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Objectives Setting
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Page 1: Objectives Setting. Major Decisions in Advertising.

Objectives Setting

Page 2: Objectives Setting. Major Decisions in Advertising.

Major Decisions in Advertising

Page 3: Objectives Setting. Major Decisions in Advertising.

Advertising Objectives

Sales Objectives Communications Objectives

Page 4: Objectives Setting. Major Decisions in Advertising.

Sales Objectives

Specific, measurable outcomes within a given time period.

E.g. sales volume, market share, profits, or ROI.

A good sales objective is quantifiable, realistic and attainable. In addition, it also delineates the target market and time frame.

Page 5: Objectives Setting. Major Decisions in Advertising.

Appropriate Situations for Sales Objectives

Induce an immediate behavioral response Direct-response advertising Retail advertising for special events, e.g. 新光三越, 家樂福.

Advertising plays a dominant role in a firm’s marketing program and other factors are relatively stable, e.g. consumer packaged goods.

Page 6: Objectives Setting. Major Decisions in Advertising.

Sales Objectives are Appropriate for Direct Response Advertising

Page 7: Objectives Setting. Major Decisions in Advertising.

Problems with Sales Objectives

Too many factors influence sales. Carryover effect: for mature, frequently

purchases, low-priced products, advertising effect on sales lasts up to 9 months.

Offer little guidance to the managers. Induce the managers to take a short-term

perspective.

Page 8: Objectives Setting. Major Decisions in Advertising.

Many Factors Influence Sales

Product QualityPromotion

Distribution

Competition

Technology

The Economy Price Policy

SALES

Page 9: Objectives Setting. Major Decisions in Advertising.

Communications Objectives

Designed to achieve such communications as brand knowledge and interests, favorable attitudes and images, and purchase intentions.

Page 10: Objectives Setting. Major Decisions in Advertising.

Not all Ads are Designed to Achieve Sales

Pampers Toyota Ford 中華汽車

Page 11: Objectives Setting. Major Decisions in Advertising.

The Response Process

Traditional Response Hierarchy Models AIDA model Innovation adoption model Hierarchy of effects model Information processing model

Alternative Response Hierarchies The dissonance/attribution model (Dissonance-reducing

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

behavior & habitual buying behavior)

Page 12: Objectives Setting. Major Decisions in Advertising.

AIDA Model (Strong, 1925)

Attention → Interest → Desire → Action The stages a salesperson must take a

customer through in the personal-selling process.

Page 13: Objectives Setting. Major Decisions in Advertising.

Hierarchy of Effects Model(Lavidge and Steiner, 1961)

Awareness → Knowledge → Liking → Preference → Conviction → Purchase

A paradigm for setting and measuring advertising objectives

Premise: advertising effects occur over a period of time.

Page 14: Objectives Setting. Major Decisions in Advertising.

Innovation Adoption Model(Rogers, 1962)

Awareness → Interest → Evaluation → Trial → Adoption

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

Page 15: Objectives Setting. Major Decisions in Advertising.

Information Processing Modelof Advertising Effects (William McGuire, 1978)

Presentation → Attention → Comprehension →Yielding → Retention → Behavior

Assume that the receiver in a persuasive communication situation like advertising is an information processor or problem solver.

McGuire’s model includes a stage not found in the other models: retention, or the receiver’s ability to retain that portion of the comprehended information that he or she accepts as valid of relevant.

Page 16: Objectives Setting. Major Decisions in Advertising.

Models of Obtaining Feedback

Exposure/presentationExposure/presentation

AttentionAttention

ComprehensionComprehension

Message acceptance/yielding

Message acceptance/yielding

RetentionRetention

Purchase behaviorPurchase behavior

Circulation reachCirculation reach

Listener, reader,viewer recognitionListener, reader,

viewer recognition

Recall, checklistsRecall, checklists

Brand attitudes,purchase intentBrand attitudes,purchase intent

Recall over timeRecall over time

Inventory POP consumer panel

Scanner data

Inventory POP consumer panel

Scanner data

RetentionRetentionRecall over timeRecall over time

Message acceptance/yielding

Message acceptance/yielding

Brand attitudes,purchase intentBrand attitudes,purchase intent

ComprehensionComprehensionRecall, checklistsRecall, checklists

AttentionAttentionListener, reader,viewer recognitionListener, reader,

viewer recognition

Exposure/presentationExposure/presentationCirculation reachCirculation reach

Effectiveness TestEffectiveness Test Persuasion ProcessPersuasion Process

Page 17: Objectives Setting. Major Decisions in Advertising.

