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Beginning of Part 2 The Planning: Analyzing the Advertising and Integrated

Brand Promotion Environment

We have finished the Process phase of the text and moving on to Planning

Our perspective changes from a broad view of advertising and IBP to a managerial view.

The Planning phase leads to the development of advertising and IBP materials

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© 2009 South-Western, a part of Cengage Learning

Chapter 5

Advertising, Integrated Brand Promotion and Consumer

Behavior

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Consumer Behavior

Perspectives:1. Consumers are Systematic Decision Makers

Maximizing the benefits from purchases defines the purchase—consumers are deliberate

2. Consumers are Active Interpreters Cultural/social membership defines purchases Consumers are “meaning makers” in their consumption

Consumer Behavior: a wide spectrum of things that affect, derive from, or form the context of human consumption.

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Consumer Decision-Making: The Consumer as a Systematic Decision Maker

The Consumer is: Logical Purposeful Acts in a “sequential” manner in making

decisions

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The Consumer Decision-making Process

1. Need recognition Functional or Emotional benefits

2. Information Search and Evaluation Internal and External search Consideration Set Evaluative Criteria

3. Purchase

4. Post-purchase use and evaluation Customer satisfaction Cognitive dissonance

Does this ad offer a functional or

emotional benefit?

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Cognitive Dissonance

1. The purchase price is high

2. There are many close alternatives

3. The item is intangible (example?)

4. The purchase in important

5. The item purchased lasts a long time

The feelings of doubt and concern after a purchase is made. Dissonance increases when

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Modes of Consumer Decision-Making: Vary by Involvement and Experience

1. Involvement Interests and hobbies Risk—high price or long term commitment High symbolic meaning to purchase Deep emotion attached to purchase

2. Experience More experience, more astute consumer

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4 Modes of Consumer Decision-Making: (Vary by involvement and experience)

1. Extended Problem Solving Deliberate, careful search

2. Limited Problem Solving Common products, limited search

3. Habit or Variety Seeking Variety seeking—switch brands at random Habit—buy single brand repeatedly

4. Brand Loyalty Conscious commitment to find same brand each

time purchase is made

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Key Psychological Processes in Advertising

1. Attitude Overall evaluation of an object person or issue

on continuum=like/dislike; positive/negative

2. Brand Attitude Summary evaluations that reflect preferences

for various products and services

3. Salient Beliefs Small number of key beliefs. Five to nine

salient beliefs typically form the critical determinants of attitude

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Key Psychological Processes

Multi-Attribute Models (MAAMs) Evaluative Criteria: attributes consumers use to

compare brands

Importance Weights: priority assigned to attributes

Consideration Set: group of brands that are focal point of decision effort

Beliefs: knowledge and feelings consumer has about various brands

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Key Psychological Processes

Information Processing and Perceptual Defense Cognitive Consistency Impetus: Strongly held beliefs to

make efficient decisions

Advertising Clutter: Large volume of ads causes overload

Selective Attention: Most ads are ignored because they do not fit consumer’s need state

Cognitive responses: Thoughts that occur to consumer at moments when beliefs are challenged by persuasive communication

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Key Psychological Processes

The Elaboration Likelihood Model (ELM) “Central route” persuasion when involvement is

high “Peripheral route” with peripheral cues rather

than strong arguments when involvement is low

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Perspective Two: The Consumer as Social Being

Perspective One: The consumer as a decision maker tells only part of the story.

Consumption can be a social and cultural process as well

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Consuming in the Real World

Social classSocial class

Geo-politicsGeo-politics

RitualsRituals

FamilyFamily ValuesValues

ReferenceGroups

(membership/aspiration)

ReferenceGroups

(membership/aspiration)

Race /Ethnicity

Race /Ethnicity

GenderGender

CultureCulture

CommunityCommunity

ObjectMeaningObject

Meaning

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Advertising, Social Rift and Revolution

Advertisers see and seize the opportunity to provide “costumes” and “consumables” “Revolutions” require a certain “look” “Looks” signal political/social orientation

