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An organization’s IMC strategy is implemented through the various communications it sends to current or prospective customers as well as other relevant publics. Thus, those involved in planning and implementation of an IMC program need to understand the communications process and how it occurs.
The Nature of Communication
The communication process is often very complex. Success depends on such factors as the nature of the message, the audience’s
interpretation of it, and the environment in which it is received. The receiver’s perception of the source and the medium used to transmit the message may also affect the ability to communicate, as do many other factors. Words, pictures, sounds, and colors may have different meanings to different audiences, and people’s perceptions and interpretations of them vary.
For example, if you ask for a soda on the East Coast or West Coast, you’ll receive a soft drink such as Coke or Pepsi. However, in parts of the Midwest and South, a soft drink is referred to as pop. If you ask for a soda, you may get a glass of pop with ice cream in it. Marketers must understand the meanings that words and symbols take on and how they influence consumers’ interpretation of products and messages. This can be particularly challenging to companies marketing their products in foreign countries.
Basic Model of Communication
Basic-Model-of-Communication
Source Encoding
The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The communication process begins when the source selects words, symbols, pictures, and the like, to represent the message that will be delivered to the receiver(s).
This process, known as encoding, involves putting thoughts, ideas, or information into a symbolic form. The sender’s goal is to encode the message in such a way that it will be understood by the receiver.
Message
The encoding process leads to development of a message that contains the information or meaning the source hopes to convey. The message may be verbal or nonverbal, oral or written, or symbolic. Messages must be put into a transmittable form that is appropriate
for the channel of communication being used. In advertising, this may range from simply writing some words or copy that will be read as a radio message to producing an expensive television commercial.
Semiotics may be helpful in analyzing how various aspects of the marketing program—such as advertising messages, packaging, brand names, and even the nonverbal communications of salespeople (gestures, mode of dress)—are interpreted by receivers
Channel
The channel is the method by which the communication travels from the source or sender to the receiver. At the broadest level, channels of communication are of two types, personal and nonpersonal. Personal channels of communication are direct interpersonal (face-to-face) contact with target individuals or groups. Salespeople serve as personal channels of communication when they deliver their sales message to a buyer or potential customer.
Nonpersonal channels of communication are those that carry a message without interpersonal contact between sender and receiver. Nonpersonal channels are generally referred to as the mass media or mass communications, since the message is sent to many individuals at one time.
Receiver/Decoding
Decoding is the process of transforming the sender’s message back into thought. This process is heavily influenced by the receiver’s
frame of reference or field of experience, which refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation. Effective communication is more likely when there is some common ground between the two parties.
Noise
The message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference
is known as noise. Errors or problems that occur in the encoding of the message, distortion in a radio or television signal, or distractions at the point of reception are examples of noise.
Response/Feedback
The receiver’s set of reactions after seeing, hearing, or reading the message is known as a response. Receivers’ responses can range from non-observable actions such as storing information in memory to immediate action such as dialing a toll-free number to order a product advertised on television. Marketers are very interested in feedback, that part of the receiver’s response that is communicated back to the sender.
The Response Process
Traditional Response Hierarchy Models
Response Models
Hierarchy of effects model shows the process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase. A basic premise of this model is that advertising effects occur over a period of time.
The innovation adoption model evolved from work on the diffusion of innovations. This model represents the stages a consumer passes through in adopting a new product or service. Like the other models, it says potential adopters must be moved through a series of steps before taking some action (in this case, deciding to adopt a new product). The steps preceding adoption are awareness, interest, evaluation, and trial.
Information processing model of advertising effects, developed by William McGuire. This model assumes the receiver in a persuasive communication situation like advertising is an information processor or problem solver.
The Dissonance/Attribution Hierarchy
This dissonance/attribution model, or do →feel →learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. The consumer may purchase the product on the basis of a recommendation by some nonmedia source and then attempt to support the decision by developing a positive attitude toward the brand and perhaps even developing negative feelings toward the rejected alternative(s). This reduces any postpurchase
dissonance or anxiety the consumer may experience resulting from doubt over the purchase.
Dissonance reduction involves selective learning, whereby the consumer seeks information that supports the choice made and avoids
information that would raise doubts about the decision.
The FCB Planning Model
FCB Model
Vaughn and his associates developed an advertising planning model by building on traditional response theories such as the hierarchy of effects model and its variants and research on high and low involvement. They added the dimension of thinking versus feeling
processing at each involvement level by bringing in theories regarding brain specialization.
The right/left brain theory suggests the left side of the brain is more capable of rational, cognitive thinking, while the right side is more visual and emotional and engages more in the affective (feeling) functions.
Their model, which became known as the FCB grid, delineates four primary advertising planning strategies—informative, affective, habit formation, and satisfaction—along with the most appropriate variant of the alternative response hierarchies.
The informative strategy is for highly involving products and services where rational thinking and economic considerations prevail and the standard learning hierarchy is the appropriate response model. The affective strategy is for highly involving/feeling purchases. For these types of products, advertising should stress psychological and emotional motives such as building self-esteem or enhancing one’s ego or self-image. The habit formation strategy is for low-involvement/thinking products with such routinized behavior patterns that learning occurs most often after a trial purchase. The response process for these products is consistent with a behavioristic learning-bydoing model. The self-satisfaction strategy is for low-involvement/feeling products where appeals to
sensory pleasures and social motives are important.
