Facilitator: Thawban Anwar BaigA Case Study presentation
BackgroundMust understand the consumers interests and theirreaction about advertisementThis note presentsHow advertising works from a consumer point of viewHow consumers interpret the advertisementAdvertising is a huge industry where firms invest billionsof dollars
BackgroundWhat advertising is ?Why companies advertise ?Traditional hierarchical approachesLimitations of modelsElaboration of likelihood model (ELM)Subliminal advertisingIssues related to measurement of advertising effectiveness
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”
What Is Advertising ?key elements of advertisingUnique form of communication that is paidDelivered to an audienceHas a non personal natureNon personal nature is diluted due to greaterfrequency of firm-customer interactions
Why Companies Advertise ?Companies invest in advertising due to several reasons:That target market consider the product or service for purchaseTo create perception in the mind of target marketAim could be to inform, persuade or remind
limitationsOrdering of stages is problematicConsumers flow back and forth between stages beforeprogressing to the next stageConsumers can be influenced by ad without payingany attentionMeasurement of advertising effectiveness is not easy
peripheral RouteExample of Peripheral ADs.E:funny indian commercial..mp4 - YouTube.m3u
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.
Peripheral Vs CentralDisadvantages of Emotional persuasion:Emotion might distract consumer from focusing realmessage.Negative or too powerful emotions lead to misconception.
Peripheral Vs CentralDecision 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:MusicSexual AppealCelebrity endorsements
Mood ChangerExample:E:Very funny Indian ad for Religare - Journey - YouTube.m
Elaboration Likelihood ModelThe reactions to information
Elaboration likelihood ModelIs based on two important concepts:Consumer’s thought processConsumer’s involvementForm attitudes along a continuum ranges: High elaboration Low elaboration
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
Subliminal advertisingWhat is conscious mind ?What is subconscious mind ?What is subliminal advertising ?Targeting subconscious mindStimulating below level of conscious awareness
TYPES OF SUBLIMINALADVERTISINGBriefly presented visual stimuli.Accelerated speech in low volume auditory messages.Embedded or hidden imagery or words.
Principal approachesConstant repetition of very weaker stimuli will have acumulative effect that builds over timeSubliminal attractive stimuli will arouse unconsciousmotivations
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.
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.
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
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.).
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
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.
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.
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
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
Difficulties of measurementMeasuring advertising effectiveness can be challengingEffectiveness largely depends upon customerthemselvesConsumer’s mind is not a blank sheetConsumers are exposed to numerous advertisements
Difficulties of measurementAn ad’s ability to break through the clutter is crucialCustomers possess conscious and unconsciousperceptions about the brandDistinguishing the effect of particular ad on consumersis daunting
Goal of advertisinginform persuade remindDescribe attributes, uses and benefitsEmphasize an unfulfilled needCreate feeling of interest, familiarity and likingChange attributes weightsCreate or strengthen positive associationWeaken negative associationRetain loyal customers
ConclusionEffective advertising and promotion campaigns are anintegral component of the overall marketing strategyShould not be developed in isolationEffective advertising and promotion campaigns begins witha good situational analysisParticularly a good customer analysisConsumer should be at the forefront of all planning efforts