Advertising and Promotion Lecture No 1

Advertising in itself a communication process Factors that affect communication

How much customer know What they think about the company Image the company hopes to create

Communication

Passing of information Exchange of Ideas Oneness of thought between sender and receiver
Common thinking between parties Existence of Sender and Receiver

Important Factors in Communication

Feedback

Source/ Sender

Encodin g Sender Sphere of Experience

Channel Message

Decoding

Receiver

Receiver Sphere of Experience Noise

Nature of Message Audience Interpretation Environment in which it is received Language

Source = Person or Organization to share information Marketer Should Select source that is trust worthy or knowledgeable

Who is the Sender/Source What is the message?

Write it down on paper

10 minutes

Message contains the information or meaning the source wants to convey. Semiotics: Use of gestures and myths etc. Use of anthropologists Criticism of too deep ads.

Method of how communication travel Personal Channels

Word of mouth

Non Personal Channels

Mass media (Print, TV and Radio)

Receiver is the person whom the sender shares thoughts or information Decoding is the process of tranforming the sender message back into thoughts Field of Experience Decoding must match encoding for effective communication (Common Ground) Age as problematic area in common ground

Unplanned Distortion or interference Distortion in radio and tv signal Errors in encoding message Different fields of experience

Reaction of receiver after decoding the message Feedback helps sender to see the reaction and adjust the message accordingly

The Traditional Hierarchy Models

Attention, Interest, Desire, Action Relevant to Salesperson in selling process Closing the sale as the most difficult part in selling process My Sales experience with State Life Insurance

How Advertising Works Advertising effect occurs over a period of time. Awareness Knowledge Liking Preference Conviction Purchase

Consumers adopting a new model/product. Potential adopters must be moved through a series of steps before taking some action. Problem of awareness creation in case of a new product The best way to evaluate the product is through its actual use (trial)

Advertising as information processor or problem solver First, you get exposed to something Then, you pay attention to it Then, you create meaning from it

Interpretation

Then, you decide whether you like or dislike the object

Attitudes

And final stage is choice

STEPS IN ADVERTISING MODEL EXPOSURE Selection

ATTENTION

Understanding the ad (Interpretation)

COMPREHENSION

Brand Attitude

MESSAGE ACCEPTANCE

Ad memory

RETENTION
PURCHASE BEHAVIOR
Note the similarity with IP model

If all works out, then you get purchase/choice

Models Stages AIDA Model Hierarchy of Effects model Awareness Knowledge Innovation Adoption Model Awareness Information Processing Model Presentation Attention Comprehensio n

Cognitive Stage

Attention

Affective Stage
Behavioral Stage

Interest
Desire

Liking Preference Conviction

Interest
Evaluation Trial

Yielding
Retention

Action

Purchase

Adoption

Behavior

In Marketing Communication

Extended Problem Solving

High perceived risk Typically expensive, infrequently purchased products

Low perceived risk Purchases made out of habit or brand loyalty Typically inexpensive, frequently purchased product

Routine Problem Solving

Limited Problem Solving

Moderate perceived risk Consumer has limited time or energy

Problem recognition Information search Alternative evaluation Decision Post decision evaluation

Occurs when the consumer sees a significant difference between his or her actual and ideal state. Where do we get our notion of what is ideal? personal expectations personal aspirations culture reference group marketing

Recalling information, experiences, and feelings concerning products and brands. How much do we engage in internal search? What kind of information is recalled?
1. 2. 3. 4. Brands Attributes Evaluations Experiences Confirmation bias

Is internal search always accurate?

Consumers acquire information from outside sources. Engage in pre-purchase and ongoing search External Sources 1. Retailer search
2. 3. 4. 5. Media search Interpersonal search Independent search Internet source effects of information overload

Is external search always accurate?

Motivation to Process Information Ability to Process Information Opportunity to Process Information

Identifying Alternatives

evoked set and consideration set

Identifying Evaluative Criteria

information search suggests criteria and identifies brands Evaluative criteria includes those criteria that are important to the consumer when rating product alternatives Firms try to identify evaluative criteria through market research.

Consumers select and purchase the product alternative that best meets his or her evaluative criteria. Noncompensatory decision rules Compensatory decision rules

Process where consumer reevaluates the product as he uses it. Product performance is compared with consumer expectations. Satisfied customers Dissatisfied customers Cognitive dissonance

Heuristics Market Beliefs Brand Loyalty Habit Impulse Purchases Variety Seeking

Consumer behavior is influenced by the circumstances surrounding the purchase of a product. Social surroundings Physical surroundings Temporal effects Purchase task