Chapter = 06 Source, Message and Channel Factors

The Persuasion Matrix

The persuasion matrix which helps marketers see how each controllable element of the communication process interacts with the consumers response process. The matrix has two sets of variables. Independent variables are the controllable components of the communication process while dependent variables are the steps a receiver goes through in being persuaded.

Promotional Planning Elements

That corresponds to the numbers in the cells of the persuasion matrix that were presented in the previous slide. These include: Receiver/comprehension can the receiver comprehend the ad? Consideration must be given to whether the target audience can understand and comprehend a message. Channel/presentation which media will increase presentation? How effective is a particular media vehicle in reaching the target audience? Message/yielding what type of message will create favorable attitudes or feelings? Marketers try to create messages that will lead to positive feelings toward the product. Source/attention who will be effective in getting consumers attention? Marketers select sources that will be effective in gaining the attention of the target audience such as celebrities, athletes, or attractive models.

 Source Attributes and Receiver Processing Modes

The various categories of source attributes and receiver processing modes associated with each one. The three basic sources attributes and processing modes associated with each are as follows: Credibility the extent to which the recipient sees the source as having relevant knowledge skill or experience and trusts the source to give unbiased, objective information. Internalization the process by which a receiver adopts the position advocated by the source because it is perceived as accurate and makes it part of his or her belief system Attractiveness refers to the similarity, familiarity, and/or likeability of the source Identification the process by which an individual is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, or behaviors. Power refers to the ability (real or perceived) of the source to administer rewards or punishment to the receiver Compliance the process by which the receiver accepts the position advocated by the source to receive rewards or avoid punishment.

Source Credibility
There are two important dimensions to source credibility, expertise and trustworthiness. Marketers recognize that expertise is extremely important and choose spokespersons who have

knowledge, skill, or experience with a particular product or in a service area. Endorsements from individuals or groups recognized as experts, such as doctors or dentists are common in advertising. While expertise is important, the target audience must find the source believable. Trustworthiness relates to the sources objectivity, honesty, and believability.

Source Attractiveness

The various components of source attractiveness which include similarity, familiarity, and likeability. A summary of each characteristic follows: Similarity resemblance between the source and the recipient of the message. Marketers recognize that people are more likely to be influenced by a message coming from someone with whom they feel a sense of similarity (e.g. similar needs, goals, interests, lifestyles). Familiarity knowledge of the source through exposure. Familiarity is enhanced through repeated or prolonged exposure. Likeability affection for the source as a result of physical appearance, behavior, or other personal traits. Consumers can admire physical appearance, talent, and/or personality even if the source is not well known or a celebrity.

Risks of Using Celebrities

The risks associated with using a celebrity as an advertising spokesperson. Although celebrities can be effective in gaining attention and influencing consumers, there are some factors that must be considered before deciding to use them. These are: Overshadowing the product advertisers should select a celebrity spokesperson who will attract attention and enhance the sales message, but not overshadow the brand.

Overexposure consumers can become skeptical when a celebrity endorses too many products or companies and becomes overexposed. Target audiences receptivity it is important for marketers to select a celebrity endorser who matches and is well received by the advertisers target audience. Risk to the advertiser the advertiser needs to select an endorser who will not embarrass the company. Researching the celebritys personal life and background to reduce this risk is becoming common.

Meaning Movement and the Endorsement Process

The meaning movement and endorsement model illustrates why celebrity endorsements are effective. It is based on the premise that credibility and attractiveness do not sufficiently explain how and why celebrity endorsements work. According to the model, a celebritys effectiveness as an endorser depends on the culturally acquired meanings he or she brings to the endorsement process. There are three stages of meaning movement: Stage 1 celebrities draw these meanings from the roles they assume in their television, movie, military, athletic, and other careers. Each new dramatic role brings the celebrity into contact with a range of objects, persons, and contexts. Stage 2 celebrities bring their meanings and image into the ad and transfer them to the product they are endorsing. Stage 3 the meanings the celebrity has given to the product are transferred to the consumer.

