56 lines
6.7 KiB
Markdown
56 lines
6.7 KiB
Markdown
---
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title: "Advertising"
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chunk: 8/10
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source: "https://en.wikipedia.org/wiki/Advertising"
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category: "reference"
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tags: "science, encyclopedia"
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date_saved: "2026-05-05T15:17:24.147481+00:00"
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instance: "kb-cron"
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---
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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, maximizing 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.
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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 contribute to its success is how economies of scale are maximized. 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.
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== Purposes ==
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Companies and organisations have a number of business goals they wish to achieve. Broadly, advertising is used to help achieve these objectives. Advertising delivers a message to customers and prospective customers. Advertising predominantly informs consumers about a product or service to convince customers that their offerings are the best, to enhance the image of the company, to demonstrate new uses for established products, to promote new products/services, to draw customers to the business, and to retain existing customers. A successful advertising campaign initially defines a clear purpose. Common objectives include:
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=== Brand awareness ===
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This consists of advertising which aims to increase the number of people who know about (recognise and recall) a brand. This purpose will impact the type of channels/media and ad formats selected to achieve greater brand awareness. This type of objective can include creating awareness of new features a brand is offering, such as improving the in-store experience.
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=== Customer retention ===
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Typically a broader marketing activity, advertising campaigns can contribute to companies retaining existing customers. Such advertising may promote customer loyalty schemes and can involve showing personalised offers and promotions.
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=== Lead generation ===
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This involves a business or organisation conducting an advertising campaign where the purpose is to collect information such as name and email addresses, which constitutes a 'lead'. This can involve providing downloadable content or running webinars. Advertising effectiveness is measured by establishing the cost per lead. This data is then used for marketing activities with the aim of converting the prospect/lead to become a customer.
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=== Sales promotions ===
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Sales promotions are another way to advertise. Sales promotions are double purposed because they are used to gather information about what type of customers one draws in and where they are, and to jump start sales. Sales promotions include things like contests and games, sweepstakes, product giveaways, samples coupons, loyalty programs, and discounts. The ultimate goal of sales promotions is to stimulate potential customers to action.
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== Theory ==
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=== Hierarchy-of-effects models ===
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Hierarchies of effects models attempt to theoretically explain that consumers go through a number of stages, that can be prompted by advertising, before purchasing a product or service.
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The model of Clow and Baack clarifies the objectives of an advertising campaign and for each individual advertisement. The model postulates six steps a buyer moves through when making a purchase:
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Awareness
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Knowledge
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Liking
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Preference
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Conviction
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Purchase
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Means-end theory suggests that an advertisement should contain a message or means that leads the consumer to a desired end-state.
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Leverage points aim to move the consumer from understanding a product's benefits to linking those benefits with personal values.
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=== Marketing mix ===
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The marketing mix was proposed by Harvard Business School professor Neil H. Borden and expanded on, and popularized by professor E. Jerome McCarthy in the 1960s. It consists of four basic elements called the "four Ps". Product is the first P representing the actual product. Price represents the process of determining the value of a product. Place represents the variables of getting the product to the consumer such as distribution channels, market coverage and movement organization. The last P stands for Promotion which is the process of reaching the target market and convincing them to buy the product.
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The concept of the four Cs was introduced as a more customer-driven replacement of the four P's. There are two theories based on the four Cs: Lauterborn's four Cs (consumer, cost, communication, convenience) and Shimizu's four Cs (commodity, cost, channel, communication). Shimizu expanded the four Cs, to the 7Cs Compass Model by adding company or competitor, consumer and circumstances, to acknowledge the impact of competition, consumers who are not customers and circumstances beyond a companies control.
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=== Research ===
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Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. It entails numerous forms of research which employ different methodologies. Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns.
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Pre-testing includes a wide range of qualitative and quantitative techniques, including: focus groups, in-depth target audience interviews (one-on-one interviews), small-scale quantitative studies and physiological measurement. The goal of this research is to better understand how different groups respond to various messages and visual prompts, thereby providing an assessment of how well the advertisement meets its communications goals.
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Post-testing employs many of the same techniques as pre-testing, usually with a focus on understanding the change in awareness or attitude attributable to the advertisement. With the emergence of digital advertising technologies, many firms have begun to continuously post-test ads using real-time data. This may take the form of A/B split-testing or multivariate testing. Continuous ad tracking and the Communicus System are competing examples of post-testing advertising research types.
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=== Semiotics === |