...ASSESSING ADVERTISING EFFICIENCY Does the Internet Play a Role? Albena Pergelova, Diego Prior, and Josep Rialp ABSTRACT: This research focuses on a major concern for marketers addressing the claims of inefficiency of spending on advertising. We examine whether the Internet can help increase overall advertising efficiency. Using a sample from the Spanish automobile industry, we combine a nonparametric method—Data Envelopment Analysis—with recent important insights from statistics and econometrics studies, and find that online advertising improves the efficiency levels and that this effect is more pronounced in the long-term temporal framework. During the past few decades, expenditures in manufacturing and general management have been declining while marketing costs have risen (Sheth and Sisodia 1995). From a “budgetary” context perspective, the biggest part of marketing expenditures usually goes to advertising and promotion (Ambler 2000). Some empirical evidence suggests that in the long term, advertising has a positive effect on differentiation and brand equity, while this is not the case for promotion (Boulding, Lee, and Staelin 1994; Jedidi, Mela, and Gupta 1999). Although recent studies have found that promotion has a role in building brand knowledge (e.g., Palazón-Vidal and Delgado-Ballester 2005), the “traditional wisdom” of advertising enhancing brand equity has given rise to very high amounts of advertising budgets. However, researchers claim that advertising is “rife...
Words: 4914 - Pages: 20
...COMPARATIVE ANALYSIS OF THREE COMMUNICATION FORMATS: ADVERTISING, INFOMERCIAL, AND DIRECT EXPERIENCE (2000). BY MANDEEP SINGH, SIVA K. BALASUBRAMANIAN & GOUTAM CHAKRABORTY Article review and analysis: 1 – Motivation, goals, contribution. 2- Context. 3 - Elaboration and illumination of theory and results. 4 - Critical review, limitations and further thought. Group: 3.08 Assignment Theoretical assignment Date: 5.11.2014 1 1. Motivation, goals, contribution The article aims at making a comparative analysis between three different communication formats used in advertising, and assess their relative effectiveness on a continuum. The three communication formats are direct experience (DE), television ads, and infomercials. The authors build on previous work to explain the similarities and differences of infomercials and ads / DE, and imply that it is interesting to examine the moderating / mediating effects each medium’s features has on consumer attitudes and intentions. (For example, length, persuasive intent, physical interaction, etc. – how does each effect consumer’s attitudes?). The reasoning behind the choice of these specific formats is that infomercials are a “natural” middle ground, as they combine both television advertisements and DE features (while, they assume beforehand, most likely closer to DE, which is also what they find in their experiments). The motivation for the study is twofold: novelty and useful practical implications. Novelty / research gap: Previous...
Words: 2334 - Pages: 10
...Controversial issues in the media Controversies are a part of the American if not global landscapes. The thought makes one wonder if our value and belief systems are shaped by mass media. That may be close to the truth. With computers, laptops, cell phones, I-pads we are connected to the media in some form and want our news as fast as possible. The more horrific the story, the more interest is generated in knowing the outcome. Nature of the controversy In 2009, a young dating couple had a physical fight that made national news. The couple in question- music superstars Chris Brown and Rihanna. Every paper covered the assault and had pictures of the bloodied Rihanna with blackened eye, split lip, and bite marks. The scandal percolated to an all-time high and Chris Brown was charged with assault. Later the public would discover the charges were for sexual assault. Many celebrities have misunderstandings and some have been victims. Controversy sells and we want to know what happened- the media is willing to oblige. Traditional journalism The traditional factors of newsworthiness include proximity, future impact, prominence, conflict, human interest, and timeliness. According to John Vivian “ not only do people in their contemporary lifestyles need mass media, but the industries that have built up around media need an audience” (Vivian, 2011, p. 6). News for the public has the following ideology, “news is based on some inherent bias: the media role as watchdog, and a lack...
