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Statement of Problem
Even though, advertising is known as one of most effective promotional tools, it has some
complexities too. Many times, there is a constant difficulty to understand the customers, their
needs and demands especially during these times of the pandemic. The statement of problem
tries to address the issues faced by the advertising section during the pandemic and has it
affected their products sales in any way.
Research Objectives
This paper will be predominately doctrinal in nature. The author will refer to books, articles
and research papers. Due to the constraints imposed by the current COVID-19 Pandemic
situation, the sources are all online-based. For practical and application-based understanding,
the author conducted an online survey for research purposes.
Hypothesis
The hypothesis for this paper is to prove whether advertising is an effective promotional tool
for a new product.
Review of Literature
Limitations
Due to the COVID-19 pandemic, carrying out questionnaires were an issue and that had to be
done online, thus almost all of the information collected was objective rather than
opinionated. The pandemic made the research as a doctrinal one and the author of this paper
had to take information from secondary sources limited to the books, research papers,
journals and articles available on online platforms.
Types of Advertising
Promotional- Advertising is, at its most basic level, a kind of communication aimed at
publicizing a product or service and encouraging sales. Good advertising is
promotional by definition8. While some may confuse advertising with "propaganda,"
the two are distinct concepts that must be differentiated. Advertising focuses on
influencing purchasing habits, whereas propaganda aims to affect a population's
ideology and ways of thinking9. A good advertisement is promotional in nature;
however, it might be overt or subtle in its promotion.
Persuasiveness- Effective commercials must persuade consumers that a given product
or service is better than the competitions in order to achieve its main goal (increasing
sales of that product or service). Persuasive advertising guarantees that a product will
meet a customer's needs or will improve their life in some way. Advertising uses a
range of techniques to persuade customers to buy a product, such as appealing to their
emotions, gaining their trust through authority arguments, or using logic to support
the purchase of a product.
Overall Marketing Strategy- The most obvious aspect of advertising is undoubtedly
creative elements (such as TV spots or social media ads), but there is also a lot of
strategy behind a campaign. Advertising is always in response to a specific marketing
purpose that is consistent with the brand's or company's overall interests. Like a result,
8
Narasimhan, Chakravarthi. “Competitive Promotional Strategies.” The Journal of Business, vol. 61, no. 4,
1988, pp. 427–449.
9
Kotler, Philip, and Gerald Zaltman. “Social Marketing: An Approach to Planned Social Change.” Journal of
Marketing, vol. 35, no. 3, 1971, pp. 3–12.
as with Nike's Just Do It campaign, a good advertising strategy should be structured
inside the overall marketing plan.
Its Targeted- Advertising is used to rely on mass media like radio and television to
reach as many people as possible. In today's world, effective advertising necessitates
highly targeted and segmented audiences. Every business has a buyer persona, or
ideal client profile, that it aims to recruit. The more targeted a marketeer’s advertising
is to a specific demographic, the more effective it will be. The content of their
advertising communications should be tailored to their target audience's emotions and
wants. Ads that do not attempt to appeal to a specific type of individual do not
function.
It’s an Investment- Time, resources, and, of course, money are all required for
advertising initiatives. In most cases, the channel that distributes the commercials
charge a fee in exchange for their distribution. A successful advertising campaign will
improve the company's earnings, which should outweigh the expense of the
campaign10. Advertisers calculate the return on investment (ROI) of a campaign to
better understand the relationship between expenses (return of investment). A positive
return on investment (ROI) implies that the advertising campaign was a success.
Originality- It's no secret that the advertising industry is quite saturated. Consumers
are exposed to hundreds of advertisements every day in various formats, and the
majority of them are ignored11. As a result, effective advertising stands out from the
crowd by utilizing unconventional formats and resources. Users' attention can be
captured by emphasizing the novelty of a product or service, offering a great value, or
doing something utterly unexpected, such as Coca- Cola’s "Share a Coke" campaign.
