Advertising Perspectives
THERE ARE many ways to look at advertising—as a business, a creative communication process, a social
phenomenon, and a fundamental ingredient of the free-enterprise system. The first part of this text
defines advertising, examines the most important dimensions of the field, considers how changing
economics has influenced the evolution of the profession, outlines advertising’s functions and scope,
considers its social and legal ramifications, and looks at the major participants in the advertising
business, not just in North America but around the world.
Advertising agencies come in all shapes and sizes. Some are small
boutique shops that have just a few people. Others are giants that
employ thousands of people in offices all around the world.
But, however large or small the agency, there is a basic structure that most advertising agencies stick to. In the smaller agencies, some people will perform more than one role. One person my actually be the entire department. But the fundamentals are the same, and it's because this model was born out of necessity and it works.
There are SIX major departments in any advertising agency. These can be split into other sub-departments, or given various creative names, but the skeleton is the same.
These departments are:
Account Services
The account service department comprises account executive, account managers and account directors, and is responsible for liaising with the agency's many clients. This department is the link between the many departments within the agency, and the clients who pay the bills. In the past they were referred to as "the suits," and there have been many battles between the account services department and the creative department. But as most creatives know, a good account services team is essential to a good advertising campaign. A solid creative brief is one of the main duties of account services.
Account Planning
This department combines research with strategic thinking. Often a mix of researchers and account managers, the account planning department provides consumer insights, strategic direction, research, focus groups and assists helps keep advertising campaigns on target and on brand. Chris Cowpe described account planning as "…the discipline that brings the consumer into the process of developing advertising. To be truly effective, advertising must be both distinctive and relevant, and planning helps on both counts."
Creative
This is the engine of any advertising agency. It's the lifeblood of the business, because the creative department is responsible for the product. And an ad agency is only as good as the ads the creative department puts out. The roles within the creative department are many and varied, and usually include:
Finance & Accounts
Money. At the end of the day, that's what ad agencies want. And it's what their clients want, too. At the center of all the money coming into, and going out of, the agency is the finance and accounts department. This department is responsible for handling payment of salaries, benefits, vendor costs, travel, day-to-day business costs and everything else you'd expect from doing business. It's been said that approximately 70% of an ad agency's income pays salary and benefits to employees. However, this figure varies depending on the size and success of the agency in question.
Media Buying
It is the function of the media buying department to procure the advertising time and/or space required for a successful advertising campaign. This includes TV and radio time, outdoor (billboards, posters, guerrilla), magazine and newspaper insertions, internet banners and takeovers, and, well, anywhere else an ad can be placed for a fee. This usually involves close collaboration with the creative department who came up with the initial ideas, as well as the client and the kind of exposure they want.This department is usually steered by a media director.
Production
Ideas are just ideas until they're made real. This is the job of the production department. During the creative process, the production department will be consulted to talk about the feasibility of executing certain ideas. Once the ad is sold to the client, the creative and account teams will collaborate with production to get the campaign produced on budget. This can be anything from getting original photography or illustration produced, working with printers, hiring typographers and TV directors, and a myriad of other disciplines needed to get an ad campaign published. Production also works closely with the media department, who will supply the specs and deadlines for the jobs.
In small to mid-sized agencies, traffic is also a part of the production department. It is the job of traffic to get each and every job through the various stages of account management, creative development, media buying and production in a set time-frame. Traffic will also ensure that work flows through the agency smoothly, preventing jams that may overwhelm creative teams and lead to very long hours, missed deadlines and problematic client relationships. Traffic keeps the agency's heart beating.
ADVERTISING AGENCY
Definition: An advertising agency creates, plans and manages all aspects of a client's advertising. Ad agencies can specialize in specific areas, such as interactive advertising, or they can be a full-service agency that creates advertising materials like BR-OCHERS,CATALOGS,DIRECT MAIL, PRINT AD, radio and TV commercials, sales later etc.
Most agencies are their own independent company that handle many types of clients and their different advertising needs. Some agencies are IN-HOUSE AGENCIES, meaning their one and only client is the company that owns them.
But, however large or small the agency, there is a basic structure that most advertising agencies stick to. In the smaller agencies, some people will perform more than one role. One person my actually be the entire department. But the fundamentals are the same, and it's because this model was born out of necessity and it works.
There are SIX major departments in any advertising agency. These can be split into other sub-departments, or given various creative names, but the skeleton is the same.
These departments are:
- Account Service
- Account Planning
- Creative
- Finance & Accounts
- Media Buying
- Production
- Human Resources & Facilities
- Research
- Web development
- Traffic
Account Services
The account service department comprises account executive, account managers and account directors, and is responsible for liaising with the agency's many clients. This department is the link between the many departments within the agency, and the clients who pay the bills. In the past they were referred to as "the suits," and there have been many battles between the account services department and the creative department. But as most creatives know, a good account services team is essential to a good advertising campaign. A solid creative brief is one of the main duties of account services.
Account Planning
This department combines research with strategic thinking. Often a mix of researchers and account managers, the account planning department provides consumer insights, strategic direction, research, focus groups and assists helps keep advertising campaigns on target and on brand. Chris Cowpe described account planning as "…the discipline that brings the consumer into the process of developing advertising. To be truly effective, advertising must be both distinctive and relevant, and planning helps on both counts."
Creative
This is the engine of any advertising agency. It's the lifeblood of the business, because the creative department is responsible for the product. And an ad agency is only as good as the ads the creative department puts out. The roles within the creative department are many and varied, and usually include:
- copywriters
- ART-DIRECTORS
- DESIGNER
- Production Artists
- Web Designers
- Associate Creative Directors
- CREATIVE DIRECTORS(s)
Finance & Accounts
Money. At the end of the day, that's what ad agencies want. And it's what their clients want, too. At the center of all the money coming into, and going out of, the agency is the finance and accounts department. This department is responsible for handling payment of salaries, benefits, vendor costs, travel, day-to-day business costs and everything else you'd expect from doing business. It's been said that approximately 70% of an ad agency's income pays salary and benefits to employees. However, this figure varies depending on the size and success of the agency in question.
Media Buying
It is the function of the media buying department to procure the advertising time and/or space required for a successful advertising campaign. This includes TV and radio time, outdoor (billboards, posters, guerrilla), magazine and newspaper insertions, internet banners and takeovers, and, well, anywhere else an ad can be placed for a fee. This usually involves close collaboration with the creative department who came up with the initial ideas, as well as the client and the kind of exposure they want.This department is usually steered by a media director.
