Marketing Communication 2019-2020
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Chapter 1 Integrated marketing communications ........................................................................................ 3
1. Communications mix ............................................................................................................................. 4
2. Integration of marketing communications............................................................................................ 6
3. Integrating marketing communications across cultures ....................................................................... 8
Chapter 2: planning ..................................................................................................................................... 10
1. Some key concepts .............................................................................................................................. 10
2. The integrated communications plan ................................................................................................. 10
3. Situation analysis ................................................................................................................................. 11
4. Target groups ...................................................................................................................................... 12
Chapter 3: objectives................................................................................................................................... 15
1. Marketing communications objectives ............................................................................................... 15
2. Marketing communications objectives: Dagmar model ..................................................................... 16
3. SMART objectives ................................................................................................................................ 19
4. Marketing communications objectives: stages in the Product life cycle ....................................... 19
Chapter 4: budgets ...................................................................................................................................... 21
1. Some key concepts .............................................................................................................................. 21
Communication budgeting methods....................................................................................................... 21
Chapter 5: How marketing communications work ..................................................................................... 24
1. Some key concepts .............................................................................................................................. 24
2. Dual process theories of persuasion ................................................................................................... 25
3. The elaboration likelihood model ....................................................................................................... 26
4. Recent Academic Research ................................................................................................................. 32
5. Exercise : The Elaboration Likelihood Model ...................................................................................... 34
Chapter 6: advertising ................................................................................................................................. 34
1. Some key concepts .............................................................................................................................. 34
2. Function of advertising ........................................................................................................................ 36
3. Types of advertising............................................................................................................................. 37
4. Campaign development .................................................................................................................. 37
5. Message variables ........................................................................................................................... 41
6. Source variables .................................................................................................................................. 51
7. Advertising in a cross-cultural context ................................................................................................ 54
8. Causes and consequences of irritation evoked by advertising ........................................................... 59
9. How to measure reactions to advertising? ......................................................................................... 59
Chapter 7: mediaplanning ........................................................................................................................... 64
1. Some key concepts .............................................................................................................................. 64
2. Why engage in media planning? ......................................................................................................... 64
3. Which advertising media exist?........................................................................................................... 64
4. How to select media? .......................................................................................................................... 65
5. Media Context ..................................................................................................................................... 71
Chapter 8 Event marketing & sponsorship ................................................................................................. 72
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1. Event marketing .................................................................................................................................. 72
2. sponsorship ......................................................................................................................................... 75
Chapter 9 Publicity and Public relations...................................................................................................... 82
1. Publicity and PR ................................................................................................................................... 82
2. strengths & weaknesses ...................................................................................................................... 83
3. Internal PR ........................................................................................................................................... 84
4. External PR........................................................................................................................................... 84
5. Marketing ............................................................................................................................................ 86
6. How to measure effectiveness of PR? ................................................................................................. 86
Chapter 10 Brand activation – Consumer promotions ............................................................................... 87
1. Brand activation .................................................................................................................................. 87
2. Sales Promotions ................................................................................................................................. 87
3. POP ...................................................................................................................................................... 92
4. brand experience................................................................................................................................. 94
Chapter 11 Ethical issues in marketing communications ............................................................................ 97
1. Ethical decision-making models and rules .......................................................................................... 97
2. Unethical marketing communication practices .................................................................................. 98
3. Regulation of marketing communication practices .......................................................................... 102
Chapter 12 digital communication & social media: part I ......................................................................... 105
1. introduction ....................................................................................................................................... 105
2. Relevance of digital marketing .......................................................................................................... 106
3. added value of online communication & digital marketing .............................................................. 129
4. Advertising in digital & mobile gaming ............................................................................................. 142
Chapter 12 Digital Communication Part 2................................................................................................. 144
1. digital communication channel: social media ................................................................................... 146
2. Sending information: how to go viral? .............................................................................................. 151
3. receiving information ........................................................................................................................ 164
4. How to respond to information?....................................................................................................... 186
Possible exam questions ........................................................................................................................... 187
Guest lectures............................................................................................................................................ 189
Guest lecture 1 – Managing partner – Strategy Director at Leo Burnett Brussels................................ 189
Guest lecture 2 – Bottled water ............................................................................................................ 191
Guest lecture 3 – Bake & Company ....................................................................................................... 191
Guest lecture 4 – Stille bliksem ............................................................................................................. 194
Guest lecture 5 – Digital communication .............................................................................................. 196
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Chapter 1 Integrated marketing communications
By the end of this chapter you know….
- Where to situate marketing communications in the marketing mix
- Which instruments are part of the communication mix
- What integrated marketing communications means
- What factors lead to integrated communications and what the difficulties are
- What the issues are when communicating in different cultures.
What is marketing?
Instruments of the marketing mix
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1. Communications mix
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Marketing communications
o = The means by which firms attempt to inform, persuade, incite, and remind consumers –
directly or indirectly - about the brands they sell. (Keller, 2001)
Advertising
o Media
o Place
o Direct response and interactive
o Point-of-Purchase
Promotions
o Consumer
o Trade
Event marketing & sponsorship
Publicity and public relations
Personal selling
Advertising
(media & place)
Direct Response
Advertising
Interactive
Advertising
POP promotions
(Consumer & Trade)
Event Marketing
Any form of paid communication by an identified sponsor ((company, non-profit
organization or individual) to inform and/or persuade target audiences about an
organization, product service or idea
Promotional method in which a prospective customer is urged to respond
immediately and directly to the advertiser.
Promotional techniques that include an element of feedback from those to whom the
advertisements are directed.
Communications at the point of purchase or point of sales.
POP = Point of Purchase Promotions
Experiential marketing of a brand, service, or product through promotional events.
Sponsorship
The sponsor provides funds, goods, services, and/or know-how.
Publicity
Type of promotion that relies on public relations effect of a news story carried usually
free by mass media.
Communication to creating and maintain goodwill of an organization's various publics
(customers, employees, investors, suppliers, etc.).
The oral presentation and/or demonstration of one or more salespersons aimed at
selling the products or services of a company.
Public Relations
Personal Selling
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Experiential marketing
- The art of creating an experience where the result is an emotional connection to a person, brand,
product or idea.
- What is new: creating a connection through a designed emotive experience.
- E.g. flagship stores, Nivea doll
Brand activation
- Integration of all available communication means in a creative platform in order to activate
consumers by stimulating interest and trial, securing brand loyalty
- Build brands through interaction with target audiences by bringing a brand to life through creating
brand experiences (cfr experiential marketing)
- How to get people talking about your brand in a way that it translates into positive long-lasting
action
Personal versus mass communications
Image communications
- Brand awareness
- Brand preference
- Satisfaction
- Loyalty
Above the line
Action communications
- Buying behaviour
- Stimulate purchases
Below the line
Call to action must be easy
Conversion rate: actions/reach
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2. Integration of marketing communications
Case: HÄAgen Dasz
- Introduced on the market by Reuben and Rose Mattus in 1960
- Target group: young adults
- Brand name: meaningless but sounds exotic – Danish
- Brand image: premium, innovative, sophisticated, luxury
- Product
o High quality: “the finest ice cream using the purest ingredients”
o Unique flavours you cannot find elsewhere
- Packaging
o Luxury
o Danish
- Price: high
- Availability: originally only at gourmet shops, then extended to company-owned and franchised
shops. Also at specialty stores and some supermarkets (separate freezers)
- Promotion:
o High end promotions, events
o Advertising sophisticated atmosphere
o PR “10 years of passionate support for these extraordinary pollinators”
2.1 Why?
1) The fragmentation of traditional advertising media (TV and advertising)
2) The emergence of new, non-traditional media, promotion, and other communication alternatives.
3) Enhanced communication by product parity: MC can create points-of-difference
“An integrated marketing communications program involves the development, implementation, and
evaluation of marketing communication programs using multiple communication options where the
design and execution of any communication option reflects the nature and content of other
communication options that also makes up the communication program” (Keller, 2001)
Key Drivers of integrated communications
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2.2 How?
The integrated communication setting
Strategic integration of departments responsible for communications
Barriers to integrated communications
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Stages in IMC development
Two important principles:
- Consistency: all marketing instruments have to work in the same direction, and not conflict with
each other.
- Synergy: marketing mix instruments have to be designed in such a way that the effects of the tools
are mutually reinforcing. (1 + 1 = 3)
2.3 How to create synergies in marketing communication?
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Sales team have easier job if their product or company is well-known as a result of advertising or
sponsorship
In-store or point-of-purchase communications that are consistent with advertising are much more
effective.
Direct mailing is more effective when prepared by an awareness-increasing advertising campaign
and supported by a sales promotion campaign
A promotional campaign that is supported by advertising is generally more successful
Public relations, sponsorship and advertising can have synergetic effects on company image building
Websites will be more frequently visited when announced in mass media advertising.
Advertisers for a trade show will be more effective if an incentive to visit the stand is offered.
Some good examples IMC
http://www.adforum.com/euro-effie/2015#/campaign_6734427/travel-surf/34514549/travel-surf
http://www.adforum.com/euro-effie/2015#/campaign_6722353/love-in-the-fridge/34514196/love-inthe-fridge-case-video
3. Integrating marketing communications across cultures
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International marketing communications not always similar to domestic communications
o Cultural and legal differences
o Message strategy & creative strategy
o Self-reference criterion (SRC)
Hofstede: 5 dimensions
http://geert-hofstede.com/countries.html
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Examples of cross cultural blunders
- Standardisation: campaign that is run in different countries, using the same concept, setting, theme,
appeal and message with the possible exception of translations.
- Adaptation: elements of the communications strategy are adapted to local circumstances.
“Think global, act local”
Example Unilever glocalisation
- Does not change product formula, packaging or product range
- Changes brand name, advertising, PR, event marketing
Now you know….
- Where to situate marketing communications in the marketing mix
- Which instruments are part of the communication mix
- What integrated marketing communications means
- What factors lead to integrated communications and what the difficulties are
- What the issues are when communicating in different cultures
Example exam questions
Consistency is when
a) All the marketing mix instruments are designed in such a way that the effects of the tools are
mutually reinforcing. (= synergy)
b) All marketing instruments work in the same direction and not conflict with each other.
c) Answers a) and b).
d) None of the above answers.
Which statement is correct?
a) Below the line communications are targeted at a selective group. (not just selective groups)
b) Action communications are used solely to stimulate purchases.
(not solely)
c) Personal communications evoke high attention levels
d) Theme communications are also known as below the line communications. (above the line)
What are the main concerns in a cross-cultural communications context? (SRC,…)
Which of the following is an example of the self-reference mistake?
a) Assuming that status and prestige are important for other countries because it is important in
your own country.
b) Buying Levi’s jeans because you want to be perceived as a hip youngster.
c) Buying Levi’s jeans because you see yourself as a hip youngster.
d) None of the foregoing illustrates the self-reference mistake.
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Chapter 2: planning
By the end of this chapter you know…
- What the first four steps of the communication plan are
- How to segment, target and position
1. Some key concepts
Segmenting means identifying homogenous sub-groups that react in the same way to marketing stimuli
and in a different way than members of other segments.
Targeting is the selection of a number of target groups to focus on, based on their attractiveness and for
which the company has relative strengths.
Positioning is an attempt to create and maintain a unique representation of the brand in customer's
mind, a representation that is expected to stimulate choice of that brand
Marketing management is finding and sustaining a unique and defendable image or position for a
product.
A Unique Selling Proposition (USP) is a clearly articulated benefit that differentiates a product or service
from other similar products or services.
An emotional Selling Proposition (ESP) is a unique association with a product or service that evokes an
emotional response
2. The integrated communications plan
An integrated communications plan specifies which tools of the marketing communication mix a marketer
will use in an upcoming marketing communication activity to a target group. An integrated marketing
communications plan has to be consistent with overall marketing objectives, targeted at the desired
market and reflects the defined positioning strategy. Since marketing communications are part of a
broader strategic marketing plan, a first step of the marketing communication plan is to analyse the
marketing communication environment and assess where the marketing communication activity fits into
the marketing strategy (De Pelsemacker et al., 2018). This first step gives an idea why a communication
effort is needed and provides input for the selection of target group(s) and objectives of the marketing
communication effort. When a decision is made on who the communication is targeted to and what the
goal of the communication effort is, what the basic message is and which creative strategy will be used, a
selection has to be made between specific instruments, techniques, channels and media. The specific
communication tools or instruments that can be used are discussed more in detail in chapter 1, section
2.1.1 through 2.1.5. (i.e. Advertising, promotions, event marketing & sponsorship, publicity and public
relations and personal selling). Several techniques exist for each tool. For example, advertising can use a
humorous or fear appeal as a technique or sponsorship can use sport sponsorship or cultural sponsorship
as a specific technique. More details on the different techniques that can be used for each tool can be
found in the chapters detailing these techniques. Different media exist for particular channels. For example
advertising can be aired on television or radio, printed in a magazine or newspaper or published on the
web. Each of these different media can have different channels (e.g. different TV channels, radio channels,
magazines etc). On the basis of an integrated communications plan, a budget and timing can be established
(De Pelsemacker et al., 2018). A final step of the marketing communications plan consists of testing the
effectiveness of the communication effort.
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3. Situation analysis
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Situation analysis = A comprehensive assessment of
o Products and brands to be communicated
o Markets
o Competitors
o Macro environment
SWOT – internal (strengths/weaknesses of company and brand)- external analysis (opportunities and
threats in the market place).
Communications audit = All forms of internal and external communications are studied to assess
their consistency with overal strategy and their internal consistency
o Internal analysis and target group/audience analysis
o Vertical and/or horizontal analysis
Competitor communications strategy research
Example communications audit
Brand A
Brand B
Corporate
TV advertising
Magazine advertising
Online advertising
Cinema advertising
POP advertising
Sponsorhip
Promotions
Publicity
PR
Events
A situation analysis is a collection of methods used to analyse an organization's internal and external
environment to understand the organization's capabilities, customers, and business environment (e.g.
competitors, market). It basically describes what a company is doing and what competitors and customers
are doing and gives a solid base on which the communication strategy can be built (De Pelsemacker et al.,
2018). A situation analysis includes an investigation of the strengths and weaknesses of products and
brands to be communicated as well as the USP/ESP and other arguments that can be used to convince the
target group. It can describe the mission and culture of the company, the resources, organization structure
and other company characteristics that are relevant for setting up a marketing communication strategy. A
description of the place in the industry (market size, market shares, growth, image, …), segments,
consumer behavior etc is necessary before communication managers can set up a communication
strategy. It is important to know which communication strategy competitors set out and what their
strengths and weaknesses are (De Pelsmacker et al., 2018). A SWOT internal (strengths/weaknesses of
company and brand) and external analysis (opportunities and threats in the market place) can be a useful
instrument. Finally, investigating the political, sociological, economic and legal situation can give an
indication which communication strategy can be set up.
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In a communications audit, all forms of internal and external communications are listed and analysed on
their consistency with overall strategy and their internal consistency (De Pelsmacker et al., 2018). An
internal analysis shows which communication tools are used within a company while the impact of these
communication tools on a target group is checked through an audience analysis . Consistency off all tools
and instruments communicating a brand can be checked with a vertical analysis while consistency in
specific media can be analysed through a horizontal analysis. A competitor communications strategy
research gives input for the selection of a target group and positioning strategies.
4. Target groups
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Segmenting = Identify homogenous sub-groups that react in the same way to marketing stimuli and
in a different way than members of other segments
Targeting = Selection of a number of target groups to focus on, based on their attractiveness and for
which the company has relative strengths
Positioning = The way a product is perceived by the target group on the important attributes; this
position should always be claimed and supported in the communications strategy
Marketing management = Finding and sustaining a unique and defendable image or position for a
product
4.1 Target groups : How to select them?
To select a target market, the market first needs to be divided into different segments. Each segment has
different characteristics, needs and different ways in which they want to satisfy their needs. Once
segmentation criteria and segment profiles are defined, an assessment can be made of the attractiveness
of segments.
1. Define segmentation criteria
2. Define segment profiles
3. Assess attractiveness of segments (attainable, large enough, different, measurable)
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Size and growth of the segments (Current turnover/potential growth/profitability)
Structural attractiveness (Porter’s model)
Objectives and budgets of a company
Stability of market segments
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4.2 Target groups: Targeting strategies
A company can choose to concentration on one segment and hence produce one product that is sold to
one particular market segment. Selective specialization means that different products are offered to
different segments, so that product 1 is for example offered to segment 1 while product 2 is offered to
segment 2. A company can focus on producing one product that is offered to several segments (i.e. Product
specialization), make several products for one market (Market specialization) or offer several products to
the reach all interesting segments (i.e. Full market coverage)
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Concentration on one segment
Selective specialisation
Product specialisation
Market specialisation
Full market coverage
4.3 Target groups : What is the desired unique position in their mind?
Understand how to appeal to the specific target group
- What position, if any, do we already have in our customer’s or prospect’s mind?
- What position do we want? How are we going to position ourselves?
Example perceptual map
Positioning strategies
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Example: Obama’s campaign to millenials
- Consistent message :
o “Every person can make a difference”
o Talks about ending war, improving education, the environment
- Niche marketing
o Spoke through website (interaction), My.barackobama.com
o Opportunity to customize, personalize the site (tagging, discussion boards, photo uploads
etc)
o Instagram, facebook & pinterest
o Celebrity support
4.4 Target groups : A good USP/ESP?
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Focus on one or more USP/ESP’s? -> depends on competition (e.g. Volvo, safety + durable)
A good USP/ ESP convinces the consumer:
o In line with values/needs/ID of target group:
o Differentiates the brand from the competition
o Difficult to copy (cool vs. cheap)
o Easy to communicate
o Credible
o Payable
To appeal to a specific target group a communication manager has to decide which unique position the
product or service needs to have in the mind of the consumer. By looking at the present and the desired
position, a decision can be made on which positioning strategy is optimal. Brand positioning is an attempt
to create and maintain a unique representation of the brand in customer's mind, a representation that is
expected to stimulate choice of that brand (Rossiter & Bellman, 2005). Positioning is the way a product is
perceived by the target group on the important attributes. Positioning is the base for developing and
increasing the required knowledge and perceptions of the customers. Brand positioning involves
identifying and determining points of similarity and difference to ascertain the right brand identity and to
create a proper brand image.
Brand positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy
by explaining the brand details, the uniqueness of brand and it’s similarity with the competitive brands, as
well as the reasons for buying and using that specific brand. It is the single feature that sets a brand apart
from its competitors. Developing a successful positioning strategy is not easy. Positioning products in a
complex market can be one of a company's most
difficult decisions (Gwin & Gwin, 2003). A product is best positioned on the characteristics that makes a
product or brand special for the target market (De Pelsemacker et al., 2018). it is unique and distinctive
and differentiates the brand from the competition. It should be significant and encouraging for customers
of the target market. A good brand positioning convinces consumers to buy or use product implying that
the problems and motives of the target group need to be understood. A good brand positioning starts
from the target customers’ preferences and aspirations and does not confuse consumers. A perceptual
map or a visual representation of the perceptions of customers or potential customers about specific
attributes of an organization, brand, product, service, or idea. (cfr Buying Behavior Course) can help to
identify a good positioning. A good positioning can focus on one or more USP/ESP’s depending on the
competition, the target group, the specific communication objectives and general marketing strategy of
the company. A good positioning is sustainable meaning that it can delivered constantly across all points
of contact with the consumer. It is easy to communicate, credible, payable and difficult to copy. It helps
an organization achieve its financial goals.
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Several positioning strategies (e.g. product attributes, product class, product user, …) can be used. Fuchs
and Diamantopoulos (2010) show that benefit‐based positioning and user positioning generally
outperform feature‐based positioning strategies. .
Underpositioning is disadvantageous to a brand or product because marketers do not position it strongly
enough. Hence, consumers do not associate the brand/product with a clear benefit or competitive edge
so that consumers know what exactly sets it apart from other competitors. Therefore, consumers may not
have a strong connection with a brand and instead buy products from the competition because they don’t
know what advantages it will provide them. Overpositioning can happen when there is too much focus on
position, ultimately giving the audience a too narrow depiction of the product. This mistake can ultimately
alienate consumers from the product, creating a narrow group of customers that can actually identify with
it. If the target audience is too small it limits potential consumers of the product. A confused positioning
happens when marketers either change their position too often or has benefits that contradict each other
that an audience becomes confused of what the product actually offers.
Chapter 3: objectives
1. Marketing communications objectives
Marketing communication objectives give an indication of what a company wants to achieve through its
communication efforts. The specific objective(s) that is/are defined for a specific campaign determine(s)
the choice of the communications and media mix, influences message and strategy development,
influences budgeting and determines whether a communication campaign has been effective. Every
employee from PR manager to media planner or buyer needs to be aware of the communications objective
and all phases of the marketing communications plan must be built on the objective(s). Specifying
marketing communications objectives also enhance measurability of the effectiveness of a
communications campaign. An effective campaign is a campaign that reaches its objectives (De
Pelsemacker et al., 2018).
Marketing communications objectives can be divided into three categories: reach goals, process goals and
effectiveness goals (De Pelsemacker et al., 2018). Reach goals indicate which target groups are set out to
be reached while process goals are conditions that should be established before any communication can
be effective (De Pelsemacker et al., 2018). For example, target groups should give some attention to a
communication message, and process the message in order to be effective. Reach goals assure sufficient
exposure, process goals ensure enough processing (De Pelsemacker et al., 2018). Effectiveness goals
define the outcomes of a communication campaign or the effect of the whole campaign on the brand or
the organization.
Outcomes of a communication campaign can be defined in terms of consumer responses. Cognitive
consumer responses are beliefs and thoughts about brands, products and services that consumers can
generate in response to a marketing communication. Possible cognitive responses are brand awareness,
brand recall or recognition, product knowledge, attitudes and preferences. Affective consumer responses
are various more or less transient emotions and moods that can occur as a function of communication
exposure and differ in valence (i.e. positive and negative) and intensity (i.e. arousal). Examples are warmth,
irritation, fear, pride, sadness or anger. Behavioural consumer responses include the intention and actual
behaviour in response to a communication such as buying a product, choosing a brand, product trial, brand
switching and discarding a product.
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Determines the choice of the communications and media mix
o Influences message and strategy development
o Influences budgeting
o Influence effectiveness research
A good set of communications goals should have a number of characteristics:
o Fit in the overall company and marketing goals
o Be relevant to identified problems and cope with threats or build on opportunities
o Be targeted to different target audiences
o Be quantified
o Be comprehensive and motivating
o Be timed to enable specific scheduling
o Be translated into sub-goals when necessary
2. Marketing communications objectives: Dagmar model
The DAGMAR model (Defining Advertising Goals for Measured
Advertising Results, Colley, 1961) is a model defining effectiveness
objectives that is frequently used. It implies that consumers go through
phases when deciding to buy a product in which the each phase is a
necessary step to go through the next phase. For example, a consumer
who buys a product is aware that the brand exists and has some
knowledge about this brand, he or she has a positive attitude and
purchase intention towards the brand and knows that there are no
barriers to buy the brand. A marketing communication campaign
guides consumers through these different phases of awareness,
comprehension, conviction and action by generating awareness of the
brand or product, increasing comprehension of the product or brand,
its features, benefits and what it will do for the customer, convincing
consumers that they need the product and persuade consumers to take
action and buy it. A marketer selects the most appropriate objective
from the DAGMAR model based on the situation analysis and brand
positioning.
A. category wants and needs
First of all, a brand should fit within a specific category want or need (i.e. the existence of one or more of
these buying motives and the perception of the product category as a good means of meeting these
motives). In case of frequently bought products, category needs are already present but for innovation or
infrequently used, products, category need can be used as a primary communications objective
-
Category wants and needs: “existence of one or more of these buying motives and the perception of
the product category as a good means of meeting these motives.”
Using category need as a primary communications objective is a must for innovations.
Creating category awareness is also an appropriate goal when non-category users are addressed.
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B. Brand awareness
Brand awareness is the association of some physical characteristics such as a brand name, logo, package,
etc. with a category need. Awareness is the stage where advertising can raise audience awareness on
specific products, brands and services. The first brand that comes to mind spontaneously when one is
asked to recall brands with a specific product category is labeled as “top-of-mind”. Aided awareness or
brand recognition implies that people recognize a brand by its package, colour, logo etc.
-
Brand awareness: “association of some physical characteristics such as a brand name, logo, package,
etc. with a category need.”
Top-of-mind brand awareness
o The first brand you think about
2 ways of defining brand awareness:
o Unaided spontaneous awareness (Brand recall)
o Aided awareness (Brand recognition)
C. Brand knowledge
Brand knowledge or comprehension means that target consumers are aware of the most essential brand
characteristics, features and benefits.Comprehension is the stage where consumer audience understands
the core message of a communication. What people know about a brand can be based on objective
information but also on symbolic features such as brand image and lifestyle positioning (De Pelsemacker
et al., 2018).. Brand knowledge is very subjective and based on past experiences or on beliefs and
perceptions (De Pelsemacker et al., 2018).
-
Target consumers are aware of the most essential brand characteristics, features and benefits.
What people know about a brand is very subjective and based on past experiences or on beliefs and
perceptions.
D. Brand attitude
Brand attitude is the perceived value of a brand to a consumer or why one brand is valued as better than
another brand. In this stage, the audience believes the genuineness of the message. Attaining positive
brand attitudes is an important communication objective. A favorable brand attitude should be
maintained to keep all loyal customers satisfied. If a brand attitude is negative, the main marketing
communication objective should be to change this attitude (De Pelsemacker et al., 2018).
-
Perceived value of a brand to a consumer.
Important communication objective.
A favorable brand attitude should be maintained to keep all loyal customers satisfied
Negative prior brand attitude, then changing the attitude is necessary.
E. Purchase intention
Generating purchase intention and trial is necessary in high involvement decision making but not in low
involvement decision making. In the latter case, consumers in need for a product from a specific product
category, will buy a product when a brand is known and positively evaluated. For high involvement
decisions, an intention is a mediating step between an attitude and a purchase.
-
Low involvement buying situations
High involvement buying situations
Assuring buyers that there are no barriers hindering product or brand purchase
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F. purchase facilitation
When barriers like availability or price could hinder product purchase, a marketing communication
objective could be to minimize the perceived problems (De Pelsemacker et al., 2018)..
G. purchase
Purchase is the phase in which the consumer audience follows his belief in the communication message
through an act of purchase. Although sales are the main marketing objective, sales are not often a
communication objective (De Pelsemacker et al., 2018).
H. satisfaction
Before buying a product a consumer has certain expectations about his or her purchase. When these
expectations are not met, dissatisfaction occurs which refrains customers from buying the brand again.
Moreover, dissatisfaction triggers complaint behavior which can affect future purchases of other
customers who are confronted with these complaints. Positive WOM (Word-of-Mouth) could be
stimulated by communicating with customers by means of for example cocreation. In this process,
customers jointly create value with the company allowing the customer to co-construct the product or
service experience to suit their context (Prahalad & Ramaswamy, 2004).
-
A consumer has certain expectations about his or her purchase.
Dissatisfied customer do not buy the brand again and complain to relatives and friends.
co-creation: “Is a process of participatory innovation.”
The involvement of the user is very important.
Social media and the internet: big surplus to involve the users (e.g. Wikipedia)
I. Brand loyalty
Brand loyalty or the mental commitment or relation between a consumer and a brand triggers a positive
attitude towards a brand and can be the result of habit formation (Franzen & Moriarty, 2008). However,
brand loyalty is more than repeating purchases, it implies a commitment of the consumer towards the
brand.
-
“Mental commitment or relation between a consumer and a brand.”
Suggesting new ways to use the brand
Advertising campaigns to use the brand more frequently
Repeat purchase ≠ brand loyalty?
Defining Advertising Goals for Measured Advertising Results
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3. SMART objectives
A good set of communications objectives fit the overall company and marketing goals, is relevant to
identified problems and copes with threats or build on opportunities in the market (Pickton & Broderick,
2009). It is targeted at different target audiences which implies that different target groups can need
different communication objectives (Pickton & Broderick, 2009). In addition, it is quantified in order to be
measurable so campaign results can be precisely evaluated (De Pelsemacker et al., 2018). It is timed to
enable specific scheduling of the campaign and planning of the evaluation of results. Finally, it is
comprehensive and motivating for all involved persons but at the same time realistic and achievable (De
Pelsemacker et al., 2018). Sometimes marketing objectives are translated into sub-goals.
Good communication objectives are SMART implying that they are specific, measurable, achievable,
relevant and time bound. By establishing a specific objective, the expectations are clearly defined which
optimizes communications’ efficiency. The more precise a communication objective is, the more effective
it is since it ensures that all team members are on the same page.Communication objectives need to be
quantifiable and have some clear indicator of progress. Above all, a communication objective needs to be
attainable so that it does not require resources that a company does not have. To rate whether a
communication objective is attainable, resource availability, budget and budget flexibility, existing skills
and abilities, team attitude, morale and other unquantifiable qualities that affect performance should be
assessed. A communication objective needs to be relevant to the organization and stakeholders. Finally,
communication objectives should be time framed so it is specified when results will be achieved. This
(realistic) deadline helps focus the efforts of the communications’ team and will create a sense of urgency.
All objectives should be SMART
- Specific
- Measurable
- Achievable
- Relevant
- Time bound
“Enhance brand awareness and intention with 25% in one month”
4. Marketing communications objectives: stages in the Product life cycle
The choice of specific marketing communication objectives can depend on the phase of the life cycle of a
brand or product (De Pelsmacker et al., 2018). A product/brand that is introduced into the market is
unknown to customers and hence a first objective is to create a need for that product/brand and make
customers aware of the existence and the features of the product/brand. By emphasizing unique product
features and benefits, by stressing the difference with other products and by giving people some objective
endorsements (e.g. by scientific evidence, testimonials, experts, …) providing a reason why a certain claim
should be believed, sales of new products can be stimulated (De Pelsmacker et al., 2018).
Products in the growing phase should focus on defending their position against possible competitive
attacks. Mature brands can stimulate brand loyalty claiming unique benefits or getting attention by small
product innovations. It is important to reassure customers that they make the right choice and they should
be reminded of their positive experience and satisfaction with the brand (De Pelsmacker et al., 2018).
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Declining products or brands can communicate an important adaptation or change or show new situations
in which the product can be used. Frequency of use should be increased possibly by means of promotions
or by attracting new target groups. When the revenue brought in by additional investments is low, a
harvest strategy is employed: The company will cash in the revenue that the brand brings in until the brand
is no longer profitable.
Examples exam question
1. To what extent should marketing communications objectives be adapted in the introductory,
growth, maturity and decline stage. Give examples.
2. Which of the following statements is not correct?
a) Spontaneous brand awareness and brand recall are the same.
b) Brand recognition is the same as aided brand awareness.
c) Brand recall is easier to achieve than recognition.
d) For fast-moving consumer goods brand recognition is more important than brand recall.
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Chapter 4: budgets
By the end of this chapter you know…
Which budgeting strategies you can use
1. Some key concepts
Share of Market or SOM is the percentage of the total available market a company serves.
Share of Voice or SOV is the percentage of the total communication exposure a company gets.
Communication budgeting methods
Determining and allocating communication budgets is one of the primary problems and strategic issues
facing a marketer (De Pelsmacker et al., 2018). There is no ideal formula for making the best budgeting
decisions. Decisions need to be based on marketing and communication objectives, knowledge of past
budgets and their effectiveness and competitive actions. Furthermore, budgets need to be continuously
re-assessed against financial feasibility at all stages in the planning process and can be adapted to specific
circumstances. If for example, a company is very visible in society, when consumers have many contact
points with the company and the company is frequently exposed in the media (Finne, 2006), the impact
of other communication tools can become so insignificant the company can reduce the communication
budget and allow the time and situational factors to do the job. In addition, both long-term and shortterm
effects of communication efforts on sales and profits can occur (De Pelsemacker et al., 2018).
Sales response models like the concave sales response model or the S-shaped relation response model
indicate how the communications budgets affect sales. The former model follows the law of diminishing
returns: the incremental value of added communication expenditures decreases so that there is an optimal
point after which any additional communication effort will not convince non-buyers (De Pelsemacker,
2018). If this applies, big budgets could overshoot the communication purpose. The S-shaped relation
response model assumes that even when communication efforts are zero, there are some customers who
will buy the product. A certain level of communication is needed to significantly increase sales, but at a
certain point, greater additional communication expenditures will not result in greater sales or can even
evoke negative sales reactions (De Pelsemacker et al., 2018).
Because communications efforts have a short-term and long-term effect on sales and market share the
relationship between sales and communications is difficult to measure using only sales response models.
The traditional view outlines that communications are a long-term investment in goodwill (Aaker et al.,
1987). Philip Jones (1995) proved that communication can also have a short-term effect. Based on scanner
data, he related advertising exposure to behavior and saw this as a measurement of communication
effectiveness (STAS, short term advertising strength). He discovered that 70% of all ad campaigns could
generate immediate results, while only 46% had long-term effects. Sales response models do not account
for the effect of other marketing mix instruments or other communication efforts on sales so it is hard to
pinpoint what the exact financial results of a communication campaign are. The synergy between the
different (communication) tools makes it also hard to isolate the effect a specific communication budget
on commercial results. Sales response models do not take effect of competitive actions and environmental
factors in account (De Pelsemacker, 2018).
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Other budgeting methods that are used in practice are marginal analysis, inertia, arbitrary allocation,
affordability method, competitive parity and the o bjective and task meth od (De Pelsemacker, 2018). The
latter is one of the least arbitrary methods which makes it a difficult technique to use but also probably
the best technique (De Pelsmacker et al, 2018). It starts from communications objectives and the resources
that are needed to reach these planned goals. It accounts for all investments that are needed to
accomplish the communication objective(s) and it requires strategic planning and investments analysis.
Marginal analysis means that the company invests resources as long as extra expenses are compensated
by higher extra turn. Profit is calculated as the difference between gross margin (selling price minus
production costs) and communications expenditures. Since it is difficult to the sales response relation, this
method is seldom used as practical budgeting method (De Pelsemacker, 2018).
Inertia implies that one keeps budgets constant year on year, while ignoring the market, competitive
actions or consumer opportunities. Obviously, this is not a very strategic method. Arbitrary allocation
means that investments in communication are determined by whatever the general manager or managing
director decides. It is a very subjective, not so appropriate method that is often used in small companies.
When the a ffordability method is used, all leftover resources (after all input costs) are invested in
communications. Although this is no optimal budgeting method, it is often used by small and medium
enterprises (De Pelsemacker, 2018).
The percentage of sales method is very popular and easy to use. Budgets are defined as a percentage of
the projected sales of the next year. The communication budgets of the past years are calculated and then
a certain percentage is added. This method could lead to overspending in markets where communication
is not needed. Also too small budgets could be allocated in markets where communication could have a
great impact. Communication should not be the result of sales but rather created demand and push up
sales (De Pelsmacker et al., 2018). This method is also used by taking the percentage of sales or profits
instead of the percentage of projected sales into account. But still the same disadvantages arise: when a
negative sales evolution arises, communication budgets are then decreased instead of investing in brand
communications to increase sales again.
Competitive parity means that companies look at the amount of money competitors spend on
communications and then copy their budget. This method is especially used for fast-moving consumer
goods. As an advantage, the market will not be destabilized by over-investments or extremely low
promotional budgets. Off course, this method implies the belief that budget allocation of competitors is
effective and efficient which is not always the case. Furthermore, using the same budget as competitors
can only be an advantage when the same objectives, resources, operational methods etc are applicable.
Finally, it is based on historical data and not on the competitors plans for the future (De Pelsemacker et
al., 2018).
Another way of taking into account competitors without copying their budgets is by assessing the effect
of share of Voice (SOV) on Share of Market (SOM). The relation between SOM and SOV offers an objective
tool for comparing budgets with the competitors. SOV is calculated as the ratio of own communications
investments divided by the communications investments of all market players. The largest and smallest
players on the market have a SOV that is smaller than their SOM. The followers on the market have a SOV
that is bigger than their SOM. Research shows that ad spending will only influence SOM when there is a
different advertising intensity over a long period. If competitors aggressively augment their
communications budget, this can be countered by following with increasing communications
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expenditures. Market leaders (highest SOM) will have to track the expenditures of competitors and react
to changes to prevent them from gaining market share. Depending on the competitors SOV an offensive
or defensive strategy can be chosen (De Pelsemacker et al., 2018). If the competitor’s SOV is low one can
either attack with a big SOV premium to increase market share or keep a small SOV premium to keep SOM
position (Schroer, 1990). When the competitor’s SOV is high, you can find a niche and decrease SOV or
increase SOV to defend your position (Schroer, 1990).
Budgeting for new brands is hard since there are no historical data available so the objective and task
method should be the primary budgeting method. Another possible budgeting method for a new brand
is the examination of the industry advertising-to-sales ratio. The marketer can then decide to set a budget
that is higher than the industry average in order to make an impact (De Pelsemacker, 2018). Sometimes
the Peckman 1.5 rule is used in in markets or product categories for which there is a strong correlation
between SOV and SOM. This rule recommends to set the SOV of the brand to be launched at 1.5 times the
desire SOM at the end of the brand’s first two years. So if you want to have 25% SOM you need 37,5% SOV
to reach this SOM in 2 years. Finally, the brand’s order of entry affects the SOM independent of the SOV.
Brands that appeared first on the market always have most market share.
How the communications budgets affect sales: sales response models
- Concave sales response model
- S-shaped relation
-
-
Relationship between sales and communications is difficult to measure:
o Other marketing mix instruments
o Synergy-effect
o Sales response models do not take effect of competitive actions and environmental factors
in account.
o Communications efforts have a short-term and long-term effect on sales and market share.
7 budgeting methods
Optimal method: Objective and task method
o Starts from communications objectives and the resources that are needed to reach these
planned goals
o Strategic planning and investments analysis
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Chapter 5: How marketing communications work
By the end of this chapter you know …
- That consumers can be persuaded to change their attitudes through different routes
- That people sometimes change their attitudes without systematic processing of persuasive
arguments
- How we can explain attitude change which is not based on systematic processing of arguments
- What factors determine whether people process messages systematically or superficially
1. Some key concepts
Brand awareness (i.e. the conscious knowledge that a brand exists and that it represents a product
category) is necessary for attitude formation.
Top of mind awareness (TOMA) indicates which brand is most salient within a product category. The brand
that is top of mind is the first brand that someone thinks about when s/he thinks about a product category.
An attitude is an overall evaluation of an object, product, person, organisation, an ad etc. Higher brand
attitudes imply higher purchase intentions. Attitudes are rather stable but they can be changed over time.
One of the goals of marketing communications is to change attitudes in favour of the company’s brand.
Motivation is the willingness to engage in behavior, process information, make decisions, pay attention.
A motivated person will display effort to achieve a particular goal.
The resources one needs to achieve a particular goal are formulated as one’s ability to achieve a goal.
An opportunity is the extent to which the situation enables a person to obtain the goal and is a necessary
condition for a goal to be obtained.
Systematic processing is thorough, detailed processing of information which requires a lot of effort. When
a person processes a marketing communication in a systematic way, s/he gives a lot of attention to the
arguments contained in a persuasive communication.
Heuristic processing is shallow processing of information that does not require much effort. Attention is
given to other message characteristics than the arguments contained in a persuasive communication like
for example source characteristics. A person that engages in heuristic processing assesses the validity of a
communication through reliance on heuristics, i.e., simple rules like ‘statistics don’t lie’, ‘experts can be
trusted’, ‘consensus implies correctness’, rather than through evaluation of arguments.
Elaboration indicates the extent to which a person thinks about the issue-relevant arguments contained
in a message. High elaboration means that a person engages in systematic processing of the message,
while low elaboration means that the person is rather engaging in heuristic processing.
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2. Dual process theories of persuasion
-
-
Two modes of information processing:
o Systematic: individuals engage to a higher degree in content-relevant thoughts and critical
evaluation of the arguments contained in a message in order to accept or reject the position
advocated.
o Non-systematic : individuals engage to a lesser degree in content-relevant thoughts and
critical evaluation of the arguments contained in a message in order to accept or reject the
position advocated.
The mode used depends on processing motivation and ability
Two theories
o Elaboration Likelihood Model (ELM)
o Heuristic-Systematic Model (HSM)
We are confronted with a multitude of marketing communications every day. We see advertisements on
the streets, in a magazine and in-store, we hear commercials when we listen to the radio, we are
bombarded with brands whenever we go online, we are interacting with brands while we eat, brush our
teeth or get dressed, we see our friends and favorite sports player wearing a particular brand, even our
favorite soap displays brands. We can wonder if we are influenced by these casual encounters. Do people
sometimes change their attitudes without systematic processing of persuasive arguments? It seems
plausible that attitude change is mediated by detailed processing of the arguments. After all, is there any
other way to be persuaded, if not through the arguments contained in a persuasive communication?
