Chapter = 06 Source, Message and Channel Factors

 The Persuasion Matrix
The persuasion matrix which helps marketers see how each controllable element of the communication process interacts with the consumer’s response process. The matrix has two sets of variables. Independent variables are the controllable components of the communication process while dependent variables are the steps a receiver goes through in being persuaded.

 Promotional Planning Elements
That corresponds to the numbers in the cells of the persuasion matrix that were presented in the previous slide. These include:  Receiver/comprehension – can the receiver comprehend the ad? Consideration must be given to whether the target audience can understand and comprehend a message.  Channel/presentation – which media will increase presentation? How effective is a particular media vehicle in reaching the target audience?  Message/yielding – what type of message will create favorable attitudes or feelings? Marketers try to create messages that will lead to positive feelings toward the product.  Source/attention – who will be effective in getting consumers’ attention? Marketers select sources that will be effective in gaining the attention of the target audience such as celebrities, athletes, or attractive models.

 Source Attributes and Receiver Processing Modes
The various categories of source attributes and receiver processing modes associated with each one. The three basic sources attributes and processing modes associated with each are as follows: • Credibility – the extent to which the recipient sees the source as having relevant knowledge skill or experience and trusts the source to give unbiased, objective information. • Internalization – the process by which a receiver adopts the position advocated by the source because it is perceived as accurate and makes it part of his or her belief system • Attractiveness – refers to the similarity, familiarity, and/or likeability of the source • Identification – the process by which an individual is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, or behaviors. • Power – refers to the ability (real or perceived) of the source to administer rewards or punishment to the receiver • Compliance – the process by which the receiver accepts the position advocated by the source to receive rewards or avoid punishment.

 Source Credibility
There are two important dimensions to source credibility, expertise and trustworthiness. Marketers recognize that expertise is extremely important and choose spokespersons who have

Consumers can admire physical appearance. Although celebrities can be effective in gaining attention and influencing consumers.  Source Attractiveness The various components of source attractiveness which include similarity. there are some factors that must be considered before deciding to use them. such as doctors or dentists are common in advertising.knowledge. These are: • Overshadowing the product – advertisers should select a celebrity spokesperson who will attract attention and enhance the sales message. • Likeability – affection for the source as a result of physical appearance. honesty. goals. similar needs. • Familiarity – knowledge of the source through exposure. skill. Endorsements from individuals or groups recognized as experts. or experience with a particular product or in a service area. .g. Trustworthiness relates to the source’s objectivity. the target audience must find the source believable. interests. familiarity. behavior. and likeability.  Risks of Using Celebrities The risks associated with using a celebrity as an advertising spokesperson. lifestyles). or other personal traits. but not overshadow the brand. A summary of each characteristic follows: • Similarity – resemblance between the source and the recipient of the message. While expertise is important. Marketers recognize that people are more likely to be influenced by a message coming from someone with whom they feel a sense of similarity (e. and believability. and/or personality even if the source is not well known or a celebrity. talent. Familiarity is enhanced through repeated or prolonged exposure.

Target audiences’ receptivity – it is important for marketers to select a celebrity endorser who matches and is well received by the advertiser’s target audience. There are three stages of meaning movement: • Stage 1 – celebrities draw these meanings from the roles they assume in their television.• • • Overexposure – consumers can become skeptical when a celebrity endorses too many products or companies and becomes overexposed. movie. Risk to the advertiser – the advertiser needs to select an endorser who will not embarrass the company. • Stage 3 – the meanings the celebrity has given to the product are transferred to the consumer. . It is based on the premise that credibility and attractiveness do not sufficiently explain how and why celebrity endorsements work. and contexts. and other careers. • Stage 2 – celebrities bring their meanings and image into the ad and transfer them to the product they are endorsing. athletic. a celebrity’s effectiveness as an endorser depends on the culturally acquired meanings he or she brings to the endorsement process.  Meaning Movement and the Endorsement Process The meaning movement and endorsement model illustrates why celebrity endorsements are effective. persons. Each new dramatic role brings the celebrity into contact with a range of objects. Researching the celebrity’s personal life and background to reduce this risk is becoming common. military. According to the model.

