Advertising Introduction

Advertising & Marketing Communication Overview

Instructor Details

  • Course: MKT 3100

  • Institution: UVA WISE

  • Instructor: Yeonjae Choi, Ph.D.

  • Date: Saturday, 4 May

Great Ideas Start Small

  • Example: Usage of everyday products such as Post-it notes which have become iconic in branding and marketing.

Buyback Friday - IKEA Campaign

Background

  • Goal: Promote sustainability and circularity in business practices.

  • Corporate Strategy: IKEA aims to transition to a circular company by 2030, focusing on creating durable furniture that is affordable.

  • Consumer Demand: There is an increasing demand for brands to take tangible actions towards sustainability.

Campaign Concept

  • IKEA's Initiative:

    • Launch of a buyback program allowing customers to return unwanted furniture.

    • The initiative took place across 20 countries, starting from Black Friday.

    • Customers could return items, which were then refurbished and resold at reduced prices.

  • Objective: To reduce waste and promote recycling among consumers.

Buy Back Scheme Details

  • Furniture Condition and Corresponding Buyback Offer:

    • As new (no scratches): Earn 50% of original price.

    • Very good (minor scratches): Earn 40% of original price.

    • Well-used (several scratches): Earn 30% of original price.

  • Incentives for IKEA Family Members: Earn double the buyback value.

Results Achieved

  • Impressions: 3.7 billion+ across various marketing channels.

  • Social Engagements: Over 88,600 recorded within the campaign.

  • Consumer Sentiment: 96% of the responses were neutral to positive.

  • Resold Items: 61,000+ items were successfully resold through the program.

Media Coverage

  • The campaign received extensive media attention:

    • Highlights:

    • "IKEA to buy back used furniture to reduce waste" - The Business Times.

    • "A global buyback program of unwanted IKEA furniture to encourage customers to take a stand against excessive consumption" - New York Times.

    • Similar sentiments echoed by other major publications such as DailyMail, Independent, and Financial Times.

Sell-Back Program Philosophy

  • Tagline: "Sell us something you don't need. We'll find someone who needs it."

  • Aim: To extend the life of furniture by ensuring it is reused rather than discarded.

Sales vs. Communication Objectives

Differences Explained

  • Sales Objectives:

    • Focus is on increasing sales figures directly.

    • Targets short to medium-term results.

    • Measurement metrics include sales data, conversion rates, and revenue generated.

  • Communication Objectives:

    • Aimed at increasing brand awareness, improving consumer perception, etc.

    • Spans a medium to long-term perspective.

    • Performance indicators include brand recall, recognition, engagement levels, and consumer attitude shifts.

Marketing vs. Advertising

Definitions

  • Marketing Definition (American Marketing Association):

    • A business practice focused on identifying, predicting, and fulfilling customer needs.

  • Advertising Definition:

    • Simply a business practice where monetary resources are allocated for placing branding or messaging in curated locations, aimed at reaching potential customers.

Importance of Advertising

Key Functions

  • Educate Customers: Provides information about products or services available in the market.

  • Enhance Brand Perception: Improves public perception of the brand or culture associated with its offerings.

  • Promotion of New Products: Facilitates awareness regarding new product launches.

  • Convincing Stakeholders: Aims to persuade customers of the superiority of certain products or services.

  • Creating Demand: Generates a need or want for specific products.

  • Attracting New Customers: Encourages new customer acquisitions to boost sales.

  • Exhibiting Applications: Shows potential new uses for existing products or services.

  • Customer Retention: Essential for maintaining existing customer relationships.

  • Conclusion on Advertising Value:

    • "Good Advertising is an Epic Gear—It equips consumers to buy and stay."