Cognitive Response Approach
A Model of Cognitive Response
One of the most widely used methods for examining consumers’ cognitive processing of advertising messages is assessment of their cognitive responses, the thoughts that occur to them while reading, viewing, and/or hearing a communication.
The three basic categories of cognitive responses researchers have identified—product/message, source-oriented, and ad execution thoughts—and how they may relate to attitudes and intentions.
Product/Message Thought: Counterarguments are thoughts the recipient has that are opposed to the position taken in the message. Counterarguments relate negatively to message acceptance; the more the receiver counterargues, the less likely he or she is to accept the position advocated in the message. Support arguments, on the other hand, relate positively to message acceptance.
Source-Oriented Thoughts: A second category of cognitive responses is directed at the source of the communication. One of the most important types of responses in this category is source derogations, or negative thoughts about the spokesperson or organization making the claims. Such thoughts generally lead to a reduction in message acceptance. Receivers who react favorably to the source generate favorable thoughts, or source bolsters.
Ad Execution Thoughts: Ad execution-related thoughts can be either favorable or unfavorable. They are important because of their effect on attitudes toward the advertisement as well as the brand. Attitude toward the ad (A → ad) represents the receivers’ feelings of favorability or unfavorability toward the ad. Advertisers are interested in consumers’ reactions to the ad because they know that affective reactions are an important determinant of advertising effectiveness, since these reactions may be transferred to the brand itself or directly influence purchase intentions.
The Elaboration Likelihood Model
ELM Model
Differences in the ways consumers process and respond to persuasive messages are addressed in the elaboration likelihood model (ELM) of persuasion. Low elaboration occurs when the receiver does not engage in active information processing or thinking but rather makes inferences about the position being advocated in the message on the basis of simple positive or negative cues.
The ELM shows that elaboration likelihood is a function of two elements, motivation and ability to process the message. Motivation to process the message depends on such factors as involvement, personal relevance, and individuals’ needs and arousal levels. Ability depends on the individual’s knowledge, intellectual capacity, and opportunity to process the message.
According to the ELM, there are two basic routes to persuasion or attitude change. Under the central route to persuasion, the receiver is viewed as a very active, involved participant in the communication process whose ability and motivation to attend, comprehend,
and evaluate messages are high.
Under the peripheral route to persuasion, the receiver is viewed as lacking the motivation or ability to process information and is not likely to engage in detailed cognitive processing. Rather than evaluating the information presented in the message, the receiver relies on peripheral cues that may be incidental to the main arguments. The receiver’s reaction to the message depends on how he or she evaluates these peripheral cues.
The ELM suggests that the most effective type of message depends on the route to persuasion the consumer follows. Many marketers recognize that involvement levels are low for their product categories and consumers are not motivated to process advertising messages in any detail.
OBJECTIVES
v To understand reasons for measuring promotional program effectiveness
v To know the various measures used in assessing Promotional program effectiveness
v To evaluate alternative methods for measuring promotional program effectiveness
v To understand the requirements of proper effectiveness research
Pros and Cons of measuring effectiveness
Pros:
Avoid costly mistakes
Evaluate alternative strategies
Increasing the efficiency of advertising in general
Determining if objectives are achieved
Cons:
Cost of measurement
Disagreement on what to test
Lack of time
Objections of creative personnel
Problems with research
Process of measuring advertising effectiveness
Concept generation and testing
v Conducted early in campaign development
v To explore the targeted consumers response to a potential ad or campaign i.e. Focus groups and mall intercepts
Limitations:
Problems with current research methods
v Requiring two similar measures to ensure reliability
v Tests should use the target audience to assess an ad’s effectiveness
v Consistency in reliability and validity
Essentials of effective testing
Measuring the Effectiveness of Other IMC Tools
v Sales Promotion effectiveness:
v Public Relation Effectiveness:
v Direct Marketing Effectiveness
v Internet Marketing Effectiveness:
CHAPTER OBJECTIVES
To discuss what is meant by advertising creativity and examine the role of creative strategy in advertising.
To examine creative strategy development and the roles of various client and agency personnel involved in it.
To consider the process that guides the creation of advertising messages and the research inputs into the stages of the creative process.
To examine various approaches used for determining major selling ideas that form the basis of an advertising campaign.
CREATIVE STRATEGY
Determining what the advertising message will say or communicate
CREATIVE TACTICS
Determining how the message strategy will be executed
ADVERTISING CREATIVITY
The ability to generate fresh, unique and appropriate ideas
YOUNG’S CREATIVE PROCESS
Immersion: Getting raw material or data, immersing one’s self in the problem to get background
Digestion: Ruminating on the data acquired, turning it this way and that in the mind
Incubation: Ceasing analysis and putting the problem out of conscious mind for a time
Illumination: Often a sudden inspiration or intuitive revelation about a potential solution
Verification: Studying the idea, evaluating it, and developing it for practical usefulness
WALLAS’S CREATIVE PROCESS
Preparation: Gathering information
Incubation: Setting problem aside
Illumination: Seeing the solution
Verification: Refining the idea
INPUTS TO THE CREATIVE PROCESS
Campaign
ADVERTISING CAMPAIGN
A set of interrelated and coordinated integrated marketing communication activities that centre on a particular theme or idea that appears in different media across a specified time period.
CAMPAIGN THEME
The central message that will be communicated in all of the various IMC activities
UNIQUE SELLING PROPOSITION
The unique selling proposition (a.k.a. unique selling point or USP) is a marketing concept that was first proposed as a theory to understand a pattern among successful advertising campaigns of the early 1940s. It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands.