Production
Ideas are just ideas until they're made real. This is the job of the production department. During the creative process, the production department will be consulted to talk about the feasibility of executing certain ideas. Once the ad is sold to the client, the creative and account teams will collaborate with production to get the campaign produced on budget. This can be anything from getting original photography or illustration produced, working with printers, hiring typographers and TV directors, and a myriad of other disciplines needed to get an ad campaign published. Production also works closely with the media department, who will supply the specs and deadlines for the jobs.
In small to mid-sized agencies, traffic is also a part of the production department. It is the job of traffic to get each and every job through the various stages of account management, creative development, media buying and production in a set time-frame. Traffic will also ensure that work flows through the agency smoothly, preventing jams that may overwhelm creative teams and lead to very long hours, missed deadlines and problematic client relationships. Traffic keeps the agency's heart beating.
ADVERTISING AGENCY
Definition: An advertising agency creates, plans and manages all aspects of a client's advertising. Ad agencies can specialize in specific areas, such as interactive advertising, or they can be a full-service agency that creates advertising materials like BR-OCHERS,CATALOGS,DIRECT MAIL, PRINT AD, radio and TV commercials, sales later etc.
Most agencies are their own independent company that handle many types of clients and their different advertising needs. Some agencies are IN-HOUSE AGENCIES, meaning their one and only client is the company that owns them.
SAMPLE OF CREATIVE PHOTOGRAPHY..............
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| What they do happens to us. The powers are the main cause of the changing climate. Let's demand a fair agreement in Copenhagen. Advertising Agency: Francisco Espinosa, Mar del Plata, Argentina Creative Director: Francisco Espinosa Art Director: Barrilete Dg Copywriters: Francisco Espinosa, Rocío Vazquez Photographers: Ron Jeffreys, Rybson Other additional credits: Rocío Vazquez FIGURE: 1 A SAMPLE STRUCTURE OF ADVERTISING PROCESS (WHEN THE ADVERTISER HAS AN IN HOUSE AGENCY ) ADVERTISING ORANIZATION ! ! ! ! INTERNAL ADVERTISING DEPARTMENT ! ! ! !
ADVERTISING ORGANIZATION ! ! ! ! ADVERTISING DETERMENT ! ! ! ! EXTERNAL AGENCIES
ADVERTISING AND SOCIETY: ETHICS,REGULATION, AND SOCIALADVERTISING AND ITS SOCIAL RESPONSIBILITYAbstract: Advertising in its simplest form means “public announcement”. Advertising as described by the American Marketing Association, Chicago is basically “any paid form of non personal presentation of ideas, goods and services by an identified sponsor.” This definition in itself states that advertising is mostly a form of persuasive communication with the audience. Further, it is also clear from the definition that advertising is basically one-sided information where information flows from the part of the advertiser (sender) to the public (receiver). Thus, in this context it wouldn’t be wrong to say that that advertising forces itself upon the audiences leaving little scope of response from the receiver’s end. Advertising is thus not a panacea that can restore a poor product or rejuvenate a declining market rather it is a tool that helps in selling new ideas, products and services through the art and strategy of persuasive communication. Keywords: Advertising, mass communication, advertiser, advertisement, Public Service Advertising, Social Awareness Advertising Introduction Advertising is multidimensional and is definitely a form of publicity. Any form of mass communication has a social responsibility attached with it and thus advertisement is no exception. However, one question in this context that needs to be cleared is whether advertisements fulfill the ‘so called responsibility’ or not. Advertisements are meant for the masses and people relate themselves with this medium. Thus, for understanding its 1responsibilities towards the public, its positive and the negative aspects needs to understood. It is not only a powerful medium of mass communication but also is a vital component of the economic system, a means of financing mass media, an art form, a social institution, an instrument of business management, a profession and last but not the least a field of employment. In simple terms, advertising is an announcement regarding the launch of a product, service or idea through the usage of basically the most popular mass media. Medium is chosen based on its popularity and the one which has maximum reach. It may vary from audio-visual medium, audio medium to print medium, etc. As advertising is a form of mass communication and thus just like other popular forms it too have some social responsibilities associated with it. Here at this stage, one big question arises whether advertising people do have a responsibility only towards their clients or does this sphere of social responsibility is much bigger than that? Negative and Positive Aspects of Advertising Like any other medium of mass communication, advertisements also have certain positive as well negative aspects. Several studies have been conducted on the effect of advertising on the price sensitivity of consumers. At first sight, the results of the conducted studies appear to be quite conflicting. Like for instance, some of the studies imply that an increase in advertising leads to an increase in the anticipated price sensitivity of the public. On the other hand, some studies have indicated that an increase in advertising leads to a decrease in the price sensitivity of the consumers. In this competitive market, with the advent of so many advertising agencies as well as with the arrival of billions of products, services and ideas, satisfying the needs of the clients have become the ultimate objective for the advertisers. In several cases, we find portrayal of misleading and false information in advertisements. People are often left with ample choices about the same kind of products which guarantee almost the same facilities but are not really the same. The advertisers rarely think about the benefit of the people, they are more inclined towards making profit. Further, advertising, apart from its plentiful direct effects, also affects the price sensitivity of the consumers as well as the prices of goods in the market directly. The advertisers including the ones involved in market research are mostly interested in assessing the sensitivities of the consumers to price. This assessment is treated as an input to take strategic and tactical decisions regarding market segmentation, marketing activities, price, as well as cutthroat marketing 2 strategies. The claims made by advertising need to ensure honesty and truthfulness. On a lighter note, advertising people are citizens of the community and thus being a part of the community they do have certain duties to develop towards the society rather than demolishing the values of the civil society (here it needs to be specified that values do not mean the ones that degrade human dignity). Social responsibility advertisements that help in creating awareness against the evil systems such as dowry system, bonded labour, child lab our, caste system, discrimination, etc. Thus, the advertisers in the effort to promote only commercial profit and prosperity cannot simply turn their backs on improving the social, ethical and cultural development of the community. They cannot deny the fact that it is only because of this context of the social and cultural development, people mostly understand and accept the advertiser’s messages. Messages in any advertisement when delivered in real circumstances grab maximum attention of the audiences. It is truthfully stated by experts that an exotic environment might grab attention and can probably retain their interest for a while but eventually fails to persuade and convince as effectively. The big question that remains yet unanswered is that whether advertising which is one of the most powerful tools of mass media is fulfilling its social responsibility towards the society or not. According to surveys, majority of the consumers felt that advertising holds quite a relevant and significant position