Chapter 8

Objectives
Appreciate the factors that promote effective and creative advertising.

Understand a five-step program used in formulating advertising strategy.

Objectives
Describe the features of a creative brief. Explain alternative creative styles that play a role in the development of advertising messages. Understand the concept of means-end chains and their role in advertising strategy.

Objectives
Appreciate the MECCAS model Describe the laddering method that provides the data used in constructing a MECCAS model. Recognize the role of corporate image and issue advertising.

What Makes Effective Advertising?

Sound Strategy Consumers View Break Clutter

Effective Advertising

Deliver on Promises

Doesnt Overwhelm
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The Role of Creativity

Creative ads share two characteristics:

Originality
Appropriateness

Advertising Successes and Mistakes

Value Proposition is the essence of a message

and the reward to the consumer for investing his or her time attending to an advertisement.

The reward could be information about the product or just an enjoyable experience.

Advertising Successes and Mistakes

Constructing a Creative Brief

Background Target Audience Their current thoughts/feelings Objectives & Measures

Behavioral Outcome
Positioning Nitty-Gritty Details

Message & Medium

Strategy
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Styles of Creative Advertising

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Unique Selling Proposition Creative Style (USP)

An advertiser makes a superiority claim based on a unique product attribute that represents a meaningful, distinctive consumer benefit.

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Brand Image Creative Style

The brand image style involves psychosocial, rather than physical differentiation. Transformational advertising

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Resonance Creative Style

Does not focus on product claims or brand images but rather seeks to present

circumstances or situations that find counterparts in the real or imagined experience of the target audience.

Examples: Doves Real Beauty campaign

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Generic Creative Style

An advertiser employs a generic style when making a claim that could be made by any company that markets a brand in a particular category. Most appropriate for a brand that dominates a product category. Example: Campbells Soup

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Emotional Creative Style

Reaching the consumer at a visceral level through the use of emotional strategy

Runs the gamut of positive and negative emotion

Example: DKNY fragrance

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Preemptive Creative Style

An advertiser makes a generic-type claim but does it with an assertion of superiority.
Example: Visine gets the red out.

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In Summary
An advertiser might use two or more styles simultaneously.
Some experts believe that advertising is most effective when it addresses both functional product and symbolic benefits.

Effective advertising must establish a clear meaning of what the brand is and how it compares to
competitive offerings.

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Means-End Chaining

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Attributes-Consequences-Values
Attributes are features or aspects of advertised
brands.

Consequences are what consumers hope to receive (benefits) or avoid (detriments) when
consuming brands.

Values represent those enduring beliefs people hold regarding what is important in life.

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The Nature of Values

1. Self-direction 2. Stimulation 6. Security 7. Conformity

3. Hedonism
4. Achievement

8. Tradition
9. Benevolence

5. Power

10. Universalism

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The MECCAS Model

MECCAS: Means End Conceptualization of Components for Advertising Strategy

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Eg. Creative Ads on Escalators

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Eg. Creative Print Ads

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Chapter 9

Objectives
Appreciate the efforts advertisers undertake to enhance the consumers motivation, opportunity, and ability to process ad messages. Describe the role of endorsers in advertising. Explain the requirements for an effective endorser. Appreciate the factors that enter into the endorser-selection decision.

Objectives
Discuss the role of Q Scores in selecting celebrity endorsers Describe the role of humor in advertising. Explain the logic underlying the use of appeals to fear in advertising. Understand the nature of appeals to guilt in advertising. Discuss the role of sex appeals, including the downside of such usage

Objectives
Explain the meaning of subliminal messages and symbolic embeds Appreciate the role of music in advertising Understand the function of comparative advertising and the considerations that influence the use of this form of advertising

Why advertising approaches are not effective across all products, services, and situations:
Buyer behavior is complex, dynamic, and variable
across situations

Advertisements are themselves highly varied entities

Advertising products differ greatly in terms of technological sophistication and ability to

involve consumers

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Motivation, Opportunity, and Ability (MOA)

Enhancing Consumers

Choice of Influence Strategy

Consumer Characteristics (MOA Factors)

Brand Strength

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Motivation to Attend to Messages

Voluntary Attention
Is engaged when

consumers devote attention to an advertisement or other marcom message that is

perceived as relevant to their current purchase-related goals

Involuntary Attention
Occurs when

attention is captured by the use of attention-gaining techniques rather than by the

consumers inherent interest in the topic at hand.

