Advertising &

Consumer Behavior

Lecture IV 23.11.2010

Adjunct Professor of Practice

Pekka Mattila, D.Soc.Sc.

22.11.2010

a) How are we doing with the

Valio assignment 2?

b) Lecture syllabus: “Cornerstones of

Strategic Planning II”

1. Communication and media

strategies

2. Communicating value in a

differentiating way

3. Optimizing the marketing and

media mix

Curriculum

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Curriculum

22.11.2010

• It all boils down to the very basics of STP!

• Targeting

• Positioning

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1. Identifying and selecting the target audience

2. Determining how the target audience

behaves in the category

3. Determining the best positioning for

the brand

4. Developing a media strategy…

5. Setting a media strategy…

Strategic planning process (Percy & Elliott.)

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• “People don’t want to buy a quarter-inch drill. They

want a quarter inch hole.” (Levitt.)

• 90% of product launches fail every year

• Averaging and likelihoods may kill – one size fits all?

• All the jobs have a social, a functional and an

emotional dimension

• The job, not the customer, is the fundamental

unit of analysis

Purpose brands (Christensen & Cook & Hall.)

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• Job-defined markets are generally much larger

than product category –defined markets

• What makes Virgin successful then??

• Vague and hollow brands

• Extending brands

Purpose brands (Christensen & Cook & Hall.)

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• Communication effect choices

1. Category need

2. Brand awareness

3. Brand attitude

4. Brand purchase intention

Communication strategy

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Attitude or awareness objective?

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• Brand awareness and attitude always included

• Brand awareness classifications

• Recognition: reminder of the need

• Category need at the point of purchase

• Recall: reminder of the brand

• Brand awareness before the purchase

Communication strategy

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• Brand attitude is always relative

– Closely related to positioning

– Knowing: cognitive and belief based

– Feeling: affect and feeling based

– Challenging industry conventions:

http://www.youtube.com/watch?v=Fg_YS8rLwMg

Communication strategy

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Rossiter-Percy grid:

brand attitude strategy quadrants

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Motivation In

vo

lve

me

nt

Informational

(negative)

Transformational

(positive) L

ow

H

igh

• Based on communication objectives

• Special attention to the processing requirements

of brand awareness and brand attitude strategy

• Reach – coverage

• Frequency – exposure

• Opportunities to see (OTS)

• Gross Rating Points (GRPs):

90% > OTS 2 = 180

• 45% > OTS 4 = 180

Media strategy

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• Minimum effective frequency

• Visual needs

Media strategy

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Brand-consumer-media

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• Traditionally message effectiveness is believed to

increase at low levels of repetition and then to

decrease as message repetition increases

• Curvilinearity

• Wearin effect – learning

• Wearout effect – boredom, less opportunity to learn

Brand familiarity and advertising

repetition effects (Campbell & Keller.)

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• Familiar vs. unfamiliar brands

• Unfamiliar brands wear out faster than familiar

brands: decreased advertising effectiveness at

lower levels of repetition

• Unfamiliar brands are processed more

extensively with repetition than ads for familiar

brands

• Unfamiliar: learning focus

• Familiar: updating focus

Brand familiarity and advertising

repetition effects (Campbell & Keller.)

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• Tactic (in)appropriateness mediates the effects of ad

repetition and brand familiarity on message

effectiveness

• Strong brands beneficially affect communication

effectiveness

– Postponing the onset of advertising wearout

Brand familiarity and advertising

repetition effects (Campbell & Keller.)

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• Unfamiliar brands need to build familiarity but

meanwhile they may benefit from showing a variety of

messages and increasing message content and

complexity in order to avoid wearout

Brand familiarity and advertising

repetition effects (Campbell & Keller.)

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• When does it make sense to use

an untrustworthy

expert?

• Edelman 2010

Spokesperson trustworthiness (Priester & Petty.)

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Thank you –

Take it further at our

Facebook group

Lecture II 9.11.2010

Adjunct Professor of Practice

Pekka Mattila, D.Soc.Sc.

22.11.2010