Integrated Marketing Communications Quiz 2

What is the Communication Process?

(1)a source, who has a (2)communication objective, that is transformed into a (3)a message, that is delivered via a (4)message channel, to a (5)target audience, that experiences a (6)communication outcome. That outcome represents (7)feedback to the message source, although the entire process is subject to interference, interruptions, or in general, (8)noise.

What are the 6 tools of influence?

(1)reciprocation, this tactic is most effective when the persuadee perceives the gift giver as honest and sincere. (2)commitment and consistency, consumers are most likely to remain consistent when they are highly involved in their choices. In other words, it is hard not to be consistent when a great amount of thought and psychological energy have gone into a choice. (3)social proof, we are most likely to accept the actions of others as correct "when we are unsure of ourselves, when the situation is unclear or ambiguous, when uncertainty reigns." (4)liking, we are most likely to adopt an attitude or undertake an action when a likable person promotes that action. There are various manifestations of likability. Two of the more prominent in marketing communications are physical attractiveness and similarity. (5)authority, Because marketers cannot invoke the same types of sanctions as real authority figures (e.g., parents withholding allowances), appeals to authority in the marketplace typically use surrogates of real authority figures. (6)scarcity. things become more desirable when they are in great demand but short supply. The theory of psychological reactance helps explain why scarcity works. This theory suggests that people react against any efforts to reduce their freedom of choice. Removed or threatened freedoms and choices are perceived as even more desirable than previously.

STP Process

1. Identify Bases 2. Develop profiles of Segments 3. Develop measures segment attractiveness 4. Select Targets 5. Develop Positioning 6. Develop Marketing Mix for each target segments

User Imagery

A brand positioned according to the image associated with how it is used depicts the brand in terms of specific, and presumably unique, usages that become associated with it. For example, advertisers sometimes position SUVs and passenger trucks in terms of their seemingly unique ability to go "off-road" and traverse rough terrain. Brands also can be positioned in terms of the kind of people who use them. This user imagery thus becomes the brand's hallmark; the brand and the people who are portrayed as using it become virtually synonymous. Positioning a brand via user imagery thus amounts to associating the brand with icon-like representations of the kind of people who are portrayed in advertisements as typical users of the brand. Ex: Ralph Lauren using an attractive model

What are Knowledge Structures?

A brand-based knowledge structure represents the associative links in the consumer's long-term memory between the brand and thoughts, feelings, and beliefs about that brand. In general, people are most able to process new information that relates to something they already know or understand. In general, the marketing communicator's task is to enable consumers either to access existing knowledge structures or to create new knowledge structures. Sometimes marketing communicators need to create knowledge structures for information they want consumers to have about their brands. This is accomplished by facilitating exemplar-based learning. An exemplar is an example or model of a particular concept or idea. By using concretizations, demonstrations, or analogies, the marketing communicator can facilitate learning by appealing to exemplars. A preference is a behavioral tendency that exhibits itself in how a person acts toward an object. shaping is one application by which marketers attempt to shape certain behaviors through a process of changing preceding conditions and behaviors. Vicarious learning (modeling), or modeling, is an attempt to change preferences and behavior "by having an individual observe the actions of others ... and the consequences of those behaviors."

How do they relate to objectives?

A marcom objective is a specific statement about what a marcom program is intended to accomplish at a point in time. That objective is based on knowledge of where on the hierarchy of effects members of the target audience are located; What is the difference between different objectives? Differences in level of consumer involvement and engagement Differences in level of contact between marketer and consumer Differences in level of complexity and efforts that are needed to obtain the objective

How is each level different?

Advancing Consumers from Unawareness to Awareness: creating awareness is essential for new or unestablished brands. Creating an Expectation: Advertising and other marcom elements should instill in consumers an expectation of what product benefit(s) they will obtain from buying and experiencing a brand based on how the brand has been positioned Encouraging Trial Purchases: Sales promotions and advertisements sometimes work together to encourage trial purchases (i.e., a first purchase), often by influencing consumers to switch from brands they currently are purchasing. Forming Beliefs and Attitudes: These beliefs in turn, form the basis for developing an overall attitude toward the brand. Reinforcing Beliefs and Attitudes: Brand-specific beliefs and attitudes are formed as the outcome from firsthand product usage experience. Then, subsequent marketing communications merely serve to reinforce the consumers' beliefs and attitudes that resulted from trying the product. The reinforcement objective is accomplished when a marketing communicator sticks with a particular promise and promotes this point repeatedly. Accomplishing Brand Loyalty: As long as the brand continues to satisfy expectations and a superior brand is not introduced, the consumer may become a brand-loyal purchaser. This is the ultimate objective. The various marcom elements may be in conflict toward the goal of accomplishing brand loyalty. Whereas advertising has the desirable long-run effect of making consumers less price sensitive and more brand loyal, sales promotions (e.g., online coupon offers) can actually reduce loyalty by effectively "training" consumers to be price sensitive and thus inclined to switch among brands to avail themselves of price discounts.

What is the role of celebrity endorsers?

Advertisers and their agencies are willing to pay huge salaries to celebrities who are liked and respected by target audiences and who will, it is hoped, favorably influence consumers' attitudes and behavior toward the endorsed brands. Factors to consider when selecting endorser (1)celebrity and audience matchup, (2)celebrity and brand matchup, (3)celebrity credibility, (4)celebrity attractiveness, (5)cost considerations, (6)a working ease or difficulty factor, (7)an endorsement saturation factor, and (8)a likelihood-of-getting-into-trouble factor. Types of endorsers: Celebrity, expert, CEO/employees, Layperson, Animated endorser,

What kinds of meanings are there?

Although people learn meaning from individual signs, such signs (words) are rarely used independently of one another. Normally, they are placed in a certain series or order according to prescribed rules of grammar—which is known as syntax. Denotative, Connotative, Structural, Contextual,

What kind of positioning options are there?

Benefit Positioning: Functional, Symbolic, Experiential. successful positioning requires a communication strategy that entices a single type of consumer need (functional, symbolic, or experiential) rather than attempting to be something for everyone. Attribute Positioning: Product Related, Non- Product Related- Usage & User Imagery

we can position a brand by focusing on product attributes or benefits.

