How Advertising Works

The conventional theory       

Initial Satisfaction => Advertising => Desire to fill latent or unmet needs => Purchase  => Greater Satisfaction

Advertising is paid non-personal communication that promotes a product, person, service, organization, or idea. Messages are generally created for large audiences, and conveyed through Mass Media.

Advertising generally falls into 2 classifications

Product

Product advertising is what we’re most familiar with. It informs us about new products, highlights the features and benefits, and publicizes the pricing and/or availability.

For example, 7-Up’s “un-cola” campaign highlighted the fact that 7-Up is most definitely not a cola. Its featured unique selling point was what it is not.

Institutional

Institutional advertising promotes ideas, political issues, and organizations.

For example, Chevron’s “people care” campaign to promote the idea that Chevron makes every effort to minimize their impact on sensitive habitats in which they drill for oil.

4 primary types of advertising

Competitive

This type generates demand for a product by highlighting the features and benefits using broad, generalized comparisons to competitive products.

Comparative

This type generates demand using direct comparisons to a specific competing brand or product.

Informational

These ads generate interest in new products by explaining uses and benefits, then promoting availability. Typically very helpful during the initial phase of the Product Life Cycle.

Reminder

Reminder advertising notifies consumers that specific products or services are still available. Typically used to reinforce prior advertising efforts and/or extend the product life cycle.