Marketing Exam 3 (Marketing Channels, Promotion, Persuasion)

1. Message Learning Source factors

• Credibility ---Reputation ---Argues against his/her own best interest (example: Zappos Ad with CEO) • Attractiveness ---Physical appearance ---Similarity to the recipient ---Presentation style (if not credible, can still be effective w/ attractiveness) • Celebrity Endorsement

Facts about Advertising and celebrities tweeting, making money of twitter

Fact: US spends most money in the world on Advertising (190.8 billion dollars in 2016) Kim Kardashian gets 10,000 per tweet, 46.8 million followers. Ex. tweeted about morning sickness pills and advertised ex) Bieber tweet. But does anyone actually care?

Promotion goals include

awareness, persuasion, reminder, and education

2. Cognitive Approaches 2.2 Attribution Theory

• Humans need to attach meaning to their own and others' behaviors • Consumers seek to determine causes for events ---Sometimes consumers infer their attitudes from their actions (when the former are inaccessible or do not exist). Why did I buy this product? (It must be that I like it) • Why does a source speak for a company? (Taylor Swift Diet Coke example) (Ex. Matthew McConaughey tells Larry Kind, 'I'm telling the truth, I drive a Lincoln') (trying to figure out what motive they have do this)

Can marketers convince consumers that they need things? No!

• Marketers recommend ways to satisfy basic needs (biological needs, needs that are unmet) --- satisfying needs that exist, ex) women won't buy shaving stuff • Advertisers simply do not know enough about people to manipulate them ---Failure rate for new products = 40% to 80%

2. Cognitive Approaches 2.1 Comparative judgement

• Most products are good bad in relative sense • It all depends on point of reference --- Attitudes for other products or the specific attribute(s) that is important to a consumer --- Salient (advertising) • Your job: elect the point of reference that would enhance the perception of your product (^perception important, not realities) (advertising against opposing brand. Ex. AUDI Ad saying "Your move, BMW". Then BMW Ad saying "Checkmate" after. Kept going back and forth)

4. Motivational approaches

• One way to get people to change their beliefs and attitudes is to make people want to change their beliefs and attitudes • Persuasion attempts that are too obvious may backfire

3. Affective Approaches (emotionally engaged in product)

• Surprisingly powerful --- Finding a quarter in a phone booth or getting a small gift (gum) can dramatically influence our behavior --- Positive affect encourages us to try new things, be more helpful and creative --- While the emotion is fleeting, the positive outcomes associated with it are long lasting

10 for $10 vs. 1 for $1

"Even though shoppers usually do not have to buy the suggested amount to get the discount, they do anyway," said John T. Gourville, a professor of marketing at Harvard Business School who studies pricing strategies. It is all about the power of suggestion, he said. "Many people buy the amount, or buy in increments, that are advertised — five for $5, they end up buying five boxes of couscous or whatever it happens to be," he said.

5. Social Influence 5.6 Scarcity

(based on loss aversion) • If you've got something of value nobody else has, there's a good chance somebody out there will want to buy it ---Effective use of the scarcity principles demands more than simply convincing potential clients what they stand to win by choosing your unique bundle of features • You also have to sell them what they stand to lose by not doing so • Humans are more motivated to act by the idea of potential loss than of potential gain

Loyalty Programs

- 90% of Americans belong to a loyalty program - The average consumer belongs to 22 loyalty programs, 6 of them are active - Companies spend $76.9 Billion on incentives and promotions for loyalty members in 2013 - 57% of consumers say they are likely to spend more to qualify for a coupon or earn cash back "Retailers with a loyalty program, on average, are 88% more profitable than competitors who do not." Visit 2x more often+spend 4x more money= you earn 88% higher profits

Product integration/ Placement

- A form of advertising where companies pay or barter for their products to be used as "props" (placement) or as part of the story (integration) - An increasingly growing market in both TV and films ---- $73.27 billion world wide in 2014 ---- 47% of that in the US - Marketers love it and consumers don't for the same reason: it's sneaky! Ex) Conan tweet: Product placement is so pervasive these days it make me want to Doritos Even movies promote stuff. Transformers 4 has a lot of product placement and Google loved the movie "The Internship" bc it subtly advertised them

