1. Communications & Adoption Models

2. Preview What is the definition of Communications? Define the “Nature of Communications” model Define each step in the “Hierarchy of Effects Model” Define some of the key characteristics of the b2b marketing process.

3. Why Study Communications Models? Examine communications process fundamentals Examine how audiences respond to messages Analyze the response process in terms of hierarchical models and cognitive processes Compare alternative response mechanisms and theories

4. The Challenge More than understand the purchasing process Influence the purchase process Requires a basic understanding of communications models

5. Communications Defined “The process of establishing a commonness or oneness of thought between a sender and receiver”

6. The Nature of Communication The communication process is complex, and often unsuccessful

7. The Model Analysis Process Who/What will get consumers’ attention? Source Attention Source Attention 4 Receiver Comprehension Receiver Comprehension Can the receiver comprehend the message? 1 Which media will increase presentation? Channel Presentation Channel Presentation 2 What type of message will create favorable attitudes? Message Yielding Message Yielding 3 Communication Model

8. IMC Noise Talking on the phone during commercials Driving while listening to the radio Looking at the model; ignoring the message Scanning the newspaper for articles Talking to passengers when passing billboards Scrolling past internet ads Annoyance with social media ads Ignoring tweets Being offended by an ad, article or other message Clow & Baack, 2012

9. The Adoption or Diffusion Process The steps an individual goes through from initial knowledge to adopting a product into one’s value system The steps an individual goes through from initial knowledge to adopting a product into one’s value system Charles F. Byers © 2010

10. Awareness Interest Evaluation Trial Adoption Purchasing Decision Hierarchy

11. Response Processes

12. Awareness Interest Evaluation Trial Adoption Today’s Purchasing Decision Hierarchy Reinforcement Advocacy

13. Purchasing Decision Hierarchy Awareness – A new idea, product or service enters the audience’s consciousness – “Wow. That’s new” Interest – Audience is sufficiently curious or motivated to seeks more information – “I wonder what that is all about” Evaluation – How specific wants are satisfied – “Is the better, worst or same from what I’m using to day or is on the market” – “Is this right for me?”

14. Purchasing Decision Hierarchy Trial – Audience samples or tries product or service, it’s the “test drive.” – “Let’s see how this works.” – “What’s this cost? Is it worth it?” – Samples, demonstrations, test results, web- based trial Adoption – Audience accepts/buys product or service. Integrates idea into belief system. – “I’m in. Where do I sign!!”

15. Purchasing Decision Hierarchy Reinforcement – Audience seeks support and confirmation of decision – “OMG. Did I do the right thing?” “Now what?” Advocacy –Audience turns from skeptic to believer –Repeats behavior and encourages others –“It’s the greatest thing since sliced bread!” “How did I ever live without it.”

16. Problem Recognition General Need Description Product Specification Supplier Search Proposal Solicitation Supplier Selection Order Routine Specification Performance Review Adapted from Prentice Hall Business Purchasing Stages

17. Business-to-Business Characteristics More complex, higher risk, higher value decisions than consumer Process is more formalized Decisions made or influenced by project teams Buyer and seller are more dependent on each other; service and dependability are essential

18. Business to Business Consequences Requires building close, long-term relationships with customers Requires personal and non-personal selling Marketer ’ s job is to reduce anxiety

19. Then: The Funnel Model Touch Points Buy Final Choice Fewer Brands Many Brands Harvard Business Review, Edelman; “Branding in The Digital Age”

20. Now: Consumer Decision Journey Consider - few brands Evaluate - add brands BUY Aware Loyalty Loop Bond Enjoy Advocate Harvard Business Review, Edelman “Branding in The Digital Age” What are the implications?

21. Now: Consumer Decision Journey Consider - few brands Evaluate - add brands BUY Aware Loyalty Loop Bond Enjoy Advocate Harvard Business Review, Edelman “Branding in The Digital Age” Re-think budget allocation !!!! 70-90% Budget Budget?

22. IMC Infrastructure Adoption ProcessMessage Framework Tactical & Media Options Awareness Interest Evaluation Trial Adoption Reinforcement Advocacy

23. In Review What is the definition of Communications? Define the “Nature of Communications” model Define each step in the “Hierarchy of Effects Model” Define some of the key characteristics of the b2b marketing process

24. Your Case Analysis Brevity and succinctness is key (see the above) No more than 1.5 pages 1.5 line spacing 12 point Times-Roman type 1” margin top, bottom & sides

25. Microsoft Case How has Microsoft broadened its approach to adoption? What role does the “digital experience” play? What elements should Microsoft consider as it attempts to measure the campaign’s effectiveness?

26. Organizing & Presenting Your Case Succinctly define the situation (no more than 15-20% of the paper) Enumerate the options to be considered Weigh each option’s positives and negatives Declare your decision Provide support for your decision A: Does an exceptional job of covering all five points, successfully applies “lessons learned”; adds creativity and insight to analysis A-: Covers all 5 points adequately B+: Covers 4 out of 5 elements B: Covers 3 out of 5 elements B-: Covers 2 out of 5 element C+: Covers 1 of the elements C: Totally misses the point of the whole case and goes off on a tangent

27. Communications & Persuasion Models

28. The Facets Model of Effects