objectives setting. major decisions in advertising
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Objectives Setting
Major Decisions in Advertising
Advertising Objectives
Sales Objectives Communications Objectives
Sales Objectives
Specific, measurable outcomes within a given time period.
E.g. sales volume, market share, profits, or ROI.
A good sales objective is quantifiable, realistic and attainable. In addition, it also delineates the target market and time frame.
Appropriate Situations for Sales Objectives
Induce an immediate behavioral response Direct-response advertising Retail advertising for special events, e.g. 新光三越, 家樂福.
Advertising plays a dominant role in a firm’s marketing program and other factors are relatively stable, e.g. consumer packaged goods.
Sales Objectives are Appropriate for Direct Response Advertising
Problems with Sales Objectives
Too many factors influence sales. Carryover effect: for mature, frequently
purchases, low-priced products, advertising effect on sales lasts up to 9 months.
Offer little guidance to the managers. Induce the managers to take a short-term
perspective.
Many Factors Influence Sales
Product QualityPromotion
Distribution
Competition
Technology
The Economy Price Policy
SALES
Communications Objectives
Designed to achieve such communications as brand knowledge and interests, favorable attitudes and images, and purchase intentions.
Not all Ads are Designed to Achieve Sales
Pampers Toyota Ford 中華汽車
The Response Process
Traditional Response Hierarchy Models AIDA model Innovation adoption model Hierarchy of effects model Information processing model
Alternative Response Hierarchies The dissonance/attribution model (Dissonance-reducing
buying behavior) The low-involvement model (variety-seeking buying
behavior & habitual buying behavior)
AIDA Model (Strong, 1925)
Attention → Interest → Desire → Action The stages a salesperson must take a
customer through in the personal-selling process.
Hierarchy of Effects Model(Lavidge and Steiner, 1961)
Awareness → Knowledge → Liking → Preference → Conviction → Purchase
A paradigm for setting and measuring advertising objectives
Premise: advertising effects occur over a period of time.
Innovation Adoption Model(Rogers, 1962)
Awareness → Interest → Evaluation → Trial → Adoption
The stages a consumer passes through in adopting a new product or service
Information Processing Modelof Advertising Effects (William McGuire, 1978)
Presentation → Attention → Comprehension →Yielding → Retention → Behavior
Assume that the receiver in a persuasive communication situation like advertising is an information processor or problem solver.
McGuire’s model includes a stage not found in the other models: retention, or the receiver’s ability to retain that portion of the comprehended information that he or she accepts as valid of relevant.
Models of Obtaining Feedback
Exposure/presentationExposure/presentation
AttentionAttention
ComprehensionComprehension
Message acceptance/yielding
Message acceptance/yielding
RetentionRetention
Purchase behaviorPurchase behavior
Circulation reachCirculation reach
Listener, reader,viewer recognitionListener, reader,
viewer recognition
Recall, checklistsRecall, checklists
Brand attitudes,purchase intentBrand attitudes,purchase intent
Recall over timeRecall over time
Inventory POP consumer panel
Scanner data
Inventory POP consumer panel
Scanner data
RetentionRetentionRecall over timeRecall over time
Message acceptance/yielding
Message acceptance/yielding
Brand attitudes,purchase intentBrand attitudes,purchase intent
ComprehensionComprehensionRecall, checklistsRecall, checklists
AttentionAttentionListener, reader,viewer recognitionListener, reader,
viewer recognition
Exposure/presentationExposure/presentationCirculation reachCirculation reach
Effectiveness TestEffectiveness Test Persuasion ProcessPersuasion Process
Examples of Exposure/Presentation
Stages
Cognitive
Affective
Behavioral
Models
AIDA
model
Attention
Interest
Desire
Action
Hierarchy of
effects model
Awareness
Knowledge
Linking
Preference
Conviction
Purchase
Innovation
adoption
Awareness
Interest
Evaluation
Trial
Adoption
Information
Processing
Presentation
Attention
Comprehension
Yielding
Retention
Behavior
Models of the Response Process
Three Basic Stages
Cognitive stage (think): what the receiver knows or perceives about the particular product or brand.
Affective stage (feel): the receiver’s feelings or affect level for the particular product or brand.
Behavioral or Conative stage (do): the receiver’s action toward the particular product or brand.
Implications of the Traditional Hierarchy Models
Potential buyers may be at different stages in the hierarchy, so the advertiser will face different sets of communication problems. Cognitive, e.g. DHC, Pinky, 3M魔布強效拖把.
Affective, e.g. 全國電子 , 三菱SAVRIN, 泰國人壽, Pantene Thailand.
Behavioral, e.g. Heineken, KFC, www.one.org. It is useful for the measurement of
communication effect.