1. Message Learning

- Effective persuasive communications are attention-drawing, comprehensible, convincing, and memorable - 4 stages in the processing of a persuasive communication: attention, comprehension, yielding, and retention - Influenced by: Source, message, recipient, and medium variables

5. Social Influence 5.3 Social Proof

- Human beings often make choices about what to think, and what to do, based on the thoughts and actions of others. ---Use "the many" to influence "the few" Ex) How to get hotel guests to recycle linen? -"The majority of guests who stayed in this room recycled their linens" **similar to consensus from the video

Rebates

- Over $8 billion issued back to American households in 2010. Why so popular? ---- Redemption rate is far below 100% ---- A "tax on disorganized" that is paid by those who do not submit their rebates ----During the turnaround time, the company earns interest on the money -The law on "deceptive trade practices" has changed ----"$40 with $40 rebate" vs. "Free after rebate" Rebates are refunds. A way to give a discount.

2. Cognitive Approaches

- Persuasion will not occur without deep processing of the persuasive message, which results in a "cognitive response" -In some cases recipients remember the cognitive response but not the persuasive message - Two sub-theories: comparative judgment (advertising against opposing brand) and attribution theories (buy if you → like it. Ex: Taylor swift endorsed Diet Coke b/c it's actually her favorite drink) (conclusion most important part)

How to use 6 weapons of influence in advertisements and sales

- Scarcity→ ex) want something we don't have -Authority→ ex) Oprah recommends book, book then becomes best seller. ex) Lebron endorses Nike -Social Proof→ ex) a million people already watched this movie!! (usually number#) - Reciprocity→ ex) if you buy this, we'll donate to a charity of your choice (you give something, I'll give you something) - Consistency→ ex) first month free, then consumers are consistent & continue to use -Liking→ ex) like the person who sells you this

Persuasion- Take aways/summary

- There are lots of different routes to persuasion -Persuaders should so some sleuth work and employ the method most appropriate to the situation at hand -Always be sure to influence another in a way that ensures you have not damaged your ability to influence that person again in the future --- The other person must benefit from the change you created

Brick and Mortar Stores

Example: people thought Apple Store would fail when it started →not just a store, most successful retail store in U.S. Amazon now starting store for books and groceries. They will be smaller stores, mostly for pick-up purchases -Stores good for some industries, bad for others Ex) Blockbuster, Redbox died →(Blockbuster early on could have bought Netflix: Screwed up and didn't) Big retail stores dying: JCpenny, Macy's, Sears, etc.

2. Cognitive Approaches Comparative Advertising

Is this explicit comparative advertising a sound strategy? Yes, if done right --- Be the champion of the customer --- Compare relevant and important information --- Take the edge off with humor → You have to advertise the right way if you go at opposing brand

Revealed Preferences United vs American Airlines Example

May say they want something, but their behavior says otherwise United vs American example -In 200 AA removed seasons from its planes to allow more leg room for passengers. -Advertised saying: "More room throughout coach" -In 2005 the airline reversed this decision, reinstalled 12,000 seats and expected to raise revenues by $100 million a year -United launched a $20 million campaign poking AA for that reversal -In many planes, American still has more leg room than United. But consumers don't believe that bc of the campaign -Consumers may say they want more leg room but they won't pay more for it

Offline Shopping vs Online Shopping

Offline things cost more than online these days (location not as big of a deal anymore- not according to article but whatev) Why do people shop offline then? Consumers according to Forrester Research, don't want to wait for product to arrive. They also want to see a product in person before they purchase it 64% of shoppers research purchases online before buying offline (more common for women to do this but men do also) Caltech found that consumers are willing to pay 50% more for items they could touch and see (the homogenization of time and death of distance in online shopping)

4. Motivational approaches 4.1 Balance Theory

Under motivation because your motivated to be balanaced - Attitude change --- Ellen + Amex commercial. We like Ellen + Ellen likes Amex= so we should also like Amex (+++) - Denial --- There is no plus. Ellen and Amex don't actually like each other, Ellen just gets paid a lot for Amex commercial (+ turns into -) (+--) - Differentiation --- Ellen has no financial background with Amex so why should we listen to her advice even if we do like her (we like Ellen but don't like how she's advertising for this) (---) You have yourself, the brand, and the speaker attitude change: your attitude towards speaker is positive, assume speaker likes the brand, so you start to like the product Denial: Speaker doesn't actually like the brand Differentiation: we like speaker but how do they have to do with product?