Brand attributes include product-related and non-product-related features. Non-product-related attributes would include, for example, a brand's price, consumer perceptions of the type of people who own the brand (user imagery), and the occasions when the brand would be appropriately used (usage imagery). Brand benefits consist of ways by which a brand satisfies customers' needs and wants and can be classified as functional, symbolic, or experiential.

What steps does this process involve?

Communication Objective: the objectives of marcom efforts might include creating brand awareness, implanting positive associations in the consumer's memory as a basis for a positive brand image, and influencing behavior (action). Creating effective marketing communications requires that the communicator has a crystal clear idea of what should be accomplished. Message: The message itself is a symbolic expression of what the communicator intends to accomplish. Advertisements, sales presentations, package designs, social media postings, and point-of-purchase signs are examples of forms of marcom messages. Source: the source is a communicator in some marcom capacity—an advertiser, salesperson, blogger, etc.—who has thoughts (ideas, sales points, etc.) to share with an individual customer/prospect or an entire target audience. The source encodes a message to accomplish a communication objective. Encoding is the process of translating thought into symbolic form. The source (e.g., ad copy writer, graphic artist) selects specific signs from a nearly infinite variety of words, sentence structures, symbols, and nonverbal elements to design a message that will communicate effectively with the target audience. Message channel: The message channel is the path through which the message moves from source to receiver. Television, radio, newspapers, magazines, videos online, billboards, T-shirts, packages, point-of-purchase displays, signs painted on automobiles, and advertisements at movie theaters are just some of the more notable channels for delivering brand messages. Messages also are transmitted to customers directly via salespeople and indirectly via word-of-mouth communication from friends and family members. Receiver: The receiver is the person or group of people (target audience) with whom the source attempts to share ideas. In marketing communications, receivers are the prospective and present customers of an organization's product or service. Decoding involves activities undertaken by receivers to interpret—or derive meaning from—marketing messages. Communication outcome: The target audience experiences or realizes an outcome(s) in response to the message (or more likely, a stream of messages) received from a brand communicator. The outcome will hopefully match the communicator's general objective and result in increased levels of brand awareness, more positive attitudes, or greater purchasing of the brand. Feedback: Feedback allows the source a way of monitoring how accurately the intended message is being received and whether it is accomplishing its intended objective(s). feedback allows the source to determine whether the original message hit the target accurately or whether it needs to be altered. Using research-based feedback from their markets (e.g., ad copy tests), management can reexamine and often correct ineffective or misdirected marcom messages. Noise: A message moving through a channel is subject to the influence of extraneous and distracting stimuli. These stimuli can interfere with or interrupt reception of the message in its pure and original form. Such interference and distortion is called noise. Noise may occur at any stage in the communication process

CPM

Consumer Processing Model information processing and choice are seen as rational, cognitive, systematic, and reasoned. At the CPM end of the continuum is consumer behavior that is based on pure reason—cold, logical, and rational. CPM= functional needs Types of CPM learning: strengthening of linkages between the marketer's brand and some feature or benefit of that brand. The objective is, in other words, to position the brand's essence securely in the consumer's memory. (repeated claims, being creative, presenting claims in concrete fashion) establishing entirely new linkages: enhancing brand equity by building strong, favorable, and perhaps unique associations between the brand and its features and benefits. The use of Concretizing and Imagery: Concretizing and imagery are used extensively in marketing communications to facilitate both consumer learning and retrieval of brand information. Concretizing is the process of providing more concrete (versus abstract) information for consumers to process, as it is easier for them to remember and retrieve tangible rather than abstract information. concrete claims about a brand are more perceptible, palpable, real, evident, and vivid. Imagery is the representation of sensory experiences in short-term, or working, memory—including visual, auditory, and other sensory experiences. What can marketers do to elicit imagery? (1)use visual or pictorial stimuli (2)present concrete verbal stimuli, and (3)provide imagery instructions. According to dual-coding theory, pictures are represented in memory in verbal as well as visual form, whereas words are less likely to have visual representations. The value of pictures is especially important when verbal information is itself low in imagery.

Experiential

Consumers' experiential needs represent their desires for products that provide sensory pleasure, variety, and, in a few product circumstances, cognitive stimulation. Brands positioned toward experiential needs are promoted as being out of the ordinary and high in sensory value (looking elegant, feeling wonderful, tasting or smelling great, sounding divine, being exhilarating, and so on) or rich in the potential for cognitive stimulation (exciting, challenging, mentally entertaining, and so on). Example: Dove Chocolate ("A chocolate experience like no other").

What is converged media?

Converged media is the new reality Communicators must adapt to the changing consumer with consistent messages messages wherever, however, and whenever they consume content. refers to a company's paid media buys, owned digital properties (such as their website and social pages), and earned user-generated content working in conjunction to inform and involve the user

What is Positioning?

Creating a clear and unique meaning for a brand/product in the consumers mind. positioning is a short statement—even a word—that represents the message you wish to imprint in customers' minds. This statement tells how your brand differs from and is superior to competitive brands. It gives a reason why consumers should buy your brand. brand positioning represents the key feature, benefit, or image that a brand stands for in the target audience's mind. brand's meaning in consumers' minds stands in comparison to what they know and think about competitive brands in the product or service category (i.e., "positioning against" the competition). (1)It should reflect a brand's competitive advantage (vis-à-vis competitive offerings in the same product category) and (2)it should motivate consumers to action.

What types of segmentations are there?

Demographics: their age, income, or ethnicity marital status Geodemographics: where they live, The idea underlying geodemographic segmentation is that people who reside in similar areas, such as neighborhoods or postal ZIP code zones, also share demographic and lifestyle similarities and general marketplace behaviors. Behaviorgraphics: based on how people behave (with respect to a product category) (Online behavior targeting) Psychographics: their attitudes and lifestyles (hardly visible, hard for marketers to discern)

What are the advantages and disadvantages of earned media?

