Principles Of

Advertising
 Consumers' needs and wants are constantly changing. To be
successful, marketers need to make considerable effort to
determine their customers' current needs.

 In this way, they may get a better grasp of their customers' buying
behavior, as GE did when it defied convention and offered
American refrigerators to the Japanese market.
 Understanding consumers' product needs has become increasingly
important in the twenty-first century.

 Examples:

 Already Levi Strauss has employed computer technology to custom

fit women's jeans with its Personal Pair Program.

 A Japanese bicycle manufacturer uses the customer's instep

measurement to construct a made-to-fit bicycle.
 Marketing involves developing and managing a product that will
satisfy certain needs. It also focuses on making the product
available in the right place and at a price that is acceptable to
customers.

 By knowing customers' buying behaviors, marketers can create

marketing mixes that satisfy customers and lead to success in the
marketplace.
 GE found that price was a deciding factor for Japanese consumers
in the market for a refrigerator. The company then emphasized that
its refrigerators cost half the price of a Japanese model.
 Constant research on buyer behavior and the factors influencing
buying behavior is definitely important for marketers of any
products.
The Goal Of Advertising

 The goal of advertising is to persuade the consumer to do

something, usually to purchase a product.

 If advertising is to attract and communicate to audiences in a way

that produces this desired result, advertisers must first understand
their audiences.

 They must acquaint themselves with consumers' ways of thinking,

with those factors that motivate them, and with the environment in
which they live
The Buyer Decision Process

 All customers can be split into two general groups: business and
consumer buyers.

 The business market consists of manufacturers, resellers,

governments, and nonprofit institutions.

 The consumer market is made up of individuals and households who

buy goods and services for personal use.
 The ways in which the two groups respond to advertising and make
purchase decisions are similar in many respects but are quite
different in others.

 The buying decision process for both business and consumer

markets is viewed as a series of stages through which the buyer
passes in purchasing a product or service.
Buying Decision Process

The process includes five stages:

 need recognition,
 information search,
 alternative evaluation,
 Purchase
 postpurchase evaluation.
Need Recognition

 A buyer's first step toward a purchase decision is recognizing a

need, which means that the buyer perceives a discrepancy
between an actual state and a desired state.

 This discrepancy can be as simple as thirst for a drink or realizing that

a company needs a faster computer to process its orders.

 At this stage of the decision-making process, the advertiser can try

to influence buyers by helping them recognize needs that the
advertiser's products can satisfy.
Information Search

 When buyers have identified a need, they may look for information
about how to satisfy that need.

 This information search is both internal and external, and the buyer's
memory can be a key aspect of the process.

 If a buyer has satisfied a similar need in the past, he or she is likely to

start the search for information by recalling how that need was
satisfied.
 Often the buyer consults with other people in his or her reference
group (e.g., relatives and friends).

 Buyers also acquire information from marketers through

advertisements, packages, salespeople, and the like.
Alternative Evaluation

 Based on the information gathered, the buyer identifies and

evaluates ways to meet his, her, or a company's need, looking for
the best choice in terms of quality, price, delivery time, and other
factors deemed important.

 In this stage, the rational and emotional appeals of advertising play

an important role.
Purchase

 After considering the possible options, the buyer makes a purchase

decision.

 This step includes deciding whether to buy and, if so, what to buy,
where to buy, and when to buy.

 With large purchases in the business market, the buyer and seller
must also work out delivery time, payment terms, installation, and so
forth.
 At this stage, advertising continues to play an important role to
prevent the buyer from changing his or her mind.
Post Purchase Behavior

 After buying a product, customers formally or informally evaluate

the outcome of the purchase.

 Although consumers tend to be much less formal with their

evaluations in that they do not have set criteria to properly evaluate
their purchases, organizational customers usually use standardized
performance criteria to evaluate key suppliers
 In the case of large-ticket items, a common response is for the
consumer to have doubts about the choice after the purchase. This
feeling is called cognitive dissonance—a state of anxiety brought
on by the difficulty of choosing from among several alternatives.

 Advertising can help buyers overcome dissonance if it continues to

reinforce the reasons for making a particular choice.
Factors Influencing The Business
Market
 Relatively few business purchase decisions are made by just one
person; mostly, they are made through a buying center.

 These persons include the user, influencer, decision maker,

gatekeeper (e.g., secretary), and purchaser.

 Identifying the roles in a buying center is a key step in planning

effective advertising because people in the various buying center
roles have different information needs and purchase criteria
 The user: Users are the people in the organization who actually use
the product.
 The influencer: Influencers are people who affect the buying
decisions. For example, an engineer may help to develop product
specifications.
 Decision makers: These are the people who actually choose the
products.
 Gatekeepers: Those in the organization who control the flow of
information into the buyer center are called the gatekeepers. Such
people may include secretarial and technical personnel.
 Purchasers: The authority and responsibility to select suppliers and
negotiate purchase terms resides in the person whose title is the
purchaser or, in some cases, director of purchasing.
Derived Demand

 Of all the differences between consumer and business buyer

behavior, perhaps the most important is the idea of derived
demand, which means that the demand for industrial products
derives from the demand for consumer products.

