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Summary of Last week Homework Subject: - Explain Hedonic and Utilitarian products. - Give detailed consumer behaviour characteristics of both Hedonic and Utilitarian shoppers - Explain the differences between Hedonic and Utilitarian shoppers. Dead Line: 23th of May 2016 Format: Report. Not more then 3 papers. Printed file. 2 Chapter Five Slide 2 Project Project: Dead Line: Format: Ratio: Total point: Launch your own brand/product/service 15th of June, 2016, Submit through e-mail: [email protected] Printed project. Report type. Max 15 pages 15% 100 points 3 Chapter Five Slide 3 Project Choose a product or product category and define your product/business. Give a brand name of your choice. Part 1: Segment your market. Define potential segments. Define your priority segment /segments among potential segments (define your target segment) Conduct 5 in-depth interviews to understand the needs, attitudes, perceptions, intentions, motivations of your priority target segment/s. Explain your in-depth interview findings. Explain your respondents’ buying behaviour and explain their characteristics when making a purchase desicion. Part 2: Define your value proposition that would differentiate your product/service from competitior products. (Define your positioning strategy). Define your product/service/brand brand personality. Part 3: Design your advertising message to persuade your target segment. Plan your media to transmit your advertising message. Which advertising appeals will you use to attract your target consumers and persuade them for a positive responce. 4 Chapter Five Slide 4 CHAPTER NINE Communication and Consumer Behavior Learning Objectives 1. To Understand the Role of the Message’s Source in the Communication Process. 2. To Understand the Role of the Message’s Audience (Receivers) in the Communication Process. 3. To Learn About Advertising Media and How to Select the Right Media When Sending Promotional Messages Targeting Selected Consumer Groups. 4. To Learn How Understanding Consumers Enables Marketers to Develop Persuasive Messages. 5. To Understand How Marketers Measure the Effectiveness of Their Promotional Messages. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 6 Basic Communication Model Figure 9.2 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 7 9. 1 The Source as the Initiator Formal Communication Source •Marketer or organization Informal Source •A parent, friend or other consumer Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 8 The Source Impersonal and Interpersonal Communications 1. Impersonal Communication Communication of organisations through avdertising, Public Relations, spokepersons. 2. Interpersonal Communication One to one communication - Formal sources: sales person - Informal sources: peers that consumers communicate face to face or via electronic means. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 9 Source Credibility • Source Credibility: The perceived honesty and credibility of the source of communication has influence of on the acceptance of the info by receiver. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 10 The Source - Rererence Groups: • Reference Groups – Normative: Influencing defined values or behaviour – Comparative: Benchmark spesific but narrow part of ones lifestyle. – Membership: – Symbolic: the consumer is not member but takes the values anf attitutes of the group Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 11 The Source: Informal Sources • Informal Sources – Opinion leaders: category spesific opinion leaders or influencers. – Word of Mouth: Two way communication. • Take place face to face, through online, telephone Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 12 The Source: Word of Mouth as an Informal Source • Word of Mouth and eWOM – Two-way communication – Social networks – Brand communities: Online forums – Message boards and Blogs Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 13 The Source Word of Mouth – Strategic Applications • Buzz Agents • E-ferrals and recommendations: sending notices about ones selections • Viral Marketing Online viral campaigns need to be managed carefully to tackle negative comments Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 14 Credibility of Formal Sources Endorser Effectiveness Effectiveness is related to the message and its ease of comprehension Synergy between the endorser and the product types is important. (Match up theory) Endorser’s demographic characteristics should be similar to the target Endorser credibility is not a substitute for corporate credibility Endorser’s words must be realistic for them Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 15 Credibility of Formal Sources Other Credibility Sources Vendor Credibility Medium Credibility • The reputation of the retailers • The credibility of the magazine, website, or radio station Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Effects of time • The sleeper effect: Disassociation of the mesage from the source over time. Phenomenon when the consumer does not remember the source Chapter Nine Slide 16 9.2 The Receivers as the Target Audience All audiences interpret the message according to their; - personnal preceptions - personnal experiences Pictures Words, Symbols spokepersons Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Expectations Experiences Characteristics Motives Involvement Mood Chapter Nine Slide 17 9.2 The Receivers