Chapter 2: How Advertising works

1. Chapter 2: How Advertising works Dr. Nguyen Thi Gam Joint program with Daegu Cyber University- 2010

2. I. How advertising works as communication • Advertising is a form of communication. It is a message to a consumer about product. It gets attention, provides information and sometimes a little bit of entertainment, and tries to create some kind of response, such as sales. • In reality, advertising is not a conversation. Most advertising is not as personal or as interactive as a conversation, because it relies on mass communication, which is indirect and complex. Although other forms of marketing communication (personal selling and telemarketing) can deliver the personal contact of a conversation

3. I. How advertising works as communication 1. The Communication Model

4. I. How advertising works as communication 1. The Communication Model • The Communication Model begins with a source (S), a sender who encodes a message (M) – put it in words and pictures. The model explains who communication works: the message is presented through channels of communication (C), such as newspaper, radio, or TV. The message is decoded, or interpreted, by the receiver (R), who is the reader, viewer, or listener. Feedback is obtained by monitoring the response of the receiver the message. And the entire process is complicated by what we refer to as noise, things that interrupt the sending as well as the receiving of the message, such as bad connection.

5. I. How advertising works as communication • Sender • Coding • Channel • Receiver • Response • Feedback • Noise

6. I. How advertising works as communication • The Communication Model • Mass communication id generally one-way process with message depicted as moving from the sender to receiver. • Interactive communication is a form of two-way communication, a dialogue. • The difference between one-way and two-way communication is that the later communication process is interactive and the sender and receiver change position as the message bounces back and forth between them. The interactive communication model

7. I. How advertising works as communication • Mass communication id generally one-way process with message depicted as moving from the sender to receiver. • Interactive communication is a form of two-way communication, a dialogue. • The difference between one-way and two-way communication is that the later communication process is interactive and the sender and receiver change position as the message bounces back and forth between them.

8. 2. Advertising as communication Advertising Commun. model Noise: external Public opinions Marketing strategy Competition Other noise Perceiver: Consumer Perception &response Perceive Understand Feel Connect Believe Act Source Advertiser (objectives) Message: encoding (by agency) Media mix: channels Noise: internal Perceived needs Infor processing Attitudes and opinions Other noise Feedback

9. I. How advertising works as communication 2. Advertising as communication Effective advertising is evaluated in terms of the impact it has on the consumer response to the message. The advertiser’s objectives are focused on the receiver’s response, they predicts the impact the message will have on the target audience. The impact is what we measure to determine whether the message met is objectives and as effective

10. I. How advertising works as communication 2. Advertising as communication In advertising, noise hinders the consumer’s reception of the message. Internal noise • Internal noise includes personal factors that affect the reception of an advertisement, such as the target audience’s needs, purchase history, information-processing abilities, and level of avoidance of advertising in general. • If you are to tired to listen or your attention is focused elsewhere, then your fatigue creates noise that hiders your reception of the message.

11. External noise: • Macro level: consumer trends (health trends harm the reception of fast-food message) and problems with product’s marketing strategy (product design, price, distribution and marketing communication • Micro level: external noise could be as simple as bad radio or TV reception, but more important factor is cluster, which is the multitude of message all competing to get consumer’s attention (difficult to get attention) => Avoid cluster and information overload

12. II. The effects behind advertising effectiveness • The simple answers • AIDA model - AIDA (attention, interest, desire and action) is considered as the most common and long-standing explanation of advertising effect. • The ad gets attention, then it creates interest, then desire and finally stimulates action. The model identifies four effects and makes a prediction about how they are related in a hierarchy steps. Because AIDA assumes that consumers start with attention and wind up with a decision (referring to as a hierarchy - of - effects model) • Limitation: AIDA model is not adequate as model of the various types of effect advertising can create

13. II. The effects behind advertising effectiveness • The simple answer b. Think-feel-do model: is a simple model that answer to how advertising works. The idea is that advertising motivates people to think about the message, feel something about the product, and do something, such as try it or buy it. This model has been used to identify various patterns of response depending on the type of product and buying situation.

14. II. The effects behind advertising effectiveness

15. II. The effects behind advertising effectiveness • 2. Facets model of effective advertising • The objectives is to develop a model of advertising effect that does a better job of explaining how advertising creates various types of consumer responses. • The facets model includes 6 effects (6 types of consumer response) 1. Perceive (reception) 4. Connect (association) 2. Understand (cognition) 5. Believe (persuasion) 3. Feel (affective/ emotion) 6. Act (behavior)

16. II. The effects behind advertising effectiveness

17. III. Perception • The impact of the model can be created in a number of different ways. • Ex) a brand message may get attention, explain new information, and convince consumers to try the brand (it created impact in the perception, cognitive, persuasive and behavioral areas of effects) • Ex) Another message might create awareness, stir up an emotion, and link a product lifestyle (it creates perception, affective and association effects)

18. III. Perception 1 Definition Perception is the process by which we receive information through our five senses and assign meaning to its. 2. Components of perception Exposure (being seen or heard) is an important goal of media planners who try to find the best way to expose the target audience to the message Exposure

