HOW ADVERTISING WORKS?

Submitted by :Abhijeet Verma NA13001Abhilasha Jaju NA13002Kartik Aggarwal NA13029Kushal Pachisia NA13030Vineet Arora NA13057

WHAT IS ADVERTISING ?

• According to American Marketing Association(AMA), “Advertising means any paid form of non personal presentation and promotion of idea, goods or services by an identified sponsor”.

• Advertising is a one way exchange that is impersonal in format.

• There is little empirical evidence of effect of creative messaging on purchase behavior and sales revenue.

• However, Creative advertising is more memorable, works with less media spending, and builds a fan community... Faster.

• The conventional wisdom thus persists that creativity in advertisements matters.

MODELS USED IN ADVERTISING

• TRADITIONAL ADVERTISING THEORIES

• CONSUMER BEHAVIOUR MODELS

• RECENT DEVELOPMENT THEORIES CONSUMER INVOLVEMENT BRAIN SPECIALIZATION

• FCB MODELS

FCB MODEL

• The examples of product for this category of customers could be Cars, electronic good, Housing etc.

• Model: Learn-Feel-Do

• These kind of advertisement communicate the benefit arising from the usage of the product by doing a cost benefit analysis.

• Success of the advertisements depends on the recall rate.

• Specific information- This kind of advertisement provides information with respect to the product.

• For example: mileage, latest offers and features in case of a car advertisement.

Positioning of the brand: Value for money, Feature rich, Trust, Comfort

Informative (Thinker)

Wagon R

• The examples of product for this category of customers could be wrist watch, jewellery, motor-cycles etc.

• Model: Feel-Learn-Do

• Emotional attribute is far more important than the functional attribute

• The advertisements are made dramatic to create the required impact

• Success of the advertisements depends on the attitude change and emotional arousal

• Fastrack watches – Previously watches were seen as a time keeping device. However, Tata positioned Fastrack as an accessory, which is an extension for the personality.

• Positioning of the brand: Youthful, Counter culture, Freedom

Affective (Feeler)

Fastrack

• The examples of product for this category of customers could be mundane items like detergents, toothpaste etc.

• Model: Do-Learn-Feel

• Products in this area involve minimal thought and a tendency to form buying habits for convenience.

• Any point of difference is exploited. Most difficult quadrant as the products are commoditized in nature.

• Success of the advertisements depends on the change in sales before and after advertising

• Ghadi detergent

• Positioning of the brand: Trustworthy, Better quality

Habit formation (Doer)

Ghadi detergent

• The examples of product for this category of customers could be soft drinks, food outlets etc.

• Model: Do-Feel-Learn

• Products in this area involve minimal thought and a tendency to form buying habits for convenience.

• Any point of difference is exploited. Most difficult quadrant as the products are commoditized in nature.

• Success of the advertisements depends on the change in sales before and after advertising.

• Royal Stag

• Positioning of the brand: Aspirational

Self satisfaction (Reactor)

Royal Stag

Overlapping in FCB model Thinking Feeling

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IncredibleIndia

Javed Habibhair parlor

McDonalds

Nescafe

Overlapping in FCB Model

Overlapping in FCB Model

Thank You