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Attracting Voluntary Attention

Appeals to Informational and Hedonic Needs

Use of Novel Stimuli

How Marcom Messages Attract Attention

Use of Intense or Prominent Cues

Use of Motion
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Motivation to Process Messages

Enhance Consumer Processing Motivation By:
Increasing the relevance of brand to consumers Increasing consumer curiosity about brand

Relevance Methods
Appealing to consumers fears Making dramatic presentations Posing rhetorical questions

Curiosity Methods
Using humor Presenting little information Creating suspense or surprise
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Opportunity to Encode Information

The Communicators Goal
To provide consumers with opportunities to encode information

Promoting Proper Encoding By:

Facilitating the repetition of brand information Reducing consumer processing time through the use of pictures and distinct imagery to convey a message

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Ability to Encode Information

The Communicators Goal
To increase consumers ability to encode information

Promoting Encoding Ability By:

Using verbal framing to provide context for consumers in accessing brand-based knowledge structures Creating knowledge structures to facilitate exempla-based learning Analogies Demonstrations Concretizations

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Consumer Learning and Retrieval of Brand Information

Concretizing
Is the idea that it is easier for people to remember and retrieve tangible rather than abstract information

Exemplar-based learning is accomplished by using concrete words and examples

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The Role of Celebrity Endorsers in Advertising

Endorsements
Celebrity endorsers Typical-person endorsers

Endorser Effectiveness
Credibility (internalization) Consumers acceptance of the endorsers position on an issue as his or her own Attractiveness (identification) Identifying with the endorser and adopting of the endorsers attitudes, behaviors, interests, or preferences
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The Five Components in the TEARS Model of Endorser Attributes

T = Trustworthiness
The property of being perceived as honest, believable, dependableas someone who can be trusted but not an expert. The characteristic of having specific skills, knowledge, or abilities with respect to the endorsed brand. The trait of being regarded as pleasant to look at in terms of a particular groups concept of attractiveness. The quality of being admired or even esteemed due to ones personal qualities and accomplishments.

E = Expertise

A = Physical

attractiveness

R = Respect

S = Similarity

(to the target audience)

The extent to which an endorser matches an audience in terms of characteristics pertinent to the endorsement relationship (age, gender, ethnicity, etc.).
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Endorser Selection Considerations: The No Tears Approach

Factors in Selecting Celebrity Endorsers:
1. Celebrity and Audience Matchup 2. Celebrity and Brand Matchup 3. Celebrity Credibility 4. Celebrity Attractiveness 5. Cost Considerations 6. Working Ease or Difficulty Factor

7. Saturation Factor
8. The Trouble Factor

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Endorser Selection Considerations: The Role of Q Scores

Based on representative panel responses to questionnaire:

Have you heard of this person? (a measure of familiarity) If so, do you rate him or her poor, fair, good, very good, or one of your favorites? (a measure of popularity)

Calculation of Q Score:

Percentage of panel rating performer as favorite Percentage of panel familiar with performer

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The Role of Humor in Advertising

Attracts attention to ads Can increase recall of ads message points Can elevate liking of ad and ads brand Does not harm comprehension of an ad Does not necessarily increase ads persuasion Does not enhance source credibility Is appropriate for established products which are already viewed positively Has variable effects on different individuals, audiences, and in different cultures Can be too distracting to receivers
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Appeals to Consumer Fears

Fear-Appeal Logic

Stimulate audience involvement with a message

Appropriate Intensity of Threat Level

Promote acceptance of message arguments

Social Disapproval (Not using the advertised brand)

Consumers Motivation to Avoid Negative Consequences

Scarcity: Psychological Reluctance (Fear of losing out)

Physical Danger (Engaging in unsafe behavior)

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Appeals to Consumer Guilt

Guilt:
Breaking rules Violating standards or beliefs

Appeal:
Feelings of guilt can be relieved by product

Ineffective Guilt Ads

If guilt appeal lacks credibility If ad is perceived as manipulative
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The Use of Sex in Advertising

What Role Does Sex Play in Advertising?
Initial attentional lurethe stopping power role of sex Enhance recall of message points Evoke emotional responses such as feelings of arousal or lust. To elicit a positive reaction, sexual content must be appropriately relevant to the subject matter.

