ADVERTISING: Insights from Communication and Persuasion Research July 17, 2016 Advertising 1 THE COMMUNICATION PROCESS • The first model of communication: Source July 17, 2016 Message Advertising Receiver 2 THE COMMUNICATION PROCESS • A second model of communication: Fields of Experience Sender July 17, 2016 Meaning Advertising Receiver 3 THE COMMUNICATION PROCESS • A third model of communication: Sender Encoding Message (Meaning) Decoding Receiver (Meaning) Feedback July 17, 2016 Advertising 4 INVOLVEMENT Decoding is ACTIVE • That is, it requires EFFORT • When can you expect people to spend effort? • 1. When they CARE about what you’re saying • personal relevance This is the concept of INVOLVEMENT The personal relevance of the product interest, price July 17, 2016 Advertising 5 July 17, 2016 Advertising 6 July 17, 2016 Advertising 7 Elaboration Likelihood Model • Petty & Caccioppo • Two questions: • Motivation to process? • Ability to process? • When YES to both: HIGH elaboration • Central cues • product • When NO: LOW elaboration • Peripheral cues • source or ad July 17, 2016 Advertising 8 July 17, 2016 Advertising 9 July 17, 2016 Advertising 10 Low Involvement High Involvement Foote, Cone & Belding Grid July 17, 2016 Thinking Feeling 1 2 Information Affective Thinking Feeling 3 Habit Doing Advertising 4 SelfSatisfaction Reacting 11 FCB Grid Thinking High Involvement 1 July 17, 2016 Information Thinking Car-house-furnishings-new products Model: Learn-feel-do (economic?) Possible implications Media: Long copy format Reflective vehicles Creative: Specific information Demonstration Test: Recall diagnostics Advertising 12 July 17, 2016 Advertising 13 July 17, 2016 Advertising 14 FCB Grid Feeling High Involvement 2 July 17, 2016 Affective Feeling Jewelry-cosmetics-fashion goods Model: Feel-learn -do (psychological?) Possible implications Media: Large space Image specials Creative: Executional Impact Test: Attitude change Emotional arousal Advertising 15 July 17, 2016 Advertising 16 July 17, 2016 Advertising 17 July 17, 2016 Advertising 18 FCB Grid Thinking Low Involvement 3 July 17, 2016 Habit formation Doing Food-household items Model: Do-learn-feel (responsive?) Possible implications Media: Small space ads 10-second ID’s Radio; Point of Sale Creative: Reminder Test: Sales Advertising 19 Ads 1. Salsa 2. Stamp collecting July 17, 2016 Advertising 20 FCB Grid Feeling Low Involvement 4 July 17, 2016 Self-satisfaction Reacting Cigarettes, liquor, candy Model: Do-feel-learn (social?) Possible implications Media: Billboards Newspapers Point of Sale Creative: Attention Test: Sales Advertising 21 July 17, 2016 Advertising 22 July 17, 2016 Advertising 23 PRODUCT LIFE CYCLE • Introduction • The product is promoted to create awareness. • Growth • Competitors are introduced. • Advertising spending is high to build the brand. • Maturity • Producers try to differentiate products and brands. • More promotion with a greater variety of media. • Decline • Downturn in the market. • Price-cutting • Products are withdrawn. • Profits improved by reducing marketing costs. July 17, 2016 Advertising 24 Advertising and the Product Life Cycle Pioneering Competition Retention Educate consumers Build brand equity Retain customers Encourage trial usage Position against competitors Build relationships with customers Segment market to better serve needs Capture more market share Improve quality July 17, 2016 Advertising 25 Pioneering July 17, 2016 Advertising 26 July 17, 2016 Advertising 27 July 17, 2016 Advertising 28 Competition July 17, 2016 Advertising 29 July 17, 2016 Advertising 30 July 17, 2016 Advertising 31 Retention July 17, 2016 Advertising 32 July 17, 2016 Advertising 33 July 17, 2016 Advertising 34 Problems with the Product Life Cycle • Very few products follow so strictly. • Not all products go through each stage. • The length of each stage varies enormously • It is not easy to tell which stage the product is in. • Marketers can change the stage, for example from maturity to decline, by price-cutting. • Product Life Cycle is like other tools. • Use it to inform your decisions. July 17, 2016 Advertising 35 BMW video July 17, 2016 Advertising 36 Quote of the Day If your advertising goes unnoticed, everything else is academic. • William Bernbach (DDB) July 17, 2016 Advertising 37