Alternative Response Hierarchies(Michael Ray, 1973)
High Involvement Low Involvement
High Perceived Product
Differentiation
Standard Learning Model
(C→A→B)
Low-Involvement Model
(C→B→A)
Low Perceived Product
Differentiation
Dissonance/Attribute Model
(B→A→C)
Four Types of Buying Behavior(Henry Assael, 1987)
High Involvement Low Involvement
Significant DifferencesBetween Brands
Complex buying behavior
(C→A→B)
Variety-seeking buying behavior
(C→B→A)
Few DifferencesBetween Brands
Dissonance-reducing buying
behavior
(B→A→C)
Habitual buying behavior
(C→B→A)
Ads for Complex Buying Behavior
Theory of Cognitive Dissonance
When a person is confronted with inconsistence among attitudes or behaviors, he or she will take some action to resolve this “dissonance,” perhaps by changing an attitude or modifying a behavior.
It helps to explain why evaluations of a product tend to increase after it has been purchased.
One implication of this phenomenon is that consumers actively seek support for their purchase decisions.
Ads for Dissonance-Reducing Buying Behavior
Ads for Low-Involvement Behavior
Think
In spite of C→A→B, B→A→C and C→B→A, is there another type of response process?
Involvement ConceptAntecedents of
involvement derived from the literature
Antecedents of involvement derived from the literature
Person factors - Needs - Importance - Interest - Values
Person factors - Needs - Importance - Interest - Values
Object or stimulus factors - Differentiation of alternatives - Source of communication – Content of communication
Object or stimulus factors - Differentiation of alternatives - Source of communication – Content of communication
Situational factors -Purchase/use -Occasion
Situational factors -Purchase/use -Occasion
Possible results of involvement
Possible results of involvement
Elicitation of counterarguments to ads
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
Elicitation of counterarguments to ads
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
Involvement
With advertisements
With products
With purchase decisions
Involvement
With advertisements
With products
With purchase decisions
Decision Rules
Compensatory Simple Additive Rule Weighted Additive Rule
Noncompensatory The Lexicographic Rule The Elimination-by-Aspects Rule The Conjunctive Rule
Decision Rules – Compensatory
Simple Additive Rule Weighted Additive Rule
Fishbein-Ajzen Model
k: consumer, j: brand, i: attribute, n: number of attribute, W: weight, B: belief, A: attitude.
The Idea-Point Model
1
n
kj ki kijiA W B
1
n
kj ki kij kijiA W I B
A Consumer’s Brand Beliefs about Computers
Computer Attribute
Memory Capacity
Graphics Capability
Size and Weight Price
A 10 8 6 4
B 8 9 8 3
C 6 8 10 5
D 4 3 7 8
Marketing Strategies
Alter beliefs about the brand: psychological repositioning, e.g. 蠻牛 , DHL, Extra, 萬安生命.
Alter beliefs about competitor’s brands: competitive positioning, e.g. 威寶電信, 德恩奈系列牙刷.
Alter the important weights, e.g. 台灣啤酒 , 薄酒萊 . Call attention to neglected attributes, e.g. Extra潔淨無糖口香糖, 聲寶殺菌光.
Redesign the product: repositioning, e.g. Arm & Hammer, 綠油精 – 1, 2.
Case: Beaujolais (薄酒萊 )
產地: South of Burgundy 品種: Gamay Noir 一般品嚐葡萄酒常強調陳年、厚實。 薄酒萊強調新鮮、果香,利用行銷策略、舉辦「新酒節」等方式,使消費者接受其訴求。
Decision Rule – Noncompensatory
The Lexicographic Rule The brand on the most important attribute is selected.
The Elimination-by-Aspects Rule (Tversky, 1972) Brands are evaluated on the most important attribute, and
specific cutoffs are imposed. Compromise effect, e.g. 菜單上最貴的的菜色 (HBR 中文版
June 2008, p.38).
The Conjunctive Rule Cutoffs are established for each attribute.
A Consumer’s Brand Beliefs about Computers
Computer Attribute
Memory Capacity
Graphics Capability
Size and Weight Price
A 10 8 6 4
B 8 9 8 3
C 6 8 10 5
D 4 3 7 8
Think
What factors may affect a consumer’s decision rule?
Setting Objectives Using the Communications Effects Pyramid
Product: Backstage Shampoo Time period: Six months Objective 1: 90% awareness Objective 2: 70% interest Objective 3: 40% positive feelings and 25%
preference Objective 4: 20% trial Objective 5: 5% main regular use
Inverted Pyramid of Communications Effects
90% Awareness
70% Knowledge
40% Liking
25% Preference
20% Trial
5% UseC
onative
(Behavioral)
Cognitive
Affective