 Modes of Celebrity Presentation

Source Power
That source power depends on several factors. The source must be perceived as being able to administer positive or negative sanctions to the receiver (perceived control) and the receiver must think the source cares about whether or not the receiver conforms (perceived concern). The receivers estimate of the sources ability to observe conformity is also important (perceived scrutiny).

Recall and Presentation Order

Message structure is very important to overall communication effectiveness. A basic consideration in the design of a persuasive message is the order of presentation of message arguments. Research on learning and memory generally indicate that items presented first and last are remembered better than those presented in the middle. This chart shows that the strongest arguments should be placed at the beginning or end of the message, but not in the middle.

 Message Appeal Choices

One of the advertisers most important creative strategy decisions involves the choice of an appropriate appeal. There are two broad categories of message appeals: Rational focus on consumers practical, functional, or utilitarian needs Emotional focus on consumers social and/or psychological needs or feelings Many believe that the most effective advertising combines the practical reasons for purchasing a product with emotional values.

Message Appeal Options

Various advertising message appeal options that can be used in an advertising message. These include: Comparative Ads directly or indirectly naming competitors in an ad and comparing one or more specific attributes. Characteristics of comparative advertising include: FTC advocated this type of advertising in 1972 to give consumers a more rational basis for making purchase decisions. Useful for new brands to get in the evoked set of the consumer Often used for brands with small market share Used frequently for political advertising Fear appeals evokes an emotional response of danger and arouses individuals to take steps to remove the threat. Characteristics of fear appeals include: May stress physical danger (drugs) or social rejection (mouthwash) Have both facilitating and inhibiting effects Humor appeals evoke an emotional response by making people laugh or feel good about a company or brand. Characteristics of humorous appeals include: An effective way to attract and hold attention Put consumer in positive mood Can wear out once the receiver get the joke or punch line

 Fear Appeals and Message Acceptance

A chart depicting the relationship between fear levels and message acceptance. This chart suggests the relationship between the level of fear in a message and acceptance or persuasion is curvilinear. This means that message acceptance increases as the amount of fear used rises, but only to a point. Beyond that point, acceptance decreases as the level of fear rises. The relationship between fear and persuasion can be explained by the fact that fears appeals have both facilitating and inhibiting effects. Low levels of fear can have facilitating effects which attracts attention and interest in the message and may motivate the receiver to act to resolve the threat. Thus increasing the fear from low to moderate can result in increased persuasion. High levels of fear, however, can produce inhibiting effects whereby the receiver may emotionally block the message by tuning it out, perceiving it selectively or denying the arguments outright.

 Pros and Cons of Using Humor

Creative Directors Opinions Regarding Use of Humor

 Self versus External Paced Media

The final controllable variable of the communications process is the channel or medium used to deliver the message to the target audience. There are basic differences in the manner and rate at which information from various forms of media is transmitted and can be processed. The two broad classifications of media are: Self-paced readers/viewers process the ad at their own rate. Self-paced media include print media such as newspapers, magazines, and direct mail as well as the Internet. Externally-paced the transmission rate is controlled by the medium. Externallypaced media include radio and television.

Chapter = 07
Establishing Objectives and Budgeting for the Promotional Program Value of Objectives

The nature and purpose of objects and the role they play in guiding the development, implementation, and evaluation of an IMC program. The values of setting objectives include the following: Focus and coordination setting objectives facilitates the coordination of the various groups working on the campaign. The advertising and promotional program must be coordinated within the company, inside the ad agency, and between the two as well as with any other communication agencies involved with the campaign

Planning and decision-making specific promotional objectives guide the development of the integrated marketing communications plan. They also guide decisions regarding strategic and tactical issues such as creative options, media selection, and budget allocation. Measurement and control objectives provide a benchmark against which the success or failure of the promotional campaign can be measured.

