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Essay, 18 pages (4500 words)

Advertising is a form of communication intended to persuade an audience

Advertising is the non-personal way of communication of information more frequently than not paid proposed for and usually influential in nature about products, services or ideas by renowned sponsors through the a variety of media. It is a presentation of idea, manufactured goods, or organization, in order to induce persons to approve, buy, or support of it. Advertising is also defined as paid form of any promotion conveyed from side to side an accumulation medium that viewers are more likely in the course of paying attention and consideration in the subject matter of the advertising conceded through their selected medium and it is explained to be part of the marketing mix in the promotional tools.

The globalization of competition, saturation of markets, and development of information technology have enhanced customer awareness and created a situation where long-term success is no longer achieved through optimized product price and qualities. Instead, companies build their success on a long-term customer relationship. According to former studies, it can cost as much as six times more to win a new customer than it does to keep an existing one. Hence, the increase and retention of loyal customers has become a key factor for long-term success of the companies. The main emphasis in marketing has shifted from winning new customers to the retention of existing ones

The Von Restorff effect was identified by Hedwig von Restorff in 1933. She conducted a set of memory experiments around isolated and distinctive items, concluding that an isolated item, in a list of otherwise similar items, would be better remembered than an item in the same relative position in a list where all items were similar. There can also be a reverse effect here. You remember the unique item, but the attention that it grabs from you is removed from other items thus you may in fact remember less overall. Hedwig’s work relates to Gestalt, where she related it to the Figure and Ground principles. Attention is usually captured by salient, novel, surprising, or distinctive stimuli. These may be used to enhance the von Restorff effect. In the ‘ attention age’, when the plethora of media around us is constantly battling for a moment of our time, advertisers make much use of this principle, each vying with the other to stand out from the crowd and hence be remembered by the target audience. The Von Restorff effect is also called the Isolation Effect or the Distinctiveness Principle. The same principle has also been described as prominence effects.

Traditionally there are two approaches to treating customer loyalty trough advertising. Some researchers have investigated the nature of different levels of loyalty through retention; others have explored the influence of individual factors on loyalty. In this paper, both treatments are combined to investigate which specific factors in the telecommunication sector influence the loyalty rate of the various customers segmented by loyalty. The potential for establishing loyalty depends on the object (i. e. product or vendor), on the subject (customer) or on the environment (market, other suppliers, etc.).

In broader term, for both, customer and manufacturing products firms, a firm’s ability to distinguish its products as of competitors and to build success brands is critical for achievement. As a consequence, firms may use more on their marketing infrastructure to raise the sales by attracting more consumers to the product group as a whole as healthy as by convincing current consumers to switch their purchases as of competitor’s products to the firm’s brand. Moreover, firms by means of strong brand names may be clever to charge best prices based on the additional worth of the brand which would too improve the firm’s profitability. Therefore, firms that connect in heavy marketing communication activities in advertising may show performance that is improved than those investing less powerfully in marketing infrastructure.

In a bigger scenario the advertisement is treated from two viewpoints: as advertisement specialists and customers. Advertisement specialists create decisions incident to preparation, creation and transmission of the advertisement. Customers on the other hand act in response to the advert which advertisement specialists have produced and the presented them. Following incorporating these two perspectives we be able to state that constant communication of advert and customer is experiential in the advertisement procedure. As marketing specialists move particular message to the customers while advertise incredible, the advertisement might be called communication procedure

There are several other reasons for a customer to respond absolutely to advertising. Advertising has the apparently magical property that persons whose tastes are most excellent served by a known brand are those most probable to observe an ad intended for that brand. Advertisers decide the media in which they advertise in fraction to maximize the purchase likelihood intended for their brand. In result the producer distributes his advertisements among media so that the communication is seen by persons who are most probable to repeat buy the particular brand. Advertising efficiency depends on users’ receptivity towards an ad and on their approach towards advertising. For turn out advertisement found out, person’s respondents with more positive attitudes towards advertising recalled a higher numeral of advertisements the day exposure”. In the internet, it is recurrent that advertising is used with levels of forced contact than only static banners whose level would contrast to print advertising of some type. Since higher intrusiveness leads to ad evasion and irritation, a fewer favorable attitude among customers advertising can be supposed. Presumptuous that the overall approach towards internet advertising is fewer favorable than towards print advertising, lower ad reminiscence can be expected. Customer Preference and acceptance in optimistic conditions mean the identical obsession but it is positive to keep the fad in mind with penchant notice to indicate choices between unbiased or valued options with receipt representing a readiness to stand the condition or less desirable options

Advertising is an imperative social phenomenon. It stimulates economic activity models, consumption, life-styles and an assured value orientation. Customers are confronted with daily amount of advertising in numerous media. With the constant hit of different marketing media, it is presumable that it will have an effect on society and individualism as a whole. Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages. Advertising may be placed by an advertising agency on behalf of a company or other organization.