Three characteristics of a unique selling proposition:
Each advertisement makes a proposition to the customer
It must be one the competition cannot or does not offer
It must be strong enough to pull over new customers to the brand
BRAND IMAGE
CREATING A BRAND IMAGE
David Ogilvy’s Approach
Brand image or personality is particularly important when brands are similar
Every ad must contribute to the complex symbol that is the brand image
Leo Burnett’s Approach
Find the inherent drama or characteristic of the product that makes consumers buy it
“(Inherent drama) is often hard to find but it is always there, and once found it is the most interesting and believable of all advertising appeals.”
Inherent Drama
Focus on consumer benefits with an emphasis on the dramatic element in expressing them
Messages generally presented in a warm, emotional way
Positioning
Establish a particular place in the customer’s mind for the product or service
Based on product attributes/benefits, price/quality, use or application, type of user, problem solved
The creative development and execution of the advertising message are a crucial part of a firm’s integrated marketing communications program and is often the key to the success of a marketing campaign. Marketers generally turn to ad agencies to develop, prepare, and implement their creative strategy since these agencies are specialists in the creative function of advertising. The creative specialist or team is responsible for developing an effective way to communicate the marketer’s message to the customer. Other individuals on both the client and the agency sides work with the creative specialists to develop the creative strategy, implement it, and evaluate its effectiveness.
The challenge facing the writers, artists, and others who develop ads is to be creative and come up with fresh, unique, and appropriate ideas that can be used as solutions to communications problems. Creativity in advertising is a process of several stages, including preparation, incubation, illumination, verification, and revision. Various sources of information are available to help the creative specialists determine the best campaign theme, appeal, or execution style.
Creative strategy development is guided by specific goals and objectives and is based on a number of factors, including the target audience, the basic problem the advertising must address, the objectives the message seeks to accomplish, and the major selling idea or key benefit the advertiser wants to communicate. These factors are generally stated in a copy platform, which is a work plan used to guide development of the ad campaign. An important part of creative strategy is determining the major selling idea that will become the central theme of the campaign. There are several approaches to doing this, including using a unique selling proposition, creating a brand image, looking for inherent drama in the brand, and positioning.
Objective of the chapter:
•To understand the different ways the Internet is used to communicate
•To know the advantages and disadvantages of the Internet and interactive media
•To know the role of the Internet and interactive media in an IMC program
•To understand how to evaluate the effectiveness of communications through the Internet
Internet:
A worldwide means of exchanging information and communicating through a system of interconnected computers from military, government, educational and commercial sources.
Internet Communication Objectives
•To create awareness
•To generate interest
•To disseminate information
•To create an image
•To create a strong brand
•To stimulate trial
Internet Advertising:
1. Sponsorship
– Ownership of an entire site or page
2. Banner Ads
– A portion of another owner’s page
3. Pop-Ups
– Small windows that appear automatically
4. Interstitial
– Ads appearing while waiting for a page to load
5. Push Technologies or Webcasting
– Automatic or unsolicited message delivery
– Hypertext links to other sites, pages or locations
6. Links
Personal Selling on the Net
May replace personal selling:
– Reduces high cost of personal calls
– Vastly increases potential reach
May enhance personal selling efforts
– Provides quick, easy, information to prospects
– May be a source of leads
– May help to enhance customer data bases
– May stimulate trial of the goods or service
– May improve one-on-one communications
– May serve as a sales conference medium
Sales Promotion on the Internet
Offering consumers special incentives via the internet to encourage trial, repeat purchase, or customer loyalty
•Distribution of samples, coupons
•Ability to enter contests, sweepstakes
•Premium offers
•Loyalty programs
Public Relations on the Internet
Internet as a medium for conducting PR:
•Media relations websites
•Dissemination of customized information
•Provision of information on the company and its products
•Philanthropic activities
Internet Direct Marketing:
Direct Mail
– Highly targeted
– Relies on e-mail lists
– Attempts to reach those with specific needs
– Often used by catalogers
Marketing Databases on the Net
– Companies build or acquire a database
– The database is sold to subscribers
– Delivery may be on- or off-line
Infomercials
– Program content similar to television, cable or satellite
– Web provides for greater audience interaction
E Commerce
– Rapid growth rates likely to continue
– CDs, books, travel are main categories
– Clothing, cars, financial services are all gaining ground
Measures of Effectiveness
1. Online Measuring
Data on demographics, psychographics, location of access, media used, buying habits, and more.
2. Recall and Retention
Daily user interviews to measure recall and retention of web content viewed
3. Nonresponse
Measures of destination after failure to click-through
4. Surveys
On- and off-line surveys to determine usage factors
5. Panels
Usage and attitude data obtained from a specific group
6. Sales
Sales volume keyed to specific times and sites
7. Tracking
Accumulation of site performance data
Sources of Measurement Data:
•Arbitron
•MRI and SMRB
•Audit Bureau of Circulation
•Internet Advertising Bureau (IAB)
•iVALS
•PC-Meter
•eMarketer
•eAdvertiser
•Double-Click
•24/7
•Jupiter, Forrester and MediaMetrics
•Business 2.0, Industry Standard, Fast Company
•Internet Advertising Report and Individual.com
Internet Advantages
1.Target Marketing
2.Message Tailoring
3.Interactive Capabilities
4.Information Access
5.Sales Potential
6.Creativity
7.Exposure
8.Speed
Internet Disadvantages
1.Measurement problems
2.Audience characteristics
3.Websnarl
4.Clutter
“Consumption of vodka has increased steadily since 1998, and the vodka category is double the size of the next distilled-spirits segment, rum. It is ironic that a bland tasting product that was best known for helping Russians make it through the cold has now become a status symbol in the West. “
One brand that has helped propel this revolution of sorts is Skyy, and how they have reached where they are today is through Creative excellence. The Brand manager says, the strength of their creative and secret behind their success is that they look bigger than they actually are!