Earned Media is free, credible Everything is manual; nothing is predictive Data silos spread across different channels Inability to link data to organizational objectives An ever-changing array of tools Difficulty creating integration Complete lack of control Not suitable for all objectives

POP's (Points of Parity)

Establish category belongingness Ensure equality on key dimensions

Emotional

Fear- •The EPPM (extended parallel processing model) defines four key factors to predict the likely outcome of fear appeals: •Self Efficacy -The perception of the consumer that they can do what is needed to control the risk. •Response Efficacy -The perception of the consumer that if they do what is needed it will work. •Susceptibility -The perception of the consumer as to how likely the threat is to affect them .•Severity -The perception of the consumer as to the magnitude of the threat. attempt to motivate consumers to process information and to take action by appealing to their fears. Appeals to fears in marcom (e.g., with warnings) tend to identify the negative consequences of either: (1)not using the advertised brand or (2)engaging in unsafe behavior (such as drinking and driving, smoking, using drugs, eating unhealthy foods, driving without seat belts, text messaging while driving, and engaging in unprotected sex). the degree of threat intensity that is effective in evoking fear in an audience depends in large part on (1)how much relevance a topic has for an audience and (2)whether there is an objective solution (i.e., "a way out") for the fear created. Guilt: When ads are perceived as lacking credibility or attempting to manipulate the receiver, feelings of guilt are mitigated rather than increased. Sexual- Pros: -Attention grabbing-Arouses the senses through imagination Cons- -Sex doesn't always sell!-It can be offensive-It can be inappropriate for the product sexual material in advertising acts to attract and hold attention for a longer period, often by featuring attractive models in provocative poses. This is called the stopping-power role of sex sexual content or symbolism will enhance recall only if it is appropriate to the product category and the creative advertising execution. sexual content in advertising is to evoke emotional responses, such as feelings of arousal and even lust. the use of explicit sexual illustrations in advertisements may interfere with consumers' processing of message arguments and reduce message comprehension. Humor- Pros -Attention grabbing-Strengthens emotional positive connection Cons- -Doesn't always communicate UVP effectively-May be subjective and insult some audiences-Can reduce recall of actual message Incongruity Resolution: Incongruity exists when the meaning of an ad is not immediately clear. Baffled by the incongruity, the consumer is provoked to understand the ad's meaning and resolve the incongruity. When the meaning is eventually determined—as, for example, when the humor in an ad is detected—a feeling of surprise is experienced, and it is this sensation of surprise that generates a humorous response. Footnote In turn, this humorous response can elicit a favorable attitude toward the advertisement and perhaps toward the advertised brand itself. Advertising agency executives consider humor to be especially effective for purposes of attracting attention to an advertisement and creating brand awareness. humor is used more successfully with established rather than new products. Sympathy Belongingness

Non-conscious consumer behavior

Feel-Do-Think

What is the TACT model?

Four components of any overt behavior should be considered in order to obtain specific and accurate measures of attitudes. "TACT" consists of (1)the target of the behavior, (2)the specific action, (3)the context in which the behavior occurs, and (4)the time when it occurs.

What budgeting methods can markcomm use?

If too little is invested in marketing communications, sales volume will not achieve its potential and profits may be lost. If too much is spent, unnecessary expenses can reduce profits. rule for establishing advertising budgets: Continue to invest in advertising as long as the marginal revenue from that investment exceeds the marginal cost. The sales-to-advertising response function refers to the relationship between money invested in advertising and the response (output), of that investment in terms of sales revenue generated. The practical budgeting methods most frequently used by both B2B companies and consumer goods firms in the United States, Europe, and even in China are the percentage-of-sales, objective-and-task, competitive parity, and affordability methods.

Affordability Method

In the affordability method, a firm spends on advertising only those funds that remain after budgeting for everything else. In effect, when this "method" is used, advertising, along with other marcom elements, is relegated to a position of comparative insignificance (vis-à-vis other investment options) and is implicitly considered relatively unimportant to a brand's present success and future growth.

HEM

In the hedonic, experiential perspective (HEM), in contrast, emotions in pursuit of fun, fantasies, and feelings (i.e., "3Fs") drive consumer processing of marcom messages and behavior. At the HEM end is consumer behavior based on pure passion—hot, spontaneous, and perhaps even irrational. HEM= symbolic & experiential needs

What is the role of music?

Jingles, background music, popular tunes, and classical arrangements are used to attract attention, convey selling points, set an emotional tone for an advertisement, and influence listeners' moods. Well-known entertainers, nonvocal musical accompaniment, and unknown vocalists are used extensively in promoting everything from fabric softeners to automobiles. Other functions include attracting attention to commercial messages, putting consumers in a positive mood while hearing or viewing these messages, making them more receptive to message arguments, and even communicating meanings about advertised brands.

What makes for a good target?

Measurable: we can know its size. the degree to which useful information exists on the segment. For example, a company may not have measures of a very small segment's size, purchasing power, or other important characteristics. (This should not deter creative attempts to measure this however.) Substantial: the degree to which the segment is large enough and/or profitable to be worth attention. Accessible: We can reach it through media that is accessible to us Substantial: Big enough to be profitable Differentiable: clear enough who is in to affect responses to IMC. the degree to which the segment is distinguishable and will respond differently to changes in marketing mix elements and programs. Actionable: the company can devise a plan to effectively reach the target with the tools and knowledge at its disposal.

Metaphor

Metaphor differs from simile in that the comparative term (as, like) is omitted (love is a rose; she has a heart of gold; he is a prince, etc.). Metaphor applies a word or a phrase to a concept or object that it does not literally denote in order to suggest a comparison and to make the abstract more concrete.

Types of psychographic profiling methods

Mindbase Segments Expressive, Connected, Driven, At Capacity, Rock Steady, Down to Earth, Sophisticated, Measure Twice, Devoted (VALS segments) The segments are built around core consumer dimensions of success, control, family and connectedness, openness, and financial management

Where are budgets going?

Paid Media: The media channel you have to pay for. Classic advertising as well as digital channels like Google, search and display, etc. Owned Media: The media channel created by your business-the content that you entirely own. For example, company website, email, newsletters, etc. Earned Media: Customer input as brand advocates and influencers who push your brand to other customers for you.