 Recall and Presentation Order Message structure is very important to overall communication effectiveness. but not in the middle. The receiver’s estimate of the source’s ability to observe conformity is also important (perceived scrutiny). Modes of Celebrity Presentation  Source Power That source power depends on several factors. . Research on learning and memory generally indicate that items presented first and last are remembered better than those presented in the middle. The source must be perceived as being able to administer positive or negative sanctions to the receiver (perceived control) and the receiver must think the source cares about whether or not the receiver conforms (perceived concern). This chart shows that the strongest arguments should be placed at the beginning or end of the message. A basic consideration in the design of a persuasive message is the order of presentation of message arguments.

There are two broad categories of message appeals: • Rational – focus on consumer’s practical. These include: Comparative Ads – directly or indirectly naming competitors in an ad and comparing one or more specific attributes. functional. Message Appeal Choices One of the advertiser’s most important creative strategy decisions involves the choice of an appropriate appeal. Characteristics of humorous appeals include: • An effective way to attract and hold attention • Put consumer in positive mood • Can wear out once the receiver get the joke or punch line . • Useful for new brands to get in the evoked set of the consumer • Often used for brands with small market share • Used frequently for political advertising Fear appeals – evokes an emotional response of danger and arouses individuals to take steps to remove the threat.  Message Appeal Options Various advertising message appeal options that can be used in an advertising message. or utilitarian needs • Emotional – focus on consumer’s social and/or psychological needs or feelings Many believe that the most effective advertising combines the practical reasons for purchasing a product with emotional values. Characteristics of comparative advertising include: • FTC advocated this type of advertising in 1972 to give consumers a more rational basis for making purchase decisions. Characteristics of fear appeals include: • May stress physical danger (drugs) or social rejection (mouthwash) • Have both facilitating and inhibiting effects Humor appeals – evoke an emotional response by making people laugh or feel good about a company or brand.

The relationship between fear and persuasion can be explained by the fact that fears appeals have both facilitating and inhibiting effects. however.  High levels of fear. can produce inhibiting effects whereby the receiver may emotionally block the message by tuning it out. . perceiving it selectively or denying the arguments outright. acceptance decreases as the level of fear rises. but only to a point. This means that message acceptance increases as the amount of fear used rises. Thus increasing the fear from low to moderate can result in increased persuasion. Fear Appeals and Message Acceptance A chart depicting the relationship between fear levels and message acceptance. This chart suggests the relationship between the level of fear in a message and acceptance or persuasion is curvilinear.  Low levels of fear can have facilitating effects which attracts attention and interest in the message and may motivate the receiver to act to resolve the threat. Beyond that point.

 Pros and Cons of Using Humor  Creative Directors Opinions Regarding Use of Humor .

 Self versus External Paced Media The final controllable variable of the communications process is the channel or medium used to deliver the message to the target audience. Chapter = 07 Establishing Objectives and Budgeting for the Promotional Program  Value of Objectives The nature and purpose of objects and the role they play in guiding the development. and between the two as well as with any other communication agencies involved with the campaign . and evaluation of an IMC program. Externallypaced media include radio and television. The advertising and promotional program must be coordinated within the company. inside the ad agency. implementation. There are basic differences in the manner and rate at which information from various forms of media is transmitted and can be processed. The two broad classifications of media are: • Self-paced – readers/viewers process the ad at their own rate. and direct mail as well as the Internet. • Externally-paced – the transmission rate is controlled by the medium. magazines. Self-paced media include print media such as newspapers. The values of setting objectives include the following: • Focus and coordination – setting objectives facilitates the coordination of the various groups working on the campaign.

