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1 Chapter 6 How Advertising Works

1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Page 1: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

1

Chapter 6

How Advertising Works

Page 2: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

2

Learning Objectives

Review consumer behavior

Understand the basic human communication process.

Learn about what advertising can do to influence consumers at various stages of the process.

Page 3: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Your Experiences

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

Page 4: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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The Human Communication Process

SourcesSources

EncodingEncoding

MessageMessage

ChannelChannel

DecodingDecoding

ReceiverReceiverFeedback

Page 5: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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A general Model of the Communication Process for Promotions

Feedback

Source Message Transmission Receiver ActionModel of the communication process

• Manufacturer• Promotion manager• Ad agency• Salesperson• Spokesperson

• Advertisements

• Sales promotions

• Personal selling

• Publicity

• Media: TV, magazines• Direct mail: in-store• In-home; telephone• Newspaper articles

• Consumer • Consumer

Manage promotion

Strategy

Encode promotion

communication

Transmit promotion

communication

Decode Promotion

communication

Take action

• Analyze consumer/

product relationship• Determine promotion

objectives and budget• Design and implement

promotion strategy• Evaluate promotion

strategy

• Design promotion

to communicate

appreciate

meanings

• Select media or

distribution method

to expose promotion

message to

appropriate

audience

• Attend to message

• Interpret promotion

• Integrate meanings

to form Aact and

behavioral intention

• Purchase product• Store contact• Word-mouth

communication

Relevant

Agents and

stimuli

Key actions

Or decision

Source: Adapted from Figure 8.1 in Henry Assael, Consumer Behavior and Marketing Action, 3rd ed.

Page 6: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Noise is Any Factor That Interferes Withthe Correct Delivery of the Ad Message.

Noise is Any Factor That Interferes Withthe Correct Delivery of the Ad Message.

Target Audience’s Attention Depends on: Their Perceived Needs,

Information Processing, and Avoidance.

Target Audience’s Attention Depends on: Their Perceived Needs,

Information Processing, and Avoidance.

Media Plan Produces the Best Set of MediaTo Reach the Target Audience at the

Best Time and Place.

Media Plan Produces the Best Set of MediaTo Reach the Target Audience at the

Best Time and Place.

The Creative Strategy Outlines What Type of Message Needs to be Developed.

The Creative Strategy Outlines What Type of Message Needs to be Developed.

Internal Environment of the Advertising Process (Fig. 6.2)

Page 7: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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The Message Reception Process (Fig. 6.3)

Page 8: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Marketing Communications Spectrum (DAGMAR)

- Advertising- Promotion

- Personal selling- Publicity

-User recommendation- Product design

- Availability- Display- Price

- Packaging-Exhibits

MKTG FORCES

- Competition from other brands within

the product category- Memory lapse

- Sales resistance

- Market attrition

- Competition from otherproduct categories

- Other environmentalfactors

COUNTERVAILING FORCES

UNAWARENESS

AWARENESS

COMPREHENSION

CONVICTION

ACTION

Page 9: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Alternative Response Hierarchies: Three-Orders Model

Perceived Product

Differentiation

High

Low

(Learning model)

Cognitive

Affective

Conative

(Dissonance attribution model)

Conactive

Affective

Cognitive

(Low Involvement model)

Cognitive

Conative

Affective

High Low

Topical Involvement

Page 10: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Communication Effects Models

Traditional Response Hierarchy Models AIDA Hierarchy of effects Innovation adoption Information processing Two assumptions: high topical involvement and a

high level of brand differentiation Standard learning model (cognitive-->affective-->

conative)

Page 11: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Communication Effects Models

Alternative Response Hierarchy Models Dissonance/Attribution model

high topical involvement, but low brand differentiation conative--> affective--> cognitive reducing dissonance as a primary role of adv.

Low involvement model “learning without involvement” (Herbert Krugman) cognitive->conative->affective

simple cues in advertising triggers a brand choice developing such cues as a primary role of advertising

Hierarchy of effects Innovation adoption Information processing Two assumptions: high topical involvement and a high level of brand

differentiation Variations of standard learning model

Page 12: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Implications of effects models

Which model best represents consumer responses related to the product/service being promoted?