Examples of Exposure/Presentation

Page 18: Objectives Setting. Major Decisions in Advertising.

Stages

Cognitive

Affective

Behavioral

Models

AIDA

model

Attention

Interest

Desire

Action

Hierarchy of

effects model

Awareness

Knowledge

Linking

Preference

Conviction

Purchase

Innovation

adoption

Awareness

Interest

Evaluation

Trial

Adoption

Information

Processing

Presentation

Attention

Comprehension

Yielding

Retention

Behavior

Models of the Response Process

Page 19: Objectives Setting. Major Decisions in Advertising.

Three Basic Stages

Cognitive stage (think): what the receiver knows or perceives about the particular product or brand.

Affective stage (feel): the receiver’s feelings or affect level for the particular product or brand.

Behavioral or Conative stage (do): the receiver’s action toward the particular product or brand.

Page 20: Objectives Setting. Major Decisions in Advertising.

Implications of the Traditional Hierarchy Models

Potential buyers may be at different stages in the hierarchy, so the advertiser will face different sets of communication problems. Cognitive, e.g. DHC, Pinky, 3M魔布強效拖把.

Affective, e.g. 全國電子 , 三菱SAVRIN, 泰國人壽, Pantene Thailand.

Behavioral, e.g. Heineken, KFC, www.one.org. It is useful for the measurement of

communication effect.

Page 21: Objectives Setting. Major Decisions in Advertising.

Alternative Response Hierarchies(Michael Ray, 1973)

High Involvement Low Involvement

High Perceived Product

Differentiation

Standard Learning Model

(C→A→B)

Low-Involvement Model

(C→B→A)

Low Perceived Product

Differentiation

Dissonance/Attribute Model

(B→A→C)

Page 22: Objectives Setting. Major Decisions in Advertising.

Four Types of Buying Behavior(Henry Assael, 1987)

High Involvement Low Involvement

Significant DifferencesBetween Brands

Complex buying behavior

(C→A→B)

Variety-seeking buying behavior

(C→B→A)

Few DifferencesBetween Brands

Dissonance-reducing buying

behavior

(B→A→C)

Habitual buying behavior

(C→B→A)

Page 23: Objectives Setting. Major Decisions in Advertising.

Ads for Complex Buying Behavior

Page 24: Objectives Setting. Major Decisions in Advertising.

Theory of Cognitive Dissonance

When a person is confronted with inconsistence among attitudes or behaviors, he or she will take some action to resolve this “dissonance,” perhaps by changing an attitude or modifying a behavior.

It helps to explain why evaluations of a product tend to increase after it has been purchased.

One implication of this phenomenon is that consumers actively seek support for their purchase decisions.

Page 25: Objectives Setting. Major Decisions in Advertising.

Ads for Dissonance-Reducing Buying Behavior

Page 26: Objectives Setting. Major Decisions in Advertising.

Ads for Low-Involvement Behavior

Page 27: Objectives Setting. Major Decisions in Advertising.

Think

In spite of C→A→B, B→A→C and C→B→A, is there another type of response process?

Page 28: Objectives Setting. Major Decisions in Advertising.

