Class 8 - Advertising & Sales promotion Flashcards
Types of consumer decisions :
Processing effort
Low —— high
Investment
Low ——- high
Brand laziness
(Processing effort Low, Involvement Low)
Ex : Eau de Javel, Farine
- Both Involvement and Processing Effort are LOW
- Habitual purchases made on the basis of familiarity and convenience.
- Consumers quickly shift preferences to the best deal or the most convenient option.
Advertising to problem solving consumers :
Characteristics: Prioritizing convenience and ease
The ”place” and “price” Ps are going to be more important to consumers than the “promotion” P.
Make sure your product is easy to access and priced competitively
Use clear and concise messaging, avoid information overload
Heuristic cues are effective, like focusing on the popularity of the product (e.g., “millions trust our brand”)
Brand loyalty
(Processing effort low, involvement high)
Ex : Souliers
Commitment to a brand based on the benefits and values it provides to a consumer
Quality
Emotions
Is measured in two ways:
Really positive attitudes towards the brand
Consistently purchasing an item from this brand (e.g., when I need shoes, I buy Nisolo)
Advertising to problem solving consumers :
Characteristics: High involvement, emotionally attached to specific brands, low information processing
If consumers are loyal to you…
Emphasize that they are part of a brand community
Show appreciation for continued support (e.g., loyalty programs, perks)
If consumers are loyal to a competitor…
Do market research to discover (1) what they like about the competitor and (2) pain points
Construct simple messages differentiating on pain points
Variety seeking
( Processing effort high, involvement low)
There are three types of variety seeking:
Satiation / Stimulation
Consumers get “satiated” (i.e., have enough of) one option, and want to try something else. Trying something new is fun!
Advertising to variety seeking consumers : Provide variety in products outside your main offering (e.g., side dishes, fragrance, packaging) to reduce satiation.
External Situation
Consumers seek variety as their needs change (e.g., winter to summer) or as they accommodate preferences of other individuals.
Advertising to variety seeking consumers : Promote heavily (ads and sales promotions) during periods of transition, when customers are likely to try new things.
Future Preference Uncertainty
Consumers are purchasing now for themselves in the future. They choose variety because they don’t know what future-them will want.
Advertising to variety seeking consumers : If you know consumers are choosing for themselves in the future, provide bundles with a variety of options.
Where to advertise ?
Broadcast
outdoor
digital
print
in-store
guerilla
Problem solving
(Processing effort high, involvement high)
Typically involves unfamiliar, expensive products that are purchased infrequently
Consumers collect as much information as possible and carefully evaluate each alternative
Consumers decide what features are important to them, and make a purchase decision based on these features
Advertising to problem solving consumers
Characteristics: High involvement, high effort, research extensively before making a decision.
Provide consumers with concrete and detailed information about your product.
Provide consumers with opportunities to ask questions about and try the product
A Caveat: Non-Purchase Decisions
Brand loyalty
Variety seeking
Problem solving
Broadcast media
What is it? The distribution of video and/or audio messages over a mass communication platform (e.g., radio, TV)
What is it good for?
Repetition is Necessary
Because each exposure is short, repetition is necessary
Considerable wastage because broadcast ads are costly and its hard to reach your target audience
Low Involvement Messages
Great at creating awareness and interest
Difficult to present a lot of product information (limited time, audience cannot consume at their own pace)
Storytelling & Emotional Content
Images and sound are powerful elicitations of emotion
Can feel more realistic
Outdoor media
What is it? Ads that the consumer encounters while outdoors and on transit (e.g., billboards, subway ads, park bench ads)
What is it good for?
Context-Dependent
Attention varies depending on ad and placement
Exposure duration varies greatly depending on placement
Consumer mood varies depending on placement
Hyper-specific location targeting
Ads that work for a very small geographic segment
Businesses with a very small geographic segment (e.g., local stores, local restaurants, real estate agents)
Building Awareness
Reaches a large audience
Low ability to target
Therefore helpful for building awareness among large groups
Digital Media
What is it? Ads that the consumer encounters online. For example, on social media, search engines, or other websites.
What is it good for?
Building Brand Loyalty
Allows brands to engage with customers directly
Builds brand community
Personalization
Content can be tailored very specifically to target groups
Easy to recognize and follow-up with interested consumers
Measure & Optimize Performance
Allows detailed tracking of KPIs, allowing us to pinpoint where consumers abandon
Allows A/B testing of advertisements to achieve optimal results
Print media
What is it? Any form of media that is physically printed on paper (e.g., newspapers, magazines)
What is it good for?
Easy to Target
People tend to consume the same print media repeatedly
Print media consumption is often related to important segmentation & targeting variables
Ideal for High Involvement Prods
A lot of product information can be displayed
Consumers can read the information at their own pace
Magazines should focus on conveying information with images. Newspapers use text
Equally Emotional, Not Annoying
Because readers can choose whether or not to engage, may be less annoying
Similar to TV in ability to elicit emotions and build brands
In-Store Media
What is it? Advertising consumers encounter while shopping in-store (e.g., displays, information cards, checkout displays, packaging)
What is it good for?
Persuasion
May be particularly persuasive because you are encountering consumers right when they are considering purchase
Packaging is Powerful
70% of Americans form their impressions of brands based on packaging
30% of business report increased revenue from packaging changes
Oversight and Upkeep
To keep displays looking good and helpful, requires considerable oversight
May require workforce or collaborations to keep it looking good
Guerilla Marketing
What is it? Advertising tactics that derive their power from being outside the traditional paid-for media
What is it good for?
Generating WOM on limited budget
Can include sabotage tactics wherein a media by another company is ”hijacked” to promote your company
35% more memorable than trad ad.
Reaching inaccessible consumers
Great for reaching consumers who are less receptive to trad. ad (e.g., Gen Z)
May allow for hyperlocal advertising to engage geographic target
Standing out
Captures attention through unconventional means
Can be effective for differentiating the brand and improving recall
BEING COOL
Cognitions
Brand sophistication
Brand competence
Brand excitement
Behaviors
Willingness to pay
Word of mouth
Attitudes
Brand attitudes
Brand love
Self-brand connection
Defining coolness :
“A subjective and dynamic, socially constructed positive trait attributed to cultural objects inferred to be appropriately autonomous.
Take-Aways :
Consumers consider brands cool if they diverge from norms that are illegitimate (like Roiku) or meaningless (like the water bottle)
Consumers consider brands cool if their autonomy (i.e., the extent to which they do their own thing) is bounded — brands that are too autonomous are not cool.
