Chapter 1 setting the stage Flashcards

key stuff

1
Q

define advertising

A

4)

  • any form of paid communication by an identified sponsor
  • aims to persuade target audience about product, service, organisation
  • is ubiquitous (appears everywhere)
  • avg consumer exposed to 1000 messages each day
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2
Q

What was the first type of advertising?

A
  • Out door advertising

- Traders and merchants told community what they were selling

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3
Q

What saw birth of capitalism?

A
  • Industrial revolution

- Lead to wealth of trade (goods and services, plus media to advertise with them

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4
Q

Kotler 1997 said what what advertising not creating WANTS but they …

A
  • Ads channel consumer needs by reshaping them into wants
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5
Q

what does a consumer brand do

A
  • a label designated to product and differentiates it from others
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6
Q

what does USP stand for and mean?

A
  • unique selling preposition

- summary statement that meaningfully differentiates brand from competitor

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7
Q

TV advertising is dominant, what is 2nd dominant?

A

Newspaper, which holds 30% of all main media expenditures

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8
Q

Why are magazine ads specifically targeted?

A
  • to reach consumer segments that share common interests values lifestyles
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9
Q

How much is Ad estimated to reach by 2018? $$$

A

$668 billion

was $574 billion in 2015

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10
Q

Development of ad type and styles

- how was it done before 1800s

A
  • from 1800s to 20th century, ads used HARD SELLING approach (convinces consumers thoughts)
  • this was informational or argument based, included use of facts and appeal to reason (show and tell AKA reason-why approach)
  • persuasive to convince
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11
Q

Development of ad type and styles

1900s?

A
  • soft approach
  • convinces consumers emotions and feelings (targets these things)
  • use of image, to appeal to sentiments (imply and hint)
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12
Q

Hard approach based appeals (informational or argument based)
what kind of products

A
  • durable goods (concrete), richer countries
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13
Q
Soft approach (affect based appeals) 
what kind of products?
A

non-durable (experimental); poorer countries

- existing products

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14
Q

Functions of advertising?

A
  • promotes sponsorship, as they rely on commercials
  • ads are key source of funding for mass media using sponsorship
  • BBC are publicly rather than commercially funded to prevent full dependence on ads
  • gives knowledge of what is out there
    – facilitates competition, for consumer attention, preferences, choice and financial resources
  • ## to inform customers about products
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15
Q

What two functions does Ads have at an INDIVIDUAL LEVEL?

A

1) to inform: create non-evaluative consumer responses such as knowledge and beliefs
2) to persuade: generating/ changing an evaluative (valenced) response in which the ad brand is viewed as favourable

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16
Q

Why do Abernathy and Frankie 1996 say information function of ad varies?

A
  • Information function is more frequently used for durable goods (fridges can be used repeatedly, car) –> than non durable goods (food items, cosmetics, holidays)
  • suggest most frequently communicated types of info are about performance, availability, components, and attributes, price, quality and special offers
  • products proceed through a product lifestyle cycle
  • INFO APPEALS are also used when there are problems when there are problems associated to communicate a product recall (mcdonalds worm burger) to inform person can return product
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17
Q

What are 2 strategies used to achieve goal of persuasion?

A

1) directly increasing attractiveness of offer or message

2) reducing consumer reluctance when accepting the new position

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18
Q

Explain alpha and omega strategies in relation to persuasion

A
  • ALPHA = approach motivation / move consumer towards the advocated position - provide strong argument which increase incentive for accepting message position
  • OMEGA = avoidance motivation (stop consumer “moving away” from position) - fear based appeals that reduce resistance to counter arguing consumer concerns, distracting consumers to interfere with the message position, cite damage or risk involved in not buying
    e. g. physical disease, social (ostracism), product performance (defects), financial (loss), opportunity (limited)
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19
Q

What is psychological perspective on effects of Adv?

A
  • approach identifies effects of adv at an individual level of analysis,
  • links the ad stimuli to consumer responses
  • looks inside the head of consumer and advances of social context
  • goal is to establish causality and explain HOW and WHY
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20
Q

Other perspectives on effects of ads (other than psychological)

A
  • NAIVE approach = just assume will work because of ubiquitousness
  • ECONOMIC approach = weighs ads expenditures against sales volumes (no exploration of process :(
  • MEDIA approach = quantifies number of people in a target pop who have been exposed to ad, :( CANNOT inform us of the impact of exposure as unclear what happens once consumer is exposed to message
  • CREATIVE = clever, slick, striking, professional product (not necessarily impactful)
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21
Q

Different types of Consumer responses (CR)?