People skipping commercials

TiVo Stat: found that users spend 1/2 their television time watch programs recorded earlier. And Viewers of those recorded shows skip about 70% of the commercials The Wall Street Journal: Found that Mad Men and The Walking Dead have the highest rates of Ad Skipping. Disney CEO tells FOX that Business ads 'critical' to programming: Skip our Ads and We cancel 'Dancing with the Stars'

3. Affective Approaches 3.1 Classical Conditioning

Unconditioned is response to food conditioned is response to bell (would be the brand in a marketing case) • Consider a hungry dog who sees a bowl of food FOOD → SALIVATION • This relationship is unconscious, uncontrolled, and unlearned • While presenting the food, ring the bell BELL FOOD → SALIVATION • Repeat several times • Ring the bell, don't give food BELL → SALIVATION • The dog has learned to associate the bell with the food and now the bell has the power to produce the same response as the food So what is classical conditioning? • Unconditioned means unlearned, untaught, uncontrolled, preexisting FOOD → SALIVATION unconditioned stimulus → unconditioned response • Conditioned means the opposite: we try to associate something new with the old relationship BELL → SALIVATION conditioned stimulus→ conditioned response • The process: ---Start with an existing relationship (unconditioned stimulus → unconditioned response) ---Then pair a new thing (conditioning stimulus) with the existing relationship ---Repeat until the new thing has the power to elicit the old response (conditioned stimulus→conditioned response) -Positive stimulus (music, scenery, people, animals, babies) → Positive affect -Advertised brand (paired with positive unconditioned stimulus)→ positive affect (toward brand) -Ex) Budweiser and Puppy Ad is All-time most popular super bowl ad even though Beer and dogs don't have much to do with each other. Makes us happy! Another Example: → Hear Christmas songs in store, makes us want to stay longer in store since it's happy music → makes us buy more

3. Affective Approaches Shock Advertising

• Deliberately offending receivers of the ads by violating norms graphically or/and with blunt slogans • It is controversial, disturbing, explicit, and may entail bold and provocative messages that challenge the public's conventional understanding of the social order • Excellent in drawing attention and unaided recall • But does it help the cause? - We don't really know, no conclusion - Sad about it but we've seen everything already especially with internet these days so nothing surprises us Ex) Ads for human trafficking or animal cruelty. Hard to look/think about but yet then we eventually forget about it

Distribution channels changed product variety. Example with the case of the _____ industry

music Variety has increased in music industry with Spotify, Soundcloud, Apple Music, etc.

Some common appeals

Emotional appeal ---Fear ----Humor ---Self idealization (ex of when emotional appeal went bad: Kendal Jenner Pepsi Commercial) Rational Appeal Sex Appeal

Harnessing the Science of Persuasion: Persuasion Article Notes

-6 basic laws of winning friends and influencing people 1) The Principle of Liking - People like those who like them - People like similarities and praise - Positive remarks about others traits, attitudes or performance reliably generates liking in return and compliance with the wishes being offered 2) The Principles of Reciprocity - People repay in kind. Give what you want to receive - Charities rely on reciprocity to help raise funds by sending a small gift with the letter to homes - Boss gives worker gifts, employee wants to leave but feels obligated to stay since boss has been so nice to him -leader should model the behavior they want to see from others "sure glad to help. I know how important is for me to count on your help when i need it" 3) The principle of Social Proof - People follow the lead of similar others -use peer power whenever its available - Charity goes door to door asking for money. They found that the longer the donor list was the more likely those solicited would be to donate as well bc their neighbors who they like donated -influence is often best exerted horizontally rather than vertically 4) The principle of Consistency -People align with their clear commitments -Make their commitments active, public, and voluntary - Not only should people like you, but should feel committed to what you want them to do - as a rule, people live up to what have written down -Commitments should be publicly made and visibly posted 5) The Principle of Authority -People defer to experts -Expose your expertise; don't assume if's self-evident -Surprisingly often, people mistakenly assume that others recognize and appreciate their experience -Therapy doctor had awards and diplomas on staff's wall. Exercise compliance jumped 34% and never dropped since - Nothing changed^ expertise was real just had to make it ore visible - Getting together first for dinner to discuss business can make things easier so you can explain your expertise -what you have to say will be accorded to the respect it deserves 6) The principle of Scarcity - People want more of what they can have less of -Highlight unique benefits and exclusive information -opportunities are seen to be more valuable as they become less available -retailers frame offers in what they stand to lose rather than gain Conclusion: -rules of ethics apply to the science of social influence just as they do to any other technology -dishonest or high pressure tactics work only in the short run

