Ch.4 How Marketing Communication Works US Advertising Spending in 2013 $171.7 Billion Does Advertising Work? Yes, it works to get attention, provide information, and sometimes offer a little bit of entertainment. Key Takeaways Q. How does marketing communication work? Q. How do we define the idea of advertising effects? Q. What is the Facets Model of Effects, and how does it explain how marketing communication works? How Does Communication Work in Marketing (basic model)? The SMCR model begins with a source, a sender who encodes a message and puts it in words and pictures. The message is presented through channels of communication, such as a newspaper or TV. The message is then decoded or interpreted by the receiver. Feedback is obtained by monitoring the response of the receiver to the message. The entire process is complicated by what we refer to as noise, things that interrupt the sending as well as the receiving of the message. How Does Communication Work in Marketing? Adding Interactivity to Marketing Communication Interactivity is important because, in addition to making a purchase, today’s consumers can react to marketing communication in many other ways, such as responding with comments, phone calls, and e-mail inquiries. Consumers now can initiate communication as well as receive it. “We are living through the largest expansion of expressive capability in the history of the human race”. The interest in buzz marketing is an indication of an important trend in marketing communication strategy that is moving beyond the two-way communication model. Permission marketing reflects this desire for more interactive and sensitive communication. The idea behind permission marketing is that you ask people if it is alright to contact them or you rely upon them to contact you first. What Are the Effects Behind Advertising Effectiveness? Advertising and marketing communication is effective only when it generates the advertiser’s intended response. The intended response is the message’s objective and the message is effective to the degree that it achieves this desired response. Traditional Approaches Because AIDA assumes a predictable set of steps, it is also referred to as a hierarchy of effects model. Think-Feel-Do FCB model The idea is that advertising motivates people to think about the message, feel something about the brand, and then do something, such as try it or buy it. AWARENESS KNOWLEDGE LIKING PREFERENCE CONVICTION PURCHASE Kotler & Armstrong’s Six BuyerReadiness Stage Model Once the target audience has been defined, the marke4ng communicator must decide what response is sought. The marke4ng communicator needs to know where the target audience now stands and to what stage it needs to be moved. The target audience may be in any of six buyer-­‐readiness stages, the stages consumers normally pass through on their way to making a purchase. Any difference? AWARENESS KNOWLEDGE LIKING PREFERENCE CONVICTION PURCHASE McKinsey’s Consumer Decision Journey Facets Model of Effects See/Hear (Percep:on) Think (Cogni:on) Feel (Emo:on) Connect (Associa:on) Believe (Persuasion) Act (Behavior) The effects are holistic, leading to an impression, or an “integrated perception.” The effects can also vary in importance, especially in those advertising campaigns whose specific focus is on only one or a handful of the facets. Perception (see/hear) is the process by which we receive information through our five senses and assign meaning to it. Factors That Drive Perception are: exposure, selection and attention, interest, relevance, awareness, and recognition Relevance, which means the message connects on some personal level (e.g., relation to the matter at hand) Recognition, which means people remember seeing the ad. Recall, which means they remember what the ad said. Recognition is a measure of perception and is used to determine awareness. Recall is a measure of understanding. Emotion (feel) mirrors our feelings about something. The affective aspect of consciousness; a state of feeling. Factors That Drive the Emotional/Affective Response: wants and desires, feelings, liking, and resonance. Emotion causes us to “feel” something. Emo4on Feelings. Our passions and feelings are addressed in a number of ways in advertising, such as humor, love, or fear. Ads that rely on arousing feelings are referred to as emotional appeals. Resonance Effective ads sometimes create resonance where the message “rings true.” Like relevance, messages that resonate help the consumer identify with the brand on a personal level. These sympathetic vibes amplify the emotional impact by engaging a personal connection with a brand. Emo4on Cognition (think) refers to how consumers search for and respond to information, as well as learn and understand something. It’s a rational response to a message. Factors That Drive the Cognitive Response: Needs, cognitive learning, comprehension, differentiation, recall Association (connect) is the technique of communicating through symbolism and it is the primary tool used in brand communication. It is the process of making symbolic connections between a brand and desirable characteristics and qualities, as well as people, situations, and lifestyles that cue the brand’s image and personality. Persuasion (believe) is the conscious intent on the part of the source to influence or motivate the receiver of a message to believe or do something. Persuasive communication are important goals of most marketing communication. Factors That Drive the Persuasion Response: mo4va4on, influence, involvement, engagement, convic4on, preference, loyalty Behavior (act/do) involves different types of action in addition to trying or buying the product. The goal is to get people to act, such as try or buy the brand, visit a store, return an inquiry card, call a toll-free number, join an organization, donate to a good cause, or click on a website. Factors That Drive the Persuasion Response: mental rehearsal, trial, buying, contact, advoca4ng and referrals Does Advertising Work? “I know half my advertising is wasted, but I don’t know which half.” John Wanamaker “A good basic selling idea, involvement and relevancy, of course, are as important as ever, but in the advertising din of today, unless you make yourself noticed and believed, you ain't got nothin’.” Leo Burnett “I do not regard advertising as entertainment or an art form, but as a medium of information.” David Ogilvy “Transforming a brand into a socially responsible leader doesn't happen overnight by simply writing new marketing and advertising strategies. It takes effort to identify a vision that your customers will find credible and aligned with their values.” Simon Mainwaring