2. Background
Must 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
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. 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”
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 greater
frequency of firm-customer interactions
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
8. limitations
Ordering 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
14. 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.
15. Peripheral Vs Central
Disadvantages of Emotional persuasion:
Emotion might distract consumer from focusing real
message.
Negative or too powerful emotions lead to misconception.
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
19. 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
21. 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
22.
23. Subliminal advertising
What is conscious mind ?
What is subconscious mind ?
What is subliminal advertising ?
Targeting subconscious mind
Stimulating below level of conscious awareness
25. Principal approaches
Constant repetition of very weaker stimuli will have a
cumulative effect that builds over time
Subliminal attractive stimuli will arouse unconscious
motivations
29. 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.
32. 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.
33. 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
34. 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.).
35. 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
36. 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.
37. 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.
38. 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
39.
40.
41. 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
42.
43. 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
44. 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
45. Goal of advertising
inform 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
46. 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