However, if we think of the hundreds of advertisements we are exposed to every day, we might become
doubtful. Does anybody really think about the arguments contained in advertisements about soft drinks
or toothpaste? Do these advertisements even contain arguments? And yet if people were not influenced
by them, these companies would not spend millions on their advertising budgets. The answer to these
questions is that advertisements and other communication efforts often work through non-systematic
processes.
Dual-process theories integrate both theories of systematic processing and persuasion processes that are
not based on systematic analysis of message arguments (e.g., classical conditioning, self-persuasion,
heuristic processing) (Stroebe, 2006). Dual-process theories of persuasion postulate that how attitudes
are formed and changed, can be explained by the level of elaboration of a message. Two modes of
information processing exist: systematic and non-systematic. Modes differ in the extent to which
individuals engage in content-relevant thoughts and critical evaluation of the arguments contained in a
message in order to accept or reject the position advocated. Dual-process theories also specify the
conditions under which people will engage in each of these processes: The mode used is assumed to
depend on processing motivation and ability (Stroebe, 2006). There are two dual-process theories of
persuasion, the elaboration likelihood model (Petty & Cacioppo, 1986; Petty & Wegener, 1999) and the
heuristic-systematic model (e.g., Chaiken, Liberman & Eagly, 1989; Chen & Chaiken, 1999).
Heuristic-Systematic model
The heuristic-systematic model (HSM) assumes that attitude change in response to persuasive
communications can be mediated by two different modes of information processing, heuristic and
systematic processing, which can operate concurrently. When motivation and ability are high, systematic
processing is likely; when they are low, individuals rely on heuristic cues to accept or reject the attitudinal
position recommended (Stroebe, 2006).
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3. The elaboration likelihood model
The elaboration likelihood model (ELM) is an approach to understanding the persuasion process which
illustrates the decision-making path to belief, attitude, and behavior change. The ELM assumes that once
a person is confronted with a communication, s/he is faced with the decision whether to accept or reject
the position advocated, and will try to form an opinion of its validity. Hence he or she begins to process it.
Two routes to persuasion can be followed: (a) the central route to persuasion and (b) the peripheral route
to persuasion. These two routes mark the endpoints of a continuum that ranges from thoughtful to very
non-thoughtful strategies (i.e., the elaboration likelihood continuum) (Stroebe, 2006).
The probability that a person will critically evaluate arguments contained in a message (i.e., elaboration
likelihood) is determined by both processing motivation and processing ability. Processing motivation is
important because such elaboration requires time and effort. Processing ability is important because, in
order to be able to scrutinize arguments, a person needs both issue-relevant knowledge and sufficient
time. For example, if we see an ad for a new television containing a lot of technical details, we will not be
able to evaluate these arguments if we lack the necessary technical knowledge. But even if we have the
necessary knowledge, we might not be able to think about these arguments if we have no time to do so,
because we have to come to a decision immediately. If, however, individuals are motivated and able to
think about the arguments contained in a communication, they will engage in systematic processing and
follow the central route to persuasion (Stroebe, 2006). However, sometimes persons are not motivated
(e.g., the issue is trivial) or able (e.g., they have no time or lack the knowledge) to engage in an extensive
process of message evaluation. Under these conditions attitudes will be formed according to the
peripheral route to persuasion.
A. central route to persuasion
The Central Route to persuasion refers to an attitude change that involves systematic processing. The
person is carefully and thoughtful considering the arguments presented in support of a position likely
resulting in cognitive reactions towards these arguments. The person attends more carefully to the
message being received and compares it to his or her own attitudinal position. In the central route to
processing, the consumer will determine if the message is relevant. The person will actively think about
the arguments presented and generate either positive cognitive responses (supporting arguments) or
negative responses (counterarguments). The person can be persuaded by components of actual message
(by the strength of the presented arguments) when s/he does not generate many counterarguments and
especially generates supporting arguments for the claims made in the communication. People who have
pre-existing knowledge on a topic are more able to generate counter arguments (Stroebe, 2006).
B. peripheral route to persuasion
The peripheral route to persuasion refers to any attitude change mechanism that does not involve
systematic processing. The peripheral route thus encompasses cognitive processes such as the use of
heuristic decision rules (e.g., ‘experts can be trusted’), affective processes such as classical conditioning
and mere exposure, and use of information about the attitudes held by relevant others. The peripheral
process which has been most extensively examined in studies of dualprocess theories of persuasion has
been heuristic processing, which focuses on the simple decision rules which people use to judge the
validity of messages (Stroebe, 2006).
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Cognitive responses are much less likely to occur, because the consumer is not carefully considering the
pros and cons of the issue. People can use characteristics of the source to evaluate the message (i.e.
source effects) or can look at product characteristics or message characteristics. Peripheral persuasion
cues include such factors as the attractiveness and expertise of the source, the mere number of the
arguments presented, and the positive or negative stimuli that form the context within which the message
was presented (e.g., pleasant music, source attractiveness, source trustworthiness, etc.). For example,
people may have learned from previous experience that statements by experts tend to be more accurate
than statements by non-experts. They may therefore apply the rule ‘Experts can be trusted’ in response
to indications that the communicator is an expert (Eagly & Chaiken, 1993). Or they may have learned to
trust people they like and, on finding a communicator likeable, they will apply the ‘liking–agreement’
heuristic, such as ‘People agree with people they like’ or ‘People I like usually have correct opinions’ (Eagly
& Chaiken, 1993). Other cues that can be used in heuristic processing are attractiveness of the source or
the package, country-of-origin of the product, the amount of repetition of the message. The latter results
in the ‘Truth effect’ : Repeat something often enough, people will come to believe it.
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INV HIGH
MUSIC
1
NO MUSIC 3
Example 1
A 2x2 experimental design for shampoo ads
High or low involvement
Music or no music
INV LOW
2
4
Following ELM, what would you expect for the high and low involvement group with respect to change in
attitudes ?
Attitude Change
High involvement: no music (not relevant)
Low involvement: with music
Example 2
A 2x2x2 experimental design for razor ads
- High versus low involvement
- Famous versus non-famous endorsers
- Strong versus weak arguments
STRONG
WEAK
INV HIGH
FAM
1
5
INV HIGH
N-FAM
2
6
INV LOW
FAM
3
7
INV LOW
N-FAM
4
8
Following ELM, what would you expect for the high and low involvement group with respect to change in
attitudes ?
High involvement: non-famous endorsers
Low involvement: famous endorsers
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C. Assessment of message processing
To assess the degree of elaboration, Petty, Cacioppo and their colleagues developed two strategies which
allowed an assessment of the extent to which recipients of a message engage in message processing. One
method is the thoughtlisting technique. Thought listing is a measure of cognitive responses in which
message recipients are asked to list all the thoughts that occurred to them while being exposed to a
persuasive message (Stroebe, 2006). These thoughts are then categorized as favourable or unfavourable
to the position advocated by the message; neutral or irrelevant thoughts are not considered (Stroebe,
2006). If the recipient has especially generated positive thoughts about the arguments contained in the
message and the favourability or unfavourability of these thoughts is correlated with the extent of attitude
change than we could conclude that attitude change has occurred due to central processing. Another tool
to assess the degree to which message recipients engage in systematic processing is the systematic
variation of argument quality (Stroebe, 2006). Recipients are either confronted with communications
which consist of strong or weak arguments. A person confronted with strong arguments, should generate
predominantly favourable thoughts about the message if s/he engages in central route processing. As a
result, this person should undergo a significant attitude change. A person who is confronted with weak
arguments should especially generate unfavourable thoughts about the message, and therefore very little
attitude change. The less recipients are motivated and able to engage in central route (i.e., systematic)
processing of a message, the weaker should be the effect of a manipulation of argument quality on
cognitive responses and attitude change (Stroebe, 2006).
D. influencing factors
Research on ELM shows that motivation and/or ability to process a message in a relatively objective
manner can be affected by either enhancing or reducing argument scrutiny. To manipulate argument
scrutiny several options exist.
Among the most important variables influencing a person’s ability to systematically process persuasive
arguments are distraction and message repetition. Distraction reduces processing ability while (moderate)
argument repetition should provide recipients with more opportunity for cognitively elaborating a
communication (Stroebe, 2006). This means that repetition should enhance attitude change for messages
consisting of strong arguments and reduce attitude change for weak messages. However, Cacioppo and
Petty (1990) found that , the positive impact of repetition on high-quality messages will only occur if
recipients are motivated to think about the communication (Claypool, Mackie, GarciaMarques, McIntosh
& Udall, 2004). For highly motivated persons, exposure to the same message led to higher agreement with
high-quality messages, but led to decreased agreement with low-quality messages. Too much repetition
however can trigger boredom, which can result in rejection of even high-quality arguments in highrelevance messages (Cacioppo & Petty, 1979).
The most influential determinant of a person’s motivation to think about the argument contained in a
message is the perceived personal relevance of the communication (Stroebe, 2006). When an issue is
important to a person (i.e. high involved), s/he is motivated to critically evaluate the arguments contained
in a message. When the issue of the communication is of little relevance (i.e. low involvement), recipients
are likely to rely on peripheral cues to assess the validity of the position advocated by the communication.
Petty, Cacioppo and Goldman (1981) tested these predictions experimentally. As Stroebe (2006) describes:
“They exposed college students to an attitude discrepant communication advocating major changes to the
examination system. This communication, on a topic about which students are very knowledgeable,
contained either strong or weak arguments and was attributed either to a source with high expertise (the
Carnegie Commission on Higher Education) or to one with low expertise (a class at a local high school).
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The researchers manipulated personal relevance by informing students either that these changes were
going to be instituted the following year and would thus affect them, or that they would take effect only
in ten years’ time.” Petty and colleagues (1981) found that highly motivated students argument quality is
a major factor in persuasion. Students who were less involved rather use heuristic rules such as ‘Experts
can be trusted’ to assess the validity of the advocated position. In addition to situational factors , also
individual differences in motivation to think about persuasive communications determines whether a
person will be motivated to systematically process a message. For example, people who frequently engage
in and enjoy effortful cognitive activity (high need for cognition) are more likely to form attitudes on the
basis of the arguments contained in a communication than are people who are low in need for cognition
(Cacioppo, Petty, Feinstein & Jarvis, 1996). Consistent with expectations, argument quality affected
attitude change mainly for individuals with high rather than low need for cognition. Furthermore, attitude
change in respondents with a high need for cognition was more persistent and more resistant against
counterargumentation than in individuals with low need for cognition (Haugtvedt and Petty, 1992).
Motivation, ability and/or opportunity to process a message in a relatively objective manner can be
affected by either enhancing or reducing argument scrutiny through manipulation of:
- Distraction
- Repetition
- Personal relevance or involvement
- Need for cognition
D. Exercise : The Elaboration Likelihood Model
Draw a figure showing the effect of repeating a communication that contains either weak or strong
arguments once, three times or 8 times for high and low involved consumers
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4. Recent Academic Research
-
-
Chang, Y.-T., et al., 2014. Persuasive messages, popularity cohesion, and message diffusion in social
media marketing, Journal of Business Research, http://dx.doi.org/10.1016/j.jbusres.2014.11.027
Herold, K., Sipilä, J., Tarkiainen, A., & Sundqvist, S. (2018) Facts or Opinions: Which Make a
Difference? Word-of-Mouth and Attitude Change in a High-Involvement Service Context, Services
Marketing Quarterly, 39:4, 261-276, DOI: 10.1080/15332969.2018.1514793
Patel, J., Gadhavi, D. & Shukla, U. (2017). Consumers’ responses to cause related marketing:
moderating influence of cause involvement and skepticism on attitude and purchase intention.
International review on public and nonprofit marketing, 14(1), 1-18.
https://doi.org/10.1007/s12208-016-0151-1
Chang et al. (2014)
-
Argument quality = the persuasive strength of arguments in the post content
Post popularity = the number of likes and comments, sharing and response comments on posts
Posts attractiveness = the extent to which recipients perceive posts as admirable and appealing
Relative significance = recipients who perceive that cooking is more important than other daily
chores
User expertise = the cooking ability of post recipients
-
FB page of iCook (http://icook.tw)
392 users filled out questionnaire
Five-point Likert scale, ranging from “strongly disagree” to “strongly agree.” (items see paper)
Confirmatory factor analysis (CFA) to evaluate measurement model: model fit ok (see paper)
Structural model: fit ok (see paper)
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-
Post popularity plays an essential role in persuading users through both central and peripheral
routes.
On social network sites, argument quality, post popularity, and attractiveness reinforce usefulness
and preference.
Different levels of relative significance and user expertise affect the willingness to like and share.
What would you recommend marketing managers based on these results?
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5. Exercise : The Elaboration Likelihood Model
1. Sketch out the ad that will be run in magazines that cater to hikers and campers, and will therefore
reach an audience that is likely to be highly involved in the camping gear product category. This ad
should be a one-page print ad and need only be a rough draft (stick figures, etc. work fine here).
A lot of information, only useful info, pictures
2. Sketch out the ad that will be run in general interest magazines, and will therefore reach an audience
that is unlikely to be highly involved in the camping gear product category. This ad should be a onepage print ad and need only be a rough draft (stick figures, etc. work fine here).
Flashy text, a lot of pictures, an attractive page
3. Utilizing concepts inherent to the Elaboration Likelihood Model, discuss how the content of these
two ads differ. (EXAM)
Chapter 6: advertising
By the end of this chapter you know
- What types of advertising exist.
- What the steps in campaign development are.
- What the different message and source variables are.
- How to adapt advertising in an intercultural context
1. Some key concepts
Advertising = Any form of paid communication by an identified sponsor ((company, non-profit
organization or individual) to inform and/or persuade target audiences about an organization, product
service or idea (Belch & Belch, 2004; Tellis, 2004; Yeshin, 2006).
USP= Unique selling proposition, is a functional benefit reflecting a functional superiority that is
translated in the positioning strategy as a competitive advantage
ESP= Emotional selling proposition, is a non-functional benefit reflecting a unique psychological
association to consumers that is translated in the positioning strategy as a competitive advantage
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Change in global advertising spending 2018-2022
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2. Function of advertising
Advertising is a commonly used tool. Global ad spending including digital (desktop/laptop, mobile and
other internetconnected devices), magazines, outdoor, radio and TV advertising is slightly increasing with
more than 719 billion dollars estimated by the end of 2019 (eMarketer, 2015). Digital ad spending is
predicted to increase in the upcoming years, while ad spending on traditional media slightly decreases
(eMarketer, 2019; Statistica, 2018).
Advertising has two main communication functions. First, it facilitates competition among firms because
it enables firms to communicate with consumers fast and efficiently. It helps firm to compete for consumer
attention, consumer preferences, choices and financial resources. Secondly, advertising is the most
important means to inform consumers about new and existing products and/or persuade to buy or use a
product and/or service.
Advertising is a means to inform about new and existing products at different stages of the product life
cycle. It can be also be used for more complex products or services or when there are problems associated
with the product. However, an academic paper by Tybout et al. (1981) describes how advertising that was
set up to help fight rumours failed to have a positive effect. Disconfirming the rumour by means of
advertising did not remove the rumour from customers’ memory. Rather, reminding (versus no reminding)
customers of other good features of the product made customers think less about the rumour and resulted
in more favourable evaluations of the product.
-
Facilitates competition among firms for attention and consumer preferences
Inform consumers about new and existing products/services
Persuade consumers to buy or try product or service
Figure. stages in the product life cycle and communication objectives
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3. Types of advertising
Different types of advertising can be distinguished based on for criteria: sender, receiver, message and
medium (De Pelsmacker et al., 2018). For example, product advertising can be initiated by a manufacturing
company, the government, not-for-profit organizations, and retailers or jointly developed by two or more
of these actors. The intended receiver can be either an individual consumer or another company. The
message can focus on informational aspects or transformational consumer motives and can be generic
(promoting a whole product category) or selective (promoting a specific brand). We can also distinguish
campaigns based on the medium in which it is placed (audio-visual, print, pointof-purchase, direct). Above
the line advertising is a commonly used term for audio-visual & print) and below-the-line advertising
denotes in-store communications & direct marketing (De Pelsmacker et al., 2018).
Types of advertising, based on 4 criteria:
- Sender
- Receiver
- Message
- Medium
Sender
- Manufacturer
- Retailer
- Idea
- Collective
- ¨¨
Receiver
- Consumer
- Business (industrial, trade)
- ¨¨
Message
Informational vs transformational
Selective versus generic
Theme versus action
Direct response – interactive
Media
Audiovisual
Print
Point-of-purchase
Direct
Place
4. Campaign development
Developing a campaign consists of a sequence of steps starting with the marketing strategy. An
advertisings strategy needs to be in line with the marketing strategy and holds three aspects: (1) to or with
whom are we going to communicate; (2) why are we going to communicate or what are we trying to reach
and (3) what are we going to communicate. The next step entails translating the advertising strategy into
a creative strategy or ‘how to say it’. Following the creative strategy, a media strategy is set up detailing
the media on which the communication will be shown, the time period and frequency with which it will
be shown. Subsequently, different ideas will be evaluated based on the created brief and objectives and
the winning idea will be produced and implemented. As a last step, the communication can be tested
before or during the campaign and effectiveness is assessed when the campaign has ended. (De
Pelsmacker, et al., 2018)
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4.1 Message strategy
The main question that is answered in the message strategy is what are we going to say to our consumer,
which ideas, USP or ESP are we going to postulate. The message strategy has to start from what the
consumer wants since it has to convince the consumer. Therefore, it is crucial to know and understand the
problems and motives of the target group very well. Knowing the target customers’ preferences and
aspirations may be essential for deciding on the right message. It is also important not to confuse
consumers and stick to one unique benefit of the brand which can be either functional (USP) or nonfunctional (ESP). In order to know which USP or ESP to go for, the advertiser needs to have a clear
consumer insight which are often revealed by qualitative research.
-
Main question: What are we going to say to the consumers (USP or ESP, key ideas)?
Important: it has to convince the consumers
Know and understand the problems and motives of the target group very well
Start from the target customers preferences and aspirations
Do not confuse consumers
4.2 Creative strategy
Once a message strategy has been developed, the advertising agency develops a creative platform
including a creative idea and creative execution. A creative idea is an original and imaginative thought
designed to produce goal-directed and problem-solving advertisements and commercials (Reid et al.,
1998). A creative idea should create a chemical reaction of immediately understanding the brand’s
position (Rossiter & Percy, 2000). A creative idea comes down to a proposition which makes it possible to
communicate a brand’s position in an original, attention getting, but easy-to-catch way ( De Pelsmacker et
al., 2018). Hence, a creative idea is needed to express a brand’s positioning statement attractively. In
addition, this creative idea should summarize the main message and use an approach that is sustainable
(i.e. usable in different tools and media over a longer period of time).
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In addition to a creative idea, an ad in itself can also be creative. Creative ads are original, trigger
imagination and attract attention but positive impact on ad likeability, brand awareness, ad liking and
purchase intentions (e.g. Smith et al, 2008) cannot be confirmed in all studies (e.g. Till & Baack, 2005).
Brainstorming is a technique that is often used in companies to come up with creative ideas and appeals.
-
-
Creative idea
o is an original and imaginative thought designed to produce goal-directed and problemsolving advertisements and commercials.
o should create a chemical reaction of immediately understanding the brand’s position.
o is needed to express a brand’s positioning statement attractively.
Summarize main message into creative idea and approach that is sustainable (i.e. usable in different
tools and media over a longer period of time)
Functionally creative ad
o Different, unique and novel
o Relevant and meaningful
Creative brief
- Objectives
- Target groups
- Copany strategy
- Available budget
- Competition
- Former campaigns
-
Market
Product
Desired position
Company background
Desired media
Message strategy
-
Play ‘ping pong’ with ideas
Evaluate ideas at a given moment
Do not reject an idea immediately
Ideas are never perfect from the beginning
Good ideas are easy to understand
Brainstorming
-
Activate all your senses
Investigate the product from all sizes – play
with the product
Use audiovisual material if possible
Draw your ideas
Phase 1: Formulate your idea
First phase (Quantity)
- Generate as many ideas as possible
- Think of concept
- Be creative and original
- You don’t have to go big to succeed
- Write down everything
- Make new combinations
Musts
- Write down everything (appoint one secretary)
- Many ideas
- Crazy ideas: everything is possible
- Respond to and use other idea’s
- Focus on the research question
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Tips
- Look for inspiration in other industries: cross industry innovation
- Challenge assumptions
- Look for impossible ideas
DO NOT
- Question feasibility
- Name obstacles (“this is impossible because,…”)
- Say “yes but”, “no”, “stupid”
- Use negative encouragement (“you say something now”)
- Interrupt each other
- Laugh with ideas
- Ask questions instead of giving ideas
- Think that you will remember everything (write it down!)
Techniques
- Throw ideas
- Sliding papers
- List essentials, nice to haves, dreams
- De Bono’s technique
technique 1: Mindmapping
- Method to order and structure ideas and associations
- Start with one word or sentence and write down whatever comes to mind
- Work with words, sentence, images,…
technique 2: Post-it wars
Phase 1
- Everybody writes down 10 or 20 ideas on a post-it
- Put them on a wall/paper, arranged by idea, theme
Phase 2
- Brainstorm in group
- Combine all the post-its
o Double idea’s = pile them up
- While you do this, write up new idea’s that arise from the combination of these post-its
technique 3: Projective techniques
- Everybody imagines to be a part of the target group. Describe gender, interest, age, …
- Brainstorm starting from that person. What would s/he like? What would s/he like to experience?
(think positive, not negative)
Phase 2: select
Second phase (Quality)
- Order and select ideas at the end
- Evaluate quality of each idea
- Check every idea with objectives, target group, context
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5. Message variables
Advertising message variables refer to the strategies that may be used to communicate an idea to an
audience. Advertising message variables have been studied extensively.
5.1 Argument quality
Argument quality refers to what is communicated about the product and is the strength of the
persuasiveness of the arguments used to support or position an offer (Fennis & Stroebe, 2016). Argument
quality is based on the perceptions of valence of the arguments as well as the likelihood of occurrence
(Areni & Lutz, 1988). A strong argument is one where a desirable product attribute is highlighted, coupled
with the certainty that it will be delivered with the product (Fennis & Stroebe, 2016). High argument quality
can be triggered by adding a credible, trusted logo or source to an ad or by indicating country-of-origin of
a product (Maheswaran, 1994).
Argument quality = the strength of the persuasiveness of the arguments used to support or position an
offer
5.2. Message structure
Message structure or ad organization refers to how product information is presented. One can choose to
show the strong arguments first to attract attention and stimulate processing intensity (i.e. primacy effect)
or show strong arguments at the end because they are then more recently activated in memory (i.e.
recency effect, Haugtvedt and Wegener, 1994). Attention can guide whether to put strong arguments first
or last (Biswas et al., 2009). When consumers are distracted from message processing it is better to save
the best for last and hence show the strong arguments at the end, while for consumers who are motivated
to give their full attention to the message, the strongest arguments should be put first (Biswas et al., 2009).
Janiszewski (1990) applied the “Matching activation hypothesis” (i.e. greater activation in one hemisphere
is matched with an increase of activation in the other hemisphere) in an advertising context and found
that the specific placement of a photo, slogan and brand name affect processing and brand likeability.
Message structure (ad organization) = the order in which information is presented
- Attract high involvement people: better to start with the high quality items
- Attract low involvement people: better to end with the high quality items
5.3 Content
-
Conclusion
Message sidedness
Message tone: rational (argument based/informational) versus emotional (affect based) appeals
5.3.1 Conclusion
Stimulating the consumer to think about the message can positively affect advertising effectiveness. When
an ad does not state a conclusion for example, the audience has to draw their own conclusion and the
message will tend to be more effective—assuming the conclusion is positive (Kardes, 1988). The latter
effect did especially occur when consumers were high (versus low) involved (Kardes, 1988) and high
(versus low) in Need for Cognition (Martin et al., 2013). Also a communicator is advised to close the
argument by stating the conclusion when the message is too complex for consumers to make sense of it
(Kardes, 1988).
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5.3.2. Message sidedness
Most messages only use supportive arguments. A one-sided refers to a marketing message that presents
only positive information. These messages may be effective but sometimes result in resistance (Knowles
& Linn, 2004), especially for high involvement, higher educated audiences who want unbiased messages.
Therefore, advertisers sometimes use a twosided message or a marketing message that presents both
positive and negative information. Two-sided arguments can give appearance of being fair, it lowers
counterarguments and disarms unfriendly audiences (Kamins & Assael, 1987). Two-sided messages
increase source credibility by reducing reporting bias (Eisend, 2006) and are more effective in enhancing
perception of the advertised brand on those characteristics that are described as positive (Etgar &
Goodwin, 1982). However, the negative message should not focus on an extremely important attribute
nor must it contain more than 2/5th of the information displayed in the message (Crowley & Hoyer, 1994).
There are two sub-types of two-sided messages: refutational and non-refutational messages. In a
refutational message you first raise a negative issue and then you dismiss it. In a non-refutational message
advertisers simply present both positive and negative arguments. Some research shows that two-sided
messages using refutational arguments is more effective than two-sided messages using non-refutational
arguments. (Eisend, 2006). Cornelis et al., (2015) showed that whether refutational messages are more
credible depends on the ambivalence of the issue that is being advertised. Twosided messages especially
work when the initial attitude of consumers is unfavourable or when the issue is unfamiliar to consumers
(e.g. Lumsdaine and Janis, 1953). Also highly educated target groups prefer unbiased two-sided messages.
More recent research shows that two-sided messages are also effective when consumers expect counter
messages from competitors and consumers who are not yet loyal to the brand.
Example Strong argument message
Academic research- argument quality
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Academic research – ad organization
Best: upper right and bottom left
When you first see the picture. Brand on the right side, is just next to
the eyes.
When you first look at the slogan. Brand on the left side
Matching activation hypothesis = greater activation in one hemisphere is matched with an increase of
activation in the other hemisphere
➢ Processing focal information can affect processing of brand name or advertising message
➢ when focus on picture: brand name must be placed so it can be easily processed by the unused
hemisphere (i.e. the left one)
➢ when focus on slogan: brand name must be placed so it can be easily processed by the unused
hemisphere (i.e. the right one)
Should a conclusion be drawn?
- Consumers who make their own inferences will form stronger,
more accessible attitudes
- No conclusion might not lead to the desired attitude
- Take target group’s involvement into account
Should both sides of an argument be given?
- One-sided = a marketing message that presents only positive information
- Two-sided message = a marketing message that presents both positive and negative information
- Two-sided messages increase source credibility by reducing reporting bias
- Especially works
o when consumers are opposed to the offering
o when consumers expect countermessages from competitors
o for highly educated target groups, wanting unbiased natural
messages
o and consumers who are not yet loyal to the brand
- Use only if negative message is about a not extremely important
attribute
- Beware of legal aspects and complaints
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Academic research
- Cornelis, E., Cauberghe, V. & De Pelsmacker, P. (2015). The credibility of refutation in two-sided antidrugs messages. Journal of social marketing, 5(3), 241-257.
- Is a two-sided message more credible?
- 2 x 2 x 2 design
o Refutational vs. Non-refutational
o Rational vs. emotional
o Ambivalent vs non-ambivalent
- Results
o Binge drinking: rational arguments → refutational more credible
o Marihuana use: emotional arguments → refutational more credible
5.3.3 Message tone
Advertisements can also us different types of appeal: They can appeal to reason and use arguments (=
rational appeal) or they can use emotions and feelings (= emotional appeal) to get the message across
(Fennis & Stroebe, 2016). Although mixed appeals also exist employing both rational and emotional
elements. Whether to choose a rational or an emotional appeal depends on the product being advertised
and the involvement of the audience and other consumer characteristics (Venkatraman et al., 1990).
Rational appeals are more frequently used for durable goods than non-durable goods and in industrialized
countries versus less industrialized countries (Abernethy & Franke, 1996).
5.3.3.1 Rational
Rational advertising appeals contain features, practical details and verifiable, factual relevant cues that
can serve as evaluative criteria (De Pelsmacker et al., 2018). Rational ads can contain one or several cues.
The most widely used classification system of information cues is that of Resnik & Stern (1977) indicating
information that is conveyed in informational appeals like taste, nutrition, packaging, warranties,
independent research company research, new ideas and safety cues (Abernethy and Franke, 1996). The
most frequently communicated types of information are price, quality, performance, availability,
components and special offers (Abernethy and Franke, 1996). .
Informational appeals come in different formats: talking head, demonstrations, problem solutions,
testimonials, slice of life, dramatizations, comparative ads etc (De Pelsmacker et al., 2018). A talking head
refers to an ad in which the characters tell the story in their own words either through a monologue,
dialogue or interview. In a demonstration, consumers are shown how a product works. A problem solution
shows how a problem can be solved or avoided. A testimonial features ordinary people who say how good
the product is. Slice-of-life ads feature the product being used in a real-life setting. Dramatization refers
to a dramatic build up from a problem to a solution. Comparative ads compare positive and negative
aspects of the brand to competitor and is used to position and differentiate a brand. Comparable ads are
especially liked in countries where they are allowed and disliked when they are not allowed or used
infrequently (Donthu, 1998). Direct comparative advertisements directly compare one brand with another
brand and should only be used by low market share brands. Indirect comparative advertisements do not
specifically mention the competitor brand but instead refer to competitors. This can especially be used by
moderate share brands. High market share brands should avoid comparative ads. Comparative ads should
attract more attention and higher brand and message awareness and more elaborate processing. It can
be associated with the comparison brand and hence lead to more favourable brand attitudes and
increased purchase behavior. However in general, comparative advertisements are not well received by
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most people. It can result in lower credibility and confuse people leading to less favourable attitudes
towards the ad (Grewal et al, 1997). The more intense the comparative claim, the less consumers believe
the propositions, the more counter-arguments are formed and the more negative attitudes and intentions
are (del-Barrio-Garcia and LuqueMartinze, 2003). Advertisers should also be careful when using this
technique since it can result in possible media wars and costly law suits.
-
Possible appeals : Talking head, demonstration, problem solution, testimonial, slice of life,
dramatisation, comparative advertising…
Information classification Resnik & Stern (1977)
-
Talking head
o One person that is saying something, very rational
- Demonstration
- Dramatisation
- Problem Solution
- Infomercials/advertorials
- Testimonial
- Comparative advertising
- Slice-of-life
Comparative advertising
Comparative message = A message that makes direct comparison with competitors
Advantages
- More attention
- Better brand and message awareness
- More ellaborate processing
- Association with comparison brand
- More favourable brand attitude
- More likely purchase behavior
Disadvantages
- Less credible
- Comparison of similar brands confuses
people
- Less favourable attitudes towards the ad
- Possible brand confusion
- Possible media wars and costly law suits
II. Message tone: emotional
Emotional appeals refer to advertising that tries to evoke emotions in consumers rather than to make
consumer think. Emotional ads mainly consist of non-verbal elements such as images and emotional
stimuli (De Pelsmacker et al., 2018). Emotional advertising do not necessarily evoke emotions in all people,
although they are created to do so.
Emotional appeals can use different emotional techniques: humour, eroticism, warmth and fear.
Humorous appeals are created to make people laugh. About 35 % of all advertising appeals contains
humour (McCullough, 1992). Both positive and negative effects may occur from the use of humour.
Humorous appeals can reduce comprehension and shorten life span of ads. Also when an audience is
already negative toward a brand, humour can increase the negative feelings. Humorous appeals can also
have positive effects: they encourage a positive mood state, attract attention to an ad (Eisend, 2009), and
enhance liking for ad—particularly when an audience is already favorable toward the ad (Cline & Kellaris,
2007; Geuens & De Pelsmacker, 2002). One function it may play is to provide a source of distraction (Strick
et al., 2013). A funny ad inhibits the consumer from counter - arguing (thinking of reasons why he or she
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doesn’t agree with the message), thereby increasing the likelihood of message acceptance. There are some
moderating variables explaining the effectiveness of humorous appeals (De Pelsmacker et al., 2018). For
example, humour works best when it is naturally related to the product or situation. Humour is also more
effective for existing low-involvement products for which no prior negative brand evaluation exist.
Different types of humour lead to different communication effects, especially aggressive humour like
satire is not well received by some consumers. Humour is more likely to be effective when the brand is
clearly identified and the funny material does not ‘swamp’ the message. Subtle humour is usually better,
as it presents the product or brand as ‘clever’. The humour can make fun of the brand (and its producers),
something which makes them appear as ‘more cool’, but generally it is a rule to not make fun of the
potential consumer.
Erotic appeals contain one or more of the following elements: partial or complete nudity, physical contact
between two adults, sexy or provocatively dressed person(s), provocative or seductive facial expressions
and suggestive words or sexually laden music (De Pelsmacker et al., 2018). An image can contains only
parts of a body which makes it easier to erase individuality. Interchangeability is a common advertising
theme within erotic appeals implying that women or men, like objects, are fungible. And like objects,
“more is better,” a market sentiment that erases the worth of individual men and women. High levels of
nudity are generally seen as less favourable compared to lower levels of nudity by both males and females
(Peterson and Kerin, 1977). They are especially effective when the sexual content of the ad is related to
the product (Richmond & Hartman, 1982). Erotic appeals attract attention and increase encoding and
recall of the sexual images in the ad and can enhance recall of product information and liking when the
erotic character is related to the product (Reichert, 2002). However, at the same time, erotic appeals also
reduces brand and message recall, have a negative impact on advertiser’s image and can created negative
attitude if the audience sees the use of erotic appeals as a trick (De Pelsmacker & Geuens, 1996). Erotic
appeals distracts consumers from processing the message (Severn et al., 1990). Still, erotic appeals are
increasingly used (Reichert et al, 2012). Several moderators affect the effectiveness of erotica appeals.
Men are more likely to respond more positively to erotic ads containing female sources than females do
(Jones et al., 1998) while they react more negative compared to nude male models ( Simpson et al., 1996).
More recent research shows that males only favour erotic female models more than females on an implicit
level (restrained processing conditions) while cognitive control evokes similar (more negative) attitudes
between males and females towards erotic female models (Sengupta and Dahl, 2008). More specifically
they found that under restrained processing conditions (e.g. high cognitive load) that allow the elicitation
of spontaneous, gutlevel reactions, men on average will exhibit a more positive attitudinal response to
gratuitous sex appeals than women. Moreover, they demonstrate that women with more liberal attitudes
to sex per se react in a manner very similar to men; namely, they report more liking for a sexual ad than a
nonsexual ad.
Warm appeals consists of elements evoking mild positive feelings such as love, friendship, cosiness,
affection and empathy (De Pelsmacker et al., 2018). Warmth leads to more positive affective responses,
less negative feelings such as irritation, more positive ad and brand attitudes and sometimes it enhances
purchase intentions (Geuens and De Pelsmaecker, 1998). Warm appeals are especially effective for
females, and emotional and empathetic individuals (Geuens and De Pelsmacker, 1999).
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A threat (fear) appeal is a persuasive message designed to scare people by describing the terrible things
(risks) that will happen to them if they do not do what the message recommends. Threat appeals refer to
a certain type of risk or threat that the consume might be exposed to and which he or she usually can
reduce by buying or not buying the product advertised. Fear appeals emphasize the negative
consequences that can occur unless the consumer changes a behaviour or an attitude. Some of the
research on fear appeals may be confusing a threat (the literal content of a message, such as saying
‘engage in safe sex or die’) with fear (an emotional response to the message).
The drive model (Janis, 1967) explains that the effectiveness of fear appeals depends on degree of fear
that is evoked. Individuals who are informed of a threat will be motivated to search for responses to reduce
that threat. When a recommended action promises to protect them, and thus reduces fear, it will be
reinforced and become part of the individual’s permanent response repertory (Fennis & Stroeber, 2016).
Higher fear should results in higher persuasion but only if the recommended action is perceived as
effective in averting danger. Fear appeals are usually most effective when only a moderate amount of fear
is induced and when a solution to the problem is presented. If the threat is too high, the audience tends
to deny that it exists as a way to rationalize the danger. It feels impossible to reduce the drive so consumer
experience a sense of reactance to the message. Reactance is the motivation to resist any perceived threat
to one’s freedom and to make up one’s own mind about an issue. The terror management theory
(Taubman et al., 1999) also describes why high fear arousing messages are counter-productive. This theory
puts forward that people deny their fear and try to enhance their positive self-esteem as a way of
managing this fear. The protection motivation theory (Rogers, 1983) prescribes that four independent
cognitive responses mediate the impact of a threat appeal on coping attitudes intentions and behavior:
(1) Perceived severity or the individual belief about the seriousness of the threat; (2) Perceived
vulnerability or the individual belief about probability of occurrence of the threat, (3) Perceived response
efficacy or the individual belief as to whether a response effectively prevents the threat and (4) Perceived
self-efficacy or the individual belief in his or her ability to perform the recommended response. Threat
messages can lead to protection motivation which in its turn impact coping intentions, attitudes and
behavior. Greater fear does result in greater persuasion – but not all threats are equally effective because
different people will respond differently to the same threat. A high threat appeal may not induce fear in
the target group if they think they are not vulnerable to it. Using this theory, Vermeir et al. (2007) showed
that fear appeals containing financial risks are more effective in refraining adolescents from shoplifting.
Moreover, both referring to high severity and vulnerability can diminish shoplifting intentions.
Finally, the extended parallel processing model (Witte, 1992) defines two reactions to a threat appeal: a
cognitive one and an emotional one. As a cognitive reaction people think about the threat and ways to
convert it (Cognitive danger control); emotionally, they react to fear and engage in strategies to control
their fear like reactance or defensive avoidance (Emotional fear control).
Several types of risks can be put forward: Physical, social, time, product performance, financial and
opportunity loss (De Pelsmacker et al., 2018). Threat appeals can refer to the risk of bodily harm, social
ostracising, lost time, and money, less product performance and the risk of missing out of a special
opportunity. A special type of fear appeals are shock tactics. They show unexpected, surprising and
offending content, meanwhile violating moral codes, transgress laws or customs or beach a moral or social
code. On a positive note, they do attract attention and increase cognitive elaboration. Shocking advertising
messages often generate a huge amount of (online) WOM and media publicity (Dahl et al., 2003; Parry et
al., 2013).
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Humor
- a way to decrease counterarguments
- mild humor is the best
- not with a new product
- Moderating variables influencing the effectiveness of humor in advertising.
Advantages
- Encourages positive mood state
- Attracts attention
- Enhances liking when audience is already
favourable
Disadvantages
- Reduce comprehension
- Short life span of ads
- Increase negative feelings when audience is
already negative towards brand
Effective humorous ads
- Product type
- Humour type
- Prior brand evaluations
B. Erotic
Advantages
- Attracts attention
- Enhances liking when related to the product
-
Relation between humour and product
Existing or new products
Disadvantages
- Reduces brand and message recall
- Negative impact on advertiser’s image
- Negative attitude if audience sees is as a
trick
Academic research
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Sengupta & Dhal, (2008). Gender-related reactions to gratuitous sex-appeals in advertising. Journal of
Consumer Psychology, 18,62-78.
- Do men and women display other attitudinal responses under constrained processing conditions?
- 2 (Gender: men vs. women) × 2 (Ad Type: sexual vs. nonsexual appeal) between‐subjects design
- Results
o Males sexual ad > non-sexual ad
o Females sexual ad < non-sexual ad
C. Warm
Showing dogs, cats, families
Advantages
- Less irritation
- More positive ad and brand attitudes
- Enhances purchase intentions
Disadvantages
- Especially effective for females, emotional
and empathetic individuals
- Doesn’t really attract attention
D. Fear
- Threat appeal = persuasive message designed to scare people by describing the terrible things (risks)
that will happen to them if they do not do what the message recommends.
