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Unformatted text preview: in the target market, sociocultural changes,
and even the weather, all of which can influence consumer purchasing behavior. Advertisers must try
to identify these influences and isolate those of the particular advertising campaign.
F or frequently purchased consumer goods in the maturity stage of the product life cycle such as
soda, sales volume offers a good indicator of advertising effectiveness. Because their sales are
relatively stable, and if we assume that the other elements of the marketing mix and the environment
have not changed, we can attribute changes in sales volume to changes in advertising. Exhibit 18.3
illustrates a hypothetical sales history for Red Bull soda in a grocery store chain. Using a statistical
connect.mcg r aw- hill.com/connect/hmEBook.do?setTab= sectionTabs 1/3 9/15/13 M cGr aw- Hill Connect - Ebook technique called time-series analysis, sales data from the past are used to forecast the future. T he
data in Exhibit 18.3 can be decomposed into its basic trend (green), the seasonal influences (red),
and the lift or additional sales caused by the advertising (orange). In this case, the lift caused by the
advertising campaign is substantial.
p. 549 EXHIBIT 18.3 Sale s Histo r y fo r Re d Bu ll in a Gr o ce r y Sto r e Ch ain F or other types of goods in other stages of the product life cycle, sales data offer but one of the
many indicators that marketers need to examine to determine advertising effectiveness. F or instance,
in high-growth markets, sales growth alone can be misleading because the market as a whole is
growing. In such a situation, marketers measure sales relative to those of competitors to determine
their relative market share. F irms find creative ways to identify advertising effectiveness. F or
example, digital cable allows them to present a specific advertisement to certain neighborhoods and
then track sales by local or regional retailers. CHECK Y OURSELF
1. What are the steps involved in planning an ad campaign?
2. What are the differences between informational, persuasive, and reminder advertising?
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This note was uploaded on 01/25/2014 for the course BADM 320 taught by Professor Staff during the Winter '08 term at University of Illinois, Urbana Champaign.
- Winter '08