Download Lecture 2 Brand Positioning

Internet
• Web 2.0
– Two-way mass
communication through
the Internet, e.g. social
networking, consumergenerated content
Internet
• Web 2.0
– Influence is motivated
by our basic human
need to be helpful by
giving advice, and that
people share a
common enjoyment in
seeking out valuable
information.
Smith et al. (2007), “Reconsidering Models of Influence: The Relationship
between Consumer Social Networks and Word-of-Mouth Effectiveness,” Journal
of Advertising Research, 47(4), pp. 387-397
Mobile marketing
• Push and pull
advertising
• Cheap and effective,
but intrusive and
irritating
• Opt-in strategies:
permission
marketing
Interactive Digital television
• iDTV
– Viewers interact with
programmes and use
interactive services.
Advertising
Definition
Functions
Definition
• Advertising is a paid, mediated form of
communication from an identifiable source,
designed to persuade the receiver to take some
action, now or in the future.
– It is a paid communication by a company or
organisation that wants its information disseminated
– It is delivered through a communication medium
designed to reach more than one person, typically a
large number of people
– It is designed to get someone to do something
Richards and Curran, (2002), “ Oracles on ‘Advertising’: Searching for a
Definsition,” Journal of Advertising, 31(2), pp. 63-77
Functions
• Five Critical Functions of Advertising
– Informing
– Influencing
– Reminding and increasing salience,
– Adding value
– Assisting other company efforts
Shimp (2009), “Integrated Marketing Communications in Advertising and
Promotion,” Chapter 9, Mason Ohio: Thomson Education
Functions
1. Informing
• Advertising makes
consumers aware of
new brands, educates
them about a brand’s
distinct features and
benefits, and facilitates
the creation of positive
brand images.
Ehrenberg et al. (2002), “Brand Advertising as Creative Publicity,” Journal of
Advertising Research, 42(4), pp. 7-18
Functions
2. Influencing
•
Advertising influences
prospective customers
to try advertised
products and services.
Functions
3. Reminding and Increasing
Salience
•
Effective advertising
enriches the memory trace
for a brand such that the
brand comes to mind in
relevant choice situations,
and also increases in the
consumer’s interest brands
and thus the likelihood of
purchasing brands
Ehrenberg et al. (2002), “Brand Advertising as Creative Publicity,” Journal of
Advertising Research, 42(4), pp. 7-18
Functions
4. Adding Value
•
Advertising adds value to
brand by influencing
perceptions and greater
ad spending influences
consumers to perceive
advertised brands as
higher in quality
Sridhar and Zhao et al. (2002), “Advertising Spending and Perceived Quality,”
Marketing Letter, 11(3), pp. 221-234
Functions
5. Assisting Other
Company Efforts
•
Advertising is one
member of the all
marketing
communication tools
and it enhances the
effectiveness of other
tools (i.e. personal
selling)
Swinyard and Ray. (1977), “Advertising-Selling Interactions: An Attribution
Theory Experiment,” Journal of Marketing Research, 14(4), pp. 509-516