Companies understand that marketing has an important role in their overall accomplishment. They recognize that if there are any functions near to customers its either Marketing or Sales. Sales develop into a direct interface among products of companies and customers, and on the other hand marketing is an indirect function between company and customers. Most researchers have implicitly assumed that a consumer uses the same criteria to evaluate all brands in a product class in Von Restorff effect. This study views the consumer as a more flexible information processor. The attributes an individual recalls or uses to evaluate a brand in a product class may vary. To some extent, attributes may be influenced by the advertisement the consumer sees for the brand.

There has been a strong support for the espousal of consumer retention in as one of the key performance indicators in Von Restorff effect. It has found that there is a high association between customer retention and the profit earn by the industries. The fragmentation of media choices and the active nature of the marketplace, tied with an enlarged number of additional demanding and prosperous consumers, brought bigger challenges to marketing practitioners in keeping hold of their regular customers. An advertisement may provide information about a brand on several attributes. Attention getting services such as bold type and arrows can draw attention to a particular attribute and away from others. Advertisement induced recalls may or may not translate into product use during a subsequent brand evaluation. Marketers have implicitly assumed that people who see advertisements encouraging recall of specific brand attributes will increase their use of that information for brand evaluation. One example of this is using recall of a claim to test advertisement effectiveness. Yet research in social cognition indicates that enhanced recall of an attribute does not necessarily imply increased emphasis on that attribute during a subsequent brand evaluation in Von Restorff effect.

In advertising, to get the attention of the packaging is the most important medium of communication because it reaches almost all buyers in the category and is present at the crucial moment when procurement decision is made; and buyers are actively involved with packaging as they examine it to obtain the information they need. A well suited packaging material works as an instrument to differentiate a product from a wide range of other products having similar qualities and helps customers to finalize his buying behavior. It can be claimed that package performs a vital role in marketing connections and can be treated as one of the most major feature to pursue consumer’s purchase judgment. In this context, seeking to optimize the effectiveness of package in a buying place, the researches of package, its elements and their impact on consumer’s buying behaviour became a relevant issue.

Due to emergent self-service and altering customers’ standard of living, their life style the awareness in package that includes size, quantity, color, shape as a mechanism of sales advertising and stimulator of spontaneous purchasing behavior is rising more and more. So package carries out an imperative role in advertising communications, in particular in the spot of sale and it is treated as the most significant features influence purchase decision of consumers. Earlier study has shown that there is no agreement on categorization of package basics as well as package impact on purchase decision of consumers.

The effects of prominent information in an advertisement may be mediated by several individual and situational factors that may mediate the relationship between prominence in an ad and the evaluative criteria used. Advertisements are read both by consumers who are interested in evaluating the advertised brands (brand processing) and by those who are not (non brand processing). Attribute information in an advertisement may be processed differently under brand processing and under non brand processing conditions.

Color is one of the most important non verbal signs. The impact of colors for the marketers through advertisement is very well recognized. When it is about products, it is become aware as one of the foreseeable signs of the whole look of products that also have an impact on the sales success of a product. Nowadays, it is fairly clear that products must not be designed just in order to meet up the functional needs of the customers but at the same time it must be attractive and eye catching as well. That is the main reason design is accentuate as a key marketing element. Conversely, colors do not merely lie in the aesthetics as it is strained that colors have two additional essential functions from a marketing viewpoint. The first use, it is suggested that colors draw attention to themselves by implying that color is the most necessary visual element in advertising. The subsequent purpose of colors that is highlighted is the position of colors as a way of communication. Hence, it is declared that colors have the skill to express meanings predominantly while it comes to such marketing phenomenon as advertising and packaging.

The graphics are any lines, metaphors, symbols, snaps, and text that narrate to the brand name. The most ordinary graphics in advertising are applications of figurative representation and abstract symbolization with the exclusion that make use of design drawings the most. Characteristics of design fundamentals may be grouped as functional and visual elements. Visual include form, text, pictures, colors and decorations and functional elements comprise structural designs (store, protect, reclose and open), material designs (display value and emotional appeal), volume designs (economy). Advertisement must also draw customer attention with visual elements that please consumer psychosomatic desires other than their main functionalities

Consumer attitude is a blend of perceptions, values and attitude. The customer must initial distinguish the product and then focus beliefs and values on top of the product and make a choice and then decide to purchase or not. Beliefs are more susceptible to marketing than values for the reason that beliefs are subject matter to emotion and knowledge.

