1. How Advertising Works Advertising Principles and Practices

2. Prentice Hall, © 20094-2 The Communication Model Mass communication is a one-way process. Interactive communication is two-way—a dialogue.

3. Advertising as Communication 4-3Prentice Hall, © 2009

4. 4-4 Adding Interaction to Advertising If advertisers want to overcome the impersonal nature of mass communication, they need to learn to receive (listen) as well as send information. –The Internet has created opportunities for Web sites, chat rooms, email, and blogs to interact. Two-way interaction is an objective of Integrated Marketing Communications Now, feedback is occurring in real time. –Through personal selling, customer service, online marketing, response devices, toll-free numbers, and email.

5. Prentice Hall, © 20094-5 Adding Interaction to Advertising Advertisers must learn to receive (listen) and send information not overcome the impersonal nature of mass communication. –The Internet has created opportunities for Web sites, chat rooms, email, and blogs to interact Two-way interaction is an objective of Integrated Marketing Communications Now, feedback is occurring in real time. –Through personal selling, customer service, online marketing, response devices, toll-free numbers, and email.

6. Prentice Hall, © 20094-6 Traditional Approaches AIDA (Attention, Interest, Desire, Action) Think-Feel-Do Domains –Messages have various impacts on consumers simultaneously (perception, learning, and persuasion). Problems –They presume a predictable set of steps. –Some effects are missing— brand linkage and motivation. –Brand communication is the most important.

7. The Facets Model of Effects 4-7Prentice Hall, © 2009 Does a more complete job of explaining how advertising creates consumer responses. Useful in both setting objectives and evaluating advertising effectiveness The six facets come together to make up a unique customer response to an advertising message.

8. Prentice Hall, © 20094-8 See/Hear: the Perception Facet Perception: the process by which we receive information through our five senses and assign meaning to it. Selective perception: consumers select messages to which they pay attention. Principle: For an advertisement to be effective, it first has to get noticed or at least register on some minimal level on our senses.

9. Prentice Hall, © 20094-9 See/Hear: Key Factors Driving Perception Exposure –Media planners want consumers to see or hear the message. Selection and attention –Selective attention: consumers choose to attend to the message. Interest and relevance –Interest: receiver mentally engages with the ad or product. –Relevance: message connects on some personal level. Awareness –An ad makes an impression; it registers with the consumer. Recognition –Recognition: people remember the ad. –Recall: people remember what the ad said.

10. Prentice Hall, © 20094-10 Feel: the Affective or Emotional Facet Affective responses mirror our feelings about something. “Affective” describes something that stimulates wants, touches the emotions, and elicits feelings. Subliminal effects are message cues given below the threshold of perception.

11. Prentice Hall, © 20094-11 Feel: Factors Driving the Affective Response Wants –Driven by emotions; based on desires, wishes, longings, cravings. Feelings –Emotional appeals based on humor, love, or fear. Liking (the brand and the ad) –If you like the ad, those positive feelings transfer to the brand. Resonate –A feeling that the message rings true. –Consumer identifies with the brand on a personal level. Principle: A positive response to an ad is important because advertisers hope that liking the ad will increase liking the brand.

12. Prentice Hall, © 20094-12 Understand: the Cognitive Facet Cognition: how consumers search for and respond to information; learn and understand something.. It’s a rational, “left-brain” approach. To creatively communicate its new seating in coach, American Airlines used the left-brain/right brain approach in this ad.

13. Prentice Hall, © 20094-13 Understand: Factors Driving the Cognitive Response Need –Something you think about. –Ad messages describe something missing in consumer’s lives. Cognitive Learning –Presenting facts, information, and explanations leads to. understanding. –Comprehension: process by which we understand, make sense of things, or acquire knowledge. Differentiation –The consumer’s ability to separate one brand from another, based on an understanding of a competitive advantage. Recall –A measure of learning or understanding. –You remember the ad, the brand, and the copy points.

14. Prentice Hall, © 20094-14 Connect: the Association Facet Association: Using symbols to communicate. The primary tool used in brand communication. Brand linkage reflects the degree to which the associations presented in the message, as well as the consumer’s interest, are connected to the brand.

15. Prentice Hall, © 20094-15 Connect: Factors Driving Association Symbolism –A brand takes on a symbolic meaning. –It stands for certain, usually abstract, qualities. Conditional Learning –Thoughts and feelings associated with the brand. –Beer is about sporting events, beach parties, and pretty women. Transformation –A product is transformed into something special, differentiated by its brand image symbolism and personality.. Principle: Advertising creates brand meaning through symbolism and association. These meanings transform a generic product into a specific brand with a distinctive image and personality.

16. Prentice Hall, © 20094-16 Believe: the Persuasion Facet Persuasion: influencing or motivating the receiver of a message to believe or do something. Attitude: an inclination to react in a given way. Attitudes become beliefs when people are convinced. Principle: Advertising employs both rational arguments and compelling emotions to create persuasive messages.

17. Prentice Hall, © 20094-17 Believe: Factors Driving Persuasion Motivation –Something (e.g., hunger) prompts one to act in a certain way. Influence –Opinion leaders, bandwagon appeals, and word of mouth. Involvement –High involvement vs. low involvement. Conviction –Consumers achieve a state of certainty (belief) about a brand. Loyalty –Brand loyalty is both attitude and action. Believability and Credibility –Believability, credibility, source credibility.

18. Prentice Hall, © 20094-18 Act: The Behavior Facet Behavior: the action response. Involves a number of actions including: –Trying or buying the product –Visit a store –Return an inquiry card –Call a toll-free number –Click on a Web site Direct action vs. indirect action

19. Prentice Hall, © 20094-19 Act: Factors Driving the Behavioral Response Try –Important for new or expensive products. Buy –Advertising stimulates sales by the a call-to-action. Contact –Consumers respond by contacting the advertiser. Advocate and Refer –Advocacy: speaking out on a brand’s behalf. –Referral: a satisfied customer recommends a favorite brand. Prevent –Presenting negative messages about an unwanted behavior and creating incentives to stimulate the desired behavior.

20. Do anti-drug ads lead to increased drug usage? 4-20Prentice Hall, © 2009

21. 4-21 The Power of Brand Communication Interaction and Impact –The effects are interdependent. –They are not all equally effective in all situations. Strong and Weak Effects –Strong Theory: advertising can persuade people who had never bought a brand to buy it once, and then repeatedly. –Weak Theory: advertising has a very limited impact on consumers and is best used to reinforce existing brand perceptions, rather than change attitudes. Principle: Advertising has delayed effects in that a consumer may see or hear an advertisement but not act on that message until later when in a store.

22. Prentice Hall, © 20094-22 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall