Television is believed to be the most authoritative, ideal, influential and exciting medium for advertising, because of its ability to combine visual images, sound, motion and color. Television is not a homogenous medium and reaches a variety of audiences. It is a constant companion to some users, to others it is a source of news or occasional entertainment. It is a complex medium that occupies so much of audiences’ time and substantial amounts of advertising money. There is no strictly uniform method of buying TV time across countries. Television networks mainly function as suppliers of programmes to local stations. They sell commercial time to offset their costs of buying shows and pay a fee to stations to carry their programming. Buying Network Time Network television advertising is concentrated among few large advertising agencies and advertisers who spend huge sums of money. There are three basic elements to buying TV network Continue reading
Marketing Management
Marketing management combines the fields of marketing and management. Marketing consists of discovering consumer needs and wants, creating the goods and services that meet those needs and wants; and pricing, promoting, and delivering those goods and services. Doing so requires attention to six major areas – markets, products, prices, places, promotion, and people. Management is getting things done through other people. Managers engage in five key activities – planning, organizing, staffing, directing, and controlling. Marketing management implies the integration of these concepts.
Social Criticism of Advertising
Advertising is often criticized as a wasteful activity and an unnecessary evil. Its critics offer the following arguments to prove their contention. Multiplies the needs. Advertising multiplies the needs of the people by inducing them to buy even those things which are not required by them. Since an advertisement is continuously repeated, it creates a desire in the mind of the public to buy the advertised product. Makes the product more costly. The amount of money spent by an advertiser on his product’s advertisement is added to the distribution cost of the product. Thus, the customers have to pay more for the product advertised. Increase in demand at the cost of another manufacturer. Advertising does not always increase the demand of the product. When the demand is inelastic, advertising shifts demand from one producer to another. That means a large amount of money spent on advertising by the manufacturers goes Continue reading
The Engel Kollat Blackwell (EKB) Model of Consumer Behavior
The Engel Kollat Blackwell Model of Consumer Behavior was created to describe the increasing, fast-growing body of knowledge concerning consumer behavior. This model, like in other models, has gone through many revisions to improve its descriptive ability of the basic relationships between components and sub-components. The Engel Kollat Blackwell model describes consumer behavior as a 4-step decision-making process involving problem recognition, information search, alternative evaluation, and purchase decision. The model also considers how external factors like culture, social class, and reference groups as well as internal factors like motivation, personality, and knowledge influence the consumer’s decision journey. A key feature is distinguishing between high and low involvement purchases based on perceived risk. The Engel Kollat Blackwell Model of Consumer Behavior or consists of four distinct stages; Information Input Stage: At this stage the consumer gets information from marketing and non-marketing sources, which also influence the problem recognition stage of the Continue reading
The Importance of Brand Equity
“If the businesses were split up, I would take the brands, trademarks and goodwill, and you could have all the bricks and mortar – and I would fare better than you.” The optimism for the concept can be stated on the fact that when one would say as a predictor of future financial performance, brand equity, if reported, would be valuable for capital marketers and shareholders. Brand equity has the potential to become the set of measures of business performance that matter most. For example, Starbucks can sell its coffee at a higher price than solid market competitors because consumers associate the brand with quality and value. This is why brand equity is oftentimes directly correlated with a brand’s profitability. The motivation for brand equity comes from the observation that many marketing efforts “realize” benefits; such as sales or profit and these are accounted for in the firm’s profit and Continue reading
Role and Importance of Advertising
Advertising is part of Marketing. In order to stimulate customer response always the advertisement is a good opportunity for the company to promote. The more people see the product/service, the more they feel like buying it. So many companies rely on advertising these days to boost sales of their products or services, to build a connection with their audience and to create competition with their rival firms. There are different types to gain customer’s awareness like advertising, and promotion, Also there are different places that advertisements can be positioned, using the metro, trams, buses, restaurants and so on The advertising objectives should support main company’s goal and should be discussed with company-client in order to avoid misunderstanding. The advertising roles are based on company’s marketing strategy, like; Increase sales, Increase brand awareness and Supporting other market efforts. Advertising gives companies and businesses the opportunity to build up a brand and Continue reading
Country of Origin Effect in International Marketing
The Country of Origin Effect is the influence that the manufacturer country has on the positive or negative consumer judgment. Studies have shown that when a customer becomes aware of the country of origin of a product his/her image about the product is influenced either positively or negatively according to his perceptions. Consumers tend to have a stereotype about product and countries that have been formed by experience, hearsay, myth. These stereotypes are generally broad and vague according to which they judge a specific country or a specific product to be the best: French Perfumes, Italian Leather, Chinese Silk and Japanese Technology are all examples of such stereotypes. Therefore the country, the type of product, and the image of the company all its brand play a crucial rule in deciding whether the country of origin will engender a positive or a negative reaction. Country Image: Precursors to Country of Origin Continue reading