University of Lagos

Name: Aregbesola Queenest Arinola

Matric No: 210319008

Cohort: Business Education

Course: Ase 263

1)Discuss how consumer behavior theory influence advertising strategies

Consumer behavior theory plays a critical role in shaping advertising strategies, as it helps marketers
understand how consumers make purchasing decisions and what factors influence their choices. By
applying insights from consumer behavior theory, advertisers can develop more effective and targeted
campaigns. Here are several ways consumer behavior theory influences advertising strategies:

a)Segmentation and Targeting: Consumer behavior theory helps in identifying different market
segments based on demographic, psychographic, behavioral, and geographic criteria. Understanding
these segments allows advertisers to tailor their messages to the specific needs, preferences, and
behaviors of each group, leading to more personalized and relevant advertising.

b)Motivation and Needs: Drawing from theories such as Maslow's Hierarchy of Needs, advertisers can
create campaigns that appeal to the different levels of consumer needs. For example, luxury brands may
focus on self-actualization and esteem needs, while everyday household products might emphasize
safety and physiological needs.

c)Perception and Attention: Consumer behavior theories explain how consumers perceive and process
information. Advertisers use these insights to design ads that capture attention and are easily
processed. This involves using visually appealing graphics, clear messaging, and stimuli that stand out in
a cluttered media environment.

d)Learning and Memory: Understanding how consumers learn about products and retain information
helps advertisers create memorable campaigns. Techniques such as repetition, jingles, slogans, and
emotional appeals are used to reinforce brand recall and recognition.

e)Attitude Formation and Change: Theories of attitude formation and change, such as the Elaboration
Likelihood Model (ELM), inform how advertisements can persuade consumers. High-involvement
products may require detailed information and rational appeals, while low-involvement products might
benefit from emotional appeals and heuristic cues.

f)Social Influences: Consumer behavior theory examines the impact of social factors, including family,
friends, and cultural norms, on purchasing decisions. Advertisers leverage these insights by using
testimonials, influencer partnerships, and social proof to build trust and credibility.
h)Decision-Making Process: Understanding the stages of the consumer decision-making process
(problem recognition, information search, evaluation of alternatives, purchase decision, and post-
purchase behavior) allows advertisers to create messages that address each stage. For instance,
informative ads can target the information search phase, while persuasive messages can focus on the
evaluation of alternatives.

2) Explain the AIDA model in the context of advertising

The AIDA model is a strategic tool used in advertising to guide the creation and execution of campaigns
that effectively lead consumers through the purchasing process. Here's how each stage of AIDA is
applied in the context of advertising:

1)Attention:Capture the consumer's attention to make them aware of the advertisement.Use striking
visuals, bold headlines, captivating colors, unusual layouts, or intriguing questions. For example, a
billboard might use a large, eye-catching image with a bold headline to attract passersby.For example;
acommercial starts with a surprising or humorous scene that makes viewers stop and pay attention.

2)Interest: Generate interest by engaging the consumer with relevant and compelling content. Provide
information about the product's benefits, tell a compelling story, or pose a problem that the product can
solve. Use relatable scenarios or influential spokespersons to connect with the audience.For example; an
ad for a new smartphone demonstrates its unique features and how it fits into the daily life of the target
consumer.

3)Desire:Create a desire for the product by appealing to the consumer's emotions and demonstrating
value.Highlight unique selling points, show testimonials or endorsements, and use emotional appeals.
Display the lifestyle or status that comes with using the product.For example; a luxury car commercial
shows the vehicle in glamorous settings, emphasizing its premium features and the aspirational lifestyle
of its owners.

4)Action:Encourage the consumer to take a specific action, such as making a purchase, signing up, or
contacting the business.Include a clear and compelling call to action (CTA), such as "Buy Now," "Call
Today," "Visit Our Website," or "Limited Time Offer." Provide easy ways for consumers to take the next
step, such as clickable links in digital ads or phone numbers in print ads.For example ;an online ad for a
clothing sale includes a "Shop Now" button that takes users directly to the sale section of the retailer’s
website.

3) How can businesses measure the effectiveness of their advertising campaign.

Businesses can measure the effectiveness of their advertising campaigns through various methods,
focusing on both quantitative and qualitative metrics. Here are some key ways to assess the impact and
success of advertising efforts:

1) Sales and Revenue Metrics:

-Revenue Growth: Track changes in revenue to see if the advertising has led to higher earnings.

-Return on Advertising Spend (ROAS): Calculate the revenue generated for each dollar spent on
advertising. ROAS = (Revenue from Ads) / (Cost of Ads).

2) Customer Acquisition Metrics:

-Customer Acquisition Cost (CAC): Determine the cost to acquire a new customer through the campaign.
CAC = (Total Campaign Cost) / (Number of New Customers Acquired).

-Conversion Rate: Measure the percentage of ad viewers who take a desired action (e.g., making a
purchase, signing up). Conversion Rate = (Conversions) / (Total Clicks or Impressions).

3) Digital Metrics:

-Click-Through Rate (CTR): Track the ratio of users who click on an ad to the number of total viewers.
CTR = (Clicks) / (Impressions).

-Impressions: Count how many times the ad was displayed.

-Engagement Metrics: Measure likes, shares, comments, and other forms of engagement on social
media or digital platforms.

4) Brand Awareness and Perception:

-Surveys and Polls: Conduct pre- and post-campaign surveys to assess changes in brand awareness,
recall, and perception.

-Brand Lift Studies: Analyze metrics like brand awareness, brand favorability, and purchase intent
through controlled experiments.

5) Website and Traffic Metrics:

-Website Traffic: Monitor the increase in website visits during and after the campaign.

-Bounce Rate: Measure the percentage of visitors who leave the website after viewing only one page. A
lower bounce rate may indicate that the campaign is attracting interested visitors.

-Time on Site: Track how long visitors stay on the site, which can indicate engagement.

4) Briefly explain the use of influencer marketing in advertising and sales promotion.
 These influencers have built trust and credibility with their audience, making their endorsements more
impactful than traditional advertising. Here’s a brief explanation of how influencer marketing is used in
advertising and sales promotion:

Advertising:

1)Brand Awareness: Influencers help increase brand visibility by sharing content about the brand with
their followers, exposing the brand to a wider and more engaged audience.

2) Content Creation: Influencers create authentic and relatable content featuring the product or service,
which resonates better with their audience compared to traditional ads.

3)Targeted Reach: Brands can choose influencers whose followers match their target demographic,
ensuring that the marketing message reaches the right people.

4)Trust and Credibility: Influencers' endorsements are perceived as genuine recommendations rather
than paid advertisements, which can build trust and credibility for the brand.

Sales Promotion:

1) Discount Codes and Special Offers: Influencers often share exclusive discount codes or special offers
with their followers, incentivizing immediate purchases.

2) Market Share: Assess any changes in market share before and after the campaign.

3)Competitor Benchmarks: Compare campaign performance against competitors' efforts to gauge

Qualitative Feedback:

1) Focus Groups and Interviews: Gather detailed feedback from consumers about their perceptions of
the campaign.

2) Social Listening: Monitor social media conversations to understand consumer sentiment and
reactions to the campaign.

3) Live Events and Giveaways: Influencers can host live events, webinars, or giveaways that encourage
audience participation and engagement, driving sales through interactive promotions.

4) Affiliate Marketing: Influencers earn a commission for every sale made through their referral links,
providing a direct and measurable impact on sales.