ADVERTISING TECHNIQUES

ADVERTISING TECHNIQUES

 

Who is a Consumer?

Any individual who purchases goods and services from the market for his/her end-use is called a consumer.

In simpler words a consumer is one who consumes goods and services available in the market.

Example - Tom might purchase a tricycle for his son or Mike might buy a shirt for himself. In the above examples, both Tom and Mike are consumers.

What is consumer Interest?

Every customer shows inclination towards particular products and services. Consumer interest is nothing but willingness of consumers to purchase products and services as per their taste, need and of course pocket.

Let us go through the following example:Both Maria and Sandra went to the nearby shopping mall to buy dresses for themselves. The store manager showed them the best dresses available with him. Maria immediately purchased two dresses but Sandra returned home empty handed. The dresses were little too expensive for Sandra and she preferred simple and subtle designs as compared to designer wears available at the store.

In the above example Sandra and Maria had similar requirements but there was a huge difference in their taste, mind set and ability to spend.

What is Consumer Behaviour ?

Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use.

Why do you think an individual buys a product ?

• Need
• Social Status
• Gifting Purpose

Why do you think an individual does not buy a product ?

• No requirement
• Income/Budget/Financial constraints
• Taste

When do you think consumers purchase products ?

• Festive season
• Birthday
• Anniversary
• Marriage or other special occasions

There are infact several factors which influence buying decision of a consumer ranging from psychological, social, economic and so on.

The study of consumer behaviour explains as to:

• Why and why not a consumer buys a product ?
• When a consumer buys a product ?
• How a consumer buys a product ?

During Christmas, the buying tendencies of consumers increase as compared to other months. In the same way during Valentines week, individuals are often seen purchasing gifts for their partners. Fluctuations in the financial markets and recession decrease the buying capacity of individuals.

In a layman’s language consumer behaviour deals with the buying behaviour of individuals.

The main catalyst which triggers the buying decision of an individual is need for a particular product/service. Consumers purchase products and services as and when need arises.

According to Belch and Belch, whenever need arises; a consumer searches for several information which would help him in his purchase.

Following are the sources of information:

• Personal Sources
• Commercial Sources
• Public Sources
• Personal Experience

Perception also plays an important role in influencing the buying decision of consumers.

Buying decisions of consumers also depend on the following factors:

• Messages, advertisements, promotional materials, a consumer goes through also called selective exposure.
• Not all promotional materials and advertisements excite a consumer. A consumer does not pay attention to everything he sees. He is interested in only what he wants to see. Such behaviour is called selective attention.
• Consumer interpretation refers to how an individual perceives a particular message.
• A consumer would certainly buy something which appeals him the most. He would remember the most relevant and meaningful message also called as selective retention. He would obviously not remember something which has nothing to do with his need.

Factors that Influence Consumer Behaviour

The following factors will cause consumers to either increase or decrease their demand for a product.

-The price of a commodity

Consumers can afford to buy more of a good when its price falls and less when its price rises.

-The prices of other goods and services (substitutes and complements)

Substitute products are those that can be used alternatively as they satisfy the same need for a consumer. For example, a weekly shopper may decide to purchase fish instead of chicken because the price fish has fallen significantly less than the price of chicken. Therefore either fish or chicken will be adequate for dinner. If by the next week the price of fish rises and becomes more expensive than chicken then the consumer will opt for chicken.

Complements are goods that are used together e.g. bread and butter.  If the price of butter rises then its demand will fall and so will the demand for bread. Conversely if the price of butter falls, its demand will rise and so too will the demand for bread.

Income of consumers

As income level rises consumers will demand more goods and services

-Taste and Preferences

A change in consumers taste for goods and services will impact their demand.. For example, changes in fashion will result in a drastic decline in demand for an out going fashion and a rise in demand for what is trendy.

-Expectations of a future Rise in Price

If consumers expect the price of a commodity to rise in the near future, they will try to purchase more now, before the price increases.

-Brand Loyalty

Brand loyalty will ensure a continuous demand for a product regardless of changes in its price or the prices of other goods and services.

-Spending Patterns

Consumer spending surveys compile information on consumer spending patterns based on income levels. This informs businesses of what goods and services are in demand.

-Changes in the size of the population

A population decline will cause demand to fall in a particular region. One reason for a population decline in a region is migration.

Product Life Cycle Stages

 

Product Life Cycle StagesAs consumers, we buy millions of products every year. And just like us, these products have a life cycle. Older, long-established products eventually become less popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly after they are launched.