Self perceptions of familiarity may affect the individual’s use of stored product class knowledge to interpret and integrate new brand information. This approach to familiarity is phenomenological; it focuses on the individual’s subjective perceptions rather than on an objectively verifiable reality. There is evidence that self perceptions of familiarity are not equivalent to objective measures of expertise or knowledge and that these self perceptions affect processing. If prominence directs subjects’ attention to a key attribute, it may direct attention away from other, non prominent attributes in the ad and this may, in turn, decrease recall of non prominent attributes.

An individual’s evaluation task while viewing an advertisement may affect the processing that occurs during exposure. Brand and non brand tasks may involve different processes, but both may facilitate the use of prominent information. Prominent information may greatly affect processing for those using a brand processing strategy. If prominent aspects of a stimulus are weighted more heavily in evaluations because they receive more attention during exposure, they might be used more by consumers who are focusing on the brand and its attributes-in other words, those processing for brand evaluation. Work in political science has found that people who are interested in politics and must decide for whom to vote are more likely than other people to be affected by the agenda-setting ability of mass media

Prominence may direct attention to particular stimuli or to particular aspects of stimuli. Under some circumstances, prominent stimuli may affect evaluations by directing processing. Researchers in political science provide some evidence by examining the agenda-setting role of the media during elections. The press may not be successful much of the time in telling people what to think, but it is stunningly successful in telling its readers what to think about. Numerous empirical studies demonstrate that readers’ perceptions of issue importance-as measured by self-report rating scales and open-ended elicitations reflect the emphasis these issues have received in the media to which they have been exposed. This does not mean that the media have affected voters’ priorities; perhaps people seek out media that concentrate on issues they feel are important. In addition to uncertainty about the direction of causal influence, we must also as-certain the strength of the link between issues people say are important and those they actually use to evaluate and elect candidates. Evidence shows that this link may be rather strong. If this is so, the agenda setting function of the media may provide an example of prominence affecting the degree to which some issues affect attitudes although, of course, media effects may also be due to direct arguments asserting that particular issues in news stories are the important ones.

Customer satisfaction and retention are the key elements for the planning of the marketing in view of the fact that satisfaction does sway customer’s intention to re-patronage the restaurant. Therefore, marketers are supposed to look into the issues that would have an effect on customer satisfaction intensity. Besides, as customer prospect are altering over time and it is advised to determine the customer satisfaction and expectation on regular basis and grip complaints timely and effectively.

An individual’s evaluation task while viewing an advertisement may affect the pro-cessing that occurs during exposure. Brand and non brand tasks may involve different processes, but both may facilitate the use of prominent information. Prominent information may greatly affect processing for those using a brand processing strategy. If prominent aspects of a stimulus are weighted more heavily in evaluations because they receive more attention during exposure, they might be used more by consumers who are focusing on the brand and its attributes-in other words, those processing for brand evaluation. Work in political science has found that people who are interested in politics and must decide for whom to vote are more likely than other people to be affected by the agenda-setting ability of mass media. Prominent information may also greatly affect processing for those using a non brand processing strategy. Someone called upon to evaluate a brand after processing the ad with such a strategy may simply use whatever information about the advertised brand “ pops into his head first”-that is, whatever is most easily recalled. In such a case, if prominence affects the attributes recalled, it may affect the criteria used to form attitudes as under low involvement, advertising influences brand choice by changing the salient attributes of the advertised brand.

Self perceptions of familiarity may affect the individual’s use of stored product class knowledge to interpret and integrate new brand information. This approach to familiarity is phenomenological; it focuses on the individual’s subjective perceptions rather than on an objectively verifiable reality. There is evidence that self-perceptions of familiarity are not equivalent to objective measures of expertise or knowledge and that these self perceptions affect processing. Those who consider themselves familiar with a product (high subjective familiarity) may feel they have stored criteria for brand evaluation. They are aware of their stored product knowledge and may use it to interpret and integrate attribute information presented in an advertisement. In contrast, consumers who consider themselves unfamiliar with a product (low subjective familiarity) may feel they lack stored evaluative criteria. Such consumer may not attempt to use whatever knowledge they do have when presented with data about a new brand, feeling that it is useless to try to evaluate such information. Product specific attributes may seem confusing and meaningless; instead, they may use information in the advertisement that is not product-specific. In some cases, they may use information about attributes that are normally used to evaluate objects in a more general class of products to which the unfamiliar product belongs or is related. For example, a consumer who feels s/he doesn’t know anything about shaving cream might use attributes appropriate for evaluating toiletries in general-such as scent-or those frequently found useful in evaluating products in general, such as price. In other cases s/he may, consciously or unconsciously, base brand attitude on evaluation of the advertisement itself.