- Types of risks (De Pelsmacker et al., 2018):
o Physical
o Product performance
o Social
o Financial
o Time
o Opportunity loss
Drive model (Janis, 1967) : effectiveness depends on degree of fear that is evoked; impossible drive
reduction → reactance
Terror management theory (Taubman et al., 1999) : deny fear, enhance self-esteem
you need a moderate degree of fear, not too much
Protection motivation theory (Rogers, 1983)
- Perceived severity = individual belief about the
seriousness of the threat
- Perceived vulnerability = individual belief about probability of occurrence
- Perceived response efficacy = individual belief as to whether a response effectively prevents the
threat
- Perceived self-efficacy = individual belief in his or her ability to perform the recommended response
➔ If all 4 are there, only then you will be appealed to buy a product
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Academic Research
Vermeir, I., Steenhaut, S. & Van Kenhove P. (2007). Exploring the impact of fear appeals on the
prevention of shoplifting. Working paper. Faculty of Economics and Business Administration. UGent
- 2 x 2x 2 design
o Social versus Financial risk
o Severity of risk (paying a fine small/high- disappointment by retail personnel, being
perceived as a criminal by friends and family)
o Vulnerability to risk (chance to get caught/be socially excluded low/high)
- Results
o Social and financial risks diminish shoplifting intention but Financial risk > social risk
o High (versus low) severity diminishes shoplifting intention more
o High (versus low) vulnerability diminishes shoplifting intention more (only for social risks)
Extended parallel processing model (White, 1992):
- Cognitive danger control= people think about the threat and ways to convert it
- Emotional fear control= react to fear and engage in strategies to control their fear (reactance,
defensive avoidance)
E. Shock tactics
- Unexpected, surprising, offending
- Violate more codes, transgress laws or customs or beach a moral or social code
- Attract attention and cognitive elaboration
- Generate (online) WOM and media publicity
- (Cfr. Unethical communication practices)
III. Message tone: Emotional versus rational
Depends on involvement, product type & consumer characteristics (Venkatraman et al., 1990)
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6. Source variables
Sources are the individuals bringing the message or the brand/organization behind the product or service
and can be direct or indirect. A direct source is a spokesperson delivering a message or demonstrating a
product, an indirect sources does not deliver the messages but is nevertheless associated with the product
or service. Country-of-origin information can also be seen as a source variable: it provides consumers with
cognitive information and prompts affective reactions.
The source of a message can have a big impact on how the message is received and accepted. Source
characteristics are the features that impact the effectiveness of the source in persuading the receiver.
Important source characteristics are credibility and attractiveness.
-
-
Sources are the individuals bringing the message or the brand/organization behind the product or
service.
o Direct: Literally saying something about the product
o Indirect : Add of a footballer and a watch
Country-of-origin information provides consumers with cognitive information and prompts affective
reactions.
6.1. Credibility
Source credibility is the perceived expertise, trustworthiness or status of the sender. This can be enhanced
if the source’s qualifications are perceived as being relevant to the product. Source expertise refers to the
extent of knowledge the source is perceived to have about the subject on which he or she is
communicating. Showing your expertise as a salesman or showing how your brand scores high in
consumer reports can enhance credibility of the message. Source trustworthiness refers to the extent that
the source is perceived to provide information in an unbiased, honest manner. Consumers see other
consumers as trustworthy which explains the effectiveness of online reviews and Word-Of-Mouth. Finally
CEO and celebrities hold a certain status which can translated in higher expertise.
If multiple credible sources are used, their positive effects are magnified and counter-arguments to the
message are reduced. However, credibility lowers when a source endorses several products. Low credible
sources do not always have negative effects. The sleeper effect (Gruder et al., 1978) predicts that
consumers forget the source of a message more quickly than they forget the message (Lariscy and
Tinkham, 1999).
Source credibility= the perceived expertise, trustworthiness or status of the sender
6.2. Attractiveness
Source attractiveness refers to the source’s perceived social value. This can emanate from the person’s
physical appearance, personality, social status, or similarity to the receiver. Attractive sources can both
attract attention and positively affect attitudes and intentions. The HALO effect (Nisbett and Wilson, 1977)
can explain the latter effect: based on the attractiveness, a consumer assesses the source (and the product
being advertised) as also being positive in other domains. Also the “what is beautiful, is good” (Dion et al.,
1972) stereotype applies here. To enhance attractiveness one can use celebrities as communication
sources or use visuals of attractive people. The use of celebrities can positively impact ad likeability and
indirectly affects brand attitudes and purchase intentions (Lafferty et al., 2002). However, celebrities seem
to become less and less credible especially when they do not match the product they are advertising. The
match-up hypothesis claims that there should be a fit between the endorser’s image, personality, lifestyle
and the product advertised to have positive advertising results (Till and Busler, 2013). According to the
match-up hypothesis the type of product moderates the effects of physical attractiveness. A physically
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attractive spokesperson or model will only be advantageous when the product is associated with beauty
(Kahle & Homer 1985, Kamins 1990). The image (attractiveness) of the endorser must match up with that
of the product for physical attractiveness to have an effect. Baker & Churchill (1977) found that attractive
models produced more positive effects for products with romantic overtones (perfume, cologne,
aftershave), but the opposite occurred for coffee. Similar results were found for a luxury car versus a
computer (Kamins 1990). Research by Koernig and Page (2002) shows attitudes and intended behaviour
are more positive when the attractiveness of the service provider is congruent with expectations,
compared to when provider attractiveness is discrepant from expectations. They explain this using the
category-based model which states that judgments result from a two-stage process including the
categorization stage and the evaluation stage. If the stimulus matches with the category, the affect
associated with this category (schema) is immediately applied to the stimulus. A mismatch would occur
when the cued category contains a prototype that has attributes that are inconsistent with the stimulus,
which results in increased thinking about the inconsistency.
People who tend to be sensitive about social acceptance and the opinions of others are more persuaded
by an attractive source, whereas those who are more internally oriented are swayed by a credible, expert
source. The choice may also depend on the type of product. For a utilitarian product an expert may be
better because he reduces performance risk. For luxury products a celebrity endorser may be better
because they reduce social risks. And a “typical consumer” may be best to endorse a low risk, everyday
product such as cereals or biscuits. Also, expert sources are especially liked when a person has low
expertise with the product.
-
-
Source attractiveness = A source characteristic that evokes favourable attitudes if the source is
physically attractive, likeable, familiar or similar to ourselves
Methods to enhance attractiveness:
o using celebrities as communication sources.
o using visuals of attractive people.
Halo effect
Match-up hypothesis
Case Sensodyne
- Target group = women who have sensitive teeth and (not) use the product.
- Message strategy = focus was on the brand’s core essence of providing effective pain relief for
sensitive teeth
- Creative strategy = Sensodyne is so effective that dentists recommend it.
o Consumer insight: I trust my dentist to give me the best advice”
- Costs: spending €63 million
- Media : TV, Direct marketing, in store point of sale material, posters in dental surgeries
- Results
o brand image increased with 33%
o brand penetration increased with 9%
o sales rose with 20%,
o value share rose with 1%.
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Academic Research
Koernig, S.K., & Page, A.L. (2002). What if your dentist looked like Tom Cruise? Applying the Match-Up
Hypothesis to a service encounter, Psychology & Marketing, 19 (1), 91-110.
- 3x2 factorial design
o Physical attractiveness of a service provider (high, moderate, low)
o Service type (related or unrelated to attractiveness),
- Hypotheses
o Attitudes and intended behavior will be more positive when the attractiveness of the service
provider is congruent with expectations, compared to when provider attractiveness is
discrepant from expectations
o Fewer total thoughts and fewer attractiveness-related thoughts will be generated when the
attractiveness of the service provider is congruent with expectations, compared to when
provider attractiveness is discrepant from expectations
Attractiveness related: hairdresser
Attractivenees unrelated: dentist
it is the case for hairdresser
Conclusion
- Ratings of service quality and attitudes are maximized when service-provider attractiveness is
congruent with the image of the service
- “what is beautiful is good” is better viewed as “what is expected is good”
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7. Advertising in a cross-cultural context
Advertising in a cross-cultural context should consider the following relevant factors (De Pelsmacker et al,
2018): Values and attitudes, language, religion, sense of humour and gender roles. Each of these factors
can have an impact on how advertising messages are perceived and should be framed to be correctly
understood by consumers in different cultures.
Concerning language, subtle differences or different pronunciations may convey totally different
meanings, also different connotations exist to the same word. In some countries English language is
preferred over the native language. If a translation is necessary, it is important to consider that words
translated from English to Roman or Germanic languages are often longer, which could affect ad
organization in print advertising. It is advised to use translation and back-translation.
Non-verbal language include timing, space, touch, colours, gestures and eye contact. Actions and
movements communicate. Usunier and Lee (2005) provide some examples on how showing the sole of a
shoe or patting a child on the head can be one of the worst possible insults in many Muslim countries.
Apparently, the degree of bowing in Japan depends on status of person in front of you. Every culture and
even subculture has got its own way of greeting each other. Kissing is more prevalent in Europe than in
Asia and less prevalent than in Latin America. In Arab countries men kiss each other and hold hands on the
street (also in Vietnam). Looking straight in the eyes is done by Arabs, Europeans and Americans because
it is a sign of honesty, of a friendly, attentive attitude. For Japanese lowering your eyes is a sign of respect.
Cultural values help us guide in determining what is right and what is wrong, what is important and what
is not and how to behave. Empirical studies show that consumers seem to respond more positively to
culture-congruent appeals (Zhang and Gelb, 1996). Religion also influences what is allowed to be said and
shown in a marketing message and influences the value people attach to material goods. Both gender
roles and the use of specific types of humour also depends on the culture (Walliser and Usunier, 1998).
Cultures can be distinguished on a contextual continuum. In low context cultures, a lot of emphasis is
placed on words. The receiver needs to be able to easily decode the message and understand what is said.
In high context cultures, words are only one part of the message; the other part is formed by body language
and the context (i.e. the social setting, the importance and knowledge of the person). In this case the
message can be more implicit and ambiguous.
According to Hofstede et al. (2002), five cultural dimensions can be distinguished which can explain the
difference in cultural components across countries. In c ollectivist cultures people subordinate their
personal goals to those of a stable in-group while in individualist cultures importance is attached to
personal goals and people are more likely to change memberships when the demands of the group
become too costly. The degree of power distance refers to the extent to which authority plays an
important role and to what extend less powerful members of the society accept and expect that power is
distributed unequally. In masculine countries, assertiveness, competitiveness, and status are valued highly
while in feminine cultures caring for others and quality of life are central values. Uncertainty avoidance
refers to the extent to which people feel uncomfortable with uncertainty and ambiguity and have a need
for structure and firm rules in their lives. Long-term versus short-term orientedness deals with values such
as pragmatic future oriented thinking, virtue, thrift, perseverance and a sense of shame versus
conventional, historical or short-term thinking, fulfilling social obligatoins, respect for tradition and a sense
of security and stability.
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This approach has been much criticized because the dimensions do not account for the differences in
meaning and role of the concepts in each culture. That each culture has to cope with problems of power,
risk and uncertainty, gender roles and the relationship between the individual and the society is obvious.
But that the solutions to these problems are reducible to different levels on one and the same scale is
dubious. For example, it is difficult to assume that concepts such as ‘risk’ or ‘masculine’ would mean the
same in all cultures.
Relevant factors (De Pelsmacker et al, 2018)
- Language
- Values and attitudes
- Religion
- Sense of humour
- Gender roles
I. Verbal Language
-
Can English be used?
Different connotations to the same word: e.g. business,
quiet-ruhig-tranquil
Translations from English to roman languages: + 25%
Translations from English to germanic languages: + 30%
Use translation and back-translation !
II. Non-verbal language
-
Timing
Space
Touch
Colours : different meaning in different countries
Gestures
Eye contact
III. values
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Case Love singapore movement
- Objective
o Create Top-of-Mind Awareness of God among the people of Singapore
o Change image of God to more ‘human’
- Target group
o Teenagers, students, young professionals
o Christians, atheists & non-Christians
- Tools
o 17 TV commercials
o 24 newspaper ads
o mobile billboards
o text messages
- Results
o A lot of media attention
o Two gold lions at Cannes Advertising Festival
IV. Sense of humour
Different senses of humour in different countries/ parts of the world
V. Gender roles
how are you going to show men and women, and how are they interacting?
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VI. Contextual continuum
In some countries people want very explicit messages, in other countries they prefer implicit messages
VII. Hofstede’s five cultural dimensions
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Positioning of countries on cultural dimensions
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8. Causes and consequences of irritation evoked by advertising
Beside positive effects, advertising frequently evokes negative feelings like irritation. Irritation can be
defined as provoking annoying reactions, causing displeasure and momentary impatience (Aaker and
Bruzonnne, 1985). Irritation can be caused by the ad content. Consumers often do not like exaggeration
or unsympathetic characters that act nervous. Repeating the brand name too often can also lead to
irritation. Informational ads in general seem to irritate more than emotional appeals, especially when
these informational appeals use It is also better to use performance and price tactics rather than
availability, quality or taste. Finally specific types of humour (satire), provocation and eroticism increase
irritation while music, sentimental humour and warmth created by the use of animals or children seems
to reduce irritation. Besides ad content, specific product categories are prone to evoke irritation like
female hygiene products and detergents. Consumers do not like repeated exposures although a certain
amount of exposures is necessary for the ad to ‘wear in’. After a certain amount of exposure, wear-out
effects occur which denotes negative feelings. Too much ad density (i.e. being exposed to a lot of ads
during a short amount of time) can also evoke irritation. In addition, some consumers (‘ad haters’) are
more prone to experience irritation than others (‘ad lovers’). Finally, TV commercials and pop-up ads are
hated the most because they interrupt programs (De Pelsmacker et al., 1998).
Several theories predict whether irritation will affect ad- and brand related responses. The ‘superiority of
the pleasant’ hypothesis predicts that negative evoked feelings have a negative influence on ad- and
brand-related responses. The law of extremes theory predicts that not only a very positive but also a very
negative attitude towards an ad (Aad) can lead to positive attitude towards the brand (Ab) which is more
positive than an Ab resulting from a moderately Aad (Moore and Hutchinson, 1983). One study found that
the effect of irritating communications depends on the buying motive that a consumer has. For
informational motives, feelings are not seen as relevant so irritating ads can lead to positive brand
responses. When transformational motives are appealed to, the superiority of the pleasant hypothesis
applies and hence irritation causes negative brand responses (Rossiter and Percy, 2000).
9. How to measure reactions to advertising?
To measure the effectiveness of advertising efforts, to avoid mistakes and allow communications
managers to control the process and to adapt strategies, three basic types of advertising research can be
executed: pre-testing, post-testing and campaign evaluation research.
I. PRE-testing of advertising
When an advertising campaign has been developed following an advertising strategy, several pre-tests can
be executed before the campaign is placed in the media. Pre-tests test ads to to assess whether or not
they can achieve the purpose for which they are designed. They are used to optimize exposure frequency,
select appropriate stimuli, concepts or executions of a campaign, assess communication effects like
attention, carrying over information, credibility, affective reactions, activation, purchase intention,…
and/or test a finished ad (De Pelsmacker et al., 2018).
An internal evaluation by an advertising agency or advertiser can be done by means of checklists or a
readability analysis (De Pelsmacker et al., 2018). Checklists are used to test whether nothing important is
missing, whether the ad is appealing and in line with the advertising strategy. Criteria that can be used are
for example whether the brand name is mentioned enough, whether the product is shown appropriately,
whether the ad is pleasing aesthetically, whether text and visual elements are consistently saying the same
thing etc (Pickton & Broderick, 2001). Not very criterion is important for every campaign (De Pelsmacker
et al., 2018). A readability analysis tests whether an advertising message is easy to understand at first
glance since customers often pay little attention to the text in an ad. Research indicates that short
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sentences and short concrete familiar words with a lot of personal references indicate readability (Fill,
2002). Another readability analysis removes a number of words in the text and the number of correct
words a consumer can fill in indicate readability.
Communication effects can be measured in a sample of the target group by means of physiological tests,
recall test or direct opinion measurements (De Pelsmacker et al., 2018). The former test the reaction of
the body to advertising stimuli by measuring arousal and/or valence of emotions. Recall tests indicate
whether a consumer allocated attention to an ad and hence recalls an ad or an execution of an ad. In a
portfolio test, an ad is placed between 30 other ads and shown to subjects. After a given time period, the
subject is asked to recall the brands and content of ads that s/he has seen. However, when a subject
remembers an ad, this does not mean that s/he liked the ad, merely, that the ad attracted attention or
that the subject has got good memory skills. Furthermore, when involvement towards a product category
is high or a subject is aware of being tested, a subject will remember more ads or will invest more resources
in remembering ads compared to a natural setting. Also, recall tests often involve a brief test period so the
time between the exposure and the testing is not as long as the time between exposure and a buying
situation in real life (De Pelsmacker et al., 2018). Direct opinion measurement involves a jury of customers
that are asked to rate ads on elements like clarity, novelty, affective reaction, attitudes towards the ad
and brand, etc on a number of scale items. The unnatural environment of this test can make consumers
more rational or evoke a consumer jury effect which means that consumers begin to see themselves as
experts trying to rate the ads from an advertiser instead of a customer’s point of view). Opinions can also
be tested in an indirect way by means of a theatre test in which respondents have to choose twice from a
number of available items. In between the choices, they see a movie embedded with the ad(s) under
investigation. The consistency between the two choices is an indication of the effectiveness of the ad. Off
course, again, customers are aware they are being tested which can invalidate results in addition to the
unrealistic situation of the measurement.
Behavior tests like the trailer test and the split scan test measure actual behavior. In a trailer test,
customers are confronted with either an ad or a number of questions outside a supermarket (e.g. in a
trailer in a supermarket car park). To thank them for their cooperation they receive several coupons
including a coupon for the product shown in the ad they saw. The difference in redemption rate of the
coupon between the experimental (ad) and the control group (number of questions) indicates ad
effectiveness. Again, customers are aware that they are being tested which could affect their behavior. In
a split scan test TV viewing behavior of a panel of consumers is compared with actual purchases indicated
on their store card. Different consumers can be confronted to different campaigns, the frequency of
exposure can be controlled and actual behavior can be measured which makes this a very interesting
method to test effectiveness of advertising.
Pre-testing is only a guide to better advertising but it only selects the best advertisement from a collection
of tested ads. This means that it does not indicate the best possible ad, but rather the best ad from the
ads that are provided. Furthermore pre-test should happen individually and not in group so that the
opinion of other group members cannot invalidate the results. Finally, competitive actions or other
external factors are not taken into account when pre-testing ads.
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-
Test an ad or different ads to assess whether or not they can achieve the purpose for which they are
designed
Objectives
o Optimize exposure frequency
o Selection of appropriate stimuli
o Assess communication effects
o Testing a finished ad
A. internal evaluation
- Checklists
o Nothing important is missing
o Ad appealing
o Ad stands out
o Brand name mentioned enough,...?
- Readability analysis
o Reading Ease Formula: short sentences, short concrete familiar words.
o Filling in a word in the text: number of correct words indicate readability.
B. Communication effects
- Physiological tests
o Arousal
▪ Stimulating or not
o Valence
▪ Positive or negative
- Recall tests
o Portfolio test
▪ Several limitations (memory, interest, brief period, awareness of testing)
- Direct opinion measurement (affective reaction, informativeness, clarity of ad)
o Several limitations (unnatural environment, consumer jury effect) → Theatre test
Physiological tests
- Pulse sensor
- Eye tracking
- MRI
- Voice analysis
- EEG
- Facial coding
- GSR
- EMG
- Implicit association test (e.g. https://implicit.harvard.edu/implicit/ )
C. Behavioral tests
- Trailer test
o Show the ad in a trailer outside a store
- Split scan test
o Have an influence on what people see on a television screen
- Limitations of pre-testing
o Individual testing
o Effect of repetition
o Never the best possible ad
o Limited time between exposure &test
o Artificial setting
o Influence of external factors
o Consumer jury effect
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II. Post-testing of advertising
After the campaign is placed into the media, post-test can assess the effectiveness of the ad and is only
meaningful when there is a control or before measurement. Exposure measures like reach, OTS and GRP
(see chapter media planning) are also a part of the media plan. Message processing is measured by means
of recognition or recall tests. Recognition of ads can be correlated with positive attitudes towards the
brand and hither purchase intentions. During a Starch test, consumers who have indicated to have read a
magazine or newspaper are interviewed. An ad on a random page is shown and consumers are probed for
recognition and processing. For each ad, percentages of non-readers, noted, seen/associated and read
most scores are calculated. Honesty of the test subjects could be an issue. In a masked identification test
a part of a print ad is covered and subjects are asked whether they recognize the ad and whether they
know where the ad is for. Brand confusion, recognition and correct attribution scores are calculated.
Similarly, recall tests ask for recall of ads by either providing clues (aided) or no clues (unaided). Recall test
can assess whether an ad has been able to draw attention. In the Gallup-Robinson Impact test, subjects
are asked to browse to a magazine at home, the next day they are asked to recall all the ads they have
encountered in the magazine and questions are asked that indicate proved name registration, idea
penetration and conviction. In a Day After Recall (DAR) test customers are interviewed by telephone which
ads they saw on TV or heard on the radio for a specific product category. After this recall test, a recognition
test is issued in which customers are asked whether they recall seeing or hearing an ad for a specific brand.
Next, specific questions about the ad content. Behavioural measures include the amount of customers
calling a free telephone number, sending back a coupon or buying the product.
Limitations of recall and recognition tests include the relevance of recall in predicting behavior and the
relevance of isolating the effect of one ad. An ad is more easily recognized or recalled when part of a
campaign. Also when a consumer is highly involved with a product category, s/he will have higher
recognition/recall levels, especially given the limited amount of time between exposure and recall
measurement. Recognition measures are more valid than recall measures when it is sufficient for a
consumer to recognize a picture or brand in a shop to be inclined to buy the product.
-
-
Exposure
o Reach, OTS, GRP
Message processing
o Recognition
▪ e.g. Starch test, Masked identification test
o Recall: aided versus unaided
▪ Did people see and remember you advertisement
▪ e.g. Gallup-Robinson Impact test, Day After Recall (DAR) test
Behavioral measures
o e.g. calling a free telephone number, sending back a coupon, buying the product
Limitations of post-test
- Isolate effect of single aid
- Time between exposure and measurement
- Consumer’s honestly
- Product involvement
- Relevance of recall
- Message processing and buying
o It is not because you recall it, that
you liked the ad
- You only test 1 ad, it’s better to advertise a whole advertising campaign → focus on the brand
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III. Advertising campaign evaluation research
Campaign evaluation research focusses on the effectiveness of the whole campaign. In light of integrated
communications, it can be more important to assess the effectiveness of a whole communication mix
rather than that of a single ad. Campaign evaluation research focuses on brand related effectiveness
measures rather than on ad related effectiveness measures. It necessitates a before or control
measurement to truly assess the effectiveness of a campaign.
Communication effects follow the hierarchy of effects logic testing first top op mind awareness by means
of an unaided recall test, followed by an aided awareness test of known brands. Changes in attitude or
brand image are assessed by means of scale techniques. Other campaign evaluation measures are
assessments of intention to buy the brand in the near future, Net Promotor Score (NPS, “to which degree
would you recommend this brand to your friends and family?”) and level of activation (looking up
information, talking to friends, going to a store) (De Pelsmacker et al., 2018). Online panels are asked a
standardized set of question on a regular time intervals in tracking studies to assess the position of the
brand and the competing products over time or the effects of a campaign.
Behavioral effects can be measured by looking at sales, trial purchases and the degree of brand loyalty (De
Pelsmacker et al., 2018). In addition to the above effectiveness measurements, efficiency measures
indicate the extent to which the investment in an advertising campaign has had a commercial result (De
Pelsmacker et al., 2018). Advertising budgets can be related to sales but sales are also affected by other
marketing mix instruments, competitors’ actions and general market conditions.
-
-
-
Effectiveness of whole advertising campaign
Focus on brand related effectiveness measures
Before or control measurement
Measurement of communication effects
o Hierarchy of effects logic
▪ Awareness: aided and unaided
▪ Knowledge
▪ Attitude, image
▪ Intention, NPS, activation
o Tracking studies
Measurement of behavioral effects
o Sales
o Trial purchase
o Brand loyalty
Efficiency measures: advertising budgets-sales per time unit
Examples exam question
Which of the following statements is correct? A transformational message
a. consists of positive motivations such as sensory gratification, social approval or intellectual
stimulation.
b. refers to reducing or reversing negative motivations such as solving or avoiding a problem.
c. tries to stimulate consumers to buy a product immediately.
d. is more effective than an informational message. (always dependent on the context)
Discuss the following statement “Figures about digital ad spending show that it will become useless to
invest in other media channels than digital channels in the future”.
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Chapter 7: mediaplanning
By the end of this chapter you know…
- What the steps of setting up a media plan are
- How to select specific media
- What the specific criteria are of each medium
- How the context affects advertising messages
1. Some key concepts
Media describe the types of communication channels that can distribute a message. Vehicles are
particular programs, magazines etc within a specific medium.
A media plan is a document specifying which media and vehicles will be purchased when, at what price
and with what expected results.
2. Why engage in media planning?
Since it is becoming more and more expensive to buy advertising time and space, all touch points with
consumers should be as effectively and efficiently as possible (De Pelsemacker, 2018). To attract attention
of the customers, creative ads can be distributed in several media. Selecting specific media involves setting
up a media plan given a specific target group and taking into account several criteria. Specific technical
characteristics of each medium are compared as well as quantitative and qualitative criteria. These criteria
have to be considered meticulously so that advantages and disadvantages of different media can be
assessed before the specific media are chosen.
-
19% of the viewers, watches ads attentively
43% of the viewers sits in front of the TV, but don’t watch the ads
20% of the viewers zaps to other channels
18% goes to the kitchen, WC,… during the ad break
70-88% of ads skipped by PVR
1500 à 2000 message/day
➔ Attract the attention
o Importance of creativity & ESP instead/ or in combination with USP
o Use other media to distribute ads and other communication tools
o Use personal communication or new communication formats
➔ →Importance of IMC
3. Which advertising media exist?
Example New format : Native advertising
Material in an (online) publication which resembles the publication's editorial content but is paid for by
an advertiser and intended to promote the advertiser's product.
Example New format: Content marketing and storytelling
Build knowledge and trust by offering content.
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4. How to select media?
Media planning starts with the assessment of the communication environment. Which legal aspects and
regulations are applicable, which media are customers predominantly using and what are competitors
doing in terms of category spending, share of voice and media mix (De Pelsemacker et al., 2018).
Depending on the media behavior of the target group and the communication objectives, concrete,
measurable and realistic media objectives are put forward. Media objectives concern frequency, reach,
weight, continuity and cost.
-
Media= Types of communication channels that can distribute a message
Vehicles= Particular programs, magazines etc.
Media plan = Document specifying which media and vehicles will be purchased when, at what price
and with what expected results
1. Assess the communication environment (Category spending, Share of voice, Media mix)
2. Describe the target audience
3. Set media objectives (Frequency, reach, weight, cost, continuity)
4. Select the media mix
5. Buy media
Media mix criteria
- Quantitative
- Qualitative
- Technical
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4.1 Quantitative criteria
Frequency indicates how many times a consumer of the target group is expected to be exposed to the
advertiser’s message (media vehicle) within a specified time period. It is an estimate and not an objective
count of exposure. The decision how many times a target group has to be reached depends on the
effectiveness of ad frequency. The two-factor model of Berlyne (1970) predicts that cognitive responses,
attitudes and purchases wear in and wear out with increasing exposures. New stimuli can evoke
counterargumentation and need some exposure to evoke positive reactions (cfr. Mere exposure).
Repetition increases learning and reduces uncertainty. However, more frequent exposures lead to
negative reactions due to boredom and irritation. Excessive exposures can lead to advertising wear-out,
which can result in negative reactions to an ad after seeing it too much. Marketers have to balance
familiarity with a repeated message with boredom from repeating the message. Too much exposure can
create habituation, whereby the consumer does not pay attention anymore. The two-factor theory
combines the positive learning factor and the negative tedium factor showing that at some point, the
amount of boredom begins to exceed the amount of uncertainty reduced, resulting in wear-out.
Effective frequency is then the minimum number of exposures, within a purchase cycle, considered
necessary to motivate a customer to act or at least form a positive attitude. Different researchers show
different optimal effective frequency levels ranging from 1 to 3 or 15 depending on the context, the need
of the customer and novelty of the brand or campaign (Donnely, 1996). To judge how effective frequency
of a specific medium is, Morgensztern developed the β-coefficient analysis which shows the extent of
memorization of the message or the relationship between the number of exposures and the degree of
memorization. The Morgensztern beta coefficient enables the researcher to determine the percentage of
individuals that memorize a brand and at least one element of the advertising message, after being
exposed to the advertising for the first time? He developed media- specific memorisation rates and
suggested the minimum and maximum exposures for different media to be effective. Suggested contacts
for cinema are 2, for TV between 3 and 6, for print media between 4 & 9 and for radio between 5 & 14.
Total reach is the estimated number or percentage of people who are expected to be exposed to the
advertiser’s message during a specified period. It indicates how many people will be reached or are
exposed to a specific medium vehicle during a specific time period. Media planners use reach because it
represents that total number of people exposed to the marketing communication. (Useful) reach then
means how many consumers of the target group are likely to see the message, while effective reach
indicates the number of target consumers who are expected to be exposed to the advertisers message at
an effective frequency level. Reach is sometimes called coverage, a term which nicely conveys the meaning
of reach. That is, it is a measure that counts all the unique households (or people) that are covered by the
campaign. In the packaged goods industry an equivalent term is penetration, being the percentage of
households that have purchased a product in a certain time period. Reach is a percentage, although the
percentage sign is rarely used. When reach is stated, media planners are aware of the size of the target
audience. For example, if a media plan targets the 10 million of women who are 30-40 years old, then a
reach of 50 means that 50% or 5 million of the target audience will exposed to some of the media vehicles
in the media plan. Reach also measures the accumulation of audience over time. The number of audience
members exposed to the media vehicles in a media plan increases over time. For example, reach may grow
from 10 (10%) in the first week to 30 (30%) in the third week. How the audience accumulation varies
depends on the media vehicles in the media plan.
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Reach does not double-count people exposed to a message multiple times if the media plan involves
repeated ads in one media category or ads in multiple media categories.
A medium can be highly selective on the target group meaning that the audience of a specific medium
belongs to the target group. A selectivity index shows how well the target group is represented in the
medium relative to the universe.
Cost of a medium is expressed as the cost of reaching 1000 people (CPT/CPM). It is advised to not only
take CPM into account but also for example reach. Some media cost a lot less than others but as a
downside, reach much less people.
Gross rating points (GRPs) express the weight of a campaign and equals gross reach expressed as a
percentage of the target group. Gross reach is the sum of the numbers of people each individual medium
reaches, regardless of how many times an individual is reached. GRPs measure the total amount of
exposure media planners want to buy from media outlets such as TV networks. For example, the 2006
Super Bowl game received a rating of 42, which means 42 percent of U.S. television households tuned in
to the program. If an advertiser planned to run a commercial once during the Super Bowl, that ad would
appear in 42% of households. If the commercial was run only once, the reach is equal to the rating of the
program, a GRP of 42. If the advertiser's media plan called for running the ad twice during the Super Bowl,
the GRP would be 2*42 = 84 (www.admedia.org). GRP does double-count people who see ads multiple
times. Effective rating points (ERPs) is effective reach expressed as a percentage of the target group. Gross
Rating Points are very easy to calculate, they are commonly used to gauge the strength of an ad campaign,
and are generally considered to be the “currency” of media planning (Danahar, 2009). This is in part due
because they can be used across different media types. The concept of the sum of number of people a
medium reached applies equally well to newspapers, radio and magazines. However, part of the reason
the internet has struggled to gain acceptance as a mainstream advertising medium is the difficulty of
defining a GRP for the internet (Smith, 2003).
Opportunity to see or OTS is the average probability of exposure that an average reached target consumer
has.
Advertisers can choose between a continuous schedule, pulsing schedule or flighting schedule meaning
showing the ad continuously, with different levels or concentrated on a few periods throughout the
campaign period. How long people remember the message is useful to determine one of the three
possibilities. Double spotting means that the same ad is shown twice during the same programme to
increase the likelihood of obtaining effective frequency. Roadblocking means placing the same ad on
different channels at about the same time so that zapping customers will not be able to avoid the ad.
-
Total reach: The number or percentage of people who are expected to be exposed to the
advertiser’s message during a specified period
(Useful) reach: How many consumers of the target group are likely to see the message
Effective reach: Number of target consumers who are expected to be exposed to the advertisers
message at an effective frequency level.
Frequency: Indicates how many times a consumer of the target group is expected to be exposed to
the advertiser’s message (media vehicle) within a specified time period.
Effective frequency : minimum number of exposures, within a purchase cycle, considered necessary
to motivate the average prospect in the target audience to accomplish an advertising objective.
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60% 24%
Positive learning effect: people become a fan
Negative tedium factor: people get bored
➔ What is the net effect? How many times can I air the ad before the net effect becomes negative?
Extent of memorization of the message (β-coefficient analysis -Morgensztern): The relationship between
the number of exposures and the degree of memorization is analyzed
Mn = 1 – (1-β)n
Mn: memorization after n exposures
β: medium- specific memorisation rate
Medium selectivity: the extent that a medium is directed towards the target group.
Selectivity index: shows how well the target group is represented in the medium, relative to the
universe
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-
-
-
Cost:
o
o
= Is expressed as the cost of reaching 1000 people (CPT)
In practice: CPM (Roman symbol)
▪ CPM = cost of the medium/Total reach x 1000
o CPM per thousand people of the target market:
▪ CPM – TM = Cost of the medium/useful reach x 1000
Gross rating points (GRPs)
o = expresses the weight of a campaign
o = Gross reach* expressed as a percentage of the target group
o Gross reach (*) = sum of the numbers of people each individual medium reaches, regardless
of how many times an individual is reached
Effective rating points (ERPs)
o = Effective reach expressed as a percentage of the target group
OTS: opportunity to see
o = the average probability of exposure that an average reached target consumer has.
Continuity possibilities:
- Continuous schedule
- Pulsing schedule
- Flighting schedule
- How long people remember the message is useful to determine one of the three possibilities
- Double spotting & roadblocking
o Show the add 2 times in the same add block
Continuous
Pulsing
Flighting
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DEMONSTRATION OF INNOVATION IN MAGAZINE OR NEWSPAPER ADVERTISING
- As part of the 2012 brand campaign, Audi created a number of print ads and a 16-page insert.
- Only 10% of the overall media budget devoted to print, the ads needed to be as comprehensible and
memorable as possible
- Published in newspapers and magazines highly relevant to the target audience in order to reach a
high level of effectiveness
- First wave of ads together with start of the world’s largest automotive trade fair, the “Internationale
Automobil-Ausstellung” (IAA) - high attention rate
- To achieve high impact, the print ads were booked into major publications throughout the EU5
countries with readers consistent with Audi’s target group and potential consumers in general.
- The choice of publications allowed Audi to contribute to the key message of the campaign “Vorsprung durch Technik“.
- Each ad pointed out a single aspect of making Audi a leading manufacturer of high-end automobiles
while the insert covered a wide range of attributes found throughout the whole campaign.
- All topics showcased could also be found on display at Audi’s highly acclaimed stand at the IAA and
in the emotive TVC, linking all parts of the campaign within one message: Audi is a technological
leader, enhancing tomorrow’s mobility and, with this, people's lives.
- Using the URL of Audi’s extensive online platform throughout all print media, this gave the recipient
the possibility to learn more about Audi’s innovative technology, thus engaging the target audience
and having an effect far beyond the limits of print media.
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4.2 Qualtitative media
Qualitative criteria are the extent to which the media are capable of building a brand image and a brand
personality, the emotional impact the medium has on the audience, how involved the audience are with
the medium, whether the audience is active or passive and whether the audience pay a lot or minor
attention to the messages conveyed by the medium (De Pelsmacker et al., 2018). In addition, they indicate
whether the vehicle can add value to the brand or product due to the context in which the ad or product
is shown, whether the quality of reproduction is sufficiently high, how long the message life is, how much
and what type of information can be conveyed, whether or not the medium is characterized by a lot of
clutter, whether the medium can be adapted for several geographical regions and whether the medium is
more effective during certain time periods. (De Pelsmacker et al., 2018).
4.3 Technical media
Technical criteria refer to the production costs of the message and the convenience of buying the medium
(De Pelsmacker et al., 2018). Each medium has got a particular lead time (i.e. time between beginning of
process to end of production process), cancellation time etc.
5. Media Context
An advertising is part of a receiver context and a medium context.
The receiver context refers to the situational circumstances in which a person is exposed to an ad.
The medium context refers to the characteristics of the content of the medium in which an ad is inserted
as they are perceived by the individuals who are exposed to the ad (De Pelsmacker et al., 2018).
➔ Medium context influences how people perceive, interpret and process an advertising message
Example exam question
Assuming effective frequency equals 3, effective reach is 45%.
Reach of the campaign is 54%.
Useful reach of the campaign is 19%
All above statements are correct.
Exposures Reach
1
2
3
4
5
6
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20%
15%
10%
5%
3%
1%
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Chapter 8 Event marketing & sponsorship
1. Event marketing
Event marketing is a form of experiential marketing of a brand, service, or product through promotional
events.
Sponsorship is a promotional technique in which the sponsor provides funds, goods, services, and/or
know-how
An event is a brand experience targeted toward specific audiences. It is used as a communication tool
whose purpose is to disseminate a company’s marketing messages by involving the target groups in
experiential activities (Drengner, Gaus, and Jahn, 2008). This means that their members are themselves
active during a so-called marketing event, e.g., by doing sports or being creative, thus offering the
opportunity for social interaction among the participants as well as between participants and the company
(Close, Finney, Lacey, and Sneath, 2006). Most events offer prolonged interaction with a brand, its people,
products and/or services. As such, they are a valuable tool to build brand affinity by deepening people’s
exposure to—and relationship with—the brand. It differentiates from marketing of events, which indicates
the tasks (from organizing to promoting the event) that are set up to conduct an event.
Events are organized to attract customers’ attention to a company’s new products or brands through
special live events where customers interact (with several touch points) with a product or brand face to
face, such as concerts, sports events, parades, and parties (Liu et al., 2017). Brands use event marketing
entertainment to reach consumers through direct hand-to-hand sampling or interactive displays. In
contrast to traditional advertising which concentrates on mass non-personal media, event marketing
targets specific individuals or groups at gathering spots to make quality individual impressions. Event
marketing strategies leave a lasting, brand-focused impression of fun and provides attendants with an
experience that will resonate in their minds. It is effective because it engages consumers while they are in
a willing, participatory position. The key is then to identify the target audience correctly and create an
experience that remains in participants’ memories. By finding an opportunity to interact with the right
demographic of people – both current customers and prospective buyers – a brand can build favourable
impressions and long-lasting relationships.
Event marketing spending increases yearly (Miller and Washington, 2012; Sneath, Finney & Close, 2005).
Event marketing's increasing popularity among marketers is caused by changes in the marketing
environment as less attention is paid to conventional advertising and an increasing focus on experiential
consumption (Wohlfeil and Whelan, 2005).
-
-
= Communication tool whose purpose is to disseminate a company’s marketing messages by
involving the target groups in experiential activities”
o ≠ marketing of events
Organizing an event of 1 day to interact with a crowd, customers
Attract customers’ attention to a company’s new products or brands through special live events
where customers interact (with several touch points) with a product or brand face to face, such as
concerts, sports events, parades, and parties
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1.1 Objectives
Event marketing is part of the organization’s overall marketing plan in which events are used as one of the
tactics to increase sales, improve clients’ perception of the brand or bring customers together. The goals
and objectives of the event should support the goals and objectives of the organization hosting it. Most
important objectives to organize an event are corporate, marketing, media or personal (Pope, 1998).
Corporate objectives include increasing public awareness, enhancing corporate image, or showing
community involvement. Marketing objectives could be to reach specific target markets and educate the
participants about a topic or product(s), to position one’s brand or to increase sales by aligning and
inspiring the participants behind a new strategy, initiative or product. A successful event marketing
campaign provides value to attendees beyond information about a product or service. It can make
customers feel like they are receiving a benefit and not just attending a live-action commercial. Attending
an event has a positive effect on brand experiences. Participants experience sensorial stimulation by
means of bodily or interactive experiences, they engage in analytical and imaginative thinking or
experience emotions, which are all sources of brand equity (Schmitt & Zarantonello, 2013). Event
marketing is especially suitable for affecting brand image or the noncorrelated denotative and connotative
attribute associations related to an object (Biel, 1992) because it is a communication tool mainly aimed at
addressing customers emotionally. The emotions caused by the marketing event influence the event's
image or attitude towards the event, which in its turn affects the attitude towards the organizing brand.
(Drenger et al., 2008). Favourable brand attitudes can then lead to higher purchase intention (Sneath et
al., 2005; Zarantonello, 2013). Events have a positive effect on a company’s revenue and on brand value
but this effect diminishes when brand age grows (Liu et al., 2017). Drenger et al., (2008) show that inducing
flow or the highly enjoyable psychological state that refers to "the holistic sensation that people feel when
they act with total involvement" (Csikszentmihalyi, 1975) during the event by encouraging participants to
actively participate makes people experience more positive emotions which enhance the evaluation of the
event and of the brand (Drenger et al., 2008). Media objectives include generating visibility, generating
publicity and counter negative publicity or enhancing ad campaigns. Events can provide networking
opportunities for the participants and the brand, which could benefit publicity or increase participants’
goodwill. The best, most creative events create interactions that not only reflect positively on the brand
at the time, but also generate a buzz long after the event is over. Finally, events can be organized because
of personal management interest .
