids that stimulate production of hormone levels. Foods like butter, margarine, lard, organ meats, and fried foods are high in saturated fats and oils. Another group of food that should be avoided is refined carbohydrates. This includes white bread, pasta, flour, pastry, cakes, etc. These should be avoided because most of their natural nutrients are removed, which leads to increase endometriosis symptoms. The last groups of food that should be avoided are additives and preservatives. This includes processed, frozen, and pre-packaged foods. (Nutrition Facts, 2012) There are not many alternatives for this type of cancer. This is said because there is strictly surgery that has to be done before anything else can happen. This surgery then leads to the treatment for the individual that has the cancer. (Endometrial Cancer PubMed Health. , 2012) In every cancer, you have a statically breakdown of how many people have survived or died from a certain type of cancer. My statically breakdown is involved mostly with women, because no man can get the cancer. Endometrial cancer is usually diagnosed at an early stage. â€Å"The one year survival rate is about 92%. The five year survival rate for this cancer that has not spread is 95%. If the cancer has spread to distant organs, the five year survival rate drops to 23%. Survival rates for African American women are 10% lower than that of white females for every stage† (ncbi. nlm. nih. gov). In conclusion, most women who have endometrial cancer are cured. There are many women who die from the emotional part of obtaining the cancer. Many women would feel anxious and depressed. There are many support and counseling groups that are concerned with the individual’s feelings. Friends and family members should be very supportive and the individual that has obtained the cancer should not be hesitant to bring the topic up to close friends or family. It is amazing how many people are helped through their cancer by just talking out the worries or concerns they may have. My opinion about endometrial cancer is that it should not be taken as a joke. This is something serious that affects 200,000 women each year from their day to day life. I never knew this cancer existed until I conducted research for an original cancer. This cancer is something that will affect many people in the future if prevention actions are not taken. References Endometrial Cancer PubMed Health. Web. 07 Jan. 2012. lt;http://www. ncbi. nlm. nih. gov/pubmedhealth/pmh0001908/gt;. Endometrial Cancer Staging EMedicineHealth: Symptoms, Prognosis, Treatment and Risk Factors by. Endometrial Cancer. Web. 07 Jan. 2012. lt;http://www. emedicinehealth. com/endometrial_cancer/article_em. htmgt;. Endometrial Cancer Treatment after Surgery. UpToDate Inc. Web. 07 Jan. 2012. lt;http://www. uptodate. com/contents/patient-information-endometrial-cancer-treatment-after-surgerygt;. Endometriosis Diet Foods to Avoid | Relieve Endometriosis. Endometriosis Explained | Relieve Endometriosis. Web. 07 Jan. 2012. lt;http://relieveendometriosis. com/foods-to-avoid-on-an-endometriosis-diet/gt;. amp;middot;, Media Flow. Endometriosis. Alternative Surgery. Web. 07 Jan. 2012. lt;http://www. alternativesurgery. com/education/endometriosis/gt;. â€Å"Self Nutrition Data† Know what you eat. Web. 21 March. 2012. lt;http://nutritiondata. self. com/gt;

Geographically Weighted Regression to Model Housing Prices

Geographically Weighted Regression to Model Housing Prices Introduction In chapter 2, HPM has been used to model the relationships between characteristics of property and neighbourhood. However, HPM treats the whole housing market as a single homogenous market and assumes a stationary process, i.e the parameter estimates are assumed to apply equally over space. This presumes the influences of various factors on house prices in one location are the same as those in another location so that space, place and location do no matter (Foster refer). However, as shown in Chapter 2, the residuals derived using HPM are correlated. Additionally, Chapter 3 shows that when MLM approach is employed to account for spatial heterogeneity, the effects of those various factors in fact vary across neighbourhoods at different scales and there are great price differentials between neighbourhoods. The global approach, such as HPM, masks those local deviations from this average relationship. Disadvantages of MLM Although MLM approach takes into account spatial heterogeneity by specifying the spatial units as levels in the model, there are some weakness of this approach. Firstly, there is no agreement on the definition of neighbourhoods (Kearns and Parkinson 2001: 2103), so the specification of the macro level units (i.e. neighbourhoods) is fairly arbitrary. In the past, census boundaries (†¦),administrative boundaries (†¦.), or school catchment areas (goodman) have all been used to delimitate the whole house market into smaller submarkets, or local neighbourhood areas. Some researchers combined a series of dataset, such as travel-to-work, immigration and house price information and constructed a so-called housing market areas (HMAs)(†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..) . HMAs neither match the census boundaries, or the administrative boundaries, but instead, they represents†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. . The existence of spatial dependency in geographical data means that the observations that are most spatially dependent in the locations that are close to each other should constitute a neighbourhood. A predefined hierarchy of spatial units based on administrate or census boundaries may not necessarily appropriate. Secondly, MLM[1] treats space and assumes that same spatial process applies within the neighbourhoods and discontinues at the boundaries of the neighbourhoods. (†¦). Additionally, the highest level of spatial units (for example, MSOAs in our