Peripheral Cues VS Central Cues

Peripheral cues involve elements of a message that are unrelated (and hence peripheral) to the primary selling points in the message. include such elements as background music, attractive sources, scenery, and graphics. For example, one may not be interested in a language program per se, but the attractive sources in the Rosetta Stone ad may draw one's attention to the ad. Central Cues focus on the message argument

Why is persuasion challenging?

Persuasion is the essence of marketing communications, attempting to guide people toward the acceptance of—or change to—some belief, attitude, or behavior by using reasoning and emotional appeals. sometimes persuasion by some marketing communicators is unethical. However, it is the practice of persuasion that can be noble or deplorable. There are many different ways to use persuasion. 5 factors Marketing communicators control: message arguments, peripheral cues, and communication modality Persuadee Characteristics: receiver involvement and initial position Message arguments: The strength or quality of message arguments is often the major determinant of whether and to what extent persuasion occurs. Consumers are much more likely to be persuaded by convincing and believable messages than by weak arguments, especially under a message of high involvement. Peripheral Cues: peripheral cues may play a more important role than message arguments in determining the outcome of a persuasive effort. Communication Modality: whether television, radio, social media, or magazines, etc. Experiments have shown that a likable communicator is more persuasive when presenting a message via broadcast media, whereas an unlikable source is more persuasive when the communication is written. people pay closer attention to the quality of message arguments when processing written rather than broadcast messages. Receiver Involvement: Highly-involved consumers (i.e., those for whom an advertisement is most relevant) are motivated to process message arguments when exposed to marketing communications, whereas uninvolved consumers are likely to exert minimal attention to message arguments and perhaps to process only peripheral cues. Initial Position: persuasion results not from external communication per se, but from the self-generated thoughts (e.g., cognitive responses) that people produce in response to persuasive efforts. There are two primary forms of cognitive responses: support arguments and counterarguments. Support arguments occur when a receiver agrees with a message argument. Counterarguments arise when the receiver challenges a message claim. This "counterarguer," in other words, does not agree with the message arguments even though he or she fully comprehends the advertiser's claims.

Bottom-up Budgeting

Promotion objectives are set Activities needed to achieve objectives are planned Costs of promotion activities are budgeted Total promotion budget is approved by top management

Rational Appeals

Pros: -Provides information and educates-Demonstrates product performance-Proves quality and usefulness-Appeals to consumers' logic-Helps consumers form arguments-Can improve recall Cons--Demands high level of attention-May overwhelm with information-Not very engaging-Comparative ads might advertise the competition

How and why do we set objectives?

Provide clarity on the goal to guide actions to achieve it. Provide focus and justification for managerial choices, while disregarding peripheral criteria that may lead to wrong choices. Serve as a communication aid amongst different roles in the firm, between the firm and outsources, and across the IMC platforms. Provide standards against which results can be measured. three major reasons why it is important that objectives be established prior to making the all-important implementation decisions regarding message selection, media determination, and how the various marcom elements should be mixed and maintained: 1.Achieving management consensus: The process of setting objectives literally forces top marketing executives and marcom personnel to agree on a brand's marcom strategy for a given planning period, as well as the tasks it is to accomplish for a specific brand. 2.Guiding subsequent marcom decisions: Objective setting guides the budgeting, message, and media aspects of a brand's marcom strategy. Objectives determine how much money should be spent and suggest guidelines for the kinds of message strategy and media choice needed to accomplish a brand's marketing communications objectives. 3.Providing standards: Objectives provide standards against which results can be measured.

What kinds of appeals are there?

Rational, Emotional

What kinds of Figurative Languages are there?

Simile, Metaphor, Allegory (Personification)

Product Related

Sleeker product design, superior materials, and more color options are just a few of the virtually endless attributes that can provide the foundation for positioning a brand. If your brand has a product advantage, flaunt it, especially if the advantage is something that consumers truly desire in the product category and will motivate them to action. Example: Toyota appealing to product safety

What determines spokesperson effectiveness?

Source Attributes (1)credibility :refers to the tendency to believe or trust someone. When an information source, such as an endorser, is perceived as credible, audience attitudes are changed through a psychological process called internalization. Internalization occurs when the receiver accepts the source's position on an issue as his or her own. Two important dimensions of source credibility are expertise and trustworthiness. Expertise refers to the perceived knowledge, experience, or skills possessed by a source as they relate to the communications topic. Expertise is a perceived rather than an absolute phenomenon. Whether a source is indeed an expert is unimportant; all that matters is how the target audience perceives the source. Trustworthiness refers to the perceived honesty, integrity, and believability of a source. Although expertise and trustworthiness are not mutually exclusive, often a particular source may be perceived as highly trustworthy, but not especially expert. The degree of honesty or trustworthiness of a source depends primarily on the audience's perception of the source's intent. If consumers believe that a source (e.g., an endorser) is motivated purely by self-interest, that source will be less persuasive than someone regarded as having nothing to gain by endorsing the brand. (2)attractiveness: Source attractiveness consists of three related dimensions: similarity, familiarity, and liking. That is, a source (e.g., an endorser) is considered attractive to receivers if they share a sense of similarity or familiarity with the source or if they like the source regardless of whether the two are similar in any respect. (3)power: Power works through the psychological process of compliance. Compliance occurs when an individual is persuaded by an advertised source because they hope to achieve a favorable reaction or approval from this source.

