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SALES MANAGEMENT
Importance of Advertising
“Advertising is telling and selling”
Though it is one of the several functions
of marketing, it has taken the form of an
independent discipline.
The Meaning of Advertising
The term originates from the Latin “adverto”, which
means to turn round.
Advertising thus denotes the means employed to
draw attention to any object or purpose.
“It is a paid form of non personal presentation an
promotion of ideas, goods or services by an
identified sponsor.”
Through advertisement, the advertiser intends to
spread his ideas about his products among this
customers and prospects.
Popularization is the basic aim of the advertising
activity
Key Components of the Advertising Job
Attention
Interest
Desire
Action!
AIDA (Awareness, Interest,
Desire, Action)
The AIDA sequence is conceptualized by
Strong (1925)
Here the consumer is moved along a linear
continuum of internal states from
unawareness to awareness
Then interest is elicited and desire (for the
brand) is aroused.
Finally, the consumer is stirred into action.
Linear Communication and the
Hierarchy of Effects
Theories reflect the methods and assumptions of
cognitive psychology.
Analogy is drawn between the information
processing of computers and that of humans
These research traditions have been drawn on by
models of advertising persuasion
The consumer’s resistance is broken by an
accumulation of advertising effects hence the
expression “hierarchy of effects”
The consumer processes information like a
computer sequentially according to rules
Hierarchy of Effects
The hierarchy of effect represents “compounding
probabilities” (Percy et al. 2001)
It is also criticized on the grounds that it conceives
of advertising consumption as an essentially dyadic
process transmitted through a media channel to an
individual viewer and consumed in social isolation
A further criticism is that it represents only high
involvement purchases: many or most purchases
are spontaneous and do not engage consumers in
such rational processing
Social Process Vs Emotional
Process
Ineluctably social process (Ritson and Elliot,
1999) – we do not generally view ads in an
experimental booth-our interpretation of them is
normally framed by the social context in which
we encounter them.
Elliot, 1998; Holbrook and Hirschman, 1982 –
Subsequent models have incorporated stronger
elements of consumer emotionality into the
persuasion process to reflect the often irrational
and quirky motivations behind consumer
behavior.
Cognition
Cognition (Thinking) refers to the rational appeal of
advertising as for example, a motor car ad which includes
data on engine performance or utility features.
The affective stage refers to the emotional response of the
consumer to an ad. Not only does the ad seek to engage
with the consumer on a rational level by emphasizing
product benefits; it also tries to elicit a positive emotional
response with pleasing imagery and alluring symbolism.
Motor car ads typically feature the engine and other product
data plus a carefully shot picture of the car and its
occupants in a pleasing setting.
The emotional response is: desire, triggered by
identification. Finally conation refers to action: the
combination of rational and emotional appeal in the same ad
might act persuasively and motivate a purchase response.
Advertising
How Advertising Works
Some things we know about people.
“People read what interests them,
sometimes it’s an ad.” (Gossage)
People are strategic - they look out for
their own best interests.
People are bombarded with messages
A key concern is getting through clutter
People (and advertising) work from
both logic and emotion
The Linear Model of
Communication
NOISE
NOISE
Limitations of Linear Model
It is easy to interpret in such a way that meaning and message are understood
to be synonymous. This risks misconstruing the interpretative possibilities.
Oversimplification of the customer’s cognitive engagement with advertising
by emphasizing a singular message that has one unproblematic meaning.
The advent of parallel processing: the assumption that computers and human
brains can process one bit of data at a time as been challenged by more complex
models
The implication that explicit attention must be given to an ad is erroneous.
The linear model of communication with its sequential processing translates
conveniently into a model of persuasion if these stages are replaced with
attitudinal or behavioral states (AIDA). A lot of research goes on in measuring
these states as they are an indicator of the likelihood of purchase (and therefore
an indicator of success of the advertisement campaign). Thus these are necessary
conditions for advertising to achieve its marketing goals but not sufficient. Eg. A
consumer may be aware of ad or may even like an ad but that does not mean he
will buy the product.
Advertising
How Advertising Works
The Lavidge-Steiner
Purchase
Learning Model
How people “learn” ads Conviction
Begins with Awareness
Preference
Moves to Conviction
and Purchase Liking
NOTE: Process may be
quite rapid and you Knowledge
may try before being
totally convinced
Awareness
Key
The SingleConcepts
Biggest Thing:
Advertising
Advertising dollars
dollars have
have great
great “elasticity”
“elasticity”
Planning
Planning and
and implementing
implementing thethe Right
Right Advertising
Advertising
is
is usually
usually critical
critical for
for success
success in
in the
the marketplace
marketplace
The
The Wrong
Wrong Advertising
Advertising is
is usually
usually worthless
worthless
Advertising
Advertising can
can be
be The
The Single
Single Biggest
Biggest Thing
Thing
ItIt can
can probably
probably impact
impact sales
sales more
more than
than any
any other
other
element
element of of the
the marketing
marketing mix
mix..
