Advertising Principles and Practices How Advertising Works

Part Two: Planning and Strategy Focuses on how advertising works Examines the consumer audience and how targeting works Looks at the important role of research Discusses how strategy is shaped into an advertising plan (Insert new book cover) Prentice Hall, © 2009 4-2

Questions We’ll Answer Why is communication a key factor in advertising effectiveness? How did the idea of advertising effects develop, and what are the problems in traditional approaches to advertising effects? What is the Facets Model of Advertising Effects, and how can you use it to explain how advertising works?

Chick-fil-A Builds Brand with Renegade Cows They’re outnumbered 15 to 1 in store count and outspent 60 to 1 in media by the big fast food chains. So how did they build their brand? \ Visit the Site Prentice Hall, © 2009 4-4

How does advertising work as communication? Effective advertising is a message to a consumer about a brand. It gets attention, provides information, and sometimes entertains. It seeks to create a response, such as an inquiry, a sale, or Web site visit.

The Communication Model Mass communication is generally a one-way process with the message moving from sender to receiver. Feedback is obtained by monitoring the receiver’s response to the message.

The Communication Model Interactive communication is two-way—a dialogue—and this is where marketing communication is headed. The source and receiver change positions as the message bounces back and forth between them.

Advertising as Communication Prentice Hall, © 2009 4-8

Adding Interaction to Advertising If advertisers want to overcome the impersonal nature of mass communication, they need to learn to receive (listen) as well as send information. The Internet has created opportunities for Web sites, chat rooms, email, and blogs to interact Two-way interaction is an objective of Integrated Marketing Communications Now, feedback is occurring in real time. Through personal selling, customer service, online marketing, response devices, toll-free numbers, and email.

The Effects Behind Advertising Effectiveness Good advertising—and marketing communication—is effective when it generates the advertiser’s desired response. Principle: The intended consumer response is the message’s objective, and the message is effective to the degree that it achieves this desired response.

Traditional Approaches AIDA (Attention, Interest, Desire, Action) Assumes a predictable set of steps Think-Feel-Do Think about the message, feel something about the brand, then do something like try it Domains Messages have various impacts on consumers simultaneously (perception, learning, and persuasion)

Problems with Traditional Approaches They presume a predictable set of steps. Some effects are missing—brand linkage and motivation. Brand communication is the most important. The foundation of Ogilvy & Mather’s 360° Brand Stewardship philosophy Visit the Site

The Facets Model of Effects Does a more complete job of explaining how advertising creates consumer responses. Useful in both setting objectives and evaluating advertising effectiveness The six facets come together to make up a unique customer response to an advertising message. Prentice Hall, © 2009 4-14

Marketing Communication Effects Communication Consumer Objective Response Drivers Perception See/Hear exposure, selection, attention, interest/relevance, awareness, recognition Emotion/Affective Feel want/desire, feelings, liking, resonance Cognition Understand need, cognitive learning, differentiation, recall Association Connect symbolism, conditioned learning, transformation Persuasion Believe motivation, influence, involvement, conviction, believability/ credibility, preference and intention, loyalty Behavior Act trial, buying, contacting, advocating, referral, prevention/ avoidance

See/Hear: the Perception Facet Perception: the process by which we receive information through our five senses and assign meaning to it. Selective perception: Consumers select messages to which they pay attention. Principle: For an advertisement to be effective, it first has to get noticed or at least register on some minimal level on our senses.

See/Hear: Key Factors Driving Perception Exposure Media planners want consumers to see or hear the message. Selection and attention Selective attention: consumers choose to attend to the message. Interest and relevance Interest: receiver mentally engages with the ad or product. Relevance: message connects on some personal level. Awareness An ad makes an impression; it registers with the consumer Recognition Recognition: people remember the ad. Recall: people remember what the ad said.

Feel: the Affective or Emotional Facet Affective responses mirror our feelings about something. “Affective” describes something that stimulates wants, touches the emotions, and elicits feelings. Subliminal effects are message cues given below the threshold of perception.

Feel: Factors Driving the Affective Response Wants Driven by emotions; based on desires, wishes, longings, cravings Feelings Emotional appeals based on humor, love, or fear Liking (the brand and the ad) If you like the ad, those positive feelings transfer to the brand. Resonate A feeling that the message rings true Consumer identifies with the brand on a personal level Principle: A positive response to an ad is important because advertisers hope that liking the ad will increase liking the brand.

Understand: the Cognitive Facet Cognition: how consumers search for and respond to information; learn and understand something.. It’s a rational, “left-brain” approach. To creatively communicate its new seating in coach, American Airlines used the left-brain/right brain approach in this ad.