as the Target Audience • Personal characteristics and motives Personality, demographics, social groups, and lifestyle have impact on how the message is received. • Involvement and congruency Increased contrast may increase the power of the message. • Mood Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 18 Barriers to Communication Barriers to communication – Selective perceice/exposure to messages • Selective exposure to media (with improved technology) – Psychological noise • Competing advertising mesages • Distracting thoughts Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 19 Overcoming Psychological Noise Repeating exposure to advertising messages Contrast to break through clutter Effective positioning Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Customized promotion messages Offering unique value propositions Chapter Nine Slide 20 9.3 Media as the channels for Transmitting Messages Media: • Mass Media: Interpersonal • Nontraditional (New) Media Traditional media Mass Media TV Radia Broadcast Newspaper Magazines Print Outdoor PR Direct Marketing Direct Mail Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Untraditional media Online media Digital advertising SEO- Search engines Blogs, Forums Online PR Mobile ads Interactive TV E-direct marketing Chapter Nine Slide 21 9.3 New Media • Nontraditional (New) Media is: Addressable Interactive Response measurable • Customized and addressed to different receivers • Receivers can interact with the sender • Receiver's response can be measured Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 23 Nontraditional Media • Out-of-home and On-the-go – Advertising screens in buildings and transit – Digital billboards on roads – Ambient advertising (in new places) • Online and Mobile – Includes consumer-generated media: sponsored content on blogs, forums, social networks – Narrowcast messages – Mobile • Interactive TV (iTV) Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 24 THANKS YOU 9.4 Designing Persuasive Communications It is improtant to be able to reflect the excact objective of a message the marketer need to understand the target market’s personal characteristics. Objective of advertising message: • • • • • • Creating awareness of a product/service Promoting sales of a product Encouraging (discouraging) certain practices Attracting retail patronage Reducing postpurchase dissonance Creating a favourable image Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 26 9.4 Designing Persuasive Communications Message Structure and Presentation • Resonance • Message framing • One-Sided versus TwoSided Messages • Order Effects • Wordplay • Used to create a double meaning when used with a relevant picture Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 27 Resonance Advertising Technique used in these ads. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 28 Designing Persuasive Communications Message Structure and Presentation • Resonance • Message framing • One-Sided versus TwoSided Messages • Order Effects • Positive framing • Negative framing Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 29 Designing Persuasive Communications Message Structure and Presentation • Resonance • Message framing • One-Sided versus TwoSided Messages • Order Effects Depends on nature of the audience and nature of competition • One sided message: advertiser only uses favourable benefits of the product • Two sided message: advertiser uses both negative and positive sides of the product. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 30 Designing Persuasive Communications Message Structure and Presentation • Resonance • Message framing • One-Sided versus TwoSided Messages • Order Effects • • • • Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Primacy Recency Order of benefits Brand name Chapter Nine Slide 31 Advertising Appeals • • • • • • • • Comparative Fear Humor Abrasive: agony commercials, which features unpleasent mesages. Sex Audience participation Timely Celebrities Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 32 Comparative - It Has Positive Effects On Brand Attitudes, Purchase Intentions, and Purchases Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 33 Humor and Fear Appeal Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 34 Types of Celebrity Appeals Table 9.6 Types Definition Testimonial Based on person usage, a celebrity attests to the quality of the product or service Endorsement Celebrity lends his or her name and appears on behalf of a product or service with which he or she may or may not be an expert Actor Celebrity presents a product or service as part of a character endorsement Spokesperson Celebrity represents the brand or company over an extended period of time. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 35 Feedback Determining Effectiveness Exposure effects • How many consumers received the message? Persuasion • Was the message received and interpreted correctly? effects Sales effects • Did the ads increase sales? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 36 Feedback Determining Effectiveness • Exposure – People meters • Message Attention, Interpretation, and Recall – Physiological measures: track bodily responces to stimuli. E.g: eye tracking – Attitudinal measures: measures level of engagement, involvement – Recall and recognition measures Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 37 THANKS YOU All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide 39