How Consumer Acquire, Remember, and Use Information

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Information Processing:
Part I
MKT 750
Dr. West
Agenda
Evaluating a Marketing
Communications Campaign
Information Processing Framework
Exposure
Attention
Comprehension
Evaluating a Communications
Campaign
Marketing Communication Vehicles
Customized
Salesperson
Web
Database
Telemarketing
E-mail
Direct Mail
Media
Radio
Newspapers
Magazines
Catalogs
Infomercials
Television
Mass
Broadcast/
One-Way
Two-way w/
Time Lag
Instantaneous
Interaction
Nontraditional Marketing
Product Placement
BMW Z3 Roadster
Event Sponsorship
Red Bull
Atmospherics
Starbucks
Grassroots
Marketing Communications
Goals/Objectives:
Outcomes:
Affect behavior
Increase Sales
Start with your customer/prospect
Create Value
Use any and all forms of contact
to get your message across
Achieve Ubiquity
Achieve synergy
Enhance efficiency
Build relationships
ROI
6 Key Steps For Success
Market
Identify your target audience
Understand perceptions and key benefits sought
Consider the buying decision process
Mission
Set goals: sales, profit, share
Message
Develop compelling content
6 Key Steps For Success
Media
Evaluate a full spectrum of channels & vehicles
Money
Establish a budget suited to your goals
Measurement
Test integration (not isolation)
Monitor effects
Evaluating an
Advertising Campaign
Who is the target market and how will
they respond?
How involved is the consumer?
What is the nature of the purchase?
Functional/Utilitarian vs Feeling/Hedonic
First-time purchase vs Repeat purchase
Use the FCB Grid
Evaluating an
Advertising Campaign
What is the objective of the campaign?
AIDA & Hierarchy of Effects
Persuasion/Changing Attitudes
What are indicators of success or
failure?
Evaluating an
Advertising Campaign
Were the right tactical decisions made?
Does the medium fit the message?
Involvement and interactivity
Affect
How well is the vehicle suited to the target
market?
Will the target respond favorably to the source?
Is the source credible, likeable, attractive, familiar?
Evaluating an
Advertising Campaign
Were the right tactical decisions made?
What are the strengths and weaknesses of the
ad execution that will facilitate:
Gaining attention?
Comprehension?
Acceptance of the message?
Retention?
The Persuaders
Why are marketers feeling more pressure
than ever to change and innovate? How is
the industry responding to these pressures?
In a highly competitive, product-saturated
marketplace, a new product needs to offer
something that goes beyond the brand.
What are companies doing to meet this
challenge?
The Persuaders
As consumers grow more cynical about
marketing claims, researchers have to refine
their methods to reinforce their brand. How
can a company create “loyalty beyond
reason”?
What new ways do you think marketers will
come up with to grab the attention of
consumers?
Back to the book…
Consumer Information Processing
Consumer Information Processing
Stimuli
Exposure
Attention
Comprehension
Acceptance
Retention
Purchase
Gaining Exposure
This occurs when there is physical
proximity to a stimulus
Vehicles
Radio, TV, newspapers, magazines, internet
Selective exposure
Consumers deliberately try to avoid our
attempts to interact with them
Advertising, Direct mail, Telemarketing
Gaining Exposure
What’s a marketer to do?
Make your message involving
“Brewing romance” campaign
Product exposure:
Distribution & Visibility
Nontraditional vehicles:
Elevators, Airports, Buses
BMW Z3 Campaign
Overexposure
Habituation
When a stimulus becomes familiar it loses
it’s attention getting power
Ads lose half their effectiveness after
accumulating 1,000 GRPs
Products are less attractive when
everyone else owns one
Overexposure
Avoid overexposure through
Limited availability (scarcity)
Harry Potter
Use different ad executions carrying the
same message
Absolut Vodka
Turning Exposure Into Attention
Attention can occur when there is
activation of one or more of our five
senses.
Each of our sensory receptors has an
activation threshold
Weber’s Law: JND
The amount of change necessary to be noticed
is systematically related to the intensity of
the original stimulus
Consumer Information Processing
Stimuli
Exposure
Attention
Pre-attentive
Processing
Comprehension
Acceptance
Retention
Purchase
Voluntary Attention
This refers to the conscious allocation
of processing capacity to a stimulus.
Selective Attention
Occurs when a stimulus is in line with
current goals or needs
Such attention is selective due to the
plethora of messages we are exposed to.
Selective Attention
This ad is likely
to attract
mothers with
small children
and it reminds
them of their
special dental
needs.
Involuntary Attention
Occurs due to a built in “novelty
monitoring” mechanism
Evolutionary hypothesis – survival was
best insured by attending to unusual
events in the environment
Triggers:
Size, Color, Contrast, Motion are noticed
Appeals to our hedonic side (food & sex)
are also noticed
Examples: Novelty
Examples: Color
Examples: Color
Examples: Contrast
Examples - Motion
Examples - Motion
Examples: Size
Examples: Isolation
Is Getting Attention Enough?
Attention may be short lived
You have to use attention well once you
have it
Attention should be used in the service of
building the brand, or attaining other
strategic goals
Comprehension
Refers to the meaning we assign to
a sensory stimulus
The most crucial process in CB
because…
What consumers perceive determines their
actions!
Perceptions are a reflection of our
attitudes and preferences
Comprehension
What is perceived is not necessarily truth
Colas - 70% confuse Pepsi and Coke
Beer & Wine - blind taste test results
diverge from labeled
Coffee - over 50% couldn’t distinguish best
from worst, or regular from instant (Consumer
Reports)
Comprehension
Perceptions are often the heart of
marketing issues/problems.
Olay – P&G faced issues with “Oil of Olay”
being perceived as oily and old
Comprehension
Gestalt Principles:
Closure – we have a tendency to complete a
figure, or fill in the gaps
Processing effort – the effort devoted to
interpreting a stimulus leads to better
comprehension and memory
Figure/Ground – perceptions differ depending
upon what the individual sees as figure
(dominant) versus ground (background).
Illustrations of Closure
Illustrations of Closure
Assignment
Read
Chapters 8 - 9 (pp 278 - 298, 303 - 304,
316 - 330, 333 - 337)
Prepare for Case
Launching the BMW Z3 Roadster
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