A

1) cognitive CR = beliefs thoughts about brand
- > includes bran awareness, brand recall and recognition, attitudes, categorisation of an object (product, message, brand) and its evaluative dimensions
2) affective CR = evaluations of emotions, mood and arousal when viewing ad (positive vs negative and intensity)
3) Behavioural CR = intention and consequent behaviour such as buying product, choosing brand, product trial i.e brand switching and discarding product

22
Q

assessing ads effect on Consumer response criteria?

correlation

A
  • relationships that exist between stimulus and CR can be correlational or causal
  • for correlation = IF number of arguments in informative message change then the CR also changes
  • correlation is informative cos it allows you to predict values of one variable when the other is known
  • helps EXPLAIN CR in response to ad stimuli
23
Q

assessing ad effects on CR

- causality criteria ?

A

1) Antedecent (A) must precede (come before) the consequences (B)
2) changes in antecedent must be associated with changes in the consequence, (correlation (A is linked to B)
3) no other consequence in the change in consequence must be present than the change in the antecedent, exclusivity (nothing else explains A-B link)
Antecedent = IV
consequence = DV

24
Q

what criteria does correlation only fulfil and tell us about A-B link

A
  • that changes in antecedent must be associated with changes in consequence
  • A could cause B
    B could cause A, some Cs could cause both A and B
    :S
25
Q

Source variables

A

1) source credibility = influences when consumer not motivated to process message, includes expertise (they can know) of source, and trustworthiness (can be trusted )
–> bystanders more influenced than targets because they tend to let guard down and be less critical of message
2) source attractiveness = halo as heuristic, to guide “what is beautiful is good”
attractive ppl percieved more socially competent, well adjusted, intelligent

26
Q

message variabilities?

A

1) argument quality and message structure = what is communicated about product (strength and persuasiveness
–> message structure = HOW product is communicated and order of presentation
–> primacy and recency effect may be beneficial
–> placement of message depends on recipients level of attention / low attention = message put at end / high attention = message put first
2) message sideness
–> one-sided message = biased, lopsided
–> two sided (avis car number 2 example) = admitted it (-ve) “so we try harder” - (+ve)
3)argument based and affect based appeals
–> experiential products (wine, perfume, designer clothing are evaluated by personal preference (taste, style) AFFECT BASED
–> durable products (computers) non durable (washing powders) ARGUMENT APPEALS
FEAR ) arousing communication = risk for not buying and preventions alleviated for buying
3) Need for cognition consumers)
–> high need = affected by rational appeals
–> low need = affected by emotional appeals

27
Q

marketing communication and the promotional mix?

A

Mix included 5 types of marketing communication (in addition to advertising which is just one aspect)

28
Q

What is integrated marketing communication? ICM

A
  • elements of promotional mix determined through this ICM
    involves coordinating all elements of marketing to create synergy between them
    -
29
Q

Direct marketing?

A

firm communicates directly and individually with a potential customer (for the exchange of a transaction)

  • some companies rely on this rather than other techniques such as ads
  • word of mouth is one type = influence is from a committed user of product, now famously used online through social media networks
  • event marketing = has interpersonal interaction, others sponsor related event (sports) e.g. redbull
  • direct mail = personalised form of ads, consumers addressed by their names
30
Q

interactive marketing?

A
  • conversational
  • potential of the internet for marketing products
  • in contrast to traditional media (ads) - internet is synchronous (no/small time lag between sending and receiving message
  • internet = consumers have control of contact, timing and pace of info
  • internet = perceived social presence (warmth and sensitivity is lower)
  • BUT customer control of content - acting as co-producer
    e. g. nike allowing you to design own trainer online
31
Q

what is sales promotion?

