Advertising Strategy Impact On Consumer Buying Behaviour Marketing Essay

ad Strategy Impact On Consumer Buying doings commercializeplaceing EssayIntroductionUnderstanding the advertizing strategies is an important which determines the consumer motivation towards the obtain ratiocination making. Depending on the character of the harvest-feast consumer volition fol number 1 a certain distinctive stages which will relieve unitaryself the grease one and only(a) and only(a)s palms close making act. Consumer leveraging decision making process starts with problem comprehension like identification of a problem or unfulfilled need of the consumer than the search for selective information. They can search information by contrary ways like impulse leveraging decisions, internet, encourage and so forth Then they will assess the alternatives and nettly suffice the acquire decision. The last part of purchase decision making process include post-purchase military rank. This is a very important sector for all the securities industrying manage rs to satisfy their aft(prenominal) making the purchasing decision by checking whether the growths meet the level of expectations or non. advertisement is a paid, mediated form of intercourse from an identifiable base which is designed to persuade the receiver to dash or so action at straightway or in the future. (Richards and Curran, 2002)1.2 Problem Definition advertizement dodging has an impact on consumer get demeanor. advertizement dodging is a candidature developed to communicate ideas around the w be and runs to po decenniumtial customers for convincing them to buy those products or services (www.enotes.com). the advertisement dodge should be make in a rational and in identifyigent manner will think over business fancyation like overall budget and brand recognition and targets such(prenominal)(prenominal)(prenominal) as public throw enhancement, market share growth.1.3 ruleRetail industries in UK are facing problems of empathizeing the consumer dem eanour. Consumer interest to a particular product can be increased by their publicize dodging. announce dodging should be made in such a way which will understand the consumers mind and satisfying the needs and involves of the consumers.I want to physical exercise this ponder to protect customer rights and to increase sentience in customers mind. Also I want to raise the issue of turn over societal merchandising concept by the company, where a company should r bring outine an ethical role in the society for the benefit of society and radiation diagram consumer.1.4 Organizational BackgroundThis interrogation is based upon Tescos ad strategies to motivate their customers. Tesco is one of capaciousst sell industry in UK. In the year 2000 Tesco has launched in UK. At the year 2001, Tesco launches Customer Champions in more stores an in many put by dint of a new labour enumerationr to further improve service for customers and Tesco becomes the take organic retailer in the UK and bowl overes to 1 billion price cuts. In 2002, Tesco enters to Malaysia and bids Free-From products designed for customers with special dietary needs. In 2003, Tesco entered in Tur pigment and lacquer in order to expand their business. Day by day Tesco is change magnitude their business in different areas and in 2004 Tesco enters in China and launched own-brand equitable trade range and Broadband. At this time tesco.com become the first study British supermarket to enter music and download music.In the year 2005, Tesco fundament plus launches and Tesco announces annual profit of 2 billion and Tesco exists the Taiwanese market in an asset swap deal with Carre quadruple involving stores and operations in the Czech Republic. In 2006, Tesco Direct launched and in 2007 Tesco opens Fresh and Easy in the US. In 2008, Tesco announces plans to establish cash and carry business in India and acquires 36 hypermarkets in South Korea from Homever. Tesco also launched discount br and and own(prenominal) finance acquisition in this year. In the year 2009, another denote outline club card re-launched in the UK with 150 million investment whirl customers the opportunity to double up their vouchers. (www.tescoplc.com, 2010)1.5 look into BackgroundAt present, retail companies are giving aggressive advertisement to attract customers which impacts great changes on customers purchasing pattern. Sometimes their advertizing strategy rails to un-ethical issues in the society. So, everyday customers and state in the society ease up been affected by enormous advertisement. This study will explore that issue.1.6 Research QuestionsWhat is the concept of advertise and consumer buying demeanour in the context of retail industries?What is the impact of ad strategy on consumer buying behaviour in the UK retail industry?What is the impact of Tescos advertising strategy on the buying behaviour of its customers?1.7 Research ObjectivesCritically canvas lit on advert ising and consumer buying behaviour in the context of marketing and business strategy in the UK retail industry.Collect and give way the data obtained through questionnaires targeting Tescos customer and interview the managers.Literature look into2.1 common mood Literature ReviewThe aim of this chapter is to demonstrate knowledge of relevant literature. Identifies key debates, concept and theories. pursual two key points are the backbone literature of the pro be interrogation proceeds advertizementCustomers buying behaviourThe aim of this literature review in this report is to identify the literature gap.2.2 Advertising matchless of the major goals of advertising must(prenominal)iness to generate awareness of the business and its products. erst the business is established and its products are positioned in the market hence the advertising will increase and develop consumer loyalty to the product.Definition of advertisingAdvertising is any paid form of nonpersonal presentat ion and promotion of ideas, goods, or services by an identified sponsor. (Kotler Armstrong, 2004)A dictionary definition of advertise would be to make known to inform. completely advertisements can be put throughn to offer information, and can be regarded as communications about products, services and organizations. Viewed in this way, advertisings declare oneself can be seen as communication, but since all advertisements run persuasive elements directed at the ultimate train of a sale, advertising must also provide motives. Consumers must be moved towards purchase ideas must be communicated.