Appeals and Execution Styles
Advertising appeal is the approach used to attract the customer’s attention or to influence their feelings towards a particular product, service or cause. How this appeal is turned into an advertising message is known as Creative Execution Style.There are two categories of advertising appeal viz. Rational and Emotional.
The Rational appeal focuses on the functional/utilitarian aspects of the product/service, such as dependability, efficiency and performance. Variants of the rational appeal could be as follows:
• Feature appeal : Focus on the dominant traits
• News appeal : news/announcement about the product/service dominates the advertisement
• Competitive advantage appeal : direct/indirect comparison to another brand is made
• Favorable price appeal: price offer is the dominant message
• Product / service popularity appeal: Focus on number of users and number of experts recommending it
The second form is the Emotional Appeal. They relate to social and/ or psychological needs for purchasing a product or service. The table below presents the bases for emotional appeal.
These creative ads for Kellogs’ Nutrigrain cereal bars appeal to emotional motives such as self-esteem and respect.
Advertisers can use emotional appeals in many ways in their creative strategy. Hallmark, AT&T,Kodak and Oscar Mayer are examples of Advertisers who use poignant ads that bring a lump to the viewer’s throats through commercials that evoke feelings nostalgia and warmth. Studies have shown that such positive appeals favor consumer purchase.
McDonald’s is one brand that has changed its advertising strategy recently and is putting more emotion in its commercials to evoke a feel-good connection with consumers. McDonald’s feels the emotional ads take advantage of the chain’s unique bond with consumers, which is a significant point of differentiation in the
highly competitive fast-food business. This ad of theirs brings a smile to everyone who watches it, and it does not talk about the product features.
Yet another brand in this category would be Dairy Milk. Everything about these ads, right from the dim lights, soft voices and soothing background score add to the appeal.
In a way, these ads are “Transformational”. Transformational ads create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience.
Other forms of appeals
Objective is to increase brand awareness and thereby improve brand recall. For example, marketers of candy products often increase their media budgets and run reminder advertising around Halloween, Valentine’s Day, Christmas, and Easter.
Designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it. Teasers, or mystery ads as they are sometimes called, are also used by
marketers to draw attention to upcoming advertising campaigns. Teaser campaigns can generate interest in a new product, but advertisers must be careful not to extend them too long or they will lose their effectiveness. generate interest and publicity for them.
A perspective- Everything Old is New again
Advertising generally prides itself on being ahead of the curve and helping to create and define popular culture rather than trying to revisit it. However, recently many advertisers have been bringing back some of their classic advertising characters and commercials rather than looking for new creative ideas.
Astute marketers recognize they cannot rely solely on the recognition and nostalgia generated by past
ads and simply bring back the same thing. Thus, advertisers are seeking to avoid the inherent risks associated with retrospective marketing, primarily by contemporizing the classic elements of their ads to make them relevant to current consumers, especially young people. Case in point would be Pepsi’s extravagant commercial featuring pop star Brittany Spears. Although the commercial has a nostalgic tone, it also has a modern, forward-looking ending as it transitions to the current image for the brand.
That said, sometimes new creative ideas are often put aside for the reassuringly familiar. As one brand identity consultant rightly notes: “When we feel less secure, with less control over our daily lives, we reach out in brands to connect with a time when things felt better, more comfortable. It’s about finding security, what we can trust.”
Brand-Buyer Relationship
The basic concept of emotional bonding is that consumers develop three levels of relationships with brands, as shown in the Figure. The most basic relationship indicates how consumers think about brands in respect to product benefits. This occurs, for the most part, through a rational learning process and can be measured by how well advertising communicates product information. Consumers at this stage are not very brand loyal, and brand switching is common.
At the next stage, the consumer assigns a personality to a brand. For example, a brand may be thought of as self-assured, aggressive, and adventurous, as opposed to compliant and timid. The consumer’s judgment of the brand has moved beyond its attributes or delivery of product/service benefits. In most instances, consumers judge the personality of a brand on the basis of an assessment of overt or covert cues found in its advertising. The strongest relationship that develops between a brand and the consumer is based on feelings or emotional attachments to the brand. Consumers develop emotional bonds with certain brands, which result in positive psychological movement toward them.
Advertising Execution
While it is obviously important for an ad to have a meaningful appeal or message to communicate to the
consumer, the manner in which the ad is executed is equally important. Creative execution is the way an advertising appeal is presented.
An advertising message can be presented or executed in numerous ways:
• Straight sell or factual message
• Animation
• Scientific/technical evidence
• Personality symbol
• Demonstration
• Fantasy
• Comparison
• Dramatization
• Testimonial
• Humor
• Slice of life
• Combinations
The real challenge facing the creative team is how to encompass all these elements in a 30-second commercial. It is the responsibility of the creative specialist(s) to determine whether more than one execution style should be used in creating the ad.