CPM process

Stage 1: Being exposed to information (exposure simply means that consumers come in contact with the marketer's message (i.e., they have the opportunity to see a magazine ad, hear a radio commercial, notice a YouTube commercial, text message, and so on). a higher level of exposure to a brand's message is a function of two key managerial decisions: (1)providing a sufficient marcom budget and (2)selecting appropriate media and vehicles with which to present a brand message. Stage 2: Paying attention. Attention, in its formal use, means to focus cognitive resources on and think about a message to which one has been exposed. (conscious attention, involuntary attention) consumers pay attention to just a small fraction of marcom messages. This is because the demands placed on our attention are great (we are virtually bombarded with advertisements and other commercial messages), but information-processing capacity is limited, leading to constraints on one's opportunity to process messages. Effective utilization of limited processing capacity requires that consumers selectively allocate mental energy (processing capacity) only to messages that are relevant and of interest to current goals. 3 types of attention: Voluntary, involuntary (reaction to loud noise), and non-voluntary (potential interest) under low arousal or attention, extreme incongruity is preferred (e.g., loud music, wild balloon colors in a store launching iWatches). Yet, under high arousal or attention, there isn't a preference for any incongruity. Stage 3: Comprehending attended information. To comprehend is to understand and create meaning out of stimuli and symbols. Communication is effective when the meaning, or positioning, a marketing communicator intends to convey matches what consumers actually extract from a message. The perceptual process of interpreting stimuli is called perceptual encoding. Two main stages are involved. Feature analysis is the initial stage whereby a receiver examines the basic features of a stimulus (such as size, shape, color, and angles) and from this makes a preliminary classification. The second stage of perceptual encoding, active synthesis, goes beyond merely examining physical features. The context, or situation in which information is received, plays a major role in determining what is perceived and interpreted, or in other words, what meaning is acquired. An individual's mood also can influence one's perception of stimulus objects. Research has found that when people are in a good mood they are more likely to retrieve positive rather than negative material from their memories; are more likely to perceive the positive side of things; and, in turn, are more likely to respond positively to a variety of stimuli. People sometimes misinterpret or miscomprehend messages so as to make them more consistent with their existing beliefs or expectations. Miscomprehension of marcom messages occurs primarily for three reasons: (1)messages are themselves sometimes misleading or unclear, (2)consumers are biased by their own preconceptions and thus "see" what they choose to see, and (3)processing of advertisements often takes place under time pressures and noisy circumstances. Stage 4: Agreeing with comprehended information. agreement can depend on whether the message is credible (i.e., believable, trustworthy) and whether it contains information and appeals that are compatible with the values that are important to the consumer. Comprehension alone does not ensure that the message will change consumers' attitudes or influence their behavior. one's motivation, ability, and opportunity to process the message are critical factors in understanding agreement Stage 5: Retaining accepted information in memory Stage 6: Retrieving information from memory three competing models show how memory operates: (1)multiple store, (long term memory, short term, & set of sensory stores. Information is received by one or more sensory receptors (sight, smell, touch, and so on) and passed to an appropriate SS, where it is rapidly lost (within fractions of a second) unless attention is allocated to the stimulus. Attended information is then transferred to STM, which serves as the center for current processing activity by integrating information from the sense organs and from LTM. (2)levels of processing levels of processing approach to memory, individuals have limited processing capacity that can be allocated to processing marcom messages. Limited processing capacity is the most outstanding characteristic of STM; individuals can process only a finite amount of information at any one time. An excessive amount of information will result in reduced recognition and recall. Information is transferred from STM to LTM, which cognitive psychologists consider to be a virtual storehouse of unlimited information. Information in LTM is organized into coherent and associated cognitive units, knowledge structures. (3)spreading activation. Spreading activation theory proposes that links between concepts (e.g., nutrients, diet-disease relationships) in memory are a function of the strength or importance of each link between such concepts. When a concept is primed (e.g., by a "no cholesterol" claim), activation is spread to an expanding set of links in the network (e.g., inferences that the advertised brand is "low in saturated fat" or "will not lead to heart disease"). However, this activation process is weakened the further it travels outward in the network. The spreading activation approach is based on only one memory store, rather than multiple stores. Stage 7: Deciding from alternatives: Stored in consumers' memories are numerous information packets for different consumption alternatives. This information is in the form of bits and pieces of knowledge, specific beliefs, and attitudes. When contemplating a purchase from a particular product category, how does a consumer decide which brand to choose? The simple answer is that she or he simply selects the "best" brand. However, it is not always clear what the best brand is. consumers often resort to simplifying strategies, or heuristics, to arrive at decisions that are at least satisfactory if not perfect. The simplest of all decision heuristics is what is called affect referral. With this strategy, the individual simply calls from memory his or her attitude, or affect, toward relevant alternatives and picks that alternative for which the affect is most positive. this type of choice strategy would be expected for frequently purchased items where risk is minimal. In a compensatory heuristic situation, for a given alternative, the strength of one attribute offsets (or compensates for) the weakness of another attribute. Thus trade-offs among attitudes are being made. consumers use a variety of so-called noncompensatory heuristics. With a noncompensatory heuristic, one attribute does not compensate for another one. conjunctive model, the consumer establishes minimum cutoffs. disjunctive model, for an alternative to be considered, it only has to meet or exceed the minimum cutoffs on just one of the attributes. lexicographic model, attributes (e.g., academic quality, cost, social life) are first ranked. Then the alternative (college) that is the best on the highest ranked attribute (e.g., academic quality) is selected. Stage 8: Acting on the basis of the decision. People do not always behave in a manner consistent with their preferences. A major reason is the presence of events, or situational factors, that disrupt, inhibit, or otherwise prevent a person from following through on his or her intentions. A final note is that once someone has acted and made a choice, the process isn't necessarily over. Experiences with one's action or purchase can lead to satisfaction, yet sometimes to cognitive dissonance—a post-purchase anxiety that maybe one has made the wrong choice. repeated consumption of a certain product, brand, or experience can lead eventually to reduced enjoyment ("satiation") and dissonance for consumers.

POD (Points of Difference)

Stand out Establish differentiation Have a UVP Based on a clearly identified set of attributes/benefits

Competitive Parity

The competitive parity method sets the budget by examining what competitors are doing. Armed with information on competitors' spending, a company may decide not merely to match but also to exceed the expenditures that competitors are committing to advertising. brands with larger shares of market typically have larger shares of voice. This does not mean, however, that SOV(share of voice) causes SOM(share of market). In fact, the relationship between SOV and SOM is bidirectional: A brand's SOV is partially responsible for its SOM. At the same time, brands with larger SOMs can afford to achieve higher SOVs, whereas smaller-share brands are limited to relatively small SOVs.

Key trends in demographics?

