Influences of Advertising to Consumer Attitude Towards Buying a Product Essays

Influences of Advertising to Consumer Attitude Towards Buying a Product Essays Influences of Advertising to Consumer Attitude Towards Buying a Product Paper Influences of Advertising to Consumer Attitude Towards Buying a Product Paper THESIS STATEMENT Advertisements are lifeline of companies. It persuades customers to buy their product. Everyone can use advertisements but they must obey the law. There are many types of advertisement that can influence consumer’s attitude to buy a product. The researchers think that TV ad is the most influential type of advertisement because most people watch TV and unlike other advertisements TV ad has the ability to convey your message with sight, sound, and motion. they more accurate to influence consumers because they can easily reach target audiences. I. Introduction Historical context, definition of advertisement and thesis statement II. History of Advertisement A. Definition of Advertisement B. people who first Advertisement C. Types of Advertisements D. New media and Advertising approach E. Future of Advertisements III. Problems Generated by Advertisements A. Alcohol and cigarettes B. Targeting Children C. Negative Influences IV. Benefits of Advertising A. Benefits to Companies 1. Help Increase Sales 2. Greatly Affect the companies lifeline B. Benefits to Consumers 1. Connect easily to the Company 2. Consumers can see the product form their houses than going to the store. V. Possible effects of Advertising A. To Children B. To teens C. To adult VI. Advertising and behavior A. Children underage of 4 maybe unable to distinguish advertising. B. Advertising increase consumption C. Public perception of the medium Conclusion TV advertisements are likely to be more influential to the public and greatly influence company’s lifeline to succeed. They are most likely to be use as a medium because they reach very large audiences. In June 1836, French newspaper La Presse is the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability. The formula is soon copied by all titles. Around 1840, Volney Palmer established a predecessor to advertising agencies in Boston. [7] Around the same time, in France, Charles-Louis Havas extended the services of his news agency, Havas to include advertisement brokerage, making it the first French group to organize. At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer Son was the first full-service agency to assume responsibility for advertising content. N. W. Ayer opened in 1869, and was located in Philadelphia. A print advertisement for the 1913 issue of the Encyclopedia Britannica In the early 1920s the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and civic groups. [8] When the practice of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business name at the beginning and end of the sponsored shows. However, radio station owners soon realised they could earn more money by selling sponsorship rights in small time allocations to multiple businesses throughout their radio stations broadcasts, rather than selling the sponsorship rights to single businesses per show. This practice was carried over to television in the late 1940s and early 1950s. A fierce battle was fought between those seeking to commercialise the radio and people who argued that the radio spectrum should be considered a part of the commons – to be used only non-commercially and for the public good. The United Kingdom pursued a public funding model for the BBC, originally a private company but incorporated as a public body by Royal Charter in 1927. In Canada, advocates like Graham Spry were likewise able to persuade the federal government to adopt a public funding model. However, in the The 1960s saw advertising transform into a modern approach in which creativity was allowed to shine, producing unexpected messages that made advertisements more tempting to consumers eyes. The Volkswagen ad campaign- featuring such headlines as Think Small and Lemon (which were used to describe the appearance of the car)- ushered in the era of modern advertising by promoting a position or unique selling proposition designed to associate each brand with a specific idea in the reader or viewers mind. This period of American advertising is called the Creative Revolution and its poster boy was Bill Bernbach who helped create the revolutionary Volkswagen ads among others. Some of the most creative and long-standing American advertising dates to this incredibly creative period. Public advertising on Times Square, New York City. The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a by-product or afterthought. As cable and satellite television became increasingly prevalent, specialty channels emerged, including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and Shop T. V. Marketing through the Internet opened new frontiers for advertisers and contributed to the dot-com boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising. The share of advertising spending relative to GDP has changed little across large changes in media. For example, in the U. S. in 1925, the main advertising media were newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2. 