Creativity- Story-telling videos, shocking pictures, memorable speeches, catchy
jingles, and so on also add to an effective advertisement. Ads that stand out and make
a brand instantly distinctive or remembered employ ingenuity. While remaining true
to the brand's beliefs, the finest creative advertising manages to startle users, move
them to action, and become instantly remembered.
Consistency- Ads that are truly great stick to the brand's core values and ideals linked
with it. In most cases, a single ad won't be enough to achieve this goal, especially in
today's saturated market. As a result, consistency is an important part of advertising.
10
Kaldor, Nicholas. “The Economic Aspects of Advertising.” The Review of Economic Studies, vol. 18, no. 1,
1950, pp. 1–27
11
Kotler, Philip, and Gerald Zaltman. “Social Marketing: An Approach to Planned Social Change.” Journal of
Marketing, vol. 35, no. 3, 1971, pp. 3–12.
In an ideal world, each customer in the target demographic should be exposed to
enough brand and message impact to remember it, but not so much that it becomes
annoying or saturated. It's also worth noting that affects can be replicated using the
same media (for example, watching the same TV commercial several times) or
broadcasting the same message over multiple channels (cross-channel or multi-
channel advertising).
Personalization- Personalization has been more popular in recent years, and it's easier
than ever before. Ads that are truly effective are becoming increasingly tailored to the
traits and demands of a specific user. Personalized emails are one kind of advertising,
and these emails, which are activated when a user does a specific action, are an
excellent illustration of how this may be used in marketing. Remarketing is another
excellent application of targeted ads, particularly for ecommerce and retail businesses.
Its Ethical- Advertising should be regulated due to its persuasive power in order to
prevent false information and immoral tactics. While there are a number of
government entities that oversee advertising ethics, it is also critical that advertisers
and agencies take responsibility. Finally, honest and clean advertising reflects the
advertiser's beliefs, helps to improve a brand's image, and is profitable in the long run.
12
Narasimhan, Chakravarthi. “Competitive Promotional Strategies.” The Journal of Business, vol. 61, no. 4,
1988, pp. 427–449.
c) Running a social media contest- Social media contests are a fun and easy way to
communicate with customers while also attracting new fans/followers and
prospects for the company. Facebook contests generate 34% new consumers on
average every campaign, which is a terrific approach to compensate for the
platform's poor organic reach. One should make sure that the content is promoted
throughout all of one’s marketing channels, not just the social network where the
main campaign is being done. This applies to the other social media accounts, the
company’s website, email newsletters, and even sponsored advertisements.
Increased involvement with one’s social media account will likely drive more
traffic to the website, put the business in front of new clients, and provide a
pleasant way to connect with their audience, in addition to generating more
excitement and purchasers for the new offerings.
d) Email Marketing- One, while emailing, should focus on the new product's
benefit/ultimate value rather than its characteristics and in the subject line, one
should emphasize on the offer. Lastly, using preheader text to boost open rates
even more is a very effective method to grab potential customers attention.
e) Making a blog post- One may not have a landing page for clients or subscribers to
visit while promoting one’s new product or service. After all, the new service
could simply be an enhancement to an existing platform or account. In this
situation, the company’s objective may not be to acquire new customers, but
rather to engage existing customers or re-engage dormant ones13. The company
may send the link to the blog post via emails or social media channels. Having a
blog post written on the newly launched item is a terrific opportunity to go into
depth on all of the details, features, and benefits the marketeer would otherwise
provide on a landing page.
f) Hosting an opening event- Events not only get customers enthusiastic about the
company’s new product or service, but they (events) also allow new prospects to
interact directly with the company, which is a wonderful method to convert them
into customers. For salons, fitness centers, yoga studios, spas, and retail stores,
events don't have to be elaborate or well-organized; something as basic as an open
house or an information session would suffice. If the company shares a space with
other local shops, one can collaborate to hold a sidewalk sale or an outside open
13
Narasimhan, Chakravarthi. “Competitive Promotional Strategies.” The Journal of Business, vol. 61, no. 4,
1988, pp. 427–449.
