Advertising power of persuasion 12678030.ppt

marketing

1. Communication
and Consumer
Behavior
CHAPTER 9

2. INTRODUCTION
•Communication is the transmission of a
message from a sender to a receiver via a
medium of transmission.
•The five basic components of
communications are: sender, receiver,
medium, message and feedback.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 2Chapter Seven Slide

3. The Source as Message Initiator
•Communications: Product awareness, induce purchase &
attitude, show its position in market
•Initiator of communication can be formal or informal.
•A formal communications source represents either a for-
profit or not-for-profit organization.
•An informal source might be a friend who gives product
information or advice.
–Online social networks
–Word-of-mouth communication

4. Impersonal & Interpersonal Communications
•Sources of impersonal communications:
organizational messages through marketing
departments, ads or public relations agencies
•Sources of interpersonal communications: Either
formal or informal.
•Persuasive impact of personal & interpersonal
message is source’s credibility.

5. Source Credibility
Perceived honesty & objectivity of sponsor
of communication have influence on how
communication is accepted by receiver

6. Reference Groups
•Serve as individuals reference in their consumption
decisions
•Normative reference groups influence broadly defined
values
•Comparative reference groups influence specific defined
attitudes
•Membership group: group to which a person belongs
• symbolic group: group in which individual is not likely to
receive membership, despite acting like a member

7. Credibility & Dynamics of Informal Sources &
Word Of Mouth
•Informal communications named as opinion
leadership.
•Opinion leadership: one person informally
influences actions of others, can become an
opinion receiver or wow
•Informal communications are a two-way process
named word-of-mouth (WOM)

8. Consumer Message Boards & Weblogs
•Many Web portals enable people to post
information on about anything online.
•A blog is a personal online journal initiated and
managed by a blogger
•Online journals are now the most powerful
exchange of consumption information
•Marketers have virtually no control over the
information exchange these forums.

9. Strategic Marketing Applications Of WOM
•WOM is more effective than paid promotional sms
•E-WOM brought upon a huge surge in the amount of
money and creativity devoted to campaigns and strategic
initiatives centered on WOM
•It includes:
–Buzz agents
–Viral marketing
–E-referrals
–Recommendations

10. Buzz Agents
•Many firms enlist typical consumers to serve as
their buzz agents
•Buzz agents promote products by bringing them to
family gatherings, read books…
•Buzz agents do not receive payment but are
motivated by being called upon to serve as opinion
leaders.

11. Viral Marketing
•Viral marketing: e-mail message to others creating
potential for exponential growth in the message’s
exposure and influence.
•Another effective form of viral marketing is online
referrals and recommendations.
–Highly successful e-merchants attach links encouraging
users to send notices of their selections to their friends.

12. Credibility of Formal Sources, Spokespersons &
Endorsers
1.Source credibility are judged up on past
performance, reputation, product quality,
attractiveness of spokesperson & promotions
2.Institutional advertising used to promote a
favorable company image rather than a specific
product
3.Not-for-profit sources are more credibile than
profit sources.
4.Marketers often use celebrities as endorsers of
offerings

13. Relationship between effectiveness of sms &
endorser:
a.Effectiveness of spokesperson is related to
message itself
b.Synergy between endorser and type of product
is very important
c.Endorsers who have demographic
characteristics that are similar to those of the
target audience are viewed as more credible

14. Vendor Credibility
•Reputation of the retailer who sells the
product has a major influence on message
credibility.
•Consumer’s previous experience with product
or vendor has a major impact on the
credibility of the message

15. Medium Credibility
•The reputation of the medium that carries the
ad also enhances credibility of message.
•There is no single answer as to which medium
has the most credibility.

16. Effects of Time on Credibility: Sleeper Effect
•When information is transferred from short-
term memory to cerebral cortex, over time, it
is separated from context in which it was
learned.
•This is called source amnesia or the sleeper
effect.
•Though a high-credibility source is initially
more influential than a low-credibility source

17. Involvement & Congruency
•A person’s level of involvement determines
how much attention is paid to the message.
Mood
•A consumer’s mood affects way in which a
sms is perceived, recalled, and acted upon.
•It is often influenced by the context in which
the ad message appears & content of ad itself

18. Barriers to Communication
a)Selective Exposure to Messages
•Ignore ads that have no interest to them.
•Technology provides consumers with means
to control their exposure
a)Psychological Noise
•Competing ads or distracting thoughts
–Way to overcome it is to:
»Repeat exposure to the message.
»Use contrast

19. Media: Channels for Transmitting sms
•Medium is the channel or way sms is
communicated.
–Impersonal communications channel, such as a mass
medium like a newspaper
–Interpersonal communications channel—an informal
conversation between two friends
•Mass media are classified as print (newspapers,
magazines), broadcast (radio, TV), electronic (Net)
•New media include new communication tech

20. Targeting Consumers through Mass Media
•Selecting appropriate audience is key of a
communications strategy.
•Public relations used to broadcast favorable info
about company & to suppress unfavorable
•Media strategy is essential of a communications
plan.
•It calls for the placement of ads in the specific
media read, viewed or heard by targeted audience.
•Consumer profile includes specific media read or
watch by targets

21. Targeting Consumers through New Media
•New media are more dynamic than traditional .
•Messages are:
•Addressable
•Interactive
•Response-measurable
•New media is called “unmeasured media” because
companies monitoring ads expenditures have not
developed means for computing money spent on
each “unmeasured” medium separately.