Creative Tactics for Print Advertising
The basic components of a print ad are the headline, the body copy, the visual/ illustrations, and the layout.
Headline: Most advertising people consider the headline the most important part of a print ad. The most important function of a headline is attracting readers’ attention and interesting them in the rest of the message. So in addition to attracting attention, the headline must give the reader good reason to read the copy portion of the ad, which contains more detailed and persuasive information about the product or service.
Headlines can be direct or indirect. In some case subheads may also be used to enhance the readability of the message by breaking up large amounts of body copy and highlighting key sales points.
Body Copy: The main text portion of a print ad is referred to as the body copy. While the body copy is usually the heart of the advertising message, getting the target audience to read it is often difficult. The copywriter faces a dilemma: The body copy must be long enough to communicate the advertiser’s message, yet short enough to hold readers’ interest.
Visual Elements: The visual portion of an ad must attract attention, communicate an idea or image, and work in a synergistic fashion with the headline and body copy to produce an effective message. In some print ads, the visual portion of the ad is essentially the message and thus must convey a strong and meaningful image. Many decisions have to be made regarding the visual portion of the ad: what identification marks should be included (brand name, company or trade name, trademarks, logos); whether to use photos or hand-drawn or painted illustrations; what colors to use (or even perhaps black and white or just a splash of color); and what the focus of the visual should be.
Layout: A layout is the physical arrangement of the various parts of the ad, including the headline, subheads, body copy, illustrations, and any identifying marks. The layout shows where each part of the
ad will be placed and gives guidelines to the people working on the ad.
Creative Tactics for Television
TV is a unique and powerful advertising medium because it contains the elements of sight, sound, and motion, which can be combined to create a variety of advertising appeals and executions. Unlike print, the viewer does not control the rate at which the message is presented, so there is no opportunity to review points of interest or reread things that are not communicated clearly. The video and audio must work together to create the right impact and communicate the advertiser’s message.
The video elements of a commercial are what is seen on the TV screen. The visual portion generally dominates the commercial, so it must attract viewers’ attention and communicate an idea, message, and/or image.
The audio portion of a commercial includes voices, music, and sound effects. Voices are used in different ways in commercials. They may be heard through the direct presentation of a spokesperson or as a conversation among various people appearing in the commercial. A common method for presenting the audio portion of a
commercial is through a voice-over. Another important musical element in both TV and radio commercials is jingles, catchy songs about a product/ service that usually carry the advertising theme and a simple message.
Top 10 jingles of the century
Planning and Production of TV commercials
Advertisers recognize that they need to do more than talk about, demonstrate, or compare their products or services. Their commercials have to break through the clutter and grab viewers’ attention; they must often appeal to emotional, as well as rational, buying motives. Many of the most popular advertising campaigns are characterized by commercials with strong entertainment value, like the “Whassup?” campaign for Budweiser, the humorous “Got milk” ads, musical spots for the Gap, and the many stylish and engaging Nike ads
Planning the Commercial
• The various elements of a TV commercial are brought together in a script, a written version of a commercial that provides a detailed description of its video and audio content
• Once the basic script has been conceived, the writer and art director get together to produce a storyboard, a series of drawings used to present the visual plan or layout of a proposed commercial
Production
Once the storyboard or animatic of the commercial is approved, it is ready to move to the production phase, which involves three stages:
1. Preproduction—all the work and activities that occur before the actual shooting/ recording of the commercial
2. Production—the period during which the commercial is filmed or videotaped and recorded
3. Postproduction—activities and work that occur after the commercial has been filmed and recorded
Client Evaluation and Approval of Creative Work
While the creative specialists have much responsibility for determining the advertising appeal and execution
style to be used in a campaign, the client must evaluate and approve the creative approach before any ads are produced. A number of people on the client side may be involved in evaluating the creative work of the agency, including the advertising or communications manager, product or brand managers, marketing director or vice president, representatives from the legal department, and sometimes even the president or chief executive officer (CEO) of the company or the board of directors.
For example, the Chiat/Day agency had to convince Apple’s board of directors to air the famous “1984” commercial used to introduce the Macintosh personal computer. Apple’s board thought the commercial,
which was based on the concept of Big Brother from George Orwell’s classic novel 1984, was too controversial and might be detrimental to its image, particularly in the business market.
In many cases, top management is involved in selecting an ad agency and must approve the theme and creative strategy for the campaign. Evaluation and approval of the individual ads proposed by the agency often rest with the advertising and product managers who are primarily responsible for the brand. A careful evaluation should be made before the ad actually enters production, since this stage requires considerable time and money as suppliers are hired to perform the various functions required to produce the actual ad.
An Overview of Media Planning
The media planning process is not an easy one. Options include mass media such as television, newspapers, radio, and magazines (and the choices available within each of these categories) as well as out-of-the-home media such as outdoor advertising, transit advertising, and electronic billboards. A variety of support media such as direct marketing, interactive media, promotional products advertising, and in-store point-of-purchase options must also be considered. The Inter-net and interactive media such as those described in the chapter lead-in increase the complexity of this process.
Some Basic Terms and Concepts
Media planning is the series of decisions involved in delivering the promotional message to the prospective purchasers and/or users of the product or brand. Media planning is a process, which means a number of decisions are made, each of which may be altered or abandoned as the plan develops.
The media plan is the guide for media selection. It requires development of specific media objectives and specific media strategies (plans of action) designed to attain these objectives. Once the decisions have been made and the objectives and strategies formulated, this information is organized into the media plan.