house to attract even more customers.14 Virtual events continue to be an excellent
promotion tool during the pandemic. One may, for example, host a Facebook Live
session to demonstrate the product and emphasize its features. Holding a live
event or recorded Q&A session about the product and focusing on the event with
the help of an influencer with knowledge of the new product or service, with the
promise of revealing the new offering at the conclusion.
g) Allowing trade-ins- Consumers are more inclined to buy a new product with a
token or credit15 they already have; therefore, trade-in incentives are beneficial (in
this case, the product they own). One can also resell or repurpose the old trade-in
items for future giveaways (assuming they are in good enough shape).
h) Giving out customer reviews- Allowing the consumers to advertise a new product
or service is one of the most effective methods to promote it. One can just ask
them to write an online review of the new service or contribute material for a
testimonial if the company uses some of the previously suggested strategies (such
offering an upgrade or a free trial). When it comes to distributing the goods to a
larger audience, reviews and testimonials will be invaluable 16. After all, online
reviews are trusted by 84 percent of consumers as much as personal
recommendations.
14
Street, Edmund, and Lionel Jackson. “ADVERTISING.” Journal of the Royal Society of Arts, vol. 61, no. 3140,
1913, pp. 247–257.
15
Kaldor, Nicholas. “The Economic Aspects of Advertising.” The Review of Economic Studies, vol. 18, no. 1,
1950, pp. 1–27
16
Rao, G V Narasimha. “COMPARATIVE ADVERTISING –A BOON OR A BANE TO CONSUMER INTEREST?” Journal
of the Indian Law Institute, vol. 54, no. 2, 2012, pp. 261–271.
The age groups that took this survey questionnaire varied from age 10 to above 40 years of
age. The greatest number of responses were given by the people in age 10 to 20, that
calculated up to 58.8%, the second highest number of respondents were in group 40 and
above which amounted to 35% of 80 people. People in the age group of 20-30 and 30-40
were the least in number, that is, 3.7% and 2.5% respectively.
Question 3 which asked the aspects that attracted a person to a certain product. Some options
were provided like brand names, packaging, advertising and additionally, people presented
with a variety of answers. 35% people of 80 are attracted to the brand name of the product;
packaging attracts around 12.5% people; whereas advertising attracts 27.5% out of 80 people
and the other 25% have presented with their own set of answers. One of the most common
responses was that the quality of a product attracted a lot of people to that certain product.
Other common answers consisted of recommendations from known and close people,
effectiveness of the product, needfulness of the product, features of the concerned product
along with the reviews, value of money and lastly the company’s reputation in the market.
According to the collected data, the most appealing and influencing type of advertisements
are video advertisements or television commercials (57.5%). The next most appealing type of
advertisements were display advertisements (31.3%), followed by mobile advertising (8.8%),
both, native and audio advertisements were marked as the least appealing (1.2%).
People expect to know about the purpose of the product (50%) from an advertisement more
than attractiveness of an advertisement (3.70%). Keeping an advertisement short, simple and
interesting is also highly expectant by the consumers (46.3).
Clearly, an advertisement does affect the purchasing ability of consumers and if a person
resonates with a certain product’s advertisement, they are most likely to buy it. An
advertisement does influence a person’s buying decision (76.3%). But obviously, this cant be
true in all cases, a certain amount of people does believe that advertisements don’t really
influence their buying behavior (23.8%).
When it comes to a new product and its advertising, people can be found to be a little
skeptical and concerned but still more than half of the respondents do believe that they would
buy a new product based on its advertising (68.8%), whereas, around 31.3% of the
respondents believe the opposite.
The respondents were requested to provide a reason about their choice in the above question.
