Chapter 6 How Advertising Works

Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising can do to influence consumers at various stages of the process.

Your Experiences Have you done something primarily because of the ad you saw( e.g., bought the offering, talked about it, encouraged or discouraged friends to use it, etc.)?

The Human Communication Process Sources Encoding Message Channel Decoding Receiver Feedback

A general Model of the Communication Process for Promotions Feedback Model of the communication process Source Message Transmission Receiver Action Manufacturer Promotion manager Ad agency Salesperson Spokesperson Advertisements Sales promotions Personal selling Publicity Media: TV, magazines Direct mail: in-store In-home; telephone Newspaper articles Consumer Consumer Relevant Agents and stimuli Key actions Or decision Manage promotion Strategy Encode promotion communication Transmit promotion communication Decode Promotion communication Take action Analyze consumer/ product relationship Determine promotion objectives and budget Design and implement promotion strategy Evaluate promotion strategy Design promotion to communicate appreciate meanings Select media or distribution method to expose promotion message to appropriate audience Attend to message Interpret promotion Integrate meanings to form Aact and behavioral intention Purchase product Store contact Word-mouth communication Source: Adapted from Figure 8.1 in Henry Assael, Consumer Behavior and Marketing Action, 3rd ed.

Internal Environment of the Advertising Process (Fig. 6.2) Noise is Any Factor That Interferes With the Correct Delivery of the Ad Message. Target Audience’s Attention Depends on: Their Perceived Needs, Information Processing, and Avoidance. Media Plan Produces the Best Set of Media To Reach the Target Audience at the Best Time and Place. The Creative Strategy Outlines What Type of Message Needs to be Developed.

The Message Reception Process (Fig. 6.3)

Marketing Communications Spectrum (DAGMAR) - Advertising - Promotion - Personal selling - Publicity -User recommendation - Product design - Availability - Display - Price - Packaging Exhibits MKTG FORCES - Competition from other brands within the product category - Memory lapse - Sales resistance - Market attrition - Competition from other product categories - Other environmental factors COUNTERVAILING FORCES UNAWARENESS AWARENESS COMPREHENSION CONVICTION ACTION

Alternative Response Hierarchies: Three-Orders Model Topical Involvement High Low Perceived Product Differentiation High Low (Learning model) Cognitive Affective Conative (Dissonance attribution model) Conactive (Low Involvement model) Cognitive Conative Affective

Communication Effects Models Traditional Response Hierarchy Models AIDA Hierarchy of effects Innovation adoption Information processing Two assumptions: high topical involvement and a high level of brand differentiation Standard learning model (cognitive-->affective--> conative)

Communication Effects Models Alternative Response Hierarchy Models Dissonance/Attribution model high topical involvement, but low brand differentiation conative--> affective--> cognitive reducing dissonance as a primary role of adv. Low involvement model “learning without involvement” (Herbert Krugman) cognitive->conative->affective simple cues in advertising triggers a brand choice developing such cues as a primary role of advertising Hierarchy of effects Innovation adoption Information processing Two assumptions: high topical involvement and a high level of brand differentiation Variations of standard learning model

Implications of effects models Which model best represents consumer responses related to the product/service being promoted? Where do consumers perceive us to be located in the hierarchy? ==>Then, where do we plan to move consumers to in the hierarchy?

Perception: Creating Stopping Power One of the Biggest Challenges for Advertisers is Simply to Get Consumers to Notice Their Messages. Exposure Messages Have To be Placed in a Medium that the Target Audience Sees, Reads, Watches, or Listens to. Attention The Mind is Engaged; it is Focusing on Something. Attention is Aroused by a Trigger. Stopping Power Ads that Stop The Scanning are Usually High in Intrusiveness & Originality.

Awareness: Making an Impression Attention - Relevance Attention is a Message Design Problem and is Obtained by Providing: Ads That Speak to Our Personal Interest are Noticed More Often. Interest is Usually Created by Personal Involvement or Curiosity. Intensity of the Consumer’s Interest in a Product, Medium or Message. - Interest Involvement

Understanding: Making It Clear Understanding is a Conscious Effort to Make Sense of the Information Being Presented and May Involve: Teaching, Learning, Knowing Association Clear Relevant Explanations

Persuasion: Attitude Change and Trial Retrial Appeals Attitudes Persuasive Ads Try to Establish, Reinforce, or Change an Attitude, Build an Argument, Touch an Emotion, or Anchor a Conviction Based on: Conviction Leads to Trail Opinions Emotions Arguments Likability

Persuasion: Attitude Change and Trial Appeals Something that makes the product particularly attractive or interesting to the consumer. i.e. security, esteem. Attitudes and Opinions Establish a new opinion where none has existed before, Reinforce an existing opinion, Change an existing opinion. Likability How people respond to a product or a message. i.e. use of entertainment

Persuasion: Attitude Change and Trial Arguments A line of reasoning in which one point follows from another, leading to a logical conclusion. i.e Jeep ad Emotions How someone feels about the product, etc. may be just as important as what that person knows about it. Conviction Leads to Trial Strong belief about a product’s benefits that leads to trial. i.e. good for us, make us look better Retrial Goal is to build strong brand loyalty though repurchases.

Memorability: Locking Power Locking Messages Into Consumer’s Minds Through Recognition and Recall Memorability: Locking Power - Key Visuals Vivid Image That Helps a Consumer Remember a Product or Message - Repetition Jingles, Slogans, and Taglines are Key Repetition Tools ***Vampire Creativity People Remember a Commercial, But Not the Product

Consumers’ Mental Image of a Brand Based On: Psychological Dimension Brand Image: Consumers’ Mental Image of a Brand Based On: Product Personality How Brands Work Psychological Dimension Promise Builds Brand Equity Physical Dimension

Review Review consumer behavior Understand the basic human communication process. Learn about what advertising can do to influence consumers at various stages of the process.