The median age of Americans was 28 in 1970, 30 in 1980, 33 in 1990, 36 in 2000, 37.6 in 2014, and is projected to reach 38 by 2025. baby boom—has affected future generations and the general trend toward an ever-aging population. There now are proportionately fewer younger, middle-aged adults (ages 35 to 49) than there were in prior generations. The number of "olders" (ages 55 to 64) has increased dramatically, totaling nearly 40 million Americans as of 2014. This maturing of the baby boomers is one of the most significant demographic developments marketers face. Households are growing in number, shrinking in size, and changing in character. The traditional American family—that is, married couples with children younger than 18—represents 28 percent of all U.S. households, whereas in 1960 such families constituted nearly 50 percent. The number of new households has grown twice as fast as the population, whereas household size has declined. Singles and unrelated couples or friends living together represent a large and an ever-growing group

Objective-and-task

The objective-and-task method is generally regarded as the most sensible and defendable advertising budgeting method. In using this method, advertising planners specify clear objectives for the advertising, identify the tasks the advertising must perform to reach these objectives, and then set the budget accordingly. The objective-and-task method is the advertising budget procedure used most frequently by both B2C and B2B companies The first step is to establish specific marketing objectives that need to be accomplished, such as sales volume, market share, and profit contribution. The second step in implementing the objective-and-task method is to assess the communication functions that must be performed to accomplish the overall marketing objectives. The third step is to determine advertising's role in the total communication mix in performing the functions established in step 2. The fourth step is to establish specific advertising goals in terms of the levels of measurable communication response required to achieve marketing objectives. The final step is to establish the budget based on estimates of expenditures required to accomplish the advertising goals.

Q- Score

The selection process of high-priced celebrities is facilitated with Performer Q Scores that are commercially available from a New York-based firm called Market Evaluations (also known as "The Q-Score Company,") Participants are asked two straightforward questions for each public figure: (1)Have you heard of this person? (a measure of familiarity) and (2)if so, do you rate him or her poor, fair, good, very good, or one of your favorites? (a measure of popularity). The calculation of each performer's Q score, or quotient, is accomplished by determining the percentage of panel members who respond that a particular performer is "one of my favorites" and then dividing that number by the percentage who indicate that they have heard of that person. In other words, the popularity percentage is divided by the familiarity percentage, and the quotient is that person's Q Score. This rating simply reveals the proportion of a group that is familiar with a person and who regard that person as one of their favorites.

What is the role of subliminal messaging?

The word subliminal refers to the presentation of stimuli at a speed or visual level that is below the conscious threshold of awareness. There are three distinct forms of subliminal stimulation. A first form presents visual stimuli at a very rapid rate by means of a device called a tachistoscope (say, at 1/3,000 second as in Vicary's research). A second form uses accelerated speech in auditory messages. The third form involves embedding hidden symbols (such as sexual images or words) in print advertisements. Because the majority of consumers devote little time and effort in processing advertisements, a weak stimulus means that most consumers would not be influenced much. Even if consumers do attend to and encode embeds under natural advertising conditions, there remains serious doubt that this information would have sufficient impact to affect brand choice behavior. one cannot be subliminally induced to act in a certain way unless he or she has a need to act in that way.

What are the different phenomenon that define the return on IMC budgets?

Threshold Effects: Early effects of IMC can be small. Over time, repeated exposure can change those. Threshold effects refer to the point at which the IMC effort begins to affect consumer behavior. Threshold effects can be reached sooner using couponing, free samples, etc., determining budget allocation. Diminishing Returns: At some point IMC campaigns saturate the market. At that point, further expenditures have a minimal impact. This means there is a downward, concave function between expenditures and results. This should set a limit on budgets. Carryover Effects: Many products are only purchased when needed (e.g., washing machine) or at fixed times (e.g., seasonal items). IMC is focused on creating recall at the time of purchase. This recall can create a carryover effect outside the time of the campaign. This should justify larger budgets. Wear Out Effects: IMC content can become old and boring at some point. Consumers ignore and tune out such efforts. Some even become annoyed and develop negative attitudes. Budgeting beyond this point has a negative return. Decay Effects: When a campaign stops, consumers begin to forget the message. Decay and Carryover effects can compete and affect each other. Decay suggests budgeting for reminders is important. Random Effects

How does Meaning Transfer?

Through the process of socialization, people learn cultural values, form beliefs, and become familiar with the physical cues representing these values and beliefs. The artifacts of culture are charged with meaning, which is transferred from generation to generation. Advertising is an especially important instrument of meaning transfer and positioning. When exposed to an advertisement (or any other form of marcom message), the consumer is not merely drawing information from the ad but is actively involved in assigning meaning to the advertised brand.

Top- Down Budgeting

Top management sets the spending limit Promotion budget set to stay within spending limit

What is Communication?

Transmitting, receiving, and processing information. When a person, group, or organization attempts to transfer an idea or message, communication occurs when the receiver (another person or group) comprehends the information.

Examples of Pyschographics

VALS segment Innovators: successful, take charge with high self esteem Thinkers: mature, satisfied, comfortable and reflective. value order and responsibility, motivated by ideals Believers: concrete beliefs based on traditional, established codes: family religion community Achievers: motivated by desire for achievement have goal oriented lifestyles deep commitment to career and family Strivers: trendy and fun loving. They are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. Experiencers: motivated by self-expression. As young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. Makers: like Experiencers, are motivated by self-expression—building a house, raising children, fixing a car, or canning vegetables. Makers are practical people who have constructive skills and value self-sufficiency. They live within a traditional context of family, practical work, and physical recreation and have little interest in what lies outside that context. Survivors: live narrowly-focused lives. With few resources with which to cope, they often believe that the world is changing too quickly. They are comfortable with the familiar and are primarily concerned with safety and security.

What decisions does this process involve?

What to say who would say how to say who is listening

Central Route

When Elaboration likelihood is high, the receiver will focus predominantly on message arguments rather than peripheral cues. When the central route is activated, the receiver will listen to, watch, or read about a brand's attributes and benefits, but will not necessarily accept them at face value. Rather, because the consumer is motivated to acquire information about the product category, she or he will react to the arguments with subvocal cognitive and emotional responses

What role do motivation, ability, and opportunity play?