Social Media

-An umbrella term used to describe web-based and mobile technologies that support the creation and exchange of user-generated content. They facilitate interaction, information-sharing, and relationship-bulding amongst users Why did it profoundly change the marketing landscape?

Advertising to children

-Another way to violate consumer rights is to advertise to children, who often do not understand the persuasive intent of ads --- Types of product advertised --- Host selling --- Privacy on the internet ex)Nickelodeon advertises a lot of junk food which Disney banned. ex) "almost all food, beverage products marketed by music stars are unhealthy"

Distribution Strategies

-Intensive distribution: distributing a good or service through every available outlet ----travel: direct, travel agents, websites, other offline and online retailers (Costco) -Selective distribution: distributing a product through only some outlets ----luxury goods, such as Louis Vuitton -Exclusive distribution: using only one outlet in a geographic marketplace ----Prestige, stock, relationship ----Service providers such as doctors, investment banks

Are Intermediaries Needed?

-Intermediaries are found offline and online. Why? ---Reduce the number of transactions ---Perform physical distribution functions like: breaking bulk, creating assortments, transportation, storage, etc. (producers make narrow assortment in large quantities. Consumers want broad assortment in small quantities.) ---^transportation, storage ---Perform communication functions ---Share the risk with manufacturers ---Help with financing → ex) mattress store will help you finance the purchase

Self Idealization Appeal

-Play to customers' desire for achievement of the ideal self -Usually arouse high levels of message empathy, ad liking, and purchase desire Ex) Lebron Ad. UNBREAKABLE. LIGHTWEIGHT. EXPLOSIVENESS.

Channel Power

-The ability of a particular channel member to control or influence the decision making and behavior of another channel member (AMA) (the ability of a channel member to have more power over another member of the channel) Why is power important? --Reduces dependence on other channel members (they have their own agenda) --Leads to more favorable terms in negotiations

Humor Appeal

-Used in 20-30% of all advertisements -Excellent at capturing attention -Scores high in recall tests, especially unaided -Tends to be light on informative content -Should be related directly to customer benefit. Or else, the joke can overpower the message Ex) an Article says Funny Ads don't sell better than Unfunny ones-- and can even sell worse

5. Social Influence 5.4 Consistency

-When people make a public commitment or promise, they will almost always want to back those word with actions (ex. say your going to the gym, then do it) ---Nobody likes being known as a liar, wishy-washy, or erratic. People much prefer to carry a reputation of honesty and steadfastness -----The low-ball technique→ A deal is agreed to but then the deal changes and consumers still agree to the deal even if it's now a bad deal. (still consistent with the deal) Ex) Car dealerships ---When you see yourself doing even a small act in favor of a particular cause, you come to see yourself as somebody who actually does favor this idea -----the-foot-in-the-door technique: person first agrees to small request to get them to next agree to a large request (consistent with agreeing)

Creating effective communication

1) Identify the target audience 2) Determine the communication objectives 3) Design the message ---Which appeal? ---What will the messages be? ---Who is the source?

Agenda for Persuasion

1) Message learning approach 2) Cognitive approaches (persuasion can't take place unless people really think about the messages) -Comparative judgement -Attribution theory 3) Affective approaches (emotionally engaged in product) - Classical conditioning - Discrepancy theory 4) Motivational approaches - Balance theory - Elaboration likelihood 5) Social Influence (article) 6) Ethics in persuasion (we can lie, manipulate, etc.)