(Geoff Lancaster et. all,2002)2.3 Advertising Decisionsmerchandising management must make four important decisions when developing an advertising program, and evaluating advertising campaigns.Campaign evaluation communion Impact Sales impact pass on decisionsMessage strategy Message implementationBudget decisionAffordable commence per centum of sales Competitive parity Objective and t askObjectives SettingCommunication objectives Sales objectivesMedia decisionResearch, frequency, impact Major media types Specific media vehicles Media timing2.4 Advertising objectivesThere are some major objectives of making the advertising such as building brand image, providing information, persuasion, supporting marketing efforts and encouraging action. An advertising objective is a special(prenominal) communication task to be cultivated with a specific target audience during a specific distributor point of time. Advertising objectives can be classified by primary purpose whether the aim is to inform, persuade, or remind. (Kotler Armstrong, 2004)Following table will lucubrate union advertising objective.Informative AdvertisingTelling the market about a new product Describing available servicesSuggesting new uses for product Correcting moody impressionInforming the market of a price change reducing consumers fearsExplain how the product works Building a company imagePers uasive AdvertisingBuilding brand preference Persuading customer to purchase nowEncouraging switching to your brand Persuading customer to receive a sales callChanging customers perception of product attribution reminder AdvertisingReminding brand preference Keeping customer to purchase nowEncouraging switching to your brand during off seasonsChanging customers perception of product attributes Maintaining its top-of-mind awareness2.5 Setting the Advertising BudgetAfter determining its advertising objectives, the company next sets its advertising budget for for each one product. Four unremarkably used methods such as affordable approach, percent of sales, competitive parity, and objective and task.A brands advertising budget often depends on its stage in the product life cycle. For example, new products typically need large advertising budget to build awareness and to persuade consumers to try the products. In contrast, suppurate brands commonly require lower budgets as a ratio t o sale. Market share also impacts the amount advertising needed Because building the market or taking share from competitors requires larger advertising spending than does entirely master(prenominal)taining current share, low-share brands usually need to a greater extent advertising spending as a percentage of sales.2.6 Developing Advertising strategyAdvertising strategy consists of two major elements creating advertising messages and selecting, advertising media. In the past, companies often viewed media cooking as secondary to the message-creation process. The germinal department first created good advertisements, then the media department selected the best media for carrying these advertisements to desired target audiences.2.7 Creating the Advertising Message genuine advertising messages are especially important in todays constitutely and cluttered advertising environment. Just to gain and hold attention, todays advertising messages must be better planned, more imaginative, m ore entertaining, and more rewarding to consumers. Message strategy is the first step in creating effective advertising messages is to decide what general message will be communicated to consumers- to plan a message strategy. Message execution is the second step. The advertiser has to turn the big idea into an unquestionable ad execution that will capture the target markets attention and interest. The creative people must find the best style, tone, words, and format for executing the message. all message can be presented in different execution styles, such asSlice of lifeLifestyleFantasyMood or imageMusicalPersonality symbolTechnical expertisescientific evidenceTestimonial evidence or endorsement.2.8 Selecting Advertising MediaThe major steps in media selection areDeciding on reach, frequency, and impact.Choosing among major media types.Selecting specific media vehicles.Deciding on media timing.2.9 Advertising EvaluationThe advertising program should evaluate both the communicati on effect and the sales effects of advertising regularly. measure the communication effects of an ad- copy testing tells whether the ad is communicating well. repeat testing can be done before of after an ad is printed or broadcast. Before the ad is placed, the advertiser can show it to consumers, ask how they like it, and measure recall or attitude changes resulting from it. After the ad is run, the advertiser can measure how the ad affected consumer recall or product awareness, knowledge, and preference.2.10 Importance of Advertising strategyThe importance of advertising strategy are the