The Consumer Audience Part 2: Planning and Strategy Chapter 5 The Consumer Decision Process • Need recognition • Information search • Evaluation of alternatives • Purchase decision • Postpurchase evaluation • The consumer recognizes the need for a product • Advertising should activate or stimulate this need 5-2 The Consumer Decision Process • Need recognition • Information search • Evaluation of alternatives • Purchase decision • Postpurchase evaluation • Can be casual or formal • Advertising helps the search process by providing information and making it easy to find, as well as remember 5-3 The Consumer Decision Process • Need recognition • Information search • Evaluation of alternatives • Purchase decision • Postpurchase evaluation • Consumers compare various products and reduce the list of options • Advertising helps sort out products on the basis of tangible and intangible features 5-4 The Consumer Decision Process • Need recognition • Information search • Evaluation of alternatives • Purchase decision • Postpurchase evaluation • Often a two-part decision – Select the brand – Select the outlet from which to purchase • In-store promotions affect these choices 5-5 The Consumer Decision Process • Need recognition • Information search • Evaluation of alternatives • Purchase decision • Postpurchase evaluation • The customer reconsiders and justifies the purchase • Determines whether the customer will keep the product, return it, or refuse to buy the product again 5-6 The Impact of Involvement • Involvement – Situational – Generalized • Decision Process will vary – Low involvement will involve little information search, and it will be primarily internal – Heuristics may replace alternative evaluation – Post purchase evaluation may only occur in the presence of cognitive dissonance 5-7 Two different Decision Processes Figure 5.8 5-8 The Elaboration Likelihood Model • Two routes to persuasion – Central route (high involvement): involves deliberate and conscious effort to process ad content and claims (message arguments) – Peripheral route (low involvement): involves little if any deliberate effort to process information; persuasion occurs through association with nonmessage stimuli such as music, visuals, humor, etc. (peripheral cues) 5-9 Simple ELM Central route Message Arguments Attitude Toward the Brand Peripheral Cues Purchase Intention Peripheral Route Involvement 5-10 Early Problems with the Original ELM • While they do mention the role of cognitions, they do not explicitly include them in the model – Cognitions are necessary to describe the attitude formation process • No mention of attitude toward the ad (Aad) – Aad has been shown to be a mediating factor influencing attitude toward the brand 5-11 Alternative Elaboration Likelihood Model Involvement Peripheral Cues Ad Cognitions Aad Brand Cognitions Ab Message Arguments 5-12 In High Involvement Conditions, Central Route Processing Dominates the Attitude Change Process Involvement Peripheral Cues Ad Cognitions Aad Brand Cognitions Ab Message Arguments 5-13 In Low Involvement Conditions, Peripheral Route Processing Dominates the Attitude Change Process Involvement Peripheral Cues Ad Cognitions Aad Brand Cognitions Ab Message Arguments 5-14 What does all this mean? • Low Involvement = Creativity rules • High Involvement = Message rules 5-15 The STP Framework for Marketing Strategic Planning • Segmenting – Dividing the market into groups of people who have similar characteristics in certain key productrelated areas • Targeting – Identifying the group that might be the most profitable audience • Positioning – Establishing a brand image or personality within the minds of the target market 5-16 Segmenting and Targeting • Market aggregation strategy – When planners purposefully use one marketing strategy that will appeal to as many audiences as possible • Market segmentation – Assumes that the best way to sell is to recognize differences within the broad market and adjust strategies and messages accordingly 5-17 Segmenting and Targeting • Types of segmentation Figure 5.8 5-18 Segmenting and Targeting • Targeting the right audience – The target is described using the variables that separate this prospective consumer group from others who are not in the market • Profiling the target audience – Describing the target audience as if they are people you know – Used in developing media and message decisions 5-19 Use of Perceptual Maps for Positioning Strategy • A visual depiction of product positioning • Identify two (or more) key product attributes on which differentiation may occur • Score each competing brand on the attributes • Plot the attribute scores for each brand • Can be used to analyze product position relative to competitors – Find gaps – Identify brand clusters – Guide repositioning strategy 5-20 Question to Ponder • Which element within the STP framework is most directly affected by advertising? • Why is an understanding of the involvement level of a target market vital to developing effective communication strategy? 5-21