Hoşgeldiniz

1. Hoşgeldiniz For slides. http://www.benjovi.com/news/ Click on advertising subset marketing and download…. Enjoy

2. MKTG 903: by Koen H Pauwels How do my sales respond to advertising? Advertising’s impact on sales.

3. Overview of journals studied Aggregate advertising Models: the state of the Art. by John D.C little(1979) How advertising works: What do we really Know? by Demetrios vakratas & Tim Ambler (1999) Advertising Empirical Generalizations: Implications for Research and actions. By sharp and wind (2009)

5. Aggregate advertising Models Controversies, Confusions, Contradictions This key area were illustrated by the writer • Shape • Dynamics • Interactions Prof, John D.C Little

6. Questions: we should bore in our MIND Is such a relationship linear? What are sales with zero advertising ? Is response S shaped ? How fast do sales respond when advertising is increased? How fast does it decay when advertising is decreased ? Is it better to advertise where sales are stronger or weak?

7. Aggregate Advertising model: Shape Sales vs advertising sales with increased advertising Sales with decaying*decreasing* advertising Sales with zero advertising Non linearity: steady state sales vs advertising (zero,infinity) *diminishing returns * S-shape

8. Aggregate advertising models: Dynamics • impulse response • Competition Aggregate advertising models: Interactions Do we Advertise where sales are strong or weak?

9. Hysteresis: it’s a situation where advertising carries a brand upto a new level and stays there even when advertising is reduced e.g No general available example Can we think about such situation and come up with an example for easy understanding?

10. Suggested summary • Advertising is a component of the marketing process. It's the part that involves getting the word out concerning your business, product, or the services you are offering. Studies also shows that advertising response for a product differs from market area to market area. Eg class strength, demographic segmentation or distribution levels • Sales respond dynamically upward and downward to increases and decreases of advertising and do so at different rate • Steady state response can be concave or s-shaped and will often have positive sales at zero advertising • Competitive advertising affect sales • Product sometimes respond to increased advertising with a sales increase that falls off even as advertising is held constant

11. How advertising work: I believe in this school of thought as well!!! I am a part of that school, which believes, that a good advertisement is the one that sells the products without attracting the attention to oneself. It should attract the attention of the reader to the product. Instead of saying “what a smart advertisement”, the reader should say “I didn’t know this before. I must try this product”. David Ogilvy The Father of Advertising". In 1962, Time called him "the most sought-after wizard in today's advertising industry “Confessions of an advertising man

12. What is AIDA?

13. How advertising works: what do I know ? • The first formal advertising model was AIDA (attention – interest – desire – action) Advertising should seek to A= increase awareness I= Create interest D= develop a desire A= Encourage consumer to buy

16. Do we have any questions so far??

17. Advertising Empirical Generalization: Implications for Research and Action EGs is a fancy term for what also know as natural laws or scientific laws, events that occur in repeating patterns inadequate knowledge concerning the conditions over which they do and do not generalize. EGs offer a starting point for design of advertising strategies WhartonconferenceDec 2008. 100+ generated 23 Egs. ROI, Value of TV, 360 mediaplaining , creativequality

18. Summary on Advertising: We discussed certain required consideration in setting up an advertising model exploring this variables: Shape,Dynamics,Interactions Then move to how it advertising works understanding the idea on how consumer make decisions with regards to hierarchy of effect illustrated during this presentation Concludedwiththeresult on thewhartsonconferenceon advertising empirical generalization in terms of research and action

19. Any Questions? Today’s Advertising Laws: will they survive the Digital Revolution? Advertisement of today is much more than commissioning content for commercial media , but goes as far as embracing the art of influencing (rather than controlling) media such as word of mouth, social networks, product placement and a variety of other new ads opportunity In developing an advertising law, one need to observe an empirical event, show that it repeats and start documenting conditions under which patters occurs and does not occur. the key point is that every empirical law must say something meaningful about the real world. Not all scientific laws of advertising may survive the digital revolution but they may help us to survive it. The writer also went further in explaining ,using the research on TV done at the Wharton school, USA and he maintained that advertising on TV will continue to retain its much power with the dynamic world we are in currently Byron sharp and Yoram( Jerry) Wind answers to questions

20. A subset of marketing

21. Apply your PhD expertise to this ad

22. And how about this ad ? For slides. http://www.benjovi.com/news/

23. Communications Framework Media Strategy 3 C’s Analysis Marketing Strategy: Segmentation, Targeting, Positioning Objective Effectiveness Budget Creative Strategy