Whether and to what extent a person engages in elaboration depends on that person's motivation, ability, and opportunity to process a marketing message's selling claims. Motivation is high when a message relates to a person's present goals and needs and is thus relevant to that individual. Generally speaking, consumers are more motivated to process messages the more involved they are in the subject matter of a message. Attend to the message by... Appealing to hedonic needs (appetite appeals, sex appeals if appropriate) Using novel stimuli (unusual pictures, different ad formats, large number of scenes) Using intense or prominent cues (action, loud music, colorful ads, celebrities, large pictures) Using motion (complex pictures, edits and cuts) Process Brand Info by... Increasing relevance of brand to self (asking rhetorical questions, using fear appeals, using dramatic presentations) Increasing curiosity about the brand (opening with suspense or surprise, using humor, presenting little information in the message) To accomplish enhanced motivation, marketing communicators can do two things: (1)enhance the relevance of the brand to the consumer and (2)enhance curiosity about the brand. Ability concerns whether a person is familiar with message claims and has the necessary skills (e.g., literacy, knowledge) to help comprehend them. Consumers on occasion are motivated, yet are unable to process certain message claims. Access Knowledge structures by... Providing a context (employing verbal framing) Create knowledge structures by ... Facilitating exemplar-based learning (using concretizations, demonstrations, and analogies) Opportunity involves the matter of whether it is physically possible for a person to process a message; opportunity is restricted when, among other reasons, a message is presented too quickly, the sound is too low, or an individual is distracted. Encode Info by...Repeating brand information Repeating key scenes Repeating the ad on multiple occasions Reduce Processing time by... Creating Gestalt processing (using pictures and imagery) Opportunity to process is further enhanced if the communicator takes extra measures to reduce the time required of the consumer to read, listen to, and ultimately discern the meaning of a marcom message. Together, these 3 factors determine each individual's elaboration likelihood for a particular message. The elaboration likelihood is low when the MAO factors are low or even when only one of the MAO elements is deficient. This would be the case when a consumer has the ability and opportunity to process an ad, but he or she is not interested in the advertised product Low Attention- focus on peripheral cues- # of arguments, celeb speaker High Attention- Focus on Central Cues- strength of argument, knowledge of speaker There is no single way to influence people to form favorable attitudes toward brands or to act in ways marketing communicators desire. the appropriate influence strategy depends both on consumer characteristics (their motivation, opportunity, and ability to process marcom messages) and on brand strengths.

POD winning zones& losing zones

Winning: What the customer wants and what your brand does well Losing: What the customer wants and what your competitor does well

Percentage-of-sales

a company sets a brand's advertising budget by simply establishing the budget as a fixed percentage of past (e.g., last year's) or anticipated (e.g., next year's) sales volume. The percentage-of-sales method is frequently criticized as being illogical. Critics argue that the method reverses the logical relationship between sales and advertising. That is, the true ordering between advertising and sales is that advertising causes sales, meaning that the level of sales is a function of advertising. So, implementing the percentage-of-sales method amounts to reversing the causal order by setting advertising as a function of sales.

What is an attitude?

a general and somewhat enduring positive or negative feeling toward, or evaluative judgment of, some person, object, or issue. Alternatively, they can be thought of as evaluative judgments that integrate and summarize cognitive and affective reactions. Attitudes (1)are learned, (2)are relatively enduring, and (3)influence behavior. difference between attitude formation and attitude change, in which the attitude already has been formed. Attitude Change Strategies (1)changing beliefs, (2)altering outcome evaluations, or (3)introducing a new outcome into the evaluation process. The cognitive component refers to a person's beliefs (i.e., knowledge and thoughts) about an object or issue. The conative component represents one's behavioral tendency, or predisposition to act, toward an object. In consumer-behavior terms, the conative component represents a consumer's intention to purchase a specific item. High Involvement hierarchy: An individual becomes aware of an object, such as a new brand, then acquires information and forms beliefs about the brand's ability to satisfy consumption needs (cognitive component). Beliefs are integrated, and feelings toward and evaluations of the product are developed (affective component). On the basis of these feelings and evaluations, an intention is formed to purchase or not to purchase the new product (conative component). Low Involvement Hierarchy: minimal cognition to conation (and actual behavior) and then to affect. 2 Determinants in predicting behavior: (1)measurement specificity (TACT model) (2)having direct (versus indirect) experience with the object of the attitude measurement. attitudes based on direct experience (e.g., with the game prior to playing) predicted (playing) behavior better than attitudes based on indirect experience (with just verbal descriptions of puzzles)

What is the decision gravity spectrum?

a tool that focuses on the form of consumer behavior that should be of the greatest interest to marketers-the importance that consumers place on a product or product category. Decision Gravity Shallow: trying a new brand Medium: big ticket items like electronics, cars, etc. focus on quality, design, complexity, and status High: Health care, elderly care, education Segmentation Bases Shallow: Prior buying usage, prior willingness to pay/income prior brand loyalty Medium: Income, family status, geodemographics, ownership of other status products, tech knowledge based on prior purchases, prior willingness-to pay High: Consumer core values (psychographics)

Symbolic

attempts to associate brand ownership with a desired group, role, or self-image. Appeals to symbolic needs include those directed at consumers' desire for self-enhancement, group membership, affiliation, altruism, and other abstract need states that involve aspects of consumption not solved by practical product benefits. Marketers in categories such as personal beauty products, jewelry, alcoholic beverages, athletic apparel, and motor vehicles frequently appeal to symbolic needs.

Functional

attempts to provide solutions to consumers' current consumption-related problems or potential problems by communicating that the brand possesses specific benefits capable of solving those problems. Appeals to functional needs are the most prevalent form of brand-benefit positioning Example: Crocs Brand appeals to consumers' desire for lightweight, comfortable, and odor-resistant footwear.

Who is involved in Communication?

for communications to occur, there must be a commonness of thought between sender and receiver—not just messages sent from sender to receiver. This implies a sharing relationship between sender and receiver, say, a social media site and a consumer. Both sender and receiver must be active participants in the same communication relationship for thought to be shared. Communication is something one does with another person, not to another person.