22. Out-of-Home & On-the-Go Media
•This category consists of new promotional
tools as well as some older means updated
with new tech
•It targets mobile customers & includes:
•Captive advertising screens placed in buildings
•Digital billboards and displays
•Ambient advertising

23. Online & Mobile Media
•Called consumer-generated media and mobile
advertising.
•It includes all ads reaching consumer online and on
any mobile
•Theses message-transmission tools include search
engines, online & e-direct marketing.
•Sends addressable, customized sms based on data
gathered from tracing consumers’ surfing
•Addressable communications or narrowcast sms

24. Interactive TV
•Interactive TV (iTV) : TV & interactivity of Web.
•Two-way communication between subscriber /
provider
•More personal & dynamic than one-way TV
programs
•iTV is most advanced form of new media because it
allows interactivity between sender / receiver, &
permits marketers to measure results

25. Designing Persuasive Messages
•Message can be verbal, (spoken or written) or
nonverbal (a photograph, or a symbol), or a
combination of the two.
•Message is thought, idea, attitude, image, or other
information that the sender wishes to convey to the
intended audience

26. Message Structure & Presentation
Message design include:
1.Ads resonance : wordplay, often used to create a double
meaning, in combination with a relevant picture.
2.Positive message framing showing benefits to be lost by
not using the product (negative message framing)
3.One-sided messages versus two-sided messages tell
consumers only good points (benefits).
–Two-sided messages tell consumers both good & bad points
–when audience is unfriendly & likely to hear opposing claims

27. Message Structure & Presentation
4.Order Effects—order in which a message is
presented affects audience receptivity.
–Commercials shown first are recalled best, those in the
middle the least.
–Magazines recognize order effects charging more for ads
on front, back, & inside magazines covers
–If audience interest is low, the most important point
should be made first to attract attention.
–Product benefits can be arranged in ascending order,
with the most important point mentioned last.

28. Advertising Appeals
1.Comparative Advertising
•Claims product superiority for brand over explicitly
named or implicitly identified competitors
a.It is useful in exerting positive effects on brand
attitudes, purchase intentions, & actual purchases. .
b.Downside to comparative ads is that they assist recall of
competitor’s brand at expense of advertised brand.
c.Positively comparative ads were found to elicit higher
levels of cognitive processing activity

29. 2.Fear
•Fear is an effective appeal used in marketing
–Some researchers found a negative relationship
between intensity of fear and ability to persuade.
–Strong fear appeals tend to be less effective
–Marketers must also consider that the mention of
possible detrimental side effects of using a product
while proclaiming its benefits may result in negative
attitudes

30. 3.Humor
•It increases persuasiveness of communication
•It should be used selectively
–Attracts attention
–Does not harm comprehension
–Does not increase credibility
–More relevant when related to the product
–More effective in ads of existing products than in
new products
–More effective in targeting consumers that
already have a positive attitude

31. 4.Abrasive Advertising
•Abrasive Ads: when sponsor’s credibility is
established & sms highly persuasive
–All of us have been repelled by so-called agony
commercials, which depict in diagrammatic detail the
internal and intestinal effects and…
–Nevertheless, pharmaceutical companies often run such
commercials

32. 5.Audience Participation
•Audience Participation—the provision of feedback
changes the communications process from one-
way to two-way communication.
–Senders will know whether & how well communication
has taken place.
–Important to receivers enabling them to participate
–Participation by the receiver reinforces the message.

33. Feedback determines Message’s Effectiveness
•Feedback is essential component of interpersonal &
impersonal communications.
•It may reinforce, change, or modify sms to ensure that it is
understood
•with interpersonal communications you can obtain
immediate feedback thru verbal as well as nonverbal cues.
•To evaluate impact of ads SMS, marketers measure
exposure effects ( nb of consumers exposed ), persuasion
effects ( if understood?), sales effects (increased sales?)

34. Media & Message Exposure Measures
•IT assess how many consumers received SMS and
construct a profile of those who received it.
•Tools used to monitor total media exposure are
portable people meters – small, GPS-enabled
personal devices.
•Owners of sites use media exposure measures to
determine size of audiences & set rates they charge

35. Message Attention, Interpretation & Recall
Measures
•Psychological measures track bodily responses to
stimuli.
•Attitudinal measures test consumers’ cognitive
response to sms, including his levels of engagement
•Researchers use day-after recall tests: viewers of TV
shows or listeners to radio are interviewed a day
after watching or listening to program.