in present day society. However, they also feel that the advertisements should be properly censored and checked for the claims being made in order to avoid any type of socially irresponsible advertisings. Nowadays, a number of advertisements are being made that simply exaggerate the qualities of the product often leading to biasness. In those cases, it has been found later that the products were not as good as claimed by the advertisers. In India, a large amount of advertisements are being especially to attract the female audiences. Certain advertisements like that of ready-made garments, fabrics, cosmetics, leather goods, jewelries, etc., mostly feature celebrities and portray highly westernized and showy type of lifestyle. People often cannot relate themselves with these advertisements. It definitely affects the mindset of the people often leaving them with the feeling of inferiority complex in front of those who can lavishly afford the kind of lifestyles portrayed in certain advertisements. Mostly, the commercials of Radio and Television feature women essentially as the consumers who are preoccupied with clothes, jewelries, and other similar adornments. Women are mostly 3 portrayed as housewives, loving wife and mother. Only minimum percentages of advertisements show the working class women and their problems. Case Studies Advertising and its effectiveness is directly associated with its marketing that is the way in which a product has been launched or presented to the consumers. Products are identified with certain taglines. Those advertisements become extremely popular that can aptly touch the pulse of the consumers. Popularity of any product defines the effectiveness of advertisements. Following are some case studies that would indicate the effectiveness of powerful advertisements and the impact of the popular taglines on audiences in Indian market. i. Vicks Action 500 It was introduced in India in 1979. Today, the capsules enjoy a huge market share in anti-cold tablets category. To begin with, people from south and west of India preferred balms but North Indians liked quick solution to their cold problems. These days, however the consumption of Vicks Action 500 is much more in West and South, and accounts for around two third of its sales. Vicks Action 500 is India’s first advertised OTC medicine, whereas other anti-cold tablets were all doctor prescribed. It was launched as one dose medication (the norm being two doses then). Its brand name signified ‘one’s getting back into action’. The numeral 500 was chosen to make it register in the minds of the rural folks. The first account managers were O&M. The pilot ad with the words ‘Haan Bhai Haan’ was largely conceived. The first ad cast Dheeraj Kumar. Tiku Talsania was next in line. (From Foundations of Advertising Theory and Practice – S.A. Chunawalla & K.C. Sethia, Chapter 32, Page – 977) ii. Dettol Soap Reckitt & Colman of India’s Dettol antiseptic is a brand leader in disinfectants. It is the oldest player with a stint of 60 years behind it. It has become synonymous with disinfectant properties in consumer mind. It extended the brand name to Dettol Soap. The soap was earlier launched on the love-and-care promise like all other premium soaps. The launch year was 1982. Dettol, however, had a formidable reputation as a health and hygiene product. The brand was sold on the pitch of possessing cleansing properties. Dettol had a strong antiseptic image and the consumers were not ready of accept a ‘soft’ soap. In the trial period, it registered 1 p.c. share but repeat purchases were few. RCI learnt on the strength of the research that in any 4 brand extension of their, they should transmit the characteristics of the mother brand. The consumer had to relate the new product to the main brand closely. In 1985, Dettol was re-launched and repositioned. The advertising theme was a ‘100 per cent bath’ at those times when a ‘special’ bath and a ‘special (Dettol) soap is needed. This campaign was closer to the Dettol equity. It goes further by stating that it is special soap for special bath. In other words, you may use your beauty soap, but reserve Dettol for special times. It is a niche of hygiene that it filled up. iii. TV Commercial There are shots of all those special occasions like shopping in a vegetable market and playing with pets. The commercial is more focused. It sold on the pitch of delivering the ‘antiseptic’ promise. It is two-dimensional. It began by selling the special bath so that consumers were convinced of the need for such a bath. They naturally then would look for a soap like Dettol. The soap sells from grocery shops where it competes with other premium soaps. Moreover, it also sells from chemist shops where it has the highest share among all soaps sold. (Foundations of Advertising Theory and Practice – S.A. Chunawalla & K.C. Sethia, Chapter 32, Page – 966) Social Awareness Advertising As it is quite clear that advertising is one of the most influential tools of mass communication, there is no doubt regarding the fact that any information delivered through this mode create an impact. In this context role of public service or social service advertising needs to be mentioned. It is also referred as development advertising. Public service or social awareness advertising mainly focuses on social issues like national integration, pollution, family planning, care and concern for aged and disabled, awareness campaigns against smoking, drugs, alcohol, etc. The primary purpose of this type of advertising is to educate the masses through hard hitting didactic messages. This particular genre of advertising does not sell products rather effective messages and ideas. “Social Awareness Advertising promotes ideas. But for these ideas, creativity will be of a different kind. A product is out there in a shop. A bar of soap is an investment of small consequences. Trying to sell an idea – like a free cancer check-up, the need to keep the Ganga clean, the importance of Family Planning, is altogether a different proposition. It needs more care, more study, more perception, and more inspiration and above all, more sensitivity – not in 5 the good table manners, sense but as honestly as it is possible for any human being to speak like a person and not an ad man.” (S.R.Iyer, AD veteran) Tara Sinha (veteran in the field of Advertising, Public Relations, External Affairs, Issues Management and Corporate Communications) wants advertising to become an instrument to accelerate the process of change in the urban and rural society. Social awareness advertising, according to her, should be much more than ‘tokenism’ with a potential to do PR job. It should have a better fate than being hung in galleries or occasionally released in media. Public Service Advertising or Social Awareness Advertising must bear a stamp of professional excellence that moves people to action – especially the voluntary and non-voluntary organizations that together with the makers of advertising and planners of media form a part of the team. She emphasizes that it is important to ensure that there is an agreed statement on the specific and if possible measurable action which the advertising must generate among groups of people. It is also necessary that public service advertising be viewed on a campaign basis: adequate time must be given for advertising to work. Frank Simoes (ad veteran) is of the opinion that no amount of well drafted and well meaning public service ads will be effective unless they are supported by political, social, legal, religious pressure on the concerned people. (From Foundations of Advertising Theory and Practice – S.A. Chunawalla & K.C. Sethia, Chapter 32, Page – 940) Conclusion These case studies show that advertisements do have a large impact on the audiences. It clarifies that advertisements really are one of the most powerful and strongest medium of mass communication and when authentic and unbiased messages are delivered through this medium, the products get an instant positive response in the market. It all depends on the advertisers, who introduce the products or services with complete authenticity and without forgetting their responsibility towards the community. Advertisements do have a social responsibility and it wouldn’t be wrong to state that people can be successfully made aware of the all the concerned and relevant social issues