1. Chapter 5
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.
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 Economy
Price 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 (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
Effectiveness Test
Persuasion Process
Exposure/presentation
Circulation reach
Circulation reach
Exposure/presentation
Attention
Listener, reader,
viewer recognition
Listener, reader,
viewer recognition
Attention
Relation to text This slide relates to material on p.147 and Figure 5-4 of the text.
Summary Overview This slide shows that there are various stages of the persuasion process that marketers want to attain. Each stage can be measured, providing the advertiser with feedback regarding the effectiveness of various strategies designed to move the consumer closer to purchase. The types of effectiveness tests that can be used to measure each step of the persuasion process are included on this slide.
Use of this slide This slide can be used to demonstrate the various methods of obtaining feedback given each stage of the persuasion process. There are a variety of measures that are appropriate to use depending on where the customer is in the persuasion process and the type of communications being used.
Comprehension
Recall, checklists
Recall, checklists
Comprehension
Message acceptance/
yielding
Brand attitudes,
purchase intent
Brand attitudes,
purchase intent
Message acceptance/
yielding
Retention
Recall over time
Recall over time
Retention
Inventory POP consumer panel
Scanner data
Purchase behavior

17. Examples of Exposure/Presentation

18. Hierarchy of effects model Information Processing
Models of the Response Process
Stages
Cognitive
Affective
Behavioral
Models
AIDA
model
Attention
Interest
Desire
Action
Hierarchy of effects model
Awareness
Knowledge
Linking
Preference
Conviction
Purchase
Innovation adoption
Evaluation
Trial
Adoption
Information Processing
Presentation
Comprehension
Yielding
Retention
Behavior

19. 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.

20. 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,
It is useful for the measurement of communication effect.

21. 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)

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

23. Ads for Complex Buying Behavior

24. 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.

25. Ads for Dissonance-Reducing Buying Behavior

26. Ads for Low-Involvement Behavior

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

28. Involvement Concept Possible results of involvement
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
Involvement
With advertisements
With products
With purchase decisions

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

30. 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

31. A Consumer’s Brand Beliefs about Computers
Attribute
Memory Capacity
Graphics Capability
Size and Weight
Price A 10 8 6 4 B 9 3 C 5 D 7

32. 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.

33. 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。

34. 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.

35. A Consumer’s Brand Beliefs about Computers
Attribute
Memory Capacity
Graphics Capability
Size and Weight
Price A 10 8 6 4 B 9 3 C 5 D 7

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

37. 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

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