Transcript Contemporary Advertising

McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 5
Marketing and Consumer Behavior:
The Foundations of Advertising
The importance
of the marketing
process in
business and
the role of
advertising and
other
communications
tools
Insert Range Rover ad
Here
(p. 143)
Objectives
Define marketing
Explain the role ads play
in marketing
Discuss product utility
and its relation to
consumer needs
Explain the relationship
of utility and needs
Identify key participants
in marketing
Outline the consumer
perception process
Explain why “perception
is everything”
Describe the
fundamental motives
behind purchases
Discuss influences on
consumer behavior
Explain cognitive
dissonance
The relationship of Marketing to
Advertising
Marketing
Create exchanges that satisfy the perceived
needs, wants, and objectives of individuals
and organizations
The Relationship of Marketing to
Advertising
Marketing
Conception
Pricing
Promotion
Advertising
Distribution
Customer Needs and Product Utility
Utility
The product’s ability to
satisfy both functional
needs and symbolic
(psychological) wants
perception,
Exchanges Perception,
Exchanges,
and
satisfaction
Satisfaction
Marketing facilitates
exchanges by:
Exchanges
Any transaction in which
the a person or
organization trades
something of value with
someone else
perception,
Exchanges Perception,
Exchanges,
and
satisfaction
Satisfaction
Exchanges
Marketing facilitates
exchanges by:
Developing goods and
services
Pricing them affordably
Distributing them
Informing us about them
perception,
Exchanges Perception,
Exchanges,
and
satisfaction
Satisfaction
Perception
. . . is everything!
Seller provided
information can help
buyers to perceive a
purchase is an equalvalue exchange
perception,
Exchanges Perception,
Exchanges,
and
satisfaction
Satisfaction
Perception
Marketing is
concerned with
two perceptions:
The customer’s perception
of the product or service
The seller’s perception of
the customer’s needs,
wants, and objectives
perception,
Exchanges perception,
Exchanges,
and
satisfaction
satisfaction
Satisfaction
Must occur every time a product is used
Leads to more exchanges
perception,
Exchanges perception,
Exchanges,
and
satisfaction
satisfaction
Satisfaction
Advertising
reinforces
satisfaction
By reminding consumers
why they bought the product
By helping them defend the
purchase to others
By enabling them to
convince other prospects to
buy
Key Participants in the Marketing
Process
Customers
Centers of
Influence
Prospective
Customers
Current
customers
Key Participants in the Marketing
Process
Customers
ReIndustrial
seller
Business
Government
Global
Consumer
Markets
Markets
Markets
markets
Key Participants in the Marketing
Process
Government
Consumer
Business
Global
Markets
markets
Markets
Customers
Marketers
Consumer Behavior: The Key to
Advertising Strategy
Consumer
Behavior
Mental and emotional
processes and activities
of people who produce
goods and services to
satisfy needs and wants
The Consumer Decision Process: An
Overview
Personal
Learning
and
Processes
Perception
Motivation
persuasion
Interpersonal
Society
Culture
Family
Influences
Nonpersonal
Influences
The Consumer Decision Process: An
Overview
Personal
Processes
Interpersonal
Influences
Nonpersonal
Place
Time
Environment
Influences
The Consumer Decision Process: An
Overview
Interpersonal
Influences
Steps in the decision
process
Personal
Processes
Nonpersonal
Influences
Needs
Wants
1. Problem recognition
2. Information search
3. Evaluation and
selection
4. Store choice and
purchase
5. Postpurchase
behavior
The Consumer Perception Process
Physical
data
(stimuli)
Ad/commercial
Promotion
News item
Product/store
Price tag
Conversion
Physiological
Psychological
screens
(sensory)
screens
(emotional)
Sight
Hearing
Touch
Taste
Smell
Personality
Self-concept
Attitudes
Beliefs
Habits
Mental files
(memory)
Awareness
Nonawareness
Feedback
•Information
•Needs
•Wants
Theories of Learning
Learning
Cognitive Theory Conditioning
Theory
Mental process of
memory, thinking,
problem solving

Relevant
Trial-and-error
process
to how we Relevant to basic,
learn from others
simple, everyday
and evaluate
purchases
complex purchases
Persuasion: Elaboration Likelihood
Model (ELM)
Exposure to
the persuasive
communication
(AD)
Is involvement
with the
product or
message
high?
Attention
Comprehension
Focus on
“central”
Product-related
information
Deeper thoughts
about product
attributes and
consequences
More elaboration
Central Route
Processing
IF YES
Persuasion
Product beliefs
Brand attitude
Purchase intention
Elaboration Likelihood Model
Exposure to
the persuasive
communication
(AD)
Attention
Focus on
“peripheral”
nonproduct
information
Is involvement
with the
product or
message
high?
Peripheral Route
Processing
IF NO
Comprehension
Persuasion
•Shallow
thoughts about
nonproduct
information
•Low elaboration
•Nonproduct beliefs
•Attitude toward ad
•Brand attitude
•Purchase intention
Learning
Leads to habit
Produces attitude
Learning
Produces brand
interest
Leads to
brand loyalty
Defines needs
and wants
Learning
Consumer Motivation Process
Motivation
Underlying force that contributes
to our purchasing actions. Stems
from . . .
Needs
Wants
Maslow’s Heirarchy of Needs
Golf lessons
Luxury car
Pendant
Tires
Breakfast cereal
Self-actualization
Esteem
Social
Safety
Physiological
Motives
Negatively
oriented
motives
Positively
oriented
motives
Problem
removal
Problem
avoidance
Sensory
gratification
Intellectual
stimulation
Social
approval
Informational
Motives
Transformational
Motives
Interpersonal influences
Family
Society
Social
Classes
Interpersonal
Influences
Reference
Groups
Opinion
Leaders
Nonpersonal influences
Time
Nonpersonal
Influences
Place
Environment
Purchase Decision and Postpurchase
Evaluation
She is
thinking about
buying a CD
player
Meet Chris!
Purchase Decision and Postpurchase
Evaluation
Chris
considers an
evoked set
•Sony
•Panasonic
•Pioneer
Purchase Decision and Postpurchase
Evaluation
These brands
satisfied her
evaluative
criteria
•High quality
•Durable
•Skip resistant
Purchase Decision and Postpurchase
Evaluation
After choosing a CD
player, Chris begins
postpurchase
evaluation
Will my friends like it?
Was it worth the
money?
Purchase Decision and Postpurchase
Evaluation
To deal with conflicted
feelings about her
purchase, Chris may
try to reduce cognitive
dissonance
It’s a great player
I love looking at ads
for it!