Martensen et al. (2007) show that the emotional responses (both positive and negative) created in an
event experience have a spillover effect brand emotions. Interestingly, the link between negative emotions
is stronger than the link between positive emotions so it is important that the event does not activate
negative feelings. The event attitude also has a strong positive impact on the brand. Martensen et al.
(2007) also showed that involvement is crucial for the participants’ response. Participants who are highly
involved in the event will react more positively in relation to the brand than low-involved participants
would, because they are more susceptible, sensitive, and attentive toward the event stimuli and the
experience (Meenaghan, 2001). The event attitude increases when the level of involvement increases
(Martensen, 2007). In addition, the higher level of involvement, the more positive emotions and the less
negative emotions (Martensen, 2007). Finally, a good fit between event and brand is crucial (Martensen,
2007). A good fit between the brand and the event increases participants’ responsiveness toward the
message as well as the activation of the emotional moods that is the purpose of the event.
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-
-
Fulfills four objectives
o Corporate objectives
▪ e.g. increasing public awareness, corporate image, community involvement
o Marketing objectives
▪ e.g. reaching target markets, brand positioning, increasing sales
o Media objectives
▪ e.g. generating visibility, generating publicity and counter negative publicity,
enhancing ad campaigns
o Personal objectives
▪ E.g. management interest)
Favorable brand attitudes leading to higher purchase intention
Positive effect on brand experience (sensorial stimulation, analytical and imaginative thinking,
emotions, bodily and interactive experiences) which is a source of brand equity
Positive effect on a company’s revenue and on brand value but this effect diminishes when brand
age grows
1.2 Types
Events can include competitions or contests, product launches and product sampling. Events can include
meetings, trade shows and conferences for participants (often invited) with common interests that
determine the theme and content of the event. Examples might include an internal meeting for the sales
team of a multi-national insurance company, an annual user conference sponsored by a global software
company, or even an academic conference. Other examples of events are open days, recruiter events,
award ceremonies, networking events, sport events, road shows, press conferences, exhibitions, concerts,
parties, fairs, corporate entertainment, team building, charity fundraisers, street events, pop-up shows, …
-
-
Various forms
o Competitions/contests
o Product launches, product sampling
o Open days, conferences, recruiter events, award ceremonies, networking event, road shows,
press conferences, exhibitions, corporate entertainment, team building, charity fundraisers,
trade shows, street events, pop-up shows, …
96 % U.S. companies; annual event-marketing spending US $37 billion
o E.g. Red bull is at a lot of events
1.3 How to measure effectiveness of event marketing?
To test whether event marketing was successful both exposure, communication & behavioral results and
sales can be measured. Calculating the amount of people attending an event or read/heard about the
event by media coverage can give an indication of the reach and frequency of the event. Awareness and
attitude tests could check whether brands are top-of-mind or positively evaluated as a consequence of the
event. The amount of internet hits post event or samples that have been distributed give an indication of
how many customers are willing to engage in behavior during or after the event. Market share or sales
could increase following the organization of an event especially when it is part of a larger consistent
communication strategy.
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-
-
-
-
Main objective: build brand awareness
Exposure
o Number of people attending an event (reach and frequency)
o Resulting from media coverage of the event (number of lines, pages, mentions, …)
Communication results
o Awareness
o Attitudes, opinion, image
Behavioral measures
o Internet hits post event
o Samples
Sales and market share
2. sponsorship
By engaging in sponsorship, a company invests in cash or kind in an activity, in return for access to the
exploitable commercial potential associated with this activity (De Pelsmacker et al., 2018). Sponsorship
relates brands to brands to specific event or causes which can result in an image transfer from sponsored
object to brand (Gwinner & Eaton, 1999). Sponsorship differs from charity, which entails donating cash or
kind without advertising or promotion of brands or services in return. Sponsorship also differs from value
marketing which is a societal marketing strategy in which a company link its activities to a philosophy of
general societal interest. The company positions itself based on a value system that is often not productrelated (De Pelsmacker et al., 2018).
Sponsorships may be directed toward consumers, channel members, financial institutions, government,
community, and employees (Gardner and Schuman 1987). Sponsorship targets not only active participants
of an event but also live spectators and media followers (customers, financial institutions, community
leaders, employees, channel members). Which specific sponsorship projects are selected depends on the
specific target groups and the objectives the sponsorship entails.
Sponsorship messages are easy to understand and often only include a brand name and/or logo. Being
exposed to this brand name during a sponsored event for example can increase familiarity with the brand
because of multiple exposure to the brand name (cfr mere exposure, Zajonc, 1980). Liking and subsequent
preference formation is then accomplished without awareness of the preference-formation process
(Bornstein 1989). This could create brand preference by means of the mere exposure effect. Olson and
Thjomoe (2003) found that participants appeared to form favorable evaluations simply because of
exposure to brands (particularly for fictitious brands). Their results also showed indicated that individuals
who had processed additional brand information by means of low involvement processing did have greater
attitude change than those who were exposed to the information but had not processed it. While mereexposure effects are relevant to particular sponsorship situations (and may be influential in the individual's
prior experience with the brand), it is perhaps low-level processing and the reactivation of previously held
brand associations that have the broadest application in sponsorship communication processes (Cornwell
et al., 2005). Congruency theory predicts that people best remember information that is congruent with
prior expectations (Srull 1981), which has been supported in a sponsoring context showing that congruent
sponsorships have high recall levels. Articulating the relational context and meaning (e.g. Bain and
Humphreys 1988) between sponsor and event can influence memory. Especially when there is an
incongruent relationship between sponsor and event, articulation of the reasons for the sponsorship
relationship resulted in improved recall for the relationship (Cornwell et al. 2005). Heider's (1958) balance
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theory can also explain how sponsorship works. It argues that individuals strive for consistency and avoid
perceived inconsistency in behavior and attitude. In sponsorship, the individual will seek a balanced
relationship between the event and the sponsor. When there is imbalance between a preexisting positive
attitude toward an event or organization and a neutral, or even negative, attitude toward a firm that are
combined in a sponsorship, the individual may seek harmony by reconsidering the attitude toward the
firm and adjusting it in a positive direction (the desired outcome), or the individual could reconsider his or
her attitude toward the event or organization and adjust this in a negative direction (Cornwell et al., 2005).
There could also be a meaning transfer (McCracken's, 1989) so that "meaning" moves from the event to
the sponsor's product when the two are paired during an event, and then to consumers in their roles as
spectators or participants. Social identity theory which argues that people will place themselves and others
into social categories such as sports participant, organizational member, or political group (Tajfel and
Turner 1985) suggest that that people tend to make social classifications because it provides a systematic
way to define others and to locate oneself in the social
environment (Cornwell et al., 2005). Therefore, when an individual identifies with an organization, he or
she becomes vested in its successes and failures and this, in turn, led to purchase commitment for the
products of (Ashforth and Mael 1989). In addition, experiencing an event has a higher chance of being
stored in memory of spectators and participants compared to exposure to an ad (Cornwel and Maignan,
1998). If the brand and the event are highly congruent, sponsorships are consistent with the expectations
of the target group resulting in higher recall of the sponsorship. There could also be a carry-over effect
between attitudes and emotions experienced during the event to the brand or cooperation (cfr. Event
marketing) which is stronger if involvement of the participant is higher (Hansen & Scotwin, 1995). The
positive mood in a sponsorship environment could also enhance the positive image of the sponsoring
brands (De Pelsmacker, Geuens & Anckaert, 2002).
-
= investment in cash or kind in an activity, in return for access to the exploitable commercial
potential associated with this activity
Relating brands to specific event or cause: Image transfer from sponsored object to brand (Gwinner
& Eaton, 2013)
≠ charity
2.1 Objectives
-
-
Fulfills four objectives
o Corporate objectives (e.g. increasing public awareness, corporate image, community
involvement, build trade relations, build goodwill, enhance employee relations and
motivations)
o Marketing objectives (e.g. increasing product awareness and attitudes, brand positioning,
increase trial and sales)
o Media objectives (e.g. generating visibility, generating publicity and counter negative
publicity, enhancing ad campaigns, facilitating prospecting sales force)
o Personal objectives (management interest)
Mute non-verbal medium
Less effective in gaining attention but easy for the consumer to understand
Target groups= active participants, live spectators, media followers (customers, financial institutions,
community leaders, employees, channel members)
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Sponsorship can fulfill four objectives. Corporate objectives are targeted to the general public, channel
members and trade relations, and employees. They include increasing public awareness and/or corporate
image, demonstrating community involvement, building trade relations, demonstrating trade goodwill;
enhance employee relations etc. Promoting corporate image and increasing goodwill with a variety of
target groups are important as well as satisfying internal objectives like building staff pride to ensure a
company can retain and attract high-quality staff in the future. Sponsorship deals can also increase product
awareness and attitudes, brand positioning, and can increase trial and sales. Image effects are often only
visible in the long run. Brand recall of the sponsoring brand is not higher immediate after an event
(Quester, 1997) but it can take some time before sponsorship has an effect. Immediate effects can be
triggered by selling a product at an event, which will obviously temporarily increase sales or market share.
These marketing objectives (product awareness, attitudes, brand positioning, brand image and trial/sales)
are similar to advertising objectives but the latter allows greater control over the content and the
environment of the message, which is explicit and direct (de Pelsmacker et al., 2018). On the other hand,
advertising is more cluttered and expensive and requires more elaborate processing of the message.
Sponsorship is especially effective when incorporated in a bigger communication effort since it is a mute,
non-verbal medium in which no clear, explicit messages can be transferred. Sponsorship is not that
effective in gaining attention since spectators are distracted from the message when engaging in the
sponsored event. However, when the sponsor is strongly associated with the sponsored event or cause, a
strong positive brand or corporate image can emerge. Media objectives include generating visibility,
generating publicity and counter negative publicity, enhancing ad campaigns and facilitating prospecting
sales force. Increasing media coverage is crucial to receive a lot of exposure, which results in an increase
in broadcast driven sponsorships. Similar to event marketing, sponsorship deals can originate from
management interest.
Balance = people want to be consistent (like the brand, but don’t like the event…)
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2.2 Types
Different types of sponsorships exist: sponsorships can be event related, cause related, broadcast or
ambush. Most sponsorship spending is allocated to sport event sponsorship, followed by entertainment,
causes and arts (De Pelsmacker et al., 2018).
Event sponsorships entail sponsoring sport, cultural, art or entertainment related events. Very specific
market segments as well as broad audiences can be reached by means of sponsoring events. Especially
the extensive media coverage of sport events lead to high levels of exposure of brad target groups to the
sponsor’s name (De Pelsmacker et al., 2018). Arts sponsorship attract less media coverage and are
especially targeted at niche markets. Both event marketing and event sponsorship use events to achieve
their respective goals but event marketing are self-staged events while event sponsorship involves the use
of events staged by a third party independent of the company (an event organizer) to convey the messages
aimed at the target group. Event sponsorship is subject to the restrictions defined by the sponsorship
contract between event sponsor and organizer (e.g., number and size of perimeters) (Mau, Silberer, and
Weihe, 2006). Furthermore, spectators of an event usually not pay much attention to the sponsor's
message. Correspondingly, the short contact period of the target group with the advertising medium limits
the content of the message in most cases to the display of a logo or a slogan in the event context (Lardinoit
and Derbaix, 2001). Therefore, event sponsorship is not suitable for transmitting extensive information
whereas in event marketing, due to the selfstaging of the event, the active participation of the target group
members and their intense social interaction with the company, the company can communicate even
detailed product information. Furthermore, the organizers of major events often attract a large number
of sponsors in order to maximize their profit so sponsors compete with each other for the attention of the
target groups, which potentially affects the communicative impact in a negative way. Marketing events
that are organized by the company itself can minimize the number of competing messages or even
completely rule them out. Finally, in event sponsorship, the target group cannot be actively included in
the communication process, thus favourably promoting the communicative impact, while this is possible
in event marketing. Events offer opportunities for personal interaction with products.
Cause related sponsor ships differs from charity in the sense that the former are integrated in the
company’s communication strategy. Mush sponsorship refers to Municipal, University, Social and Hospital
sponsorship or the sponsoring of good causes. In transaction-based sponsorship, the company invests a
pre-specified amount of money on a good cause every time a consumer buys one of the company’s
products (De Pelsmacker et al., 2018). Cause related sponsorship is rather a combination of PR, sales
promotion and corporate philanthropy, based on profit-motivated giving to causes (De Pelsmacker et al.,
2018). The emphasis is especially on corporate or brand image resulting from the link between the
company or the brand and the good cause sponsored.
Broadcast sponsorships in which a company sponsors a show is becoming increasingly popular.
Billboarding refers to the fact that the sponsoring company is mentioned in the beginning or the end of
the program (“this programme was produced with the kind co-operation of company X”). Branded
entertainment or the integration of editorial content and brand messages in entertainment can entail
brand or product placement (paid inclusion of branded products or brand identifiers through audio and or
visual means within mass media programs (Karrh, 1998) or even advertising funded programmes in which
a programme is completely build around a brand. Brands can also be integrated in games (‘ingame
advertising’) or games could be specifically designed and created to promote a brand (‘advergames’).
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Ambush marketing refers to a planned effort by a company to confuse the consumer regarding its
affiliation status and to associate indirectly with an event in order to gain recognition or benefits
associated with begin an official sponsor (Irwin et al., 2002). Sponsoring the media covering the event,
sponsoring one part of the event or overstating the organisation’s involvement by means of supporting
advertising or sales promotions during the event, buy advertising spots that are embedded during the
event, showing logo’s or images associated with event etc are all examples of ambush marketing (De
Pelsmacker et al., 2018). Especially for big events, communication efforts of the official sponsors are
affected by their competitors' ambush marketing activities, threatening the identification of the sponsor
(Kinney and McDaniel, 1996).
Event
Cost-effective
Broad and specific
market segments
High level of
exposure
Trouble with
employees
Scandals of
sportsmen or
women
Cause-related
Cost-effective
Broad and specific market segments
Medium level of exposure
Emphasis on brand image/ attractretain customers
Only when fits company
competencies/ long-term strategic
objectives
Integrity, transparency, sincerity,
mutual respect, partnership, mutual
benefit
Types broadcast
- Billboarding
o Sponsor, in the beginning of the
program you see ‘this is sponsored
by..’
- Product/brand placement
o The product is placed within a show
(obviously)
- In-script
o It is all about the products
o vb Dagelijkse kost en Delhaize
-
Broadcast
Expensive
Broad and specific
market segments
High level of exposure
Long term to be
effective
Paid/hidden - ethical
considerations
Ambush
Cheap
Broad and specific
market segments
Medium level of
exposure
Can be illegal
In-prize
o When you win a prize in a tv-show
Non-spot advertising
MUSH sponsoring
o For good causes
Transaction based sponsoring
o For each product you buy, they give a
specific amount to a good cause
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Value marketing
- A company links its activities to a philosophy of general societal interest.
- Positioning on a value system, often not related to the product
Advergames & In-game advertising
- Advergames: videogame is build around a brand
o computer games specifically created to function as advertisements to promote brands, where
the entertainment content mimics traditional game forms
o 3 billion $ business in 2009, 7,2 billion in 2016
- In-game advertising: brand promoted in a game
o cfr. Brand placement
- e.g. The Chiquita game
o Chiquita obtained the Rainforest Alliance Certificate and developed a 5-minute advergame
o Players must build up their own plantation and grow bananas the way Chiquita promotes
o Ethical business promoted in an experiential way; consumers can experience and talk about it
Ambush marketing
- Pretending you sponsor while actually you don’t
- Pretending you’re a big sponsor while you’re a small
2.3 Assessment criteria
To select sponsorship deals first criteria have to be defined and graded in importance. Each sponsorship
proposal should be scored on the relevant selection criteria. A summated score should then allow
proposals to be ranked and chosen (de Pelsmacker et al., 2018). Some criteria like sponsorship budgets,
supporting marketing budgets, compatibility with the company’s strategic objectives, fit between the
event and brand names, image and target group should always be taken into account. Other assessment
criteria could be linked to a specific company or type of sponsorship. Some companies are more interested
in media exposure while others want to stimulate employee’s interest.
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2.4 How to measure effectiveness of sponsorship
Exposure, as well as communication results and sales and market share are an indication of the
effectiveness of sponsorship. Exposure can be measured through the amount people attending an event
(reach and frequency) or resulting from media coverage of the event (number of lines, pages, mentions,
…). Exposure to a sponsor’s name or loge does not equal effectiveness since spectators pay less attention
to the environment of the event, like the name of the sponsor (De Pelsmacker et al., 2018). Communication
results can be measured by means of an awareness test or correct attribution test. The link between the
image of the brand and the image of the event can be measured. The persuasive impact of a sponsorship
equals the strength of link times the duration of link times the sum of the gratitude felt due to link and the
perceptual change due to link. The stronger the link between the sponsor and the sponsee the more
impact a sponsorship has (de Pelsmacker et al, 2018). Impact of a sponsorship is measured by the duration
of the link with a longer duration indicating a higher impact and hence higher persuasive impact. Sales and
market share can also indicated long-term effectiveness. In addition, reactions of the individuals who
participated in the event can be valuable, especially when it comes to hospitality sponsorship or
sponsorship targeted at employees (De Pelsmacker et al, 2018).
-
-
-
Main objective: build brand awareness and/or improve image by link with event
Exposure
o Number of people attending an event (reach and frequency)
o Resulting from media coverage of the event (number of lines, pages, mentions, …)
Communication results (cfr advertising campaign tests)
o Awareness
o Correct attribution (aided, unaided, sponsor confusion)
o Image
o Persuasive impact = Strength of link x duration of link x (gratitude felt due to link +
perceptual change due to link)
Sales and market share
Feedback from participating groups
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Chapter 9 Publicity and Public relations
Publicity is a type of promotion that relies on public relations effect of a news story carried usually free
by mass media.
Public Relations (PR) is a communication tool to create and maintain goodwill of an organization's
various publics (customers, employees, investors, suppliers, etc.).
1. Publicity and PR
Public Relations or PR is a communications tool that is used to promote the goodwill of the firm as a whole.
It projects the personality of the company and manages the reputation of the company (De Pelsmacker et
al., 2018). Publicity is the free media coverage you get from a PR campaign. PR is a two-way form of
communication aimed at developing a positive reputation with the public through various unpaid or
earned communications, including traditional media, social media, and in-person engagements (Haywood,
1998). It is a process of continual and reciprocal exchange between the organization and its key publics
(Grunig, 1993) A company can learn from the public that it conveys information to. PR also helps with
defending a company’s reputation during a crisis that threatens their credibility.
PR is a planned and sustained effort to establish and maintain good relationships, mutual understanding,
sympathy and goodwill with publics, audiences or stakeholders (De Pelsmacker et al., 2018). It can be seen
as a tool of relationship management as it establishes and maintains mutually beneficial relationships
between an organization and the publics on whom its success or failure depends (Cutlip et al., 1994).
Successful relationships involve mutual benefits for both an organization and its key publics (Grunig, 1993).
Grunig (1993) also suggests that for public relations to be valued by the organizations it serves,
practitioners must focus their efforts upon developing long-term behavioral relationships between
organizations and their key publics, rather than relying solely upon symbolic activities designed to enhance
organizational image.
PR is different from other marketing communication tools as it is a non-commercial approach that is rather
aimed at effecting a broader public on the long term. It is a complex communication tool with a variety of
objectives and target groups that have to be taken into account (De Pelsmacker et al., 2018). PR is a very
important corporate communication tool and plays in vital role in integrating the company’s
communication efforts (De Pelsmacker et al., 2018). Besides creating or maintaining corporate identity
and image, other objectives could be to show the company’s standing as a good corporate citizen,
maintaining good relations with the media or suppliers or looking after internal communications by
providing information, training or motivating employees. Engaging in PR can build corporate identity,
goodwill, credibility, trust. It also increases public visibility (De Pelsmacker et al., 2018). Ledingham and
Bruning (1998) showed that PR centered around building trust, demonstrating involvement, investment,
and commitment, and maintaining open, frank communication between the organization and its key
public impacts the stay-leave decision in a competitive environment. The public of PR is not only current
and potential customers but also includes other groups of people who can affect the image of the company
like employees, investors, suppliers etc. Different types of PR are Internal, External and marketing PR.
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Example Durex
- Durex launched a campaign calling for the "world's first official safe sex condom emojis" in a bid to
get young people to talk about safe sex.
- "Emojis are a crucial part of how young couples connect and research suggests that the creation of
official safe sex emojis are vital to inserting messages around protection into their sexual
conversations," Durex said in a press release at the time.
Public Relations
- PR = communications tool that is used to promote the goodwill of the firm as a whole. PR projects
the personality of the company, it is the management of reputation.
- Publicity = free media coverage you get from a PR campaign
- Two-way form of communication
- Objectives
o Provide information, training, motivation
o Build corporate identity, goodwill, credibility, trust
o Increase public visibility
- Differences with the other marketing communication tools:
o Long term effectiveness
o Non-commercial approaches
o Broader public
▪ Internal (employees, shareholders, etc)
▪ External (General public, Investors, Press, etc)
▪ Marketing (Suppliers, Retailers, etc)
2. strengths & weaknesses
PR targets important stakeholders and difficult-to-reach audiences such as opinion leaders, financial
analysts and investors who are often not affected by advertising or other direct communication tools (De
Pelsmacker et al., 2018). By following important trends, PR can help present the company as a good citizen
which will contribute to corporate image and reputation (De Pelsmacker et al., 2018). PR is very important
in crisis situations. Since the occurrence of crises are increasing, preparing for crisis management becomes
a more important task for PR managers (De Pelsmacker et al., 2018). Before the crisis occurs, the company
should create a reservoir of goodwill that can be used when the crisis occurs. During a crisis some
elementary communication rules apply like designate a single spokesperson, tell your story first and be
honest and communicate what the company does to contain the crisis (Lukaszewski, 1997). PR can be
more flexible than advertising or sales promotions since less strict regulations exist for PR than for other
communication tools (De Pelsmacker et al., 2018). Since media coverage is free, PR is rather cost-effective
to reach a broad audience. Finally, PR is seen as an objective communication tool so audiences are more
inclined to believe a PR message than a message spread by a paid medium.
As a weakness, the effectiveness of PR is hard to measure. The amount of media coverage can indicate
how many people are reached but does not give an indication on the long term effectiveness of the PR
message on for example building goodwill. Also the company has no control over the content of the press
coverage of news releases. Journalists can adapt the original message that is send by the PR department
or change the context or style of the message (De Pelsmacker et al., 2018).
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Public relations
- Good citizenship
- Advice important trends
- Difficult-to-reach audiences
- More objective
- Cost-effective
- Message flexibility
- Crisis management
3. Internal PR
Internal PR is aimed at internal stakeholders such as employees and their families and shareholders (De
Pelsmacker et al., 2018). Internal PR informs employees about the company’s strategic priorities, specific
marketing actions or major decisions and the role they are playing in them. Employees should be aware of
the marketing actions and other company decisions that could be affecting them so they can accept these
decisions and help carry out these decisions (De Pelsmacker et al., 2018). It builds corporate image and
helps train and motivate employees to carry out these objectives (De Pelsmacker et al., 2018).
Internal PR efforts include non-personal and written communications like direct mailing, bulletin boards,
in-house newsletters, annual reports, gadgets, idea boxes, surveys, house-style material etc. It can also
include personal and oral communications like training programs, team meetings, social activities, open
door policies and internal presentations
-
-
-
Inform employees about the company’s strategic priorities, specific marketing actions or major
decisions and the role they are playing in them, and to train and motivate them to carry out these
objectives
Newsletters for employees, students…
Will create goodwill
Building corporate image
Non-personal and written communications
o e.g. Direct mailing, Bulletin boards, In-house newsletters, Annual reports, Gadgets, Idea
boxes, Surveys, House-style material
Personal and oral communications
o e.g. Training programs, Team meetings, Social activities, Open door policies, Internal
presentations
4. External PR
External PR is direct towards the various types of external target groups that are labeled public affairs,
financial and media
4.1 Public affairs
Public affairs is a management function directed towards the societal and political relations of the
company (De Pelsmacker et al., 2018). It has the objective to increase public visibility, build a good
corporate image, build good contacts and relations with different stakeholders and build goodwill with the
public by informing, and influencing attitudes and opinions.
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External PR targeted at public affairs include for example corporate advertising or organizing corporate
events. Companies can send out annual reports, newsletters, flyers, brochures or to inform local, regional,
national and international customers, governments and regulatory bodies, pressure groups such as
ecological, ethnic, linguistic and consumer interests groups. By sponsoring particular events or good
causes, setting up meetings or lobbying with interesting parties, interesting trends and issues related to
government decision-making and opinions and attitudes of the general public can be studied.
-
-
Public affairs = management function directed towards societal and political relations of a company.
Goal
o Public visibility
o Building corporate image
o Building good contacts, relations with different stakeholders
o Building goodwill public by informing, and influencing attitudes and opinions
Corporate advertising, corporate events
Annual reports, Newsletters, Flyers, brochures
Sponsorship, Lobbying, Meetings
4.2 financial
Financial PR is a management function directed towards financial audiences aiming at giving information
and building and maintaining confidence and trust. By setting up meetings or spreading financial
newsletters and annual reports or corporate advertising the long-term money raising potential of a
company can increase
-
-
Financial PR= management function directed towards financial audiences
Goal
o Give information
o Build and maintain confidence and trust
Meetings
Newsletters and annual reports
Corporate advertising
4.3 Media
Media PR is a management function directed towards radio, TV and trade press. It is aimed at gaining
favorable publicity, a good corporate image, and an increased goodwill zo that marketing related news will
be covered. Good media PR can result in positive comments during the introduction of a product, can
created goodwill for the company’s activities and can generate publicity for a range organizational events,
activists and sponsorship programs. The attention of the media can be drawn by giving out press kits and
press releases, interviews or Video News Releases (VNR) or Radio News Releases (RNR).
-
-
Media PR= management function directed towards radio, TV and trade press
Goal
o Favorable publicity
o Building corporate image
o Building goodwill by informing, and influencing attitudes and opinions
Draw attention of the media by
o Press kits & press releases
o VNR & RNR
o Interviews
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5. Marketing
Marketing PR is linked to a direct or indirect profitability of the PR activity (De Pelsmacker et al., 2018)
while the above mentioned forms of PR are primarily aimed at maintaining good relations and creating
goodwill for all kind audiences who may be important for the company in the long run (De Pelsmacker et
al., 2018). Marketing PR is directly related to selling products and/or supporting brands and/or supporting
introduction of new products. It has both primary and secondary audiences meaning that in some
occasions media or customer target groups can be more important than for example the financial audience
but still the latter can be confronted with the PR message. As, an individual can belong to more than one
public at a time, consistent PR communication across audiences is crucial to avoid contradictory messages
to the same member of different publics (De Pelsmacker et al., 2018). Examples of marketing PR are
organizing product events, sponsorship, product placement, meetings and newsletters.
-
Marketing PR is directly related to selling products and/or supporting brands and/or supporting
introduction of new products
Primary and secondary audiences
Consistent PR communications
Product events, Sponsorship, product placement
Meetings, Newsletters
6. How to measure effectiveness of PR?
Effectiveness of PR can only be measured when clear objectives have been defined. This implies that shortterm or longterm awareness, opinions, attitude or goodwill changes of the targeted public should be
measured (De Pelsmacker et al., 2018). In general the Evolution of market share is not a good indicator
since it is not an objective of PR and market share is influenced by other instruments making it hard to
pinpoint the specific effect or the PR effort. The result of PR activity is generally measured by three
indicators. Input indicators measure PR efforts like the amount of stories that are send out, the amount of
interviews that are given or the amount of supermarkets that are visited. Output indicators shows the
amount of media coverage or publicity in terms of press space, TV time, stories length etc. Achievement
indicators measure the extent to which a pre-specified objective has been met with a public of interest.
How many people of the target audience were reached, was there a change in brand awareness, opinions,
attitudes, behavior, image etc. When organizations focus public relations efforts on developing long-term
behavioural relationships, benefit-cost analyses can be used as a means of determining the effectiveness
of PR efforts (Ehling, 1992).
-
Only when clear objectives have been defined.
Short-term or long-term awareness, opinions, attitude or goodwill changes of the targeted public
Evolution of market share is not a good indicator (not an objective & influenced by other factors)
Input indicators: PR efforts (N stories, N interview, N supermarkets visited, …)
Output indicators: media coverage or publicity (press space, TV time, stories length)
Achievement indicators: the extent to which a pre-specified objective has been met with a public of
interest (reach, change in awareness, opinions, attitudes, behavior, image…)
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Chapter 10 Brand activation – Consumer promotions
Sales promotions are promotional techniques to stimulate sales like discount, contests, special offers..
POP promotions are communications at the point of purchase or point of sales.
Brand activation is the integration of all available communication means in a creative platform in order
to activate consumers by stimulating interest and trial, securing brand loyalty.
Experiential marketing is the art of creating an experience where the result is an emotional connection
to a person, brand, product or idea. 2
-
-
-
From manufacturer to consumer
Characteristics
o Limited in time & space
o Better value for money
o Immediate behavioral response
Action communication
o Sales boost: new & existing
customers
Psychological mechanism: operant
conditioning
o Prerequisite: promo (i.e. substantial
reinforcer)
-
-
Growing importance
o Declining brand loyalty
o Lack of differentiation
o Distribution channel power
o Measurability
o Short-term orientedness
o Buying decision taken in store
Goal
o Make existing customers loyal and
reward loyal customers
o Trial by new customers
o Increase market size
o Reinforce other communication
tools
1. Brand activation
Brand activation is an active form of marketing communications in the sense that it stimulates the
purchase process by activating customers (De Pelsmacker et al., 2018). Brand activation refers to
generating consumer interest by allowing consumers to use a product or experience a service. In this way,
the brand's value is "activated," or realized by the consumer, who then connects the value given with the
brand and walks away with a strong impression. Brand activation results in a strong, favourable opinion
about the business because of personal interaction and urges customers to spread this opinion among
others. The key in brand activation is to show customers that promises made in advertising are true. Brand
activation can occur through offering consumer promotions, Point-of-Purchase material or brand
experiences.
2. Sales Promotions
Sales promotions are often offered for a short period of time to increase sales in the short run. They are
action communications generating extra sales for existing and new customers. Sales promotions are
limited in time and space, giving customers a better value for money and evoking an immediate
behavioural response. It is effective because of operant conditioning mechanisms: behavior is rewarded
reinforces future behavior (De Pelsmacker et al., 2018). This could trigger habitual behavior so customers
keep on buying a particular product after they have bought it due to a promotion. As a downside, it could
also trigger habitual “promotional” behavior so that customers will only buy products or brands that are
in promotion and hence display fierce brand switching behavior. The promotion that is provided should
be substantial in order to trigger a behavioural response.
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Sales promotions are increasingly popular because customers are becoming less brand loyal and more
price conscious making them more prone to buy products that are in promotion (De Pelsmacker et al.,
2018). Also products and brands lack differentiation: a lot of brands offer high quality products with few
differentiating intrinsic qualities between brands. Due to a high clutter in advertising messages, customers
start to avoid ads urging marketing communication managers to look for other communication tools that
could induce purchases. Purchase decisions are often made in-store so communication efforts are
especially effective when they are located at the time and place when and where the consumer makes his
or her decisions. Companies strive for immediate responses to their communication efforts and are
therefore tempted to use promotional tools. The behavioural response following a sales promotion can
also be measured immediately. Finally, the distribution channel power increases since they offer a lot of
private label brands diminishing the shelf space for regular brands. Therefore, distribution channels can
decide the conditions that companies must meet in order to get shelf space. Promotional tools are often
used to persuade the trade channel (De Pelsmacker et al., 2018).
2.1 Types
Several types of sales promotions exist: consumer promotions by manufacturers, consumer promotions
by retailers, trade promotions by manufacturers aimed at distributors and sales force promotions by
manufacturers (De Pelsmacker et al., 2018).
Consumer promotions include monetary incentives, chances to win a prize and product promotions.
Monetary incentives can come as immediate price cuts on the shelf or refunds, coupons (= vouchers
representing a monetary value with which the consumer can get a discount on a specific product) or saving
cards. They all increase price/quality perceptions since the price of product is lowered (De Pelsmacker et
al., 2018). Product promotions offer free products either as an incentive to buy a product or as a reward
for having purchase a product.
Trade promotions include off-invoice allowances (direct price reductions per unit purchased or sold),
slotting allowances (a one-time upfront fee to cover start-up costs of entering a new product in the system)
and advertising allowances (monetary incentive for the retailer to advertise the manufacturer’s brand).
Other examples of trade promotions are dealers contests or dealers loaders (i.e. getting additional
material like a refrigerator during promotions that can be kept when the promotion has finished) (De
Pelsmacker et al., 2018).
Monetary Incentive
1. Price cut on the shelf
2. Coupons
Chance to win a price
1. Contest
2. Sweepstakes and lotteries
3. Cash refunds
4. Saving cards
Product promotion
1. Sampling
2. Extra volume
3. Free in mail
4. Premiums
5. Self-liquidators
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2.1.1 HILO versus EDLP
Promotions
- Short term increase in sales of brand and product category, market share and profits*, attracts
buyers from competitive brands and from other stores
- Medium term: post promotion dip indicates effectiveness; intrinsic product value versus promotion;
reference price can decrease
- Long term decrease in attitudes, market shares and sales; Increase in deal-proneness and promotion
costs; Undermine tools building brand image
*Small price cuts might require unrealistic conditions to keep profit at same level!
- Original cost: €2; Manufacturer’s margin: €0,4; Price cut: 10%
- Sales volume must increase by 100% (!!) to keep a status quo in profitability!
- mostly negative in long run
2.2 objectives
Consumer promotions can attract new customers, make existing customers loyal and reward loyal
customers. Trial promotions are often offered when new products are marketed or promotions could be
offered before the launch of a competitor’s product to neutralize the competition. Existing customers are
rewarded by offering promotions refraining them from buying competitor’s products. Market size can
grow by offering promotions and stimulate the use of an entire product category or by stimulating basket
filling for existing customers Finally, promotions can reinforce other communication tools. Most monetary
incentives (except for saving cards) are a good way to generate trail. Monetary incentives and selfliquidators are especially good to induce repeat purchases. Monetary incentives and premiums also
stimulate basket filling.
Trade promotions are used to persuade channel members to include products in their mix, give it
appropriate shelf space and to assist in promoting the product to the end consumer. Trade promotions
can also maintain shelf space for existing products or inducing the retailer to promote the product using
retailer promotions. Trade promotions are also used to reward the distribution channel for its loyalty in
giving shelf space to a product.
Sales force promotions are used to induce the sales force to approach new customers, to try the product
to ton increase the volume purchased by existing customers.
2.3 advantages and disadvantages
Although price cuts on the shelf and coupons provide an immediate easy benefit for customers and hence
increase immediate sales, the impact on consumer’s price perception, brand image and loyalty can be
negative in the long run. Contests, sweepstakes and lotteries increase consumer’s price perceptions but
do not have immediate (easy attainable) consumer benefits. Also cash refunds, saving cards, free in-mails
and self-liquidators do not offer immediate benefits
although they do positively affect brand image and brand loyalty. A lot of consumer promotions require
an increased retailers or manufacturer’s workload. The choice of a particular consumer promotion often
depends on the situation in which it is used or the product for which it is used. In general bonus pack have
better results than price discounts . Since customers prefer gaining something versus reducing a loss, they
will rather choose getting an extra volume or bonus than reducing the money they have to pay. This
preference of bonus packs over price discounts is especially valid for virtue products while customers
choose price discounts over bonus packs in case of vice products due to guild feelings and the urge to
justify one’s decisions.
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2.3.1 Academic research
- Bonus pack > price discounts
o Gains versus reduced losses
o Focus on bonus versus focus on monetary value
o Price discount: you focus on the losses
- Depends on the product: virtues versus vices
o Bonus packs < price discounts for vices (justification/guilt)
o Bonus packs > price discounts for virtues
2.4 How to measure effectiveness of sales promotions?
Sales promotions can be pre- and post-tested. In a pre-test customers can be confronted with sales
promotions in a focus group. Since sales promotions are action-oriented, the effectiveness of sales
promotions is especially measured after behavioural responses have been set out by looking at sales data.
The evolution of sales is measured during sales and non-sales periods or different promotional methods
are compared on their capabilities to generate sales. Extra sales volume generated by a campaign can be
measured by comparing the sales before and after the campaign and studying the evolution of sales during
the campaign keeping in mind that sales promotions can also induce basket filling. The so called
‘Sawthooth’ effect can occur: a post-promotion dip in sales following an increase in sales due to sales
promotions.
Often consumer panel data are analysed by decomposing market share as a product of attraction,
conviction, domination and intensity, divided by shock absorption. Attraction refers to the number of
buyers of our brand divided by the total number of buyers of the product category. It gives an indication
of the effectiveness of trial promotions. The effectiveness of loyalty promotions are determined by the
number of loyal customers of our brand (=someone who performs a repeat purchase in a given time
period) divided by the numbers of buyers of our brands (= conviction). The amount of true loyal customers
is referred to as “domination” and calculated as the average volume of our brand purchased per loyal
customer of our brand divided average volume of the product category purchased per loyal customer of
our brand. Intensity gives an indication of the capability to attract heavy users. Intensity is the average
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volume of our brand purchased per loyal customer of our brand divided by the average volume of the
product category per buyer of the product category. If intensity rate equals 1, the loyal customers of our
brand are buying the same amounts of the product category as the average buyer of the product category.
Shock absorption is the total purchases in volume of our brand by loyal customer divided by the total
purchases in volume of our brand. The higher the shock absorption rate, the more the sales are based on
loyal consumers and the less vulnerable the brand is to switching behavior caused by competitive actions.
-
Pre- and post-tested
Pre-testing:
o Opinion research (e.g focus group)
Aim of promotions: immediate consumer responses
→ Focus on behavioral responses: sales data
o Evolution of sales: promo vs non-promo sales
o Comparison of different promo methods on capabilities to generate sales)
Sales Monitoring (existing & new brands): GfK consumer panel
Market share = (attraction x conviction x domination x intensity)/ shock absorption
-
-
-
-
Attraction: number of buyers of our brand/total number of buyers of the product category
o Effectiveness trial promotions
Conviction: number of loyal customers of our brand/numbers of buyers of our brands
o Effectiveness loyalty promotions
Domination: average volume of our brand purchased per loyal customer of our brand/average
volume of the product category purchased per loyal customer of our brand
o True loyalty
Intensity: average volume of our brand purchased per loyal customer of our brand/average volume
of the product category per buyer of the product category
o Capability of attracting heavy users
Shock absorption: total purchases in volume of our brand by loyal customer/total purchases in
volume of our brand
o Vulnerability to competitive actions
Loyal client = someone who performs a repeat purchase in a given time period
Sales promotion research: consumer panel (GfK)
Figure. Monitoring the effectiveness of sales promotions campaigns: the launch of a new detergent
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Sales promotion research
Extra sales volume generated by a campaign can be measured by comparing the sales before and after
the campaign and studying the evolution of sales during the campaign.
→ ‘Sawthooth’ effect (basket filling)
Sales promotion research: retail data (Nielsen)
Figure. Baseline sales and the sales effect of promotion campaigns
3. POP
Since 30% of the decisions are made while shopping and 10% of the customers change their mind while
shopping, POP (point of purchase material, also called point of sales material, P0S) is a powerful
communication tool. Research shows that return on investment is highest when POP material is part of an
integrated communication plan (Leeds, 1994). All store aspects including the store environment can signal
something to customers about quality, price, product, ..…
POP = Point of Purchase
- 30% decisions made while shopping, 10% change their mind while shopping
- Importance of integrated communication plan: ROI: Ad + POP = 100 % + Ad only!
- Promotional materials (Displays, printed material (shop counters, window displays, wobblers, …)
- In store advertising (In-store broadcasts, video screen demo’s, shopping-trolley ads, coupon
dispensers, interactive kiosks, …)
- Store environment (Shop atmosphere (e.g. scent, music, colors, …), store image, ..)