9 percent. By 1998, television and radio had become major advertising media. Nonetheless, advertising spending as a share of GDP was slightly lower- about 2. percent. [10] A recent advertising innovation is guerrilla promotions, which involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. This reflects an increasing trend of interactive and embedded ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social networking sites. Circa 1950, television viewers were treated to commercial after commercial for the same product during their viewing time. Shows were sponsored by companies, giving us the Kraft hour, and soap operas named for sponsor Proctor and Gamble’s products. This was Lucille Ball’s inspiration for the classic spoof, Vitameatavegamin. The modern age hit full force, and Nielsen boxes all over the country allowed advertisers to target specific demographics. Soon, commercials for diapers and Depends flooded the airwaves, carefully orchestrated to the viewing audience. Product placement became hot, with Roseanne no longer drinking â€Å"Cola† but preferring â€Å"Pepsi†; Charlotte, Miranda and Carrie made â€Å"Jimmy Choos† a household word. Although it never really took off on broadcast shows, feature films soon were generating millions in extra revenue by having characters purchase specific brands. Films with titles like Harold and Kumar Go To Whitecastle were not far behind. Then, Tivo. Remember the phrase, â€Å"appointment TV†? Remember when George Clooney was on ER, and you made your book club move their meetings from Thursday night, because you were suddenly busy? That will never happen again. Now the audience can watch any show, any time. What’s corporate America to do, no longer able to hawk their wares to a captive audience? Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television ads, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches, human directional, magazines, newspapers, town criers, sides of buses or airplanes (logojets), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, usical stage shows, subway platforms and trains, elastic bands on disposable diapers, stickers on apples in supermarkets, shopping cart handles, the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an identified sponsor pays to deliver their message through a medium is advertising. Covert advertising is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruises character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached $2. 7 million (as of 2007). There are two types of infomercials, described as long form and short form. Long form infomercials have a time length of 30 minutes. Short form infomercials are 30 seconds to 2 minutes long. Infomercials are also known as direct response television (DRTV) commercials. The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals. Increasingly, other media are overtaking television because of a shift towards consumers usage of the internet as well as devices such as TiVo. Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space are dependent on the relevance of the surrounding web content and the traffic that the website receives. E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as spam. Some companies have proposed to place messages or corporate logos on the side of booster rockets and the International Space Station. Controversy exists on the effectiveness of subliminal advertising (see mind control), and the pervasiveness of mass messages. Unpaid advertising (also called word of mouth advertising), can provide good exposure at minimal cost. Personal recommendations (bring a friend, sell it), spreading buzz, or achieving the feat of equating a brand with a common noun (in the United States, Xerox = photocopier, Kleenex = tissue, Vaseline = petroleum jelly, Hoover = vacuum cleaner, and Band-Aid = adhesive bandage) - these are the pinnacles of any advertising campaign. However, some companies oppose the use of their brand name to label an object. Equating a brand with a common noun also risks turning that brand into a genericized trademark turning it into a generic term which means that its legal protection as a trademark is lost. As the mobile phone became a new mass media in 1998 when the first paid downloadable content appeared on mobile phones in Finland, it was only a matter of time until mobile advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile advertising had reached 2. 2 billion dollars and providers such as Ad mob delivered billions of mobile ads. More advanced mobile ads include banner ads, coupons, MMS picture and video messages, adver games and various engagement marketing campaigns. A particular feature driving mobile ads is the 2D Barcode, which replaces the need to do any typing of web addresses, and uses the camera feature of modern phones to gain immediate access to web content. 