ARTICLE CRITIQUE OF AWAR-WINNING ADVERTISING ARTICLES
ARTICLE CRITIQUE: Can Companies Influence Investor Behaviour through Advertising? Super Bowl Commercials and Stock Returns
- Introduction
In using global advertising, companies hope to create consistent brand images worldwide, spend less marketing resources in producing unified appeals, and use only one or a few international agencies to handle the company's entire advertising (1994; 1991 1994). Multinational companies as well as local companies now use both global and local advertising (1996; 1990; 1999; 1995; 1995).
- Article Summary
In this article, the authors examine the likelihood of firms in utilising mass media advertising to target current and future shareholders and to potentially exploit short-term mood and attention effects using the case of Super Bowl. They also investigate the price and trading activity reactions to TV advertisements employed in 19 Super Bowl broadcasts. Further, they “document significant abnormal net buying activity among small traders for recognised Super Bowl advertisers’ shares indicating that it is the small investors who are predominantly attracted by the increased publicity”. In their findings, it has proven the classical effectiveness of advertising as a medium of promoting products or services not only to the target market but also to potential investors.
- Article Critique
I would like to support the findings of the study particularly when the authors recognized the potentialities of other forms of advertising. Indeed there are many forms of advertising today ranging from the traditional up to the contemporary media. Today, the advent of technological innovations among various industries as well as organisations introduces more efficient ways to advertise a product or brand in the market. Internet advertising is one of these innovative ways. Internet advertising or sometimes called, as web advertising is a type of advertising in which a person can control or customize the information according to his/her interest with the use of internet ( 2001). It provides instant interaction and connection to the consumers since the buyers or the audiences are the one who decides on what ad to view favourable to the field of their interest. The consumers are given the power to control the opportunity in establishing an on-line participation through the use of internet (1997; 2001).
In internet advertising, the companies are able to use different formats depending on the company’s preferred strategies on advertising their products or services. These formats come with the placement of the advertisement on banners, pop-ups, click through, sponsorships and others. Banners advertisements are described as ads placed on a rectangular-shaped graphics which is often seen at the upper part and the lower part of the webpage (1999). This format is the most common format of internet advertisement. Another format of internet advertisement is the pop-ups. This format shows in a separate window on top of content that is already on the user's screen ( 1999). With this kind of format, users do not have control on the appearance of the ad since this format were already program to be shown on the web and do not offer an option of deleting or escaping the ad because it is intended to show the ad to the user even if the user do not want to view the ad. One disadvantage of this format is that user may tend not to patronize the product or the advertisement being promoted since it interrupts the flow of work of the users however advertiser assumes that having this format will increase the awareness of the users since it will have a bigger chance for the users to recall the ad pop-ups. Sponsorship is another format of the internet advertising. It is coined as a indirect form of internet advertising that permit companies to achieve marketing objectives by connecting it with the key content ( 1999). Companies are jumping into this kind of format since they believe that it is a user-friendly approach of promoting and establishing the company’s products and services since it does not take too much time. The next type of internet advertisement is the hyperlink format or often called as the hypertext link which can be recognized easily since this type of advertisement format is the highlighted word or graphics in the web that permits the users to connect or linked in another websites by clicking on the hyperlink. This format does not require too much space on the web since most hyperlinks are only presented through text.
Internet advertising is just one of the most effective formats of advertising brands, products, and services. All in all, advertising is always directed to the eventual market success.
- Conclusion
In general, the article of provided a good review of various literatures that support the effectiveness of advertising particularly in influencing investors’ behaviours. (2002) supports my argument in favour to the findings of the research, as “differing advertising tasks can be involved when pursuing investors, sponsors, business-to-business customers, e-commerce, politicians, or general PR” (). The effectiveness of advertising in relation to influencing invertors’ behaviour is optimistic. Hence, it is highly recommended. However, I would like to suggest that the findings of this article will be more interesting if they used two or more cases. This is to facilitate more diversified yet relevant body of knowledge.
ARTICLE CRITIQUE: Advertising Market Structure and Performance
- Introduction
Advertising is bringing the company’s products and services to the mindset of the target market (1999; 2001; 2002) using different mediums like TV, radio, internet, and print media. It refers to the paid promotion of goods and services through a sponsoring organization or company using statements and slogans (1961) that are appealing to the target people. This kind of advertisement is also considered as a myth about myth ( 1994). According to (1972), the process has been recognized as a “major vehicle of social communication in modern Western society ().” There are commonly three main objectives of advertisements: (1) conveying relevant information regarding a particular product or service; (2) persuading consumers to purchase the advertised product; and, (3) keep the company under the watchful eyes of the public ( 2002). In a general sense, advertising is being utilized to be able to impart to the consumers the availability of a particular product. In a way, it is also able to provide critical information regarding the product. When an advertising campaign is achieved effectively, this can lead to an increased demand for the product.
- Article Summary
This article is about “the role of advertising in consumer goods industries”. The authors probed that “advertising has a statistically significant and quantitatively important impact upon profit rates which provide a measure of market performance as well as indicate the existence of market power”. Their findings are relatively similar to the first article but theirs focuses on profit rates among industries.