analysis) are assumed to be spatially dependent. This assumption is unrealistic because the â€Å"effect† of a neighbourhood is more likely change gradually from one neighbourhood to its adjacent ones rather than completely stops, the so-called â€Å"spill-over† effects. Therefore, there might be presence of spatial dependency between MSOAs that MLM is unable to capture. In contract, GWR (Brunsdon et al, 1996†¦..) relaxes the assumptions of the effects of various variables being constant over space (Dark, 2004,Mitchell, 2005andShi etal., 2006) and treats space as continuous. It calibrates locally a spatially varying coefficient regression model for each location of the study area by weighting the attributes of it neighbouring locations based on distance-decay functions (†¦Ã¢â‚¬ ¦.). The attributes of neighbours of a fitted location are all considered so the spatial dependency and heterogeneity can be taken into account in this approach (Paez 2005). This chapter therefore introduced this type of modelling technique to explore the spatial variations that may exist in the relationships between house price and its predictors. Purpose and Structure of the Chapter The aim of this chapter is to identify whether the relationships of house prices and a range of characteristics of houses and neighbourhood attributes) are relatively stable, or they vary substantially over space? If there are spatial variations, how does the relationships vary within and between neighbourhoods and how does this variation differ from the results derived from MLM approach? In addition, how good is the GWR approach in terms of its predictive capability, compared with MLM.? In the next section, a brief description of this technique is introduced. Section 3 follows with a review of previous applications of GWR is presented. The proposed study in relation to the empirical implementation of the technique then follows in section 4. The final section summarise the comparison between GWR and MLM the results and discusses the appropriateness of both techniques. 4.2 Brief Description on GWR Models What is GWR? GWR technique is fully descried by Fotheringham etal., 2002[2] and just a brief description of the approach is presented here. GWR is a spatial analysis technique that takes into account spatial autocorrelations among the observations in surrounding locations by allowing for spatial nonstationarity in the linear regression coefficients for each location. In GWR literature, the â€Å"location† can be a point or an aggregated area. describe local geographical variations in the relationships between a response variable and its explanatory variables by a set of local estimates for all the predictors for each geographical location (Fotheringham et al. 2002). A set of estimates and standard errors for each local coefficients are produced by focusing each location in the study region and weighted matrix of its nearby observation. The basic GWR equation can be written as: (4.1) Where denotes the coordinates of the th point in a two-dimensional study area; is the dependent variable at point , is the estimated intercept at point , ( represents the estimated coefficient for variable at point , is the independent variable of the th parameter at location , and is the error term for the local model at point . The estimation of ( is derived using weighted least squares (WLS) regressions (Moore and Myers, 2010; Fotheringham et al., 2002) by weighting the observations near location in accordance with their distance to that fit point. It is given by: where is a diagonal matrix denoting the geographical weighting of the observations around the fit point . Weighting The weighting is based on the distance between the regression location and its nearest neighbours, defined as bandwidth. The points in closer proximity to location is given more weight and therefore has more influence on the estimation of than the observations that are further away to location . A number of weighting schemes are available, but they tend to be Gaussian or â€Å"Gaussian-like† function, which is the types of dependency generally found in spatial processes (Forthemham). Two Commonly used distance-decay functions in GWR are Gaussian and Bi-square function (Fotheringham et al. 2002), which are expressed as below: Gaussian Bi-square Where is the th element of the diagonal of the matrix of the geographical weights , is the bandwidth, a threshold distance that any observations beyond this distance will not be used for calibrating the local model, and represents the distance between observation and focus point . When and coincide, the weighting equals to 1. Source: Gollini et al (2014) GW model: an R Package for Exploring Spatial Heterogeneity using Geographically Weighted Models Both functions are continuous up until the bandwidth, but the weights of Bi-square function decrease faster than that of Gaussian function and eventually become zero at the boundary of the bandwidth, while the weights of Gaussian function do not become zero. Both of the weighting functions will be tried in the planned research. Bandwidth Bandwidths can be specified either as fixed or adaptive (in terms of physical distance). The physical distance for adaptive bandwidth is changeable according to the spatial density so as to capture a fixed nearest neighbours for each local model: a shorter distance for areas where observations are dense and longer distance when data are sparse. The benefit of using adaptive bandwidth is that it can ensure sufficient local information be utilised for areas where observations are spatially scares and reduce the estimate variance for local coefficient and still reveal subtle local variations where observations are dense (Fotheringham et al. 2002). Therefore, adaptive bandwidth will be used in the planned research as the density of house price data vary geographically. The size of bandwidth affects gradient of the