19. III. Perception - The ability to draw attention, and to bring to, to a product is one of advertising’s greatest strengths. • One way to evaluate the effectiveness of advertising is to measuring the attention level produced by the advertising - Receiver of the message has become mentally engaged in some way with the ad and the product • Relevance: the message connects on some personal level. When it appeals to your self- interest, then the message is said to be relevant. Selection and attention Interest and relevance

20. III. Perception Awareness: you are aware of something after having seen it or heard if before. Awareness results when an advertisement initially makes an impression Memory- recognition: memory refers to the way people file information in their mind

21. IV. Cognition • Definition: Cognition refers to how consumers respond to information, learn and understand something 2. Components of cognition Needs: are something you think about Wants: are based on feelings and desires

22. IV. Cognition Information:advertising often provides information about products (facts about product performance and features- size, price, design, … Learning:consumers learn about products and brand through 2 primary ways: cognitive learning and conditional learning

23. IV. Cognition Differentiation:keyfunction ofadvertising is differentiation of one brand from another. Consumers understand the features of a brand and be able to compare them with the features of competing products Memory-recall:recognition is a measure of perception and recall is a measure of learning or understanding

24. V. The affective or emotional response • Definition Emotional responses reflects our feelings about something. Emotion describes st that stimulates wants, touches emotions, and creates feelings. 2. Components of emotional response . Wants: needs are seen as being more cognitive, and wants are described as influenced more by emotion and desire. Ex) you see a display of candy bars, you may want one, but that doesn’t mean you think about whether or not you need it

25. V. The affective or emotional response Emotions:which stir up our passions or feelings, appear in a number of forms in advertising (humor, love, fear). Ads that rely on arousing these feelings are referred as emotional appeals. Liking: Liking a brand (or ad) was the best predictor of consumer’s behavior. Liking is measured in terms of two responses: liking the ad or liking the brand. You like the ad, then positive feelings will transfer to the brand.

26. V. The affective or emotional response Resonance: Advertisements that create resonance (tieng vang) (ring true) help the consumers identify with the brand on a personal level (self-identification). The women’s campaign of Nike does a good job of speaking to women in a way that address their concerns. If women identifies with this message, it is said to resonate for her. Messages that resonate provide the foundation for an enduring brand relationship

27. VI. Association • Definition: Association is communication through symbolism (process making symbolic connection between a brand and characteristics, qualities or lifestyles that represent the brand’s image and personality. 2. Components of association - Association uses symbolism and conditional learning to make connection in a consumer’s mind between brand and certain desired qualities that define brand and make it distinctive Symbolism: means the brand stand for a certain quality – a Rolex watch means quality

28. VI. Association Conditional learning: explains much of the impact of advertising. People learn about a product or brand in a largely noncognitive, even nonrational way. Beer advertising directed at a young male audience often uses image of sporting events, beach parties, and good-looking women, and those image are repeated Brand transformation: means a brand takes on meaning when it is transformed from a mere product into something special, st that is differentiated from other products in the category by virtue of its brand image and image.

29. VII. Persuasion • Definition: Persuasion is the conscious intent on the part of the source to influence or motivate receiver of a message to believe or do something. 2. Components of persuasion Persuasion is designed to change attitudes and behavior or build beliefs. Attitude (positive, neutral, negative): is mental readiness to react to a situation in a given way

30. VII. Persuasion Argument:uses logic, reasons and proofs to make a point (giai thich de xuat) and build conviction. This complex process demands the audience “follow through” the reasoning to understand the point and reach conclusion. Because advertising deals with problems and their solutions often relies on arguments Motivation:something (hunger, desire to be beautiful, rich) prompts a person to act in a certain way. In order to identify consumer’s level of motivation, advertising and other mrktg communication (sales promotion- gifts, prizes) to encourage people to respond

31. VII. Persuasion Conviction and preference: effective persuasion results in conviction, which means consumers believe something to be true. In terms of advertising effects, belief is indicated when consumers develop a preference for, or an intention to try or buy a product. Brand loyalty: is measured both attitude (preference) and by repeat purchases, is an important response that crosses over between thinking, feeling, and doing. This response is built on customer satisfaction. If you try a product, like it, you will be more likely to buy it again.

32. VIII. Behavior • Definition: Behavior is the action response and it can involve a number of types of action in addition to trying or buy the products 2. Components of behavior Try and buy: objective of most mrktg program is sales, the consumers view of that is purchase. In customer-focused program, the goal is to motivate people to try a product or buy it (for nonprofit, not selling goods, but volunteer or donation )

33. VIII. Behavior Contact:trying and buying are what the marketer desires, but other actions are more important measure of ad’s effectiveness. Responding by making contact with the advertiser can be important sign of effectiveness (through fee toll) Prevention: there are social-action situations where advertising message are designed to deter behavior, such as limitation of car use due to clean –air campaign and anti-smoking and anti-drug campaign for teens

34. Questions • What are the key components of a communication model? • Explain how the facets model of advertising effects to show how brand advertising works? • List the 6 effects that govern consumer response to advertising message.