All About Advertising!!

Communication Persuasion Acceptance

 Elements in the Communication Model

• Independent/ • Dependent elements

Controllable elements

 Source  Attention
 Message  Comprehension
 Channel  Retention
 Receiver  Behaviour
 The SOURCE
 The entity involved in communicating a
marketing message.

 A multifaceted concept
 Types of Sources
• Spokesperson who delivers a
message or demonstrates
Direct

• Does not deliver a message

• Draws attention to and enhances
Indirect appearance of the communication

• The source is the organization

Neither direct
nor indirect
How to Maximize Message Influence
through the Source
 Source Attribute: Credibility

Knowled
Trustwor
ge
thy
(skill,
(honest,
expertise
ethical,
,
believabl
experien
e)
ce)

Receiver adopts the opinion of the communicator since he or she believes that the
information provided is accurate
Source Attribute: Attractiveness
• Similar needs, goals, interests and
Simil lifestyle
arity/ • Situations to get receiver empathy
Famil
iarity
• Admirable spokespersons
• Stopping power of celebrities
• Problem of overshadowing and
Likea
bility overexposure

Receiver is motivated to seek some type of relationship with the source

Role of decorative models

 Source Attribute: Power

Limited application
in non-personal Applies more in
communications situations involving
influence

Receiver is induced to respond because the source can administer rewards and
punishments
 The Message
• Presentation
• Structure
• Content
• Persuasion
Structure

Message
effectiveness

Appeal
 Message Structure:
Communicate all the Message Points

Order of Drawing Message

presentation conclusions sidedness
• Primacy effect • Explicit • One-sided
• Recency effect • Implicit • Two-sided
• ‘Pyramid style’ • Freedom to • Intensification
customers • Downplaying
• Level of TA • Refutation
• Involvement
scale

Congruent and incongruent visuals; Impact of colours

 ADVERTISING APPEAL
• Indispensable part of every advertisement.

• Central idea of an ad that elicits the much desired

response.

• Two techniques that can be identified in advertising

response: ADVERTISING APPEAL & ADVERTISING
EXECUTIONS

• Every advertisement is an appeal to buy & use the product

or the service supported by reasons to buy & use.
 ADVERTISING APPEAL:
The Target is Consumer Needs
ESSENTIALS OF GOOD APPEAL

Thematic Communicative

Interesting Believable

Complete
 The Trilogy

• Consumer expectations or the

Buying buyer specifications
• What the customer wants
motives
• Just like ‘talking points’ for
Selling salespersons
• product characteristics, merits,
points satisfaction

• Appeals may be created as per the

Advertising above
• What service/ satisfaction can the
appeals offering provide
Types of Appeals for Advertisings

Product or
Consumer
Service
related
related

Non-Consumer
& Non-product
Related
I.PRODUCT OR SERVICE RELATED APPEALS
This type of appeal focuses on the product or service
features, where some of the aspects of product classification
are described. Such appeals do not state openly the consumer
benefits as they are implied.

 Product feature appeal (no comparison)

 Product competitive advantage appeal
 Product price appeal
 Product news appeal (new/ improved/ packaging/ powerful
etc.)
 Product popularity appeal
 Product generic appeal (primary demand, not selective
demand)
 II. CONSUMER RELATED APPEALS
• These ads emphasize on the direct consumer benefits.

• Emphasis is on what the product or service does for the

consumer, i.e. consumer satisfaction.

 Consumer service appeal (how to use for best results)

 Consumer savings appeal (without price focus)
 Consumer self-enhancement appeal
 Consumer fear appeal
 Consumer subsidized product trial appeal
 III. NON CONSUMER & NON PRODUCT
RELATED APPEALS
• They are founded on the fine works of the
company- may be profit making or non profit
making or on some sort of organized activity for
which public support is desired & accepted.

 Corporate citizenship appeals (more of PR,

announcing the company’s social, economic,
philanthropic contribution)
 Investor solicitation appeals (soliciting the
benefits of investment in the company)
The DAGMAR Approach
Define
Advertising
Goals for
Measuring
Advertising
Results
 Pyramid of Communications Effects

5% Use

e
tiv
na 20% Trial
Co
e

25% Preference
iv
ct
fe
Af

40% Liking
e

70% Knowledge
v
iti
gn
Co

90% Awareness
 Survey Activity
1. Name (optional)
2. Gender
3. Occupation
4. Which is your favourite colour?
5. Which is your favourite advertisement?
 Survey Activity
7. What is the first word that comes to your mind when
you think of these colours:
• Purple
• Blue
• Green
• Yellow
• Orange
• Red
• White
• Black
 Survey Activity
7. What is the first brand that comes to your mind when
you think of these colours:
• Purple
• Blue
• Green
• Yellow
• Orange
• Red
• White
• Black
 Requirements
Each student: 10 responses (separate sheet to
be submitted- soft copy, MS Excel)

Analysis: Group wise (in MS Excel)

Deadline: November 4, 2022, Friday, 1 pm

Functions of full-service Ad.
agencies

 account management
 creative
 media planning and placement
 research
 Account management

• liaison between agency and client

• responsible for understanding...
– the client’s business
– the client’s marketing needs
– strategy development
• representing client point of view within
the agency
 Creative Department
• Creates and produces messages for all media
types
• Needs a good creative strategy
• Feed forward from Account Management
 Media department

The media department has two main functions –

1. Planning- strategic marketing and media

issues
2. Buying- media negotiations and
implementation
 Research department
• interpret market environment
– gather and analyze research data.
– primary and secondary techniques
• determine consumer needs/perceptions
– understand problems
• advise how ads can meet
strategic goals
– help find solutions
 Auxiliary agency functions

• account planning
• strategy/creative review board
• office management
– human resources
– legal services
– accounting
– recruitment
 Three ways agencies make money

• commissions
– usually 15% of gross costs
• fees
– usually based on negotiated hourly
engagement
• incentives
– still relatively new and problematic
– usually based on performance goals
 Agency commissions

• media commission system

– 15% media commission
• adjustable commission rates
– negotiate to match client budget
– sliding scale
• markups-production & service
– add a percentage markup to costs
 Four types of fee systems

• fixed fee (retainer)

• cost-plus fee
• performance fee
• hybrid fee &
commission
 Incentives

• in theory, a good way to work

• get paid based on how well you do, not how
much you bill
• in practice, difficult to implement
• if client makes final decision (instead of
agency), how can agency be responsible for final
results?
• results based on many factors, such as
competitive efforts, not just advertising
 Food for Thought..

• Advertising = Market Power?

• Advertising = Market Information?
 Power or Information?
Market Power Market Information
– Advertising  Advertising
– Persuades consumer to purchase  Increased consumer knowledge
one brand over another more
 More substitute products consumers
often
– Excess brand profits can consider
 Lower barriers to entry by new brands
– Higher barriers to entry and
more market power  Reduced market power for any
– More advertising leads to greater individual brand
brand loyalty  Better pricing/distribution more
– Reduce quality/raise price product innovation
– Reduced consumer sovereignty  Optimal brand profits, consumer choice,
– Monopoly and price benefits
 An Ethical Debate on Advertising

• Ads destroy • Ads give consumers

freedom of choice more choices

 Ads destroy  Ads = freedom of

democracy/media speech

 Advertising warps  Ads simply reflect the

social values “real world”
Ethical Considerations
Advocacy Accuracy Acquisitiveness

Puffery Decency Children

Stereotyping Controversy