Words: 2850 - Pages: 12
...HOW ADVERTISING WORKS Peter Voyer wrote this note solely to provide material for class discussion. The author does not intend to provide legal, tax, accounting or other professional advice. Such advice should be obtained from a qualified professional. lvey Management SeNices prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact lvey Publishing, lvey Management SeNices, clo Richard lvey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2007, lvey Management Services Version: (A) 2007-08-08 In order to design and implement effective marketing communications, managers must develop a solid understanding of consumer behavior in general, and consumers' interpretation of and response to advertising in particular. Consequently, this note presents a useful perspective on understanding how advertising works from a consumer point of view. The note takes the perspective of the elaborationlikelihood model (ELM) developed by Petty and Cacioppo. 1 Understanding how advertising works is important for students, academics and managers alike. Many marketing and consumer behavior researchers devote substantial research to the study of advertising. Advertising is a...
Words: 5483 - Pages: 22
...Industry 4 2.1 Analysis and Evaluation of industry Strategy 4 2.2 Global Forces that Impact the Industry 5 2.3 Importance of an Effective Strategy 5 3. Environmental Analysis and the Strategy 6 3.1 Corporate Strategy 6 3.1.1 Evaluation of Current Strategies 7 3.2 Analysis of the Internal Environment 8 3.3 Analysis of the Resources and Capabilities 9 3.4 Analysis of the External Environment 10 3.5 Proposed Change Strategy 11 4. The Relevance of Strategy Models/Frameworks 11 4.1 Discussion and Application of the Models 11...
Words: 3104 - Pages: 13
...Puffery in Advertisements: The Effects of Media Context, Communication Norms, and Consumer Knowledge ALISON JING XU ROBERT S. WYER JR. Ads often contain puffery—product descriptions that purport to be important but actually provide little if any meaningful information. Consumers’ reactions to these descriptions depend on whether they perceive themselves to be more or less knowledgeable about the product than others whom the ad is specifically intended to influence. When an ad appears in a professional magazine that is read primarily by experts in the product domain, puffery generally increases the ad’s effectiveness. This is also true when the ad appears in a popular magazine but readers perceive themselves to know less about the product than consumers at large. If readers believe they know as much as or more than general consumers, however, puffery decreases the ad’s effectiveness. In addition, the media context in which an ad is encountered has a direct effect on judgments by consumers who perceive themselves to have little knowledge about the type of product being advertised. O magazines, such as Dairy Field and Dairy Foods, which are primarily read by processors and suppliers in the dairy food industry. Dannon is not alone in using promotional materials that consumers do not understand. In some cases, advertisements describe technical details that are only appreciated by experts in the product domain to which the ads pertain. Other attribute descriptions...
Words: 11537 - Pages: 47
...Social Media and its Impacts on Consumer Relationship Management: An Investigation of Product Recommendation: A Case Study of Nike and Facebook Simon Karuku Freelancers Union Abstract The purpose of the research was to define critically the efficiency of social media and the role it plays in impacting consumer relationship management. The study first looks at the works of many scholars in analyzing the effectiveness of social media over traditional media. Thereafter a critical analysis of the strategic differences between the two types of media with a greater emphasis on social media as a marketing tool. Consumer relationship management entails the strategies, practices and technologies that have been used by different companies so as to analyze and manage data and consumer interactions throughout the lifecycle of the consumer. Its goal is to improve on business relationships that greatly exist with customers thus assisting the retention of the customers and also the driving sales of growth. Traditional media is also essential as it helps capture the advertisements and is able to reach millions of people within a span of time with no bias on the social economic status on the different people. Social media is however more flexible than traditional media and is greatly used on a large scale purposes especially in marketing of products and the effective recommendation of different products to different consumers. The rise and shine of social media has been...
Words: 13765 - Pages: 56
...THE CONSEQUENCES OF MASS COMMUNICATION Cultural and Critical Perspectives on Mass Media and Society Kirk Hallahan ii For Jean and Jenna Copyright info to be set by McGraw-Hill. iii Foreward This book is a brief survey of contemporary ideas about the cultural impact of mass media on society. The use of consequences in the title reflects the fact that most cultural researchers prefer this term (instead of media effects) to describe media's influence on human experience. During the past 30 years, culture has emerged as a major theoretical framework in which to investigate media. Chapter I examines how media influence culture generally, as suggested by various contemporary media scholars and others. Chapter II then focuses on critical-cultural theories about the nature of media power and its potentially negative influence. This book can adopted as a supplementary text in introductory mass media courses along with a survey text such as Joseph R. Dominick's The Dynamics of Mass Communication (available from McGraw-Hill). It also can serve as a foundational text for other assigned readings in advanced courses dealing with mass media and society, communication theory, or cultural studies. Students are encouraged to focus thoughtfully on the main ideas, not attempt to merely memorize details. Important concepts and names appear in boldface and are defined in italics. The abridged Subject Index lists the page with the primary discussion of each topic. Sidebars throughout...