Understand: Factors Driving Cognitive Response Need Something you think about Ad messages describe something missing in consumer’s lives. Cognitive Learning Presenting facts, information, and explanations leads to understanding. Comprehension: process by which we understand, make sense of things, or acquire knowledge. Differentiation The consumer’s ability to separate one brand from another, based on an understanding of a competitive advantage. Recall A measure of learning or understanding You remember the ad, the brand, and the copy points.

Connect: the Association Facet Association: using symbols to communicate. The primary tool used in brand communication. Brand linkage reflects the degree to which the associations presented in the message, as well as the consumer's interest, are connected to the brand.

Connect: Factors Driving Association Symbolism A brand takes on a symbolic meaning. It stands for certain, usually abstract, qualities. Conditional Learning Thoughts and feelings associated with the brand. Beer is about sporting events, beach parties, and pretty women. Transformation A product is transformed into something special, differentiated by its brand image symbolism and personality.. Principle: Advertising creates brand meaning through symbolism and association. These meanings transform a generic product into a specific brand with a distinctive image and personality.

Believe: the Persuasion Facet Persuasion: influencing or motivating the receiver of a message to believe or do something Attitude: an inclination to react in a given way Attitudes become beliefs when people are convinced. Principle: Advertising employs both rational arguments and compelling emotions to create persuasive messages.

Believe: Factors Driving Persuasion Motivation Something (e.g., hunger) prompts one to act in a certain way. Influence Opinion leaders may influence other peoples’ attitudes. Bandwagon appeals: messages say “everyone is doing it.” Word of mouth is created by strategies that engage influencers. Involvement How engaged you are in paying attention. The process you go through in responding to a message and making a product decision. High involvement vs. low involvement.

Believe: Factors Driving Persuasion Conviction Consumers agree with a message and achieve a state of certainty—a belief—about a brand. Loyalty Brand loyalty is both attitude (liking, respect, preference) and action (repeat purchases). It’s built on customer satisfaction. Believability and Credibility Believability: the credibility of the arguments in a message. Credibility: indication of the trustworthiness of the source. Source credibility: the person delivering the message is respected, trusted, and believable.

Act: the Behavior Facet Behavior: the action response. Involves a number of actions including: Trying or buying the product Visit a store Return an inquiry card Call a toll-free number Click on a Web site Direct action vs. indirect action Visit the Site

Act: Factors Driving the Behavioral Response Try Important for new or expensive products. Buy Advertising stimulates sales by the a call-to-action. Contact Consumers respond by contacting the advertiser. Advocate and Refer Advocacy: speaking out on a brand’s behalf. Referral: a satisfied customer recommends a favorite brand. Prevent Presenting negative messages about an unwanted behavior and creating incentives to stimulate the desired behavior.

Do anti-drug ads lead to increased drug usage? Prentice Hall, © 2009 4-29

The Power of Brand Communication How the Facets Create a Coherent Brand Perception Interaction and Impact The effects are interdependent. They are not all equally effective in all situations. Strong and Weak Effects Strong Theory: advertising can persuade people who had never bought a brand to buy it once, and then repeatedly. Weak Theory: advertising has a very limited impact on consumers and is best used to reinforce existing brand perceptions, rather than change attitudes. Principle: Advertising has delayed effects in that a consumer may see or hear an advertisement but not act on that message until later when in a store.

Discussion Questions

Discussion Question 1 What is breakthrough advertising? What is engaging advertising? Look through this textbook, find an example of each, and explain how they work. Prepare to explain in class why you evaluated the two ads as you did.

Discussion Question 2 This chapter identifies six major categories of effects or consumer responses. Find an ad in this book that you think is effective overall and explain how it works, analyzing the way it cultivates responses in these six categories.

Discussion Question 3 Uma Proctor is a planner in an agency that handles a liquid detergent brand that competes with Lever’s Wisk. Uma is reviewing a history of the Wisk theme, “Ring around the Collar.” In its day, it was one of the longest-running themes on television, and Wisk’s sales share indicated that it was successful. What is confusing Uma is that the Wisk history includes numerous consumer surveys that show consumers find “ring around the collar” to be a boring, silly, and irritating advertising theme. Can you explain why Wisk is such a popular brand even though its advertising campaign has been so disliked?

Discussion Question 4 Three-minute debate: You have been asked to participate in a debate in your office about three different views on advertising effects. A copywriter says informing consumers about the product’s features is most important in creating effective advertising. An art director argues that creating an emotional bond with consumers in more important. One of the account managers says that the only advertising performance that counts is sales. Organize into small teams with each team taking one of the three sides. In class, set up a series of five-minute debates in which each side has half that time to argue its position. Every team of debaters must present new points not covered in the previous teams’ presentations until there are no arguments left to present. Then the class votes as a group on the winning point of view.

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