Future of Advertising

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)

• http://www.inc.com/magazine/20050801/future-of-advertising.html
• http://adverlab.blogspot.com/
• http://www.pcmag.com/article2/0,1895,1866501,00.asp
• http://www.economist.com/business/displaystory.cfm?story_id=2787854 (good article)
• http://advertising.about.com/od/planning/a/interactivetv.htm
• http://www.businessweek.com/magazine/content/01_13/b3725020.htm
• http://www.pcworld.com/news/article/0,aid,120065,00.asp
• http://businessweek.com/magazine/toc/06_13/B39770613futureoftech.htm