Sources of Channel power

1) Reward power → power based on ability to give economic rewards. A product that consumers seek- will go to a retailer that carries that product. 2) Coercive power → power based on threats or punishments (amazon, Walmart bc they have so much power that they can tell suppliers what to do. Bc Not being in Walmart can be the destruction of the supplier) 3) Legitimate power → power based on legal agreement 4) Referent power → power based on leadership and admired characteristics 5) Information power → power based on the possession of information valued by others

5. Social Influence Science of Persuasion (video) 6 shortcut principles

1) reciprocity→ ex) someone does you a favor, you owe them next. Mint at restaurant given by waiter= now you give bigger tip 2) scarcity → something becomes a scarce resource, people will want more of it 3) authority→ people with authority (Cop, PHD, CPA). People will be more willing to listen to them or pay them (credentials) 4) Consistency → people are consistent with what they do 5) liking → we like people who are similar to us, people who are nice etc. we do business with 6) Consensus → if other people are doing it, you may be more likely to do it. Hotel towel example: "75% of people reuse their towel. You should also!"

Aristotle's three modes of persuasion

1) the message 2) source off message 3) The audience

1. Message Learning Message factors 1. Message Complexity

1. Message Complexity - Simple message → attractive source (ex. Brad Pitts hot daughter for Chanel 5 Ad) - Complex message → expert source (UPS Chairman in UPS Ad)

1. Message Learning Message factors 2. One-sided vs. two-sided messages

2. One-sided vs. two-sided messages • One-sided messages: contain only supporting arguments • Two-sided messages: provide pros and cons • Depends on the recipients: ---Consumers who favor the brand → one-sided messages ---Consumers who are neutral or do not like the brand → two-sided messages (increases credibility)

1. Message Learning Message factors 3. Primacy effect vs Recency effect

3. Order of presentation: what should we say first and what we say last? ---Primacy effect: say first ---Recency effect: say last

Creating effective communication Cont.

4) Be creative-- promotional material can and should be "outside the box" ----- Gets attention ----- Memorable Ex) Advertisement for BMW with one prosthetic leg: "Spare parts for humans are not as original as those for cars. Don't Drink and Drive." Issued in Public Interest by: BMW ex) Papa Johns Paper delivery guy picture.

Creating Effective Communication Cont..

5) Set the Budget --- Percent of sales, competitive parity, objective and tasks, affordable 6) Choose the format --- Advertising, personal selling, PR, promotion, direct marketing, digital marketing 7) Choose the vehicle --- Advertising --- Sales promotion

Creating effective communication Cont...

8) Collect feedback -- On the message --- On the media --- Make changes to message, media, and product

Mediums of Advertising

All have advantages and disadvantages (slide 13) Television Radio Magazines Newspapers Internet Outdoor

Kind of Sales Promotion

All have objectives, advantages, disadvantages (Slide 17) Coupons- Stimulate demand, encourage retailer support Deals- Increase trial, retaliate against competitor's actions Premiums - Builds goodwill, consumers like free or reduced price merchandise Contests- Increase consumer purchases; build business inventory, encourages consumer involvement with product Sweepstakes- Encourage present customers to buy more, minimize brand switching Samples- Encourage new product trial Continuity programs- encourage repeat purchases, helps create loyalty. ex) Spotify charges 5 dollars every month automatically until subscription canceled Point-of-Purchase displays- increase product trial; provides in store support for other promotions, provides good product visibility Rebates- encourages customers to purchases, stop sales decline, effect at stimulating demand Product placement- Introduce new products; demonstrate product use, positive message in a noncommercial setting

6. Ethics

Ethics: The moral principles by which people decide issues of right and wrong, fairness and justice Marketing ethics: the principles by which marketers decide issues of right and wrong, fairness an justice ----Where do these principles come from? Societal standards, religion, idiosyncratic beliefs, professional associations (AMA) How are ethical rules different from laws? ---Only one of them is enforced (laws enforced, ethical rules aren't)

Design the Message

Example: Michelin Tires "MICHELIN. BECAUSE SO MUCH IS RIDING ON YOUR TIRES" "THE RIGHT TIRE CHANGES EVERYTHING"