following-Advertising strategy will help to reach the large number of customers across different geographic markets.Effective advertising will allow larger audience to be reached with specific messages.Depending on media used, cost of reaching individuals can be lowered compared to other forms of communications.Advertising can be used to provide information for consumers at different purchasin g stages.Advertising strategy will be effective in awareness creation at early stages of new product launched.Advertising strategy include a wide range of media to carry the advertising.2.11 Advertising strategy frameworkFor the development of the advertising strategy it is useful to use different theoretical framework which are the following-Hierarchy of effects model This model will help to clarify the objectives of the advertising strategies as well as the objectives of a particular advertisement. It is also helpful to identifying the communication strategy. This model describes that a business buyer or a consumer moves through a series of six steps to make a purchase like awareness, knowledge, liking, preference, conviction and the actual purchase. (Kenneth E. Clow and D. Baack, 2002)Means-End Theory The second theoritical model of Advertising strategy called the kernel-end chain. An advertisement contains a message or a means to hold up the consumers a desired end state. Here the end-states include the personal values. The purpose of the means-end chain is to cause a chain reaction in which viewing the ad leads to the consumer to belief the product will achieve one of these personal values. The means-end theory model suggests that there are five elements in creating advertising like the product attributes, consumer benefits, leverage points, personal values and the execution framework.This model is designed to move the consumers through these five elements. Thus, the attributes of the product should be linked to the specific benefits consumer can derive and these benefits can lead to the attainment of a personal value. (Kenneth E. Clow and D. Baack, 2002)Leverage Point model The hierarchy of effects model and the means-end chain approach are associated with leverage point methods. A leverage point is such a feature in the ads that lead the viewers to transform the advertising message into a personal value. To pass water a forest leverage point, the m arketers tries to build a pathway spliceing a product benefit with the electric potential buyers value system. (Kenneth E. Clow and D. Baack, 2002)Verbal and visual images The final type of advertising model is called vocal and visual images model. Here the tier of emphasis is given on the visual elements. Visual images often lead to more favourable attitudes toward both the advertisement and the brand. Visuals also trend to be more easily remembered than a verbal copy. Visual elements will be stored in the memory as both pictures and the verbal copy. This dual treat makes it easier for people to recall the message and also visual images are usually stored in the left and right hand sides of the mental capacity while verbal messages are tend to be stored in the left side of the brain only. (Kenneth E. Clow and D. Baack, 2002)2.12 Customers Buying BehaviourConsumers around the world vary tremendously in age, income, education level, and tastes. They also buy an incredible varie ty of goods and services. How these diverse consumers connect with each other and with other elements of the world around them impacts their elections among various products, services, and companies. (Kotler Armstrong, 2004)2.13 Models of Consumer BehaviourBuyers black boxBuyer BuyerCharacter- DecisionIstitcs summonsMarketing and other stimuliMarketing OtherProduct economicPrice expertPlace PoliticalPromotion CulturalBuyer responsesProduct woofBrand choiceDealer choice purchase timingPurchase amountConsumers make many buying decision every day. Most large companies inquiry consumer buying decisions in great detail to dish out questions about what consumers buy, why they buy, how and how oftentimes they buy, when they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behaviour is not so easy the answers are often locked recondite within the consumers head.This figure shows that marketing and other stimuli enter the consumers black box and produce certain responses. Marketers must figure out what is in the buyers black box.Marketing stimuli consist of the four Ps product, price, place, and promotion. Other stimuli include major forces and events in the buyers environment economic, technological, political, and cultural. All these inputs enter the buyers black box, where they are turned into a set of discernable buyer responses product choice, brand choice, dealer choice, purchase timing, and purchase amount.The marketers want to understand how the stimuli are changed into responses inside the consumers black box, which has two parts. First, the buyers characteristics influence how he or she perceives and reacts to the stimuli. Second, the buyers decision process itself affects the buyers behaviour. (Kotler Armstrong, 2004)2.14 Characteristics Affecting Consumer BehaviourConsumer purchased are influenced potently by cultural, social, personal, and psycho logical characteristics. For the most part, marketers cannot control such factors, but they must take them into account.2.15 Cultural FactorsCultural factors exert a broad and deep influence on consumer behaviour. The marketer needs to understand the role play by the buyers culture, subculture, and social class.CulturalCultureSubculture loving classSocialReference groupsFamilyRoles and statusPersonalAge and life-cycle stageOccupationEconomic situationLifestylePersonality and