Marketing Integration: CR Cognitive Processing/Message Development

Question 1

Importance of Memory

Answer 1

Importance of Memory
Communication exposure situation is removed from context when information is needed (i.e., decision in store)

Consideration Set- brands that are top-of-mind

POINT: very important to be in set- more likely to buy brands we remember

Brand equity- the value of a brand- everything it stands for (without it, just a commodity)- Involves:

Brand awareness- comes to mind

Brand image- all brand associations in memory (attributes, benefits, and feelings)

Lindstrom (2008)- the power of a brand is in its associations

Recall of MKT Communications is weakening:
1965- 34% average recall
Today- 8%

Question 2

Aspects of Memory

Answer 2

Active Memory - conscious thought- Where new information and old knowledge are brought together

Long Term Store - traditional memory, stored for later use
composed of knowledge structures or schema (both episodic and semantic)

Question 3

Brand Control Schemas

Answer 3

core brand associations that define a brand’s image

Consistent advertising over time builds strong brand schemas (brand equity)

Question 4

Rehearsal

Answer 4

Memory Control Process

Rehearsal-active conscious interaction

Question 5

Depth of Processing

Answer 5

Memory Control Process

how detailed information is analyzed

surface (rote memorization)  vs.deep processing - (self referencing- relate to prior knowledge and experiences)

Question 6

Recirculation

Answer 6

number of times info is brought into active memory (repetition) - better when spaced out vs. concentrated

Question 7

Retrieval Cue

Answer 7

Can activate memory

Question 8

Brand Name Placement

Answer 8

Remembered better when placed at beginning vs. end

Question 9

The Cognitive Decision Making Process

Answer 9

Problem Recognition
Information Search (Internal/External)
Evaluative Criteria
Beliefs and Attitudes

Question 10

Problem Recognition

Answer 10

a difference between an actual and an ideal state of affairs

Motivates a person to act (important for both central and peripheral route)

Marketing Implications: to activate problem recognition and suggest product as solution

Question 11

Information Search

Answer 11

Internal Search - recall information stored in memory

External Search- consult outside sources (e.g., magazines, internet, experts, packages, dealers, ads)

Question 12

The Internet (for External Searching)

Answer 12

The Internet
Has dramatically altered the way consumers search for info (in particular) and shop

Key Findings
Consumers tend to go to the same internet sources (inertia) but can be disrupted by a new competitive entry

Internet search is used for entertainment or research tool but consumers may not buy

Reviewers are important:
Assume ambiguous reviewers are similar to ourselves- more likely to accept and see as credible

Question 13

Search Engines

Answer 13

Sponsored links appear because company purchased corresponding key words from search engine company

KEY TO SUCCESS: KEYWORDS
Specific words and short phrases that describe the nature, attributes, and benefits or a marketer’s offering

Need to increase odds that your site will come up when key word is entered (want to be in top 10 items- can be many ‘hits’- 75% do not go beyond page one)

Need to purchase the most relevant or related words

Ineffective to use broad, general terms

Question 14

Social Media (Important Aspects)

Answer 14

Key source of information before buying (WOM more influential on consumer attitudes than MKT communications)

Brand image is sum of all conversations (not just those controlled by company)- less company control

Companies need to be participants in the conversations- conversations will be there regardless- (can’t ignore) can’t control them but can influence them:

Question 15

Social Media Continued

Answer 15

• Need to engage customers- want people to Like you
• Speak as a person, not the company- think and act like the customer
• Importance of Listening (vs. talking) -communicate with not at customers
• Limit talking about yourself- provide assistance- care about customers
• Build a trusting relationship- need to be authentic (as honest and transparent as possible)
• Learn to deal with negativity- can be a cry for help- need quick public response (‘We’re sorry’ and solution)
• Make sure to say ‘thank you’ for positive comments (shows you care)
• Create quality content- solution to people’s problems vs. description of product- need to tell stories
• Consumers can create content (2 way model)
• Need to talk to and engage fanatics (consumers who love you)- become ambassadors
• Find customers you inspire the most and give them the tools to share

Question 16

Key Goals for Social Media

Answer 16

Foster dialog

Promote advocacy

Facilitate support (consumers provide solutions- crowdsourcing)

Spur innovation

NOTE: can be very effective and incurs little expense

Question 17

5 Ways to fail at Social Media MKT

Answer 17

Too much MKT; not enough social (should be at least 80%)

Lack of brand consistency

Set up but don’t use

Lack of acknowledgement

Being a control freak

Question 18

Evaluative Criteria

Answer 18

expected outcomes expressed in the form of product attributes, features, or benefits
Can be either:
Objective -product features (such as price, net weight, etc..)

