1. Objectives Setting

2. Major Decisions in Advertising

3. Advertising Objectives Sales Objectives Communications Objectives

4. 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.

5. 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. 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.

6. Sales Objectives are Appropriate for Direct Response Advertising

7. 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.

8. Many Factors Influence Sales Product Quality Promotion Distribution Competition Technology The EconomyPrice Policy SALES

9. Communications Objectives Designed to achieve such communications as brand knowledge and interests, favorable attitudes and images, and purchase intentions.

10. Not all Ads are Designed to Achieve Sales Pampers Toyota Ford 中華汽車

11. 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)

12. AIDA Model AIDA Model (Strong, 1925) Attention → Interest → Desire → Action The stages a salesperson must take a customer through in the personal-selling process.

13. 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.

14. Innovation Adoption Model (Rogers, 1962) Awareness → Interest → Evaluation → Trial → Adoption The stages a consumer passes through in adopting a new product or service

15. Information Processing Model of 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.

16. Models of Obtaining Feedback Exposure/presentation Attention Comprehension Message acceptance/ yielding Message acceptance/ yielding Retention Purchase behavior Circulation reach Listener, reader, viewer recognition Listener, reader, viewer recognition Recall, checklists Brand attitudes, purchase intent Brand attitudes, purchase intent Recall over time Inventory POP consumer panel Scanner data Inventory POP consumer panel Scanner data Retention Recall over time Message acceptance/ yielding Message acceptance/ yielding Brand attitudes, purchase intent Brand attitudes, purchase intent Comprehension Recall, checklists Attention Listener, reader, viewer recognition Listener, reader, viewer recognition Exposure/presentation Circulation reach Effectiveness Test Persuasion Process

17. Examples of Exposure/Presentation

18. In the Internet era, what stage will you add into the response process?

19. 有「梗」的產品 榨汁機 豬排飯

20. 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

21. 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.

22. 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.3M 魔布強效拖把 Affective, e.g. 全國電子, Guinness, 泰國人壽, Pantene Thailand.Guinness 泰國人壽 Pantene Thailand Behavioral, e.g. Heineken, KFC, www.one.org.HeinekenKFCwww.one.org It is useful for the measurement of communication effect.

23. Alternative Response Hierarchies (Michael Ray, 1973) High InvolvementLow 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)

24. Four Types of Buying Behavior (Henry Assael, 1987) High InvolvementLow Involvement Significant Differences Between Brands Complex buying behavior (C→A → B) Variety-seeking buying behavior (C → B → A) Few Differences Between Brands Dissonance- reducing buying behavior (B → A → C) Habitual buying behavior (C → B → A)

25. Ads for Complex Buying Behavior

26. 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.

27. Ads for Dissonance-Reducing Buying Behavior

28. Ads for Low-Involvement Behavior

29. Think In spite of C→A→B, B→A→C and C→B→A, is there another type of response process?

30. Involvement Concept Antecedents of involvement derived from the literature Person factors - Needs - Importance - Interest - Values Object or stimulus factors - Differentiation of alternatives - Source of communication – Content of communication Situational factors -Purchase/use -Occasion 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

31. Decision Rules Compensatory Simple Additive Rule Weighted Additive Rule Noncompensatory The Lexicographic Rule The Elimination-by-Aspects Rule The Conjunctive Rule

32. 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

33. A Consumer’s Brand Beliefs about Computers ComputerAttribute Memory Capacity Graphics Capability Size and WeightPrice A10864 B8983 C68 5 D4378

34. Marketing Strategies Alter beliefs about the brand: psychological repositioning, e.g. 農心辛拉麵, DHL, 威滅滅蟑隊. 農心辛拉麵DHL 威滅滅蟑隊 Alter beliefs about competitor’s brands: competitive positioning, e.g. 威寶電信, 德恩奈系列牙刷. 威寶電信 德恩奈系列牙刷 Alter the important weights, e.g. 台灣啤酒, 薄酒萊, 統一陽光燕麥穀奶, PSP–1, 2. 統一陽光燕麥穀奶12 Call attention to neglected attributes, e.g. 聲寶冷氣, 永慶房屋, Online Store, KFC. 聲寶冷氣 永慶房屋Online StoreKFC Redesign the product: repositioning, e.g. Arm & Hammer, 綠油精 – 1, 2, 18 銅人行氣散.1218 銅人行氣散

35. 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。

36. 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). Compromise effect The Conjunctive Rule Cutoffs are established for each attribute.

37. A Consumer’s Brand Beliefs about Computers ComputerAttribute Memory Capacity Graphics Capability Size and WeightPrice A10864 B8983 C68 5 D4378

38. Think What factors may affect a consumer’s decision rule?

39. 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

40. Inverted Pyramid of Communications Effects 90% Awareness 70% Knowledge 40% Liking 25% Preference 20% Trial 5% Use Conative (Behavioral) Cognitive Affective

41. Case: Harley-DavidsonHarley-Davidson 1999 年推出租賃方案 目的：希望承租哈雷機車的客人在騎乘後，會 誘發其購買的欲望。 結果： 32% 的承租人在之後購買了哈雷機車。 37% 的承租人計畫在一年內購買一台哈雷機車。 多達半數的承租人花了超過 100 美元購買哈雷周邊 商品。