You are on page 1of 38

Objectives Setting

Major Decisions in Advertising

Advertising Objectives
Sales

Objectives
Communications Objectives

Sales Objectives
Specific,

measurable outcomes within a given


time period.
E.g. sales volume, market share, profits, or
ROI.
A good sales objective is quantifiable,
realistic and attainable. In addition, it also
delineates the target market and time frame.

Appropriate Situations for


Sales Objectives
Induce

an immediate behavioral response

Direct-response

advertising
Retail advertising for special events, e.g.
, .
Advertising

plays a dominant role in a firms


marketing program and other factors are
relatively stable, e.g. consumer packaged
goods.

Sales Objectives are Appropriate


for Direct Response Advertising

Problems with Sales


Objectives
Too

many factors influence sales.


Carryover effect: for mature, frequently
purchases, low-priced products, advertising
effect on sales lasts up to 9 months.
Offer little guidance to the managers.
Induce the managers to take a short-term
perspective.

Many Factors Influence Sales

Product Quality

Technology

The Economy

Promotion

SALES

Competition

Distribution

Price Policy

Communications Objectives
Designed

to achieve such communications


as brand knowledge and interests, favorable
attitudes and images, and purchase
intentions.

Not all Ads are Designed to


Achieve Sales

Pampers
Toyota
Ford

The Response Process

Traditional Response Hierarchy Models

AIDA model
Innovation adoption model
Hierarchy of effects model
Information processing model

Alternative Response Hierarchies

The dissonance/attribution model (Dissonance-reducing


buying behavior)
The low-involvement model (variety-seeking buying
behavior & habitual buying behavior)

AIDA Model (Strong, 1925)


Attention

Interest Desire Action


The stages a salesperson must take a
customer through in the personal-selling
process.

Hierarchy of Effects Model


(Lavidge and Steiner, 1961)
Awareness

Knowledge Liking
Preference Conviction Purchase
A paradigm for setting and measuring
advertising objectives
Premise: advertising effects occur over a
period of time.

Innovation Adoption Model


(Rogers, 1962)
Awareness

Interest Evaluation Trial

Adoption
The stages a consumer passes through in
adopting a new product or service

Information Processing Model


of Advertising Effects (William McGuire,
1978)
Presentation

Attention Comprehension
Yielding Retention Behavior
Assume that the receiver in a persuasive
communication situation like advertising is an
information processor or problem solver.
McGuires model includes a stage not found in
the other models: retention, or the receivers
ability to retain that portion of the
comprehended information that he or she
accepts as valid of relevant.

Models of Obtaining Feedback


Effectiveness Test

Persuasion Process

Circulation
Circulation reach
reach

Exposure/presentation
Exposure/presentation

Listener,
Listener, reader,
reader,
viewer
viewer recognition
recognition

Attention
Attention

Recall,
Recall, checklists
checklists

Comprehension
Comprehension

Brand
Brand attitudes,
attitudes,
purchase
purchase intent
intent

Message
Message acceptance/
acceptance/
yielding
yielding

Recall
Recall over
over time
time

Retention
Retention

Inventory
Inventory
POP
consumer
POP consumer panel
panel
Scanner
Scanner data
data

Purchase
Purchase behavior
behavior

Examples of
Exposure/Presentation

Models of the Response Process


Models
Stages

AIDA
model

Hierarchy of
effects model

Innovation
adoption

Information
Processing

Attention

Awareness

Awareness

Presentation
Attention
Comprehension

Interest

Yielding

Evaluation

Retention

Cognitive
Knowledge
Interest
Affective
Desire

Linking
Preference
Conviction

Trial
Behavioral

Action

Purchase

Behavior
Adoption

Three Basic Stages


Cognitive stage (think): what the receiver knows
or perceives about the particular product or
brand.
Affective stage (feel): the receivers feelings or
affect level for the particular product or brand.
Behavioral or Conative stage (do): the receivers
action toward the particular product or brand.

Implications of the Traditional


Hierarchy Models
Potential

buyers may be at different stages in


the hierarchy, so the advertiser will face
different sets of communication problems.

Cognitive, e.g. DHC, Pinky, 3M.

Affective, e.g. , SAVRIN,


, Pantene Thailand.
Behavioral, e.g. Heineken, KFC, www.one.org.

It

is useful for the measurement of


communication effect.

