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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