Characteristics of Objectives

Marketing Versus Communications Objectives

 Many Different Factors Affect Sales

Many marketers take the position that the basic reason a firm spends money on advertising and promotion is to sell its products. As such, sales or other sales related measures are often used as communications objective. One of the difficulties of using sales as a communication objective is that sales are a function of many factors, not just advertising and promotion. This chart shows the various factors that can affect sales which include: advertising and promotion technology competition price policy product quality the economy distribution

Advertising and Movement Toward Action

This chart of the various steps in the hierarchy of effects model of advertising developed by Lavidge and Steiner. The model shows the various steps the consumer moves through from awareness to purchase, along with examples of various types of promotion or advertising relevant to each step. As consumers move through the three stages they become closer to making a purchase, which is the ultimate goal of marketers.

 Pyramid of Communications Effects

This chart of the communications effect pyramid. It shows that advertising and promotion perform communications task in the same way a pyramid is built, by first accomplishing the lower-level objectives such as awareness and knowledge. Subsequent tasks involve moving consumers who are aware of or knowledgeable about the product or service to higher levels in the pyramid. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid.

The DAGMAR Approach

In 1961, Russell Colley prepared a report for the Association of National Advertisers titled Defining Advertising Goals for Measured Advertising Results. Colley developed a model for setting advertising objectives and measuring the results of an ad campaign that became known by its acronym. The DAGMAR model has become one of the most influential approaches to advertising planning and setting advertising objectives.

Pros and Cons of DAGMAR

The positive influence DAGMAR has had on the advertising industry, as well as criticisms by some in the advertising field. Positive aspects of DAGMAR include the following: Assessment of campaign effectiveness Focused attention on the value of communication-based objectives Measurement of stages Less subjective Criticisms of DAGMAR include the following: Problems with the response hierarchy

Sales objectives Practicality and cost Inhibition of creativity

Advertising-Based View of Communications

Advertising through Media

This chart showing a traditional advertising-based view of marketing communications. This approach is based on a hierarchical response model and considers how marketers can develop and disseminate advertising messages to move consumers along an effects path. It is also known as inside-out planning. The focus is on what the marketer wants to say, when the marketer wants to say it, about things the marketer believes are important about the brand, and in the media forms the marketer wants to use.

Balancing Objectives and Budgets

 Marginal Analysis

A graphical representation of the concept of marginal analysis. This graph shows that as advertising/promotion expenditures increase, sales and gross margins also increase to a point but then level off. Using this concept to determine how much to spend on advertising suggests that a firm would continue to spend as long as the marginal revenues created by these expenditures exceeded incremental advertising costs. As shown on the graph, the optimal expenditure level is the point where marginal costs equal marginal revenues they generate (point A).

BASIC Principle of Marginal Analysis

The basic principles of marginal analysis. Some logical assumptions from the graph regarding advertising spending are: Increase spending if the increased cost is less than the incremental return Hold spending if the increased cost is equal to the incremental return Decrease spending if the increased cost is more than the incremental return

Advertising Sales/Response Functions

The two models of the advertising/sales response function. The relationship between advertising and sales has been the topic of much research and discussion designed to determine the shape of the response curve. Almost all advertisers subscribe to one of two models of the advertising/sales response function: The concave-downward function which assumes that the effects of advertising spending follow the microeconomic law of diminishing returns. That is, as the amount of advertising increases, its incremental value decreases. The logic is that those with the greatest potential to buy will likely act on the first (or earliest) exposures, while those less likely to buy are not likely to change a s a result of the advertising. The S-shaped response function which assumes that initial outlays of the advertising budget have little impact (range A). However, after a certain budget level has been reached (range B) advertising and promotional efforts begin to have an effect, as additional increments of expenditures result in increased sales. This incremental gain continues only to a point. When advertising expenditures enter range C, incremental spending will have little additional impact on sales.

