Introduction
Advertisements enable particularly large firms with distinct market segments to easily communicate with their target clients. Online advertisements are often geared to reach target consumers depending on the kind of information they are looking for. The primary aim of adverts is to create an impact on the consumer buying behavior. It is, therefore, important for marketing managers to ensure that advertisements showcase favorable service or brand image. This helps to instigate or encourage positive perception from both the existing and new customers. Positive perception increases the probability of the consumers purchasing the products (Jeddi, et al., 2013). For that reason, this study seeks to carry out a comparative analysis of two advertisements run by different companies within the same industry; State Farm’s “Hawks and Hornets” and Liberty Insurance’s “Olympics 2012” advertisements, putting more emphasis on the consumer buying process. The State farm and Liberty Insurance are both American insurance companies.
Target markets, brand uniqueness, seasonality, positioning and objectives
Advertisements are often targeted at specific consumers. Targeting ensures that the information delivered on the brand or the service provided gets to the right target client. Marketers have long acknowledged that target consumers of a particular product are quite different. They differ on the basis of geographic distribution, demographics, psychographics, and behaviorism (Jeddi, et al., 2013). In this case, the State Farm Commercial-Hawk and Hornets advert mainly target families with young adults. This is quite evident since there is a family involved. Mr. Hooper is patently educating his child a lesson on hawks and hornets as well as informing him on insurance (NBA/ State Farm, 2015). On the other hand, the Liberty Insurance-Olympics advert is targeted towards individual adults. The characters depicted in the advert illustrates no sign of any relationship between one another and are considerably independent (Translators, 2013).
Different adverts convey certain features of a brand or service delivered by the company. Some benefits can also be attached to the features. Consumers often indulge in a lucid analysis of the brand and the benefits depending on what they view from the advertisements. When evaluating the benefits, consumers often develop some emotional attachment to the service or the product advertised. They attach value to the brand. They also consider the ways in which the service or the brand will simplify and enhance their lives (Jeddi, et al., 2013). Case in point, the State farm advert features an extension of family car insurance cover to the young adults. Mr. Hooper tells his son that when he will be ready to drive, then he will be covered under his dad’s car insurance. The extension is quite beneficial since it will help the family save some money. The father does not need to pay extra cash to cover for his boy’s car insurance (NBA/ State Farm, 2015). Conversely, the Liberty advert features an insurance which covers for the imperfections of the human nature. As with the State Farm ad, this is beneficial since consumers will not now have to beat their heads up for the petty mistakes and minor accidents they encounter (Translators, 2013).
Marketers always find it easy to attach a theme to advertisements into an imminent event or a holiday. Since the consumer mindset is usually already on the event or the holiday, then it is often more likely that appropriate needs of the moment will be achieved (Nynne, 2010). The Liberty Insurance company took this approach. The company launched the Liberty Insurance- Olympics advertisement concurrent to the Olympic Games. The idea was quite relevant since the ad mainly featured insurance coverage of minor accidents. Major games such as the Olympics are often associated with increased minor injuries (Translators, 2013). Contrary, the State Farm ad does not exhibit any kind of seasonality. The service provided is also not offered for any occasion. This is probably because it does not require seasons for the young adults to be included in their parent’s car insurance coverage (NBA/ State Farm, 2015).
It is critical for a brand or service provider to occupy a unique position in the consumer mind compared to other competing brands or services existing in the market. Standing out among competing brands or services ensure that the brand is not taken for granted by the consumers (Nynne, 2010). Both the State Farm and the Liberty insurance have positioned themselves against the broader market. The majority of insurance companies often ignore the fact that humans are imperfect. Many of the companies often cover for severe injuries. However, the Liberty insurance is quite exceptional. It has decided to cover for petty injuries including the ones caused by ignorance (Translators, 2013). Similarly, the State Farm ad also occupies a unique position in the insurance industry. Car insurance coverage for young adults especially in the developed can be very expensive. Young adults are believed to be energetic and often associated with careless driving. They are also prone to accidents. States Farm, however, has gone past this perception and is ready to offer the young adults car insurance under their parent’s insurance (NBA/ State Farm, 2015).
Advertisements often aim at communicating particular information to consumers. For example, the States farm-Hawks and Hornets advertisement mainly aim to inform both the existing and the new customers that they have extended the parent’s car insurance to coverage to the young adults. Despite the fact that the ad is not directly pointing out at the direct selling prices, the price can be determined by the clients who already have the insurance covers (NBA/ State Farm, 2015). Contrary, the Liberty advertisements purely aims to inform the target clients that they can be able to cover them even for their imperfections (Translators, 2013).
Consumer perception
Consumers react differently to various advertisements. The differences also exist in terms of gender. Men may prefer ads with nudity, violence and strange behavior compared to women. Companies often use various visual texts, images, and music and celebrity endorsement to enhance the general public perceptions (Spinnewijn, 2012). For instance, both the State Farm and the Liberty ads use celebrity endorsement to enhance their service recognition. Celebrity endorsements give an impression that the celebrities are part of the consumers. Many people often want to associate themselves with such products especially if they like the celebrity. Chris Paul, who plays the role of a father in the State Farm ad is an American renowned basketballer. He had won the NGA apprentice of the year and many other awards. Kevin Love, the son is also a popular American basketballer (NBA/ State Farm, 2015). The Liberty ad is narrated by the famous actor Paul Giamatti. The actor is well-renowned for the famous The Illusionist (Translators, 2013). The hilarious mood exhibited in both adverts also helps enhance the audience positive perception (Translators, 2013).