83 percent of Japanese mobile phone users already are active users of 2D barcodes. A new form of advertising that is growing rapidly is Social network advertising. It is Online Advertising with a focus on social networking sites. This is a relatively immature market, but it has shown a lot of promise as advertisers are able to take advantage of the demographic information the user has provided to the social networking site. The impact of advertising has been a matter of considerable debate and many different claims have been made in different contexts. During debates about the banning of cigarette advertising, a common claim from cigarette manufacturers was that cigarette advertising does not encourage people to smoke who would not otherwise. The (eventually successful) opponents of advertising, on the other hand, claim that advertising does in fact increase consumption. According to many sources, the past experience and state of mind of the person subjected to advertising may determine the impact that advertising has. Children under the age of four may be unable to distinguish advertising from other television programs, while the ability to determine the truthfulness of the message may not be developed until the age of 8. Over the past fifteen years a whole science of marketing analytics and marketing effectiveness has been developed to determine the impact of marketing actions on consumers, sales, profit and market share. Marketing Mix Modeling, direct response measurement and other techniques are included in this science. As advertising and marketing efforts become increasingly ubiquitous in modern Western societies, the industry has come under criticism of groups such as Adbusters via culture jamming which criticizes the media and consumerism using advertisings own techniques. The industry is accused of being one of the engines powering a convoluted economic mass production system which promotes consumption. Recognizing the social impact of advertising, Mediawatch-uk, a British special interest group, works to educate consumers about how they can register their concerns with advertisers and regulators. It has developed educational materials for use in schools. Public interest groups are increasingly suggesting that access to the mental space targeted by advertisers should be taxed[citation needed], in that at the present moment that space is being freely taken advantage of by advertisers with no compensation paid to the members of the public who are thus being intruded upon. This kind of tax would be a Pigovian tax in that it would act to reduce what is now increasingly seen as a public nuisance. Efforts to that end are gathering more momentum, with Arkansas and Maine considering bills to implement such a taxation. Florida enacted such a tax in 1987 but was forced to repeal it after six months, as a result of a concerted effort by national commercial interests, which withdrew planned conventions, causing major losses to the tourism industry, and canceled advertising, causing a loss of 12 million dollars to the broadcast industry alone. Advertising has gone through five major stages of development: domestic, export, international, multi-national, and global. For global advertisers, there are four, potentially competing, business objectives that must be balanced when developing worldwide advertising: building a brand while speaking with one voice, developing economies of scale in the creative process, maximising local effectiveness of ads, and increasing the company’s speed of implementation. Born from the evolutionary stages of global marketing are the three primary and fundamentally different approaches to the development of global advertising executions: exporting executions, producing local executions, and importing ideas that travel. Global marketing Management, 2004, pg 13-18) Advertising research is key to determining the success of an ad in any country or region. The ability to identify which elements and/or moments of an ad that contributes to its success is how economies of scale are maximised. Once one knows what works in an ad, that idea or ideas can be imported by any other market. Market research measures, such as Flow of Attention, Flow of Emotion and branding moments provide insight into what is working in an ad in any country or region because the measures are based on the visual, not verbal, elements of the ad. Young, p. 131) Hawk them to the audience when they are captive, of course. Make the advertisement an integral part of an important character’s dialogue, a feature of the plot, and they’re home free. A visit to GE’s Trivection website even includes a link to the network show. It might work for a show like â€Å"30 Rock†, which doesn’t take itself too seriously and where parody is expected. Would it work for Aaron Sorkin’s take on the same premise, â€Å"Studio 60 on the Sunset Strip†? Probably not, but then again satire, comedy, and spoof are not words describe that show. Could this be the future of TV advertising? Will Evian become the bottled water of choice for Jack, Kate, and Sawyer? Perhaps NBC could provide tie-ins to boost other, less popular shows, giving us â€Å"Maury Povich† as the exclusive provider of paternity tests for the â€Å"Law Order† franchise. That frightening thought remains open for debate. Within minutes of the broadcast, backlash hit the Internet, with outraged viewers calling GE on the carpet for their perceived transgression. Days later, it’s still news on big entertainment blogs such as Defamer. com, and the debate continues to rage on message boards. Only time will tell if this bold strategy will work or backfire, but if you use the Trivection oven, time’s all we’ve got. What is Advertising: Advertising is the non personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media. (Bovee, 1992, p. 7) So much for academic doubletalk. Now lets take this statement apart and see what it means. First, advertising has, comparatively speaking, all the time in the world. Unlike personal selling, the sales message and its presentation does not have to be created n the spot with the customer watching. It can be created in as many ways as the writer can conceive, be