Advertising & Media

Unit 2
Situational Analysis
CB w.r.t Adv., buying behavior, buying
decision process, comn. In Adv., Etc….
Consumer Behavior w.r.t. Advertising

• The objective of advertisement is to change the attitude, beliefs, and decisions in

favor of a product or service advertised besides providing the information and
knowledge.

• The modern advertising was started with the development of industries and
competition among producers in the 15th century.

• In the 17Ih century with the development of news papers Landon Weekly news
papers started carrying advertisements and by 18th century such advertisements
started flourishing.
• But these advertisements were not based on consumer behavior research; there
primary aim was to provide information to consumers, the impact on consumer
attitude was not designed but was only accidental.

• The real advertisement in modern sense to influence consumer buying behavior

was started only in 20th century and it got real birth in USA to face competition, to
introduce new products and to gain larger market share.

• In order that advertisement is effective it must be based on knowledge of the

public and skilled use of media.

• Now, world over advertisement is being used to influence consumers.

• The percent of expenditure on ads has depended upon the nature of product and
volume of sales but still it is not clear to what extent these ads are influencing the
consumers because companies are not willing to reveal the impact of particular
campaigns but it seems that advertising firms or their agencies are not carrying
out adequate consumer research before and after the campaigns.

• Though adequate research is not done in India prior to ad or after the ad but
companies seem to be convinced that ads pay in larger sales.

For Example:

• Santro sales went through the roof (435%), when SRK stared in the Ad Campaign

• Lux soap sales goes up (approx. 235%) every time a new actress stars in it

• Cult-fit got extra-ordinary response (over 700%) when they tied up with Tiger
Shroff to do a new year offer in 2018.
• Ad’s Can not only influence buyers (revenue), but can also win hearts (loyalty,
respect etc…)

• This global marketing video comes to us from Alibaba, a multinational ecommerce

platform based in China. It made a heartfelt statement of loyalty to Team Kenya
during the 2018 Winter Olympics in PyeongChang, South Korea.

https://youtu.be/nKFu5PHn5Oo

• Women Empowerment Audi Ad in Saudi

https://youtu.be/shLKAN2a6fw

• In order that advertisements are affective the meaning of attitude and how it is
known should be properly understood by advertiser and ad agencies.
• Thus in other words attitude is what one feels or thinks for which research should
be carried out and tested on group of persons to find out the effectiveness of the
messages.

Hence various methods are applied to measure effectiveness of advertisement

are:

1. Qualitative Research

2. Case studies

3. Experiments

4. Surveys

5. Consumers Personal Data

6. Econometric Analysis (application of statistical methods to economic data)

7. Data Fusing (process of integrating multiple data sources to produce more

consistent, accurate, and useful information than that provided by any individual data
source)
The above methods are used to find out the action / response of consumers of
a particular campaign which is dependent upon following factors:

1. Knowledge about the product or service

2. Habit to use it or not to use it.

3. Efforts.

4. Communication.

5. Beliefs.

6. Usage.
level of consumer satisfaction and dis-satisfaction, long term behaviour,
repeated purchase depends upon:

(a) Expectations from a product;

(b) Importance and value of the product in consumption,

(c) Features of the product whether they are better or worse than expectations;

(d) Discrepancy between expectation and actual experience of the product or service;
and

(e) Performance of the product.

• If a product or service is not able to provide satisfaction, consumer feels frustrated
or shocked and ultimately he denounces the product and campaign fails if the
desired product is not supplied.

• The purpose of advertisement is to change the planned behaviour and the growth
in sales is dependent upon change in the belief about a product when the change
in belief is in favour of the product or service it is positive change and campaign is
effective.

• But when the change in belief is negative, sales will be reduced and the
advertisement is a failure. The impact of advertisement depends ultimately on
various factors besides the consumer satisfaction.
They may briefly be described as:

(1) Rate at which new messages enter the social system through advertisements of
various manufacturers;

(2) the persuasive influence and the message contained in new stories through print,
audio and TV media;

(3) the decay in influences overtime of existing advertisement and

(4) the percentage of targeted group affected the advertisement.