The medium is the general category of available delivery systems, which includes broadcast media (like TV and radio), print media (like newspapers and magazines), direct mail, outdoor advertising, and other support media. The media vehicle is the specific carrier within a medium category. For example, Time and Newsweek are print vehicles; 20/20 and60 Minutes are broadcast vehicles.
Reach is a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. Coverage refers to the potential audience that might receive the message through a vehicle. Coverage relates to potential audience; reach refers to the actual audience delivered.
Finally, frequency refers to the number of times the receiver is exposed to the media vehicle in a specified period
Energy Drinks: The Real Thing or Just Bull?
Red Bull sponsored Space Jump
Red Bull has about 70 percent of the market share. While these figures may pale in comparison to the overall carbonated-beverage
market (approximately $45 billion), there is enough concern for competitors to take notice. Many marketers feel that it is Red Bull’s alternative image that accounts for much of its success. Even the company’s marketing department likes to maintain the illusions while claiming the product is a “nonmarketed brand.”
Further, Red Bull puts about 35 percent of its revenues back into advertising—about $19 million according to Advertising Age. And advertising is not the only IMC component the company successfully employs. At launch in Europe, students were persuaded to drive around in Volkswagen Beetles or Minis with a Red Bull can strapped on the top and to conduct Red Bull parties using wild and unusual themes. What seems to make Red Bull successful, however, is that the efforts assume a very nontraditional approach to its messages—essentially attempting to do the opposite of what everyone else does.
Sponsorship of alternative sports like the Red Bull Streets of San Francisco (a street luge event) and Red Bull Rampage (a free-ride mountain bike competition) has also been shown to be effective, as has the use of “education teams”—hip locals who drive around in a Red Bull auto handing out samples and promoting the brand. RedBull’s marketing team is continually developing more wacky ideas to maintain Red Bull’s alternative and mystical image. Others feel that expanding the category can only benefit Red Bull. It may depend on how large the cult grows!
Overview of Consumer Behavior
Consumer behavior can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. For many products and services, purchase decisions are the result of a long, detailed process that may include an extensive information search, brand comparisons and evaluations, and other activities. Other purchase decisions are more incidental and may result from little more than seeing a product prominently displayed at a discount price in a store.
Marketers need to understand how customers make purchase decisions. Where do they prefer to buy a product? How are they influenced by marketing stimuli at the point of purchase? Marketers also need to understand how the consumer decision process and reasons for purchase vary among different types of customers.
Consumer Decision-Making Process
Model of Consumer-Decision-Making-Process
Problem Recognition
Problem recognition is caused by a difference between the consumer’s ideal state and actual state. A discrepancy exists between what the consumer wants the situation to be like and what the situation is really like.
Sources of Problem Recognition
Out of Stock: Problem recognition occurs when consumers use their existing supply of a product and must replenish their stock.
Dissatisfaction: Problem recognition is created by the consumer’s dissatisfaction with the current state of affairs and/or the product or service being used.
New Needs/Wants: Changes in consumers’ lives often result in new needs and wants. For example, changes in one’s financial situation, employment status, or lifestyle may create new needs and trigger problem recognition. A want has been defined as a felt need that is shaped by a person’s knowledge, culture, and personality.
Related Products/Purchases: Problem recognition can also be stimulated by the purchase of a product. For example, the purchase of a new camera may lead to the recognition of a need for accessories, such as additional lenses or a carrying case.
Marketer-Induced Problem Recognition: Ads for personal hygiene products such as mouthwash, deodorant, and foot sprays may be designed to create insecurities that consumers can resolve through the use of these products.
New Products: Problem recognition can also occur when innovative products are introduced and brought to the attention of consumers. Marketers are constantly introducing new products and services and telling consumers about the types of problems
they solve.
Examining Consumer Motivation
To better understand the reasons underlying consumer purchases, marketers devote considerable attention to examining motives—that is, those factors that compel a consumer to take a particular action.
Psychoanalytic Theory
Psychoanalytic theory had a strong influence on the development of modern psychology and on explanations of motivation and personality. It has also been applied to the study of consumer behavior by marketers interested in probing deeply rooted motives that may underlie purchase decisions.
Motivation Research in Marketing: Motivation researchers use a variety of methodologies to gain insight into the underlying causes of consumer behavior. Methods employed include in-depth interviews, projective techniques, association tests, and focus groups in which consumers are encouraged to bring out associations related to products and brands.
In-depth interviews
Face-to-face situations in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions.
Projective techniques
Efforts designed to gain insights into consumers’ values, motives, attitudes, or needs that are difficult to express or identify by having them project these internal states upon some external object.
Association tests
A technique in which an individual is asked to respond with the first thing that comes to mind when he or she is presented with a stimulus; the stimulus may be a word, picture, ad, and so on.
Focus groups
A small number of people with similar backgrounds and/or interests who are brought together to discuss a particular product, idea, or issue.
Information Search
The second stage in the consumer decision-making process is information search. The initial search effort often consists of an attempt to scan information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. This information retrieval is referred to as internal search.
If the internal search does not yield enough information, the consumer will seek additional information by engaging in external search. External sources of information include:
• Personal sources, such as friends, relatives, or co-workers.
• Marketer-controlled (commercial) sources, such as information from advertising,
salespeople, or point-of-purchase displays and the Internet.