Measurement and control – objectives provide a benchmark against which the success or failure of the promotional campaign can be measured. media selection.  Characteristics of Objectives  Marketing Versus Communications Objectives .• • Planning and decision-making – specific promotional objectives guide the development of the integrated marketing communications plan. and budget allocation. They also guide decisions regarding strategic and tactical issues such as creative options.

sales or other sales related measures are often used as communications objective. As consumers move through the three stages they become closer to making a purchase. which is the ultimate goal of marketers. along with examples of various types of promotion or advertising relevant to each step. This chart shows the various factors that can affect sales which include: • advertising and promotion • technology • competition • price policy • product quality • the economy • distribution  Advertising and Movement Toward Action This chart of the various steps in the hierarchy of effects model of advertising developed by Lavidge and Steiner. . One of the difficulties of using sales as a communication objective is that sales are a function of many factors. not just advertising and promotion. Many Different Factors Affect Sales Many marketers take the position that the basic reason a firm spends money on advertising and promotion is to sell its products. As such. The model shows the various steps the consumer moves through from awareness to purchase.

the percentage of prospective customers will decline as they move up the pyramid. such as trial and repurchase or regular use. as well as criticisms by some in the advertising field. The DAGMAR model has become one of the most influential approaches to advertising planning and setting advertising objectives.  The DAGMAR Approach In 1961. Colley developed a model for setting advertising objectives and measuring the results of an ad campaign that became known by its acronym. Russell Colley prepared a report for the Association of National Advertisers titled Defining Advertising Goals for Measured Advertising Results. are easier to accomplish than those toward the top. at the base of the pyramid. Positive aspects of DAGMAR include the following: • Assessment of campaign effectiveness • Focused attention on the value of communication-based objectives • Measurement of stages • Less subjective Criticisms of DAGMAR include the following: • Problems with the response hierarchy . by first accomplishing the lower-level objectives such as awareness and knowledge. Subsequent tasks involve moving consumers who are aware of or knowledgeable about the product or service to higher levels in the pyramid. The initial stages.  Pros and Cons of DAGMAR The positive influence DAGMAR has had on the advertising industry. Pyramid of Communications Effects This chart of the communications effect pyramid. Thus. It shows that advertising and promotion perform communications task in the same way a pyramid is built.

and in the media forms the marketer wants to use.  Balancing Objectives and Budgets . when the marketer wants to say it. about things the marketer believes are important about the brand. This approach is based on a hierarchical response model and considers how marketers can develop and disseminate advertising messages to move consumers along an effects path. The focus is on what the marketer wants to say. It is also known as inside-out planning.• • • Sales objectives Practicality and cost Inhibition of creativity  Advertising-Based View of Communications Advertising through Media This chart showing a traditional advertising-based view of marketing communications.

sales and gross margins also increase to a point but then level off. Marginal Analysis A graphical representation of the concept of marginal analysis. As shown on the graph. Some logical assumptions from the graph regarding advertising spending are: • Increase spending if the increased cost is less than the incremental return • Hold spending if the increased cost is equal to the incremental return • Decrease spending if the increased cost is more than the incremental return  Advertising Sales/Response Functions . Using this concept to determine how much to spend on advertising suggests that a firm would continue to spend as long as the marginal revenues created by these expenditures exceeded incremental advertising costs.  BASIC Principle of Marginal Analysis The basic principles of marginal analysis. This graph shows that as advertising/promotion expenditures increase. the optimal expenditure level is the point where marginal costs equal marginal revenues they generate (point A).

That is. as additional increments of expenditures result in increased sales. while those less likely to buy are not likely to change a s a result of the advertising. as the amount of advertising increases. its incremental value decreases. after a certain budget level has been reached (range B) advertising and promotional efforts begin to have an effect. incremental spending will have little additional impact on sales. When advertising expenditures enter range C. This incremental gain continues only to a point.  Top-Down Budgeting  Top-Down Budgeting Methods . • The S-shaped response function which assumes that initial outlays of the advertising budget have little impact (range A). The relationship between advertising and sales has been the topic of much research and discussion designed to determine the shape of the response curve.The two models of the advertising/sales response function. However. Almost all advertisers subscribe to one of two models of the advertising/sales response function: • The concave-downward function which assumes that the effects of advertising spending follow the microeconomic law of diminishing returns. The logic is that those with the greatest potential to buy will likely act on the first (or earliest) exposures.