Top-Down Budgeting

Top-Down Budgeting Methods

The various top-down budgeting methods. They are: Arbitrary allocation budget is set by management based on what is felt to be necessary. No theoretical basis underlies the budgeting process. Competitive parity setting budgets on the basis of what competitors spend. Usually accomplished by matching the same percentage of sales expenditures as competitors. Percentage of sales advertising and promotion budget is based on the sales of product. Determined by either taking an amount based on a percentage of sales revenue sold or anticipated revenue from sales. Affordable method the firm determines the amount to be spent on the various areas such as production and operations and then allocates what is left to advertising and promotion. Return on investment advertising and promotions are considered investments, and the budget appropriation is based on the returns the company feels it will generate from advertising

Bottom-Up Budgeting
The bottom-up approach to budgeting. This approach is based on the consideration of a firms communications objectives before the budget is set. Once the communication objectives are determined a budget is developed to attain these goals. The specific steps of this approach are: 1. Promotional objectives are set 2. Activities to achieve objectives are planned 3. Cost of activities are budgeted 4. Top management approves total budget

Objective and Task Method

The three steps of the objective and task method of budgeting. This method reflects a bottomup approach to budgeting and involves the following steps: Establishing objectives specific communication objectives to be achieved are established Determine specific tasks determine the specific tasks needed to accomplish the communication objectives. May include advertising in various media, developing programs involving sales promotions and/or other elements of the promotional mix. Estimate costs associated with tasks determining what it will cost to perform the specific tasks that must be performed to achieve the objectives. Monitor performance should be monitored and evaluated in light of the budget appropriated. Reevaluate objectives once specific objectives have been attained, monies may be better spent on new goals.

 Ad Spending and Share of Voice

This chart outlines strategies for advertising spending based on a company or brands market share and a competitors share-of-voice (SOV). Share-of-voice refers to a company or brands percentage of the advertising messages compared to all of the advertising messages for that product or service. Recommended ad spending strategies shown in the chart are based on different market share and share of voice scenarios and suggest the following: When market share is high and competitors SOV is high, increase to defend market share When market share is high and competitors SOV is low, maintain a modest spending premium to hold market share When market share is low and a competitors SOV is high, decrease overall spending and find a defensible market niche When market share is low and competitors SOV is low, attack with a large SOV premium to increase market share

Chapter = 13 Support Media

The Role of Support Media
The role of support media is to reach those people in the target audience that primary media such as TV or print may not have reached and to reinforce or support the advertising message.

Support Media

Examples of Traditional Support Media

 Out-of-Home Media A Diverse Cross-Section of Formats

Top 10 Outdoor Advertising Categories

1. Local services and amusements 2. Media and advertising 3. Public transportation, hotels, and resorts 4. Retail 5. Insurance and real estate 6. Financial 7. Automotive dealers and services 8. Restaurant 9. Automotive, auto access, and equipment 10. Telecommunications

Characteristics Of Outdoor Advertising

Outdoor advertising is one of the more pervasive communication forms, particularly in urban or suburban setting. This slide summarizes the characteristics of outdoor advertising which include: Reach can reach many people quickly Frequency potential for many impressions Flexibility many options are available Cost low cost per exposure Impact size, shape, and lighting may lead to impact

 Other Out-of-Home Media

Other Miscellaneous Outdoor Media

Transit Advertising Media

Another form of outdoor advertising is transit advertising which is targeted to the millions of people who are exposed to commercial transportation facilities including buses, taxis, commuter trains, trolleys, airplanes, and subways. The different types of transit advertising are: Station, platform, and terminal posters floor displays, island showcases, electronic signs, and other forms of advertising that appear in transit facilities

Inside cards placed above the seats and luggage areas of buses or trains Outside posters may appear on the sides, backs, and/or roofs of buses, taxis, trains, an subway and trolley cars

Outdoor Advertising Pros & Cons Advantage Disadvantage

Transit Advertising Pros & Cons

The advantages and disadvantages of using transit advertising. Advantages o Exposure long length of exposure because of ride times o Frequency commuters and riders can be exposed regularly Disadvantages o Reach does not always reach the right target consumer o Mood of audience mass transit can be crowded and hurried

 Measurement in Out-of-Home Media

A number of sources of audience measurement and other information are available: Competitive Media Reports (formerly BAR/LNA) provides information on expenditures on outdoor media by major advertisers. Simmons Market Research Bureau conducts research annually for the Institute of Outdoor Advertising, providing demographic data, exposures, and the like. The Point of Purchase Advertising Institute is a trade organization of point-ofpurchase advertisers collecting statistical and other market information on POP advertising. The Outdoor Advertising Association of America (OAAA) is the primary trade association of the industry. It assists members with research, creative ideas, and more effective use of the medium. The Traffic Audit Bureau (TAB) is the auditing arm of the transit industry. TAB conducts traffic counts on which the published rates are based. Scarborough publishes local market studies providing demographic data, product usage, and outdoor media usage. The American Public Transportation Association (APTA) provides ridership statistics, studies, and other transit usage information.