 

Because most companies understand the different product life cycle stages, and that the products they sell all have a limited lifespan, the majority of them will invest heavily in new product development in order to make sure that their businesses continue to grow.

Product Life Cycle Stages Explained

 

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.

 

Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.

 

Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.

 

Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.

 

Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.

 

Who is a Consumer?

Any individual who purchases goods and services from the market for his/her end-use is called a consumer.

In simpler words a consumer is one who consumes goods and services available in the market.

Example - Tom might purchase a tricycle for his son or Mike might buy a shirt for himself. In the above examples, both Tom and Mike are consumers.

What is consumer Interest?

Every customer shows inclination towards particular products and services. Consumer interest is nothing but willingness of consumers to purchase products and services as per their taste, need and of course pocket.

Let us go through the following example:Both Maria and Sandra went to the nearby shopping mall to buy dresses for themselves. The store manager showed them the best dresses available with him. Maria immediately purchased two dresses but Sandra returned home empty handed. The dresses were little too expensive for Sandra and she preferred simple and subtle designs as compared to designer wears available at the store.

In the above example Sandra and Maria had similar requirements but there was a huge difference in their taste, mind set and ability to spend.

What is Consumer Behaviour ?

Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use.

Why do you think an individual buys a product ?

• Need
• Social Status
• Gifting Purpose

Why do you think an individual does not buy a product ?

• No requirement
• Income/Budget/Financial constraints
• Taste

When do you think consumers purchase products ?

• Festive season
• Birthday
• Anniversary
• Marriage or other special occasions

There are infact several factors which influence buying decision of a consumer ranging from psychological, social, economic and so on.

The study of consumer behaviour explains as to:

• Why and why not a consumer buys a product ?
• When a consumer buys a product ?
• How a consumer buys a product ?

During Christmas, the buying tendencies of consumers increase as compared to other months. In the same way during Valentines week, individuals are often seen purchasing gifts for their partners. Fluctuations in the financial markets and recession decrease the buying capacity of individuals.

In a layman’s language consumer behaviour deals with the buying behaviour of individuals.

The main catalyst which triggers the buying decision of an individual is need for a particular product/service. Consumers purchase products and services as and when need arises.

According to Belch and Belch, whenever need arises; a consumer searches for several information which would help him in his purchase.

Following are the sources of information:

• Personal Sources
• Commercial Sources
• Public Sources
• Personal Experience

Perception also plays an important role in influencing the buying decision of consumers.

Buying decisions of consumers also depend on the following factors:

• Messages, advertisements, promotional materials, a consumer goes through also called selective exposure.
• Not all promotional materials and advertisements excite a consumer. A consumer does not pay attention to everything he sees. He is interested in only what he wants to see. Such behaviour is called selective attention.
• Consumer interpretation refers to how an individual perceives a particular message.
• A consumer would certainly buy something which appeals him the most. He would remember the most relevant and meaningful message also called as selective retention. He would obviously not remember something which has nothing to do with his need.

Factors that Influence Consumer Behaviour

The following factors will cause consumers to either increase or decrease their demand for a product.

-The price of a commodity

Consumers can afford to buy more of a good when its price falls and less when its price rises.

-The prices of other goods and services (substitutes and complements)

Substitute products are those that can be used alternatively as they satisfy the same need for a consumer. For example, a weekly shopper may decide to purchase fish instead of chicken because the price fish has fallen significantly less than the price of chicken. Therefore either fish or chicken will be adequate for dinner. If by the next week the price of fish rises and becomes more expensive than chicken then the consumer will opt for chicken.

Complements are goods that are used together e.g. bread and butter.  If the price of butter rises then its demand will fall and so will the demand for bread. Conversely if the price of butter falls, its demand will rise and so too will the demand for bread.

Income of consumers

As income level rises consumers will demand more goods and services

-Taste and Preferences

A change in consumers taste for goods and services will impact their demand.. For example, changes in fashion will result in a drastic decline in demand for an out going fashion and a rise in demand for what is trendy.

-Expectations of a future Rise in Price

If consumers expect the price of a commodity to rise in the near future, they will try to purchase more now, before the price increases.

-Brand Loyalty

Brand loyalty will ensure a continuous demand for a product regardless of changes in its price or the prices of other goods and services.

-Spending Patterns

Consumer spending surveys compile information on consumer spending patterns based on income levels. This informs businesses of what goods and services are in demand.

