Effects of Advertising

Positive effects of advertising

• Public Service Advertisements: These
advertisements are often the first things
considered when people discuss the positives
of advertisements. These advertisements
market a social concept of importance to the
general public. Many public service
announcements run messages about health,
safety and national security.
• Social Benefits: Freedom of choice and
advertising-supported entertainment, which is
often a promoter of social change, are two
important components of society that are
both promoted through advertising.
• Economic Benefits: Advertising has a number of positive
effects on economies. According to the International
Advertising Association, advertising can encourage
companies to compete and provide new products. This
encourages more consumers to buy because these products
meet the needs and wants of more consumers. Thus, the
economy is positively affected. In addition, advertising can
help create more jobs. As the demand for products and
services goes up because of advertising, more people are
needed to manufacture, supply, ship and test those
products and services. Thus, more jobs are created.
• Choice: In addition to encouraging consumers to choose
the products that are best for them, advertising, at least
in democratic nations, allows individuals to learn about
the wide variety of lifestyle and political choices
available to them and choose the ones that they find
best. For example, in the United States, candidates for
an elected position often run advertisements that
discuss their strengths and the opponent's weaknesses.
These advertisements encourage Americans to compare
and contrast the candidates and choose the one with
whom they most agree.
 Negative impacts of advertising
• Misrepresentation: Advertising aims to present a product in the
best light possible. There is some leeway in the creative process.
• Unrealistic Expectations: Direct-to-consumer advertising for
prescription drugs has resulted in unrealistic expectations about the
effectiveness of drugs and their side-effects, according to the Food
and Drug Administration's study "Patient and Physician Attitudes
and Behaviors Associated With DTC Promotion of Prescription
Drug." Voice-overs give the downside to the drug, but the visual
images show healthy, happy people. It's not unusual to hear that
even death may be a side-effect of a prescription drug. Beauty and
health products may also not live up to their promises, resulting in
wasted consumer dollars. Disclaimers are often hidden in very small
print on product packaging and in out-of-the way spots in ads.
• False Images: Advertising is ingrained in every culture, from children's programs to
talk shows and prime time TV. Advertising even invades movies through product
placement. It's not an accident when a movie hero holds up a can of Coke instead
of Pepsi. Advertising influences how people feel about themselves -- often in a
negative way. Based on the images they see in advertising, women often feel they
should be thin and beautiful and hold down full-time jobs while also being full-
time mothers. Advertising communicates that men should be handsome, tall,
athletic, caring husbands, thoughtful fathers and virile at all times. These images
are often unrealistic and unattainable.
• Children: In his study "Review of Research on the Effects of Food Promotion to
Children," Professor Gerard Hastings found there is a link between food advertising
and children's preferences regarding what they will consume. Ads for many sugary
cereals encourage children to ask their parents for those particular products --
regardless of whether the products are good for the children. It's not coincidental
that the most heavily advertised toys during the holiday season end up being the
top sellers. Children are susceptible to advertising.
Advertising Planning and Decision Making

• The major activities of advertising

management are planning and decision
making
• In most instances, the advertising or brand
manager will be involved in the development,
implementation and overall management of
an advertising plan
• The development of an advertising plan essentially
requires the generation and specification of
alternatives
• The alternatives can be various levels of
expenditure, different kinds of objectives or
strategy possibilities, and numerous options
associated with copy creation and media choices
• The essence of planning is thus to find out what the
feasible alternatives are and reduce them to set on
which decisions can be made
• Decision making involves choosing from
among the alternatives.
• A complete advertising plan reflects the
results of the planning and decision making
process and decisions that have been made in
particular product market situation
 Situation Analysis
• The planning and decision making process
begins with a through analysis of the situation
the advertiser faces and the development of
marketing strategy
• It includes comprehensive examination of
internal and external factors operating in a
particular situation
• Consumer and market analysis: the size of the
market, its growth rate, seasonality, geographical
distribution, the possible existence of different
segments and trends in all these aggregate market
characteristics.
• Competitive analysis: understand the relative
perceptual position of competitive brands; current
share of the brand; share of competitors; SWOT of
competitors; reasons for different trends in market;
history of competitor moves.
 The marketing plan
• Advertising planning and decision making tak
place in the context of an overall marketing plan
• The marketing plan includes planning,
implementation and control functions for the
total corporation or a particular decision
making unit or product line
• It includes a statement of marketing objectives
and will spell out particular strategies and
tactics to reach those objectives
• The marketing objectives should identify the
segments to be served by the organisation and how
it is going to serve them
• The needs and wants of consumer on which the firm
will concentrate
• A marketing plan formulates the strategies for 4Ps
• The marketing plan should be based on the specific
problems or opportunities uncovered for the brand
by the situation analysis and providing solutions to
these problems
The communication and persuasion process

• The most important factor to be considered in

planning advertising is understanding of the
communication and persuasion process
• Advertising communication system: it involves
a perception process and four of the elements
:the source, a message, a communication
channel and a receiver.
Sou Rec
Perception
process

rce Me eive
Dest
r
(adv ssa (Au Me inati
ertis ge ssag on
dien
er)
Channel
(media) ce) e Channel
(word of
mouth)
• Source: the source of a message in the
advertising communication system is the point of
which the message originates. There are many
types of “sources” in the context of advertising,
such as the company offering the product, the
particular brand or the spokesperson used.
• Message: it refers to content and execution of
the advertisement. It is totality of what is
perceived by the receiver of the message
• Channel: the message is transmitted through
some channel from source to the receiver
(radio, TV,etc)
• Receiver: target audience. Advertising
message can create variety of effects on
receiver like: create awareness; communicate
information about attribute and benefits;
develop or change an image or personality;
associate a brand with feelings and emotions
• Destination: the communication model does
not stop at the receiver but allows for the
possibility that initial receiver might engage in
word of mouth communication to the ultimate
destination of the message. The receiver then
becomes an interim source and the
destination becomes another receiver
 Advertising exposure model
Awareness/familiarit y with
brand
Information regarding
brand

Creation of brand image

Association of feelings with Brand Purchase

Ad exposure brand attitude behaviour

Linkage of brands with

peers/experts and group
norms

Reminder or inducement
about brand trial
 The advertising Plan
• The advertising plan should only be developed
once the overall marketing plan has been
created and the role of advertising within it
has been assessed
• Advertising planning and decision making
focus on three critical tasks: objectives and
target selection; message strategy and
tactics; and media strategy
 Objectives and target selection
• The pivotal aspect of any management is the
development of operational objectives. An
operational objective is one which provides
useful criterion for decision making, generates
standards to measure performance, and
serves as a meaningful communication device.
• An important part of the objective is the
development of a precise, disciplined
description of the target audience.
 Message strategy and tactics
• First the advertising manager must decide what the
advertising is meant to communicate-by way of
benefits, feelings, brand personality or action content,
which is called message strategy
• Once the content of the campaign has been made,
decisions must be made on the best and most effective
way to communicate that content. These executional
decisions such as the choice of spokesperson, the use
of humour or fear or other tones and choice of
spokesperson is called message tactics
 Media strategy and Tactics
• Media strategy concerns decisions on how
much to spend on advertising campaigns
• Media tactics comprise the decisions about
which specific media or media vecicles
Implementation