• Public sources, including articles in magazines or newspapers and reports on TV.
• Personal experience, such as actually handling, examining, or testing the product.
Perception
Knowledge of how consumers acquire and use information from external sources is important to marketers in formulating communication strategies. Marketers are particularly interested in (1) how consumers sense external information, (2) how they select and attend to various sources of information, and (3) how this information is interpreted and given meaning. These processes are all part of perception, the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world.
Sensation Perception involves three distinct processes. Sensation is the immediate, direct response of the senses (taste, smell, sight, touch, and hearing) to a stimulus such as an ad, package, brand name, or point-of-purchase display. Perception uses these senses to create a representation of the stimulus.
Selecting Information Sensory inputs are important but are only one part of the perceptual process. Other determinants of whether marketing stimuli will be attended to and how they will be interpreted include internal psychological factors such as the consumer’s personality, needs, motives, expectations, and experiences. An individual’s perceptual processes usually focus on elements of the environment that are relevant to his or her needs and tune out irrelevant stimuli.
Interpreting the Information Once a consumer selects and attends to a stimulus, the perceptual process focuses on organizing, categorizing, and interpreting the incoming information. This stage of the perceptual process is very individualized and is influenced by internal psychological factors. The interpretation and meaning an individual assigns to an incoming stimulus also depend in part on the nature of the stimulus. Selectivity occurs throughout the various stages of the consumer’s perceptual process
Selective perception may occur at the exposure, attention, comprehension, or retention stage of perception.
Selective Perception
Selective exposure occurs as consumers choose whether or not to make themselves available to information.
Selective Perception Process
Selective exposure occurs as consumers choose whether or not to make themselves available to information.
Selective attention occurs when the consumer chooses to focus attention on certain stimuli while excluding others. One study of selective attention estimates the typical consumer is exposed to nearly 1,500 ads per day yet perceives only 76 of these messages.
Consumers may engage in selective comprehension, interpreting information on the basis of their own attitudes, beliefs, motives, and experiences. They often interpret information in a manner that supports their own position. For example, an ad that disparages a consumer’s favorite brand may be seen as biased or untruthful, and its claims may not be accepted.
Selective retention, which means consumers do not remember all the information they see, hear, or read even after attending to and comprehending it. Advertisers attempt to make sure information will be retained in the consumer’s memory so that it will be available when it is time to make a purchase.
Alternative Evaluation
In this stage, the consumer compares the various brands or products and services he or she has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process. The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer’s evoked set.
Evoked Set
The evoked set is generally only a subset of all the brands of which the consumer is aware. The consumer reduces the number of brands to be reviewed during the alternative evaluation stage to a manageable level.
Advertising is a valuable promotional tool for creating and maintaining brand awareness and making sure a brand is included in the
evoked set. However, marketers also work to promote their brands in the actual environment where purchase decisions are made. Point-of-purchase materials and promotional techniques such as in-store sampling, end-aisle displays, or shelf tags touting special prices encourage consumers to consider brands that may not have initially been in their evoked set.
Evaluative Criteria and Consequences
Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Evaluative criteria can be objective or subjective. Many marketers view their products or services as bundles of attributes, but consumers tend to think about products or services in terms of their consequences instead. Functional consequences are concrete outcomes of product or service usage that are tangible and directly experienced by consumers.
Psychosocial consequences are abstract outcomes that are more intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it.
Attitude Change Strategies
Multiattribute models help marketers understand and diagnose the underlying basis of consumers’ attitudes. By understanding the beliefs that underlie consumers’ evaluations of a brand and the importance of various attributes or consequences, the marketer is better able to develop communication strategies for creating, changing, or reinforcing brand attitudes. The multiattribute model provides insight into several ways marketers can influence consumer attitudes, including:
• Increasing or changing the strength or belief rating of a brand on an important attribute (Southwest Airlines has the most on-time arrivals)
• Changing consumers’ perceptions of the importance or value of an attribute (demonstrating safety in Mercedes’ ads)
• Adding a new attribute to the attitude formation process (American Airlines’ increased leg room)
• Changing perceptions of belief ratings for a competing brand (Volvo’s ads that show Volvo as stylish)
Purchase Decision
As an outcome of the alternative evaluation stage, the consumer may develop a purchase intention or predisposition to buy a certain brand. Purchase intentions are generally based on a matching of purchase motives with attributes or characteristics of brands under consideration.
Before leaving home, the consumer may make a shopping list that includes specific brand names because the consumer has developed brand loyalty—a preference for a particular brand that results in its repeated purchase. Marketers strive to develop and maintain brand loyalty among consumers. They use reminder advertising to keep their brand names in front of consumers, maintain prominent shelf positions and displays in stores, and run periodic promotions to deter consumers from switching brands.
Postpurchase Evaluation
After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. Satisfaction occurs when the consumer’s expectations are either met or exceeded; dissatisfaction results when performance is below expectations. The postpurchase evaluation process is important because the feedback acquired from actual use of a product will influence the likelihood of future purchases.
Another possible outcome of purchase is cognitive dissonance, a feeling of psychological tension or postpurchase doubt that consumer experiences after making a difficult purchase choice.
An important source of supportive information is advertising; consumers tend to be more attentive to advertising for the brand they have chosen. Thus, it may be important for companies to advertise to reinforce consumer decisions to purchase their brands.
The Consumer Learning Process
One factor in the level of problem solving to be employed is the consumer’s involvement with the product or brand.
