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  1. 1. Facilitator: Thawban Anwar BaigA Case Study presentation
  2. 2. BackgroundMust understand the consumers interests and theirreaction about advertisementThis note presentsHow advertising works from a consumer point of viewHow consumers interpret the advertisementAdvertising is a huge industry where firms invest billionsof dollars
  3. 3. BackgroundWhat advertising is ?Why companies advertise ?Traditional hierarchical approachesLimitations of modelsElaboration of likelihood model (ELM)Subliminal advertisingIssues related to measurement of advertising effectiveness
  4. 4. What Is Advertising ?Advertising means different things to different people“Advertising is any paid form of non personalcommunication about an organization, product,service, idea or cause by an identified sponsor”
  5. 5. What Is Advertising ?key elements of advertisingUnique form of communication that is paidDelivered to an audienceHas a non personal natureNon personal nature is diluted due to greaterfrequency of firm-customer interactions
  6. 6. Why Companies Advertise ?Companies invest in advertising due to several reasons:That target market consider the product or service for purchaseTo create perception in the mind of target marketAim could be to inform, persuade or remind
  7. 7. The Hierarchy Models
  8. 8. limitationsOrdering of stages is problematicConsumers flow back and forth between stages beforeprogressing to the next stageConsumers can be influenced by ad without payingany attentionMeasurement of advertising effectiveness is not easy
  9. 9. Persuasive Communication
  10. 10. Central Route
  11. 11. Peripheral RoutePurchase Example
  12. 12. Peripheral Route
  13. 13. peripheral RouteExample of Peripheral ADs.E:funny indian commercial..mp4 - YouTube.m3u
  14. 14. Peripheral Vs Central“Advertiser uses various stimuli which provoke desiredemotions.”Emotional persuasion has certain advantages:Does not raise the viewer’s natural defences.Requires less effort from the viewer.Emotional stimuli is more interesting.Leads to a behaviour more quickly than a logical argument.
  15. 15. Peripheral Vs CentralDisadvantages of Emotional persuasion:Emotion might distract consumer from focusing realmessage.Negative or too powerful emotions lead to misconception.
  16. 16. Peripheral Vs CentralDecision depends on Three Major factors:Audience’s involvement in the purchase decision. The attributes of the product The mood of the target market.Advertisers use different tools to arouse moods Like:MusicSexual AppealCelebrity endorsements
  17. 17. Mood ChangerExample:E:Very funny Indian ad for Religare - Journey - YouTube.m
  18. 18. Elaboration Likelihood ModelThe reactions to information
  19. 19. Elaboration likelihood ModelIs based on two important concepts:Consumer’s thought processConsumer’s involvementForm attitudes along a continuum ranges: High elaboration Low elaboration
  20. 20. Elaboration likelihood Model
  21. 21. The persuasion will motivate or de- motivateconsumer to investigate the Advertisement.Attitudes formed along the central route :Resistant to change .Predictive of Behavior.Elaboration likelihood Model
  22. 22. Subliminal advertisingWhat is conscious mind ?What is subconscious mind ?What is subliminal advertising ?Targeting subconscious mindStimulating below level of conscious awareness
  23. 23. TYPES OF SUBLIMINALADVERTISINGBriefly presented visual stimuli.Accelerated speech in low volume auditory messages.Embedded or hidden imagery or words.
  24. 24. Principal approachesConstant repetition of very weaker stimuli will have acumulative effect that builds over timeSubliminal attractive stimuli will arouse unconsciousmotivations
  25. 25. Subliminal MessagesE:Subliminal Messages - YouTube.m3u
  26. 26. THE AIDA MODEL
  27. 27. Ad effectiveness measurement Identify “what advertising aims you want to achieve”???? Aida (awareness, interest, desire and action) model is usedas a framework to describe the key measures of advertisingeffectiveness. The model is purely based on successive stages ofconsumer response.
  28. 28. The aida model
  29. 29. Awareness Following measures are used to measure effectivenessof an ad’s ability to stimulate awareness:A.Recall.B.Un aided recall.C.Aided recall.D.Recognition.
  30. 30. Awareness (cont…) Recall measures verbal memory. Recognition measures visual memory. Most consumers have better visual memory. Emotional ads capture high scores on recognition as compared torecall
  31. 31. Interest Following measures are used to measure effectiveness ofan ad’s ability to stimulate consumer’s interest:A)Advertising recall.B)Attitudes.C)Brand equity.D)Positioning.E)Inquiries (through website,telephone or store etc.).
  32. 32. Interest (cont…) Recall can also be used to measure consumer’s interest. Attitudes are measures through questionnaires (attitudescales). These attitudes can result in purchase intentions Researchs shows that both central and peripheral factorsof an ad can influence the consumer’s attitude
  33. 33. Interest (cont…) Assessment of brand equity. Brand equity is defined as “ differential effect of brandknowledge on consumer response to marketing of thatbrand”. Brand equity is a useful indicator of consumer’s interest.
  34. 34. Desire The effectiveness of an ad’s ability to stimulate desire for aparticular product or service. This can be measures with the help of conductinginterviews and surveys that are self-administered. Consumer’s intentions to buy a particular product orservice could be known through interviews and surveys.
  35. 35. Action An ad’s ability to stimulate consumer’s behavior andactions. Identify your market share and sales growth in order tomeasure consumer’s behavior. Records of purchases at retail stores or check-out points. Companies manage huge data-bases built to store datarelated to their sales
  36. 36. Measuring advertising effectivenessThe work is not complete if the effectiveness of advertise is notmeasured.Most popular areas which need to be measured Communication effect Direct rating method Portfolio tests Laboratory tests
  37. 37. Difficulties of measurementMeasuring advertising effectiveness can be challengingEffectiveness largely depends upon customerthemselvesConsumer’s mind is not a blank sheetConsumers are exposed to numerous advertisements
  38. 38. Difficulties of measurementAn ad’s ability to break through the clutter is crucialCustomers possess conscious and unconsciousperceptions about the brandDistinguishing the effect of particular ad on consumersis daunting
  39. 39. Goal of advertisinginform persuade remindDescribe attributes, uses and benefitsEmphasize an unfulfilled needCreate feeling of interest, familiarity and likingChange attributes weightsCreate or strengthen positive associationWeaken negative associationRetain loyal customers
  40. 40. ConclusionEffective advertising and promotion campaigns are anintegral component of the overall marketing strategyShould not be developed in isolationEffective advertising and promotion campaigns begins witha good situational analysisParticularly a good customer analysisConsumer should be at the forefront of all planning efforts