through this significant tool of mass communication. Ethics in Advertising I'm here to talk about ethics in advertising. And no, this isn't going to be "the shortest lecture ever given." People in advertising spend a lot of their time dealing with ethical choices. Because ads are made of choices: What to show ... and what not to show. What to say ... and how to say it. Who to put in the ad ... and who not to. When comic Paula Poundstone talks about terrible ads, she gets laughs by reminding us that "There was a first draft!" Even the worst stuff we see is stuff that people have thought about. I'm not here to explain bad taste in advertising. I couldn't possibly be here that long. My New Hampshire visa would expire. So I'll just tell you something about the ethical questions that make our jobs on "Madison Avenue" more interesting. Let's start with Truth in Advertising. Telling the truth seems like a pretty basic ethical standard. But as any Philosophy major can tell you, there's Truth ... and then there's Truth. Once upon a time, at one of those monster truck rallies, the giant trucks squashed all the cars except for a Volvo. Volvo's ad agency thought this would be a great idea for a commercial. But to make the ad, the film company needed to shoot several takes. So they reinforced the beams inside the car to stand repeated assaults by the monster truck. When this came out in the press, Volvo was pilloried and the ad agency got fired, ultimately going out of business. Did that serve them right? Or was it a bum rap? In real life, a Volvo would stand up to one squashing by a monster truck. No question the TV demo was rigged. But what it showed was the truth. Which raises the question: What can you legitimately simulate to illustrate the truth? Before you answer, "Nothing!" ask yourself if a higher purpose would be served if Pampers and Kotex commercials showed the real thing instead of that fake blue water. Sometimes there's a difference between the pure truth and the useful truth. I travel a lot and it used to make me crazy that the flights were always late. Now they're mostly on time and airline ads boast about how "We're #1 in on-time performance." Did they buy faster planes? No, they re-printed the schedules to show longer flight times. So the schedules lie about how much time you're in the air - but they tell the truth about how long it takes to get where you're going. If your destination is Disney World, you'll see helpful electronic signs that post waiting times for the rides. We trust these signs (and we trust the Disney brand) because the line always moves a little faster than the sign says it will. 15% faster, to be exact. So the sign lies. But by lying, it builds trust. Go figure. Something marketers are beginning to realize is that how a brand actually behaves counts more than what they say. This is good news. Advertising copywriters used to have a monopoly on telling a brand's story. Now, thanks to the Internet, the most influential voices in advertising are yours: You hear about a product, the first thing you do is go online and see what your peers are saying about it. Advertisers know this. Ads for reputable companies almost never lie. The cost of being caught out is simply too high. It can take years to undo the damage. Also, the people inside the company want to be able to look at themselves in the mirror. We often think of business people as belonging to some other, vaguely malevolent species, but remember that most of them are you in a few years. So we tell the truth - but not always the whole truth. We want to put our clients in the best light. McDonalds doesn't advertise the calorie count for Big Macs, but they make it easy to find out. Most people don't want to know. On the other hand, drug makers have to to spell out side-effects because the information can mean life or death. How much of the truth we owe to others is an ethical question. In practice, the answer depends on who they are and what's at stake. On my way here, I saw fliers around campus promoting activities that would shock a lot of Americans - and are probably illegal in a few of the states where I have clients. Obviously, advertising practices are relative. But knowing that what's good fun in Hanover, New Hampshire, is indictable in Lubbock, Texas, is not a very useful moral compass. Any of you who are Pre-Law know the courts have the same problem in defining obscenity. "Community standards" are the yardstick. So here's a pop quiz: Is the world better served by an advertiser that universally acts according to its own corporate conscience...? Or an advertiser that unfailingly respects the social mores of its audiences? Like you. For a company trying to sell something, a TV commercial is like having a job interview with millions of people all at once. The ad wants to make a good first impression, and really, really doesn't want to make people mad. But different people react differently. Here are a couple of ads that make some of my peers mad. But we're not the target audience. You are. So how do you feel about these ads?
But what's up with the guy siccing his dog on a woman to rip her pants off? Is this an ironic tribute to how men love their jeans? Or is it mysogyny? That would be out of character for Levi-Strauss, one of the most socially responsible companies on the planet. They took care to show that she's okay with what happened. Does that help? Or does that make it worse? Here's another jeans ad, from the French company Girbaud. Women like this one. But it was banned in France and Italy because it looked too much like this: DaVinci's Last Supper.
The brands we respond to most are a little bit like clubs, where only "we" get it, (whoever "we" are). Shared experiences and inside jokes make us feel like insiders. But does the advertiser have an ethical responsibility to the larger community: to outsiders who might see the ad by mistake and find it hurtful? Most of us in this room, and in business, would say Yes ... to a degree. "To a degree" sounds like a hedge, but it's reality. An ad that shows parents putting presents under the tree on Christmas Eve will upset some people who think it's outing Santa Clause, and others who don't celebrate Christmas. On average, 15% of people will find something objectionable in any ad, no matter what it shows. So everything we do in advertising is a judgment call. And we know going in that we're going to fall at least 15% short of what moral philosophers like Geoffrey Klempner at Oxford tell us that true Ethics demand. Truly Ethical living, with a capital E, requires more than honesty, fairness, decency, and even right action. It requires owning 100% of the responsibility for any consequences of what we do, intended or not. Klempner says this is an impossible standard for a marketplace, and barely within reach for individuals. Try as we might, "collateral damage" happens all the time. If you've ever accidentally hit Reply-to-All on an email, you've found this out.
Ethics in casting
Going back to the "club" idea, if you were recruiting for
a club, the first thing you'd do in an ad is signal your audience: Rugby
players! Singers! Gays and Lesbians! Advertisers do the same thing for
the same reasons. We want our ads to say "this message is for YOU."
Naturally, we don't put the real you in the ads. The real you is your
campus ID and your driver's license photo. We've seen it. That's why
we do casting.Casting decisions can pose ethical choices. Who you put in an ad sends a message. Do beauty and fashion ads reflect the aspirations of American girls? Or do they distort those aspirations by creating an unattainable and objectified standards? It takes a brave advertiser to swim against the cultural tide. Dove did it and caused a sensation.
A) Cynical B) Noble C) Smart, or ... D) All of the above That was the easy question. They get harder. Here's an image from a newspaper ad showing a group of business people.
Social norms and ethnicity are tripwires wherever you go. Here's an ad from Microsoft that neutralizes the issue by putting dinosaur heads on everybody.
Advertising online
The Internet changes everything. If you are interested in making ethical
choices part of your career, get into interactive marketing. The online
world is like the Wild West, where social conventions and even the Law
haven't been settled yet. How many of you have used file-sharing sites?
