Contemporary Advertising and its Effect - Assignment Example

Advertising – Questions Chapter One: Q1. Advertising has been defined as a form of “structured” communication that is “persuasive in nature” using various media. How does the advertising campaign of the “Mini” illustrate this definition of advertising as a tool of persuasion through various media? Ans: The advertising campaign for the Mini was targeted at opinion leaders and the kind of consumers who do not like to have marketing messages thrust on them. It used a mix of media advertisements – print, film and Internet ads. It also used teaser outdoor ads that were designed to communicate with customers and spark their curiosity - for example, through plain billboards with white tag lines carrying messages like “The SUV backlash officially starts now” which prompted hits on the Mini website to discover more about the car(p.6). Guerilla marketing stunts were employed, for example, the small cars were transported through the streets on top of SUVs, or parked in malls to resemble children’s rides.(p 20). Such stunts were effective in promoting word-of-mouth publicity for the car. The advertisements were also unusual and creative, designed to persuade consumers to discover the merits and uniqueness of the mini on their own, by emphasizing its “small stature and outsider mystique” in the advertisements (p.6, 20-23). Additionally, the text of the advertisements, which focused on “motoring” instead of “driving”, served to appeal to environmentally conscious customers to persuade them to purchase the car.(p 22). The advertisements were Q2. How is the human communication process applicable to advertising? Ans: The oral communication process originates from the source – the creator of the message, which is then encoded and sent through the use of a channel to the receiver, who must decode the message and understand it (p 9). The last stage of the process is feedback, where the receiver formulates a response, encodes it and sends it through a channel. Such transmission of messages takes place among background noise or the distraction of other messages. In the advertising process, the sponsor working through its advertising agency is the source – the creator of the message, which is the advertisement itself. The channel is the medium through which the advertisement is transmitted and the receiver is the consumer. The Stern model acknowledges that the source, message and receiver may have multiple dimensions, sometimes existing in the real world and sometimes in the virtual world within the text of the message.(p 9). The message itself may assume different literary forms, while receivers may be sponsorial or actual customers. (p 11). Advertising occurs amid the noise of competing advertisements, and feedback is especially important in assesing the efficacy of the message. Chapter Five: Q3. What is marketing and how is it related to advertising? Ans: Marketing has been defined as the business process that is used by the management of a firm to plan and carry out the concept, price, promotion and distribution of its products and/or services.(p 139). Advertising is one of the tools that are used in marketing. It is the mode through which information about the product, price, selection and availability is communicated to potential consumers. It identifies the product utility, which is the relationship between the product qualities and the customer’s needs (p 139) and communicates this to consumers, thereby making them aware of the features and benefits of the product, its price and the locations where it is available (p 140). Advertising helps to facilitate a satisfactory two way exchange between the seller and buyer, where the buyer’s expectations about the perceived value of the product are satisfied by the seller through this method. Q4. Identify some of the different markets that companies advertise to. Ans: There are four broad categories of markets where companies focus their advertising efforts (p 143). The first is the consumer market, where companies target individuals buying goods and services for their own use. This is the largest market of all and comprises people of both genders, all ages and all different class groups. Another market is the business market, where the companies target businesses that may purchase products for their own use or for purposes of resale. This is also a very large market, because almost half of all marketing carried out in the United States is from business to business. The business market comprises two major sections – reseller markets and industrial markets. Reseller markets comprise intermediary buyers such as distributors and dealers, without which the manufacturer companies cannot reach the consumers. Industrial markets comprise those businesses that buy products in order to produce other goods and services. The third category is the Government market, where products and services are purchased to carry out activities at various levels of government. The final category is the transnational or global market, which includes all markets in foreign countries, whether they are consumers, businesses or foreign governments. Chapter Six: Q5. How has consumer market segmentation been applied in Hardee’s marketing strategy? Ans: Market segmentation refers to the process of identifying groups of people within the broader markets who have shared needs and characteristics. (p 169), so that advertisers can target their promotional efforts towards a particular segment of the population. In the case of Hardee, the market segment targeted by the Company was 18 to 34 year old males. During the initial stages, the Company first targeted a broad segment – its former clientele, where users were not happy with the product. The focus of the initial marketing strategy was to address the dissatisfaction of the users with Hardee’s earlier product. The next stage of the advertising targeted the narrower segment of males ranging in age from 18 to 34. This shows that demographic segmentation took place in Hardee’s case, the target group was