Transcript MKT 452 - johnstockmyer.com

3
Organizing for Advertising and
Promotion: The Role of Ad
Agencies and Other Marketing
Communication Organizations
McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Organizational Options For Clients
 Centralized System –
Advertising and promotion placed alongside other
marketing functions such as sales, research and
product planning
 Decentralized System
Separate marketing, sales, advertising and promotion
departments for various product lines or businesses of
the company. Often use product or brand
management system
 In-House Agencies
Advertising agency set up within the company and is
owned and operated internally
Example of the Commission System
I found this explanation confusing. . .
Commison Model (15%)
85,000
CLIENT/
ADVERTISER
P&G
100,000
Ad. Agency
BBDO
MEDIA
100,000
People
Magazine
15,000
Basically, the Ad. Agency gets a volume discounts
from the Media Owner (Magazine, Network, etc.)
Interactive – Media Placement
• Burst Media:
– Jarvis Coffin
• The Myth of Manufactured Stickiness
(Article)
• The Stickiness Concept
5
The Communication Process
McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
What is the symbolic meaning of the Snuggle bear?
Models of the Response Process
Models
Stages
AIDA
Hierarchy of
Innovation
Information
model
effects model
adoption
Processing
Attention
Awareness
Awareness
Presentation
Cognitive
Attention
Knowledge
Interest
Affective
Interest
Linking
Comprehension
Yielding
Preference
Desire
Conviction
Evaluation
Retention
Trial
Behavioral
Action
Purchase
Adoption
Behavior
Similarities / Differences?
Aaker's 5 - Stages
of Brand Loyalty
Friend
of Brand
Prefers Brand
Likes Brand
Positive Att. toward Brand
Aware of Brand
Advertising is used to make consumers
aware of new products and their features
Yes, but. . .
Is that what the ad is
REALLY trying to do?
Involvement Concept
Possible results
of involvement
Antecedents of
involvement derived
from the literature
Person factors
- Needs
- Importance
- Interest
- Values
Object or stimulus factors
- Differentiation of
alternatives
- Source of communication
– Content of
communication
Situational factors
-Purchase/use
-Occasion
Elicitation of
counterarguments to
ads
Involvement
With advertisements
With products
With purchase decisions
Effectiveness of ad to
induce purchase
Relative importance of
the product class
Perceived differences
in product attributes
Preference of a
particular kind
Influence of price on
brand choice
Amount of information
on search
Time spend
deliberating alternatives
Type of decision rule
used in choice
The Elaboration Likelihood Model
Focuses on the way consumers respond to
persuasive messages based on the amount and
nature of elaboration or processing of information
Routes to attitude change
 Central route to persuasion – ability and motivation
to process a message is high and close attention is
paid to message content
 Peripheral route to persuasion – ability and
motivation to process a message is low and receiver
focuses more on peripheral cues rather than
message content
Elaboration Likelihood Model (ELM)
LOW
HIGH
E.L Continuum
Peripheral Processing
# of Arguments
Spokesperson Effects
Music
Imagery
Category-Based Processing
Central Processing
Arg. Quality
Attribute-Based
Processing
Motivation + Ability = Central Processing
High Involvement Appeals
• Factual Information
• Hard Data
• Appeals to “Experts”
• Example (Toshiba Laptop)
Low Involvement Appeals
• Little or no Factual Information
• Imagery
• Emotional
• Appeals to “Novices”
• Example (Toshiba Slide)
EXTRA
If Time!
New Product Introduction
With / Without Free Sampling
% of Households Buying
Free Sample
Recipients
(16.0%)
Control
Group
(11.4%)
Time in Months
Relationship between
Level of Fear and Persuasion
Persuasive Effect
Texting while driving ad.
Level of Fear