kernel and thus the rate of decay function. A small bandwidth have fewer observations included in the local model and rapid decay whereas a large bandwidth will have more observations in the local model and a smoother weighting scheme. The size of the bandwidth is important as if the bandwidth is too small, although the model would fits better for the local observations, but at the same time local noise may also be fitted thus the local estimates will have large variances. Conversely, if the bandwidth is too large, although the variances will become smaller, but the estimates of local coefficients are based on a much larger area and result in biased estimates which masks the true local relationships, especially if the relationships vary dramatically over small areas. This is the so-called bias-variance trade-off (Fotheringham et al., 2002)[3]. The effective number can be used to reflect bias-variance trade-off in GWR, which is a measure o f the number of observations that have been used effectively for calibrating the local model. Bias-Variance Trade-Off To find the best bias-variance trade-off, an appropriate weighting function and optimal bandwidth need to be selected. It has been argued that the selection of bandwidth selection is far more important than the weighting scheme as the weighting all decreases as distances increase by all weighting functions but the size of bandwidth decides the degree of decay (Fortherham†¦). The optimization process is generally exploratory and can be very compute-intensive process as it requires all the local regressions fitted at each step[4]. It can be achieved by either cross-validation method or use corrected Akaike information criterion (AICc) (Fotheringham et al. (2002). Leave-one-out cross-validation (LOOCV) is a commonly used cross-validation method in GWR, where for each local model, it is validated by using all the cases except for one observation and the model is tested on that single observation. The bandwidth which produce the smallest root mean square prediction errors for all the dependent variables of all the local models is deemed as the optimal bandwidth. AICc is an indicator of goodness-of-fit and can be used to compare competing models while taking into account the complexity of a model. A lower AIC score indicate a better fit of a model. As a rule of thumb, a decrease of 3 in AIC of two competing model score indicates an improvement in the model fit for the model with lower AIC (Fotheringham et al 2002; Zhang etal., 2011). It is common though to get different optimal bandwidth from the two methods as the criteria for optimal is different for AICc and for CV[5] and the AIC value is not based on prediction of the dependant variable (†¦[6]..). In addition, AIC score can be corrected for small sample size, while classical CV method tend to produce under-smoothed result for small sample size[7]. One thing is note is that AIC should be avoided when the sample size is large as it requires the creation of an n by n matrix [8]so the optimization can be very slow[9]. Both method will be tried out in the planned research. Why Use GWR and when? As mentioned earlier, when there is spatial dependency between variables and spatial non-stationarity, GWR can be used to disaggregate global relations to local levels to obtain a better understanding of spatial data in more details. As every local model is fitted to local observations, it fits better to data than a global model and residuals are generally lower and less spatially dependent. The outputs, the estimates of local coefficient are specific to each location. In Chapter 2, Moran’s I has been used and indicate that there is statistical significant spatial autocorrelation within both house prices and the residuals of HPM results. This means that the global fitted coefficient value of HPM does not represent detailed location variations adequately and GWR should be used in this instance to taken into account the spatial dependency and examine the heterogeneity in housing market. A review of GWR approach in house price estimation This section reviews the application of GWR technique with a focus on residential real estate, as well as the comparisons of GWR with a range of other methodologies. The section will conclude with the identification of the research gap and thus the contribution of the current chapter. Application in Real Estate Valuation GWR has been applied to a number of field, including land use (Geniaux et al. 2011†¦.), environment (Harris et al. 2010a), health (Comber et al. 2011, Helbich et al. 2012b, Yang and Matthews 2012; [10]) and crime studies (Leitner and Helbich 2011), economics ([11]), regional studies ([12]) and residential real estate studies (Kestens et al. 2006; Bitter et al. 2007†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦). In terms of the application to real estate, GWR has been used to investigate the effects of the locations and surrounding neighbourhood characteristics, such as †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦,the effects of accessibility, such as the new bus transitway in†¦..((Mulley, 2013), infrastructure availability in †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.