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Overview of Integrated Marketing Communications
© 2010 South-Western, a part of Cengage Learning All rights reserved.
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Chapter Objectives After reading this chapter you should be able to:
Appreciate the practice of marketing communications and recognize the marcom tools used by practitioners. Describe the philosophy and practice of integrated marketing communications (IMC). Understand the five key features of IMC. Recognize the activities involved in developing an integrated communications program. Identify obstacles to implementing an IMC program. Understand and appreciate the components contained in an integrative model of the marcom decision-making process. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–2
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Introduction to Marketing Communications (Marcom)
Business-to-Consumer (B2C) Business-to-Business (B2B) Integrated Marcom B2C&B Integrated Marketing Communication (IMC) Programs © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3
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The Tools of Marketing Communications
Table 1.1 The Tools of Marketing Communications 1. Media Advertising • TV • Radio • Magazines • Newspapers 2. Direct Response and Interactive Advertising • Direct mail • Telephone solicitation • Online advertising 3. Place Advertising • Billboards and bulletins • Posters • Transit ads • Cinema ads 4. Store Signage and Point-of-Purchase Advertising • External store signs • In-store shelf signs • Shopping cart ads • In-store radio and TV 5. Trade- and Consumer-Oriented Promotions • Trade deals and buying allowances • Display and advertising allowances • Trade shows • Cooperative advertising • Samples • Coupons • Premiums • Refunds/rebates • Contests/sweepstakes • Promotional games • Bonus packs • Price-off deals 6. Event Marketing and Sponsorships • Sponsorship of sporting events • Sponsorship of arts, fairs, and festivals • Sponsorship of causes 7. Marketing-Oriented Public Relations and Publicity 8. Personal Selling Source: Adapted from Figure 1.1 in Kevin Lane Keller, “Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs,” Journal of Marketing Management 17 (August, 2001), 823–851. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4
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The Integration of Marketing Communications
Why Not Integrated? Tradition of separation communication tools Influence of specialized outside suppliers Managerial parochialism Fear of budget cutbacks Loss of power and authority Resistance of outside suppliers to broadening their functions Skeptics who consider IMC to be a fad © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5
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The Integration of Marketing Communications (cont’d)
IMC and Synergy Using multiple communication tools in conjunction with one another can produce greater results (synergistic effects) than tools used individually and in an uncoordinated fashion. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6
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And Now a Definition of IMC
Integrated Marketing Communications (IMC) Is a communications process for planning, creation, integration, and implementation of diverse forms of marcom delivered to a brand’s targeted customers and prospects Has as its goal influencing or affecting behavior of targeted audience Considers all touch points a customer/ prospect has with the brand as potential delivery channels for messages Requires that all of a brand’s communication media deliver a consistent message Has customer/prospect as its starting point for determining types of messages and media to inform, persuade, and induce action © 2010 South-Western, a part of Cengage Learning. All rights reserved. 7
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Start with the customer or prospect.
Table 1.2 Five Key Features of IMC Start with the customer or prospect. Use any form of relevant contact or touch point. Speak with a single voice. Build relationships. Affect behavior. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 8
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Key IMC Feature # 1 The Consumer or Business Customer Must Represent the Starting Point for All Marketing Communications Activities Takeaway: Consumers in Control Outside-in approach: learn the media preferences and lifestyles of customers/prospects to know the best contexts to reach them with brand messages. Reduced Dependence on Mass Media Consumers are increasingly in control of their media choices for acquiring information about brands. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 9
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Selecting the Appropriate Marcom Tools
Identify Marcom Program Goals Determine Best Way to Allocate Marketing Budget Media-Neutral Approach Courtesy of WISK®, Unilever United States, Inc. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 10
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Key IMC Feature # 2 Use Any and All Marcom Tools That Are Up to the Task Takeaway: 360-Degree Branding A brand’s touch points should be everywhere the target audience is. Not All Touch Points Are Equally Engaging Surround customers/prospects with the message, but not to the point of being irritatingly present. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11
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Key IMC Feature # 3 Multiple Messages Must Speak with a Single Voice
Takeaway: A brand’s positioning statement must: Present a clear idea of the brand in its target market’s mind Consistently deliver the same unified message across all media channels on all occasions. © Richard B. Levine / Newscom © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12
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Key IMC Feature # 4 Build Relationships Rather Than Engage in Flings
Takeaway: Loyalty programs promote long-term relationships between customers and brands that lead to customer retention. Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13
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Key IMC Feature # 5 Don’t Lose Focus of the Ultimate Objective: Affect Behavior Takeaway: The goal of IMC is to influence the target audience in such a way that the audience engages in a specific desired behavior. The effectiveness of an IMC program is judged by its success in terms of its ultimate influence on behavior. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 14
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Obstacles to Implementing IMC
Integration requires tight coordination among all elements of a marcom program. Few providers of marketing communication services have the diversity of skills required to execute an IMC program. Direct-to-customer advertising is more difficult than a mass media campaign. The greatest challenge is making sure that all marcom tools are consistently executed. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 15
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Marketing Communications
Marketing Communications’ Objective To enhance brand equity by moving customers to favorable action toward the brand—trying it, repeat purchasing it, and becoming loyal toward the brand. Brand Equity The degree to which consumers favorably perceive the brand’s features and benefits as compared to competitive brands and how strongly these views are held in memory © 2010 South-Western, a part of Cengage Learning. All rights reserved. 16
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Making Brand-Level Marcom Decisions and Achieving Desired Outcomes
Figure 1.1 Making Brand-Level Marcom Decisions and Achieving Desired Outcomes © 2010 South-Western, a part of Cengage Learning. All rights reserved. 17
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Fundamental Marcom Decisions
Targeting Positioning Setting Objectives Budgeting Fundamental Marcom Program Decisions © 2010 South-Western, a part of Cengage Learning. All rights reserved. 18
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Fundamental Marcom Decisions (cont’d)
Top-down (TD) Bottom-up/Top-down (BU/TD) Top-down/Bottom-up (TD/BU) Bottom-up (BU) Budgeting Procedures © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19
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Fundamental Marcom Decisions: Commit-to-Memory Mantra
All marketing communications should be: 1. Directed to a specific target market 2. Clearly positioned 3. Created to achieve a specific objective 4. Undertaken within budget constraints © 2010 South-Western, a part of Cengage Learning. All rights reserved. 20
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Marcom Implementation Decisions
Mixing Elements Creating Messages Selecting Media Establishing Momentum Marcom Program Implementation Decisions © 2010 South-Western, a part of Cengage Learning. All rights reserved. 21
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A Buy-One-Get-One-Free Promotion
Figure 1.2 A Buy-One-Get-One-Free Promotion © 2010 South-Western, a part of Cengage Learning. All rights reserved. 22
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Enhancing Brand Equity
Marcom Outcomes Enhancing Brand Equity Affecting Behavior Marcom Outcomes © 2010 South-Western, a part of Cengage Learning. All rights reserved. 23
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Marcom Program Evaluation
Measuring Results for Accountability Behavioral Impact Communication Outcomes Providing Feedback Taking Corrective Action Greater Investment Different Communication Combinations Revised Strategy Revised Allocations Marcom Program Implementation © 2010 South-Western, a part of Cengage Learning. All rights reserved. 24
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Marketing Communications Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable © 2010 South-Western, a part of Cengage Learning All rights reserved.
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Chapter Objectives After reading this chapter you should be able to:
Explain the concept of brand equity from both the company’s and the customer’s perspectives. Describe the positive outcomes that result from enhancing brand equity. Appreciate a model of brand equity from the customer’s perspective. Understand how marcom efforts must influence behavior and achieve financial accountability.. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–26
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Introduction: Framework for Marcom Process
Fundamental Decisions Implementation Decisions Desired Outcomes Evaluation and Corrective Action © 2010 South-Western, a part of Cengage Learning. All rights reserved. 27
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Basic IMC Issues Marketing Communicators How to enhance brand equity
How to affect customer behavior How to justify marcom investments How to demonstrate financial accountability Marketing Communicators © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Basic IMC Issues What can marketing communicators do to enhance the equity of their brands? How can marketing communicators affect the behavior of their present and prospective customers? How can marketing communicators justify their investments in advertising, sales promotions, and other marcom elements? How can marketing communications demonstrate financial accountability? © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Brand Brand Brand Equity Is a name, term, sign, symbol, or design.
Identifies and differentiates goods and services of one seller or group of sellers from those of the competition. Communicates a particular set of values. Brand Equity Can be considered either from the perspective of the organization that owns it or from the vantage point of the customer. Is valuable when consumers believe the brand can deliver on its promises. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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A Firm-Based Perspective on Brand Equity
Higher market share Increased brand loyalty Premium pricing Revenue premiums Effects of Brand Equity Increases © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Children’s Taste Preferences (In percents)
Table 2.1 Children’s Taste Preferences (In percents) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Brand Equity Increases
Revenue Premium The revenue differential between a branded item and a corresponding private labeled item. Revenue premium for a branded item (b) compared to a private label (pl) = (volumeb)(priceb) – (volumepl)(pricepl) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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A Customer-Based Brand Equity Framework
Figure 2.1 A Customer-Based Brand Equity Framework Source: Adapted from Kevin Lane Keller, “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,” Journal of Marketing 57 (January 1993), 7. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Forms of Brand Knowledge
Brand Awareness Whether a brand name comes to mind when consumers think about a particular product category The ease with which the name is evoked Brand Image The types of associations that come to the consumer’s mind when contemplating a particular brand Top-of-Mind Awareness (TOMA) Occurs when a brand is the first brand that consumers recall when thinking about brands in a particular product category. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Brand Awareness Pyramid
Figure 2.2 The Brand Awareness Pyramid Source: David A. Aaker, Managing Brand Equity (New York: Free Press, 1991), 62. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Brand image associations that build brand equity
Brand Associations Positive Attributes Perceived Benefits Favorable Attitude Brand image associations that build brand equity © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Dimensions of Brand Personalities
Excitement Sincerity Ruggedness Sophistication Competence © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Ways of Enhancing Brand Equity
Speak-for-Itself Message-Driven Leveraging Enhancing Brand Equity © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Leveraging Brand Meaning from Various Sources
Figure 2.3 Leveraging Brand Meaning from Various Sources Source: Kevin Lane Keller, “Brand Synthesis: The Multidimensionality of Brand Knowledge,” Journal of Consumer Research 29 (March 2003), 598. By permission of the University of Chicago Press. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Types of Branding for Leveraging
Co-Branding A partnership between two brands Ingredient Branding Inclusion of one brand within the other © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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What Benefits Result from Enhancing Brand Equity?
