Persuasion is All Around You!

1. “Can You Hear Me Now?” Persuasion is All Around You!

2. News: Proliferation of product placement Die another day  Buy another day?

3. Live and let buy— (and you thought spam was bad…) • Ford paid $35 million to bounce BMW as the film’s car sponsor • 1995’s Goldeneye’s cost of $50 million was paid for by 50% by product placement • Companies may pay up to $100 million in promotional support beyond what they paid to have it placed in the movie • Bond as a global icon shaves with a Norelco Spectra, in the light of Schonbek Crystal Chandeliers, while Halle Barry wears Revlon makeup • There are cameos of other products: Finlandia Vodka; Omega watches; Versace, Brioni, & gucci clothing; LaPerla bikinis; Tatteossian cufflinks, Philips electronics; Tiffany diamonds; Bollinger champagne; etc… Product Placement News

4. Why the shift? • Trends predict an increase of 60% (59 million) of TV households will have some sort of personal video recorder (PVR) such as TIVO, DVR, and Replay that eliminate the 75% of commercials • Movies, TV shows, and hot TV movies that position products have exceptionally high market rate • 97% of children have products and toys based on TV or movie characters • Advertising and entertainment is beginning to merge with all types of entertainment (even news stations) • Diverse audiences need to be accessed by multiple channels– product placement everywhere!

5. The Persuasion Process

6. What is persuasion? A means of convincing people: • to buy a certain product • to believe something or act in a certain way • to agree with a point of view

7. Persuasion vs. Informing • What’s the Difference? • Persuasion involves arguing for a particular point of view. • Persuasion involves trying to change someone’s thoughts, feelings, and/or behaviors. • Informing is the delivery of information without purpose

8. Ethics and Persuasion • Persuasion is ethically neutral (it is ‘amoral’). • Knowledge of persuasion can be used as a defense. • The source’s motives are considered when making judgments of ‘morality’.

9. Obvious forms of persuasion • A 30 second spot for SuperBowl XLIII costs between 2.5 and 3.4 million per 30 sec spot. • Product placements in movies and TV amounted to $3.5 billion in 2011. • Between 15-30 products are inserted in every half hour of television programming”.

10. Product Placement • Featured Brands: Apple, Bell, Cadillac, Chock Full O’Nuts, Chrysler, Cisco, Ford, Ford Mustang, Hill-Rom, HP, Lacoste, Listerine, Los Angeles Dodgers, Mercedes, Motorola, Pepsi, Philips, Pontiac, Pyrotect, Rolls Royce, San Francisco Giants, Sharp, The North Face, The Riviera Hotel and Casino, Timberland, Toyota, United States Parachute Association • Featured brands: Apple, Belstaff, BMW, Citibank, Datascope, Ford, Ford Mustang, Hamilton, Honda, Hummer, JVC, Kleenex, Loews, Magnavox, McDonald's, MetLife, Mobil, Nautilus, NBC, Nissan, Panasonic, Ronzoni, Salvatore Ferragamo, Sbarro, Spam, Staples, Tic Tac, Time, Verizon, Viking, XM Satellite Radio

11. Weird persuasion • The town of Clarke, Texas renamed itself Dish, Texas in exchange for 10 years of free satellite TV • GoldenPalace.com paid $25,000 for William Shatner’s kidney stone and $28,000 for a grilled cheese sandwich with an image of the Virgin Mary.

12. Weird persuasion • Anti-war persuasion: Getting naked for peace

13. The Instrumental Function • Learning about persuasion assists someone in becoming a more effective persuader • Important dimension of communication competence • You’ve been engaging in persuasion your whole life… doesn’t mean you’ve been doing it as well as you can.

14. The Knowledge Function • Learning about persuasion increases someone’s understanding of how persuasion works, or “what makes it tick.” • Overcoming habitual persuasion: Individuals are often unaware of their own habitual, reflexive patterns of persuasion. S

15. The Defensive Function • Learning about persuasion makes one a more savvy, discerning consumer of persuasive messages • One is less likely to succumb to telemarketers, infomercials, mail-order scams, and high pressure sales tactics. • Study of persuasion can expose strategies, tactics, unethical approaches

16. Persuasion Strategies: “Foot-in-the-Door” & “Door-in-the-Face” • FITD: First request accepted, then target request • Start with small favor • Responder identifies with first condition & more • likely to respond to second • self-oriented appeal and performance incentives • kill FITD • Longer lasting • DITF: First request refused, then target request • Start with large favor to be rejected • Second favor small, likely to compromise & be polite • Delay and self-oriented appeal kills DITF • Easier to do

17. Foot in the door… First make a small request, then when granted, make a larger (more desirable) request • works best with prosocial/altruistic requests • works best if no extra incentives are offered • 10% improvement over simple request, 20% if no incentive • works by cognitive dissonance & self esteem

18. Door in the face… Make a large request, then when it is refused, make a smaller (more desired) request • more effective if prosocial/altruistic (do it for everybody) than selfish • should be no delay between requests • slight delay produces 10% improvement, no delay 20% • works by reciprocal concessions

19. The Persuasion Pitch • Attention Getting • Ad, promo, announcement • physical, emotional, cognitive attention-getters • Confidence Building (credibility & trust) • expertise (authority figures) • sincerity (smiles, gestures) • benevolence (brand names, associations) • Desire (need for change or product) • praise the product (quality, efficiency, etc.) • promise audience benefits (needs) • Urgency (act quickly) • elicit emotional response to rush without thinking • deadlines, emergencies, sales • Action (desired behavior) • trigger words (“vote,” “buy.” etc.) • devices: coupons, contests, sweepstakes, 800 #

20. Agenda 6 Human behaviors important to persuasion • Reciprocation • Consistency • Social validation • Liking • Authority • Scarcity • How can this help marketers?