selected on the basis of age and gender. Behavioristic segmentation may also be noted because usage rate variables were also taken into consideration. Hardee identified a target group among this male demographic group that was referred to as HFFU (Heavy Fast food User), men who were not interested in low fat burger alternatives, ate three to four times a week and liked their burgers to be messy and drippy (p.171). Moreover, the benefits sought after by these customers was also identified, i.e, the good taste and sex appeal associated with eating Hardee’s Thickburger. The discovery of these common characteristics among users helped Hardee to frame its advertisements accordingly. Another aspect that was also a part of the Hardee marketing campaign was psychographic segmentation, where the classification of consumers is on the basis of how they feel, their values, beliefs and attitudes about things. For example, in the case of Hardee, the advertisements portrayed brawny men such as construction workers or baseball players. The objective was to convey the message that real men eat real burgers, the message reinforced by advertisements stating that the Thickburgers “don’t come with toys because they’re not for little boys”. (p.167). These advertisements therefore capitalized on male identity, implying that a person is what he eats, and also contained visual images of beautiful women targeted specifically to appeal to the male segment being targeted through the campaigns. Q6. What are four P’s of marketing? Ans: The four Ps of marketing are Price, Product, Place and Promotion, which form the basic elements of a marketing mix. The first aspect that marketers should be aware of is the product itself and its lifecycle. Depending upon the stage the product is at, the marketing strategy has to be designed accordingly, for example when a product is being introduced, the marketing campaign must be geared towards providing information about the product. The product must be positioned appropriately in the market and differentiated from its competitors through branding. A thorough knowledge of the product will aid advertisers in promoting its special benefits. Price also plays an important role in marketing, because the forces of demand and supply impact upon pricing and consumer purchasing will be enhanced if the product is competitively priced. Production and distribution costs will have to be included in the price and other factors such as government regulations and economic conditions will also have to be taken into account in pricing the products. Place refers to the manner in which the product is distributed to consumers. If a product is to sell successfully, it needs to be placed at the disposal of the customer at various locations, through an established network of distributors. Goods may also be sold through direct marketing or taking the product directly to the consumer. The promotion of the product is a very important aspect of marketing, since it is the kind of advertising for the product that can impact upon the level of sales. Products may also be promoted through public relations efforts and price related promotions such as offering discounts, exchanges, free gifts, etc. Marketing must take into account all of the above aspects in order to arrive at the best strategy to effectively provide the product to consumers and achieve a level of sales that will ensure good profitability. Chapter Twelve: Q7. What are the features that make an advertisement distinctive? Ans: There are two major aspects in an ad that contribute to its appeal to the audience and make it memorable – audience resonance and strategic relevance. If an advertisement is to be memorable, it must first of all resonate with the audience. It must spark off a reaction in the viewers by catching their imagination and inviting them to stop and think about the message.(p 372). An advertisement must seek to achieve the boom factor, which is the creation of the essential quality, which creates a lasting impression in the mind of the viewers. The second aspect to be taken into consideration in creating a successful advertisement is strategic relevance. While an advertisement may be able to provoke the viewer to think, it must also achieve the desired objective, i.e, to make the viewer think about the product being advertised and achieve the required degree of sales. Therefore, it must be relevant to the sponsor’s strategy before it can constitute great advertising; if the message is not oriented in line with the sponsor’s objectives it will be entertaining but will not achieve the desired objective of sales of the sponsor’s products. Q8. What are the constituent elements of the creative pyramid and how have they been demonstrated in Covenant House award winning advertisement? (p 397) Ans: There are five elements of the creative pyramid: attention, interest, credibility, desire and action. In the Covenant House advertisement, the viewer’s attention is immediately snagged by the dynamic visual of the bright box of a fun toy against a predominantly dark background, and this impact is heightened by the juxtaposition of the image on the box with that of a real child sheltering inside the box. The line stating “Not all kids want the same thing for Christmas” gets the interest of the viewer, especially because it stands out as a single sentence against the stark background of homelessness. The credibility of the message on homeless children is enhanced by the poignant nature of the image that is presented; that of a child sleeping inside a toy box on a dingy street. The desire to help these homeless children is sparked by the somber surroundings and the plight of the child that is clearly highlighted, especially when viewed against the bright and happy image of the child on the toy box. The call to action in the advertisement is in the telephone number provided, which stirs the viewer to make a call and offer help to lighten a homeless child’s burden at Christmas. Chapter Fifteen: Q9. How would you rate the efficacy of magazine use from the perspective of