Increased consumer loyalty Long-term growth and profitability for the brand Maintain brand differentiation from competitive offerings Insulate brand from price competition © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Measuring World-Class Brands
Quality Salience Equity Evaluating World-Class Brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Characteristics of a World-Class Brand
Delivers benefits consumers want Stays relevant Price equals value Good positioning Consistency Fits into brand portfolio Brand helps build brand equity Brand’s managers understand what the brand means to consumers Support over long run Monitoring of the sources of brand equity © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Table 2.2 Top Ten World-Class Brands Overall (Among 1,030 total brands included in EquiTrend’s Spring 2006 survey) Source: Spring 2006 EquiTrend brand study by Harris Interactive, (accessed July 26, 2007). © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Interbrand’s Top 20 Global Brands, 2007
Table 2.3 Interbrand’s Top 20 Global Brands, 2007 Source: Interbrand Report, “Best Global Brands 2007,” © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Affecting Behavior and Achieving Marcom Accountability
The Importance of Brand Awareness Creating brand awareness and boosting brand image serve little positive effect unless individuals make purchases or engage in desired behaviors Marcom’s objective is ultimately to affect sales volume and revenue © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Measuring Marketing Investment Performance
Return on Marketing Investment (ROMI) Measures the effect of marcom, or of its specific elements such as advertising, in terms of whether it generates a reasonable revenue return on the marcom investment Why Measure Marcom Effectiveness? Demands for greater accountability on the marketing function To become better at marcom activities © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Measuring Marketing Investment Performance
Difficulties in Measuring Marcom Effectiveness Choosing an appropriate metric Gaining agreement on measures Collecting accurate data for marcom assessment Determining effects of specific marcom elements © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Difficulties in Measuring Marcom Effectiveness: Choosing a Metric
Change in brand awareness Improvement in attitudes toward the brand Increased purchase intentions Larger sales volume What to Measure? © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Difficulties in Measuring Marcom Effectiveness: Gaining Agreement
Finance Departments’ Measures of Success: Discounted cash flows Net present values of investment decisions Marketing Departments’ Measures of Success: Measures of brand awareness, image, and equity © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Difficulties in Measuring Marcom Effectiveness: Collecting Accurate Data and Calibrating Special Effects What exact sales figures should be used to calculate sales? How much relative effect does each program element have on sales volume compared to the effect of other elements? © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Measuring Marcom Effectiveness
Marketing-Mix Modeling Employing econometric statistical techniques to estimate the effects that elements of the marcom mix have in driving sales volume. Example: © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Facilitating the Success of New Brands
CHAPTER 3 Facilitating the Success of New Brands © 2010 South-Western, a part of Cengage Learning All rights reserved.
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Chapter Objectives After reading this chapter you should be able to:
Appreciate marcom’s role in facilitating the introduction of new brands. Explain the innovation-related characteristics that influence adoption of new brands. Understand the role performed by brand names in enhancing the success of new brands. Explain the activities involved in the brand-naming process. Appreciate the role of logos. Describe the various elements underlying the creation of effective packages. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–55
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Marcom and Brand Adoption
Product Adoption Is the introduction and acceptance of new ideas, including new brands Is essential to long-term market success Marketing Communications Facilitate successful new product introductions Reduce the product failure rate (potentially 35-45%) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Adoption Process and Marcom Tools
Awareness Class Free samples and coupons Trade shows and personal selling Advertising Distribution Trier Class Coupons Widespread distribution Introductory, low pricing Repeater Class Personal selling Advertising Price Distribution Product satisfaction © 2010 South-Western, a part of Cengage Learning. All rights reserved. 57
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Model of the Brand Adoption Process
Figure 3.1 Model of the Brand Adoption Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Advertisement Illustrating the Brand Adoption Process
Figure 3.2 Advertisement Illustrating the Brand Adoption Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Brand Characteristics That Facilitate Adoption
Compatibility Relative Advantage Observability Trialability Complexity © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Relative Advantage Better Performance Time and Effort Savings Immediacy of Reward Consumer Perception of a New Brand versus Alternatives © 2010 South-Western, a part of Cengage Learning. All rights reserved. 61
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Advertisement Illustrating Relative Advantage
Figure 3.3 Advertisement Illustrating Relative Advantage © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Compatibility Consumer Needs Personal Values and Beliefs Past Consumption Practices Compatibility Factors Affecting the Rate of New Brand Adoption © 2010 South-Western, a part of Cengage Learning. All rights reserved. 63
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Other Brand Characteristics That Facilitate Adoption
Complexity An innovation’s degree of perceived difficulty Trialability The extent to which an innovation can be used on a limited basis prior to making a full-blown commitment Observability The degree to which the positive effects of new-product usage can be observed by users and others © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Advertisement Illustrating Observability
Figure 3.4 Advertisement Illustrating Observability © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Figure 3.5 Hypothetical Illustration of Quantifying the Adoption- Influencing Characteristic © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Brand Naming Brand Name Exceptions to Naming Rules
Is a company’s unique designation or trademark, which distinguishes its offering from other product category entries. Exceptions to Naming Rules Some brands become successful in spite of their names First brand in a new product category can be successful regardless of its name if it offers distinct advantages. Empty vessels—names can be intentionally meaningless at inception © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Speed of Brand Awareness Brand Equity Formation
Brand Naming Speed of Brand Awareness Overall Brand Image Brand Equity Formation Effects of a Brand Name © 2010 South-Western, a part of Cengage Learning. All rights reserved. 68
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Brand Name Fundamentals
Compatible with desired image Distinguishable from competitors Suitable for global use Memorable and pronounceable Facilitates consumer learning © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Facilitating Consumer Learning of Brand Associations
Brand Name Suggestiveness Made-up Brand Names Sound Symbolism Associations and Memory Cues © 2010 South-Western, a part of Cengage Learning. All rights reserved. 70
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Figure 3.6 There are many image-compatible brands in health food sections of grocery stores. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Brand-Naming Process
Figure 3.7 The Brand-Naming Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Role of Logos Logo Good Logo Designs
Is a graphic design element related to a brand name Not all brand names are associated with a distinct logo Good Logo Designs Are natural—neither too simple nor too complex Are readily recognized Convey same meaning to all target market members Evoke positive feelings Are suited for periodic updating © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Figure 3.8 Famous Logos © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Cingular’s Logo Figure 3.9
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Changing Faces of Betty Crocker
Figure 3.10 The Changing Faces of Betty Crocker © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Packaging Functions of the Package Contain and protect product
Motivate brand choice Functions of the Package Contain and protect product Draw attention to brand Break through competitive clutter Justify price and value Signify features and benefits Convey emotionality © 2010 South-Western, a part of Cengage Learning. All rights reserved. 77
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Packaging Structure Color Design Shape
Functional, Symbolic, and Experiential Components of Packaging Structure Design Color Shape Information Labeling Physical Materials Size © 2010 South-Western, a part of Cengage Learning. All rights reserved. 78
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The Use of Color in Packaging
Colors Communicate the brand’s ability to satisfy consumer’s psychological needs Have emotional effects on users Create perceptions of elegance and prestige by using polished reflective surfaces Can have meanings that vary across different cultures © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Design and Shape Cues in Packaging
Effective Package Design Provides good eye flow and a point of focus Evokes different feelings through the choice of slope, length, and thickness of lines—horizontal (tranquility), vertical (strength), slanted lines (upward movement) Uses shapes to arouse emotions and evoke specific connotations—curving lines (femininity), sharp lines (masculinity) Uses shapes to promote positive perceptions of volume, harmony, balance, and beauty © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Packaging Size and Physical Materials
Satisfies unique needs of various market segments Represents different usage situations Can help gain more shelf space in retail outlets Physical Materials Can increase sales and profits Arouse emotions and affect perceptions of product characteristics Metals and foils (strength, durability, quality, and prestige) Plastics (lightness, cleanliness, cheapness) Wood (masculinity) Velvet (femininity) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Evaluating the Package: The VIEW Model
Visibility Does package: Attract attention at the point of purchase Stand out on the shelf yet not to detract brand’s image Require special seasonal and holiday packaging Information Does package: Provide usage instructions, claimed benefits, slogans, and supplementary information Stimulate trial purchases, encourage repeat purchases, and provide correct usage instruction Emotional Appeal Does package: Evoke the desired feeling or mood Properly blend informational and emotional content to simultaneously appeal to consumers Workability Does package: Protect the product contents against breakage and pilferage Facilitate easy storage and handling Simplify consumer’s task in accessing and using the product Appear to be environmentally friendly © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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An Effective Seasonal Package Design
Figure 3.11 An Effective Seasonal Package Design © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Dutch Boy’s Easy-to-Hold/ Open/Pour Paint Container
Figure 3.12 Dutch Boy’s Easy-to-Hold/ Open/Pour Paint Container © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Hypothetical Illustration of Quantifying the VIEW Model Components.
Figure 3.13 Hypothetical Illustration of Quantifying the VIEW Model Components. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Package Design Process
Figure 3.14 The Package Design Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Facilitating the Success of New Brands
CHAPTER 3 Facilitating the Success of New Brands © 2010 South-Western, a part of Cengage Learning All rights reserved.