rewritten, tested, modified, injected with every trick and appeal known to affect consumers. (Some of the latter is the content of this book. ) Second, although advertisers may not see the individual customer, nor be able to modify the sales message according to that individuals reactions at the time, it does have research about customers. The research can identify potential customers, find what message elements might influence them, and figure out how best to get that message to them. Although the research is meaningless when applied to any particular individual, it is effective when applied to large groups of customers. Third, and perhaps of most importance, advertising can be far cheaper per potential customer than personal selling. Personal selling is extremely labor-intensive, dealing with one customer at a time. Advertising deals with hundreds, thousands, or millions of customers at a time, reducing the cost per customer to mere pennies. In fact, advertising costs are determined in part using a formula to determine, not cost per potential customer, but cost per thousand potential customers. Thus, it appears that advertising is a good idea as a sales tool. For small ticket items, such as chewing gum and guitar picks, advertising is cost effective to do the entire selling job. For large ticket items, such as cars and computers, advertising can do a large part of the selling job, and personal selling is used to complete and close the sale. Advertising is non personal, but effective. Advertising blamed for food problems It is very important to protect our children from unhealthy food says the Consumer Council of Fiji. CCF chief executive officer Premila Kumar said past surveys had shown advertising and marketing of food and drink to children was dominated by unhealthy products. Manufacturers, suppliers and retailers of these foods are increasingly using integrated and sophisticated advertising and marketing strategies to promote their products directly and indirectly to children. Familiar examples are of such marketing including the use of collectable toys, games and contests, advertising and packaging cartoon characters, food shaped and coloured to be especially appealing to children and the use of catchy jingles, she said. CCF said unhealthy foods contained high levels of fat, sugar and salt and have a direct effect on the health of children. Children in Fiji have also been cited with related diseases of increasing obesity and type two diabetes, like other children in other parts of the world. These non-communicable diseases impose substantial economic costs on everyone. The Council is also concerned on the quality of food sold in school canteens despite the provision of a School Canteen Guideline put in place by the Ministry of Health. Ms Kumar said the council was also concerned of the absence of a guideline or standard on advertising of unhealthy food to children. Interim minister for Education, Filipe Bole said healthy fruits like snacks were scarce in the market and canteens could only buy them if they were available in the market. He called on people operating school canteens not to give junk foods to the students and stick to the Food Guideline given by the ministry of Health. World Consumer Day is celebrated on March 15 every year. This years theme is Junk Food Generation-Advertising and Marketing of Unhealthy Food to Children in Fiji. Television (TV) has its good side. It can be entertaining and educational, and can open up new worlds for kids, giving them a chance to travel the globe, learn about different cultures, and gain exposure to ideas they may never encounter in their own community. Programs with positive role models can influence people to change their behavior for the better. However, the reverse can also be true: Kids are likely to learn things from TV that parents dont want them to learn. TV can affect kids health and family life. Its worthwhile for parents to think about what role they want TV to play in their family. Consider: A great deal is known about children and television, because there have been thousands of studies on the subject. Researchers have studied how TV affects kids sleep, weight, grades, behavior, and more. its worth looking at what the research says when deciding how to manage television in your family. Spending time watching TV can take time away from healthy activities like active play outside with friends, eating dinner together as a family, or reading. TV time also takes away from participating in sports, music, art or other activities that require practice to become skillful. TV viewing starts earlier than other forms of media- often beginning before age two. In recent years, TV, video and DVD programs geared to babies and toddlers have come on the market- and now even a cable channel for babies. We dont know yet what effect TV-viewing by babies may have on their development. We do know that time spent watching TV replaces time spent interacting with caregivers and other children. Social interaction is critical to a babys healthy development. How big a presence is TV in kids lives? On average, kids spend nearly 4 hours a day watching television, DVDs and videos. 68% of 8- to 18-year-olds have a TV in their bedroom; 54% have a DVD/VCR player, 37% have cable/satellite TV, and 20% have premium channels. In 63% of households, the TV is usually on during meals. In 53% of households of 7th- to 12th-graders, there are no rules about TV watching. In 51% of households, the TV is on most of the time. Kids with a TV in their bedroom spend an average of almost 1. 