File-sharing is just one of the technologies that's turning intellectual
property law inside out. Not to mention raising ethical issues. [When
I download Dave Matthews for free, I feel like Robin Hood. But I wouldn't
dream of shoplifting the same music from a store.]The internet challenges the ethics of advertisers more than mass media like television because it is more democratic and more private. Only big companies can afford million-dollar ads; and it's hard to get away with much when 10 million people are watching you on TV. In a very real way, the audience serves as the Conscience of the marketer. But a website or a podcast or Howard Stern on satellite radio is free to reflect or incite the passions of a much narrower community. On the web, an oil company can present itself as an environmentalist to Sierra Club members while calling for roll-backs in regulations among chamber of commerce members. That's duplicitous, right? But we do the same thing when we send out different resumés or post different dating profiles online. Cigarette advertising was banned from broadcast media before you were born. In 1998, most other forms of tobacco advertising were eliminated. But Marlboro's marketing has never been more successful. Banning traditional advertising forced them online, and into into viral marketing techniques that other industries are just beginning to figure out. The one-to-one world of the Web is very different than the one-to-many world of broadcast advertising. The Internet is ethically agnostic. Which makes your ethics more important. In your careers, you will have to tools to communicate as you wish. You will have to be the conscience of your organizations. Tobacco isn't the only potentially lethal product that poses ethical, not to mention public policy questions for communicators. Ad agencies and individual advertising people make their own decisions about categories like tobacco, guns, and political campaigns. Many say "No thanks" to working on certain businesses. But would you turn down the Kraft Macaroni and Cheese assignment because another division of the same company makes Marlboros? Speaking of Mac and Cheese, is food advertising ethical? Are ads making Americans overweight, or do we do that to ourselves? Not long ago, America's biggest food comapny - Kraft - decided to stop advertising high-fat products to children. The American Psychological Association says that advertising aimed at young children is inherently exploitative. And, with childhood obesity a growing concern, Kraft made a decision that addressed both issues. Good for them! We want corporations to do the right thing. And when they do it, they want us to know.
What are the ethics of advertising good deeds?
80% of Americans say they feel better about companies that are aligned
with social causes. That's one of the reasons American Express started
the Tribeca Film Festival to bring people back to lower Manhattan after
September 11. It's why Johnson+Johnson, always at the top of the polls
as a Responsible Company, runs ads promoting Nursing as a career. Does
the fact that nurses order so many medical supplies diminish the value
of what J+J is doing in its uplifting ads?Before Hurricane Katrina, Wal-Mart was having image problems. But they had 45 truckloads of relief supplies in position before Katrina made landfall, and delivered a lot more after. They also dispatched PR people with those trucks so the world would know about their good deeds. Does the extra business and good will these companies stand to gain somehow lessen the good that is actually done? In the 1990s, a big company donated a quarter-million dollars in food aid to Bosnians in the wake of the war there. By all accounts, the aid did a lot of good. Later, the company spent over a million dollars to advertise their good deed here in America. How many of you agree that's pushing it? Splendid. Here's the essay question: As the president of that company, write a set of specific guidelines that will encourage enlightened self-interest ... and prevent cynical opportunism. This isn't academic. Some of you will run companies. Part of your job will be translating your beliefs into policy. Industry self-regulation and free speech Since we're talking about advertising, let's take a break for a word from our sponsor. As an industry, ad people strive to practice enlightened self-interest every day. So we've created a host of gatekeepers that steer companies towards truth and fairness, and sometimes step in as enforcers. The Children's Advertising Review Unit, for example, polices messages aimed at kids. They stopped or changed the ads in 134 out of the 144 cases they saw in 2003. Advertisers regulate themselves for the same reasons that campus organizations do: Better we do it ourselves than have the Administration do it for us. Outside the U.S., governments exercise far more control over ads than ours does. Here, the First Amendment grants advertisers much of the freedom to express themselves that we enjoy as individuals. But not all. Just ask Nike. They were accused in the press of allowing Asian subcontractors to operate sweatshops. Since good people like us don't want to buy sneakers made by serfs, Nike launched a PR campaign to tell its side of the story. A California activist brought suit, on the grounds that Nike's side of the story was false advertising - and not corporate free speech. In arguments before the U.S. Supreme Court, the Bush administration and the American Civil Liberties Union both backed Nike. But the Court refused to rule. [Probably because they were so stunned to see the ACLU and the Bush administration on the same side!] So stay tuned ...
Product placement
What are the ethics of advertising in Stealth Mode? Product placement
is another area where
Product placement happens in real life, too. If you go out to a club tonight, you might see some particularly good-looking people using a new kind of cell, or maybe they'll be ordering an exotic drink you've never heard of. If you're curious, they'll let you try their phone and tell you about the drink. And you are curious, because, let's face it, these people are hot. They're the people you want to be. They're also actors and this is a gig for them. Their job is creating the impression that using this phone is the next trend. If you ask them directly: Are you an actor? They won't lie. But if you don't ask, they won't tell. This is the reverse of the Volvo story. Volvo's demonstration was rigged, but what viewers saw on TV was the truth. With the cell phone, the demonstration is the absolute truth, but the scene in the club is pure theater. Subliminal advertising There's one more thing I know you want me to talk about. If you believe subliminal advertising exists, you don't anymore, because I embedded a convincing subliminal denial in this talk. In case you missed it, subliminal advertising is one of those urban legends. Try this experiment. Take a photograph of a glass of ice water or the beverage of your choice and make a fake ad out of it. Then invite people in your Psych department to find the subliminal messages in your ad. They won't disappoint you. The only people, it seems, who don't believe in subliminal advertising are the advertisers. Procter & Gamble is the world's biggest advertiser. Far from trying to make their messages invisible, they're trying to make their brands tangible to consumers through special events and touring exhibits like this giant tube of Crest. It's about as subliminal as a bus. Psychologists say we believe in subliminal advertising because we'd rather think we're being
What Klempner calls the "scaffolding of human culture" is made of unnecessary things. That was true for millenia before the first ad, and will still be true after you all have Tivo and never see another commercial again. Freud had a lot to say about "object love" and Klempner gives Apple as a modern example. People love MacIntosh and iPod for more than their function. When Apple ran ads explaining all the rational reasons for switching to Macs, the ads bombed. They missed what consumers really love about Macs. This wouldn't be a talk about ethics without a Moral, and here it comes. Ethics happen, or don't, in our relationships with others. Advertisers are in the business of communicating with thousands, even millions of "others" all the time. That gives us thousands or millions of chances to practice what we believe every day. Change the word "advertising" to "communication" and the ethical questions come home to roost. Instead of being about big business, the same questions are about you: How much of the truth do you owe someone you're trying to impress? If you're trying to impress different people, do you tell different truths? If you knew that your web page would offend Catholics or contribute to child obesity, even if only a few of them saw your page ... would you change it? A brand is just a bigger "you" or "me". And, just like us, it's looking to connect with people. And that involves all kinds of decisions. Most of them are little decisions, but they add up, for good or for ill. Unless you're planning to join a criminal organization, your employer won't set out to act unethically. No one's going to ask you to come over to the Dark Side. Almost always, bad ads or unethical corporate behavior are the result of a thousand little individual choices that add up. As Ogilvy & Mather CEO Shelley Lazarus likes to say: "Sheep don't decide to wander off, they go astray one little nibble at a time." For blindingly smart, curious people like you, advertising and marketing can be an endlessly interesting field for your gifts. But as technology gives us the means to interact ever more individually with consumers, the ethics of those interactions become ever more personal. It's not about the herd, anymore, and you are not a sheep. It's about you. And the choices you make. Now, more than ever, Ethics is personal. What Is the Difference Between Unethical & Ethical Advertising?by Robert Vaux, Demand Media
Businesses are in the game to make money and advertising can go a
long way towards selling a particular product. But as with many human
endeavors, advertising can often be harmful as well as helpful and the
lines between the two are harder to determine than may first appear.