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Chapter Objectives After reading this chapter you should be able to:
Appreciate marcom’s role in facilitating the introduction of new brands. Explain the innovation-related characteristics that influence adoption of new brands. Understand the role performed by brand names in enhancing the success of new brands. Explain the activities involved in the brand-naming process. Appreciate the role of logos. Describe the various elements underlying the creation of effective packages. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–88
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Marcom and Brand Adoption
Product Adoption Is the introduction and acceptance of new ideas, including new brands Is essential to long-term market success Marketing Communications Facilitate successful new product introductions Reduce the product failure rate (potentially 35-45%) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Adoption Process and Marcom Tools
Awareness Class Free samples and coupons Trade shows and personal selling Advertising Distribution Trier Class Coupons Widespread distribution Introductory, low pricing Repeater Class Personal selling Advertising Price Distribution Product satisfaction © 2010 South-Western, a part of Cengage Learning. All rights reserved. 90
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Model of the Brand Adoption Process
Figure 3.1 Model of the Brand Adoption Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Advertisement Illustrating the Brand Adoption Process
Figure 3.2 Advertisement Illustrating the Brand Adoption Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Brand Characteristics That Facilitate Adoption
Compatibility Relative Advantage Observability Trialability Complexity © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Relative Advantage Better Performance Time and Effort Savings Immediacy of Reward Consumer Perception of a New Brand versus Alternatives © 2010 South-Western, a part of Cengage Learning. All rights reserved. 94
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Advertisement Illustrating Relative Advantage
Figure 3.3 Advertisement Illustrating Relative Advantage © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Compatibility Consumer Needs Personal Values and Beliefs Past Consumption Practices Compatibility Factors Affecting the Rate of New Brand Adoption © 2010 South-Western, a part of Cengage Learning. All rights reserved. 96
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Other Brand Characteristics That Facilitate Adoption
Complexity An innovation’s degree of perceived difficulty Trialability The extent to which an innovation can be used on a limited basis prior to making a full-blown commitment Observability The degree to which the positive effects of new-product usage can be observed by users and others © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Advertisement Illustrating Observability
Figure 3.4 Advertisement Illustrating Observability © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Figure 3.5 Hypothetical Illustration of Quantifying the Adoption- Influencing Characteristic © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Brand Naming Brand Name Exceptions to Naming Rules
Is a company’s unique designation or trademark, which distinguishes its offering from other product category entries. Exceptions to Naming Rules Some brands become successful in spite of their names First brand in a new product category can be successful regardless of its name if it offers distinct advantages. Empty vessels—names can be intentionally meaningless at inception © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Speed of Brand Awareness Brand Equity Formation
Brand Naming Speed of Brand Awareness Overall Brand Image Brand Equity Formation Effects of a Brand Name © 2010 South-Western, a part of Cengage Learning. All rights reserved. 101
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Brand Name Fundamentals
Compatible with desired image Distinguishable from competitors Suitable for global use Memorable and pronounceable Facilitates consumer learning © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Facilitating Consumer Learning of Brand Associations
Brand Name Suggestiveness Made-up Brand Names Sound Symbolism Associations and Memory Cues © 2010 South-Western, a part of Cengage Learning. All rights reserved. 103
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Figure 3.6 There are many image-compatible brands in health food sections of grocery stores. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Brand-Naming Process
Figure 3.7 The Brand-Naming Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Role of Logos Logo Good Logo Designs
Is a graphic design element related to a brand name Not all brand names are associated with a distinct logo Good Logo Designs Are natural—neither too simple nor too complex Are readily recognized Convey same meaning to all target market members Evoke positive feelings Are suited for periodic updating © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Figure 3.8 Famous Logos © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Cingular’s Logo Figure 3.9
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Changing Faces of Betty Crocker
Figure 3.10 The Changing Faces of Betty Crocker © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Packaging Functions of the Package Contain and protect product
Motivate brand choice Functions of the Package Contain and protect product Draw attention to brand Break through competitive clutter Justify price and value Signify features and benefits Convey emotionality © 2010 South-Western, a part of Cengage Learning. All rights reserved. 110
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Packaging Structure Color Design Shape
Functional, Symbolic, and Experiential Components of Packaging Structure Design Color Shape Information Labeling Physical Materials Size © 2010 South-Western, a part of Cengage Learning. All rights reserved. 111
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The Use of Color in Packaging
Colors Communicate the brand’s ability to satisfy consumer’s psychological needs Have emotional effects on users Create perceptions of elegance and prestige by using polished reflective surfaces Can have meanings that vary across different cultures © 2010 South-Western, a part of Cengage Learning. All rights reserved.
113
Design and Shape Cues in Packaging
Effective Package Design Provides good eye flow and a point of focus Evokes different feelings through the choice of slope, length, and thickness of lines—horizontal (tranquility), vertical (strength), slanted lines (upward movement) Uses shapes to arouse emotions and evoke specific connotations—curving lines (femininity), sharp lines (masculinity) Uses shapes to promote positive perceptions of volume, harmony, balance, and beauty © 2010 South-Western, a part of Cengage Learning. All rights reserved.
114
Packaging Size and Physical Materials
Satisfies unique needs of various market segments Represents different usage situations Can help gain more shelf space in retail outlets Physical Materials Can increase sales and profits Arouse emotions and affect perceptions of product characteristics Metals and foils (strength, durability, quality, and prestige) Plastics (lightness, cleanliness, cheapness) Wood (masculinity) Velvet (femininity) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Evaluating the Package: The VIEW Model
Visibility Does package: Attract attention at the point of purchase Stand out on the shelf yet not to detract brand’s image Require special seasonal and holiday packaging Information Does package: Provide usage instructions, claimed benefits, slogans, and supplementary information Stimulate trial purchases, encourage repeat purchases, and provide correct usage instruction Emotional Appeal Does package: Evoke the desired feeling or mood Properly blend informational and emotional content to simultaneously appeal to consumers Workability Does package: Protect the product contents against breakage and pilferage Facilitate easy storage and handling Simplify consumer’s task in accessing and using the product Appear to be environmentally friendly © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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An Effective Seasonal Package Design
Figure 3.11 An Effective Seasonal Package Design © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Dutch Boy’s Easy-to-Hold/ Open/Pour Paint Container
Figure 3.12 Dutch Boy’s Easy-to-Hold/ Open/Pour Paint Container © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Hypothetical Illustration of Quantifying the VIEW Model Components.
Figure 3.13 Hypothetical Illustration of Quantifying the VIEW Model Components. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Package Design Process
Figure 3.14 The Package Design Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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CHAPTER 5 Positioning © 2010 South-Western, a part of Cengage Learning All rights reserved.
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Chapter Objectives After reading this chapter you should be able to:
Appreciate the concept and practice of brand positioning. Explain that positioning involves the creation of meaning and that meaning is a constructive process involving the use of signs and symbols. Give details about how brand marketers position their brands by drawing meaning from the culturally constituted world. Describe how brands are positioned in terms of various types of benefits and attributes. Explicate two perspectives that characterize how consumers process information and describe the relevance of each perspective for brand positioning. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–121
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Introduction: Brand Positioning
The key feature, benefit, or image that the brand stands for in the target audience’s collective mind Positioning Statement The central idea that encapsulates a brand’s meaning and distinctiveness vis-à-vis competitive brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Positioning in Theory: A Matter of Creating Meaning
Semiotics The study of signs and the analysis of meaning-producing events Semiotics Perspective Meaning is a constructive process determined by: The message source’s choice of communication elements The receiver’s unique social-cultural background and mind-set at the time of exposure to a message © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Positioning in Theory: A Matter of Creating Meaning (cont’d)
A Sign Is words, visualizations, tactile objects, and anything else perceivable by the senses Has a constructed meaning to the receiver (interpreter) that is both idiosyncratic and context dependent Marcom’s Positioning Goal To have consumers will interpret messages exactly as they are intended © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Thumbs-Up Sign Figure 5.1
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Meaning of Meaning Meanings Perceptual Fields
Are the thoughts and feelings evoked within a person when presented with a sign in a particular context Are internal responses people hold for external stimuli Perceptual Fields Represent the sum total of a person’s experiences that are stored in memory Facilitate effective marcom when there is commonality in both the sender’s and the receiver’s fields of experience © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Meaning Transfer: From Culture to Object to Consumer
Socialization The process through which people learn cultural values, form beliefs, and become familiar with the physical manifestations, or artifacts, of these values and beliefs Advertising in a Culturally Constituted World Advertisements become texts to be interpreted by consumers from within their socio-cultural context Marcom attempts to use the meaning of well-known symbols to transfer that meaning to their brand © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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V8 Advertisements Illustrating Contextual Meaning
Figure 5.2 V8 Advertisements Illustrating Contextual Meaning © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Positioning in Practice: The Nuts and Bolts
Brand Positioning Is essential to a successful Marcom program Effective Positioning Statement Conveys a consistent message Defines a brand’s competitive advantage Motivates customers to action Positioning Concept “Positioned in” the consumer’s mind “Positioned against” competing brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Outcomes of Proposed Positioning
Figure 5.3 Outcomes of Proposed Positioning © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Proposed Positioning Outcomes
Promote Competitors Position does not reflect competitive advantage Position represents important reason for brand selection decisions Any effort would serve other brand selection decisions in same category Winner Positioned on a product feature or benefit that has an advantage over competitors Positioning gives consumers a persuasive reason for trying the brand Loser Brand possesses no competitive advantage Positioning basis does not motivate consumers to want the brand SUTR Position represents a competitive advantage for a trivial product feature or benefit Position does not give compelling reasons to want the brand Any effort will be hard work with little progress © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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A Framework for Brand Positioning
Figure 5.4 A Framework for Brand Positioning © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Appealing to Consumer Needs
Benefit Positioning Functional Needs Symbolic Needs Experiential Needs Appealing to Consumer Needs © 2010 South-Western, a part of Cengage Learning. All rights reserved. 133
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Categories of Consumer Needs
Functional Needs Positioning communicates that the brand’s benefits are capable of solving consumers’ consumption-related problems Symbolic Needs Positioning attempts to associate brand ownership with a desired group, role, or self-image Experiential Needs Positioning promotes brand’s extraordinary sensory value or rich potential for cognitive stimulation © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Croc Advertisement Illustrating Appeal to Functional Needs
Figure 5.5 Croc Advertisement Illustrating Appeal to Functional Needs © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Dove Advertisement Illustrating Appeal to Experiential Needs
Figure 5.6 Dove Advertisement Illustrating Appeal to Experiential Needs © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Attribute Positioning
Product-Related Non-Product Related: Usage and User Imagery Attribute Positioning © 2010 South-Western, a part of Cengage Learning. All rights reserved. 137
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Figure 5.8 Ralph Lauren Advertisement Illustrating Positioning Based on User Imagery © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Figure 5.7 Highlander Advertisement Illustrating Product-Related Attribute Positioning © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Repositioning a Brand Why Reposition a Brand? Increase competitiveness