- All store aspects and its environment that can signal something to customers about quality, price,
product, ..…
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Table. Percentage of people making at least one
decision in-store. Source: Based on Ogilvy &
Mather (2008) ‘Turning shoppers into buyers: the
truth behind shopper decisions made in store’,
3.1 types
POP material is any promotional material that is placed at the point of purchase including displays, printed
material (shop counters, window displays, wobblers, …), in store advertising (In-store broadcasts, video
screen demo’s, shoppingtrolley ads, coupon dispensers, interactive kiosks, …) etc. In an online context,
POP’s are often used as they can be easily customized, and are a cheap flexible too to attract attention.
Figure. Attention and purchase motivation of different POP elements.
-
-
-
Customized & interactive POPs
Online POPs = offline + flexible + cheap + customized
Interactive POPs:
o http://www.reactrix.com/,
o everywhere displays
http://www.research.ibm.com/people/p/pinhanez/cp_research_ed.htm
Gesture recognition:
o http://www.gesturetek.com/gestpoint/introduction.php
o http://www.youtube.com/results?search_query=gesturetek&aq=f
Shop of the future: intelligent shop show window (Philips, Eindhoven)
Augmented reality (e.g. digital cosmetic mirror)
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10.2.2.1 Store environment
3.2 objectives
POP material may attract the consumer’s attention and may differentiate the store from its competitors
which can increase the likelihood that the consumer will enter the store (De Pelsmacker et al., 2018). At
the same time POP material can remind customers of ongoing and previous advertising messages
decreasing brand confusion at the time of purchase. Furthermore, POP material can inform customers of
product characteristics that can ease their decision making. POP material can persuade customers and
trigger impulse purchases. Finally, it can also enhance store, manufacturer’s and product image.
1. Attract attention & points of differentiation:
o flagship stores, eye-catching/innovative displays, …
2. Remind:
o to ongoing & previous advertisements, PR (cf. integrated marketing communications)
3. Inform:
o E.g.: help selecting the perfect wine, user demo’s, …
4. Persuade
o Impulsive and short term behavior
5. Image
o Retailer & manufacturer’s image
Effective POP communication requires clear understanding of target groups
e.g. shop design price discounter  exclusive shop
4. brand experience
The most powerful instrument to activate consumers is by offering them a positive brand experience (De
Pelsmacker et al., 2018). By providing a brand experience a brand is brought to life through interaction
with target audiences. Advertising is intended to create awareness of a brand promise, while successful
brand experiences deliver proof of a brand’s promise or the benefits of a product or service. Meaning,
effective brand experiences are designed to create specific, valuable interactions between brands and/or
products and services and the people that matter most to them. These interactions result in deeper
emotional connections and greater brand affinity if they are executed well.
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Brand experiences get people talking about a brand in a way that it translates into positive long-lasting
action. Brand activation uses experiential marketing as a core part of its technique. There are a wide range
of activities that can be described as brand experiences, including experiential stunts, corporate events,
employee/consumer interactions in-store or via phone, or even the use of a brand’s app or site. Each of
these activities provide a meaningful experience that can either increase or reduce a person’s brand
affinity. The quality of the experience itself will determine the amount of engagement, earned media or
brand affinity it produces.
4.1 Objectives
Brand activation is aimed at showing that the brand can be trusted and the marketing messages are true
and/or to attract customers and give them more information in an activity they will remember. Brand
experiences attract attention and makes a brand’s promise more tangible which can increase brand
comprehension as the brand comes alive. A more positive brand image is reached by relating useful and/or
pleasuring experiences to the brand. The brand can stand out from its competitors and increase sales in a
short term.
-
Brand attention, comprehension
Purchase
Brand image and brand relationship
Dimensions (Schmitt, 1999; Brakus et al., 2009)
o Sense
o Feel/relate
o Think
o Act
4.2 Dimensions
Brand experiences contain four dimensions: sense, feel/relate, think and act (Schmitt, 1999; Brakus et al.,
2009). Ideally marketers should try to create holistic brand experiences that simultaneously evoke sensory,
affective, intellectual and behavioural experiences (Schmitt, 1999). Consumers find aesthetic packaging
exciting and appealing (Reiman et al., 2010). Other senses like sound, touch, taste and smell can impact or
bias our perception for the pleasantness of the product resulting in an overall multisensory product
experience evoking positive brand evaluations (Spence, 2012). To activate a brand by means of sensory
marketing, marketers should reach the consumers’ five senses on a deeper level than mass communication
or store atmospherics in general do by offering a personal, preferably interactive experience.
Experiential marketing builds on the power of emotions by stimulating brand-consumer interactions, or
consumerconsumer interactions to reach a deeper emotional engagement to the brand. Brand
experiences that built on having consumers think can be sued to activate consumers’ conscience or to
make hem rethink common practices and old assumptions (Schmitt, 1999). Thinking also leads to stronger
brand traces in memory, making it more likely that a brand will be remembered in chosen in a future
purchase situations (De Pelsmacker et al. 2018).
Act campaigns create physical experiences and/or stimulate changes in longer-term patterns of behavior
and lifestyles (Schmitt, 1999). Behavioral changes are often motivation and emotional in nature (Schmitt,
1999), therefore, brand experiences can be highly effective in engendering these changes
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Example exam questions
Which sales promotion is best suited to induce repeat purchase?
a) Sampling
b) Premiums
c) Coupons
d) Self-liquidators
The football competition between the 16th best Belgian football teams is called ‘the Jupiler pro league’
after its main sponsor Jupiler, a local Belgian beer brewed by the company ABInBev (a company with
global brands like Budweiser and Stella Artois and local brands in several countries).
a) Which marketing communication objectives could the company have to sponsor a Belgian
football competition?
b) Which type of sponsorship is used?
c) How could the company check whether the objectives have been reached?
d) Do you think that this sponsorship is effective?
Heineken (Dutch beer company) sponsors the Van Gogh museum in Amsterdam.
(a) Which type of sponsorship is this?
(b) How could this sponsorship be effective? Explain using the theories that explain how
sponsorship works.
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Chapter 11 Ethical issues in marketing communications
Morals are beliefs or principles that individuals hold concerning what is right and wrong
Ethics are principles that serve as operational guidelines for both individuals and organisations
1. Ethical decision-making models and rules
Different views can be held on how to apply ethical decision making in marketing communications (Pickton
& Broderick, 2005). The caveat emptor rule puts forward that everything is allowed within legal rules, it if
gives profit, while the ethics code strives for standards on the basis of which companies and industries
ethical performance is judged further than standards prescribed by law. In the consumer sovereignty
approach ethics is based on three questions: is the target vulnerable? Are his expectations likely to be
realized and do they have sufficient information to judge? Would they incur substantial costs or
inconvenience by transferring their loyalty? The caveat venditor approach is a maximization of consumer
satisfaction and hence the most ethical approach of the above mentioned approaches.
To be ethical, marketing decisions should be legal or allowed under the regulations and laws, decent (=
not containing anything that causes distress) and honest and truthful. Marketing communication should
not exploit inexperience or lack of knowledge of consumers, no claims should be made which are
inaccurate or ambiguous (De Pelsemacker et al., 2018).
When facing an ethical dilemma, the following rules of thumb apply: Golden rule, professional ethics,
categorical imperative, outcomes and TV test (De Pelsemacker et al., 2018). The golden rule says that
when faced with a decision that appears to have ethical implications, you should act in a way that you
would expect other to act towards you. Professional ethics state that you should take only actions that
would be viewed as proper by an objective panel of your professional colleagues. The categorical
imperative puts forward that one should act in such a way that the action taken under circumstances could
be a universal law of behaviour for everyone facing those same circumstances. Furthermore, a manager
should always ask himself is he would be comfortable explaining this action on TV to the general public.
Finally, the outcomes rule judges the ethical quality of a decision in terms of performance, rewards,
satisfaction and feedback (De Pelsemacker et al., 2008).
-
Caveat emptor rule – everything within legal boundaries
Ethics code – standards for companies/industries
Consumer sovereignty – 3 questions (vulnerable targets-enough information-costs/inconvenience)
Caveat venditor -maximization of consumer satisfaction
MC-decision:
- Legal
- Decent
-
Honest
Truthful
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Rules of thumb when facing an ethical dilemma
Ethical decision
- Golden rule
o Act like you would expect others to act towards you
- Professional ethics
o What is viewed as proper by an objective panel of professional colleagues?
- Outcomes
o Are performance, rewards, satisfaction and feedback ethical?
- TV test
o Would I be comfortable explaining this on TV?
- Categorical imperative
o Act lie how others would act in the same circumstances
2. Unethical marketing communication practices
a) Stereotyping
Several unethical marketing communication practices exist. First of all stereotyping depicts specific
gender, age or cultural groups in a stereotypical way. Stereotyping is an automatic perceptual bias enabling
people to construct simplified images of reality (De Pelsemacker et al., 2018). Men and women are often
shown in a supporting conservative gender role or elderly are depicted as helpless. Other ethnic groups
are sometimes portrayed in a stereotypical way that offend them. These stereotypes are often used in a
more subtle. Even when used in a subtle way, stereotyping can affects how people think of themselves. It
can make people believe for example that their happiness is related to how good they look.
-
Gender roles
Elderly
Ethnic groups
- Affects how people think about themselves
b) Controversial messages
Controversial messages like shock advertising are communicated to get attention by evoking negative
emotions. shock advertising is advertising that deliberately rather than inadvertently startles and offends
its audience, by means of deliberate norm violation, transgression of law or custom or moral/social code,
or by showing things that outrage the moral or physical senses (De Pelsemacker et al., 2018). By shocking
people the message can break through the clutter of other advertising messages and possibly have a
positive impact on advertising and brand attitudes. Both offensive products and ideas and offensive
executions are set up.
-
-
Shock advertising = advertising that deliberately rather than inadvertently startles and offends its
audience, by means of deliberate norm violation, transgression of law or custom or moral/social
code, or by showing things that outrage the moral or physical senses.
Used to get attention
2 categories
o Offensive products or ideas
o Controversial advertising executions
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Offensive products, ideas, ad executions
- Racist
- Anti-social behavior
- Sexist
- Too personal subject
- Indecent language, pictures
- Nudity
c) Covert marketing
Covert marketing is a firm’s marketing action whereby consumers believe that the activities are not those
of the firm (De Pelsemacker et al., 2018). Buzz marketing is an example of covert marketing: it gives people
a reason to talk about the company’s product or services. Another example of covert marketing is stealth
marketing or the use of marketing practices that fail do disclose or reveal the true relationship with the
company that produces or sponsors the message. Stealth marketing can create buzz online or offline and
is always brand generated. vehicle. A variety of companies can use stealth marketing techniques to
generate buzz for a product. It is most commonly used by larger companies that can afford to use multiple
marketing strategies for a single product; although, stealth marketing has also been used successfully by
small companies to create interest in a new product. The goal of stealth marketing is the same as buzz
marketing, but ambassadors keep their identities secret and they hide the fact they are being paid or
sponsored by a brand. The idea is that the recommendation is then more genuine, believable. Some
consider it unethical, others do not. Many companies choose this method because it is inexpensive
compared to more traditional advertising. Also Guerrilla marketing is using non-traditional and
unconventional methods to attract attention. The goal is to generate buzz or excitement about the brand.
It can be some unique feature, like a walking mummy on a street or a sign on a bridge. The goal is to attract
attention then expose them to the brand. The hope is that the individuals will immediately tell others they
have to come and see this. It is so unique, strange, and bizarre so that buzz is generated. While digital may
be the result, guerrilla marketing does not begin with digital.
Firm’s marketing actions whereby consumers believe that the activities are not those of the firm
- Stealth marketing
- Guerilla marketing
Stealth marketing
- The use of marketing practices that fail to disclose or reveal the true relationship with the company
that produces or sponsors the marketing message
- Used to create buzz for a product or brand
- Online or offline
- Brand generated
- Ethical considerations
- Illegal
Guerilla marketing
- A non-traditional and unconventional method to attract attention
- Brand generated
- To generate buzz or excitement about the brand. While digital may be the result, guerrilla marketing
does not begin with digital.
- Legal
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d) Targeting vulnerable groups
Targeting vulnerable groups is another form of unethical communication practice. Recent research shows
that children are confronted with 25000 advertisements per year (De Pelsmacker et al., 2018). Advertising
messages are hidden persuaders because before the age of 6 years, children do not recognize advertising
and think that they are part of the TV program. Young children are often bombarded with advertising in
TV-programs or advergames while adolescents are targeted through mobile marketing and advertising on
social media. Even though children older than 6 can recognize advertisements, they do not see persuasive
intent of advertising before they turn 10 to 12 years old (Moore, 2004).
Children: recent research
- 25000 advertisements
- Hidden persuaders
- before the age of 6 years: advertising in Tv-programs and advergames
- 6-12 years: advertising funded programming ,Infomercials and banners
- 12-16 years, mobile marketing and advertising on social media
- Children do not see persuasive intent of advertising before 10 to 12 years old
Academic Research
Vermeir, I. & Van De Sompel, D. (2013). How advertising beauty influences children’s self-image and
behavior, Journal of Consumer Policy, 37(2), 205-233.
- What is beautiful is good stereotype
- N= 185 children between 8 and 12 years old (47% girls).
Attractive versus less attractive model in advertising for WE game.
Measurement of
- Perception of model
- Self-image
- Purchase intention
- Materialism
Attractive versus less attractive models are rated as:
- more sportive
- more popular
- having higher self-esteem
- ‘less following rules’
- less intelligent (girls) / more intelligent (boys) (→ stereotype)
Presence of an attractive (versus less attractive) model
- positive influence on body image (girls)
- Negative influence on general self-image (boys).
- Increase attitudes and buying intentions for boys
- No effect of age and materialism
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e) Greenwashing
Greenwashing or the act of misleading consumers regarding the environmental practices of a company or
the environmental benefits of a product or service is increasing in current communication practice. Several
forms exist like the sin of fibbing which means claims are simply false. Common examples are products
falsely claiming to have a certified Energy label. The sin of irrelevance holds that an environmental claim
that may be truthful but is unimportant or unhelpful for consumers seeking environmentally preferable
products. ‘CFC-free’ is a common example, since it is a frequent claim despite the fact that CFCs are banned
by law. The sin of no proof means that environmental claims cannot be substantiated by easily accessible
supporting information or by a reliable third-party certification. Common examples are facial tissues or
toilet tissue products that claim various percentages of post-consumer recycled content without providing
evidence. The sin of the hidden trade-off is a claim suggesting that a product is ‘green’ based on a narrow
set of attributes without attention to other important environmental issues. Paper, for example, is not
necessarily environmentally-preferable just because it comes from a sustainably-harvested forest. Other
important environmental issues in the paper-making process, such as greenhouse gas emissions, or
chlorine use in bleaching may be equally important. The sin of vagueness is a claim that is so poorly defined
or broad that its real meaning is likely to be misunderstood by the consumer. ‘All-natural’ is an example.
Arsenic, uranium, mercury, and formaldehyde are all naturally occurring, and poisonous. ‘All natural’ isn’t
necessarily ‘green’. Finally, the sin of the lesser of two evils is a claim that may be true within the product
category, but that risks distracting the consumer from the greater environmental impacts of the category
as a whole. Organic cigarettes could be an example of this Sin, as might the fuelefficient sport-utility
vehicle.
= the act of misleading consumers regarding the environmental practices of a company or the
environmental benefits of a product or service.”
-
Sin of fibbing = making environmental claims that are simply false
Sin of no proof = When someone puts a claim on a product label, consumer wants proof
Sin of irrelevance = making an environmental claim that may be truthful, but is unimportant and
unhelpful for customers
Sin of the hidden trade off = When a supplier tries to focus a consumer’s attention on a single
environmental issue, so you don’t see the other issues
Sin of vagueness = What does 100% natural mean?
Sin of lesser of two evils = Green claims that may be true within the product category, but that risk
distracting the consumer from the greater environmental impacts of the category as a whole
f) False & misleading product descriptions
False and misleading product descriptions and misleading images or places of production hold that either
products ingredients are not all displayed in the ingredient list or that descriptions are formulated, images
or places of production are shown in a way that people come to believe that the product has other
characteristics than it has in reality.
False product descriptions
- Not displaying all ingredients product
Misleading descriptions
- “fast” car – “faster” than… (cfr buying behavior course)
- “light”
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Puffery (=soft core deception)
Finally, puffery is a soft core deception expressing a subjective view which is exaggerated. This could be
seen as a rather legitimate form of communication practice as every reasonable person would know that
the claim is exaggerated
g) Misleading images
-
-
Misleading place of production
o Italian flag colors on the package of a pizza made in Belgium
o Greek name, font, package design to make cheese look like Greek feta while it is cheese from
pasteurized cow milk made in Germany
o Bag of chorizo with Spanish flag and image of toreador, made in France.
Misleading product pictures
Pro’s and con’s of self-regulation
3. Regulation of marketing communication practices
1. Self-regulation
In order to retain trust and credibility, advertising need to meet high standards. Therefore, there is
regulation by the industry itself by establishing codes of practice or sets of guiding principles, a process
called self-regulation. The goal of self-regulation is ensuring legal, decent, honest and truthful advertising,
prepared with a sense of social responsibility to the consumer and society with proper respect for the rules
of fair competition.
2. ICC codes (international code council)
Communication practices can also be regulated by the international code council (ICC). ICC was the first
the publish it’s code of advertising practice in 1937 and all the codes in use today, are based on this code.
The rules for these codes imply that marketing communications should not contain statements or visuals
which offend, denigrate, mislead or abuse the trust of consumers or another party . Consumers should be
able to recognize the communications as a marketing tool. This means that for example, testimonials
cannot be used if this is not genuine, verifiable, relevant and based on personal experience; imitation
should be avoided; consumers should be clear how to attain promotions and ads targeted at children and
young people cannot be framed in ways to take advantage of youth or their lack of experience or that
strain the loyalty towards parents.
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-
Several codes: International code of advertising practice, sales promotion, direct marketing,
sponsorship, children and young people, responsible food and beverage marketing
All of these codes have several rules
E.g. international code of advertising practice: ‘consumers should able to recognize the
communication as a marketing tool’
Sales promotion: is should be clear to consumers how to obtain the promotional offer
3. European advertising standards alliance (EASA)
The European advertising standards alliance (EASA) was created in 1922 and set out European rules for
the advertising industry. These exist in addition to other European and national lass such as the prohibition
of having more than 12 minutes of commercials per hour, or the prohibition of tobacco advertising. Three
major goals of the EASA is to promote self-regulation, support existing self-regulatory systems and to
ensure that cross border complaints are resolved quickly. The EASA receives a lot of complaint (more than
50.000 every year, the highest complain rate being in the UK and Germany (De Pelsemacker et al., 2018).
Co-ordination point for the self-regulator bodies of the respective European countries.
EASA principles exist in addition to other European law
Three major goals:
- Promote self-regulation
- Support existing self-regulatory systems
- Ensure that cross-border complaints are resolved speedily and effectively
Still big difference between countries
European trends in advertising complaints, copy advice and pre-clearance, European Advertising
Standards Alliance (EASA)
Evolution of complaints received by EASA members, 2005–10
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4. Belgium: JEP (jury for ethical practices in advertising)
The Jury for ethical practices (JEP) is a self-disciplinary organization of the advertising industry in Belgium.
It was founded in 1974 by the Council for Advertising. It gathers the representative associations of
advertisers, advertising agencies and media groups. It has two main purposes: dealing with complaints and
giving advice
-
the self-disciplinary organization of the advertising industry in Belgium.
It was founded in 1974 by the Council for Advertising. It gathers the representative associations of
advertisers, advertising agencies and media groups.
2 main purposes:
- Dealing with complaints
- Giving advice
Example Exam questions
Is this an unethical practice? If so, what kind? Discuss how some people can see this as ethical or
unethical.
This is 1 of the 6 sins of greenwashing
- Vague
- No proof
- …
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Chapter 12 digital communication & social media: part I
1. introduction
Tools & touchpoints
- Advertising (newspapers, magazines, television, radio)
- PR
- Sponsorship
- Brand activation: Experiences/trials
- Direct marketing
- Point of purchase marketing
- Personal selling
- Digital marketing
What is digital marketing?
“Marketing is the process of planning and executing the conception, pricing, promotion and distribution of
ideas goods and services to create and exchange value and satisfy individual and organizational
objectives.”
= offering and adding value compared to the online channels
-
-
-
-
Advertisements
o On online platforms
Social media & applications
o Made it possible to create and share own content with peers
Online sponsoring
E-couponing & e-sampling
Online contests
E-mails & newsletters
o Push and email marketing (guest lecture)
Banners
o Suddenly appears on websites, is linked to your search history
o Driven by data
o Is only possible online
Sticky ads
o Mobile marketing
o We are tent to scroll fast
o Sticky ads keep being visible on the screen when you scroll
Branded websites
o Sharing, creating communities
Blogs & vlogs
o Everybody has the opportunity to create and share content
o Can be dangerous, companies don’t have full control anymore
o As a company you have to monitor the environment
advergames
o A game in which they advertise
E-commerce
Chat bots
Augmented reality
Why is digital marketing & social media relevant for a company?
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2. Relevance of digital marketing
I. Evolution
A. traditional versus digital marketing
Digital marketing
- Content marketing
- Social media marketing
- PPC & SEM marketing
- Email marketing
- Marketing automation
- Inbound marketing
- Affiliate marketing
- Website
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The essence of marketing remains the same, the funnel stays the same, we just use other tools.
It is relevant because the digital ads spending is booming.
More than half of the ads spendings are digital.
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Why make a shift towards digital marketing? What are the benefits?
Traditional marketing
- Harder to target audience
- Less information
- High price for advertising
- Less audience
- Hard to get information from biased news
or opinions
- Take a long time to get fresh news
Digital marketing
- Wider range of sources
- Low cost
- Measurable online marketing
- High rate customer engagement
- High conversion rates
- Valuable business and education tools
- Communicating with more people
Should we abandon traditional media? Why/why not?
No, the most important thing in marketing is the target group. A lot of people stay use traditional
marketing.
B. Technological advancements
What was necessary to ignite the rise of digital marketing?
Hardware evolutions
- Bombe machines - Alan Turing
o To imitate the work of the Inigma machines
o One of the first digital machines
- Microchips - Jack Kilby
o Can contain a lot of information
o Can be produced very fast
o Are highly reliable
- Moore’s law - Gordon Moore
o Predicted based on technological advancements, that the speed of a microchip would
double in speed and capacity
o Now the chips are smaller and smaller, there are physical limitations
Software evolutions
- Arpanet
o Research facilities
o Father of the later internet
- Personal computers
- World Wide Web
o Tim Berners-Lee
- Powerful software & operating systems
- Smarter computers
o Predecessor of AI
o Computers are good in creative thinking
- Multiple digital devices
- Social media
- Mobile
- Augmented reality
- Internet of Things
- A.I.
What implications did this have for (digital) marketing?
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C. The power of data & Rise of internet giants
“Data is the oil of the digital world.”
How can digital marketing benefit from this?
“With great power comes great responsability”
- Privacy concerns
o Cambridge analytica
o Facebook collected data and sold to it to application makers, without the consent of the
Facebook users
- Give data-ownership back to consumers
o Block chain technology
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How does a Blockchain work: A step-by-step view
1. A user requests for a transaction
2. A block representing the transaction is created
3. The block is broadcasted to all the nodes of the network
4. All the nodes validate the block and the transaction
5. The block is added to the chain
6. The transaction gets verified and executed
Blockchain
1. Eliminating digital middleman (peer to peer)
o Decentralizing the data
o Relies on consensus from the majority of the community
o Lower digital advertising costs
Centralized Advertising Model
- Tech giants have al the power and data
knowledge
- Digital advertisers have to rely on those
giants
- Targeting is not always relevant, and
accurate
- Intrusive
Decentralized Advertising Model
- No third party
- Shift towards power for advertisers and
data owners
- Users will have a say on the type of ad they
want to see
- Choose how your data will be used
- More relevant ads
2. Increasing transparency
o Less fraud, Almost impossible to hack
o More verification
o Increasing consumer trust
3. Give consumers control over their data
o Less pulling data from customers
o Incentives for data
o Examples: Brave browser, Blockstack, KindAds
Applications (not relevant for us)
- Smart & digital contracts
- Loyalty programs
- Paying Users to View Ads
- Discounts
- One-to-one marketing
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II. The digital world in 2019
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A. The internet of things
“a system of uniquely identifiable and connected constituents (termed as Internet-connected
constituents) capable of virtual representation and virtual accessibility leading to an Internet-like structure
for remote locating, sensing, and/or operating the constituents with real-time data/information flows
between them, thus resulting in the system as a whole being able to be augmented to achieve a greater
variety of outcomes in a dynamic and agile manner.”
-
-
Dynamic global intelligent information network which connects all things to the Internet
Internet connected objects, such as radio frequency identifications, sensors, and actuators. Smart
appliances that are becoming an integral component of the Internet
Purpose of exchanging information and communicating through the information sensing devices in
accordance with agreed protocols. It achieves the goal of intelligent identifying, locating, tracking,
monitoring, and managing things
The ultimate objective of this connectivity is to provide value added services to users
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Examples
- A smart watch that sends your step count to your phone and receives a notification when someone
likes your latest workout post on social media;
- The fridge that alerts you when you’re low on apples or yogurt and updates the shopping list on your
phone;
- The lock that gives you entry to your vacation rental with just a passcode from an app;
- The thermostat that can be adjusted from your phone, no matter where you are;
- The smart assistant (think the Amazon Echo or the Google Home) that can retrieve search results,
add items to your shopping list, and complete your purchase — all by voice command.
Key distinctions between web-based and IoT – based environments
Data & related
Web
Internet of Things
processes
Data
Online/Digital, environment/context
largely constructed by providers
Data entry
Active consumer
Physical. Environment/context largely
constructed by nature, with many
aspects/contexts created by consumers
Passive, devices
Data sharing
With other providers
With other machines
Learning
Action in online/digital world
Actions in natural, physical world
Decision making
Providers, more fixed, static; less real time
Machines, dynamic, more real time
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The internet of things & marketing
1. How should enterprises develop fully integrated IoT channel and communication strategies to best
reflect the wide variety of the IoT options?
2. How should IoT enterprises evaluate the consistency of messages across multiple touch points?
3. How can marketing effectiveness be measured in an integrated IoT communications system?
4. How much control do enterprises have over their customers in this environment?
5. How much control should they exert over their customers with so much available data?
6. What is the relationship between CRM (Customer Relationship Management) and the IoT in such a
data-driven environment?
7. How should enterprises develop relationships, alliances and partnerships in an IoT environment?
8. What factors affect consumer’s engagement with enterprises?
9. How can enterprises use the IoT to design and develop a better customer experience?
10. What are the optimal metrics and marketing strategies that enterprises should employ with the IoT?
11. How are customized ads, promotions and other communications processed by consumers via the IoT
as compared to traditional counterparts?
12. What are the costs and benefits of organizations adopting the IoT to optimize marketing?
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Application domain
Product placement
Scope
Mobile advertising
Purchase behavior,
storytelling & communication
Tourism
Customer experience and
consumer’ brand perception
Real time buyer personas’
development
Health & fitness, smart
products
buyer personas based on
public social media data
Technologies
CPS (Cyber-Physical System), Location-based
Animation Plot- Placement System (LAPS),
GPS,
Wi-Fi
TOTEM (Tale of Things and
Electronic Memory), Near-field
communications (NFC), RFID and
QR codes, cloud database.
Wearable technology
Automatic persona generation system
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Application domain
Product & content
development
Scope
- bathroom that collect data (use of shampoo, toothpaste,
shower gel, etc.)
- toilet that liberate information about the state of the
urine
- doorbell/lock and camera assemblage that enables the
homeowner to see who is at their front door and to speak
and interact with the visitor
- clothes with sensors have digital materiality in that they
can record representations of their use in a digital format
Technologies
Sensor, RFID,
software offerings
in
the health and
wellbeing
Example: Tourism marketing impacted by IoT
- Purchasing behavior
o Integration of telecommunication devices & social media
o NFC, RFID & QR
o Retailer receives a report of purchase behavior of all tourists around the world
- Storytelling
o Objects & environments become actuated
o Objects can contain stories
o Bottle of wine with barcode. When you scan the barcode, a video of the history of the wine
begins (TOTEM technology)
- Communication
o Information is stored on a cloud database of objects and names in different languages
o Connection between devices of seller & tourist
o Tourist speaks in smart device, which activates the cloud database and sends the info to the
seller
“Marketing plays a crucial role in helping organizations understand the use of personal data and explore
opportunities to design and bundle offerings more suited to the way individuals experience and consume
products and services in context, in a more scalable way. Yet, while organizations could integrate personal
data across silos to develop new offerings, there is a need to respect the rights of individuals and reduce
vulnerabilities.”
B. Social media landscape
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Social media landscape
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Social community
- Relationship zone: conversation (sharing content) & collaboration
o External versus internal social network
▪ Internal: made by a company, only available for people that are a part of the
company
▪ External: everyone can see it
o Degree of spezialization
▪ Specialization: e.g fan pages
o Social objects (vertical networks)
o Openness
- Social presence: Brands as relationshop nodes
o Brand participation & Friendvertising
o Post content
o Brand engagement
o Brand fans
o Conversations: brands talk
Social publishing
- Content is the unit of value
o Providing a social object for community participation
o Social publishing ecosystem has evolved: range from amateurs to professionals
o Editorial, commercial or user-generated nature
▪ Editorial: giving general information that is linked with the product
▪ Commercial: to sell
▪ User-generated: every consumer can make content
o Content marketing
▪ General information
▪ It is not clear hat you want to sell a product
- Types of content
o Blog posts & feature articles
o Videos
o Press releases
o Webinars & presentations
o White papers, case studies
o Podcasts
o E-books
o Photos
o Newsletters
o Infographics
Social entertainment
- Events, performances, & activities designed to provide the audience with pleasure & enjoyment
o Entertainment sharing instead of knowledge sharing
o Games, music & art
o Branded entertainment
o Social entertainment as play: power, identity, fantasy & frivolity
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Social commerce
- Using social media applications to enable
1. online shoppers to interact & collaborate during shopping
2. buyers to complete the stages of the purchase decision process
3. assist marketers in selling to customers
- CRM, retailing & Sales, Human resources
- 5 steps during the shopping process
1. Problem recognition
2. Information search
3. Alternative evaluation
4. Purchase
5. Post-purchase evaluation
C. SEM marketing
= Search Engine Marketing
Two levels
1. Search Engine Optimalisation (SEO = unpaid):
- Increasing the prominence of a site on search lists
- Earning higher organic search engine rankings
2. Social Media Optimization
- Process that makes it more likely for content on a specific social media platform to be more
visible and linkable in online communities
- Earning organic links to content
SEO ≠ SEA
Search Engine Advertising (SEA = paid, e.g. Google AdWords)
Buying advertising space within search engines
Google uses an algortim to rank some websites
SEM marketing
- Highest bidder receives highest ranking
- Consumer mainly looks at the highest ordered ads (Gold, 2005)
- Higher ordered ads generate more click-through and conversion rates
Type of optimization
On-Site
Off-Site
SEO (Search Engine
Optimization)
Optimizing content value, tags,
keywords, titles, URL
SMO ‘Social Media
Optimization’
Including share tools and RSS
feed options
Publishing related content elsewhere
with links to original
Creating a linkwheel structure
Promoting on social news and social
bookmarking sited
Microblogging content headline and
link
Promoting social media press releases
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Level 1: SEO
- SEO is technical challenging
- Search Engines like Google use algorithms to rank sites within the search results, but this algorithm
changes frequently
- Very important for consumers
- Drive traffic: impact on conversion & ad revenues
- SEO: paid (SEA) & organic
Organic vesus paid results
- Paid results will apear first within the search list
- Organics results have no pay-per-click fees
- Organic results generate more site traffic, which probably is due to its higher credibility
How do consumers use search results?
- Use search engine
- Search engines provide a list with paid & organic results (SERP)
- The highest ranked results will be used more often: preferably top three (Golden Triangle). Lay-out
has changed which generates more scroling down the page.
How do search engines work?
- Producing a SERP
- Using web crawlers (Spiders & bots): automatic web programmas that gather site information
- Web crawlers follow all the links, collecting data untill the link network is exhausted
- After collecting the information, they classify it (index) using labels the site provide. This indexed
data uses tags & keywords from the proper sites
- An algorithm then determines which sites are identified and the ranking
On-site optimization
- SEO: Optimizing on-site indicators that web crawlers could index
- Keywords in tags, title, URL and content (areas crawled by the bots)
Long tail keywords
- Meta tag: code embedded in a webpage & only visible in source code. 3 or 4 keywords & metadescription. Example: superheroes, Spider man, adventure comics
- Title tag: HTML tag that defines the title page. No more than 12 words. Example: Vintage Comics
offers comic book collectors vintage adventure comics
- Heading tag: HTML tag to section and describe content.
- Title: main indicator of page content. The title should be filled with keywords. Do not use
metaphores or puns, but direct words.
- URL: use a static URL & include the titel or the keywords.
Keywords research
- What is the topic of your article? What words describe your article best?
- What terms are your competitors using as keywords?
- What words are suggested by keyword generators? (Google AdWords Keyword Tool)
- What are the derivatives of your keywords?
- How much search volume does the keyword generate compared to other keywords?
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Off-site optimization
- Off-site indicators: links
o Number of links to a website from other websites
o Credibility of the sites that have the website link
o The type of site promoting the link
o Ancor tekst (text in the link)
- Two approaches of creating links:
o produce related content with your links yourself
o stimulate their unaffiliated sites to use your links (affiliate marketing)
Linkwheels
The system can also be manipulated:
- Gateway pages
- Cloaking
- Link farms
Level 2: SMO
- SMO employs tactics to increase the chance that others will share and promote content:
encouraging the sharing of content
- People are targeted instead of machines
- SMO has an impact on SEO because links on social media are evaluated better by the crawlers.
On site optimization
- Title: catchy title (linkbaiting)
o Resource: helpful title
o Contrary: refuting accepting belief
o Humor: entertain
o Giveaway: promising something for free
o Research: claim about something interesting
- Share tools:
o plug-in
- RSS feeds
o Based on the previous information it will predict what you want to see
o RSS-reader houdt bij welke artikelen u al wel en niet gelezen heeft van uw favoriete website
of webblog
Off site optimization
- Social media press release
- Microblogs
- Social news and bookmarking
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D. Artificial intelligence
- Data, Use of mobile device, Cloud computing and Internet has contributed to the significant
development AI.
- AI is making a double-edged impact - constituting a significant source of innovation yet threatening
human jobs.
- AI is applicable in many different sectors
- AI offers opportunities to enhances campaign creation, planning, targeting, planning, and evaluation.
- Three key stakeholders are identified as the opportunities for AI in digital marketing are being
explored.
3 stakeholders AI
- Brands
o They need to understand their customers and communicate with them on a very personal
and emotional level.
- Agencies
o They are responsible for digital marketing strategies. They need AI to bridge the gap
between the brands, the customers and data.
- Consumers
o They need to engage with the brands’ marketing communications. They are the recipient of
the information and the generator of the data which is being used to targeting.
Opportunities
- Data – A large amount of data generated by the consumers provides an insight into their behaviour.
- Content Creation – There are opportunities for more innovated and relevant content creation.
- Content Sharing – With customers engagement and information collected, AI can be used to deliver
contents.
- The Availability of Data – Collecting and using the data may be challenging. GDPR and consumers’
willingness to release data.
- Resources – Though AI is getting much attention as a fast-developing technology, the cost needed to
it for digital marketing may be a limiting factor.
- Trust in AI – Consumers don’t trust it. Advertising practitioners are feeling that the machine is not
creative enough or it is going to take their jobs.
Artificial intelligence & marketing
“Artificial intelligence marketing (AI Marketing) is a method of leveraging customer data and AI concepts
like machine learning to anticipate your customer’s next move and improve the customer journey.”
Core Elements of Artificial Intelligence Marketing
1. Big data
2. Machine learning
3. Powerful solutions
Core Benefits of Artificial Intelligence Marketing
1. More Intelligent Searches
2. Smarter Ads
3. Refined Content Delivery
4. Relying on Bots
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Core Benefits of Artificial Intelligence Marketing
1. More Intelligent Searches
o Technology advances, but consumers become smarter
o Social media & rapid fire search engines
o A.I analyzes search patterns
2. Smarter Ads
o More tailor made
o A.I. solutions use key words, social profiles & other online data
3. Refined Content Delivery
o Consumer analytics go past the typical demographic level
o Individual tailored
o Identify potential clients
o Most relevant content
4. Relying on Bots
o Customer service & retention
o Save employee time & expenditures
o More efficient
Examples
- Product/content recommendations
- Data filtering & analysis
- Visual search & image recognition
- Social listening & sentiment analysis
- Product categorization
-
-
Product pricing
Predictive analysis
Sales forecasting
Computer vision & augmented reality
Copywriting
AI offers enormous opportunities for key stakeholders.
AI helps marketing agencies gets a better understanding of the data, to meet their goals and help
brands connects emotionally to their customers.
AI open opportunity for interdisciplinary collaboration involving AI developers and creative
individuals, enhancing the power of AI to develop appealing advertising campaigns.
E. Augmented reality
“AR will be as important as eating three meals a day.”
1. Counterbalancing cursory touching points
o Touchpoints are very fast
o AR will capture attention
2. Engaging consumers
3. Attract a lot of attention: it is new
4. Low threshold
5. Communicating with social media
Examples:
- Wearing clothes
- Furniture
- Makeup
- Fan photo
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F. Mobile marketing
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Mobile marketing
- SMS
- MMS
- Ingame mobile marketing
- Mobile web marketing
- QR
- Apps
3. added value of online communication & digital marketing
Online communication objectives = offline objectives
1. Generating brand awareness
Online ads, sponsorship, advergames, viral marketing
2. Shaping brand image and attitudes
Branded websites, online ads, email, mobile, online contests
3. Generating trial
Mobile, email, online contests, e-coupons, e-sampling
4. Creating loyalty
Email, branded websites, brand communities, loyalty programs
What is the added value of online compared to offline communication?
“The Internet is well suited for individualized, tailored value propositions”
1.
2.
3.
4.
It is new
Addressability & Customization capabilities
Integration of multimedia
Two-way continuous interactivity
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1. It is new
-
-
Changing Media Landscape:
o Circumvent by being New / Different
o Why does it work?
o New advertising techniques and formats are less recognized as advertising / commercial
Persuasion knowledge model
A. persuasion knowledge model
Personal knowledge about the tactics used in persuasion attempts. This knowledge helps consumers to
identify how, when, and why marketers try to influence them.”
-
Agent knowledge
o Nespresso
Persuasion knowledge
o Clooney
Topic knowledge
o Coffee
Development of Persuasion knowledge
- Own experience
- Socialization
- Link with Advertising in New Media
o New Advertising Format
- Media not associated with Advertising
Case study: New Media vs Other Media
The persuasive intent of new marketing strategies is less recognized as compared to more traditional
strategies, resulting in more positive persuasion outcomes.
H1: The perceived persuasive intent for advertising on SNS is lower than for advertising on TV.
SNS (Social Network Site) Campaign vs TV Commercial
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New Media in a multimedia environment
SNS in multimedia campaigns Theory
- Persuasion Knowledge / Change of Meaning
- Synergy Literature (overview: Stammerjohan et al. 2005)
H: The perceived persuasive intent for campaigns including SNS is lower, than for campaigns using only
advertising on TV, and consequently engenders more favourable affective and cognitive responses.
Format: TV-TV, SNS-SNS, Multi
Implications for Communication Management
1. Resistance towards SNS advertising is lower
2. In part determines success of SNS advertising
- COGNITION and BEHAVIOR
- NOT for ATTITUDES
Implications
1. Marketing goal should determine whether SNS advertising is part of the media strategy
2. Adopt New Advertising Formats quickly and stay ahead of the competitors
B. Native advertising & contextual advertising
Native advertising
- Ads that are seamlessly integrated into a user's feed and are nearly indistinguishable from organic
content.
- “In the flow of editorial content”
Effective because it is blurring the lines between (editorial) content and advertising.
To comply with Social Media Guidelines seems smart:
- Disclosures increase brand recognition and recall
- Disclosures do not always negatively influence brand attitude
- No risk for critique by authorities
Branded websites
1. Communication with your target group
2. Form attitudes
3. Create loyalty by being around 24/7 !
4. Using micro-websites
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Case study: Contextual advertising in branded websites
Are contextual advertisements effective?
- Contextual advertising
- Non contextual advertising
→ The layout of the banner plays a role
Priming effect in contextual advertisements
- Exposure to a certain stimuli increases accessibility of memory of related stimuli
- Unobtrusive exposure to soft drinks might increase brand memory of a subsequent ad for Coca-Cola
- First stimulus reduces time required to execute response to a second stimuli
Relevance of context stimuli
When the context (website) is relevant, this reduces processing time to process the ad (banner),
increasing recall, attitude,…
Assimilation effect

Contrast effect
Depending on situation and circumstances of ad exposure and ad complexity?