Adhering to an ethical advertising principle means paying close
attention to several key distinctions.
Honesty
It sounds ridiculous, but one can advertise a given product
without resorting to lies. According to Carroll College, ethical
advertising respects the truth about its product. It never distorts the
product's capabilities, or hides its defects. Ethical advertising is
also clear about its intentions, refraining from subliminal messages or
hidden agendas. Unethical advertising, on the other hand, will often
distort or misrepresent its product and well as seek secretive means of
cajoling or influencing its target audience.
Distinction
International Charter states that ethical advertising seeks to
distinguish its product from those of its competitors. Its logos are
unique and easily identifiable, its product can be readily discerned,
and its overall tone and imagery do not blur the line between it and
other products. Unethical advertising seeks to demolish the distinction
between it and other products: capitalizing on the resulting confusion
by selling products to customers who can't distinguish between it and an
alternate product (that may offer better features).
Related Reading: What Is the Difference Between Marketing and Advertising?
Social Consciousness
Ethical advertising refrains from appealing to "base" human
emotions such as fear, greed or lust, according to Carroll College. It
remains positive and optimistic, and doesn't exploit stereotypes based
around race, gender, religion or age. Unethical advertising, on the
other hand, will prey upon the baser emotions of its target audience.
For instance, it will raise fears for the audience's health if they
don't purchase the product, or rely on sexually explicit images to
generate interest rather than the virtues of the product itself.
Unethical advertising will also make use of socially reprehensible
imagery: depicting minorities as stupid or incompetent, for example, or
women as dehumanized objects of sexual conquest.
Environmental Consciousness
Ethical advertising operates with respect for the natural world
and refrains from causing undue harm to the environment. Carroll College
maintains that such advertising doesn't depict a wanton or excessively
consumerist lifestyle, where the acquisition of objects is the sole
reason for living. Furthermore, the means with which the advertising is
created should adhere to environmental standards -- using recyclable
components, for instance, or non-polluting creation methods -- and
refrain from excessive waste. Unethical advertisements are created
without concern for the environment, and/or encourages environmentally
destructive behavior in its audience.
Advertising Issues
 What Is Puffery in Advertising?by Cynthia Myers, Demand Media
Advertisers try to persuade people to buy a product or service
through various methods. A company may deliver an entertaining message
about its product, compare the product to a similar item, list facts
about the product, or make vague claims about the product which cannot
be proved or disproved. This last method is known as "puffery" — the
advertiser "puffs up" the product to seem like more than it is. Puffery
is not illegal and is a common method used in advertising.
Proof and Puffery
The claims made by puffery may be false, but they are not really
lies because no one can disprove them. No one can prove them either. A
company may claim that its hamburger is the best hamburger in the world.
No one can prove the hamburger is really the best, but no one can prove
it is not. However, if the advertiser says that its hamburger contains
ingredients that help to prevent cancer, that is something science could
prove or disprove. Trying to persuade someone that hamburgers prevent
cancer would be a false claim.
Hyperbole
Puffery is characterized by exaggeration and hyperbole. "The best
hamburger in the world" is so beyond belief that a reasonable person
would not take the claim seriously. Advertisers use exaggeration and
hyperbole to get people's attention and make their message memorable.
Because the claims in puffery are obviously exaggerated, and because
exaggeration works to get people's attention, puffery is an accepted
advertising technique.
Subjective vs. Objective
Puffery claims are subjective and are a matter of opinion. A hair
salon may say it offers "the best" service, but "best" is a matter of
opinion. But if the salon claims that is has won more awards than any
other salon in the city, this is something that can be measured -- it is
an objective claim and not puffery. Puffery often uses superlatives
such as "best," "fastest," "tastiest" and "freshest," for instance.
Deception
Puffery does not intend to deceive. Advertising that deliberately
misleads or makes false claims is illegal, while puffery is legal.
Comparing your product to that of a competitor without scientific
studies to substantiate your claims could lead to charges of deception.
Saying you make a better pizza is puffery. Saying two out of three
people prefer your pizza when you have no studies to substantiate the
claim crosses the line to deception.