Refresh brand image Extend product life cycle Enter new market segments Why Reposition a Brand? © 2010 South-Western, a part of Cengage Learning. All rights reserved. 140
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Implementing Positioning: Know Thy Consumer
Consumer Processing Model (CPM) Information and choice are a rational, cognitive, systematic and reasoned process Hedonic, Experiential Model (HEM) Consumers’ processing of marcom messages and behavior are driven by emotions in pursuit of fun, fantasies, and feeling © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Comparison of the CPM and HEM Models
Figure 5.9 Comparison of the CPM and HEM Models © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Consumer Processing Model (CPM)
Stage 1: Being exposed to information Stage 2: Paying attention Stage 3: Comprehending attended information Stage 4: Agreeing with comprehended information Stage 5: Retaining accepted information in memory Stage 6: Retrieving information from memory Stage 7: Deciding from alternatives Stage 8: Acting on the basis of the decision © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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CPM Model Stages Stage 1: Being Exposed to information
Is a necessary but insufficient for communication success—truth effect” of repeated exposure to a message Is a function managerial decisions about marcom budget size and choice of media and vehicles Stage 2: Paying Attention Is a deliberate focus on and consideration of a message Involves allocating processing capacity in a selective fashion Is drawn to messages relevant and of interest to current goals Stage 3: Comprehending information Is understanding and creating meaning out of stimuli and symbols Involves perceptual encoding (feature analysis and active analysis) to interpret stimuli May result in an idiosyncratic interpretation or miscomprehension © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Humorous Illustration of Selective Perception
Figure 5.10 Humorous Illustration of Selective Perception © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Miscomprehension Reasons for Miscomprehension
Misleading or Unclear Messages Biased Preconceptions Time Pressures and Noise Reasons for Miscomprehension © 2010 South-Western, a part of Cengage Learning. All rights reserved. 146
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CPM Model Stages (cont’d)
Stage 4: Agreeing with Comprehended Information Does not ensure that the message influences consumers’ behavior Depends on credibility of the message Depends on compatibility of the information with values important to the consumer Stages 5 & 6: Retention and Search and Retrieval of Stored Information Involves the related issues of what consumers remember (recognize and recall) about marketing stimuli Shows how consumers access and retrieve information when in the process of choosing among product alternatives. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Short-Term Memory (STM) Long-Term Memory (LTM)
Elements of Memory Sensory Receptors Sensory Stores (SS) The marketer’s job is to provide positively valued information that consumers will store in LTM Short-Term Memory (STM) Long-Term Memory (LTM) © 2010 South-Western, a part of Cengage Learning. All rights reserved. 148
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Consumer’s Knowledge Structure for the Volkswagen Beetle
Figure 5.11 Consumer’s Knowledge Structure for the Volkswagen Beetle © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Types of Learning Strengthening Memory Concept Linkages
Repeating product claims Being creative in conveying a product’s features Presenting claims in a more concrete fashion Establishing New Linkages Marcom can build strong, favorable, and unique associations between the brand and its features and benefits © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Figure 5.12 Illustration of an Effort to Strengthen a Linkage between a Brand and Its Benefits © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Search and Retrieval of Information
Learned Information Impacts consumer choice behavior when it is searched and retrieved Retrieval of Stored Information Is facilitated when new information is linked with another well known concept that is easily accessed Dual-Coding Theory Pictures are represented in memory in both verbal and visual form Words are less likely to have visual representations © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Hedonic, Experiential Model (HEM)
The HEM Perspective The CPM and HEM models are not mutually exclusive—consumers can be both rational and self-involved in their decision-making processes HEM Communications Generate images, fantasies, and positive emotions and feelings about brands that consumers interpret idiosyncratically Emphasize nonverbal content or emotionally provocative words to connect consumers to brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Illustration of an HEM-Oriented Advertisement
Figure 5.13 Illustration of an HEM-Oriented Advertisement © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Objective Setting and Budgeting
CHAPTER 6 Objective Setting and Budgeting © 2010 South-Western, a part of Cengage Learning All rights reserved.
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Chapter Objectives After reading this chapter you should be able to:
Understand the process of marcom objective setting and the requirements for good objectives. Appreciate the hierarchy-of-effects model and its relevance for setting marcom objectives. Comprehend the role of sales as a marcom objective and the logic of vaguely right versus precisely wrong thinking. Know the relation between a brand’s share of market (SOM) and its share of voice (SOV) and the implications for setting an advertising budget. Understand the various rules of thumb, or heuristics, that guide practical budgeting. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–156
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Setting Marcom Objectives
Goals that the various marcom elements aspire to achieve individually or collectively during a scope of time such as a business quarter or fiscal year Setting Marcom Objectives Is an expression of management consensus Guides the budgeting, message, and media aspects of advertising strategy Provides standards against which results can be measured © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Marcom Objectives and Tools
Marcom Tool Facilitate the successful introduction of new brands Brand naming and packaging, advertising, sales promotions, word-of-mouth buzz generation, and point-of-purchase (P-O-P) displays Build sales of existing brands by increasing the frequency of use, the variety of uses, or the quantity purchased Advertising and sales promotions Inform the trade (wholesalers, agents or brokers, and retailers) and consumers about brand improvements Personal selling and trade-oriented advertising Create brand awareness Advertising, packaging, and P-O-P messages). Enhance a brand’s image Brand naming and packaging, advertising, event sponsorship, cause-oriented marketing, and marketing-oriented public relations Generate sales leads Advertising © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Marcom Objectives and Tools (cont’d)
Marcom Tool Persuade the trade to handle the manufacturer’s brands Trade-oriented advertising and personal selling Stimulate point-of-purchase sales Brand naming and packaging, P-O-P messages, and external store signage Increase customer loyalty Advertising and sales promotions Improve corporate relations with special interest groups Marketing-oriented PR Offset bad publicity about a brand or generate good publicity Counter competitors’ communications efforts Provide customers with reasons for buying immediately instead of delaying a purchase © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Hierarchy of Marcom Effects
Figure 6.1 Hierarchy of Marcom Effects The hierarchy of effects metaphor implies that for marketing communications to be successful it must move consumers from one goal to the next goal. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Hierarchy of Marcom Effects
Advancing Consumers from Unawareness to Awareness Advertising is the most effective and efficient method for quickly creating brand awareness. Creating an Expectation Product benefits from buying and experiencing a brand Encouraging Trial Purchases Free samples, coupons, major price discounts and rebate offers encourage trial behaviors © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Hierarchy of Marcom Effects (cont’d)
Forming Beliefs and Attitudes Beliefs form the basis for developing an overall attitude toward the brand. Beliefs and attitudes are mutually reinforcing Reinforcing Beliefs and Attitudes Marcom serves to reinforce consumer beliefs and attitudes based on product usage experience Accomplishing Brand Loyalty Brands that continue to satisfy expectations foster brand-loyalty which reduces price sensitivity © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Advertisement Illustrating Hierarchy of Marcom Effects
Figure 6.2 Advertisement Illustrating Hierarchy of Marcom Effects © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Criteria That Good Marcom Objectives Must Satisfy
Figure 6.3 Criteria That Good Marcom Objectives Must Satisfy © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Should Marcom Objectives Be Stated in Terms of Sales?
Objectives of Presales Communication To increase the target audience’s brand awareness To enhance the target ir attitudes toward the brand To shift their preferences from the competitors’ brand Sales Objectives The marcom objective literally is to increase sales by a particular amount. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Logic of Vaguely Right versus Precisely Wrong Thinking
Figure 6.4 The Logic of Vaguely Right versus Precisely Wrong Thinking © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Should Marcom Objectives Be Stated in Terms of Sales?
The Traditional View (Thesis) Using sales response as the objective for a branded product’s marcom effort is unsuitable for two reasons: A host of factors (e.g., advertising, sales promotions, and other elements of the marcom program) can affect sales. Marcom’s effect on sales is typically delayed, or lagged. The Heretical View (Antithesis) Marcom objectives should always be stated in terms of sales or market share gains and that failure to do so is a cop-out Marcom’s purpose is to generate sales. Accountability Perspective (Synthesis) Companies and their chief executives and financial officers are demanding greater accountability from marcom programs Efforts should not also be made to assess whether marcom affects pre-sales goals. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Marcom Budgeting Budgeting in Theory
The best (optimal) level of any investment is the level that maximizes profits Marginal revenue = Marginal cost, MR=MC Marginal Cost = Change in total cost = TC Change in quantity Q Marginal Revenue = Change in total revenue = TR Change in quantity Q Advertisers should increase their advertising investment as long as it is profitable to do so © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Marcom Budgeting Sales-to-Advertising Response Function
The relationship between money invested in advertising and the response, or output, of that investment in terms of revenue generated © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Hypothetical Sales-to-Advertising Response Function
Table 6.1 Hypothetical Sales-to-Advertising Response Function © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Budgeting in Practice Percentage-of-Sales Budgeting
Brand advertising budget is a fixed percentage of past (e.g., last year’s) or anticipated (e.g., next year’s) sales volume. Criticism: budget becomes a function of sales Sales = ƒ(Advertising) versus Advertising = ƒ(Sales) Objective-and-Task Budgeting Advertising decision makers specify what role they expect advertising (or some other marcom element) to play for a brand and then set the budget accordingly. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Budgeting in Practice (cont’d)
Percentage-of-Sales Budgeting Brand advertising budget is a fixed percentage of past (e.g., last year’s) or anticipated (e.g., next year’s) sales volume. Criticism: budget becomes a function of sales Sales = ƒ(Advertising) versus Advertising = ƒ(Sales) Objective-and-Task Budgeting Advertising decision makers specify what role they expect advertising (or some other marcom element) to play for a brand and then set the budget accordingly. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Steps in Objective-and-Task Budgeting
Establish specific marketing objectives to be accomplished Assess communication functions required to accomplish overall marketing objectives Determine advertising’s role in the total communication mix Establish specific measurable communication response level goals required to achieve marketing objectives. Establish the budget based on estimates of expenditures required to accomplish the advertising goals. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Budgeting in Practice (cont’d)
Competitive Parity Method Budgeting Setting the marcom budget to match or exceed what competitors are doing Share of Market (SOM) The ratio of one brand’s revenue to total category revenue Share of Voice (SOV) The ratio of a brand’s advertising expenditures to total category advertising expenditures © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Choosing Marcom Pathways
Encoding Variability Hypothesis Contends that people’s memory for information is enhanced when multiple pathways, or connections are created between the object to be remembered and the information about the object that is to be remembered Enhancing Memory for Advertised Information The advertising message itself The advertising media in which the message is placed © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Advertising Spend, SOV, and SOM for Top-10 Wireless Phone Brands
Table 6.2 Advertising Spend, SOV, and SOM for Top-10 Wireless Phone Brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Advertising Spend, SOV, and SOM for Top-10 Beer Brands
Table 6.3 Advertising Spend, SOV, and SOM for Top-10 Beer Brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The SOV Effect and Ad Spending Implications
Figure 6.5 The SOV Effect and Ad Spending Implications © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Budgeting in Practice (cont’d)
The Affordability Method Spending on advertising only those funds that remain after budgeting for everything else. Relegating marcom to a position of comparative insignificance (vis-à-vis other investment options) Marcom are implicitly considered relatively unimportant to a brand’s present success Challenge is to demonstrate that marcom do produce results © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Effective and Creative Advertising Messages
CHAPTER 8 Effective and Creative Advertising Messages © 2010 South-Western, a part of Cengage Learning All rights reserved.