And
And …
… it
it is
is the
the most
most fun!
fun!
Key
The SingleConcepts
Biggest Thing
Advertising
Advertising is
is just
just aa part
part of
of “The
“The Five
Five Ps”
Ps”
All
All of
of “IMC”
“IMC” is
is important
important
However...
However...
Advertising
Advertising dollars
dollars are...
are...
Often,
Often, the
the biggest
biggest item
item in
in the
the marketing
marketing budget
budget
The
The most
most visible
visible part
part of
of marketing
marketing spending
spending
The
The most
most controllable
controllable marketing
marketing activity
activity
Advertising
Advertising is
is often…
often… “the
“the tail
tail that
that wags
wags the
the
marketing
marketing dog”
dog”
Key Concepts
Campaigns:
Origin
Origin of
of term
term
Military
Military Campaigns
Campaigns
Political
Political Campaigns
Campaigns
Advertising
Advertising Campaigns
Campaigns
Key Concepts
Campaigns:
Origin
Origin of
of term
term
Fr. campagne, It. campagna - open country
suited to military maneuvers
Campaign - a series of military operations with
a particular objective in a war
Campaign - a series of organized planned
actions with a particular purpose, as for
electing a candidate.
Key Concepts
Campaigns:
Military
Military Campaigns
Campaigns
“Victory is my objective.
War is my strategy.”
Winston Churchill
Key Concepts
Campaigns:
Military
Military Campaigns
Campaigns
“a series of military operations with a particular
objective in a war”
Advertising and marketing use both
the language and the military
mindset
Example: a very popular
marketing book…
Key Concepts
Campaigns:
Political
Political Campaigns
Campaigns
“Advertising
is a team sport!”
Key Concepts
Campaigns:
Advertising
Advertising Campaigns
Campaigns
A team effort
Structured and
sequential
activities
An imaginative
re-integration of
new and existing
factors
Shared objectives
and strategies
Key Concepts
Advertising Campaign:
What
What were
were the
the common
common elements?
elements?
1.
1. ____________________________
____________________________
graphic look
2.
2. ____________________________
____________________________
strategic message
3.
3. ____________________________
____________________________
benefit statement
4.
4. ____________________________
____________________________
brand personality
5.
5. ____________________________
____________________________
executional elements - the dog
6.
6. ____________________________
____________________________
anything else?
Key Concepts
Advertising Campaign:
Campaigns
Campaigns are
are built
built with…
with…
The same
language!
Key Concepts
Vocabulary:
Vocabulary:
The
The Language
Language of
of Marketing
Marketing &
& Advertising
Advertising
Original concepts came from military
“AIDA”
Advertising
How Advertising Works
Some things we know about people.
“People read what interests them,
sometimes it’s an ad.” (Gossage)
People are strategic - they look out for
their own best interests.
People are bombarded with messages
A key concern is getting through clutter
People (and advertising) work from
both logic and emotion
Advertising
How Advertising Works
Some things we know about
Advertising
Branding and Advertising
Branding = overall brand equity building
Advertising = specific messages and goals
Y = f (X, β)
The user of regression analysis must make an intelligent guess about this function. Sometimes the form of
this function is known, sometimes he or she must apply a trial and error process.
Assume now that the vector of unknown parameters, β is of length k. In order to perform a regression analysis
the user must provide information about the dependent variable Y:
If the user performs the measurement N times, where N < k, regression analysis cannot be performed: there
is not provided enough information to do so.
If the user performs N independent measurements, where N = k, then the problem reduces to solving a set of
N equations with N unknowns β.
If, on the other hand, the user provides results of N independent measurements, where N > k, regression
analysis can be performed. Such a system is also called an overdetermined system;
Written Matter
Pictures
Labels
Logo
Design
Source
The Credibility of the Source
Likeability/Attractiveness of the Source
The Source’s approach to the views and
Disposition of the audience
Snapshots
Source tone: soothing, authoritative, upbeat;
familiarity or lack of it.
Color: Blue-Cold, used to create distance, blue
skies. Red-Intense. Orange (Warm). Black
(Mysterious, Sinister), Purple (Luxury). Colors can
be treated as metaphors for nature: green grass,
brown earth, red blood and passion
Serif Old Roman Style: Tradition and Authority
Times, Century Schoolbook (Transitional),
Media Selection
Deciding on:
Methods: