1. Consumer Behavior and Promotion Strategy
Chapter 17
Consumer Behavior and Promotion Strategy

2. Goal of Promotion
To communicate product related information to the target market with a view to persuading them.
To maintain a differential advantage for the product over its competitors.

3. Types of Promotions Advertising Sales Promotions Personal Selling
Paid, non-personal (more reach, less customizable, less persuasive)
Sales Promotions
Paid, non-personal (more reach, effective in modifying behavior, little information value)
Personal Selling
Paid, personal (less reach, more customizable, persuasiveness varies)
Publicity
Non-paid, mass (great reach, not controllable, very persuasive)

4. Goals of Communication ~ or ~ Promotion Strategy
Create need
Increase brand awareness
Increase brand attitude
Influence intention to purchase
Influence purchase-related behaviors

5. A general model of the communication process
Feedback
Trans-mission via media
Action
Source
Message
Receiver

6. A general model of the communication process - Relevant agents and Stimuli
Feedback
Trans-mission via media
Source
Message
Receiver
Action
TV, magazines
Direct mail
In-home
Newspaper articles
Manufacturer
Ad agency
Salesperson
Promotion manager
Advertise-ment
Publicity
Personal selling
Consumer
Consumer

7. A general model of the communication process - Key actions for Promotions
Feedback
Trans-mission via media
Source
Message
Receiver
Action
Manage promotion strategy
Create promotion communi-cation
Transmit promotion communi-cation
Interpret promotion communi-cation
Take action

8. A general model of the communication process - Relevant agents and Stimuli
Feedback
Trans-mission via media
Source
Message
Receiver
Action
Analyze consumer/ product relationship
Implement promotion strategy
Evaluate promotion strategy
Exposure to message
Attend to message
Compre-hend promotion
Form beliefs
Design promotion to commun-icate meanings about product attributes
Purchase product
Store contact
Word-of-mouth communi-cation
Select medium or method to expose message to appropriate audience

9. Central Route to Persuasion
Exposure to persuasive communication
Persuasion
Product beliefs
Brand attitude
Purchase intent
Higher involvement with product or message
Comprehension:
Deeper thoughts about product
More elaboration
Attention:
Focus on “central” product-related info.

10. Peripheral Route to Persuasion
Exposure to persuasive communication
Persuasion
Non-product beliefs
Ad attitude
Brand attitude
Purchase intent
Lower involvement with product or message
Comprehension:
Shallow thoughts about product
Elaboration on non-product elements of message
Attention:
Focus on “peripheral” product-related info.

11. Grid for Analyzing Consumer / Product Relationships
Higher
Insecticide
Greeting card
Rum
IRA account
Ice cream bar
INVOLVEMENT
35mm camera
Car
Car battery
Wallpaper
Refrigerator
Lower
Perfume
Think Products Feel Products

12. Analysis of Consumer Vulnerability
Like
Neutral
Dislike
Buy regularly
Loyal to our brand
Regular customers - vulnerable to competitors
Buy occasionally
Occasional customers who are vulnerable to competitors’ promotions
Never buy
Customers of other brands are vulnerable to promotion
Forget it!!

13. The MECCAS model Aspects of creative strategy
Executional framework
How the ad communicates the advertising strategy
All details of the finished ad, including models, setting, props, script and the style and theme of the ad
Aspects of creative strategy
Driving force: The value orientation of the ad. The end goal implied in the ad, but seldom stated explicitly
Leverage point: The hook that connects the tangible attributes to the intangible values of the driving force
Message elements: The product or brand attributes communi-cated in the ad
Consumer benefits: The key benefit consequences communicated in the ad
Elements of advertising strategy
Relevant levels of a means-end chain
Terminal or instrumental value
Psychosocial consequences
Functional consequences
Concrete or abstract attributes