Thus self-perceptions of familiarity may affect the use of attribute information in an advertisement, and consumers who consider themselves unfamiliar with a product may be relatively unaffected by prominence. They may find all product-specific attributes too confusing and meaningless to use, regardless of accessibility. In contrast, consumers who consider themselves familiar with a product may be affected by prominence; they may find it easy to integrate a new piece of information with stored data and may have the confidence to do so. If prominence affects the accessibility of this information, it may affect its use by this group.

A brand’s advertising can affect both the brand attributes recalled and those used for subsequent evaluations. In addition, advertisement induced recall due to an attention focusing tactic does not necessarily imply increased emphasis on that attribute during a subsequent brand evaluation. This suggests that it is useful for marketers to distinguish between processing which leads to recall and that which leads to attitude formation. The results imply that availability and use in attitude formation are not equivalent; elicitation procedures may not be appropriate techniques for obtaining the attributes used to evaluate brands.

Advertisers must always be on the lookout for new techniques or approaches to adequately disseminate their messages, and brand placement is becoming a more widely used form of communication. This practice has been a standard in the film and television industry and is now making its mark in the video game industry. Traditional media are losing speed, and thus the use of non-traditional media as a form of communication is becoming much more interesting for advertisers. To compete, it is almost becoming a must for advertisers to be present in these new forms of media and entertainment. Young adults are watching television less and less. This phenomenon is due to the emergence of new technologies such as personal video recorders (PVR), leading people to watch their favourite TV channels off line. Once viewers have recorded these programs, they can watch them without any advertising breaks. The audience fragmentation resulting from the emergence of specialized channels has also complicated the task of any advertisers attempting to reach mass numbers of people. Brand placement is defined as the inclusion, for promotion purposes, of a product, brand or company name within a film or television program content. The objective of this strategy is to increase brand recognition, and ultimately lead to a positive impact on purchase preference or intent. Most research on brand placement has focused on two major themes, namely placement effectiveness with four identified criteria that prominence, clarity, integration within scenario, location on screen.

For year’s advertisers and consumer behaviour researchers have studied the effects of advertisement on recall, attitude, and other evaluations related to the ad and the brand. This includes cognitive responses, such as attention, recall, brand preference, and brand evaluation. These areas of research reflect the growing convictions of many advertisers that consumers liking and disliking of an ad can influence its effectiveness regarding attention, recall, brand evaluations, other cognitive related responses, and reactions. For decision alternatives, consumers consistently acquire product information on product brand attributes available to them. Such information in marketing communications is often conveyed either in numerical and verbal modes or both. Results from past studies on information mode showed that judgments of numerical estimates and verbal expressions vary considerably across subjects. Despite the increasing importance of numerical information in marketing, the marketing and advertising literature is scant on the effects of numerical attribute information on consumer evaluation of products. In addition, research on the relationship between presentation forms and information mode has not been reviewed in the past, despite the growing importance of numerical attribute information and the persuasive nature of vividness in advertising. Hence, the importance of vividness in terms of ad evaluation is of interest. Although the effects of presentation form, vividness, in terms of its persuasive communication has yielded mixed results, this research attempts to examine and discuss the role of vividness and the mode of information used with the inclusion of a moderator, consumer knowledge, as a determinant of how consumers respond to product advertisement.

Consumers’ product knowledge is likely to affect product attribute information evaluations and recall in ways that are not entirely predictable. For example, consumers’ make judgments and decisions about products and services under conditions of uncertainty and only rarely complete information is available for all important features and benefits of a given product for them to make a decision. Studies have shown that the general interpretation of knowledge depends on individuals currently active knowledge structures. In the knowledge literature, accessibility of attribute information guides the interpretation of that information about the possible relationships among elements of product class. Furthermore, highly accessible attributes related to product information in the ad are likely to guide the encoding of the information.