Behavioral learning theories are based on the stimulus–response orientation (S–R), the premise that learning occurs as the result of responses to external stimuli in the environment.
Let us examine the basic principles of two behavioral learning theory approaches: classical conditioning and operant conditioning.
Classical Conditioning
Classical conditioning assumes that learning is an associative process with an already existing relationship between a stimulus and a response.
Classical-Conditioning-Process
Lancome-Associates-with-Moisture
Two factors are important for learning to occur through the associative process. The first is contiguity, which means the unconditioned stimulus and conditioned stimulus must be close in time and space. The other important principle is repetition, or the frequency of the association. The more often the unconditioned and conditioned stimuli occur together, the stronger the association between them will be.
Learning through classical conditioning plays an important role in marketing. Buyers can be conditioned to form favorable impressions and images of various brands through the associative process. Advertisers strive to associate their products and services with perceptions, images, and emotions known to evoke positive reactions from consumers. Many products are promoted through image advertising, in which the brand is shown with an unconditioned stimulus that elicits pleasant feelings. When the brand is presented simultaneously with this unconditioned stimulus, the brand itself becomes a conditioned stimulus that elicits the same favorable response.
Operant Conditioning
In the operant conditioning approach, the individual must actively operate or act on some aspect of the environment for learning to occur. Operant conditioning is sometimes referred to as instrumental conditioning because the individual’s response is instrumental in getting a positive reinforcement (reward) or negative reinforcement (punishment). Behavior that is reinforced strengthens the bond between a stimulus and a response. Thus, if a consumer buys a product in response to an ad and experiences a positive outcome, the likelihood that the consumer will use this product again increases.
Reinforcement also occurs when an ad encourages consumers to use a particular product or brand to avoid unpleasant consequences.
Two concepts that are particularly relevant to marketers in their use of reinforcement through promotional strategies are schedules of reinforcement and shaping.
Learning occurs most rapidly under a continuous reinforcement schedule, in which every response is rewarded—but the behavior is likely to cease when the reinforcement stops. Marketers must provide continuous reinforcement to consumers or risk their switching to brands that do.
Learning occurs more slowly but lasts longer when a partial or intermittent reinforcement schedule is used and only some of the individual’s responses are rewarded. Promotional programs have partial reinforcement schedules.
Reinforcement schedules can also be used to influence consumer learning and behavior through a process known as shaping, the reinforcement of successive acts that lead to a desired behavior pattern or response.
In a promotional context, shaping procedures are used as part of the introductory program for new products. Figure below provides an example of how samples and discount coupons can be used to introduce a new product and take a consumer from trial to repeat purchase.
Application-of-shaping-procedures-in-marketing
Cognitive Learning Theory
The cognitive approach to studying learning and decision making has dominated the field of consumer behavior in
recent years. Figure below shows how cognitive theorists view the learning process.
Cognitive-Learning-Process
Since consumer behavior typically involves choices and decision making, the cognitive perspective has particular appeal to marketers, especially those whose product/service calls for important and involved purchase decisions. Cognitive processes such as perception, formation of beliefs about brands, attitude development and change, and integration are important to understanding the decision-making process for many types of purchases.
Environmental Influences on Consumer Behavior
Culture
Subcultures – Social Class
Reference Groups
A reference group is “a group whose presumed perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and actions.” Consumers use reference groups as a guide to specific behaviors, even when the groups are
not present. In the party example, our peers—although not present—provided a standard of dress that we referred to in your
clothing selection. Likewise, our college classmates, family, and co-workers, or even a group to which we aspire, may serve as referents, and our consumption patterns will typically conform to the expectations of the groups that are most important to us.
The initiator: The person responsible for initiating the purchase decision process; for example, the mother who determines she needs a new car.
The information provider. The individual responsible for gathering information to be used in making the decision; for example, the teenage car buff who knows where to find product information in specific magazines or collects it from dealers.
The influencer. The person who exerts influence as to what criteria will be used in the selection process. All members of the family may be involved. The mother may have her criteria, whereas others may each have their own input.
The decision maker(s): That person(s) who actually makes the decision. In our example, it may be the mother alone or in combination with another family member.
The purchasing agent: The individual who performs the physical act of making the purchase. In the case of a car, a husband and wife may decide to choose it together and sign the purchase agreement.
The consumer: The actual user of the product. In the case of a family car, all family members are consumers. For a private car, only the mother might be the consumer.
B=f(E, P)
where, B= Buying behavior, E= Environment, P= personality of the buyer
Little Confused? let’s elaborate and explain what it signifies:
1. Appeal: Emotional, recency effect,
2. Value proposition: benefit in the form of distinct service for each personality type
3. Slogans
Marketing & Promotion Process Model:
Four major Components:
a. Marketing strategy & analysis
b. Target Marketing Process
c. Developing the Marketing Planning Program
d. The Role of Advertising and Promotion
a. Marketing strategy & analysis: A strategic marketing plan usually evolves from an organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies.
b. Target Marketing Process:
Step 2: Different Segmentation with Examples:
Step 4: Developing a positioning strategy: Positioning by (with examples)
The following are three different advertisements of Cadbury, each one resonating a different meaning.
c. Developing the Marketing Planning Program
d. The Role of Advertising and Promotion
Interactive marketers use the various promotional-mix elements—advertising, sales promotion, direct marketing, publicity/public relations, and personal selling—to inform consumers about their products, their prices, and places where the products are available.
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