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Information Processing: Part I. MKT 750 Dr. West. Agenda. Information Processing Framework Exposure Attention Comprehension Retention McGuire’s Model of Ad Effectiveness Measuring effectiveness Tactical Decisions. Consumer Information Processing. Stimuli Exposure Attention

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Information Processing: Part I

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Information processing part i

Information Processing:Part I

MKT 750

Dr. West


Agenda

Agenda

  • Information Processing Framework

    • Exposure

    • Attention

    • Comprehension

    • Retention

  • McGuire’s Model of Ad Effectiveness

    • Measuring effectiveness

    • Tactical Decisions


Consumer information processing

Consumer Information Processing

Stimuli Exposure

Attention

Comprehension

Acceptance

Retention Purchase


Measuring advertising effectiveness

Purchase

Retention

Yielding/ Acceptance

Attention

Comprehension

Exposure

p(E)·p(A)·p(C)·p(Y)·p(R)

p(E)·p(A)

p(E)

Success:

.8 .8 x .7=.56 .8 x .7 x .7=.39 .8 x .7 x .7 x .6=.24 .8 x .7 x .7 x .6 x .8 =.19

.2 =.44 =.61 =.76 =.81

Failure:

Measuring Advertising Effectiveness

  • McGuire Model Testing Ad Effectiveness


Gaining exposure

Gaining Exposure

  • This occurs when there is physical proximity to a stimulus

  • Selective exposure

    • Consumers deliberately try to avoid our attempts to interact with them

      • Advertising, Direct mail, Telemarketing


Gaining exposure1

Gaining Exposure

  • What’s a marketer to do?

    • Make your message involving

  • Taster’s Choice “Brewing Romance” Campaign (circa 1990)

    • Product positioned as “tasting closest to fresh brewed”

    • McCann-Erickson was hired to kick up the emotional connection to the brand


Brewing romance campaign

“Brewing Romance” Campaign

  • UK Campaign quickly adopted an avid following

    • British tabloids chronicled the series

    • Viewers wrote in for autographs

    • Campaign lasted for six years

    • Sales of Gold Blend soared by 40 percent.

    • Ended with Sharon and Tony wedding and driving happily off into the sunset

    • The campaign was expanded to the US, Canada, Chile, Australia, New Zealand, and Japan


Brewing romance campaign1

“Brewing Romance” Campaign

  • US Campaign launched in 1991

    • Generated a reaction similar to

      the UK

    • The debut of each new “episode” became a major media event,

      often premiering on network shows such as “Good Morning America.”

    • In February 1998, Taster's Choice

      ran a contest. The results were announced in Soap Opera Digest


Gaining exposure2

Gaining Exposure

  • What’s a marketer to do?

    • Nontraditional approach

    • BMW’s re-launch of the Mini Cooper in 2002

      • “Giving a small car big 'tude: cute enough for kids to ride, small enough to fit on top of an SUV and sexy enough to be a Playboy centerfold, the new BMW Mini launched with many guerrilla twists and turns.” Brandweek

      • BMW assigned the new unit a paltry $40 million budget and staff just big enough to fill, well, a Mini.


Nontraditional approach

Nontraditional Approach…

  • BMW’s re-launch of the Mini Cooper in 2002

    • Kerri Martin was assigned to be the guardian of the brand’s soul. She refused to consider a traditional launch for the car. Instead she looked for novel ways to “create buzz” about the brand.

      • Target Market: People who see themselves as risk takers, nonconformists, and adventure seekers. These individuals were not defined by their age but by their spirit.

      • Objectives: Reach 25% brand awareness within one year, and sell 20,000 cars.


Non traditional approach

Non-traditional Approach…

  • Magazine ads broke the mold

    • Mini is the first automobile to actually win bragging rights as Playboy's Playmate of the Month in June. Ads ran biographical photos of Mini's "youth" in London, complete with cartoons on the flip-page.


Results

Results

  • In the six months preceding the launch, the website registered 210,000 leads.

  • 55,000 visitors signed up to receive the e-mail newsletter

  • Brand awareness levels went from zero to 25% in nine months, and up to 67% by June 2003.

  • Exceeded its sales goal, with 24,590 cars sold in nine months.


Can there be too much exposure

Can there be too much exposure?

  • Overexposure

    • When your brand loses it coolness

  • Habituation

    • When a stimulus becomes familiar it loses it’s attention getting power

      • Ads lose half their effectiveness after accumulating 1,000 GRPs (approx 10 exposures)

    • Products are less attractive when everyone else owns one


Avoiding overexposure

Avoiding Overexposure

  • Avoid overexposure through

    • Limited availability (scarcity)

      • Harry Potter

    • Use different ad executions carrying the same message

      • Absolut Vodka


Tactical decisions

Tactical Decisions

  • Gaining Exposure

    • Channel/Medium:The general category for message delivery

      • broadcast (TV, radio), print (magazines, newspaper), direct mail & internet, outdoor …

    • Vehicle: The specific message carrier

      • The Apprentice, WSJ, COTA busses

    • Scheduling: How is the media budget distributed?

      • reach and frequency, breadth of coverage, seasonality


Consumer information processing1

Consumer Information Processing

Stimuli Exposure

Attention

Comprehension

Acceptance

Retention Purchase

Pre-attentive

Processing


Turning exposure into attention

Turning Exposure Into Attention

  • Attention can occur when there is activation of one or more of our five senses.