Words: 41097 - Pages: 165
...organizational reform from decentralizing to centralizing editorial power in some divisions of the newspaper, I …nd three main results: 1) centralization improves the quality of the journalists’performance, in terms of the newspaper’ inters nal assessment and the external measures of news content; 2) centralization reduces the journalists’activities for private gain; 3) centralization decreases the editorial activities conducted by managing editors. These results are in line with the theory: a more centralized hierarchy achieves better control over workers’ opportunistic behaviour, at the cost of depressing middle managers’initiative. Key Words: Authority, Organizational Structure, Incentives, Information, Action Distortion, Decision Bias, Media Bias JEL Classi…cations: D2 J5 L2 M5 Economics Department and Centre for Economic Performance, London School of Economics, Houghton Street, London WC2A 2AE, UK. Email: y.wu8@lse.ac.uk. I am extremely grateful to Oriana Bandiera, Luis Garicano, Stephen Redding and Daniel Sturm for their encouragement and support throughout this project. I would also like to thank Marianne Bertrand, Jordi Blanes i Vidal, Robin...
Words: 21296 - Pages: 86
...Appraising Internationality in Spanish Communication Journals ´ david ferna ndez-quijada This article explores how journals published in a language other than English achieve a degree of internationality and can increase our knowledge of scientific publication patterns. This author offers a case study focused on Spanish communication journals from a sample of 1182 articles published from 2007 to 2009. The article examines three variables in this sample: the number of non-Spanish scholars, the use of languages other than Spanish, and how often non-Spanish journals are referred to. The results show that (a) these journals find it difficult to attract foreign scholars, (b) open-language policies have had a limited effect, and (c) internationality is constrained to the Spanish geolinguistic region. Keywords: internationality, local journals, Spanish scholarly journals, journal evaluation, communication sciences introduction The impact of published research is measured by means of well-established tools; one such tool is the Social Sciences Citation Index (SSCI). However, in the field of communication studies — and in fact in all the social sciences — the SSCI does not take account of all the research published; this is particularly visible in cases where research is published in languages other than English. For example, in 2009, only 81 out of the 1585 articles (5.11 per cent) indexed in the Communication category of the SSCI were not written in English. In the context of these...
Words: 5814 - Pages: 24
...Journal of Advertising, 44(1), 37–46 Copyright Ó 2015, American Academy of Advertising ISSN: 0091-3367 print / 1557-7805 online DOI: 10.1080/00913367.2014.934938 Integrated Marketing Communication Capability and Brand Performance Sandra Luxton Swinburne University of Technology, Hawthorn, Australia Mike Reid RMIT University, Melbourne, Australia Felix Mavondo Monash University, Clayton, Australia Barney 2003; Wu 2010). Previous studies describe the IMC process as a marketing capability because it combines and converts tangible and intangible inputs into outputs (Ratnatunga and Ewing 2005; O’Cass and Weerawardena 2010). In this sense, IMC is a market-relating deployment mechanism that enables the optimization of communication approaches to achieve superior communication effectiveness, which has other downstream benefits (e.g., brand and financial performance). The development of an IMC capability is likely to be felt through better performing campaigns, which in turn result in improved brand outcomes such as market position and financial performance (Duncan and Mulhern 2004; Reid 2005). Given the competitive challenges facing most firms, it is vital that brand managers and their agencies identify and react to competition and growth opportunities rapidly by building and sustaining marketing capabilities strategically and linking these directly to organizational objectives (O’Cass and Weerawardena 2009). Despite much conceptual work around defining IMC and theoretical posturing about...