For the people who believed that an advertisement would lead them to buy a new product,
gave reasons like advertising determined their opinions and thoughts, thus, leading them to
get influenced by a particular product’s advertisement. Some people also mentioned how the
only reason they are aware about a particular product is because of its advertisement; they
also explained that an advertisement makes a person interested in a product and if the ad is
inclusive of the purpose of the product and appeals to the concerned consumer, they will
definitely buy the new product. People believe that if the advertisements are authentic, factual
and true to their product’s use and effectiveness then it becomes ideal for a consumer to trust
the advertisement and buy that new product along with the assumption that an advertisement
is basically a way of showing the marketeer’s interest and sincerity towards their customer’s
satisfaction. One interesting aspect that one of the respondents brought was that “An
advertising is equivalent to the first impression while meeting new people. So, a great
advertisement can make or break my impression of that brand.” Thus, many people believe
that an advertisement plays a pivotal role in the conversion of a prospect to a buyer and so
should be done in the most effective manner for maximizing profits.
Then, there were the other sets of responses which expressed why they wouldn’t buy a new
product based on its advertisement. Many people stated that advertisements are used as a way
to twist the truth or “glamorize” a product to catch a human’s eye, so they wouldn’t
necessarily trust only an advertisement of a new product before buying it. People mentioned
how they will seek for assistance and ask their close ones like friends, relatives about the
product if they have used it or not and then go ahead and use it if their close ones approve of
it. Respondents also explained how an advertisement solely cannot be enough to fully
understand the product’s purpose, its quality and if it’s a value for money or not. Thus, many
people resort to ways like researching on the new product or service before buying it, like
reading up its contents, reviews, its ratings and so on, just to be sure of the product they
might end up buying.
Most of the respondents do think that advertising is an effective promotional tool and
influences consumer behavior and their purchasing attitude (85%). However, there are 11%
of people out of the total 80 respondents are unsure about the effectiveness of advertising as a
promotional tool and 1.2% people believe that advertising isn’t an effective promotional tool.
Most of the respondents have the perception that advertising does affect the sales of a new
product (87.5%), about 10% of the people are unclear about the effects of advertising on its
sales and 2.8% believe that both the variables, that is, advertising and sales aren’t dependent
on each other.
Last question asked for recommendations to enhance a new product’s advertising to increase
consumer coverage. The respondents suggested techniques like the marketeer should be
involved in the community (especially their target audience) to understand their wants and
needs; for enhancing the customer coverage, marketeers should opt for social media
advertising or marketing as it reaches a great number of people; they could also hire famous,
influential people in their advertisements so people actually are interested in engaging with
the new product; regionalization or decentralization of an advertisement will also help people
to identify and resonate with the new product; utilizing online algorithms to target potential
consumers rather than people who would get annoyed by ads and become averse to buying
the product; being innovative, unique and interactive with the ads to engage the audience;
using strategies such as distributing free samples, having a distinct distribution channel and
product endorsement by celebrities can help increase the customer base; investing more in
covert advertising i.e. sponsoring normal people who then, recommend the product to the
people close to them, this is often referred to as a hidden strategy as opposed to word of
mouth publicity and sooner or later people might start realizing that the product is actually
good since they got to know about it from a trusted word of mouth. Thus, there are some of
the strategies and techniques that consumers themselves believe to be effective for increasing
the customer base of a new product.
CONCLUSION
Advertising acts like a marketing strategy used to communicate the motives of a producer to
the consumers through various means like newspapers, magazines, social media, radios and
so on. It helps a marketeer to gain profits if the product and its purpose resonates with the
consumers. It brings techniques and the practices that marketeers use to persuade the public
in their favor. There are many advertisements which promote social messages like driving
safely, stopping at the red light, wearing a helmet and in recent times, to make sure people
wear masks and maintain social distancing when in a public space. With the help of the
survey taken by the questionnaire method, the author of this paper wished to know whether
advertising is an effective promotional tool for marketing a new product; according to the
statistics and its analysis, it can be said that advertising most definitely is an effective
promotional tool for marketing a new product. Thus, the author’s hypothesis has been proven.
Bibliography