May include advertising in various media. Promotional objectives are set 2. Once the communication objectives are determined a budget is developed to attain these goals. This method reflects a bottomup approach to budgeting and involves the following steps: • Establishing objectives – specific communication objectives to be achieved are established • Determine specific tasks – determine the specific tasks needed to accomplish the communication objectives. Usually accomplished by matching the same percentage of sales expenditures as competitors. developing programs involving sales promotions and/or other elements of the promotional mix. • Return on investment – advertising and promotions are considered investments. • Percentage of sales – advertising and promotion budget is based on the sales of product. • Competitive parity – setting budgets on the basis of what competitors spend. The specific steps of this approach are: 1. Top management approves total budget  Objective and Task Method The three steps of the objective and task method of budgeting. • Monitor – performance should be monitored and evaluated in light of the budget appropriated. and the budget appropriation is based on the returns the company feels it will generate from advertising  Bottom-Up Budgeting The bottom-up approach to budgeting. monies may be better spent on new goals. No theoretical basis underlies the budgeting process. • Reevaluate objectives – once specific objectives have been attained. This approach is based on the consideration of a firm’s communications objectives before the budget is set. Cost of activities are budgeted 4. They are: • Arbitrary allocation – budget is set by management based on what is felt to be necessary. Activities to achieve objectives are planned 3.The various top-down budgeting methods. • Affordable method – the firm determines the amount to be spent on the various areas such as production and operations and then allocates what is left to advertising and promotion. . Determined by either taking an amount based on a percentage of sales revenue sold or anticipated revenue from sales. • Estimate costs associated with tasks – determining what it will cost to perform the specific tasks that must be performed to achieve the objectives.

maintain a modest spending premium to hold market share • When market share is low and a competitor’s SOV is high. Share-of-voice refers to a company or brand’s percentage of the advertising messages compared to all of the advertising messages for that product or service. Ad Spending and Share of Voice This chart outlines strategies for advertising spending based on a company or brand’s market share and a competitor’s share-of-voice (SOV). increase to defend market share • When market share is high and competitor’s SOV is low. Recommended ad spending strategies shown in the chart are based on different market share and share of voice scenarios and suggest the following: • When market share is high and competitor’s SOV is high. decrease overall spending and find a defensible market niche • When market share is low and competitor’s SOV is low. attack with a large SOV premium to increase market share .

Chapter = 13 Support Media  The Role of Support Media The role of support media is to reach those people in the target audience that primary media such as TV or print may not have reached and to reinforce or support the advertising message.  Support Media  Examples of Traditional Support Media .

 Out-of-Home Media – A Diverse Cross-Section of Formats  Top 10 Outdoor Advertising Categories 1. particularly in urban or suburban setting. Automotive. This slide summarizes the characteristics of outdoor advertising which include: • Reach – can reach many people quickly • Frequency – potential for many impressions • Flexibility – many options are available • Cost – low cost per exposure • Impact – size. Telecommunications  Characteristics Of Outdoor Advertising Outdoor advertising is one of the more pervasive communication forms. Restaurant 9. and resorts 4. hotels. Automotive dealers and services 8. Public transportation. Retail 5. auto access. Media and advertising 3. Financial 7. Insurance and real estate 6. and lighting may lead to impact . and equipment 10. shape. Local services and amusements 2.

and terminal posters – floor displays. electronic signs. island showcases. The different types of transit advertising are: • Station. commuter trains. Other Out-of-Home Media  Other Miscellaneous Outdoor Media  Transit Advertising Media Another form of outdoor advertising is transit advertising which is targeted to the millions of people who are exposed to commercial transportation facilities including buses. platform. and other forms of advertising that appear in transit facilities . airplanes. and subways. trolleys. taxis.

taxis. and/or roofs of buses. an subway and trolley cars  Outdoor Advertising Pros & Cons Advantage Disadvantage  Transit Advertising Pros & Cons The advantages and disadvantages of using transit advertising. • Advantages o Exposure – long length of exposure because of ride times o Frequency – commuters and riders can be exposed regularly • Disadvantages o Reach – does not always reach the right target consumer o Mood of audience – mass transit can be crowded and hurried . backs. trains.• • Inside cards – placed above the seats and luggage areas of buses or trains Outside posters – may appear on the sides.