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Advertising as Social Text: How Ads Transmit Socio-cultural Meaning

Advertising Advertising //

fashion systemfashion systemAdvertising Advertising //

fashion systemfashion system FashionFashionsystemsystem

FashionFashionsystemsystem

PossessionPossessionritualritual

PossessionPossessionritualritual

ExchangeExchangeritualritual

ExchangeExchangeritualritual

GroomingGroomingritualritual

GroomingGroomingritualritual

DivestmentDivestmentritualritual

DivestmentDivestmentritualritual

Culturally constituted worldCulturally constituted worldCulturally constituted worldCulturally constituted world

Consumer goodsConsumer goodsConsumer goodsConsumer goods

Individual consumerIndividual consumerIndividual consumerIndividual consumerPPT 5-16

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Factors Affecting Consumer Decision Making

SUBCULTURESSUBCULTURESSUBCULTURESSUBCULTURES

MEDIAMEDIAMEDIAMEDIA

NEWSNEWSMAGAZINESMAGAZINES

RADIORADIOTELEVISIONTELEVISION

DIRECT MEDIADIRECT MEDIABLOGSBLOGS

INTERNET INFOINTERNET INFO

NEWSNEWSMAGAZINESMAGAZINES

RADIORADIOTELEVISIONTELEVISION

DIRECT MEDIADIRECT MEDIABLOGSBLOGS

INTERNET INFOINTERNET INFO

NEEDSNEEDSNEEDSNEEDS

PRICEPRICEPACKAGINGPACKAGING

ADVERTISINGADVERTISINGPROMOTIONPROMOTION

PERSONAL SELLINGPERSONAL SELLING

PRICEPRICEPACKAGINGPACKAGING

ADVERTISINGADVERTISINGPROMOTIONPROMOTION

PERSONAL SELLINGPERSONAL SELLING

MARKETER-MARKETER-CONTROLLEDCONTROLLED

STIMULISTIMULI

MARKETER-MARKETER-CONTROLLEDCONTROLLED

STIMULISTIMULI

EDUCATIONEDUCATIONEDUCATIONEDUCATION

VALUESVALUES // ATTITUDESATTITUDESVALUESVALUES // ATTITUDESATTITUDES

PASTPASTEXPERIENCEEXPERIENCE

PASTPASTEXPERIENCEEXPERIENCE

PERSONALITYPERSONALITYPERSONALITYPERSONALITYPLEASUREPLEASUREPLEASUREPLEASURE

GENDERGENDERGENDERGENDER

CULTURECULTURECULTURECULTURE

LIFE-STYLELIFE-STYLELIFE-STYLELIFE-STYLE

SOCIALSOCIALCLASSCLASSSOCIALSOCIALCLASSCLASS

REFERENCEREFERENCEGROUPSGROUPS

REFERENCEREFERENCEGROUPSGROUPS

FAMILYFAMILYFAMILYFAMILY

SITUATIONALSITUATIONALFACTORSFACTORS

SITUATIONALSITUATIONALFACTORSFACTORS

CONSUMERCONSUMERDECISIONSDECISIONS

CONSUMERCONSUMERDECISIONSDECISIONS

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Check your Understanding

Which one of the following statements would most likely be made by someone experiencing cognitive dissonance?

A. "My new Toro lawn mower may cut better, but it's not as cool looking as the new John Deere mowers.“

B. "I'd really like to buy one of those new Toro lawn mowers, but they're kind of expensive.“

C."I sure need a new lawn mower, but I'm too lazy to find out what's out there.“

D."Mary says her new Toro lawn mower can really get into tight spaces, but Jim says his is hard to start sometimes."

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Check your Understanding

You've been asked to predict the brand of laundry detergent that a college co-ed has in her washroom. You can ask the woman one of the following questions. To maximize your chances of being right, you should ask:

A."What is the last advertisement for laundry detergent you remember seeing?“

B."How much money do you make?“C."Is laundry detergent a high-involvement purchase

for you?“D."What brand of laundry detergent do your parents

use?"

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