Information Processing:Part I

MKT 750Dr. West

Agenda

Evaluating a Marketing Communications CampaignInformation Processing Framework

ExposureAttentionComprehension

Evaluating a Communications Campaign

Marketing Communication Vehicles

Customized

Salesperson

Web Database

Telemarketing E-mail

Direct Mail Media Radio Catalogs Newspapers

Magazines Infomercials

Television Mass

Broadcast/ Two-way w/ Instantaneous

One-Way Time Lag Interaction

Nontraditional Marketing

Product PlacementBMW Z3 Roadster

Event SponsorshipRed Bull

AtmosphericsStarbucks

Grassroots

Marketing Communications

Goals/Objectives: Outcomes:Affect behavior Increase Sales

Start with your customer/prospect Create Value

Use any and all forms of contactto get your message across

Achieve Ubiquity

Achieve synergy Enhance efficiency

Build relationships ROI

6 Key Steps For Success

Market Identify your target audience

Understand perceptions and key benefits soughtConsider the buying decision process

Mission

Set goals: sales, profit, share

Message

Develop compelling content

6 Key Steps For Success

Media

Evaluate a full spectrum of channels & vehicles

Money

Establish a budget suited to your goals

Measurement

Test integration (not isolation)

Monitor effects

Evaluating an Advertising Campaign

Who is the target market and how will they respond?

How involved is the consumer? What is the nature of the purchase?

Functional/Utilitarian vs Feeling/Hedonic First-time purchase vs Repeat purchase

Use the FCB Grid

Evaluating an Advertising Campaign

What is the objective of the campaign?

AIDA & Hierarchy of Effects Persuasion/Changing Attitudes

What are indicators of success or failure?

Evaluating an Advertising Campaign

Were the right tactical decisions made? Does the medium fit the message?

Involvement and interactivity Affect

How well is the vehicle suited to the target market? Will the target respond favorably to the source?

Is the source credible, likeable, attractive, familiar?

Evaluating an Advertising Campaign

Were the right tactical decisions made? What are the strengths and weaknesses of the ad execution that will facilitate:

Gaining attention? Comprehension? Acceptance of the message? Retention?

The Persuaders

Why are marketers feeling more pressure than ever to change and innovate? How is the industry responding to these pressures?

In a highly competitive, product-saturated marketplace, a new product needs to offer something that goes beyond the brand. What are companies doing to meet this challenge?

The Persuaders

As consumers grow more cynical about marketing claims, researchers have to refine their methods to reinforce their brand. How can a company create “loyalty beyond reason”?

What new ways do you think marketers will come up with to grab the attention of consumers?

Back to the book…

Consumer Information Processing

Consumer Information Processing

Stimuli Exposure

Attention

Comprehension

Acceptance

Retention Purchase

Gaining Exposure

This occurs when there is physical proximity to a stimulus

Vehicles Radio, TV, newspapers, magazines, internet

Selective exposureConsumers deliberately try to avoid our attempts to interact with them

Advertising, Direct mail, Telemarketing

Gaining Exposure

What’s a marketer to do?Make your message involving

“Brewing romance” campaign

Product exposure: Distribution & Visibility

Nontraditional vehicles: Elevators, Airports, Buses BMW Z3 Campaign

Overexposure

HabituationWhen a stimulus becomes familiar it loses it’s attention getting power

Ads lose half their effectiveness after accumulating 1,000 GRPs

Products are less attractive when everyone else owns one

Overexposure

Avoid overexposure throughLimited availability (scarcity)

Harry Potter

Use different ad executions carrying the same message

Absolut Vodka

Turning Exposure Into Attention

Attention can occur when there is activation of one or more of our five senses.

Each of our sensory receptors has an activation threshold Weber’s Law: JND

The amount of change necessary to be noticed is systematically related to the intensity of the original stimulus

Consumer Information Processing

Stimuli Exposure

Attention

Comprehension

Acceptance

Retention Purchase

Pre-attentive Processing

Pre-attentive Processing

Voluntary Attention

This refers to the conscious allocation of processing capacity to a stimulus.Selective Attention

Occurs when a stimulus is in line with current goals or needs Such attention is selective due to the plethora of messages we are exposed to.

Selective Attention

This ad is likely to attract mothers with small children and it reminds them of their special dental needs.

Involuntary Attention

Occurs due to a built in “novelty monitoring” mechanism

Evolutionary hypothesis – survival was best insured by attending to unusual events in the environment

Triggers:Size, Color, Contrast, Motion are noticedAppeals to our hedonic side (food & sex) are also noticed

Examples: Novelty

Examples: Color

Examples: Color

Examples: Contrast

Examples - Motion

Examples - Motion

Examples: Size

Examples: Isolation

Is Getting Attention Enough?

Attention may be short lived You have to use attention well once you have it Attention should be used in the service of building the brand, or attaining other strategic goals

Comprehension

Refers to the meaning we assign to a sensory stimulusThe most crucial process in CB because…

What consumers perceive determines their actions!Perceptions are a reflection of our attitudes and preferences

Comprehension

What is perceived is not necessarily truth

Colas - 70% confuse Pepsi and Coke Beer & Wine - blind taste test results diverge from labeled Coffee - over 50% couldn’t distinguish best from worst, or regular from instant (Consumer Reports)

Comprehension

Perceptions are often the heart of marketing issues/problems.

Olay – P&G faced issues with “Oil of Olay” being perceived as oily and old

Comprehension

Gestalt Principles: Closure – we have a tendency to complete a figure, or fill in the gaps Processing effort – the effort devoted to interpreting a stimulus leads to better comprehension and memoryFigure/Ground – perceptions differ depending upon what the individual sees as figure (dominant) versus ground (background).

Illustrations of Closure

Illustrations of Closure

Assignment

Read Chapters 8 - 9 (pp 278 - 298, 303 - 304, 316 - 330, 333 - 337)

Prepare for CaseLaunching the BMW Z3 Roadster