EFFECTIVE ADVERTISING
It is easy to see that in most cases, advertising works. While the most popular marker to see if advertising works is sales, this is not the only one- increases in awareness, market share, consumer responses, etc. all imply that advertising works (White, 2000) But how much of those increases can be credited solely to advertising?Years ago, researchers used to do a 'Correlation analysis' for the purpose of establishing a direct/indirect relationship among two variables (for example, advertising and sales), but this method was proven quite incorrect, as correlation coefficients are symmetric (correlation between variable A and variable B is the same as the correlation between variable B and variable A) (Kernan, 1964). For example, one could analyze the correlation between advertising and sales- as advertising increases, as will sales. This correlation between advertising and sales is the same as the correlation between sales and advertising, making the correlation symmetric- as sales increase, so does the advertising, but at the same time, as advertising increases, so does sales. With this method flawed, it was seen quite difficult to measure advertising effectiveness (McWilliams, 1997).
It is certain that, to a degree, advertising plays an important role in the success of a product, but it is too difficult to isolate advertising and appropriately measuring its effectiveness due to uncontrollable/external factors present, as well as the subjectivity within the analysis. An example of Ideal advertising can be taken from Hi-Power Beverage Company's Campaign planning (Swinyard, 2003). In making an effective advertising campaign, an ad company may want to first analyze market information, social influences, and competitor information. It is possible that more people gave generously because on recent world events/disasters such as Sept. With a variety of measuring tools available- retail-based measures, single-source data, ad-tracking, or even an econometric model, why is it so difficult to measure advertising effectiveness? Measuring the effectiveness of advertising has proven quite difficult, because advertisements function in an environment made up of many uncontrollable variables that may influence factors such as sales- advertising is only one part of the marketing mix. Hi-Power planned on spending extra money on pre-testing/copy-testing, thus Hi-Power's brand manager wisely insisted on seeing alternative ideas from the creative team. Awareness of Toshiba within the audio-visual market increased from 8% to 20% after the two bursts of year 1 advertising. From Molson's integrated advertising campaign, they were able to capture 1% of the entire beer category (Durnan, 2003). Clearly Toshiba's improved range of products meant that sales would have increased to some extent even without advertising. X purchased a certain brand based solely on the advertisement he just saw, and disregard factors such as price, product design, brand image, possible publicity, etc. day, there are many other methods of attempting to measure ad effectiveness, some of which very similar to the correlation analysis. In 1997 A chain of over 3000 pubs decided to review the brands they stocked.
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