Alternative Response Hierarchies


(Michael Ray, 1973)

High Perceived
Product
Differentiation

Low Perceived
Product
Differentiation

High Involvement

Low Involvement

Standard Learning
Model

Low-Involvement
Model

(CAB)

(CBA)

Dissonance/Attribute
Model
(BAC)

Four Types of Buying Behavior


(Henry Assael, 1987)

Significant Differences
Between Brands

Few Differences
Between Brands

High Involvement

Low Involvement

Complex buying
behavior

Variety-seeking
buying behavior

(CAB)

(CBA)

Dissonancereducing buying
behavior

Habitual buying
behavior
(CBA)

(BAC)

Ads for Complex Buying


Behavior

Theory of Cognitive
Dissonance

When a person is confronted with inconsistence


among attitudes or behaviors, he or she will take
some action to resolve this dissonance, perhaps
by changing an attitude or modifying a behavior.
It helps to explain why evaluations of a product tend
to increase after it has been purchased.
One implication of this phenomenon is that
consumers actively seek support for their purchase
decisions.

Ads for Dissonance-Reducing


Buying Behavior

Ads for Low-Involvement


Behavior

Think
In

spite of CAB, BAC and CBA,


is there another type of response process?

Involvement Concept
Possibleresults
results
Possible
ofinvolvement
involvement
of

Antecedentsof
of
Antecedents
involvementderived
derived
involvement
fromthe
theliterature
literature
from
Personfactors
factors
Person
Needs
--Needs
Importance
--Importance
Interest
--Interest
Values
--Values
Objector
orstimulus
stimulusfactors
factors
Object
Differentiationof
of
--Differentiation
alternatives
alternatives
Sourceof
ofcommunication
communication
--Source
Contentof
of
Content
communication
communication
Situationalfactors
factors
Situational
-Purchase/use
-Purchase/use
-Occasion
-Occasion

Involvement
Involvement
Withadvertisements
advertisements
With
Withproducts
products
With
Withpurchase
purchasedecisions
decisions
With

Elicitationof
of
Elicitation
counterargumentsto
to
counterarguments
ads
ads
Effectivenessof
ofad
adto
to
Effectiveness
inducepurchase
purchase
induce
Relativeimportance
importanceof
of
Relative
theproduct
productclass
class
the
Perceiveddifferences
differences
Perceived
productattributes
attributes
ininproduct
Preferenceof
ofaa
Preference
particularkind
kind
particular
Influenceof
ofprice
priceon
on
Influence
brandchoice
choice
brand
Amountof
ofinformation
information
Amount
onsearch
search
on
Timespend
spend
Time
deliberatingalternatives
alternatives
deliberating
Typeof
ofdecision
decisionrule
rule
Type
usedininchoice
choice
used

Decision Rules
Compensatory

Simple Additive Rule


Weighted Additive Rule

Noncompensatory

The Lexicographic Rule


The Elimination-by-Aspects Rule
The Conjunctive Rule

Decision Rules
Compensatory
Simple

Additive Rule
Weighted Additive Rule

Fishbein-Ajzen Model

Akj i 1Wki Bkij


n

k: consumer, j: brand, i: attribute, n: number of attribute, W:


weight, B: belief, A: attitude.

The Idea-Point Model

Akj i 1Wki I kij Bkij


n

A Consumers Brand Beliefs


about Computers
Computer

Attribute
Memory
Capacity

Graphics
Capability

Size and
Weight

Price

10

10

Marketing Strategies

Alter beliefs about the brand: psychological


repositioning, e.g. , DHL, Extra, .

Alter beliefs about competitors brands: competitive


positioning, e.g. , .

Alter the important weights, e.g. , .


Call attention to neglected attributes, e.g. Extra
, .

Redesign the product: repositioning, e.g. Arm &


Hammer, 1, 2.

Case: Beaujolais ( )

South of Burgundy
Gamay Noir

Decision Rule
Noncompensatory

The Lexicographic Rule

The Elimination-by-Aspects Rule (Tversky, 1972)

The brand on the most important attribute is selected.


Brands are evaluated on the most important attribute, and
specific cutoffs are imposed.
Compromise effect, e.g. (HBR
June 2008, p.38).

The Conjunctive Rule

Cutoffs are established for each attribute.

A Consumers Brand Beliefs


about Computers
Computer

Attribute
Memory
Capacity

Graphics
Capability

Size and
Weight

Price

10

10

Think
What

factors may affect a consumers


decision rule?

Setting Objectives Using the


Communications Effects Pyramid

Product: Backstage Shampoo


Time period: Six months
Objective 1: 90% awareness
Objective 2: 70% interest
Objective 3: 40% positive feelings and 25%
preference
Objective 4: 20% trial
Objective 5: 5% main regular use

Inverted Pyramid of Communications


Effects
90% Awareness
i
gn
Co

70% Knowledge

e
ti v

40% Liking
Af
e
iv
ct
fe

25% Preference
20% Trial

e
tiv al)
na ior
Co av
eh
(B

5% Use