Words: 7960 - Pages: 32
...Harvard Business School 9-598-061 Rev. November 1, 2000 Note on Marketing Strategy Long ago, Peter Drucker wrote that any business enterprise has only two basic functions: marketing and innovation.1 All else, he implied, was detail. The central role of marketing in the enterprise stems from the fact that marketing is the process via which a firm creates value for its chosen customers. Value is created by meeting customer needs. Thus, a firm needs to define itself not by the product it sells, but by the customer benefit provided. Having created the value for its customers, the firm is then entitled to capture a portion of it through pricing. To remain a viable concern, the firm must sustain this process of creating and capturing value over time. Within this framework, the plan by which value is created on a sustained basis is the firm’s Marketing Strategy. Marketing Strategy involves two major activities: (i) selecting a target market and determining the desired positioning of product in target customers’ minds and (ii) specifying the plan for the marketing activities to achieve the desired positioning. Figure A presents a schematic describing a general process of marketing strategy development. As shown, five major areas of analysis underlie marketing decision making. We begin with analysis of the 5 C’s— customers, company, competitors, collaborators, and context. We ask: Customer Needs Company Skills Competition Collaborators Context What needs do we seek to satisfy?...
Words: 7380 - Pages: 30
...Harvard Business School 9-598-061 Rev. November 1, 2000 Note on Marketing Strategy Long ago, Peter Drucker wrote that any business enterprise has only two basic functions: marketing and innovation.1 All else, he implied, was detail. The central role of marketing in the enterprise stems from the fact that marketing is the process via which a firm creates value for its chosen customers. Value is created by meeting customer needs. Thus, a firm needs to define itself not by the product it sells, but by the customer benefit provided. Having created the value for its customers, the firm is then entitled to capture a portion of it through pricing. To remain a viable concern, the firm must sustain this process of creating and capturing value over time. Within this framework, the plan by which value is created on a sustained basis is the firm’s Marketing Strategy. Marketing Strategy involves two major activities: (i) selecting a target market and determining the desired positioning of product in target customers’ minds and (ii) specifying the plan for the marketing activities to achieve the desired positioning. Figure A presents a schematic describing a general process of marketing strategy development. As shown, five major areas of analysis underlie marketing decision making. We begin with analysis of the 5 C’s— customers, company, competitors, collaborators, and context. We ask: Customer Needs Company Skills Competition Collaborators Context What needs do we seek to satisfy?...
Words: 7380 - Pages: 30
...intense industry interest, academic researchers have explored a number of different brand-related topics in recent years, generating scores of papers, articles, research reports, and books. This paper identifies some of the influential work in the branding area, highlighting what has been learned from an academic perspective on important topics such as brand positioning, brand integration, brand equity measurement, brand growth, and brand management. The paper also outlines some gaps that exist in the research of branding and brand equity and formulates a series of related research questions. Choice modeling implications of the branding concept and the challenges of incorporating main and interaction effects of branding as well as the impact of competition are discussed. One sentence abstract Much research...
Words: 16604 - Pages: 67
...Harvard Business School 9-598-061 Rev. November 1, 2000 D Note on Marketing Strategy O Long ago, Peter Drucker wrote that any business enterprise has only two basic functions: marketing and innovation.1 All else, he implied, was detail. The central role of marketing in the enterprise stems from the fact that marketing is the process via which a firm creates value for its chosen customers. Value is created by meeting customer needs. Thus, a firm needs to define itself not by the product it sells, but by the customer benefit provided. N Having created the value for its customers, the firm is then entitled to capture a portion of it through pricing. To remain a viable concern, the firm must sustain this process of creating and capturing value over time. Within this framework, the plan by which value is created on a sustained basis is the firm’s Marketing Strategy. Marketing Strategy involves two major activities: (i) selecting a target market and determining the desired positioning of product in target customers’ minds and (ii) specifying the plan for the marketing activities to achieve the desired positioning. Figure A presents a schematic describing a general process of marketing strategy development. As shown, five major areas of analysis underlie marketing decision making. We begin with analysis of the 5 C’s— customers, company, competitors, collaborators, and context. We ask: O What needs do we seek to satisfy? Company Skills What...
Words: 7500 - Pages: 30