    • Each of our sensory receptors has an activation threshold

    • Weber’s Law: JND

      • The amount of change necessary to be noticed is directly related to the intensity of the original stimulus


Voluntary attention

Voluntary Attention

  • This refers to the conscious allocation of processing capacity to a stimulus.

  • Selective Attention

    • Occurs when a stimulus is in line with current goals or needs

    • Such attention is selective due to the plethora of messages we are exposed to.


Involuntary attention

Involuntary Attention

  • Occurs due to a built in “novelty monitoring” mechanism

    • Evolutionary hypothesis – survival was best insured by attending to unusual events in the environment

  • Triggers:

    • Size, Color, Contrast, Motion, Sounds are noticed

    • Appeals to our hedonic side (food & sex) are also noticed


Tactical decisions1

Tactical Decisions

  • Getting Attention

    • Source:The person/organization sending the message

      • Who: Spokesperson, Celebrity Endorser, Salesperson …

      • Characteristics: Attractiveness, Likeability, Familiarity, Similarity, Identification, Trustworthiness, Expertise, Credibility


Tactical decisions2

Tactical Decisions

  • Getting Attention

    • Message Execution:The technique or style utilized in communication

      • Humor, Emotions, Fear Appeal, Informational, Demonstration, Testimonial, Lifestyle, Jingle…

      • Comparative vs. Two-sided

    • Message Elements: Features of the message

      • Pictures versus words, color & contrast, size & isolation, novelty & motion, music


Is getting attention enough

Is Getting Attention Enough?

  • Attention may be short lived

    • You have to use attention well once you have it

    • Attention should be used in the service of building the brand, or attaining other strategic goals


Comprehension

Comprehension

  • Refers to the meaning we assign to a sensory stimulus

  • The most crucial process in CB because…

    • What consumers perceive and remember determines their actions!


Comprehension1

Comprehension

  • Perceptions are often the heart of marketing issues/problems.

    • Olay – P&G faced issues with “Oil of Olay” being perceived as oily and old


Comprehension2

Comprehension

  • Gestalt Principles:

    • Closure – we have a tendency to complete a figure, or fill in the gaps

    • Processing effort – the effort devoted to interpreting a stimulus leads to better comprehension and memory

    • Figure/Ground – perceptions differ depending upon what the individual sees as figure (dominant) versus ground (background).


Tactical decisions3

Tactical Decisions

  • Improving Comprehension

    • Channel/Medium: High Involvement (print, internet) vs. Low Involvement (TV and radio)

    • Source: Distraction and Affect Transfer

    • Message Content: Complexity, Ambiguity

    • Scheduling: Repetition


Information processing part i

Information Processing:

Stimuli Exposure

InvolvementAttentionMemory

Motivation

Ability Comprehension

Opportunity

Acceptance

Retention

  • Sensory

  • Short Term

  • Long Term


Tactical decisions4

Tactical Decisions

  • Fostering Yielding/Acceptance

    • Source: Credibility, Similarity & Likeability

    • Message Execution: Stirring emotions, telling both sides of the story

    • Scheduling: Mere exposure effects

      • Improved liking

      • Improved recall

      • Improved acceptance


The importance of memory

The Importance of Memory

  • Marketers use memory-based criteria to judge the effectiveness of their efforts

    • Ad claims – e.g. day after recall

    • Package and brand recognition

    • Beliefs and brand associations are indicators of “brand equity”


The memory process

The Memory Process


Relationship of memory stores

Relationship of Memory Stores


Information processing part i

Incoming Information

Sensory Memory

Pertinence

Short Term Memory

Encoding

(Rehearsal)

Retrieval

(Cues)

Long Term Memory

Encoding & Retrieval

Exposure

Signal

Strength

Attention

Retention


Facilitating encoding

Facilitating Encoding

  • Elaboration

    • Closure

  • Repetition & Rehearsal

    • Jingles

  • Generating Affect

    • Humor (tricky)

  • Personal Linkages

    • Autobiographical Memories


Facilitating encoding1

Facilitating Encoding

  • A Picture is Worth a 1000 Words

    • Memory for faces of high school classmates was 75% correct up to 40 years after graduation

    • Recognition rates for 600 ads! (Shepard)

      Time Delay 0 2 hrs 3 days 7 days 120 days

      % correct 98% 99% 92% 87% 58%


Feelings

Feelings

  • Ads can evoke feelings or emotions

    • Hallmark, McDonalds, Kodak

  • There is a bias toward retrieving positive memories which result in…

    • More feelings during an ad

    • More favorable attitude toward the ad and the brand


Facilitating retrieval

Facilitating Retrieval

  • Encoding-specificity

    • Memory is context dependent, thus memory performance is improved when contextual cues present at encoding are retrieval are the same


Summary

Summary

Familiarity breeds liking while

tedium invites argumentation and criticism

Use attention well (to build your brand)

once you have it, or it will be short lived

Advertising is often used to set expectations

which influence our experiences

A brand’s message must remain the “figure” and

shouldn’t be overshadowed by other elements

Exposure

Attention

Comprehension

Retention


Assignment

Assignment

  • Read Chapter 16


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