 When consumer demand for a product changes, a wave is set in

motion affecting demand for all firms involved in the production of
that consumer product.
 A tire manufacturing company may need to stimulate demand for
cars in its advertisements so the company can sell tires to the
automobile manufacturers.
Supplier Selection

 Supplier selection is often a formal process among business buyers,

as customers try to find the best suppliers for each type of product
they need.

 Many companies have "approved supplier" lists, and employees are

prohibited from purchasing goods or services from anyone not on
the list.

 This encourages advertisers to convince potential customers (e.g.,

members in the buying center) that they are capable and reliable
sources of products.
 In turn, the buying organization may invite suppliers to submit formal
proposals for buyers' purchasing evaluation purposes.
Business-to-Business (B2B)
Advertisements
 Businesses may advertise services or goods (products). Of the two,
advertising for services lends itself more to the use of emotional
appeals in order to develop a "service personality.“

 Business-tobusiness advertising generally employs rational appeals,

perhaps because business buyers "are believed to use a more
rational decisionmaking process than final consumers."
Factors Influencing The Consumer
Market
Personal Factors

 Personal factors are those that are unique to a particular person.

Numerous personal factors influence purchasing decisions.

 Demographic factors are individual characteristics, such as age,

gender, educational level, occupation, and income.

 Given such differences, people tend to make different choices

regarding their uses of a car, their choices of media, and their
patterns of spending.
 For example, researchers have discovered that, while red violet is a
popular fashion color with women, men are indifferent to the color.

 If an advertiser determines that a product is most likely to appeal to

members of certain groups, a marketing mix can be developed that
takes these differences into account.
Psychological Factors

 Psychological factors operating within individuals partly determine

people's general behavior and thus influence their purchasing
behavior. Each individual consumer is influenced by his or her
perception, motives, attitudes, and personality

 Perception

 Perception refers to the way people gather and record information.

 Although marketers cannot control people's perceptions, they often

try to influence them.
 The efficacy of subliminal messages, embedded material in
advertising designed to "reach the consumer below the threshold of
consciousness," has been an area of controversy.

 Opinion has been divided. Skeptics, often academics, do not

believe embedded material permeates the subconscious mind at
all, and proponents, usually practitioners, may exaggerate the
effects
Motivation

 When consumers perceive that they have a need, the inner drive
that propels them to fulfill the need is called motivation.

 Advertisers want to know what motivates consumers so that they

can appeal to those motives.
Attitudes

 An attitude is an individual's enduring evaluation, feelings, and

behavioral tendencies toward an object or idea.

 Consumer attitudes toward a company and its products greatly

influence success or failure of the firm's marketing/advertising
strategy.

 Therefore, marketers should carefully measure consumer attitudes

toward advertisements, package designs, price, and other product
features to assure success in the marketplace.
Lifestyle

 A lifestyle can be defined as a person's activities, interests, opinions,

and consumption patterns.

 Marketers use lifestyle information to tailor the marketing mix to meet

customers' needs.

 When the Atkins diet swept the United States as an

unprecedentedly popular fad diet, lowcarb foods hit the market.
Personality

 Another psychological element that has attracted the attention of

advertising researchers is personality, a person's characteristic and
consistent patterns of behavior.

 A number of marketers are convinced that consumers' personalities

do influence types and brands of products purchased.
Social Factors

 External forces that impact individual buying behavior are called

social factors. Most notable is the broad grouping of forces
generated by culture, reference groups, and social status.
Culture

 The beliefs, values, and symbols that a society shares and passes
from generation to generation constitute its culture.

 Value differences in different cultures (e.g., the United States and

Japan) can be especially notable in international marketing and
advertising.

 For instance, the Domino's pizza chain offers squid and tuna
toppings in Japan.
Reference Groups

 In addition to culture, buyer behavior can be influenced by a

reference group, including family, friends, and professional
organizations.

 Reference groups influence people's decisions by providing

information or by pressuring them to conform to group norms.

 Reference groups have the most impact when consumers are

unfamiliar with a product.
 Advertisers need to find a way to gain the support of various
reference groups in their efforts to sell their products to consumers.
Social Status

 Social status is another important factor in buyer behavior.

Consumers in every country are of different social classes.

 A social class is a group of individuals with similar social rank (e.g.,

similar education and skills).

 Social class determines to some extent the type, quantity, and

quality of products that a consumer buys and uses. In some
instances marketers attempt to focus on certain social classes
through advertisements, personal sales efforts, pricing, and other
strategies.
 Thank you!