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Chapter Objectives After reading this chapter you should be able to:
Appreciate the factors that promote effective, creative, and “sticky” advertising. Describe the features of a creative brief. Explain alternative creative styles of advertising messages. Understand the concept of means-end chains and their role in advertising strategy. Appreciate the MECCAS model and its role in guiding message formulation. Recognize the role of corporate image and issue advertising. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 8–181
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Creating Effective Advertising
Accomplishment (Output Perspective) Composition (Input Perspective) Meaning of Effective Advertising © 2010 South-Western, a part of Cengage Learning. All rights reserved. 182
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Effective Advertising
Takes the Consumer’s View Extends from Sound Marketing Strategy Doesn’t Overwhelm the Strategy Delivers on Its Promises Breaks through the Clutter © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Creativity: The CAN Elements
Connectedness Appropriateness Novelty The CAN Elements of Creative Ads © 2010 South-Western, a part of Cengage Learning. All rights reserved. 184
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Getting Messages to “Stick”
Characteristics of Sticky Ads Their audience readily comprehends the advertiser’s intended message They are remembered They change the target audience’s brand-related opinions or behavior They have lasting impact: they stick © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Sticky Messages: SUCCESs
Common Elements of Sticky Ads Unexpectedness Simplicity Concreteness Storytelling Emotionality Credibility © 2010 South-Western, a part of Cengage Learning. All rights reserved. 186
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Illustrations of the Aflac Advertising Campaign with the “Spokesduck.”
Figure 8.1 Illustrations of the Aflac Advertising Campaign with the “Spokesduck.” © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Advertising Successes and Mistakes
Value Proposition Is the essence of a message and the reward to the consumer for investing his or her time attending to an advertisement The reward could be information about the product or just an enjoyable experience Research indicates that starting with a strong selling proposition substantially increases the odds of creating effective advertisements © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Combination of Message Convincingness and Execution Quality
Figure 8.2 Combination of Message Convincingness and Execution Quality © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Advertising Successes and Mistakes (cont’d)
Successful Campaigns Result from both the brand management team and the creative team having done their work well Marketing Mistakes Occur when the brand manager fails to distinguish the brand from competitive offerings Agency Mistakes Result from the ad agency’s inability to design an effective execution, even though its brand management client has a convincing message Complete Disasters Are caused by poor value propositions and mediocre executions © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Constructing a Creative Brief
Item Question Background What is the background to this job? Target Audience Whom do we need to reach with the ad campaign? Thoughts and Feelings What do members of the target audience currently think and feel about our brand? Objectives and Measures What do we want the target audience to think or feel about the brand, and what measurable effects is the advertising designed to accomplish? Behavioral Outcome What do we want the target audience to do? Positioning What is the brand positioning? Message and Medium What general message is to be created, and what medium is most appropriate for reaching the target audience? Strategy What is the strategy? Nitty-Gritty Details When (deadline) and how much (budget)? © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Alternative Styles of Creative Advertising
Functionally Oriented Advertising Appeals to consumers’ needs for tangible, physical, and concrete benefits Symbolically or Experientially Oriented Advertising Is directed at psychosocial needs Category-Dominance Advertising Does not necessarily use any particular type of appeal to consumers but is designed to achieve an advantage over competitors in the same product category © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Styles of Creative Advertising
Table 8.1 Styles of Creative Advertising © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Creative Advertising Styles
Creative Style Strategy Unique Selling Proposition Identifying an important difference that makes a brand unique and supports a claim that competitors cannot match Brand Image Developing an image or identity for a brand by associating the brand with symbols that provide a transformational context Resonance Attempting to match “patterns” in an advertisement with the target audience’s stored experiences Emotional Aiming to reach the consumer at a visceral level through the use of emotional strategy Generic Making no attempt to differentiate the dominant brand from competitive offerings or to claim superiority Preemptive Making a generic-type claim but doing so with an assertion of superiority © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Illustration of Resonance Creative Strategy
Figure 8.3 Illustration of Resonance Creative Strategy © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Illustration of Emotional Creative Strategy
Figure 8.4 Illustration of Emotional Creative Strategy © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Section Summary An advertiser might use two or more styles simultaneously. Some experts believe that advertising is most effective when it addresses both functional product and symbolic benefits. Effective advertising must establish a clear meaning of what the brand is and how it compares to competitive offerings. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Means-End Chaining and the Method of Laddering as Guides to Creative Advertising Formulation
Represents the linkages among brand attributes, the consequences obtained from using the brand and “consuming” the attributes, and the personal values that the consequences reinforce © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Means-End Chain Attributes Consequences Values
Features or aspects of advertised brands Consequences What consumers hope to receive (benefits) or avoid (detriments) when consuming brands Values Enduring beliefs people hold regarding what is important in life Brand attributes and the consequences of consuming these attributes are the means whereby people achieve valued ends © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Ten Universal Values Table 8.2
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
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A MECCAS* Model Conceptualization of Advertising Strategy
Table 8.3 A MECCAS* Model Conceptualization of Advertising Strategy * Means-End Conceptualization of Components for Advertising Strategy © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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MECCAS Illustration for Self-Direction Value
Figure 8.5 MECCAS Illustration for Self-Direction Value © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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MECCAS Illustration for Hedonism Value
Figure 8.6 MECCAS Illustration for Hedonism Value © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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MECCAS Illustration for Achievement Value
Figure 8.7 MECCAS Illustration for Achievement Value © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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MECCAS Illustration for Power Value
Figure 8.8 MECCAS Illustration for Power Value © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Identifying Means-End Chains: The Method of Laddering
Laddering Research Technique Is used to identify linkages between attributes (A), consequences (C), and values (V) Constructs a hierarchy, or ladder, of relations between a brand’s attributes and consequences (the means) and consumer values (the end). Attempts to get at the root or deep reasons why individual consumers buy certain products and brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Practical Issues in Identifying Means-End Chains
The laddering method “forces” interviewees to identify hierarchies among attributes, consequences, and values that may actually not exist for them Consumers may perceive clear-cut linkages between attributes and consequences but not necessarily between consequences and values The resulting aggregations of A C V chains are assumed to represent all consumers in the target audience © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Corporate Image and Issue Advertising
Corporate Image Advertising Attempting to increase a firm’s name recognition, establish goodwill for the company and its products, or identify the firm with some meaningful and socially acceptable activity. Corporate Issue (Advocacy) Advertising Involves a firm taking a position on a controversial social issue of public importance with the intention of swaying public opinion. Supports position and best interests of the firm while expressly or implicitly challenging an opponent’s position and denying the accuracy of their facts. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Illustration of Corporate Image Advertisement
Figure 8.9 Illustration of Corporate Image Advertisement © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Message Appeals and Endorsers
CHAPTER 9 Message Appeals and Endorsers © 2010 South-Western, a part of Cengage Learning All rights reserved.
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Chapter Objectives After reading this chapter you should be able to:
Appreciate the efforts advertisers undertake to enhance the consumer’s motivation, opportunity, and ability to process ad messages. Describe the role of endorsers in advertising. Explain the requirements for an effective endorser. Appreciate the factors that enter into the endorser-selection decision. Discuss the role of Q Scores in selecting celebrity endorsers. Describe the role of humor in advertising. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 9–211
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Chapter Objectives (cont’d) After reading this chapter you should be able to:
Explain the logic underlying the use of appeals to fear in advertising. Understand the nature of appeals to guilt in advertising. Discuss the role of sex appeals, including the downside of such usage. Explain the meaning of subliminal messages and symbolic embeds. Appreciate the role of music in advertising. Understand the function of comparative advertising and the considerations that influence the use of this form of advertising. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 9–212
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Why Only Generalizations About the Creation of Advertising Messages
Why advertising approaches are not effective across all products, services, and situations: Buyer behavior is complex, dynamic, and variable across situations Advertisements are themselves highly varied entities Advertising products differ greatly in terms of technological sophistication and ability to involve consumers © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Consumer Characteristics (MOA Factors) Choice of Influence Strategy
Enhancing Consumers’ Motivation, Opportunity, and Ability (MOA) to Process Advertisements Consumer Characteristics (MOA Factors) Brand Strength Choice of Influence Strategy © 2010 South-Western, a part of Cengage Learning. All rights reserved. 214
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Figure 9.1 Enhancing Consumers’ Motivation, Opportunity, and Ability to Process Brand Information © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Figure 9.1 Enhancing Consumers’ Motivation, Opportunity, and Ability to Process Brand Information (cont’d) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Motivation to Attend to Messages
Voluntary Attention Is engaged when consumers devote attention to an advertisement or other marcom message that is perceived as relevant to their current purchase-related goals Involuntary Attention Occurs when attention is captured by the use of attention-gaining techniques rather than by the consumer’s inherent interest in the topic at hand. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
218
Attracting Voluntary Attention
Appeals to Informational and Hedonic Needs Use of Intense or Prominent Cues Use of Novel Stimuli Use of Motion How Marcom Messages Attract Attention © 2010 South-Western, a part of Cengage Learning. All rights reserved. 218
219
An Appeal to Informational Needs
Figure 9.2 An Appeal to Informational Needs © 2010 South-Western, a part of Cengage Learning. All rights reserved.
220
Using Novelty to Attract Attention
Figure 9.3 Using Novelty to Attract Attention © 2010 South-Western, a part of Cengage Learning. All rights reserved.
221
Using Intensity to Attract Attention
Figure 9.4 Using Intensity to Attract Attention © 2010 South-Western, a part of Cengage Learning. All rights reserved.
222
Using Prominence to Attract Attention
Figure 9.5 Using Prominence to Attract Attention © 2010 South-Western, a part of Cengage Learning. All rights reserved.
223
Using Motion to Attract Attention
Figure 9.6 Using Motion to Attract Attention © 2010 South-Western, a part of Cengage Learning. All rights reserved.
