Success Smart Marketing Strategies.

A significant objective of advertising is to change the existing attitude- of an individual, a gender, a society or an age group. The attitude of your target audience toward a product refers to his or her beliefs about, feeling toward, and purchase intentions for the product. You may read about this in detail in my post on Useful Advertising Tips. Depending on the nature of the product, consumer receptivity to messages aimed at altering their beliefs will tend to vary a great deal.  For important products, products that are expensive, high quality argument is required to persuade the customer; the customer is likely to scrutinize the argument and come up with questions. However, for products that are not so important such as soft drinks, research suggests that consumers are often persuaded by having a large number of arguments with little merit presented (e.g., the soda comes in a neat bottle, the bottle contains five percent more soda than competing ones).

Pattern and Purchase

A similar pattern of effectiveness is believed to be followed in celebrity endorsements. For trivial products, the endorser’s profile is not generally questioned or noticed. So regardless of his or her qualifications to endorse, a popular endorser is likely to be at least somewhat effective, for example a famous comedian endorsing Coca Cola. However, consumers will often scrutinize the endorser’s credentials for more important products. For example, a basketball player may be perceived as knowledgeable about athletic shoes, but not particularly so about designer furniture. It is interesting to notice, though, that most celebrities do not really have any connection to the brands they endorse. In practice, many celebrities do not appear to have a strong connection to the products they endorse.

Evaluate Ad Effectiveness

The effectiveness of advertising is a highly controversial topic.  It has been proven that advertising certainly leads to increase in sales, compared with no advertising.  One study suggests that 1% increase in ad spending leads to 0.05% increase in sales. Simple figures.

However, now read this – On an average 1% decrease in ad spending may lead to 2% decrease in sales!

So, in general, advertising is good. Here are some quick facts about effectiveness of advertising:

• Advertising has been proven to be more effective in selling durable goods like cars, refrigerators, microwaves etc., rather than non-durable goods like stationery, soaps, toilet paper etc.
• Advertising appears to be more effective for new products than for existing products.
• The above statement suggests that advertising is probably most effective for providing information rather than persuading people.
• Many advertising agencies make a large part of their money on commissions on advertising certain products.
• The above statement suggests that such advertising companies have a vested interest in selling as much advertising as possible, and may strongly advise clients to spend excessive amounts on advertising.
• Considering the above two statements, it is advisable to have your ads custom-made by a local advertiser, to suit your requirement.
• Even small amounts of advertising is capable of getting a consumer’s attention. So no advertising is useless.
• There is a limit to which advertising can get sales for your product. Beyond that level, called the saturation point, further advertising appears to have a limited effect.

There are several potential ways to measure advertising effectiveness. It is always advisable to contact a local advisor to understand the best way to advertise your product. HyperEffects helps you reach out to your target audience in the most effective way, through advertisements custom-tailored for your product and target. At HyperEffects, our aim is to make small business owners aware of different advertising programmes available for them; our one-hour free consultation program is specially designed to achieve this.

Our team of experts has broadly identified two main categories of ways to measure advertising effectiveness:

Field Study– looks at how advertising impacts sales in numbers, like examining what happens to sales of a company’s products when advertising is increased or decreased by a company.

Lab Study – this basically means using artificial situations to evaluate advertising more effectively, by getting around the confounds imposed by nature. This allows the marketer to control sources of influence, sacrificing the use of real consumers in real settings.  An advertising firm may hire people to come in and participate in such research.

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