How do you assess if a campaign worked?

integrated information response model provides this needed comprehensiveness. The model takes its name from the idea that consumers integrate information from two sources—advertising and direct product usage experience—in forming attitudes and purchase intentions toward products and brands. two information sources are available to the consumer: advertising and one's own direct experience in using the product or brand. Information acceptance (due to factors such as source credibility) ranges between low and high levels. Extending from information acceptance are cognitions, as either lower- or higher-order beliefs. Lower-order beliefs represent the consumer's mere awareness or recognition of the brand and/or claims that it possesses some feature or benefit.

What is the hierarchy of effects?

marcom elements must advance consumers through a series of psychological stages in order to be successful. The hierarchy framework reveals that the choice of marcom objective depends on the target audience's degree of experience with the brand prior to commencing a marcom campaign. the idea that the marcom elements, if successful, move people from an initial state of unawareness about a brand to eventually purchasing that brand.

How is "meaning" used in this process?

meaning is determined both by the message source's choice of communication elements and, just as importantly, by the receiver's unique social-cultural background and mind-set. Thus, meaning is not thrust upon consumers; rather, consumers are actively involved in constructing meaning from messages. Semiotics, broadly speaking, is the study of signs and the analysis of meaning-producing events. The important point of emphasis is that the semiotics perspective sees meaning as a constructive process. Marketing communications in all its various forms uses signs in the creation of messages. meaning is contained within the person and not the sign per se; in other words, meaning is both idiosyncratic and context dependent—meaning is constructed! people have meanings for signs. Meanings are internal responses people hold for external stimuli. Meaning can be thought of as the thoughts and feelings that are evoked within a person when presented with a sign in a particular context. meaning is internal to an individual, subjective, and highly context dependent. Again, meaning is not imposed upon us, but rather is constructed by the interpreter of signs A field of experience, also called the perceptual field, is the sum total of a person's experiences that are stored in memory.

Contextual Meaning

provides a description of signs to aid in their interpretation.

Structural Meaning

provides understanding from simple sign-to-sign relationships

Denotative Meaning

refers to exact or direct meaning, as expressed in sign-object relationships.Words high in denotative meaning are words that are most strongly object-tied.

Connotative Meaning

refers to implied or interpretative meaning in sign-object relationships.

Allegory

represents a form of extended metaphor. Allegorical presentation equates the objects in a particular text (such as the advertised brand in a television commercial) with meanings outside the text itself. In other words, "allegory conveys meaning in a story-underneath-a-story, where something other than what is literally represented is also occurring." Through personification, the abstract qualities in a brand (its attributes or benefits) assume positive human characteristics. Allegory often is used in promoting products that are difficult to advertise without upsetting, offending, or boring some audience members.

Why do we segment?

the process of market segmentation is the act of dividing a market into distinct groups of customers who might require separate products and/or marketing mixes. The segmentation process certainly can help with efficiently directing and accounting for marcom resources. a. Identify bases (e.g., behavior, demographics) to segment the market b. Develop profiles of resulting segments

Should marcomm objectives be stated in terms of sales?

two types of marcom objectives: sales versus pre-sales objectives. Pre-sales objectives are commonly referred to as communication objectives, with the term communication focused on effects that will increase the target audience's brand awareness, enhance their attitudes toward the brand, shift their preference from competitors' brands to our brand, and so on. Comparatively, using sales as the goal for a particular advertising campaign means that the marcom objective literally is to increase sales by a specified amount. Marcom practitioners and educators have traditionally rejected the use of sales as an appropriate objective. However, a relatively recent perspective asserts that influencing sales should always be considered as the ultimate objective of any marcom effort. Traditional View: This view asserts that using sales as the objective for a branded product's marcom effort is unsuitable for two major reasons. First, a brand's sales volume during any given period is the consequence of a host of factors in addition to advertising, sales promotions, and other elements of the marcom program. A second reason that sales response is claimed to represent an unsuitable marcom objective is that marcom's effect on sales is typically delayed, or lagged. advertising during any given period does not necessarily influence sales in the current period but may influence sales during later periods. The Heretical (Opposite) View: marketing communicators should always state objectives in terms of sales or market share gains and that failure to do so is shortsighted. The logic of this nontraditional, or heretical, view is that marcom's basic purpose is not just only to create brand awareness, convey copy points, influence expectations, or enhance attitudes but also ultimately to affect behavior (e.g., generate sales). One thing is certain, however, companies, their chief executives, and financial officers are increasingly demanding greater accountability from marcom programs.

Targeting Strategies

undifferentiated marketing, in which overall marketing mix is applied to the mass market (e.g., Model T Ford with one color and price for all Americans), differentiated marketing, in which a separate marketing mix is applied to each separate segment (e.g., General Motors' separate divisions) concentrated marketing, in which one overall marketing mix is applied to one separate segment (e.g., General Motors' separate divisions)

Simile

uses a comparative term such as like or as to join items from different classes of experience.

Peripheral Route

when a consumer is not motivated to attend and comprehend message arguments, their elaboration likelihood on message content is low. Yet, she or he may nonetheless attend to the message's peripheral features. According to the ELM, people experience only temporary attitude change when persuaded via the peripheral route in comparison to the relatively enduring change experienced under the central route. the best time to reach consumers with a message is just at the time they are experiencing a need for the product category in which the brand resides. hedonic needs can be satisfied when consumers attend to messages that make them feel good and serve their pleasure needs novel messages are unusual, distinctive, unpredictable, and somewhat unexpected. Intense and prominent cues (those that are louder, more colorful, bigger, brighter, etc. than their background) increase the probability of attracting attention. This is because it is difficult for consumers to avoid such stimuli, leading to involuntary attention.

What makes for a good objective?

• Include a precise statement of who, what, and when • Be quantitative and measurable • Specify the amount of change • Be realistic • Be internally consistent • Be clear and in writing

What is Source Neglect?

•When we agree (or disagree) we form an attitude•A positive or negative feeling towards something or someone•A function of repetition•We tend to believe things we hear over and over again are true•We tend to forget who said them = Source Neglect•A function of arguments & processing style