Facilitator: Thawban Anwar Baig

A Case Study presentation

BackgroundMust understand the consumers interests and their

reaction 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 billions

of dollars

BackgroundWhat 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

What Is Advertising ?Advertising means different things to different people

“Advertising is any paid form of non personal

communication about an organization, product,

service, idea or cause by an identified sponsor”

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 greater

frequency of firm-customer interactions

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

The Hierarchy Models

limitationsOrdering of stages is problematic

Consumers flow back and forth between stages before

progressing to the next stage

Consumers can be influenced by ad without paying

any attention

Measurement of advertising effectiveness is not easy

Persuasive Communication

Central Route

Peripheral RoutePurchase Example

Peripheral Route

peripheral RouteExample of Peripheral ADs.

E:\funny indian commercial..mp4 - YouTube.m3u

Peripheral Vs Central “Advertiser uses various stimuli which provoke desired

emotions.”

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 Central Disadvantages of Emotional persuasion:

Emotion might distract consumer from focusing real

message.

Negative or too powerful emotions lead to misconception.

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

Mood ChangerExample:

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Elaboration Likelihood ModelThe reactions to information

Elaboration likelihood Model Is based on two important concepts:

Consumer’s thought process

Consumer’s involvement

Form attitudes along a continuum ranges:

High elaboration

Low elaboration

Elaboration likelihood Model

The persuasion will motivate or de- motivate

consumer 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 mind

Stimulating below level of conscious awareness

TYPES OF SUBLIMINAL

ADVERTISINGBriefly 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 a

cumulative effect that builds over time

Subliminal attractive stimuli will arouse unconscious

motivations

Subliminal MessagesE:\Subliminal Messages - YouTube.m3u

THE AIDA MODEL

Ad effectiveness measurement Identify “what advertising aims you want to achieve”????

Aida (awareness, interest, desire and action) model is used

as a framework to describe the key measures of advertising

effectiveness.

The model is purely based on successive stages of

consumer response.

The aida model

Awareness Following measures are used to measure effectiveness

of 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 to

recall

Interest Following measures are used to measure effectiveness of

an 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 (attitude

scales).

These attitudes can result in purchase intentions

Researchs shows that both central and peripheral factors

of an ad can influence the consumer’s attitude

Interest (cont…) Assessment of brand equity.

Brand equity is defined as “ differential effect of brand

knowledge on consumer response to marketing of that

brand”.

Brand equity is a useful indicator of consumer’s interest.

Desire The effectiveness of an ad’s ability to stimulate desire for a

particular product or service.

This can be measures with the help of conducting

interviews and surveys that are self-administered.

Consumer’s intentions to buy a particular product or

service could be known through interviews and surveys.

Action An ad’s ability to stimulate consumer’s behavior and

actions.

Identify your market share and sales growth in order to

measure consumer’s behavior.

Records of purchases at retail stores or check-out points.

Companies manage huge data-bases built to store data

related to their sales

Measuring advertising effectiveness

The work is not complete if the effectiveness of advertise is not

measured.

Most popular areas which need to be measured

Communication effect

Direct rating method

Portfolio tests

Laboratory tests

Difficulties of measurement

Measuring advertising effectiveness can be challenging

Effectiveness largely depends upon customer

themselves

Consumer’s mind is not a blank sheet

Consumers are exposed to numerous advertisements

Difficulties of measurement

An ad’s ability to break through the clutter is crucial

Customers possess conscious and unconscious

perceptions about the brand

Distinguishing the effect of particular ad on consumers

is daunting

Goal of advertisinginform

persuade

remind

Describe attributes, uses and benefitsEmphasize an unfulfilled needCreate feeling of interest, familiarity and

likingChange attributes weightsCreate or strengthen positive association Weaken negative associationRetain loyal customers

Conclusion

Effective advertising and promotion campaigns are an

integral component of the overall marketing strategy

Should not be developed in isolation

Effective advertising and promotion campaigns begins with

a good situational analysis

Particularly a good customer analysis

Consumer should be at the forefront of all planning efforts