(Cellmer, 2012), and the effects of open space amenities (Nilsson, 2014). GWR has also been used to identify housing sub-markets (Borst Mccluskey, 2007; Crespo Grà ªt-Regamey, 2013; Helbich, Brunauer, Hagenauer, Leitner, 2013). GWR compared with other modelling techniques GWR has also been compared with a few valuation tools in real estate, such as multiple regression analysis (MRA), simultaneous autoregressive model (SAR), Artificial neural networks (ANN), spatial expansion method (SEM) and Spatial lag model (e.g., Brunsdon et al., 1999[13]; LeSage 1999[14]; (Bitter, Mulligan, Dall’erba, 2006; Helbich, Brunauer, Vaz, Nijkamp, 2013; McCluskey, McCord, Davis, Haran, McIlhatton, 2013; Yu, Wei, Wu, 2007). More specifically Bitter, Mulligan, Dall’erba (2006) demonstrated in their study that GWR was superior to spatial expansion method ( define briefly †¦.)in terms of predictive accuracy and explanatory power when applied to examine the marginal price of key housing attributes in the Tucson, Arizona housing market. McCluskey, McCord, Davis, Haran, McIlhatton (2013) also showed that GWR outperform MRA, ANN and SAR in term of predictive accuracy, transparency, and cost-effectiveness and offered when applied to 2,694 residual properties in for real estate price estimation. In a case study of spatial heterogeneity in Austria, Helbich, Brunauer, Vaz, et al. (2013) extended GWR to a mixed-GWR(MGWR), which allows some coefficient to be stationary while others to be non-stationary. This approach is more flexible and parsimonious than standard GWR (Wei and Qi, 2012). Both MGWR and GWR has smaller prediction errors in comparison with a global approach, such as OLS, SAR and spatial t wo stage least square procedure (S2SLS)[15]. There are other extensions of GWR. To deal with cross-sectional time series data, GTWR (Huang, Wu, Barry, 2010) was developed to integrate both temporal and spatial information in the weighting matrices to capture spatial and temporal dependency and heterogeneity[16] . GTWR is able to model spatial and temporal nonstationarity simultaneously and therefore offers a better goodness-of-fit. LeSage (2003) incorporate a Bayesian treatment into GWR in order to improve the estimates of GWR parameters. Contextualized Geographically Weighted Regression (CGWR) was developed by adding contextual variables into standard GWR. The research applied this approach to model spatial heterogeneity in the land parcel prices of Beijing in China and demonstrated that the incorporation of contextual information improved the model fit. However, multicollinearity between explanatory variables may result in unstable results in GWR models and cause more problem for GWR than in a global regression model (Lloyd 2007). Therefore, extreme caution should be exercised when analysing the spatial patterns of local coefficients derived from GWR (Wheeler Tiefelsdorf, 2005). A range of diagnostic tools was proposed and usage of PCA to identify the most influential predictors or integrating ridge regression into the GWR framework (D. C. Wheeler, 2007) can help stabilize GWR regression coefficients. There is only limited comparison of GWR with MLM, or random coefficient model (RCM). These two approaches are very different in terms of its underlying assumptions of the spatial process and yielded completely different results in the study of long-term illness in the UK (Brunsdon, Aitkin, Fotheringham, Charlton, 1999). There has no published research that compares GWR with MLM in terms of their capability to model spatial heterogeneity of house price data and their predictive accuracy. In addition, although GWR can be applied at any geographic scale of measurement, in practice however, may applications and previous research applied it to an coarsely aggregated scale due to the availability of data or keep anonymized information. Unlike previous studies, we have geo-code the â€Å"location† of each house based on its unit postcode location, which only contains typically around 15 residential addresses[17]. We hope to offer further insight into the geographical variation of the relationships at this detailed level, which previously might be disguised in previous research when the level of analysis was carried out at a much coarser scale. Planned Research Standard GWR is applied to the same dataset in chapter two and three, the house price data of the Greater Bristol area. Two extended version of GWR, GTWR and CGWR, will be explored with the former to capture the temporal dependency and heterogeneity and the later to incorporate contextual information into the model. In GWR and CGWR, the whole dataset will be split into yearly data to avoid the potential temporal autocorrelation within the data. There is no need of doing so in GTWR, as the time of sale has been taken into account in the model. Individual house characteristics are all categorical variables as described in Chapter 2 and will be modelled first and then neighbourhood variables will be added in the subsequent models. The planned procedures and a few methodological issues are addressed as follows. Firstly, before carrying out actual modelling of GWR, whether there is significant spatial autocorrelation within the data, which can be between the response variables and its lagged values or between the explanatory variables and their lagged value. Two most commonly used weighting function, Gaussian and Bi-squares functions will be used, although it has been shown that the selection of the weighting function does not have as much an effect on the results as the selection of bandwidth (Fotheringham, Brunsdon, and Charlton 1998). If it is the case, just one weighting function will be used in the subsequent yearly models and the focus will be one the optimization of bandwidth. An adaptive bandwidth is proposed, as there is a good mixture of rural/urban of housing stock in Greater Bristol and the density of the house sales varies dramatically over space. Both CV and AIC will be used to obtain optimal bandw idth and measure model fit as it was shown in the past that the two methods resulted in different optimal bandwidth and regression coefficients ([18]). Once a weighting function and bandwidth has been selected, the weighting matrix can are defined and used to estimate the coefficient for every location based on equation (4.1) and calibrating local GWR. The standardised residuals and the parameters, and their estimated standard errors will be mapped to investigate whether they vary spatially[19]. This will also be compared with the map of the shrinkage estimates of the neighbourhoods (OAs, LSOAs and MSOAs) derived by