advertisers? Ans: The use of magazines as an advertising medium offers several advantages. Firstly, magazines offer flexibility, both in terms of readership as well as advertising. When advertisements are placed in magazines, they offer permanence, glossy, superior quality color, excellent reproduction quality and high levels of credibility. (p 486). Since magazines have definite circulated rates, this ensures that the advertisement will reach a certain number of people and if those delivered figures are not achieved, the publisher is obliged to provide a refund. Since specific magazines cater to certain groups of readers, an advertiser is able to target a specific segment of the market. An advertisement in a magazine also has a long shelf life and prestige attached to it, because it is accessible to a select group of target readers, which form a part of the magazine’s clientele. There are also some disadvantages associated with magazine advertising. Firstly, they require long lead times because magazines are not published daily but may be on a monthly or fortnightly basis and copy may be planned and allocated months in advance. Secondly, there is a high level of competition in magazine advertising and the cost of placing these advertisements may be very high; hence an advertisement that fails to generate an adequate level of increase in sales may not justify the expense made on it. But on an overall basis, magazine advertising may not be as timely or as cost effective as compared to advertising in other mediums, especially when compared to the net increases in sales that are achieved. Magazines may be more effective when select target audiences who are likely to be potential customers, have to be reached with the message about the product. Q10. Assess the pros and cons of newspaper advertising. Ans: One of the most significant advantages of advertising in newspapers is the large-scale access to customers. More than half of all adults read a newspaper daily while 62% read the Sunday editions.(p 495). Since newspapers are relatively inexpensive compared to magazines, it is a mass medium used by most people. Secondly, studies have shown that advertisements in newspapers have a high level of credibility and rank the highest in terms of believability.(p 495). Thirdly, newspapers offer timeliness; since they are published daily, advertisements appear quickly. They are also cheaper as compared to advertisements in other media and consumers can clip out advertisements; thus it offers a permanent record that customers can draw on again and again, which enhances the efficacy of the sales message. One of the disadvantages in using the newspaper medium is the difficulty in segmentation of the market and the lack of ability to target an advertisement at specific socio-economic groups. Another disadvantage is the low production quality of the advertisement, which is likely to be lost soon unless they are clipped out and saved by readers. Thirdly, they may be wastage because an advertiser may pay for advertisements in different papers but be reaching the same customers who may read both papers and thus suffer losses due to overlapping circulation. Lastly, an advertiser cannot control exactly when the advertisement will appear. Chapter Seventeen: Q11. How is the Internet distinct from traditional media? Ans: There are two major distinctions between the Internet and traditional media sources. The first distinction is in terms of time and space. Space is limited in the print media and time is limited on TV or the radio with the average commercial being restricted to 30 seconds, while also being expensive. The Internet on the other hand, is a medium where time is not an issue at all since the information on the products can stay available for as long as the seller wishes it to remain so. Similarly, space is also not an issue because marketing sites can store as much information as they wish to provide about the product (p 543). This is especially beneficial in the case of those consumers who require a lot of information about a product before purchasing it. The second difference between the Internet and other media is that the former is an interactive medium that also allows consumers to create content. In the case of the traditional media formats such as print and TV/radio, the seller or the creative personnel who work on behalf of the sponsors create the content and the audiences are the receivers and consumers of the content. But the Internet also allows users to interact with the medium and upload their own content, such as is the case with U-tube videos. Q12. How is the Internet useful to manufacturers in an integrated marketing communications program? Ans: The Internet is a useful tool for manufacturers in an integrated marketing communications program because it enables customers to present their feedback immediately in real time, and directly to the manufacturers of the product. It is a medium that allows sellers to advertise their products in a very inexpensive manner, because there are no constraints of time and space in presenting information on products. The Internet as a medium also allows manufacturers to accept orders directly from consumers without having to work through intermediaries such as retailers or distributors. Since the manufacturers are able to receive complaints directly from the customer, they are able to work on correcting the situation and improving the quality of their product or service. But the use of the Internet as an interactive medium also requires manufacturers and advertisers to work on a more hands-on basis. While earlier, advertisers could place an advertisement in the traditional print media or on TV/radio and walk away from it, an Internet web page maintained by a manufacturer/advertiser cannot be subject to the same treatment. Since the Internet is an interactive medium and needs to be updated regularly, manufacturers have to ensure the availability of regularly updated information and hire additional staff members to attend to complaints and suggestions from consumers. Read More