Involvement ConceptAntecedents of

involvement derived from the literature

Antecedents of involvement derived from the literature

Person factors - Needs - Importance - Interest - Values

Person factors - Needs - Importance - Interest - Values

Object or stimulus factors - Differentiation of alternatives - Source of communication – Content of communication

Object or stimulus factors - Differentiation of alternatives - Source of communication – Content of communication

Situational factors -Purchase/use -Occasion

Situational factors -Purchase/use -Occasion

Possible results of involvement

Possible results of involvement

Elicitation of counterarguments to ads

Effectiveness of ad to induce purchase

Relative importance of the product class

Perceived differences in product attributes

Preference of a particular kind

Influence of price on brand choice

Amount of information on search

Time spend deliberating alternatives

Type of decision rule used in choice

Elicitation of counterarguments to ads

Effectiveness of ad to induce purchase

Relative importance of the product class

Perceived differences in product attributes

Preference of a particular kind

Influence of price on brand choice

Amount of information on search

Time spend deliberating alternatives

Type of decision rule used in choice

Involvement

With advertisements

With products

With purchase decisions

Involvement

With advertisements

With products

With purchase decisions

Page 29: Objectives Setting. Major Decisions in Advertising.

Decision Rules

Compensatory Simple Additive Rule Weighted Additive Rule

Noncompensatory The Lexicographic Rule The Elimination-by-Aspects Rule The Conjunctive Rule

Page 30: Objectives Setting. Major Decisions in Advertising.

Decision Rules – Compensatory

Simple Additive Rule Weighted Additive Rule

Fishbein-Ajzen Model

k: consumer, j: brand, i: attribute, n: number of attribute, W: weight, B: belief, A: attitude.

The Idea-Point Model

1

n

kj ki kijiA W B

1

n

kj ki kij kijiA W I B

Page 31: Objectives Setting. Major Decisions in Advertising.

A Consumer’s Brand Beliefs about Computers

Computer Attribute

Memory Capacity

Graphics Capability

Size and Weight Price

A 10 8 6 4

B 8 9 8 3

C 6 8 10 5

D 4 3 7 8

Page 32: Objectives Setting. Major Decisions in Advertising.

Marketing Strategies

Alter beliefs about the brand: psychological repositioning, e.g. 蠻牛 , DHL, Extra, 萬安生命.

Alter beliefs about competitor’s brands: competitive positioning, e.g. 威寶電信, 德恩奈系列牙刷.

Alter the important weights, e.g. 台灣啤酒 , 薄酒萊 . Call attention to neglected attributes, e.g. Extra潔淨無糖口香糖, 聲寶殺菌光.

Redesign the product: repositioning, e.g. Arm & Hammer, 綠油精 – 1, 2.

Page 33: Objectives Setting. Major Decisions in Advertising.

Case: Beaujolais (薄酒萊 )

產地: South of Burgundy 品種: Gamay Noir 一般品嚐葡萄酒常強調陳年、厚實。 薄酒萊強調新鮮、果香,利用行銷策略、舉辦「新酒節」等方式,使消費者接受其訴求。

Page 34: Objectives Setting. Major Decisions in Advertising.

Decision Rule – Noncompensatory

The Lexicographic Rule The brand on the most important attribute is selected.

The Elimination-by-Aspects Rule (Tversky, 1972) Brands are evaluated on the most important attribute, and

specific cutoffs are imposed. Compromise effect, e.g. 菜單上最貴的的菜色 (HBR 中文版

June 2008, p.38).

The Conjunctive Rule Cutoffs are established for each attribute.

Page 35: Objectives Setting. Major Decisions in Advertising.

A Consumer’s Brand Beliefs about Computers

Computer Attribute

Memory Capacity

Graphics Capability

Size and Weight Price

A 10 8 6 4

B 8 9 8 3

C 6 8 10 5

D 4 3 7 8

Page 36: Objectives Setting. Major Decisions in Advertising.

Think

What factors may affect a consumer’s decision rule?

Page 37: Objectives Setting. Major Decisions in Advertising.

Setting Objectives Using the Communications Effects Pyramid

Product: Backstage Shampoo Time period: Six months Objective 1: 90% awareness Objective 2: 70% interest Objective 3: 40% positive feelings and 25%

preference Objective 4: 20% trial Objective 5: 5% main regular use

Page 38: Objectives Setting. Major Decisions in Advertising.

Inverted Pyramid of Communications Effects

90% Awareness

70% Knowledge

40% Liking

25% Preference

20% Trial

5% UseC

onative

(Behavioral)

Cognitive

Affective