A
  • developing an immediate behavioural response from consumer
  • form of action communication
  • sales, credits, coupons, prizes
32
Q

Basic functions of sales promotion

A

1) increase market size
2) reward loyal customers
3) to make existing customers more loyal
4) to stimulate trial by new customers
5) support other communication tools
- impact of price cuts (positive effects) may wear off in LT
- sales reduction may cause consumer judgements (was on sale before so why not now) = could cause post-promotion dip –> where consumer refrains from buying product after sale has ended

33
Q

what is public relations? PR

A
  • should be seen as a form of persuasion, but viewed as a “symmetrical” form of communication aimed at the exchange of info between (organisation) senders and their target groups
  • creating mutual understanding between both parties
  • way for companies to be on good terms with: government, culture, the community, the press, the stakeholders
34
Q

Personal selling?

A
  • a two-way, face-to-face communication to inform and persuade prospective buyers with aim of reaching a behavioural response (immediate actions)
  • popular topic in social psych, seeks compliance not just persuasion
    +ve = bigger impact, demonstrations are possible , more flexible, no waste
    -ve = limited range, hard to control
35
Q

what is the modelling approach to conceptualising advertising effectiveness

A

aggregate level - entire markets or market segments are the primary unit of measure

36
Q

what is the behavioural approach to conceptualising advertising effectiveness?

A

individual consumer responses as a function of specific advertising variables

37
Q

psychology approach to conceptualising ads effectiveness?

A
  • ad input, to consumer response output.
    the level of specificity in the behavioural paradigm is typically such that the effects of individual ad characteristics (e.g. music in an ad) on specific consumer responses are assessed (consumer favourability of the brand-related cognitions)
38
Q

what are aims of SALES RESPONSE MODELS

A

AKA market response models

  • aim to relate advertising input such as expenditures, to aggregate output measures, such as sales, market shares or profits
  • effort to gain aggregated ad effects as a function of aggregated ads input
39
Q

part of sales response model:

what is Concave sales response model

A
  • sales follow the law of diminishing returns - incremental impact of ads on sales diminishes with increasing the communication budget, based on notion that once the entire population of non-buyers has been reached by an ads campaign , additional ad expenditures will not add much in terms of impact
40
Q

part of sales response model

what is S-shapes model ?

A
  • model assumes initial impact of ads as a function of communication budget is low
  • advertising “wear in” takes place and sales will start to increase exponentially with increasing expenditures up to a certain saturation point where the impact of ads will level off (diminish)
41
Q

limitation of response models?

A
  • other variables are in the mix
  • no characterisation of psychological response
  • just an aggregate behavioural output
42
Q

Benefits of Hierarchy of effects models

A
  • do not make assumption of a direct link between message and consumer response, BUT instead propose several intermediate steps
  • models suggest some level of consumer learning takes place following exposure to ads
43
Q

Hierarchy of effects models

- what are 3 stages of consumer responses to ads

A

1) cognitive stage = engaging in direct conscious attention to the target ad and thinking about its content
2) affective stage = thinking gives way to emotional responses and the formation of attitudes and preferences associated with the advertised brand takes place
3) conative stage = includes behaviour that might arise from exposure to ads, including (re)purchasing the ad or (re)using it

44
Q

AIDA sequence?

A

developed to understand personal selling and then applied to ads
- proposes linear sequence of effects
attention –> interest –> desire –> action
model is hierarchical cos consumers have to go through each stage and if consumer has never been expose to advertiser before, ad must include consumer attention in order to foster brand awareness

45
Q

AIDCA - A modification of aida

A
attention 
interest 
desire
conviction 
action
46
Q

AIETA -

A
awareness
knowledge 
liking 
preference 
conviction 
purchase
47
Q

none of the AIDA models and variations provide what?

A
  • they dont provide a description of HOW advertising actually works
48
Q

Foote, Cone-belding propse that ads could be modelled alone two key variables?

A

1) extent of thinking
vs
2) feeling and the extent of consumer involvement (low vs high)
“think-feel-do” sequence for all product and all people

49
Q

Rossiter-Percy-Donovan Grid

A
  • highlights distinction between high involvement and low involvement
  • it aimed to overcome the two classes of consumers = thinking and feeling
  • grid stresses involvement of brand awareness and motivational asymmetry
50
Q

DAGMAR model?

A
  • more specific communication objects that ads may have in each stage
    D-efining A-dvertising G-oals for M-easured A-d Results
  • highlights basic distinction in evaluative vs non evaluative consumer responses to ads:
    to inform and persuade
51
Q

new models

A

information processing (single model of everything)

cognitive response (filtered through reactions)

dual processing (high vs low involvement routes to persuasion)

unconscious process (nudging low involvement consumers)