Developing Effective Advertising: Influences on consumer persuasion process

and advertising planning framework

RWS

Formulating the IMC plan

Market : To whom will the communication be addressed

Mission : What is the objective of the communication

Message : Points to be communicated

Media : Which vehicles

Money : How much will be spent

Measurement : Impact Assessment

This can be done using the 6M framework

The 6 Ms of IMC

MARKETMISSION

•Sales goals

•Advertising Objectives

MONEYFactors to consider

•Stage in PLC

•Market share and consumer base

•Competition and clutter

•Advertising frequency

•Product substitutability

MESSAGE

•Message generation

•Message evaluation

• and selection

•Message execution

•Social-responsibility

review

MEDIA

•Reach,Frequency,

Impact

•Major media types

•Specific media vehicles

•Media timing

•Geographical media allocation

MEASUREMENT

•Communication Impact

•Sales Impact

Market, Mission, Message depends on where the consumer is in the purchase and

consumption process

Formulating the IMC plan

Response Hierarchy Models

LONG RUN IMPACT OF ADVERTISING

Advertising

New Customers

Change attitude

Improve Image

Immediate Sales Future Sales

Role of advertising in the consumer persuasion process

• What communication, association, or persuasion task will precipitate the desired action (i.e trial, increased usage, purchase, sales lead etc) ?

• How can this task be conceptualized and measured?

INTERVENING AND BEHAVIORAL VARIABLES

Model Advertising Variable Intervening variables Behavioral variables

A Advertising

B Advertising

C Advertising

D Advertising

E Advertising

F Advertising

G Advertising

H Advertising

I Advertising

J Advertising

K Advertising

Brand Awareness

Brand Awareness

Brand AwarenessKnowledge of New Application

Knowledge About Company

Brand Attitude

Associate Brand with User Type

Associate Feelings and Brand Use

Knowledge of Brand Attributes

Brand Attitude

Brand Awareness- Knowledge of Brand Attributes-Brand Attitude

Trial

Loyalty

Trial Purchase

Increase UsageSales Leads

Loyalty

Sales Via Personal Selling

Loyalty

Loyalty Trial

Purchase

Factors Influencing the Consumer Persuasion Process

Source

Message

Channel

situations

Source3 categories of Source Attributes-

Credibility

Attractiveness

Power

expertise

trustworthiness

Internalisation

similarityfamiliaritylikeability

Identification

perceived controlperceived concernperceived scrutiny

Compliance

Nathans

Pepsi- Sachin

Message

Aspects of Message Structure which can influence persuasion process:

• Order (balbir pasha honda)• Conclusion (saffola, economist1, ecnomist2)• Message sidedness (egg)• Refutation (daag jayega, crocin)• Verbal vs visual ( polio, crossword, deaf, absolute)

Appeals- – Rational, Emotional, Functional (icici pru, pirelli)– Comparative, Demonstrative (fluffy) – Fear (abused child, CPAA busride)– Humour asian paints

Channel and Context

• Personal vs Non-personal

• Mass Media• Quality• Pace

• Context & Environment• Context• Image of media vehicle

THE FOOTE,CONE & BELDING (FCB) GRID

High

Involvement

1.Informative (thinker)Car-house-furnishings-new products model :Learn-feel-do (economic)

2.Affective (feeler)Jewelry-cosmetics-fashion apparel-motorcycles model :Feel-learn-do (psychological)

Low

3.Habit formation (doer)Food-household items model :Do-learn-feel (responsive)

4.Self-satisfaction (reactor)Cigarettes-liquor-candy model : Do-feel-learn (social)

Thinking Feeling

THE FOOTE,CONE & BELDING (FCB) GRID

High

Involvement

1.Informative (thinker)Car-house-furnishings-new products model :Learn-feel-do (economic)

Possible ImplicationsTest :Recall DiagnosticsMedia :Long copy format Reflective vehiclesCreative:Specific information Demonstration LIC, Ford

2.Affective (feeler)Jewelry-cosmetics-fashion apparel-motorcycles model :Feel-learn-do (psychological)

Possible ImplicationsTest : Attitude change Emotional ArousalMedia : Large spaceImage specialsCreative: Executional impact axe, raymond

Low

3.Habit formation (doer)Food-household items model :Do-learn-feel (responsive)

Possible implicationsTest : SalesMedia: Small space ads10 second IdsRadio;PosCreative :Reminder (colgate, ujjala)

4.Self-satisfaction (reactor)Cigarettes-liquor-candy model : Do-feel-learn (social)

Possible ImplicationsTest :SalesMedia:Bill boards, Newspapers POSCreative :Attention (dunkin donuts, pepsi)

Thinking Feeling

Budgeting ApproachesTop-Down Budgeting Bottom-up Budgeting

Top Management sets the spending limits

Promotion Budget set to stay within spending limit

Promotion Objectives are set

Activities needed to achieve objectives are planned

Costs of promotional activities are budgeted

Total promotional budget is approved by top mgmt

Top-Down Budgeting

• The Affordable Method

• Arbitrary Allocation

• Percentage of Sales (fixed % of sales or fixed amt assigned to unit cost)

• Competitive parity

• ROI

Bottom-Up Budgeting

• Objectives & Task Method

• Payout Planning

• Quantitative/Simulation Models

Key Learnings• Source, Message and Channel factors are independent variables which a

communicator can control and which impact the various steps of the response hierarchy

• Structure of the message and manner & contents of appeals should vary according to consumer education and involvement levels and attitude towards the product.

• The appeal used to put forth the message can enhance /inhibit information-processing

• Choice of personal vs non-personal channels or choice b/w media alternatives will depend on information processing requirements, context in which the ad appears, etc

Key Learnings– The more the advertising strategy matches consumer

expectations, the better advertising will be internalized / accepted

– The strategy issue is whether to develop product features, brand image or a combination of both

– An advertising strategy is determined by specifying-• The consumer point of entry on the learn-feel-do continuum• The priority of learn vs feel vs do for making a sale

– Usually advertising is not well suited to directly precipitate action. It is better at conducting some communication, association or persuasion task that will hopefully result in the desired action being precipitated.