Quiz 8: Traditional Media Channels


The case presents advertisement strategy of two major auto insurance providers - G and A. Both the players provide auto insurance yet have two radically different approaches to woo their target customers. G uses a humor approach and different celebrity spokesperson in its advertisement campaign. While A uses a rational approach and same spokesperson in all its advertisements. However, both use other media such as billboards to support their campaign and create memorable ads. 1. The best approach to create a high intrusion value is the one followed by A. A follows a rational approach and uses the same spokesperson in all its advertisement campaign. Viewers relate to the rational approach better than humor approach. It has been observed that in cases where ONLY humor approach is adopted, viewers might not take the advertisement seriously. At the same time, rational approach that is customized as per the recent market trend such as recession, good driver bonus or first-accident forgiveness policy, will be received better by the viewers. Using same spokesperson will also enable the target customer develop brand recognition and brand recall. Viewers get comfortable while watching the same face associated with a particular brand. This approach is quite helpful in creating brand recall but brand loyalty cannot be guaranteed with this approach. It depends on the service offered by the brand and continued satisfaction observed by the customer. Brand loyalty can be cultivated by offering world-class customized services, prompt assistance, and immediate corrective action in case of unfavorable experiences. 2. G uses humor approach in its advertisement campaign. Benefits of using humor approach are discussed below: • Humor appeal works best when there is no distinct difference in the offering as compared to the competitors in the market. • Humor appeal caters to the psychological needs of the customer. Such appeals strike at least one of the personal traits of the target customer that enables them to relate with the advertisement. • Ads with humor appeal make a long-lasting impression on the viewers as it is easy to interpret and remember. A uses a more serious approach in its advertisements. The reasons to adhere to rational approach in all its advertisements are discussed below: • Rational appeal focuses on the dominant features of the product. Thus, A presents different aspects of its product through ads following same approach. • Advertisements are customized as per the prevailing market conditions. In case of recession, A launched the "Back to Basics" campaign to garner trust from its target customers. • Customers consider ads with serious approach more genuine and trustworthy. 3. The best suited support media for the two companies will be outdoor advertising medium. Billboards and bulletins will be highly beneficial in creating product recall among customers. Outdoor media provides high frequency of the advertisement and longer life-span of the ad itself to create product recall. However, support media such as radio will be less valuable for both the companies. Advertisement on radio will have challenge of choosing the right customer within a particular geographical location. Now days there are more than one radio station in one state. Hence, negotiate rates and liaison with more than one radio station may prove to be a daunting task for companies. Therefore, the best support media for the two companies will be outdoor media and less valuable support media will be radio. 4. While purchasing an insurance product, effective reach and frequency both play an important role. Effective reach ensures that maximum number of target customers have viewed the particular advertisement in the said duration. However, effective frequency ensures that the target customer is exposed to the advertisement to a number of times in the said duration to gain product recall while making a purchase decision. While both the terms are quite relevant while purchasing insurance, effective reach is slightly more important than effective frequency. This is owing to high involvement of the customer. Customer is highly involved while buying insurance products and takes account of all the features such as premium, tenure of the insurance, terms and conditions etc. A well designed advertisement will trigger curiosity in the customer to know more and will prompt him to enquire about the product through various sources. Hence, effective reach is more important to ensure the advertisement reaches maximum number of people. Once the advertisement is seen, quality of the advertisement will trigger a response from the customer for insurance products. 5. The best advertisement for insurance was FFW Insurance by an International insurance provider catering only to females. The ad features reason as to why the insurance rates for men are traditionally high owing to their driving techniques. The ad had an informational approach towards spreading awareness about the innovative product. The distinct message and target segment makes it different from rest of the advertisements. The worst insurance advertisement was from a company, ABC. It features a boy having sleepless night over his family's financial security. He is pacified by his father who tells him that he can relax as they are with ABC. This advertisement sounds quite unconvincing as a little is shown too worried about family's financial security. The advertisement has an emotional appeal but it fails to create an impact. The advertisement is unbelievable and too boisterous. An advertisement should be able to make audience relate to it but this advertisement just leaves the viewer in a dilemma as to what kind of boy or family was that. It is difficult to relate to such advertisements. An advertisement does make a great impact while choosing insurance. The reasons as to why an advertisement creates an impact while buying insurance are discussed below: • The advertisement provides information about the product. Information is processed and response is triggered by the customer. • An advertisement creates curiosity among the target customer to know more or enquire more about the product. Once the target customer attempts to know more through authentic sources, it is more likely for a prospect to get converted into a customer. Therefore, it can be concluded that advertisements do make an impact on customers while choosing an insurance product.

The exercise requires evaluating various advertising media and identifying the probability of an advertisement being viewed by the selected customer. This will also enable the customer select the most effective media in terms of reach. As an aid to understanding, it will be better to personify the customer. The customer can be assumed a young college student, also pursuing advertising course from a college of repute. There are five advertising media - television, magazine, radio, outdoor and newspaper. Each media has been examined separately as under: Television If the advertisement has been correctly placed on television, it will be aired during a popular show that matches with customer's profile. The advertisement should be placed either in the beginning or end of the break to grab customer's attention. If the advertisement is placed anywhere, in middle of the break, there is a possibility that the customer might switch the channel to avoid too many advertisements and boredom. Probability of the advertisement being viewed by the customer on television is highest, 40%. Radio As per the customer profile, the advertisement must be placed in the morning hours while the customer is driving to work. However, probability of catching the advertisement on radio is low, 10%. Outdoor If the advertisement is placed along the side of a major road junction, it is likely to get noticed. Huge billboards with interesting creative and messages are hard to miss. Hence, the probability of advertisement being seen will be moderate, with 20% probability of being seen. Magazine As the customer is a student and a working professional as well, it is less likely that he would notice an advertisement in a magazine. Customer might choose to flip or go through a magazine kept in the office or at college but may not notice every advertisement. Hence, the probability of viewing the advertisement will be low, 10%. Newspaper A student and working professional prefers to keep him updated by grabbing a national daily. They would like to be abreast with current affairs or news. Hence, the probability of viewing an advertisement will be high, 20%. As the total comes to 100 percent, it can be observed that out of all the five medium, television will be the most effective media in terms of reach.

Nielsen ratings are observed for top five shows for the past week. It will be interesting to see other details provided by Nielsen ratings. As per the website, www.usatoday.com, the top five shows for the past week is as follows: img The life section of USA Today provides all kind of entertainment news. It has celebrity news, photographs, gossips, blogs, TV show review, top TV show ratings and a lot more. AC Nielsen is an organization that provides local channel information and ratings for shows aired on television. The information is based on designated marketing areas, also known as DMAs. Website provides rating to the television shows aired during a particular day. Ratings are calculated as the percentage of TV homes that tuned into television during a particular interval of time.

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