21. Reciprocity • All societies subscribe to a norm that obligates individuals to repay in kind what they have received. • Get a gift, you owe a gift…. • Doesn’t have to be a physical gift • Concessions also count as gifts.

22. Consistency • Consistency • Most people have a strong the desire to be, and to appear, consistent. • If they make a commitment… they will always try to follow through. • The trick is getting the commitment.

23. Social Validation • Social Validation • If many individuals have decided in favor of a particular idea, we are more likely to follow, because we perceive the idea to be more correct, more valid.

24. Liking • Liking • People prefer to say yes to those they can relate well to. • A Tupperware party begins somewhere in the world every two seconds. • We all deny this is so…. But

25. Authority • Authority • We are trained from childhood to respect authority.. • And to recognize it..

26. Scarcity • Scarcity • Items and opportunities become more desirable to us as they become less available

27. So how does this help marketers?

28. Reciprocity • All societies subscribe to a norm that obligates individuals to repay in kind what they have received. • The Dark Side • The value should be real, and unless overt (“gift for a meeting”), the impact breaks down if the recipient believes they are only getting the gift to obligate them..

29. Consistency • People who express commitment to an action are much more likely to follow through with an action • Restaurant no show/no call rate went from 30% to 10% with the simple addition of a commitment to the reservation process. • The Dark Side • Organizations are people too and nobody likes change

30. Social validation • 1 man staring at the sky – about 4% will do likewise • 5 people looking at the sky This goes up to 18%. • 15 people looking up at the sky led to 40% of passerby’s stopping – within 1 minute!!

31. Social Validation • If many individuals have decided in favor of a particular idea, we are more likely to follow, because we perceive the idea to be more correct, more valid. • Demonstrating (or merely implying) that others just like you are already using the products. • Ads depict crowds rushing to stores to acquire the advertised item. • Customer References • Case Studies • Market Leadership claims • The Dark Side • Be careful here, social validation can inadvertently backfire: • “75% of businesses do not protect their email systems” • “90% of organizations do not have effective backup procedures in place” • “Most organizational firewalls are incorrectly configured” • The inadvertent message is that if that many people are doing it – it must be OK!!

32. Liking • People prefer to say yes to those they like & can relate to. • People in ads • 0.7 waist to hips ratio / body and facial symmetry / youth relative to group. • SalesTraining • Grooming / Appearance • Use of compliments / similarity • Salestools • Use the “big bad system” to protect the sales people… especially when it comes to discounts and allowances. • Allow Sales people to be heroes with key accounts • The Dark Side • Match the image to the target customer, - not only dress and type, but also actions and emotions. • Don’t get too real

33. Authority • Authority: We are trained from childhood to respect authority… • Establish authority • “Babies are our business, our only business” • Quote authority…Adopt the trappings of authority • “Four out of five doctors recommend” • 3rd party views / opinions • Embed authority imagery in advertising, but it must fit the target group • The Dark Side • People do not like being fooled… and we live in the internet world… your claims can be checked and phony authority will backfire.

34. Scarcity • Items and opportunities become more desirable to us as they become less available • The Dark Side • The boy who cried wolf syndrome… or…It’s a limited time offer… let the time expire. The value of Blogs is a concern!

35. The 6 Factors - Summary • Reciprocity • All societies subscribe to a norm that obligates individuals to repay in kind what they have received. • Consistency • Most people have a strong the desire to be, and to appear, consistent. • SocialValidation • If many individuals have decided in favor of a particular idea, we are more likely to follow, because we perceive the idea to be more correct, more valid. • Liking • People prefer to say yes to those they like. • Authority • We are trained from childhood to respect authority.. • Scarcity • Items and opportunities become more desirable to us as they become less available

36. Common techniques used in advertising • Slogan • Repetition • Bandwagon • Testimonial • Emotional Appeal • Expert Opinion Purpose?

37. Slogan: “Can you hear me now?” A catchy phrase or statement often used to sell a service or a product

38. Repetition: The name of a product is repeated many times HEAD ON Apply directly to the forehead HEAD ON Apply directly to the forehead HEAD ON Apply directly to the forehead

39. Bandwagon A statement suggesting that everyone is using a specific product, so you should too

40. Testimonial A well-known person supports a product or service

41. Emotional Appeal A person is made to have strong feelings about a situation

42. Emotional Appeal A person is made to have strong feelings about a situation or product

43. Expert opinion Experts approve this product, so you should use it “Four out of five dentists recommend sugarless gum for their patients who chew gum”

44. Quick review • Slogan • Repetition • Bandwagon • Testimonial • Emotional Appeal • Expert Opinion

45. Persuasion Ads: Find Two (2) • Using the Internet, magazines, or other sources and research and find two (2) ads using a form of persuasion. • Identify the target audience • Identify the persuasion technique being used. • Identify the purpose of the ad. • Using MS PowerPoint, paste the ad or staple it to your report. • List your findings. • Slogan • Repetition • Bandwagon • Testimonial • Emotional Appeal • Expert Opinion

46. Audience Awareness Advertisers know how to • target their audiences • use appropriate persuasive technique

47. Who’s the audience?

48. Now…Who’s the audience?

49. Who’s the audience?

50. Who’s the audience?