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

3. Agenda Information Processing Framework Exposure Attention Comprehension Retention McGuire’s Model of Ad Effectiveness Measuring effectiveness Tactical Decisions

4. Consumer Information Processing Stimuli Exposure Attention Comprehension Acceptance Retention Purchase

5. Measuring Advertising Effectiveness McGuire Model Testing Ad Effectiveness Exposu re Attentio n Comprehe nsion Yielding/ Accepta nce Purcha se Retenti on Success: p(E) p(E)·p(A) p(E)·p(A)·p(C) · p(Y)·p(R) … Failure:.8.8 x.7=.56.8 x.7 x.7=.39.8 x.7 x.7 x.6=.24.8 x.7 x.7 x.6 x.8 =.19.2 =.44 =.61 =.76 =.81

6. Gaining Exposure This occurs when there is physical proximity to a stimulus Selective exposure Consumers deliberately try to avoid our attempts to interact with them Advertising, Direct mail, Telemarketing

7. Gaining Exposure What’s a marketer to do? Make your message involving Taster’s Choice “Brewing Romance” Campaign (circa 1990) Product positioned as “tasting closest to fresh brewed” McCann-Erickson was hired to kick up the emotional connection to the brand

8. “Brewing Romance” Campaign UK Campaign quickly adopted an avid following British tabloids chronicled the series Viewers wrote in for autographs Campaign lasted for six years Sales of Gold Blend soared by 40 percent. Ended with Sharon and Tony wedding and driving happily off into the sunset The campaign was expanded to the US, Canada, Chile, Australia, New Zealand, and Japan

9. “Brewing Romance” Campaign US Campaign launched in 1991 Generated a reaction similar to the UK The debut of each new “episode” became a major media event, often premiering on network shows such as “Good Morning America.” In February 1998, Taster's Choice ran a contest. The results were announced in Soap Opera DigestSoap Opera Digest

10. Gaining Exposure What’s a marketer to do? Nontraditional approach BMW’s re-launch of the Mini Cooper in 2002 “Giving a small car big 'tude: cute enough for kids to ride, small enough to fit on top of an SUV and sexy enough to be a Playboy centerfold, the new BMW Mini launched with many guerrilla twists and turns.” Brandweek BMW assigned the new unit a paltry $40 million budget and staff just big enough to fill, well, a Mini.

11. Nontraditional Approach… BMW’s re-launch of the Mini Cooper in 2002 Kerri Martin was assigned to be the guardian of the brand’s soul. She refused to consider a traditional launch for the car. Instead she looked for novel ways to “create buzz” about the brand. Target Market: People who see themselves as risk takers, nonconformists, and adventure seekers. These individuals were not defined by their age but by their spirit. Objectives: Reach 25% brand awareness within one year, and sell 20,000 cars.

12. Non-traditional Approach… Magazine ads broke the mold Mini is the first automobile to actually win bragging rights as Playboy's Playmate of the Month in June. Ads ran biographical photos of Mini's "youth" in London, complete with cartoons on the flip-page.

13. In the six months preceding the launch, the website registered 210,000 leads. 55,000 visitors signed up to receive the e- mail newsletter Brand awareness levels went from zero to 25% in nine months, and up to 67% by June 2003. Exceeded its sales goal, with 24,590 cars sold in nine months. Results

14. Can there be too much exposure? Overexposure When your brand loses it coolness Habituation When a stimulus becomes familiar it loses it’s attention getting power Ads lose half their effectiveness after accumulating 1,000 GRPs (approx 10 exposures) Products are less attractive when everyone else owns one

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

16. Tactical Decisions Gaining Exposure Channel/Medium: The general category for message delivery broadcast (TV, radio), print (magazines, newspaper), direct mail & internet, outdoor … Vehicle: The specific message carrier The Apprentice, WSJ, COTA busses Scheduling: How is the media budget distributed? reach and frequency, breadth of coverage, seasonality

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

18. 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 directly related to the intensity of the original stimulus

19. 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.

20. 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, Sounds are noticed Appeals to our hedonic side (food & sex) are also noticed

21. Tactical Decisions Getting Attention Source: The person/organization sending the message Who: Spokesperson, Celebrity Endorser, Salesperson … Characteristics: Attractiveness, Likeability, Familiarity, Similarity, Identification, Trustworthiness, Expertise, Credibility

22. Tactical Decisions Getting Attention Message Execution: The technique or style utilized in communication Humor, Emotions, Fear Appeal, Informational, Demonstration, Testimonial, Lifestyle, Jingle … Comparative vs. Two-sided Message Elements: Features of the message Pictures versus words, color & contrast, size & isolation, novelty & motion, music

23. 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

24. Comprehension Refers to the meaning we assign to a sensory stimulus The most crucial process in CB because… What consumers perceive and remember determines their actions!

25. 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

26. 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).

27. Tactical Decisions Improving Comprehension Channel/Medium: High Involvement (print, internet) vs. Low Involvement (TV and radio) Source: Distraction and Affect Transfer Message Content: Complexity, Ambiguity Scheduling: Repetition

28. Information Processing: Sensory Short Term Long Term Stimuli Exposure Involvement Attention Memory Motivation Ability Comprehension Opportunity Acceptance Retention

29. Tactical Decisions Fostering Yielding/Acceptance Source: Credibility, Similarity & Likeability Message Execution: Stirring emotions, telling both sides of the story Scheduling: Mere exposure effects Improved liking Improved recall Improved acceptance

30. The Importance of Memory Marketers use memory-based criteria to judge the effectiveness of their efforts Ad claims – e.g. day after recall Package and brand recognition Beliefs and brand associations are indicators of “brand equity”

31. The Memory Process

32. Relationship of Memory Stores

33. Encoding & Retrieval Exposure Attention Retention Signal Strength Sensory Memory Short Term Memory Long Term Memory Incoming Information Pertinence Encoding (Rehearsal) Retrieval (Cues)

34. Facilitating Encoding Elaboration Closure Repetition & Rehearsal Jingles Generating Affect Humor (tricky) Personal Linkages Autobiographical Memories

35. Facilitating Encoding A Picture is Worth a 1000 Words Memory for faces of high school classmates was 75% correct up to 40 years after graduation Recognition rates for 600 ads! (Shepard) Time Delay 0 2 hrs 3 days 7 days 120 days % correct 98% 99% 92% 87% 58%

36. Feelings Ads can evoke feelings or emotions Hallmark, McDonalds, KodakHallmarkMcDonalds There is a bias toward retrieving positive memories which result in… More feelings during an ad More favorable attitude toward the ad and the brand

37. Facilitating Retrieval Encoding-specificity Memory is context dependent, thus memory performance is improved when contextual cues present at encoding are retrieval are the same

38. Summary Familiarity breeds liking while tedium invites argumentation and criticism Use attention well (to build your brand) once you have it, or it will be short lived Advertising is often used to set expectations which influence our experiences A brand’s message must remain the “figure” and shouldn’t be overshadowed by other elements Exposure Attention Comprehension Retention

39. Assignment Read Chapter 16