Some Article notes from Marketing Channels

Although we buy online, it depends on our geographical location (GRAVITY) Geography- How the real world organizes: Individual Decisions, neighborhood composition, and country-level patterns Resistance- Why friction exists and how to overcome them (smaller places use internet for shopping more than urban larger places where there are more offline places to shop) two types of friction: 1) how far you are. Won't go to Wilmington Del from Newark just to get Beer 2) search: I wanna buy something but I can't find it Adjacency- Why proximity matters: Individual Interaction, neighborhood affects. (don't simply find out about Internet sellers at random). Literally someone is next to you. (80% Adjacency, 20% vicinity with marketing channels) Vicinity- ties that bind: physical distance, social distance, and the spatial long tail (cities far apart may have more in common compared to a town and a city that are right next to each other). Similar to you doesn't have to be next to you Isolation- some consumers really far away, so need to adjust for that. Ex) open winter jacket store in CO rather than Miami →find the Miami customers online. Topography- The evolving landscape of the real and virtual worlds: people, goods, and information in play and on the move. Local topography (tax rates, delivery times, shopping environments) are different in each place. Ex) amazon focuses on improved terms and delivery speed You- Making GRAVITY work for you. How you decide to shop Warby Parker Glasses → Makes it easier to simulate what you'll look like →Impact of showrooms → names most innovative company in the country, worth $1.2 billion now

Persuasion (definition)

An active attempt to change beliefs, attitudes, preferences, and behaviors

Channel Components

Channel of distribution (aka "marketing channels"): A system of marketing institutions that promotes the physical flow of goods and services from proper to user(s) of products (How products move from producer to us) The cost of which accounts for 30%-50% of the product's cost

Basic types of channels

Direct: manufacturer →consumer ex)Farmers who sell produce on site or at farmers markets use a direct channel of distribution. A company that produces its own products and sells them directly to the consumer in its own retail stores is using a direct chain of distribution. Indirect: manufacturer →Intermediaries → Consumer Ex) grocery store, some shoe stores (Payless, marshals, etc) Multiple: Ex) Apple →Consumer Apple → Amazon →Consumer multiple- locations online or offline, Multi channel you sell direct and also sell indirect with intermediaries. Omni channel- sell online and offline (ex. Macy's)

3. Affective Approaches 3.2 Discrepancy Theory

Discrepancy: Difference between what you see and what you used to see • Unexpected events produce arousal. Arousal increases as discrepancy increases ----Small discrepancies are interesting and thus produce pleasant arousal ----Large discrepancies are highly inconsistent with our prior knowledge and thus produce negative arousal ex) take date to horror film; hard to watch

Negative effects of marketing

Does marketing affect self esteem? Yes, we look at people and see a gap between us and the people in the ads Ex) Abercrombie and Victoria's Secret models Video: Ads are negative because they show women that they have to try hard on their looks and spend a lot of money on it. Especially, now with computers, they can photoshop so it's virtually impossible to look as good as the people in the Ads

Deceptive Advertising

False objective claims- making an invalid claim -- regulated by FTC (only one that is illegal) Puffery- an obviously exaggerated claim -not typically regulated ex) I'm the best teacher in the world ex) pizza place says we serve the best pizza in the world! • Missing information (what we don't say) ---A literally truthful claim made in an ad can still be deceptive to consumers because of what ad DON'T say ex) KFC says we have less carbs than Burger King (doesn't include the other facts) • Allowing Incorrect Inferences ---An ad can be deceptive even if nothing in it is untrue, if what it causes consumers to INFER is deceptive (ex. Showing fresh fruit in ad when it's really made from artificial fruit)

Rational Appeal

Focus on the consumer's practical, functional, or utilitarian need for the product or service --Emphasize features of a product or service and benefits or reasons for owning particular brand ex) Plan B advertisement. "I Chose a Condom But it Broke. I have a Second Choice with Plan B"

Coupons

Generate a lot of revenue (will succeed on two levels) Even unused coupons still pay off. Bigger discounts, bigger exposure. Nonetheless, people will be prompted to visit store and spend. As a group, these non-redeemers will spend more at the store than the redeemers, bc there are simply more of them (73% receive but do not redeem coupons. 27% do)

How is a marking action digital?

