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How Advertising Works: What Do We Really Know?

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How Advertising Works: What Do We Really Know?
How does advertising work?

Introduction
Advertising is a very important tool in order to make sure a product will be sold and to make sure a company is earning money. It is also one of the most important tools in order to get customers to buy a product or want a service.
Ineffective advertising can not only cost the company a lot of money but it can even have a negative influence on the image customers have on a product or brand.
So how to set up an effective and positive advertisement is something that has a very high priority in every business. In order to create that positive advertising campaign you need to know what the do and don’ts are and which pitfalls need to be avoided.

I consider it very important to know what advertising exactly means and what the definition of the word advertising is. Advertising is a paid form of communicating a message by the use of various media. It is persuasive, informative, and designed to influence purchasing behavior or thought patterns. The message send in those media could than be called an advertisement. (Carter McNamara, MBA, PhD, 2007) Companies spread a message and that message need to be picked up by the target audience. This audience need to be researched first in order to send a message that is understood and accepted by those who the company assumes will buy the product or service. These groups or audience can be differentiated by gender, age, cultural background, religion, social status or many more examples.

We can classify the effects that advertisement has in two categories; intermediate effects and behavioural effects. Intermediate effects are summarized into consumer beliefs and attitudes. The feeling and association people have with a certain brand or product and the attitude they have towards it. Behavioural effects are coping with the behaviour of customers. This could be purchasing behaviour and brand choice. This report will cover both of the effects that could be reached by advertising.
Because



References: Egan, J. (2007). Communications Theory. In: Marketing Communications. London: Thomson Learning. p29-46. Lambert, D (2010) lecture slides Communications theory. University of Westminster Narula, U (2006). Handbook of communication: models, perspectives, strategies. New Delhi: Atlantic. p. 11-44. Vakratsas, D & Ambler, T. (1999). How Advertising Works: What Do We Really Know?. Journal of Marketing. 63 (1), p. 26-43. Unknown. (2010). What is business communication and the AIDA model. Available: http://www.corporatejourney2u.com/business/business-communication-and-the-aida-model.html. Last accessed 27/10/2010. Unknown. (2010). The AIDA model. Available: http://drypen.in/advertising/the-aida-model-to-convey-communication-objectives.html. Last accessed 27/10/2010. Wikimedia.org (2010) Schramm communication model. Available: http:// www.wikimedia.org Last accessed 27/10/2010.

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