Different consumers use different skills and strategies to evaluate information implying that variables such as individual difference in knowledge may be important moderators in information processing. Individuals might differ in their responses to arguments the message contains, with some people analyzing and reacting to each argument and others reacting mainly to the communication’s overall point rather than to the argumentation. It is hardly surprising that reactions to communications are highly variable, because individuals differ in disposition and in prior experiences they have had in relationships to the attributes in the ads, product category, and overall presentation contexts in which influence is exerted. This can affect their attitude and responsiveness to advertising. Possibly, a reason attributed to this responsiveness is that a consumer’s decision-making approach is made via different patterns as they gain knowledge through experience with a product. The moderating effects of consumer knowledge on processing and evaluation of numerical and verbal product attributes, and their interaction with vivid and non-vivid attribute information in advertising have also, until now, received little attention in the consumer behaviour literature. The effects of vividly presented information, for instance, vivid verbal or vivid numerical in an advertisement in general may be moderated by several individual and situational factors.

Effects of advertising have been examined in the past, although, the influence of numerical versus verbal information content in advertising has not been examined. Studies in the area of information mode have primarily compared numerical information to verbal information with respect to information processing, memory, preference, and comparative judgments. Although studies have examined various aspects of advertising message content and format, none of the studies in the literature cited has made an attempt to measure subjects’ attitude toward to ad, and recall tested for all verbal and all numerical modes. On the other hand, some studies have compared the differences between visual and verbal information and their effects on brand attitude prior to the studies focusing on the comparison of verbal and numerical information. Other researchers have examined the differences between verbal message format and visual formats in terms of their effects on information processing, memory and evaluations concerning the product.

Advertisers are aware that consumers are exposed to numerous amounts’ of uncertain information and that they must also use this information for making decisions irrespective of just choosing a specific mode of communication. It is therefore reasonable to expect that preferences for a particular mode of information will influence how the information is encoded, retrieved, and then processed during decision-making situations. Online marketing is altering the way advertising is conducted and provides firms with a new lay of capabilities. This is able to be attributed to online advertising no longer seen as an optional component for business, other than a strategic platform. Therefore, businesses should aspire for online marketing to be an integral fraction of the business disadvantaged. The presence and accessibility to a web site is middle to online marketing. Though, as the number of companies exploiting online advertising and the use of explore engine marketing grows, it is flattering more hard for businesses to attract web site traffic

The availability heuristic estimates frequency or probability by the ease with which instances or associations could be brought to mind.” Some of this may be relatively easy to access, although other information is less accessible. This accessibility or ease of recall is termed as “ availability”. If one can easily retrieve examples from memory, one infers that the event must be fairly frequent or common and/or well rehearsed. In order to make evaluations one needs to recall relevant information from memory. Information that is more available in memory will be utilized more in making the evaluation than information that is not readily available. In the areas of social cognition and evaluative processes the availability of information in memory has been seen to influence estimates and judgments.

Accordingly the techniques devised for assessing efficiency tend to be leaning to the way TV advertising is thought to effort. But there is evidence of effective advertising in turn out media like newspaper, magazines, pamphlets , bills also, and this account summarises a small of it . There is to apply more extensively to bills or any print advertising campaigns the disciplines of monitoring next to pre-strong-minded objectives. This applies both to periodical campaigns and too mixed-media campaigns which characteristic magazines as a substantial fraction of the mix. Furthermore in certain compliments the techniques of monitoring and of pre-difficult need to be modified to the distinctive method magazines work, than simply adopting the assumptions applied to TV. The variation in the efficiency of encoding and retention of information will certainly depend on the combined efficiency of a large amount of different complex processes. However, when opportunities arise for recall of the processed information, the availability of the information is emphasized. How then, might such properties and memory efficiency be related to other cognitive abilities? Is comprehension or interpretational ability just one aspect of general learning and memory? The issue of what, if any, relation exists between expertise and the ability to comprehend information for recall and evaluation is a complex one, to which relatively little research attention has been given. The objective is to detect the ability to manipulate information, perceived relations, and extract it from the memory for judgment. Consumers are aware of their stored product knowledge and may use it to integrate a new piece of information and properly retrieve them to interpret attribute information presented in the ad. On the contrary, consumers who are novices may lack the stored evaluative standard, and they may not use whatever knowledge they have when presented with a new piece of information about the product. They may feel it is useless to exert any kind of effort to process and evaluate the new information. Therefore novices use ad specific cues that are not product attribute oriented information because product attribute information may seem confusing and meaningless to them Customer satisfaction is defined as the consumer’s fulfillment response. Customer satisfaction leads to the customer loyalty so it is necessary to s

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