MSC at NU
Friday, May 07, 2004
  Notes on Tellis Reading:

Effective Advertising

Chapter 1:

Importance of Advertising in Modern Economics:

- Advertising is a major means of advertising among firms
- Advertising is the primary means by which firms inform consumers about new or improved products
- Advertising provides major support for the media in the US and other countries
- Advertising is a huge industry
- The public subsidizes advertising expenditures

Problems Evaluating Advertising Effectiveness

- Consumers may buy a product for a variety of reasons
- Advertising for a brand may occur in different media
- Advertising may have not only instantaneous effects but carryover effects (consumer will respond after a period of time has passed)
- The effectiveness of the ad may vary over the life of the campaign
- Successive ads may have overlapping effects and overlapping delays
- Advertising response varies by segments and individuals within a market
-

Chapter 2:

Myths About Advertising Effectiveness

- Advertising is a powerful force in contemporary markets
- Advertising creates consumer needs
- Advertising effects persists for decades
- Even if advertising does not work now, repetition will ensure ultimate success
- One to three exposures are enough for effective advertising
- Firms often use subliminal advertising
- Humor in advertising trivializes the message
- Sex sells
- The most effective ad appeal is clear information with strong arguments
- The best creatives arise from uniqueness (creative = composite of the content and artistic components of an ad)
- Advertising is very profitable

Truth About Advertising

- Weight alone is not enough
- Advertising is a subtle force
- The effects of advertising are fragile
- Firms often persist with ineffective ads
- Advertising may be unprofitable

Dynamic Effects of Advertising

- Advertising’s effects are not instantaneous
- Advertising carryover is generally short
- Advertising is effective either early or never


Effects of Ad Campaigns

- Success can be dramatic, although rare
- Wearin is very rapid, while wearout occurs early
- Hysterisis is very rare (Hysterisis = the effects of a campaign on sales hold after the campaign is suspended)

Effects of Advertising Creative

- Novelty is the key to effective advertising
- Emotion may be the most effective ad appeal
- Humor works
- Firms rarely if ever use subliminal advertising
- Templates can foster creativity

Contingent Effects of Advertising

- Advertising is more effective for new than mature products
- Advertising affects loyals and nonusers differently (Loyals respond to ads for their brand more quickly and immediately tat low levels of advertising than do nonusers)

Chapter 3:

Why Firms Advertise: Theory of Advertising Demand

- Supply Exceeds Demand
- Knowledge about the Supplier or Product is Low
- Confidence in the Supplier or Product is Low
- Demand Exceeds Supply


Why Big Successes are Rare: Theory of Advertising Effectiveness

- Inattention to Advertising – Most consumers are in a state of avoidance, not search, active processing, or passive processing
Resistance to Persuasion:

It is difficult to change consumer perceptions because of selectivity of consumer attention, perception, interpretation, and retention

Miscomprehension of Ad Messages – Many consumers don’t understand the message of ads

Imitation of Effective Techniques - Effective ads are imitated quickly

Why Firms Persist with Ineffective Ads: Theory of Advertising Supply

- Lack of Field Tests and Tracking
- Conflict of Interests with the Ad Agency – creative talent wants to be original; ad firms don’t evaluate the effectiveness of ads, only create them
- Competitive Pressure – Companies believe that they won’t lose ground to competitors if an ad exists
- Incentive System – Brand Managers are often evaluated not on profit generation but sales generation
- Budgeting System – competition for advertising dollars within firms
- Price Support – ads support wholesale prices, an ad’s existence ensures that retailers will stock the brand
- Trade Support – ads are created to impress Sales Staff and Retailers



Chapter 8:

Elaborative Likelihood Model

Its basic premise is that the route by which an ad persuades consumers depends on how much they think about the ad’s message.

Motivated to Process Information? Y – Able to Process? Y – Central Routes (Strong Arguments) N – Peripheral Routes (Endorsers, Cues)

Motivated to Process? N – Passive Processing (Mere exposure, Selling)


Priming – A phenomenon wherein exposure to a brand name during some entertaining or distracting event leads to better recall and preference for the name, even without recall of the exposure.

Soft-Sell – Subtle message that allows for different interpretations

Repetition in Persuasion – Findings:

- Repetition leads to higher persuasion, measured by recall, attitude, preference, behavioral intention, and behavior
- The positive effect of repetition on each of these variables declines in the order listed, strong to weak
- Response to repetition is nonlinear, first increasing, then leveling off.

Factors Influencing Repetition:

Brand Familiarity – may be most important factor – familiar brands need less repetition than new

Message Novelty – pulsing (fixed interval ads) or fighting (irregular intervals) is likely to be more effective than massing

Message Complexity – Repetition enhances the effectiveness of complex ads.

Theories Explaining Repetition:

Habituation-Tedium Theory – a continuum

Theory of Conditioning – Pavlov’s Dogs

Chapter 9: Argument In Advertising

Argument Strategy

Comparative Argument – Message compares the target brand to another, infrequent before 1970, now common – generally but not always more effective than non comparative in generating attention, message awareness, brand awareness, message processing, and purchasing intentions.

Two-Sided Appeals – presents pros and cons of target and other brand.
- More interesting and credible than one-sided
- Credibility gains are optimum for a moderate amount of negative information
- Negative should be presented early but not at beginning
- Work best when audience’s position is negative to target brand

Refutational Argument – First presents the counterargument against the advertised brand, then destroys the argument

Rhetorical Question – Asks a question rather than counterattack

Innoculative Argument – Protects a brands position with consumers by alerting them about then helping them defend against an impending attack.

Framing – Presents rival in a context that makes it less attractive

Supportive Argument – Presents positive attributes of a brand without any comparison to rivals.

Chapter 10: Emotion in Advertising

Modes of Persuasion

Implicit – Ad arouses emotion while embedding a message in characters involved in a plot

Explicit – Ad arouses emotion with stimuli to drive home a point of view

Associative – Ad arouses emotion with stimuli that are only tangentionlly related to the product

Advantages of Emotion

- Does not raise viewer’s natural defenses
- Requires less effort from viewers
- Stimuli are more interesting
- Pictures and Music are easier to recall than factual evidence
- May lead to behavior change more immediately than logic would

Disadvantages of Emotion

- Arousal of emotions requires more time than argument
- Central message may be missed
- Viewers may screen out message associated with negative emotion
- Viewers may feel exploited

When Do Emotions Work?

The Elaboration Likelihood Model suggests that emotional appeals should be used when an audience lacks the motivation or ability to process messages.

Feeling vs. Thinking Products:

Feeling – evaluated by personal preference, e.g. wine or paintings

Thinking – purchased on reason

Emotional appeals are preferable for Feeling products, but can be effective for Thinking products like cameras, insurance, airlines, computer products.

Mood – transitory, generalized emotional state not directed at any particular object or activity, can be individual or context based. Individual moods are unique to the individual based on experiences or personality, context based moods can be common to all individuals facing the environment

Methods of Arousing Emotions:

- Drama, Story, and Demonstration
- Humor
- Music

Roles of Specific Emotions

Irritation –
Warmth –
Fear –
Enobling Emotions – inspire audiences to difficult action with feelings like pride, courage, dedication.
 
URLs to notes pages: http://irein.blogspot.com http://ksimmons.blogspot.com http://numsc.blogspot.com

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