If it is reliant on a digital medium to execute its specific function or complete its intended action "medium"= Channel, manner, or device "...complete its intended action"= almost every relevant marketing action is now, in one sense or another, digital

Showrooming vs Webrooming

Showrooming: See something offline and then buy it online Webrooming: See something online, then go to store and buy it offline

3. Affective Approaches Small vs Large Discrepancies

Small Discrepancy: see something your not expecting to see. Pleasant arousal Ex) Rubber duck crying in ad for Chicken pox ad → makes us sad, draws our attention, used to seeing rubber ducks being happy Large Discrepancy: Hard to look at it, people don't want to but still draws our attention. Negative arousal Ex) Ad for babies with mother heroin addicts. Hard to look/think about

The fear appeal

The effectiveness of fear appeals is determined by: ---The likelihood of the danger ---Coping effectiveness ---Self efficacy ex) listerine mouthwash advertisement with a dentist holding a needle with a quote "Do you think much of your mouthwash now?"

Marketing Communication

The mix of promotion tools should provide a consistent, clear, and compelling company and brand message Promotion tools: -Advertising -Public relations -Sales promotion -Personal selling -Direct Marketing -Digital marketing and social media

Promotion (with capital P)

The various communication techniques such as advertising personal selling, sales promotions, public relations, and direct marketing available to a marketer that are combined to achieve specific goals

World class bull

What theories of persuasion operated in this situation? -Reciprocity: Chris Knox told Dale that SFS would offer Armadillo gas cheaper prices than their current services they're receiving -Authority: Chris saying we only work with the best -Liking: Dale Landry and his wife actually really liked Chris What do think about the actions of Chris "Fort" Knox? (Chris attempted to sell to Dale after Will failed to sell to him) Chris's actions were towing the line between ethical and unethical behavior. However creepy/stalk-ish his actions may have been, Dale didn't ask to sign a contract when he finally got in contact with Chris; he asked Chris to set up a time to PITCH the idea to him formally. Dale's choice to go into contract with SFS wasn't because Chris coerced him, Chris simply made the services ore appealing to them by putting a friendly face to the company. At most Chris should just be reprimanded for some of the unethical actions he took What do you think about Jeremy's email? Chris's boss and VP of Sales, Jeremy, should be fired for emailing the tactics by which Chris landed the account to everyone in the office. Jeremy should have known that although Chris's actions landed the account, they could put SFS in a position to be sued by the Landry's and that his behavior shouldn't be encouraged to land future sales. If Landry's were aware of the memo Jeremy sent out, I think they would initially be very upset with Chris's tactics. • Two important issues: --- How to cultivate genuine common interests with prospective customers without intruding on their private lives? --- How to use such tactics for long-term mutual benefit versus a short-term, one-time sale?

When do we go with the Direct Marketing Channel?

When... -Buyers are easily identifiable and accessible to the producer -Part of the brand image (exclusivity, service) -Offer a wide variety of services to the target market -Very important for the company to manage details of the interaction (banks, doctor, but also other companies) -Sufficient resources to manage the interaction -Intermediaries have no access/cannot satisfy needs of market Direct examples from notes: Doctors, lawyers sell directly to consumers, so does Tesla → why do this? B/c you don't need intermediaries, don't need to split profits, more 1v1 with consumer, etc.

don't let big data bury your brand article

article is saying use both, not just big data. Use it, but don't overuse it

4. Motivational approaches 4.1 Elaboration Likelihood Model

persuasion can't occur if people can't elaborate (want to listen and learn about the product). Model suggests you can, it's just weaker. model says you need ability and motivation to be persuaded. If only have one or the other, then can still be persuaded, just not as much (peripheral route). Central route includes thinking about them, processing arguments, understand. **Key take away: persuasion can occur in the peripheral route - Sometimes consumers elaborate upon the info conveyed in the ad, and sometimes they don't - When are consumers more likely to elaborate? exposure to advertising → motivation to elaborate (depending on involvement) →ability to elaborate → central route if low motivation or ability to elaborate → peripheral route

Intermediaries

wholesaler or retailer that operates between producers and consumers or business users (Anything in the middle-distributers, etc.) Place- You have a great product with high demand, the price is right and profitable, yet how do you get it to customers? Breaking Bad example) Walter White couldn't make money because he needs a distribution system so he hires Jesse to find customers

1. Message Learning Medium Factors

• Advertising objectives • Target audience • Depends on the message: ----Simple messages → audio or audiovisual ---Complex messages →written format

3. Affective Approaches Continued

• Affects are powerful motivators ---A positive affect triggers mood preserving behaviors ---A negative affect triggers mood changing behavior

Can marketers convince consumers that they need things? Yes!