Potential Downside of Sex Appeals

Interference with processing of message arguments and reduction in message comprehension Demeaning to females and males

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Subliminal Messages and Symbolic Embeds

Subliminal Defined
The presentation of stimuli at a speed or visual level that is below the conscious threshold of awareness

Forms of Subliminal Stimulation

Visual stimulation using a tachistoscope Accelerated speech in auditory messages Embedding of hidden symbols

Does Subliminal Advertising Work?

A variety of practical problems prevent embedding from being effective in a realistic marketing context

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The Functions of Music in Advertising

Communication Functions of Music

Attracting Attention

Promoting a Positive Mood

Increasing Receptivity of Message

Communicating Meanings

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The Role of Comparative Advertising

Is the practice in which advertisers directly or

indirectly compare their products against competitive offerings and claim superiority

Varies in the direct explicitness of comparisons

Is illegal in some countries

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Is Comparative Advertising More Effective?

Enhances brand name recall Less believable than noncomparative advertising Better recall of message arguments

Effectiveness of Comparative Advertising

Creates more favorable attitudes for brand Creates stronger purchase intentions

Generates more purchases

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Considerations Dictating the Use of Comparative Advertising

Situational Factors

Issues in Deciding to Use Comparative Advertising

Distinctive Advantages

The Credibility Issue

Assessing Effectiveness

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How Well does advertising Work?

Journal

Generalizations from metaanalysis of Brand advertising elasticities

Raj Sethuraman, Gerard j. tellis, and Richard A. Briesch (2011)

Purpose
To performs a meta-analysis of econometric estimates of advertising elasticity and provides insights into whether advertising works, the magnitude of the effect, and the factors that influence elasticity.
To update Assmus, Farley, and Lehmanns (1984) meta-analysis and to add to Hanssenss (2009) inventory of empirical generalizations.

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Methodology
Conduct a meta-analysis of 751 short-term and 402 longterm, direct-to-consumer brand advertising elasticities estimated in 56 studies published between 1960 and 2008.

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Variables Influencing Ads Elasticity

Time and recession factors
Product and geographic factors Data characteristics
Omitted variables Model characteristics Other characteristics

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For Managers

Implication (Advertising Budgeting)

Reduction in budgets allocated to conventional advertising Creating unique messages, negotiating for noncompete coverage, and more precise targeting of advertising

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For Managers

Implication favoring advertising Conditions(conditions favoring advertising)

Managers need not reduce advertising in a recession because they falsely believe that

the sales impact of advertising will be lower than in expansion periods.

Higher advertising elasticity suggests that, all else being equal, advertising should be higher for durable goods than nondurable goods and for products in the early stage of the life cycle than mature products.
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For Implications for Researchers

Implication favoring advertising Conditions(conditions favoring advertising)

Temporal interval
Incorporating endogeneity Other factors Nonsignificant variables

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Conclusion
These results suggest: a reduction in conventional advertising if the firm was advertising optimally in the past. On average, advertising elasticity does not decrease during recession. This result suggests: a firm does not need to cut back on advertising in a recession because its managers believe customers will not be responsive to advertising.

Advertising elasticity is higher for durable goods than nondurable food and nonfood products.

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Conclusion
Short-term advertising elasticity is higher for products in the early stage of the life cycle than those in the mature stage.

In general, advertising elasticity is higher in Europe than in North America, raising a question of whether there is underadvertising in Europe and overadvertising in the United States.

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Conclusion
There is a nonmonotonic relationship between advertising elasticity and temporal interval. In general, television advertising elasticity is higher than print advertising elasticity in the short run, but print advertising elasticity is higher than television advertising elasticity in the long run.

Advertising elasticity is lower when endogeneity in-

advertising is not incorporated in the model.

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Limitations
In identifying the factors that influence advertising elasticity, they are limited by the variables that are available in the original studies:

1. category of Ads Effect,

2. effect based on experimental or other noneconomic designs, and

3. B2B Ads

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Eg. Creative TVC

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Thank you...

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