5 hours more per day watching TV than kids without a TV in the bedroom. Many parents encourage tots to watch TV. Find out more about TV in the lives of children ages zero to six. As you can see, if your child is typical, TV is playing a very big role in their life. Here are some key research findings to keep in mind as you decide what kind of role you want TV to play in your family: TV viewing is probably replacing activities in your child s life that you would rather have them do (things like playing with friends [6] , being physically active, getting fresh air, reading, playing imaginatively, doing homework [7] , doing chores). Kids who spend more time watching TV (both with and without parent and siblings present) spend less time interacting with family members. [8] Excessive TV viewing can contribute to poor grades, sleep problems, behavior problems, obesity, and risky behavior. Most children s programming does not teach what parents say they want their children to learn; many shows are filled with stereotypes, violent solutions to problems, and mean behavior. Advertisers target kids, and on average, children see tens of thousands of TV commercials each year [9]. This includes many ads for unhealthy snack foods and drinks. Children and youth see, on average, about 2,000 beer and wine ads on TV each year [10]. Kids see favorite characters smoking, drinking, and involved in sexual situations and other risky behaviors in the shows and movies they watch on TV. More on how television viewing affects children. For more detailed information on these issues, read on. Does TV affect childrens brain development? With television programs- and even a cable channel- designed and marketed specifically for babies, whether kids under two years of age should be watching becomes an important question. While we are learning more all the time about early brain development, we do not have a clear idea how television may affect it. Some studies link early TV viewing with later attention problems, such as ADHD. However, other experts disagree with these results. One study found that TV viewing before age three slightly hurt several measures of later cognitive development, but that between ages three and five it slightly helped reading scores. The American Academy of Pediatrics takes a better-safe-than-sorry stance on TV for young children: Children of all ages are constantly learning new things. The first 2 years of life are especially important in the growth and development of your childs brain. During this time, children need good, positive interaction with other children and adults. Too much television can negatively affect early brain development. This is especially true at younger ages, when learning to talk and play with others is so important. Until more research is done about the effects of TV on very young children, the AmericanAcademy of Pediatrics (AAP) does not recommend television for children age 2 or younger. In addition, TV can discourage and replace reading. Reading requires much more thinking than television, and we know that reading fosters young peoples healthy brain development. Kids growing up in families in which the TV is on always or most of the time spend less time reading and being read to, and are less likely to be able to read. Much has been claimed about the contributions of advertising on the success of a company or a product while it is true that the impact of advertising is evident in our socio-economic system. Advertising is an aid to manufacturers, wholesalers and retailers in the process of marketing commodities to a greater number of customers. It touches and influences the live of practically every man, woman and child. Advertising is a powerful communication force and an important marketing tool to help sell goods mainly OTC drugs which is being emphasize here and even services and ideas through channels of information and persuasion. ( Kleppner, Otto. Advertising, 7th Ed. New York: Prentice-Hall, Inc. , Englewood, 1990) Over-the-counter drugs are simply drugs that can be purchased without a doctors prescription. Many of these drugs are sold not only by drugstores but also by many wholesalers and retail establishments including supermarkets and sari-sari stores. The rationale for classifying certain drugs as OTC drugs is to make treatment of many common and simple diseases and symptoms more affordable and accessible. Direct-to-consumer (DTC) advertising of OTC drugs in its varied forms- TV, radio, magazines, newspaper is widely used throughout the Philippines. Direct-to-consumer advertising is a category of promotional information about specific drug treatments provided directly to consumers by or on behalf of drug companies. On the other hand, ads that are false or misleading do not advance and may even threaten the public health. It is important that a DTC advertisement contains accurate information and making sure that consumers are not misled or deceived by advertisements that violate the law. Work Cited wsu. edu/~taflinge/addefine. html, A Definition of Advertising by Richard F. Taflinger http://en. wikipedia. org/wiki/Advertising oppapers. com/essays/Tv-Its-Effects-Teens/152185 oppapers. com/essays/Impact-Advertisements-Consumer- Buying/94059