Assimilation vs. contrast effect
- Assimilation
o Bad influence goes to the entire group
- Contrast
o When you compare individuals
Complexity theory
1. Animations, colours, video, images,… increase complexity
2. Complexity has an influence on attention, recall, attitude
1. Context relevant:
- Low complexity, relevance prominent → assimilation effect
- High complexity, relevance less prominent => less effect
2. Context irrelevant:
- Low complexity, no attention → less effect
- High complexity, attention → contrast effect
Method of the study
- 2 (relevancy high vs. low) x 2 (complexity high vs. low) between subjects design
- Banner on a webpage
- N=120 (students)
- Relevancy: webpage & banner for family restaurant vs. banner for jewelry
- Complexity: images, colours,…
- Manipulations checked
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Results
Conclusions
- Contextual ads increase ad/brand recognition & attitudes
- Less complex ads lead to assimilation effects for contextual ads
- Complex ads lead to contrast effects for irrelevant ads
➔ Placing thematically congruent banners in websites work!
➔ If these are not too complex (no animation etc)
➔ If you are not able to place congruent ads in websites, best to make the banner complex
(animation, colour,…)
C. Content marketing
The key word content marketing is stagnating (it is a buzzword)
= Is the practice of creating, publishing, and sharing content with the goal of building the reputation and
visibility of your brand.
→ not with the goal of selling more products
-
“Content marketing is about your audience. What do they care about?”
“Content marketing is educational. It’s not about the products the company sells.”
“Content marketing takes a lot of work, persistence, and patience – It is not for everyone.”
“When you build an audience that trusts you, there are more likely to purchase your products.”
➔ It is all about sharing stories to strenghten the relation with your audience.
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D. Influencer marketing
- Social network
- Global
- Opinion
- Responsible
-
Share
Brand
Media
Word of mouth
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Wich statements are false?
- You always have to pay to work with an influencer
- You need celebrity’s for influencer marketing
- The ROI of influencer marketing is not mearable
- Inlfuencer marketing does not work in b2b
- In small markets you will reach to few people trough influencers
- You cannot organize inluencer markting on a big scale
➔ ALL STATEMENTS ARE FALSE
Influencer marketing is still rising, also a buzzword
1. what is it?
Influencer marketing is an action plan where you can strenghten your marketing message towards
consumers through humans who communicate it in a relevant way and communicate in a meaningful way
that people will take action.
You pay other people to promote your product
Influence = reach
-
x
engagement x relevance
Reach: how many followers?
Engagement: Strength of the relationship/number of interactions
Relevance: Match between influencer and company
2. who does it?
Relevance
- Influencer segmentation
- Creating persona’s: celebrity, authority, connecter, personal brand, activist, analyst, expert, insider,
journalist & innovator
Macro-influencers versus micro-influencers
- Macro-influencers
o Macro-influencers have a large reach
o Taylored for mass communication
▪ It is like sponsoring
o Large paycheck
o Similar with sponsordeals
- Micro-influencers
o Niche influencers
o Limited reach
▪ Specific reach that macro-influencers wouldn’t reach
o High interactivity & relevance (Targeted influencer marketing)
o Do not cost a lot of money
o You can build longlasting relations
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Why micro-influencers
- Trusted
o Opinions evoke high degrees of credibility and confidence from friends & followers
- Brand relevant
o High connection with brand, product and brand relevant topics
- High in volume
o Exist in greater numbers than mega or macro-influencers, able to generate content at scale
- Are loyal
o Have existing brand relationship based on purchase history and positive brand affinity
- Will advocate
o Will recommend or publically support brand and products
- Have influence
o Able to drive friends & followers to take a desired action
3.why do it?
1. Increase the awareness of your company, boost your image or highlight the visibility of a ceetain
product just before the launch
2. Increase sales by generating more leads
3. Retention by stimulating loyalty
4. when do it?
1. Launching a new project
- Creating buzz
- Nichemarket
- Innovative product
- Small budget
2. Awareness campaign
- Build a relationship with influencers and provide them with enough information
- They will pick up newsmessages
- They will communicate spontaneously
- The will link other relevant issues more with your company
3. Lead generation
- When you want to sell more
- Links to the companies website
- Affiliate links: only use this for the right type of influencer
4. Crisis management
- Talk with your influencers behind the scenes
- Not only contact positive, but also more critical influencers
o They have more credibility, are used to be more critical
5. where can you find them?
- Search engines
- Software tools
- Market place
- Events
- Influencer offices
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6. which channels do you use?
When choosing a channel, keep in mind the following guidelines:
1. Always have your target group in mind
2. Lay-out of your content has an impact
3. Monitor the environment for other possible channels where you can use influencers
Channels:
- Blog
- Facebook
- Twitter
- LinkedIn
-
Instagram
Youtube
Vine
Snapchat
7. new technologies
- Mobile
- Deacreasing of organic reach
- Virtual reality
o No real persons - Fake personas
2. Addressability & customization
A. The age of the consumer
- “The age of the consumer”: consumer now dictates business and marketing strategies
- They have the technology to access and accept marketing messages
- They expect to receive relevant ads that actually improve their shopping journeys
➔
- Marketers face heavier demands to use their budgets effectively and avoid wasted ad dollars.
- Marketers must work harder to break through an increased volume of noise as consumers shift from
devices and channels more quickly
- The power of large TV networks is declining as consumers transition to online viewership as their
preferred channel for viewing televised content.
- The answer is addressable media – an approach that is accurate, and therefore relevant
1. People-Based Advertising Impacts Performance Results
2. Traditional TV is No Longer the Top Dog
3. Traditional Loyalty is a Thing of the Past
4. Personalization is a Customer Expectation
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3. Two-way continuous interaction
Commonly seen as
- the crucial distinction between traditional and new media &
- vital element of successful online advertising
Multidimensional nature
Liu & Shrum, 2002
Two-way
communication
-
bi-directional flow of information
direction of communication
Synchronicity
-
time
speed of response
responsiveness
user control
a user’s ability to voluntarily participate in and instrumentally
influence a communication
control
Active Control
-
A. Interactivity as a tool
Level of Interactivity: Marketing Tools
Perceptions and features
Actual interactivity:
“the degree to which two or more communicating parties can act on each other, on the communication
medium, and on the messages and the degree to which such influences are synchronized”.
Weak relation between the two
Several studies that analyze descriptives
General conclusion: Across media, across user groups, across countries,… companies and organizations
do not optimally use interactive features
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Case study: politicians on twitter
Case study: interactivity effects by using twitter
- Content analyses: tweets posted by political candidates during the Dutch national elections of 2010
(N = 40,957)
- Dataset #number of votes for electable political candidates
Results
- Candidates who used Twitter received more votes than those who did not.
- Candidates who used Twitter interactively received more votes
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Case study: interactivity effects by using a website
Results for Interactive site
More politically involved
1. Closer to politician: More open for dialogue
2. Increases interest in politics: Higher intention to revisit
Case study: Interactivity by using branded websites
Results
1. Positive attitudes toward the site and brand
2. Higher levels of information processing
3. More product related thoughts
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Why does interactivity work? Do you prefer it in communication?
B. Flow
Evidence for interactivity Websites
- Information Processing
- Flow
o Psychological state
o Loose perception of time
Multi-dimensional construct
- Perceiving control over interaction
- Extent to which attention is focused on interaction.
o Curiosity aroused by interaction
- Extent to which user experiences interaction as intrinsically interesting
Social interaction
- Possibility to always be connected with your friend and family
- Changing the way, the frequency and how people are interacting with each other
- Possibility to promote products for free
o E-Wom
▪ Electronic worth of mouth
o Viral marketing
Evidence for interacting with a brand in SNS advertising
Disclosure – liking effect
4. Integration of multimedia
A. Cross-media marketing
Lot of different devices, that can be integrated
-
mobile phone
computer
television
tablet
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4. Advertising in digital & mobile gaming
Digital games
- Becoming more popular
- One of the fastest growing sectors in entertainment business ( bigger than music, film, …)
o $80 billion in 2015 → $100 billion in 2018
- We also spend more sparetime in playing digital games compared with the time we spend with
traditional media
Examples:
- GTA: 1. Best-selling entertainment products (bv. GTA V: more than 54 million copies)
- Candy crush: For a diverse audience
- League of legends: Loyal player base: League of Legends has 32 million active players
I. Advergames
Digital games can also be used to persuade people
- Integrate persuasive messages in a digital game:
o Entertainment > Persuasive message
o Product placement
- Create a game to bring a persuasive message
o Entertainment < Persuasive message
o Advergames
▪ E.g. M&Ms, Cheetos, Burger King
Must haves of advergames
- Fun
o Consumers have a short attention span
o Combine fun & educational
o Variety
o Reward system:
▪ discounts
▪ virtual goods
o Leaderbords
o Sharing systems
- Representative of your brand
o Avoid obvious advertising (persuasion knowledge)
o Product placement is delicate
o Work with professional gaming studios
o Create an unique world
o Key values can be communicated
- A business goal in mind (objectives)
o Organized & prioritized
▪ Building brand or product awareness
▪ Driving traffic
▪ Conversion/boost sales
▪ Collecting data
▪ Education
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Serious games
➔ More for governments, more subtle
II. Effect of gaming on behavior
Digital games have 5 distinctive features making digital games an ideal medium to deliver a persuasive
message
1. Multimodality
- Digital games are becoming more and more realistic
- Digital games excite different senses of consumers
o Visual stimuli
o Auditive stimuli
o Haptic stimuli
▪ The controllers
2. Interactivity
Players have an active role in the gaming environment. They have to make choices and those choices
have an immediate impact on the further development of the game.
3. Story
Digital games offer players a chance to be part of a larger story
4. Gaming experience
Digital games give players the opportunity to encounter a virtual reality where everyting is possible
5. Social interaction
Digital games offer a lot of possibilities for social interaction
- Single-player) or multiplayer
- Online or in the same physical room
- Looking at friends playing the game
→ 1 of the most important reasons for playing a game!
➔ These 5 features create a feeling of involvement and immersion: players have the feeling that
they really are part of the gaming world and they lose track of time (has impact on the flow,
which had impact on the brand attitude)
Why would digital games be a good medium to deliver a persuasive message?
Effectivity of messages in digital games
The 5 features of digital games and the creation of involvement and immersion have an impact on the
effectivity of the message in a digital game.
1. The motivation of consumers is higher to process the message
2. Better understanding of the message
3. Changing the attitude
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Chapter 12 Digital Communication Part 2
Digital communication = two-way communication
Sending information & Responding to information
 Social media as online communication channel →
Receiving information
➔ 2 way communication
Communication plan
- Situation analysis - Where are we and why to communicate?
- Target groups
- Objectives - What to say to whom to achieve what and at which cost?
- Budgets
- Message and creative strategies – How to do it?
1. Social media as a digital communication channel
2. How to send information: how to go viral?
3. How to respond to information: to your customer and to your opinion community?
- Tools and touchpoints
- Evaluation - How well have we done and what should we change?
4. How to receive information?
- Control
Key concepts
- Adjustment effects = Factors which cause us to adjust our underlying opinions before we express
them.
- Anecdotal referencing = The practice of reading a collections of comments and selecting a smaller set
for further scrutiny.
- Arousal = A state of activation and readiness for action.
- Behavioral residue = The physical trace or remnant that most actions or behaviors leave in their
wake.
- Collective opinion = This represents the consensus reached by the group in an online opinion
community. Compromises are necessary.
- Combined opinion = This opinion reflects the underlying and unbiased opinion of those surveyed in
the online opinion community.
- Game mechanics = The elements of a game, application, or program including rules and feedback
loops that make them fun and compelling.
- Inner remarkability Remarkable things are things that are unusual, extraordinary, or worthy of notice
or attention.
- Life cycle dynamics = The results of a new product spreading across the population in stages.
- Low-involvement posters = Those who write online product reviews infrequently and likely for just a
subset of products that they have purchased.
- Lurkers = Those wo consume other’s posted content without providing any content themselves.
Lurkers see social media as a source of information.
- NWOM = Negative worth of mouth
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-
-
Online echo chambers = Online opinion communities in which the participants reinforce one
another’s opinions.
Opinion activists = Those individuals who are highly engaged in an opinion environment, which they
manifest by posting more frequently than others.
Opinion expression = An individual’s decision to communicate his or her opinions to others.
Posters = Those people who post on social media. Posters turn to social media to express
themselves. While they may also be interested in the opinion of others, their primary motivation is
not to consume social media content but to create social media content.
Selection effects = Factors that influence our decision of whether or not to share an opinion.
Selective listening = Refers to the practice of monitoring only one or a limited set of social media
venues.
Sequential dynamics = The results of the difficulty in identifying reviews that provide a preference
match.
Social dynamics = The systematical shift of expressed opinions as a result of the social environment.
Social currency = Social currency helps people achieve desired positive impression among their
families, friends, and colleagues.
Social environment = Expectations of our families, the peer pressure by friends, workplace culture by
colleagues, etc.
Social media intelligence = When correctly interpreting the data retrieved from social media
monitoring.
Social media monitoring = When organizations examine our behaviors on social media, it is engaging
in social media monitoring.
Subjective norms = The social influence of others
Web 1.0 = Web 1.0 is the online web mainly determined by one-way traffic
Web 2.0 = Web 2.0 is the online web mainly determined by two-way traffic
Web 3.0 = Web 3.0 is the online web mainly determined by user-relevance
WOM = worth of mouth
Word count = Counting the number of times words appear in a given set of documents
Word cloud = A visual representation of commonly used words found in a collection of documents.
In a word cloud, the font size of the word represents the frequency with which that word was used.
Utility functions = A function that breads down the value to the user of the product, service, or
experience into its components part.
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1. digital communication channel: social media
1.1 What is social media & different types of social media
1.1.1 Online communication = two-way communication
Online communication is “two – way communication”. A firm, service, cooperation, etc. sends a message
into the world via the world wide web. But this online environment enables consumers, potential
consumer and non-consumers to react to this message. Mostly this is done by social media. These
reactions are looked for by the firms as this can provide them information on how to change strategies. In
some cases responses to these reactions or community opinion are required to optimize the brand, brand
images, increase sales, etc.
1.1.2. Web 1.0, 2.0,3.0
Web 1.0 can be described as one-way traffic. The user can only see information but is unable to add
information, react to information or to comment on information. This is the crucial difference between
Web 1.0 and Web 2.0. (e.g., online MP3)
Web 2.0 can be described as interactive, integrated in daily live, less privacy, user friendly, mobile and
omnipresent. Characteristics of Web 2.0 are the following:
-
-
-
-
-
Social media: Social media is about sharing information, networking and having influence via online
media such as weblogs. Social media messages have a lot of influence, more than, for example, an
online newspaper. You could see social media as the modern versions of Public Relations. (e.g.
Facebook, LinkedIn, Twitter, etc.)
User friendly: Online content is much more structured and the user does not need to spend hours to
retrieve the right information. Web 2.0 is faster and requires less knowledge. It is not only easier for
user, but also less complex for programmers. Programming languages such as HTML and CSS make
building websites much easier.
User generated content: Content is generated by a random person. This person can upload this
content and make it public. In most cases, the public can react and comment on this content. (e.g.,
flickr.com, you tube)
Crowdsourcing: Is the act of commonly collecting information enabling to retrieve a lot of information
in a short amount of time. This often happens voluntarily and is very efficient. Besides sharing
information, crowdsourcing can be used to generate new ideas for products or services (e.g.,
Wikipedia)
Collaboration: In collaboration with the consumer consideration is given to the evolution of products
or services. The customer can make demands and provide his or her opinion, which serves as a
valuable input for the producer. In this way the products can really answer customer needs, which
increases the profit of the producer.
When speaking of Web 2.5 or Web 3.0, we speak about relevance. This means that everything you want
to know will be shared immediately. For example, when somebody searches for a new car, he can activate
an application which shows which cars are for sale in the surrounding streets or neighborhood.
Information in the context of Web 3.0 is much more specific and makes life much more easy. It is time
saving and takes away our worries. 2.2. How to use social media for branding
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Social media & web 2.0
→ interactivity
Web 3.0: Internet of Things
Social media
Online social media providers are online platforms (websites or applications) on which:
1. Content
o regardless of format
o can be accessed, published and shared and/or enables social networking between
individuals (user generated content)
2. “Social” aspect
o plays a key, predominant role in the setup and overall working of the platform
3. Commercial content
o at least one type of a clearly identifiable commercial practice is present
1.2 Using social media for branding
Possibilities for brands
- Be active:
o Creating a bond with your customers by taking the lead in the interaction process
o E.g. prosumers = participants are producers and consumers.
o E.g. Redbull
- Be interesting
o Engage your customers by listening to them
o What do they want to talk about?
- Be humble
o Learn about the basics of social media before you use them
- Be unprofessional
o Don’t act as a brand or company, but as a friend
- Be honest
o Respect the rules of the game
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Top 5 mistakes
- Missing media coverage
- Neglecting Linkedin
- Avoiding interaction
- No visuals
- Too much self-focus
1.2.1 CASE STUDY Red Bull
Branded content is a huge area in social media at the moment but most brands get wrong by focusing on
peppering their logo and branding over everything. Red Bull has a much better understanding of the subtle
nature of this medium. The key to branded content is creating something that people want to watch and
share but at the same time something which fits in with the core values of the company’s brand.
Branded content comes in many forms but video, audio, graphics and blogs are the crème de la crème as
brands offer the consumer something more meaningful than competitions and promotions. Facebook,
Twitter and YouTube fans have their positive response and love this. All these can be tied into a lead
generation funnel simply by fans subscribing to the brand’s many platform.
-
Sporting events, festivals
Asks people to make videos
Different channels
26.8 million ‘likes’; Ranks in the top 50 branded Pages
It is something we want to share
It transforms an audience into a community
1.2.2: brand stories
Creating brand stories
“[brand] stories can help build awareness, comprehension, empathy, recognition, recall, and provide
meaning to the brand”
-
A story is easy to remember, easier
It helps to empathize with the brand
Brand stories on social media
“A brand is no longer what we tell the consumer it is — It is what consumers tell each other it is.”
-
No longer one-to-many communication
No longer full control
➔ Consumer-generated brand stories
o Positive or negative, based on brand experiences
o Digital, available, visible, dynamic, …
Managing brand stories on social media
- Stimulate positive brand stories? (see: 2. Sending information)
- How to react on critical brand stories?
➔ Integrate consumer-generated brand stories
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“Brands are a collective, co-creational process involving several brand authors who all contribute their
stories”
-
Consumer use brands as identity construction
Brand communities → group identification
Consumer generated brand stories: more narrative, drama,… → persuasive!
1.2.3: consumer generated ads
Social media websites such as Facebook, YouTube and Twitter provide unlimited means for internet users
to interact, express, share and create content about anything, including brands. According to Muntinga,
Moorman and Smit (2011) there are three levels interactivity of consumers’ online brand-related activities
(COBRAs):
1) Consuming (= lowest level of brand related activeness), e.g.: Viewing brand-related video
2) Contributing ( = medium level of brand related activeness), e.g.: Rating products and/or brands
3) Creating ( = low level of brand related activeness), e.g.: Publishing a brand-related weblog
Effectiveness of consumer generated ads
- Perceived as credible messages, but not authentic
- Influence on brand performence (suggested by E-wom, brand community literature, studies on crisis
communication)
- Unclear which formats works best (review, comments, videos,…)
- Positive influence when…
o It is clear that consumers made the content
o Constrainted critical processing
o Brand fans
o Increased similarity with the consumer (additional information)
Motivation to create
- Cobra: consumer brand related activities online (Muntinga et al., 2011)
o Consuming
o Contributing
o Creating
- Why?
o Entertainment,
o Expressing one’s identity,
o Connecting to others,
o Empowerment (highest level of activeness)
- Brand community literature (<-> social media):
o consumers are savy creators → provide them with the ‘raw’ materials
o Brand discussion followed by the brand manager
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1.3 Social media & viral marketing
Viral marketing is a common method for commercial advertising as it 1) means low or no costs for the
advertiser and 2) as implies a “snowball effect” or “exponential growth” of content sharing. Jonah Berger
(2016) wrote a book with 6 STEPPS which help advertisers making their message go viral.
Viral marketing
- Email, ‘tell a friend’, social media,…
- Personal recommendation
- High source credibility
- Online more impact: Faster + worldwide
Snowball method – exponential growth:
1. If every person shares it with someone else → long life time
2. 81% send a recommendation to somebody else, 50% to 3-4 persons
3. Important to have a good seeding base to start with
+ Low-no costs for advertiser
- Possible negative reactions, little control
-
Objectives determined in terms of length of the action, total reach
(but do not forget the ‘SO WHAT?’ → see “3. receiving information”)
Used a lot for commercials
Higher intention to share:
1. Funny
2. Controverse
3. Meaningful
4. Sex related
5. → See “2. Sending information: How to go viral?”
1.4 Concerns for companies: NWOM
Negative worth of mouth (NWOM) on online communities is one of the biggest dangers of online
communication channels for companies. In chapter 3 of this syllabus we will discuss the causes of negative
worth of mouth and potential solutions towards this negative vicious circle.
= Negative worth of mouth (NWOM)
NWOM …
- A true concern?
- How to interpet NWOM → SOCIAL MEDIA INTELLIGENCE
→ see: “3. Receiving information”
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2. Sending information: how to go viral?
2.1 Conversation
-
Share your message
Listen to your audience
Why things catch on
- Example: restaurants
o Highly competitive, many fail
o Why become popular?
▪ Product quality
▪ Price
▪ Advertising
-
Example: YouTube video’s
o Why gets more views?
▪ Free
▪ No advertising
2.2 worth of mouth (WOM)
2.2.1. Traditional advertising vs worth of mouth (WOM)
Word of mouth (WOM) is an effective marketing strategy. The things others tell us, e-mail us, and text us
have a significant impact on what we think, read, buy, and do. We try websites our neighbours
recommend, read books our relatives praise, and vote for candidates our friends endorse. Word of mouth
is the primary factor behind 20 percent to 50 percent of all purchasing decisions. Consequently, social
influence has a huge impact on whether products, ideas, and behaviours catch on. Word of mouth (WOM)
is more effective than traditional advertising for two key reasons.
1) It’s more persuasive:
Advertisements usually tell us how great a product is. But because ads will always argue that their products
are the best, they’re not really credible. Our friends, however, tend to tell it to us straight whether or not
a product is great. Their objectivity, coupled with their candidness, make us much more likely to trust,
listen to, and believe our friends.
2) It’s more targeted:
Companies try to advertise in ways that allow them to reach the largest number of interested customers.
Word of mouth, on the other hand, is naturally directed toward an interested audience. We don’t share a
news story or recommendation with everyone we know. Rather, we tend to select particular people who
we think would find that given piece of information most relevant. Word of mouth tends to reach people
who are actually interested in the thing being discussed.
Traditional advertising
- Less persuasive
o Argue that their products are the best
o Not really credible
- Less targeted
o Try to reach the largest number of
interested customers
o TV shows
o Magazines
➔ Less effective
Word of mouth
- More persuasive
o Friends would tell both negative and
positive product experiences
o Highly credible
- More targeted
o Naturally directed toward interested
audience
➔ More effective
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Big impact
- Primary factor behind 20 – 50 % of all purchasing decisions (McKinsey & Co).
- Conversation 1 new customer → $200 increase in restaurant sales
- 5-star (vs. 1-star) review on Amazon.com +20 books sold
- ...
2.2.2 Online and offline
The first issue with all the hype around social media is that people tend to ignore the importance of offline
word of mouth, even though offline discussions are more prevalent, and potentially even more in-depth
and more impactful, than online ones.
The second issue is that social media platforms such as Facebook and Twitter are technologies, not
strategies. Word-of-mouth marketing is effective only if people actually talk. Just putting up a Facebook
page or tweeting doesn’t mean anyone will notice or spread the word.
Harnessing the power of word of mouth, online or offline, requires understanding why people talk and
why some things get talked about and shared more than others. The psychology of sharing. The science of
social transmission. Some online content goes viral while other content never gets passed on. Some
products get a good deal of word of mouth, while others go unmentioned. Why?
-
People spend a lot of time offline
Offline conversations may be more in-depth
Online word of mouth is just easier to see
Online word of mouth could reach more people
o YouTube: 50% < 100 views – 1/3 of 1% > 1 million
Understanding psychology of sharing
- Why people talk
- Why some things get talked about and shared more than others
➔ 6 key STEPPS for viral marketing
2.3 6 key STEPPS to viralness
1.
2.
3.
4.
5.
6.
Social Currency
Triggers
Emotion
Public
Practical Value
Stories
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1. Social currency
Research finds that more than 40 percent of what people talk about is their personal experiences or
personal relationships. Similarly, around half of tweets are “me” focused, covering what people are doing
now or something that has happened to them (Berger, 2016). Why do people talk so much about their
own attitudes and experiences? It’s more than just vanity, we’re actually wired to find it pleasurable to
share information about the self. But not all kinds of self-information are likely to be shared. People prefer
sharing things that make them seem entertaining rather than boring, clever rather than dumb, and hip
rather than dull. Word of mouth, then, is a prime tool for making a good impression. Think of it as a kind
of currency more specific ‘social currency’. Just as people use money to buy products or services, they use
social currency to achieve desired positive impressions among their families, friends, and colleagues.
So to get people talking, companies and organizations need to mint social currency. Give people a way to
make themselves look good while promoting their products and ideas along the way. There are three ways
to do that: (1) find inner remarkability; (2) leverage game mechanics; and (3) make people feel like insiders.
-
-
-
What do we share?
o Personal experiences/relationships
▪ 40 percent of what people talk about
Why do we share personal stuff?
o Intrinsically rewarding
▪ Sharing personal opinions activates reward system in brain (good food)
o Impression management
▪ Identity signalling
▪ Making good impression through word of mouth
Use money
o To buy products or services
▪ New car
▪ Prada handbag
-
versus
Use social currency
o To achieve desired positive
impressions
▪ Seem entertaining not
boring
▪ Seem clever not dumb
▪ Seem hip not dull
Companies
- How to get people talking about us?
- Possible to look good while promoting products?
- Three ways to do that:
1. Find inner remarkability
2. Leverage game mechanics
3. Make people feel like insiders
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1.1 Inner remarkability
Remarkable things are defined as unusual, extraordinary, or worthy of notice or attention. Something can
be remarkable because it is novel, surprising, extreme, or just plain interesting. But the most important
aspect of remarkable things is that they are worthy of remark. Remarkable things provide social currency
because they make the people who talk about them seem, well, more remarkable. Sharing extraordinary,
novel, or entertaining stories or ads makes people seem more extraordinary, novel, and entertaining. Not
surprisingly, then, remarkable things get brought up more often. The key to finding inner remarkability is
to think about what makes something interesting, surprising, or novel. One way to generate surprise is by
breaking a pattern people have come to expect.
-
-
-
-
Remarkable things
o Unusual
o Extraordinary
o Worthy of notice or attention
Remarkable things provide social currency
o Saying remarkable things = being remarkable
Remarkable things get brought up more often
o Correlation between remarkability and how frequently they were discussed
Remarkability shapes how stories evolve over time
o Exaggerate: more extreme or entertaining
▪ e.g. cockroaches experiment
▪ e.g. Telephone game
Create remarkability
o Think about what makes something interesting, surprising, or novel
o Break down expected patterns
o Mysteries and controversy
Can be applied to everything
o Product, service, idea, ...
1.2 Leverage game mechanics
Game mechanics are the elements of a game, application, or program—including rules and feedback
loops—that make them fun and compelling. One way game mechanics motivate is internally. We all enjoy
achieving things. Tangible evidence of our progress, such as solving a tough Solitaire game or advancing to
the next level of Sudoku puzzles, makes us feel good. So discrete markers motivate us to work harder,
especially when we get close to achieving them. But game mechanics also motivate us on an interpersonal
level by encouraging social comparison. People don’t just care about how they are doing, they care about
their performance in relation to others. Just like other animals people care about hierarchy.
Leveraging game mechanics requires quantifying performance. Some domains like golf handicaps and SAT
scores have built-in metrics. People can easily see how they are doing and compare themselves with others
without needing any help. But if a product or idea doesn’t automatically do that, it needs to be “gamified.”
Metrics need to be created or recorded that let people see where they stand—for example, icons for how
much they have contributed to a community message. And because this provides social currency, people
love to talk about it.
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-
-
-
-
-
Game mechanics =
o Elements of a game that make them fun and compelling
o Keep people engaged, motivated, and always wanting more
Increase motivation at internal level
o Enjoy achievement
o Tangible evidence
▪ e.g.: buy-ten-get-one-free
Increase motivation at intrapersonel level
o Winning
o Social comparison: Being better than others
▪ A: Your current yearly income is $50,000
▪ B: Your current yearly income is $100,000
A: Your current yearly income is $50,000; others earn $25,000.
B: Your current yearly income is $100,000; others earn $200,000.
Building good game
o Quantify performance
▪ Built-in metrics
▪ Gamified
• Created or recorded metrics
• Let people see where they stand
• Frequent flyer program
o Helping people publicize achievements
▪ Tangible, visible symbol displayed to others (Major@Foursquare)
Achievement = social currency
1.3 Feel like insiders
Scarcity and exclusivity boost word of mouth by making people feel like insiders. If people get something
not everyone else has, it makes them feel special, unique, high status. And because of that they’ll not only
like a product or service more, but tell others about it. Why? Because telling others makes them look good.
Having insider knowledge is social currency.
-
-
Accessibility
o Scarcity
▪ High demand
▪ Limited production
▪ Restrictions on the time or place you can acquire them
o Exclusivity
▪ Accessible only to people who meet particular criteria
Less accessible, high desire to acquire
o Feel special, unique, high status
Insider knowledge = social currency
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2. triggers
There is no correlation between levels of interest, novelty, or surprise and the number of times people
talked about the products. People talk about what triggers them, about what is top of mind! At any given
moment, some thoughts are more top of mind, or more accessible than others. Some things are chronically
accessible. But stimuli in the surrounding environment can also determine which thoughts and ideas are
top of mind. Sights, smells, and sounds can trigger related thoughts and ideas, making them top of mind.
Why does it matter if particular thoughts or ideas are trigger or are top of mind? Because accessible
thoughts and ideas lead to action!
-
-
What makes people talk about products/brands?
o Interest?
o Novelty?
o Surprise?
No correlation between these and number of times people talk about products
Why not?
Depends on type of word of mouth
o Immediate?
o Ongoing?
Immediate word of mouth
- Share something soon after it occurs
- Movies, new food products, ...
- Interest!
- Novelty!
- Surprise!
Ongoing word of mouth
- Share something in the weeks and months
that follow
- Most products, ideas, new policy initiatives,
social campaigns
- What keeps people talking?
➔ triggers!
What elements will trigger people to talk about your brand?
-
Chronically accessible/top of mind
o Sports fans think off favorite teams
Triggers
o Stimuli in the direct environment
o Sights, smells, and sounds can trigger related thoughts and ideas
o Making them more top of mind
➔ Action!
Examples
- Mars sold more candy bars after NASA mission to Mars
- Music in stores
o French => more French wines sold
o German => more German wines sold
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Triggers
- Small talk to keep conversation going
- About what?
- Triggers!
- Top of mind = tip of tongue
➔ Triggers = word of mouth
- Consider the context!
o Triggered by the everyday environments of the target audience
o Growing the habit
Good triggers
- Frequency:
o One key factor is how frequently the stimulus occurs;
- Strength of the link
o The more things a given cue is associated with, the weaker any given association
o E.g. the color red is associated with many things: roses, love, Coca-Cola, fast cars. As a result
of being ubiquitous, it’s not a particularly strong trigger for any of these ideas.
o A good trigger only has 1 unique association
- Consider the context:
o Important to pick triggers that happen near where the desired behavior is taking place.
o What would receive more word of mouth?
▪ Churios or Disneyland
• Each morning we eat breakfast
• Disneyland doesn’t come up often
-
Social currency
o Make us look good
Triggers
o Top of mind, tip of tongue
Social currency gets people talking, but triggers keep them talking
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3. Emotion
Marketing messages tend to focus on information (e.g., public health), but many times information is not
enough. Additional information often won’t get people to change their behavior. They need something
more and that is where emotion comes in. Rather than harping on features or facts, we need to focus on
feelings, the underlying emotions that motivate people to action.
AWE as a driver of WOM
Awe is the sense of wonder and amazement that occurs when someone is inspired by great knowledge,
beauty, sublimity, or might. It’s the experience of confronting something greater than yourself. Awe is a
complex emotion and frequently involves a sense of surprise, unexpectedness or mysteries. Awe boosts
sharing!
The importance of arousal
Arousal is a state of activation and readiness for action. The heart beats faster and blood pressure rises.
Just like inspiring things, or those that make us angry, funny content is shared because amusement is a
high-arousal emotion. Low-arousal emotions, however, like sadness, decrease sharing. Contentment has
the same effect. Contentment isn’t a bad feeling. Being content feels pretty good. But people are less likely
to talk about or share things that make them content because contentment decreases arousal. When
trying to use emotions to drive sharing, remember to pick ones that kindle the fire: select high-arousal
emotions that drive people to action.
-
-
What makes online content viral?
o Webcrawler on The New York Times
o Which articles make the Most E-mailed list
Surprising, interesting, or practically useful content
Valence: positive/negative
- Positive content is more viral than negative content
o 13 percent more likely to make the Most E-Mailed list
BUT
- Anger and anxiety?
o Increase not decrease sharing
Physiological arousal
- State of activation and readiness for action
- The heart beats faster and blood pressure rises
- High-arousal is more viral than low-arousal
o For both negative and positive messages
Positive
Negative
High arousal
Low arousal
- Awe
Contentment
- Excitement
- Amusement
- Anger
Sadness
- Anxiety
The power of awe
- Mixed emotion of reverence, respect, dread, and wonder inspired by authority, genius, great beauty,
sublimity, or might
- Awe-inspiring articles were 30% more likely to make the Most E-Mailed list
- Positive valence and high-arousal
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The power of anger
- More than 14 million views
- Top 10 Viral Videos of 2009
- United felt negative effect immediately
o Stock price fell 10 percent—the equivalent of $180 million
Focus on information → focus on feelings
High-arousal emotions
- Kindle the fire: activate people and drive them to take action
o Excite or inspire people
▪ E.g. Google
o Make people mad not sad
Emotional arousal → Sharing
Physical arousal → Sharing?
- Experiment
- Run versus relax
- Heart rate/blood pressure increases or not
-
75% versus 33% shared article
After running you tend to share more
1) How to find emotional drivers?
→ Ask 3 times why?
(why use toilet paper? Because I want to care for my family? Why? Because I love them? Why?...)
2) How to pick the right emotion
→ pick the one that kindles the fire!
4. Public
What is publicly visible will be shared! So make sure people can observe or can see a behavioral residue
as these lead towards imitation!
Psychology of imitation: People imitate, in part, because others’ choices provide information. We don’t
know the right answer, and even if we have some sense of what to do, we’re not entirely sure. So to help
resolve our uncertainty, we often look to what other people are doing and follow that. We assume that if
other people are doing something, it must be a good idea. They probably know something we don’t.
psychologists call this idea “social proof”.
Observability: The visibility of various domains influences the manner in which people pursue status (or
social currency) in their daily lives.
Behavioral residue: Is the physical traces or remnants that most actions or behaviors leave in their wake.
When publicly visible, these remnants facilitate imitation and provide chances for people to talk about
related products or ideas. Behavioral residue exists for all types of products and ideas. Tiffany, Victoria’s
Secret, and a host of other retailers give customers disposable shopping bags to carry their purchases
home. Because of the social currency associated with some of these retailers, many consumers reuse the
bags rather than tossing them. Along the way this behavioral residue helps provide social proof for the
brand.
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-
-
Public visibility/observability
o Seeing what others do → imitate what others do
Psychology of observability
o Impact on whether products and ideas catch on
o Impact real behavior
o The more public a product or service is, the more it triggers people to take action
Psychology of imitation
o Information
o Resolve uncertainty
o Social proof
▪ E.g. Kidney, 29 people refused it, so I will refuse it too, even if I need it
How can products or ideas be made more publicly observable?
- Advertise themselves through observable usage
o Big logos
o Distinctive characteristics
o Signature lines (e.g., “Sent from my iPhone.”)
o E.g. Apple logo on laptop
- Behavioral residue
o Discernible evidence that sticks around afterwards
o Difficult to observe otherwise
o Provide insight into who people are and what they like
o Facilitate imitation
o E.g. charity brand: people who donated get a wristband
o E.g. Victoria’s Secret
Should we always make things public? NO!
- Preventing behavior requires the opposite: MAKE THE PUBLIC PRIVATE!
o If you want to get people NOT to do something, don’t make it public.
▪ Make others’ behavior NOT/LESS observable.
▪ Only make it people if you want people to do
o Solution: Highlight what people should be doing instead.
5. Practical Value
If Social Currency is about information senders and how sharing makes them look, practical Value is mostly
about the information receiver. It’s about saving people time or money, or helping them have good
experiences. Sure, sharing useful things benefits the sharer as well. Helping others feels good. It even
reflects positively on the sharer, providing a bit of Social Currency. But at its core, sharing practical value
is about helping others.
Package your information well
How the information is packaged determines its practical value: Is it easy to see what the main points are
and links for further information?
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Information must be relevant for the target audience
You might think that content that has a broader audience is more likely to be shared. After all, people have
way more friends with whom they could share the article, so shouldn’t it end up reaching more people
overall? The problem with this assumption, though, is that just because people can share with more people
doesn’t mean they will. In fact, narrower content may actually be more likely to be shared because it
reminds people of a specific friend or family member and makes them feel compelled to pass it along.
While broadly relevant content could be shared more, content that is obviously relevant to a narrow
audience may actually be more viral.
Every product can have practical value
Almost every product or idea imaginable has something useful about it. Whether it saves people money,
makes them happier, improves health, or saves them time, all of these things are news you can use. So
thinking about why people gravitate to our product or idea in the first place will give us a good sense of
the underlying practical value.
-
People share practically valuable information to help others
Focus on information receiver ( social currency)
Sharing is caring ( emotions: caring is sharing)
What is practically valuable enough to pass along?
o Saving money!
▪ Talk about how people can save money
o Helping people do things they want to do
SAVING MONEY?! → The Psychology of deals
- Kahneman & Tversky “Prospect Theory”:
- Judgements and decision not always rational or optimal à decisions based on psychological
principles of how people perceived and process information.
o People do not evaluate in absolute terms, but relative to a ‘reference point’
▪ e.g. 1. BBQ originally 350$ (reference point) à 250$
2. BBQ originally 255$ (reference point) à 240$
o Diminishing sensitivity: Same change has smaller impact the farther it is from the
reference point.
▪ e.g. 1. clock originally 35$ (reference point) à 25$
2. clock originally 100$ (reference point) à 90$
- Deals more appealing when highlighting incredible value
o Surpass expectations
o Availability: make promotions restrictive
o The rule of 100:
▪ Products < 100$ à reduction in %
▪ Products > 100$ à reduction in $
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Useful information?
- Packaged information (e.g., short lists)
o Easy-to-understand knowledge and expertise
- Audience
o The more the better?
▪ Not all information is relevant for everybody
o Can share versus will share! → narrow content
Easy to apply
- Every product/idea has something useful in it
- Cutting through the clutter
o Make it clear why product or idea is so useful that people just have to spread the word
6. Stories
People don’t think in terms of information. They think in terms of narratives. But while people focus on
the story itself, information comes along for the ride. People tell stories for the same reasons they share
word of mouth:
- Some narratives are about Social Currency.
- Other stories are driven by (high arousal) Emotion.
- Practical Value also plays a role.
Stories
- Original form of entertainment
- Used to tell stories
- For same reasons they share word of mouth
- Transmit information to others
o What is the moral of the story?
o Every story carries information
- Important source of learning
o Make sense of the world
o Products, services, or ideas
Harder to argue against stories than against advertising claims:
- Hard to disagree with a specific thing that happened to a specific person
- We’re so caught up in the drama → no cognitive resources to disagree
- The magic about stories → information travels under the guise of what seems like idle chatter
➔ Stories give people an easy way to talk about products and ideas.
A good story provides a reason why it need to be told! (BUILD A TROIAN HORSE!)
= A psychological cover that allows people to talk about a product without seeming like an
advertisement
Example Dove
- Don’t photoshop
- Want to promote the pure beauty
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Example Evian
- The video got more than 50 million views
- Guinness World Records: the most viewed online ad in history
- But it did not benefit the brand! Problem:
o Roller-skating babies are cute, but they have nothing to do with Evian. So people shared the
clip, but that didn’t benefit the brand.