MLM in previous chapters. It is expected that the mapped patterns of MLM coefficient exhibit more â€Å"noise† than that of GWR, since GWR is essentially a spatially smoothing calibration. All of the model caliberation will be conducted in R, using GWmodel package as this software is free and the process can be easily replicated. Lastly, the predictive accuracy of GWR will be measured and compare with MLM. R squared is used for goodness of fit of the model and it measures the proportion of variation in the data that is explained by the model. Adjusted Rsquared takes into account the complexity of the model in terms of the number of variable that are specified in the model. It is expected that extended version of GWR, GTWR and CGWR, may provide better model fit and more accurate predictions based on their previous applications. In the past, there has been criticism that GWR cannot produce confidence intervals (†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..) and the significance of the estimates for parameters cannot be tested. However, Monte Carlo significance tests have been used to test whether there is significant variability (†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..) so this test is also planned to test if the spatial variation of the coefficients are statistically significant. â€Å"Wild bootstrap† approach as suggested by by H ¨ardle (1990) and McMillen (2004) can also be used to produce a weighted average of the variance of the separate parameter estimates. Conclusion GWR generally give much better fits to the data and the residuals are less autocorrelated. Its advantages over MLM is that it no longer treats space as discrete, which more likely resemble the spatial process in reality, and it models both spatial dependency and heterogeneity. In addition, it is essentially a non-parametric approach that does not requiring any assumptions with respect to the predictors, which can be categorical or the underlying distributions of the predictors can be highly skewed. There is no need to specify a functional form to produce the estimates of spatially varying parameters (Brunsdon et al 1998). The underlining concept of â€Å"letting the data speak for themselves† make it a good exploratory tool [20] for spatial analysis. This concept is very much similar to another modelling technique, ANN, except that in ANN, there is no implication of nearer locations have more influences on the estimates of local coefficients than locations that are further awa y as in GWR. This although unlikely in reality, but it might happen. How does GWR compared with ANN will be discussed in the next chapter. Link GWR and ANN: a set of estimates of spatially varying parameters WITHOUT specifying a functional form – â€Å"let the data speak for themselves† (Chris et al 1998) [1] the parameter estimates are assumed to be randomly distributed with either a finite (Wedel and Kamakura 2000) or a continuous mixture distribution (Aitkin 1996). [2] And Legendre, 1993 [3] Check: Bias-variance trade-off: MLM (Goldstein 1987) and Ridge Regeression (Hoerl and Kennard 1970a, 1970b) [4] check reference Schabenberger and Gotway (2005 316-317) statistical methods for spatial data analysis Waller and Gotway (2004, p434) – applied spatial statistics and Lloyd (2007 pp 79-86): local models for spatial analysis [5] http://webhelp.esri.com/arcgisdesktop/9.3/body.cfm?tocVisable=1ID=-1TopicName=Interpreting GWR results [6] Housing Sub-markets and Hedonic Price Analysis: A Bayesian Approach by David C. Wheeler1*, Antonio Pà ¡ez2* , Lance A. Waller1 and Jamie Spinney3 Chapter 4 [7] Encyclopedia of Geographic Information Science edited by Karen Kemp (p183) [8] (gwr.sel {spgwr}) [9] NOTE AIC be applied in non-Gaussian GWR( Local Models for Spatial Analysis, Second Edition By Christopher D. Lloyd) [10] Modelling spatially varying impacts of socioeconomic predictors on mortality outcomes, J Geograph Syst (2003) 5:161–184, DOI: 10.1007/s10109-003-0099-7, proposed for modelling spatially varying, predictor effects on a disease or mortality count outcome The methodology is illustrated by suicide mortality in 32 London Boroughs over the period 1979–1993, in terms of area deprivation and a measure of social fragmentation disease mapping methods [11] SPATIAL HETEROGENEITY AND THE WAGE CURVE REVISITED*Simonetta Longhi, ISER, Peter Nijkamp [12] The Geographic Diversity of U.S. Nonmetropolitan Growth Dynamics: A Geographically Weighted Regression Approach Mark D. Partridgey Dan 5. Rickman, Kamar AU, and M, Rose Olfertte.st for geographic heterogeneity in ihe growth parameters ami compare iliem to global regression estimates. The results indicate significant heterogeneity in the regression coejjkients across the country, most notably for amenities and college graduate shares. V.sing GWR also exposes .signiftimt local variations that are masked by global estimates [13] A Comparison of Random-Coefficient modelling and Modeling and Geographically Weighted Regression for Spatial Non-Stationary Regression Problems, Geographical and Environmental Modeling, 3 (1), 47–62 [1

Disadvantages Of Traditional Media Tools Marketing Essay