Where do consumers perceive us to be located in the hierarchy?==>Then, where do we plan to move

consumers to in the hierarchy?

Page 13: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Exposure

Messages Have To be Placed in a Medium

that the TargetAudience

Sees, Reads,Watches, or Listens to.

Exposure

Messages Have To be Placed in a Medium

that the TargetAudience

Sees, Reads,Watches, or Listens to.

Attention

The Mind is Engaged; it isFocusing onSomething.

Attention isAroused by a

Trigger.

Attention

The Mind is Engaged; it isFocusing onSomething.

Attention isAroused by a

Trigger.

Stopping Power

Ads that StopThe Scanning

are UsuallyHigh in

Intrusiveness& Originality.

Stopping Power

Ads that StopThe Scanning

are UsuallyHigh in

Intrusiveness& Originality.

Perception: Creating Stopping Power

One of the Biggest Challenges for Advertisers is Simply to Get Consumers to Notice Their Messages.

Page 14: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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AttentionAttention

- Relevance - Relevance

- Interest - Interest

InvolvementInvolvement

Awareness: Making an Impression

Attention is a Message Design Problem and is Obtained by Providing:

Ads That Speak to Our Personal Interest are Noticed More Often.

Interest is Usually Created by Personal Involvement or Curiosity.

Intensity of the Consumer’s Interest in a Product, Medium or Message.

Page 15: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Understanding is a Conscious Effort to

Make Sense of the Information Being

Presented and May Involve:

Understanding is a Conscious Effort to

Make Sense of the Information Being

Presented and May Involve:

AssociationAssociationTeaching, Learning, Knowing

Teaching, Learning, Knowing

Clear Relevant ExplanationsClear Relevant Explanations

Understanding: Making It Clear

Page 16: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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OpinionsEmotions

Conviction Leads to Trail

Attitudes

Arguments Likability

Retrial

Persuasion: Attitude Change and Trial

Appeals

Persuasive Ads Try to Establish, Reinforce, or

Change an Attitude, Build an Argument,

Touch an Emotion, or Anchor a Conviction

Based on:

Page 17: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Persuasion: Attitude Change and Trial

Appeals Something that makes the product particularly attractive

or interesting to the consumer. i.e. security, esteem.

Attitudes and Opinions Establish a new opinion where none has existed before, Reinforce an existing opinion, Change an existing opinion.

Likability How people respond to a product or a message. i.e.

use of entertainment

Page 18: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Persuasion: Attitude Change and Trial

Arguments A line of reasoning in which one point follows from

another, leading to a logical conclusion. i.e Jeep ad

Emotions How someone feels about the product, etc. may be just

as important as what that person knows about it.

Conviction Leads to Trial Strong belief about a product’s benefits that leads to

trial. i.e. good for us, make us look better

Retrial Goal is to build strong brand loyalty though repurchases.

Page 19: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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MemorabilityLocking Messages Into Consumer’s Minds Through

Recognition and Recall

MemorabilityLocking Messages Into Consumer’s Minds Through

Recognition and Recall

- Key VisualsVivid Image That Helps a Consumer

Remember a Product or Message

- Key VisualsVivid Image That Helps a Consumer

Remember a Product or Message

- RepetitionJingles, Slogans, and Taglines are

Key Repetition Tools

- RepetitionJingles, Slogans, and Taglines are

Key Repetition Tools

***Vampire CreativityPeople Remember a Commercial,

But Not the Product

***Vampire CreativityPeople Remember a Commercial,

But Not the Product

Memorability: Locking Power

Page 20: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Brand Image:Consumers’ Mental Image of a Brand Based On:

Brand Image:Consumers’ Mental Image of a Brand Based On:

Product PersonalityProduct Personality

Builds Brand EquityBuilds Brand Equity

Psychological DimensionPsychological Dimension

PromisePromise

How Brands Work

Physical Dimension

Page 21: 1 Chapter 6 How Advertising Works. 2 Learning Objectives Review consumer behavior Understand the basic human communication process. Learn about what advertising

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Review

Review consumer behavior

Understand the basic human communication process.

Learn about what advertising can do to influence consumers at various stages of the process.