Difference between revisions of "Future of Advertising"

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==Research questions==
==Research questions==
(around 25)


Klaas-Jan:
''For readability sake – and since these research question are only for internal use - we will not give in text references. All our references can be found on the bottom of this page.''
*What is advertising (figure page 539)?
 
*What are the objectives? (e.g. inform, persuade, remind or reinforce)
'''What is advertising?'''
*Why is advertising necessary? (e.g. need to demands, points-of parity and points-of-difference, and see figure on page 558 > Kotler)
 
*How does advertising fit in marketing? (e.g. value delivery process, brand equity, page 537)
Generally speaking, advertising is any paid form of nonpersonal promotion of goods, services, companies and ideas, usually by an identified sponsor. Marketers see advertising as part of an overall promotional strategy (i.e. one of the elements of the marketing mix). Other components of the promotional mix include public relations & publicity, personal selling, direct marketing, events and sales promotion.
*What are general qualities of advertisements? (e.g. pervasiveness, amplified expressiveness and impersonality)
 
*Is the role of advertisement changed in the last decades?
'''What are the objectives of advertising?'''
*What are the available advertisement media types? (e.g. newspaper, TV, internet, radio)
 
*What are the advantages and limitations of these media types?
Advertising objectives can be classified according to whether their aim is to inform, persuade, remind or reinforce.
*What are important non-technological trends which affect advertising? (customization, globalization, competition, empowerment, desintermediation)
 
*What is the general advertising process (see page 568)?
*Informative advertising. Aims to create brand awareness and knowledge of new products or new features of existing products.
*How can the Product Life Cycle (intro, growth, maturity, decline) be related to advertising?
*Persuasive advertising. Aims to create liking, preference, conviction and purchase of a good or service.
*How differs advertising of goods from advertising of services?
*Reminder advertising. Aims to stimulate repeat purchase of a good or service.
*What affects the advertising budget? (e.g. stage in PLC, frequency, product substitutability, market share, competition)
*Reinforcement advertising. Aims to convince current purchasers that they made the right choice.
*What can be said about advertising timing? (see page 582, Kotler)
 
'''Why is advertising necessary?'''
Willem:
 
*What is the impact of Internet on advertising?
<<to be filled in>>
*Which parties are involved concerning advertising?
 
*What are the forms of advertising?
'''How does advertising fit in marketing?'''
*What's the people's perception related to advertising?
 
<<to be filled in>>
 
'''What is the general advertising process and which parties are involved? '''
 
Organizations handle advertising in different ways. In small companies, advertising is handled by someone in the sales or marketing department, who works with an advertising agency. A large company will often set up its own department, whose manager reports to the “big boss” of marketing.  The department’s job is to propose a budget, develop strategy, approve ads and so on.


Sven:
Most companies use an outside agency to help create advertising campaigns and to select  and purchase media. Today, advertising agencies are redefining themselves as “communication companies” that assist clients to improve their overall communications effectiveness. They do this by offering strategic and practical advice on many forms of communication.
*Which industries advertise most?
*Which industries advertise less?
*Is there a difference between B2C and B2B advertisment?
*Is advertisement mostly done by the company themselves or is it outsourced?
*Are there new trends the last 10 years on advertisments?


Chaitu:
The general process can be described with 5 major decisions, the 5 Ms.
*With the ability of Internet to facilitate targeted advertising, will advertising be more effective in the future?
*Will Internet advertising significantly increase compared to televised and printed advertising?
*Will Internet advertising become the most expensive channel of advertising?
*How will advertising wars be waged over the Internet? (Currently for printed or televised advertisements, the highest paying advertiser wins the slot. However, with targeted Internet advertising, the competition between advertisers changes somewhat.)
*What other modes of advertising will grow besides Internet-based advertising?
*What modes of advertising will diminish due to the growth of new methods?


NB: Although this is not a complete picture it gives a very good picture of how it works in general.