Build a good story?
- Focus: How to make people talk
- BUT: What people talk about!
o Link between story and product/brand
o Talking about content ≠ talking about company
The importance of valuable virality
When trying to generate word of mouth, many people forget one important detail: They focus so much
on getting people to talk that they ignore the part that really matters: what people are talking about.
There’s a big difference between people talking about content and people talking about the company,
organization, or person that created that content. Virality is most valuable when the brand or product
benefit is integral to the story. When it’s woven so deeply into the narrative that people can’t tell the story
without mentioning it.
-
Brand/product benefit is integral to the story
People can’t tell story without mentioning
o People will always tell your brand when talking about the story
7. Conclusion (Berger, 2016):
Build a social currency-laden, triggered, emotional, public, particularly valuable narrative, but don’t forget
to hide your message inside. Make sure your desired information is embedded into the plot that people
can’t tell the story without it.
8. Checklist (Berger, 2016):
Six stepps to viralness
- Social currency
o Make us look good
o Make sure that people can impress other people by talking about your brand
- Triggers
o Top of mind, tip of tongue/ Triggered by the context
- Emotions
o Physiological arousal drives people to talk and share/ High level of physical arousal
- Public
o Make the private public. Built to show is built to grow
- Practical value
o Practical advice is shareable advice
- Stories
o Wrap information up in a story that is easily shared and remembered
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Six stepps to viralness
- Any product, idea, or behavior can be contagious
o Product itself or message around
- Social epidemics are driven by the products and ideas themselves
o Not just influentials
- More likely for products/ideas with certain characteristics
o Not just luck
o Follow STEPPS
Six stepps to viralness
- Social currency
o Does talking about your product or idea make people look good? Can you find the inner
remarkability? Leverage game mechanics? Make people feel like insiders?
- Triggers
o Consider the context. What cues make people think about your product or idea? How can
you grow the habitat and make it come to mind more often?
- Emotions
o Focus on feelings. Does talking about your product or idea generate emotion? How can you
kindle the fire?
- Public
o Does your product or idea advertise itself? Can people see when others are using it? If not,
how can you make the private public? Can you create behavioural residue that sticks around
even after people use it?
- Practical value
o Does talking about your product or idea help people help others? How can you highlight
incredible value, packaging your knowledge and expertise into useful information others will
want to disseminate?
- Stories
o Is your product or idea embedded in a broader narrative that people want to share? Is the
story not only viral, but also valuable?
3. receiving information
3.1 Database marketing
3.1.1 What?
The minimum requirements of a good marketing database are personal customer data, transaction
(purchase history) data and communications (receiving mailings, incentives, marketing actions and market
reactions) data. The database could also file which products, company departments and salespersons are
involved with a certain marketing action. In fact, a database stores three kinds of data: Market information,
Relationship data, Company data.
Database = A collection of interrelated data of customers and prospects which can be used for different
applications such as analysis, individual selection, segmentation, service support, loyalty, …
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The marketing database
Market data
- Consumers
o NAP data
o Geographic data
o Sociodemographic
o Lifestyle data
- B2B
o Sector
o Company
amplitude
o Decision-makers,
influencers
Relationship data
- Action data
o Promotions
o Direct mail
actions
o Fulfilment
- Reaction data
o Response to
direct mail
o Complaints
o Purchases
Company data
- Departments
- Products
- Sales team
- Sales techniques
➔ Database
3.1.2. Pitfalls
There are five potential pitfalls for a marketing database:
- incompleteness: Some data are not collected for all records in the database. This may be due to a bad
collection procedure or to a compilation based on different sources.
- Data expiration: Some data expire quickly, for instance, function (job title) and home address may
rapidly change, but the name of the customer usually stays the same during his or her entire adult
lifetime.
- Unreliability: Some data might be false because the source is not trustworthy. For instance, data
collected through the internet sometimes contain many fictitious names and addresses.
- Inconsistency: Some data are not automatically changed, although they are linked to others, for
instance a phone number is not adapted to a newly entered home address.
- Duplications: Two or more identical records may be stored due to different spellings resulting in two
or more of the same mailings to customers and prospects, which might irritate them and is costing
money to the direct marketer.
3.1.3 Privacy concerns
Think about your own experiences when surfing on the web … suddenly an ad pops up promoting a product
which you were yesterday looking for. Or being the age of 25-30 years old and female, you definitely have
been confronted with advertisements appearing on your screen promoting pregnancy tests. So have you
ever been suspicious about what information of your actions can be retrieved by firms and in what ways
it is used (e.g. for targeting or customization)? Probably you did! Although one person can be more
concerned than another, privacy concerns are omnipresent in the context of our current online society.
Previous research retrieves 5 causal dimensions of privacy concerns. As consumers today we are aware of:
- data collection → every search we do can be detected
- information use → this information will be stored and can be used by firms
- information sensitivity → even personal data, such as conversations, can be retrieved
- our familiarity with an entity → sometimes we’re familiar with firms collecting data, sometimes
we’re not
- compensation for information provision
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Recent research on online behavior has revealed discrepancies between user attitude and their actual
behavior (Barth & De Jong, 2017). While online consumers claim to be very concerned about their privacy,
they nevertheless undertake very little to protect their personal data. The systematic literature review of
Barth and De Jong (2017) brought three decision-making categories effecting information privacy to light:
1) Decision making can be divided into either a rational calculation of risk and benefits, or an irrational
risk-benefit calculation characterized by biased risk assessment. Looking at the rational processes,
individuals weigh costs against benefits, favoring gains over risks in most cases, such as using the service
of an app or staying in contact via social network sites. Thus, information is given away in exchange for
certain gratifications. Although users are aware there may be associated risks, compelling benefits or
offers dull the perceived threats to privacy and safeguards are neglected.
2) Looking at the irrational processes in decision-making, biases influencing the risk-benefit calculation
play a role. Due to aspects such as heuristic thinking, (immediate) gratifications or time inconsistency,
individuals are biased in their risk assessment, resulting in a distorted risk-benefit calculation, quite often
tuned out to the advantages of associated benefits.
3) The third category of decision-making describes processes in which negligible or no risk assessment
takes place. Failed privacy valuations or information deficits for example, result in the risks associated with
information disclosure being suppressed or even neglected altogether.
All three categories of decision-making as it pertains to issues of information privacy might explain the
discrepancy between stated attitudes and actual behavior, a phenomenon also known as the privacy
paradox. So please remember …. data is only private until someone decides it isn't!
-
-
Actual Privacy Violation
Perceptions
o Privacy Concerns
▪ Personal characteristic
▪ Dependent on the context
Related to new media in general / digitalization
Related to certain new media advertising formats:
o such as targeting / customization/ interactive marketing
Online consumers
5 causal dimensions:
1. Awareness of data collection: yes/no
2. Information sensitivity: what info?
3. Information use: to do what?
4. Familiarity with entity: by who?
5. Compensation for information provision: return?
“If I consider to book a holiday trip with this online agency, etc., I worry about “unauthorized thirdparties can access my credit card information.”
It’s about data protection, but
Bad conceptualization related to different advertising formats
→ Permission marketing: direct marketing activities that require consumers’ consent to be contacted by
a specific company. You need your consumer for their consent → GDPR
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3.2 Listening to your customer
What is social media monitoring? When an organization examines our behaviors on social media (e.g.,
what comments we post to an online opinion forum or whether we like or follow a brand), it is engaging
in social media monitoring. For the organization, the goal is to learn about its customers or other
stakeholders and gauge their opinions in an effort to guide strategy.
What is social media intelligence? When correctly interpreting the data retrieved from social media
monitoring, we reach what is called “social media intelligence.”
Today’s organizations need to think carefully about how they can integrate social media intelligence in
their strategic decision-making process. Any investment in social media intelligence is wasted if the insights
derived from those efforts are not leveraged in developing the organization’s or brand’s strategy.
How do we get from “social media monitoring” to “social media intelligence”? We recommend a 5-step
process for measurement!
- Social media monitoring ≠ social media intelligence
BUT…
- The democratic nature of OSM allows everyone to have say
o High vs. low experience
o Haters vs. lovers
o …
- Contributions not fact-checked
Social media monitoring ≠ social media intelligence
-
Five-step process to measurement
1. Measure what matters
2. Cast a wide net
3. Analyze the text
4. Understanding biases
5. Establish links to performance metrics
1. Measure what matters
The problem today is that organizations are measuring what is easy to measure with the data. Twitter data
are easy to collect and volume metrics are easy to compute, so metric’s like the number of twitter
mentions or the number of twitter followers are over-emphasized. For example, when measuring potential
reach the numbers of followers or fans is only a proxy for a brand’s potential reach. Measures of reach
should go beyond just counting our followers. Instead, we should ask: how many transactions or website
visits are a result of our followers or fan base?” Rather than measuring the total number of followers we
have, we can estimate the number of consumers we can reach with our messages by taking into account
the number of individuals to whom our followers are connected. Rather than going after the low hanging
fruit, we need to shift our focus from measuring what’s easy to measure to measure what matters. In
other words, what are the metrics that will influence our STRATEGIC DECISION MAKING.
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What actually matters on social media?
- Not: mere awareness & reach
o the number of Friends / Followers / Subscribers
o Not the number of posts / tweets
o Not the ridiculous Followers to Following ratio
- Do not measure just because it is easy to measure!
- Everything that happens after you post / tweet / participate!
o Did you grab attention? Did you deliver delight? Did you cause people to want to share? Did
you initiate a discussion? Did you cause people to take an action? Did your participation
deliver economic value?
o The “so what” matters
▪ E.g.: What matters is consumer preferences → attribute specific sentiment
▪ E.g.: post-purchase satisfaction
▪ E.g.: consumer engagement
o The litmus test of any measure is: Is it linked to our strategic objective?
2. Cast a wide net
One of the most common pitfalls of social media monitoring is the tendency to engage in “selective
listening.”
Selective listening: On a larger scale, selective listening refers to the practice of monitoring only one or a
limited set of social media venues. (e.g., Many organization will monitor the number of twitter mentions
while ignoring any Facebook activity). This is problematic because what we post online is related to where
we choose to post it. Each of these outlets attract a different audience, allows for varying depth of
expression, and is subject to unique social dynamics. Opinion expression through a blog may be more
moderate than other venues as it allows the writer to convey more detailed and thorough opinions. Posts
to social network tend to be more positive as individuals want to portray a positive image to their friend
and professional networks. Given the interaction between WHERE and WHAT people post, the practice of
selective listening may portray a point of view that is specific to the venue being monitored and not
necessarily shared by the greater population.
Fortunately, the solution is relatively simple. Rather than monitoring a single social media venue,
researchers should cast a wide net and monitor a wide range of online venues that includes a variety of
formats such as blogs, microblogs, forums, and social networks. By collecting social media metrics across
multiple venues over time, we can isolate trends that are common across venues (and thus represent real
shifts in sentiment) while ignoring venue-specific idiosyncrasies.
-
-
Do not gather data from one and the same social media venue
o Do not only use Facebook
o Different social media channels have different audiences
e.g. post to social network (more +) vs. post to blogs (detailed)
Anecdotal referencing: an easy-to-implement type of social monitoring is anecdotal referencing, the
practice of reading a collection of comments and selecting a smaller set for further scrutiny. Anecdotal
referencing is subject to analyst bias. The conclusions drawn from the anecdotal referencing of these
comments may reflect the analyst's prior beliefs rather than providing an unbiased and representative
view of the customer response. → Only look at a couple of comments, that is not representative
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2.1 Anecdotal referencing
- Reading a collection of comments and selecting a smaller set
- Example
o Online store of children’s furniture
o Open forum => negative comments
- Opportunities
o Using online complaints to modify furniture
- Challenges
o Only a selection of complaints is handled
o Use anecdotal referencing to justify a proposed product modification
= self-fulfilling prophecy
General drawbacks
- Posted opinions ≠ majority opinion
o People are more likely to post extreme opinions
- Extreme opinions are oversampled
o Extreme opinions are shared more
o Organizations are more likely to take extreme opinions into account
- Subject to analyst bias
o Search for evidence of own hypothesis (= self-fulfilling prophecy)
o “Overpriced” → focus on comments about price
- Not scalable
o Technique is not practical for large organizations/high volume of comments
o Drawbacks are amplified when volume of comments is high
3. Analyze the text
In the world of social media, researcher can combine the identification of issues with the testing and
measurement of the issues since consumer feedback on social media is both unstructured and on a large
scale. However, with this new source of data come new challenges. Many of the techniques that have
been developed by marketing researchers have been designed for quantitative data, not the open-ended
textual data that we have from social media. Thus, researchers need to develop text analytic tools to
process, analyze, and interpret the volumes of text posted online.
-
-
Identify key issues
o Customer service complaints
o Feedback
Text mining tools and metrics
o Word counts
o Co-occurance of words
o Sentiment analysis
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3.1 Word counts
Word counts and word clouds
- Word count = simply count the number of times different words appear in a given set of documents.
- Word cloud = a visual representation of commonly used words found in a collection of moments. In a
word cloud, the font size of the word represents the frequency which that word was used.
Raw data need to be processed before they can be subjected to any quantitative analysis. E.g., the text
may need to be ‘stemmed’, a process by which the suffix of a root word is removed so that words such as
buyers and buyer will be reduced down to buy. Why? Reducing the number of words for which word
counts are being tabulated)
-
-
Why? Popularity
What? Number of words related to a topic → popularity
How? Processing raw data
o Text stemming = removing the suffix of a root word
▪ e.g.: “buyers” => “buy”
Word clouds
3.2 Co-occurance of words
Co-occurrence
Assessing perceptions and associations that consumers hold toward their brands. The goal is not to simply
score comments in terms of positive or negative sentiment but to identify traits that are commonly
associated with the brand, of ten using methods that identify the co-occurrence of a brand mention and
words that convey a brand trait. E.g., McDonalds is frequently mentioned alongside words that represent
fun and family and unhealthy.
-
-
-
Why? Identify underlying themes in data
o “The screen is beautiful and crystal clear” and “The laptop’s screen is very bright and clear”
▪ The words “screen” and “clear” co-occur
▪ High frequency co-occurence suggest common theme
What? Assess brand associations/perceptions
o McDonalds = family-friendly
o McDonalds = unhealthy
How? Factor analysis to reveal underlying themes or “bag of words”
o “posh”, “fine”, “lavish”, “extravagant” => luxurious
o “kid-friendly”, “fun for everybody”, “toys for kids” => family-friendly
3.3 Sentiment analysis
Sentiment analysis
The objective of sentiment analysis is to extract the sentiment (positive, negative or neutral) expressed in
social media comments. With the high volume of social media comments that need to be processed,
researchers have tried to develop computer-assisted methods to automatically identify the sentiment in
a given comment. However, these methods often encounter difficulty assessing sarcasm, slang, and other
uses of language that do not perfectly conform to traditional grammar rules. Human analysist still provide
a more accurate means of conducting sentiment analysis of social media posts.
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Why? Extract whether sentiment is positive, neutral, or negative
What? Sentiment +/How? Methods
o Manual coding => time consuming
o Computer program with algorithms => errors due to several challenges
➔ Use hybrid methods!
Challenges
o Sarcasm, homonyms (=different meaning, same spelling), and slang
▪ E.g. homonym: “book” = something to read
= the act of making a reservation
▪ E.g. slang: ginormous, bromance, lit (= super cool)
o Order of words
▪ e.g.: “I thought it would be good, but was disappointed”
versus “I thought I would be disappointed, but it was good”
Hybrid methods as a “solution”
o Analysts manually code small training text
o Automated process learns from this training set to code larger dataset
4. Understand biases
The opinions we see posted to social media are an outcome of a two-stage process. In the first stage, we
form our opinions (opinion formation). Then, in the second stage, we share our opinions with others
(opinion expression). However, we do not share all of our opinions. Instead, the opinions that we
ultimately post online are those that somehow merit sharing. In other words, the opinion expression stage
can be thought of as an opinion filter that allows some of our opinions to pass through to be posted on
social media while our other opinions remain unshared.
Understanding the underlying behavior
- What is shared, who shares and why do they share?
-
Filtering out biases
o Opinion formation
o Opinion expression
o Opinion eco-system
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4.1 Opinion formation = Understanding what people share & biases (Moe & Schweidel, 2014)
While opinions are subjective by nature, we’d like to think that our views are based on well-thought-out
evaluations of an issue, experience, or product. But whether we are considering our most recent dining
experience at a restaurant or where we stand on political debates, our opinions are also influenced by a
host of other factors such as advertising, preconceived expectations, and social influence. According to the
economic theory, people’s preferences for just about anything can be described by a ‘utility function’ that
breads down the value to the user of the product, service, or experience into its component parts. As
consumers, we value each component part, and how we evaluate the overall product is determined by
our underlying utility function that combines the values we ascribe to each component part. For example,
how much we like a car is a function of:
- How much we value its safety features,
- Seating capacity,
- Fuel efficiency
- And a variety of other attributes and amenities
However, utility theory can only provide a part of the picture. While we acknowledge the central role that
utility function plays in opinion formation, the utility function is not a perfect representation of how much
an individual likes a product or service experience. In an ideal world, the utility function would capture all
factors that contribute to an individual’s evaluation of an experience. However, realistically, they are likely
to be several factors that we will inevitably fail to consider. E.g., a friend may have gotten some bad news
at work right before he left for dinner, putting a cloud over his entire dining experience. Such events are
not observable but may impact individual’s overall evaluation.
-
-
Ideal world
o Utility function
▪ U(car) = f(brand) + g(safety) + h(fuel efficiency) + ... + error
➔ Breaks down the value to the user of product, service, or experience into its component
parts.
Biased world
o Expectations
o Expertise and knowledge
o Social context
4.1.1 bias by expectations
Even experience-based opinion can be influenced by expectations. How much we like a movie once we
see it is in part going to depend on what we were expecting going into it. If our experience exceeds our
expectations, then we are satisfied and form positive opinions. But if our actual experience falls short of
our expectations, then we experience disappointment and develop more negative opinions. A consumer’s
post-consumption utility is a result of reconciling the pre-consumption expectations with the actual
experience. When a product outperforms our pre-consumption expectations, our opinions will tend to be
positive. But when our experience falls short of expectations, our opinions will tend to be negative.
However, when users post opinions on discussion forums or online review websites, we often assume that
the evaluation was formed solely based on the consumption experience. Instead, it’s a composite of the
actual consumption experience and initial expectations
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Expected utility ≠ experienced utility
Consumption experience = initial expectations + actual consumption experience
o U(restaurant) = f(meal) + g(service) + h(ambience) + i(expectations) + error
o Experience >(<) expectations = positive (negative) review
-
Online opinions reflect expectations
o Comments may be based on misinformation or irrelevant signals
4.1.2. bias by expertise
Consumers with less knowledge: are more likely to use heuristics or simple rules of thumb to form
opinions. This is driven in part by the fact that substantial mental effort is needed to form well-thought
out opinions, and less knowledgeable consumers are often not able or not willing to expend the mental
resources needed. What does this mean for the opinions expressed in social media? Those who lack
sufficient experience or knowledge will tend to voice opinions that are based on public perceptions (or
misperceptions) of the brand and dominated by quality signals such as price, advertising and whom. When
social media sites are populated primarily by less knowledgeable customers, the opinions expressed
therein are more likely to be a reflection of signals in the marketplace that may or may not convey the
true quality of the product. These posted opinions often don’t contain any new info – they simply echo
what has been stated by others, resulting in the phenomenon of echo chambers.
More experience and knowledgeable consumer: focus more on the actual performance of the product.
Social media community populated by knowledgeable consumers have the potential be a valuable
resource for marketing research on product performance, features, price
-
-
Expertise and knowledge
o High: construct one’s own opion
o Low: follow simple rules of thumb or heuristics
▪ Quality signals such as price, advertising, or word of mouth
Does your social community has expertise or not?
o High: Actual performance of the product or
o Low: reflection of signals in the marketplace
4.1.3 bias by Social context
The social influence of others is referred to as ‘subjective norms’. The social environment stands for the
expectations of our families, the peer pressure by friends, workplace culture by colleagues. Simply
observing others in our community using a new product will influence our opinions of that product. Studies
have also shown that individual’s opinions become interdependent in a group setting. The utility functions
of all members of a group are malleable and are shaped by the social context. That is, even though we
each have our own beliefs, we affect each other when we’re together.
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Social context
o Subjective norms
o Peer pressure
o Word-of-mouth
o Observations
Individual opinions become interdependent in a group setting
o e.g.: “What are you having?”
Bandwagon effect
o Positive information cascades
o Negative information cascades
▪ Better to manage reviews on your own website as you can react
4.1.4 Opinion formation: challenges
1. Identify relevant opinions and utility functions: When we read social media comments, we tend to
make a couple assumptions: First, that the poster is expressing an opinion based on his or her experienced
utility. Second, that our utility matches theirs. However, we know that many people’s opinions are shaped
by expectations that are formed before they actually experience the product itself. As a result, the
comments observed on social media are often based on misinformation and irrelevant signals rather than
the true utility value of the product, service, or experience. We also know that there is considerable
variation across people in terms of what they value. Consequently, there is no guarantee that you will
share the opinions of those who have posted reviews online. Consumer basing their purchase decisions
on posted reviews can be very disappointed if those individuals posting reviews have very different utility
functions (Moe & Schweidel, 2014).
2. Account for the role of expertise and knowledge: Many survey respondents feel compelled to provide
an opinion even when they have no knowledge or expertise on which they can base their opinions. While
individuals are not compelled to provide an opinion on social media in the same way, many individuals still
post an opinion even when they do not possess the requisite knowledge to formulate a well-thought-out
opinion. As a result, some social media communities, especially those dominated by less knowledgeable
consumer, can end up overemphasizing the wrong issues(Moe & Schweidel, 2014).
3. Manage the social context: Many organizations are reluctant to allow ratings and reviews on their own
website, fearing negative opinions will hurt the future sales. But if the need to read about others’
experiences exist, then customers will find an alternative source for this info. Often it is better for an
organization to be able to monitor and manage the environment in which opinions about their brand are
shared rather that relinquishing the role to third party websites, or worse yet, competitors’ websites(Moe
& Schweidel, 2014).
- Identify relevant opinions and utility functions
o Encourage posters to provide information
▪ How informed is the posted comment
▪ How similar is the poster’s utility function
o Tools to indentify customers who share the same preferences
- Account for the role of expertise and knowledge
o Overemphasazing wrong issues
- Manage the social context
o Ratings and reviews
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4.2 Opinion expression
Opinion expression = an individual’s decision to communicate his or her opinions to others. This decision
stage serves as a filter between an individual’s underlying opinions and the sharing of those opinions. As
with any filter, not everything, that encounters it is going to pass through. An individual may decide not to
share any opinion at all or to voice a modified (or moderated) version of his or her actual opinion. In other
words, the opinion expression decision can be broken down into two components :
WHETHER to share an opinion: Whether you share an opinion and what form of that opinion you share
will depend on a number of factors, including what your opinions are, how strongly you hold them, and
how they compare to the opinions of others in the conversation.
→ Selection effect = factors that influence our decision of whether or not to share an opinion exhibit a
selection effect.
WHAT opinion to share.
→ Adjustment effects = factors which cause us to adjust our underlying opinions before we express them.
= Decision to communicate an opinion: 2 components
1.
2.
-
To share or not to share?
Why would people want to share their opinion?
Factors that affect this decision = selection effects
What to share?
Factors that affect this decision = adjustment effects
4.2.1 Posters versus lurkers
Posters versus lurkers : Those who post are referred to simply as posters, and those who consume other’s
posted content without providing any content themselves are referred to as lurkers. What differentiates
a poster from a lurker is how each interacts with social media content. Lurkers see social media as a source
of information. Posters on the other hand turn to social media to express themselves. While they may also
be interested in the opinions of others, their primary motivation is not to consume social media content
but to create social media content. What is important is not so much the label of poster or lurker but
rather the underlying motivations that cause one person to contribute an opinion in a particular realm and
another to remain silent. Differences in these motives and the resulting behavior can give organizations
that monitor online conversations a false sense of security about how well they know that their
constituents want because social media will tell them nothing about what lurkers think.
Two categories of individuals
- Posters
o Actually post something
o Motivated to express themselves
o Minority
-
-
Lurkers
o Read posted comments
o Use social media as source of
information
o Majority
Context-specific: Underlying motivations
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4.2.2 What motivates us to post ? – selection effects
- Generic motivation
o Product involvement and satisfaction
▪ The nature of the product and satisfaction with it can motivate consumer to share
their opinions
▪ Car or laptop versus FMCGs
▪ Product outperforms expectations
o Self-enhancement
▪ The individual’s desire to enhance his own image and reputation. The info they share
is designed to demonstrate their expertise and not necessarily to provide insights
that help others formulate their own opinions
▪ Enhance their image or reputation
▪ Demonstrate their expertise to others
o Altruistic motivation
▪ These individuals express their opinions and provide insight into their own
experience with the objective of helping others make better decisions
▪ Provide insights into their own experiences
▪ Help others make better decisions
- Online environment
o Helping the company (Satisfied customers want to help company be successful)
o Platform assistance (More convenient than calling/writing company)
o Advice seeking (Help solve my problems)
➔ Product involvement and satisfaction
o Venting negative feelings (Shake off frustrations about bad buys)
o Positive extraversion (Feel good to tell about buying successes)
➔ Self-enhancement
o Economic incentives (Receive reward for writing)
➔ Altruistic motivation
o Concern for other consumers (Warn others for bad products)
- Social benefits (Fun to communicate this way with other people in the community)
A) Product involvement
- Only customers who are highly involved express their opinion
- Selection effects
o Extremity bias
• Lovers versus haters
• Moderates don’t like to engage in conflict
o Online opinions are mostly positive
• In contrast with offline word-of-mouth
• High satisfaction?
o Only from the proportion who shares
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B) Self-enhancement
- Individuals who see themselves as experts
o Experts consider more dimensions (e.g., color palette of a painting)
o Experts tend to be more critical and hold more negative opinions
o Experts often disagree with non-experts
- Selection effects
o Less likely to post when opinion is already been voiced
o More likely to post when varied viewpoints exist
▪ Balanced debates => more negative
C) Altruistic motivation
- How much will their opinion help others?
- Selection effects
o Less likely to post when there is an abundance of opinions already
o Less likely to post when their opinion is already been voiced
4.2.3 Selection effects
Shape composition of social media community in many ways:
- Online opinions reflect vocal minority
- Opinion variety is exaggerated
- Opinion variety attracts experts and negative opinions
- Opinions are more extreme
- Moderates are underrepresented and their numbers are decreasing
Implications for social media intelligence: How do selection effects shape the composition of the social
media community (Moe & Schweidel, 2014).?
- Online opinions reflect the vocal minority: The voices represented on social media are not necessarily
representative of the greater population. Selection effects can shape the composition of the social
media community by systematically encouraging some individuals to participate while discouraging
others and silencing their opinions (Moe & Schweidel, 2014).
- Opinion variety is exaggerated: Many individuals will think twice about contributing an opinion or
perspective that has already been shared by others. As a consequence, opinion variety is exaggerated
over time. As the conversation evolves, only new and unique opinions are posted. Those who share
the opinion of an earlier poster tend to refrain from repeating what was said in that previous entry.
As a result, opinions that are held by many in actuality may be significantly underrepresented in online
conversations appearing only a s all handful of times (Moe & Schweidel, 2014).
- Opinion variety attracts experts and negative opinions: Environments with high opinion variety tend
to appeal to experts as they provide an opportunity to establish the posters’ expertise in the
discussion. Thus, as online opinions evolve and opinion variety inevitably increase, the participation of
experts in the discussion also increases. Because experts tend to be more negative, the opinions
represented also exhibit a gradual decline in sentiment over time (Moe & Schweidel, 2014).
- Opinions are more extreme: The opinions of the majority of the customers – those in the middle with
moderate opinions – are being ignored (Moe & Schweidel, 2014).
Moderates are underrepresented and their numbers are decreasing (Moe & Schweidel, 2014)..
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How do selection effects influence where we post on social media (Moe & Schweidel, 2014).?
Our choice of where to post is influenced by our goals and motivations: Individuals who are highly involved
with a particular product or issue often have affiliation goals. That is, they want to identify a community
of like-minded people with whom to share their opinions. Others have persuasion goals where they want
to share their experience and knowledge with others in an effort to affect their opinions and behaviors.
For these it is of no relevance to post in a brand community as they will not change the opinions. They are
more likely to seek out and post to social media venues that are not directly affiliated by the brand in
comparison to brand followers with affiliation goals (Moe & Schweidel, 2014).
→ venue-related goals contribute to additional selection effects: Research into online opinions and other
forms of social media is challenged because social media researchers and managers are only able to see a
subset of all opinions – those that individuals have chosen to contribute to the venue being monitored.
Only by monitoring a broad swath of social media venues can organizations monitoring social media
ensure that they are observing comments representative of social media posters (Moe & Schweidel,
2014)..
How do selection effects drive what we talk about on social media?
See 3.2. ‘The psychology of sharing’ (Berger, 2016) in this syllabus!
→ When analyzing the issues raised in posted opinions, we need to ask ourselves: Is this issue common
for all of our customers or are there underlying motivations that are causing us to hear only from a select
(and perhaps biased) sample of customers?
Adjustment effects
Opinion expression
Decision to communicate an opinion: Two components
- To share or not to share?
o Why would people want to share their opinion?
o Factors that affect this decision = selection effects
- What to share?
o Factors that affect this decision = adjustment effects
- Expressed opinion ≠ actual opinion
- Strong impact of social context
o Mere presence effect
▪ We process info differently, because we try to conform the social conventions
▪ Shopping → presence of others → impression management → buy more expensive
items
▪ E.g. Stanford prison experiment:
- Adjustment effects
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4.2.4. Adjustment effects
Bandwagon behavior in opinion expression: our tendencies to bandwagon cannot only shape how we
form opinions, but also affect our opinion expression, even when the opinions we publicly express don’t
align with the underlying opinions we privately hold. Why do we bandwagon? → conformity behavior.
(e.g.; Asch conformity experiments). Our tendencies to conform vary depending on our need to meet
others’ expectations of us (normative influence) or our willingness to accept information as presented by
others (information influence). Individuals who are more susceptible to these influences are also more
likely to exhibit bandwagon behavior. However, not everyone is a bandwagoner. Since imperfect
information typically drives these effects, it is mostly the less informed and less involved who are subject
to bandwagon effects.
How do we adjust (Moe & Schweidel, 2014).?
- Expert effects: Experts are more critical: Many experts are driven by self-enhancement motivations.
They try to differentiate their opinions from those of others in an effort to highlight their distinct value
as experts. But in contrast to non-experts, experts differentiate by being more negative rather than
more positive.
- Underdog effect: our inclination to support the losing side (or the underdog), especially when the
opponent greatly outmatches the underdog.
- Multiple audience effects: How does one craft the message if the audience is very diverse and multiple
points of view are represented? This dilemma creates what is referred to as the multiple audience
effect. When facing as mall and homogeneous audience, it is easy to design a communications
message that is tailored for that group. People’s natural tendencies are to avoid alienating any single
audience segment. As a result, when facing multiple audiences, we try to construct mixed messages
that will satisfy all audience segments. In an online environment, that means that when opinions vary,
new participants tend to temper the strength of their opinions and express more moderate opinions
that present both sides.
Bandwagon behavior
- Public opinion ≠ private opinion
- Rooted in conformity behavior
Differentiating our opinions
- Self-enhancement motivation
- Expert effect
- Underdog effect
o Supporting the underdog
Multiple audience effect
- Heterogeneous group
o Look for balance
- Balance: keeping everyone happy
- Downgrading opinion to find the balance
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4.3 Opinion ecosystems
Earlier chapters discussed how our opinion formation and expression behaviors change as we are exposed
to the opinions that others have already posted. In turn, the opinions we express today will affect how
others behave in the future. Social media platforms can be seen as opinion ecosystems where our
viewpoints interact and influence those of other contributors.
In a sustained opinion ecosystem, a healthy exchange of opinions takes place. While many brand managers
hope that the collective opinion around their brand is universally positive, it is more likely that there is
some diversity in opinion. In fact, divergent opinions are often a hallmark of a healthy opinion ecosystem.
These are environments that encourage individuals to express their true opinions as part of a healthy and
open debate, and as such, the opinions expressed more accurately reflect the posters’ true underlying
opinions rather than any social dynamics that may exist in the environment.
-
Collective opinion: What emerges in an opinion ecosystem. This represents the consensus reached by
the group. Compromises are necessary (Moe & Schweidel, 2014).
Combined opinion: This combined opinion reflects the underlying and unbiased opinion of those
surveyed (Moe & Schweidel, 2014). interesting for marketing research
When we consider opinion dynamics and the evolution of opinion ecosystems, we are referring to how
our individual opinions interact with each other in a social media environment and evolve, ultimately
converging in a collective opinion. This collective opinion tends to over represent the opinions of the vocal
minority and underrepresent the opinions of the silent majority.
Ideal of opinions to be independent and through, rarely comes to pass because of selection and
adjustment effects. Rather, we live in an environment where the opinions expressed in social media often
reflect our social context instead of our true underlying opinions. In this chapter, we take step back and
discuss the implications of these effects at a macro-level: how do the various selection and adjustment
effects come together to shape the overall opinion ecosystem?
-
-
Implications of selection and adjustment effects at a macro-level
o Shape the overall opinion
o Collective opinion versus combined opinion
▪ Not averaging multiple individual opinions (combined opinion)
▪ Consensus reached by group
▪ Individual opinions interact in social media environment
▪ Opinion online ≠ combined opinion
Common patterns
o Life cycle dynamics
o Sequential dynamics
o Social dynamics
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4.3.1 Life cycle dynamics
When new product spread across a population, it rarely happens in a sudden flash. Rather, changes tend
occur in a stages process, where different types of consumers adopt the innovation at different points in
time. The process often begins with innovators adopting first. If the product succeeds among the
innovators, then positive WOM spreads and the rest of the population follows. In many cases utility
functions of innovators often differ from the ones of the imitators. Innovators typically place a high value
on things that are new and cutting edge. They have a preference for unique and novel fashions; and they
are willing to pay a premium price for these innovative features and services that others are not, which
gives rise to the common practice of ‘price skiming’ where products are priced higher when they are first
introduced. In contrast, the mainstream market (imitators) may look for items that are reliable, easy to
use, and lower priced. As a result while an innovator might be perfectly satisfied with a new technology
that still has a few bugs and carries a high price, an imitator would be quite dissatisfied with it .
What does it mean for an organization trying to design the ‘ideal product’? If innovators and imitators
share similar preferences and utility function, then the innovator’s ideal product will resemble that of the
imitator’s. In this case, the organization should cater to the tastes and preferences of the innovators, who
can serve as opinion leaders and help promote the product to the rest of the market (or imitators). But if
the innovators and imitators have different preferences and utility functions, then the notion of the
market’s ‘ideal’ product will shift over the course of its life cycle. In other words, what satisfies the needs
of the early buyers (or innovators) may not satisfy the needs of the later buyers (or imitators).
This has also implication for how product opinions posted on social media evolve over time. In most cases,
the opinions of the innovators serve as a pretty good barometer of how the general public will react to
products, and their reviews simply help spread the word. However, in some cases, the innovators’
preferences don’t match those of the imitators, and the early reviews of the innovators provide flawed
signals quality to the imitators in the mainstream market. A similar dynamic plays out in online opinion
environments. Imitators, who enter the market later in the product life cycle often read the early reviews
posted by innovative customers as part of their decision making process. When early reviews are negative,
a deserving product may never really take off. However, if early reviews are positive, imitators may be
persuaded to try the new product. But these imitators might not agree with the innovators about the
quality of the product experience. As a result, a population of dissatisfied customers is born. As these
customer take to social media, the positive reviews previously posted by innovators are gradually
displaced by the negative reviews posted by the unhappy imitators, resulting in a systemic decline in
online product opinion (Moe & Schweidel, 2014).
Product innovation
- Staged process
- Different consumers adopt innovation at different points in time
- Two general frameworks of diffusion
o Bell-shaped curve of Rogers (1962)
▪ Innovators + 4 subgroups
o Alternative framework
▪ Innovators + imitators
- First stage = innovators
→ positive word-of-mouth
→ public follows
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Innovators + imitators
- Fundamental differences
o Level of expertise
o Tolerance to risk and uncertainty
- Utility functions
o New and cutting edge versus reliable and easy to use
o Premium price versus lower price
➔ Price skimming
- Consequences for organizations
o Ideal product?
▪ Notion of ideal product shifts over time of life cycle
o Product opinions posted online
▪ Innovators ≈ imitators
• Innovators’ opinions are a good barometer
▪ Innovators ≠ imitators
• Innovators may give flawed signals to imitators
→ Positive reviews of innovators displaced by negative reviews of imitators
• Preference mismatch
4.3.2 Sequential dynamics
- Negative sequential dynamics are a result of the difficulty in identifying reviews that provide a
preference match. Rather than laboriously parsing through individual reviews, we may resort to simply
looking at the average rating or reading a handful of recent reviews with little to no consideration of
how well-matched our needs are to those of the posters. Ultimately, this behavior leads to poorer
decisions even though relevant information would be available to us if we were able to locate it.
Eventually, the number of dissatisfied customers increases along with the number of negative reviews
(Moe & Schweidel, 2014).
- Online echo chambers: Echo chambers emerge when members of an affiliation community reinforce
one another’s opinions. In an echo chamber, members are subject to confirmation biases that cause
members to over-emphasize the shared opinions of others in the community while ignoring the
dissenting opinions of non-community members. Basically, individuals metaphorically hear their
opinions echoed back to them by other members of their chosen community. When this happens
across individuals in the community, the echoing effect has the potential to radicalize the community’s
opinion as it diverges from that of the more general population (Moe & Schweidel, 2014).
-
-
Heterogeneous opinions
o Different groups on social media with different expectations
▪ Innovators vs. imitators
▪
▪ Expert vs. layman
▪
Preference mismatch (e.g.: layman following expert’s opinion)
o Cluttered reviews
o Poorer decisions
o More dissatisfied customers
o More negative reviews
➔ Negative sequential dynamics
Lovers vs. haters
Posters vs. lurkers
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Preference match
o Rely on posts by individuals who share your preferences
Customized information stream
o Tailored around our preferences
o Algorithms as a filter of what we “want” to see
▪ History of purchases, browsing history, etc.
Consequence
o Members of affiliation community reinforce one another’s opinions
o Overemphasize own opinions
o Ignoring others’ opinions
o Online echo chamber
➔ More extreme opinions
4.3.3 Social dynamics
Life cycle and sequential dynamics cause real shifts in underlying opinion. That is, the individuals posting
the later comments are truly more dissatisfied than those posting the earlier comments, due to life cycle
effects or preference mismatching. However, sometimes posted opinions exhibit noticeable trends even
when the underlying opinion is stable. In such case, social dynamics are at work.
In an online opinion environment, the term social dynamics refers to ‘how expressed opinions
systematically shift as a result of the social environment’. While the online environment does not let us
engage in social interactions in the traditional sense, we are nonetheless exposed to the opinions of others
who have posted before us, and that exposure affects our own behavior.
Two types of online posters:
- Opinion activists = Those individuals who are highly engaged in an opinion environment, which they
manifest by posting more frequently than others (Moe & Schweidel, 2014).
- Low-involvement posters = Write online product reviews infrequently and likely for just a subset of
the products that we have purchased. This is what the majority does (Moe & Schweidel, 2014). Opinion
activists and low-involvement customers are very different in terms of how positive or negative they
generally are, how they respond to selection effects, and how they respond to adjustment effects. In
general, opinion activists are much like experts: they hold more negative opinions, seek out forums
with a high variety of opinions, and engage in differentiation behavior. In contrast, low-involvement
individuals are more positive, avoid forums in which there is stark disagreement, and engage in
bandwagon behavior.
When these two types of customers interact in an online opinion forum, social dynamics take hold. At
the start of any online opinion forum, both opinion activists and low-involvement individuals are well
represented. However, as the forum matures, an increasingly wide variety of opinions are posted,
leading to a selection effect that
(1) encourages the participation of opinion activists and
(2) discourse the participation of low-involvement individuals.
As a result, the less involved (who tend to me more positive) begin to drop out of the conversation,
leaving only the opinion activists (who tend to be more negative) left to shape the conversation.