• In order, to be effective there had been companies who have mis-represented the
facts to attract customers to check this all over the world there is code of conduct and
legal provisions to check such a tendency (not discussing as not in syllabus).
Henry Assael (Four) Buying Behavior (Factors using buying behavior)

• Henry Assael distinguished four types of consumer buying behavior based on the
degree of buyer involvement and the degree of differences among brands.

• The purchase act by a consumer is governed by various factors such as

economic, social and psychological.

1. Complex buying behavior

• Consumers engage in complex buying behavior when they are highly involved in
a purchase and aware of significant differences among brands.

• This is usually the case when the product is expensive, bought infrequently, risky
and highly self-expressive.
• The marketer needs to differentiate the brand‘s features, use print media to
describe the brand‘s benefits and motivate store sales personnel and the buyer‘s
acquaintances to influence the final brand choice.

For eg. Automobile, two-wheeler, consumer durable.

2. Dissonance-reducing buying behavior

• Sometimes the consumer is highly involved in a purchase but sees little difference
in the brands.

• The high involvement is based on the fact that the purchase is expensive,
infrequent and risky.

For example, carpet buying.

• After the purchase, the consumer might experience dissonance that stems from
noticing certain disquieting features of the carpet or hearing favorable things
about other carpets.

• Thus marketing communication should aim at supplying beliefs and evaluations

that help the consumer feel good about his or her brand choice.

3. Habitual Buying Behavior

• Many products are bought under conditions of low consumer involvement and the
absence of significant brand differences.

• Consider salt. Consumers have little involvement in the product category .

• They go to the store and reach for the brand.

• If they keep reaching for the same brand, it is out of habit, not strong brand
loyalty.

• It happens with most low-cost, frequently purchased products.

• Marketers find it effective to use ad repetition, price and sales promotion to

stimulate product trial.

4. Variety-Seeking Buying Behavior

• Some buying situations are characterized by low consumer involvement but

significant brand differences.
• Here consumers often do a lot of brand switching.

• Think about cookies. The consumer may reach for another brand out of boredom
or a wish for a different taste.

• The marketer will try to encourage habitual buying behavior by dominating the
shelf space, avoiding out of stock conditions, sponsoring frequent reminder
advertising, offering lower prices, deals, coupons and free samples.

Buying Decision Process

• Remember that organizations and businesses also go through this process and
that teams of individuals contribute to the decision-making process.

• This is called a Decision-Making Unit (DMU).

Example: If you are buying a cell phone

You will 1st recognize that you need a new

Phone with more Internal / External storage
Space, more processing speed, latest
Version of the firmware. So you need a new
Phone.

You will search for the latest phone available

In the market.

You will compare, contrast, and set your

Required budget, specifications etc…

You will choose according to your

Requirements, budget, convenience, etc….

You will evaluate, give feedback, form

Opinions, and you may or may not
Recommend, to your friends / family based
Satisfaction, utility of product / service, value
For money etc…..
Understanding Communication process for Advertising

• Claude Shannon & Warren Weaver give a general model of communication,

popularly known as the Shannon-Weaver Model of Communication (1947).

• Communication process refers to the interchange of information between two or

more people.

• For the communication to triumph, both the parties must be able to exchange and
understand the information.

• If the flow of information is obstructed or hindered for some reason, the

communication process fails.
• Advertising communication can be defined as a perception process of the
source, a message, a communication channel, and a receiver.

• A receiver might sometimes become the source of information by communicating

the message to family and friends.

• This kind of communication is called word-of-mouth communication, which

involves social interactions between two or more people.

Advertising communication includes

• Any material published using any medium or activity undertaken by or on behalf of

the advertiser over which the advertiser has minimal control.

• Something that attracts the attention of the public in a way to promote directly or
indirectly a product or a service.
It does not include

• Labels or packaging on the products.

• Corporate reports including public affair messages in the press release and other
media statements and annual reports.

NEXT SLIDE SHOWS

“THE ADVERISING COMMUNICATION MODEL”

• The model explains the key factors in an effective advertising communication
process.

• The sender must be aware of his target audience and the kind of responses he
wants. They must be skilled enough to encode the messages and consider how
the audience usually decodes the message.