Chen Li
How can the Product Life Cycle be related to advertising? What will be the life-span accordingly? (what do I have to do with this last question?)
*What are the future criterias of a good advertisment?
*How much information will a person confront everyday in the future, how will it influence advertising?
*How can ICT besides Internet impact on advertising? e.g. mobile technology,etc
*What will people in the future feel about advertising? (psychological factors)
*Is there going to be any legal issues?(can Internet advertising impings your privacies, spyware can be illegal in the future?)
*What are the social factors which will influence on advertising?(people's educational level,social ethical issues)
*What are the global culture trends, and what can it influence advertising?(Will the whole world became one entity that shares the same culture, or will be more diversified?)
*What will be the living style of people in the future impact on advertising?
*What will be the average life-span of an advertisment in the future?
*Are there any new business concept could change the logic behind advertising?(like NIKE's way of advertising a figure instead of a product, will similar things happen?)


The figure below shows the Product Life Cycle. Each stage of a product’s life requires a different approach of advertising.
*Start-up stage. Build product awareness among early adopters and dealers.
*Growth stage. Build awareness and interest in the mass market.
*Maturity stage. Stress brand differences and benefits.
*Obsolesence stage. Reduce to level needed to retain hard-core loyals.


==Driving Forces==  
==Driving Forces==  

Revision as of 10:16, 21 March 2006

Group Members

Sven Blom
Chen Li
Klaas-Jan Molendijk
Willem de Ruiter
Chaitu Satbhai

Introduction

What is a advertising? According to Wikipedia:

Generally speaking, advertising is the promotion of goods, services, companies and ideas, usually by an identified sponsor.

Research questions

For readability sake – and since these research question are only for internal use - we will not give in text references. All our references can be found on the bottom of this page.

What is advertising?

Generally speaking, advertising is any paid form of nonpersonal promotion of goods, services, companies and ideas, usually by an identified sponsor. Marketers see advertising as part of an overall promotional strategy (i.e. one of the elements of the marketing mix). Other components of the promotional mix include public relations & publicity, personal selling, direct marketing, events and sales promotion.

What are the objectives of advertising?

Advertising objectives can be classified according to whether their aim is to inform, persuade, remind or reinforce.

  • Informative advertising. Aims to create brand awareness and knowledge of new products or new features of existing products.
  • Persuasive advertising. Aims to create liking, preference, conviction and purchase of a good or service.
  • Reminder advertising. Aims to stimulate repeat purchase of a good or service.
  • Reinforcement advertising. Aims to convince current purchasers that they made the right choice.

Why is advertising necessary?

<<to be filled in>>

How does advertising fit in marketing?

<<to be filled in>>

What is the general advertising process and which parties are involved?

Organizations handle advertising in different ways. In small companies, advertising is handled by someone in the sales or marketing department, who works with an advertising agency. A large company will often set up its own department, whose manager reports to the “big boss” of marketing. The department’s job is to propose a budget, develop strategy, approve ads and so on.

Most companies use an outside agency to help create advertising campaigns and to select and purchase media. Today, advertising agencies are redefining themselves as “communication companies” that assist clients to improve their overall communications effectiveness. They do this by offering strategic and practical advice on many forms of communication.

The general process can be described with 5 major decisions, the 5 Ms.

NB: Although this is not a complete picture it gives a very good picture of how it works in general.

How can the Product Life Cycle be related to advertising? What will be the life-span accordingly? (what do I have to do with this last question?)

The figure below shows the Product Life Cycle. Each stage of a product’s life requires a different approach of advertising.

  • Start-up stage. Build product awareness among early adopters and dealers.
  • Growth stage. Build awareness and interest in the mass market.
  • Maturity stage. Stress brand differences and benefits.
  • Obsolesence stage. Reduce to level needed to retain hard-core loyals.

Driving Forces

(to do at monday after class)

  • Increasing information availebility for consumers (internet comparing)
  • Increasing knowlodge of consumer (internet reviews, independend users reflection)
  • Increasing populairity of media on demand
  • Growing diversity of media
  • More personalized adds (individualization)
  • Consumer's ability to skip adds
  • Growing consumer resistance to adds

Note: just some ideas, we will work on it on monday!

References

(yet incomplete)

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