224
Motivation to Process Messages
Enhance Consumer Processing Motivation By: Increasing the relevance of brand to consumers Increasing consumer curiosity about brand Relevance Methods Appealing to consumers’ fears Making dramatic presentations Posing rhetorical questions Curiosity Methods Using humor Presenting little information Creating suspense or surprise © 2010 South-Western, a part of Cengage Learning. All rights reserved.
225
Using Suspense to Enhance Processing Motivation
Figure 9.7 Using Suspense to Enhance Processing Motivation © 2010 South-Western, a part of Cengage Learning. All rights reserved.
226
Opportunity to Encode Information
The Communicator’s Goal To provide consumers with opportunities to encode information Promoting Proper Encoding By: Facilitating the repetition of brand information Reducing consumer processing time through the use of pictures and distinct imagery to convey a message © 2010 South-Western, a part of Cengage Learning. All rights reserved.
227
Using a Gestalt to Reduce Processing Time
Figure 9.8 Using a Gestalt to Reduce Processing Time © 2010 South-Western, a part of Cengage Learning. All rights reserved.
228
Ability to Encode Information
The Communicator’s Goal To increase consumers ability to encode information Promoting Encoding Ability By: Using verbal framing to provide context for consumers in accessing brand-based knowledge structures Creating knowledge structures to facilitate exempla-based learning Analogies Demonstrations Concretizations © 2010 South-Western, a part of Cengage Learning. All rights reserved.
229
The Use of Analogy to Create a Knowledge Structure
Figure 9.9 The Use of Analogy to Create a Knowledge Structure © 2010 South-Western, a part of Cengage Learning. All rights reserved.
230
Consumer Learning and Retrieval of Brand Information
Concretizing Is the idea that it is easier for people to remember and retrieve tangible rather than abstract information Exemplar-based learning is accomplished by using concrete words and examples © 2010 South-Western, a part of Cengage Learning. All rights reserved.
231
Exemplar-Based Learning with Concretization
Figure 9.10 Exemplar-Based Learning with Concretization © 2010 South-Western, a part of Cengage Learning. All rights reserved.
232
The Role of Celebrity Endorsers in Advertising
Endorsements Celebrity endorsers Typical-person endorsers Endorser Effectiveness Credibility (internalization) Consumer’s acceptance of the endorser’s position on an issue as his or her own Attractiveness (identification) Identifying with the endorser and adopting of the endorser’s attitudes, behaviors, interests, or preferences © 2010 South-Western, a part of Cengage Learning. All rights reserved.
233
Top Endorsement Incomes of American Athletes, 2007
Table 9.1 Top Endorsement Incomes of American Athletes, 2007 © 2010 South-Western, a part of Cengage Learning. All rights reserved.
234
The Five Components in the TEARS Model of Endorser Attributes
Table 9.2 The Five Components in the TEARS Model of Endorser Attributes T = Trustworthiness The property of being perceived as honest, believable, dependable—as someone who can be trusted but not an expert. E = Expertise The characteristic of having specific skills, knowledge, or abilities with respect to the endorsed brand. A = Physical attractiveness The trait of being regarded as pleasant to look at in terms of a particular group’s concept of attractiveness. R = Respect The quality of being admired or even esteemed due to one’s personal qualities and accomplishments. S = Similarity (to the target audience) The extent to which an endorser matches an audience in terms of characteristics pertinent to the endorsement relationship (age, gender, ethnicity, etc.). © 2010 South-Western, a part of Cengage Learning. All rights reserved.
235
Endorser Selection Considerations: The “No Tears” Approach
Factors in Selecting Celebrity Endorsers: Celebrity and Audience Matchup Celebrity and Brand Matchup Celebrity Credibility Celebrity Attractiveness Cost Considerations Working Ease or Difficulty Factor Saturation Factor The Trouble Factor © 2010 South-Western, a part of Cengage Learning. All rights reserved.
236
Endorser Selection Considerations: The Role of Q Scores
Performer Q (Quotient) Scores Based on representative panel responses to questionnaire: Have you heard of this person? (a measure of familiarity) If so, do you rate him or her poor, fair, good, very good, or one of your favorites? (a measure of popularity) Calculation of Q Score: Percentage of panel rating performer as favorite Percentage of panel familiar with performer © 2010 South-Western, a part of Cengage Learning. All rights reserved.
237
The Role of Humor in Advertising
Use of Humor in Ads: Attracts attention to ads Can increase recall of ad’s message points Can elevate liking of ad and ad’s brand Does not harm comprehension of an ad Does not necessarily increase ad’s persuasion Does not enhance source credibility Is appropriate for established products which are already viewed positively Has variable effects on different individuals, audiences, and in different cultures Can be too distracting to receivers © 2010 South-Western, a part of Cengage Learning. All rights reserved.
238
The Use of Humor in Magazine Advertising
Figure 9.11 The Use of Humor in Magazine Advertising © 2010 South-Western, a part of Cengage Learning. All rights reserved.
239
Appeals to Consumer Fears
Fear-Appeal Logic Stimulate audience involvement with a message Appropriate Intensity of Threat Level Promote acceptance of message arguments Social Disapproval (Not using the advertised brand) Consumers’ Motivation to Avoid Negative Consequences Physical Danger (Engaging in unsafe behavior) Scarcity: Psychological Reluctance (Fear of losing out) © 2010 South-Western, a part of Cengage Learning. All rights reserved. 239
240
Appeals to Consumer Guilt
Breaking rules Violating standards or beliefs Appeal: Feelings of guilt can be relieved by product Ineffective Guilt Ads If guilt appeal lacks credibility If ad is perceived as manipulative © 2010 South-Western, a part of Cengage Learning. All rights reserved.
241
The Use of Sex in Advertising
What Role Does Sex Play in Advertising? Initial attentional lure—the stopping power role of sex Enhance recall of message points Evoke emotional responses such as feelings of arousal or lust. To elicit a positive reaction, sexual content must be appropriately relevant to the subject matter. Potential Downside of Sex Appeals Interference with processing of message arguments and reduction in message comprehension Demeaning to females and males © 2010 South-Western, a part of Cengage Learning. All rights reserved.
242
An Appropriate Use of Sex in Advertising
Figure 9.12 An Appropriate Use of Sex in Advertising © 2010 South-Western, a part of Cengage Learning. All rights reserved.
243
Subliminal Messages and Symbolic Embeds
Subliminal Defined The presentation of stimuli at a speed or visual level that is below the conscious threshold of awareness Forms of Subliminal Stimulation Visual stimulation using a tachistoscope Accelerated speech in auditory messages Embedding of hidden symbols Does Subliminal Advertising Work? A variety of practical problems prevent embedding from being effective in a realistic marketing context © 2010 South-Western, a part of Cengage Learning. All rights reserved.
244
The Functions of Music in Advertising
Attracting Attention Promoting a Positive Mood Increasing Receptivity of Message Communicating Meanings Communication Functions of Music © 2010 South-Western, a part of Cengage Learning. All rights reserved. 244
245
The Role of Comparative Advertising
Is the practice in which advertisers directly or indirectly compare their products against competitive offerings and claim superiority Varies in the direct explicitness of comparisons Is illegal in some countries © 2010 South-Western, a part of Cengage Learning. All rights reserved.
246
Illustration of a Direct Comparison Advertisement
Figure 9.13 Illustration of a Direct Comparison Advertisement © 2010 South-Western, a part of Cengage Learning. All rights reserved.
247
Illustration of an Indirect Comparison Advertisement
Figure 9.14 Illustration of an Indirect Comparison Advertisement © 2010 South-Western, a part of Cengage Learning. All rights reserved.
248
Is Comparative Advertising More Effective?
Effectiveness of Comparative Advertising Less believable than noncomparative advertising Enhances brand name recall Better recall of message arguments Creates stronger purchase intentions Generates more purchases Creates more favorable attitudes for brand © 2010 South-Western, a part of Cengage Learning. All rights reserved. 248
249
Considerations Dictating the Use of Comparative Advertising
Situational Factors The Credibility Issue Distinctive Advantages Assessing Effectiveness Issues in Deciding to Use Comparative Advertising © 2010 South-Western, a part of Cengage Learning. All rights reserved. 249
250
Measuring Advertising Message Effectiveness
CHAPTER 10 Measuring Advertising Message Effectiveness © 2010 South-Western, a part of Cengage Learning All rights reserved.
251
Chapter Objectives After reading this chapter you should be able to:
Explain the rationale and importance of message research. Describe the various research techniques used to measure consumers’ recognition and recall of advertising messages. Illustrate measures of emotional reactions to advertisements. Explicate the role of persuasion measurement, including pre- and post-testing of consumer preference. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 10–251
252
Chapter Objectives (cont’d) After reading this chapter you should be able to:
Explain the meaning and operation of single-source measures of advertising effectiveness. Examine some key conclusions regarding television advertising effectiveness. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 10–252
253
Introduction to Advertising Research
Measuring Message Effectiveness Enables management to increase advertising’s contribution toward achieving marketing goals and yielding a reasonable return on investment What Does Advertising Research Involve? Measures of media effectiveness Measures of message effectiveness (later chapters) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
254
Introduction to Advertising Research
Stages of Advertising Research Copy development stage (pretesting) “Rough” stage Final production stage After media run (posttesting) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
255
Industry Standards for Message Research
Principles of the Positioning Advertising Copy Testing (PACT) Principle 1 Provide measurements that are relevant to the advertising objectives Principle 2 Requires agreement about how the results will be used in advance of each specific test Principle 3 Provides multiple measurements because single measurements are generally inadequate Principle 4 Is based on a model of human response to communications—reception of a stimulus, comprehension of stimulus, and response to stimulus Principle 5 Allows for consideration of whether the advertising stimulus should be exposed more than once © 2010 South-Western, a part of Cengage Learning. All rights reserved.
256
Industry Standards for Message Research
Principles of the Positioning Advertising Copy Testing (PACT) Principle 6 Recognizes that a more finished piece of copy can be evaluated more soundly—alternative executions must be tested in the same degree of finish Principle 7 System provides controls to avoid the bias normally found in the exposure context Principle 8 Takes into account basic considerations of sample definition in requiring that the sample be representative of the target audience Principle 9 Can demonstrate consistent results (reliability) and accurately predicts marketplace performance © 2010 South-Western, a part of Cengage Learning. All rights reserved.
257
What Do Brand Managers and Ad Agencies Want to Learn from Message Research?