Advertisements and consumer buying stages
Advertisements are quite essential in the various stages of the consumer buying process. The consumer buying process consists of five main stages. These include: need recognition, brand awareness, evaluation of alternative, purchase decision and lastly post purchase behavior (Jeddi, et al., 2013). Both the state Farm and the Liberty adverts are aimed at the need recognition stage by acting as an external stimulus. The audience can easily recognize the need for insurance after viewing the adverts. The adverts are also aimed at the consumer brand awareness stage. From the two adverts, the consumer can acquire knowledge on the kind of the services offered by the different companies. Consumers who a car insurance need for their children might take into consideration the State Farm Insurance while those individuals who desire to be covered from minor injuries might consider taking the Liberty insurance. The adverts again aimed at the alternative evaluation stage. In this stage, consumers’ perception is quite essential. Consumers will only consider the services into their alternative lists if at all they develop a positive perception (Jeddi, et al., 2013).
Level of involvement
Consumer level of involvement is critical in marketing. Involvement might allude to the degree of consumer psychological affinity and connection to the product or the service provided. The level of involvement can be influenced by advertisement and promotional events (Kumar & Venkateswara, 2013). The State Farm ad has demonstrated a high level of consumer involvement. Mr. Hooper’s son who is actually an adult has been made to look young in order to take the role of a kid. Social visibility is also evident in the advertisement. There is an interaction between a father and his son (NBA/ State Farm, 2015). The other advertisement also shows a considerable high level of consumer involvement. The advertisement exhibit high level of engagement. It explores the different environmental setting that accidents could occur. From restaurants, streets, over the window or just outside one’s house (Translators, 2013).
Marketing mix elements
The marketing mix of a company is by far a result of changes that comes from everyday marketing. Marketing mix continuously represents the strategies adopted by the firms to constantly keep up with the ever evolving and the ever complex markets. New strategies are often initiated for new products, aggressive promotion, and price changes (Thomas, 2006). Case in point, in the State Farm advertisement, encourage an aggressive promotion. The company aims to expand the adult individual insurance to cover for the young adults of the family. The aggression promotion is well communicated and can be evidenced where Mr. Hooper’s son is ready to listen to the information about insurance but is quite reluctant to get the lessons from the Hawk and Hornets narrative. Similarly, the Liberty advert involves an aggression promotion of a service. The ad is quite successful in the use of humor and images to clearly bring out the range of accidents brought about by human imperfections in which the company can provide cover for (Translators, 2013).
Information about pricing is also necessary to influence the consumer buying process. The States and the Liberty and the Liberty advertisements do not provide information about pricing. The advertisements are aimed at consumers about the aggressive promotion of the products. (NBA/ State Farm, 2015) The advertisements are not selling hence it is unnecessary to provide such information. The advertisements are more focused on creating awareness of the new services rather than selling (Translators, 2013).
Insurance companies often distribute the insurance covers to the customers through their agents. However, the rapid increase in internet penetration is slowly changing the customers’ preference about purchasing insurance products. Presently, many customers browse the internet to find information on policies, payment methods and to contact the agents (Bhattad, 2011). In relation to this, the Liberty Insurance advertisement provides some information about distribution. The advertisement recommends that the audience should visit the company website to find more information about the insurance services and products offered. The website is www.libertymutual.com. The advertisement also advices the audience to watch on their policies (Translators, 2013). Conversely, the State Farm ad does not provide much information about the distribution strategy but at some point, it mentions about contacting agents (NBA/ State Farm, 2015).
The promotional objectives of any advertisement should be clearly illustrated to properly convey the message. The main promotional strategy aim of the Liberty Insurance ad is to inform the customers about the nature of accidents the insurance covers. The objective is efficiently achieved particularly by the picture demonstrations and the narration of the events that are taking place. The pictures demonstrate how people happen to encounter particularly trivial accidents like tripping on the floor after which the narrator informs that the insurance company can offer help in times of such accidents (Translators, 2013). On the other hand, the primary objective of the State farm ad is for the company continuity purposes. The company has extended parent’s insurance to cover for the kids’ car whenever they are ready to drive. The objective is explicitly brought out by the idea that the kid is very willing to listen about the concept of being covered other than listening to his father’s story (NBA/ State Farm, 2015).
There are many media in which companies can use to place their advertisements. These include television and radio channels, company websites, social media, YouTube, blogs among other media. Currently, nearly all the traditional media like television and radio channel are drenched and the completion for the attention of the consumers is very powerful. In addition, the effect of one medium is progressively becoming weak. Consequently, companies have become pro-active in an attempt to develop more innovative strategies to communications. Well-targeted communications usually result in increased consumer outreach (Kumar & Venkateswara, 2013). The State Farm and the Liberty insurance company choice of the YouTube media strongly suggest that insurance product consumers have greatly shifted to internet information search and purchase. It also implies that competition in the industry is quite stiff and that the companies must just step up to enhance their competitive advantage (NBA/ State Farm, 2015; Kumar & Venkateswara, 2013).
Conclusion
From the analysis, it can be concluded that the State Farm advert- Hawk and Hornets and the Liberty Insurance advert- Olympics 2012, considerably achieved in influencing the consumer buying decision process. The service unique features were clearly demonstrated. The advertisements also aimed directly at the desired target consumers and the insurance services provided were well positioned. The informative objectives were also achieved. Celebrity endorsements and hilarious mood were used to stimulate positive attitude and favorable perception from the consumers. The advertisement specifically aimed at the need recognition, information search and the alternative evaluation stages of the consumer buying process. Lastly, the marketing mix elements were clearly illustrated. However, the State Farm Commercials- Hawk and Hornets ad did not provide sufficient information on distribution strategies. The advertisements achieved in informing the consumers about their services provided.
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