Disadvantages Of Traditional Media Tools Marketing Essay Since television has born, it has already become the most useful media tools among others over many years. Most of the convention company thinks that featuring a television advertising campaign may reflect their companys brand or status at a prestige level. The Advantages Television advertisement is a tool that provides high frequency potential where in a day a single advertisement can reach millions of viewers instantly. This is because television is the highest reach of other kinds of media since each house own a television. Furthermore, television also offers advertisers the most extensive coverage compare to other media. The Disadvantages Television advertisement may be a good tool to reach millions of people but the cost for an advertisement is high. High cost probably comes from the production cost because commercials usually need more time, idea and resources to produce it. Therefore, creating a commercial is expensive. 1.0.2 Radio Radio is not as effective as television and it is more difficult to attract more potential consumers because mostly people only focus on listening to the music rather than advertisement. Meanwhile, the most effective way to transmit the message from an advertisement is when a driver stuck in the middle of the traffic. At the same time, many smaller local companies use radio advertising because the cost of creating a radio advertisement are less costly compare to television. The Advantages Mostly radio advertisers help the listener to store the message easily. Method such as repeating the advertisement can successfully helps the listener to remember it. From time to time, the more the listener stay on the radio, the message will goes deeply into the person mindset and soon from short-term to become long-term memory. Adding sound effect in the advertisement may effectively help consumers to well so every time they heard the sound they may recall back to the advertisement. The Disadvantages Radio advertisements have few chances to reach national audience because there is only a short exposure time of transmitting the message. Usually an advertisement is about 15 to 30 seconds. Most of the times listener involved in other activities such as working, paying attention on driving or just using radio as a restaurant or shops background music to provide their customers a nice and comfortable environment. Therefore, most of them will not pay much attention or skip the advertisement part. 1.0.3 Outdoor Advertising Commonly some companies will use billboards to advertise along the side of the highway in Malaysia. Other than that, banners outside a restaurant, on public transportation and even hanging on the pillars under the flyover also an example of outdoor advertising. The Advantages An outdoor advertisement is an effective way to transmit message towards large group of people. For local companies, these advertisement is an efficient way to transmit the message to their local target because usually local audience able to see them everywhere. The location of setting up these advertisements will affect the outcome such as placing nearby a restaurant, inside cities area, hanging on tall buildings, railway station and amusement park. The Disadvantages The major drawback of an outdoor advertising is short exposure of time. When the advertisement is set by the road side, drivers may only have a quick look on it. They cannot get the full message from the advertisement unless they stop their car. 1.0.4 Magazines In old days, advertise in magazines is also a best way to transmit information towards target audience. Advertise in different magazine allow to target to different consumers according to demographic and lifestyles. The Advantages Magazines advertisements often provide high-quality color on the pictures. Colors and images can attract attention because mostly people love to look at colorful things instead all with words. Besides that, the main function of magazines is to allow readers to read it during leisure time. With viewing colors and images, it can benefit in relaxing themselves like reducing stress after a working day yet they may have longer time to go through with advertisement. The Disadvantages Due to high-quality color in every magazine, the cost of production and printing is way higher compare to newspaper. Therefore, the magazine advertisement prices are also expensive because advertiser needs to generate more idea and time to advertise it in different magazine and different target. If some advertisement target to two consumer, it may effectively target to children in child magazines but if the same idea advertise in adult magazine, the outcome will be different and thats why advertiser need to create another advertisement to focus on their parents. 1.0.5 Newspapers Newspaper has been centuries as a role of transmitting local, nation and global news to the public. Newspaper is a best tool to advertise because the price greatly cheaper compare to others and it is distributed on daily basis. The Advantages Local sellers rely heavily on newspaper advertisement because this is the only tool that targets more on locals. The key factor that advertises in newspaper is that you can list our all your information like promoting sales, business retail hours, and physical store location in a single page yet the price is cheaper than magazine. The Disadvantages Newspapers advertisement also have a shorten lifespan like as outdoor advertising. Normally a person will set the newspaper aside once they finish reading it. Normally a person will not re-read second time on any information unless the object or article able to attract the reader. Therefore, pass by advertisement will remain unnoticeable if it fails to attract the reader. 