- Article Critique
It is important to note that this article is supported its findings by discussing other dimensions like market concentration, height of entry barriers, and product differentiation. With credible correlation techniques, there is no question that advertising if used in the most effective way will result to maximum success in favour of its users and area of implementation. Advertising is viewed as a tool that facilitates a consumer’s decision-making by making available information that will provide a buyer a line of choices from which he will pick those products and commodities that will satisfy his need state (1978). Furthermore, advertising also helps promote market competition which, in turn, widens the range of product options and brands that are brought to the attention of the consumers. This, according to Tuerck minimizes, if not eradicates, the possibility of one marketer to gain sole control and domination over one market segment.
- Conclusion
The nature of advertising is to successfully convey the brand’s message to the consumers and effectively established the products and/or services being rendered. Primarily, advertising is used for the purpose of increasing the products sales, enhance the product’s image, and develop the trust of the consumers in the product or service being advertise. This must be the ultimate goals of the process.
ARTICLE CRITIQUE: The Economics of Advertising (Introduction)
- Introduction
The effectiveness of the medium (1997) as utilized by the organisations can be measured by the level of success being attained in meeting their desired goal to create changes on the consumers’ attitudes and behaviours after the exposure to the advertisement. Illustration of these changes are manifested by the consumer’s heightened awareness to the products or services, increase in sales and profitability, growth of target market base, positive feedbacks from the consumers and an increase of the public agreement with the advertisement message. This can explain the economics of advertising – how advertising affects organisational growth particularly in terms of financial capabilities.
- Article Summary
Bagwell provided a comprehensive discussion of advertising in connection to its economic perspectives. He provided economic point of view to various aspect of the organisation. A consistent presentation of historical overview of economic analysis of advertising; analysis of advertising in relation to persuasion and welfare and information and welfare; and theoretical and empirical analysis of advertising and search goods, product quality information, and market structure. Since it was just an introduction, there are no significant findings apart from the other author’s or authors’ conclusions.
- Article Critique
I have nothing to say with the facts presented by the author as it constitutes the principles of the process particularly in relation to economic standpoint. As a drawback of the article, I am looking for the role of consumers in the economic analysis of advertising. I believe that the consumers are important factors in any advertising attempt.
Advertising impressions may be visual, verbal, or emotional especially in the part of the consumers. The Relevance-Accessibility Model of Advertising Effectiveness (RAM) presumes that the primary purpose of advertising is to present information that will give the brand a relative advantage over competing brands at the time of brand choice (1993). The RAM has two assumptions: firstly, elements of the advertising message must be accessible at the time of brand choice to be effective; and secondly, advertising information must be relevant to be effective. It views brand attitudes, judgments, or preferences formed at the time of advertising exposure as potential mediators of brand choice ( 1993). There is what is called the “pure effect” – a level that refers to "free-floating" feelings and emotional responses that are consciously unlinked to any specific brand attributes, benefits, and past promotional (e.g., advertising) or usage experiences, at least at the time of brand choice. Such affect provides no real evidence of either absolute or relative product quality, but consumers may interpret it as such. When individuals make decisions based on pure affect, they are reacting solely to a feeling, not on the information that led to that feeling ( 1993). Positive feelings intrinsically motivate approach behaviour; negative feelings motivate avoidance behaviour (1972;1980).
Like business, consumers are concerned with their own image. They want to be seen in a favourable light. The consumer's interest lies in his self-image -- the image he/she has and would like to have of himself (1971). In reacting to marketing stimuli and in making purchase decisions, consumers will readily accept those activities that enhance or relate positively to consumer self-image. Similarly, if an advertising or selling campaign is created that enables the consumer to identify favourably with the situation presented, then the campaign is more likely to be successful. The values that form or furnish the basis of self-image and identification are fundamental to the cultivation of effective marketing programs, but they are hidden and hard to detect, even with psychological instruments (1971). I believe if Bagwell provided the role of consumers in the economic analysis of advertising, it is more than compelling.
- Conclusion
It is always important to know the characteristics and nature of the consumers likewise to products and services offered by any advertising campaign because this will guarantee the success of the marketing strategy specifically in terms of financial revenue. But knowing the product alone can be detrimental any marketing plan if the advertisers and the manufacturers themselves have no idea of the new target market they are trying to penetrate. The products should be correctly classified as to whether they will be sellable in the new market should be a constant thought and reminder to the advertisers and business organization with plans of gaining entrance and share of clients and consumers in a particular market setting.
The people who will be responsible in executing the said project should be sensitive enough to investigate on the local environment. The same advertising campaign does not necessarily mean that the strategy, plans and approached that will be utilized is similar. Too much generalization about a locality and the people who will be the target of the campaign may post danger on the success of the project. It is important to get close to the audience by knowing their culture. The consumers of mass communication messages today are active and critical in the simple choices they make. The mere purchase of everyday necessities has proved to be crucial in analyzing the consumer market at present.
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