subliminal stimuli Subliminal stimuli ( literally "below threshold"), contrary to subliminal stimuli or "above threshold", are any sensory stimuli below an individual's threshold for conscious perception. A recent review of functional magnetic resonance imaging (fMRI) studies shows that subliminal stimuli activate specific regions of the brain despite participants being unaware. Visual stimuli may be quickly flashed before an individual can process them, or flashed and then masked, thereby interrupting the processing. Audio stimuli may be played below audible volumes or masked by other stimuli.   EffectivenessThe effectiveness of subliminal messaging has been demonstrated to prime individual responses and stimulate mild emotional activity. Applications, however, often base themselves on the persuasiveness of the message. Importantly, research on action priming has shown that subliminal stimuli can trigger only those actions that one plans to perform anyway: an action can be triggered subliminally only if the person already has the specific intention to perform this specific action.The following sections have more information on specific studies in which the effectiveness of subliminal stimuli are investigated.MethodThe threshold in subliminal stimuli research is the level at which the participant is not aware of the stimulus being presented.[8] Researchers determine a threshold for the stimulus that will be used as the subliminal stimulus. That subliminal stimulus is then presented during the study at some point and measures are taken to determine the effects of the stimulus. The way in which studies operationally define thresholds depends on the methods of the particular article. The methodology of the research also varies by the type of subliminal stimulus (auditory or visual) and the dependent variables they measure.Objective thresholdThe objective threshold is found using a forced choice procedure, in which participants must choose which stimulus they saw from options given to them. Participants are flashed a stimulus (e.g. the word "orange") and then given a few choices and asked which one they saw. Participants must choose an answer in this design. The objective threshold is obtained when participants are at chance level of performance in this task. The length of presentation that causes chance performance on the forced choice task is used later in the study for the subliminal stimuli.Subjective thresholdThe subjective threshold is determined by when the participant reports that his or her performance on the forced choice procedure is around chance.] The subjective threshold is 30 to 50 ms slower than the objective threshold, demonstrating that participants are able to detect the stimuli is present sooner than their perceived accuracy ratings would indicate.In other words, stimuli presented at a subjective threshold have a longer presentation time than those presented at an objective threshold. When using the objective threshold, primes neither facilitated nor inhibited the recognition of a color.However, the longer the duration of the priming stimuli, the greater effect it had on subsequent responding.These findings indicate that the results of some studies may be due to their definition of below threshold.Visual stimuliIn order to study the effects of subliminal stimuli, researchers will often prime the participants with specific visual stimuli, often images, and determine if those stimuli elicit different responses. Subliminal stimuli has mostly been studied in the context of emotion, in particular, researchers have focused a lot of attention to the perception of faces and how subliminal presentation to different facial expression affects emotion.[Visual subliminal stimuli has also been used to study emotion eliciting stimuli and simple geometric stimuli. A significant amount of research has been produced throughout the years to demonstrate the effects of subliminal visual stimuli.ImagesAttitudes can develop without being aware of its antecedents. Individuals viewed slides of people performing familiar daily activities after being exposed to either an emotionally positive scene, such as a romantic couple or kittens, or an emotionally negative scene, such as a werewolf or a dead body between each slide and the next. After exposure from something which the individuals consciously perceived as a flash of light, the participants gave more positive personality traits to those people whose slides were associated with an emotionally positive scene and vice-versa. Despite the statistical difference, the subliminal messages had less of an impact on judgment than the slide's inherent level of physical attractiveness.Individuals show right amygdala activity in response to subliminal fear, and greater left amygdala response to supraliminal fear.People were exposed to a subliminal image flashed for 16.7 milliseconds that could signal a potential threat and again with a supraliminal image flashed for half a second. Furthermore supraliminal fear showed more sustained cortical activity, suggesting that subliminal fear may not entail conscious surveillance while supraliminal fear entails higher-order processing. Emotion eliciting stimuliA subliminal sexual stimulus has a different effect on men compared to women. Men and women were subliminally exposed to either a sexual or a neutral picture, and their sexual arousal was recorded. Researchers examined the accessibility of sex-related thoughts after following the same procedure with either a pictorial judgment task or lexical decision task. The results revealed that the subliminal sexual stimuli did not have an effect on men, but for women, lower levels of sexual arousal were reported. However, in conditions related to accessibility of sex-related thoughts, the subliminal sexual stimuli led to higher accessibility for both men and women.Subliminal stimuli have elicit significant emotional changes, but these changes are not valuable for a therapeutic effect. Spider-fearful and non-fearful undergraduates experienced either a positive, negative, or neutral subliminal prime followed immediately by a picture of a spider or a snake. Using visual analogue scales, the participants rated the affective quality of the picture. No evidence was found to support that the unpleasantness of the pictures can be modulated by subliminal priming.In fact, the non-fearful participants rated the spiders as more frightening after being primed with a negative stimuli, however, for the fearful participants, this effect was not found. Simple geometric stimuliLaboratory research on unconscious perception often employs simple stimuli (e.g., geometric shapes or colors) whose visibility is controlled by visual masking.] Masked stimuli are then used to prime the processing of subsequently presented target stimuli. For instance, in the Response Priming paradigm, participants have to respond to a target stimulus (e.g., by identifying whether it is a diamond or a square) which is immediately preceded by a masked priming stimulus (also a diamond or a square). The prime has large effects on responses to the target; it speeds responses when it is consistent with the target, and slows responses when it is inconsistent. Response priming effects can be dissociated from visual awareness of the prime, such as when prime identification performance is at chance, or when priming effects increase despite decreases in prime visibility.The presentation of geometric figures as subliminal stimuli can result in below threshold discriminations.The geometric figures were presented on slides of a stethoscope followed by a supraliminal shock for a given slide every time it appeared. The shock was administered after a five second interval. Electrical skin changes of the participants that occurred before the reinforcement (shock) or non-reinforcement were recorded. The findings indicate that the proportion of electrical skin changes that occurred following subliminal visual stimuli was significantly greater than expected. In contrast, the proportion of electrical skin changes that occurred in response to the stimuli which were not reinforced was significantly less. As a whole, participants were able to make below threshold discrimination. Auditory stimuliAuditory maskingOne method for creating subliminal auditory stimuli is called masking. This method involves hiding the target auditory stimulus in some way. Auditory subliminal stimuli are shown to have some effect on the participant, but not a large one.[19] For example, one study used other speechlike sounds to cover up the target words. The study found evidence of priming in the absence of awareness of the stimuli. But the effects of these subliminal stimuli were only seen in one of the outcome measures of priming, while the effects of conscious stimuli were seen in multiple outcome measures.Self-help audio recordingsA study investigated the effects on self-concept of Rational Emotive Behavior Therapy and auditory subliminal stimulation (separately and in combination) on 141 undergraduate students with self-concept problems. They were randomly assigned to one of four groups receiving either Rational-Emotive Therapy, subliminal stimulation, both, or a placebo treatment. Rational-Emotive Therapy significantly improved scores on all the dependent measures (cognition, self-concept, self-esteem, anxiety), except for behavior. Results for the subliminal stimulation group were similar to those of the placebo treatment except for a significant self-concept improvement and a decline in self-concept related irrational cognitions. The combined treatment yielded results similar to those of Rational-Emotive Therapy, with tentative indications of continued improvement in irrational cognitions and self-concept from posttest to follow-up.Consumption and televisionSome studies have looked at the efficacy of subliminal messaging in television. Subliminal messages produce only one-tenth of the effects of detected messages and the findings related the effects of subliminal messaging were relatively ambiguous. Also, participants’ ratings of positive response to commercials are not affected by subliminal messages in the commercials.Karremans suggests that subliminal messages have an effect when the messages are goal-relevant. Subliminally