-Changes in the size of the population

A population decline will cause demand to fall in a particular region. One reason for a population decline in a region is migration.

Product Life Cycle Stages

 

Product Life Cycle StagesAs consumers, we buy millions of products every year. And just like us, these products have a life cycle. Older, long-established products eventually become less popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly after they are launched.

 

Because most companies understand the different product life cycle stages, and that the products they sell all have a limited lifespan, the majority of them will invest heavily in new product development in order to make sure that their businesses continue to grow.

Product Life Cycle Stages Explained

 

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.

 

Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.

 

Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.

 

Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.

 

Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.

 

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 AVANTE

• The suggestion that using this product puts the user ahead of the times e.g. a toy manufacturer encourages kids to be the first on their block to have a new toy.
  
  
  FACTS AND
  
  
  Statistics and objective factual information is used to prove the superiority of the product e.g. a car manufacturer quotes the amount of time it takes their car to get from 0 to 100 k.p.h.
  
  
  WEASEL WORDS

• “Weasel words" are used to suggest a positive meaning without actually really making any guarantee e.g. a scientist says that a diet product might help you to lose weight the way it helped him to lose weight.

• MAGIC INGREDIENTS The suggestion that some almost miraculous discovery makes the product exceptionally effective e.g. a pharmaceutical manufacturer describes a special coating that makes their pain reliever less irritating to the stomach than a competitor`s.
  
  
  PATRIOTISM

• The suggestion that purchasing this product shows your love of your country e.g. a company brags about its product being made in America and employing American workers.

DIVERSION

• Diversion seems to tackle a problem or issue, but then throws in an emotional non-sequitor or distraction.   e.g. a tobacco company talks about health and smoking, but then shows a cowboy smoking a rugged cigarette after a long day of hard work.


• TRANSFERWords and ideas with positive connotations are used to suggest that the positive qualities should be associated with the product and the user e.g. a textile manufacturer wanting people to wear their product to stay cool during the summer shows people wearing fashions made from their cloth at a sunny seaside setting where there is a cool breeze.

• PLAIN FOLKS The suggestion that the product is a practical product of good value for ordinary people e.g. a cereal manufacturer shows an ordinary family sitting down to breakfast and enjoying their product.

• SNOB APPEALThe suggestion that the use of the product makes the customer part of an elite group with a luxurious and glamorous life style e.g. a coffee manufacturer shows people dressed in formal gowns and tuxedos drinking their brand at an art gallery.
  
  
  BRIBERY

• Bribery seems to give a desirable extra something.  We humans tend to be greedy. e.g. Buy a burger; get free fries.

TESTIMONIAL
A famous personality is used to endorse the product e.g. a famous basketball player (Michael Jordan) recommends a particular brand of skates.

WIT AND HUMORCustomers are attracted to products that divert the audience by giving viewers a reason to laugh or to be entertained by clever use of visuals or language.

SIMPLE SOLUTIONS

Avoid complexities, and attack many problems to one solutions. e.g. Buy this makeup and you will be attractive, popular, and happy.

• CARD STACKING
  The propaganda technique of Card-Stacking is so widespread that we may not always be aware of its presence in a commercial. Basically, Card-Stacking means stacking the cards in favor of the product; advertisers stress is positive qualities and ignore negative. For example, if a brand of snack food is loaded with sugar (and calories), the commercial may boast that the product is low in fat, which implies that it is also low in calories. Card-Stacking is such a prevalent rational propaganda technique that gives us only part of the picture.


• GLITTERING GENERALITIES
  The glittering generalities technique uses appealing words and images to sell the product. The message this commercial gives, through indirectly, is that if you buy the item, you will be using a wonderful product, and it will change your life. This cosmetic will make you look younger, this car will give you status, this magazine will make you a leader-all these commercials are using Glittering Generalities to enhance product appeal.
  
  
  BANDWAGON
  Bandwagon is a form of propaganda that exploits the desire of most people to join the crowd or be on the winning side, and avoid winding up the losing side. Few of us would want to wear nerdy cloths, smell differently from everyone else, or be unpopular.
  
  
  The popularity of a product is important to many people. Even if most of us say we make out own choice when buying something we often choose well-advertised items- the popular ones. Advertising copywriters must be careful with the bandwagon propaganda technique because most of us see ourselves as individuals who think for themselves. If Bandwagon commercial is to obvious, viewers may reject the product outright.