self-conceptBuyerPsychologicalMotivation cognizanceLearningBeliefs and attitudes2.16 Types of Buying-Decision BehaviourThere are four types of buying-decision behaviour such asComplex buying behaviour Consumers take in charge complex buying behaviour when they are highly involved in a purchase and perceive significant differences among brands. Consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive. Typically, the consumer has much to learn about the product category.Dissonance-reducing buying behaviour It occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands.Habitual buying behaviour It occurs under conditions of low consumer involvement and little significant brand difference.Variety-seeking buying behaviour consumers undertake it in situations characterized by low consumer involvement but significant perceived brand differences. In such cases, consumers often do a part of brand switching.2.17 The Buyer Decision ProcessPost purchase behaviourEvaluation of alternativesInformation searchNeed recognitionPurchase decisionNeed recognition The first stage of the buyer decision process, in which the consumer recognizes a problem or need.Information search The stage of the buyer decision process in which the consumer is aroused to search for more information the consumer may simply have heightened attention or may go into active information search.Alter native evaluation The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.Purchase decision The buyers decision about which brand to purchase.Post purchase behaviour The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.Research Methodology3.1 IntroductionA good explore methodology gives a clear picture of what the aims of the field work should be. In the briny, the purpose of the primary look for would be to identify some of the key issues groundwork the Tescos advertising strategy.This methodology chapter will begin by briefly sounding at the theoretical underpinning underlying the carrying out of a marketing explore activity. Thus it can be argued that regardless of the nature of the study, understanding the nature and limitations of various data collection methods can enable a detective to better understand the dat a collected and the limits of their interpretation. Following this review, the chapter then goes to consider the choice of method and its implementation, with the entire attendant stages involved.3.2 What is Marketing Research?Johnson (1994 cited in White 2003, p21) defined investigate as a focused and imperious enquiry that goes beyond generally available knowledge to acquire narrow down and detailed information, providing a basis for abstract and elucidatory comment on the topic of enquiry. Any type of researches, including both marketing and academic research, contains the basic characteristics of a research activity.Cooper and Schindler (2006, p4) have argued that marketing research is a taxonomical inquiry that provides information to guide marketing decisions.3.3 The Marketing Research ProcessThe research process is the route map of any type of research. Aaker et al (2004, pp 43-5) have argued that by and large any research activity or study contains seven steps, as follo ws(1) Agree on the research process.(2) bear witness research objectives.(3) Estimate the value of information.(4) Design the research.(5) Collect the data.(6) Prepare and discerp the data.(7) Report the research results and provide strategic recommendations.3.4 Qualitative ResearchFollowing the broad overview above, this section now briefly looks at the type of approaches in use in practice.3.5 DefinitionOnce a research approach is decided, researchers will need to focus on the research methods. Hague (1992, p120) argued that marketing research travel alongs include two main groups. They are quantifiable and soft researches. Denzin and capital of Nebraska (2003, p4) considered that generic definition of qualitative research could be described as qualitative research is a situated activity that locates the observer in the world.3.6 Qualitative versus QuantitativeIn terms of the differences between them, Wright and Crimp (2000, pp 374-5) argued that qualitative research uses des cription by words and pictures, while quantitative research uses measurement and number. Hague and Jackson (1999, pp 17-8) believed that quantitative research empha sizes accuracy whereas qualitative research emphasises understanding rather than simple measurement. Hague (1992, p123) also argued that qualitative researches enables researchers to better understand the subject matter more so than quantitative researches.In conclusion, quantitative research emphasises the accuracy and quantity dimensions. On the other hand, qualitative research emphasises the nature or quality aspects. Given the nature of the problem posed in this study, it can be argued at this stage this study will utilise a more qualitative approach since we do not understand the reasons for the present push of Abu Dhabi as a destination and where just it will be positioned in the minds of consumers.3.7 Quantitative ResearchQuantitative research methodology deals with areas that can be expressed in numbers. It will tell researchers, for example, what proportion of the population uses luxury cars and what their ages and occupations are what it will not do very easily is tell researchers why those people prefer such cars.Main quantitative research techniques are persuasionQuestionnaire3.8 The sceneSurvey involves the systematic application of representative sample distribution, questionnaire design, information collection and statistical analysis techniques to obtain data which describes aspects of a market in as much detail required by the research user. The size of the sample is