Does a particular advertisement have brand equity-enhancing and product sales-expanding potential? Brand awareness Brand image Advertising Research Foundation (ARF) Study Conclusion is that no one measure is universally appropriate or best. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
258
Message Research Methods
Qualitative Message Research Quantitative Message Research General Forms of Message Research © 2010 South-Western, a part of Cengage Learning. All rights reserved. 258
259
Quantitative Message Research
Measurement Control Understanding Improvement Research Method Steps © 2010 South-Western, a part of Cengage Learning. All rights reserved. 259
260
Market Research Measures
Recognition and Recall Assesses whether advertising has successfully influenced brand awareness and influenced brand-related thoughts and feelings Emotional Reaction Provides indicators of whether advertisements have emotionally aroused consumers. Persuasive Impact Represents prebehavioral indicators of whether an advertisement is likely to influence purchase intentions and behavior. Sales Response Determines whether an advertising campaign has affected consumers’ purchases of an advertised brand. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
261
Illustrative Message Research Methods
Table 10.1 Illustrative Message Research Methods © 2010 South-Western, a part of Cengage Learning. All rights reserved.
262
Measures of Recognition and Recall
Starch Readership Service Reader awareness of magazine ads service that examines reader awareness of ads in consumer magazines and business publications Measures the primary objective of a magazine ad—to be seen and read Eligible readers are classified as: Noted Associated Read some Read most © 2010 South-Western, a part of Cengage Learning. All rights reserved.
263
Measures of Recognition and Recall (cont’d)
Starch Readership Service’s ADNORM index Used to compare an advertisement’s scores against other ads in the same product category as well as the same size (e.g., full page) and color classifications (e.g., four-color ads) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
264
Starch-Rated Advertisement for the Kia Sorento
Figure 10.1 Starch-Rated Advertisement for the Kia Sorento 39% noted the ad 37% associated it 27% read some copy 10% read most of copy © 2010 South-Western, a part of Cengage Learning. All rights reserved.
265
Measures of Recognition and Recall (cont’d)
Bruzzone Research Company (BRC) Conducts online testing of consumer recognition and recall of advertisers in television commercials Asks subjects if they remember the advertiser’s name when reviewing the ad with anything identifying the brand now removed Advertising Response Model (ARM) Links responses to the 27 descriptive adjectives to consumers’ attitudes toward both the ad and the advertised brand and to their purchase interes © 2010 South-Western, a part of Cengage Learning. All rights reserved.
266
Measures of Recognition and Recall (cont’d)
Bruzzone Test Provides valid prediction of actual marketplace performance along with being relatively inexpensive Doesn’t provide a before-the-fact indication Offers important information for evaluating a commercial’s effectiveness and whether it should continue to run © 2010 South-Western, a part of Cengage Learning. All rights reserved.
267
Script for Taco Bell’s “Carne Asada Taquitos” Commercial
Figure 10.2 Script for Taco Bell’s “Carne Asada Taquitos” Commercial © 2010 South-Western, a part of Cengage Learning. All rights reserved.
268
Figure 10.3 Advertising Response Model (ARM) for the “Carne Asada Taquitos” Commercial © 2010 South-Western, a part of Cengage Learning. All rights reserved.
269
Figure 10.4 Key Scenes and Questions from BRC’s Test of the “Thanking the Troops” Commercial © 2010 South-Western, a part of Cengage Learning. All rights reserved.
270
Figure 10.5 Advertising Response Model (ARM) for the “Thanking the Troops” Commercial © 2010 South-Western, a part of Cengage Learning. All rights reserved.
271
Measures of Recognition and Recall (cont’d)
Day-After Recall Testing The Ipsos-ASI Next*TV Method Recruit viewers Mail sample video to national sample of consumers Consumers view video with embedded advertisements Day after viewing, consumers are contacted to measure their reactions to the TV program and advertisements Calculation of message recall © 2010 South-Western, a part of Cengage Learning. All rights reserved.
272
Measures of Recognition and Recall (cont’d)
Advantages of In-home Videotape Sampling In-home exposure makes it possible to measure advertising effectiveness in a natural environment Possible to assess the ability of TV commercials to break through the clutter, gain the viewer’s attention, and influence message recallability and persuadability Measuring recall one day after exposure, it can determined how well tested commercials are remembered after a delay period Videotape technology allows the use of representative national sampling By providing several alternative measures of persuasion, the Next*TV method allows brand managers and their ad agencies to select the measures that best meet their specific needs © 2010 South-Western, a part of Cengage Learning. All rights reserved.
273
Measures of Recognition and Recall (cont’d)
The Recall Controversy Recall simply measures whether an ad is received but not whether the message is accepted Recall is age-biased in favor of younger consumers Recall scores generated by ads are not predictive of sales performance—scores and sales do not increase in tandem Recall testing understates the memorability of commercials that employ emotional or feeling-oriented themes and is biased in favor of rational or thought-oriented commercials © 2010 South-Western, a part of Cengage Learning. All rights reserved.
274
Measurement of Emotional Reactions
Brain Imaging (fMRI) Self-Report Measures (Verbal and Visual) Physiological Measures (Galvanometer and Pupillometer) Measuring Consumers’ Emotional Responses to Advertisements © 2010 South-Western, a part of Cengage Learning. All rights reserved. 274
275
Measures of Persuasion
ARS (Advertising Research System) Persuasion Method Premeasure: respondents indicate brands they would prefer to receive if selected to win free items. Postmeasure: After watching a television program with an embedded test commercial, respondents again indicate which brands they would prefer to receive if selected in a drawing. The ARS Persuasion Score The postmeasure percentage of respondents preferring the target brand minus the premeasure percentage who prefer that brand Post % for target brand – Pre % for target brand The higher the ARS Persuasion score, the greater the likelihood that a tested commercial will produce positive sales gains when the focal brand is advertised under real-world, in-market conditions. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
276
ARS Persuasion Scores and In-Market Results
Table 10.2 ARS Persuasion Scores and In-Market Results © 2010 South-Western, a part of Cengage Learning. All rights reserved.
277
Measures of Sales Response
Single-Source Systems Gather purchase data from panels of households and merge them with household demographic characteristics and with information about causal marketing variables such as advertisements that influence household purchases Data Collection Technology Electronic television meters Optical laser scanning of universal product codes (UPC symbols) Split-cable technology. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
278
Single-Source Systems
ACNielsen’s ScanTrack Panel members use handheld scanners to enter: Coupons used Record store deals Record in-store features that influenced their purchasing decisions © 2010 South-Western, a part of Cengage Learning. All rights reserved.
279
Single-Source Systems
IRI’s BehaviorScan Records household purchases by linking up optically scanned purchases with ID numbers Collects detailed demographic information Measures household exposure to new television commercials under real world test conditions Weight tests—panel households are divided into test and control groups Copy tests—holds the amount of weight constant but varies commercial content © 2010 South-Western, a part of Cengage Learning. All rights reserved.
280
Some Major Conclusions about Television Advertising
Ad copy must be distinctive The selling power of advertising wears out over time Ad weight without persuasiveness is insufficient Advertising works quickly if it works Enhancing Brand Performance with Television Advertising © 2010 South-Western, a part of Cengage Learning. All rights reserved. 280
281
Conclusion 1—All Commercials Are Not Created Equal: Ad Copy Must Be Distinctive
Commercials having strong selling propositions are distinctive and tend to achieve higher ARS Persuasion scores. Commercials for new brands tend to be most persuasive, but commercials for established brands can be made persuasive via brand differentiation. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
282
Illustration of a Commercial with a Strong Selling Proposition
Figure 10.6 Illustration of a Commercial with a Strong Selling Proposition © 2010 South-Western, a part of Cengage Learning. All rights reserved.
283
Table 10.3 BehaviorScan Tests of Advertising Effectiveness for 23 Frito-Lay Brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
284
Conclusion 2—More Is Not Necessarily Better: Weight Is Not Enough
Ad Weight The frequency with which an advertisement is repeated to the same group of panel members in an IRI BehaviorScan test Conclusion: An ineffective ad (not distinctive or persuasive) has no likelihood of increasing sales even if the TV ad weight is doubled or tripled © 2010 South-Western, a part of Cengage Learning. All rights reserved.
285
Relations among Advertising Weight, Persuasion Scores, and Sales
Table 10.4 Relations among Advertising Weight, Persuasion Scores, and Sales © 2010 South-Western, a part of Cengage Learning. All rights reserved.
286
Figure 10.7 The Role of Sales-Effective Advertising for an Undisclosed Campbell Soup Brand © 2010 South-Western, a part of Cengage Learning. All rights reserved.
287
The Relationship Between Media Weight and Creative Content
47 commercials for established brands were tested and classified as: Rational information Heuristic appeals Affectively based cues Finding: Increased advertising weight led to significant sales increases in sales only for commercials using affective cues © 2010 South-Western, a part of Cengage Learning. All rights reserved.
288
Conclusion 3—All Good Things Must End: Advertising Eventually Wears Out
Advertising ultimately wears out and must be refreshed to maintain or increase brand sales Familiar brands have been shown to wear out more slowly than unfamiliar brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
289
Conclusion 4—Don’t Be Stubborn: Advertising Works Quickly or Not at All
Some advertisers tend to “hang in there” and wait for an ad to increase sales Most of the sales impact occurs in the first three months of a new ad “Sunk costs” are an issue to consider, but if an ad is not working at first, it probably never will © 2010 South-Western, a part of Cengage Learning. All rights reserved.
290
Measuring Advertising Message Effectiveness
CHAPTER 10 Measuring Advertising Message Effectiveness © 2010 South-Western, a part of Cengage Learning All rights reserved.
291
Chapter Objectives After reading this chapter you should be able to:
Explain the rationale and importance of message research. Describe the various research techniques used to measure consumers’ recognition and recall of advertising messages. Illustrate measures of emotional reactions to advertisements. Explicate the role of persuasion measurement, including pre- and post-testing of consumer preference. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 10–291
292
Chapter Objectives (cont’d) After reading this chapter you should be able to:
Explain the meaning and operation of single-source measures of advertising effectiveness. Examine some key conclusions regarding television advertising effectiveness. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 10–292
293
Introduction to Advertising Research
Measuring Message Effectiveness Enables management to increase advertising’s contribution toward achieving marketing goals and yielding a reasonable return on investment What Does Advertising Research Involve? Measures of media effectiveness Measures of message effectiveness (later chapters) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
294
Introduction to Advertising Research
Stages of Advertising Research Copy development stage (pretesting) “Rough” stage Final production stage After media run (posttesting) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
295
Industry Standards for Message Research
Principles of the Positioning Advertising Copy Testing (PACT) Principle 1 Provide measurements that are relevant to the advertising objectives Principle 2 Requires agreement about how the results will be used in advance of each specific test Principle 3 Provides multiple measurements because single measurements are generally inadequate Principle 4 Is based on a model of human response to communications—reception of a stimulus, comprehension of stimulus, and response to stimulus Principle 5 Allows for consideration of whether the advertising stimulus should be exposed more than once © 2010 South-Western, a part of Cengage Learning. All rights reserved.