1.1 The Advantages and Disadvantages of Non-Traditional Media Tools 1.1.1 E-Mail Newsletters E-mail newsletters can be an excellent way to build brand awareness to the public. Newsletters can be subscribed in some branded company web site. The newsletter must be in a form of addressing offers value to the subscribers. Besides that, some company will corporate together so they can share the newsletter by adding in their own advertisement together with their partners advertisement. The Advantages E-mail newsletter is near instant delivery compare to printing newspaper and magazine. The company can share and send the e-mail to their customers at any time they want. Meanwhile, the company may also send the newsletter to multiple customers just in few clicks time. Hence, recipient can forward the news easily to their friends and family if the offer given by the company is beneficial. The Disadvantages The actual deliverability to the recipients can be low due to SPAM filters or e-mail address changes. Nowadays, there are many potential hackers in the web. To prevent and protect customers privacy, many e-mail browsers using advance filter technology to filter incoming message. So whenever the mail browsers detect something suspicious inside the newsletter, it will automatically direct it into the junk box. 1.1.2 Blogs Some company use web logs to promote their products. A blog advertise can be effective when spreading positive work-of-mouth communications. Meanwhile, using a blog is easier to check the companys news or process and the content mostly will be updated regularly compare to a weekly or monthly e-mail newsletters. The Advantages Company blogs provide an easy access to company news. By doing so, they encourage their customers to view their blogs frequently because some company will regularly update their latest product, upcoming events and latest promotions. Hence, a company that shows their latest detail will gain loyalty from existing customers. The Disadvantages When a blog that dealing with transaction, small local business company may face difficulties with it. If the company is branded, customers will spend more time on the blogs page to browse what they looking for and they can make payment securely because usually well-know company allow people to feel more reliable and secure. In other words, when a small local business company with a least well-know brand, customers confidence level towards the company will not as much as branded company. 1.1.3 Online Advertising Since 1990s, online advertising have increased steadily. Due to the power of internet, marketers think that online advertising is the newest and highly effective method to reach consumers. Types of online advertising are popup, web banner, media feed or video advertisement. The Advantages Online advertising can allow advertisers to reach significantly more people than traditional advertising media in a shorter time. Advertisement can be more targeted than some traditional media because there are variety of people with different age, race and culture surfing the web daily. The Disadvantages Heavy online advertising will cause web users to slowly immune to advertisement. When user are immune to advertisement, the number of people who respond to advertisement will steadily decrease and those advertisements will become not important to everyone anymore. 1.1.4 Online Social Networks Recent years, online social networks have become extremely popular among people. Some company will use social networking site to communicate with consumers. The most well-known social networking site is Facebook, MySpace, Google+ and Twitter. Instead of communicate with consumers, companies also making product and event announcement. The Advantages Since the network is unlimited, advertising in social networking sites are great for attracting more customers. When a customer is connected to your company, your company profile and information will spread among their family and friends too. The speed on spreading news in social sites is getting faster so the network can soon grow wider and even more when the advertisement has successfully build awareness in public. The Disadvantages Despite of building brand awareness, social sites are not that effective because it need to depend on how a user remembers a company brand. When your company brand is not as famous in the market, people will not aware of your product. Meanwhile, brand awareness is usually created from big advertisement on TV, banners, billboards, newspapers, magazines and other repeated advertisement tools. However, social sites may attack from bad comment when a product dissatisfied the customers and since everyone able to comment on something easily. So, this may pull down the companys image easily. 1.1.5 Couponing Coupon can be found in newspaper, magazines, or online advertisement. At most company will encourage consumer to cut or print out these entire coupon and collect for certain amount so that you can redeem the offer. Some companies like McDonald will request consumers to print out the coupon from their webpage so they can enjoy the rebate. The Advantages Heavy Couponing user will save up their monthly expenses effectively. When a smart spender collected lots of coupon, they may get the amount of offer goods in lower price. During the period of collecting coupons, collectors may request their friends and family together for help out in collecting it. By doing so, the promotion news will spread to others by word-of-mouth. The Disadvantages Some people will feel embarrassing due to self-respect. They might feel that why I need to spend time to collect the entire coupon and use it to save just a few ringgit which they may afford to pay. It is wasting time to collect it and sometimes some coupon occurs in magazines so consumer will need to purchase the magazine every week to collect it. http://wiki.answers.com/Q/Different_types_of_non_traditional_market 1.2 Promotional Mixes Used by Proton Company Advertisement is important to every company. Effectively using advertisement will not just creating awareness to the public but also potentially increase market sales. The Proton Company is using this method to gain profit and increase market share. The company has used five ways to advertise their product such as television, banner, newspaper, social media networks and sales promotion. First of all, many company still believing advertise in television is the most successful way to reach the audience. Since every household own a television, the percentage of people watching television everyday will remain at an upper rate. Proton normally advertises their product during some peak hours like during 6p.m. to 10p.m. Every family will start to watch television during that period because everyone already