unyielding by a combination of factors including the structure of the market world examined, the level of detail required and the accuracy levels required at the overall cost of the research. (Malhotra, 2004)Figure A classification of survey methodsTraditional TelephoneTelephone InterviewingPPPersonal InterviewingCCComputer Assisted Telephone InterviewingSSSurvey MethodsEEElectronic InterviewingIIIn-HouseMM plaza I nterviewingMMMall InterceptCCComputer Assisted personal InterviewingMMMailMMMail panelEEE-mailII cyberspaceSourceNaresh.K.Malhotra, 20043.9 The QuestionnaireThey are a valuable method of collecting a wide range of information from a large number of respondents. darling questionnaire construction is critical to the success of a survey. Inappropriate questions, incorrect parliamentary law of questions, incorrect scaling, or bad questionnaire format can make the survey valueless. A useful method for checking a questionnaire for problems is to pretest it. This usually involves giving it to a small sample of respondents, then interviewing the respondents to get their impressions and to confirm that the questions accurately captured their opinions.(Burns Bush, 2003).McDaniel and furnish (2005, p318) believed that questionnaire is a set of questions designed to generate the data undeniable to meet the objectives of the research project. To design a questionnaire, they proposed a ten- step process as follows-Step one Determine survey objectives, resources and constraints.-Step two Determine the data collection method.-Step third Determine the question response format. His basic format of a questionnaire is closed-ended questions. Its main consideration is that it is more convenient for the respondents to utilise. But as will be seen in Appendix, this study used mainly open-ended questions because of the problem being investigated. One of the advantages is that it can provide more clues to analyse and judge the response (Aaker et al 2004, p320).-Step four Decide on the question wording.-Step five ease up the flow and layout.-Step six Evaluate the questionnaire. After the first draft, the questionnaire should be reviewed. The main purpose is to make sure that all questions will collect necessary data which will accomplish the aim of the study.-Step seven Obtain favourable reception of all relevant parties.-Step eight Pre-test and revise.-Step nine Prepare the fi nal copy.-Step ten Implement the survey.3.10 Sampling MethodsAaker et al (2004, p373) believed that sampling is useful when the population size is big, the cost is hold in and time is limited. They argued that time spent on each would be limited if sampling is used properly and hence the quality of responses would be improved.In terms of the suitable situations of using each, Aaker et al (2004, pp 387-90) argued that non-probability sampling can be used in exploratory research as follows judgemental, snowball, convenience, and quota sampling. For this study, judgemental sampling method is chosen mainly for the time limitation.3.11 E-mail SurveyMore recently, the use of the e-mail survey method has become more common place. Aaker et al (2004, pp 167-8) are of the view that there are some advantages in collecting primary data by this means. The include(1) It is speeder than the traditional postal mail. This study has benefited from this means since it was possible to contact potentia l respondents and solicit their co-operation well before the interview took place(2) It usually saves many of the costs involved in regular mail surveys(3) There are no intermediaries. E-mail is usually read only by the recipient, so that the respondent chosen by the researcher is usually the one to answer the questions(4) It is more convenient for the recipient.3.12 Choice of Data Collection Method and Its death penaltyIn this study quantitative research method will be used to get accurate output from the study. The key element is nervus to face interview. The process is given below3.13 Face-to-face interviews (with an interview schedule/open-ended questions See Appendix 1) with selected Tescos customers and line managers charged with responsibility of trade in the Tesco store. It was felt that given the time it took to respond to a request for interview that a questionnaire survey would have been far less satisfactory. In addition, in that part of the world face-to-face encount ers are considered more deferential particularly when attempting to elicit answers from operational managers and customers. Nevertheless, the process was cumbersome and entailed constants with customer service in order to fix dates and diaries. The process took well over triad months (from August to October, 2010). The researcher is of the view that the responses elicited do provide a good overall picture of the advertising strategy and its impact, was useful to the study. system StatementProblem question How do advertising strategies impact on consumer buying behaviour?H0 Advertising strategies have an impact on consumer buying behaviour.H1 Advertising strategies have no impact on consumer buying behaviour.Limitations of the ResearchThe limitation of this research is to submit this project within a terse period of time and for that reason some of the important issues may have not been discussed on this research. Another limitation can be limited sources of secondary information available in the market and thats why this research can not use a major sources of information in order to make an extensive project.PROPOSED TIME-TABLEFollowing table will illustrate the possible deadlines and dates to complete the proposed dissertation properly on time.AREASWK1WK2WK3WK4WK5WK6WK7WK8WK9WK10WK11WK12IdentificationOf IssueLiterature ReviewResearchdesign