Chapter 4: How Advertising Works After reading this chapter you should be able to:

Explain the two main communication models and how they relate to advertising. Give three reasons why advertising can fail to achieve its objectives. Outline the ways in which advertising works and describe its effects. List the factors governing the consumers response to advertising. Describe advertisings contribution to brand building.

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Advertiser and agency determine message objectives Objectives predict message impact Noise hinders consumers reception of message Feedback occurs in an environment of give-and take communication Achieved by using more interactive forms of marketing communication

How Advertising Works as Communication The communication model Mass communication is generally a one-way process Feedback is obtained by monitoring the response of the receiver to the message

Adding interaction to advertising

Two-way communication Mass communication is a one-way process: the message moves from the source to the receiver. Interaction communication is a conversation or dialogue and the source and receiver change position as the message bounces back and forth between them. Effective advertising is evaluated in terms of the impact it has on the consumer response to the message. External noise on a macro level: consumer trends (health trends harm the reception of fast-food messages-and problems with the products marketing mix (product design, price, distribution, marketing communication). On a micro level: bad TV or radio reception, clutter (magnitude of messages all competing to get your attention)

People use methods to avoid clutter by filtering messages they dont want to see viral marketing as a response

Advertising Communication Model

Three Models of Advertising Effect

Effects behind advertising effectiveness AIDA: attention, interest, desire, action

The hierarchy-of-effects model

The Facets Model of Effective Advertising 1. 2. 3. 4. 5. 6. Perceive (perception) Understand (cognition) Feel (affective/ emotion) Connect ( association) Believe (persuasion) Act (behavior)

Perception: The process by which we receive information through our five senses and assign meaning to it The components of perception Exposure: Making contact o Being seen or heard o Media planners try to find the best way to expose the target audience to the message o IMC planners consider all contacts a consumer has with a company or brand Selection and Attention: creating stopping power o The ability to draw attention, to bring visibility o One of advertisings greatest strengths Interest and Relevance: creating pulling power o Interest: The receiver of the message has become mentally engaged with the ad and the product o Relevance: The message connects on some personal level Awareness: making an impression o Results when an ad initially makes an impression o Most evaluations of advertising effectiveness include a measure of awareness as an indicator of perception Memory: Recognition o Recognition: remember seeing the ad o Recall: remember of what the ad said

Subliminal advertising Subliminal effects are message cues given below the threshold of perception; in other words, you cant easily perceive them-they are too brief to see or they are disguised. People who believe in subliminal advertising presumes such messages to be intense enough to influence behavior. Perception (seeing): message gets noticed?

Cognition: How consumers respond to information, learn, and understand something The components of cognition Needs o The cognitive impact of an advertising message o A cognitive ad explains how a product works and what it can do for the consumer o Matching product features to consumer needs Information: Fact about products and their features o Facts about product performance and features o Particularly important for products that are complex, have a high price, or are high risk Cognitive Learning: Creating understanding o When a presentation of facts, information, and explanations leads to understanding o Used by consumers who want to learn everything about a product before they buy it Differentiation: Understanding the differences between competitive products o Occurs when consumers understand the explanation of a competitive advantage o A consumer has to understand the features of a brand and be able to compare competing products Memory: recall- Locking info. in memory o When the consumer remembers seeing the advertisements and remembers the copy points o Ads use jingles, slogans, catchy headlines, intriguing visuals, and key visuals

Cognition (understand): learn information presented?

The Affective or Emotional Response: Mirrors a persons feelings about something Stimulates wants Touches the emotions Creates feelings

The components of the Affective Response Wants: o o o creating desire Influenced more by emotion or desire Desire is based on wishes, longings, and cravings Creating Desire

Emotions: effecting feelings o Agitates passions or feelings o Affecting feelings Liking: creating positive feelings for the ad and the brand o Liking a brand or ad is one of the best predictors of consumer behavior o If a consumer likes the ad, the positive feeling will transfer to the brand Resonance: Appeal to self-interest o Help the consumer identify with the brand on a personal level o Stronger than liking because it involves an element of self-identification e.g. associate the concern of the target group

Affective (feeling): stimulate want?

Association: The process of making symbolic connections between a brand and characteristics that represent the brands image and personality (connection between the brand and desired quality) The components of Association Symbolism: something that stands for something else, such as quality or value o The brand stands for a certain quality o A bond or relationship is created based on these meanings e.g. Rolex symbolizes quality, luxury and status Conditioned learning: creating links and bonds through repetition o The way association implants an idea in a consumers mind E.g. Beer always use sporting events, beach parties, good-looking young women Brand transformation: creating brand meaning o A brand takes on meaning when it is transformed from a product into something special o Differentiated from other products in the category by virtue of its image and identity

Brand Communication 1. 2. 3. 4. 5. 6. Brand Brand Brand Brand Brand Brand identity: perceive position: understand personality: feel image: connect promise: believe loyalty: act

Association: brand image, brand personality?

Persuasion: The conscious intent on the part of the source to influence the receiver of a message to believe or do something The components of persuasion Attitudes: a state of mind, tendency, prosperity, position, inclination o Mental readiness to react to a situation in a given way Argument: reasons, proof o Uses logic, reasons, and proofs to make a point and build conviction Involvement: engagement-intensifies brand relationships o The degree to which a consumer is engrossed in attending to an ad or making a product decision o High involvement o Low involvement Motivation: incentive or reason to respond o When something prompts a person to act in a certain way o Marketing communications uses incentives to encourage response Influence: external people or events that shape attitudes and behavior Conviction and preference: creating agreement and consideration (intend to try or buy) o Conviction- Consumers believe something to be true o Preference- An intention to try or buy a product o Source credibility e.g. Colgate uses the dentist Loyalty: repeat purchase-satisfaction-advocate o Measured both as an attitude and by repeat purchases o Built on customer satisfaction o (Both attitude and action)

Believe: believe in the message and do something?

Behavior: The action response. Effectiveness is measured in terms of its ability to motivate people to do something The Components of behavioral response Try: initiating action through trial o Initiating action through trial o Trial is important because it lets a customer use the product without investing in its purchase Buy: making it easy to buy Contact: responding by visiting, calling, sending back a card, clicking on a website etc o Making contact with the advertiser can be an important sign of effectiveness Prevention: discouraging unwanted behaviors o Involves counter-arguing by presenting negative messages about an unwanted behavior

Act: want to try the product, buy one?

Typical Communication Objectives Attitude toward the Ad/Brand (encompasses all three components of the HOE Model) Brand Image/Positioning Ad/Brand liking Brand learning Ad/Brand Cognitions Purchase Intention Awareness Ad Recall Ad Recognition Involvement