1. Information Processing: Part I MKT 750 Dr. West

2. Agenda Evaluating a Marketing Communications Campaign Information Processing Framework Exposure Attention Comprehension

3. Evaluating a Communications Campaign

4. Marketing Communication Vehicles Customized Salesperson Web Database Telemarketing E-mail Direct Mail Media Radio Catalogs Newspapers Magazines Infomercials Television Mass Broadcast/ Two-way w/ Instantaneous One-Way Time Lag Interaction

5. Nontraditional Marketing Product Placement BMW Z3 Roadster Event Sponsorship Red Bull Atmospherics Starbucks Grassroots

6. Marketing Communications Goals/Objectives:Outcomes: Affect behaviorIncrease Sales Start with your customer/prospectCreate Value Use any and all forms of contact to get your message across Achieve Ubiquity Achieve synergyEnhance efficiency Build relationshipsROI

7. 6 Key Steps For Success Market Identify your target audience Understand perceptions and key benefits sought Consider the buying decision process Mission Set goals: sales, profit, share Message Develop compelling content

8. 6 Key Steps For Success Media Evaluate a full spectrum of channels & vehicles Money Establish a budget suited to your goals Measurement Test integration (not isolation) Monitor effects

9. Evaluating an Advertising Campaign Who is the target market and how will they respond? How involved is the consumer? What is the nature of the purchase? Functional/Utilitarian vs Feeling/Hedonic First-time purchase vs Repeat purchase Use the FCB Grid

10. Evaluating an Advertising Campaign What is the objective of the campaign? AIDA & Hierarchy of Effects Persuasion/Changing Attitudes What are indicators of success or failure?

11. Evaluating an Advertising Campaign Were the right tactical decisions made? Does the medium fit the message? Involvement and interactivity Affect How well is the vehicle suited to the target market? Will the target respond favorably to the source? Is the source credible, likeable, attractive, familiar?

12. Evaluating an Advertising Campaign Were the right tactical decisions made? What are the strengths and weaknesses of the ad execution that will facilitate: Gaining attention? Comprehension? Acceptance of the message? Retention?

13. The Persuaders Why are marketers feeling more pressure than ever to change and innovate? How is the industry responding to these pressures? In a highly competitive, product-saturated marketplace, a new product needs to offer something that goes beyond the brand. What are companies doing to meet this challenge?

14. The Persuaders As consumers grow more cynical about marketing claims, researchers have to refine their methods to reinforce their brand. How can a company create “loyalty beyond reason”? What new ways do you think marketers will come up with to grab the attention of consumers?

15. Back to the book… Consumer Information Processing

16. Stimuli Exposure Attention Comprehension Acceptance Retention Purchase

17. Gaining Exposure This occurs when there is physical proximity to a stimulus Vehicles Radio, TV, newspapers, magazines, internet Selective exposure Consumers deliberately try to avoid our attempts to interact with them Advertising, Direct mail, Telemarketing

18. Gaining Exposure What’s a marketer to do? Make your message involving “Brewing romance” campaign Product exposure: Distribution & Visibility Nontraditional vehicles: Elevators, Airports, Buses BMW Z3 Campaign

19. Overexposure Habituation When a stimulus becomes familiar it loses it’s attention getting power Ads lose half their effectiveness after accumulating 1,000 GRPs Products are less attractive when everyone else owns one

20. Overexposure Avoid overexposure through Limited availability (scarcity) Harry Potter Use different ad executions carrying the same message Absolut Vodka

21. Turning Exposure Into Attention Attention can occur when there is activation of one or more of our five senses. Each of our sensory receptors has an activation threshold Weber’s Law: JND The amount of change necessary to be noticed is systematically related to the intensity of the original stimulus

22. Consumer Information Processing Stimuli Exposure Attention Comprehension Acceptance Retention Purchase Pre-attentive Processing Pre-attentive Processing

23. Voluntary Attention This refers to the conscious allocation of processing capacity to a stimulus. Selective Attention Occurs when a stimulus is in line with current goals or needs Such attention is selective due to the plethora of messages we are exposed to.

24. Selective Attention This ad is likely to attract mothers with small children and it reminds them of their special dental needs.

25. Involuntary Attention Occurs due to a built in “novelty monitoring” mechanism Evolutionary hypothesis – survival was best insured by attending to unusual events in the environment Triggers: Size, Color, Contrast, Motion are noticed Appeals to our hedonic side (food & sex) are also noticed

26. Examples: Novelty

27. Examples: Color

29. Examples: Contrast

30. Examples - Motion

32. Examples: Size

33. Examples: Isolation

34. Is Getting Attention Enough? Attention may be short lived You have to use attention well once you have it Attention should be used in the service of building the brand, or attaining other strategic goals

35. Comprehension Refers to the meaning we assign to a sensory stimulus The most crucial process in CB because… What consumers perceive determines their actions! Perceptions are a reflection of our attitudes and preferences

36. Comprehension What is perceived is not necessarily truth Colas - 70% confuse Pepsi and Coke Beer & Wine - blind taste test results diverge from labeled Coffee - over 50% couldn’t distinguish best from worst, or regular from instant (Consumer Reports)

37. Comprehension Perceptions are often the heart of marketing issues/problems. Olay – P&G faced issues with “Oil of Olay” being perceived as oily and old

38. Comprehension Gestalt Principles: Closure – we have a tendency to complete a figure, or fill in the gaps Processing effort – the effort devoted to interpreting a stimulus leads to better comprehension and memory Figure/Ground – perceptions differ depending upon what the individual sees as figure (dominant) versus ground (background).

39. Illustrations of Closure

41. Assignment Read Chapters 8 - 9 (pp 278 - 298, 303 - 304, 316 - 330, 333 - 337) Prepare for Case Launching the BMW Z3 Roadster