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A second social dynamic involves the behaviors of the opinion activists who choose to remain in the
conversation. Because of their high level of engagement with the topic, opinion activists are often
more knowledgeable than others, making them subject to expert effects. As we discussed in previous
chapters, not only are experts more negative to start with, but they also express increasingly negative
opinions in an effort to establish their expertise, further contribution to the social dynamics of the
conversation. In the end, what started as a balanced discussion where a variety of opinions are freely
shared quickly becomes one where activists dominate the conversation, often with increasingly
negative commentary. This negative social dynamic has been shown across opinion forums and has
important implications for organizations monitoring social media opinions.
If these social dynamics are at play, the opinions and opinion trends we observe online may not accurately
reflect the true opinions held by the underlying customer base (Moe & Schweidel, 2014).
Underlying opinion is stable
- Not causing real shifts in opinion
- Noticeable trends:
o Systematic shift due to social environment
o Key difference between types of posters
Baseline opinion
Selection effect
Adjustment effect
Opinion activists
More critical
Seek out discussions with opinion variety
→ they stay
Differentiation behaviour
→ Become more negative
Low-involvement individuals
More positive
Avoid disagreements
→ they leave
Bandwagon behaviour
➔ Negative sequential dynamics
4.3.4 overview of dynamic
Dynamic
Opinion stage affected
Life cycle
Opinion formation
dynamics
Sequential
Opinion formation
dynamics
Social
Opinion formation and
dynamics
opinion expression
Source of dynamic
Differences between innovators and imitators in terms of their
utility functions
Preference mismatching between those who post reviews and
those who read reviews
Differences between opinion activists and low-involvement
customers in terms of baseline opinion, selection effects, and
adjustment effects
Understanding biases: Key Takeaways
- Negative trend in opinions?
o Real underlying problem with product
o Reflection of social dynamics in social environment
▪ Fans exist but refrain from commenting
- Online posters ≠ target audience
o Overrepresentation of activists
o Underrepresentation of low-involvement people
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5. links to performance metrics
The only reason to monitor social metrics is if they are a means to an end. The final step in developing
social media intelligence capabilities is establishing the relationship between these measures and the
performance metrics of interest. Depending on the organization, these performance metrics of interest
may include the number of acquired customers, donation activity to a non-profit organization, sales
volume, or market share.
Link to sales: We would expect online sentiment to be a reflection of the product’s quality and, as a result,
to provide an indicator for sales. However, beyond simply correlating with sales volume, positive
sentiment can also generate new incremental sales (Moe & Schweidel, 2014).
Link to stock market price: The financial sector has also started turning to social media metrics. The
volume of mentions is correlated to stock market prices, as well as the relationship between product
ratings and stock market prices. Imagine the interest in these results among investors. E.g., One study
established a relationship between twitter mentions of Netflix and their stock price.
Return on investment (ROI): Organizations need to know that the marketing activities in which they are
investing resources are actually paying off and are somehow connected to profitability. But we need a
comprehensive analysis that can measure the effects of various factors influencing top line sales. This
might include the effects of operational investments, economic factors, and competitive actions, as well
as the effects of our social media strategies. Only then can we disentangle the impact of social media from
that of other factors. However, we also need to compliment ROI metrics with more diagnostic measures
of the consumer process to understand what we’ve managed to impact. The sales increase that fuels ROI
calculations is an outcome of a staged consumer process. A consumer must 1) be aware of our product, 2)
develop a preference for and ultimately choose our product over our competitors’ products, and 3) be
satisfied with our product an repurchase (Moe & Schweidel, 2014).
-
-
-
-
Linking data and metrics with strategic decision and performance
o Key metrics that can support strategic decisions = organization specific
Customer engagement
o Long-term relationship
o Integrated CRM systems
Customer acquisition
o Leverage social data
▪ Taking advantage of social network
▪ Friends of friends of friends
o Seeding strategies
▪ Influencer → not # followers, but actually affecting behavior
▪ Small group of influentials → mass
▪ Promotions
Sales
o Positive correlation online sentiment and sales volume
o Generate incremental sales
▪ Same products, different customer ratings
▪ Positive reviews => greater sales
ROI: Comprehensive analysis includes effects of social media strategies
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4. How to respond to information?
Web 2.0 and 3.0 stand for two-way communication, in which both partners – the customer and the sales
firm- are seen as equally valuable. Therefore, as a firm use your human voice in order to retrieve that
balance!
4.1 Human Voice in Messages
-
-
Human Voice is Important
Indicators of Human Voice
1. Open to dialogue
2. Welcoming conversation-style, communication
3. Providing prompt feedback
Types of voices
o Conversational Voice
o Corporate Voice
4.2 A well-managed opinion community
→ Minimizing social dynamics
4.2.1. Encourage a variety of voices (Moe & Schweidel, 2014)
The biggest risk to an online opinion community is that it becomes dominated by a self-selected and
nonrepresentative population of individuals. Companies should encourage a variety of voices – especially
the moderate voices – to participate in the social media community (Moe & Schweidel, 2014).
-
Negative: community dominated by self-selected and non-representative population
Encourage especially moderate voices
E.g.: follow-up emails to rate consumed products
4.2.2. Minimize expert effects (Moe & Schweidel, 2014)
Experts often express negative opinions in order to come across as more knowledgeable. This expert effect
contributes to negative social dynamics where posted opinions become more negative and extreme over
time. One way to minimize the bias of social dynamics is to minimize the expert effect on expressed
opinions. The key question is, how can we provide a different mechanism that allows them to signal their
expertise? Sites that allow posters to provide short bios offer these experts a signaling mechanism.
Alternatively, some review sites allow others to evaluate posted reviews and reviewers. A simple question
such as ‘was this review helpful?’ or ‘did this post add to the discussion?’ would encourage a poster to
write a review that is focused on being informative rather than on promoting the reviewers by signaling
his expertise (Moe & Schweidel, 2014).
-
Experts: often express negative opinions → negative social dynamics
Key: Provide altenative mechanism that allows to signal expertise
o Allow to provide short bios of the rater
o Allow others to evaluate posted reviews and reviewers
▪ “Was this review helpful?”
▪ → encourages to write an informative review rather than one promoting the
reviewer
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4.2.3. Impact of social dynamics (Moe & Schweidel, 2014)
Both ratings and resulting product sales benefit from having a higher variety of opinions represented in
the forum. That is, posted ratings represent a diverse set of opinions, the number of comments
subsequently posted to the community increased, creating a richer discussion environment in which more
opinions are posted and different pints of view are represented. This dynamic is associated with a number
of benefits for the product or brand. First and foremost, the more vibrant online discussion directly
translates into greater sales through the increased word-of-mouth activity. Second, sales are better
insulated from outlier reviews. Since no product is perfect, there is always the risk of attracting an
exaggerated negative rating, whether it is deserved or not. When this inevitably occurs, the product or
brand is better insulated from negative sales effects when a more diverse collection of other opinions
exists (Moe & Schweidel, 2014).
-
Ratings and resulting product sales benefit from variety of opinions
When ratings represent divers opinions:
o Number of comments subsequently posted increases
o Richer discussion environment: more opinions, different points of view
o Greater sales
• through increased WOM
• Sales better insulated from outlier reviews
→ Create an inviting environment
- Make posting not anonymous
- Make it possible to rate the reviewers
- Let the reviewers provide information about themselves
- Encourage business and service providers to respond to reports
- In case of extreme dissatisfaction: engage in complaint resolution
o The review environment must be less seen as a forum to vent complaints and more as a
resource for complaint resolution
Possible exam questions
Potential exam question: KNOWLEDGE
Give 3 determinants why we in the opinion expression stage adjust our opinion expression in such a way
that we differ our opinion from others? Give the name of the effect and explain.
ANSWER:
Self enhancement: People want to attract attention. This can be rather done by differentiation your
opinion than by conformity.
Expert effect: Experts try to differentiate their opinions from those of others in an effort to highlight
their distinct value as experts. As most online opinions are positive they distinct themselves by
formulating negative opinions.
Underdog effect: Our inclination to support the losing side (or the underdog), especially when the
opponent greatly outmatches the underdog.
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Potential exam question: INSIGHT
1. The‘Movember Foundation’ is a charity organization focussing on the health of men. Prostate
cancer, testicular cancer, mental health problems and the prevention of suicide, they tackle it all.
With the following message, they ask the world to contribute: Leave a mustache and raise funds for
man's health with your own Mo. Which one of the six steps of Jonah Berger is here applied?
ANSWER:
Make your message public
2. Which concrete technique is used? Explain why this is effective.
ANSWER:
‘Behavioral Residue’. A behavioral residue – such as the moustache – is a discernible evidence that sticks
around. The moustache makes the movember foundation public visible, a thing which is otherwise
difficult to observe. In addition, it facilitates imitation. Seeing moustaches encourages growing
moustaches
Potential exam question: APPLICATION
Give an example of how you as a business manager should minimize the expert effects as a social
dynamic on your online community?
ANSWER:
You should make the utility function of the reviewer publicly visible. This can be done adding to each
reviewer a ‘profile page’ in which a brief sketch of the person (age, gender), his expertise and interests is
presented.
e.g. Amazon.com → reviewer profiles
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Guest lectures
Guest lecture 1 – Managing partner – Strategy Director at Leo Burnett Brussels
➔ Gap between the brands I like and advertising
➔ Advertising should bring brands closer to people’s lives
Introduction
Aquarius – Coca Cola
- had been running to same copy for years
- always in a sport context
- Aquarius as a reward, you have to suffer
- Problem:
o If it is just a sports drink that hydrates, there are a lot cheaper alternatives
▪ Coca cola is not a sports brand
o There are brands that are sports brand that are maybe more expensive
▪ These are more incredible sports brands
o There is no longer the belief that you need to suffer to attain your goals
- You had to shift that whole brand
o Coca Cola didn’t want because they promoted themselves as a sports brands, but it doesn’t
work
o Changed to app to a different look, show how people enjoy sports
Samsung
- We know Samsung from what we can touch
- They don’t need to advertise
- People follow what is going on with the brand
- Is leader in fridges
o Things we are not really invested in
o Don’t buy them often
- Engineering/technology driven company
- “welcome to the new home”
o People don’t need a new home
o Anything you’re doing right now, make it more easy
o Only change a machine when it breaks down
o Home is the one place where you act what you want, don’t adapt necessarily with
technology
o People want their home to function, and to adapt to their needs
Advertising?
-
Advertising can be (made) interesting.
o Ads are getting annoying, not just online, everywhere.
o Endlessly repeating doesn’t work
o The right to annoy people  an opportunity to be interesting
▪ Say something people might care about instead of thinking you own the right to
let people watch your ad
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Taking people for granted
o People are not rational beings
o Most buying decisions are emotional
o People change when they are emotional
o Emotion leads to action, while reason leads to conclusions
o Not what you say it is, but what they feel it is
Agencies and their organizations
3 key departments of agencies
- Account department
- Strategy department
- Creative department
Back to basics
-
Seeking greater penetration is almost always the winning strategy. More new consumers
Light buyers are your most valuable consumers
Buying is the desired outcome.
People (almost) never care enough about brands
Mental availability is not ‘always on’
Targeting is not the holy grail
Wastage is underrated
There is no one way advertising works
Advertising works best with the consent of people
Their brands, not ours
Young people and smoking – European Commission
A coherent of innovative pan-European campaign to encourage smoking cessation by making smokers
aware of the dangers of smoking.
➔ 500 RFP: Request for Proposal
- It’s a shit grief
- If you just to answer against the brief, you open yourself for all sorts of legal bullshit.
- You do thing you are normally paid for, for free
Problems making smokers aware of the dangers of smoking:
- Number of competing messengers
o Legislation
- Local campaigns comes from organisations that are a lot closer to the society
o More human
- Packaging rules
o Already pushing the message
➔ Coping mechanisms: we avoid it
➔ People start laughing with it
Governmental campaign from Europe
- There is an active type of resistance
➔ There is something wrong with your grief
- There is a number of people already telling people to stop
Positive aspects of potential new behavior  negative consequences of current habits
➔ Ads where about positive effects of ex-smokers
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Guest lecture 2 – Bottled water
-
Water is a basic need → wide spread availability
Mineral water is a gift of nature → extremely profitable
Water brands invest a lot in packaging designs
+100.000 points of availability → available everywhere
1973: first PET bottle
Plastic is a big problem now
Story of water brands: focus on the plastics problem
Recycling of bottled water is not a solution
➔ Tap water is the solution: water pipeline
Raw material cost = €0  a chain of massive profit
A chain of massive profit
- Package manufacturers
- Bottled water manufacturers
- Wholesalers/retailers
- …
Machines that make sparkling water: Sodastream
Guest lecture 3 – Bake & Company
It is said that coca cola started digital marketing by a video of putting mentos in cola, while it was actually
a consumer starting it. They also still didn’t really know what they were doing. They said: just have a look
at local level how it could work and they learned by doing (in the beginning it was just the advertisement
for tv, but a bit different)
After that Alpro, no digital marketing yet and smaller budget than a company as Danone or Unilever. So,
they started in a smaller matter. Also team up together with Dutch people, but it as already hard to work
together (cultural differences). So just imagine how it would be working with people from other countries
(UK, France, etc.). Hard to find a model that scales in the right way
Trends.google.com → very interesting for next career. It shows all things people are googling and what
trends are. May be interesting for research, market research, consumer research
Bake & Company helps making digital marketing plans for different brands to help them.
1. Plan to differentiate
If you look at the top global brands. They’re not very active in advertising (especially on tv), even though
they are super big brands. There is something in how they operate that is different
- Old school advertisement:
o Mass production (push)
o Incredible: more generic message
o Interruption: interrupt whenever you can
- New Media:
o Individual interaction: more personal adapted message
o Credible: cultural aspects
o Your place & Time: so while you are scrolling/googling etc.
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Observe: POST:
- People: look at people and what their interests are
o Cultural is very different here, for different people you need different types of
communication
o You want to identify who’s the person you’re talking to
▪ You can identify on which markets you can target them and connect with them
▪ Identify which channel to use (however, very hard globally, even though Facebook
and Google do make this easier)
• Global channels make this easier as well, since before there mainly local
channels (Hyves, myspace, etc.). Mass channels (Facebook) make this easier.
▪ You can create campaigns easy online and test how big an audience is online
o Netflix has a very smart way of marketing (combination of friends with ‘cute cats’) or a more
dark series with different content in front of it. Different thumbnails for the same video to
see what is seen as more attractive to you as a person (or whole culture)
o Ad sequencing: you get the same advertisement multiple times, but in different ways, so you
can create awareness first, than show the product, and later where to buy it.
o YouTube: weather or other targeting: campaigning based on the weather. If it’s sunny more
drink advertisements because you will be more thirsty. So instead of a national campaign,
you will have a campaign for certain areas that have different weather conditions.
- Objective: what do you want to realize
- Strategy: Type of message
- Tactics: the way doing it: how should the website look etc.
Think Big, Start Small
There is a couple of ‘common’ rules
- Facebook: videos are seen more than pictures and then words
- Google: F form in Western countries because of reading (left to right and up to down)
- Different payments for different places
- Google is changing every day and testing every day. It starts in the beginning of the day and changing
as it goes
Omnichannel
- Enable multiple channels at the same time
- Macy’s: make it possible for people to buy online and in a store that’s near. It’s all connected with
each other to generate most sales
o They divide people in their ‘needs’ and how you can create the content. Instead of knowing
what people like their store and connecting and creating what they want
o It’s about the complete journey of someone buying a product (so they maybe visit once,
then go back etc.)
- Tomorrowland:
o You get your ticket in a box and it’s a fancy bracelet you can buy your drinks with. A lot of
people film this unboxing which is again some sort of marketing
- Starbucks
o Misspell people’s names on purpose so people would take a picture of it and share, which
makes it go famous
- Have a look at the journey people will take in order to come to the purchase of a certain product
→ this journey can be used in many markets
- Service design: Think of the point of view of the customer
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Micromoments, that matter
o Interested in a specific topic
o E.g. Looking for a hairdryer, ice cream shop nearby, food delivery…
Service design: Map the ideal journey & projects
- Moments of truth
o e.g. Tickets from Tomorrowland
- disruptive thinking
o misspell your name, so you post it on social media
2. Automate to differentiate
Micro moments that matter
Term linked to Google: the idea that at any time during day/year you can have an interest that doesn’t
have to be who you are, but it will unite you with all the other people that have the same moment. The
same type of content can be pushed towards them
People have different moments and they are all interesting for potential digital markets
Know about moments, tactics, channels, what you want to achieve etc.
➔ How do you manage it??
Automation = same advertisement, but more automated and digitally generated
- Buy: It’s a complex system, it’s like an online auction that takes place in milliseconds
- Find:
o audience intelligence:
▪ by database,
▪ behavioral and
▪ contextual
o A lot of things are known and generated about you based on what you do and say (is not
100% possible to generate of course, can also go wrong)
- Deliver: delivering consumer experiences:
o Flows: if you open an email you get more emails than if you do not open. Message will
change based on this
o Hypothesis & testing: because of these flows you know what is working and what is not
working. Small differences in context and seeing when there are more clicks etc.
▪ Sometimes a small incentive will work better than big ones. It’s always best to just
keep testing and see what works better and learning by doing ‘you only know it
when you test it’
o Deep analysis: a lot of tools who will look at it automatically how to do it (digital marketing)
But automation can also go wrong! Facebook for example overestimated the algorithm. Also automation
can cost you money in the end. Or it can go wrong because it’s automated
3. Talk to differentiate
About language as well
Shelf management back in the days: years in advance think about how it should look etc.
Right now: search bar is used for shopping. So your search engine should be good, otherwise people will
never find your product. You need to be in the top result, or you will not be bought.
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Taxonomy: the words you will use to identify a product (doesn’t have to do with how the brand sees the
product, it’s all about how the consumer would navigate)
-
-
Hierarchy: how do you think, positioning in the category (similar to shelf: where would you be in the
shelf)
o Smart adjacent placements
Language: which words are you going to use
o Eliminating glitches
➔ Google images test: so type in your product name and see what comes up when searching for it
(which word matches with which type of product)
➔ Google autosuggest hack: type something in google and see what words are popping up behind
it
➔ Hyper local: different ways to select the locations → see how local you need to go
➔ Outside in instead of inside out: don’t think how you would ‘sell’ the product, but how a
consumer would present it. See if it matches each other and how you should be describing it
Language:
- Is changing very dramatically: because of ‘echo’ boxes that can answer questions you want
- Questions from big brands: because speakers are from google and amazon they might generate their
own products
Guest lecture 4 – Stille bliksem
= a communication agency that starts from the soul
Our approach
You must think first before you move.
First, we shape the brand’s story
- Branding strategy
- Naming strategy
- Creative direction
- Storytelling
- Creative writing
- Content creation
- Consultancy
- Workshops
Traditional PR: writing press releases and pitching them to journalists to get coverage = a pushy
approach that intervenes with people
Press release tips
- Think like a journalist
- Adjust to the medium
- Choose a personal approach
- Follow up but don’t be pushy
Inbound PR: pulling the right people in via self-created content that resolves around real people’s need
and feelings = a more engaging approach that solves the WHHM (What’s in it for me) factor
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Important rules for inbound PR:
- Optimize content for audience search terms (SEO)
- Share content on the (social media) channels your audience is active on
- Amplify your message through paid content
- Measure the impact
Working with influencers or brand ambassadors?
- Choose people who genuinely live by the brand’s message and belief
- Communicate clearly
- Trust is key don’t be afraid of creative freedom
- Think long term
As follower base increases, the likes and comments will not per se increase
Why we love inbound PR
- Technology and social media has made it easier to share your story
- The media are still important but you’re less dependent on journalists
Building credibility through social media
You must think before you move
Social media rules
- Stay true to yourself: create a coherent social media style and brand message
- Structure (make a calendar to plan the post)
- Don’t focus on selling products, but educate and entertain your community
o 4 types of posts:
▪ Convince (selling)
▪ Inspire
▪ Engage
▪ Educate
o The challenge is to stay relevant. People have to relate to your brand
- Make it real and spontaneous
- Be patient, building a community and credibility doesn’t happen overnight
Dare to step away from the persona and create a ‘state of mind’
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Guest lecture 5 – Digital communication
We are consumer and brand-centric
Marketing organization
Regional structure
-
-
-
Central marketing (performance marketing)
o Acquisition/targeting
o Focuses on performance marketing.
o Paid ads on social media/google/… Projects like google shopping, chatbot, analysis tools,
tiktok, youtube, …
Country marketing
o Mentor lifecycle/campaigns
o Teams in NL/BE/DE/DK
o They create campaigns for specific brands or thematics and handle the brand and member
lifecycle emails
Communication
o branding/communication
o PR, internal and external communication
o Owner of the organic social media channels (facebook/insta/linkedin)
Targets
Marketing targets and tracking
Given that we are a pure digital player most, if not all, of our marketing is digital and thus data-driven.
Meaning we also have full transparency on performance.
KPI from exco perspective
High level – central team
- New members
- New buyers
- New buyers IM
- Budget
OKR from group perspective
High level – central team
1. Growth of memberbase
2. Supporting TO growth (TO generated by new members)
Country marketing
Target follow up
Here are the main KPI’s summarizing the month of August 2019 for BELUX (all figures are coming from
the VEX monthly KPIs dashboard).
On B2C: we reached a TO of € X M. Which represents an increase of +18,31% compared to the previous
month and +6,84% to last year. However, this is 98,58% of the target.
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We had Y K visitors, it is +5,77% vs last year and +0,12% vs last month. Moreover they visited more
sales/visitor vs last month (+7,01%) and +1,65% vs last year with over Y’ sales visited/month/visitor.
The number of visiting days per visitor (7,00) increased compared to last year (+0,57%) and last
month (+3,09%).
Buyers : With the unique buyers we reached Z K. Which is +13,81% more than last month and an
increase of 5,08% vs last year. This leads to a conversion of 2,24% (+2,98% vs LY & +3,13% vs LM)
Regarding the new buyers we landed at Z’ new buyers for August (+4,35% vs LM & +3,48% vs LY) and
did not manage to go above the target (-6,6%). However, the new member target is reached (Z’’
ones which is +1,4% above target). Moreover, the Cost/New Member are 3,16€ (BE-FR) & 2,66€ (BENL) (+4,29% & +0,38% vs July19)
Sale with the highest Net Turnover: Ralph Lauren (.K €) | most Unique Visitors: Adidas (.K UV) | most
New Members: Adidas (. NM) most FTB: Kipling (. First Purchases)
At marketing level, we generated an extra TO of ..K€ in BELUX thanks to 16 B2B emails.
This amount is split as follow:
- 10 brand specific emails sent by the local teams: ..K€
- 6 specific emails sent by the central team (sales sourced by the central team): ..K€
- They generated >11% of the total TO of the sales we pushed
In August, a free shipping action was also run during the long week-end of the 15th.
The results of the 5 days in total were:
- .K uses generating an uplift in orders of 26%
- 32% of buyers used the coupon
- Additional margin .K € - ROI 318%
The strongest days were the first (announcement via email) and last day (reminder puno was sent) of the
action.
For the rest of the month OB flow was sent everyday (which was started end of SEM1 but interrupted
due to workload).
We also started the evening sales on the 19/08 (more than 10/week) for which we are currently
analysing the results.
➔ It’s always about the metrics: budget, prognoses …
Ads and branding vs competition
Ads why not TV?
- Tv ads have a high cost
- You need a professional production (given European scope running in > 400k)
- You need a few million before people will notice and remember the ad
Disclaimer: For KBC I ran 4 ads a year on TV totalling 6million and who of you remembers the KBC Live
advert ?
Yet we do need a brand campaign
Marketplaces like Bol.com , Zalando, CoolBlue & Amazon dominate BENL ecommerce, while Veepee
catcheslow attention among flash sales players
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Absence of rebranding communication causing decreased brand awareness for Veepee (VEX at 37%)
In addition, higher marketing spendings from the start such as for Zalando seems to pay off in terms of
brand awareness
!!!
- Difficult to compare one competitor to another as marketing costs computations are not detailed
- Veepee figures do not include couponing/voucher actions, neither the cost of the loyalty program
We believe we have to follow our own road
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Mutual respect
Transparency
Clear and proactive communication
Exclusive insights
How to improve customer experience
- Wowing workshops
- →building a brand based on what you’re good at
An example: why we believe a brand has value
➔ Starbucks for example: build a brand about their USP: experience
Get the attention of our customers
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Push/pull
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Make it honest, personalized and be consistent.
The efficiency of emails is declining
Improving algorithms by a-b tests
Personalization
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We traditionally have invested in mid-late funnel activities (direct response)
NEW CHANNELS (FOR VEEPEE)
- Google shopping is the first browsing and intent destination for online shoppers
- YouTube:
o This search for authenticity and reinsurance requires a need for projection
o for explaining the FAQ’s
o Made possible by the video + engaging + emotional, shareable in 1 click: Youtube, Tiktok
become new audience hubs focused on the use of video
o Instagram and YouTube growing fastest vs other social networks slowing. Also, new players
entered the market rapidly (such as Tik Tok based on video)
o Video is about sharing: On average, a video generates 1200% more sharing than text and
images combined
o The primary purpose of a YouTube user is to watch videos in order to find interesting
information on a subject or product, but also to have fun
▪ If an image is worth 1 thousand words : the video is priceless
▪ The Youtube format offers an interactivity that makes it particularly attractive -->
Videos increase people’s understanding of the product or service by 74%
- Influencer marketing
o This search for authenticity and re-assurance also involves the concept of community
o Emergence of the notion of recommendation by a third party and no longer only by brand,
made possible by the UGC (user generated content): People trust people
o 27% of consumers state they trust UGC content more than the information provided by
brands
o 97% of buyers aged 30 and under say that UGC influences their purchasing decisions
o this is important to integrate into new ways of consuming. Provide reinsurance, enhance
brand discourse to generate business through an increase in the conversion rate
o 75% Of followers made a purchase after the recommendation of an influencer
o 92% Of consumers have more confidence in an influencer than in advertisement
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A good strategy: Asos, pioneer in this field
ASOS focuses on a strategic category of influencers: ASOS Insiders, which attract smaller but more
targeted communities. Insiders are really identified based on their personality, their projects, their way
of creating content.
1- Sponsorship of the influencer's personal account on a third-party account identified by Asos
2- Creation of a personalized page on the site for each muse with his personalized selection (lifestyle
content and promotional codes)
Daniel Wellington: only does influencer marketing → is now a multi-million company
NEW SOCIAL PLATFORMS TO BOOST OUR MIX MARKETING
Social networks prescribers in the act of purchasing
Social networks have therefore become prescribers in the act of purchasing and their influence is now
very important. They seek to monetize their audience time by creating moments of shopping guided by
the emotions of the moment
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70% Of 15-25 consider social networks as major purchasing channels
40% Of merchants use social media to generate sales
5% E-commerce traffic now goes through social channels
Our current platforms are no longer sufficient...
➔ Digital marketing requires a multi-channel approach Investments in entertainment and gaming
To recruit more, we need to invest on platforms that provide experience for a mix of …
- ...inspiration
o For people who are ready to take action. In search of inspiration, they explore or follow very
specific product lists
o A network based only on photos: very relevant to show products
o The brand's Pinterest followers would spend 15 times more than Facebook fans!
o Sephora only earns a little more than twice as much income with its 4.7 million Facebook
fans as with its "only" 144,000 Pinterest fans)
o 97% Consumers explore or follow very specific product lists. These reflect a strong interest
and a real intention to buy. It is therefore an opportunity for a brand to make itself known
from the very beginning of a user's purchasing process.
o 83% Of weekly users report having made a purchase after seeing pin registered by brands
- …entertainment and gaming
o A network with special contents that humanizes the brand though humour and pleasure,
emphasizing the emotional connection with users
o 13% Is the increase in the number of active users per day comparedto2018
o 40% Is the increase of the time spent on the Discover tab by userssince2018
o MORE THAN 3 BN snaps sent every day for a time spent of about 30-4 0minutes per day
o Snapchat, an essential social media in the marketing mix to increase brand differentiation
through unheard content
- … With the growth of stories, a format of a new kind of which to capitalize
o In-the-moment content will win out over highly-produced content.
o It allows: gaming, interaction, humour, personalization, authenticity, creative content
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… A social media that rhymes with authenticity and proximity
o Whatsapp still under-exploited from a marketing point of view but which will offer great
potential as soon as advertising appears on it
o At the Facebook Marketing Summit, Facebook announced that WhatsApp would host
advertising in 2020
o WhatsApp ranks thirdamong the most used social networks in the world, behind Facebook
and YouTube
Content marketing 1 on 1
- Ignore personal feelings for the persona
- See their numbers and the amount of engagement/feedback
- Install our vision in our audience
- Build trust and sympathy
Questions concerning guest lecture by Stefan Venken
Topic: E-mail marketing (push)
1. How can you stand out in the e-mail inbox of potential customers?
Have relevant messages, you can try to work on the title and use emoticons, but that only works if you
have a low-volume mail strategy anyway.
2. Is e-mail still the future? And is it still effective? Because most of the emails end in the “spam box”.
It is not about being the future. It is mainly regarding being effective. Today 50% of our turnover is
attributed to the daily sale invite. It is true that a lot of emails end up in your spam or promotions box, yet
due to the absence of cost and the fact that you do check them from time to time still makes it a relevant
channel although I wouldn’t recommend overcommitting to it.
3. If the receiver gets the push-mail, how can you make sure he reads your message till the end and does
not consider this as a spam e-mail ?
Craft relevant messages. Do not focus on tricks since they always just work for a short while. If you spam
people they will label you as such. In our line of business it is rather normal that a lot of people get fed up
after a while, so we prefer to shift them to weekly before they signoff/optout completely.
4. How is it possible that regular emailing remains relevant to this day with no sign of losing its
importance anytime soon? Why aren’t more advanced applications taking its place?
Good question. What do you think ? I assume it is mainly demographics. The people for whom email
worked will keep relying on email. The issue is mainly with the newer generations.
5. What’s the best time and day to send e-mails?
Depends on what you are selling
We opt for 7am and 7pm and in the weekends 9 and 12.
6. How do you decide how many e-mails you are going to send? Aren’t you scared that everybody will
unsubscribe? How do you handle unsubscribes?
We try to find a balance, although I still feel we overcommit to email today. 2-4% unsubscribe within the
1st month. After that it remains a small number that really unsubscribes. Most people just let if fill their
promotions box and just sift through it. We believe there is value in just having a clear title that pops up
when you are already in your mail client to convey the most important message.
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7. What are the benefits for a company that uses e-mail marketing? Do they get a lot of click-trough’s?
Do those people also actually buy something?
Email is ‘free’. And yes due to sheer volume the clicks are a lot. Click rates are rather stable, 50% of all TO
is actually stemming from people clicking on an email.
8. What kind of subject do you need to give your e-mail so people will open the e-mail?
A relevant one.
9. What is the privacy legislation around e-mail marketing and what is the effect of GDPR regulation on
e-mail marketing?
It is rather extensive but most importantly. You don’t send email to people that didn’t consent to emails.
We even split between daily mails (legitimate interest) and pure marketing emails f.e. People have the
right to be forgotten and to request whatever data you collect from them. People also opt out of the
personalisation f.e.
10. How can you, as a company, collect e-mail addresses efficiently? By efficient I mean e-mail addresses
of people who are really interested in your product and thus potential customers.
Membership benefits works.
11. Why is e-mail marketing so important?
It is a direct channel, no-one ones the channel (as opposed to facebook/google) and it is free to
communicate with your customers.
12. At what point can you lose customers instead of gain customers with e-mail marketing? How many
e-mails can you send to one customer and with what frequency?
Depends on the economics of your service/product. In banking we used to say max 2 commercial
messages per month. In ecommerce daily is okay if your offer warrants that type of message updates. We
have some customers that visit daily and have opted in and read more or less all of our 80 emails a month….
13. How do you receive the highest ROI of your e-mail marketing campaigns? How do you determine
your e-mail marketing audience? How do you determine the quantity of resources to allocate to e-mail
marketing?
Learn your metrics. Turnover is king. All the others are vanity metrics. Email audience is determined by
using an algorithm to ‘predict’ relevance and then selecting that audience with a small control group to
validate the correctness of the audience selection.
14. How important is the use of pictures in e-mail marketing?
Visual marketing works well on email/social and other channels. People don’t read unless they have a
reason to. So no they will not read because you want to sell them something.
15. How do you know if an e-mail campaign is successful? What kind of metrics should be used to
measure the effectiveness?
A/B tests and turnover effect. The other metrics would be conversion (buyers over traffic/audience size),
longer term metrics like revisit rate for churning members, opt out rates, discovery effects of second sale
visit in same session etc…
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16. Is it better to send out a newsletter to all subscribers or to try and put the subscribers into certain
target groups and send out more specific newsletters to each group specifically ?
The latter. If you do go for the first, make sure the newsletter is personalised. Else your blacklisting will
go super fast (being marked as spammer)
17. What is the importance of personalizing e-mail campaigns?
It is the main way of improving your results.
18. You now have a separate folder on gmail for ‘advertising emails’. Is this deadly for email campaigns?
Nope, just makes it less intrusive for the consumers, so I feel it is a good thing. It challenges the status quo
of normal email marketing but it is a good thing for the consumer.
19. What are some of the latest trends in email marketing?
Whatever hype some unknown is selling you in an email marketing course
Just remain relevant,
personalise and make sure you have more than a single channel to communicate with your
customers/prospects.
20. What information should be included in our e-mail?
Which problem you solve (the why), who you are (and why they can trust you)
21. Do you use e-mail marketing only for B2C or also for B2B?
Mainly for b2c, for b2b we rely on cold calling/emails yet more on networked introductions.
22. How is the conversion rate of e-mail marketing? Is it more valuable/efficient in terms of costs
compared to other digital marketing tools?
Conversion rate in which sense ? Costwise it is cheap. Efficient determined by TO versus cost it is
unbeatable (yet you should also calculate cost of lost opportunity when you lose customers)
23. Do you take in account the age of the customer to send one or another type of email? For example,
to people who are 60 years old you send e-mails that are more formal and with less images than to
people who are 20 years old, but both with the same central message.
Yes, but not on our tone of voice. More on the products and selections. We as a company remain the
same towards all customers, people would catch up on the ‘fake’ persona sooner or later.
24. In e-mail marketing, is it more important to leverage on the content (textual description of the value
proposition) or the design and attractiveness of the offer?
I would go for the first since I feel most people over value ‘aesthetics’. The best conversion landing pages
are often fugly….
25. Do you think that in the future, e-mail marketing will be fully replaced by social media like Instagram,
Facebook, or will it still be an important part of digital communication? Or what are the advantages of
email marketing over social media?
Not fully. Yet complemented (yet that is already the case). There will always be room for a direct to
consumer channel (so without a paid middle man). Could be sms as far as I am concerned. (although I
hate it when companies do it)
26. How do they collect the email address? Where from?
Membership, never bought.
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27. How efficient is an e-mail campaign in terms of conversion rate compared to pull marketing channels
like social media?
Cost wise it can be very efficient. Social media has the benefit that it can spread beyond your own
memberbase and can have a longer ‘life’.
Topic: Social media as a reactive marketing tool
1. How to deal with negative comments and complaints on social media platforms?
Don’t feed them. There is a lot of salt on the internet. Look for trends and respond in general if you made
mistakes, if not I prefer to ask for a DM and if they persist on bashing I ignore. (Worked in a bank for a
long time, learned a lot on general perception and how to grow a thick skin)
2. Digital marketing on Facebook is often personalized, but how do people react on these
advertisements? Are people aware of systems tracking their clicking behavior? What about privacy
issues?
Some people are, most aren’t fully aware of the data collection strength of facebook. Often the brands
that advertise have no knowledge of which knowledge is linked to the selection, making facebook very
powerful and also a force to recon with… I am scared of the privacy issues, mainly because the fact that
they are able to ignore the GDPR extent as opposed to smaller compliant systems makes them gain in
personalisation power versus the actual brands. F.e. fishing and Aigle boots.
3. Promoting your product via influencers on Instagram: is this just a ‘hype’ or is this type of marketing
really effective and a long term communication tool?
Can be both, however I do feel everyone wants to be an influencer and many are in it because it is a hype.
When demand/offer levels again the real ones will remain at correct cost. Currently I do feel it is shifting
to a cost that is not in correlation with acceptable ROIS for the big influencer accounts.
4. Do you think the trend of influencers will keep on growing or will there be another trend? If so, which
one?
It will remain, yet I can imagine more platform economies popping up (we are testing influo for example).
It will change as well, a lot of brands are fed up with the unknown 18 year with an iphone asking for
freebies to post to her 15 friends and 5000 bought followers.
5. How do you determine on which social media platform you will be active?
Economics really. Facebook has the biggest reach in our main audience (40ish females with kids),
Instagram as well although somewhat younger audience. We tried snapchat yet stopped, we looked into
tinder yet ROI was off, tested pinterest but didn’t find a good setup, we are now testing tiktok and will be
looking into linkedin for content marketing on top of employer branding. We are looking for ‘cheap’
engagement real estate.
6. Is reactive social media in every situation appropriate? How do you pick out the right situations?
No, you need to be careful. We sell sex toys and kinky lingerie as well, people don’t really like it when you
show it in their facebook timeline in the evening when the SO is looking on the family computer or when
the colleague sits next to them in the train. Even if they visited the products or even are interested in
buying them… So it is not a matter of being right per se, it is also understanding where people see this
content and how that differs from the own app/website. Advertising on pornsites is more or less the same
concern. I am convinced it could work, yet the association would put people of. (Dollar shave club has
proven it…)
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7. How can a company measure its social media marketing success and how long does it take before you
see any results?
First determine what you think is success (should be different for organic and paid) For organic in our case
that would be positive engagement, organic growth in followers and hopefully turnover growth in the mid
to longterm. We track it through UTM parameters yet it can’t replace our email or paid media approach
on social currently.
It takes time and effort to keep doing it consistently, it will gain traction after a year or so if you still need
to start.
8. What are the downsides of reactive communication? Isn't it better to be proactive since you solve
matters before they become an issue?
Predictive analysis is a nice study field yet the current state is not as super as most consultancy firms want
to make us believe. We tried quite a few of them. So it is not a matter of not believing proactive is better,
it is more a matter of evaluating the cost of false positives as well.
9. What is the most effective social media platform for digital marketing? And in which sectors does it
work best?
Depends on the sector. For us facebook/insta convert well in terms of new members, yet the quality of
the visits is rather low. Google adwords is a stable platform cost wise, google shopping looks promising
currently and linkedin/medium/tiktok are ‘interesting’.
Topic: Digital marketing
1. Is digital marketing booming on both the B-to-B as the B-to-C market? Or are networking events more
interesting for B-to-B marketing?
For a pure digital player digital marketing comes naturally. I would augment digital with OOH/traditional
marketing however. For b2c and for b2b. For b2b I wouldn’t underestimate personal networks and events
indeed. On a personal note I am convinced that if you want to grow b2b you should start focusing on b2c
as a brand however. When you have customers you will receive people wanted to promote you. The
other way around seems silly and not very cost efficient. In the end it is always people using/buying your
products.
2. How do you determine the perfect balance between push and pull marketing in order to optimize the
reached audience?
A/B testing and KPI tracking.
3. Do sales revenues increase more by using e-mail marketing than social media? Or is it the other way
around?
Depends on the volume you spend on either one
4. Do you always have to use a push and pull strategy together? Because the push helps create the need
and pull is a way for user to satisfy that need. Are can you use them separately, and why?
I would always go for full funnel views. In the past we called it a marketing wheel, today other models
exist yet the idea is always the same, be where people are and try to find the best channel for their state
in the funnel.
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5. In this digital age digital marketing is clearly growing in importance and seems almost indispensable,
but as always everything evolves. How will digital marketing, according to you, evolve in the future?
More and more data/personalisation and platform economies. I actually did a close to an hour podcast
on raccoons radio on that topic
6. Does the way of doing digital marketing depend on the product or service you sell and how? E.g.:
“When you sell clothes, it is better to do the biggest part of marketing via social media but a small part
needs to be done via e-mail as well” or “When you sell washing machines, doing marketing on social
media does not have a big effect so it is a waste of money”
Not really. When you sell washing machines than don’t focus on the speed and water usage of the machine
yet rather on the benefits for a user. For example new things that make it easier for a single divorced 30+
male to not screw it up, or how it fits all football gear of a new-combined family with 4 kids. It has been
a while since I saw an ad for a dress that shows the stitches and where you bought the buttons. Mostly
we want to buy the emotion the product will give us. That doesn’t change, yet for some reason most
people still believe tech products needs specs. Apple got that part right..
7. Which is the most important strategy to have as a company? Push or pull marketing and why? What
is the most effective digital marketing for you? E-mail marketing or social media?
A clear brand strategy would be a solid starting point. A combination of your own value strategy with a
strong customer centric strategy that sparks and adjusts the products/services you create.
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