Understanding the Consumer and How Advertising Works Humbling Revelations About Consumers Brands and the consumers’ loyalty to them are not nearly as important as they are to marketers Consumer needs are neither logical or clearly defined Humbling Revelations About Consumers …nor are they as complex in product decision-making as marketers would hope In general, consumer decisions occur at a low-level of cognitive processing Product choices are managed at the ‘good enough’ level Humbling Revelations About Consumers ‘Brand loyalty’ is a notion marketers aspire to, but that rarely exists Evoked set loyalty Outlet loyalty Humbling Revelations About Consumers Advertising’s effectiveness is generally unpredictable due to The need to economize consumer decisions The state of the market The brand’s position State of play of the brand/category at a given time Other elements of the marketing mix The New Rules for Engagement The Audience Is Not the Audience Consumers may not be using television media as an information source, but as a means for “vegging” As an advertising audience, they are largely inattentive – not watching, not listening The Consumer Is Not Engaged Consumption is passive and centered in the moment of purchase or use People have the energy to be constantly engaged with product marketing, packaging, choice, competition, or advertising The Category Isn’t “The most powerful brands have an emotional role that transcends their historical category usage.” Starbucks culture, community Wonderbra confidence Disney World childhood dreams The Category Isn’t Marketers may, in fact, be limiting their own potential by ‘thinking in a box’ that limits a product to a specific function or use So, Why Use Advertising? Used over time, it increases brand familiarity, attention builds brand associations (emotive and cognitive) conveys information about the brand Why Use Advertising? improves accuracy of brand knowledge acts as a forum for advancing brand perspectives” reinforce brand choice Advertising is an investment in Brand identity Brand prominence Brand salience Brand resonance Advertising does not work in a vacuum but it does add value to a product over time Communication’s Other Role Marketers have to go beyond just the idea of communication toward an idea of engagement “seizing the audience’s imagination…” Must look for relevance within or outside of the specific category The Role for Advertising Research …to worry less about what advertising does and more about what people do with advertising