Subjective - symbolic value, aesthetics, looks, styling

Question 19

Most Important Criteria

Answer 19

Brand Name- “chunk of information” - surrogate indicator of quality – brand equity (associations)

Brand Personality- brands have traits just like people

Price- reference price (range)- last paid, 			average, or competitive price  Note: Brand name influences search for price information

Other - depends on product category (EX: fuel economy for car; power and size for laptop)

MAJOR POINT: we want to know what are the major criteria which are the determinants of the decision

Question 20

Beliefs

Answer 20

expectation linking a product with an evaluative criterion

represents consumer knowledge about products

Question 21

Attitude

Answer 21

Overall evaluation of like or dislike

Focus of much decision making research (multiattribute models)

Question 22

Compensatory Brand Models

Answer 22

Two Components:

Belief Strength (bi)- how strongly each brand possesses an attribute

Importance (Ii)- how good or bad each attribute is

Model: Ao =  (bi X Ii)

Question 23

Focus of Communication

Answer 23

Try to change beliefs in order to change attitudes and behavior
Beliefs —-> Attitude ——–> Intentions

Question 24

Goal for Marketing Communications

Answer 24

Change Belief Strength

Change Importance of Belief

Add a New Belief

NOTE: easiest to do when attitudes are ambivalent (both good and bad beliefs) vs. when strongly positive or negative beliefs are held

Question 25

Key Strategies

Answer 25

Source Credibility- trustworthiness, expertise, or prestige

- Also authenticity- what is genuine, real, and/or true (pizza from a chef vs. company)
- Online reviews are seen as credible sources even though we don’t know anything about them

Argument Quality
Reason why ads- gives reasons why brand satisfying and beneficial

Demonstrations or supporting endorsements (e.g., Good Housekeeping Seal, etc.)

Comparative ad- make direct comparison to competitor (best if you are second or third and have a competitive advantage over number 1)

Question 26

Hedonic Processing

Answer 26

Hedonic Consumption - the consumer’s multisensory images, fantasies, and emotional arousal

People consume hedonic products based on the pursuit of fun, amusement, fantasy, arousal, sensory stimulation, and enjoyment

Question 27

Hedonic Functionality

Answer 27

Functionality (reliability, convenience, and performance) is often taken for granted

Consumers want connection to intangibles that matter most to them
Consumers want products that provide meaningful experiences (need to stress unique experiences)
MKT can be the primary source of differentiation and value delivered by a brand

Question 28

Hedonic Basic Principles

Answer 28

Engagement (Rappaport 2007):
High relevance of brands to consumers
Extent to which consumers are emotionally connected to a brand

The more emotionally attached consumers are to a brand, the more likely they are to buy it repeatedly over time-emotional attachment is the strongest predictor of purchase

Link between self concept and the company/brand builds emotional attachment (Homburg, Wieseke, & Hoyer 2009)-Can be increased through brand personality (Malaer, et. al. 2011)

Strong brands stimulate areas of brand related to memory, emotion, and decision making more than weak brands (effect similar to religion)

EX:’s- Apple, iPod, Harley, Guinness, Dove, BMW

Question 29

More Hedonic Basic Principles

Answer 29

Decision making is more holistic (based on feelings and emotions)
frequently experience based (recall emotions associated with previous experiences)
most recent and strongest feelings are most likely to impact

Affective forecasting- try to predict how one will feel in the future based on past experience

Important Emotions (have big impact on decision making):
Delight
Arousal- make decisions differently when aroused vs. not aroused- ‘hot’ vs. ‘cold’ state- (e.g., sexual decisions, expensive items-
Fear- anxieties and insecurities if we don’t use product- can be very powerful (if not too strong)
Shame and Guilt- effective in reducing alcohol consumption

Question 30

Hedonic Implication for Marketing Communication

Answer 30

Focus on emotions, enjoyment, and sensory stimulation (intangibles)

Can try to stimulate imagery of using the product/service (produces strong affective responses and low levels of critical thought)

Make MKT communications an experience that consumers want to value and enjoy

Question 31

Key Learnings

Answer 31

Consumers’ memory for product info is often poor but can be improved (rehearsal, recirculation, depth of processing, retrieval cues)

When cognitive involvement is high, consumers engage in a detailed sequential decision process involving problem recognition, information search, evaluative criteria, beliefs, and attitudes

To influence the cognitive decision process, we must focus on BELIEFS (change beliefs, change importance of beliefs, add a new belief)
When affective involvement is high, we must focus on feelings and emotions