mugs. and other transit usage information. exposures. Simmons Market Research Bureau conducts research annually for the Institute of Outdoor Advertising. and more effective use of the medium. and the like. It assists members with research. • Advantages o Selectivity – distributed directly to the targeted customer o Flexibility – a variety of specialty items are available o Frequency – designed for retention which results in repeat exposures . The Outdoor Advertising Association of America (OAAA) is the primary trade association of the industry. providing demographic data. and matchbooks. Scarborough publishes local market studies providing demographic data.  Promotional Products Pros & Cons The advantages and disadvantages of using promotional products marketing. calendars. and outdoor media usage. The Traffic Audit Bureau (TAB) is the auditing arm of the transit industry. There are thousands of specialty items in promotional products marketing including such things as pens. Measurement in Out-of-Home Media A number of sources of audience measurement and other information are available: • • • Competitive Media Reports (formerly BAR/LNA) provides information on expenditures on outdoor media by major advertisers. studies. The American Public Transportation Association (APTA) provides ridership statistics. creative ideas. TAB conducts traffic counts on which the published rates are based. T-shirts. The Point of Purchase Advertising Institute is a trade organization of point-ofpurchase advertisers collecting statistical and other market information on POP advertising. • • • •  Promotional Products Marketing Promotional products marketing can be described as both an advertising and sales promotion medium. product usage. key rings.

The advantages and disadvantages of using the Yellow Pages. but popular medium for local and national advertisers is the Yellow Pages. They include: • Advantages o Wide availability o Action oriented o Low cost o Frequency .5 billion references in 2004 Other services – refers to additional items that are distributed with the Yellow Pages such as coupons and freestanding insert. Listed below are the several forms of this medium • Specialized directories – targeted at select markets such as ethnic or religious groups • Internet Yellow Pages – 1.• o Economy – most items are affordable o Goodwill – free gifts make consumer feel good o Augmentation – supplement other media Disadvantages o Poor image – can cheapen brand/company image with cheap giveaway o Saturation – many organizations use this medium o Lead time – can take time to have large numbers of items produced  Measurement of Promotional Products  Forms of Yellow Pages An overlooked.

• Advantages o High exposure – over a billion people go to movies every year o Audience mood – good moods can carry over to the product o Cost – low in absolute and cost per exposure o Good recall – high percentage of recall compared to TV o Lack of clutter – theaters limit the number of ads o Proximity – theaters are close to shopping malls where many products are purchased • Disadvantages o Irritation – people do not want to see ads in movie theaters o Cost – CPM’s tend to be higher than in other media  Types of In-Flight Advertising . This slide discusses the advantages and disadvantages of showing ads in movie theaters.• o Non-intrusive Disadvantages o Market fragmentation o Timeliness o Lack of credibility o Lead times o Clutter o Size requirements  Advertising in Movie Theatres Many movie theaters are now showing commercials shown before the feature film and previews.

434-438 of the text. and technology: • Product Placements – showing the actual product or an ad for it as part of a movie or TV show • Product Integration – the product is woven throughout the program • Advertainment – the creation of video and/or music content by an advertiser in an attempt to entertain viewers while advertising their products • Content Sponsorship – rather than developing their own content. and promotions in return. etc. • Ad-Supported Video on Demand – specialized content programs offered through cable TV networks that are developed by advertisers and provided to the cable operators for free. some advertisers agree to sponsor specific programs. receiving product placements. music talent. integration. which is a form of advertising that blends marketing and entertainment through television. Nontraditional Support Media the various types of branded entertainment. • Advantages o High exposure o High frequency o Media support o Source association with the actor/actress using the product o Economy o High recall o Bypass regulations o Viewer acceptance o Targeting • Disadvantages o High absolute cost o Time of exposure . film.) continue to develop  Branded Entertainment The advantages and disadvantages of branded entertainment. on pp. mobile. • Others – Other forms of branded entertainment (through wireless.

o o o o o o Limited appeal Lack of control when/where placed in the movie Public relations Competition from other products Negative placement in a negative scene Clutter  Measurement in Branded Entertainment  Miscellaneous Other Media The variety of options for placing ads appears endless. • Advantages o Awareness and attention o Cost efficiencies o Targeting • Disadvantages o Irritation o Wear out . A few of the faster growing and more widely used options are: • Videogame ads • Parking lot ads • Bathroom ads • Place-based media • Other  Miscellaneous Alternative Media The advantages and disadvantages of advertising using miscellaneous alternative media.