• Affluenza: An extreme form of materialism in which consumers overwork and accumulate debt to purchase more goods ---Consumers buy, and feel dissatisfied when they can't • Credit card debt (January 2016 numbers) ----38% of American households carry credit card debt ----24% of American families have more credit card debt than saving (2013) ----The average household credit card debt is $7,697 ----Looking only at indebted, the average is $15,608 Why do people get convinced? 1) Data abuse 2) People buy, buy, buy, even when they get more money 3) Credit card debt

5. Social Influence

• Attempts to change individuals' behavior • "Persuasion doesn't work through charm or magic or dumb luck, but rather through the clever use of six basic principles that appeal to a limited set of deeply rooted human drives and needs." (Robert Cialdini)

1. Message Learning Source factors: Celebrity Endorsement

• Celebrities are used to impart credibility and add aspirational values to brands • Celebrities are good at generating attention, recall, and positive attitudes toward the advertised brand (why?) • The above is only possible provided there is an explicit fit between the celebrity and the brand • Companies must do a cost benefit analysis (example Obama wearing a coat, they used him in their coat Ad. Brad Pitt in a women's brand Chanel No 5 ad= didn't work bc not fit btwn brand and celebrity)

Marketing ethics: an inherent conflict?

• Conflicts often arise between the goal to succeed in the marketplace and the goal to maximize consumer well being • Consumers think better of products made by firms they feel behave ethically

5. Social Influence 5.1 Liking

• People prefer to say "yes" to people they like than people they don't like • Why do we like other people? ---Because they are similar to us ---Because they are attractive ---Because they like us (once I recognize that you like me, I feel safe, in the hands of somebody that likes me) ------Why are Tupperware parties so successful? • Good sales people should genuinely like their customers ----There's just one difficulty: Liking can't be faked. If your first impression of somebody is that you simply don't like them, that dislike is going to come across in your actions and demeanor. ----How to solve that problem? Uncover that one aspect of an individual that you might genuinely respect. Mention it. It changes the tone of interactions from that point on --- Give a compliment- be specific, sincere, say thanks Ex) mug shot of a hot guy, people got obsessed with him on Internet Ex) politicians who look better are more likely to be voted for→ indicators that they're healthy Ex) Joe Girard has been top car seller for years. How? Every month he would send cards to past and current buyers saying I like you, compliments, etc. People trust him and then come back

1. Message Learning Recipient factors (no control over this

• Persuasion depends on the recipient ---Understanding the message: attention, comprehension, expertise... • Motivation to process the message • Persuasion knowledge - recipients learn to cope with persuasion attempts ----Similarity (can they relate to it)

5. Social Influence 5.2 Reciprocity

• The tendency among humans is that we want to give back to those who have given to us --- If what you give to somebody is meaningful, tailored, and unexpected, that is really the best you can do. All the evidence shows you will be repaid -------Personalized labels --- The door-in-the-face technique- making large request first that person will most likely turn down (warranties are almost never worth it. Applecare, etc.) --- The dual effect of samples→ little gift, you get to try it, and then maybe you'll want to buy it Ex of reciprocity: goody bags at birthday parties

5. Social Influence 5.5 Authority

• We will be better off if we follow the lead of legitimate experts, because they have greater knowledge in a certain domain than we do ---We can't possibly be experts in all domains, even those that are vitally important to us: health, business, legal, technology... There is just too much information to learn ---Any communicator who wishes to move people in his or her direction should first reveal or uncover the credentials that he or she has ---The problem: It is awkward and impolite, we're told, to brag about ourselves ----- People hang their diplomas on the wall ex) bring kids to doctor when sick, trust policeman and fireman, etc.