1 Positioning Via Attributes: Non- Product- Related Usage Imagery

2 Examples of Repositioning a Brand “ Flame-Broiled” Vs. “Fire-Grilled” “Oil of Olay” to Olay

3 Implementing Positioning Consumer Processing Model (CPM): information and choice are seen as a rational, cognitive, systematic and reasoned process. Hedonic, Experiential Model (HEM): views consumers’ processing of marcom messages and behavior as driven by emotions in pursuit of fun, fantasies and feeling.

4 Comparison of the CPM and HEM Models

5 The Consumer Processing Model (CPM)CPMCPM

6 Stage 1: Consumer Information Processing Exposure to information Consumers come in contact with the marketer’s message Gaining exposure is a necessary but insufficient for communication success “The truth effect”: repeated exposure to a message increases the likelihood that the receiver will believe it to be true. A function of key managerial decisions regarding the size of the budget and the choice of media and vehicles

7 The 8 Stages of Consumer Information ProcessingCPMCPM

8 Stage 2: Paying Attention Focus on and consider a message to which one has been exposed Highly selective

9 Stage 2: Paying Attention To attract consumers’ attention and avoid selectivity: Create messages that truly appeal to their needs for product-relevant information

10 Stage 2: Paying Attention Illustration of an ad likely to encounter selective attention

11 The 8 Stages of Consumer Information ProcessingCPMCPM

12 Stage 3: Comprehension Understand and create meaning out of stimuli and symbols Interpreting stimuli involves perceptual encoding

13 Perceptual Encoding 1. Feature analysis: I nitial stage whereby a receiver examines the basic features of a stimulus 2. Active synthesis: Beyond examining physical features, the context or situation plays a major role in what meaning is acquired

14 Selective Perception: Each individual is likely to perceive images in different ways

15 Miscomprehension 1.Messages themselves are sometimes misleading or unclear. 2.Consumers are biased by their own preconceptions and thus “see” what they choose to see 3.Processing of advertisements often takes place under time pressures and noisy circumstances.

16 The 8 Stages of Consumer Information ProcessingCPMCPM

17 Stage 4: Agreement Comprehension by itself does not ensure that the message influences consumers’ behavior Agreement depends on –whether the message is credible –whether the information is compatible with the values that are important to the consumer.

18 The 8 Stages of Consumer Information ProcessingCPMCPM

19 The 8 Stages of Consumer Information ProcessingCPMCPM

20 Retention and Search/Retrieval of Stored Information These two information processing stages, retention and information search and retrieval, both involve memory factors related to consumer choice

21 Elements of Memory Memory Memory involves the related issues of what consumers remember about marketing stimuli and how they access and retrieve information when making consumption choices

22 Elements of Memory Sensory stores(SS): – Information is rapidly lost unless attention is allocated to the stimulus Short-Term Memory(STM): – Limited processing capacity –Information not thought about or rehearsed will be lost in 30 seconds or less

23 Elements of Memory Long-Term Memory (LTM): –A virtual storehouse of unlimited information –Information is organized into coherent and associated cognitive units called schemata, memory organization packets, or knowledge structures –The marketer’s job is to provide positively valued information that consumers will store in LTM

24 A Consumer’s Knowledge Structure for the VW Beetle

25 Two Types of Learning Strengthening of linkages among specific memory concepts –repeating claims, presenting them in a more concrete fashion and being creative in conveying a product’s features Establishing entirely new linkages

26 An Effort to Strengthen a Brand Linkage Using a Concrete Illustration

27 Information that is learned and stored in memory only impacts consumer choice behavior when it is searched and retrieved Retrieval is facilitated when new information is linked with another concept that is well known and easily accessed Dual-Coding Theory: Pictures are represented in memory in verbal as well as visual form, whereas words are less likely to have visual representations. Search and Retrieval of Information

28 The 8 Stages of Consumer Information ProcessingCPMCPM

29 The 8 Stages of Consumer Information Processing

30 A CPM Wrap-Up The rational consumer processing model (CPM) and the hedonic, experiential model (HEM) are not mutually exclusive.

31 The HEM perspective People often consume products for the fun of it or in the pursuit of amusement, fantasies, or sensory simulation Products are subjective symbols that precipitate feelings and promise fun and the possible realization of fantasies The communication of HEM-relevant products emphasizes nonverbal content or emotionally provocative words and is intended to generate images, fantasies, and positive emotions and feelings

32 CPM vs. HEM An advertisement exemplifying the HEM approach