module 4 how advtg works

8/8/2019 Module 4 How Advtg Works

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How Advertising WorksHow Advertising Works



Setting Advertising ObjectivesSetting Advertising Objectives

Understanding of how ads work in different situations

Which variables are more important under different

conditions Differing views on what advertising does and how it works

Critical to understand which intermediate variable to

target in an ad



Framework Framework -- How Advertising WorksHow Advertising Works

Advertising InputMessage content, media scheduling,

repetition

FiltersMotivation, ability (involvement)

Consumer responseCognition Affect Experience

Consumer Behaviour

Choice, loyalty, habit etc



Market Response modelsMarket Response models

No intermediate effects looked at

Advertising directly related to sales, market share etc

Econometric models Some key outputs

- Advertising effects dissipate after 3-15 months

- Advertising helps a brand by making consumers less price sensitive

and decreasing the size of the non loyal segment

- Advertising elasticities are dynamic and decrease during the

product life cycle- Short term effects are a pre-requisite for the achievement of long

term effects

- Short term effects diminish fast. After the third exposure, response

to advertising levels off.



Ads Ads

Allen Soothers.DAT

Fedex.DAT

Ceasefire.DAT



Video 1Video 1

Video 2Video 2



Exposure,Salience, FamiliarityExposure,Salience, Familiarity

Low involvement with product

Little differences between brands e.g. grocery products

Individual consumers have repertoire of brands, each of which they buy fairly regularly

Brand chosen does not necessarily need to be seen as

´betterµ but ´good enoughµ

Hard information not the basis of purchase Can work in both situations - new trial, as well as when the

situation is NOT so much getting new consumers as

increasing its share of purchases among existing

consumers



Exposure,Salience, FamiliarityExposure,Salience, Familiarity

Buying/switching patterns do not vary greatly between

one brand and the next.

Larger brands have more buyers than smaller brands

Typical model :

Awareness Trial Reinforcement

Advertising Awareness Familiarity Liking

Repetition critical



Exposure,Salience, FamiliarityExposure,Salience, Familiarity --

ImplicationsImplications

High level of ad repetition can bring about brand

preference because

- Brings the brand to mind /consideration set when theproduct category is bought

- Brand feels familiar and comfortable

- It is pre-conciously liked

- Safer and trusted

- Perceived to be more believable



Low Involvement LearningLow Involvement Learning

Repeated advertising can alter the viewer·s frame of

reference in low involvement situations

Repetitive advertising in low involvement mediumlow risk, low interest products

Trial/Purchase situation

Attitude change (Shift in cognitive structure]

Sequence of advertising effects in low involvement

situations

cognitive behavioural attitudinal



Low Involvement LearningLow Involvement Learning -- ImplicationsImplications

Attitudinal change could occur to make chosen brand

appear adequate

- to reduce dissonance between behaviour and currentattitudes

- justify/rationalise choice

In low involvement situations, need to target greater

awareness as a primary objective rather than

communication of attitude-enhancing arguments as to why the brand is better



The Elaboration LikelihoodM

odel (ELM)

The Elaboration LikelihoodM

odel (ELM)

Motivation to

elaborate

Ability to

elaborate

Amount of

elaboration

Central route to

persuasion

Peripheral route to

persuasion

Message arguments

determine

persuasion

Peripheral cues

determine

persuasion



Motivation to process information

Motivation to process information

Involvement with product and purchase decision

User/Potential user of product

Can depend on ad as well

Information in ad relevant and important

Comparative ads get consumers more motivated toprocess centrally as compared with non comparative

ads



Ability to process information Ability to process information

Knowledge and experience to process the given

information

Technical attributes Vs benefits

Opportunity to process information - media environment



Central route to persuasionCentral route to persuasion

Attitudes are changed or formed by careful consideration,

thinking and integration of information relevant to the

product/brand Consumer is highly involved in processing the ad

Attitudes resulting from central processing are relatively

strong and enduring, resistant to change and predict

behaviour better than attitudes formed by the peripheral

route

Central processing occurs when both motivation and

ability to process information (elaborate) are high.



Peripheral route to persuasionPeripheral route to persuasion

Attitudes are formed and changed without active thinking

about the brand·s attributes and its pros and cons

Persuasion occurs through the creative form/executioncues in the ad such as the endorser, music, number of

arguments offered etc.

If either motivation or ability to elaborate is low,

peripheral processing occurs

Research shows that if the ad puts the consumer in a good

mood by evoking a positive emotion, peripheral

processing is more likely



Implications of ELM

Implications of ELM

Motivation and Ability of target audience key in target

setting.

Where motivation and ability high, focus on changingattitudes through ´reasons whyµ

Where motivation or ability is low, the objective should be

to create a likeable feeling about the brand through a

likeable feeling about the ad (endorser, music, other

executional elements)



Cognitive ResponseCognitive Response

Weak relationship between content recall and brand

attitudes

What is more important is thoughts going throughconsumer·s head as they were seeing the ad and they

evaluated the information in the context of past

knowledge and attitudes. (Cognitive responses)

Thoughts could be Counter arguments ( against the

message) or support arguments (affirming the argument)

Basic predictive model - The number of S As will be

positively associated with changes in beliefs, attitudes

etc and the number of CAs negatively correlated



Managing CAs and

S As

Managing CAs and

S As

Repetition

- Number of CAs fall and then rise with repetition.

-S As do the reverse, thus causing wearout

Discrepancy from previously held belief - CAs increase

Strength of argument - Unless there is a strong message,

discourage central processing

Mood - If the ad puts the viewer in a good mood, morelikely to generate S As.



Cognitive ResponseCognitive Response -- ImplicationsImplications

When trying to create/change attitudes, especially in

high involvement situations, need to stimulate S As and

minimise CAs Effectiveness of ad also depends on what the consumer

was thinking when he/she saw the ad

Care must be taken that executional elements do not

distract the consumer from the key points the ad is

making

Repetition to be at optimal level

More relevant in high involvement situations

Audience predisposition shapes message structure



Recall and PersuasionRecall and Persuasion -- LowLow

Involvement situationsInvolvement situations

In low involvement situations, recall important since

brand evaluated at a later stage and consumer recalls

from memory facts about the brand The fact that the brand is remembered may matter more

than what is remembered about the brand.

Recall could lead to brand choice



Recall and PersuasionRecall and Persuasion -- HighHigh

Involvement situationsInvolvement situations

In high involvement situations, recall a necessary but not

sufficient condition for persuasion

Recall necessary for comprehension.Comprehension necessary for persuasion

Consumers need to recall something about brand.

It must be something they consider useful in choosing

a brand It must set the brand apart as being competitively

superior

It must be easily recallable



The 3 DsThe 3 Ds

Three dimensions to how advertising works

- Cognition

- Affect- Experience

Need to understand when and where each one of them is

more important and hence decide advertising plan



LearningsLearnings -- Low Involvement situationsLow Involvement situations

Brand needs to be recalled at time of purchase

Focus on Awareness and Recall

Repetition important Peripheral processing

Execution is important

Ad should be liked



LearningsLearnings -- High Involvement situationsHigh Involvement situations

Central processing

Reasons why need to be provided

Strong arguments Recall needs to be about things considered useful in

brand choice + that sets the brand apart as superior +

should be easily recalled

Pay attention to number of exposures Not too discrepant from consumers· beliefs

Executional elements should not distract from main

message

Ad must be liked

module 4 how advtg works

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