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Psychology of Marketing & Advertising (Subject) / Chapter 1: Introduction to basic concepts (Lesson)
- Defintion Advertising Any form of paid communication by an identified sponsor aimed to inform and/or persuade target audiences about an organization, product, service or idea
- Why advertise? Raise awareness - you can't buy what you don't know exists Fuel desire - channel needs into wants for specific products Highlight differentiation - UPS Unique Selling Proposition: What one brand offers that comeptitors dont
- Functions of advertising 1. Societal level Facilitate competition Fund mass media Create jobs 2. Individual level Inform consumers: Create non-evaluative response (beliefs, knowledge) Persuade consumers: Generate or change evaluative response (a more favorable view)
- Different approaches 1. Informatial/ Argument-based appeals hard-sell reason-why approach 2. Emotional/ Affect-bades appeals soft-sell more subtle approach
- Evolution of modern ads Print l newspapers, magazines - still popular for consumer segments Television l Highest volume of advertising Internet l Will prbably compliment existind media rather than replace it
- Stages in Product Life Cycle Different information appeals on each stage typical marketing objectives 1. Introduction brand awareness brand knowledge 2. Growth brand attitude brand preference 3. Maturity top-of-mind awareness loyality 4. Decline new users new target group
- Information appeals 1. Stage in Product Life Cycle 2. What? availability attributes performance price quality special offers 3. Used more developed, industrialized countries e.g. US, Canada durable goods e.g. refrigerators, cars, furniture 4. Limitations McDonald's Case memory and associations by advertising campaign informing consumers might sometimes be ineffective or even backfire 5. Functions Educate consumers - complex new products or services Deal with problems - corrections, recalls
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