Chapter 6

How Advertising Works

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

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

The Human Communication Process Sources

Encoding Message Channel

Decoding
Feedback Receiver
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A general Model of the Communication Process for Promotions

Feedback
Model of the communication process Relevant Agents and stimuli

Source

Message
Advertisements
Sales promotions Personal selling Publicity

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

Receiver
Consumer

Action
Consumer

Manufacturer
Promotion manager Ad agency Salesperson Spokesperson

Key actions Manage promotion Strategy Or decision

Analyze consumer/ product relationship Determine promotion objectives and budget Design and implement promotion strategy Evaluate promotion strategy

Encode promotion communication Design promotion to communicate appreciate meanings

Transmit promotion communication Select media or distribution method to expose promotion message to appropriate audience

Decode Promotion communication Attend to message Interpret promotion Integrate meanings to form Aact and behavioral intention

Take action

Purchase product Store contact Word-mouth communication

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

Internal Environment of the Advertising Process (Fig. 6.2)

Noise is Any Factor That Interferes With the Correct Delivery of the Ad Message.
Target Audiences Attention Depends on: Their Perceived Needs, Information Processing, and Avoidance. Media Plan Produces the Best Set of Media To Reach the Target Audience at the Best Time and Place. The Creative Strategy Outlines What Type of Message Needs to be Developed.
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The Message Reception Process (Fig. 6.3)

Marketing Communications Spectrum (DAGMAR)

- Advertising - Promotion - Personal selling - Publicity -User recommendation - Product design - Availability - Display - Price - Packaging -Exhibits MKTG FORCES

U N A W A R E N E S S

A W A R E N E S S

C O M P R E H E N S I O N

C O N V I C T I O N

A C T I O N

- Competition from other brands within the product category - Memory lapse - Sales resistance - Market attrition - Competition from other product categories - Other environmental factors COUNTERVAILING FORCES
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Alternative Response Hierarchies: Three-Orders Model

Topical Involvement High
(Learning model)
Cognitive

Low

High
Affective (Low Involvement model)

Cognitive

Perceived Product Differentiation

Conative

(Dissonance attribution model) Conactive

Conative

Low

Affective

Affective

Cognitive 9

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)

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Communication Effects Models Models Alternative Response Hierarchy

Dissonance/Attribution model

high topical involvement, but low brand differentiation conative--> affective--> cognitive reducing dissonance as a primary role of adv. learning without involvement (Herbert Krugman) cognitive->conative->affective

Low involvement model

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

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Hierarchy of effects

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?

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Perception: Creating Stopping Power

One of the Biggest Challenges for Advertisers is Simply to Get Consumers to Notice Their Messages.
Exposure
Messages Have To be Placed in a Medium that the Target Audience Sees, Reads, Watches, or Listens to.

Attention
The Mind is Engaged; it is Focusing on Something.

Stopping Power
Ads that Stop The Scanning are Usually High in Intrusiveness & Originality.

Attention is Aroused by a Trigger.

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Awareness: Making an Impression

Attention
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 Consumers Interest in a Product, Medium or Message.
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- Relevance

- Interest

Involvement

Understanding: Making It Clear

Understanding is a Conscious Effort to Make Sense of the Information Being Presented and May Involve:

Teaching, Learning, Knowing

Association

Clear Relevant Explanations

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Persuasion: Attitude Change and Trial

Retrial Appeals Persuasive Ads Try to Establish, Reinforce, or Change an Attitude, Build an Argument, Touch an Emotion, or Anchor a Conviction Based on:

Conviction Leads to Trail

Attitudes

Opinions

Emotions

Arguments

Likability

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

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 How someone feels about the product, etc. may be just as important as what that person knows about it.

Emotions

Conviction Leads to Trial

Strong belief about a products benefits that leads to trial. i.e. good for us, make us look better
Goal is to build strong brand loyalty though repurchases.
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Retrial

Memorability: Locking Power

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

Brand Image:
Consumers Mental Image of a Brand Based On:
Product Personality Physical Dimension Psychological Dimension Promise

Builds Brand Equity

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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.

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