• The communication process in advertising involves sending or passing on a

message from the source or the sender to the receiver or the audience through a
channel.
1. Source

• Advertising communication process begins with the sender, who is also called the
communicator or the source. A source is an origin or the point at which the
message originates in an advertising communication system.

• The person who initiates the communication process is normally referred to as the
source. The source or the sender develops ideas, encodes and transfers them to
the receiver.

• The source must transmit the message through efficient media that reach the
target audience.

• The sender must encode the message in a form that can be understood and then
transmit it to the receiver.

• Senders must also develop channels for feedback.

2. Message

• Message refers to the content, idea, thought, feeling or the opinion that the sender
wants to convey to the receiver.

• It is a key that triggers the recipient, to respond to the sender.

• The sender must ensure that the message conveyed must be clear and specific.

• The message can be conveyed to the receiver in some ways, like humour or fear.
3. Media

• Media refers to the various channels or a medium that is used or to be used to

convey your message.

• Medium is the means by which a message is transmitted to the receiver.

• The medium may include verbal channels like telephone or a word-of-mouth

communication or a non-verbal communication such as e-mail or text messages.

• Each channel has its pros and cons.

• Written communication may be used to convey messages to a small group of
people whereas oral or verbal communication means can be chosen to convey
messages to a large group of people.

• The channels in the advertising communication system include television, radio,

newspapers, magazines, billboards, e-mail, online advertising and so on.

• The impact and intensity of communication may differ from one media to another.

4. Receiver

• The receiver or the interpreter in an advertising communication system refers to

the target audience or the person to whom the message is directed.
• The receiver can be defined in terms of audience segmentation variables like
lifestyle, demographics, benefits sought and so on.

• The characteristics of the receiver, his demographics, psychological and social

features furnish the foundation for understanding communication process.

• To understand the information from the sender, the receiver must first be able to
receive the information and then decode or interpret it.

5. Feeback

• Feedback is a significant element of the communication process, as it empowers

the sender to measure the efficiency of the message.

• It enables the sender to analyse the exact interpretation of the message by a

decoder.
• The communication process reaches its end goal when the message has been
successfully transmitted, received and understood.

• Feedback may be direct, such as a written or oral feedback, or it may also take
the form of an action in response.

6. Other Factors

• The communication process is not always smooth and simple.

• The above elements affect how information is transmitted, received and

interpreted, but there can be some interruptions while the communication is going
on
a) Noise

• Noise can be any kind of interference that affects the message being sent,
received or understood.

• Noise is something that distracts the receiver from receiving the message.

• Noise can be a result of too many messages.

• Noise can also be generated when your message is too similar to that of your
competitors.

• If the receiver cannot differentiate between your product and the competitor’s
product, which already exists in the market, then the receiver will not buy your
product.
b) Encoding

• Encoding of a message is the creation of the message.

• It is a system of coded meanings.

• In the communication process, the communicator or the encoder gives a shape to

the message. The encoder encodes the message rightly in his mind and transmits
it to the receiver.

• The receiver interprets this message according to his experience and

understanding.

• Without the encoder or the source, there is no concept of communication.

c) Decoding

• Communication is a continuous process. Successful decoding of a message is a

skill.

• Decoding refers to the interpretation of the message encoded by the source

according to his understanding and experience.

• If the message is simple and clear, the encoded details will be easily decoded by
the receiver.

• It is important that the encoded message should be clear, accurate, simple, and
meaningful so that the message is not misinterpreted at any point of time.
7. Context

• This is the platform or a situation in which the communication takes place.

• Like noise, context can have an influence on the effective exchange of

information.

• It can possess a social, cultural or a psychological aspect to it.

• The communication model doesn’t stop at the receiver, it qualifies the possibility
that the receiver might engage in a word-of-mouth communication.

• The receiver then becomes a temporary source and the destination becomes the
receiver again.
• Word-of-mouth communication resulting from advertising can become a
significant part of the campaign.

• The word-of-mouth communication possesses great credibility.

• Advertising can stimulate the word-of-mouth communication, even if it cannot

stimulate it, the information and understanding of its effectiveness can be of
immense help.

----------------------------XXXXXXXXXX-----------------------------------------XXXXXXXXX------