back to house from working and having dinner with families. By that time, each of them may come across with the advertisement. Protons even pick some festive seasons to promote their product like the recent Chinese New Year. Proton has purposely create a commercial for celebrating Chinese New Year by showing a German engineer driving the Proton Preve safely back to his wifes hometown. Secondly, Proton is also heavily using banner to advertise. By placing banner in certain heavy traffic, cities such as Kuala Lumpur and even fly over in highways. Catching eye banner normally the best way to transmit message into viewer mind even there is only a short time exposure. The best banner that Proton has created is advising drivers to drive safely on the road. Once the driver read the message, the next day when they pass by again they will check which company is concerning the public safety. By doing so, Proton has already create a brand awareness to the public. Thirdly, in knowing most of the consumers will be reading newspaper in the morning or anytime in a day. Protons advertisement sometime will be seen in a newspaper. They usually will used up whole page to advertise their product or service. Normally they will not choose front or second page but they will choose middle part of the newspaper so that can easily capture the readers mind with colors and pictures after reading tones of words in the previous page. Besides that, Proton also advertises their service center location so readers may find their service center easily. By grabbing the golden opportunity of using web in this 21st century, advertise in social media networks is as simple as effective. The large audience in the web has brought Proton to find more potential customers to promote their services and products. Simple steps like sharing in Facebook, Twitter and Youtube will efficiently transmit all the information to its audience. No matter they accept it or not, once they view the message already transmit into their mind. Proton owns a Facebook and Youtube page. On Facebook page, they often use to upload recent promotions photos and reply consumers comment. While on Youtube channel, they are posting their products commercial or videos during their recent event. Lastly, sales promotion is a value adding activities designed to boost short term sales and usually include point of sales activities such as in-store and event displays, product trial and distributing leaflets in public. Before launching the new Proton Preve, the company has organized a huge event named Power of 1 at Stadium Bukit Jalil Kuala Lumpur. The purpose of creating that event is to raise the awareness of their Proton brand and to show the public how well their product perform, demonstration is provided on the spot. At the same time, the Preve also shown up but is covering up by stripe form cover so that can maintain at a mysterious stage. Every time after the launch of their products, they will conduct a road show too by issuing brochure to allow consumer to know more about the product. Therefore based on all of these promotion strategies from Proton, the chances to convince a viewer to buy the product is largely depend on the buyer expectation on the product, level of brand loyalty or brands reputation and how great is the quality of the product. Even though sometimes it might not convince a viewer but at least theyre aware of your brand, product and services. So when times goes on follow by the enhancement of a company product, the chances to convince a buyer will also increase. In conclusion, Proton Company should continue to advertise their upcoming product so it may show the growth and improvement of the company. With these reason, the chances of people to buy their product is higher. 1.3 Effectiveness of Advertisement There are two concepts that ensure the times of advertise to reach target audience is the effective reach and effective frequency. Effective reach is the percentage of an audience that must be exposed to a particular message to achieve a specific objective. While the effective frequency refers to the number of times a target audience must be exposed to a message to achieve a particular objective. (Clow, 2011) Effective frequency and effective reach are crucial as when too few exposures will cause the advertiser fail to gain its intended objectives. Whereas if too much exposures will occur in the way of wasting resources. The most effective in advertising is achieving the intended objective successfully without experiencing wastage or marginal return from extra advertisement. Effective reach can be used under situation like a company wants to increase brand recognition. Then the advertisers will emphasis on the visual presentation on the product or the company logo. In this way may allow a person to recognize easily on the brand name together with the companys logo. The main objective of using this method is to nearer a gap in a persons knowledge with the brands. Therefore, if an advertiser wants to increase reach then they have to advertise to a large group of target audience and keep mentioning the brands name and logo as a selling point. Media tools that can cause this happen effectively are by advertising in television, outdoor advertising, magazines, internet, and direct mail. On the other hand, the objective of effective frequency is to increase brand recall. Usually repetition in advertising method is needed so that consumer can remember well of the brand in their mind or memory. Besides that, repetition can increase the times that particular brands will automatically popup in your mind. The more time the audience sees or heard about the advertisement is more easily to remember than he or she heard once in a life time. Examples of media tools that can be used are by television, radio, newspapers and Youtube advertisement thats play first before showing the actual video content.