Promotional Products Marketing

Promotional products marketing can be described as both an advertising and sales promotion medium. There are thousands of specialty items in promotional products marketing including such things as pens, mugs, key rings, calendars, T-shirts, and matchbooks.

Promotional Products Pros & Cons

The advantages and disadvantages of using promotional products marketing. Advantages o Selectivity distributed directly to the targeted customer o Flexibility a variety of specialty items are available o Frequency designed for retention which results in repeat exposures

o Economy most items are affordable o Goodwill free gifts make consumer feel good o Augmentation supplement other media Disadvantages o Poor image can cheapen brand/company image with cheap giveaway o Saturation many organizations use this medium o Lead time can take time to have large numbers of items produced

Measurement of Promotional Products

Forms of Yellow Pages

An overlooked, but popular medium for local and national advertisers is the Yellow Pages. Listed below are the several forms of this medium Specialized directories targeted at select markets such as ethnic or religious groups Internet Yellow Pages 1.5 billion references in 2004 Other services refers to additional items that are distributed with the Yellow Pages such as coupons and freestanding insert. The advantages and disadvantages of using the Yellow Pages. They include: Advantages o Wide availability o Action oriented o Low cost o Frequency

o Non-intrusive Disadvantages o Market fragmentation o Timeliness o Lack of credibility o Lead times o Clutter o Size requirements

Advertising in Movie Theatres

Many movie theaters are now showing commercials shown before the feature film and previews. This slide discusses the advantages and disadvantages of showing ads in movie theaters. Advantages o High exposure over a billion people go to movies every year o Audience mood good moods can carry over to the product o Cost low in absolute and cost per exposure o Good recall high percentage of recall compared to TV o Lack of clutter theaters limit the number of ads o Proximity theaters are close to shopping malls where many products are purchased Disadvantages o Irritation people do not want to see ads in movie theaters o Cost CPMs tend to be higher than in other media

Types of In-Flight Advertising

 Nontraditional Support Media

the various types of branded entertainment, which is a form of advertising that blends marketing and entertainment through television, film, music talent, and technology: Product Placements showing the actual product or an ad for it as part of a movie or TV show Product Integration the product is woven throughout the program Advertainment the creation of video and/or music content by an advertiser in an attempt to entertain viewers while advertising their products Content Sponsorship rather than developing their own content, some advertisers agree to sponsor specific programs, receiving product placements, integration, and promotions in return. Ad-Supported Video on Demand specialized content programs offered through cable TV networks that are developed by advertisers and provided to the cable operators for free. Others Other forms of branded entertainment (through wireless, mobile, etc.) continue to develop

Branded Entertainment
The advantages and disadvantages of branded entertainment, on pp. 434-438 of the text. Advantages o High exposure o High frequency o Media support o Source association with the actor/actress using the product o Economy o High recall o Bypass regulations o Viewer acceptance o Targeting Disadvantages o High absolute cost o Time of exposure

o o o o o o

Limited appeal Lack of control when/where placed in the movie Public relations Competition from other products Negative placement in a negative scene Clutter

Measurement in Branded Entertainment

Miscellaneous Other Media

The variety of options for placing ads appears endless. A few of the faster growing and more widely used options are: Videogame ads Parking lot ads Bathroom ads Place-based media Other

Miscellaneous Alternative Media

The advantages and disadvantages of advertising using miscellaneous alternative media. Advantages o Awareness and attention o Cost efficiencies o Targeting Disadvantages o Irritation o Wear out