priming a brand name of a drink (Lipton Ice) made those who were thirsty want the Lipton Ice. However, those who were not thirsty were not influenced by the subliminal messages. Karremans did a study assessing whether subliminal priming of a brand name of a drink would affect a person's choice of drink, and whether this effect is caused by the individual's feelings of being thirsty. In another study, participant's ratings of thirst were higher after viewing an episode of "The Simpsons" that contained single frames of the word "thirsty" or of a picture of a Coca-Cola can. Some studies have shown greater effects of subliminal messaging with as high as 80% of participants showing a preference for a particular rum when subliminally primed by the name placed in an ad backward Many authors have continued to argue for the effectiveness of subliminal cues in changing consumption behavior, citing environmental cues as a main culprit of behavior change. Authors who support this line of reasoning cite findings such as the research that showed slow-paced music in a supermarket was associated with more sales and customers moving at a slower pace. Findings such as these support the notion that external cues can affect behavior, although the stimulus may not fit into a strict definition of subliminal stimuli because although the music may not be attended to or consciously affecting the customers, they are certainly able to perceive it. Real-world applicationsAcademicsLong-term effects of subliminal priming can affect academic performance. Participants were subliminally primed with either words related or unrelated to intelligence 1 to 4 days before actual course midterms. The participants who were primed with words related to intelligence had increased performance on their midterms compared to the participants who received neutral primes. These results suggest that subliminal priming may have long-term effects on behavior, especially academic performance. Sixty college students on a summer law course for 6 weeks received subliminal messages before 3 of their 5 lectures per week, as also before and after a brief minute counseling session. The subjects exposed to subliminal messaging achieved significantly higher grades than the others, which were consistent with other earlier studies.Helps to Quit SmokingThirty-four people underwent a 3-week, group-oriented smoking cessation therapy package. Results showed that the subliminal messages affected post-treatment smoking behavior of the group. i.e. the people who received subliminal messages after their regular therapy had a lower rate of relapse into smoking again. A follow up study by Palmatier and Bornstein found that "subliminal messaging noticeably improved the progress of subjects attempting to quit smoking", when compared to the group not exposed to subliminal messages. Lloyd H. Silverman, a psychologist at New York University, did a study on 40 groups of subjects in which he incorporated a subliminal message into the treatment of half the group of smokers trying to quit. One month after the study, 66% percent of the group exposed to subliminal messages were still non-smokers, compared to 13% of the control group.Boost Learning CapacityUniversity students were split into groups and exposed to either a subliminal message or a control message immediately after class, over a period of 12 sessions of 4 millisecond duration messages. Students who had received the subliminal messages ended up performing better in their end of year exams than students who received the control message. The researchers concluded that subliminally stimulating students to feel better about themselves enabled them to learn more efficiently.Positive effects on memory[edit]Chakalis E, Lowe G. from Department of Psychology, University of Hull, UK. did a study to assess the effect of subliminally embedded auditory material on short-term recall, where 60 volunteer subjects undertook a face-name-occupation memory test before and after a 15-min. intervention. They were randomly assigned into three groups (a control group and two experimental groups) and allocated to one of the following conditions: (1) no sound, (2) supraliminal presentation of relaxing music, and (3) subliminal presentation of memory-improvement affirmations embedded in relaxing music. After intervention, only the subliminal group significantly improved their performance on recall of names."Borgeat et al. (1989) could show that long term effects of subliminal stimuli can still be observed on a physiological level 15 minutes after subliminal presentation.The Importance of a Target Audience of ConsumersIn marketing and advertising, a target audience, is a specific group of people within the target market at which a product or the marketing message of a product is aimed at. (Kotler 2000)... For example, if a company sells new diet programs for men with heart disease problems (target market) the communication may be aimed at the spouse (target audience) who takes care of the nutrition plan of her husband and child. A target audience can be formed of people of a certain age group, gender, marital status, etc., e.g. teenagers, females, single people, etc. A combination of factors, e.g. men aged 20–30 is a common target audience. Other groups, although not the main focus, may also be interested. Discovering the appropriate target market(s)and determining the target audience is one of the most important activities in marketing management (Niewenhuizen et al. 2000). The biggest mistake it's possible to make in targeting is trying to reach everybody and ending up appealing to no-one. Target marketA target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy. The target market and the marketing mix variables of product, place(distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace.Once these distinct customers have been defined, a marketing mix strategy of product, distribution, promotion and price can be built by the business to satisfy the target market. Strategies for reaching target marketsMarketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing, differentiated marketing, concentrated marketing, and micro marketing/ niche marketing.Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the medium used to reach this broad audience. For sales teams, one way to reach out to target markets is through direct marketing. This is done by buying consumer database based on the segmentation profiles you have defined. These database usually comes with consumer contacts (e.g. email, mobile no., home no., etc.). Caution is recommended when undertaking direct marketing efforts — check the targeted country's direct marketing laws. Target audiences are formed from different groups, for example: adults, teens, children, mid-teens, pre-scholars, men, women. To market to any given audience effectively, it is essential to become familiar with your target market; their habits, behaviors, likes, and dislikes. Markets differ in size, assortment, geographic scale, locality, types of communities, and in the different types of merchandise sold. Because of the many variations included in a market it is essential, since you cannot accommodate everyone’s preferences, to know exactly who you are marketing to. To better become acquainted with the ins and outs of your designated target market legend, a market analysis must be completed. A market analysis is a documented examination of a market that is used to enlighten a business’s preparation activities surrounding decisions of inventory, purchase, workforce expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, improvement of daily operations and many other aspects. Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the decision-making processes of buyers, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behavior is difficult to predict, even for experts in the field. Relationship marketing is an influential asset for customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.Each method for vote counting is assumed as social function but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer (Kioumarsi et al., 2009).
Information searchOnce the consumer has recognized a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search. Sources of information include personal sources and experience, and commercial and public sources.The relevant internal psychological process associated with information search is perception, which can be defined as "the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world". Consumers' tendency to search for information on goods and services makes it possible for researchers to forecast the purchasing plans of consumers using brief descriptions of the products of interest. The selective perception process can be divided into:-
Evaluation of alternativesAt this time the consumer compares the brands and products that are in their evoked set. The evoked set refers to the number of alternatives that are considered by consumers during the problem-solving process. Sometimes also known as consideration, this set tends to be small relative to the total number of options available. How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. It also needs to check other brands of the customer’s consideration set to prepare the right plan for its own brand.Purchase decisionOnce the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The organization can use a variety of techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration. Once the integration is achieved, the organization can influence the purchase decisions much more easily.There are 5 stages of a consumer buying process they are: The problem recognition stage, meaning the identification of something a consumer needs. The search for information, which means you search your knowledge bases or external knowledge sources for information on the product. The possibility of alternative options, meaning whether there is another better or cheaper product available. The choice to purchase the product and then finally the actual purchase of the product. This shows the complete process that a consumer will most likely, whether recognizably or not, go through when they go to buy a product. | ||||||||||||||||||||||||||||||||||||||
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