296
Industry Standards for Message Research
Principles of the Positioning Advertising Copy Testing (PACT) Principle 6 Recognizes that a more finished piece of copy can be evaluated more soundly—alternative executions must be tested in the same degree of finish Principle 7 System provides controls to avoid the bias normally found in the exposure context Principle 8 Takes into account basic considerations of sample definition in requiring that the sample be representative of the target audience Principle 9 Can demonstrate consistent results (reliability) and accurately predicts marketplace performance © 2010 South-Western, a part of Cengage Learning. All rights reserved.
297
What Do Brand Managers and Ad Agencies Want to Learn from Message Research?
Does a particular advertisement have brand equity-enhancing and product sales-expanding potential? Brand awareness Brand image Advertising Research Foundation (ARF) Study Conclusion is that no one measure is universally appropriate or best. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
298
Message Research Methods
Qualitative Message Research Quantitative Message Research General Forms of Message Research © 2010 South-Western, a part of Cengage Learning. All rights reserved. 298
299
Quantitative Message Research
Measurement Control Understanding Improvement Research Method Steps © 2010 South-Western, a part of Cengage Learning. All rights reserved. 299
300
Market Research Measures
Recognition and Recall Assesses whether advertising has successfully influenced brand awareness and influenced brand-related thoughts and feelings Emotional Reaction Provides indicators of whether advertisements have emotionally aroused consumers. Persuasive Impact Represents prebehavioral indicators of whether an advertisement is likely to influence purchase intentions and behavior. Sales Response Determines whether an advertising campaign has affected consumers’ purchases of an advertised brand. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
301
Illustrative Message Research Methods
Table 10.1 Illustrative Message Research Methods © 2010 South-Western, a part of Cengage Learning. All rights reserved.
302
Measures of Recognition and Recall
Starch Readership Service Reader awareness of magazine ads service that examines reader awareness of ads in consumer magazines and business publications Measures the primary objective of a magazine ad—to be seen and read Eligible readers are classified as: Noted Associated Read some Read most © 2010 South-Western, a part of Cengage Learning. All rights reserved.
303
Measures of Recognition and Recall (cont’d)
Starch Readership Service’s ADNORM index Used to compare an advertisement’s scores against other ads in the same product category as well as the same size (e.g., full page) and color classifications (e.g., four-color ads) © 2010 South-Western, a part of Cengage Learning. All rights reserved.
304
Starch-Rated Advertisement for the Kia Sorento
Figure 10.1 Starch-Rated Advertisement for the Kia Sorento 39% noted the ad 37% associated it 27% read some copy 10% read most of copy © 2010 South-Western, a part of Cengage Learning. All rights reserved.
305
Measures of Recognition and Recall (cont’d)
Bruzzone Research Company (BRC) Conducts online testing of consumer recognition and recall of advertisers in television commercials Asks subjects if they remember the advertiser’s name when reviewing the ad with anything identifying the brand now removed Advertising Response Model (ARM) Links responses to the 27 descriptive adjectives to consumers’ attitudes toward both the ad and the advertised brand and to their purchase interes © 2010 South-Western, a part of Cengage Learning. All rights reserved.
306
Measures of Recognition and Recall (cont’d)
Bruzzone Test Provides valid prediction of actual marketplace performance along with being relatively inexpensive Doesn’t provide a before-the-fact indication Offers important information for evaluating a commercial’s effectiveness and whether it should continue to run © 2010 South-Western, a part of Cengage Learning. All rights reserved.
307
Script for Taco Bell’s “Carne Asada Taquitos” Commercial
Figure 10.2 Script for Taco Bell’s “Carne Asada Taquitos” Commercial © 2010 South-Western, a part of Cengage Learning. All rights reserved.
308
Figure 10.3 Advertising Response Model (ARM) for the “Carne Asada Taquitos” Commercial © 2010 South-Western, a part of Cengage Learning. All rights reserved.
309
Figure 10.4 Key Scenes and Questions from BRC’s Test of the “Thanking the Troops” Commercial © 2010 South-Western, a part of Cengage Learning. All rights reserved.
310
Figure 10.5 Advertising Response Model (ARM) for the “Thanking the Troops” Commercial © 2010 South-Western, a part of Cengage Learning. All rights reserved.
311
Measures of Recognition and Recall (cont’d)
Day-After Recall Testing The Ipsos-ASI Next*TV Method Recruit viewers Mail sample video to national sample of consumers Consumers view video with embedded advertisements Day after viewing, consumers are contacted to measure their reactions to the TV program and advertisements Calculation of message recall © 2010 South-Western, a part of Cengage Learning. All rights reserved.
312
Measures of Recognition and Recall (cont’d)
Advantages of In-home Videotape Sampling In-home exposure makes it possible to measure advertising effectiveness in a natural environment Possible to assess the ability of TV commercials to break through the clutter, gain the viewer’s attention, and influence message recallability and persuadability Measuring recall one day after exposure, it can determined how well tested commercials are remembered after a delay period Videotape technology allows the use of representative national sampling By providing several alternative measures of persuasion, the Next*TV method allows brand managers and their ad agencies to select the measures that best meet their specific needs © 2010 South-Western, a part of Cengage Learning. All rights reserved.
313
Measures of Recognition and Recall (cont’d)
The Recall Controversy Recall simply measures whether an ad is received but not whether the message is accepted Recall is age-biased in favor of younger consumers Recall scores generated by ads are not predictive of sales performance—scores and sales do not increase in tandem Recall testing understates the memorability of commercials that employ emotional or feeling-oriented themes and is biased in favor of rational or thought-oriented commercials © 2010 South-Western, a part of Cengage Learning. All rights reserved.
314
Measurement of Emotional Reactions
Brain Imaging (fMRI) Self-Report Measures (Verbal and Visual) Physiological Measures (Galvanometer and Pupillometer) Measuring Consumers’ Emotional Responses to Advertisements © 2010 South-Western, a part of Cengage Learning. All rights reserved. 314
315
Measures of Persuasion
ARS (Advertising Research System) Persuasion Method Premeasure: respondents indicate brands they would prefer to receive if selected to win free items. Postmeasure: After watching a television program with an embedded test commercial, respondents again indicate which brands they would prefer to receive if selected in a drawing. The ARS Persuasion Score The postmeasure percentage of respondents preferring the target brand minus the premeasure percentage who prefer that brand Post % for target brand – Pre % for target brand The higher the ARS Persuasion score, the greater the likelihood that a tested commercial will produce positive sales gains when the focal brand is advertised under real-world, in-market conditions. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
316
ARS Persuasion Scores and In-Market Results
Table 10.2 ARS Persuasion Scores and In-Market Results © 2010 South-Western, a part of Cengage Learning. All rights reserved.
317
Measures of Sales Response
Single-Source Systems Gather purchase data from panels of households and merge them with household demographic characteristics and with information about causal marketing variables such as advertisements that influence household purchases Data Collection Technology Electronic television meters Optical laser scanning of universal product codes (UPC symbols) Split-cable technology. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
318
Single-Source Systems
ACNielsen’s ScanTrack Panel members use handheld scanners to enter: Coupons used Record store deals Record in-store features that influenced their purchasing decisions © 2010 South-Western, a part of Cengage Learning. All rights reserved.
319
Single-Source Systems
IRI’s BehaviorScan Records household purchases by linking up optically scanned purchases with ID numbers Collects detailed demographic information Measures household exposure to new television commercials under real world test conditions Weight tests—panel households are divided into test and control groups Copy tests—holds the amount of weight constant but varies commercial content © 2010 South-Western, a part of Cengage Learning. All rights reserved.
320
Some Major Conclusions about Television Advertising
Ad copy must be distinctive The selling power of advertising wears out over time Ad weight without persuasiveness is insufficient Advertising works quickly if it works Enhancing Brand Performance with Television Advertising © 2010 South-Western, a part of Cengage Learning. All rights reserved. 320
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Conclusion 1—All Commercials Are Not Created Equal: Ad Copy Must Be Distinctive
Commercials having strong selling propositions are distinctive and tend to achieve higher ARS Persuasion scores. Commercials for new brands tend to be most persuasive, but commercials for established brands can be made persuasive via brand differentiation. © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Illustration of a Commercial with a Strong Selling Proposition
Figure 10.6 Illustration of a Commercial with a Strong Selling Proposition © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Table 10.3 BehaviorScan Tests of Advertising Effectiveness for 23 Frito-Lay Brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Conclusion 2—More Is Not Necessarily Better: Weight Is Not Enough
Ad Weight The frequency with which an advertisement is repeated to the same group of panel members in an IRI BehaviorScan test Conclusion: An ineffective ad (not distinctive or persuasive) has no likelihood of increasing sales even if the TV ad weight is doubled or tripled © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Relations among Advertising Weight, Persuasion Scores, and Sales
Table 10.4 Relations among Advertising Weight, Persuasion Scores, and Sales © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Figure 10.7 The Role of Sales-Effective Advertising for an Undisclosed Campbell Soup Brand © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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The Relationship Between Media Weight and Creative Content
47 commercials for established brands were tested and classified as: Rational information Heuristic appeals Affectively based cues Finding: Increased advertising weight led to significant sales increases in sales only for commercials using affective cues © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Conclusion 3—All Good Things Must End: Advertising Eventually Wears Out
Advertising ultimately wears out and must be refreshed to maintain or increase brand sales Familiar brands have been shown to wear out more slowly than unfamiliar brands © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Conclusion 4—Don’t Be Stubborn: Advertising Works Quickly or Not at All
Some advertisers tend to “hang in there” and wait for an ad to increase sales Most of the sales impact occurs in the first three months of a new ad “Sunk costs” are an issue to consider, but if an ad is not working at first, it probably never will © 2010 South-Western, a part of Cengage Learning. All rights reserved.
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